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UK stock market morning note (February 27, 2013)

The FTSE 100 is called to open flat to slightly higher this morning although the inconclusive Italian election result remains very much in focus with the outcome of the country's bond auction today of interest. However, the US Federal Reserve Chairman, Ben Bernanke's speech helped Wall Street's performance after defending US QE policy. The economic diary today has a mix of domestic, US and EU content with the UK second estimate of GDP due out. This will be followed at lunchtime in the US with core durable goods orders, a further testimony from the Fed Chairman and pending home sales data. At 5.30pm UK time, the ECB President is due to give a speech as well. Commodity prices are mixed in trading and on the foreign exchanges, the pound is lower against both the euro and the dollar.

Company Announcements

Petrofac Final Results saw net profit up 17% to USD632m on revenue ahead 9% at USD6.3bn. The full year dividend is raised 17% to 64 cents a share and its backlog is up 9% at USD11.8bn. It added that it was confident in its prospects for the coming year and beyond, and expects to deliver 'good growth' in 2013 net profit and remains on target to more than double its recurring 2010 group earnings by 2015.

ITV Final Results saw adjusted PBT up 17% at GBP464m with external revenues ahead 3% at GBP2.19bn. The full year dividend is raised to 2.6p and there is a special dividend of 4p worth GBP156m. It expects ITV NAR to be up 5% in Q1 but Q2 performance is likely to be impacted by difficult 2012 comparatives from the Euros. The underlying TV advertising market continues to be broadly flat, despite monthly volatility. It added that it remains cautious about the outlook for the 2013 TV advertising market but forecasts strong growth for Online, Pay & Interactive and its Studio business has had a good start to 2013.

Centrica Final Results saw adjusted operating profit ahead 14% at GBP2.74bn with net profit coming in at GBP1.27bn on revenue ahead 4.8% at GBP23.94bn. The dividend is raised 6% to 16.4p a share. It added that in 2013 it will focus on expanding its North America business and adjust to the changing nature of the natural gas market. It separately announced the well- trailed departure of Phil Bentley the Managing Director of British Gas.