London pre-open: Gains ahead despite corporate losses

6th Nov 2009 07:37

London's top stocks are expected to open around 20 points higher despite news of huge losses at British Airways and Royal Bank of Scotland.British Airways reported a record loss of £292m and urged Unite to withdraw its plans for a strike ballot and resume talks with the carrier.The loss before tax of £292m, or £244m before restructuring costs, compares with a profit of £52m last year. Revenue was down 13.7% to £4.1bn. Net losses came to £208m.More huge write-offs sent Royal Bank of Scotland deep into loss over the past three months.The state-controlled bank that on Tuesday announced another £33bn cash injection from the government lost £2.1bn in the three months to September compared to a profit of £1.9bn. Nine-month losses now total £2.06bn against a profit £1.8bn this time last year.Pest controller Rentokil Initial more than doubled profit at actual exchange rates during the third quarter as losses at its parcels arm City Link narrowed substantially.Interim profits slumped at Tate & Lyle, with the sugar and sweeteners group cautioning that US markets remain under pressure. Sales in the half year to September increased by 7% to £1.82bn. Adjusted operating profit reduced by 1% (16% in constant currency) to £148m, with underlying profit before tax down by 13% (25% in constant currency) to £112m.