Aug. 28--FUND manager F&C Investments today said it had cut back its investments in the Russian stock market due to the Georgia conflict. F&C said the crisis had unnerved foreign investors after years of growing confidence. "These tensions with Russia's neighbours and the WestÖhave significantly raised the risk profile for investors in recent weeks," said Gareth Morgan, F&C's Russian specialist.

CAR dealer Pendragon today joined its rivals in reporting poor sales and profits as cash-strapped motorists held off buying a new car. The company, which has already cut about 500 jobs this year, said profits in the six months to 30 June slid to £21.1 million from £33.3 million a year earlier. Meanwhile, Toyota lowered its forecasts for car sales in Europe and said it will cut production at Burnaston in the UK.

METALS engineer Bodycote is selling its testing division for £417 million. The business is being bought by New York buyout firm Clayton Dubilier & Rice and Bodycote plans to return about £260 million of the proceeds to shareholders. The unit checks the quality of products for clients in the materials, food and health industries. The firm will put £18 million from the sale into the group's pension fund.

INDEPENDENT News & Media faces a cash crisis, and could have to sell its two top titles -- The Independent and The Independent on Sunday -- Irish entrepreneur Denis O'Brien warns. O'Brien's comments, the next salvo in his war of words with INM boss Sir Anthony O'Reilly, come as the group saw profits halve to £3.7 million in the last six months. O'Brien has a 25 percent stake in the company. O'Reilly declined to respond.

UK Coal, whose property division was its mainstay in recent years, is now benefiting from the high coal price. A change in its mining schedule hit profits in the first half, where it reported a £9.9 million loss against a £40.6 million profit a year earlier, but the move will bear fruit in the second half. It is on track to make an £80 million profit.

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