PRESS DIGEST - British business - Aug 1

COST CUTS HELP RENTOKIL PROFITS BEAT FORECASTS

Rentokil (RTO.L) has reported a better-than-expected 12 percent fall in underlying second quarter profits, and claimed that performance would improve still more during the second half of the year. The pest control to parcel delivery company was also optimistic about the amount of cost savings it believed it would make in 2009, predicting that it would be able to make 20 million pounds more of savings than previously thought. The news boosted Rentokil's share price 6.5 pence to 97 pence, its highest level in a year.

The Guardian

BA GROUNDS 22 PLANES IN FIGHT FOR SURVIVAL

British Airways' BA.L chief executive Willie Walsh has warned that the airline faces an extended struggle against a downturn in the sector, as it announced a loss of 148 million pounds in the first quarter of the financial year. BA has been forced to ground 22 of its aeroplanes over the winter of 2010 as a result. Despite the grim situation, some hope has come from a stabilisation in the fall in passenger numbers.

SOARING PROFITS DESPITE CRISIS BOOST CALLS FOR COMPETITION.

Barclays (BARC.L), HSBC (HSBA.L), Lloyds (LLOY.L) and RBS (RBS.L) are expected to show that they are making larger profits from their customers than in 2008. It is suspected that banks have used historically low interest rates to cut the rates offered to savers, whilst giving no improvement to their loan deals. "A lot of people are very concerned about the over-concentration in the market", said Mick McAteer of the Financial Inclusion Centre. "We'd like to see a competition review".

GUARDIAN GROUP LOSES 89.9 MILLION POUNDS

The Guardian Media Group has suffered a pre-tax loss of 89.9 million pounds during the twelve months to March 29. Revenue fell by 7.6 percent to 405 million pounds, which the company put down to a restructuring of its portfolio and a 12.8 percent decline in advertising and digital media revenues. More positive developments were the increase in circulation revenues for GMG's national and regional newspapers and the good performance of its joint ventures with Apax Partners.

Prepared for Reuters by Durrants.