17:00 – The FTSE 100 (UKX) was left slightly punch drunk at the closing bell in midweek trading, weighed down by miners and banks – the former hit by increased intensity in the unrest in Libya.
London’s top share index finished 37 points lower at 5937, with Tullow Oil (TLW) bottom of the pack after it missed profit forecasts in its full-year results.
Also releasing figures for its financial year was insurer Prudential (PRU), but investors were much more appreciative of the news of its record results, keeping it top of the winners’ board with gains just shy fo 5%.
At a glance…
Commodities
Gold: $1,428.95
WTI crude oil: $104.98
Currencies
GBP/USD: 1.6202
GBP/EUR: 1.1657
EUR/USD: 1.3905
16:44 – US markets remained muted on Wednesday, keeping their heads below the line despite retrieving some earlier losses.
Upbeat wholesale inventories data and a strong showing from IBM (IBM) helped improve sentiment.
The Dow Jones was down seven points at 12207, with the SP 500 four lower at 1318 and the Nasdaq dropping 16 to 2749.
16:30 – Electronics manufacturer Stadium Group (SDM) saw pre-tax profit nearly double in 2010 as it disposed its non-core plastics business to focus on electronics markets.
In the 12 months to 31 December, pre-tax profit was up at £2.87 million from £1.47 million a year earlier. Revenues were also up by 27% to £44.81 million.
“The goal is now to become acknowledged as the leading UK owned provider of electronic design and build solutions, by continuing to target new customers across the world in high growth industry sectors,” commented Nick Brayshaw, chief executive officer.
16:14 – Trolley supplier Supercart (SC.) saw record sales in North America in 2010, but still reported an operating loss of £300,000 – narrower than the previous year’s £2.17 million loss.
The AIM-listed firm said turnover was £8.91 million in the 12 months to 31 December, compared to £7.35 million for the same period n 2009.
Supercart said the first half of the year is traditionally a quieter period in its industry, but that its outlook for the balance of 2011 and beyond remains positive.
15:52 – AIM-listed waste management company Water Hall (WTH) has announced the sale of its Pollards quarry site for approximately £237,000 in cash.
The surplus over the carrying value net of transaction and related costs is estimated to be £160,000. The sale proceeds will be used for working capital.
Commenting on the sale, Raschid Abdullah, chairman of Water Hall, said: “Water Hall is pleased to be able to announce the sale of a non-core asset at a price in excess of book value.”
15:36 – Physiomics (PYC) was nursing a deep fall in half-year losses as difficult trading conditions knocked revenues.
The AIM-listed computational systems biology company reported revenues of £14,088 for the six months ended 31 December, compared to £116,892 a year earlier, dragging losses down to £360,034 from £113,070 at the end of 2009.
The company admitted trading conditions had been “difficult” as a consequence of uncertainty in the pharmaceutical sector, with a number of strategic reviews resulting in some drug discovery activities being put on hold.
Nevertheless, Physiomics said interest from big pharmaceuticals in its technology continues to gather pace and it has entered into discussions with a number of companies.
15:13 – Austrian-focused gold explorer Noricum Gold (NMG) has begun initial work on both the Rotgülden and Kliening gold projects.
The AIM-listed group commenced the defined mineral exploration programme at the two south-central Austrian projects in order to pave the way towards a mineral resource definition.
Further drilling is expected later in the field season at Rotgülden, while the Kliening prospect is likely to be drilled during the second quarter of this year.
14:56 – US markets were marginally lower early in trading on Wednesday, despite exporters getting a lift from a weaker dollar.
The Dow Jones was down 23 points at 12191, while the Nasdaq fell 16 to 2749 and the SP 500 dropped five to 1316.
14:39 – Alternative energy company Alkane Energy’s (ALK) adjusted pre-tax profit fell to £1.4 million in the year to the end of December – down from £2.4 million last time.
Revenues increased by 5% to £6.6 million, despite a 21% fall in average electricity selling price and operating cash inflow increased by 25% to £3.5 million. Depreciation increased by 50% to £1.8 million due to continued investment in new sites and planned major services.
Chief executive Neil O’Brien said that the group increased electricity output by 26% to 120GWh in 2010.
14:17 – Speciality chemicals group Yule Catto (YULC) posted a sharp increase in profit for the year ending 31 December.
But its shares tumbled on Wednesday, after it warned of “several years of low growth in Western markets with global growth generally driven by emerging markets”.
For more, read: Yule Catto slips on Western growth fears.
13:59 – Green technology group TEG Group (TEG) has landed a waste supply contract for processing mixed food and green waste.
The contract awarded by LondonWaste will be for an initial three-year term starting next month, but has an option to extend to April 2017.
The annual volume of mixed waste is expected to be between 12,000 and 15,000 tonnes per year with a maximum obligation of 20,000 tonnes.
13:32 – Software testing group SQS (SQS) unveiled a 21.2% jump in annual turnover to €162.9 million (£139.9 million) thanks to improving market conditions.
The AIM-traded company also reported a 22.1% increase in pre-tax profit to €52.1 million last year.
SQS made a series of investments in the first half of the year into both infrastructure and sales staff which is attributed with improved profitability in the second half, and plans to employ further staff this year in line with growing demand for its products.
The company announced a full-year dividend of €0.08 per share.
13:08 – The FTSE 100 (UKX) remained marginally lower on Wednesday, with banks and oil producers providing the biggest weight.
London’s leading share index was down 16 points at 5958, with British American Tobacco (BATS) still propping up the rest of the index.
On the other side of the coin, record results from insurer Prudential (PRU) saw it comfortably remain in top spot on the winners’ board.
12:45 – The Serious Fraud Office (SFO) has closed its investigation into individuals involved in the acquisition by sportswear retailer Sports Direct (SPD) of 31 stores from rival JJB Sports (JJB) in 2009.
The SFO completed its investigation into Sports Direct and JJB Sports in October 2010, bringing no charges against any company or companies within their corporate groups but continued the investigation in relation to individuals.
Get the full story by reading: Investigation closed on Sports Direct and JJB.
12:29 – Empyrean Energy (EME) said the recent petroleum reserves report for the Sugarload Project in Texas has revealed 608,050 barrels of total proved crude oil condensate.
In addition, the report also outlined 2.72 billion cubic feet of natural gas.
The AIM-listed company hailed the report, based on the field status of nine producing wells, as confirming the “value” of the project.
“The project is robust and has the potential to generate significant cash flows to Empyrean for many years to come,” executive director Tom Kelly said.
12:12 – Engineering conglomerate Melrose (MRO) said it was “well placed” to take on another substantial acquisition, as it reported an increase of 44% in its full-year pre-tax profit.
The firm posted pre-tax profit of £170.8 million in 2010, compared to £118.6 million in 2009.
A stronger second half also saw revenue up 15%, compared to 6% for the full year.
11:53 – Thor Mining (THR) has kicked off a maiden drilling programme at the Dundas gold project in western Australia.
The 65-hole drilling programme is set to test a six kilometre anomaly identified back in 2010 during surface concrete sampling.
The gold and base metal explorer expects the programme to last around 10 days.
11:39 – The Restaurant Group (RTN), the owner of Frankie Benny’s and Chiquito, said performance was strong last year as it expanded its number of outlets and 2011 had started well.
For the 53 weeks to 2 January pre-tax profit was up 12% to £56 million and revenue was up 7% to £466 million.
Over the period the firm opened 24 new restaurants, which it said are performing “superbly”.
11:23 – Upstream oil and gas group Sound Oil (SOU) has beefed up its portfolio with a new exploration licence in Italy.
The Colle Ginestre licence, nestled in the Southern Apennines fairway, brings the company’s total number of active permits in Italy to eight.
The permit, jointly awarded to Sound’s subsidiary Apennine Energy and its partner Compania Generali Idrocarburi by the Ministry of Economic Development in Rome, spans a five-year period, starting December 2010.
For more, read: Sound Oil beefs up Italian portfolio.
11:02 – Northern Rock, which was nationalised at the height of the financial crisis in February 2008 to prevent its collapse, reported losses of £232.4 million in 2010.
The firm said the loss was in line with expectations and that income had improved and costs reduced in the second half of the year.
Read: Northern Rock reports hefty full-year loss, for more.
10:46 – International oil and gas explorer Range Resources (RRL) said production on the Russell Bevly #1 well has begun to stabilise following the successful fracture stimulation of the lower two zones.
The rates so far are consistent with the targeted rate of 44 million cubic feet per day and 320 barrels of oil per day per well.
The upper two zones, which have a larger payzone, are still on track to receive fracture stimulation later this month.
10:29 – UK-focused oil explorer EnCore Oil (EO.) has revealed that it is considering floating a newly formed company on AIM in a bid to fund its exploration drilling programme.
EnCore said the new company would house its exploration assets, with EnCore retaining a significant shareholding in a move that would both “maximise the potential value of our portfolio and avoid undue further dilution”.
For the full story on its plans – and the lowdown of its half-year loss – read: EnCore unveils plans to float new company.
10:10 – Insurance giant Prudential (PRU) saw operating profit up by almost a quarter in 2010 and said its results were significantly ahead on all key measures.
In its full-year results, the FTSE 100-listed firm posted operating profit of £1.94 billion and thanked its “disciplined approach to capital allocation, proactive risk management and focus on profitability” for the strong performance.
For more, read: Prudential’s results ahead of targets.
09:51 – Safety technology group Hamla (HLMA) has acquired Swiss-based Medicel AG and its subsidiary Robutec GmBH.
The deal, for an initial cash consideration of CHF70 million (£46.6 million), will extend Hamla’s presence in the ophthalmic surgical instrument market.
Medicel had pre-tax profit of CHF8.5 million (£5.7 million) in the financial year to end-December 2009.
09:25 – Rolls-Royce (RR.) has announced a joint venture company with Daimler – underlining their intent with plans for a public tender offer for Germany’s Tognum AG.
Tognum’s shareholders will be offered €24 per share, representing a total consideration of around €3.2 billion (£1.98 billion) – and a c30% premium on Tognum’s Frankfurt-listed shares closing price on Friday.
The news boosted the shares to the upper echelons of the FTSE 100 winners’ board in morning trading.
09:07 – The FTSE 100 (UKX) got off to a weak start in midweek trading, weighed down by poor showings from the banking and mining sectors.
London’s top share index was down 34 points at 5940, with British American Tobacco (BATS) bottom of the pile early on.
Also struggling was British oil major, Tullow Oil (TLW), despite profit soaring by 361% last year, boosted by higher oil prices.
Pre-tax profit shot to $152 million in the 12-month period, in what chief executive Aidan Heavey hailed a “transformational year” for the company.
For the full story, read: Oil prices lift Tullow’s profit sky high.
US markets…
A banking rally – led by Bank of America’s (BAC) plans to up dividends – helped Wall Street soar on Tuesday.
The Dow Jones climbed 124 points to 12214, with the Nasdaq jumping 20 points to 2766 and the SP 500 rose 12 to 1322.
At a glance…
Asian markets
Nikkei 225: 10590 (up 64)
Hang Seng: 23810 (up 98)
Shanghai Composite: 3144 (up two)
Commodities
Gold: $1,425.11
WTI crude oil: $104.33
Currencies
GBP/USD: 1.6162
GBP/EUR: 1.1657
EUR/USD: 1.3865
08:00 – The FTSE 100 (UKX) opens at 5674.