London pre-open: Lower start expected

12th Nov 2009 07:38

Footsie is expected to slip back slightly in early dealings following good gains yesterday.Telecoms giant BT has reported second quarter revenue in line with expectations and thinks it will generate at least £1.6bn of free cash flow this year versus its old target of over £1bn. Revenue for the three months to 30 September dipped 3% to £5.12bn, or 6% excluding foreign exchange movements and acquisitions. Adjusted profit before tax fell 6% during the quarter to £461m and by 12% for the half-year to £888m.Centrica is trading as expected, with the gas supplier's lower effective tax rate and strong performance from the UK downstream business offsetting a drop in gas production and profitability. Gas production fell 50% in the third quarter from the same time last year and is expected to be down by about 25% for the full year.Outsourcing group Serco said customers' need to improve efficiency in the current economic climate is providing it with more opportunities to win contracts as it reported continued strong trading. Serco, whose activities include operating London's Docklands Light Railway and vans used to transport prisoners, said it remains on track to deliver on its financial guidance for 2009.Private equity group 3I reduced losses at the interim stage and has made a substantial dent in its debt mountain, helped by its £732m right issue. Loss before tax in the six months to 30 September narrowed to £57m from £140m a year earlier, after the company took a £242m hit on exchange rate movements.AMEC, the engineering and project management company, is trading in line with expectations despite the challenging external environment. 'We expect to deliver a margin approaching 8% this year and remain confident that with the benefits of our Operational Excellence programme, we will achieve our margin target of 8.5% in 2010,' said chief executive officer Samir Brikho.