PRESS DIGEST - British business - Oct 7

The Times

WATERMAN GROUP SAYS SALES UP

Waterman Group (WTM.L) revealed its sales were up an above forecast 31 percent as its operating margins strengthened 6.6 percent and operating profits increased 54 percent. However, its share price closed down 47 percent on the year due to concerns of a slowdown that has yet to emerge. On Monday, the group, led by chief executive Nick Taylor, disclosed a 10 percent increase in its order book to a record 225 million pounds.

KESA APPOINTS NEW CEO

Kesa Electricals (KESA.L), the owner of Comet, has appointed a new chief executive less than a month after telling investors that the second-largest electrical goods retailer in Britain expected to soon fall into the red. The company, which five years ago demerged from Kingfisher, announced that Thierry Falque-Pierrotin would succeed Jean-Noel Labroue in January.

The Daily Telegraph

TESCO BUYS NINE WOOLWORTHS STORES

Ailing pick 'n' mix retailer Woolworths WLW.L has sold nine stores to Tesco (TSCO.L) for roughly nine million pounds. The move comes as Woolworths' management seeks to offload unprofitable stores in an attempt to turn the struggling chain around. The nine stores are far smaller than the four shops it sold to Waitrose in the summer for 25.5 million pounds. It has been suggested Tesco will convert the outlets to its Tesco Express.

REGAN TO DE-LIST CORVUS CAPITAL

Financier Andrew Regan has announced he intends to de-list Corvus Capital CORV.L, his investment vehicle, and pay shareholders a 5.75 million pound special dividend. Regan said economic conditions meant the available investment opportunities were high-risk and did not suit public based investment. Corvus will pay a dividend of two pence per share before liquidating the remaining assets and transferring the cash to shareholders.

AVIVA TRIES TO SCOTCH CAPITAL EROSION FEARS

Aviva (AV.L) has moved to relieve fears that at least 30 percent had been wiped off its 1.8 billion pound capital surplus in recent months. The UK's biggest insurer dismissed a report that crashing stock markets had eroded its capital buffer and stated it still had considerable reserves. A spokeswoman said: "Our balance sheet remains strong and of high quality."

The Independent

MFI STORES IN ADMINISTRATION

MFI placed its retail and property divisions into administration on Monday after the completion of a management buyout that saved 106 of the furniture chain's 187 stores. Restructuring specialist Kroll was appointed as administrator to oversee the process. Under the new company, MFI Group, led by chief executive Gary Favell, 1,350 jobs have been secured. The joint administration said it will consider a range of options regarding the remaining 81 stores.

TNS ACCEPTS WPP TAKEOVER