PRESS DIGEST - British business - Nov 15

The Times

NOT EVEN HANDBAGS COULD CARRY THE WEEK AT JOHN LEWIS

Sales at department store group John Lewis fell 9.7 percent to 57.78 million pounds in the week to November 8, despite earlier signs of recovery in high street trading. The company said trading was held back by "economic uncertainty and grim weather". The drop in sales follows a more upbeat set of figures in the previous week, when sales eased just 1.3 percent lower, compared to 9.8 percent for the week ending October 25. Nat Wakely, director of retail operations, said the group hoped that the recent cut in interest rates would help to revive consumer confidence and looked ahead to the Christmas period.

RICHER SEAM AT PETER HAMBRO

Peter Hambro Mining recovered slightly from a three-day fall after it said that a recent reserves report had been misinterpreted by HSBC (HSBA.L) analyst Victor Flores. Flores said on Tuesday that the report revealed a serious depletion of gold reserves at its main active mine that could affect cashflow and obstruct the funding of its untapped mine. The shares had plummeted from 310 pence to 180 pence in two days, but added 13.5 pence to close at 193 pence after the company stated it would be talking to the analyst regarding a "potential misunderstanding" of the report.

CENTAUR MEDIA

Trade magazine publisher Centaur Media has suffered a 16 percent drop in group revenues for the four months to the end of October. The fall also affected margins in the period. The group, which publishes 'Money Marketing', said it would keep costs under review.

The Daily Telegraph

CENTRICA TO REVIEW WIND FARM FIGURES

Centrica (CNA.L) has stated it is "revisiting the economics" of its wind farm projects amid a sharp rise in costs. Any indication that the company will delay or even abandon the projects would upset the government's plans to meet its targets on the reduction of carbon emissions. The company, which has been warning about the rising cost of labour, materials and shipping, will need to make a decision soon on costs of a proposed 250 megawatt Lincs wind farm and is also applying for permission to build two more farms. A spokesman said the company is seeking to reduce input costs before proceeding with the projects.

GKN WARNING ON CAR MARKET

GKN (GKN.L) has warned that there was a "rapid and material decline in conditions" in its car markets. The statement follows a sharp fall in business over the past week with production in November and December set to be around 20 percent lower than earlier expectations. The group, which issued a profits warning in October, said that activity levels would be 40 percent lower than in the first half.

KENT RESIGNS AS B&B CHAIRMAN

Rod Kent, chairman of Bradford & Bingley BB.L, has handed in his resignation and will not receive any severance package from the bank. Deputy chairman Nick Cosh and non-executives Ian Cheshire and Steve Webster have also quit without any payoff. Richard Pym, chief executive, will assume the role of executive chairman and continue to lead run-off of the bank. A spokesman said the moves were part of post-nationalisation changes.

The Independent

Comet, the electricals chain, has had its credit insurance scaled back in a further sign of the effect of the consumer recession on the retail sector. Credit insurer Coface said on Friday it had reduced the insurance cover it provides to some of Comet's suppliers this month. The move reveals the level of concern among some credit insurers about the possibility of large retailers struggling to pay for goods and services received. Comet continues to trade with the suppliers insured by Coface and is unaffected by the reduction. A spokeswoman said that Comet had not been informed of any changes to its suppliers insurance, adding: "Our cash position remains strong".