Updates from Bellway, BAE Systems and Ofwat
Almost 40 points were knocked off the FTSE 100 on Thursday, sending it 0.59% lower to 6,461.7. Glencore and AberdeenAssetManagement were the biggest losers, down 3.7% and 3.3% (to 294.8p and 432.9p). BGGroup also fell heavily, slumping 3.3% to 843.7p. Better news though for Shire and Legal&General, up 3% and 2.2%.
Recovering a little from Wednesday's heavy fall, the Dow Jones clawed back 63 points to rise to 17,596.3 though worry about energy stocks kept enthusiasm low key.
A subdued day for corporate numbers. Bellway says its reservation rate remains robust at 147 per week (2013 - 144 per week) for the 18-week period up to 30 November. But Bellway also acknowledges a summer slow-down.
The Group invested £233 million (2013 - £121 million) in land opportunities it claims while its operating margin is expected to be around 20% for the current financial year.
"The Group," says Bellway, "is well placed to deliver further disciplined volume growth, slightly in excess of 10% for the year ending 31 July 2015, with further improvements in profitability and return on capital employed."
Next, water regulator Ofwat says average bills for water customers in England and Wales will fall by around 5%, before adjustments for inflation between 2015 and 2020. Practically, it claims average bills should fall by around £20 from £396 to £376.
At the same time customers will see improved levels of service, Ofwat claims. Companies have two months to accept Ofwat's new determination, or seek a Competition and Markets Authority referral.
"Companies," says Ofwat, "are set to spend more than £44 billion or around £2000 for every household in England and Wales over the next five years. By 2020 customers will benefit from substantial improvements in areas of service that really matter."
Finally, BAESystems says it has completed the acquisition of Perimeter Internetworking Corp (which trades as SilverSky) a commercial cyber service provider. The transaction is worth $232.5 million (approximately £144.4 million).
SilverSky is a commercial cyber services and compliance provider, headquartered in New York, with operations in the US and Philippines employing 400 staff.
"The enlarged business," says Ian King, chief exec, BAE Systems, "will offer customers an attractive suite of products and services to protect critical information and networks from the rapidly growing threat of digital crime."
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