FTSE 100 movers: $100m sales hole crocks Smith & Nephew

01.05.2008

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Smith & Nephew tumbled as it revealed it had discovered $100m of overstated sales in its recently acquired Plus business.

"We have undertaken a thorough investigation of these practices which has made significant progress, but is not yet fully complete. We currently expect revenues, in a full twelve month period, to be reduced by about $100m". A large part of this issue relates to Greece where

pro-forma 2007 revenues were $60m.

Revenues for the first quarter rose 22% to $911m, up 2% on an underlying basis, with demand strong for the new Birmingham hip. Underlying earnings rose by 13% to 12.8c.

Miners are sporting solid gains led by BHP Billiton, after its board approved a $1.9bn expansion of the Worsley alumina refinery in Western Australia. Ferrochrome producer Eurasian Natural Resources Corporation has exercised an option to buy a 50% stake in Bahia Mineracao Limitada (BML) from Zamin for $300m in cash. Kazakhmys, Anglo American, Antofagasta and Vedanta Resources are also among the top risers.

Xstrata is going well after the Telegraph reported it effectively issued a call to rivals to "come and get us" yesterday, as chief executive Mick Davis said he would have no issue with the company being taken over, provided it brought shareholder value.

FTSE 100 - Risers

Kazakhmys (KAZ) 1,660.00p +4.93%

Anglo American (AAL) 3,419.00p +4.59%

Rexam (REX) 465.25p +3.91%

Xstrata (XTA) 4,091.00p +3.67%

BG Group (BG.) 1,275.00p +3.57%