A round-up of today's other stories in brief
Diageo issues upbeat trading statement
Drinks group Diageo yesterday delivered an upbeat trading statement, but said the Irish market still remains challenging.
The company, which owns the Guinness and Smirnoff brands, said sales growth for the year to the end of June will be ahead of expectations at 6 per cent. It had previously set a target of 4 per cent. Operating profit will be 7 per cent ahead of the prior year.
However, while sales growth was strong in the group's main spirits brands, and in particular Johnnie Walker whisky, the overall growth in the beer market was held back by weakness in the Irish market, Diageo said. According to a spokeswoman there has been no upturn in the Irish beer market and the environment remains challenging.
Sales of the company's trademark stout have been in decline as more people decide to drink at home, and when they do, to opt for wines and spirits instead of beer. Guinness accounts for about a fifth of Diageo's operating profit worldwide and Ireland is one of the brand's top three markets.
Diageo said it plans to return £1.4 billion (€2 billion) to shareholders in the coming year, matching the amount handed back last year.
Exchange rates will affect full-year earnings by £30 million, it said.
Regulator charges Master Card
The credit card group Master Card has been formally charged by the European Union's top antitrust regulator, accused of breaking its rules by restricting competition between banks.
It is the latest escalation in a long-running antitrust battle between the European Commission and the credit card industry, and is the second time MasterCard has received antitrust charges from Brussels.
It follows the Commission's attack on groups such as Visa and MasterCard in April, when Neelie Kroes, the EU competition commissioner, accused them of making "outrageous" profits and operating a "closed shop". - (Financial Times service)
SFA warning over Budget spending
The Small Firms Association (SFA) has called on the Government not to return to an expansionary Budget this December in the run-up to the general election, warning that the next Budget will play a major role in shaping business sentiment.
"It is imperative that the Government continue with existing economic policies and maintain a strong hold on public spending," said Patricia Callan, director of the SFA.
Calyx appoints two directors
Irish ICT group Calyx, which recently acquired the UK Matrix group of companies, has appointed Gary Kennedy and Nicholas Koumarianos as non-executive directors of the company, with effect from 1 July 2006.
Mr Kennedy, whose other directorships include Elan Corporation, previously worked as group director finance with AIB and was managing director of Nortel (Ireland) Ltd.
Mr Koumarianos is currently the chairman of Soft-Ex Ltd and Dome Telecom Ltd, and was previously a managing director of the Caribbean and Atlantic Islands division of Cable & Wireless.
Circle Oil announces loss
AIM-listed Circle Oil announced a pretax loss yesterday of €€1.426 million for 2005, compared to a loss of €€1.21 million for the previous year.
However, 2005 saw the company successfully negotiate a number of new licences in the Middle East and North Africa, including the acquisition of two new holdings in Oman in June and September. It was also awarded an offshore Panama block in late August.
