Date: Tuesday 22 Jun 2010
Footsie has opened lower ahead of the coalition government’s eagerly awaited emergency budget, which will be revealed around lunchtime.Chancellor George Osborne has been vocal about making Britain competitive by cutting corporation tax so that big businesses find it worthwhile to come to the country. But the focus on Tuesday will be on what taxes will be raised.
Miners are dragging the index down, as yesterday's China-inspired run-up fizzles out.Fresnillo and Kazahhmys are the worst performers.
On the company news front, British Airways has taken a major step towards restructuring its huge pension liabilities after the trustees of its two pensions funds agreed a recovery plan that avoids their closure to members. The airlines' New Airways Pension Scheme (NAPS) and Airways Pension Scheme (APS) have a deficit of about £2.9bn. The recovery plan maintains British
Premier Inn and Costa Coffee were the star performers for hotel and restaurant chainWhitbread as it posted a record 7.6% like for like sales rise. For the 13 weeks to 3 June 2010 total sales were up 13.5%. Premier Inn put in a strong performance with sales up 14.1% during the quarter and like for like rising 10.5%.
Electronic sensors firm Halma has produced record results for the seventh year in a row and topped analyst forecasts with an increase in adjusted profit of 9%. Profit before tax from continuing operations jumped to £86.2m in the 12 months ended 3 April, up from £79.1m in 2009, trumping expectations of about £82m.
Distribution and outsourcing group Bunzl said overall trading is in line with full year expectations with revenue growth of 2%. Operating margin has improved in the six months ending 30 June compared to the same period in 2009 as a result of increases in the UK & Ireland and the Rest of the World, largely due to the favourable impact of cost reduction and the absence of a negative transaction impact from foreign exchange which particularly affected these business areas in the first half of last year.
Mitchells & Butlers announced the appointment of Tim Jones as new finance director of the pub group. Jones, who is currently holding the same position at services, maintenance and building group Interserve since 2003, will replace Jeremy Townsend.Shares in cigarette vending machine maker Molins went up in smoke after it issued a profit warning. Molins' shares skidded 16% after it warned its full year performance was now lower than previously thought as orders were delayed or cancelled and as it counted rising costs at its Packaging Machinery division.
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