London open: Dull start despite Tesco cheer

12th Jan 2010 08:52

It's retail all the way today with Christmas trading statements from a host of a names including Tesco and Debenhams.So far, investors don't seem over impressed even though supermarket giant Tesco enjoyed its best Christmas in three years as shoppers braved the winter weather to stock up on festive treats. In the six weeks to January 9, the firm posted a 5.1% rise in like-for-like sales excluding petrol and VAT at its UK business, ahead of expectations.Cadbury dealt another blow to hopeful bidder Kraft Foods today, repeating its view that the American's offer is 'derisory' and completely undervalues the British chocolate maker. Ahead of full-year results on Thursday, it said its 2009 performance is 'well ahead' of previously upgraded market expectations thanks to strong growth in the fourth quarter.Bookmaker Ladbrokes has confirmed that chief executive Chris Bell is standing down after nine years at the helm and that it is looking for a replacement.Housebuilders are going well after Credit Suisse issued a bullish update on prospects for the UK housebuilding sector with outperform ratings on all of the main companies, bar Berkeley, which is a hold. The Swiss broker sees an average 58% upside from current share price levels based on flat house prices in 2010 and no further impairments across the sector. Bovis is CS's top pick, with 86% upside to its target priceDepartment store Debenhams has missed the pre-Christmas rush experienced by many of its rivals, though profits and margins both increased. Like-for-likes sales in the eighteen weeks to 2 January rose by just 0.1%, which Debenhams says was in line with its forecasts.Elsewhere in retail, video games retailer Game Group has lowered its full year profit expectations after seeing a sharp fall in sales over the Christmas period. In the five weeks to January 9, total sales were down by 12.1%, while like-for-like sales slid 13.8%. In the UK and Ireland, sales fell by 18% or 17.5% on a like-for-like basis. Home furnishings retailer Dunelm kept up its impressive performance through the first half, but warned it will become 'much more difficult' to sustain like for like growth over the next six to twelve months. The group, which operates 100 shops including 88 of out-of-town superstores, reported like for like (LFL) sales up 15.4% in the 26 weeks to 2 January after a 15.1% rise in the 17 weeks to end October.Tile and flooring specialist Topps Tiles said its trading performance over the first 14 weeks provides reassurance that consumer confidence is returning. However, the group added it was cautious about the outlook for the economy and believes that 2010 may continue to present a challenging economic environment for consumers. Joinery company Galiform said it expects pre-tax profits for the year to come in at the top end of expectations after it continued to perform resiliently. Sales climbed by 6% to £220m between October 5 and December 26 from the same period the previous year, however over the year Howden Joinery UK Depot sales fell by 3.4% to £756.4m.