PRESS DIGEST - British business - Nov 11

The Times

LLOYDS ANNOUNCES ANOTHER 5,000 JOBS WILL GO

Lloyds Banking Group (LLOY.L) announced it is to axe a further 5,000 jobs in its administration, insurance and mortgage divisions. This will bring the total number of jobs cut to 12,500 since the takeover of HBOS in January. Lloyds said it is targeting synergies of at least 1.5 billion pounds ($2.50 billion) from the merger and has forecast that by the end of the year it will have achieved annualised cost-savings of 750 million pounds. Unite, the union, said the cuts demonstrated "the depth of corporate arrogance within this taxpayer supported bank".

HSBC AND BARCLAYS SUGGEST THE 'BIGGEST JOLT HAS PASSED'

Britain's biggest banks, HSBC (HSBA.L) and Barclays (BARC.L), revealed notable improvements in underlying profits on Tuesday. There is also evidence that the rise in personal and commercial defaults is slowing. Michael Geoghegan, HSBC's chief executive, said that "the biggest jolt has now passed" but expressed concerns about rising unemployment levels in the West. Barclays, meanwhile, now expects bad debts to peak a few months earlier than previously thought. Its statutory pre-tax profit for the first three quarters of 2009 was 4.5 billion pounds, 19 percent lower than last year. HSBC does not disclose profit figures when it announces results.

DES AND DAVE CHECK BACK INTO CITY WITH BOUTIQUE HOTEL

D&D London, the company formerly known as Conran Restaurants, is to return to the hotel business by developing a small chain of boutique hotels. Initially D&D is teaming up with property developer Frogmore to create a luxury 80-room hotel in the Moorgate area of London. D&D sold its 50 percent stake in the Great Western Hotel in 2006, vowing to return to the market as soon as possible and experts estimate the cost of the new Moorgate development will be in the region of 50 million pounds.

The Daily Telegraph

YELL'S 660 MILLION POUND RIGHTS ISSUE HAS 85 MILLION POUND FEE

Yell (YELL.L), which has just raised 660 million pounds in a rights issue, will have to pay bankers 85 million pounds in fees. Yell owes lenders 60 million pounds after they accepted the company's request to extend 3.8 billion pounds of debts until 2014. Meanwhile, the four banks which arranged and underwrote the rights issue will collect 25 million pounds. Adviser Nigel Himsworth of NM Rothschild said the fee was lower than Yell had expected to pay. Yell recently revealed a 66 per cent fall in first-half pre-tax profits, to 38.7 million pounds.

NATIONAL EXPRESS PREPARES HEAVILY DISCOUNTED 370 MILLION POUND.

National Express(NEX.L) is expected to launch a discounted 370 million pounds rights issue on Wednesday. The cash call is likely to come at a discount of around 40 percent to the theoretical ex-rights price, with the bus and rail operator currently valued at 517 million pounds. The Cosmen family, the majority shareholder in National Express, has not said whether or not it will back the issue. National Express is due to relinquish its East Coast rail franchise on Friday.

DEFENCE WORK BOOSTS BABCOCK RESULTS

Babcock(BAB.L), the engineering group, has revealed better-than-expected first-half results. A drop in sales in its rail division has been offset by new defence contracts and good performance in its marine business, where operating profit rose 29 percent to 54.3 million pounds. However, the rail division's revenue dropped by a quarter in the first half to 84.8 million pounds. Peter Rogers, Babcock's chief executive, has expressed concerns about the division's performance and will decide by the end of this year whether it should be sold.

The Independent

THRESHERS' FRANCHISEES ARE 'DETERMINED TO RESIST' TRANSFER TO NEW FIRST QUENCH OWNER

An estimated 55 out 65 franchisees at Threshers have told KPMG, the administrators of First Quench Retailing, that they will resist plans to force them into a sale to a purchaser of the business. Franchisees believe that the failure by FQR to deliver stock to stores for long periods this year constituted a breach of the franchise agreement, and if KPMG pushes ahead with an opposed sale, this breach may be used to leave them free to trade as independent businesses. Franchises account for 30 million pounds, or 10 percent, of FQR's sales.

VODAFONE TO DOUBLE ITS COST CUTTING TARGET TO TWO BILLION POUNDS

The economic downturn and strong competition from its rivals have forced Vodafone (VOD.L) to prepare to double its cost-cutting drive to two billion pounds. The group said job cuts are inevitable and 500 million pounds of the savings would be used to fund potential acquisitions, "depending on the economic situation". The group also confirmed that its guidance for the whole year would see operating profit at the "upper end" of the 11 billion - 11.8 billion pounds range. Chief Executive Vittorio Colao said cuts will focus on technology, sourcing and infrastructure initiatives and overheads.

BSM DIRECTORS TAKE THE WHEEL FOR 10 MILLION POUNDS

The British School of Motoring's joint managing directors have announced a 10 million pound deal to take control of the company. It is the second time in less than a year that the company has changed hands. Abu-Haris Shafi and Nikolai Kesting led the takeover and outlined proposals to hire a further 3,000 driving instructors and open additional centres within the next two years. Nine months ago Aviva(AV.L) sold BSM to private equity group Arques Industries. BSM has a 10 percent share of Britain's driving school market.

The Guardian

EVERY LIDL HELPS - TESCO BENEFITS FROM SLOWDOWN AT DISCOUNTERS

Doubling the points accrued to its Clubcard loyalty scheme helped Tesco (TSCO.L) increase its share of the groceries market for the first time in two years. Data from market research firm TNS shows the supermarket group's market share rose to 30.7 percent in the three months to November -- up 0.1 per cent on the same period last year. TNS's research also suggests that the recent popularity enjoyed by discount retailers is starting to wane -- with the market share of Lidl and Aldi down 5.5 and 5.8 per cent respectively.

IMPERIAL TOBACCO APPOINTS FTSE'S FIFTH FEMALE CHIEF

Imperial Tobacco(IMT.L) has appointed Alison Cooper as its new chief executive, bringing the number of female chief executives in the FTSE 100 to five. Cooper, who is currently the group's chief operating officer, will take up the role in May next year -- succeeding Gareth Davis. According to chairman Ian Napier, Cooper's appointment followed "a rigorous review of potential candidates, both internally and externally". Imperial reported a 40 percent increase in pre-tax profits to 2.23 billion pounds.

NORTHERN TO CUT 220 JOBS AT FOX'S BISCUIT FACTORIES

Northern Foods (NFDS.L) expects to cut around 220 staff at its Fox's Biscuit factories following the introduction of automated technology. The group, which is to invest 26.5 million pounds in the Fox brand over the next 18 months, reported a pre-tax profit of 12.9 million pounds for the six months to September 26 and chief executive Stefan Barden said that sales and profit expectations for the financial year remained unchanged, despite market conditions remaining competitive.

Prepared for Reuters by Durrants ($1=.6002 Pounds)