PRESS DIGEST - British business - April 29

The Times

WHITBREAD ORDERS DOUBLE COSTA COFFEE AS SALES SOAR

Whitbread(WTB.L) confirmed on Monday ambitious plans to expand Premier Inns by 50 percent and double the size of its chain of Costa coffee shops over the next five years. The FTSE 100-listed leisure chain posted a 5.7 percent rise in like-for-like sales in the year to the end of February and increased the final dividend by 21.4 percent to 26.9 pence. Chief executive Alan Parker said that Whitbread had seen no sign of a slowdown in its markets. Trading in the two months since the year's end had followed a similar pattern, if not "a shade better", he said.

HBOS INVESTORS BRACED FOR FOUR BILLION POUND RIGHTS ISSUE

Shares in HBOSHBOS.L, the biggest mortgage lender in Britain, fell on Monday as investors braced for a four billion pounds rights issue. It was the only high street bank stock to fall, closing down 1.25 percent at 495.75 pence, compared with a 0.68 percent increase for the sector. The bank was understood to be finalising details of the capital-raising on Monday night, in preparation for a general meeting in Glasgow on Tuesday when they will be presented to shareholders. HBOS has so far escaped with only 227 million pounds in fair value reduction on its mortgage investments in the US and analysts were split on the potential for writedowns at the bank.

DESSERTS MADE IN DEVON WILL BE OFF MENU WHEN FACTORY SHUTS

Uniq, the maker of supermarket ready meals, has abandoned its dividend this year and announced plans to close its factory in Devon, with up to 400 staff likely to be laid off. It expects the closure of the plant in Paignton to cost around 20 million pounds and take about 18 months to implement. Increases in the price of dairy products, wheat, barley and meat have adversely affected the company, which makes desserts, chilled meals and snacks. "We've agonised over this decision for a long time," said Geoff Eaton, the chief executive.

The Daily Telegraph

IMMIGRANTS FLOCK TO STAGECOACH

Stagecoach(SGC.L), the rail and bus operator, said that road congestion and Eastern European workers had helped to boost passenger growth as it revealed that earnings per share were now expected to reach around 20 pence for the year to April 30 - more than 15 percent above analysts' forecasts. A flurry of analyst upgrades on the news - with Credit Suisse raising its pre-tax profits forecasts by 31.1 million pounds - saw the shares jump 27.5 pence to 248.75 pence. Martin Griffiths, finance director, said immigration was a factor in boosting passenger numbers. "They are typically very comfortable with public transport and natural users of bus and rail," he said.