PRESS DIGEST - British buisiness - Nov 28

The Times

PATIENTLINE HAS TALKS WITH BANKS AS CONDITION DETERIORATES

Hospital bedside phone operator Patientline PTL.L is in talks with its banks after revealing operating loss had trebled to 11.2 million pounds, while losses before tax doubled to 15.3 million pounds in the first half. Chairman Geoff White said: "If the company's borrowings can be consensually restructured to a sustainable level, allowing the business to address the price of incoming telephone calls, the company does have a future."

VIRGIN MEDIA'S STRATEGY CHIEF TO LEAVE AS PART OF BROADER RESTRUCTURING

Ernie Cormier, Virgin Media's (VMED.O) head of strategy, is set to leave the company in 2008 amid wider restructuring. Steve Stewart, the firm's head of customer care, will also leave at around the same time. Acting head Neil Berkett told staff Cormier had made his decision to leave "some time ago". The group declined to disclose details about any remuneration arrangements. The exits come as Berkett moves to demonstrate he is prepared to make changes to ensure the business fulfils its potential.

ITV, CHANNEL 4 AND BBC TO CREATE WEB CHANNEL

ITV (ITV.L), Channel 4 and the BBC [BBC.UL] are to join forces to launch a television-over-Internet service next year in an effort to create an iTunes-style model that will allow them to compete with YouTube. The commercial service will host advertising both within and around clips in a deal that will be structured to allow each partner to benefit from content being viewed. The service, currently called Kangaroo, will be launched in the middle of 2008 under a brand name that is still to be decided.

The Daily Telegraph

PENDRAGON GOES INTO A SKID

Shares in car dealership Pendragon (PDG.L) sank 35 percent lower on Tuesday after the company reduced its profits forecasts by 18 million pounds. The company blamed the precarious state of the U.S. economy, California's bush fires and the deflationary effect of the new car market on used car prices. Before the warning, analysts had been expecting profits of around 110 million pounds this year and 120 million pounds next year. Pendragon said it would keep its final dividend of two pence a share.

DEBT FREE DIRECT PROFITS DIVE

Consumer debt firm Debt Free Direct DFD.L has reported a four percent drop in first-half pre-tax profits to 5.2 million pounds. However, the company hopes problems in the credit markets and the threat of a slowdown in the UK economy will help the business in the near future. Shares in the company lost 10 pence to close at 210 pence despite its statement that the growing consumer debt problem would provide an "increasingly favourable market backdrop".

GERMAN STEEL FIRMS WANT RIO TAKEOVER BID BLOCKED

Dieter Ameling, president of the German Steel Federation, has urged Brussels to block BHP Billiton's (BLT.L) bid to takeover rival Rio Tinto (RIO.L). Ameling said that such a merger would increase the pressure on iron ore prices and would limit the steel industry's access to the raw material. The comments came as BHP Billiton prepared for its AGM amid expectations of a formal bid in excess of the three-for-one share swap offer. Ameling said such a deal would be "in breach of the public interest".

The Independent

OLIVANT SET TO SEIZE ON FRUSTRATION WITH VIRGIN IN NORTHERN ROCK BID

Olivant, Luqman Arnold's private equity vehicle, believes the increasing frustration among Northern Rock NRK.L shareholders over Virgin's [VA.UL] deal presents it with an opportunity to assemble a competing proposal to acquire the bank. Olivant met the Treasury, the Bank of England and the Financial Services Authority on Monday and is understood to have been assured access to Northern Rock's financial data. The Tripartite Authorities were said to have approved of the structure of Olivant's plans to inject equity into the beleaguered bank.

WS ATKINS PROFITS FROM METRONET

Engineering firm WS Atkins (ATKW.L) has said its Metronet work is now generating profit as it posted a 46 percent rise in first half profits to 42.8 million pounds. The company said its work with the failed Metronet consortium would continue at reduced levels. Atkins also revealed a share buy-back programme worth 100 million pounds and a 25 percent increase in its interim dividend. The company said its performance in the Middle East was strong.

BIG YELLOW POST 21 PERCENT PROFITS DROP

Big Yellow (BYG.L) has blamed market volatility and a slowdown in property price increases for its 21 percent reduction in interim profits. The storage company said first half pre-tax profits fell to 46.3 million pounds, mostly because of lower revaluation gains after a slowdown in the UK property market. The company has 45 stores and plans to open an additional 27.

The Guardian

CITY FEARS A&L MAY NEED BANK RESCUE

Comments from Standard & Poor's suggesting Alliance & Leicester ALLL.L could suffer from the credit freeze that led to the downfall of Northern Rock NRK.L have sparked fears in the City that the group may have to seek emergency funds from the Bank of England. S&P downgraded its outlook for the bank from stable to negative. Fears were raised recently when it became clear a share buy-back programme was halted 12 days ago without notice to shareholders. A spokesman from the bank pointed out S&P's outlook was for six months to two years and "reaffirms that our near term funding is secure".

BOSS QUITS ARMORGROUP AFTER IRAQ PROBLEMS

David Seaton, chief executive of ArmorGroup ARMO.L, is quitting after the group admitted profits will be lower than last year's 5.1 million pounds. Profitable contracts are harder to find in Iraq following the incident involving the American firm Blackwater and the death of 17 Iraqi civilians. ArmorGroup has already started winding down operations in the country, but shares in the group have already lost 40 percent of their value as investors took stock of its problems. The Iraqi government has said security companies would no longer be exempt from Iraqi law and the U.S. state department has vowed to impose stricter rules.

SUMMER FLOODS COST SEVERN TRENT 18 MILLION POUNDS

Severn Trent (SVT.L)> has blamed the summer's floods for an 18 million pound fall in interim operating pre-tax profits to 149.5 million pounds. Nevertheless, chief executive Tony Wray said the firm was on track to hit Ofwat's leakage and efficiency targets. The group said it had not calculated the full cost of the floods and was continuing to assess the long-term damage to over 150 waste water sites.

Prepared for Reuters by Durrants.