PRESS DIGEST - British business - March 1

Mail on Sunday

SUPERDRY BOSS IS READY TO SPLASH OUT

Clothing designer Julian Dunkerton is planning to give staff shares in his fashion company Superdry following another successful year for the brand. Sales at the company - which is owned in partnership with designer James Holder from Bench - are expected to double to 73 million pounds for the full year to April with record profits of 15 million pounds. New stores in New York and Los Angeles are anticipated.

PREMIER TO MAKE PLEA FOR 400 MILLION POUNDS

This week, food producer Premier Foods (PFD.L) is expected to finalise plans to raise 400 million pounds of fresh capital from shareholders. The proposal will form part of Premier chief executive Robert Schofield's pledge to put a new capital structure for the company in place by April and to reduce the company's 1.8 billion pounds of debt. Analysts are expecting Premier to announce profits of around 187 million pounds for the year to December 31, compared with 170.8 million a year earlier.

WPP TURNOVER SET TO BE FLAT IN 2009

The marketing services group WPP (WPP.L) is predicted to report better than expected results this week. When he announces the group's annual results on Friday, group chief executive Martin Sorrell is expected to say that revenues this year will be flat -- an improvement on many analysts' predictions which have sales down about five per cent. Group profits of 919 million pounds are predicted for 2008, an increase of 12 per cent on 2007.

Sunday Times

HOSPITAL FIRM EYES SELL-OFF

Nuffield Health is considering the sale of some of its assets -- including Vanguard -- as concerns grow over its debt pile. The most recent public accounts available, filed in 2007, show debts totalling almost 340 million pounds. Vanguard, the firm's mobile operating theatre arm is estimated to be worth 35 million pounds and Vanguard's management is seen as the most likely buyer. Other subsidiaries of the healthcare group include Cannons, the gym chain, although this is less likely to be sold.

EVEN PREMIER INN TAKES A BATH

The Whitbread (WTB.L) leisure group is to report that like-for-like sales at its Premier Inn chain has fallen, after growing 9.5 per cent in the first nine months of the financial year. This is thought to serve as the first sign that the recession has begun to hit budget hotels when it delivers a trading update tomorrow. Some analysts think sales at Britain's biggest hotel group may have slipped by about five per cent, although this is still better than the picture in the wider hotel sector.

ACTIVIST INVESTOR FACES A REBELLION OF HIS OWN

Brian Myerson is to face shareholders in his Principle Capital Investment Trust PCIT.L who are seeking to remove him along with three other board directors, sell the company and return capital to shareholders. South African Myerson, who helped establish shareholder activism in Britain has now become the target of shareholder revolt as the activist group, driven by American hedge fund QVT, is furious about the firm's poor investment track record. The group is also incensed by the fund's decision to purchase 2.2 million pounds of shares in Principle's management company last August, which have since lost 75 per cent of their value.

Sunday Telegraph

THOMSON BIDS FAREWELL TO EQUITABLE

Charles Thomson is to step down as chief executive of Equitable Life after spending eight years at the helm of Britain's oldest mutual insurer. It is believed Thomson will step down to seek new challenges, feeling that the job has changed fundamentally since taking over at a time when the mutual was close to collapsing. Thomson was seen as the key to stabilise Equitable, which fell from grace after being unable to pay guaranteed annuities. At its peak, Equitable was a 26 billion pound business, with 1.5 million policyholders. However, the mutual now has six billion of remaining assets managed on behalf of around 500,000 policyholders.

EX-PRIORY BOSS SET FOR COVENANT BID

Dr Chai Patel is preparing a bid for Covenant Healthcare. The struggling plastic surgery group was put up for sale by its private equity owner Cognetas and the former Priory chief executive's Elysian Capital and Care Management investment funds are believed to have offered to back a management buyout. Cognetas bought Covenant from Phoenix Equity Partners for 170 million pounds in 2005, but has appointed Hawkpoint to conduct a sale after Covenant made a pre-tax loss of 137.7 million pounds over the year to September 30, 2007 following a writedown of the goodwill on the purchase.

SAFESTORE INTRODUCES PAY 'CLAWBACK' CLAUSE

Safestore (SAFE.L) has become the first British company to include a clause in its directors' contracts forcing them to pay back bonuses earned for profits which prove to be false. The self-storage group also froze all executive directors' pay at 2007 levels due to the "current economic outlook". The clawback clause states that the company's remunerations committee can require individuals to repay bonuses or Performance Share Plan awards at "any time" if they deem the payments to have been "manifestly inaccurate".

Independent on Sunday

WHISTLEBLOWER TO PRESENT NEW HBOS EVIDENCE

Paul Moore, the former HBOS HBOS.L employee who exposed the reckless sales culture present at the bank, has presented more evidence to the Treasury Select Committee. Moore testified that "this crisis was caused, not because many bright people did not see it coming, but because there has been a completely inadequate balance of powers between the executive and all those accountable for overseeing their actions and reining it in." His statement will open the way for the bank's shareholders to take legal action against its executives and directors.

FIVE AND ITV EXPECTED TO LOSE UP TO 600 JOBS THIS WEEK

About 100 of the television channel Five's 350 staff are likely to be made redundant this week, with 500 jobs also being lost at ITV (ITV.L) when the latter records its full-year results. Advertising revenue for broadcasters is believed to have declined by around a fifth over the past twelve months. Reports suggest that ITV is planning to propose a merger of ITV, Channel Four and Five, which would save the channels a total of 200 million pounds through the sharing of administration costs.

HSBC SET TO LAUNCH 12 BILLION POUND RIGHTS ISSUE

HSBC's (HSBA.L) announcement of its full-year results for 2008 on Monday is expected to coincide with a 12 billion pound rights issue, with which the bank hopes to recoup what is widely predicted to be a large fall of more than a quarter in pre-tax profits. HSBC has been the only British bank not to request money from its shareholders, but investors are generally willing to do so to end the speculation over a rights issue. The bank's shares fell by 6.8 per cent to 491.25 pence.

The Observer

CURRYS GOES MEGA TO FIGHT BEST BUY

DSG International (DSGI.L) will this week unveil plans for a chain of Currys Megastores as it looks to see off the challenge of American electricals retailer Best Buy, which is set to debut in the UK this year. On Tuesday, Chief executive John Browett will take a group of analysts to Birmingham to see the first Currys Megastore, which is expected to generate 30 million pounds worth of sales this year. Another five Megastores are planned, with DSG having already secured a site in south-west London for a second store.

BT SPEEDS AHEAD WITH BROADBAND NETWORK

Media regulator Ofcom will this week propose a new set of rules which will include a change in the way that BT's (BT.L) networks business, Openreach, operates, allowing BT to begin offering broadband speeds up to 20 times faster than the current average. BT plans to build a 1.5 billion pound fibre-optic network over the next three years and will be forced to open the network to competitors. The terms of Ofcom's proposals also ensure that BT will be able to make money from the network, which could run at speeds of 100Mb per second.

OLD MUTUAL SEEKS BUYERS FOR NEDBANK

London-listed insurance group Old Mutual (OML.L) plans to dispose of its 53 per cent holding in South Africa's Nedbank and has approached Standard Life (SL.L) to discuss a possible deal. An official announcement that Nedbank is no longer considered a core asset is expected from new chief executive Julian Roberts when he announces the findings of a strategic review alongside full-year results on Wednesday. HSBC is also understood to be interested in Nedbank.

Sunday Times

Sharewatch

Rightmove (RMV.L) [Smart money is on life getting harder]

Sunday Telegraph

SUNDAY QUESTOR

Bunzl (BNZL.L) [Buy]

Segro(SGRO.L) [Avoid]

Hardy Underwriting [Avoid]

Prepared for Reuters by Durrants