The Times
NEWCASTLE BEARS THE BRUNT AS BAE SHEDS 590 JOBS
BAE Systems has told its staff 590 jobs will be
axed, with more than a third going at its Newcastle facility.
Factories in Leeds, Guildford and Telford will also close
because demand for armoured vehicles has stalled. The company
has also said that unless there are new orders from the Defence
Ministry, further closures may be necessary. Bids to build
Future Rapid Effects System vehicles are due to be submitted
next Thursday, but there are fears the entire project could be
scrapped if the Treasury calls for further budget cuts from the
ministry.
HUNDREDS OF BRITISH MANAGERS TO GO AS SHELL STEPS UP
RESTRUCTURING DRIVE
More than 400 British managers at Royal Dutch Shell
will lose their jobs by the end of 2009 as the Anglo-Dutch group
presses on with its Transition 2009 restructure. New chief
executive Peter Voser announced 5,000 job losses worldwide on
Thursday following a 73 percent collapse in third-quarter
profits. Most British job losses will occur at Shell's upstream
operation in Aberdeen and its London corporate affairs office.
In some areas, up to 30 percent of senior management roles have
disappeared in the restructure. Shell's chief financial officer
Simon Henry said European oil demand could be in permanent
decline.
FOUNDER OF JONGLEURS HOPES TO HAVE THE LAST LAUGH
Jongleurs founder Maria Kempinska intends to create a new
chain of the comedy clubs- - after regaining control of the
brand which until recently had been licensed by Regent Inns.
Last week's sale of Regent, via a pre-pack administration,
triggered a change-of-control clause which sees full control of
the Jongleurs brand revert back to Kempinska. She is already
looking for new sites in Newcastle Liverpool and Brighton as a
platform.
The Daily Telegraph
THRESHERS OWNER IN ADMINISTRATION
First Quench Retailing, the owner of off licence chain
Threshers, has been placed into administration -- with the board
confirming that it has appointed KMPG as administrator. KPMG has
advised First Quench, which owns 300 stores and employs 6,500
staff, that its best option is to sell the business as a going
concern, thereby safeguarding as many jobs as possible.
VIRGIN MEDIA BUOYED BY RISE IN CUSTOMERS
Virgin Media reported a 1.3 percent rise in
revenue in the third quarter on Thursday, boosted by the
addition of 8,100 new fibre optic service subscribers. Despite
this, operating income fell three million pounds to 50 million
pounds. Chief executive Neil Burkett also said he "broadly
supported" government proposals for a crackdown on piracy and
that the cable operator is considering launching 3D TV on its
video-on-demand service.
STANDARD IS BOOSTED BY ASIA'S REVIVAL
Standard Chartered reported a strong set of third
quarter results on Thursday, buoyed by a resurgent Asian
economy. The bank is working with Indian authorities in the hope
of listing in the country and is also considering pursuing a
Chinese listing. Chief executive Peter Sands noted the fact that
emerging economies are recovering faster than those in the West,
but said it was too early to call it a sustained recovery.
The Independent
POUNDSTRETCHER OWNER TO DELIST FROM MARKET
Instore, the owner of discount retailer
Poundstretcher, has announced it is to delist from the stock
market as it reported a narrower half-year loss. For the six
months to August 29, the company posted a pre-tax loss of 3.7
million pounds. Instore also runs a second discount chain under
its own name and said the decision was taken with the interests
of its shareholders firmly in mind.
NATIONAL EXPRESS MERGER TALKS COLLAPSE
Merger talks between National Express and Stagecoach have ended. As a result of this National Express will
launch a rights issue before the end of the year. The company
has been struggling since July when the group's financial
problems, including a 1.2 billion pound debt mountain, forced
the government to take back the East Coast rail franchise. A 765
million pound takeover proposal from Spain's Cosmen Family was
withdrawn over disagreements with the board concerning the
company's U.S. business.
TRANSPORT GROUPS CONTINUE TO TRADE IN LINE WITH HOPES
Go-Ahead and Arriva both reported growth in
revenues and continued to trade in line with forecasts. Go-Ahead
kept the economic backdrop firmly at the forefront of its
forecasts and kept full-year expectations unchanged. The share
prices of the two groups responded in a positive fashion with
Arriva closing the day 1.3 percent up, while Go-Ahead could
boast an increase of 3.3 percent.
The Guardian
LLOYDS TRIES TO SHORE UP SUPPORT FOR RECORD 13 BILLION POUND
RIGHTS ISSUE
Lloyds Banking Group spent Thursday night in talks
with major shareholders in a bid to leave the government's toxic
asset insurance scheme and limit public ownership to under 50
percent. The bank needs support for a 13 billion pound rights
issue and an eight billion pound debt-for-equity swap. Without
the share offer, which has Chancellor of the Exchequer Alistair
Darling's provisional backing, Lloyds will have to put 260
billion pounds of toxic assets into a government-backed asset
protection scheme. The EU is likely to rule on the break-up of
the bank next week.
OUTDOOR GOODS RETAILER BLACKS LEISURE WINS BANKS' BACKING TO
CLOSE 100 STORES
Blacks Leisure said on Thursday it had won approval
from bankers for a restructure that will mean the closure of 100
of its stores. Lloyds had given the retailer until
today to turn itself around after it breached loan terms in
September. Blacks, which has already put surfwear subsidiary
Sandcity into administration, must now convince its landlords to
support a company voluntary arrangement. The CVA needs to be
finalised by the end of November.
STANDARD LIFE SUFFERS FROM 15 PERCENT FALL IN PENSION SALES
Figures from Edinburgh-based insurer Standard Life
suggest its sales revenues in the first three quarters of the
year have been hit by public unease over pension saving. Pension
sales, which were at 12.4 billion pounds over the same period
last year, have declined by 15 percent to 10.5 billion pounds.
Although outgoing CEO Sandy Crombie said Standard Life's
position remained strong, analysts were less optimistic.
Standard Life's shares closed down 0.8 pence at 219 pence.
Prepared for Reuters by Durrants
Keywords: PRESS DIGEST British business Oct 30
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