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UK stock market morning note (January 30, 2013)

The FTSE 100 is called to open flat to slightly lower this morning consolidating the late gains made yesterday as investors focus their attention on the release of key US economic data today. These include the ADP jobs figures, advance GDP and later this evening UK time, the FOMC statement. Commodity prices are flat to firmer and on the foreign exchanges, the pound is weaker against both the dollar and the euro but within a narrow trading range ahead of the US figures and Fed policy statement. Read more >>>

Company Announcements

Imperial Tobacco IMS reports that in the 3 months to end December 2012, tobacco net revenue rose over 2% although stick equivalent volumes were down 1%. There was volume growth of 10% and +12% in net revenue for its key strategic brands. However, it noted that the macro environment continues to be challenging and towards the end of Q1 and into January, market trends have worsened in a number of key markets, including the EU and Russia. It now expects H1 adjusted operating profit to be down year-on-year although the full year results remain in line with its expectations with around 55% of adjusted operating profits to be delivered in the H2. It also separately announced the appointment of Mark Williamson as Deputy Chairman effective immediately and the Finance Director is to retire with the process to appoint his successor already underway.

United Utilities IMS reports that current trading is in line with its expectations with revenue continuing to grow at a rate slightly below the allowed regulated price rise for 2012/13. It added that it was confident of delivering a good underlying financial performance for the year to end March 2013 and remains on track to meet its regulatory outperformance targets.

Johnson Matthey IMS notes that in the period from 1 October to 29 January 2013, trading across the group was challenging with sales down 2% on the same period a year ago. As expected, underlying PBT fell 19% to GBP84.3m, mainly due to a change in mix of sales at its Environmental Technologies division and lower volumes at its Precious Metals division. It added that it continues to anticipate performance in H2 to be similar to that in H1.  

BP US District Court Approval. It has announced that the US District Court has approved the company's plea relating to the Deepwater Horizon accident. As previously announced, BP will pay USD4bn over a period of 5 years and serve a 5 year probation term.