London pre-open: Early advance expected

19th Jun 2009 07:39

Overnight gains in the US are likely to give London a modest 20-point lead in early deals, according to futures prices.Housebuilder Taylor Wimpey may increase outlet openings during the second half of the year following continued stability in the UK housing market since April’s final results. Its net private reservation rate remains at around 0.6 per site per week, with prices broadly flat and cancellation rates below the long run average. “Whilst wider economic conditions remain weak and rising unemployment could still have an effect on our markets, the severe downside scenarios for which we have been planning now appear less likely to materialise,” the group will tell shareholders at today’s AGM. The firm, whose order book currently stands at £971m, up 73% from the £562m reported for the end of 2008, currently operates from 337 outlets, down from 386 at the end of December.Troubled private equity group Candover Investments has agreed the sale of oil and gas research house Wood Mackenzie to Charterhouse Capital Partners for an enterprise value of £553m. Candover will receive £36.2m in total, made up of cash now of £19.6m and the rest on an earn-out basis. Candover's 2008 year-end valuation of Wood Mackenzie was £20.5m (9.2% of net asset value).Dairy Crest said its pension fund has purchased a second bulk annuity, which insures a further tranche of liabilities for pensions in payment. The group also said it has recently begun consultation with employees looking at various options for the future of its final salary scheme. David Felder, chairman of the trustee, said: "the Trustee sees the insurance of this further tranche of pensioner liabilities as another key step in reducing the Fund's overall risk exposure. We will continue to work closely with the Company to enhance the security of members' benefits."Services group Mavinwood anticipates that the trading out-turn for the document handling division for the twelve months ending 31 December 2009 will be a bit weaker than 2008. The group said Peter Cox has been loss making in the first half and steps are being taken to return it to profitability. ANSA Building Services, which it sold last week, is now running off its principal contract. The impact of closing out the contract together with associated termination costs is estimated at £1.8m, which will go down as an exceptional charge at the year end. The cash outflow is mitigated however by the collection of working capital of approximately £1.2m, said the group.Serica Energy said it has been awarded two offshore permits in Morocco. The group has signed agreements to the contiguous areas of Sidi Moussa Offshore and Foum Draa Offshore. The agreements are valid for up to 8 years and cover a total area of approximately 12,700 square kilometres in the sparsely explored Agadir Basin, about 100 kilometres south west of the Moroccan city of Agadir.White collar recruiter Harvey Nash has traded in line in the first three months of its current year despite a weak market for permanent recruitment and limited visibility. Revenues rose by 3% in the three months to end April. Demand for permanent recruitment services suffered due to the economic slowdown and has continued to soften, but this was partially offset by demand for outsourcing and offshoring.