Genus, the cattle-breeding group, launched the Long Life Cow competition this year to find cows that have made an outstanding lifetime contribution. The total yield of the 120 cows entered amounted to 10 million litres of milk.
Although the company must wish that it, too, could produce equally impressive results, it has had to warn that first-half profits will be lower than last year. After ruminating on the news, the market sent shares in the FTSE 250 business down 70p to 570p.
The group said that it had seen early signs of recovery in agricultural markets in Europe and Latin America but little to date elsewhere, with conditions in America deteriorating further.It expected an improvement in trading in the second half but the extent would depend on the market recovery, particularly in the US.
KBC Peel Hunt said that the group’s earnings held up well despite tough market conditions but recovery was likely to be slower than hoped. It cut its 2010 profits forecast by 6 per cent.
The FTSE 100 advanced 9.75 points to 5,276.50, with the blue chip index edging closer to its year-high.
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British Airways was the biggest riser, climbing 15p to 215p, amid speculation it was on the cusp of agreeing a merger with Iberia, the Spanish carrier. Both sides confirmed they were trying to seal the deal. BT Group was another strong performer, up 5¼p to 147¼p, after the telecoms business raised its outlook for the full year.
Inmarsat rose 41p to 651p after the satellite communications group entered the MSCI world index, which will require certain funds to hold the stock. Goldman Sachs has also been giving the shares a push this week, saying the market is still too pessimistic about its growth outlook.
Goldman also gave Reed Elsevier, up 6½p to 471½p, a much-needed boost after the shock departure of Ian Smith, its chief executive, saying the management change could be a positive given that Erik Engstrom, the new boss, has a strong track record. It added that indications of positive journal renewal, cyclical improvement in exhibitions and confirmation of its outlook at the full-year results should drive the stock.
The mining sector lost ground amid weaker metal prices, with Kazakhmys falling 20p to £12.70 and Lonmin down 16p to £16.14. Eurasian Natural Resources fell 16p to 906½p after an underwhelming trading and production update.
London Stock Exchange lost 11p to 900p after Horizon Asset Management, the group’s third-largest shareholder behind the Qatar Investment Authority and Borse Dubai, disclosed it had reduced its stake from 7.2 per cent to 3.65 per cent. Horizon is a long-term investor and it was unclear who had bought the stock.
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HSBC Infrastructure Company eased 1¾p to 115¼p after the investment group said it would raise £80 million in a C share issue to fund new deals. The group also reported upbeat first-half results. Stobart Group gained 5p to 127p after the distribution business best known for its Eddie Stobart lorries won a £60 million deal with Unilever UK.
? New York: Higher profits at WalMart failed to boost a cautious Wall Street and at the Dow Jones industrial average closed down 93.79 points at 10,197.47.