PRESS DIGEST - British business - June 24

The Times

CRESTON'S "ENCOURAGING" PIPELINE

Telecommunications group Creston (CRCRE.L) has reported a five percent increase in full-year pre-tax profits to 14.2 million pounds. The company said its performance had been boosted by new business and that its pipeline remained "encouraging", although it did not recommend a dividend. Chief executive Don Elgie said he was "comfortable" with the market predictions of 81.1 million pounds in revenue for the current financial year.

CHAUCER EXECUTIVES QUIT AFTER TALKS FAIL

Senior executives at Chaucer (CHU.L) quit on Tuesday night as the Lloyds of London insurer withdrew from merger talks with rival Brit Insurance. Chief executive Ewen Gilmour told the board he would step down at the end of the year, while finance director Mark Graham has already left the company. Chaucer has begun its search for their replacements. Chris Forbes, senior independent director at Chaucer, is also quitting at the end of the month. It is understood the three men faced shareholder pressure to stand down as a condition of Chaucer receiving support to remain independent.

SULTAN OF BLING VOWS TO BRING SPARKLE BACK TO FENNELL

Theo Fennell has returned to take creative control of the jewellery business that bears his name. His move follows co-founder Richard Northcott's decision to step down as chairman. Additionally, Barbara Snoad will return as chief executive, replacing Pamela Harper, who had embarked on ambitious expansion plans. Fennell said he had returned because the business had lost its direction, adding: "The business had shifted further towards the high street and being a brand and we have got something more special and marketable than that." Fennall's share of the business has increased from 15 percent to 19 percent.

The Daily Telegraph

IN THE DOLDRUMS: CARPHONE CUTS DUNSTONE'S PAY

Carphone Warehouse (CPW.L) has scrapped bonus payments to all directors, including co-founder and chief executive Charles Dunstone. Dunstone, who has seen his paper fortune fall by 149 million pounds over the last year, received 588,000 pounds for the year to the end of March compared to 1.1 billion pounds the previous year. The firm has also frozen all directors' pay.

UK MAY OUTSOURCE NUCLEAR ACTIVITY

Public spending cuts could see the government outsource its nuclear energy activity to the private sector. The issue was addressed in comments made by Business Secretary Lord Mandelson at a nuclear power industry event in London. Mandelson also said UK companies are capable of supplying up to 90 percent of the work for new-build power stations. While expressing a reluctance to provide subsidies, he conceded the current economic climate makes it difficult for firms to secure the financing for large infrastructure projects.

CHEMRING SEES SURGES ON STRONG GROWTH FROM AFGHANISTAN CONFLICT

Chemring (CHG.L) predicts strong earnings growth for at least the next two years, fuelled by the ongoing Afghanistan conflict. The firm makes flares and decoys to protect the military from attack and expects increased demand as NATO and U.S. troops look to protect themselves in the region. Posting a 44 percent rise in pre-tax profit in the six months to the end of April, the group has already reported faster growth in its pyrotechnics and bomb detection units, and Investec analyst Chris Dyett highlights Chemring as a key pick in the sector. Dyett said: "We do not believe any of its peers offer Chemring's top line growth prospects combined with sector-leading operating margins."

The Independent

DRAX RAISES 108 MILLION POUNDS IN NEW SHARES TO FIGHT DEBT

Energy generator Drax (DRX.L) raised 108 million pounds on Tuesday in a shares placing aimed at paying down its 370 million pound term debt and keeping its credit rating above junk status. The 15.5 million new shares were sold in a matter of hours at 425 pence, 5.3 percent cheaper than the previous day's closing price. The move came after Standard & Poor's lowered the company's rating to BBB-minus in May and reduced its outlook from stable to negative due to failing power prices and the unknown impact of the European emissions trading scheme from 2013.

DEBENHAMS STRUGGLES TO LURE INVESTORS

Most of Debenhams' (DEB.L) shareholders have failed to respond to the group's cash call, with only a third of the offer being taken up. The department stores group planned to use the 323 million pounds it hoped to raise to pay down debt and fund potential acquisitions. The company said in a statement to the market on Tuesday that 73.3 million of the possible 241.4 million new shares offered to existing shareholders had been accepted. A Debenhams insider pointed to the fact that two of the group's largest backers had last month declared they would not take up their rights this month. CVC Capital Partners and TPG said they would not take part and resigned from the board.

HANSTEEN IN 195 MILLION POUND CASH CALL TO BUY UK PROPERTY

Hansteen Holdings is set to raise around 194 million pounds in order to take advantage of cheaper commercial property prices in the UK. The Aim-listed company said it would issue 267.8 million new shares at 75 pence a share. Around 89.3 million shares had been placed, while about 178.4 million shares would be made available in an open offer, with investors able to buy one new share for each exiting share held. Hansteen said the UK market is in a "state of considerable distress whereby we can acquire industrial property at double digit yields".

The Guardian

FEARS GROW NORTHERN ROCK COULD SATURATE THE MORTGAGE MARKET

Ahead of next week's publication of an EU investigation into the state rescue of Northern Rock (NRKx.L), the Building Societies Association has voiced concern that the Newcastle-based lender will use its state-backed status to gain a competitive advantage over rivals in the mortgage and savings markets. A highly anticipated document on the government's plans for the bank will be followed by a month-long period in which interested parties can lobby the European Commission. Building Societies Association director general Adrian Coles is quoted as saying: "If Northern Rock lends in competition with private sector lenders it should not abuse its privilege by squeezing margins to a level at which the private sector can not compete."

SETANTA PUTS ITS BRITISH BUSINESS INTO ADMINISTRATION

The British arm of Irish pay-TV broadcaster Setanta was placed into administration on Tuesday, with accountancy firm Deloitte appointed to wind down the business. The broadcaster's directors have been in talks about restructuring the company since losing the rights to a number of live 2010 Premiere League games to BSkyB (BSY.L) in February, and Tuesday's news follows the Premier League's decision to allow ESPN to acquire the rights to games previously held by Setanta. Talks are ongoing about the future of Setanta's Irish and International arms, which may be hived off.

BIOTECH GROUP STANDS TO GAIN ONE BILLION DOLLARS FROM GLAXO LINK

Privately owned biotech group Chroma Therapeutics could make "in excess of one billion dollars" after signing a research alliance with GlaxoSmithKline (GSK.L). The agreement, the latest in a series entered into by GSK's Centre of Excellence for External Drug Discovery, will see Chroma continue development work on four anti-inflammatory disease programmes until large scale trials are required -- at which point Glaxo has the option to acquire drug licences and take the products through trial and to market. How lucrative the deal becomes for Chroma is dependent on the clinical and commercial success of the products

Prepared for Reuters by Durrants