London pre-open: Footsie to keep gains

27th May 2009 07:46

Footsie is expected add slightly to yesterday's gains after a strong showing on Wall Street last night.Mexico-based silver miner Fresnillo reports a strong start to 2009, with silver production up 9% on last year and stable gold production. "In US dollar terms, our costs are declining compared to last year due to a higher exchange rate, lower input costs and our ongoing cost control programme. This year we are expecting the ongoing operational efficiencies at our mines to result in a slightly higher level of silver and gold production than that achieved in 2008," it told shareholders ahead of its AGM. Tullow Oil said the Awaka-1 exploration well, located in the Butiaba region of Uganda Block 2, has been plugged and abandoned after only encountering water bearing reservoir sands. "Although we are disappointed to encounter our first failed trap in a highly successful 23-well campaign, the Awaka-1 well has located a thick new sand fairway which may have significant follow-on potential," said the group.Plant hire group Speedy Hire posted a sharp widening in losses in the year to 31 March and said trading in the new financial year is more difficult than anticipated. The firm reported pre-tax losses of £70.6m, compared with £30.5m the previous year. Revenue edged up to £476.1m from £465.5m. Speedy has been hit hard by the downturn in the construction market and remains pessimistic on the outlook for the sector.Plumbing supplies group BSS shrugged off tough conditions to post pre-tax profits that barely fell from the previous year despite extremely difficult conditions. In the year to March 31, pre-tax profit totalled £57.8m, down slightly from £58.3m the previous year. Revenue climbed by 4% to £1.34bn, but was down by 0.7% on a like-for-like basis.Informa said 96.82% of the business publisher's shareholders have subscribed to its rights issue. The group said 164m shares were taken up by shareholders with the remaining shares to be mopped up by the underwriters Merrill Lynch and RBS Hoare Govett. The group announced at the start of the month that it will raise £242m in a 2 for 5 rights issue, priced at 150p.Emerald Energy said it is pleased with the continued progress in Block 26, Syria as it focuses on delivering increased production rates from the Khurbet East field in the third quarter. Drilling operations have begun at the Khurbet East No.10 well, the second of three development wells being drilled in the central area of the field to support the expansion of the Khurbet East early production facility.Retailer Topps Tiles' profits slumped barely to above break-even in the half year to March as sales continued to slide. Pre-tax profits tumbled from £15.8m to £0.6m as overall revenue decreased by 13.4% to £92.1m compared with last year's £106.3m). Like-for-like revenues fell by 18.5%.