PRESS DIGEST - Financial Times - March 4

The Financial Times

VACANCIES FALL AT STEEPEST RATE FOR 11 YEARS

The downward spiral of the UK employment market has gathered pace as job openings dived in February at the steepest rate for 11 years, a new poll has revealed. The survey, conducted by the Recruitment and Employment Confederation and KPMG, also found permanent and temporary job placements dropped at near record levels, while the anticipated exodus of migrant workers from eastern and central Europe did not appear to be happening as the employment situation abroad was just as bad. The only area that proved to be resilient amid sharply declining demand was found to be the nursing, medical and care sector.

COUNCIL CHIEFS HIT BACK AT "FAT CAT CLAIMS"

Solace, the organisation for local authority chief executives, has hit back at claims of "fat cat" pay as the Audit Commission's annual report on council performance showed a record number of local authorities being awarded the maximum four-star rating. On the back of a new report, published by Solace, which revealed that private sector chief executives were typically paid about three times as much compared to their council counterparts, director-general David Clark pointed out that salaries are not spiralling out of control. He said Solace's choice of private sector comparators showed that "if that was a private sector job, they would be paid three times more".

FSA BRINGS FORWARD CFD RULE

The Financial Services Authority has introduced new rules to make investors disclose their holdings of contracts for difference when they reach three percent of a company's outstanding stock. The plans, designed to bring forward greater market transparency, will take effect from June 1. Daniel Godfrey, director-general of the Association of Investment Companies, praised the City watchdog's new scheme. He said: "This can only be good news for investors." The rules are broadly in line with those of the Takeover Panel, which demands disclosure of positions equivalent to more than one percent of equivalent stock.

BA SUFFERS STEEP DROP IN TRAFFIC

A plunge in premium business travellers set off a sharp fall in British Airways' (BAY.L) passenger traffic for February, the airline is expected to report on Wednesday. The company, which is seeking to meet its own challenges of shrivelling cash resources and growing deficits in its pension fund, will also inform investors on Thursday on how it plans to reduce costs and further cut jobs. Willie Walsh, the airline's chief executive, has predicted a "long and protracted recession" that would last up to two years. "The economic climate is the worst I've seen in my 30 years in the industry," he said.

BRIXTON AXES CHIEF WHEELER IN MOVE TOWARDS CASH CALL

Tim Wheeler, Brixton's BXTN.L chief executive, has been asked to stand down by the industrial property company's board after 24 years in the role, in a move seen as heralding a cash call later in March. Investment director Peter Dawson, who has been with Brixton since 1997, will take over Wheeler's responsibilities, and will focus on securing additional financial flexibility for the company. Brixton said on Tuesday: "The board has decided to change its chief executive at this time to ensure that it has the most appropriate leadership in place for the long-term future of the company."

TROY WINS MANDATE TO MANAGE PAT FUND

Troy Asset Management has been appointed to run Personal Assets Trust's investment portfolio, following the death last autumn of Ian Rushbrook, PAT's long-standing director. Troy's selection was based on the fact that both groups have a similar risk-averse approach to investment. Sebastian Lyon, Troy's chief executive, will manage the 153 million pounds Scottish investment trust in a similar way to his Trojan fund, focusing for the long-term on dividend-paying stocks. He did not exclude the possibility of gearing PAT to a maximum of 130 percent to benefit from opportunities in equities over the next year.

JUST CAR CLINICS POSTS STRONG RESULTS

Just Car Clinics (JCR.L), the independent collision repair chain, has posted a strong set of results for 2008. Pre-tax profit rose 10 percent from 1.19 million pounds to 1.31 million pounds on revenue up 16 percent from 36.8 million pounds to 42.6 million pounds. However, the York-based group, which operates 23 centres, said profits were hit by high fuel prices as people left their cars at home. Earnings per share increased from 5.8 pence to 5.9 pence, while the total dividend was raised from 1.5 pence to 1.6 pence via a 1.07 pence final.

RISING RATES AID JARDINE LLOYD

Jardine Lloyd Thompson (JLT.L), the UK's biggest publicly traded insurance broker, has unveiled a 15 percent rise in underlying full-year profits, helped by rising rates, sales growth and a drop in the value of the pound. However, 2008's pre-tax profits fell from 95.2 million pounds to 92.8 million pounds, as the 2007 figure was boosted by a 12.7 million pounds sale of a business in France. Fees and commissions rose 13 percent to 536.1 million pounds. Chief executive Dominic Burke acknowledged the difficulties of the current economic climate but said: "Assuming no material deterioration from here, we would expect JLT to make further progress in 2009."

PROVIDENT SEES UPLIFT AS RIVALS QUIT SUBPRIME

Shares in door-step lender Provident Financial (PFG.L) rose 13 pence to 803 pence after it unveiled a 12 percent year-on-year rise in 2008's pre-tax profits, up from 115.2 million pounds to 128.8 million pounds on turnover up from 669 million pounds to 751 million pounds. Chief executive Peter Crook said Provident differed from its stumbling rivals like Cattles (CTT.L) and London & Scottish and detailed the company's policy: "We lend small amounts over short periods. We are very close to our customers, with an agent seeing them every other week." Earnings per share rose from 40.9 pence to 70.9 pence while its dividend was maintained at 63.5 pence with a 38.1 pence final.

EVENTS BUSINESS BOOSTS UBM

A strategic move towards data services and exhibitions helped United Business Media (UBM.L), the owner of PRNewswire, to raise its dividend by 10 percent to 23.8 pence (21.6 pence) on the back of higher revenues. The company said sales increased 10 percent to 887 million pounds, up from 801.6 million pounds, while underlying operating profits were flat at 146.7 million pounds. Higher restructuring and financing costs dragged pre-tax profits down, 101.3 million pounds compared to 129.5 million pounds, while earnings per share dropped from 42.7 pence to 31.5 pence. Chief executive David Levin said UBM was "as well placed as it can be to continue to deliver value to shareholders".

Prepared for Reuters by Durrants