Dixons is a good credit – single A – and its outlook is pretty good.”Under the Wanadoo deal’s lock-up agreement, Dixons can sell 20 per cent of the shares in the first six months and then 12.5 per cent for every subsequent six-month period.Dixons shares closed down 5.5p at 237.5p yesterday.. Zurich Financial Services, Europe’s sixth-largest insurance group, yesterday unveiled full-year results which were even worse than the market had expected despite a profit warning last month. Zurich’s shares fell 20 per cent to 549 Swiss francs on the day, its biggest fall in 12 years. Zurich Financial Services, Europe’s sixth-largest insurance group, yesterday unveiled full-year results which were even worse than the market had expected despite a profit warning last month. Zurich’s shares fell 20 per cent to 549 Swiss francs on the day, its biggest fall in 12 years.
The company said that $500m (£352m) of one-off costs, from extra storms claims, a need to increase its reinsurance and currency fluctuations, were responsible for a 5.5 per cent drop in normalised net profit, which smoothes market volatility, to $2.096bn. In February the company said the expected profits decline would be less than 5 per cent.The company said it would spin off one of its businesses in the reinsurance sector. Zurich said Zurich Re, which is among the top 10 companies in the world in reinsurance, would probably be rebranded and floated later in the year.However, analysts speculated that the business would be sold off to one of its larger competitors, which include Swiss Re and Munich Re.Zurich Re-contributed to the company’s earnings volatility and poor investment performance last year, resulting in a 29 per cent drop in unadjusted net profit to $2.33bn in the year to 31 December.

The business has also been very capital intensive, with $300m of last year’s one-off costs going to increased reinsurance cover.Zurich is to spin off the reinsurance business and sell other non-core assets, with a total value of $4bn, to stem its growing debt. Zurich Re does not account for a major part of those assets.Sandy Leitch, chief executive of Zurich in the UK, said the company had “bitten the bullet” and could now concentrate on its strategy increasing its life and general insurance business.Rolf Hüppi, chairman and chief executive of Zurich, also warned that there would be no return to the company’s longer term profit growth target of 10 to 15 per cent until 2002.Analysts said Zurich had not provided a clear enough explanation of its problems. One said: “They have got some explaining to do as the factors they mention were already factored into forecasts.”. London shares rallied in early trading today – with some tech stocks leading the fightback from yesterday’s massive losses. London shares rallied in early trading today – with some tech stocks leading the fightback from yesterday’s massive losses.
The FTSE-100 Index of leading shares rose 64.6 points to 5379.4 almost immediately after trading commenced, holding at more than 70 up an hour later, following yesterday’s falls of 225.9.Vodafone, Colt Telecom and BT all made sound gains after increases last night on the US Nasdaq exchange, closing 67 points up at 1897. The Dow Jones also staged a late recovery, closing down less than 100 points at 9389 after having fallen 380 at its lowest point.

The Nikkei and the Hang Seng also stabilised.In London, the biggest movers and shakers after early trading included Telewest Communications and telecoms equipment firm Energis, up 9% and 7% respectivelyhike, computer services firm Logica, rising 6%, and chip designer Arm, sparking 4%.Among the smaller shares, hand-held computer firm Psion rose 5%, and telecoms group Thus moved 12% ahead.. As shares in Next soared 12 per cent to an all-time high of 922p yesterday the high street fashion retailer’s fan club was out in force again. The praise is justified, of course, as Next has been a text book example of how to get the little things right over recent years. Though it has suffered the occasional hiccup, such as lower-than-expected sales at Christmas and a buying error a few years ago, it has stuck to its position in the upper end of the mass market and continues to grow its business in a most single-minded, unfussy fashion. As shares in Next soared 12 per cent to an all-time high of 922p yesterday the high street fashion retailer’s fan club was out in force again. The praise is justified, of course, as Next has been a text book example of how to get the little things right over recent years. Though it has suffered the occasional hiccup, such as lower-than-expected sales at Christmas and a buying error a few years ago, it has stuck to its position in the upper end of the mass market and continues to grow its business in a most single-minded, unfussy fashion.
Next’s core customers are 25-35 year olds who are fashion-conscious rather than catwalk-trendy and management’s forte has been to give this group exactly what it wants.Next is not afraid to learn from others and in the past it has picked up ideas from Gap on merchandise and from Zara on short turnaround times.All this helps explain why Next’s profits for the year to 27 January jumped to £217m from £195m the previous year in a tough environment.

Like-for-like sales in the high street stores were up by an impressive 5 per cent on the previous year. In current trading underlying sales growth has improved to 11 per cent though this is partly due to weak comparisons in the equivalent period last year.The Next Directory mail order division is also firing on all cylinders.The store portfolio is constantly being improved with smaller stores closed and larger ones opened. Some 250,000 sq ft of new selling space will be added this year including most of the 15 outlets bought from C&A.Financial management is sound with net cash of £104m and a programme of share buy-backs underway. Next spent £192m buying back 10 per cent of its share capital last year at an average price of 518p That now looks very good business indeed. Further buy-backs are planned though only at earnings-enhancing levels.Assuming profits of £245m the shares trade on a forward p/e of 18 About right for a quality company. A solid hold.Taylor & FrancisDeconstuctionists may come and go but French philosopher Jacques Derrida’s Writing and Difference, the movement’s founding work published three decades ago, still shifts copies for academic publishers Taylor & Francis with scant regard to the health of the overall economy.