London pre-open: Shares to retreat

15th Jun 2010 07:37

London's top stocks are expected to drop in early dealings following yesterday's good gains, with investors likely to focus on results from supermarket giant Tesco. Tesco said it is continuing to see evidence of a steady consumer recovery in Britain as it reported UK like for like (lfl) sales growth of 1.1%. With the effects of January's VAT increase stripped out, UK lfl sales growth was 0.1% in the thirteen weeks ending 30 May. Total group sales increased by 8.2%, while growth excluding petrol was 6.9%. Housebuilder Bellway said uncertainty surrounding the new government's fiscal policy has resulted in a slight reduction in visitor site visits and weekly sales rates. "Nevertheless, with a strong forward order book, net cash in the bank of £55 million and expected future margin improvement, Bellway remains well positioned to continue to deliver earnings growth," it said. Fashion retailer Ted Baker has seen a spurt in sales in the year to date, with its wholesale business also seeing a marked upturn. Total group revenue jumped by 18% in the 19 weeks from 31 January to 12 June. Gross margins were maintained in line with expectations, it added.Fashion retailer Alexon said recent like-for-like sales were down due to volcanic ash cloud disruptions and the general election. Group like-for-like sales for the 19 weeks ended 12 June 2010 fell 5.4%Healthcare staff supplier Healthcare Locums today confirmed that all discussions in relation to its recent bid approach have now ended.