Greggs dips despite upgrade

Dec 13 2008 by Graeme King, The Journal

THE United Kingdom’s leading share index traded in the red yesterday, dragged down by the banking stocks. The FTSE 100 ended the final session of the week 108.34 points down at 4280.35.

In the North 40, Brulines Group, a specialist of real time monitoring systems and data management for the UK leisure sector, announced that it had completed the acquisition of Vianet Limited.

This Dunfermline company provides telemetry and data capture solutions to the vending industry and reported a turnover of approximately £1m for the year ending December 31, 2007. Directors at Brulines believe that the acquisition will enable considerable cost savings and provide pan- European opportunities.

In a second report, Brulines also announced plans to raise approximately £4.7m through a conditional share placing for institutional investors at a price of £1.25 per share. This will be used to strengthen the group’s balance sheet and to take advantage of further acquisition and commercial opportunities. The shares closed the day up 1p at 125.5p.

Shore Capital upgraded baker Greggs from hold to buy. Shore acknowledged the sector faces short-term challenges, but has confidence in the management of the group and believes Greggs is well placed to withstand a market downturn. Greggs released a positive trading update earlier this week and the shares closed 32p down at 3347p.

Elsewhere in the regional portfolio, Wellstream Holdings, the designer and manufacturer of pipeline products for the oil and gas industry, lost some of the gains made on Thursday, and fell 9.25p to 391p.

Demelza.Claypole@brewin.co.uk