YP75: Markets wait and see as Budget delivers little news for investors

Alistair Darling's third Budget as Chancellor of the Exchequer brought little in the way of news for investors with many commentators arguing the final Budget before the General Election focused on winning votes rather than delivering a much needed economic recovery plan. The FTSE 100 drew little direction from the speech and ended the week modestly higher at 5703.

The Budget did, however, bring welcome news for York-based Persimmon plc, the UK's largest housebuilder, with the Chancellor confirming a two-year break in Stamp Duty for first-time buyers. The move only effects properties valued at less than 250,000 but should be an added attraction for many of Persimmon's new builds outside the South- East. The shares initially jumped by as much as 5 per cent and ended the week 2 per cent higher.

The biggest riser in the YP75 last week was Bradford based Chapelthorpe plc. The company, which manufactures polypropylene fibre to a number of markets, announced that full year operating profits are expected to be well ahead of last year. Stronger demand and increased operating margins have all contributed to improved performance and the shares ended the week nearly 39 per cent higher.

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In similar tone to last week's statement from SIG, structural steel group Severfield Rowan plc, warned that activity remains weak but 2010 is likely to witness the low point for construction markets.

The company announced pre-tax profit of 44.1m, up 3.5 per cent on the year, but revenue declined to just short of 350m. Severfield have recently been involved in a number of high profile projects including the 80m roof on Wimbledon's Centre Court, Arsenal's Emirates Stadium and the Westfield Shopping Centre in London. The company is currently working on a number of facilities for the 2012 London Olympics.

Spice has warned that full year profits are likely to miss previous guidance primarily due to a number of loss-making contracts at its gas operations. The company, which recently saw chief executive Simon Rigby leave to pursue other interests, is intending to examine its cost base ahead of the full year results and does not intend any further acquisitions in the months ahead. Despite the warning, the group still expect pre-tax profit to come in above the 32m achieved in 2009.

Trading in rail infrastructure company Jarvis plc was suspended on Thursday following the news that the company has been moved into administration. The group has failed to secure additional funds from a wide number of lenders, which includes Network Rail, and as a result it will no longer be able to continue as a going concern. The York based company has been in difficulty ever since Network Rail postponed a 4bn, five-year investment in the UK rail system. This appears to be the end of a disappointing and drawn out demise for the York-based company which is a former FTSE 250 member. The move also puts the future of Jarvis's 2,000 employees in serious doubt.

David Cadwallader, Assistant Investment Manager at Brewin Dolphin, Leeds