London open: Shares edge higher

17th Feb 2011 08:40

The FTSE 100 has moved higher in early dealings, with miners helping to offset weakness on the back of company updates.African Barrick Gold, which yesterday announced strong sales figures for the full year, is leading the mining sector - and the FTSE 100 - higher. However, elsewhere in the FTSE 100, Defence firm BAE Systems falls back after saying it is expecting sales in 2011 to dip as cutbacks in government spending start to bite. The company saw sales edge up by 1.8% in 2010 to £22,392m from £21,990m in 2009. The market had pencilled in a figure of £22,548m for sales. Underlying earnings before interest, tax and amortisation improved to £2,214m from £2,197m the year before, while underlying earnings per share (EPS) climbed to 40.8p, versus market expectations of 41.85p, from 40.1p the year before. BAE's FTSE 250-listed peer Meggitt is lower in sympathyReed Elsevier has not exactly set pulses rating with its update. Things improved at the business and academic publisher during 2010 and a "gradual" recovery this year should deliver "modest" growth in 2011. The Anglo-Dutch firm revealed adjusted profit before tax for the 12 months was flat at £1.28bn, as were sales, unchanged at £6.06bn. But the company achieved organic revenue growth of 2%, much better than last year's 6% decline, pointed out chief executive Erik Engstrom.B&Q owner Kingfisher expects full-year profit to be at the top end of expectations after strength in the international business helped the DIY retailer shrug off weather and economy-related difficulties in Britain and Ireland in the fourth quarter. Like-for-like sales in the UK & Ireland were flat for the three months compared with a year ago, broadly in line with expectations, while total sales were up by 0.6% to £954m.Analysts had been predicting a consensus adjusted pre-tax profit of £666m for the full year, in a range between £661m and £672m.Sports Direct leads the FTSE 250 higher after its chief executive Dave Forsey provided some reassurance to those worried that the VAT rise and economic austerity will keep shoppers away from the high street, saying that trading at the sports shop chain has been strong since January. The sports shop chain will hit its targets for the full year, he said. In the 13 weeks to 23 January, sales were up by 12.1% from the same period a year ago to £416m, while gross profit jumped by 8.4% to £167m. Things are ticking along as expected at sensor technology firm Halma, another FTSE 250 riser today, in the second half of its financial year. Revenue in the first six months of the year was 12% ahead of 2009/10 and this trend has continued into the first four months of the second-half of the financial year. A brief statement issued on Thursday morning was enough to spark buying interest for telecoms titan Cable & Wireless Worldwide. It said that it continues to trade in line with expectations. The largely UK focused part of the old Cable & Wireless, said it continued to make progress through the second half in delivering its objectives for the current year, with further contract wins in UK enterprise and UK public sector and the renewal of important contracts in the Global business. Total funds under management (FUM) exceeded £15bn for the first time ever at wealth management firm Rathbone Brothers last year. Underlying profit before tax in 2010 rose 18.8% to £38.5m from £32.4m in 2009, topping the consensus market forecast of £35.55m. Total FUM at the end of the year stood at £15.63bn, up 19.3% from £13.10bn at the end of 2009.