PRESS DIGEST - British business - May 28

The Times

NORTHERN FOODS TO CLOSE HULL FACTORY BUT PLANS TO UPGRADE FENLAND SITE

Food manufacturer Northern Foods (NFDS.L) announced on Wednesday that it was entering consultations with 350 employees over the closure of its Hull factory, which produces ready meals for Wm Morrison. Chief executive Stefan Barden said that the Leeds company, which is the UK's largest maker of ready meals, was aiming to concentrate its production on a smaller number of more modern and less labour-intensive sites. Northern also said that pre-tax profits in the year to March 28 fell from 50.1 million pounds to 47.5 million pounds, while revenue rose 4.6 percent to 975 million pounds.

NATIONWIDE'S PROFITS TAKE A 69 PERCENT DIVE

Nationwide Building Society [NAT.UL] criticised as "illogical and unfair" the government's savings protection scheme as it reported a 69 percent dive in pre-tax profits to 212 million pounds over the past year. The UK's largest building society attributed its profits slump on low interest rates, the cost of holding additional liquidity during a downturn and the high fees it must pay the Financial Services Compensation Scheme. Despite a surge from 106 million pounds to 394 million pounds in its provision for bad debts, the bank has not considered equity-raising or turned to the government for aid.

LAW PARTNERS SUFFER

Marking the beginning of the reporting season, two leading law firms posted substantial reductions in partners' profits. Lovells and Eversheds, which are among the 10 biggest law groups in the UK, posted double-digit declines in partners' profits. Eversheds said that profits per equity slumped by 27 percent in 2008-09 to 404,000 pounds from 552,000 pounds. At Lovells profits per equity partner dropped 11 percent to 585,000 pounds, compared to 661,000 pounds the year before.

The Daily Telegraph

BSS PROFITS FALL BUT REVENUE RISES

BSS Group (BTSM.L) said its profits fell from 58.3 million pounds to 57.8 million pounds in the year to end of March, while revenue rose four percent to 1.34 billion pounds. The plumbing and heating specialist, which predicted a turnaround in the economy in 2010, warned it expected revenue and earnings to fall in the current year, as the recession took its toll on the group's core markets. During the year, it saved 12 million pounds through cost-cutting moves, including shedding 300 jobs, grew its market share and held on to its margins.

TOPPS' PROFITS FALL AS SLOWDOWN BITES

Topps Tiles (TPT.L) saw its like-for-like sales drop by 18.5 percent over the six months to March 28 following tough trading as a result of the financial crisis. The tile and wood flooring retailer withheld its interim dividend and said that its gross margin had fallen. Despite the drop in nearly all key metrics, shares in the group added 13.50 pence to 78 pence as some analysts upgraded their full-year profit estimations after citing Topps' statement that it does not anticipate the need to renegotiate its financial covenants and debt facilities.

GREAT PORTLAND EXITS HEDGE FOR 18.2 MILLION POUNDS

Great Portland Estates (GPOR.L) has paid its way out of an expensive interest rates hedge. The property company, which owns office and retail space in central London, said it had paid 18.2 million pounds to end the hedge on 190 million pounds of debt. In a short statement on Wednesday, the company said that it would now pay an average interest charge of 2.9 percent on its debt, down from a previous level of 5.2 percent. Last week, the firm unveiled plans to raise net proceeds of 166 million pounds through the issue of 131.7 million new shares at 133 pence.

The Independent

JESSOPS INVESTORS FACE WIPEOUT