Comment & Analysis

Thursday August 6, 04:22 AM
Glance-PRESS DIGEST - British business - Aug 6

The Times HIATUS OVER NEW CHIEF TO STEAL SHOW AT ITV'S RESULTS The announcement of ITV (LSE: ITV.L - news) 's interim results on Thursday is not expected to be accompanied by the disclosure of the identity of the group's new chief executive, as the final talks with the candidates drag on longer than anticipated. Simon Fox, the chief executive of HMV, and Pascal Cagni, the head of Apple (NASDAQ: AAPL - news) 's European operations, remain the frontrunners for the role, although others could emerge if terms with either cannot be agreed. The broadcaster is hoping to finalise a sale of Friends Reunited for somewhere between 20 and 30 million pounds, in a move that would mark a humiliating reversal for ITV, which acquired the social networking site for 120 million pounds in 2005. CARPETRIGHT PUTS OUT THE WELCOME MAT WITH SALES RISE Shares in Carpetright (LSE: CPR.L - news) rallied 104.50 pence to 768.50 pence on Wednesday after the retailer announced a 1.4 percent increase in like-for-like sales in the three months to August 1. Lord Harris of Peckham, chairman and chief executive of Europe's biggest seller of floor coverings, said of the sales rise: 'For the first time in two years I feel very encouraged about the future.' Carpetright's shares are now trading a few pence above the price at which Bill Gates, the Microsoft (NASDAQ: MSFT - news) tycoon, acquired a holding in the company in May. NATIONAL EXPRESS SUITORS TOLD TO 'PUT UP' BY SEPTEMBER National Express (LSE: NEX.L - news) , the transport group, has persuaded the Takeover Panel to give its two putative bidders a 'put up or shut up' September deadline to place an offer. In a statement, the Panel said both CVC Capital Partners, which works with the Cosmen family from Spain, and Stagecoach, the rival operator, had accepted its ruling. A spokesman for National Express, which stresses it still has a viable future as an independent business, said it welcomed the imposition of a deadline by the Panel. The Daily Telegraph ASHLEY WRITES OFF 3.6 MILLION POUNDS CHINESE STOCK Sports Direct (LSE: SPD.L - news) said on Wednesday it had written off the value of 3.6 million pounds' worth of stock after its plans to expand into China fell into trouble. The retailer, which is 71.2 percent owned by Mike Ashley, had signed a contract with Chinese group ITAT to open Sports Direct-branded areas in 121 of its outlets. However, the Chinese retailer has been taken over by a supplier, meaning that the future of the joint venture is unknown. In its annual report, Sports Direct said 3.6 million pounds of stock 'held at the end of the year in China has been fully written off'. FOCUS WANTS CVA TO SAFEGUARD JOBS DIY retailer Focus wants to enter a company voluntary agreement in a bid to safeguard its future. The company, which is in discussions with its advisers to address its 'short term financial situation', said a CVA would enable it to save 4,572 jobs. It said it could no longer continue to sustain an annual cash drain of around 12 million pounds from 38 closed stores, despite trading well and profitably. A CVA, an alternative to administration, would require the backing of landlords in a vote in August. WICHFORD CASH CALL TO EXTEND FACILITIES Shares in Wichford (LSE: WICH.L - news) rose 1.25 pence, or 6.5 percent, to 20.50 pence on Wednesday after the owner of central and local government-occupied offices announced a 55.8 million pound cash call to achieve a two-year extension for its debt facilities of 314.3 million pounds due to expire in October 2010. The company, which has suffered a 28.2 percent drop in the value of its portfolio, plans to use the rights issue together with the sale of assets with short leases to purchase properties with longer leases in order to meet the terms necessary to extend the facilities. It will issue seven shares for one at six pence, down 68.8 percent compared to the previous closing price. The Independent STANDARD LIFE REVEALS SHARP FALL IN PROFITS Standard Life (LSE: SL.L - news) saw its earnings slump by 35 percent to 348 million pounds during the six months to the end of the year, hit by weaker sales and falling new insurance business amid the recession. On a post-tax basis, Britain's fourth-largest life insurer made a 20 million pound loss compared to a 161 million pound profit during the first half of 2008, while underlying profits fell by 86 percent to 47 million pounds. Chief executive Sir Sandy Crombie said the savings and insurance sector had been battered by the recession, adding that it was not yet clear when a recovery might take place. TESCO INTRODUCES CLUBCARD TO POLAND Supermarket giant Tesco (LSE: TSCO.L - news) is set to introduce Clubcard in its 324 stores across Poland on Thursday, following a pilot scheme in six stores. David Clements, the grocer's international marketing director, said Tesco was placing a 'significant investment' behind the launch of the loyalty card, which will be promoted in the country's press and television as well as in-store. The chain, which entered Poland in 1996, already operates Clubcard in Ireland, China, South Korea and Malaysia, alongside pilots in Slovakia and Thailand. PREMIER FOODS BENEFITS AS BRITONS EAT AT HOME Premier Foods (LSE: PFD.L - news) , the UK's biggest food manufacturer, reported a 5.6 percent increase in first-half profits before exceptional items to 123.6 million pounds after a hike in promotions boosted sales of its key grocery brands. The company said sales of Branston jumped by 41 percent, while Loyd Grossman rose 35 percent and Hovis bread 17 percent. For the six months to June 27, group sales increased by 3.5 percent to 1.25 billion pounds. The Guardian UK'S LARGEST HOUSEBUILDER SEES 'ENCOURAGING SIGNS OF STABILITY' Taylor Wimpey (LSE: TW.L - news) , Britain's largest housebuilder, has identified 'encouraging signs of stability' in both the UK and U.S. housing markets, despite suffering a loss of 682 million pounds in the first six months of 2009. Chief executive Peter Redfern said prices were starting to increase in some parts of Britain, adding that the southeast of England would be stronger than the rest of the country over the next three years. The shortfall was mostly caused by a 527 million pound writedown on the group's land bank and houses under construction in the UK, the United States, Spain and Gibraltar. The company, which plans to open 40 new sales stores in Britain before the end of the year, reported a 68.9 million pound pre-tax loss, stripping out exceptional items, including land writedowns. BETFAIR JOINS ATTACK ON UK'S GAMBLING TAX Betfair has refused to rule out a move offshore as it became the latest betting business to criticise the government's online tax rates. The company, which reported a 29 percent increase to 72 million pounds in operating profit for the year to April, hinted at a move to Malta should the competitive disadvantage of paying tax in the UK worsen. Chief executive David Yu said the Treasury's 15 percent betting tax on profit puts the online gaming group at a disadvantage. But he said Betfair was 'very proud' of its accomplishments as a British company. Earlier in the week, William Hill (LSE: WMH.L - news) confirmed it was shifting its online operations to Gibraltar. Ladbrokes (LSE: LAD.L - news) is expected to make a similar move. INDIA THREATENS VEDANTA WITH PROSECUTION OVER MINE Vedanta Resources (LSE: VED.L - news) has come under pressure to abandon its plans to open a bauxite mine at the sacred place of Niyamgiri mountain in Orissa, eastern India. Jairam Ramesh, the country's environment and forests minister, threatened the British mining group with prosecution if it did not obtain full permission from the Indian government. 'They have got environment approval in principle. They have not got full forest clearance. If mining is taking place in Niyamgiri, then it is illegal,' he said. Environmental groups believe Vedanta's plans will have disastrous effects on the region's ecosystem and jeopardise the future of the 8,000-strong Dongria Kondh tribe. Prepared for Reuters by Durrants Keywords: PRESS DIGEST British business Aug 6

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