London pre-open: Cairn's bad run continues

30th Nov 2011 08:07

London is set to open lower despite a firm showing overnight on Wall Street. City sources predict the FTSE 100 will open down 50 points from yesterday's close of 5,337. Accountancy software group Sage saw underlying pre-tax profit from continuing operations rise 8% to £352.6m in the year to the end of September from £326.6m the year before. The market had been expecting profits of £354.4m. Sales improved by 4% to £1,334.1m from £1,277.6m, with 3% growth in software and software-related service revenues (2010: 3% contraction) and 5% growth in subscription revenues (2010: 3%* growth). The group has proposed a rebasing of its dividend, and for once this is not code for a drastic cut; the full-year dividend rises to 9.75p from 7.80p.Oil firm Cairn Energy said the AT7-1 and AT2-1 wells in the Atammik Block, in the South Ungava area of its prospects off the coast of Greenland, have been plugged and abandoned. "The first phase of Cairn's exploration programme in Greenland has encountered oil and gas shows across multiple basins and now reservoir-quality sands in the Atammik block. Whilst we have yet to make a commercial discovery we remain encouraged that all of the ingredients for success are in evidence," said Simon Thomson, chief executive of the group.Brewer and pubs group owner Marston's underlying profit before tax in the year ended October 1st rose 9.4% to £80.4m from £73.5m the year before. That was ahead of market expectations of £79.8m. Group revenue was also ahead of expectations at £682.2m, up 4.8% from £650.7m last year; the market had pencilled in a figure of £678.8m. As for current trading, in the 8 weeks to November 26th, like-for-like (LFL) sales in the managed estate were up 3.0%, while tenanted, leased and franchise profits are estimated to be up 2.0%. Own-brewed volumes have been in line with our expectations.--jh