London afternoon: Stocks belcamed at higher levels

26th Feb 2010 14:23

Leading shares traded sideways over the lunchtime session, lacking any sort of lead from Wall Street, which is expected to open mixed as traders struggle through the snow storm engulfing New York to get into work.Serco remains the best performer among Footsie stocks. The outsourcing group increased the dividend by a quarter as it ramped up profits by almost a third in 2009 and ended the year with a record order book. Profit before tax for the 12 months ended 31 December hit £177.1m, up from £136.1m in 2008, on revenue up 27.1%, or 20.8% excluding currency, to £3.97bn.Fellow support services company Carillion enjoys a relatively more modest lift after revealing its joint venture has achieved financial close on the Southmead Hospital PPP project, in which Carillion will invest £50m.Profit takers have moved in on Lloyds Banking after the lender reported a pre-tax loss of £6.3bn in the year ended 31 December compared with £6.71bn last time. Some of the more optimistic members of the broking community had been looking for the bank to narrow losses to £6.1bn. RBS also sees some profit taking after yesterday's wee received figures.Aviva is the star performer in a buoyant life assurance sector; the company is set to kick off the insurance sector's results season on Thursday of next week.Better winnings from its football book meant a strong fourth quarter for bookmaker William Hill with the current year also largely on course despite the cancellations in events sparked by the freezing weather. Profits in 2009 tumbled by 59% to £121m including nearly £77m of one-off costs, though underlying profits of £258.5m, down by 7%, were slightly better than forecast last month.Engineering giant Rolls-Royce has agreed to buy the outstanding 67% it doesn't own of Norwegian marine technology group ODIM ASA for £154m in cash. The price per share offered is the same Rolls-Royce paid for its 33% holding last year. ODIM ASA specialises in handling systems for seismic and offshore vessels. Cost-cutting and an increase in average online spending helped property website Rightmove improve underlying profit in 2009, but income fell 1% at the pre-tax level. Profit before tax fell to £37.8m in the 12 months to 31 December from £38.2m the year before on revenue down 6% to £69.4m. Underlying operating profit rose 2% to £41.9m.Underlying profits at laundry and workwear group Davis Services held steady in 2009 against a 'very challenging economic background'. Profit before tax edged up to £61.7m in 2009 from £60.4m in 2008 on revenue that grew to £970.9m from £954.9m the year before. The 2% increase in revenue turns into a 3% decline using constant exchange rates. Adjusted profit before tax, which excludes exceptional items and amortisation of customer contracts, improved to £91.7m from £91.3m.Brit Insurance reiterated its concerns about pressure on underwriting premiums this year, warning that the position is finely balanced with the market being distorted by insurers rescued from collapse by their government. "There is little doubt that the outlook for the premium rate environment for 2010 is not as positive as it was 12 months ago," it said. Colt Telecom increased profits markedly in 2009, but the telecom operator is still cautious about the pace and timing of macro economic recovery. Pre-tax profit rose 32% in 2009 to €94.7m from €71.9m in 2008 and jumped 55% to €85m before exceptional items due to higher EBITDA, exchange gains, and a drop in net finance costs.Shares in Baqus have dropped sharply after the national building consultancy and quantity surveying group warned on full-year profits. The group said results for the year ending 30 June 2010 are expected to be below current market forecasts as a result of tough trading conditions .