Pick of the early market news
Filed under: Investing
The FTSE 100 finished almost 37 points higher yesterday - a 0.65% lift - with both Fresnillo sand Rio Tinto rising sharply (+2.69% and +2.93%). In contrast, Essar Energy plummeted more than 26% in value following a new tax ruling by the Indian Supreme Court. European stocks were broadly positive with the German Dax rising almost 2% and the French Cac 40 1.4% while the Dow Jones also lifted 0.48%.Let's commence with construction and engineering operator Driver Group plc. Revenue for the 12 months to 30 September 2011 increased 6% to £17.4m (2010: £16.4m) helped by an increase in its international disputes services, an improving position in Africa and in the Power & Process sector in the UK.
"These improvements offset the anticipated continuing decline in the UAE. Underlying profit before taxation was £0.55m (2010: loss of £0.43m)," said the company with the Group's net cash position at the end of the year stood at £0.6m (2010: net borrowings of £0.5m).
Trading in Europe - 69% of group revenues - was up 11% on 2010 revenues. "In addition, we have started to see a stabilisation in the general construction market following its decline in 2010."
Next, hedge fund manager Man Group. Funds under Management at the end of December 2011 were $58.4bn, considerably lower than $64.5bn at the end of September and $69.1bn at end-March 2011. Sales in the quarter to end of December were $3.1bn and redemptions were $5.6bn - a net outflow of $2.5bn.
"Trading conditions have been tough for Man in the second half of 2011," acknowledges Peter Clarke, chief exec. "Investment performance varied significantly across styles, with market volatility and reduced market liquidity impacting trading opportunities. Although some of our funds performed strongly and sales held up well, we experienced a net outflow in the last two quarters, albeit with reduced redemptions in the final three months."
Lastly, exploration company Tullow Oil. Tullow said it anticipates strong 2011 financial results - full year results come out mid-March - with 2011 sales revenue of $2.3bn forecast. A doubling of sales made in 2010.
"Record revenues and cash flows from increased production and strong commodity prices combined with industry-leading exploration success underpin another very good year for Tullow in 2011," says Tullow boss Aidan Heavey. "In 2012 we expect significant progress in Ghana and Uganda as we move forward with Jubilee well remediation and Phase 1A, TEN and the Lake Albert developments."
He added: "We have an exciting exploration programme to open new basins, both onshore and offshore, and we hope to extend our reach in Africa and elsewhere along the Atlantic Margins with major new partnerships. There is much to look forward to in the year ahead."