London pre-open: Stocks set for modest retreat

10th Feb 2011 07:41

It's looking like a weaker start for London Thursday as small gains in the US overnight fail to offset losses in the Far East.Engine maker Rolls-Royce made slightly more money than expected in 2010 and predicts good profit growth this year despite government spending squeezing customers in the defence business. Underlying profit before tax rose 4% to £955m for the 12 months on underlying revenue up 7% to £10.9m. Improved revenue mix from services, good cost control, a positive currency impact and broadly similar unit costs in the gas turbine activities were behind the record numbers.Price rises and improved volumes in North America and continuing growth in emerging markets helped drinks giant Diageo offset weakness in Europe to post a rise in profits in the six months to December 31. The maker of Guinness and Smirnoff vodka saw pre-tax profits rise to £1.61bn from £1.39bn on sales up to £7.13bn from £6.92bn.David Illingworth, chief executive officer of Smith & Nephew said the company put in a strong finish to a year that was his last full term as boss of the artificial joint specialist. He'll relinquish the role at the AGM on 14 April, to be replaced by Olivier Bohuon, previously CEO of Pierre Fabre and executive vice-president at Abbott Laboratories. S&N saw revenue in the final quarter of 2010 remain more or less unchanged from a year earlier at $1,066m. That brought full year revenue up to $3,962m, up 4% from $3,772m.Oil firm Tullow Oil has discovered oil and gas in its Teak-1 exploration well in the West Cape Three Points licence offshore Ghana. The well contains around 73 metres of net hydrocarbons in two Campanian and three Turonian-aged reservoirs. Angus McCoss, exploration director at Tullow, called it an "excellent" outcome and a "great start to our 2011 multi-well exploration campaign in the West Cape Three Points licence".