STOCKS FOCUS

Faroe Petroleum:

Faroe Petroleum’s plans to move into Greenland edged closer after the Aim-listed company pre-qualified as an operator in the country, ahead of the next licensing round in 2010. Chief executive Graham Stewart said the firm’s interest had been welcomed by authorities. Cairn Energy, Scotland’s largest oil explorer, has already been awarded exploration rights in Greenland which has attracted interest from some of the world’s biggest oil operators. Stewart and non-executive director Nils Sorensen speak Danish, one of the languages used in Greenland. Shares closed at 137p.

Iomart:

Iomart, the Glasgow-based data centre and website hosting company, posted a pre-tax profit of £517,000 for the half-year to the end of September, compared with a £708,000 pre-tax loss during the same period last year. The Aim-listed company, which employs 150 people at sites throughout the UK, counts Stagecoach, BSkyB, BT and Strathclyde Police among its customers. Chief executive Angus MacSween said: “We have continued to win new business since the end of the period and have good visibility of revenues for the second half of the year. Shares closed at 45.5p.

BAE:

Defence giant BAE Systems revealed plans to cut 642 UK jobs – including 52 at Hillend, Fife – over the next two years. Jobs will go at sites across its Integrated System Technologies Business, which produces surveillance and command systems. In September, BAE Systems said 1115 jobs would go in its military aircraft unit. Rory Fisher, managing director for BAE Systems Insyte, said: “We have a responsibility to address a reduction in our forecast workload and manage our cost base to remain competitive and meet our customers’ future requirements.” Shares closed at 331p.

Carphone Warehouse:

Retailer Carphone Warehouse, which acquired Tiscali UK in July, raised its full-year earnings forecast after recording better-than-expected sales. The mobile-phone group reported an 88% rise in pre-tax profit for the six months to September 30 to £75 million, with revenues up 13% at £789m. Chief executive Charles Dunstone said the planned demerger of the TalkTalk business was on-track. The group will split into two companies by March 2010 with both trading separately on the London Stock Exchange. Shares closed at 194.70p.

COMPANY WATCH

There was little surprise in the City last week as the Borders bookshop chain limped into administration after a prolonged struggle against increased competition from online retailers and supermarkets. All 45 Borders and Books Etc stores will remain open while administrators seek a buyer. Acquired in a management buyout backed by Valco Capital Partners, the private equity arm of distressed retail specialist Hilco, Borders occupies large outlets that often anchor shopping centres – venues like Glasgow Fort, where Borders is a major customer draw, will not want more empty stores in the run-up to the key Christmas trading period.