London pre-open: Small lead expected

31st Mar 2011 07:37

UK blue chips look like eking out a handful of gains when trading gets underway at 8am following a decent session in the US last night.In company news, Contract caterer Compass's good start to the new financial year has continued through the six-month period, leaving it comfortable with forecasts for the full-year. In a statement ahead of interims on 18 May, the firm said constant currency revenue growth, including the impact of acquisitions, was about 9.5%, with organic growth at 5.5%. There's also been a "slight" increase in like for like revenue against the weaker comparatives of the first half of 2010. Margin has improved by about 20 basis points.Babycare retailer Mothercare saw margins squeezed in the quarter to 26 March after slashing prices to clear its autumn and winter stock amid a weak consumer environment. Total sales were up by 10.2% from the same period the previous year, with international operations leading the way. Sales in Britain were up by 4.7%, though they were down by 2.4% on a like-for-like basis, which excludes the wholesale business.Tour operator TUI Travel says underlying trading has been "satisfactory" during the last six months and, like Thomas Cook on Tuesday, has not changed its estimate of the cost of trouble in North Africa. Uprisings in Egypt and Tunisia are expected to have cost the company between £25m and £30m in the second quarter, as flagged last month.Energy supplier Scottish and Southern Energy (SSE) is on track to report underlying profit before tax for the full year in line with the consensus of analysts' forecasts, which currently stands at £1,301m. The company, which is about to enter its close period on Friday prior to publication of full year results on 20 May, said it expects to deliver a full-year dividend increase of at least 2% more than Retail Price Index inflation, and of at least 74.5 pence per share.LW