Financial Times
OPTIMISM OVER HOUSING MARKET RECOVERY CURBED BY SUPPLY FEARS
According to the Royal Institution of Chartered Surveyors
monthly survey, the proportion of estate agents who reported
that house prices fell during July was 8 percent higher than
those reporting an increase. But the figure is the least
negative result in the survey since August 2007. The number of
agreed sales per agency rose 24 percent during the month to more
than 15 sales per agency. The survey also found that agents are
reporting that stocks of houses on the market are near to
historically low levels. The survey showed instructions to sell
properties rose for the first time in two years.
BIG INVESTORS COOL ON MYNERS' IDEA OF TRADE IN VOTING RIGHTS
Suggestions by Treasury Minister Lord Myners that
shareholders should be able to buy and sell their voting rights
in companies have been met with opposition from investors. One
large pension fund manager said the idea outdoes even the
controversy caused by Myners' proposals for a two-tier voting
structure and greater disclosure of bank employee remuneration.
Peter Montagnon, director of investment affairs at the
Association of British Insurers, said: "Lord Myners is right to
be asking what can be done to make companies more accountable to
their shareholders, but his course is not the right one."
CLASH IN JOBLESS DATA SPARKS INQUIRY
UK Works and Pensions Secretary Yvette Cooper has announced
an inquiry into why the number of people claiming job seekers'
allowance has risen much more slowly than unemployment figures
reported by the International Labour Organisation. The
Department for Work and Pensions said: "Ministers have
commissioned an urgent analysis into the discrepancy." The
department said the difference may be due to help provided by
the Jobcentre Plus service, though it was also suggested the
figures could reflect the number of people out of work and
relying on a partner's salary rather than claiming the JSA.
MORGAN SINDALL EYES CAUTION
According to Morgan Sindall chairman John Morgan,
the expected reduction in public sector spending could result in
an increase in acquisitions and bankruptcies in the construction
sector over the coming years. Morgan said the group's
public-focused construction division was being cut back sharply
as a result, despite the division recording a 40 percent
year-on-year increase in operating profit performance for the
six months to July. The company reported net cash of 89 million
pounds at the end of June. The group's revenue fell from 1.24
billion pounds to 1.14 billion pounds, reducing pre-tax profit
from 28.6 million pounds to 20.5 million pounds.
SOUTHERN CROSS QUALITY LAGS
The UK's largest care home group, Southern Cross, has
increased the number of homes ranked in the top two tiers of
service by the Care Quality Commission from 71 percent to 73
percent of the group's 730 homes. Southern still falls a long
way behind its rival Care UK, which recorded 86 percent of its
homes in the top two categories. During the three months to July
company revenue rose 3.7 percent to 255 million pounds with
earnings before interest, tax, depreciation and amortisation
falling 9 percent to 22 million pounds over the same period.
NEW EARTH IN 15 MILLION POUND ISSUE FOR GROWTH
New Earth Group has unveiled plans to raise 15 million
pounds through an equity issue in order to fund expansion. The
company plans to use the money to pioneer power plants to
recover energy from household waste. Bill Riddle, chairman and
founder, said: "These funds will allow us to be at the forefront
of recovering renewable energy from waste." The issue is set to
be equivalent to a 15 percent stake in New Earth.
WHITEHALL WARY OVER LLOYDS' 15 BILLION POUND PLAN
Plans at Lloyds Banking Group to raise between 15
and 20 billion pounds in a rights issue have been met with
scepticism in Whitehall and among investors. The capital raising
would be aimed at reducing the bank's reliance on the
government, with Lloyds having already suggested that
expectation-beating second-quarter results could open up the
terms of its participation in the government's asset protection
scheme for renegotiation. A source said changes could relate to
the size of the premium charged for the insurance or the overall
size of the insurance, but added: "We wouldn't expect the broad
scope of the scheme to change."
PORTMEIRION SALES BOOSTED BY SOUTH KOREA
Ceramics company Portmeirion has announced pre-tax
profits of 532,000 pounds in the six months to June 3, up from
406,000 pounds in the same period last year. The firm was
boosted by the South Korean market, where sales were up 31
percent. Chairman Dick Steele said the company expects a further
sales boost following the acquisition of the Royal Worcester and
Spode brands. Group revenue in the period was up 11 percent at
17 million pounds, but exchange rate fluctuations hurt the
figures, with U.S. sales up 23 percent but down 6 percent in
constant currency terms.
CATTLES OFFLOADS INVOICE FINANCE ARM TO CUT DEBT
Stricken subprime lender Cattles has sold its
invoice finance division. The sale of Cattles Invoice Finance
will allow Cattles to repay around 65.5 million pounds of bank
debt. Anacap Financial Partners will pay around 10.4 million
pounds in cash, equivalent to CIF's net asset value, and 59.6
million pounds in inter-company loans. The deal will be
completed next month subject to shareholder approval at a
general meeting on August 27.
HANSON TO SELL BRICK DIVISIONS
Heavy building materials company Hanson is to sell off
non-core businesses worth around 20 percent of turnover as
parent company HeidelbergCement struggles with 11.3
billion euros of debt. Hanson said the greater part of the sale
would be comprised of its brick business, while its Structherm
and Formpave divisions could also be put up for sale. The
company said it was not being forced into a fire-sale. It said:
"We have reserve prices on all of these companies. We're not in
a position where everything must go."
Prepared for Reuters by Durrants
Keywords: PRESS DIGEST Financial Times Aug 11
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