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Reports UK

UK stock market morning note (June 24, 2014)

June 24, 2014, Tuesday, 07:10 GMT | 03:10 EST | 11:40 IST | 14:10 SGT
Contributed by SVS Securities

The FTSE 100 is called to open flat this morning given the lack of clear direction overnight on Wall Street and in Asia. The economic diary today sees the Bank of England Governor, Mark Carney giving evidence before the Treasury Committee on the Inflation Report which will be be scrutinised after the shift in tone towards a possible move upwards in UK interest rates this year. This afternoon the focus will shift to the US with the release of CB consumer confidence and new home sales figures. Commodity prices are flat to lower and on the foreign exchanges, the dollar is slightly higher against the pound, euro and yen but all are within narrow trading ranges.

Company Announcements


Trading Update reports a good operational performance from ECOM with good progress made across the EPC portfolio. ECOM's order intake stands at USD6.8bn in the year to date with the group backlog at a record level of USD20.1bn as at 31 May 2014. Net profit for the full year is expected to be in the range USD580m-USD600m, with it expected to be significantly weighted towards H2 given the phasing of OEC and OPO project delivery. In Integrated Energy Services, it remains focused on delivering improved operational performance on certain projects in the portfolio, and further out is prioritising those opportunities making the best use of its strengths, offer synergies with ECOM and deliver attractive returns on capital employed.

Imagination Technologies

Final Results see group revenue ahead 13% to GBP170.8m with licence revenues and royalty revenues up 32% and 15% respectively. Adjusted operating profit was lower at GBP24.1m (2013: GBP33.5m) and reported operating profit came in at GBP0.02m (2013: GBP11.3m), reflecting an increase in underlying expenses as a result of R&D investment and the full year impact of its MIPS acquisition. It added that whilst there will continue to be fluctuations and changes in its markets, it is confident that its IP families and IP platforms will enable it to take advantage of growth opportunities.