YP75: Markets get the jitters before banks benefit from good news

Investors remained concerned over the country's prospects as debt continues to mount and growth looks set to remain subdued for the foreseeable future.

However, more positive news for the banks that future capital requirements under Basel rules won't be as stringent as feared, helped banking shares rebound strongly during the week.

Despite the encouraging news, the markets greeted the end of week second quarter US GDP figures in a negative way. While the headline figures were slightly below expectations, the underlying picture for growth does appear more promising in light of the recent earnings news flow.

Speciality chemicals supplier Croda continues to go from strength to strength following the announcement of an impressive set of half-year results. The Goole-based company's half-year profits more than doubled having reported a pre-tax profit of 96.2m to June 30, compared with a figure of 46.3m the year before.

The group's Consumer Care and Industrial Specialities divisions have seen strong growth and helped push up total sales 27 per cent, to 516.1m over the period.

The company, which supplies ingredients to cosmetics companies including L'Oreal, Clarins and Chanel, struggled somewhat during the recession but, having stuck to the same strategy, is now capitalising on the bounce back in demand.

In addition, the company appears to be benefiting from its acquisition of Uniqema, in 2006, along with its cost-reduction measures.

Despite a weak start to the year, hazardous waste group Augean reported first-half trading has been in line with managements expectations.

The Wetherby-based company has suffered from the extreme weather conditions earlier in the year which "significantly hampered" the company's ability to move waste.

However, the group has made good progress in recent months with activity levels improving in the landfill division and consolidation in its treatment business. The company have also managed to reduce net debt levels from 6m to 5m.

Elsewhere, coal miner UK Coal announced the stepping down of non-executive chairman David Jones and chief executive John Lloyd, following the company's decision to appoint an executive chairman in a management restructuring.

The company believes the new structure, whereby two MDs will now lead the company, running the mining and property businesses and report to a full-time executive chairman, will be more appropriate for the company in the current circumstances.

With the production problems of 2009 now behind it, the company's property business is expected to focus on development projects.

Edward RH Marsden, Assistant Investment Manager at Brewin Dolphin, Leeds