London afternoon: Advance gains momentum

16th Jul 2009 15:08

Footsie looks set to make it four days of rises in a row, with a firmer start on Wall Street giving an additional boost in the afternoon session.Risers outnumber fallers by three to one but among the fallers is data search software firm Autonomy, despite registering its 25th consecutive quarter of year-on-year growth. Citigroup thought the results were "solid" and took "most of the bear arguments off the table" while UBS said it continues to "see a chance of FY09 earnings guidance will be raised".Investors seem to be of a different opinion, and the stock is the worst performing blue-chip today, even though the company reported record revenues and profits for the second quarter. Adjusted profit before tax rose to $89.6m from $50.8m the year before. Revenues rose to $195.2m from $125.7m. Concern seems to centre around the company's decision not to offer numbers on the contribution of recently acquired content management firm Interwoven.Oil services firm Petrofac is higher after being been awarded a 48-month gas development contract in Abu Dhabi. The group's 50% owned joint venture, Petrofac Emirates, has received a letter of award from GASCO for the construction of the fourth natural gas liquid train at the Ruwais complex in Abu Dhabi.Mexico-based silver miner Fresnillo is also ahead after reporting a record quarterly attributable silver production of 9.6 million ounces, up 6.7% from last year, and said it remains confident of achieving its full year 2009 production target levels.It's not all good news for miners though BHP Billiton, ENRC, Kazakhmys and Anglo American are all down. Part-nationalised lender Lloyds Banking is axing another 1,200 jobs as it continues to streamline the business following last year's takeover of rival HBOS. The jobs will go in its group operations and insurance business by the end of March 2010.Pubs group Enterprise Inns said its underlying trading performance appears to be stabilising, with the rate of decline in beer sales reducing. Currently 6100 pubs, 81% of the group's estate, are let on substantive agreements and are delivering net income down by less than 3% year on year. The cash strapped operator said its debt reduction programme continues in line with expectations.Elsewhere in the pubs sector Mitchells & Butlers, owner of the All Bar One and faux Irish pub chain O' Neill's, posted a 1.7% rise in like-for-like sales in the eight weeks to July 11, but said it was being held back by poor non-food and drink sales.Sports retailer Sports Direct said its 'back to basics' approach was yielding results as it posted a rise in revenues though profits fell. In the year to April 26, revenue climbed by 8.6% to £1.37bn, while underlying pre-tax profits fell by 20.2% to £68.2m. Like-for-like sales in the UK climbed by 2.5%. International sales were up by 32.3% to £102m.The stock is overshadowed, however, by sector rival JJB Sports, which has jumped higher after the foundation run by Microsoft founder Bill Gates and his wife Melinda announced it had raised its stake in the sportswear retailer above 3%.Mothercare posted a healthy rise in sales over the first quarter as shoppers flocked to the baby products retailer's summer sale. Total sales climbed by 9.4%, with UK like-for-like sales up by 5.1%. The firm said it was helped by strong performances from Early Learning Centre franchises in Mothercare stores and strong sales from Direct, the online division. International sales rose by 32.7%.Engineer and construction contractor Balfour Beatty has reached financial close on a £176m public/private partnership (PPP) contract with Cumbria County Council.Morgan Sindall announced its second contract win of the week, as its affordable housing specialist Lovell bagged a contract with the East Midlands Housing Group.Butter cheese and milk supplier Dairy Crest saw strong sales of core brands as it focused on advertising its cheese and spread products and reduced milk production.Fund manager Henderson said it expects half-year pre-tax profit to be half of levels seen the same time a year earlier despite one quarter's contribution from New Star. Assets under management at Ashmore Group increased by 6% to $24.9bn in the final quarter ended 30 June.Estimated assets under management at fixed income fund manager BlueBay shot up in the second quarter of 2009, helped by a mixture of price appreciation and new subscriptions. Assets under management (AUM) rose to $24.3bn at the end of June, up from $18bn at the end of March.Elsewhere in the fund management sector Schroders is wanted after Citigroup raised its recommendation from "sell" to "buy".Instrumentation and controls company Spectris said sales dived by around one-fifth on a constant currency basis in the first half of the year.Marine electronics group Raymarine's sales in the first half fell 24% and the company still looking for new equity to cover trading losses, working capital and one-off costs.