PRESS DIGEST - British business - Aug 7

The Times

BT HAS ITS SPEED LIMITED IN MUSWELL HILL

BT (BT.L) has received a setback in its plans to upgrade Britain's telecoms network to fibre-optic cables after residents in Muswell Hill, London, halted its super-fast broadband trial. The residents have successfully appealed to the London Borough of Haringey to stop a further rollout of the service as the junction boxes, which are 1.8 metres tall, are blocking pavements for pedestrians and preventing car drivers from opening their nearside doors. The telecoms group is working to reduce the size of the green cabinets, but said it will take some months for a solution to be found. A BT Openreach spokesman said: "We hope to agree a way forward so that businesses and consumers in the area don't miss out on the benefits of super-fast broadband."

GAGGIA UK'S FUTURE IN THE BALANCE

Accountancy firm RSM Bentley Jennison is understood to be on standby to step in as administrator for Gaggia UK as the British coffee machine distributor was teetering on the brink of collapse on Thursday night. The privately-owned group lost 520,000 pounds in its year to March 2007, according to its last filed accounts. Gaggia UK was independent of Saeco SCIUF.PK, the global owner of the Gaggia brand, and was not included in the takeover of Saeco last week by Dutch group Philips (PHG.AS).

SCHRODERS UPBEAT

Schroders' (SDR.L) investors welcomed the group's latest trading update which saw the FTSE 100 fund manager posting a 3.1 billion pound increase in assets under management for the past six months. Chief executive Michael Dobson took on an optimistic stance about marketing conditions despite lower management and performance fees that dragged the group's first-half pre-tax profits down 55.6 percent to 76.9 million pounds. Shares in Schroders added 33.50 pence, or 3.5 per cent, to 996.50 pence as the group maintained its interim dividend at 10 pence.

The Daily Telegraph

AVIVA IN GOOD HEALTH AS IT PLANS DUTCH FLOAT

Shares in Aviva (AV.L) rose 19.4 pence at 357.5 pence on Thursday after Britain's largest insurer reported upbeat first-half results and unveiled plans to partially float its Dutch subsidiary Delta Lloyd. For the six months to June 30, operating profit stood at 1.69 billion pounds on a Market Consistent Embedded Value basis, up from 1.51 billion pounds the year before. As expected, the insurer slashed its interim dividend by 31 percent to nine pence as it plans to "exploit" opportunities. Chief executive Andrew Moss said the market should not rule out the company on the issue of consolidation within the UK life insurance industry.

M&C CHIEF SEEKS HOTEL INDUSTRY SHAKE-UP

The hotel industry needs a radical shake-up, according to the chief executive of Millennium & Copthorne (MLC.L). Richard Hartman called for a rationalisation of the cost base as a growing number of corporate customers opt for online rates. His comments came as the company reported a 46 percent drop to 19.5 million pounds in the second quarter. Revenue in the period fell by 11 percent to 158.5 million pounds. But the company said it had identified "encouraging signs of stability" in its largest markets in recent months. London was found to be the most resilient city in the group's portfolio, with revenue per available room falling by 2.5 percent in the three-month period, compared with a 34.7 dive in New York and 37.7 percent in Singapore, its other main hubs.

BBA EYES ACQUISITIONS AS IT CUTS THROUGH TURBULENCE

BAA Aviation has raised its target for annual cost cuts by 14 million pounds to 30 million pounds as it identified acquisition opportunities amid the economic downturn. The aircraft-servicing company continued to outperform the market despite posting a two percent drop in half-year revenues to 550 million pounds and a similar fall in pre-exceptional operating profits to 50.6 million pounds. Pre-tax profits declined from 46.7 million pounds to 25.8 million pounds after 12.6 million pounds of exceptional charges, partly for restructuring. Net debt dropped from 554 million pounds to 449 million pounds, while the dividend remained static at 2.3 pence.

The Independent

CHANNEL FOUR BOSS BRANDS BBC "STALINIST" OVER RELOCATION COST

Luke Johnson, the chairman of Channel Four, has accused the BBC of "Stalinist behaviour" with an "Alice in Wonderland" business approach, after it emerged that the relocation cost of some of the corporation's operations to a new base in Salford would reach 876 million pounds. Johnson, who is the owner of Giraffe restaurants and the Patisserie Valerie chain, said: "Unlike those in the private sector, they are not subject to the commercial realities of a structural and economical recession." The BBC said on Thursday night the figures were "early estimates from an internal budget document".

SUPERDRUG SUFFERS LOSS OF 7.4 MILLION POUNDS IN 2008

Health and beauty retailer Superdrug reported a pre-tax loss of 7.4 million pounds in 2008, compared with a profit of 21.6 million pounds the year before. For the year to December 27 2008, total sales at the AS Watson-owned group declined marginally by two percent to 1.07 billion pounds.

SIGNET WARNS ITS OUTLOOK IS STILL "UNCERTAIN"

Signet (SIG.N), the jewellery group, has said its outlook on both sides of the Atlantic is still "uncertain" after it reported a four percent drop in total sales. The group said ike-for-like sales in the UK declined by 4.2 percent in the six months to August 1, with H Samuel falling by 2.2 percent and Ernest Jones down 6.5 percent.

The Guardian

BONUSES ON AGENDA AS RBS SCRAPES BACK INTO THE BLACK

City analysts expect the Royal Bank of Scotland (RBS.L) to scrape back into the black when it announces its first-half results on Friday. The bank is likely to reveal that the strong performance of its investment bank arm has played a key role in its recovery, in a move that could reignite a row over bonus payments. RBS's lending to households and homebuyers is also expected to be scrutinised following the bank's pledge to lend an additional 25 billion pounds in return for participation in the asset protection scheme, through which the government is insuring its most troublesome loans.

ITV PARTS WITH FRIENDS REUNITED FOR 150 MILLION POUNDS

ITV (ITV.L) announced on Thursday the sale of Friends Reunited to Brightsolid, a subsidiary of the Beano publisher DC Thomson, for just 25 million pounds, in a deal worth 150 million pounds less compared to the price the broadcaster had paid for the website three years ago. The news came less than two hours before ITV revealed its interim results that showed a pre-tax loss of 105 million pounds in the first half of the year. Overall revenues in the period were 909 million pounds, a 13 percent fall compared to the previous year. The company conceded its pension deficit had jumped from 178 million pounds at the end of 2008 to 538 million pounds at the end of June.

FUTURE ISN'T ORANGE, SAYS MAN TASKED WITH T-MOBILE TURNAROUND

The new chief executive of T-Mobile UK is poised to unveil a turnaround plan for the mobile phone operator in September. Richard Moat clarified that he was not hired to position the company for a quick-sale and expressed his belief that the business can be turned around. His plans will involve significant job cuts, a simplification of T-Mobile's prices and a reduction in the range of handsets it offers. He said "any asset is theoretically for sale".

Prepared for Reuters by Durrants