[February 27, 2006]

Evening Standard, London, business briefs column

(Evening Standard (London) (KRT) Via Thomson Dialog NewsEdge) Feb. 27--NAB'S ACCOUNTING ERROR 'WON'T HIT 2005 BOTTOM LINE': National Australia Bank chief executive, John Stewart, pictured, today insisted that errors in the group's financial report will not affect net profits. But he said he could not be sure if there were more accounting mistakes after the bank found 2005 figures overstated lending to the real estate and construction sector. Loans to the construction sector were put at A$5.7 billion (2.4 billion) against the real figure of $1.6 billion. Stewart said human error was probably to blame. NAB, Australia's largest lender, owns the UK's Clydesdale and Yorkshire banks.

SYNTOPIX HEADING FOR AIM FLOAT TO RAISE 6 MILLION: A drugs development company whose targets range from acne to MRSA plans to raise about 6 million via a flotation on AIM. Syntopix was founded by Leeds University scientists Dr Jon Cove and Dr Anne Eady and its big investors include quoted technology investor IP2IPO with 23.5 percent and drugs research foundation The Wellcome Trust. Syntopix is looking to sell into a $10 billion-a-year global dermatology market and has brought in as chairman Gwyn Humphreys, who sold his Bradford Particle Design business for $200 million (114 million) five years ago.

UNIVERSAL CHAIRMAN LANDS A LEADING ROLE AT DREAMWORKS: Universal Pictures chairman Stacey Snider is to step down and join DreamWorks SKG, which is owned by Paramount Pictures, as its co-chairman and chief executive. Paramount said that Snider, who joined Universal in 1996, will be responsible for overseeing between four and six film releases a year and will run the day-to-day operations at DreamWorks. Paramount recently completed its $1.6 billion (917 million) acquisition of DreamWorks in a move that former owner Viacom said was aimed at reinvigorating the famed Hollywood studio.

DOMINO'S PIZZA SALES TOP 200 MILLION FOR FIRST TIME: Sales from Domino's Pizza outlets a year or more old have leaped 10.3 percent since New Year's Day. The growth came after a year in which total sales passed 200 million for the first time. The franchised pizza group added 50 new shops last year, taking the total to 407. The sales growth has been fuelled by big advertising campaigns, which are paid for by the franchise owners. As more franchisees come on board, the advertising pot gets bigger. Pre-tax profits jumped 15 percent to 200.7 million in the year to 1 January. The dividend rises to 7.25p from 5.25p.

ANOTHER 1000 JOBS ON THE LINE AT CABLE & WIRELESS: Cable & Wireless is expected to announce up to 1000 more job losses tomorrow when the struggling telecoms giant reveals its three-year strategy for the UK. This follows last month's shock profit warning. John Pluthero, the former Energis boss who now heads the UK arm of C&W, is expected to reveal a focus on the largest and more profitable of the group's 3000 business customers. He warned staff in an internal memo: "It's going to be hell for the next 12 months. This is no longer a place for the timid." C&W cut 700 staff last year.

DIVI CHEER FOR SHAREHOLDERS AS HAMMERSON DELIVERS: Offices-to-shopping centres developer Hammerson is riding high on a resurgent London lettings market. New chairman John Nelson approved a 10 percent rise in the dividend to 19.71p, nearly twice the increase Hammerson traditionally offers, after his chief executive John Richards began delivering on a long-running development programme. Net asset value per share soared 30.9 percent to 1237p, about 1 more than the market expected. The value of Hammerson's 75 percent stake in a huge new HQ for lawyers Allen & Overy behind Spitalfields grew to 401 million, part of a 17.6 percent rise in total assets to 5.7 billion.

SURGE BY PRIMARK HAS AB FOODS LOOKING SMART: Budget retailer Primark's sales are going through the roof for its owner Associated British Foods, offsetting patchy profits at the conglomerate's British Sugar and other divisions. Sales at Primark stores a year or more old are about 6 percent above last year's despite November's warehouse fire, while stores bought from Littlewoods last year are trading better than expected. British Sugar has found the going tough in the UK and Europe, with price pressures and rising costs, ABF said in a trading update on the six months to 4 March.

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