July 13 (Bloomberg) -- U.K. stocks rose, led by GUS Plc after its 66 percent-owned Burberry Group Plc reported higher first-quarter sales. Marks & Spencer Plc climbed after saying its plan to boost profits and cut costs was on track.

Oil producers advanced, paced by BP Plc after its Gulf of Mexico rig was stabilized following damage from Hurricane Dennis. Shell Transport & Trading Co. rose as oil prices climbed to more than $61 a barrel before paring gains.

The FTSE 100 Index added 28.7, or 0.6 percent, to 5245.9, its highest closing level since May 2002. The FTSE All-Share Index today added 0.5 percent to 2625.32. The benchmarks have climbed in all but two of its last 12 sessions, increasing 4.1 percent and 4.9 percent respectively over the period.

GUS shares rose 19.5 pence, or 2.3 percent, to 866 after Burberry said first-quarter sales rose as it opened stores in Spain and Korea and refurbished existing outlets in the U.S.

Burberry, the luxury goods maker that features Kate Moss in its advertisements, added 25.5 pence, or 6.2 percent, to 437.5. It said revenue excluding the effect of currency fluctuations rose 9 percent to 113.2 million pounds ($201 million) in the three months ended June 30 from 103.7 million pounds a year earlier.

Marks & Spencer, the U.K.'s largest clothing retailer, added 7.75 pence, or 2.2 percent, to 365.75. The company said its plans to boost profitability and cut costs remain intact even as a slowdown in consumer spending caused sales to drop for a seventh straight quarter.

Sales Optimism

``If you can reorganize a company like Marks & Spencer at a time when things are really challenging, then if you do get a little bit of an improvement hopefully that will be reflected in much better sales,'' said Paul Mumford, who manages the equivalent of $657 million in stocks at Cavendish Asset Management in London.

Next Plc, Britain's third-largest clothing retailer, added 23 pence, or 1.5 percent, to 1,538. William Morrison Supermarkets Plc, the U.K.'s fourth-biggest grocer, gained 4.25 pence, or 2.3 percent, to 186.25.

BP, Europe's biggest oil producer, added 2 pence, or 0.3 percent, to 621.5 after dropping 2.3 percent yesterday.

The company said its $1 billion Thunder Horse oil and natural-gas production platform in the Gulf of Mexico has stabilized after sustaining damage from Hurricane Dennis.

Shell Transport & Trading Co., which owns 40 percent of the Royal Dutch/Shell group of companies, rose 2.75 pence, or 0.5 percent, to 544.75.

Production Shutdown

Crude for August delivery reached $61.30 a barrel on the New York Mercantile Exchange before retreating to stand little changed as European markets closed.

``You'll get pullbacks, but generally the oil price will probably remain pretty high,'' said Richard Robinson, a fund manager at Ashburton Ltd., which oversees about $1.9 billion in Jersey, Channel Islands. Stocks including BP and Shell will remain ``relatively strong,'' he said.

The International Energy Agency, an adviser to the world's largest economies, said oil demand will rise 2.1 percent next year, accelerating from 2005, a sign oil prices at $60 a barrel have done little to restrain growth.

Banking stocks rose, led by HSBC Holdings Plc and Royal Bank of Scotland Group Plc, after Goldman, Sachs & Co. said they could be among U.K. banks to see earnings rise 10 percent this year.

Average earnings at U.K. lenders, which include two of the world's six largest banks by market value, may be buoyed by a 10 percent gain in mortgage lending and growth in personal loans, James Chappell, a Goldman analyst, wrote in the report.

HBOS, Vodafone

HSBC added 13.5 pence, or 1.5 percent, to 911.5 pence, with RBOS gaining 21 pence, or 1.2 percent, to 1,738 pence.

HBOS Plc, the U.K.'s biggest mortgage lender, and its smaller competitor Northern Rock Plc rose after Goldman lifted its rating on the stocks to ``outperform'' from ``in-line.''

HBOS added 16.5 pence, or 1.9 percent, to 891. Northern Rock, the U.K.'s eighth-largest bank, added 10.5 pence, or 1.3 percent to 828.5.

Vodafone, the world's biggest mobile-phone company, climbed 0.5 pence, or 0.4 percent, to 143. Goldman raised a recommendation on the stock to ``outperform'' from ``in-line.''

The following stocks also made gains or losses. Symbols are in parentheses after the company names.

BTG Plc (BGC LN) jumped 29.75 pence, or 17 percent, to 201.75. The company, which buys and develops technology from inventors, said U.S. regulators will allow trials of its Varisolve varicose vein treatment to resume.

The Food and Drug Administration had halted studies of the microfoam varicose-vein treatment in November 2003 and asked BTG to undertake a one-year pre-clinical trial program, said Ben Atwell, a spokesman at BTG's public-relations firm, Financial Dynamics.

Exel Plc (EXL LN), the largest U.K. logistics company, rose 18.5 pence, or 2.1 percent, to 907.5. Cantor Index, a spread- betting company, said in an e-mailed statement the company is the subject of on going takeover speculation. The stock has risen 8.2 percent in the last four trading days.

Inter Link Foods Plc (ITF LN), the maker of Thomas the Tank Engine novelty cakes for customers including Tesco Plc and Wal- Mart Stores Inc.'s Asda, rose 12.5 pence, or 1.8 percent, to 700 pence. The company said annual profit increased 16 percent after the company introduced 200 new products and bought two bakery businesses.

Morse Plc (MOR LN), a computer reseller that's developing its consulting business, rose 16.5 pence, or 22 percent, to 91. The company said its fiscal-year operating profit before goodwill and exceptional items rose at least 27 percent as the company expanded its services unit.

Urban Dining Plc (URB LN), the U.K. owner of the Tootsies restaurant chain, dropped 4.5 pence, or 11 percent, to 37.5. The company said it doesn't expect the eight shopping-mall outlets to meet corporate forecasts because consumers are spending less than expected.

To contact the reporter on this story: Sophie Hares in London at shares@bloomberg.net.

Last Updated: July 13, 2005 12:59 EDT