New York: 06:33 || London: 11:33 || Mumbai: 15:03 || Singapore: 17:33

Reports UK

UK stock market morning note (August 05, 2014)

August 5, 2014, Tuesday, 07:37 GMT | 02:37 EST | 11:07 IST | 13:37 SGT
Contributed by SVS Securities

The FTSE 100 is called to open higher this morning although gains may be limited following the mixed performances on Wall Street and in Asia. Overnight we had economic news out of China with the HSBC services PMI coming in at 50.0, down from the previous month's 53.1. The economic diary today also sees the release of domestic services PMI data followed this afternoon in the US with the ISM non-manufacturing PMI figures. Commodity prices are mixed and on the foreign exchanges, the dollar is slightly weaker against the pound, euro and yen but all are within narrow trading ranges ahead of these data releases.

Company Announcements


Half Year Results see underlying revenue and trading profit up 12% and 6% at GBP768m and GBP142m, although reported results reflected the significant adverse impact from currency translation with PBT down 9% at GBP132m. The interim dividend is raised 3% to 9.38p. It noted that looking forward, Q3 is important for Local business and whilst it expects to deliver growth in H2, comparators are more challenging. It added that in Power Projects, whilst taking encouragement from the order intake in H1 and healthy enquiry pipeline, customers remain cautious. However, it continues to expect underlying trading profit for the full year to be similar to 2013.


Interim Results see continued revenue growth in civil aerospace offset by currency, disposals and a weaker military performance with reported revenue down 11% at GBP718.9m and reported PBT 21% lower at GBP143.8m. The interim dividend is raised 8% to 4.25p. Order growth of 9%, including 17% growth in the civil aftermarket gives it confidence in good H2 organic revenue and margin recovery, although currency will remain a drag. It added that it now expects full year organic revenue growth in the low single digits whilst reported revenue will also include the adverse impact of currency and business disposals.

Standard Life

Half Year Results see fee business revenue up 12% at GBP758m with operating profit ahead 12% at GBP339m. Assets under administration grew 4% to GBP254.1bn and the dividend has been raised by 7.3% to 5.6p a share. It added that it was well placed to deal with the far-reaching reforms to the savings and retirement income rules, announced earlier this year by the UK Government.