PRESS DIGEST - British business - June 24

The Times

CRESTON'S "ENCOURAGING" PIPELINE

Telecommunications group Creston (CRCRE.L) has reported a five percent increase in full-year pre-tax profits to 14.2 million pounds. The company said its performance had been boosted by new business and that its pipeline remained "encouraging", although it did not recommend a dividend. Chief executive Don Elgie said he was "comfortable" with the market predictions of 81.1 million pounds in revenue for the current financial year.

CHAUCER EXECUTIVES QUIT AFTER TALKS FAIL

Senior executives at Chaucer (CHU.L) quit on Tuesday night as the Lloyds of London insurer withdrew from merger talks with rival Brit Insurance. Chief executive Ewen Gilmour told the board he would step down at the end of the year, while finance director Mark Graham has already left the company. Chaucer has begun its search for their replacements. Chris Forbes, senior independent director at Chaucer, is also quitting at the end of the month. It is understood the three men faced shareholder pressure to stand down as a condition of Chaucer receiving support to remain independent.

SULTAN OF BLING VOWS TO BRING SPARKLE BACK TO FENNELL

Theo Fennell has returned to take creative control of the jewellery business that bears his name. His move follows co-founder Richard Northcott's decision to step down as chairman. Additionally, Barbara Snoad will return as chief executive, replacing Pamela Harper, who had embarked on ambitious expansion plans. Fennell said he had returned because the business had lost its direction, adding: "The business had shifted further towards the high street and being a brand and we have got something more special and marketable than that." Fennall's share of the business has increased from 15 percent to 19 percent.

The Daily Telegraph

IN THE DOLDRUMS: CARPHONE CUTS DUNSTONE'S PAY

Carphone Warehouse (CPW.L) has scrapped bonus payments to all directors, including co-founder and chief executive Charles Dunstone. Dunstone, who has seen his paper fortune fall by 149 million pounds over the last year, received 588,000 pounds for the year to the end of March compared to 1.1 billion pounds the previous year. The firm has also frozen all directors' pay.

UK MAY OUTSOURCE NUCLEAR ACTIVITY

Public spending cuts could see the government outsource its nuclear energy activity to the private sector. The issue was addressed in comments made by Business Secretary Lord Mandelson at a nuclear power industry event in London. Mandelson also said UK companies are capable of supplying up to 90 percent of the work for new-build power stations. While expressing a reluctance to provide subsidies, he conceded the current economic climate makes it difficult for firms to secure the financing for large infrastructure projects.

CHEMRING SEES SURGES ON STRONG GROWTH FROM AFGHANISTAN CONFLICT

Chemring (CHG.L) predicts strong earnings growth for at least the next two years, fuelled by the ongoing Afghanistan conflict. The firm makes flares and decoys to protect the military from attack and expects increased demand as NATO and U.S. troops look to protect themselves in the region. Posting a 44 percent rise in pre-tax profit in the six months to the end of April, the group has already reported faster growth in its pyrotechnics and bomb detection units, and Investec analyst Chris Dyett highlights Chemring as a key pick in the sector. Dyett said: "We do not believe any of its peers offer Chemring's top line growth prospects combined with sector-leading operating margins."

The Independent

DRAX RAISES 108 MILLION POUNDS IN NEW SHARES TO FIGHT DEBT