London pre-open: Early retreat predicted

8th Dec 2010 07:40

A late sell-off on Wall Street is set to take London back below 5,800.Futures prices currently indicate a 40-point drop for the FTSE 100. The bullish mood in the US following a two-year extension to tax cuts faded by the close.Contractor and support services specialist Carillion expects good growth in underlying profits this year despite tough market conditions in the UK. Profit growth should more than offset the effects of selling non-core businesses and stakes in Public Private Partnership (PPP) projects in 2009, which chipped in £17m last time.Carillion decided to scale down its construction business by a third in May 2010 over the next three years, which it says will help it cope with the reduction in government capital investment announced in the Spending Review.Stagecoach has delivered a 44% hike in half-year underlying profit, with contributions from all businesses, and the bus and rail group is on track for the full-year following a good start to the second half. Profit before tax for the six months ended 31 October, excluding exceptional items, rose from £75.5m to £108.7m. Reported profit was up 78% at £126.8m and revenue increased by 5% to £1.13bn.Scottish soft drinks maker AG Barr said quarterly revenue increased 6.4% from the year before and it remains confident of achieving full-year targets. "Current trading remains in line with our expectations despite a very competitive environment," the drinks maker, best known for its Irn Bru and Tizer brands, said in a company statement. The firm, which has been widely tipped as a bid target for the likes of Pepsi or Coca-Cola, said the 6.4% rise in quarterly revenue was achieved despite very strong growth the previous year. Revenue for the nine months to 30 October increased 11.6%.