Editor: Pat Williams. E-mail pwilliams@creditman.co.uk
John Arnold. E-mail jarnold@creditman.co.uk
Site: Business Credit Management UK
URL: http://www.creditman.co.uk
Issue: 121
Dated: 1 August 1999
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKMANUFACTURERS' OPTIMISM SHOWS MODEST IMPROVEMENT - CBI SURVEY
Manufacturers' business confidence has improved slightly since April, the first rise in nearly two years, although from a low base, according to the Confederation of British Industry's Quarterly Industrial Trends Survey out last Tuesday. Optimism about export prospects over the year ahead deteriorated a little further, although the decline was the least since January 1997.
The survey shows that 21 per cent of firms are more optimistic about the general business situation than they were four months ago while 16 per cent are less optimistic, giving a positive balance of plus 5 per cent. This compares with negative balances of minus 6 per cent in April and minus 40 per cent in January. Consumer goods producers report a significant increase in optimism.
Manufacturers report that total new orders fell for the fifth consecutive survey, but at the slowest rate since July 1998 with a balance of minus 19 per cent, up from minus 23 per cent in April and minus 35 per cent in January. The slower fall in total orders reflects a less marked decline in both export and domestic demand.
Export orders fell at the slowest rate since January last year, with a balance of minus 24 per cent of manufacturers reporting export orders falling, this compared to minus 33 per cent in April and minus 36 per cent in January.
Domestic orders turned down moderately with a balance of minus 17 per cent of manufacturers reporting falling orders, compared with minus 23 per cent in April and minus 33 per cent in January. Over the next four months the decline in export and domestic orders is expected to bottom out, though similar expectations in April were not realised.
Manufacturing output fell more rapidly than had been expected, but the decline was the smallest since July last year. Over the coming four months the decline in output is expected almost to come to a halt. The consumer goods industries are again more upbeat, expecting output to rise, while capital goods producers expect further declines.
Nick Reilly, Chairman of the CBI's Economic Affairs Committee and Chairman and MD of Vauxhall Motors, said: "The survey suggests that manufacturers' confidence is improving but from a very low base. The improvement is most noticeable among consumer goods producers, which may reflect the cumulative impact of the base rate cuts since last October. But exporters have had another difficult few months and export order books remain weak, although the decline in orders is expected to bottom out. Deflationary pressures are still significant, squeezing profit margins and triggering further manufacturing job losses.
"We believe that the series of cuts since October 1998 has brought interest rates to the right level for now, given the evidence of a gathering recovery in the domestic economy. The main problem for manufacturers is the continuing pain from sterling's strength, with tight margins adversely affecting investment plans. If inflation pressures prove as weak as our present forecast, the next move in interest rates should still be downward later this year, sooner rather than later if the pound's recent fall against the euro is reversed."
Domestic prices continued to fall sharply and at a much faster rate than unit costs, suggesting that domestic profit margins have again been squeezed. Expectations are for unit costs to fall steadily while domestic prices fall at a more moderate rate. Export prices have now fallen continuously since July 1996.
Stocks of raw materials, work in progress, and finished products have all been run down appreciably. This downward trend is expected to continue, but at a more moderate rate. The percentage of firms working below capacity fell to 58 per cent from 66 per cent in the April survey, suggesting that capacity utilisation is close to its long-term average. Plant capacity has also risen as a factor likely to limit output over the coming four months and it is now in line with its long term average.
Manufacturers' plant and machinery investment intentions for the year ahead are weak, but have fallen to the least extent since negative balances were first recorded in April 1998. Uncertainty about demand, as cited by 54 per cent of firms, has fallen since April as the most important factor limiting investment plans over the year ahead.
Employment fell sharply, though less quickly than reported in April. Expectations are the least negative for a year but point to further job losses to a lesser extent than in the last four months.
ECONOMIC RECOVERY IN SIGHT BUT MANUFACTURING STILL FRAGILE
The UK economy is now on track towards recovery, with a return to growth in manufacturing for the first time in a year, and with firms in all sectors reporting a brighter outlook for jobs, according to the latest quarterly economic survey from the British Chambers of Commerce (BCC), published Thursday 15 July 1999.
The survey, the largest and most detailed of its kind, covering some 8,801 UK firms, shows that after three quarters of contracting sales, manufacturing firms report positive growth in the UK market, with the indicator rising at its fastest rate in the history of the survey. The sharp decline in the sector’s overseas sales also eased significantly last quarter, but firms continue to suffer net export losses.
The survey also shows that service firms report improved sales at home and overseas, with growth picking up at a steady pace, boosting firms’ confidence about their future sales and jobs outlook.
However, fierce competition in both sectors is keeping inflationary pressures subdued, with the number of firms intending to raise prices over the next three months now at its lowest for two years. Investment plans in both sectors have also fallen to levels well below average for the survey.
Dr Ian Peters, Deputy Director-General of the British Chambers of Commerce said:
"Manufacturers now have recovery within their sights. Interest rate cuts since the Autumn have eased considerably the pressure and the effects are now feeding through. However, the exchange rate remains a major concern with exporters still struggling to recover lost ground overseas.
“Inflationary pressures remain negligible with tough competition keeping prices in check. The Bank of England should maintain interest rates at their current level and allow time for manufacturers to get a firm grip on recovery.“
The survey shows business confidence in the economy remains buoyant, with manufacturing firms reporting that the outlook has improved considerably since the trough in the third quarter of 1998. Service sector firms report steady growth in confidence, with the indicator now at its best since this time last year.
Manufacturers’ cash-flow has deteriorated further, though there are signs that the decline may have bottomed out. The cash-flow position in the service sector has improved significantly, with firms reporting the first positive change since the end of 1997.
Despite rising levels of employment, recruitment difficulties remain relatively subdued, particularly in services where the indicator is at its lowest for two years. In both sectors, price pressures from pay settlements are also at their lowest since the end of 1997.
Interest rates have become less of a concern for firms in both sectors; however a majority (57%) of manufacturers remain concerned about the exchange rate.
THE BCC’s QUARTERLY ECONOMIC SURVEY established since 1985, regularly features in the Bank of England's Inflation report and Quarterly Bulletin and is a key barometer used by the Bank's Monetary Policy Committee in their interest rate deliberations.
The survey for the 2nd quarter 1999 covers 3,534 manufacturers (2,189 / 62% - exporters) and 5,267 service sector firms (1,517 / 29% - exporters). The sample included 271 large companies (those employing more than 500 staff). The UK’s 60 Approved Chambers of Commerce surveyed companies by postal questionnaire by over the period 1 June to 23 June 1999.
Copies of the Quarterly Economic Survey are available from the BCC, Manning House, 22 Carlisle Place, London SW1P 1JA, price £60 (single copy) or £200 (annual subscription).
Results for the 3rd quarter 1999 will be published on Thursday 14 October 1999 at 11:00am.
We have learned this week there has been a 'restructuring' within the Corporate Recovery department of Ernst & Young resulting in redundancies and credit circles have been cancelled.
The announcement says "that due to the restructuring within the Corporate Recovery department of Ernst & Young, it is felt that all future credit circles should be cancelled."
This news follows fast on heals of the redundancies earlier this year in the insolvency division of PricewaterhouseCoopers.
CIVIL JUSTICE COUNCIL ADVISES LORD CHANCELLOR TO REVIEW DISPROPORTIONATE ALLOCATION FEE IN SMALL CLAIMS CASES IN THE CIVIL COURTS
The Civil Justice Council on the 29 July urged the Lord Chancellor to review a controversial aspect of the new civil court fee structure.
The 'allocation fee', payable in all defended cases for case management directions, is fixed at £80, regardless of the value of the claim. The combined effect of the issue fee and the allocation fee means that the cost of pursuing any defended claim for less than £500 is more than a quarter of its value and, for claims under £200, more than half.
With the benefit of three months' experience of the new civil justice system, emerging evidence suggests that people are being deterred from pursuing their rights in the courts because of the fee. In a letter to the Lord Chancellor, the Civil Justice Council strongly advises Lord Irvine to reconsider the allocation fee, both in terms of the principle of applying it to very low value claims, and to the disproportionate amount being charged. The Council feels that it conflicts with the Lord Chancellor's policy, which the Council endorses, of improving access to justice, particularly for those of modest or moderate means.
The Civil Justice Council was established under Section 6 of the Civil Procedure Act 1997. Chaired by Lord Woolf, the Master of the Rolls, its statutory remit is to:
The new fees structure was introduced on 26 April 1999 with the first phase of civil justice reform.
County Court Fees are governed by the County Court Fees Order 1999 (SI 1999/689 L6) - made under section 128 of the County Courts Act 1984
GOVERNMENT COMMITTED TO LIMITED LIABILITY PARTNERSHIPS BILL
The Government is fully committed to introducing the Limited Liability Partnerships Bill, DTI Minister of State Ian McCartney stressed last week as he published draft regulations for consultation, alongside the draft Bill to assist the business community.
In a written answer to a Parliamentary Question from David Taylor MP (North West Leicestershire), Mr McCartney said:
"The Government is fully committed to introducing the Limited Liability Partnerships Bill as soon as possible. I am aware that the professional business community are keen to see progress on this, and I can assure them that the Bill will be introduced as soon as the Parliamentary timetable permits.
"To assist the business community, and to enable them to see the draft Bill as we expect it to come before the House, I am publishing it in draft for the second time, along side revised draft regulations. The regulations are being published for consultation, and show changes made following the initial consultation in September 1998."
The Limited Liability Partnerships Bill will allow firms the flexibility to incorporate with limited liability while organising themselves as partnerships - subject to provisions on financial disclosure, fraudulent trading and winding-up. It is likely to be of particular interest to professional firms such as lawyers, accountants, actuaries, and those in the construction industry such as surveyors and architects.
The draft Bill reflects comments made by both consultees and the House of Commons Trade and Industry Committee following its publication in September 1998. This includes the policy change which removes the restriction on eligibility to regulated professions. Thus, limited liability partnerships will be available to two or more persons carrying on any trade or profession.
The deadline for comments on the draft regulations is 1 November 1999.
Consultation documents on Limited Liability Partnerships were published in February 1997 and September 1998.
The September 1998 consultation document included the first draft of the Bill. This was subject to pre-legislative scrutiny by the House of Commons Trade and Industry Committee, which published its Report in February 1999 (HC 59). The Government's response to that report was published in June 1999 (HC 529). Both these documents are available from The Stationery Office.
Copies of the consultation document (URN 99/1025) can be obtained from the Company Law and Investigations Directorate, 4101, 1 Victoria Street, London SW1H 0ET, telephone 0171 215 0232, fax 0171 215 3851.
Copies are also available on the LLP web page (part of the DTI website): www.dti.gov.uk/cld/llpbill/index.htm
ECGD FINANCING HELPS LEICESTER COMPANY SECURE MAJOR CHINESE ORDER
Brian Wilson, Minister for Trade, last week announced that a finance package underwritten by ECGD had helped Leicester-based ALSTOM Automation International Ltd complete an order to supply the Chinese port of Tianjin with a complete coal-handling export terminal.
The contract forms the first phase of a project by China National Technical Import & Export Corporation and Tianjin Harbour Construction Company to develop the coal-handling capacity of China's second largest man-made port.
ALSTOM's contract is for the supply, installation and commissioning of a fully automated 10 million tons of coal per annum facility to cover, amongst other things, wagon unloading, stockpiling and ship loading. It is seen as an important development for ALSTOM Automation's handling systems business and will help secure project, design and manufacturing jobs in the UK over the next few years.
Mr Wilson said:
"ALSTOM have worked hard to win this important order and bring valuable work back to the Midlands. I am delighted that ECGD have been able to play a part in this success."
An ECGD-backed US$34.3 million loan, from HSBC Investment Bank plc and the London branch of Bank of China to China Construction Bank, will help finance the contract.
CHAMBERS OF COMMERCE TAKE BETTER PAYMENT PRACTICE CAMPAIGN ON THE ROAD
The British Chambers of Commerce is taking the Better Payment Practice Campaign direct to the business community with the start of a nation-wide seminar programme to help businesses improve credit management. Local Chambers of Commerce are hosting seminars across the UK to equip companies with the skills and techniques to get more invoices paid on time.
The seminars are designed to provide help and advice on minimising late payments. They cover the whole process from credit checking and contract terms, to collection techniques and taking third party action. Particular reference is made to the implications of the Late Payment of Commercial Debts (Interest) Act 1998, and also the Woolf Reforms - which provide substantial improvements to the litigation process but also require companies to submit full and clear documentation to support any claim.
Small Firms Minister, Michael Wills, said in support of the initiative:
" The Better Payment Practice Seminars are a clear example of how the BPPG is tackling the problem of late payment at a grass roots level. Owner managers have many demands on their time. The seminars show how routine procedures can be put into place to ensure that sales are realised into cash more quickly"
Dr Ian Peters of the British Chambers of Commerce and member of the Better Payment Practice Group, added:
" Late payment is endemic in the UK and is a business killer. Trade credit is, at the end of the day, an unsecured loan. Businesses should approach it as such. We urge companies to attend the seminars, learn the ways in which they can improve credit management and therefore improve their long-term chances of commercial success."
The two presenters at the seminars, Michael Barry and Tony Ash are very experienced trainers, accredited by the Institute of Credit Management. Members of the Better Payment Practice Group and the campaign sponsors, Alex Lawrie, Dun and Bradstreet, EULER Trade Indemnity and Grant Thornton will also be in attendance to talk to delegates about the campaign.
To reserve a place, contact Jenny George at the British Chambers of Commerce (BCC) on 0171 565 2000, or send an email to her at j.george@britishchambers.org.uk
Details of the seminars will be kept up to date on the BCC website: www.britishchambers.org.uk
A full list of signatories to the Better Payment Practice Code can be found on the campaign website; www.payontime.co.uk
For more details contact Jenny George at the British Chambers of Commerce (BCC) on: 0171 565 2000, or j.george@britishchambers.org.uk
On 23 July 1999 the Secretary of State for Trade and Industry presented petitions in the High Court to wind up the above companies in the public interest following an investigation into Universal Wealth Register ("UWR") under Section 105 of the Financial Services Act 1986 and an investigation into FTT Services Limited under Section 447 of the Companies Act 1985 (as amended).
At the same time on the application of the Secretary of State the Court appointed the Official Receiver as provisional liquidator of both UWR and FTT Services Limited pending the hearing of the petitions on 1 September1999. The Secretary of State has also applied for injunctions under the Financial Services Act 1986 to stop four individuals and a company, who are known to have participated in the promotion and management of the scheme, from engaging in a similar business.
UWR offered an investment scheme world-wide over the Internet offering 100% returns in four to six weeks and a free lottery. FTT has promoted banking facilities on behalf of an offshore bank and administers the banking on behalf of UWR.
UWR which is not a registered company currently operates through an accommodation address at The Mill Business Centre, Crosses Green, Cork Republic of Ireland and on the Internet at wwwNetworkgold.com/uwr.htm
The registered office of FTT is at Iver House, Middlegreen Estate, Middlegreen Road, Slough, Berks SL3 6DF, the address of an accountant.
The petitions were presented under S 124A of the Insolvency Act 1986.
UWR is being wound-up as a limited company under the Insolvent Partnerships Order 1994.
All public enquiries concerning the companies should be made to:
The Official Receiver
21 Bloomsbury Street
London WC1B 3SS
*** Forthcoming Creditors Meetings ***
Contributed byhttp://www.insolvency.co.uk
For more detailed information and ALL the British Isles insolvency's (liquidation's, receiverships, administrations, dividends, creditors) please visit http://www.insolvency.co.uk
From 02/08/99 to 10/08/99 Number of Creditor meetings : 168 Section Company Time Venue 138 Scotland - Interim Liquidator calling Creditors Meeting 02/08/99 Bathgate Citizens Advice Bureau 11.00 am Edinburgh West Lothian Citizens Law Centre 12.00 pm Edinburgh 04/08/99 Caledonian Leisure Homes Ltd 11.00 am Ayr John Thomlinson Ltd 11.00 am Glasgow Pied Piper (Playcare Centres) Ltd 10.00 am Paisley 05/08/99 MD Marine Ltd 10.00 am Fraserborough 10/08/99 Weatherwise (Glasgow) Ltd 10.00 am Glasgow 23 Administrator Calling a meeting of Creditors 05/08/99 Premier Contracts (Midlands) Ltd 10.00 am Birmingham 06/08/99 Inn 4 Leisure Ltd 12.00 pm Derby 10/08/99 Etcetera Reject Shops Ltd 11.00 am Manchester 48 Receiver calling unsecured Creditors Meeting 03/08/99 Contract Supliers (Harrogate) Ltd 11.00 am Leeds 04/08/99 Casper (UK) Ltd 10.30 am London 05/08/99 Ally Capellino Ltd 10.00 am London Hadrian PMC International Ltd 11.00 am LOndon 06/08/99 Avon Logistics Ltd 11.30 am Bristol Avonline Communications Ltd 11.00 am Bristol Avonline Group Ltd 10.30 am Bristol Lawrence Technical Mouldings Ltd 11.30 am Sheffield Mettchley International Ltd 10.00 am London 09/08/99 International Plant Exchange Ltd 10.30 am Leeds RHL Holdings Ltd 10.30 am Leeds Repower Holdings Ltd 10.30 am Leeds Repower Mining International Ltd 10.30 am Leeds Silverthorn Services Ltd 10.30 am Leeds Tursdale Engineering Ltd 10.30 am Leeds 10/08/99 Heathcote & Ivory Ltd 10.30 am Reading 84 N. Ireland - Creditors Voluntary Liquidation 04/08/99 CSM Seeds Ltd 12.30 pm Belfast 95 Members converting to Creditors Voluntary Liquidation 09/08/99 Choice Business Systems Ltd 10.45 am Oxford Choicearrive Co Ltd 10.30am Oxford Cyrus Global Resourses Ltd 11.00 am Oxford Cyrus Information Management Ltd 12.45 pm Oxford Dallington Investments Ltd 12.00 pm Oxford Decision Publishing International Ltd 10.15 am Oxford Malinbrook Ltd 12.15 pm Oxford Millman Communications Ltd 11.45 am Oxford Richbell Assets Ltd 01.00 pm Oxford Richbell Capital Ltd 01.30 pm Oxford Richbell Group Finance Ltd 11.30 am Oxford Seckforde Communications Ltd 10.00 am Oxford Tavistock Investments Ltd 01.15 pm Oxford Versegrade Ltd 12.30 pm Oxford Verulam Holdings Ltd 11.15 am Oxford 98 Creditors Voluntary Liquidations 02/08/99 Abbott Ensor Partnership Ltd - The 03.30 pm Sileby Advanced Contract Flooring Ltd 10.30 am Reading Bowyard Insurance Services Ltd 10.15 am Pinner Carousel Services Ltd 11.00 am London China Jazz Worldwide Plc 11.30 am London City Secretarial (UK) Ltd 11.30 am Leeds Copyshop Reprographics Ltd 11.00 am Aberdeen Freeliner Ltd 11.00 am London Major Bakeries Ltd 03.30 pm Eastbourne Ntech Ltd 12.00 pm London Ons International Ltd 03.00 pm London Quicklink (UK) Ltd 12.30 pm Leeds Quicklink Group Ltd 10.30 am Leeds Reampower Ltd 03.00 pm Northwood UK Campus Computing Ltd 03.00 pm Leicester Waterbridge (1999) Ltd 11.30 am Manchester 03/08/99 Bucklebridge Ltd 03.00 pm Bedford Cable Supports (Midlands) Ltd 12.00 pm Walsall Contrast Fashions Ltd 02.30 pm London DCE Communications Group Plc 10.30 am London Delta Office Supplies Ltd 11.00 am Sutton Eurotech Development Ltd 03.00 pm Bedford Global Adventure Ltd 11.00 am Lancaster Goodiebake Savoury Products Ltd 02.30 pm Gerrards Cross Hackney Removals Ltd 12.00 pm London Jacqueline Taylor Design Ltd 12.00 pm Manchester K B R Ltd 11.30 am Manchester Main Construction Services Ltd 11.30 am London Mains Leasing and Hiring Ltd 11.00 am London Michael Butler Leather Goods Ltd 11.00 am Manchester Montria Ltd 12.00 pm London PNP Ltd 11.00 am Lutterworth Total Comms Ltd 12.00 pm London Trade Price Music & Video Ltd 11.00 am London Victoria Exchange Trading Co Ltd - The 11.30 am Manchester 04/08/99 Amadeus Business Training Ltd 11.00 am Birmingham Brightace Investments Ltd 02.00 pm London Cranbourne Tours Ltd 11.30 am London Crowline Vehicle Refinishing Ltd 10.15 am London Decor-Elec Ltd 10.15 am Kingston-u-Tham E Dockwray Ltd 12.00 pm Newcastle-u-Tyn Excel Contract Engineering Ltd 12.00 pm Cardiff John King & Sons (Grimsby) Ltd 10.30 am Sheffield Keytown Publishing Ltd 11.30 am Preston Knightsbridge Cycles Ltd 12.00 pm London L C Construction Co Ltd 12.30 pm Bristol MHG Financial Services Ltd 11.00 am Norwich MWB Roofing Sales & Distribution Ltd 11.00 am London Minster Cabinet Ltd 11.00 am Birmingham Ocean Recognition Ltd 12.00 pm London Prosec PR Ltd 10.30 am Bingham R M B Landscaping Ltd 12.00 pm Bristol Rocke Developments Ltd 11.30 am South Croydon Service Development Ltd 11.30 am Leicester South East Projects Ltd 10.30 am Hornchurch Spring Medical Ltd 03.00 pm London Topguys & Cecily Ltd 11.30 am London Wire Mesh & Welded Products Ltd 11.15 am Sheffield 05/08/99 A T Engineering Services Ltd 11.00 am Glasgow Alpha Vehicles Ltd 02.30 pm London Aspect Traders Ltd 11.00 am Rotherham Bakers of Woolwich Ltd 11.00 am Barnet Beechmore Properties Ltd 02.30 pm London Cerf Graphics Ltd 11.30 am London Coastway Corporation Ltd 02.30 pm Plymouth Colour Crew Ltd - The 11.30 am Watford Derwent Logistics Ltd 12.00 pm Nottingham Discount Card Shops Ltd 10.15 am Bately Field Brickwork Ltd 11.00 am Southend-on-Sea G & S Stacey Build & Civil Eng Cont Lt 12.00 pm Cardiff Gubb & Hauff Ltd 10.30 am Haywards Heath Hallmart Ltd 12.00 pm London J Davie (Electrical Contractors) Ltd 11.00 am Dundee Jays Structural Construction Ltd 10.45 am Leeds Lombray Ltd 11.30 am Liverpool London & Metropolitan Comm Ltd 03.00 pm London Meridan Leisure Developments Ltd 11.30 am Cardiff Micrograf International Ltd 11.00 am London Mother India (Edinburgh) Ltd 10.45 am Edinburgh Orion Marine (Falmouth) Ltd Truro Peter Duncan Ltd 11.00 am London Premier Bathroom Co (Grays) Ltd 11.00 am London Raza's (UK) Ltd 11.30 am Darwen Redcar Roller Shutters Ltd 10.30 am Yarm Shannon Security & Cleaning Ltd 11.20 am London Silvergate Developments Ltd 12.00 pm Royston Stirling Country Pine Ltd 11.00 am East Linton Style Cut Ltd 11.00 am London Tenco Textiles Ltd 12.00 pm London Thorn Park Body Repairs Ltd 10.45 am PLymouth Towerfix Ltd 11.30 am Manchester UK Group Ltd 02.00 pm Halesowen Vynecrest Ltd 01.00 pm London 06/08/99 Alexanders Furnishings (Runcorn) Ltd 11.00 am Cheshire Bells Bristol Ltd 11.00 am Bristol Call Trak Systems International Ltd 11.00 am Harrow Frylane Ltd 02.00 pm Somerton Goodarea Enterprise Ltd 10.30 am Winchester Green Man Carpenters Ltd 02.30 pm Eastbourne J L Dodd Ltd 10.30 am Loughton Langfeld & Ashley Inter Exec Search Lt 10.15 am Wadebridge Lifezyme International Food Enter Ltd 11.30 am Swansea M J C Technical Ltd 10.30 am Droitwich Spa Monaopen Ltd 04.00 pm London Norma Jean (MGF) Ltd 11.00 am London P & E Builders Ltd 02.30 pm Birmingham Paris Data Ltd 11.00 am Manchester S & K Insulations Ltd 12.00 pm Birmingham Stanco (UK) Ltd 12.00 pm Harrow W R Goff Ltd 10.30 am Brixham 09/08/99 C C & D Gill (Transport) Ltd 12.00 pm Hertfordshire David Horton Associates Ltd 11.00 am Birmingham IT Projects Ltd 11.00 am Manchester International Computer Equipment Ltd 11.00 am Southampton Merriott Mouldings Ltd 11.00 am Taunton Sandmartin Ltd 12.00 pm London United Asphalt (Gloucester) Ltd 02.30 pm Halesowen 10/08/99 Asena Ltd 04.00 pm London Britannia Catering Equipment Ltd 02.30 pm London Edition Ltd 12.00 pm London Gentechno Ltd 12.30 pm Birmingham Instantscore Ltd 03.00 pm Manchester Intertech Technologies Ltd 11.00 am London Midnight Holdings Ltd 11.30 am London Offshore Production Management Ltd 03.30 pm London Schweisstechnik (Int) UK Ltd 11.30 am Aldridge
TW LW TW LW
USA 1.5942 1.5763 Canada 2.4114 2.3735
Austria 20.6269 20.7226 Portugal 300.530 301.920
France 9.8328 9.8785 Belgium 60.4700 60.7508
Finland 8.9130 8.9541 Italy 2902.49 2915.97
Germany 2.9324 2.9454 Sweden 13.2071 13.2142
Holland 3.3033 3.3187 Switzerland 2.3959 2.4176
Spain 249.300 250.573 Ireland 1.1806 1.1861
Australia 2.4715 2.4243 Denmark 11.1615 11.2089
Hong Kong 12.3727 12.1799 Euro 1.4991 1.5060
Africa Com 9.7797 9.6425 Saudi Arabia 5.9781 5.9120
India 69.0720 68.2065 Malaysia 6.0752 5.9900
Singapore 2.6846 2.6744 Norway 12.5278 12.4146
Japan 185.470 183.458
TW This week LW Last week.
Cadbury Schweppes announced pre-tax profits of 252 million pounds, on turnover of 1,890 million, for the twenty four weeks ending 20th June 1999. Earnings per share stand at 8p.
Cookson announced pre-tax profits of 51.8 million pounds, after exceptional charge, on turnover of 851.3 million, for the six months ending 30th June 1999. Earnings per share stand at 5.2p.
BRITISH AIRWAYS and AMERICAN AIRLINES reportedly withdrew their three-year-old plan to form an alliance, because American regulators were unwilling to give an antitrust exemption. The future of Oneworld, a broader alliance built round BA and AA, may now be in doubt.
Source - The Economist
Last week's extension of DAEWOO's debts caused the Seoul stockmarket to plunge as investors reacted nervously to the risk that South Korea's second-largest chaebol might go bust. But the market recovered after the government put Daewoo's debt restructuring in the hands of its bankers, signalling a long-awaited commitment to corporate reform.
Source - The Economist
NTL, a British cable operator, agreed to buy the residential-cable business of CWC, which is controlled by Britain's Cable & Wireless, for 6.3 billion pounds ($10 billion) and will assume debt of 1.9 pounds billion. NTL, backed by France Telecom, which is to inject $5.5 billion into the firm in exchange for a 25% stake, will become Britain's largest cable-TV provider and a major competitor to British Telecom.
Source - The Economist
BRITISH TELECOM took advantage of a change in the rules that, until January, had stopped it from owning more than 60% of any British mobile-telephone company. BT will acquire the 40% of CELLNET that it does not own already, from Securicor, for 3.15 billion pounds ($5 billion).
Source - The Economist
France's EDF, Europe's largest power company, is bidding to build power plants for two British companies, ICI and Kimberley Clark, worth nearly 100m pounds ($159m). British power companies that are also in the running complain that EdF is state subsidised and that they are excluded from the French market as its government drags its heels over implementing European energy directives.
Source - The Economist
SHIRE PHARMACEUTICALS, a British speciality-drug company, is paying $900m to take over ROBERTS PHARMACEUTICAL, an American company, to create Britain's fourth-biggest drug company.
Source - The Economist
RECKITT & COLMAN and BENCKISER of the Netherlands are merging to create the world's largest domestic-cleaning products firm. So long as shareholders and regulators approve the deal, and no other bidders emerge, the new company will be Reckitt Benckiser, with a market capitalisation of around 5.3 billion pounds ($8.4 billion).
Source - The Economist
BARCLAYS, Britain's second-largest bank, appointed a Canadian, Matthew Barrett, as its chief executive, ending an eight-month interregnum. The last appointee, Michael O'Neill from America, resigned for health reasons on his first day in the job.
Source - The Economist
MERGER CLEARANCE
The Secretary of State for Trade and Industry has decided, on the information at present before him, and in accordance with the recommendation of the Director General of Fair Trading, not to refer the following merger to the Monopolies and Mergers Commission under the provisions of the Fair Trading Act 1973:Proposed acquisition by Hammerson Plc of Euston Square Estates
Proposed acquisition by Express Dairies Plc of the UK milk operations of Glanbia plc (formerly Avonmore Waterford Group plc)
Acquisition by Nuffield Hospitals of Christchurch Park Hospital
Acquisition by Havas (UK) plc of Barbour Index plc
Acquisition by Cookson Group plc of assets of DII Group Inc, namely the IRI International business
Proposed acquisition by Gleadway Plc of Vymura Plc
Proposed merger between Celltech plc and Chiroscience Group plc
Acquisition by Maiden Outdoor Advertising Limited of Billboard Advertising Limited
COMPETITION COMMISSION'S INVESTIGATION OF NTL'S BID FOR NEWCASTLE UNITED NOT TO BE PURSUED
On 9 April Stephen Byers, Secretary of State for Trade and Industry, referred the acquisition of Newcastle United by NTL to the Competition Commission. Following NTL's announcement on 21 April that it did not intend to go ahead with the acquisition, the Competition Commission formally laid aside the reference of the proposed merger, and consequently did not reach any conclusions on its likely effect.
The Competition Commission considered that it was nevertheless under a legal obligation to consider NTL's existing 6.3% shareholding in Newcastle United. It also considered the irrevocable commitment which NTL had entered into with Cameron Hall Developments, which would have enabled NTL to acquire Cameron Hall's majority shareholding in Newcastle United.
This irrevocable commitment has now lapsed, and the Competition Commission therefore concluded that it did not need to pursue the matter further.
The Secretary of State has published the Competition Commission's brief report setting out these conclusions.
The Competition Commission made no findings about the effect on the public interest if NTL had continued to hold an irrevocable commitment to purchase shares in Newcastle United, or if NTL had gone on to acquire a majority shareholding in Newcastle United.
If NTL were to launch a new bid for Newcastle United, this would be considered by the competition authorities in the normal way.
On 9 April 1999 the Secretary of State for Trade and Industry referred the acquisition of Newcastle United by NTL to the Competition Commission for investigation and report under the provisions of the Fair Trading Act 1973.
On 21 April NTL issued an announcement that it did not intend to make the offer for the Newcastle United shares in respect of which it held an irrevocable undertaking to accept given by Cameron Hall Developments Limited, the majority shareholder in Newcastle United.
Two references to the Competition Commission had been made by the Secretary of State. The first reference concerned arrangements in progress or in contemplation which, if carried into effect, would result in the creation of a merger situation. This reference was laid aside by the Competition Commission, with the consent of the Secretary of State, on 24 June 1999. The second reference concerned a possible existing merger situation. Such a situation might have arisen from NTL's current shareholding in Newcastle United and its irrevocable option to acquire a majority shareholding. The Competition Commission has no powers to lay aside references of existing merger situations and therefore delivered a short report on this reference to the Secretary of State on 30 June 1999.
In its report the Competition Commission concluded that, given all the circumstances, including especially the termination of the irrevocable commitment and the existence of other major shareholders, they did not believe that at the time of the report NTL was in a position to influence the policy of Newcastle United. The Competition Commission therefore concluded that there was no merger situation qualifying for investigation. They also concluded that, even assuming a merger situation might have existed in the brief period when NTL had the benefit of the irrevocable commitment, they had no reason to believe that any such historic situation now operates or may be expected to operate against the public interest.
Section 83 of the Fair Trading Act 1973 requires the Secretary of State to lay a copy of the report before each House of Parliament and to arrange for the report to be published. Copies of the Competition Commission's report "NTL Communications Corp and Newcastle United PLC: a report on the merger situation" (Cm 4411) are available from the Stationery Office price £3.65. Press copies are available from the DTI Press Office.
Welcoming the publication of the draft e-communications Bill, Peter Agar, Chairman of the Alliance for Electronic Business and Deputy Director-General of the CBI, said:
"We are pleased that the Government has published the proposed e-communications Bill in draft together with its response to the Trade and Industry Committee's report. We now have the opportunity to get the details right and to address remaining concerns during the summer. Thorough but speedy scrutiny is required if this vital legislation is to be enacted without further delay. We need a clear legal framework to ensure business and consumer confidence in e-commerce, and to allow the UK to exploit the full potential of the digital economy.
"We welcome the Government's recognition that over-regulation would stifle e-commerce. The Government has listened carefully to business concerns. Mandatory key escrow, additional regulation on the liability of trust service providers, and government control of unsolicited e-mail are now quite clearly off the table.
"The proposed procedures on electronic signatures and electronic writing are central to creating certainty and confidence in electronic transactions."
The Alliance is encouraged that the Bill recognises the need to give electronic signatures and electronic writing the same legal standing as hard copy signatures and writing, and that it brings the UK closer to meeting its international obligations. The Alliance also welcomes the power to modify restrictions in other legislation, which require the use of paper. However, the current draft does not set a timetable for ministers to review such restrictions, and we will continue to press for target dates to be set.
The Government has clearly signalled that it would prefer effective self-regulation of trust service providers. The Alliance is currently putting together a business and consumer group to develop an effective framework for self-regulation - which will provide user confidence and the flexibility to meet the challenges of rapidly changing markets. Part 1 of the draft Bill will not be required: indeed if enacted it could impose a dangerously inflexible approach which would drive e-commerce services offshore and do little to protect users.
With its welcome commitment to abandon proposals for mandatory key escrow the Government has clearly recognised that e-commerce users need access to strong encryption. But the Alliance fully recognises that encryption raises serious concerns for law enforcement. Alliance member companies are already working in partnership with the Home Office to ensure that effective law enforcement is not jeopardised by these new technologies.
The draft Bill proposes to complement this partnership approach with regulations for access to keys where encrypted information has been obtained under warrant. These proposals need very careful scrutiny. The Alliance wishes to ensure:
Mr Agar concluded:
"The Government clearly intends that there should be further consultation on the details of the Bill. This approach is welcome. The Alliance will play a full part in these discussions and will seek to involve other political parties in the debate. Speedy resolution of remaining concerns is vital if the UK is to play a leading role in the explosive growth of e-commerce."
FREESERVE
Britain's appetite for Internet shares is as voracious as America's, it seems. Shares in the heavily oversubscribed initial public offering of FREESERVE, Britain's biggest Internet service provider, were priced at 1.50 pounds ($2.38) at the start of trading. They reached a high of 2.22 pounds before slipping back, to end the first day at a premium of 37%.
7 September Thames Valley branch of the ICM Newbury College ICM Open Evening 5.30 - 8.00pm For those wishing to study for the exams 13 September Wessex Branch meeting of the ICM Clair Sandbrook - A day in the Life of a Sheriff & Woolf Update 13 September Norfolk branch of the ICM 6.30 for 7.00pm The Euro Today Presentation by Larking Gowen, Chartered Accountants and visit from the Chairman of Council Larkin Gowan, King Street, Upper King Street, Norwich Further details can be obtained from Ian Austin on 01603-443692 14 September Thames Valley Branch of the ICM 'Weekenders Classic' Presentation 6.45 for 7.15pm Presentation by Joan Heather - a virtual weekend away, showing how to dresss up or down to suit different occaisions with the minimum of baggage Honeywell Control Systems Ltd Honeywell House Arlington Business Park Bracknell Buffet 15 September Essex branch of the ICM Guided tour of Stansted Airport 7.00pm sharp Further details can be obtained from David Galliers on 01268-722700 15 September Merseyside & North Wales Branch of the ICM Annual Conference Business Fraud 10.00am - 5.00pm Series of speakers and an exhibition area For further information telephone David Browne on 0151-242-7742 or Lynne Mills on 0151-632-2938 21 September 1999 London Branch of the ICM Sir Kenneth Cork Memorial Lecture 6.00 pm for 6.30 pm The Royal Overseas League, Park Place, St. James Street, London SW1 Speaker is Ian Duncan-Smith MP For further information phone Ron Johnston: 0181 2613242 or E-Mail ron.johnston@singeruk.com 20 to 22 September Creating the Edge in Competitive Markets Annual Experian Conference Gleneagles, Scotland Call Teresa Taylor on 0115-934-4546 Email teresa.taylor@experian.com 8 October ICM Annual Dinner Drapers' Hall, London EC2 Guest speakers: Walter Merricks, Insurance Ombudsman Professor Geoffrey Woodroffe, Solicitor and Funeral Ombudsman Ticket price: #68.00 plus vat To book telephone the Institute on 01780-722907 or fax 01780-721271 12th to the 14th October 1999 Tuesday to Thursday Credit North 1999 at the Royal Armouries, Leeds1 25 October Wessex Branch meeting of the ICM Experian - Non-Ltd database 17 - 19 November 1999 Wednesday to Friday International Credit Exhibition & Conference Raffles City Convention Centre The Westin Stamford, Singapore http://www.internationalcredit99.com Mailto:info@internationalcredit99.com
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