London open: Dull start after Dow sell off

2nd Sep 2009 08:46

The gloomy start to September has continued with talk of another big bank fund raising encouraging sellers.Lloyds is the worst performer after the Guardian reported it has won backing from its investors to raise £10bn to allow it make a partial withdrawal from the government's asset protection scheme. Royal Bank of Scotland, another ARP beneficiary, is lower in sympathy. Retailers are in a better mood after DSG came in better than expected. Like for like sales fell 6% at the consumer electronics retailer during the 16 weeks to 22 August, although a slightly smaller than feared drop in revenue was 'encouraging'. Total group sales fell 6% in sterling terms, with UK computing down 17% and UK & Ireland electricals reporting a 13% slump in sales. Next and Home Retail are both showing gains. Eaga, an energy efficiency consultant, posted a rise in profits and revenues as the trend towards green energy remained strong during the downturn. In the year to 31 May, pre-tax profits climbed to £37.7m from £28.4m as revenues rose to £738.9m from £639m.Stockbroker and fund manager Hargreaves Lansdown is to pay a special dividend raising its total payout by 29% as it defied volatile markets to increase revenues, profits and assets under management last year. Profit before tax for the year to June increased by 20% to £73.1m from £60.9m.Business and IT consultancy Charteris reiterated that it expects to break even before exceptional items in the second half as difficult trading conditions prevail. The company's cash position at the year end was around £1.5m, the group confirmed in Wednesday's trading update.Contractor Galliford Try has been confirmed as one of the contractors on Network Rail's £1bn five-year Enhancements Multi Asset Framework. The programme covers enhancement projects worth up to £15m and includes platform extensions, track, signalling, electrification, telecommunications and other projects to help expend the rail network's capacity.Great Capital Partnership, Great Portland Estate's joint venture with Liberty International subsidiary Capital & Counties, has sold Spirella House, near Oxford Circus in London's West end, to Calzedonia for £22.9m. The price agreed is 12.5% ahead of the March 2009 book value and reflects an equivalent yield approaching 5%.