PRESS DIGEST - British business - April 26

The Times

PROSPECT OF SLOWDOWN PUSHES WPP LOWER

The chief executive of WPP (WPP.L: Quote, Profile, Research, Stock Buzz), Sir Martin Sorrell, said that higher commodity prices had boosted the American advertising market in the first quarter, but group growth in March was slower than expected. The company's shares dropped 37.5 pence to 592.5 pence after it said that while January and February had been strong across the group, March had been surprisingly lower. However, North America remained strong despite the credit crunch and talks of a recession. Sir Martin said: "Packaged goods companies have increased prices to cover commodity price increases and this has led to more advertising. Interest rates could also be another factor."

GO-AHEAD FINDS ROUTE AROUND FUEL RISES

Go-Ahead (GOG.L: Quote, Profile, Research, Stock Buzz) put fears of increasing rail fares on its routes to rest on Friday after revealing that it was protected against dramatic increases in fuel prices in its key franchises. The rail and bus operator said that it had bought all the fuel that it needed to run its London Midland franchise from St Pancras to Nottingham for six years, at 27 pence a litre. The group has also bought in advance its electricity needs from British Energy(BGY.L: Quote, Profile, Research, Stock Buzz), which protects it from an increase in wholesale electricity prices.