PRESS DIGEST - BRITISH BUSINESS - DEC 27 =3
The Independent
BUY NOW, SELL LATER -- HOW BRITAIN SPENT BOXING DAY
Wednesday saw record numbers of shoppers take to the high streets as retailers offered unparalleled Boxing Day discounts. Fearful of a downturn in the economy in the New Year, major stores on the high street offered up to 70-percent price cuts. The director general of the British Retail Consortium, Kevin Hawkins, said retailers were working hard to recoup low Christmas profits, adding: "It's not inconsistent to have retailers whose profits are falling and whose sales are going up. That's one of the problems of discounting." Meanwhile, a YouGov poll revealed that one in five people who went online on Christmas Day made a purchase, making online sales reach 53 million pounds, the busiest Christmas Day ever.
INCREASING POPULARITY OF CAVA ADDS FIZZ TO FESTIVE SALES OF SPARKLING WINE
Partly driven by the TV adverts by the supermarket chain's chef Jamie Oliver, Sainsbury's (SBRY.L) has reported a 200-percent surge this year in the sales of the Spanish sparkling wine Cava. Waitrose reported a 20-percent increase in 2007 for the drink that shares with champagne the fact that it is fermented twice. Cava now accounts for half of Sainsbury's sales from non-champagne sparkling wine. In 2006, the amount of Cava shipped to the UK registered a 6-percent increase.
PASSENGERS AT HEATHROW FACE ZERO TOLERANCE
As it attempts to improve its poor punctuality record, British Airways BAY.L has issued a tough new zero tolerance policy to be implemented at the carrier's brand new Terminal 5 at Heathrow Airport. Once the terminal is opened in three months' time, passengers will be expected to be in the queue for security checks at least 35 minutes before take off.
The Guardian
BETS INNOVATOR PLANS FLOAT AS CORAL SIGNS UP WITH TURF TV
Hoping to raise 3.2 million pounds, the Wiltshire-based Turftrax is planning to float on Aim in the New Year. The company has used the data it collects during races to create a product that it claims will make possible the provision of fixed odds "in-running" betting, with dynamically changing prices. The development comes as betting group Coral announced earlier this week that it was signing up to the betting shop racing service Turf TV, which is backed by 31 racecourses. Owned by Amalgamated Racing, Turf TV was founded earlier in 2007 to take on the monopoly of the betting shops controlled Satellite Information Service.
PRICES FEAR DELAYS HOUSE BUILDER'S FLOTATION
As a result of fears over house prices and global financial markets, Scottish house builder Tulloch Homes has opted to postpone its flotation on London's Aim. With a view of reaching a turnover target of 160 million pounds in 2008, the company will now concentrate on organic growth and acquisitions. David Sutherland, chairman and chief executive, stated the company is "looking at a number of acquisition opportunities at present and with the impending capital gains tax changes we expect these to increase".
BAE ACQUIRES AMERICAN ARMY SUPPORT FIRM
BAE Systems (BAES.L) has completed a deal to acquire the U.S. "warfighter solutions" group MTC for 220 million pounds. MTC offers maintenance and support services to the armed forces and intelligence agencies of the United States. Upon receiving regulatory clearance and MTC shareholder approval, BAE plans to integrate the acquisition into its Virginia-based Customer Solutions group. The purchase is expected to be concluded in the first half of 2008.
Prepared for Reuters by Durrants
