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Reports UK

UK stock market morning note (August 11, 2014)

August 11, 2014, Monday, 10:05 GMT | 06:05 EST | 14:35 IST | 17:05 SGT
Contributed by SVS Securities

The FTSE 100 is called to open higher this morning following the performances on Wall Street and in Asia overnight although the ongoing situations in Ukraine, Gaza and Iraq remain in the background. There is no major economic data due for release today for investors to focus on. Commodity prices are mixed and on the foreign exchanges, the pound is slightly higher against the dollar and the euro although all are within narrow trading ranges. It is a quiet start to the week for major corporate news.

Company Announcements


IMS reports that the financial year has started well and as of 30 June 2014, 90% of budgeted revenues for this financial year had already been secured, with the phasing of contracts expected to result in its overall performance being weighted towards H2. It noted that it had a substantial order book as well as a strong pipeline of sales opportunities, giving it confidence about delivering good full year organic revenue growth. It added that it was positive about the range of outsourcing opportunities across its key markets.

Balfour Beatty

Half Year Results see group revenue down 3% at GBP4.17bn with underlying PBT down 53% at GBP22m. The order book remained stable at GBP13bn, down 1% from the year end at constant currency with the interim dividend maintained at 5.6p a share. It noted that the results were in line with its most recent trading update reflecting the impact of its UK Engineering Services contract write-downs, a review of its PPP portfolio has been completed and an update will be released as soon as possible with the sale process of Parsons Brinckerhoff 'well advanced', adding that subject to satisfying the interests of key stakeholders, it anticipates it will return up to GBP200m to shareholders. It also separately announced that it had rejected a revised merger proposal from Carillion, as it had 'lost confidence in the likely delivery of a successful transaction', concluding that the current proposal was not in the best interests of Balfour Beatty shareholders.