PRESS DIGEST - Financial Times - Jan 30

PROPERTY TOPS LIST AMONG RETAIL INVESTORS

The Investment Management Association has released its year end statistics, revealing that retail investors invested more money in property than any other sector in 2006, spurred on by the prospect of double-digit returns and a need for portfolio diversification. The head of research at Hargreaves Lansdown, Mark Dampier, states that bricks and mortar have gained momentum, the inflow of money into the sector being so great that property fund managers can't invest in the sector quickly enough. One statistic reveals that over six months, Norwich Union took between 80 million and 100 million pounds a month from people wanting to invest in its UK Property Trust.

SPORTS WORLD GEARS UP FOR TWO BILLION POUND FLOTATION

The UK's largest sports retailer, Sports World, is readying itself for a planned two billion pound flotation which could occur as soon as March. It is understood that the company, owned by Mike Ashley, will meet bankers from Merrill Lynch, Citigroup and Credit Suisse to determine the company's future. The three banks are investigating whether there is investor appetite for the IPO, with a go-ahead dependent on their confidence that the valuation can be met in an environment which is still unsettled by the recent flotation of Debenhams (DEB.L).

SHELL IRAN PLAN TO COME UNDER SCRUTINY BY USA

The US government is set to investigate a controversial service agreement with the Iranian government, signed by Royal Dutch Shell (RDSa.L) and its partner Repsol (REP.MC) of Spain this weekend, which may lead to a multi-billion dollar investment being made in Iran. The contract sees the companies continuing to work on the development of blocks 13 and 14 of the giant South Pars gas field, despite growing international concern over the nation's nuclear programme.

BOOST FOR ROYAL LONDON

Britain's largest mutual life and pensions company, Royal London, has announced a 10 percent increase in total new life and pensions during 2006, but added that the increase had been constrained by its reluctance to pay high commissions for new business that does not remain on its books long enough to be profitable. A spokesperson for Royal London said the company believes that writing for new businesses that only remain on its books for around four to five years is not a sustainable business model, the pensions market having been intensely price-competitive.

FILTRONIC WARNS OF MORE LOSSES

The electronic company, Filtronic (FTC.L), has warned that it will experience continued losses this year and may take longer than expected to return cash to investors after the sell-off of its largest division. The company has also reported that it is set to offload its US defence business, and has reduced R&D costs in an attempt to move its finances back into profit. Chairman John Poulter stated that the outlook for the second half of the year indicated that losses in compound semi-conductors and the US defence arms, along with central costs, would exceed operating profits from UK defence business, and the board has said that this situation is not acceptable.

SMG CUTS ITS PENSION DEFICIT TO 22 MILLION POUNDS

The Scottish media company SMG SMG.L has reported that its pension deficit nearly halved in 2006, decreasing the chances of failure of a proposed merger with Ulster Television (UTV.L). The group's pension deficit fell from 40 million pounds to 22 million pounds on a positive performance by its funds' investments. Talks between SMG and Ulster have stalled over the issue of valuation differences, and despite the good news from SMG, analysts have suggested that UTV could still pull out of the deal.