Business in brief: Dairy Crest | Direct Line | Competition Commission | MBO

THE LATEST updates from the business world.

Dairy Crest raises farm gate prices

One of the dairy firms targeted by farmers in blockades this summer has announced it is to increase the amount it pays for milk.

Dairy Crest, which is supplied by some 1,000 dairy farmers, will pay 29p a litre on contracts for liquid milk and Davidstow cheese from 1 November.

The increase of about 3p a litre is on top of Dairy Crest’s decision to reverse a planned price cut in August and means that its prices are now higher than they were before prices started to come down from May. The firm supplies 15 per cent of British milk production.

Direct Line beefs up board ahead of float

Insurer Direct Line has strengthened its board ahead of its stock market flotation.

The group, which is being sold off by Royal Bank of Scotland, named Glyn Jones – chairman of New York-listed Aspen Insurance – as its senior independent director. Mark Catton, chief executive of UK corporate and institutional banking at RBS, has been appointed a non-executive.

Direct Line chairman Mike Biggs said: “Both Glyn and Mark have extensive leadership skills and financial markets experience, which will bring valuable insights to the group.”

‘No evidence of audit collusion’

THE Competition Commission said its investigation into the UK’s market for company audits had not uncovered any evidence of collusion among top accounting firms.

The comments were the watchdog’s first substantial offering since it formally launched its investigation last year, with preliminary findings due in November. The inquiry looks at how the country’s top 350 listed companies buy audit services, and the commission’s latest working paper studied if the “big four” accounting firms – Deloitte, Ernst & Young, KPMG and PwC – had an understanding over market share.

MBO to drive Forest Holidays growth

Holiday cabin operator Forest Holidays has changed hands in a management buy-out backed by LDC, the private equity arm of Lloyds Banking Group.

Under the deal, the Camping and Caravanning Club will sell its stake for an undisclosed sum. The Forestry Commission will keep its stake in the firm, which runs 315 cabins across the UK, including Loch Long in Argyll and Strathyre near Callander.

Chief executive Gary Fletcher said: “We are keen to roll out an ambitious expansion programme, which will involve a considerable uplift in cabin numbers and UK forest sites.”