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UK stock market morning note (March 14, 2013)

The FTSE 100 is called to open flat this morning as investors await some direction. Overnight we had confirmation from China that Xi Jinping is the country's new President and today's economic diary sees the start of the EU economic summit, the latest weekly US jobless claims and producer prices data. Commodity prices are flat and on the foreign exchanges, the pound is higher again against both the dollar and the euro.


Company Announcements

Wm Morrison Final Results saw underlying PBT down 4% at GBP901m on turnover ahead 3% at GBP18.1bn with lfl sales ex fuel and VAT down 2.1%. The total dividend is raised 10% to 11.8p and it confirmed that it was ready to accelerate development of its multi-channel presence with its convenience operation acquiring 60 new sites in recent weeks. It is increasing its target for store openings by 40% in the coming year and now plans to have 100 stores trading by the end of the year. It will also launch its first online food operation in 2014 and separately confirmed the announcement by Ocado that the parties are in discussions which may lead Morrison's to licence certain IP and operating knowledge from Ocado. However, Morrison's decision to enter online is not dependent on the outcome of these discussions. It added that it expects the challenging consumer and market environment seen in 2012 to persist through the coming year.

Home Retail End of Year Trading Statement reports that benchmark PBT is now expected to be around GBP90m with its net cash position increasing by GBP200m to around GBP395m. Like-for-life sales at Argos in the 8 weeks to 2 March 2013 grew by 5.2% with Homebase lfl sales down 1.5% over the same period.

Playtech Full Year Results saw adjusted EBITDA up 49% at EUR186.7m with adjusted net profit rising 49% to EUR168.5m on total revenues ahead 53% at EUR317.5m. The total dividend is raised 41% to 23.2 EUR cents per share. It noted that it had made a strong start to 2013 with average daily revenues for the first 11 weeks up over 15% on Q1 2012 and up 5% on Q4 2012, and added that it was 'highly confident' of its prospects in 2013 and beyond.