YP75: Fears over Chinese economy cast a shadow over markets

As BP bounced back into the limelight with its most positive news since the start of the oil spill, the markets saw a generally mixed period last week.

News that the oil major had managed to stop its well from spilling further oil into the Gulf of Mexico, encouraged investors and, in turn, helped the share price recover.

America's second biggest bank, JP Morgan Chase, announced a significant 76 per cent jump in its second-quarter profits, exceeding even the most optimistic expectations. The bank's quarterly profits have risen back to 2007's high point.

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Despite this positive company news flow, it is clear the slowing economic growth we are witnessing in China remains an area of concern for investors as well as a further fall back in the US economy.

Following the company's previous upbeat announcement, 1st Dental Laboratories, the dental products manufacturer, has reported a small swing back to profit for the first six months of the fiscal year.

The company has implemented a series of cost-cutting measures in recent times which has helped offset the decline in revenues caused by the volcanic ash fiasco.

In addition to the provision of laboratory services to dentists, the group is a leading supplier of dental implants including bridges and crowns.

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While the healthcare company is confident over prospects for the full year it remains cautious over the weak demand for many of these dental implants.

Nevertheless, the company hopes to boost sales and increase market share through investment in the training of the group's nationwide sales and marketing teams.

Having recently reported a profit increase for the year to the end of March, sausage producer Cranswick continues to make good progress having seen sales jump 19 per cent in its fiscal first quarter.

The Hull-based company, which has seen an increase in volumes across much of its products range, reported revenue of 198m for the three months to June 30, together with organic growth of 6 per cent.

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Although the group's continental products have not fared so well, the company commented on the sizeable gains witnessed in fresh pork, bacon and sandwiches.

In addition, the recent acquisition of the Norfolk pork processing plant appears to be integrating well, and the group hopes for increased capacity and operational benefits.

Elsewhere, Animalcare Group, the veterinary medicine supplier, expects profits to be higher than market expectations for the previous fiscal year following a 15 per cent rise in revenue.

The group has launched a number of new drugs in the last year which have helped drive sale.

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Alongside the veterinary supplies business, the group's combined agricultural businesses which include Ritchey, Fearing International and Travik, have also progressed well.

Edward RH Marsden, Assistant investment Manager at Brewin Dolphin, Leeds

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