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Reports UK

UK stock market morning note (August 27, 2014)

August 27, 2014, Wednesday, 09:05 GMT | 05:05 EST | 13:35 IST | 16:05 SGT
Contributed by SVS Securities

The FTSE 100 is called to open slightly lower this morning with the small gains overnight on Wall Street which saw the S&P closing at a record high just above the 2,000 level offset by a muted performance in Asia. There is no key economic data due for release today for investors to focus on and it is also a quieter day for major corporate announcements. Commodity prices are mixed and on the foreign exchanges, the pound is slightly higher against both the dollar and euro but all are trading within narrow ranges.


Company Announcements

Foxtons

Interim Results from the London estate agent see revenue ahead over 16% at GBP72.8m driven by sales and mortgage broking growth with adjusted EBITDA up 28.7% at GBP24.9m and PBT increasing 57.1% to GBP23.1m. There is an interim dividend of 1.77p together with a special interim dividend of 2.77p. In H2 it expects the growth in transaction volumes to slow from the rapid rate seen in H1 due to the policy initiatives introduced earlier this year aimed at controlling mortgage lending together with an expectation of an increase in interest rates which are now having an impact on short term demand amongst buyers. It noted that its five newly opened branches were delivered on time and to budget and are performing in line with expectations. It added that it remains on track to open another two branches this year and has secured sufficient sites to satisfy its continued expansion programme into next year.

Balfour Beatty

It has released the results of its previously announced review of the Directors Valuation of its PPP portfolio as at June 2014. This valuation has increased by 46% to GBP1.05bn with the valuation methodology changed to reflect reduced discount rates, improved cashflow assumptions and revised macro-economic assumptions. The UK portfolio has risen by 63% to GBP801m with the North American portfolio ahead 9% to GBP250m. It added that it expects to invest GBP250m into the PPP portfolio over the next 5 years.

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