London pre-open: Stocks set to slide

25th Feb 2010 07:43

London is set to open lower despite a set of figures from RBS which suggested there is light at the end of the tunnel for the bank. City traders expect the blue-chip index to open around 26 points lower at 5,316.Royal Bank of Scotland (RBS) saw its net attributable loss narrow markedly in 2009 to £3.6bn from £24.3bn in 2008. The market consensus had been for a loss of £3.85bn, though forecasts varied wildly. Impairments surged to £13.9bn from £7.4bn in 2008, but fourth quarter impairments were 5% lower than the third quarter, prompting the board to suggest that the worst is now over.The world’s second largest tobacco company, British American Tobacco increased pre-tax profit by 11% in 2009, at the lower end of expectations, although revenue did better. Revenue rose 17% to £14.21bn, or 10% at constant rates of exchange, on good pricing momentum and volume from acquisitions.Centrica bounced back through the billion pound profit barrier and announced a 5% dividend rise. Profit on a continuing basis was up 15% to £1.104bn in the year ended 31 December (2008: £964m). Revenue rose to £21.96bn compared with £20.87bn last time.Outsourcing giant Capita announced a strong improvement in pre-tax profits, but the rise still came in below market forecasts. Pre-tax profit for the year ended 31 December rose to £258.1m, up from £226.6m in 2008 but below broker forecasts of £321m. However, underlying pre-tax profits increased to £325.1m from £277.2m last time. Revenue came to £2.69bn compared with £2.44bn last time, in line with expectations.Net written premiums of £6.7bn in 2009 were up 4% on 2008 levels at insurer RSA Group. Profit before tax tumbled 27% to £554m from £759m in 2008. Property group SEGRO saw its adjusted net asset value (NAV) per share slip to 362 pence at the end of 2009 from 459p on a pro-forma basis as the end of 2008. Adjusted profit before taxation improved to £104.3m from £89.3m the year before.