PRESS DIGEST - British business - Dec 18

The Times

FILTON AIRCRAFT FACTORY BUYER HAS PLANS TO CUT 1,000 JOBS

It has emerged Spirit Aerosystems (SPR.N), the probable American buyer of Filton, the Bristol aircraft company owned by Airbus (EAD.PA), may want to reduce the factory's workforce by 1,000. Airbus, which inherited the unit that designs and builds wings from British Aerospace, announced at the start of the year it was planning to sell or shut a total of eight facilities in Europe under a strategy that it called Power 8.

SPORTS DIRECT SCORES OWN GOAL

Alan Jackson, non-executive chairman of The Restaurant Group who was widely touted as likely to become the new deputy chairman of Sports Direct (SPD.L), turned down the job only hours before Mike Ashley, founder of the retail group, was to announce his appointment to the City. The move was another setback for Ashley after a dismal year. Shares in Sports Direct, which have plunged 70 percent since it floated in February, closed at a low of 89.75 pence, down five percent.

BORROWERS REJECTED BY BANKS TURN TO PROVIDENT FINANCIAL

Provident Financial (PFG.L) has said customer numbers during the second half to the end of November rose 3.8 percent, compared with the same period last year. The doorstep lender said that though direct mail advertising had helped to increase its customer base, it had been "assisted by more favourable market conditions as mainstream lenders tighten their lending criteria and retreat from the non-standard consumer credit market".

The Daily Telegraph

NSB RETAIL ACCEPTS 160 MILLION POUND US OFFER

NSB Retail NSB.L, the London-listed maker of software for shoe and clothing shops, has accepted a 160 million pound cash offer from Epicor (EPIC.O), the U.S. software company. Epicor, which is paying 38 pence per share for NSB, expects to fund the deal from its existing cash pool, plus some debt. The board of NSB has recommended shareholders approve the deal at meetings expected to be held on January 16.

INFORMA REVENUES UP ON BACK OF CITYSCAPE

Informa (INF.L), the business information publisher and conference organiser which runs the world's largest property show, said its revenue would increase by nine percent during the second half of the year. Chief executive David Gilbertson said the company's strategy was to re-balance, with broader scope between high growth and more defensive business. Gilbertson said Informa's major project for 2008 would be digitising decades of printed academic journals so subscribers can search the contents online.

The Guardian

NORWICH UNION FINED AFTER FRAUDSTERS STEAL 3.3 MILLION POUNDS

Norwich Union was fined 1.26 million pounds on Monday by the Financial Services Authority for failing to protect customers' confidential details, which led to fraudsters cashing in policies worth 3.3 million pounds. The FSA said weaknesses in Norwich Union Life's call centre security checks potentially exposed some seven million customers to the risk of ID theft and financial loss. The company cooperated fully with the FSA and the fraudsters were later caught.

RENTAL DEMAND THROUGH THE FLOOR

The Royal Institution of Chartered Surveyors said the demand for flats to rent had fallen sharply over the past three months. But it said rents continued to rise, with 31 percent more surveyors seeing a rise than a fall.

ITV DECIDES NOT TO TAKE UP RIGHTS IN SMG'S 95 MILLION POUND FUNDRAISING

ITV (ITV.L), the biggest shareholder in SMG SCSMG.L, has decided not to take up its rights in the Scottish broadcaster, which is trying to raise more than 95 million pounds through a rights issue. ITV, which owns just under 17 percent of SMG, would have needed to lay out about 15 million pounds to take up its rights.

The Independent

B&Q SELLS TAIWAN VENTURE STAKE

Kingfisher (KGF.L), Europe's biggest home improvement retailer, has agreed to sell its stake in its B&Q Taiwan joint venture to its partner Test Rite International (2908.TW) for 106.5 million dollars (52.8 million pounds) in cash. Kingfisher said it would use the proceeds to reduce its debt. The Taiwan joint venture was Kingfisher's first entry into Asia in 1996.

ETHANOL FIRM HIT BY COST OVER-RUNS

Shares in Renova, the Aim-listed ethanol producer, were suspended on Monday pending the company's clarification of its financial position. Shares in the company, which had identified cost over-runs at an ethanol facility being built in Idaho, were down 14 percent at 33.5 pence when suspended, valuing the firm at 11 million pounds.

HAMPTONS PROVIDES FURTHER SIGN OF BUY-TO-LET WEAKNESS

Hamptons, the estate agent, provided further evidence of signs of weakness in the once frenzied buy-to-let market as it showed a sharp decline in the sector's share of purchase of mortgages. In November mortgages by landlords accounted for just 18.4 percent of Hampton's mortgage sales compared with 43.8 percent in October. Managing director of Hamptons Mortgages Jonathan Cornell said that while amateur investors might be sitting on their hands, professional landlords would stay in the market and could take advantage of bargains as developers try to shift new homes before the end of the year.

Prepared for Reuters by Durrants.