Reports » UK

7UK stock market morning note (March 07, 2013)

The FTSE 100 is called to open slightly higher this morning as investors look ahead to the announcements from both the Bank of England and the European Central Bank (ECB) on interest rates with no change expected from either. The economic diary will also see US trade figures and the latest weekly jobless claims due out at lunchtime. Commodity prices are mixed and on the foreign exchanges, the pound is lower against both the dollar and the euro on press speculation that the incoming Bank of England Governor will be given more power via a looser monetary policy stance by the Chancellor in the forthcoming budget.


Company Announcements

IMI Preliminary Results saw adjusted PBT up 1% at GBP366.3m with reported PBT growing 5% to GBP317m on revenue ahead 3% at GBP2.19bn. The dividend is raised 8% to 32.5p and it plans to carry out a GBP175m share buyback programme over the next 12 months and divest the majority of its Merchandising division. It added that whilst the global macro-economic outlook remains mixed, it was confident of delivering further progress in 2013.  

Standard Life Final Results saw operating profit rise 65% to GBP900m with growth across all business units with long-term savings new business sales lower at GBP19.3bn. Group assets under administration rose to GBP218.1bn and the total dividend for the year is increased to 14.7p. There will also be a special dividend of 12.8p and it added that it had 'significant opportunities for further strong and sustainable growth'.

Aggreko Final Results saw trading profit and reported revenue both rise 13% to GBP388m and GBP1.58bn respectively. The dividend is raised 15% to 23.91p but trading margin was impacted by increased debt provision and higher mobilisation costs. For the next 5 years and subject to year-to-year variation, it expects double-digit average annual growth in revenues and trading profit, with returns on capital employed of over 20%. It added that its expectations for the year as a whole remain unchanged from previous guidance.

Aviva Full Year Results saw operating profit fall 10% to GBP1.89bn with a total loss after tax of GBP3.05bn which included its previously announced GBP3.3bn US writedown. The full year dividend is cut to 19p (26p) and is removing the scrip dividend alternative in order to improve earnings per share and provide clarity on cashflows and dividend. It added that it does not believe the overall group situation warrants bonuses for the executive directors in 2012 or pay rises in 2013 but is confident on the future and its prospects going forward.