News

London's blue chips have shot forward in the first hour led by Royal Bank of Scotland and Hammerson as financial and property groups rally.

Hammerson lifted annual net asset value by 3% to 1,545p with rental income holding up strongly. Underlying profit before tax rose by 24.1% to £117.3m. The proposed full year dividend for 2007 rises by 26%. " Our retail and office portfolio is of the highest quality and we benefit from our substantial investment in France. This provides the potential for further good income growth over the next three years," it added. Land Securities is up on weekend bid speculation.

Royal Bank of Scotland is also pushing ahead on weekend reports it will cover its expected sub-prime losses with asset sales rather than more equity. Its results are due Thursday. Alliance & Leicester and Bradford & Bingley are ahead on reports that Lloyds TSB is mulling a bid for both while they are financially stretched.

AB Foods says trading in the first 16 weeks of this year has been up to its expectations with interim results to show good growth in the group's adjusted operating profit over the same period last year. Strong growth in Agriculture, Grocery and Primark more than offset the expected, and previously reported, decline in Sugar, it added. Discount chain Primark saw a 4% increase in like-for-like sales with Christmas good.

Energy regulator Ofgem has fined National Grid £41.6m for a breach of competition law in its handling of domestic metering. Ofgem's Chairman, Sir John Mogg, said: "Ofgem has imposed a substantial fine on National Grid for a serious breach of competition law. National Grid has abused its dominance in the domestic gas metering market, restricting competition and harming consumers." National Grid replied that it was "extremely disappointed" with the decision and will appeal.

Bus and train group Stagecoach said trading since 31 October has remained strong with the overall business performing at the top end of management's expectations. Like-for-like revenue in the UK bus divisions rose 7.4% in the forty weeks ended 3 February, while UK Rail increased 14%.

Waste group Biffa is lower after rival bidders have dropped out leaving the 350p per share bid from WasteAcquisitionco, formed by Montague Private Equity and Global Infrastructure Partners as the only offer.

Recruitment company Robert Walters rallied Monday on news of a 26% leap in full year profit and comments that it is well placed to ride out the current economic uncertainty.

Civil engineering consultant Waterman reported a 43% jump in half year pre-tax profit and said it is confident it will continue to perform in line with expectations.