London pre-open: Weak start predicted

10th Aug 2009 07:44

London looks set to make a slightly weaker start in what is likely to be a quiet day for both corporate and economic news.Life insurer Friends Provident is close to agreeing a takeover by Resolution after the terms of the original offer were improved sufficiently for talks to start between the two sides. In a statement, Friends Provident confirmed it had received a new offer of 0.9 Resolution shares for each Friends Provident share. The offer also includes a partial cash alternative up to £500m.Construction and regeneration group Morgan Sindall said first half results were in line with expectations despite posting a 28% slide in profits due to the challenging conditions in the period. Profit before tax fell to £20.5m from £28.6m on revenue that slipped 8% to £1.14bn. Troubled Irish airline Aer Lingus carried 8.2% more passengers in July than last year as the number making short-haul journeys increased, though long-haul passenger numbers fell sharply and the load factor fell. Total passenger numbers rose to 1,117,000, an increase of 8.2% compared to July 2008. Short haul passengers were 1,004,000, an 11.2% increase on July 2008 and long haul passengers were 113,000, a 12.4% decrease on July 2008.Occupancy fell again at care home operator Southern Cross over the last three months with the average occupancy of the mature portfolio 87.5% (2008: 89.8%). Revenues in the 14 weeks to 5 July were £254.8m (2008: £245.6m) and operating profits £22.2m (2008: £24.4m). Operating margins were 31.8%, 0.2% lower than during the same period in the prior year.Recruitment firm Harvey Nash said trading in the six months to June has remained broadly in line with expectations underpinned by its broad portfolio of services. Revenue for the period is in line with the previous year while gross profit for the same period has recorded only a modest decline of 5%, it said. Trading cash flow has been strong, and operating profits are expected to exceed £2m for the period.Just Retirement has extended the timeframe within which Avalon would need to submit a firm offer proposal for the specialist life assurance group. Avalon, which made an approach for Just Retirement in June, now has until 25 September 2009 to make a bid. "This extension will enable the Company to publish its results for the full year ended 30 June 2009 prior to the announcement of any offer, if made," said Just Retirement.