PRESS DIGEST - Financial Times - Nov 29

The Financial Times

SLOW TAKE-UP OF ISLAMIC LOANS

Uptake of Islamic loans has been slower than anticipated, with many Muslims unaware or suspicious of the products on offer to them. The Financial Services Authority published a document on Islamic finance in the UK, the market for which has grown to just 500 million pounds in four years. Ali Ravalia, a member of the FSA's capital markets team, said: "The potential is there for this market to grow. Originally, it was thought that this market could take off very quickly. It hasn't, but it has the potential to do so."

TRAIN FARES SET FOR SERIES OF INCREASES

Rail passengers are to be stretched even further after the Association of Train Operating Companies announced regulated fares are to increase by an average 4.8 percent, while other fares are to rise by an average of 5.4 percent. The increases, effective January 2, are part of the government's strategy of transferring rail passenger services costs from taxpayers to travellers. Rail passenger group Passenger Focus' chief executive, Anthony Smith, said: "(Passengers) will rightly expect a better service for this. Many commuters will have to fork out hundreds of extra pounds for their next annual season ticket."

DSG'S WHITE WOE HINTS AT CONSUMER DOWNTURN

DSG International (DSGI.L) reported group pre-tax profits for the 24 weeks to October 13 down 1.3 percent to 51.4 million pounds, on sales up by eight percent to 3.4 billion pounds, with underlying pre-tax profits down by 25 percent. The group saw sales of so-called "white goods", including ovens and refrigerators, decline. Finance director Kevin O'Byrne said this market had "seen in the last few months single-digit negatives". Oriel Securities retail analyst Eithne O'Leary said: "The outlook here is poor. Not only is the UK consumer heading underground at some pace, but DSGI has found its share of banana skins to step on."

WOLSELEY TO SLASH MORE U.S. JOBS

Wolseley (WOS.L) lost nine pence to 632 pence after announcing group pre-tax profits that declined by nearly 15 percent in the three months to the end of October, on revenues that were five percent improved. The group is to axe 3,000 jobs in the United States by the end of January, adding to the 6,000 it shed last year, Chief executive Chip Hornsby said: "Whether we go into recession or not, these are very challenging times. What we are looking for is when we will hit the bottom and how long we are going to stay there."

BIFFA TO SAY FAREWELL TO BETTINGTON

Waste management firm Biffa BIFF.L saw revenues increase by 4.9 percent to 395 million pounds in the half-year to September 28, though chief executive Martin Bettington is to step down as chief executive. Bettington will remain at the group until March to help his successor settle in, with observers saying his exit increases the likelihood that the business could be acquired. Bettington, who plans to pursue "new challenges", said it was "highly unlikely" he would involve himself in any private equity offer for the firm.

SHELL LOOKS TO SELL TWO NIGERIAN OIL LICENCES

Royal Dutch Shell (RDSa.L) is holding private talks pertaining to the sale of its stake in two offshore oil licences in Nigeria, operated by Italian multinational Eni. Sources familiar with the process say China's leading offshore producer CNOOC (0883.HK) and African Petroleum APET.LG are weighing up offers for the assets. CNOOC's interest forms part of a wider move by China to acquire oil assets in Africa. Nigerian oil ministry officials said they were unaware of the discussions and that the country's new president, Umaru Yar'Adua, would have to sanction any deal.

BREWIN DOLPHIN'S STAR PERFORMANCE

UK investment bank and wealth manager Brewin Dolphin (BRW.L) saw its pre-tax profit come in at 41.7 million pounds, up from 32.1 million pounds, in the year to September 30. Income was 209.3 million pounds, up from 173.6 million pounds. Earnings-per-share increased by 30.2 percent to 13.8 pence. Chairman Jamie Matheson said the new financial year had begun on an "encouraging" note. "Volatility hasn't made a material difference to us as many of our clients are conservative and long-term -- we've taken some profits on behalf of clients, but there has been no radical sell-off."

PRUDENTIAL PUTS BACK DECISION ON NINE BILLION POUNDS SURPLUS

Prudential (PRU.L) will not make a decision about whether to free up nine billion pounds' worth of surplus capital in its life fund for another six months -- a decision that could potentially delay policyholders' windfalls. In addition, the firm will transfer 3,000 jobs to Capita to save 60 million pounds a year in its UK life business, with Nick Prettejohn, chief executive of the unit, refusing to rule out job losses. He said: "This is a considerably more attractive option in terms of (employees') futures than if we had gone down the internal route, when we undoubtedly would have to have made redundancies."

END IN SIGHT FOR COMPASS RESTRUCTURING

Compass (CPG.L) rose by 27 pence to 316.25 pence after announcing flat group revenues of 10.3 billion pounds, while pre-tax profits increased by 35 percent to 436 million pounds. The group said the restructuring phase of its recovery was complete. Chief executive Richard Cousins said: "All of the structural elements of the restructuring are in place 12 months into our recovery." He added that while the firm would be hurt by a massive economic downturn, it was optimistic a modest one would demonstrate "that our business is sustainable and predictable with huge downside protection from the split of businesses we have, especially in the U.S."

HDD DEMAND LIFTS JOHNSON MATTHEY PROFITS

Increased demand for heavy-duty diesel catalysts and particulate filters helped Johnson Matthey's (JMAT.L) pre-tax profits rise by 15 percent to over 120 million pounds in the first-half. Its largest manufacturing division, Environmental Technologies, saw sales grow by 38 percent to 541 million pounds. Operating profit came in 13 percent higher at 65.2 million pounds, while the group's precious metals division saw turnover increase by 18 percent to 2.2 billion pounds. The shares added 26 pence to 16.86 pounds.

Prepared for Reuters by Durrants