CYBERCRIME LOSSES DOUBLE IN TWO YEARS
Professional services firm PwC has found 61 percent of large firms suffered an attempt to break into their computer systems, with the rising trend costing UK businesses 'at least ten billion pounds' a year. Among the information breaches catalogued, companies reported attacks by cyber criminals and accidental leaks of confidential data, with larger firms having more than 45 incidents a year. The growing trend is expected to concern British companies who could face fines of up to 500,000 pounds for any breaches of the Data Protection Act. Chris Potter, a PwC partner and one of the authors of the report, said 'there are some fundamental issues that companies need to get better at dealing with' to cover 'blind spots' in data management.
VOLCANO COST EUROPE'S AIR SECTOR 2.5 BILLION EUROS
A preliminary assessment conducted by the European Commission has revealed how the European air transport sector suffered as much as 2.5 billion euros in losses from disruption caused by Iceland's volcanic eruption. The loss assessment could now set terms for an industry bailout, as airlines argue flawed computer models used by member states were partially responsible for grounding planes even when it was safe to resume services. The UK Department for Transport said that while the 'UK cannot unilaterally provide new aid to affected companies' it is exploring options with the Commission. Meanwhile, airline EasyJet cautioned that governments should be prevented from supplying aid 'to ailing national carriers who might use the volcanic disruption as a pretext'.
CARBON PERMIT TRADING BUOYED BY THREAT OF SUPPLY CONSTRAINTS
Carbon permit prices fell slightly on Tuesday, trading at
15.46 euros, after rising to a near seven
month high due to incrwasing power prices and concerns that the European Commission may restrict supply. For much of the year, permits have traded at between 13 and 14 euros, well below a high of over 30 euros before the financial crisis. Trevor Sikorski, director of environmental market research at Barclays Capital, said the market recovery was expected. Companies can bank permits before the next phase of the European Union's Emission Trading System in 2013, when they are likely to receive fewer permits.
ARM REAPS BENEFIT OF SMARTPHONE DEMAND
Cambridge-based microchip manufacturer Arm has announced that profits nearly doubled in the first three months of 2010, due to increased demand for high-end smartphones like the Apple iPhone which use chips designed by the firm. Pre-tax profits for the three months to the end of March reached 13.1 million pounds. Shipments of chips into mobile devices increased 50 percent on 2009, while sales of smartphone chips alone rose between 30 to 40 percent. Arm chief executive Warren East said the company intended to recruit about 100 more engineers this year to work on high-end processors for netbooks and smartphones.
LONDON & STAMFORD TO BUY PROPERTIES FROM HBOS VENTURE
Property investment company London & Stamford will pay about 215 million pounds for real estate assets from property fund manager Warner Estates and state-backed bank Lloyds Banking Group which continues to liquidate real estate investments made by the corporate arm of HBOS. London & Stamford's purchase of the Radial distribution fund, a joint venture between HBOS and Warner, is also understood to have been sanctioned by Royal Bank of Scotland. Radial's last reported value was 196 million pounds in 2009.
WHITEBOARD DEMAND AIDS PROMETHEAN
Shares in Promethean World have recovered some of the ground lost since last month's flotation, after the Lancashire-based maker of interactive whiteboards reported a 49 percent increase in first quarter sales. The growth rate is well ahead of market expectations but analysts have said it may be some time before the firm dispels concerns about churn in its investor base, as the float is understood to have attracted a number of short-term investors who took profits quickly. Promethean, which is now expected to expand further into U.S. markets, is in line to meet market expectations of a 34 million pound profit for this year.
ROLL-YOUR-OWN SMOKERS BOLSTER IMPERIAL
Imperial Tobacco reported a 15 percent rise in underlying first-half profits on Tuesday, aided by customers in some of its key European markets trading down from factory-made cigarettes to cheaper roll-your-own tobacco. The Bristol-based company, whose brands include Lambert & Butler and Davidoff, suffered a three percent decline in cigarette volumes, while sales of loose tobacco rose ten percent. The company made a pre-tax profit of 974 million pounds for the six months to March 31, on revenue that was up eight percent at 13.4 billion pounds.
CONNAUGHT POSITIVE AS PAY-OUT IS HOISTED
Social housing maintenance firm Connaught has increased its interim dividend by a fifth, as it attempts to move past a difficult six month period which saw the FTSE 250 firm's shares lose over 40 percent of their value. Profits rose 18 percent to 23.8 million pounds in the six months to the end of February and the group's chief executive Mark Ticknell said he had identified a number of underperforming contracts which would not be renewed. Ticknell, who stood down as executive chairman to take up his new role after the sudden departure of Mark Davies earlier this year, also brushed aside some of the market's worst concerns as 'nonsense'.
BAE SETS SIGHTS ON ATLANTIC MARINE FOR U.S. SHIP REPAIR EXPANSION
BAE Systems is understood to be interested in acquiring Atlantic Marine and has held talks with the firm's private equity owner JF Lehman. Europe's largest defence contractor has made no secret of its intent to expand its ship repair operations in the United States and the proposed deal would add Atlantic Marine's four shipyards along the U.S. Gulf coast and east coast to BAE's operations. The proposed deal is thought to be worth between 131 and 262 million pounds, but according to sources close to the situation, there is no formal process under way and price remains an issue.
Prepared for Reuters by Durrants
Keywords: PRESS DIGEST Financial Times April 28
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