UK builders' merchant Travis Perkins said it expects a more rapid decline in market activity. The company said today turnover for the nine months to the end of September is up 3.3% compared to 2007.

However, in recent weeks, trading has been below earlier expectations with both the merchanting and retailing businesses experiencing more difficult conditions as sentiment in construction markets has reacted to the extraordinary turmoil in financial markets. Profits before tax and non-recurring charges for 2008 are seen to be at the low end of analysts' expectations.

For the first nine months of 2008, total turnover in the merchanting division is up by 3.1%. Whilst like-for-like turnover per trading day for this period was down by 1.2%, the trend of like-for-like sales in both September and early October has deteriorated sharply to minus 10%.

Margins are under pressure for Holidaybreak. Results out in November may not be encouraging.

Trading update :

"Having regard to the changed economic climate and notwithstanding the management initiatives outlined above, the Board does not expect Davenham to be profitable in the current financial year.

In the circumstances, the Board has decided to withdraw its recommendation for a final dividend of 7p per share which had been due to be approved by shareholders at the Annual General Meeting on Friday 24 October 2008. This will have the benefit of conserving cash for the Group during these uncertain times."

Good move by Darling to curb alcohol consumption which costs NHS millions and saving families from destruction...pubs closure is a good thing.

The budget report designed to stimulate flagging demand in many areas of the economy, Darling said he would offset a 2.5 percent cut in value-added tax with an increase in duty on alcohol and tobacco to ensure prices stay the same.
Mark Hastings, the BBPA's Director of Communications, said: 'It's truly staggering that struggling community pubs and brewers have been denied the tax benefit extended to the rest of the business sector through the VAT cut.'
Pubs are closing at record rates and beer sales are at their lowest since the Great Depression.
'Chancellor Darling's refusal to allow beer drinkers to benefit from a VAT reduction means that 7,500 pubs could close by the end of 2012,' said CAMRA Chief Executive Mike Benner.

Talks about a rights issue has collapsed Brixton but it is impossible to see how that could succeed, given that the share price has plunged far below the level a rights issue would have been pitched just a week ago. And with institutional investors like HBOS having pulled out already it's difficult who would be left to take up rights even if the price could be fixed!

Furthermore, empty rates liability has hit hard and the big unknown is their internal credit control process - i.e. how many tenants are struggling to pay their rent on time (or at all)?.

Segro plunges as much as 20 percent on fears it will soon launch a deeply discounted rights issue, as UK's property companies struggle to raise funds in a bid to repair their balance sheet. Segro announced earlier Monday it was in discussions about a possible equity capital raising, amid a property downturn that has already seen larger UK rivals such as Land Securities and British Land launch rights issues totalling billions of pounds. JPMorgan said in a research note on Monday that it estimates Segro would raise 390 million pounds. "On current pricing, raising 390 million pounds at an 80 percent discount would result in a 4-for-1 rights issue with a discount to TERP (theoretical ex-rights price) of around 44 percent on our estimates," JPMorgan analysts said.