PRESS DIGEST - British business - Nov 20

Daily Telegraph

MORRISONS: NO SUCCESSION RUSH

Sir Ian Gibson, the non-executive chairman of WM Morrison (MRW.L), has said that the company hopes to have a successor to the poached chief executive Marc Bolland in place "early in the new year", but claimed that Morrisons was not in a rush and there was no deadline. Gibson made the remarks as the supermarket chain released results showing that like-for-like sales growth declined to 4.3 per cent during the 13 weeks to November. The figures were disappointing compared to City predictions of 4.6 per cent and the 7.8 percent growth seen in the first half of 2009.

INVESTEC CHIEF CONFIDENT ON RECOVERY

Investec (INVP.L) has reported a 10 per cent fall in its pre-tax profits to 204 million pounds during the first half of 2009. The chief executive Stephen Koseff, however, noted that the bank's bad debts appear to be diminishing compared to last year. Although bad debts rose from 76 million pounds to 134 million pounds in the last six months, they had reached as high as 180 million pounds during the final half of 2008. Koseff expressed optimism for the future, whilst doubting that all the damage done by the financial crisis would be undone.

LADBROKES TO CLOSE CALL CENTRES DUE TO TAX

The bookmaker Ladbrokes (LAD.L) is to close its call centre at Aintree, threatening 263 jobs. Employees are to be offered a chance to relocate, in order to reduce the number of redundancies. The company blamed its decision on tax regulations placed on telephone betting operators in the UK. "Telephone betting is a very competitive market", stated the Ladbrokes spokesman Ciaran O'Brien, "and one that is becoming increasingly difficult for UK-based operators, who face significantly higher levels of tax than those operating from offshore jurisdictions." Revenue fell 41.3 per cent to 9.1 million pounds during the first half of 2009.

QUESTOR

National Grid (NG.L) (Buy)

BG Group (BG.L) (Buy)

The Guardian

TESCO RINGS THE CHANGES WITH PLANS TO OFFER HOME PHONE.

Tesco (TSCO.L) is planning to increase its stake in the telecoms market, saying it sees more opportunities for big returns from mobile phone and broadband users. Tesco has recently announced a five-year deal with Cable and Wireless CW.L for it to supply Tesco with wholesale broadband packages, which it intends to supply to customers in bundled deals with its other products. Tesco is aiming to double its number of phone shops to 200 by the end of 2010.

BLUE-BLOOD CAZENOVE JOINS THE BLUE CHIPS

Cazenove [CAZ.UL] has been bought-out by JP Morgan for one billion pounds. Most of Cazenove's shares were owned by current and former employees - David Mayhew, the chairman of Cazenove, stands to make 20 million pounds from the deal, with JP Morgan offering 535p a share. Mayhew has been at Cazenove for 40 years, and there have been speculations about his retirement for over a decade. He is to stay on as chairman but will no longer have a role in the management of the business.

OLIGARCHS BACK RUSSIAN NOVICE AS NEW CHIEF OF TNK-BP GROUP

In a move that proves the dominance of Moscow shareholders in the TNK-BP group, an inexperienced favourite of the Russian investors has been chosen as the new chief executive. Maxim Barsky, 36, will be trained at BP's(BP.L) headquarters in London for five months before assuming the position in 2011. BP has insisted that it was not steamrollered into the decision. BP's chief executive Tony Hayward said that he was "pleased" by the development.

The Times

LEGAL & GENERAL LINES UP EX-WOOLWICH BOSS AS CHAIRMAN

Legal & General(LGEN.L), the UK's third-largest insurer, is set to appoint former Barclays(BARC.L) chief executive John Stewart as its new chairman. L&G has been searching for almost a year for a replacement for Rob Margetts, who has served as chairman for almost ten years. L&G senior independent director Sir David Walker has begun canvassing shareholders over the prospective appointment, and the insurer is expected to announce next week that Stewart will take up the position from January.

BURBERRY TARGETS INDIA'S BRAND-AWARE MIDDLE CLASS

British fashion firm Burberry(BRBY.L) has applied for government clearance to launch a joint venture with Indian fashion retailer Genesis Colors. Burberry is hoping that it can match in India the growth it has achieved in China, where the company operates 44 stores and is enjoying double-digit percentage revenue growth. Burberry chief executive Angela Ahrendts said: "India is on a different curve. We only have about two stores there now but I see the same growth potential."

TRINITY MIRROR BIDS FOR NORTH EAST SLOT IN ITV LOCAL NEWS

Publisher Trinity Mirror is bidding alongside the Press Association and television producer Ten Alps for the chance to make an ITV(ITV.L) regional news bulletin for the North East. Trinity Mirror is already the owner of several newspapers in the region and hopes that these would form the basis for a new Tyne-Tees news service, to be part-funded by public money. ITV has complained that regional news bulletins will become uneconomic when the UK switches to digital television, and Labour ministers are keen for money from the BBC licence fee to be used to help fund regional news on ITV.

TEMPUS

National Grid(NG.L) (A solid hold)

PayPoint(PAYP.L) (Too soon to check out)

AEA Technology (Take profits)

The Independent

SAB MILLER RAISES A GLASS TO UK SALES

SAB Miller(SAB.L) has reported that volumes increased amongst its leading beer brands in the UK during the six months to 30 September. The brewer's UK business, Miller Brands, grew volumes of Peroni Nastro Azzurro by 35 per cent over the period and increased volumes of Pilsner Urquell by 26 per cent. The brewer reported earnings before interest, tax, depreciation and amortisation were down two per cent to 2.19 billion dollars over the half year period, with pre-tax profits falling to 1.5 billion dollars, after exceptional charges of 239 billion dollars.

HALFORDS PROFITS SOAR BY 24 PER CENT

Halfords(HFD.L) has reported a 24 per cent increase in pre-tax profits to 60.9 million pounds for the 26 week period to October 2, driven by a 2.1 per cent increase in underlying sales during the second quarter and tight cost controls. David Wild, chief executive of the bike and car parts retailer, said: "We can certainly continue sales for the remainder of this quarter, but we are a bit more nervous about the first quarter of next year with VAT going up, unemployment rising and the impact of sterling on buying products from overseas."

KIER NAMES SUCCESSOR TO VETERAN CHIEF EXECUTIVE

Paul Sheffield has been appointed as the successor to Kier(KIE.L) chief executive John Dodds when he stands down from the construction and engineering services group next April. Mr Sheffield is currently Kier's head of construction, infrastructure and overseas business, and has been with the group since joining as a graduate engineer in 1983. Out-going chief executive Dodds said: "I've worked with Paul Sheffield for over 25 years and I'm absolutely convinced that he is the right man to lead Kier into the future. Paul is highly talented and I look forward to working with him to ensure a seamless transition during the lead up to my retirement."

INVESTMENT COLUMN

National Grid(NG.L) (Buy)

Unite Group (Buy)

Huntsworth (Hold)

Prepared for Reuters by Durrants