London open: Retailers offer mixed bag

16th Sep 2010 08:26

London is seeking direction in the early going despite a welter of company results for the investment community to digest.Today has been termed "retail Thursday" in some quarters with a number of the big names from the edge of town trading estates reporting.Interim profits from DIY retailer Kingfisher were at the top end of the range of expectations as the group achieved strong growth in each of its three main operating divisions. Adjusted pre-tax profit for the 26 weeks ended 31 July 2010 rose 22.9% to £354m from £288m the year before, and was above the median forecast of £342m.The May to July period was good for consumer electricals retailer Kesa as the company cashed in on the World Cup. Revenue grew 4.3% on a like for like basis from a year earlier, above market expectations, with the company doing a roaring trade in TVs, including the 3D variety. French unit Darty ramped up sales in local currency by 7.8%, or 5.1% like for like, while Comet made it 6.3% and 4.3% respectively.Continuing the retail theme, homewares seller Dunelm saw like for like sales grow 8.0% in the 52 weeks to 3 July 2010. Profit before tax improved to £76.8m from £53.5m the year before, which covered a 53 week period. The company said it had made a good start to the current financial year but the market was disappointed to learn that chief executive Will Adderley will be stepping down after 15 years in the hot seat. Cash and carry wholesale group Booker revealed a 6.1% increase in second quarter sales, helped by the World Cup and strong demand for fresh fruit and vegetables. For the 12 weeks to 10 September like-for-like sales rose by 5.9%. Fruit and vegetable sales soared 46%. Meat sales increased 10%.Scottish dairy group Robert Wiseman delivered an 8.5% rise in overall milk sales but warned that as a result of intense competitive pressures across all sectors of the market, operating profits going forward, will be affected. The group, which supplies about 30% of the milk consumed in Britain every day, said it remains confident that sales volumes for the year will be in line with expectations. Sector peer Dairy Crest fell back in sympathy with Wiseman.Away from the retail sector fixed income fund manager BlueBay said that as a result of cost controls and a big hike in revenue margins and profitability have grown to "within a whisker" of pre-crisis highs.Chemring, the military decoy flares and mine detection firm which earlier this week had a fire at one of its facilities in Tennessee, said that it had seen a 23% increase in revenue for the four months since May 1. Gulfsands Petroleum's first half sales surged 81% on increased output and oil prices. Pre-tax profit soared to $18.7m for the six months ended 30 June 2010 from $3.9m the year before. Sales for the period jumped to $52.5m.FTSE 100 - RisersKingfisher (KGF) 227.30p +3.84%Eurasian Natural Resources (ENRC) 891.50p +2.94%Cable & Wireless Worldwide (CW.) 76.25p +2.76%Home Retail Group (HOME) 219.10p +2.14%BP (BP.) 412.00p +1.95%Pearson (PSON) 1,019.00p +1.80%Invensys (ISYS) 280.70p +1.30%TUI Travel (TT.) 223.80p +1.27%Royal Dutch Shell 'B' (RDSB) 1,825.00p +0.97%Royal Dutch Shell 'A' (RDSA) 1,877.50p +0.89%FTSE 100 - FallersBT Group (BT.A) 140.70p -2.56%Rolls-Royce Group (RR.) 572.50p -2.05%Vedanta Resources (VED) 2,118.00p -0.89%Vodafone Group (VOD) 159.85p -0.75%Rio Tinto (RIO) 3,548.00p -0.69%Antofagasta (ANTO) 1,144.00p -0.69%Xstrata (XTA) 1,152.50p -0.65%Cobham (COB) 234.80p -0.63%BAE Systems (BA.) 338.70p -0.62%Standard Chartered (STAN) 1,913.50p -0.52%FTSE 250 - RisersUnited Business Media (UBM) 650.00p +7.62%BlueBay Asset Management (BBAY) 336.20p +4.90%Kier Group (KIE) 1,103.00p +2.99%FTSE 250 - FallersRobert Wiseman (RWD) 342.00p -29.56%Dairy Crest Group (DCG) 350.20p -6.81%Unite Group (UTG) 194.40p -4.61%