Thomas Cook , Europe's second-biggest travel firm, reported profits ahead of market expectations on Tuesday showing, like rival TUI Travel , its business had so far proved resilient to a looming recession.

The company set up to manage the government's bank holdings said it was in talks with lenders about their strategy, just as the biggest beneficiary of the government's banking bailout pledged to delay home repossessions.

London Scottish Bank said on Monday it had gone into administration after suffering a shortfall in its capital reserves.

The government bought a majority stake in one of the country's biggest banks and Germany's Commerzbank accelerated its takeover of a rival as the shake-up of European banks gathered pace with help from taxpayers and shareholders.

Kingfisher , Europe's top home improvement retailer, beat forecasts with an 8.3 percent rise in third-quarter profit, helped by cost control and currency moves, but said trading was set to get tougher.

Pubs operator Mitchells & Butlers (M&B) scrapped its year-end dividend on Wednesday and warned investors not to expect a payout until 2010, as it grapples with a 2.7 billion pound debt pile.

Royal Bank of Scotland Group , whose losses on complex debt led to a 20 billion pound ($31 billion) British government rescue, agreed to sell its 65-branch retail banking network in Indiana to Old National Bancorp .

Royal Bank of Scotland's 15 billion pound share offer closed Tuesday, and with its shares languishing well below the offer price the only takers are likely to be the bank's directors.

Emerging markets bank Standard Chartered plans to raise 1.8 billion pounds from a rights issue to boost its capital base and give it flexibility to pursue acquisitions, it said on Monday.

Barclays has faced a backlash from shareholders angry that investors in Qatar and Abu Dhabi are buying complex capital instruments on more attractive terms than existing investors have been offered.

A January 15 deadline for a European Union ruling on mining giant BHP Billiton Ltd/Plc's bid for rival Rio Tinto Ltd/Plc could slip by up to three weeks after BHP missed a deadline to offer asset divestments, the Australian Financial Review paper reported on Thursday.

Ron Sandler, chairman of nationalised Northern Rock, said the lender has not been subject to government influence since passing into public ownership.

Enterprise Inns , the country's second-biggest pubs group, reported a 12.6 percent decline in full-year pretax profit on Tuesday as sales were hit by a smoking ban and deterioration in consumer spending.

Phone company to cut 6,000 more jobs despite 2Q net profit rises

South African investment bank and asset manager Investec said on Thursday it made a first-half operating profit of 241.8 million pounds, unchanged from a year ago, and that its business would remain slow.

Britain's largest property investor Land Securities has abandoned year-old preparations for a radical three-way demerger of its business, the company said on Wednesday.

The following is a round-up of key small cap movers on the London stock market on Tuesday.

InterContinental Hotels , the world's largest hotelier, warned of a sharp fall in October trading as the global economic slowdown hit the hotel industry, overshadowing a forecast-beating 14 percent rise in third-quarter profits.

Man Group aims to win more business from big Asian investors such as pension funds and insurers even as global financial turmoil spurs some existing clients to redeem holdings and seek safety in cash.

British Airways stuck to its forecast for a small operating profit this year and lifted its revenue target, despite first-half profit plunging more than 90 percent due to high fuel costs and the global financial crisis.

RSA Insurance , the biggest commercial insurer, posted an 11 percent rise in premiums for the first nine months of its financial year and reiterated a key profitability target for the full year.

Broadcaster ITV issued a gloomy forecast for the advertising market on Wednesday, saying it expected the economic slowdown to hit television and online ads, making 2009 challenging.

Royal Bank of Scotland warned it will be hit by more writedowns and rising bad debts this quarter as its incoming chief executive kick-started a strategy overhaul aiming to restart dividends in 2010.

Home lender HBOS Plc doubled its hit from toxic assets and bad loans to over 5 billion pounds on Monday and its takeover partner Lloyds TSB warned of a sharp fall in profits.

BT Group warned it would miss earnings forecasts due to the poor performance of its unit which provides network services to multinational companies, sending its shares crashing to a more than 20-year low.

Life insurer Standard Life reported weaker than expected nine-month sales, sending its shares lower, but said its capital position was strong despite the stock market slump.

The UK Bluetooth manufacturer, CSR, has warned that 2009 will be a difficult year.

Life insurer Aviva reported a better than expected 12 percent rise in its 9-month sales, and confirmed that it may renegotiate a 1 billion pound payout to customers as a result of weak financial markets.

Automotive and aircraft engineering company GKN said it would cut more than 5 percent of its staff worldwide and close plants as turbulence in the automotive sector deepens.

UK property website Rightmove Group plc has announced it will cut 300 employees or 20 percent of its staff, as the company restructures to cope with the housing market slump.

Rambler plc has reported its operational and financial highlights for the year ended 31 July, 2008.

Pru plc has confirmed that it is considering making a bid for American insurer AIG’s Asian assets, which could be worth £8 billion at auction.

Mining group Xstrata said on Tuesday it is well placed with financing and posted solid third-quarter production results, except in mined copper, its most important metal.

Bookmaker William Hill will acquire a stake in software company Playtech with plans to expand online betting and gaming.

Mining group Xstrata said it is well placed with financing as it posted an 8 percent fall in third-quarter mined copper output on Tuesday and a 12 percent rise in coal production.

The Netherlands government will give the Dutch insurer €10 billion to boost its share-prices and bring stability after the shares lost €500 million in the last quarter

Legal & General plc, the third largest insurer in the UK, has reported a slight drop in its third quarter.

Eurostar passenger numbers are up over six percent despite the fire in the Channel Tunnel which caused temporary closures and a continued reduction in services.

The Carphone Warehouse Group plc has set out plans to double its sales over the next five years and dramatically expand outlets.

QinetiQ Group plc has announced that it has bought Commerce Decisions Ltd for £9.85 million.

Wagon plc, the British engineering group, has asked to have its shares suspended from trading in the wake of the profit warning.

Stocks in WH Smith jumped as the retailer reported a surprise full-year profit increase.

Unions representing pilots for British Airways and Spain's Iberia favour a proposed merger to create the world's third-largest airline, they said on Wednesday.

Eurotunnel , operator of the cross-Channel rail tunnel, reported lower sales in the third quarter of this year as truck and passenger traffic fell, mainly as a result of last month's fire.

Rolls-Royce Group plc has won a propulsion contract with the Royal Navy to power two warships.

EasyJet plc has reported a 22 percent increase in customers, while Ryanair’s customers were up 20 percent.

Global insurance group Beazley has announced four new posts on its board.

Halfords Group plc has announced it will meet its first-half profit forecasts despite the credit crunch.

Global financial group ING plc has announced it will not make an offer for ABN Amro Netherlands.

Whitbread plc, the UK’s largest hotel and restaurant company, has appointed a new board member, effective October 1.

The largest publicly-traded hedge-fund manager, Man Group plc, has reported net performance fees will be down 40 percent from last year.

HSBC plc, Europe’s biggest bank, has announced that it will cut 1,100 jobs worldwide, though around half the losses are expected to be in the UK.

No decisions have yet been made about branch closures or job cuts after Lloyds TSB’s buy-out of HBOS.

Alternative investment management business Man Group plc said it does not expect to suffer from the short-selling ban.

Yell Group plc has scrapped its dividend payments in an attempt to bring down its £3.7 billion debts.

ARC International, the electronic media company, has announced plans to reorganise, saving the company £2 million annually.

The all-share deal between BTG and Protherics plc will create Britain’s largest biotech company.

Europe’s largest home-improvements retailer reported a first-half profits slump of 8.1 percent, despite a sales rise of 11.1 percent.

Barclays plc has confirmed that it is interested in acquiring some of the assets of Lehman Brothers, the recently collapsed investment bank.