SHOPPING for Christmas presents? It is a statement of the blatantly obvious that digital cameras and music players such as Apple’s iPod are going to find their way into many stockings this year.

The main beneficiaries of digital Santa are to be found in Japan and America. Apple, in particular, is on a roll. Its shares have tripled this year, and some analysts are now speculating that enthusiasm for the iPod is spilling over into demand for its new iMac computer, the latest marvel of its industrial design.

British investors can find ways of catching a ride closer to home. Pixology, chaired by Lord Young of Graffham, is a promising company that provides software to turn digital images into photographs. It is powering in-store printing kits for an impressive array of retailers, including Jessops, Tesco and Boots, and has a partnership with Nokia, which is set to become the world’s biggest camera firm.

At 139p, Pixology shares have recovered strongly after falling below 100p earlier in the year. But there could be much more to come if this small company can hang on to its early leadership in a burgeoning sector.

Apple’s success is a boon for Wolfson Microelectronics, the chip company which, like Pixology, floated just over a year ago. Wolfson had to issue a profit warning in October after a slowdown in the DVD market, but is being bailed out by the iPod. Apple is responsible for about 10% of Wolfson’s business, and iPod sales more than doubled in the last quarter alone.

With Sony about to launch its portable PlayStation next week, some are wondering whether Wolfson has secured another important new customer for its chips. Now that really would be a nice Christmas present.

Rentokil Initial

ALL the actions being taken by Brian McGowan, chairman and acting chief executive of Rentokil Initial, show the £2.58 billion support- services group will be rebuilt around hygiene and security. When the new chief executive is finally recruited, it won’t take him long to read the signposts.

McGowan is positioning the company for a big shake-out of underperforming operations. But internally the cultural changes, since the forced departure of Sir Clive Thompson, are already in full swing.

At Rentokil’s annual director conference the event has traditionally ended with a formal dinner. Directors instantly knew where they were in the pecking order by a quick look at the seating plan. If you sat below the salt you were on the way out.

McGowan has changed all that. This time there was beer and wine on the table and a seven-course Chinese meal. After every course the top seven directors changed table. To outsiders it may seem minor, but internally the change is immense.

Now this has to be translated into profitability and that is going to take time. The share price is just 8p off a year low of 135p and investor sentiment will be driven by the calibre of the incoming chief executive.

Citywire reveals secret City deals

FEARS of a housing-market slowdown have driven shrewd investors out of Redrow. Despite the housebuilder’s solid reputation, Old Mutual star Dan Nickols, who has a Citywire AA- rating, and the top-performing Aberforth team sold out last month. Nickols sold the Old Mutual UK Select Smaller Companies fund’s 360,000-share stake and the Aberforth team sold all 1.5m shares held between the Aberforth UK Small Companies fund and the Aberforth Smaller Companies investment trust.