PRESS DIGEST - British business - Aug 8

Saturday August 8 2009

The Times

CARE HOMES CHARITY BIDS FOR CLAIMAR

Housing 21, a specialist housing association, has unveiled plans to acquire Claimar Care CCGP.L, the debt-laden care services provider, becoming the first charity to take over a listed company. The not-for-profit-charity, which provides care homes for the elderly, said on Friday it was preparing a 39 pence a share offer to buy Claimar, in a move that would give it about three percent of the private healthcare market. The proposed bid represents a 221 percent premium to Claimar's 12 pence closing share price on Thursday.

CERES LAUNCHES ITS BILL-CUTTING BOILER

Ceres Power (CWR.L), the alternative energy group in which British Gas holds a 10 percent stake, has launched an ambitious scheme to roll out its new fuel-cell boilers, which claim to reduce household energy bills by four-fifths a year. The company, put together by scientists at Imperial College London, created boilers that use ceramic inks to turn gas into electricity. They generate electricity that is either used within the house or supplied into the grid. British Gas plans to launch its green boilers among 10 million domestic and one million business customers in 2011.

ANALYSTS REMAIN SCEPTICAL DESPITE LOGICA'S MOVE TO TRIM GUIDANCE

Shares in Logica (LOG.L)> rose 2.50 pence to 111.50 pence on Friday after the Anglo-Dutch IT services provider nearly doubled its half-year profits. Despite the upbeat results, chief executive Andy Green moved to play down expectations, saying the company's operating margin would stand at last year's levels. That equates to a 7.4 percent margin, a slight downgrade from its previous forecast. But analysts remained sceptical, saying they expected the company to achieve an operating margin of about 6.7 percent. For the first six months of 2009, pre-tax profits rose to 24 million pounds from 12.6 million pounds a year earlier, while revenue fell only two percent in a market slipping by as much as six percent.

The Daily Telegraph

CATLIN POSTS RECORD HALF-YEAR PROFITS

Catlin (CGL.L), the FTSE 250 insurer, saw its pre-tax profits jump by 60 percent to a record 143 million pounds in the first six months of the year, boosted by net investment returns which surged 262 percent to 195 million pounds. Gross written insurance premiums also grew by 6.7 percent to 2.22 billion pounds in the six months ending June 30. Following the upbeat results, Catlin lifted its interim dividend by nine percent to 8.2 pence, payable on September 25. The largest syndicate in the Lloyd's of London insurance market also said Benjamin Meuli will replace financial director Christopher Stooke, who stepped down from the group.

FINANCIAL TIMES PONDERS "CLICK AND PAY"

The Financial Times is understood to be looking at introducing a "click-per-view" payment system for articles published on the newspaper group's website. Rob Grimshaw, managing director of FT Group, described micropayments as "one area that offers great potential", but said there would not be any specific announcements before the organisation was comfortable that it had "the right customer experience and technical solutions in place". The news follows Rupert Murdoch's recent announcement that he wants to charge for access to his media empire's online content.

SPORTS DIRECT FACES COMPETITION INQUIRY

Sports Direct (SPD.L), which is controlled by Newcastle Utd. owner Mike Ashley, faces an investigation by the Competition Commission into its acquisition of 31 stores from JJB Sports (JJB.L). The Office of Fair Trading turned to the competition regulators following Sports Direct's failure to attract buyers for stores in five areas with competition concerns. The OFT said Sports Direct, which has bought the stores from its rival over a two-year period, had not sold the outlets and had "made no significant progress in doing so". Shares in Sports Direct dropped 3.10 pence to 87.90 pence.

The Independent

STARBUCKS TO OFFLOAD 31 STORES ACROSS THE UK

Coffee shop chain Starbucks (SBUX.O) has unveiled plans to sell 31 of its stores across the UK as part of its drive to reduce the size of its global portfolio. The spots affected include two in London's City district, one in Birmingham's Bull Ring, Glasgow's Princes Square and Wigan's Market Place. A spokesperson for Starbucks UK said the company was holding talks with landlords about options but it did not yet have any specific announcements.

GIBBONS PUTS ITS STAMP ON 1.4 MILLION POUNDS PROFIT

Stanley Gibbons (SGI.L), the collectibles dealer, reported a "remarkable" first-half performance on Friday as it unveiled a 13 percent jump in profits to 1.4 million pounds. For the first six months of the year, sales rose by 18 percent to 9.6 million pounds as the group's increasing network of sales agents generated 1.1 million pounds of overseas business. Gibbons, which sells goods from rare stamps to autographs, said sales of British stamps grew by five percent compared to the corresponding period the year before, while those of Commonwealth issues rose by 18 percent.

"STAYCATIONERS" AND POOR WEATHER AID JOHN LEWIS

John Lewis [JLP.UL] saw its sales increase by 5.6 percent last week as the department store chain benefited from the poor weather and a rise in the number of British families opting for summer holidays within the country. The company, which reported growth at all but eight of its 27 branches, said the Southampton store recorded the biggest sales increase, of 15.9 percent. Homewares and fashion were the biggest risers compared to last year, at 10.5 percent and 8.2 percent respectively. Electricals and home technology declined by 1.9 percent.

The Guardian

RBS CHIEF: IF WE CAN'T PAY BONUSES IT'S THE TAXPAYER WHO WILL SUFFER

The chief executive of Royal Bank of Scotland (RBS.L) has defended the bailed-out bank's need to award bonuses after the company suffered an exodus of some of its best staff. Stephen Hester said RBS needs "good people" if it is to repay its rescue by the government. He said a number of guaranteed bonuses were being awarded, but added that they complied with the Financial Services Authority's directive that they should be for no longer than 12 months.

UK'S WIND INDUSTRY IN DOLDRUMS

UK's wind industry has been dealt a new blow after turbine maker Vestas (VWS.CO) said it was unlikely to restart manufacturing in the Isle of Wight before 2015 because the country is not building windfarms quickly enough to justify it. Rob Sauven, managing director of Vestas Technology UK, described the UK market as not "mature enough", adding that other countries, such as China and Spain, have implemented rules requiring the building of windfarms that used locally made components. If such rules existed in the UK, the company's Isle of Wight plant, the only turbine factory in England, would have avoided closure.

Prepared for Reuters by Durrants