PRESS DIGEST - British business - Sept 26

The Guardian

PROFITS UP AS M&C SAATCHI DEFIES ANALYSTS' GLOOM

M&C Saatchi (SAA.L) posted pre-tax profits up 107 percent to 7.8 million pounds, outperforming analyst expectations. Like-for-like revenue for the advertising group was up 18.7 percent year on year to 43 million pounds, for the six months to the end of June. The company, which owns Walker Media as well as ad agency network M&C Saatchi, expects the full year to remain in line with current forecasts owing to uncertainty in the economy.

LLOYDS OF LONDON BRACED FOR TIDE OF CLAIMS

Lloyds of London saw its profits halve in the first six month due to a ruptured gas pipeline in Australia and damaging Caribbean hurricanes, among other catastrophes. On Thursday, the oldest insurance market in the world said a sharp decline in investment income was also responsible for its first interim profit decrease in two years. Lloyds revealed pre-tax profit in the six months to June 30 of 949 million pounds, down 47 percent from 1.8 billion pounds in that period last year.

The Independent

BRADFORD & BINGLEY TO LAY OFF 370 WORKERS

Bradford & Bingley BB.L said on Thursday it would cut 370 jobs as well as 134 million pounds of charges from losses on troubled assets. The measures came as the bank's new chief executive prepared for the impending reality of stagnant business and increasing arrears. Richard Pym, who joined B&B last month from Alliance & Leicester, said: "The changes we have announced today focus the business as a strong savings bank, reduce the size of our lending activities and increase our capacity in arrears collection."

DOWNTURN EXPECTED TO BITE FOR M&S

It is expected Marks & Spencer (MKS.L) will announce next week that trading deteriorated during its second quarter. This news from the retailer will serve to confirm fears about the depth of the retail downturn. Analysts forecast M&S's UK division will reveal like-for-like sales down 6.7 percent for the 13 weeks to September 27. Its Q2 trading statement will put down an ominous marker.

VALUE OF CANARY WHARF FALLS BY 550 MILLION POUNDS

Songbird Estates SBDb.L, the property company that owns much of Canary Wharf in London, has had 550 million pounds wiped off its portfolio in just six months. The company revealed the market value of its entire portfolio had declined to 6.72 billion pounds at the end of June from 7.27 billion pounds at the turn of the year. Songbird Estates did post an increase in pre-tax profits, up from 39.5 million pounds in the first half last year to 85.8 million pounds in 2008. The group is still unsure of the impact of the bankruptcy of Lehman Brothers, its tenant on Bank Street.

The Times

NO SHORTAGE OF WORK FOR PENNA

Penna (PECO.L), the human resources consultancy, stands to benefit when times get hard for others, as seen from its shares soaring 27 percent on Thursday. The jump came after the company said income from its career transition business, which supports workers made redundant, was more than 20 percent higher than in the first half of last year. The group said that overall it was performing substantially ahead of expectations.

RSA INSURANCE LIFTED BY AXA CHIEF'S WORDS

Shares in RSA Insurance (RSA.L) ended 15.9 pence higher at 159.4 pence, after the chief executive of Axa (AXAF.PA), its largest shareholder, said on French radio: "The situation today will offer us opportunities to reinforce our positions in the next few months." The words from Henri de Castries, chief executive of the French insurer, caused RSA Insurance to become one of the top gainers in the blue chip index.

DSG INTERNATIONAL SAYS HEDGE FUNDS WILL BE PROVED WRONG

DSG International (DSGI.L) revealed that hedge funds shorting its shares would be proved wrong by the turnaround plan being put together by its chief executive John Browett. The electronics retailer said it had not asked the Financial Services Authority to extend a ban on short selling to retail stocks.

The Daily Telegraph

BLOOMSBURY BUYS PUBLISHER BERG

Bloomsbury Publishing (BLPU.L) has acquired Berg, the fashion and design publisher, for two million pounds. The company, made famous for discovering the Harry Potter books, wants to increase its presence in the academic market to benefit from the booming area of online publishing. The agreement will see Berg Publishers join Bloomsbury's new academic division specialising in humanities and social sciences. Shares in Bloomsbury closed at 167.75 pence, down 2.5 pence.

UNITED UTILITIES TO RAISE WATER BILLS

United Utilities (UU.L) has said its half-year results are in line with market expectations, but will increase household water bills to improve productivity. The group said its business is expected to deliver "good underlying profit growth" for the six months to September 30. It has also submitted a business plan to Ofwat, the regulator, which included an investment programme of over four billion pounds between 2010 and 2015. Its shares increased four pence to reach 683 pence.

Prepared for Reuters by Durrants