Reports » UK

UK stock market morning note (September 18, 2012)

The FTSE 100 is called to open slightly lower this morning with the euro zone again in focus and in particular Spain. The main domestic economic event today will be the release of the latest inflation data which is expected to show a small decline (see below). Commodity prices are flat to lower with copper down for the second consecutive session after the highs seen last week. On the foreign exchanges, the pound is firmer against the euro but lower against the dollar although within narrow trading ranges.

Today's Company announcements

Debenhams Trading Update ahead of of its full year results reports that group lfl sales including VAT for the 52 weeks to 1 September 2012 rose 2.3% and excluding VAT were up 1.6%. It has seen a good performance from its modernised stores, market share gains in womenswear and other key categories, online sales up by 40% and good growth in its international businesses. Gross margin is expected to be in line with guidance of 30 basis points lower than last year, mainly due to a weather-related sales mix change as well as higher concession sales. It added that PBT will be ahead of last year and in line with current market expectations and whilst it does not anticipate a significant change in the economic environment in the near future, it expects to make progress in 2013.

Galliford Try Final Results saw PBT rise 80% to GBP63.1m on revenue ahead 17% at GBP1.5bn. The total dividend is raised 88% to 30p a share and has a stable current order book of GBP1.65bn with a continuing focus on contracts with acceptable returns. It added that 86% of the current year's planned revenue is secured and is well-positioned to deliver further profitable growth in the new financial year and beyond.