London pre-open: More gains expected

24th Aug 2009 07:48

Footsie is expected to build on its strong gains of last week in early dealings, heading ever closer to the 5,000 point mark.Oil services group Petrofac lifted its dividend for the six months to June 30 as revenues and profits rose in spite on the sharp drop in oil prices from the same period the previous year. It will pay out 10.7 cents a share, compared with 7.5 cents for the previous half year period. Pre-tax profits for the period climbed to £174.3m from £160.8m as revenue rose to $1.59bn from $1.58bn.Distribution and outsource specialist Bunzl reported a rise in interim pre-tax profits but warned that the challenging economic environment will continue to put pressure on underlying sales and profitability. Profit before tax and intangible amortisation was up 4% to £115.5m although down 11% at constant exchange rates. Broker Charles Stanley expected a slightly better improvement to £117m.Chemicals company Yule Catto expects full-year results to be slightly ahead of expectations after a solid first half. Underlying profit before tax, which excludes certain items, rose by 14% to £19.9m in the six months to 30 June 2009 from £17.4m in the first half of last year.Housebuilder Bovis saw profits drop sharply in the half year due to the adverse impact from significantly lower home sales prices, though private legal completions grew by 18%. Pre-exceptional profits before tax came to £1.2m in the six months ended 30 June, down from £11.7m in the first half last year. Post-exceptionals, the group made a loss before tax of £8.6m compared with a £9.5m profit last time.Engineer and construction contractor Balfour Beatty has bagged a road building contract in Fort Worth, Texas. Its US civil engineering subsidiary has been selected to work on phase four of the State Highway 161 Tollway project. The contract is expected to be worth around £252m.