Reports » UK

UK stock market morning note (February 28, 2013)

The FTSE 100 is called to open higher this morning following the gains on Wall Street and in Asia overnight helped by the US Federal Reserve Chairman reiterating his support for continued monetary stimulus measures. Overnight we had domestic data showing that headline UK consumer confidence remained unchanged at -26 according to the monthly GfK NOP survey. Today's economic agenda is focused on the US with the publication of the preliminary reading of GDP and the latest weekly jobless claims. Commodity prices are mixed and on the foreign exchanges, the pound is slightly higher against both the dollar and the euro but trading within narrow ranges.

Company Announcements

Reed Elsevier Final Results saw underlying adjusted operating profit up 6% to GBP1.71bn on underlying revenue ahead 4% at GBP6.11bn. The full year dividend is raised 7% to 23p a share and GBP100m of share buybacks has been completed YTD with a further GBP300m to be deployed over the remainder of 2013. It added that although the outlook for the macro environment and its impact on its customer markets is mixed, it has entered 2013 with 'positive momentum' and expects another year of underlying revenue, profit and earnings growth.    

British American Tobacco Final Results saw adjusted profit from operations at constant exchange rates rise 8% to GBP5.97bn on revenue at constant rates of exchange ahead 4% at GBP15.99bn. Group volumes fell 1.6% to 694bn but its four Global Drive Brands grew volumes by 3%. The dividend is raised 7% to 134.9p and the board has agreed a GBP1.5bn share buyback for 2013. It added that whilst not underestimating the challenges ahead in 2013, it looked forward to delivering another year of good growth. 

Man Group Final Results saw a statutory loss before tax of USD745m reflecting a goodwill impairment and other adjusting items with adjusted PBT coming in at USD278m. Funds under management fell to USD57bn on sales of USD12.8bn. The USD95m of cost savings announced in January 2012 have been delivered and the further annual cost savings of USD100m announced in July 2012 are on track for delivery by the end of 2013. The total dividend for the year is expected to be 22 cents a share. It added that gross sales are likely to be muted in H1 and it had yet to see a slowdown in the rate of redemptions.  

Royal Bank of Scotland Final Results saw a pre-tax loss of GBP5.16bn after an accounting charge of GBP4.65bn on revenue of GBP25.79bn. The core tier 1 ratio was 10.3% and its target for 2013 is for this to be the last big year of restructuring. It also confirmed that it is to float off part of its US retail bank.