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Reports UK

UK stock market morning note (August 06, 2014)

August 6, 2014, Wednesday, 08:52 GMT | 04:52 EST | 13:22 IST | 15:52 SGT
Contributed by SVS Securities

The FTSE 100 is called to open lower this morning following the overnight performances on Wall Street and in Asia amid fresh concerns about the ongoing situation between Ukraine and Russia. The economic diary today sees the release of domestic manufacturing and industrial production data which will be followed in the US at lunchtime with trade balance figures. Commodity prices are mixed and on the foreign exchanges, the pound is lower against both the dollar and the euro. Standard Chartered is due to come out with its Interim Results around 9.15am.

Company Announcements

Legal & General

Interim Results see operating profit up 11% to GBP636m with net cash generation ahead 13% to GBP567m and PBT increasing 7% to GBP636m. Return on equity grew to 17.6% (H1 2013: 16.8%) and the dividend has been raised 21% to 2.9p. It saw record annuity sales of GBP3.5bn in the period with LGIM assets under management up 7% to GBP465.1bn. It noted its early adopter stance of institutional 'slow money' and has provided GBP5bn for investment in housing and infrastructure. It added that each of its five core businesses are focused on large markets where it sees long term structural growth potential, with its record meaning that it is ideally placed to take advantage of these growth opportunities.


Half Year Results see revenue and headline operating profit up 28.7% and 35.9% at GBP1.37bn and GBP53.7m respectively of which 9.1% and 15.4% was organic growth respectively. It noted that this organic performance was complemented by the performance of its acquisitions with Initial Facilities trading in line with its expectations during the period and integration 'progressing smoothly'. The interim dividend is raised to 7.5p (H1 2013: 6.8p) noting it was well positioned for future growth with its future workload up to GBP7.5bn and GBP2bn of new contracts secured in the period. It added that market conditions in International Construction and Support Services continue to be highly competitive, although it was now starting to see signs of improving demand.