PRESS DIGEST - Financial Times - June 27

The Financial Times

BOOST FOR BUILDERS TO REACH HOUSING TARGETS

Caroline Flint, the government's housing minister, is to unveil plans next week to raise upfront payments to builders working for public sector landlords. Under the current system, the Housing Corporation typically pays half up front and the remainder on completion of the job. The proposal is set to improve cash flow for housebuilders, who depend in large part on buyers who only put down small deposits before building starts. Flint has also indicated the government is likely to further increase its budget for buying properties from builders to rent out as social homes.

BUSINESSES DISILLUSIONED AFTER BROWN'S FIRST YEAR IN POWER

A new survey of more than 9,000 small business owners by the Federation of Small Businesses has found 96 percent were disappointed and disillusioned with Gordon Brown's first year in power. The Federation's Stephen Alambritis highlighted "Number 10's love affair with big business" and accused the government of favouring the big petrol companies and supermarkets. Richard Lambert, director-general of the CBI, has also criticised Brown for his perceived "mistakes of judgment, both on corporate and personal taxes".

FALL IN BUSINESS INVESTMENT

A new report from the Office for National Statistics reveals business investment fell by 1.8 percent in the first quarter of 2008. The figure was weaker than the initial estimate of a 1.4 percent drop, and reflects a reduction in capital spending from manufacturers and construction companies. The survey also revised up figures for previous months, increasing the annual growth to 4.5 percent, though the data is prone to revision. Simon Hayes, economist at Barclays Capital, said the publication was unlikely to affect the overall rate of growth in gross domestic product.

REGENT INNS CHAIRMAN IS TO GO IN SHAKE-UP

Regent Inns REGI.L has issued yet another profit warning and revealed that executive chairman Bob Ivell would step down as part of a management shake-up. Ivell, who has been running the troubled bar and restaurant operator for the past four years, defended his record and said he had not been asked to resign. Regent also revealed the takeover talks that it has been in since January had ceased because potential bidders could not find the necessary funding. The company has lost 96 percent of its share price value since April and said that profits before exceptional items for its financial year, which ends on Saturday, would be minimal following a fall in like-for-like sales.

DSG BESET BY PROBLEMS ABROAD

DSG International (DSGI.L), owner of Currys and PC World, announced on Thursday a 192.8 million pounds loss in the year to May 3, compared with a profit of 114.1 million pounds from the year before, after a 389.2 million pounds impairment change largely related to its division in Italy. Underlying pre-tax profits plummeted to 205.3 million pounds from 295.1 million pounds the previous year. Chief executive John Browett, who said that stores would remain the main source for sales in the near future, commented on the challenge arising from the entrance of Best Buy, the U.S. electronic retailer, in the UK market next year. He said: "In practice, I'm not overly concerned in the short run because it's going to take them some time."

ON THE DEFENSIVE -- DAY OF THE JACKAL

Babcock International (BAB.L) is to produce a further 72 Jackal armoured defence vehicles after a new 20 million pounds order by the Ministry of Defence. Babcock has already manufactured 100 out of an order of 130 vehicles, with a production pace of one a day. The new Jackals are designed to replace the British Army's Snatch Land Rovers. The Snatch was criticised last week by Conservative MP Patrick Mercer who said that it had become a vehicle "that packages our troops as compact targets". Shares in Babcock, which have risen by almost 10 percent throughout the year, edged down 12.50 pence at 595 pence on Thursday.

BIOTECH CHIEF QUITS ASTRAZENECA ARM

David Mott, chief executive of MedImmune, the U.S. group that AstraZeneca (AZN.L) bought last year for almost 16 billion dollars, will step down at the end of July. The unexpected move follows the publication of a note issued by HSBC on Thursday which downgraded the drugs giant to "underweight" amid growing concerns that intense generic competition could harm 68 percent of the company's revenues in 2010. The Anglo-Swedish pharmaceutical group said: "After 16 years of helping to build MedImmune into one of the world's largest biotech companies, Dave has decided to spend the summer with family and friends, and identify what challenges and opportunities he would like to tackle next in his career." Tony Zook, head of AstraZeneca's North American business and executive vice-president of global marketing, will be Mott's successor.

DS SMITH FALLS DESPITE PROFIT RISE

Concerns over slowing market growth dragged DS Smith's (SMDS.L) share price down despite an improved revenues and profits performance. The packaging and stationery specialist increased revenues for the year to April 30 by 11 percent to 1.97 billion pounds compared to 1.77 billion pounds from the year before. Pre-tax profits rose to 109 million pounds against 78.5 million pounds a year earlier. The total dividend of the year was up at 8.8 pence from 8.6 pence. But caution over dwindling growth drove shares down 11 pence at 114 pence, a dive of more than 50 percent over the year.

COURT CLEARS EXPRO SALE TO CANDOVER-LED GROUP

The High Court has approved the 1.8 billion pounds sale of Expro International EXR.L to a consortium led by private equity group Candover (CDI.L), rejecting calls for a delay to the proceedings to allow Halliburton (HAL.N) to re-enter the bidding process. U.S. hedge funds Mason Capital and Sandell Asset Management, which together own about 15 percent of Expro stock, wanted a further postponement of 14 days but judge Mr Justice David Richards sanctioned the scheme of arrangement. The U.S, oil giant, which issued a higher, 16.25 pounds-a-share bid for Expro less than an hour before last Friday's deadline, is banned from launching a renewed offer since submitting a statement that it has formally withdrawn from the process.

Prepared for Reuters by Durrants.