London midday: Comet sale talk jolts Kesa and Dixons higher

22nd Jun 2011 12:02

Stocks are struggling to move into the blue as the Greek debt crisis drags on though there are some big share price movements.Back in London, the focus is on corporate news flow. Kesa Electricals is going well even after poor trading at its UK chain Comet held back sales in the year to 30 April and the electrical retailer said trading has been weaker than expected so far in the current financial year. But the shares are higher after chairman David Newlands told reporters the company is looking at options for Comet, including a sale. Fellow electrical retailer Dixon's Retail, whose results are due tomorrow and which would stand to benefit from Comet's exit from the market, is also posting big gains.The chips are down for Imagination Technologies. The designer of graphic chips for computers and smartphones' sales were slightly short of expectations in the year to 30 April, but the company unveiled an impressive new target of annual sales of 1bn devices using its technology in five years. Revenue grew by 21% from the previous year to £98m. Analysts had been looking for a figure some £100m or so higher. Pre-tax profit rose to £16.4m from £10.2m.Broker JP Morgan has cut its target price on Imagination to 570p from 600p. "We see an increased investment in R&D to support future growth and challenging trading for Systems (the division that includes PURE) as offsetting the strong Technology revenue growth," it said.Aggreko, the Scottish company that is a global player in the temporary power market, has bagged a $37m 12-month contract with the Tanzania Electric Supply Company (TANESCO).Central London-focused property group Capital and Counties is set to submit planning applications for the Earls Court and West Kensington Opportunity Area in west London after two years of consultation.