London open: Strong start for FTSE 100

25th Nov 2010 08:30

Shares have got off to a good start following a warm reception for company updates.Capital Shopping Centres Group, the shopping centre arm of what used to be Liberty International, has raced ahead after it put pen to paper to purchase Manchester's Trafford Centre in a deal worth £1.6bn. WS Atkins is also in demand. The engineering contractor reported a fall in revenues and profits in the half year to September 30 as it cut back on staff to cope with difficult conditions and said that the results of recent government spending revenues were broadly as expected, though some uncertainty remains. Also higher is property investment firm Helical Bar, which posted an operating profit for the half year compared to a loss the previous year, maintained its dividend and is confident investment deals now will provide future trading profits.Not all stocks have reacted well to trading updates though. Daily Mail Group is lower after reporting a rise in profits while warning that it is cautious on the outlook. After its first set of results under its new moniker, Dixons Retail is lower. The electricals retailer has posted interims largely in line with expectations though the underlying loss beat some forecasts. Food ingredients firm Tate & Lyle is to sell its molasses business to Belfast grain trader W&R Barnett for £67m in cash. Proceeds from the sale will be used to reduce net debt. Water and waste group Pennon managed a small increase in half-year profit as a big jump at recycling business Viridor offset a decline at South West Water. Profit before tax for the six months ended 30 September grew 0.7% to £96.2m, with Viridor contributing £28.6m, up 29%, and South West Water £70.2m, down 0.6%. Residential housing specialist Grainger narrowed full year losses but it remains cautious about growth over the next two years. The group reported a pre-tax loss of £20.8m for the year ended 30 September compared to a loss of £170m in the prior year. Full-year group revenues declined to £244.5m from £302.2m a year ago. Travel firm Thomas Cook is to enter the Russian market through a joint venture with a leading Russian holiday company. Thomas Cook and VAO Intourist, Russia's longest established travel business, will form a joint venture focused on expansion in Russia and the other CIS (Commonwealth of Independent States) countries.