Ulcerative Colitis

Panmure Gordon said it believes the worst of the margin pressure which prompted Cadbury to warn on guidance in October is now over and, as a result, it has increased its margin expansion forecasts for Cadbury and expects the group's cash flow to improve significantly.

In contrast, Kingfisher was off 9 at 230, after Credit Suisse slashed forecasts for the DIY retailer ahead of a fourth quarter trading update due on Feb 16.

In a note to clients, the broker downgraded its pretax profit forecast for 2006/07 by 12 pct to 410 mln stg and by 11 pct to 475 mln stg for 2007/08.

But Smiths Group was the top casualty, down 46-1/2 at 983 as investors cashed in on recent gains after the group reported a generally upbeat first half trading report.

The aerospace components and medical instruments group said said first half sales are expected to be ahead 20 pct year-on-year with pretax profit and EPS seen close to 14 pct higher.

In reaction, Merrill Lynch said the update confirmed expectations of strong performance in all divisions, although it thought aerospace profits would be held back in the first half because of high research and development spending.

Peer Rolls-Royce however, added 14-3/4 pence to 444-3/4 - the top riser - as traders ...

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