PRESS DIGEST - Financial Times - April 4

SQUEEZE ON CREDIT POISED TO INTENSIFY

The Bank of England's quarterly credit conditions survey has shown a reduction in lending by financial institutions, with expectations of further credit tightening in the months ahead. The balance of lenders expecting to cut secured credit availability to households and small businesses in the next three months was 42.5 percent. The figure from the previous survey, published in January, was 25.3 percent. Philip Hammond, shadow chief secretary to the Treasury, said that "Reading between the lines, the Bank of England is telling us that 'we ain't seen nothing yet' ".

TREASURY'S PROMISES HELP TO CALM FEARS OF WEALTH MANAGERS

Financial secretary Jane Kennedy calmed fears over the effects of the new "non-dom" tax legislation in a letter to the British Bankers' Association on Thursday. Banks had previously issued the Treasury with a warning that they would transfer operations abroad in response to the new regime as it would penalise wealthy foreign residents for using British fund managers or executing transactions in the UK. Kennedy acknowledged that these "unforeseen consequences" in the clauses were unintentional and made assurances that the government would address them "through necessary amendments to the finance bill".

CREDIT CRISIS COULD DELAY PLANS FOR RENEWAL

UK developers are bracing themselves for a delay in regeneration schemes as the credit crunch causes the banking sector to exercise caution over the funding of certain projects. Kevan Carrick, of the Royal Institution of Chartered Surveyors in the north-east of England, explained that banks are "looking very closely at their risk profile and at the schemes' exposure, prices and returns on capital." However, with large-scale projects in the Thames Gateway and the north-east set to go ahead, Joe Docherty, chief executive of Tees Valley Regeneration, pointed out that long-term schemes would ordinarily be expected to "go through a couple of cycles".

MTI IN 32 MILLION POUND UNIVERSITY SPIN-OUT FUND

British venture capital firm MTI has teamed up with Manchester University to raise 32 million pounds for a new fund to address the shortage of early-stage finance for spin-outs from academic research. The UMIP Premier Fund plans to reach its target of 50 million pounds within the next year and aims to invest 250,000 pounds to 750,000 pounds in around 20 ideas. Investors committed to the new fund include the Greater Manchester Pension Fund, the European Investment Fund and Co-operative Insurance Society.

SMG IN NO HURRY TO SELL VIRGIN

SMG SCSMG.L chief executive Rob Woodward revealed on Thursday that the company had sorted out its debt position and was in no rush to sell Virgin Radio. Absolute Radio is currently in prime position to buy the national station, though there are questions about the possible reaction from Virgin Group. It is believed that the station's contract allows Sir Richard Branson's company to prevent the Virgin label from falling into the hands of business competitors. Woodward, reporting on SMG's yearly results, would not comment on the progress of the sale.

FIVE BIDDERS IN FIGHT FOR SAFETY-KLEEN

Five private equity bidders are vying to buy Safety-Kleen, the UK's largest service provider to automotive and industrial customers. Warburg Pincus, Blackstone, Montagu, Hellman & Friedman and Cinven have all made offers, and a deal could value the business at more than 550 million pounds. Safety-Kleen is owned by CCMP, which acquired the company from rival buy-out group Electra Partners in 2004. Goldman Sachs is managing the sale process, having received the first-round bids last week.

SLUGGISH SALES PUT MOSS BROS IN RED

Menswear retailer Moss Bros (MOSB.L) reported a full-year loss yesterday as the possibility of an acquisition by Icelandic investment group Baugur continues to cause concern among shareholders. Revenues for the year to January 26 fell by 3.7 million pounds to 130.2 million pounds. Pre-tax losses were 1.38 million pounds, compared with a pre-tax profit of 5.1 million pounds in the previous year. Flat retail sales reflected its sluggish performance on the high street. Chief executive Philip Mountford defended his stewardship, saying "I've had one bad year and I've got a proven track record."

INTERNET HELPS MOTHERCARE EXCEED FORECASTS

Mothercare (MTC.L) has reported another quarter of market-beating sales growth, driven by its internet operation. Group sales for the maternity and baby goods retailer in the 11 weeks to March 29 were up 3.9 percent compared to a 3.6 percent increase for the previous quarter. Mothercare's "direct at home" shopping service proved successful, with more customers making online purchases. Chief Executive Ben Gordon also outlined plans for the international launch of Early Learning Centre, the upmarket toy chain acquired by the company in April last year.

HOLLYWOOD DRAMA TAKES TOLL ON PINEWOOD

Profits for Pinewood (PWS.L) Shepperton were affected by setbacks from the BBC and Hollywood last year, though the film studio company said that it was expecting less turbulent times ahead this year. Revenues fell by eight percent to 37.4 million pounds in the year to December 31, with pre-tax profits down 26 percent to 5.2 million pounds. The figure was affected by the exceptional banking and legal costs of 985,000 pounds over the unsuccessful attempt to buy the BBC's television studios business. Chief executive Ivan Dunleavy highlighted the persistent demand for UK films, despite the postponement of several productions at the studio as a result of the US screenwriters' strike.

MARSTON'S ADDS REFRESH BRANDS TO PREMIUM ALES

Brewer and pub owner Marston's (MARS.L) is extending its share of the premium ales market with the acquisition of Refresh for an undisclosed sum. Refresh, founded in 2000, brews Duchy Original Organic ales and owns the Hobgoblin and Brakspear's brands. The additions will double Marston's share of the off-trade market for premium bottled ales, taking it to 18 percent, placing it second only to Scottish & Newcastle SCTN.L. Chief executive Ralph Findlay commented that Marston's customers are "becoming more interested in good quality regional products."

Prepared for Reuters by Durrants