London open: Stocks edge higher

28th Apr 2011 08:31

Shares have got off to a firmer start as the stream of company updates continues.Costa Coffee and Premier Inn owner Whitbread shrugged off the economic difficulties said to be plaguing Britain as it upped its dividend by 17% and announced plans to step up expansion plans. Revenues in the year to 3 March were up by 11.5% from the previous year to £1.56bn, with underlying pre-tax profits jumping by 20.1% to £287.1m. The final dividend rises by 4.9p to 33.25p, making for a full-year dividend up 6.5p at 44.5p.But Whitbread said that like-for-like sales growth has been slower so far in the new financial year and the shares are lower.WPP is in demand. Despite tougher comparatives in the second half, the advertising giant has upped its guidance for the full year after a strong first quarter which saw revenues rise by 7%. Group revenue jumped to £2.22bn in the first three months of the 2011, with North America, its largest market, growing by 7.1%. Meanwhile, profits and operating margins were said to be ahead of budget and well ahead of 2010.US healthcare reform measures and competition resulting from the expiry of exclusive rights over its drugs hurt revenues at drug giant AstraZeneca in the first quarter. Pre-tax profits fell to $3.565bn from $3.857bn in the first quarter of 2010, on revenues that were down to $8.292bn from $8.576bn. Underlying earnings from Anglo-Dutch oil giant Royal Dutch Shell topped market expectations in the first quarter of 2011. First quarter 2011 earnings excluding certain items and on a current cost of supplies basis were $6.3bn, compared with $4.8bn in the first quarter of 2010. Broker Charles Stanley had forecast adjusted earnings of $5.8bn.Financial Times publisher and education group Pearson said first quarter revenue increased 9%, boosted by its education and publishing division, and still expects margin and earnings growth in 2011. The group, which has recently acquired a string of acquisitions including US software firm Schoolnet, said revenue at constant currencies rose 10% to £1.03bn.Bus group Stagecoach said overall trading remains good and is confident about its trading prospects. Like for like revenue at the group's UK Bus division in the forty-eight weeks ended 3 April 2011 increased 2.2%. Sales at its UK Rail unit, which includes the South West Trains London commuter franchise, rose 6%.Life assurance group Standard Life saw strong sales across its long-terms savings business in the first quarter of 2011, while assets under administration (AUA) edged higher on the back of a net inflow of funds. "Demand for our market-leading products and services continues to be good and has led to encouraging growth in customers, sales and assets across the group. Total long-term savings new business sales increased by 25% to £5.8bn (2010: £4.6bn)," the company said.The high gold price is pushing up shares in precious metals miners such as Petropavlovsk, African Barrick and Fresnillo.