Tuesday, June 15, 2010

London open: Footsie drifts lower

Date: Tuesday 15 Jun 2010

Taxi londonienLondon’s top stocks are lower in early dealings following yesterday’s good gains, despite a multi-billion approach to BSkyB from 39% shareholder Rupert Murdoch.

Satellite broadcaster 
BSkyB rejected a 700p per share offer from News Corporation, the vehicle of media magnate Murdoch and said 800p per share is a more likely level for any deal to be considered.
Tesco said it is continuing to see evidence of a steady consumer recovery in Britain as it reported UK like for like sales growth of 1.1%. With the effects of January’s VAT increase stripped out, UK lfl sales growth was 0.1% in the thirteen weeks ending 30 May. Total group sales increased by 8.2%, while growth excluding petrol was 6.9%.

Bellway said uncertainty surrounding the new government’s fiscal policy has resulted in a slight reduction in visitor site visits and weekly sales rates. “Nevertheless, with a strong forward order book, net cash in the bank of £55 million and expected future margin improvement, Bellway remains well positioned to continue to deliver earnings growth,” it said.

Fashion retailer 
Ted Baker has seen a spurt in sales in the year to date, with its wholesale business also seeing a marked upturn. Total group revenue jumped by 18% in the 19 weeks from 31 January to 12 June. Gross margins were maintained in line with expectations, it added.

mappamondo_flagFashion retailer 
Alexon said recent like-for-like sales were down due to volcanic ash cloud disruptions and the general election. Group like-for-like sales for the 19 weeks ended 12 June 2010 fell 5.4%

Healthcare staff supplier 
Healthcare Locums today confirmed that all discussions in relation to its recent bid approach have now ended.

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