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Its biggest bet currently is on Hong Kong & China (25.5% of portfolio), followed by Brazil (15.2%) and Thailand (13.8%). Brazil and China were two of the worst performing countries for the trust's portfolio in the second quarter, declining by 2.95% and 2.70% respectively. Indonesia, up 0.02%, was a rare bright spot during the three month period. The other consolation was the trust's relatively small exposure to Argentina, where stock markets plummeted 45% in sterling terms after the country's unilateral decision to nationalise YPF, the country's largest oil and gas company. "Emerging markets now represent approximately one third of the world's stock market capitalisation. Moreover, emerging market economies are expected to grow at a significantly faster rate than developed economies. Given good growth projections in many emerging countries, reducing dependence on developed markets as intra-regional trade grows, youthful populations and generally better debt-to-GDP [gross domestic product] ratios than many developed markets, we firmly believe that these markets should do well in the long term," the trust's statement said.

Templeton Emerging Markets, the investment trust focused on companies operating in emerging markets, saw its first quarter investment gains almost entirely wiped out in the second quarter. The trust ended the first half of 2012 up 0.3% on the year in terms of net asset value (NAV), despite NAV tumbling 8.5% in the second quarter. The trust's performance lagged that of its benchmark index, the MSCI Emerging Markets index, which rose 3.2% over the half-year period but which fell 7.1% in the second quarter. The trust has 65.9% of its holdings in Asia, 17.4% in Latin American and Caribbean countries, 13.5% in Europe and the rest in the Middle East or Africa. During the quarter the company increased its investments in Jordan, South Africa and Poland, topping up holdings in South African platinum producer Impala Platinum and Polish property developer Polnord, while opening a new position in the Arab Potash Company.

Furthermore, the firm said the depot network continues to be consolidated with a reduction of three sites in the first half, while investment in improved scanning technology is being made to drive further quality. The company also successfully introduced customer care initiatives in the business, something it is now rolling out across the company. As a result, City Link's revenue for the half year was £149.5m, 3.5% higher compared to the same half the previous year, although adjusted operating loss for the six months was £18.5m, down 3.9% on the same period the previous year.

"City Link's recovery plan is progressing in line with expectations, both in terms of financial performance and underlying action plan," the group said. "We anticipate that continued growth, coupled with further productivity improvement at City Link, will deliver year-on-year improvement in financial performance at constant exchange rates in Q3, and most notably in Q4 this year." So what has the company been doing to bring about this turnaround? Well, for a start it implemented a comprehensive recovery plan which targets productivity savings primarily through driver productivity, supported by route and round optimisation and a move to variable pay for owner drivers. There are also initiatives to reduce trunking, warehouse operations and back office costs. 'The plan is progressing on track', seems to be the message in Friday's results, already evidenced by the 18.3% reduction in the courier firm's second quarter losses to £5.8m. That said, there was an air of caution to the company's report, in which it said revenue in the division "only" increased by 3.5% in the first half, something it blamed on a change in customer mix, which limited the benefits of a 14% increase in volume compared to the prior year.

Is Rentokil finally set to return to the glory days of the nineties, when it used to regularly rack up rises in profits of more than twenty per cent? Investors certainly seem to think so, with shares rising sharply on the announcement of 75 per cent higher pre-tax profits for the half year. The results revealed the company's long-time bugbear, courier service City Link, finally showed signs of a longed-for recovery having been in the red since 2007, positing a 5.3% rise in revenues in the three months to the end of June, to £76m. That said, its troubles are by no means over yet. The division is still losing money, including £5.8m in the second quarter alone, and is still expecting to turn in a loss in the third quarter (Q3). Things are looking up after that though, with the firm targeting a return to profitability in the final three months of the year, although a full year divisional loss of between £17m and £20m is expected for the year as a whole.

The engineering firm Costain took the high road on Friday morning after reporting two contract wins. The first is worth £102m, split equally between joint venture partners Costain, Lagan Construction and Ferrovial Agroman, for the design and construction of the A8 dual carriageway, connecting Belfast to Larne in Northern Ireland. Separately, Costain has also been appointed as preferred bidder by Severn Trent Water to replace its largest covered service reservoir at Fritchley, Derbyshire, in a project worth around £27m. A planning application has been submitted and is currently under consideration by the local planning authority. Once approved, work is due to begin on site in January 2013 for four years, with some early enabling works taking place in the coming months.

MBL Group has warned that although the on-going downsizing of the company has, to a large extent, reduced the losses during the second half of the year, it is anticipated that the full year loss will be higher than the interim loss. This is partly the result of costs incurred in the management of the wind down of the operations and the resulting asset realisations. The entertainment products distributor said it continues to have sufficient cash funds available to meet working capital needs will continue to pursue a strategy to develop its business as a direct to consumer retailer.

Software firm Silanis International has reported 'significant' progress in the current financial year and since the beginning of 2012 the e-SL business has added new named paying customers at a month over month growth rate greater than 25%. The insurance carriers which use its private cloud offerings have more than doubled their commitments going forward and service providers running its solutions are experiencing material growth in their user transactions. The majority of these new revenues are beginning to materialise in the second half of 2012 and are expected to build materially thereafter, while revenues for the first half will be below those seen in the same period the previous year.

Finance house XCAP has appointed Sir Peter Middleton as its Non-Executive Chairman. Middleton is UK Chairman of Marsh & McLennan Companies, and of the Centre for Effective Dispute Resolution. He was also Chairman of Camelot Group from 2004 to 2010. ""Sir Peter's experience speaks for itself and the board is delighted to be able to draw on his colossal experience and expertise in the financial services industry," the firm said.

Allergy Therapeutics, a specialist pharmaceutical company focused on allergy vaccination, has welcomed the Food and Drugs Association's decision to lift the clinical hold on the company's grass pollen allergy vaccine clinical development programme, with immediate effect. Allergy has gained approval to progress with a Phase III efficacy study of its ultra-short course allergy vaccines and is now focused on securing a partner to commercialise the vaccine in the US.

Business data consultancy Ebiquity has bought advertising auditing firm FirmDecisions in a deal that could be worth up to seven million pounds. FirmDecisions is being acquired for an upfront cost of £1m which is being paid from Ebiquity's existing banking facilities. That figure could rise to £7m, depending on the performance of the FirmDecisions business in the three financial years ending April 30th, 2014. FirmDecisions works in media and production cost auditing, specialising in the advertiser supply chain. The company helps its advertiser clients benefit from contractual compliance by their agencies. The company is being acquired from its current and previous managers, including Stephen Broderick, one of the founders, who will remain as Chief Executive. FirmDecisions' unaudited revenue for the year ended June 30th was approximately £2m and it generated an operating profit before highlighted items of approximately £0.3m. The company employs approximately 20 people.

Positive Points: Earning per share surprised to the positive. Management plans to cut $10 billion in costs by the end of fiscal 2016. Activist investor William Ackman has recently acquired about $1.8 billion worth of P&G shares. In February, P&G announced an agreement to sell its Snacks business to The Kellogg Company. The sale will help refocus the company's product portfolio. Management announced that it would repurchase $4 billion worth of its shares this fiscal year, reversing a June announcement which said that it did not expect to do so. The group enjoys considerable diversification in both product type and geographical location. The Company returned $1.6 billion of cash to shareholders as dividends during the quarter. In April 2012, P&G increased its dividend for the 56th consecutive year, making P&G one of only six U.S. companies with this track record of dividend increases. P&G has paid a dividend for 122 consecutive years.

Negative Points: Management cut its earnings and sales guidance for the second time in less than two months back in June, hurt by slowing sales growth in Europe and the U.S. The CEO back in June noted that "the company had set prices too high, failed to communicate the superiority of its products, fallen short on product innovation and allowed productivity improvement to stagnate." During the quarter, its gross margin fell by 0.4% due mainly to higher commodity costs, unfavorable geographic and product mix and restructuring charges, which were partially offset by positive pricing and cost savings. Unfavorable foreign exchange movements reduced net sales growth by 4%. P&G currently lacks the exposure to emerging-markets which rivals such as Unilever enjoy. Competition across the consumer goods sector remains intense. the prior year.

Financial Highlights: Net sales declined by 1% to $20.2 billion. Core net earnings per share of $0.82, in line with the prior year period. Diluted net earnings per share from continuing operations were $0.74, a decline of 10% due to non-core restructuring charges. The group completed the sale of its Snacks business in the quarter. The Company returned $1.6 billion of cash to shareholders as dividends. In April 2012, P&G increased its dividend for the 56th consecutive year.

Fourth quarter results: Having only recently downgraded financial forecasts, the results materialised at the higher end of expectations. Core earnings of 82 cents per share, flat from the prior year period, surpassed the high end of a forecast management gave back in June. Net sales fell by 1% to $20.2 billion, with strength in the US dollar reducing sales by 4%. Looking forward, the board underlined the group's $10 billion cost savings programme, which it noted was "well underway." Plans to buy back $4 billion in shares this fiscal year were also highlighted, with the company back in April having increased its dividend for the 56th consecutive year.

Company overview From humble beginnings in 1837, Procter & Gamble now markets nearly 300 products to more than 5 billion consumers in 140 countries, and ranks as one of the world's largest consumer product makers. The company's products fall into five business segments: Fabric and Home, which includes household cleaners, laundry, paper products and special fabric care; Baby and Family, including baby care, paper products and snacks and beverages; Beauty Care, which covers antiperspirants, deodorants, hair and skin care, and personal cleansing; Health Care, which includes oral care and prescription drugs; and Pet Nutrition and Care.

Positive Points: Management described overall revenue performance as 'good'. Passenger unit revenue for the half year up 8.9%, on top of capacity increases of 2.6%. With exposure to the relatively healthy US economy, British Airways made an operating profit, after exceptional items, of €13 million during the half year period. The board remains focused on stringent cost control across the group. The company noted that "our synergies programme continues apace and we remain on track to deliver our 2012 targets and €500 million annual benefits by 2015." The launch of a low cost airline in Spain has been made. The board noted that "there has been an excellent start made by Iberia's new cost effective subsidiary Iberia Express, which was profitable in its third full month of operation in June and has established an exemplary operating performance from Madrid Barajas." Although Spanish bank Bankia S.A. still holds a 12% share stake, measures to bolster the balance sheets of Spanish banks have been taken. These measures may have eased any requirement to raise cash, for which a sale of its stake in IAG could be made. The acquisition of BMI will potentially allow the airline to expand its operations at its home base of Heathrow. BMI currently enjoys 9% of the take-off and landing slots at Heathrow. Management noted that the "BMI integration is on track." Growing disposable income in the emerging markets could underwrite a broader increase in tourism and travel. With Spanish roots, Iberia is currently a strong player in Latin America.

Negative Points: An operating loss for the half year of €253 million before exceptional items was announced (2011: operating profit €88 million). Rising costs have impacted. Total costs excluding exceptional items rose by 14.3% to €8.785 billion. Fuel costs increased by 25.0%. Non-fuel unit costs rose by 6.7%, and 3.0% at constant exchange rates. Increases in non-fuel unit costs arose from exchange rate impact of the weaker euro, principally against sterling and the US dollar, higher prices and certain changes resulting from the Avios customer proposition. Fuel costs represented 33.8% (2011: 30.9%) of total costs. Employee unit costs at constant currency were up 2.7%, partially reflecting a reduction in productivity, which would have been flat excluding the takeover of BMI. Difficulties for Iberia’s home Spanish economy continued to be highlighted - Iberia provides 27% of the group's external turnover, approximately half of this coming from Spain. Iberia made an operating loss of €263 million. Thanks to a previous holding in Iberia Airline, Spanish bank Bankia S.A. currently holds a 12% share stake in IAG. The potential sale of the stake continues to overhang, with a sale potentially dragging on the share price. The airline industry remains extremely competitive and unpredictable. Low cost airlines are competing heavily - easyJet is now courting business passengers. The air travel business remains extremely cyclical. Business travellers form an important profit driver for the former BA business. Cargo business is also sensitive to economic health. BA and rivals have been critical of Air Passenger Duty (APD) taxes, claiming that it puts aviation's social and economic benefits at risk. In 2011 British Airways paid almost £500 million in APD. With a strong focus remaining on group costs, management have come into conflict with staff. Group net debt increased by €160 million to €1.308 billion (December 2011: €1.148 billion). The company continues to make no dividend payment.

Financial Highlights: Operating loss of €253 million before exceptional items (2011: operating profit €88 million) Revenue for the half year up 9.8% Total costs excluding exceptional items were up 14.3% Group net debt up €160 million to €1.308 billion (December 2011: €1.148 billion)

In all, management has much to do. Entrenched employment practices in Southern Europe continue to frustrate both corporations and governments alike, while volatile fuel and currencies provide an ongoing headache. Competition from the low-cost airlines remains intense, whilst a protracted economic downturn in the US would be expected to drag British Airways lower. For now, analyst opinion denotes a hold, albeit a strong one, although we believe some downward pressure now appears inevitable.