PRESS DIGEST - British business - Nov 15

The Times

NOT EVEN HANDBAGS COULD CARRY THE WEEK AT JOHN LEWIS

Sales at department store group John Lewis fell 9.7 percent to 57.78 million pounds in the week to November 8, despite earlier signs of recovery in high street trading. The company said trading was held back by "economic uncertainty and grim weather". The drop in sales follows a more upbeat set of figures in the previous week, when sales eased just 1.3 percent lower, compared to 9.8 percent for the week ending October 25. Nat Wakely, director of retail operations, said the group hoped that the recent cut in interest rates would help to revive consumer confidence and looked ahead to the Christmas period.

RICHER SEAM AT PETER HAMBRO

Peter Hambro Mining recovered slightly from a three-day fall after it said that a recent reserves report had been misinterpreted by HSBC (HSBA.L) analyst Victor Flores. Flores said on Tuesday that the report revealed a serious depletion of gold reserves at its main active mine that could affect cashflow and obstruct the funding of its untapped mine. The shares had plummeted from 310 pence to 180 pence in two days, but added 13.5 pence to close at 193 pence after the company stated it would be talking to the analyst regarding a "potential misunderstanding" of the report.

CENTAUR MEDIA

Trade magazine publisher Centaur Media has suffered a 16 percent drop in group revenues for the four months to the end of October. The fall also affected margins in the period. The group, which publishes 'Money Marketing', said it would keep costs under review.

The Daily Telegraph

CENTRICA TO REVIEW WIND FARM FIGURES

Centrica (CNA.L) has stated it is "revisiting the economics" of its wind farm projects amid a sharp rise in costs. Any indication that the company will delay or even abandon the projects would upset the government's plans to meet its targets on the reduction of carbon emissions. The company, which has been warning about the rising cost of labour, materials and shipping, will need to make a decision soon on costs of a proposed 250 megawatt Lincs wind farm and is also applying for permission to build two more farms. A spokesman said the company is seeking to reduce input costs before proceeding with the projects.

GKN WARNING ON CAR MARKET

GKN (GKN.L) has warned that there was a "rapid and material decline in conditions" in its car markets. The statement follows a sharp fall in business over the past week with production in November and December set to be around 20 percent lower than earlier expectations. The group, which issued a profits warning in October, said that activity levels would be 40 percent lower than in the first half.

KENT RESIGNS AS B&B CHAIRMAN

Rod Kent, chairman of Bradford & Bingley BB.L, has handed in his resignation and will not receive any severance package from the bank. Deputy chairman Nick Cosh and non-executives Ian Cheshire and Steve Webster have also quit without any payoff. Richard Pym, chief executive, will assume the role of executive chairman and continue to lead run-off of the bank. A spokesman said the moves were part of post-nationalisation changes.

The Independent

Comet, the electricals chain, has had its credit insurance scaled back in a further sign of the effect of the consumer recession on the retail sector. Credit insurer Coface said on Friday it had reduced the insurance cover it provides to some of Comet's suppliers this month. The move reveals the level of concern among some credit insurers about the possibility of large retailers struggling to pay for goods and services received. Comet continues to trade with the suppliers insured by Coface and is unaffected by the reduction. A spokeswoman said that Comet had not been informed of any changes to its suppliers insurance, adding: "Our cash position remains strong".

ETHEL AUSTIN REVIVED BY NEW CREDIT DEAL

Ethel Austin, the fashion chain that came back from administration earlier this year under new ownership, secured a new credit facility with its banks on Friday. The agreement will allow it to trade directly with overseas suppliers. David Thompson, a director, said: "We have no debt, cash in the bank and we acquired the retailer with 35 million pounds of retail stock, which we used to generate working capital."

DYSON MAY BREACH BANKING COVENANTS

Shares in Dyson lost 39 percent of their value on Friday, ending the day at 19.5 pence after the group warned it could breach its banking covenants next year if the economic downturn intensifies. The group, which develops materials for the automotive industry, has been hit by weakening demand from the likes of Ford, GM and BMW. Dyson expects second-half volumes to be around "20 to 30 percent lower".

The Guardian

DIAGEO TALKS PAVE WAY FOR MORE JOHNNIE WALKER IN INDIA

Drinks firm Diageo (DGE.L) has confirmed it is in talks with Vijay Mallya, the Indian owner of Kingfisher beer, regarding a partnership deal that it hopes will allow it to sell its whisky brands on the subcontinent. A deal is likely to see Diageo acquiring what the Indian media says will be close to a 15 percent stake in Mallya United Spirits. The talks are expected to put pressure on Diageo's existing Indian joint-venture partners Radico Khaitan. Diageo chief executive Paul Walsh has stressed that he regards India as a priority due to the potential market represented by its booming middle classes.

HEDGE FIRM RAB REDUCES FUNDS BY A THIRD

RAB has taken drastic action to weather the financial downturn by reducing the number of funds it runs and locking investors into others. The move, instigated by chief executive Stephen Couttie, will cut funds under management from 4.7 billion dollars at the start of September to two billion dollars by the end of the year. The group is abandoning its strategy of attracting retail investors and closing down its only fund that was linked to the collapsed Lehman Brothers. Couttie explained: "We have taken the necessary action to focus the business and reduce its scale of operations in the context of extremely difficult conditions".

LOGICA RAISES REVENUE BUT EXPECTS SLOWER GROWTH

Logica reported a seven percent rise in third quarter revenue on Friday, but added that growth in the final quarter would fall below expectations. The business services group reported revenues totalling 845 million pounds compared with 789 million pounds for the same period last year, which was adjusted for acquisitions and disposals. Finance director Seamus Keating said that although revenue growth had been good over the quarter, markets would get tougher, adding: "Next year we recognise European economies will face a downturn, but IT services will grow faster than GDP."

Prepared for Reuters by Durrants