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UK stock market morning note (March 05, 2013)

The FTSE 100 is called to open higher this morning following the gains on Wall Street and in Asia. Overnight we had domestic data out from the BRC showing that retail sales grew by 2.7% in February, their strongest rate in 3 years as consumers shopped for clothes and home furnishings. However, the BRC added that it was too soon to assume this represented a permanent turnaround. The economic diary this session will see the release of the latest UK services PMI and from the US, the ISM non-manufacturing PMI figures in addition to the ECOFIN all day meetings in Europe. Commodity prices are firmer and on the foreign exchanges, the key currencies are range bound It is a busy day for major corporate news (see below) with Standard Chartered Results also due out after the UK market has opened.


Company Announcements

Serco Full Year Results saw adjusted operating profit grow 9.9% at constant currency to GPB314.8m on revenue ahead 5.7% at GBP4.9bn. The total dividend is raised 20% to 10.10p and its estimated pipeline now stoods at GBP31bn with high revenue visibility of 92%, 79% and 70% for 2013, 2014 and 2015 respectively. It added that for 2013, it expects a modest improvement in organic growth and operating margin to be broadly maintained and was confident of further growth.

Xstrata Preliminary Results saw attributable profit decline 37% to USD3.65bn on revenue 7% lower at USD31.61bn. The full year dividend is raised 14% to 45.5 cents and it achieved USD176m of cost savings in 2012.

Glencore Preliminary Results saw adjusted EBITDA fall 8% to USD5.94bn on revenue ahead 15% at USD214.4bn. It continues to see a 'healthy long term outlook' for commodities based on the continuing growth within emerging market economies and sustained levels of consumption within developed markets. It also noted that the long stop date for its merger with Xstrata had been extended to 16 April 2013 with completion dependent on receipt of the outstanding regulatory approval in China and the Xstrata court process.