LONDON (ShareCast) - London's leading shares remained lower in midmorning trading, with banks leading the decline, as investors ploughed through a chunk of FTSE 250 earnings.
Royal Bank of Scotland, HBSC and Barclays fell a day after the Bank of England kept interest rates unchanged at 5%.
Shares in music and games retailer HMV fell despite upbeat earnings. The group reported a 10.1% rise in like-for-like sales in the 16 weeks ended 26 April and said it expects full-year profits before tax and exceptional costs to be towards the upper end of market expectations. Total group sales rose 11.9% in the 16 weeks period, while gross margins were in line with previous guidance.
Electronic component group Laird reported a strong start to 2008. In the three months to March, revenue from continuing operations grew by 35% compared with the same period in 2007. "Organic revenue growth in the quarter was towards the top end of expectations of 15% to 20% growth in the medium term, at constant currency, with particularly strong growth in antennae modules and actuation devices," it says.
Sub-prime lender Cattles also saw a strong start to the year. "Trading conditions for our business have been favourable." Cattles launched a £200m cash call last month.
Magners cider group C&C's operating profits fell by 37% last year to February on sales down to €679m from €738m. The group said its performance in both Ireland and Great Britain reflects weak market conditions related to the combination of low consumer confidence and poor spring weather. For the full year C&C expects modest overall revenue growth and some improvement in operating margins.
Engineer IMI said its end markets generally remain firm with no discernible change in order momentum in recent months. Prospects for the oil and gas and power markets look positive for its Severe Service business.
British Energy was in focus as the latest deadline for potential bidders looms. French power giant EDF is expected to table a takeover offer today but German group RWE is not interested any more according to German paper reports.
Talks regarding BG Group’s £6.2bn (A$12.9bn) bid approach for Australia’s Origin Energy are ongoing, but have been inconclusive, the UK oil and gas giant said.
Private equity firm Vitruvian Partners has launched a recommended 45p a share cash offer for AIM listed TV production company Tinopolis worth £44.7m. Vitruvian, whose bid represents a 32% premium to Thursday night’s closing price, has received irrevocable undertakings to back the offer representing 55.6% of the shares.
Flomerics has rejected a 104p per share cash offer from Mentor Graphics, saying it undervalues the simulation software specialist.
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