PRESS DIGEST - British business - March 31

The Times

PLEDGE TO KEEP JOBS IN SCOTLAND SWUNG 1.6 BILLION POUND DUNFERMLINE DEAL

Nationwide Building Society is to take on the healthy parts of collapsed lender Dunfermline in return for a 1.6 billion pounds payment from the government. Under the terms of Monday's deal, Nationwide will take on the society's 34 branches, its 300,000 customers and its one billion pounds of prime mortgages, but will not take on its portfolio of almost one billion pounds of toxic assets. Sources close to the negotiations said a promise to guarantee the jobs of about 300 branch staff was critical for the government and played a key role in swinging the deal.

ALDI UK GROWTH PLAN

Discount retailer Aldi is set to accelerate its speedy growth in the UK, aiming to open up to 50 outlets a year. Paul Foley, the group's managing director in the UK, announced the launch of the expansion programme, unveiling that Aldi will spend 200 million pounds opening stores this year and will continue to open 50 to 40 stores every year. The German retailer already operates about 450 outlets in Britain.

CASINO ON ROLL FOR 888

Online gambling operator 888 Holdings has issued an upbeat trading update, unveiling a six percent increase in pre-tax profits in 2008 to 48.6 million dollars, boosted by the performance in its casino division. The company, which also reported a 20 percent jump on revenues to 256.8 million dollars, announced that it will provide online casino and poker services to Racing Post, the horse racing and betting newspaper.

The Daily Telegraph

VT GROUP EXPECTS SHIPBUILDING EXIT IN JULY

VT Group VTG.L is on track to exit the shipbuilding sector after 150 years as it announced on Monday that it expects to complete the sale of its 45 percent holding in the BVT Surface Fleet joint-venture to its partner BAE Systems (BAES.L) in July. Chief executive Paul Lester said he would like to double the size of the business and drive it toward the FTSE 100 over the next three years. He said VT intends to wait until bigger companies put quality assets up for sale to lower debt before deciding to spend its funds, adding that the company, where around 70 percent of operations are business-related, is interested in expanding in local government outsourcing.

MITIE BOOSTED BY OUTSOURCING DRIVE

Shares in Mitie Group jumped 5.25 pence to 180.50 pence after the building maintenance and outsourcing group said earnings for the year ending March 31 were in line with expectations. The group, which has a market value of 584 million pounds, is taking advantage from companies looking to reduce costs through outsourcing. It said in a trading update it had a "very strong balance sheet", with committed funding facilities of 230 million pounds, which are renewable in 2012. It said it will "take advantage of value-creating acquisitions and offer opportunities as they arise".

GOURMET SAUSAGES LIFT CRANSWICK SALES

Cranswick (CWK.L), supplier of fresh pork and gourmet sausages to the UK's food retail and manufacturing sectors, has unveiled an 11 percent rise in its fourth-quarter sales compared to the year before, boosted by increased demand and higher raw material costs. Cranswick said it expected its full-year profit to beat analyst forecasts of a 36.1 million pounds pre-tax profit for the year to the end of March. The company, whose shares closed up 15.5 pence at 560 pence, said pork sales increased by 23 percent while bacon sales rose by 15 percent over the last 12 weeks of the company's financial year.

The Independent

CLINTON CARDS TO FIGHT BACK WITH REFINANCING AND ROBUST SALES

Clinton Cards CLCA.L is expected to unveil on Tuesday better than expected trading results for the 26 weeks to February 1, helped by additional sales from the collapse of Woolworths and the Celebrations Group. The greetings card retailer, whose share price has suffered an 88 percent drop over the past year, is believed to have renegotiated with its lenders debts covering a 60 million pounds working-capital facility and a 12 million pounds loan, which is due to be repaid in December. Market sources say Clinton Cards has paid a sizeable fee for the refinancing.

NEVADA BOB'S UK SWINGS BACK INTO LIFE WITH PRE-PACK DEAL

Nevada Bob's UK, the franchiser of 24 golf equipment retail stores in Britain, has been bought out of pre-pack administration by RCD Investments No 4, its U.S. parent, in a deal which will preserve both high street and head office jobs. The company, whose franchisees also operate stores in Portugal, Holland, Italy and Ireland, appointed Tenon as administrators, after being hit by tough trading conditions on the high street. Adrian Woolford, managing director of the new group Nevada Bob's Europe, said: "This administration has resulted in the preservation of our entire team, and we believe it has secured the future of Nevada Bob's brand in the UK and Europe."

WARNER ESTATES SELLS 92 MILLION POUNDS PALLASADES STAKE

Property investment company Warner Estate Holdings has announced the sale of the Pallasades Shopping Centre in Birmingham to the local council, in a deal worth 91 million pounds. The group said the proceeds from the cash sale, which is to be completed on March 31, will be used to cut the debt within the partnership structure. In February, Warner said it had started negotiations with its banks in a bid to resolve its debt covenant-related issues, amid a record UK commercial property downturn in 2008.

The Guardian

THEO FENNELL CHIEF EXEC REPLACED - BY PREDECESSOR

Pamela Harper, the chief executive of Theo Fennell (TFL.L), is to step down from the company's board with immediate effect, the jeweller has announced. Her responsibilities will be taken over by Barbara Snoad who ran the celebrities' company of choice for six years until 2007. "Pamela came in a year ago when the market was in expansion mode. Now the focus is on the core brand. The job remit has changed," a spokesperson for the company said. Theo Fennell has already said it could post a loss for the last 12 months.

BARCLAYS AVOIDS STATE INSURANCE PROGRAMME FOR TOXIC ASSETS

Barclays (BARC.L) has announced it will not buy insurance from the government to cover its toxic assets, saying it "continues to manage its balance sheet and capital position actively". The bank's move was widely anticipated after its announcement on Friday that the Financial Services Authority had concluded that Barclays had enough capital to endure five years of economic slump. The bank also said the negotiations over the sale of its iShares fund management arm, which could raise up to 4.5 million pounds, were "progressing well", although it was understood that Goldman Sachs, one of the possible bidders, had decided not to proceed.

Prepared for Reuters by Durrants