PRESS DIGEST - British business - June 2

The Times

LOOKERS AGREES 210 MILLION POUND REFINANCING

Lookers has agreed a refinancing with its lenders and reported that first-quarter trading was ahead of forecasts. The 210 million pound ($344.1 million) refinancing of the car dealer, which is based in the northwest, will lower the company's debt by about 30 million pounds. However, the terms are more expensive than its previous arrangements. Lookers has cut 700 of its 6,000 positions and will not pay a dividend until June 2010.

ASDA STAFF SPLASH OUT, FROM ELVIS IN VEGAS TO A TRACTOR

More than 16,500 staff at Asda (WMT.N) look set to benefit from a 43 million pound payout under the supermarket's sharesave scheme, with staff receiving a 150 percent return on their monthly savings. Under the scheme, staff saved between five pounds and 250 pounds per month, receiving a tax-free bonus at the end of the period, with which they could buy shares in Wal-Mart at a discounted 20.80 pounds each. Staff who saved the maximum of 250 pounds per month for the past three years will collect a bumper 13,800 pounds on the 9,000 pounds they have saved.

WPP REBELS FACE DEFEAT ON CHIEF'S 60 MILLION POUND BONUS

Shareholders in WPP WPP.L are expected to approve a 60 million pound incentive package for Sir Martin Sorrell, its chief executive, despite a quarter of investors looking set to rebel. The Association of British Insurers had given the WPP scheme a "red top" warning because of the size of the potential payout and the way it operates. However, WPP believes the LEAP scheme is fair because it requires that executives set aside shares, and that the conditions for meeting maximum payout are hard to achieve.

TEMPUS

Chloride Group [Hold]

Phoenix IT [Buy on weakness]

Hansteen [Speculative buy]

Daily Telegraph

ARGOS CHIEFS MISS BONUSES

According to Home Retail Group's(HOME.L) annual report, the company made a pre-tax loss of 394.2 million pounds after exceptional items for the year to February 28, compared with a profit of 426 million pounds for the previous year. Like-for-like sales at the group's Argos chain fell by 4.8 percent, while sales at the group's Homebase stores also declined by 10.2 percent for the year. Home Retail's chief executive, Terry Duddy, missed out on performance related bonuses which saw his total salary, bonus and benefits package greatly reduced, from 1.77 million pounds the previous year to 858,000 pounds.

LOOKERS REFINANCES AS PROFITS REVERSE

The car dealership chain Lookers has withheld its final dividend and announced that it has agreed a 210 million pound refinancing deal with its lenders. The car retailer said that it made a pre-tax profit of 14 million pounds for the year to December 31, a fall of 43 per cent. Lookers increased its overall revenue for the year from 1.68 billion pounds the previous year to 1.78 billion pounds by growing its after-care division and its parts distribution business. With regard to the dividend cut, Lookers said, "The board's priority is to focus on debt reduction, following which it will return to a progressive dividend policy."

CEVIAN TAKES STAKE IN OLD MUTUAL

The activist investor Cevian Capital has agreed to take a 4.1 per cent stake in the insurer Old Mutual(OML.L). In a statement Cevian said, "The market has failed to recognise the value of the company's stable core businesses, which has performed well even in this extreme macro environment". The investor added that it supported the strategy of Old Mutual chief executive, Julian Roberts, and the company's board. Old Mutual announced full year profits of 595 million pounds in March - down from 1.7 billion pounds the year before. Roberts told investors that the group would be looking to review its global operations.

QUESTOR

ETFS Agriculture [Buy]

Centamin Egypt [Hold]

Randgold Resources [Buy]

The Independent

HOME RETAIL HALVES CHIEF EXEC'S PAY

Home Retail Group(HOME.L) chief executive Terry Duddy saw his pay fall by more than half for the year to February 28 2009, receiving 858,000 pounds, including 40,000 pounds of taxable benefits. In the previous year Duddy had taken home 1.77 million pounds, including a 920,000 bonus. The decision by Home Retail not to award Duddy a bonus for 2008/09 followed a 651.2 million pound writedown on the value of the group's Homebase retail chain. Home Retail made a full-year pre-tax loss of 394.2 million pounds for the 2008/09 financial year.

NATIONWIDE OVERDRAFT RATES GO UP BY ONE PERCENT

Nationwide Building Society became the second lender within a week to increase overdraft rates when it increased interest rates on its authorised and unauthorised overdrafts from 17.9 percent to 18.9 percent on Monday. The society said that the rate was still a better deal than could be found on average at a high street bank. Increases in costs and the number of consumers defaulting on debts led Barclays(BARC.L) to raise overdraft rates by up to four per cent last week.