London pre-open: Heading higher

29th May 2009 07:40

London looks like starting the session in style following last night's three-figure gains on Wall Street, with the blue chip index predicted to rise over 40 points early on. Water company Severn Trent saw profits fall for the year due to increased energy and commodity costs. Profit before tax for the year fell 12.9% to £167.6m. Underlying profit before interest, tax and exceptionals was flat at £470m, affected by increased energy and commodity costs, an increase in infrastructure renewals expenditure and depreciation in Severn Trent Water. Turnover from continuing operations rose 5.8% to £1,642.2m. The full year dividend rises 2.6% to 67.34p per share.Outdoor clothing and camping equipment retailer Blacks Leisure had a tough year, with growing losses at it Boardwear business pushing the group further into the red. Loss before tax grew to £14.4m in the year ended 28 February 2009 from £9.3m a year ago on revenue down to £267.6m from £294.4m. The loss before exceptional items was £6.8m versus a £300,000 profit last time. On a brighter note, the firm said it has made an encouraging start to the new financial year, with total sales for the 12 weeks to 23 May down 4.6% and by 0.5% on a like for like basis. There's no final dividend.Gas and electricity pipeline grid operator National Grid is to appeal a Competition Appeal Tribunal (CAT) judgement on gas metering contracts. On 29 April, the tribunal agreed with regulator Ofgem's original finding that the company was in breach of competition law by entering into a number of metering contracts with UK gas suppliers in 2004. CAT did reduce an original fine of £41.6m to £30m, but it was still the highest penalty for abuse of dominance imposed so far in the UK. Brewer and pub owner Greene King has received 93.2% acceptances for its rights issue to raise approximately £207.5m. The group said it received valid acceptances for 75.2m of the new shares. The remaining 5.4m shares will be subscribed by sole bookrunner Deutsche Bank. The three for five rights was priced at 270p per share.Drug major AstraZeneca's application for Seroquel XR extended release tablets to treat recurrent depressive episodes in adult patients with major depressive disorder (MDD) has been refused. As a result, it has referred its application to the Committee for Medicinal Products for Human Use (CHMP - a scientific committee of the European Medicines Agency, EMEA). Smiths News has negotiated a new five year distribution contract with newspaper publisher Trinity Mirror. The total value of the contract is circa £183m per annum. The previous incumbent was Dawson News. It has lost a strong of distribution contracts recently. It said the contract loss was "not unexpected". Smiths said the new contract will be effective from October 2009 and will generate an annualised increase in sales revenue of circa £47m of which £5m is regional titles.