News

London is just in the blue at lunchtime as the property sector rallies and retailers find favour after some better than expected statements this morning.

Real estate stocks were buoyant today on news that activist investor Laxey is looking for £1bn to invest in property companies whose values have plummeted in recent months.

Hammerson, British Land, Land Securities, Segro and even UK Commercial Property Trust are showing good gains. Laxey said it does not think the end of the world is nigh and property shares are cheap.

Retailers are also rallying on reports Debenhams is leading the rally on reports over the weekend that trading has been solid over Christmas. It reports later in the week.

Mail order group N Brown reported today and it has also motored ahead. N Brown posted a 14% rise in sales despite the postal strike and said it is well placed for the next financial year. "The board is confident that we can meet our profit expectations for the 53 weeks to 1st March 2008 and that we are well placed for the next financial year," it added.

JJB Sports says over the 6 weeks to 6 January 2008 total revenue rose 2.5%, which includes a similar increase in like-for-like revenue, but margins were approximately 400 basis points lower than in the same six week period last year. The stock clear-out will mean profits for the second half coming in slightly below last year's £27.4m.

Fashion chain Ted Baker reports a strong performance from its retail division over the second half of the year resulting in a 14% increase in sales for the period 12 August 2007
to 24 December 2007, compared to the same period last year, on a 7.2% increase in average retail square footage. " Gross margins were in line with management expectations and we are starting the new season with a clean stock position," it added.

Contractor Balfour Beatty anticipates 2007's results will be at the top end of current expectations. Trading in the second half of the year in all parts of the group has been strong and there have also been good settlements on some completed projects. The
group's cash position remains strong.

Spread better IG Group is weak despite a 60% rise in first-half underlying earnings. All parts of the business are performing well and it remains confident about the group's prospects for the current year, it added, but brokers' see growth slowing.

Forth Ports is up confirmation that Australian investment group Babcock & Brown's European Infrastructure Fund has acquired 19.6% of port operator Forth Ports with its affiliates owning a further 0.8%.

Cooker and kitchen equipment maker Aga Foodservice fell after indicating it expects full-year pre-tax profits of over £26m after a satisfactory 2007.

Software group CODA has received a bid approach worth 205p per share cash from rival software house Unit 4 Agresso.