London pre-open: Market set for flat start

16th Dec 2009 07:41

The Footsie looks set to open barely changed, following on from yesterday's session which saw losses narrow towards the close.There have been some upbeat trading statements that might provide some share price action, but the update from Punch Taverns does not fall into the 'upbeat' category. The pub chain's trading has remained difficult and the challenging economic environment plus a smaller pub estate will affect profitability in the short term, it warned today. The level of headroom on its key debt service coverage financial covenant ratios will be affected and Punch does not expect the cash upstream ratios to be met this financial year.Oil & gas facilities service provider Petrofac expects full year profits to be at least 25% higher than last year. The company has had a good year in the contracts front and said that with trading across most of its businesses continuing to improve, it should make profit after tax of at least $330m, barring unforeseen circumstances. Retailer Kesa Electricals has reported a bigger than expected first half profit and better than forecast like for like sales at its Comet chain. The group made adjusted pre-tax profit of £14.9m in the six months to 31 October, trumping analysts’ predictions for about £12m. It lost £103.8m a year ago due to a £114m charge. Like for like sales at Comet rose 2%, ahead of forecasts for 0-1.5%. Power station operator Drax expects underlying profits to beat market forecasts this year, despite lower prices for electricity, but is more cautious on pricing going forward.A US Food and Drug Administration (FDA) advisory committee has given a favourable verdict on the use of AstraZeneca’s anti-cholesterol drug Crestor. The FDA’s Endocrinologic and Metabolic Drugs Advisory Committee (EMDAC) voted by 12 to four, with one abstention, in favour of the judgement that AstraZeneca has established sufficient benefit to offset the observed risks to support the use of Crestor in certain target groups.Film studio Pinewood Shepperton said trading for 2009 has remained in line with market expectations.