London pre-open: More losses expected

26th Jan 2010 07:35

Footsie is expected to continue the decline that began last week in early dealings.The decline in consumption by non-residential customers tailed off in the fourth quarter, water company Severn Trent said. The company, which said it has been trading in line with expectations since 1 October, estimates that the cutback in consumption will now result in a year on year fall in revenue of around £5m to £10m in the current financial year, compared to its previous estimate of a £15m to £20m fall.Business management software provider Sage Group said it has seen no sign of a market recovery yet as it posted an in-line trading update. 'Our proven business model and the loyalty of our large, geographically diverse, customer base give us confidence that we are well positioned for these conditions and the eventual market recovery,' said chief executive Paul Walker.Soap manufacturer PZ Cussons managed to post a sharp rise in profits despite flat revenues in the year to November 30. Pre-tax profits climbed by 28% to £44.7m from £34.8m the previous year as revenues edged up to £369.9m from £367.2m.Healthy banknote demand has meant a strong few months for De La Rue despite tough trading conditions for its cash processing arm. "Trading for the group for the period from 26 September 2009 to date has been strong, with banknote and paper volumes showing an increased run rate compared to the first half of 2009/2010 and well ahead of the comparable period last year," the banknote printer said.Mezzanine finance provider Intermediate Capital has seen a 'material' improvement in prospects for realising its investments with the recent pick-up in equity and bond markets. In mid-January, 52% of its portfolio companies continued to perform at or above last year's level, a figure broadly in line with the previous two quarters.