London close: Blue chips close lower

28th May 2009 16:51

UK blue chips closed lower despite a bright start on Wall Street with sentiment knocked by poorly received updates from Wolseley and Man Group.Hedge fund manager Man Group was weighed down by disappointing results. "The past financial year saw extraordinary turmoil in financial markets globally which put extreme stress on business models across the financial services industry. Man has not been immune," said chief executive Peter Clarke. Pre-tax profit slumped to $743m from $2,079m last year on revenue that slid to $2,433m from $3,222m before.Similar problems, but on a smaller scale, are being experienced by stockbroker and fund manager Brewin Dolphin, though it maintained its interim dividend despite profit before tax falling by more than fifth. Elsewhere in the financial sector Schroders, Prudential and Aviva all react badly to the downturn in global stock markets.Outside the FTSE 100, over-stretched plumbing supplies distributor Wolseley's trading profit more than halved in the first nine months of its financial year. The group said revenue in the nine months to the end of April 2009 was up 0.2% to £12.1bn, but was down 15% in constant currency terms. Trading profit fell 58%, or 65% at constant exchange rates, to £189m. Sector peer Travis Perkins took collateral damage from the Wolseley announcement, as did housebuilders Taylor Wimpey, Bellway, Persimmon and Barratt Developments.Water group United Utilities posted a robust set of results despite the difficult economic conditions as profits rose 11% in the year. Profit before tax for the 12-months rose to £529.8m from £478.3m last year, but the group slashed total dividends to 32.67p per share from 46.67p previously.Sugar and sweetener firm Tate & Lyle posted a sharp fall in profits after facing impairment charges and tough trading conditions. Profit before tax in the year to 31 March fell to £113m from £182m the previous year even as revenues climbed to £3.55bn from £2.87bn.Hochschild Mining has taken full control of the Moris mine in northern Mexico, buying the 30% stake owned by its joint venture partner. The Latin America-focused miner has paid $1.5m in cash to buy the 30% stake from EXMIN Resources. Higher sales in spite of the economic downturn helped the cash and carry group Booker post a sharp rise in pre-tax profits. Pre-tax profits in the year to 27 March climbed to £47.2m from £36.2m the previous year as total sales climbed to £3.2bn from £3.1bn. Speedy Hire said it plans to raise net proceeds of around £100m in a 9-1 fully underwritten right issue.Payment services group PayPoint saw profits rise 19% in the year and said trading in the current year so far is in line with expectations. The group expects further growth in the UK by increasing market share in bill and general payments, mobile top-ups, and ATMs.Ale brewer and London-focused pub chain owner Young & Co. saw property write-downs wipe £10.7m from its profits. Underlying pre-tax profit rose 3.1% to £19.2m while its gearing, at 39.7%, remains 'spectacularly lower than the pubco peer group,' according to KBC Peel Hunt, which rates the shares a 'buy' and has a price target of 560p for the 'A' shares.A slump in the value of the portfolio of HSBC Infrastructure saw the net asset value (NAV) per share of the infrastructure investment company slide by 8.1% in the year to end-March. The company remains relatively upbeat, however, and even hinted at an equity issue to take advantage of opportunities to acquire PFI/PPP/P3 projects.Neuropharm Group, almost moved off the chart after it said that 'following considerable interest in its NPL-2008 drug from a number of parties,' it is in discussions with a pharmaceutical company for a potential collaboration which would encompass the further development and commercialisation of NPL-2008.Full year losses more than doubled at UK based explorer Alba Minerals to £1.03m from £442,662 a year earlier, largely due to a £683,000 write-down on the carrying value of the group's exploration projects.Kalahari Minerals is going well after the miner said results from Rossing South in Namibia suggest the Husab uranium project is part of one of the largest uranium mineral systems in the world.FTSE 100 - RisersCairn Energy (CNE) 2,456.00p +3.50%Fresnillo (FRES) 702.00p +3.39%Randgold Resources (RRS) 4,388.00p +3.08%Tullow Oil (TLW) 1,019.00p +2.46%Johnson Matthey (JMAT) 1,226.00p +1.83%Lonmin (LMI) 1,317.00p +1.23%FTSE 100 - FallersMan Group (EMG) 232.75p -6.90%Carnival (CCL) 1,575.00p -5.97%British Land Co (BLND) 381.50p -5.63%Schroders NV (SDRC) 716.50p -5.16%Royal Bank of Scotland Group (RBS) 37.40p -4.59%Schroders (SDR) 833.00p -4.36%FTSE 250 - RisersITV (ITV) 37.00p +17.46%SDL International (SDL) 321.75p +10.57%National Express Group (NEX) 320.00p +7.11%Big Yellow Group (BYG) 316.00p +6.04%Northern Foods (NFDS) 61.50p +6.03%IG Group Holdings (IGG) 229.00p +4.93%FTSE 250 - FallersWolseley (WOS) 1,005.00p -18.16%BlueBay Asset Management (BBAY) 197.75p -8.55%Travis Perkins (TPK) 545.50p -7.91%Taylor Wimpey (TW.) 29.25p -7.14%DSG International (DSGI) 22.25p -6.32%Enterprise Inns (ETI) 147.25p -5.31%