PRESS DIGEST - British business - April 25

The Times

YOU'VE TRIED MY CHURCHILL FOOD, NOW TRY MY CHURCHILL PLATES.

The Stoke-on-Trent based pottery manufacturer Churchill China (CHCH.L) has acquired the rights to produce Jamie Oliver-branded crockery from the china maker Royal Worcester, which fell into administration last November. Separately, fellow Stoke-based pottery firm Portmeirion (PMGR.L) has acquired the Royal Worcester and Spode Brands for 3.2 million pounds. Portmeirion said the purchase would generate at least seven million pounds of additional sales in the remaining eight months of the year and 12 million pounds every year after that. "We have got worldwide distribution. We can take these brands and market them properly," said Dick Steele, chief executive of Portmeirion.

DAWSON LOSES YET ANOTHER DISTRIBUTION DEAL

Dawson Holdings (DWN.L) has been dropped as the distributor of IPC Media's magazines, which include titles such as the NME, Marie Claire and Horse & Hound. Marketforce, which prints IPC Media's magazines, has agreed a new distribution deal worth around 330 million pounds with Smith News and John Menzies. The new arrangement is expected to be announced on Monday or Tuesday next week. The loss of the IPC contract for Dawson follows decisions by Telegraph Newspapers and Cosmag not to renew deals. Dawson also revealed it has failed to retain an 84 million pound contract with Associated Newspapers. Dawson said it may have to cut 2,800 jobs nationally as a result of the contract losses.

SUPPLIER SHOWN THE DOOR

350 jobs have been put at risk at the sandwich supplier Hain Celestial UK (HAIN.O) after the retailer Mark & Spencer (MKS.L) ended its contract with the firm. Hain said it would continue to supply 40 local M&S stores on a trial basis and that the firm's factory in Luton would remain open until next April. It is understood Northern Foods (NFDS.L) and Uniq (UNUNI.L) will win the additional trade. Irwin Simon, chief executive and president of Hain Celestial, said, "We can assure you that we are working very hard to secure new business and are fully committed to building the business." An M&S Spokesman said discussions with Hain had begun 14 months ago: "We have done everything we can to support Hain, delaying the transfer and agreeing to a significantly phased withdrawal to allow Hain time to try and secure new customers."

Daily Telegraph

POSTAL STAFF FACE PAY FREEZE

Royal Mail [GBPO.UL] has written to unions informing them the company is facing a "tight financial position" and that all employees across the Post Office, Parcelforce and other parts of the business, will face a pay freeze this year. Jon Millidge, the company's director of human resources, said the recent fall in the RPI meant a wage freeze was reasonable. Union leaders said it was unacceptable a company run by the official with the best wage in the public sector should freeze the pay of junior staff.

DOUBTS OVER CAPITAL & REGIONAL'S FUTURE

Commercial property investor and fund manager Capital & Regional has reported an annual pre-tax loss of 516.3 million pounds and warned that there is "material uncertainty" over its ability to continue as a going concern. Chief executive Hugh Scott-Barnett called the results "deeply disappointing". The company is close to completing a fund-raising and renegotiation of banking facilities in its Junction and X-Leisure funds. Shares, down 90 per cent since December 2007, closed down 0.25 pence at 40 pence.

CARPHONE POISED TO SNAP UP TISCALI UK

Carphone Warehouse (CPW.L) is in discussions to buy Tiscali's (TIS.MI) UK broadband business for around 200 million pounds, less than half the price rejected by Tiscali last year. Tiscali said it is in talks over the "disposal of its activities in the UK" and expects a binding offer from Carphone before the end of the month. Tiscali's banks are pressuring the Italian Internet company into a sale to help reduce its 500 million euro debt burden. Earlier this month, auditors Ernst & Young refused to sign off Tiscali's accounts.

The Independent

CANDOVER IN TALKS AFTER BID APPROACHES