PRESS DIGEST - British business - Nov 17

Daily Telegraph

ALCHEMY TURNS BACK ON ANY NEW DEALS

Alchemy has no plans for new investments and is effectively being run down. Alchemy will make only bolt-on additions to existing portfolio companies and no further fund-raising will be sought in the foreseeable future. Observers believe the private equity firm will likely sell off assets and return cash to investors, just as optimism begins to return to the private equity sector. A source at Alchemy said it is currently in "pause-mode", with the decision being made by the management, rather than being forced by investors.

SVG HIGHLIGHTS BRIGHTER OUTLOOK FOR PRIVATE EQUITY

SVG Capital (SVI.L) has reported a more positive market for asset sales is being enjoyed by private equity firms. SVG's private equity assets, which account for 13 percent of its portfolio, were written up by 55 percent since June, increasing by 26.5 million pounds to 75 million pounds. SVG said in its interim management statement: "We believe that the prospects for realisation activity, particularly for the more mature and defensive investments, are improving."

FORMER OWNERS FACE THRESHERS LIABILITY

Punch Taverns (PUB.L) and Whitbread (WTB.L) could be forced to take over Threshers stores following the collapse of First Quench Retailing -- the group which owned the wine retailer. Punch and Whitbread previously owned First Quench, and although administrator KPMG has yet to quantify how many off licences could be forced into their ownership both companies said they believed the number would not be "material". KPMG is believed to have received numerous offers for small groups of stores, with a dozen bidders interested in acquiring a larger part of the group.

The Independent

LLOYDS TO RESCUE DEBT-LADEN ADMIRAL

Lloyds Banking Group (LLOY.L) is attempting to bring about a financial restructuring of the troubled pubs group Admiral Taverns, which may include a 600 million pound debt-for-equity swap. Although such a deal will not give Lloyds a majority stake in Admiral, it would effectively give it ownership of the company. In order to enable Admiral to continue trading, Lloyds is understood to be considering a pre-pack administration deal which could be unveiled this week.

PERSIMMON EXPECTS "HEALTHY" ORDER BOOK

Despite warning about the effect that high unemployment and a lack of mortgage availability will have on the property market, the housebuilder Persimmon (PSN.L) has reported it has extended its good performance over the summer into the autumn. With the average price of homes reserved since July 1 2009 up six percent to 173,000 pounds, the company expects to retain a "healthy" order book into 2010. Net debt at the firm also fell from 960 million pounds to 399 million pounds during the year to the end of October.

130 STAFF LOSE JOBS AT MEALS-ON-WHEEL FIRM

The meals-on-wheels company Flowfood has collapsed with the loss of 130 jobs, after no buyer was willing to come forward for the Leeds-based business. Flowfood worked with seven councils -- Gateshead, Salford, Staffordshire, Milton Keynes, Oxford, St. Helens and East Riding -- to provide food for vulnerable people. Its demise has meant councils have had to fall back on emergency supplies of ready meals. Staffordshire and Milton Keynes councils said they have managed to make alternative arrangements with another supplier.

The Guardian

SLASHING PUBLIC SPENDING WILL LEAD TO A "ZOMBIE ECONOMY"

The general secretary of the TUC, Brendan Barber, has warned against cutting public spending too dramatically at the "Beyond Crisis" conference on how to revitalise the British economy. While allowing that the UK's national debt would have to be reduced in the long-term, Barber said premature action to cut the deficit could result in a slower recovery and a "lost decade" similar to that that experienced by Japan in the 1990s.

MINIDRESSES GIVE A LIFT TO ASOS SALES

The online fashion retailer Asos (ASOS.L) has reported an impressive 112 percent rise in its overseas sales during the six months to September 30 2009, with sales growth in the UK at a relatively mediocre 33 percent. Total first-half profits at the group amounted to 4.4 million pounds, a nine percent rise on the previous year which exceeded market expectations. The chief executive Nick Robertson said he was "cautiously optimistic" about the second half of the year, but warned that demand in Britain for its products is trailing off.

DRINKERS' NEW WORLD SYMPATHY LIFTS PROFITS AT MAJESTIC

The wine warehouse chain Majestic Wine (MJW.L) has reported a nine percent increase in first-half profits to 6.1 million pounds, with like-for-like sales rising 5.4 percent in the 26 weeks to September 28. The company noted that drinkers have developed a tendency to buy cheaper wines from North America, and Prosecco instead of champagne. Shares in Majestic rose 3.7 percent, and finished the day at 254 pence.

The Times

J SAINSBURY DISPUTES REPORT THAT IT IS LOSING MARKET SHARE

J Sainsbury (SBRY.L) has reacted against a report that it is losing customers to its rivals, saying that it had gained share during the 12 weeks to November 1. The normally confidential switching data report was published by The Times on Monday, and showed customers moving to Tesco (TSCO.L), Waitrose and Aldi, totalling a loss of about 8.5 million pounds to Sainsbury. TNS Worldpanel, the company responsible for the report, says market share data like this is subject to ebbs and flows and is strategically unimportant.

BA TURNS UP TEMPERATURE ON CABIN CREW

British Airways (BAY.L) has written a letter to the joint secretaries of Unite, saying it will not tolerate union members promoting strike action at work and would consider pressing criminal charges against anyone found putting stickers on the company's property. It is another sign of the fraught relationship between BA bosses and its workers in advance of the upcoming strike ballot. The company is attempting to cut 4,000 full-time jobs by reducing the number of cabin crew on its flights, a move met with resistance from the union.

Prepared for Reuters by Durrants