PRESS DIGEST - British Business Press - May 14
The Times
COMPASS PLOTS PROFITABLE PATH BY CATERING TO ALL
Compass Group (CPG.L), the world's largest contract caterer, reported better-than-expected half-year results after winning new contracts and extending existing ones. The company, which employs more than 350,000 people worldwide, said that half-year pre-tax profits jumped by 38 percent to 387 million pounds. Most of the profits growth, 28 million pounds, came from doing more business with existing clients, while eight million pounds came from cuts in overheads. A further 14 million pounds came from new customers and five million pounds from acquisitions. The news, which was welcomed with enthusiasm by analysts, sent the shares up 20.25 pence to 353 pence.
ABBEY TO REVERSE TREND, LOOSEN CRITERIA FOR MOST POPULAR HOME LOANS
Abbey, Britain's second-largest mortgage lender, is set to loosen the criteria on its most popular home loans on Friday by reducing the minimum deposit required for its best fixed-rate deals from 40 percent to 30 percent. The move, which is seen as a significant boost to the mortgage market, came at a moment when the Bank of England said the recovery in the economy would be slow and protracted. Abbey, which is owned by Spanish group Santander (SAN.MC), is offering a two-year fixed rate at 3.65 percent on deals worth up to 70 percent of a property's value, with a charge of 995 pounds. James Carter, of broker Independent James, said the move is a sign that the lender believes that monthly house price drops are easing and homeowners should expect that other groups will have to follow soon.
DUST OFF YOUR PRINTER
Ryanair (RYA.I) customers will only be able to check in online after May 20, the low-budget carrier has announced. In order to do so, passengers will have to pay a compulsory charge of five pounds. This follows the airline's decision in March to drop airport check-in desks and shift to 100 percent web check-in. Passengers who are not able to print their boarding pass must check in online and pay a 40 pound fee at the airport for turning up without the printed pass.
TEMPUS:
FirstGroup (FGP.L) (buy on weakness)
Land Securities (LAND.L) (avoid)
VT Group (VTG.L) (buy)
