FTSE 100 movers: Compass hit by sales slow down

23rd Jul 2009 12:50

Contract caterer Compass Group slumped after a disappointing interim management statement but broker Charles Stanley reckons the share price fall makes the case for purchasing the shares even more compelling. "The share price has reacted adversely to the Q3 update but we believe that the only disappointment with the update is that we will not be upgrading our profit forecasts," Charles Stanley analyst Tony Shepard said."Overall, the organic sales performance was no worse than expected but the delivery of a further 50 bps [basis points] improvement in the profit margin was slightly better than anticipated," the broker said. Compass forecast full year revenue growth on a constant currency basis of around 1% and broadly flat organic revenue growth. Water companies are also under pressure after Ofwat's initial price review for the five years between 2010-15 came in much tougher than expected. The outline proposals would see the average water bill fall by 4% or £14 to £330 before inflation between 2010 and 2015. The proposals still leave room for £21bn of investment over the five-year period, Ofwat said. Severn Trent, Pennon and United Utilities have all fallen sharply on concerns Ofwat's stance may hit dividend prospects.FTSE 100 - RisersFresnillo (FRES) 630.50p +6.86%Kazakhmys (KAZ) 778.50p +5.13%Eurasian Natural Resources (ENRC) 826.50p +4.62%Vedanta Resources (VED) 1,649.00p +3.97%Xstrata (XTA) 745.70p +2.86%HSBC Holdings (HSBA) 568.30p +2.27%Lloyds Banking Group (LLOY) 73.91p +2.23%FTSE 100 - FallersCompass Group (CPG) 325.75p -7.65%Severn Trent (SVT) 1,032.00p -7.28%United Utilities Group (UU.) 476.25p -5.22%Capita Group (CPI) 690.50p -3.09%Kingfisher (KGF) 200.00p -2.91%Pennon Group (PNN) 493.25p -2.81%Associated British Foods (ABF) 768.50p -2.35%