YP75: Overseas operators benefit as sterling comes under pressure

In the currency markets, sterling came under renewed pressure as the latest election polls show the Conservative Party's lead is continuing to decline, increasing the likelihood of a hung parliament.

Sterling's weakness did, however, boost a number of London's biggest companies, particularly those with major overseas operations, and mining stocks rose on the back of increased risk appetite.

Doorstep lender Provident Financial posted slightly lower profits of 125.7m over 2009, despite a healthy increase in its customer base. The group remains slightly downbeat on the outlook for the year ahead, continuing to expect relatively cautious consumer borrowing and only modest growth opportunities as a result.

The market was somewhat disappointed by the statement and the shares fell back by 7 per cent, ending the week at 880p.

Better news came from International Personal Finance, which stated optimism for the year ahead and revealed a 9 per cent increase in profits for the final quarter of 2009.

Regular readers will remember the company being demerged out of Provident Financial in 2007.

Last week's statement confirmed a welcome return to profitability for the company's Hungarian division, which suffered heavily during the recent downturn. Overall, profit before tax fell by 19 per cent over the year but the upbeat outlook led to a rally in the share price as investors focused on potential growth ahead.

The UK's largest housebuilder, Persimmon, has witnessed an 8 per cent increase in sales since the turn of the year, alongside a 1 per cent rise in house price sales. Full-year pre-tax profit of 78m compares favourably with the 780m loss sustained during 2008, a year which saw one of the steepest housing market contractions in recent memory

The group intends to open about 90 new sites in the first half of this year and is also set to purchase an additional 5,000 new land plots.

The shares, which fell to below 200p in December 2008, ended the week up 8 per cent, at 421p.

Landscaping goods supplier Marshalls posted a loss for 2009 of 2.4m but showed a marked improvement on the previous year when pre-tax losses nearly breached 5m.

Chief executive Graham Holden ruled out any further capital raising in 2010 following the group's successful 34m rights issue last year, much of which was used to pay down debt.

Like-for-like sales revenue for the full year fell by 16 per cent, primarily due to a 17.5 per cent drop in public-sector and commercial sales.

While recovery prospects remain muted for this year, the company is beginning to see some stalled projects recommencing, a sign perhaps of better times ahead.

David Cadwallader, Assistant Investment Manager at Brewin Dolphin, Leeds