PRESS DIGEST - British business - Nov 28

The Times

RBS OFFICIALLY ENTERS ASSET PROTECTION SCHEME

Royal Bank of Scotland(RBS.L) has formally enrolled in the Government's insurance scheme for toxic assets. The bank plans to submit 282 billion pounds ($461.9 billion) of its most troubled assets to the state's insurance policy. In exchange, RBS will pay a fee this year of 700 million pounds which will drop to 500 million pounds annually from 2010. RBS is to raise 25.5 billion pounds through the issue of new shares to the government which will therefore increase its ownership in the bank to 84.4 percent.

BRITISH COMPANY TO HELP INDIA HARNESS THE POWER OF THE SEA

Atlantis Resources has won a landmark contract to try to harness the power of the sea around India for the first time. India has more than 4,500 miles (2,800 miles) of coastline but hasn't established a single tidal power project. The energy company will examine the feasibility of developing projects capable of generating over 100 megawatts. Atlantis's backers include Norwegian state utility Statkraft and Morgan Stanley.

TIDDLER TO WATCH

Shares in waste water business Nature Group (NGRP.L) rose 1.25 pence to 23.25 pence on Friday after the company won a contract to build a waste treatment plant at a port in Oman. Astaire said the deal, worth around $4.2 million, should be would be a showcase of the company's cleantech capabilities.

The Daily Telegraph

ENERGY FIRMS STILL OVERCHARGING ON PRE-PAY METERS

The National Housing Federation has written to the energy watchdog Ofgem saying that five of the big six energy companies -- British Gas, E.On(EONGn.DE), npower, Scottish Power and SSE(SSE.L) -- continue to overcharge pre-pay customers by an average of 12 pounds more than is allowed. Ofgem has been accused of failing to make sure that companies stick to new licensing conditions which require them to charge no more than the extra costs involved in paying by meter.

PROFITS FALL AT HARVEY NICHOLS

Harvey Nichols saw a drop in profits for the year ending March 28, down from 13 million pounds to 10.7 million pounds, on sales falling three percent from 90 million pounds to 87.5 million pounds. The up-market department store said that the business environment "continues to be unfavourable", though it said current sales were beating internal expectations. Pre-tax profits at parent company Broad Gain (UK) fell from 14.5 million pounds to 7.9 million pounds.

GRADE SAYS BSKYB OPPOSED EVERYTHING

In an interview with The Daily Telegraph, Michael Grade has condemned the way BSkyB(BSY.L) handles its relationship with ITV(ITV.L), saying it is "not helpful". The outgoing executive chairman of ITV said BSkyB had "opposed everything we've put up so far". He highlighted what he called BSkyB's disappointing opposition to abolition of the contract rights renewal regime and said BSkyB had also opposed the regulatory approval of Project Kangaroo and Project Canvass, both proposed partnerships with the BBC. BSkyB bought a 17.9 percent stake in ITV in 2006 and has presented itself as a supportive shareholder.

The Independent

SCHOOL TRIPS SUPPORT HOLIDAYBREAK

Holidaybreak (HBR.L) has reported that "resilient" trading at its PGL and NST school trips units offset a loss-making year at its adventure travel brand Explore. The group made pre-tax profits of 28.4 million pounds for the year to September 30, down 13 percent on 2008. While profits at PGL and NST rose 69 percent to 10.5 million pounds, Explore posted a 6.7 million pounds loss.

GUY HANDS PAYS 112 MILLION POUNDS FOR NOVERA ENERGY

Infinis Energy, owned by Guy Hands, won over its rival Novera NOEN.L on Friday with an offer of 77 pence a share which values the group as 112 million pounds. Novera operates hydropower plant, landfill gas plants and windfarms across the UK. The cash offer, revised up from a 62.5 pence approach in October, was enough for the board of Novera to recommend it to shareholders. Over 50 percent of investors had accepted the offer by late afternoon.

COMPETITION WORRIES WEIGH ON HOME RETAIL

Argos and Homebase owner Home Retail Group(HOME.L) was under pressure on Friday with its shares dropping nearly 5 percent during trading after Goldman Sachs said the company faced significant challenges in the form of growing competition, ongoing pressure on fixed margins and a high and fixed cost base. Goldman Sachs said these factors would "hinder an improvement in return", which in turn is likely to hold back the share price. The broker moved its recommendation to sell and said it believed there was an increased threat from supermarkets, online competitors and new entrants. Shares in Home Retail finally closed at289.4 pence, down 2.2 pence.

The Guardian

JAGUAR CUTS LOSS TO 60 MILLION POUNDS IN SURPRISE TURNAROUND

Aggressive cost cutting and the popularity of new models has helped Jaguar Land Rover return to the black. Tata Motors, Jaguar's owner, said the carmaker made an operating profit of 41.3 million pounds in the three months to September 30, compared with a loss of 34 million pounds in the same quarter a year earlier. Net loss narrowed from 240 million pounds to 60 million pounds. Jaguar sales increased by 23 percent to 44,300 vehicles. Sales in Britain rose 34 percent to 14,400 vehicles, sales in China climbed 2.1 percent to 3,400, but North American sales fell 7.3 percent to 9,600. Jaguar employs 14,500 people but plans to close one of its West Midlands plants by the middle of 2010 and close its final salary pension scheme to new members.

THRESHERS OWNER CUTS 2,140 JOBS WITH 391 MORE CLOSURES

Accountants at KPMG, who took control of First Quench when it collapsed into administration on October 29, are to close another 391 off-licences. First Quench operates on the high street under the names Bottoms Up, Haddows, The Local, Threshers, Victoria Wine and Wine Rack, which between them will see another2,140 jobs cuts, bringing the total announced this month to 5,850.

NET PIRACY LAWS ARE CRAZY, SAYS CARPHONE BOSS

Charles Dunstone, the boss of Carphone Warehouse(CPW.L), has criticised as "crazy" government plans to severe people's broadband connections as a method to combat online piracy. Talk Talk, which is owned by Carphone Warehouse, has threatened to take legal action if government plans to cut off persistent unlawful online file sharers make it into law. An e-petition against the law on the No 10 website has already received 26,000 signatories. On Friday, Carphone Warehouse said half year profits increased to 75 million pounds from 40 million pounds the previous year and revenues climbed 13 percent to 789 million pounds.

Prepared for Reuters by Durrants ($1=.6105 Pound)