PRESS DIGEST - British business - Sept 23

The Guardian

FORMER OWNERS BUY BACK CAINS, SAVING 90 JOBS

The former owners of Cains Beer Company have bought the Liverpool brewer and nine pubs from administrators, saving 90 jobs. Cains went into administration after Sudarghara Dusanj, its chief executive, said a fall in sales of around 17 percent since last year, coupled with the credit crunch, "crippled the business". PricewaterhouseCoopers, the administrators, said there were 42 Cains pubs left to be sold.

CLAPHAM HOUSE UPBEAT ABOUT BURGER PROSPECTS

Clapham House (CPH.L) has revealed it remains "highly positive" about the medium-term prospects of its business. The restaurant group behind the Gourmet Burger Kitchen said marketing initiatives have been successful over the last quarter, especially at GBK. The company said it was now "well-positioned" after previously issuing a profits warning and halving its expansion programme last December.

YELL AXES DIVIDEND IN MOVE TO TACKLE 3.7 BILLION POUND DEBT MOUNTAIN

Yell (YELL.L) suspended its dividend on Monday amid concern that the directories publisher's 3.7 billion pound debt mountain was putting a severe strain on its finances. Yell said it was negotiating better terms with lenders while boosting efforts to cut the debt. Landsbanki analyst Charles Peacock believes it "is encouraging to see Yell addressing the balance sheet issue and arranging greater covenant flexibility". He estimates cancelling the dividend will free up roughly 70 million pounds a year.

The Independent

JACQUES VERT WOMENSWEAR SALES FALL SEVEN PERCENT

Sales at Jacques Vert (JQV.L), the womenswear retailer, dropped for the 21 weeks from April 27. The company revealed its like-for-like sales tumbled seven percent. However, it also said its gross margins were slightly ahead of the same period last year. Chairman Steve Bodger said: "The trading environment since the time of the preliminary announcement (on July 8) has worsened. However, we have already taken action to reduce the effects of the consumer downturn."

PAWNBROKER REPORTS 47 PERCENT RISE IN PROFIT

Albermarle & Bond has reported a significant increase in profits as consumers struggled with falling disposable income. The pawnbroker revealed a 47 percent increase in pre-tax profit to 10.3 million pounds. It also showed a 43 percent rise in revenue to reach 46.9 million pounds. The company's enviable results were attributed to its successful acquisition of pawnbroker Herbert Brown last year for 32 million pounds. A rise in the price of gold and the tightening of lending criteria among high street banks also played their part.

TI SELLS 250 MILLION POUND PENSION ASSETS TO PATERNOSTER

Paternoster, the pension buyout company, has acquired assets of 250 million pounds from the TI Group Pension Scheme, in an agreement which will see it provide regular payments into the scheme. The scheme is sponsored by Smith Group, the global technology company. The move follows a similar deal in April when TI's scheme unveiled a 250 million pound annuity transaction with Legal & General.

The Times

HORNBY EMAILS HBOS STAFF TO ADDRESS THEIR FEARS OF REDUNDANCY

In the wake of the rescue takeover of HBOS HBOS.L by Lloyds TSB (LLOY.L), the chief executive of HBOS, Andy Hornby, has been flooded by emails from anxious staff worried about their jobs. Hornby has told how he had been bombarded by messages as he wrote to employees saying that surrendering to Lloyds was the right course to take. He confirmed to them that there would be some job cuts, but the "majority of HBOS colleagues are likely to stay with the enlarged group, reflecting the sheer scale of the business".

CENTRICA STRIKES STORAGE DEAL

Centrica (CNA.L) has signed a 70 million pound deal for a gas storage facility in East Yorkshire. The deal will see Centrica acquire Caythorpe Gas Storage, which owns Caythorpe gas producing field near Bridlington. The owner of British Gas said Caythorpe requires 100 million pounds of investment.

WAITROSE GOES INTO BUYING ALLIANCE

Waitrose has announced a buying alliance with supermarket chain Booths on branded goods. Waitrose's move with Booths, which is based in northwest England, will give both chains more muscle in negotiations with suppliers. The development could also lead to lowered prices.

The Daily Telegraph

SUCCESSFUL TRIAL FOR POLLEN VACCINE

Allergy Therapeutics (AGY.L) has revealed positive results from a Phase III trial of its Pollinex Quattro ragweed vaccine. However, it said trials in the United States are still on hold. The research showed the vaccine was far more effective than a placebo in dealing with seasonal allergic rhino-conjunctivitis, caused by the pollen from ragweed. The company's full-year results showed losses before tax in the first half of 2008 came to 20.2 million pounds, from 25.8 million pounds the previous year.

CAPE EYES RETURN TO MAIN MARKET

Cape, the British oil and energy group, believes it will beat market expectations for 2008 profits and is set to return to the main London market next year after being away for six years. The company hopes to move to a full listing in the second quarter of 2009 after being demoted to the junior Alternative Investment Market in January 2003. Cape revealed profits in the six months to the end of June increased 9.7 percent to reach 14.7 million pounds on total sales up 58 percent at 296 million pounds.

BANKS LINED UP AS BACKSTOP FOR B&B IF BUYER NOT ENTICED

It has emerged that three of the largest banks in Britain have been approached to prepare for "national service" by taking over Bradford & Bingley BB.L if a buyer for the struggling lender can not be found. A contingency plan, which will include HSBC (HSBA.L), Barclays (BARC.L) and Santander (SAN.MC) is being drawn up to rescue B&B if it is threatened with a run on the bank. Sources suggest politicians fear another Northern Rock crisis and want to fix any potential problem before panic sets in.

Prepared for Reuters by Durrants