Cheer as weak pound helps BAE Systems; In Association with BREWIN DOLPHIN Stocks and Shares.

Byline: Scott Farnetti BrewinDolphin

THERE was plenty for analysts to digest on Thursday as a number of companies reported their results, giving a better indication of the effects of the downturn on corporate profits.

The FTSE 100 Index closed 0.3% better at 4018 points on an eventful day.

Investors took heart from BAE Systems' full-year results as its shares firmed 3.6%.

Europe's largest defence contractor reported a 31% rise in pre-tax profit.

BAE generates more than half its sales from the US and so results were helped by the continued weakness of sterling against the US dollar. Reed Elsevier also reported better-thanexpected results and said it expected to achieve earnings growth in 2009.

Shares in the media group finished more than 4% higher. However, it was banking shares that dominated the leader board after a rally in the sector, including a 20% rise in Royal Bank of Scotland. Meanwhile, Zytronic was top of the local leader board after it noted at its agm that trading during the year to date was well ahead of last year's, helped by its strong export bias.

Zytronic's geographic diversification has continued to develop and non-UK sales now account for about 80% of total sales. The company's shares ended 6.5% firmer.

Go-Ahead also closed stronger after reporting results.

Interim dividends were maintained as finance director Nick Swift said results were slightly ahead of the company's expectations.

The transport sector has proved less insulated from the downturn than many had expected as higher unemployment has affected commuter numbers, particularly in rail.

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FTSE INDEX YESTERDAY