Daily Telegraph
ALCHEMY TURNS BACK ON ANY NEW DEALS
Alchemy has no plans for new investments and is effectively
being run down. Alchemy will make only bolt-on additions to
existing portfolio companies and no further fund-raising will be
sought in the foreseeable future. Observers believe the private
equity firm will likely sell off assets and return cash to
investors, just as optimism begins to return to the private
equity sector. A source at Alchemy said it is currently in
"pause-mode", with the decision being made by the management,
rather than being forced by investors.
SVG HIGHLIGHTS BRIGHTER OUTLOOK FOR PRIVATE EQUITY
SVG Capital has reported a more positive market for
asset sales is being enjoyed by private equity firms. SVG's
private equity assets, which account for 13 percent of its
portfolio, were written up by 55 percent since June, increasing
by 26.5 million pounds to 75 million pounds. SVG said in its
interim management statement: "We believe that the prospects for
realisation activity, particularly for the more mature and
defensive investments, are improving."
FORMER OWNERS FACE THRESHERS LIABILITY
Punch Taverns and Whitbread could be forced
to take over Threshers stores following the collapse of First
Quench Retailing -- the group which owned the wine retailer.
Punch and Whitbread previously owned First Quench, and although
administrator KPMG has yet to quantify how many off licences
could be forced into their ownership both companies said they
believed the number would not be "material". KPMG is believed to
have received numerous offers for small groups of stores, with a
dozen bidders interested in acquiring a larger part of the
group.
The Independent
LLOYDS TO RESCUE DEBT-LADEN ADMIRAL
Lloyds Banking Group is attempting to bring about a
financial restructuring of the troubled pubs group Admiral
Taverns, which may include a 600 million pound debt-for-equity
swap. Although such a deal will not give Lloyds a majority stake
in Admiral, it would effectively give it ownership of the
company. In order to enable Admiral to continue trading, Lloyds
is understood to be considering a pre-pack administration deal
which could be unveiled this week.
PERSIMMON EXPECTS "HEALTHY" ORDER BOOK
Despite warning about the effect that high unemployment and
a lack of mortgage availability will have on the property
market, the housebuilder Persimmon has reported it has
extended its good performance over the summer into the autumn.
With the average price of homes reserved since July 1 2009 up
six percent to 173,000 pounds, the company expects to retain a
"healthy" order book into 2010. Net debt at the firm also fell
from 960 million pounds to 399 million pounds during the year to
the end of October.
130 STAFF LOSE JOBS AT MEALS-ON-WHEEL FIRM
The meals-on-wheels company Flowfood has collapsed with the
loss of 130 jobs, after no buyer was willing to come forward for
the Leeds-based business. Flowfood worked with seven councils --
Gateshead, Salford, Staffordshire, Milton Keynes, Oxford, St.
Helens and East Riding -- to provide food for vulnerable people.
Its demise has meant councils have had to fall back on emergency
supplies of ready meals. Staffordshire and Milton Keynes
councils said they have managed to make alternative arrangements
with another supplier.
The Guardian
SLASHING PUBLIC SPENDING WILL LEAD TO A "ZOMBIE ECONOMY"
The general secretary of the TUC, Brendan Barber, has warned
against cutting public spending too dramatically at the "Beyond
Crisis" conference on how to revitalise the British economy.
While allowing that the UK's national debt would have to be
reduced in the long-term, Barber said premature action to cut
the deficit could result in a slower recovery and a "lost
decade" similar to that that experienced by Japan in the 1990s.
MINIDRESSES GIVE A LIFT TO ASOS SALES
The online fashion retailer Asos has reported an
impressive 112 percent rise in its overseas sales during the six
months to September 30 2009, with sales growth in the UK at a
relatively mediocre 33 percent. Total first-half profits at the
group amounted to 4.4 million pounds, a nine percent rise on the
previous year which exceeded market expectations. The chief
executive Nick Robertson said he was "cautiously optimistic"
about the second half of the year, but warned that demand in
Britain for its products is trailing off.
DRINKERS' NEW WORLD SYMPATHY LIFTS PROFITS AT MAJESTIC
The wine warehouse chain Majestic Wine has reported
a nine percent increase in first-half profits to 6.1 million
pounds, with like-for-like sales rising 5.4 percent in the 26
weeks to September 28. The company noted that drinkers have
developed a tendency to buy cheaper wines from North America,
and Prosecco instead of champagne. Shares in Majestic rose 3.7
percent, and finished the day at 254 pence.
The Times
J SAINSBURY DISPUTES REPORT THAT IT IS LOSING MARKET SHARE
J Sainsbury has reacted against a report that it is
losing customers to its rivals, saying that it had gained share
during the 12 weeks to November 1. The normally confidential
switching data report was published by The Times on Monday, and
showed customers moving to Tesco, Waitrose and Aldi,
totalling a loss of about 8.5 million pounds to Sainsbury. TNS
Worldpanel, the company responsible for the report, says market
share data like this is subject to ebbs and flows and is
strategically unimportant.
BA TURNS UP TEMPERATURE ON CABIN CREW
British Airways has written a letter to the joint
secretaries of Unite, saying it will not tolerate union members
promoting strike action at work and would consider pressing
criminal charges against anyone found putting stickers on the
company's property. It is another sign of the fraught
relationship between BA bosses and its workers in advance of the
upcoming strike ballot. The company is attempting to cut 4,000
full-time jobs by reducing the number of cabin crew on its
flights, a move met with resistance from the union.
Prepared for Reuters by Durrants
Keywords: PRESS DIGEST British business Nov 17
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