LONDON (ShareCast) - London is set to start slightly lower with traders tipping Footsie to fall 10 points in early dealings.

Barclays said profit in the first quarter was below that of the ’very strong’ prior year period after a £1bn credit crunch related write-down.

Telecoms giant BT saw full year profits slide by 20% mainly due to a restructuring charge of £402m. Pre-tax profits fell to £1.97bn from £2.48bn previously on revenue that rose only 2% to £20.7bn.

The group incurred £402m of the estimated £450m of restructuring costs in 2008. The remainder of the costs is expected to be incurred in 2008/09.

DSG International plans to slash the total dividend in half, beginning with the full year to 3 May 2008, as part of a five point plan for the renewal and transformation of the group, announced today.

Nightclub owner Luminar has reported full year profits roughly in line with expectations and an improvement in like for like sales at the start of the new financial year.

Profit before tax and exceptional items fell to £30.1m from £41.5m in the year to 28 February following the sale of the entertainment division and other disposals. Pre-tax profit before exceptionals from the continuing business rose £3.4m to £31.5m.

Floor coverings distributor Headlam said revenues for the first three months of the year have risen 7.3%.

UK revenues for the three months to March rose 5.65%, helped by Easter falling in March this year. Revenues in the UK, for the period 1 January 2008 to 14 May 2008, has increased by 4.3% on a like for like basis, it added.

Business publisher Informa is trading in line with expectations and said it remains confident about its prospects for the full year.

However, its US commercial performance improvement (PI) businesses, which account for about 4% of group profits, has started the year slowly. The group said it has still seen good growth in both its US government and international work and expects PI’s full-year performance to be in line with 2007.

In the press, the Independent reports that Saturday deliveries could be threatened unless the Royal Mail is partly privatised, the postal regulator has warned. A 100-page report by Postcomm to an independent inquiry into the future of the Post Office warns that a fresh injection of cash is needed to protect the postal service from deterioration.

The board of British Energy will meet today to consider a takeover approach from EDF, the French state-owned electricity group, but board members, who include Sir Adrian Montague, chairman, and Bill Coley, chief executive, are minded to hold out for a higher offer, says the Times.

BP is caught in the crossfire of a growing struggle over the ownership of its Russian oil venture, TNK-BP, as a shareholder in the venture launched a fresh legal action to ban 148 workers seconded from BP from working at the company, reports the FT.

• News Channel