London pre-open: FTSE to track Asian sell-off

30th May 2012 07:27

City sources predict the FTSE 100 will open down 38 points from yesterday's close of 5,391, taking its lead from losses in Asia on the back of concerns over Spain's banking sector, which last week saw the part nationalisation of its fourth largest bank, Bankia. Property company London and Stamford is licking its lips at investment opportunities in the UK after a year which saw profits shoot ahead. Underlying profit for the year to March 31st rose by 60% to £25.4m from £15.9m the year before. Reported profit slumped to £22.2m from £73.9m the year before, largely because this year it booked a profit of just £5.7m on the revaluation of investment properties, whereas the year before the profit had been £51.0m. Net rental income eased to £35.5m from £36.1m a year earlier.Utility provider Severn Trent announced profits were down but said it forecast no water restrictions for customers this year. Profit before tax fell 38% to £156.7m in the year to the end of March, something the firm blamed on operational, infrastructure and employment costs. Consumption from metered customers was also lower year on year knocking £10.5m off turnover. Total turnover was £1.77bn with earnings per share up 37% to 72.5p.Engineering and project management group AMEC has acquired a Brisbane-based consulting, engineering and technical services business to expand its Environment and Infrastructure service offering in Australia. Unidel, the 260-person company which provides environmental and infrastructure services similar to those of AMEC, was purchased for an initial cash consideration of A$27m (£16.9m). A further A$14m may be paid over three years but is subject to future profit targets.