PRESS DIGEST - British business - Sept 3

The Times

BREAK-UP THREAT COULD FORCE US TO MOVE FROM LONDON, SAYS HSBC

Stuart Gulliver, chairman of HSBC's (HSBA.L) Europe and Middle East divisions, has said Britain could suffer if the new Banking Commission recommends the break up of lenders into high street and investment banks. Gulliver told a banking conference that any decision to split banks would have "significant implications" for where HSBC chooses to locate its headquarters, despite its preference to remain based in the UK. In August, Peter Sands, chief executive of financial services company Standard Chartered (STAN.L), also issued a similar warning about relocating its bank headquarters. This sentiment has in turn been echoed by rival Barclays (BARC.L).

STAMP DEALERS SELL UP FOR 300,000 POUNDS

M&N Haworth, the specialist stamp dealers, has been bought by collectables company Stanley Gibbons (SGI.L) for 300,000 pounds. A cash payment of 150,000 pounds will be made once the deal is completed, with a further 150,000 pounds to be paid next April. Michael Hall, chief executive of Stanley Gibbons, said: "Primarily, this is an investment in our brand and the quality and range of our stockholding." Last month saw Stanley Gibbons report a 10 percent increase in pre-tax profits to 1.6 million pounds for the six months to June 30, as well as a 24 percent rise in revenues to 11.9 million pounds.

TIME TO MOVE ON FOR CHIEF OF RAB CAPITAL

Stephen Couttie, chief executive at hedge fund manager RAB Capital RAB.L, resigned on Wednesday saying that the time was "appropriate" to "pursue interests outside the group". The company's funds suffered during the financial crisis after it invested in Northern Rock. Prior to the crisis, assets under management were worth seven billion dollars. They are now valued at 1.26 billion dollars and RAB's share price has fallen from 2007's 100 pence to Wednesday's 12.5 pence. Couttie stabilised the company by cutting staff and shedding some of the portfolio. He will continue to advise RAB and will be replaced by Charles Kirwan-Taylor.

SRT MARINE SYSTEMS PROFIT BY GULF DISASTER

Software Radio Technology (SORA.L) has recorded a revenue increase of 150 percent after the Gulf of Mexico oil spill created demand for its marine automatic identification systems. On Thursday, the Bath-based company announced first-quarter revenue of 1.8 million pounds, with a near 500,000 pound profit. Simon Tucker, SRT chief executive, said the U.S. Coast Guard has been using its systems to monitor clean-up efforts and to identify areas that are unaffected and can be utilised by fishing boats.

TEMPUS

McBride (MCB.L) (Few short term reasons to chase)

Restaurant Group (RTN.L) (Hold)

Spice SPI.L (Cinven's offer doesn't look generous)

The Daily Telegraph

ROCKHOPPER EXECS COLLECT EARLY BONUSES

Oil explorer Rockhopper (RKH.L) has defended its latest round of early bonuses, amounting to almost one million pounds for four executives, saying payments for 2009 and 2010 are part of a "move to more accurately reflect the year being reported". The decision to award bonuses represents a third payout to directors in the past 16 months and follows the explorer's announcement that it has located oil in the Falkland Islands. However, Rockhopper is still awaiting key tests and has just raised 48.5 million pounds in a share placing to finance additional testing. Cannacord, the firm's house broker, said: "There is every chance that the well will flow at satisfactory rates when it is tested later this year."

WETHERSPOON BOSS THREATENS TO BOYCOTT "MORONIC" DIAGEO

The chairman of pub group JD Wetherspoon (JDW.L) has mounted a scathing attack against Diageo (DGE.L) and threatened to boycott products produced by the drinks giant, over its proposals for uniformity across all alcohol taxes. JD Wetherspoon chairman Tim Martin labelled Diageo a "bunch of morons" and threatened to not renew its contract with the drinks giant unless it "radically changes its tune". In a submission to the Treasury this week, Diageo suggested that a unit of alcohol should be taxed at the same rate for all drinks. But the British Beer and Pub Association said a move for equivalency in alcohol taxes "would have a very negative effect on the UK pub industry".

MCBRIDE PROFITS JUMP 33 PERCENT AS COMMODITY PRICE RISES SLOW

Shares in supermarket own-label household goods manufacturer McBride (MCB.L) soared by 13.5 percent to 160 pence on Thursday after the company announced a 33 percent increase in pre-tax profit. McBride said increases in commodity prices would be at the lower end of its earlier forecasts. McBride had said in June that there was "significant risk" commodity prices could rise by between four percent and six percent by the end of 2010. The company's pre-tax profit rose to 29.6 million pounds in the 12 months to the end of June. In 2009, pre-tax profit was 22.2 million pounds.

TRAVELZEST BOSSES TO RECEIVE 2.6 MILLION POUND PAYOUT

Executives at holiday company Travelzest (TVZ.L) will get a 2.6 million pound bonus if the firm is acquired for 18.5 pence a share, a figure 33 percent lower than Thursday's closing share price. In a stock exchange announcement, Travelzest said the price target was intended to "appropriately incentivise the relevant directors to ultimately achieve best value for Travelzest shareholders should any exit be forthcoming". In 2008, Travelzest held talks with rival TUI Travel over a possible takeover worth 115 pence a share, but the talks did not result in a deal.

SPICE IN TALKS AFTER CINVEN RAISES OFFER

Cinven, the private equity company, has increased its indicative cash offer for water metering company Spice SPI.L to 70 pence a share, valuing the company at around 246.5 million pounds. The deal will see shareholders receiving a final dividend of 1.22 pence, which was set when the full-year results were announced in July. Spice, whose customers include British Airways, EDF and Starbucks, issued a statement saying it has now ended all discussions with other interested parties. Shares in Spice increased 5.6 percent to 67 pence on Thursday.

QUESTOR

Go-Ahead (GOG.L) (Buy)

Weir Group (WEIR.L) (Buy)

The Independent

HAYS PROFITS SLUMP 80 PERCENT IN TOUGH TRADING CONDITIONS

Hays (HAYS.L), the recruitment group, reported pre-tax profits for the year to June 30 of 71 million pounds, down from 150 million pounds. Alistair Cox, Hays' chief executive, said improvements in the UK private sector and a return to pre-recession recruitment levels in Asia gave the company a positive outlook for the coming year. The company plans to open an office in Mexico City, its second in South and Latin America, and an office in the United States. The UK public sector accounts for ten percent of global revenues, while 58 percent of revenues are generated from outside the UK. Net fees for 2009 fell 17 percent to 556 million pounds.

INVESTMENT COLUMN

Go-Ahead (GOG.L) (Hold)

McBride (MCB.L) (Hold)

The Guardian

LET PENSIONERS PAY ONE-OFF FEE FOR BUS PASS, SAYS GO-AHEAD

The chief executive of Go-Ahead (GOG.L), the public transport operator, said pensioners should pay a one-off fee when applying for a free bus pass. Keith Ludeman said the proposal could help address the UK's multi-billion pound deficit. Free bus travel costs the Department for Transport and the Department of Communities and Local Government one billion pounds a year. Age UK, the charity, said charging an administration fee would hit the poorest pensioners the hardest. Ludeman's comments come as Go-Ahead reported a drop in pre-tax profits to 88.7 million pounds, while revenues for the year to July 2010 increased by 0.7 percent.

Prepared for Reuters by Durrants