FTSE down, despite much news

A flurry of corporate updates failed to inspire investors today as the FTSE 100 Index slipped back towards the 4700 barrier.

Catering group Compass and Rentokil Initial set the tone for the top flight as shares in both companies fell more than 6% after they unveiled results.

This contributed to the Footsie giving back an initial 10-point gain to stand 29.3 points lower at 4720.5 by mid-morning.

The index was also uided by negative momentum from New York’s Dow Jones Industrial Average, which lost 46 points last night.

In London, the Footsie’s heaviest faller was catering group Compass – off 16.5p at 224p after annual results only met the lower end of the City’s recently revised forecasts.

An update from services group Rentokil Initial did little for market sentiment after it warned it faced another tough year of trading. The stock was the second biggest faller, easing 6% or 9.25p to 140.75p.

Northern Rock’s trading statement did little for the banking sector, despite the mortgage specialist sticking by market forecasts for profits growth in the region of 12%.

The North East based group slipped half a penny to 724.5p while Barclays fell 1.5p to 542p and Lloyds TSB eased 2.25p to 423.5p.

There was better news from Enterprise Inns, however, after the pubs group said its recent acquisition of the Unique Pub Company had gone well and helped lift annual profits by 33% to £231.2m (€331.3m). Shares rose nearly 4%, up 24.5p to 687p.

Outside the top flight, tile and flooring specialist Topps Tiles was upbeat after posting record annual profits as the growing trend for conservatories, larger dining areas and second bathrooms fuelled demand for tiles. Shares in the FTSE 250 Index company advanced 2p to 215.5p.