PRESS DIGEST - British business - August 30

The Times

M&S WORKERS CLAIM VICTORY.

Marks & Spencer (MKS.L: Quote, Profile, Research, Stock Buzz) staff claimed victory on Friday after it emerged that the high street retailer has agreed to dilute controversial changes to its redundancy terms. The company has withdrawn proposals to slash the maximum payout available to staff made redundant by 25 per cent after being told that the plan had triggered an "unprecedented level of anger" among the workforce. M&S boasts its terms remain among the best on the high street.

NEW STAR'S PROFITS FALL

Falls in share prices have resulted in New Star Asset Management (NSAM.L: Quote, Profile, Research, Stock Buzz) seeing its assets under management drop below 20 billion pounds in the first half. John Duffield, chairman, said that there was no end in sight to the torrid conditions on the stock market. The firm revealed that funds had dropped by 3.3 billion pounds during the six months to June 30. Mr Duffield said: "This is a difficult time for most financial services firms and New Star is no exception".

LEISURE

Restaurant Group (RTN.L: Quote, Profile, Research, Stock Buzz) has served up a 20 per cent increase in profits, but sales at the Frankie & Benny's restaurant chain have recently slowed as the squeeze on consumers tightens. The group revealed same-outlet sales improved three per cent in the fast half of 2008. The sales figure for the company, which also trades as Chiquito and Garfunkel's, is a slowdown from the five per cent like-for-like sales growth it reported in May.

The Daily Telegraph

POTTER MAGIC STILL WORKS FOR BLOOMSBURY  Continued...