London open: Footsie starts down

28th May 2009 08:14

London's top stocks have started in the red as the US markets finished lower yesterday. Hedge fund manager Man Group is the biggest faller after it saw profits slide for the year. "The past financial year saw extraordinary turmoil in financial markets globally which put extreme stress on business models across the financial services industry. Man has not been immune," said chief executive Peter Clarke. Pre-tax profit slumped to $743m from $2,079m last year on revenue that slide to $2,433m from $3,222m before.United Utilities said it posted a robust set of results despite the difficult economic conditions as profits rose 11% in the year. Profit before tax for the 12-months rose to £529.8m from £478.3m last year as revenue increased 3% to £2,435m. But the group slashed total dividends to 32.67p per share from 46.67p previously.Mining giant Rio Tinto has received a request from the US Federal Trade Commission (FTC) for more information regarding its pending sale of the Jacobs Ranch coal mine in Wyoming. Sugar and sweetener firm Tate & Lyle posted a sharp fall in profits after facing impairment charges and tough trading conditions. Profit before tax in the year to 31 March fell to £113m from £182m the previous year even as revenues climbed to £3.55bn from £2.87bn. The fall in profits was largely due to an impairment charge of £97m decision to mothball a sucralose facility in Alabama and produce all sucralose from a newer facility in Singapore.Over-stretched plumbing supplies distributor Wolseley's trading profit more than halved in the first nine months of its financial year. The group said revenue in the nine months to the end of April 2009 was up 0.2% to £12.1bn, but was down 15% in constant currency terms. Trading profit fell 58%, or 65% at constant exchange rates, to £189m. Hochschild Mining has taken full control of the Moris mine in northern Mexico, buying the 30% stake owned by its joint venture partner. The Latin America-focused miner has paid $1.5m in cash to buy the 30% stake from EXMIN Resources. Higher sales in spite of the economic downturn helped the cash and carry group Booker post a sharp rise in pre-tax profits. Pre-tax profits in the year to 27 March climbed to £47.2m from £36.2m the previous year as total sales climbed to £3.2bn from £3.1bn. Speedy Hire said it plans to raise net proceeds of around £100m in a 9-1 fully underwritten right issue.Payment services group PayPoint saw profits rise 19% in the year and said trading in the current year so far is in line with expectations. The group expects further growth in the UK by increasing market share in bill and general payments, mobile top-ups, and ATMs.