London open: Libya casts pall over blue chips

23rd Feb 2011 08:51

London has opened with Libya on its mind amid fears that the unrest sweeping through the country and the Middle East could destabilise Bahrain as well.Brent crude hit over $107 per barrel, up 1% today, as the violence and rhetoric in Libya increased. Libyan leader Muammar Qaddafi vowed to fight a growing rebellion until his "last drop of blood." Brent is now at its highest level since September 2008.Bank are in favour ahead of the results from state-controlled Lloyds and RBS later this week. All of the top risers are bank shares.Consumer packaging giant Rexam grew underlying profit by a bigger than expected 45% in 2010 and expects further progress this year. Profit before tax and exceptional items jumped to £412m from £285m in 2009 on sales up 2% to £4.96bn. Net asset value per share surged 15% to 390p from 339p a year earlier at Capital Shopping Centres while net rental income improved by 4%, or 2% on a life for like basis, in 2010 to £277m from £267m in 2009.Profits jumped by a fifth last year at builders' merchant and DIY shed group Wickes owner Travis Perkins as all 11 of its businesses performed better than the market, though merchanting was the star. Group revenue rose by 8% at £3.2bn, and 5% higher on a like-for-like basis. Adjusted profit before tax up 20% to £217m, though including exceptional charges profits fell from £213m to £197m.Revenues picked up in the fourth quarter to enable software group Logica to recover some ground lost earlier, though sales and profits overall still came in flat last year. Full year 2010 revenue rose by 1% pro forma to £3.7bn, with fourth quarter sales up 4%. Profits were unchanged over the previous year at £272m, though the dividend rises by 27% to 4.2p.Cable & Wireless Communications has sold its operating business in Bermuda to The Bragg Group for total consideration of $70m. CWC will also buy back $100m worth of shares. Insurance sector consolidator Resolution is confident it can achieve its targeted mid-teen returns without further acquisitions, though it hasn't ruled them out. The firm, set up by entrepreneur Clive Cowdery, won't contemplate purchases that would dilute the returns likely to emerge from the three acquisitions already made. Housebuilder Galliford Try has been encouraged by sales in the first few weeks of 2011, while the end of 2010 was not so bad either. The company declared a 29% improvement in underlying pre-tax profit to £17.0m for the six months to 31 December 2010, from £13.2m the year before (2009: £6.4m after exceptional charges).Optical components maker Gooch & Housego said its financial year has started positively with trading ahead of management expectations in the first four months. The group said it had experienced strong demand for its products across all of its sectors.