London pre-open: Retailers to lift Footsie

20th Apr 2010 07:35

Footsie is expected to move higher in early dealings as retailers come into focus on a busy day on the company news front.Tesco reaffirmed its position as the UK's supermarket powerhouse as profits last year surged to nearly £3.2bn with underlying growth of more than 10%. Total sales in the year to end February rose by 6.8% to £62.5bn stripping out petrol. Including fuel, the underlying growth rate rises to 8.5%.The Primark clothing chain was once again the star of the show when Associated British Foods reported better than expected first-half profits. Group pre-tax profit came in at £330m in the 24 weeks ended 27 February compared with £178m last year and better than expectations of around £317m. Luxury fashion label Burberry expects to post pre-tax profits ahead of expectations for the year to March 31 after shoppers rushed to stock up on fashions for the coming spring and summer. The outfitter famous for the checked pattern displayed on its clothing said sales totalled £327m in the fourth quarter, compared with analysts' estimates of about £310m, taking Burberry's sales for the half year period to £707m.Drinks firm SABMiller said financial performance for the year remains in line with expectations with organic lager volumes level with last year and full year soft drinks volumes up 2%. The group said consumer demand has affected by poor global economic conditions throughout the year although some of the emerging markets showed signs of recovery towards the end of the financial year.Publisher Reed Elsevier said, as expected, it should report a modest reduction in adjusted operating margin in 2010 due to a weak revenue environment and increased investment in legal markets. The group said advertising and promotion and certain other markets remain difficult although the rate of revenue decline is slowing as comparatives get easier.