http://personalfinance.iii.co.uk Syndicates the latest Interactive Investor Articles via RSS 2.0. Unysen RSS Feed Generator - v2.0206 Interactive Investor Rhian Nicholson

Markets hit a cold spell last week as profit taking and lower commodity prices spelled the end of the recent rally. Read our round-up of the last five days...

London markets were on a downhill slope after a sparkling start to the week failed to stick. The FTSE 100 (UKX) closed the week around 40 points amid a trickle of corporate results.
Supermarket chain Morrisons (MRW) put in a decent performance in the third quarter, news which was overshadowed by the departure of chief executive Marc Bolland to head up Marks & Spencer (MKS). Meanwhile, there were more signs of stability coming out of the housebuilding and real estate sectors.
Lloyds Banking Group's (LLOY) restructuring was also given the go-ahead from the European Commission.
Things remained strained on the economic front with the future of quantitative easing splitting the Monetary Policy Committee while inflation lifted for the first time in eight months.
The industrial metals and mining sector was the strongest performer during the week, piling on almost 5%. Utilities were also pushing forward with gains of around 3%.
However, most sectors lost ground over the last five sessions with the automobile and parts and forestry and paper sectors plunging by around 6%.
Wall Street was touching new 13-month highs at the start of the week before plunging heavily into the red amid weak third quarter housing data and a stronger US dollar. The latest jobless benefits data fuelled uncertainty over the state of the economy despite coming broadly in line with expectations. The Dow Jones dropped back below the 10,300 mark before gradually recovering some of the ground lost with the Nasdaq and the S&P 500 also faring badly.
A large fundraising from banking heavyweight Mitsubishi UFJ and a stronger yen combined to drag Japan's benchmark index down to a four-month closing low. The Nikkei slumped 127 points to 9549, with banks and exporters leading the falls. Japan Airlines also plunged after the country's transport minister refused to allay fears a court-led bankruptcy was awaiting the firm.
The news from Monday
** Housebuilder Persimmon (PSN) stoked hopes of recovery in the housing market with an improvement in third-quarter trading activity.
The UK's largest housebuilder by volume said activity levels have continued ahead of last year since reporting its first-half results at the end of August. Prices have also held firm while cancellation rates have dropped to around 16%.
** Solo Oil's (SOLO) share price plummeted by almost a quarter after the company announced a placing to raise £6.4 million to buy a 12.5% stake in Tanzanian oil well Likonde-1.
The AIM-listed company is placing a total of 128 million ordinary shares of 0.01p each at a placing price of 0.5p after it struck a farm-out deal with London-listed Aminex (AEX) for a share in the well.
** Plunging platinum prices and South African mining inflation have taken a hefty chunk out of full-year profits at mining powerhouse Lonmin (LMI).
The platinum miner posted a pre-tax loss of $272 million for the year to 30 September, compared with profit of $779 million in 2008. South Africa-focused Lonmin saw its revenue halve to $1,062 million for the year.
The action from Tuesday
** Interest rates are likely to remain on hold throughout 2010 despite the fact that inflation increased in October for the first time in eight months - and is expected to continue to rise in the month ahead.
The Consumer Prices Index - the official measure of inflation - rose to 1.5% in October from 1.1% the previous month. The Office for National Statistics, which publishes the monthly inflation figure, says the main upward drivers have been transport and food costs. Overall transport costs have risen by 3.5% year-on-year.
** Budget airline easyJet's (EZJ) full-year profits took a nosedive as soaring fuel costs rocked the aviation industry.
The airline's pre-tax profits plunged over 64% to £43.7 million in the 12 months ended 30 September. The £79.4 million reduction was driven by a substantial £86 million increase in fuel costs, the airline said.
** Barratt Developments (BDEV) reinforced the cautiously optimistic mood in the housebuilding sector as it reported higher reservations and a stronger order book.
The FTSE 250 group, which announced a £720.5 million rights issue and placing in September, said its private reservations since July were up 34% on the same period the previous year with the average selling price climbing by between 8% and 10%.
The action from Wednesday
** The multi-billion pound question on the future of quantitative easing heavily split opinion on the Monetary Policy Committee in its November meeting, according to minutes released today.
Although seven of the nine members voted for a £25 billion extension from the initial £175 billion level, David Miles wanted a £40 billion rise to "provide greater insurance to the downside risks to growth and inflation".
Meanwhile, Spencer Dale, the Bank's chief economist, believed there should be no increase at all. He claimed that more money pumped into the economy might fuel "unwarranted increases in some asset prices that could prove costly to rectify".
** High Street mecca Marks & Spencer (MKS) gave its investors a reason to celebrate after unveiling Marc Bolland as its new chief executive.
Bolland, the chief executive of supermarket chain Morrisons (MRW), will take up the position in the new year following Sir Stuart Rose's decision to step down.
However, Sir Stuart will continue as part-time chairman of the retail chain to ensure a smooth transition, before handing over the reins completely in July 2011.
** Lloyds Banking Group (LLOY) can press ahead with plans for the UK's largest ever rights issue after its radical restructuring plans were formally given the go-ahead by the European Commission.
The beleaguered bank, which is 43% owned by the taxpayer, is planning to sell off a fifth of its UK branch network in return for the state aid it has so far received following competition concerns in Brussels.
Competition commissioner Neelie Kroes said the divestments will create an entity with a market share of around 5% in the retail banking market, and a solid footing in mortgage and small and medium-sized enterprise markets.
The action from Thursday
** Perseverance paid off for supermarket chain Morrisons (MRW) after it welcomed a record number of customers into its stores in the three months to November.
A record 10.8 million customers walked through its doors each week during the period, up over 1.6 million since Morrisons first launched its Food Specialist for Everyone strategy in 2007.
As a result, the supermarket's total sales for the 13-week period rose by 9.1%, while like-for-likes sales grew 4.3% - although the latter figure was marginally below analysts' predictions of 4.6% growth and failed to match the 7.8% recorded in the first half of the year.
** Oil explorer Dana Petroleum (DNX) has ramped up output to 42,000 barrels of oil per day in the last three weeks, putting it firmly on track to hit its yearly production targets.
The FTSE 250 group said it expects to reach a 2009 level of around 39,000 barrels of oil per day (boepd) after pushing ahead with an ambitious exploration programme. Dana has averaged approximately 38,200 boepd so far this year.
** Shoppers were starting to loosen their purse strings in October with retail sales growing at their fastest rate for 17 months, official figures have shown.
Last month saw a 0.4% rise on an upwardly revised September figure from the Office for National Statistics - slightly weaker than suggested by surveys from the Confederation of British Industry and the British Retail Consortium.
The action from Friday
** Fund management group Gartmore has confirmed plans to float on the London Stock Exchange at the end of the year in what will be the biggest initial public offering this year.
It is intending to float between 30% and 50% of new and existing shares which will value the company at around £1 billion.
The asset manager, which had £21.8 billion of funds under management in September, will use the money raised - around £300 million - to cut its net debt to £150 million.
** Nationwide has seen an exodus of savers over much of 2009 as low interest rates take their toll.
The UK's biggest building society results saw £5.6 billion of retail deposits withdrawn in the six months to September.
Its financial results for the period show a profit of £143 million ¬ down 62% drop from the £274 million profit it reported a year earlier.
** Car production fell 6.7% in October - its slowest monthly drop so far this year, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
On the year, car production stood 38.1% lower than this time 12 months ago.
Paul Everitt, SMMT chief executive, said: "The scrappage scheme and early signs of recovery in global markets offer some encouragement to UK vehicle producers, but 2010 is expected to be another difficult year for the industry." ]]> Market Reports Fri, 20 Nov 2009 17:30:00 GMT http://personalfinance.iii.co.uk/articles/articledisplay.jsp?article_id=10061314&section=MarketReports http://personalfinance.iii.co.uk/articles/articledisplay.jsp?article_id=10061314&section=MarketReports Fiona Bond

Updates from utilities firms are on tap this week, while house price figures from Nationwide in the UK and GDP estimates from the US provide some of the economic data.

Severn Trent (SVT) and United Utilities (UU-) when they post their financial results following what has been a rocky year for the sector.
First to step into the firing line will be Severn Trent which releases its interim results on Tuesday. In an earlier trading update, the company indicated that the decline in consumption levels seen last year will continue and could knock £15-20 million off profits this year.
Next up will be United Utilities which is set to release its interim results on Wednesday. Revenue growth is expected to be lower than the 6% allowed price rise for 2009/10 as dwindling demand takes its toll.
Tina Cook, analyst at Charles Stanley, said: "Underlying operating profit in the regulated business is expected to be broadly in line with the first half of last year reflecting ongoing revenue and cost pressures such as power and bad debts as well as an increase in depreciation."
Utility companies have proved less attractive for investors who have been hungry for stocks with more aggressive capital growth. However, not many surprises are pegged for the six-month update, with all eyes eagerly awaiting the arrival of the Water Services Regulation Authority review out at the end of this month.
Also up on Wednesday is chemical company Johnson Matthey (JMAT). The company interim results are expected to be adversely affected by the strong Rand and rising utility costs. In addition, auto sales were weak and platinum group metal prices suffered a sharp drop throughout the year. With a fall in profits already alluded to, the real interest lies in the company's forecast.
See what the City without a suit makes of the chemicals firm in our iBall TV episode on Johnson Matthey.
The European automotive industry has been buoyed by considerable government stimuli of late but with this set to tail off in 2010, investors will be keen to see Johnson Matthey's plans to tackle this.
Jeremy Batstone-Carr, analyst at Charles Stanley, commented: "To some extent, potential weakness in Europe and the US should be offset by rising car production in Asia, illustrating the truly global scale of JM's business. Elsewhere, JM is likely to have benefitted from the recent strength in platinum group metal prices as commodity prices generally react to investor/speculator interest as the dollar falls."
Another metals maestro, Antofagasta (ANTO) will release its third-quarter results on Thursday. The mining company recently released a production report highlighting a drop in copper output over the last three months. Investors will be eager to see what the company is now doing to make up the falling production rate and see if any improvements have been made.
For an alternative investment view on Antofagasta, watch our iBall TV episode on the miner.
Finally, pub group Mitchells & Butlers (MAB) will report its full-year results on Thursday. Following a flurry of brewery results this week which hailed 2010 as a year for caution, Mitchells & Butlers is expected to report a 25% fall in profits for this year and remain wary of next year's trading environment.
On an economic front, Nationwide will kick off the week with its November house prices. On Tuesday all eyes will be on the US GDP second estimate figures. Initial estimates by the US Bureau of Economic Analysis were for 3.5% growth. There is a chance the figure will be below this number but the markets could still react positively in the hope it could spur on the Fed to implement further monetary policy.
On Wednesday, the UK steps into the spotlight with its own Q3 GDP second estimate figures. The provisional estimate was for a 0.4% contraction.
John Higgins of Capital Economics said: "We suspect the number will be revised up a bit, but that won't change the picture of an economy operating way below its trend level of output."
On Thursday, the latest Confederation of British Industry (CBI) distributive trades survey will provide a good indication of how the high street is faring. With the latest British Retail Consortium survey suggesting a 3.8% rise in like-for-like sales in the year to October, hopes are pinned on CBI's survey to reaffirm the momentum.
CBI will also release its quarterly distributive trade survey for the UK on Thursday.
Interactive Investor will be heading up to Birmingham for the Lloyds Banking Group (LLOY) AGM on Thursday. Make sure you keep an eye out for our inside view of events.
Monday 23 November
Results
(Finals) Armour Group, RM Group(Interims) Mitie Group, Northumbrian Water Group, Phoenix IT Group, Proventec, RM Group(Quarterly) Espirito Santo
AGMs
Gold Oil
EGMs
Naya Bharat Property Company
Dividend payment date
(Final) Edge Performance VCT 'D' Shares, New Star Inv Trust
Tuesday 24 November
Results
(Finals) 2 ergo Group, Education Development International, Topps Tiles(Interims) Hamworthy, Heath (Samuel) & Sons, Homeserve, Iomart, KCOM Group, Severn Trent,(Quarterly) Signet Jewelers
AGMs
Artisan, Discovery Metals, PureCircle, Tenon Group
Wednesday 25 November
Results
(Finals) Greencore Group, GW Pharmaceuticals, Superglass Holdings, Britvic, Compass Group(Interims) Acal, GB Groyp, Liontrust Asset Management, London Stock Exchange Group, QinetiQ Group, Speedy Hire, Telecom Plus, United Utilities Group, Johnson Matthey(Quarterly) Queen's Walk Investment Ltd., Sportingbet
AGMs
Aberdeen Asian Smaller Companies Inv Trust, BlueBay Asset Management, Finsbury Food Group, Sabien Technology, Thor Mining
EGMs
Hanson Westhouse Holdings
Dividend payment date
(Final) Stagecoach Theatre Arts(Final Ex Dividend) A&J Mucklow, Advance UK Trust, Baronsmead VCT, Baronsmead VCT 2, Charteris, Diploma, Dunelm Group, Freshwater UK, Global MENA Financial Assets Ltd., ING Global Real Estate Securities, Invesco English & International Trust, JPMorgan Chinese Inv Trust, JPMorgan Elect Managed Growth Shares, Octopus Eclipse VCT 1, Octopus Eclipse VCT 3, Octopus Eclipse VCT 4, Renewable Energy Generation, Scottish American Inv Company, Ultimate Finance Group, Value Catalyst Fund Ltd.(Interim) Albany Inv Trust, Charles Taylor
Thursday 26 November
Results
(Finals) Avacta Group, Avon Rubber, Mitchells & Butlers(Interims) Assura Group, Helical Bar(Quarterly) Antofagasta
AGMs
Animalcare Group, Berkeley Resources, BHP Billiton, Clinton Cards, Group NBT, Oilex Ltd., Pantheon International Participations, Ruffer Investment Company Ltd.
EGMs
JSM Indochina, Yell Group
Dividend payment date
(Interim) Collins Stewart, Toyota Motor
Friday 27 November
Results
(Finals) HolidayBreak(Interims) Hogg Robinson, Invista Foundation Property Trust, Omega Diagnostics Group, RPC Group, Vectura Group, VP, Carphone Warehouse
AGMs
Anglo and Overseas Trust, Aquarius Platinum Ltd, Centamin Egypt, Feedback, Helphire Group, JPMorgan Smaller Companies Inv Trust
Dividend payment date
(Final) Abcam, Aberdeen Asian Small Companies Inv Trust, City Merchants High Yield Trust, CPL Resources, F&C Commercial Property Trust, Indigo Vision, ISIS Property Trust, Jourdan, JPMorgan Overseas Inv Trust, Kier Group, Manchester & London Trust, Mcbride, Ricardo Group, Swallowfield, Thorntons(Interim) Booker Group, Harvey Nash Group, RSA Insurance Group, Scottish Mortgage Inv Trust, Ted Baker(Quarterly) Equity Partnership Income Shares ]]> Markets Fri, 20 Nov 2009 17:30:00 GMT http://personalfinance.iii.co.uk/articles/articledisplay.jsp?article_id=10061315&section=Markets http://personalfinance.iii.co.uk/articles/articledisplay.jsp?article_id=10061315&section=Markets Peter Theuninck

Peter Theuninck looks back on a week including Bank of England's three-way split on quantitative easing and eyes next week's key data.

Written for Baydonhill, providers of foreign exchange services. For foreign exchange advice call 020 7594 0533, or read more about opening an account.
This week
The main event for local traders this week is the minutes from the Bank of England's (BoE) November rate setting meeting which yielded a increase of £25 billion in the asset purchase scheme while leaving the 0.5% interest rate level unchanged.
Sterling began the week making advances on better than expected housing data. Rightmove House price Index increased to 1.6% from 0.2% year-on-year and gave the pound some early support as markets began to anticipate supportive BoE minutes. Further advances for the pound came after the release of CPI data which showed inflation increasing to 1.5% from the previous 1.1%, the release was significant and the central banks inflation forecasts have always indicated the Monetary Policy Committee (MPC) expected inflation to fall by over 1% from their 2% target and thus require a letter to the Chancellor. The higher inflation data also sparked speculation that the Bank of England was now in a position to halt any further expansion of its asset purchase scheme and could begin to discuss potential exit strategies and timing. The release drove the pound up to a 2 week high versus the dollar.
The highly anticipated Bank of England minutes became the pounds undoing, however. The MPC voted in a three-way split, & members voting in favour of the announced measures while one member voted for no changes to be made to either the rate of the level of the asset purchase scheme. What caused the markets to abandon the pound though was the one vote to increase the asset purchase scheme by $40 billion which raised concerns over the stability of any potential economic recovery and that the risks to further economic weakness remained high. When compared to the eurozone and the US who are showing clear signals of ending their quantitative easing policies this places the pound squarely on the back foot.
The Queen's speech came after the minutes and the bills proposed for financial regulation and reform were viewed by many as mainly political posturing rather than being based on sound economic principles. The speech also highlighted the government's concerns of its spirally debt situation.
Data for the remainder of the week gave little comfort as net borrowing figures confirmed the views seen in the BoE minutes. Net borrowing came out at £11.4 billion, slightly lower than the previous £14.9 billion, but well short of the consensus forecast of £6.8 billion. Retail sales data did come out better than expected at 3.4% but was not enough to halt or reverse the well established downward trend.
With the pound pushing higher and risk appetite improving the dollar suffered loses across the board. Data releases early on promoted risk appetite with advanced retail sales coming out at 1.4%, up from the previous -2.3% seen. US CPI data came out at -0.2% better than the -0.3% expected and a significant slowdown in the rate on inflation dropping compared to the -1.3% the previous month. A drop in housing starts data did see a scaling back of dollar short positions. In addition to the pound weakness aiding the dollar on Wednesday, Treasury Secretary Geithner spoke before the Senate and further drove risk aversion as Republicans called on his resignation. The political uncertainty, while leaving markets a bit nervous, is unlikely to have any long term effects for currency levels.
The euro followed a similar trend against the pound as the dollar has, the effects of sterling weakness being the main driver behind the euro's initial strength. EU CPI data came out at 0.2% and German PPI data also showed an increase in inflation to 0.0% from -0.5% the previous month. Euro movements against the dollar took its lead from the markets risk appetite or lack thereof.
Next week
Given the general pessimism towards the pound last week and the concerns raised by the continually high government debt levels and the risks this poses to the stability of the economic recovery in the UK GDP figures released on Wednesday will the main focus for local markets. The UK is currently the only major economy not to have ended its official recession by posting positive growth.
Traders will therefore want to see a positive GDP figure, should this not be the case the pound could very possibly return to lower levels. There is a mixed bag of releases from the EU and the US which given the recent performance of data from those regions could be expected to support the various currencies if they match or exceed market expectations.
Peter TheuninckBaydonhill ]]> Foreign Exchange Fri, 20 Nov 2009 17:24:00 GMT http://personalfinance.iii.co.uk/articles/articledisplay.jsp?article_id=10061349&section=ForeignExchange http://personalfinance.iii.co.uk/articles/articledisplay.jsp?article_id=10061349&section=ForeignExchange Rhian Nicholson

Everyone likes a freebie, and don't listed companies know it. Rhian Nicholson runs through some of the perks listed firms offer to their shareholders.

Share perks are a background benefit for the millions of UK shareholders with savings generally ranging from £10 to £5,000 for those who meet the minimum requirements.
Want 10% off the price of any British Airways (BAY) flights for you and up to eight companions? Well shareholders with at least 200 shares which are registered in a date in November each year are laughing all the way to the airport.
Of course, if you don't already own the shares at their current price of 203p, you'd need to fork out £406 - perhaps a worthwhile move if your family is planning flying first class to Australia, but not so good for a quick hop to Paris in economy.
The FTSE 250-listed Restaurant Group (RTN), which owns names such as Garfunkel's, Chiquito and Frankie & Benny's, gives all shareholders 12 vouchers for 25% discount on meals for up to 10 people - allowing you to eat on the cheap while still playing your own part in boosting the company's revenue and hopefully the value of your shares.
Housebuilders are also proving pretty generous with their perks: Barratt Developments (BDEV) offers its shareholders a £500 discount on every £25,000 spent on a new or part-exchanged home in the UK or US. So if you're planning to fork out £250,000 on a property, you could save £5,000. However, the catch is that you own at least 1,000 shares, they are registered in your own name and you have held them for at least a year.
Bellway (BWY) offers a discount of £625 on every £25,000 spent as long as shareholders have forked out on a minimum of £2,000 shares and have held them for at least a year. However, this is open to shareholders with both a nominee and a certified account.
Retailers such as AIM-listed Mulberry (MUL) offers a 20% discount card for use in all of its stores for those holding 500 shares, while Bloomsbury Publishing (BMY) will slice 35% off the recommended retail price of books if shareholders have the requisite 250 shares.
Research from Barclays Stockbrokers, however, shows that 40% of the perks on offer do not require a minimum shareholding. Shareholders in insurance giant Legal & General (LGEN) can get a 25% discount on home insurance, 12.5% discount on travel cover, 10% discount on life assurance and a 25% reduction in the cost of buildings and contents insurance
Marks & Spencer (MKS) send out Cafe Revive and Spend and Save vouchers which are normally distributed with the January dividend payment. Signet Jewelers (SIG) gives a 10% discount in all H. Samuel, Ernest Jones and Leslie Davis stores.
Barbara-Ann King, head of investments at Barclays Stockbrokers, said: "While shareholder benefits alone are not a reason to buy shares, they are certainly an added bonus for those investors keen to own equity in a company."
Stockbroker Wills & Co, which also publishes its own guide to perks, says carefully chosen investments can help to save thousands of pounds on home improvements, travel and shopping. However, it advises that shareholders should pay more attention to the "long-term potential of your shares to deliver a growing stream of dividend income or an increase in capital value".
Just how to get your hands on these discounts varies from company to company. Some send out a sheet of discount vouchers with the annual report, while others provide a discount card to take shopping.
Many of the travel and hotel sector firms offering perks have a dedicated booking line for shareholders, including First Choice, Landround and the Hilton Group.
Others including the housebuilders just want you to bring along your share certificate or a letter from the nominee when you want to make a purchase.
Perks are more of a free nibble than a free lunch. While it's usually not worth buying shares to solely secure the freebies on offer, if you already own the shares and meet the minimum requirements then you're getting essentially something for nothing.
Indeed, every little helps: it's a motto that Tesco (TSCO) certainly takes literally with all shareholders receiving a card worth £7.50 and a free gift for turning up to the AGM. ]]> Markets Fri, 20 Nov 2009 15:37:00 GMT http://personalfinance.iii.co.uk/articles/articledisplay.jsp?article_id=10061313&section=Markets http://personalfinance.iii.co.uk/articles/articledisplay.jsp?article_id=10061313&section=Markets Fiona Bond

Things could turn sour for the UK's pub industry after it warned that it would come up against a tough trading environment next year, analysts said today.

Britain's leading breweries have all warned in their market updates this week that a rise in VAT, alcohol duty and possible interest rate hikes could send their profits tumbling.
The bleak outlook follows a flurry of financial results from the UK's leading breweries this week.
Enterprise Inns (ETI), which released its results on Tuesday, said it was bracing itself for a further decline in trading profit in 2010 after suffering significant losses in the year to September.
The pub group's pre-tax profits plunged from £263 million to 208 million, with revenues also down from £880 million to £811 million.
Enterprise Inns blamed depressed consumer spending and increased overhead costs for the lacklustre results. Chief executive Ted Tuppon saw little in the way of relief for the upcoming year, maintaining that the current economic climate would remain hard-hitting.
Analyst Sam Hart, of Charles Stanley, commented: "The outlook remains extremely challenging. The pub industry is governed by the consumer environment and with a VAT rise on the horizon, as well as an expected increase in interest rates, it will be tough.
"Pubs also face aggressive competition from supermarkets which are feeding into a drinking-at-home culture and offering prices below that of pubs."
Things were slightly more positive for the South East-focused pubs which managed to rake in profits, but they expressed caution nonetheless.
London-focused brewer Young & Co's (YNGA) midweek results revealed a 22% increase in half-year pre-tax profit to £11.46 million for the year to September, from £9.4 million in 2008. The company enjoyed a particularly robust first seven weeks of the second half, with managed house revenue up 0.9% on a like-for-like basis, after resisting temptation to introduce heavy discounting.
However, despite the strong set of results, Young's tipped trading conditions for the remainer of the financial year to be "undoubtedly challenging".
Sonia Kaur, analyst at Hardman and Co, believes that the results were more of a pleasant surprise that an indication of a strong trading year to come.
"The results were a nice surprise on the upside but the industry is by no means out of the woods yet. Despite the South East-focused brewers faring well during the first half, they remain cautious for the second half because of the cost pressures faced by the consumer.
"Those with the strong balance sheets have taken advantage of the weaker conditions by acquiring further pubs but of course they will have to deal with those costs during next year when consumer spending could be down."
Brewer Fuller, Smith and Turner (FSTA) was able to put in a sparkling performance in the six months to September, but also admitted that the second half of the financial year could be significantly tougher.
The brewer posted an 18% increased in pre-tax profits, which hit £14.1 million as a flurry of acquisitions, record low interest rates and pay freeze gave the company's coffers a firm boost.
Revenue rose by 10% to £116.9 million and managed pubs and hotel profit enjoyed a 20% rise, boosted by the 11 managed pubs Fuller's acquired in the last year.
Nevertheless, chairman Michael Turner said much of what had aided its profits during the first half would disappear in the second half, negatively impacting its position:"Our first half performance has defied the recession but it has been boosted by factors that may not repeat or may even reverse: incremental earnings from acquisitions, record low interest rates, a pay freeze and better weather.
"We remain cautious about the outlook for the UK economy and we expect our second half to be significantly tougher than the first. Starting with VAT rising by 2.5% on 1 January 2010, taxes and interest rates must rise and the economic climate is likely to remain challenging for some considerable time."
Enterprise Inns share price was down just over 3% to 114.25p and Young & Co's value slipped over 1% to 502.75p.
Fuller Smith and Turner's shares enjoyed an increase of over 5% to 513p. ]]> Markets Fri, 20 Nov 2009 14:31:00 GMT http://personalfinance.iii.co.uk/articles/articledisplay.jsp?article_id=10061302&section=Markets http://personalfinance.iii.co.uk/articles/articledisplay.jsp?article_id=10061302&section=Markets