Editor: John Arnold. E-mail jarnold@creditman.co.uk
Pat Williams. E-mail pwilliams@creditman.co.uk
Site: Business Credit Management UK
URL: http://www.creditman.co.uk
Issue: Vol 6 Issue 9
Dated: 3 March 2002
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
CREDIT 2002, the definitive exhibition & conference for the UK commercial and consumer credit industry, plays host to the largest gathering of credit professionals in the UK, showcasing the complete range of credit related products, services & applications and the 'all new' Credit Management Conference - incorporating The Management Forum.
So, whether you are a senior executive within the financial world or a manager at the centre of a credit function, CREDIT 2002 is the IDEAL opportunity this year to witness, discover, interact and network with the leading figures of the Credit Management industry - worldwide. For more information and to REGISTER, please visit the website at www.credit-expo.co.uk
UKRATE CUT ON HORIZON AS ECONOMIC GROWTH STALLS
Reacting to the official GDP figures for the fourth quarter 2001, released last Wednesday, by the Office of National Statistics (ONS), Ian Fletcher, Chief Economist at the British Chambers of Commerce, said:
"These figures show the British economy is not yet out of the woods. It is far too early to be talking about raising interest rates. Another rate cut may be on the horizon, as the recovery may be slow to arrive.
"Whilst today's figures show the strains on our manufacturers were even worse than previously thought, we have seen a few positive signs lately such as investment in the sector rising for the first time in more than a year.
"We now wait to see if the Chancellor plans to raise taxes in the Budget. If taxes go up then this will allow extra room for the Bank of England to offset any impact on consumers’ purchasing power by easing interest rates."
FALL IN ECONOMIC GROWTH IS WORRYING, SAYS CBI
The CBI said that the slowdown in economic growth is worrying news as it is being driven by the painful manufacturing recession.
Andy Scott, CBI Director of International Competitiveness, said:
"This is worrying news for the economy. Even though there are some signs of the downturn having reached the bottom, manufacturing firms are still cutting prices to the bone in a bid to hold on to business. But they are really up against it with international trading conditions being so tough.
"The government should now listen to industry pleas for a manufacturing plan. This should set out where the sector is heading and identify how business and policy makers should respond.
"The UK must have a thriving manufacturing sector and we need to lay the foundations on which to build a sustainable and prosperous manufacturing base."
OUTPUT AND EMPLOYMENT IN THE CONSTRUCTION INDUSTRY: FOURTH QUARTER 2001
The total volume of construction output in 2001 rose by four per cent compared to 2000. Overall new work rose slightly over the same period, despite decreases in the private industrial and private housing sectors. Repair and maintenance rose, with increases in the private housing and private and public non-housing sectors easily offsetting a fall in the public housing sector. Output in the fourth quarter of 2001 rose by two per cent compared to the third quarter in volume terms and by three per cent in current prices.
The total volume of new work in 2001 was three per cent higher compared with the previous year and was five per cent higher in the fourth quarter compared with the previous quarter. The total volume of repair and maintenance work was four per cent higher in 2001 compared with the previous year, but fell by one per cent in the fourth quarter of 2001 compared to the previous quarter.
New private housing work in 2001 was five per cent lower compared with the previous year but the fourth quarter was one per cent higher than the third quarter of 2001. New work in the public housing sector in 2001 was five per cent higher (on a small base figure) compared with the previous year and the latest quarter was 10 per cent higher than the previous quarter. New infrastructure output in 2001 was nine per cent higher compared with the previous year, but the fourth quarter of 2001 fell by three per cent compared with the third quarter of 2001.
New construction work in the private industrial sector in 2001 was two per cent lower compared with the previous year, and the fourth quarter was one per cent lower than the previous quarter. New private commercial output in 2001 increased by four per cent compared to the previous year and increased by 10 per cent in the fourth quarter compared to the third quarter of 2001. New work in the public non-housing sector (excluding infrastructure) in 2001 rose by six per cent compared to the previous year, and the fourth quarter rose by 15 per cent compared with the previous quarter.
Housing repair and maintenance work (including improvement work) in the public sector was five per cent lower in 2001 compared with the previous year but was one per cent higher in the most recent quarter compared with previous quarter. Housing repair and maintenance work in the private sector in 2001 was four per cent higher compared with the previous year but was two per cent lower in the fourth quarter compared to the previous quarter.
Repair and maintenance work in the public non-housing sector in 2001 was three per cent higher compared with the previous year but was three per cent lower in the most recent quarter compared with the third quarter of 2001. Repair and maintenance work in the private non-housing sector in 2001 was 12 per cent higher compared with the previous year but was one per cent lower in the most recent quarter compared with the previous quarter.
Employment
The seasonally adjusted number of employees in employment in October 2001 was two per cent higher compared with July 2001 and was two per cent lower compared with October 2000. Total employment (including the self-employed) in October 2001 was one per cent higher compared with July 2001 and was one per cent higher compared with October 2000.
http://www.dti.gov.uk/construction/stats/output.htm#output
Also via www.statistics.gov.uk
“CONGESTION CHARGING IS A POLL TAX FOR BUSINESS” SAYS FSB
The FSB has voiced grave concerns about the effect road charging will have on the commercial life of central London.
Responding to the announcement by London Mayor, Ken Livingstone, that charging will be introduced, the FSB has predicted that many small businesses will be particularly penalised by the £5 per day charge.
Richard Morse, the Chairman of the FSB’s London Policy Unit, said, “This new scheme will be an annual £1200 ‘poll tax’ and consequently a huge burden on businesses in London. It makes no allowance for essential deliveries to businesses and will particularly hit smaller firms, since the charge will be proportionately higher for them.”
Mr Morse continued, “The self-employed and small businesses form an important part of London’s economy, and they rely on accessibility to their customers and on frequent deliveries. Small business will lose out if public transport is not significantly better before the introduction of congestion charging. Implementing the charges so soon is putting the cart before the horse.”
Mr Morse concluded that, “Everyone knows that the level of traffic in London must be reduced, but the quality of life for Londoners will not be improved by damaging the businesses which creates the city’s wealth and will leave London as the only city in Europe and the USA with such a destructive scheme.”
UK ECONOMY ESCAPES RECESSION BUT CONSUMERS WILL FACE THE REAL COST OF HIGHER DEBT LEVELS IN THE LONGER TERM
Strong growth in consumer and public spending appears to have saved the UK economy from recession, but there is likely to be a price to pay for this in the longer term in the form of higher interest rates and a persistently high household debt burden, according to a report published today by economists at PricewaterhouseCoopers.
The latest edition of PricewaterhouseCoopers regular UK Economic Outlook publication foresees UK GDP growth averaging just under 2% in 2002 and around 2.5% in 2003, with little chance of recession unless global economic conditions deteriorate very substantially. Although there is no immediate need to increase interest rates, the main scenario outlined in the report suggests that rates may need to rise to around 5-5.5% by the end of 2003 to prevent overheating of the economy in the medium term.
The report looks in detail at the implications of the strength of UK consumer spending, which has grown at an average rate of 3.9% since the start of 1996, compared to 2.8% growth in total GDP. As a result, consumer spending rose to around two-thirds of GDP in 2001, the highest level since reliable national accounting records began in 1948. The report argues that consumer spending should remain relatively strong in the short term, growing by around 2.5-3% in 2002, but that medium-to-long-term prospects are less good. This is for three main reasons.
First, the current account deficit is likely to continue to widen in 2002 and 2003, which is unlikely to be sustainable in the long term and will eventually require a period of lower consumer spending growth to correct this imbalance. This is likely to be associated with a fall in sterling at some point, which would add to inflationary pressures and so to the need for interest rate increases in the medium term.
Second, with inflation expected to remain low by historic standards, the real value of household debt burdens taken on in recent years will remain higher than borrowers may be anticipating, which is likely to have a dampening effect on UK consumer spending growth in the long run. Illustrative projections in the report show that the real value of a 25 year mortgage set initially at 375% of post-tax income (or around 3 times gross income with a 20% average effective tax rate) would still be 240% of post-tax income after 10 years with 2.5% inflation, as compared to only 170% with 6% average inflation and 120% with 10% average inflation. These differences mean that a mortgage that initially looks readily affordable may prove much more of an ongoing burden than expected.
Third, as the baby boomer generation moves into middle age, savings ratios are likely to rise as these are typically highest for people in their 40s and 50s. This is particularly true given the increasing realisation that neither the State nor employers will provide adequate pensions in future decades, leaving individuals with the responsibility to save more themselves if they are to have adequate incomes in retirement.
Rosemary Radcliffe, Chief Economic Adviser to PricewaterhouseCoopers, commented that:
"As a country, we have been living beyond our means for some years and have perhaps been reluctant to recognise the long term consequences. In the short term, this has helped to save the UK economy from recession, but it has also led to a significant build-up of household and external debt. Sooner or later, there will be a price to pay for this, but the aim of the Monetary Policy Committee will be to engineer a gradual adjustment to a more sustainable rate of domestic demand growth. This may require higher interest rates later this year and in 2003, although there is no immediate need to raise rates over the next few months."
The report also contains a detailed analysis of the state of the public finances and the Chancellor's options for the forthcoming Budget on 17 April. PricewaterhouseCoopers main scenario envisages a small budget surplus of around £2 billion in 2001/2, but that the public finances will then move into deficit by around £10 billion in 2002/3 and around £17 billion in 2003/4. This would still just about be consistent with the Golden Rule of borrowing only to invest, since net public investment is projected to be £15 billion in 2002/3 and £19 billion in 2003/4, but the margin for error would be minimal in the latter year.
If the Chancellor wishes to continue to increase public spending faster than trend GDP growth of 2.25% per annum after 2003/4, then tax increases would be almost certainly be needed in the medium term. Depending on the generosity of the next Spending Review, the report suggests that tax increases of the order of £4-9 billion per annum might be needed by 2005/6. The degree of tax increases required will depend in particular on the extent to which savings can be found in non-priority spending areas to compensate for faster growth in spending on health, education, transport, pensions and law and order. Any such tax rises would not need to be implemented immediately, but could be deferred until April 2003 or later, by which time the global economic situation should be more favourable.
The report outlines a number of possible options for the Chancellor to raise taxes in ways that have not been ruled out by manifesto commitments, including:
Have you got some difficult debts? Why not try out our service on a No-Collect No Fee basis. What have you got to loose? You can place the details online at http://www.creditman.co.uk/creditse/debtform.html or email jarnold@creditman.co.uk
The NCM Group (now combined with Gerling Credit Insurance Group), leading experts in credit management, underwriting and debt recovery, says that the construction industry loses millions of pounds every year through late payment of debts.
Out of all the sectors, the construction industry is one of the biggest culprits and has one of the worst histories in late payments. In fact large construction companies on average take 94 days to pay their suppliers (an increase of 11% since the legislation to speed the process up was introduced).
NCM has found that typically a construction company has 20% of its turnover in outstanding debt due to late or non payment of goods. This means that a construction company with a turn over of £15 million would have £3 million in outstanding debt. By decreasing their DSO (Days Sales Outstanding) by only 5 days, through effective credit management, the company would increase its balance sheet by over £200,000.
Lisa Edmonds, UK Products Manager at NCM says, "Credit management is an important part of a companies risk strategy. Insuring against bad debt protects a company's balance sheet and can alleviate the problems caused by late or non payment of goods and services.
Construction companies are notoriously bad at making payments. This can have very detrimental effects on the companies awaiting that payment and many often face bankruptcy as a result of a lack of cash flow. NCM's construction policy aims to cover companies against this risk, enabling them to concentrate on growing and strengthening their business without worrying about their balance sheets."
NCM's has developed a construction policy, which provides customers with the following benefits:
Companies wanting further information on NCM's construction policy should call 08000 858577.
The NCM Group, now combined with Gerling Credit Insurance Group is a privately owned company headquartered in Amsterdam. NCM services more than 20,000 customers world-wide, helps them trade safely in 250 countries, can provide access to information on 30 million companies world-wide and processes one million requests for buyer risk assessments yearly.
IMPORTANT CHANGES TO SCOTTISH LAW - UPDATE
I have just heard that the decision which effectively would have prevented inhibitions prior to judgment is to be appealed.
This means you will still be able to use inhibitions on the dependence in Scottish court actions .When the appealed decision is available I will let you know the outcome.
If you would like to discuss this with me please call on 0141 572 4251 or email me on scowan@yuill-kyle.co.uk. More information will be posted on the website at www.debtscotland.com
Stephen Cowan
Yuill & Kyle, Debt Recovery and Credit Control Lawyers, Scotland
Telephone: 0141 572 4251
COUNCIL REGULATION (EC) NO. 44/2001 ON JURISDICTION AND THE RECOGNITION AND ENFORCEMENT OF JUDGMENTS IN CIVIL AND COMMERCIAL MATTERS
This Regulation, known as the "Brussels I Regulation", comes into force on 1 March 2002. It largely replaces the 1968 Brussels Convention and will apply to all the Member States of the European Union except Denmark.
The Regulation is the culmination of a review of the 1968 Convention and the largely corresponding 1988 Lugano Convention on the same subject matter which applies between the Member States of the European Union and the States of the European Free Trade Area, Switzerland, Norway and Iceland, and also Poland which acceded in 2000. The review proposed a number of amendments to these conventions which have now been incorporated into the Regulation. The general principles of the 1968 Convention remain unaffected by these amendments and will continue to operate under the Regulation. However, some significant changes have been made as a result of the review that aim to clarify and simplify various aspects of jurisdiction and the recognition and enforcement of judgments delivered by civil courts. The changes are as follows:
Contract jurisdiction
Article 5(1) of the Regulation provides that a person domiciled in a Member State may be sued in another Member State, in contractual matters, in the courts for the place of performance of the obligation in question. Under the Regulation this general rule is now subject to an important qualification, namely that the place of performance is, unless the parties agree otherwise, given a uniform Community meaning in the case of two common types of contract. In contracts for the
sale of goods that place is stated to be where, under the contract, the goods were delivered, or should have been delivered in a Member State. In contracts for the provision of services the place is where, under the contract, the services were provided, or should have been provided, in a Member State.
Concurrent proceedings
Article 30 of the Regulation lays down a test to establish a Community definition of the moment when a court is first seized of proceedings. It is currently a matter for the national law of each Member State. The first part of the new rule establishes a uniform date for those States where proceedings are initiated when the document, such as a claim form under the English system which institutes the proceedings, is lodged with the court. This is subject to the requirement that the claimant must then take the procedural steps required of him to serve that document on the defendant. This
requirement is designed to protect a defendant from a claimant acting in bad faith who institutes proceedings in a jurisdiction of his choice in order to prevent the other party from starting proceedings to enforce a legitimate claim in another Member State. The second part provides a new rule for those States where proceedings are initiated when the relevant legal document is handed to the national authority responsible for the service of that document. That
authority is then responsible for serving it on the defendant and only when that has been done can legal process issue from the court. The rule is designed to put such systems on an equal footing with those where legal process issues directly from the court. The claimant is required to take steps to lodge the document with the court so that legal process can be issued. Again, this requirement is designed to protect the defendant from claimants acting in bad faith.
Enforcement
Article 34 of the Regulation is a new rule designed to speed up the process for the enforcement of a foreign judgment. It provides that a judgement from another Member State is to be declared enforceable immediately on completion of the formalities required under Article 53. It will no longer be possible for courts to scrutinise incoming judgments in order to consider whether they should, of their own motion, rule that, for example, a particular judgment offends against the principle of public policy and must therefore be denied recognition. This kind of scrutiny has been the practice in some
Member States, not including the United Kingdom. Although grounds for refusal have only very rarely been found at this preliminary stage, the very fact of such an investigation has led to undesirable delays in the enforcement process. Accordingly, the effect of this Article should be to assist judgment creditors in the United Kingdom in the enforcement of their judgments in the other Member States.
Power to refer cases to the Court of Justice
Under the 1968 Convention both supreme courts and other appellate courts in Member States are entitled to request the Court of Justice in Luxembourg to give preliminary rulings on questions of the interpretation of the Convention. The EC Treaty, under which this Regulation was made, curtails this entitlement. Consequently references to the Court of Justice on the interpretation of the Regulation will only be possible from a national court "against whose decisions there is no judicial remedy under national law". In the United Kingdom this will generally only be the House of Lords.
Minor changes
There are several less significant changes to the 1968 Convention which pertain to various types of jurisdiction, including:
The Civil Jurisdiction and Judgments Order 2001 (SI 3929)
This Order, which also comes into force on 1 March 2002, makes changes to existing UK law which are necessary in light of the commencement of the Brussels I Regulation. Schedule I contains various provisions which have been modelled on equivalent provisions in Part I of the Civil Jurisdiction and Judgments Act 1982. The latter apply in relation to the 1968 Convention, whereas the former will only apply in relation to the Regulation. Both sets of provisions are necessary to support the operation of those instruments and they deal with various matters, including those relating to the enforcement of foreign judgments.
The Civil Jurisdiction and Judgments (Authentic Instruments and Court Settlements) Order 2001 (SI 3928)
This Order in Council applies, with suitable modifications, certain provisions in the Civil Jurisdiction and Judgments Order 2001 to authentic instruments and court settlements made in the other Member States which are bound by the Regulation. As under the 1968 Convention such instruments and settlements are enforceable in the same manner as court judgments.
Amendments to the Civil Procedure Rules
Various minor and technical amendments have been made to the Civil Procedure Rules which will also come into force on 1 March 2002. The only amendments of slightly more substance are those in relation to Order 71 of the Rules of the Supreme Court; these lay down a new recognition and enforcement procedure in relation to judgments coming from other Member States under the Regulation. This procedure has been modelled on that applicable in relation to the 1968 Convention.
The Magistrates' Courts (Civil Jurisdiction and Judgments Act 1982)(Amendment) Rules 2002
This instrument makes amendments to the Magistrates' Courts (Civil Jurisdiction and Judgments Act 1982) Rules 1986 (SI 1986/1962) which laid down a procedure in the magistrates' courts for the enforcement of foreign maintenance orders under the 1982 Act. The amendments are technical in nature and are consequential on the commencement of the
Regulation.
The full Regulation can be accessed on the following website: http://europa.eu.int/eur-lex/en/lif/dat/2001/en_301R0044.html
ALBANY SOFTWARE ENABLES OCM TO MAKE FASTER DEMANDS IN DEBT COLLECTION
Debt recovery specialist is using ALBACS suite to achieve time saving of two to three weeks in debt collection cycle
28th February 2002 - Outsourced Credit Management Ltd (OCM) has placed a £15,000 order with eTransactions author, Albany Software, for its ALBACS suite of Electronic Funds Transfer (EFT) software. OCM is using the suite to facilitate an automated payment collection method to recover premium-related debts from both consumer and commercial market sectors.
In addition to the core ALBACS product offering, OCM will implement ALBACS Verify to enable the validation of bank account details prior to collecting payments from its debtors.
Kieron Teather, General Manager of Operations, explains, "ALBACS is a cost-effective, secure and reliable BACS software solution that allows us to be in complete command of the entire debt collection and management process. Using ALBACS we can predict a schedule of payments and we can guarantee that funds will be collected from our debtors on time with 100% accuracy."
He continues, "ALBACS is very user-friendly, simple to install and integrates easily with other key applications in use throughout the company. It is already saving us two to three weeks in the debt collection cycle."
OCM specialises in recovering a variety of low-value consumer insurance debt and high-value commercial debt as well as providing debt tracing and investigation software tools. The company's debt recovery products are widely used by a variety of blue chip companies nationwide including many of the main insurers and large conglomerate brokers.
Previously OCM reclaimed debts through standing order arrangements which gave too much control to the debtor, who maintained the ability to change the length of the repayment period far too easily. Up to 40% of debtors default on payments at some point in the cycle, so many arrangements were being stretched out well beyond the agreed 12-month period.
ALBACS ensures that OCM is able to effectively manage the collection of payments and the company is able to extend these benefits through the adoption of ALBACS Verify, which provides the management team with exception error reports of sort code and account number failures, either on screen or printed on request. This exception reporting saves critical time in identifying and correcting account errors and helps to improve the company's cash flow management.
Teather explains, "ALBACS Verify enables us to quickly access account information meaning we can easily ascertain why a payment has been rejected. Consequently, we are able to take immediate action to recover payments. This process means just a three to four day addition to the debt collection cycle, ensuring that the late payment does not slide into the following month, and another payment date."
Teather concludes, "Albany's eTransactions software will benefit our organisation immensely and will help us to achieve a fully automated payment collection process which will streamline our business administration and improve cash control."
About Albany
Albany Software, based in Alton, Hampshire, is the leading developer and supplier of eBusiness-to-Business solutions in the eTransactions enablement marketplace. 10,000 customers in the UK are using Albany's solutions in order to streamline business administration, increase efficiency and reduce costs.
Albany operates across a broad range of industries including banking, finance, insurance, retail and government organisations. Customers include Microsoft, Financial Times, Reuters, The Body Shop, Rolls Royce, American Express, MD Foods and Sony Psygnosis.
Albany's product portfolio includes; eCONNECT, simple, safe and instant Electronic Document Delivery and Receipt; ALBACS, the market leading Electronic Funds Transfer software solution; ALBACS Verify, enabling validation of bank account details; ALBACS Messaging for streamlined communication between businesses and the BACS Messaging Service, ALBACS Remit, enabling the electronic distribution of remittance advices and EDIfy, designed for organisations wanting to use EDI more effectively.
AUDITING REQUIREMENTS AND THE ROLE OF NON-EXECUTIVE DIRECTORS TO BE PROBED
Two separate reviews will examine the role of non-executive directors and the UK's arrangements for financial reporting and auditing, Trade and Industry Secretary Patricia Hewitt announced at the Lord Mayor's Mansion House dinner.
The move is aimed at:
Announcing an independent review of the role and effectiveness of non-executive directors in the UK, Patricia Hewitt said:
"Non-executive directors play a key role in British companies by helping to drive up performance. It is in all our interests that they do their job as effectively as possible.
"We need stronger, more independent and more active non-executives drawn from a wider pool of talent to play their part in raising productivity.
"This review will look at how this aim can be delivered and will build on the work of the Company Law Review and the Myners review, including the Government's recent proposal to strengthen the duties of institutional investors."
The review will report jointly to the Trade and Industry Secretary and the Chancellor.
In her speech, Patricia Hewitt also set out how the Government will respond to the issues raised in the aftermath of Enron's collapse.
She said:
"We have all been shocked at the speed and scale of the dramatic collapse of Enron.
"We need to be sure that our systems of financial reporting and audit regulation are robust enough.
"This is why I have set up a group jointly with the Treasury, Financial Services Authority and the Accountancy Foundation to co-ordinate our response to the issues raised by Enron.
"While the accounting and regulatory requirements in the US are significantly different to the UK, it is crucial that we address issues which may question the integrity of markets. It is also vital that our response fits well with our overall company law reform process.
"I am determined that the outcome should be measured, thought through and carefully judged."
Patricia Hewitt was speaking at the Mansion House Trade and Industry dinner hosted by the Lord Mayor of the City of London. The dinner is an annual event, which recognises the vital connection between Britain's financial and business services and its industries and business. Guests included leading representatives of major UK businesses and leaders of major financial and business services. Members of the Government and civil service were also present.
The Government will announce in due course who will lead the independent review into the role and effectiveness of non-executive directors together with the terms of reference.
Melanie Johnson and Ruth Kelly will jointly chair the group addressing the response to issues raised by the collapse of Enron. The group will bring together DTI, HM Treasury, Financial Services Authority (FSA) and other interested regulators such as the Accountancy Foundation and the Accounting Standards Board. This will ensure that the implications for reporting and audit are carefully considered and that work is properly coordinated.
If there is a need for specific legislative change in the area of auditor regulation or other aspects of company law, the Government could take action either under existing powers or as part of the proposed Companies Bill.
Action is already in hand in the following areas:
CBI REACTION TO DTI REVIEWS ON NON-EXECUTIVE DIRECTORS AND AUDITORS
The CBI welcomed the government reviews on the roles of non-executive directors and auditors.
It cautioned against a possible heavy-handed approach that sees "regulation of the many as the answer to the poor performance of the few".
John Cridland, Deputy Director-General, said: "We intend to play a full role in these reviews, which cover important business issues that merit debate.
"We want to demonstrate how world class businesses use the skills of non-executive directors to benefit shareholders and how these firms have appropriate and professional relationships with auditors.
"But we must remember that there is no one-size-fits-all regulatory model that suits modern business life. We must also avoid seeing regulation of the many as the answer to the poor performance of the few."
INSTANT CREDIT REFERENCES, PRODUCT AND COMPANY NEWS AND USEFUL LINKS NOW AVAILABLE AT COFACE UK STAND
Leading credit solutions company, Coface UK, has launched a stand at the world's first online financial services exhibition, Financial Services 2002. The virtual stand showcases Coface UK's credit information and ratings, insurance and collections products, as well as giving Web visitors the opportunity to take advantage of special Company offers.
The Coface UK stand can be found in the Credit Management Hall of the Exhibition, which also features sections on Financial software and CRM solutions. The stand features extensive information about Coface UK, the latest company and product news. Visitors can check on the financial soundness of an existing or potential trading partner via a link to Coface's @rating database, which contains information on 41 million companies in 176 countries. There is also an opportunity for visitors to register for Coface's @rating newsletter and to obtain a free copy of the Guide to Better Payment Practice, which offers practical advice to suppliers and buyers on late payment issues.
Coface UK's Director of Marketing, Dominique Vaughan Williams, commented: "Today, more and more people are finding that they don't have time to go out to day long events and so we believe this type of exhibition will become increasingly popular. It's quite simply far more convenient, enabling people to visit it every day of the year at any time of the day or night, without having to leave their desk."
Anyone interested in visiting the Coface UK stand, should log onto the exhibition Web Site at www.fs2002online.com. Visitors are required to provide a few details in order to obtain a user name and password, however registration is free.
About Coface UK
Part of the Coface Group, the world leader in export credit insurance with over 78,000 clients in 99 countries, Coface UK specialises in flexible credit management services for British businesses, including domestic credit information, customer monitoring and collections management.
Coface UK's range of credit insurance products includes Open Trader (for comprehensive cover) and Top Trader (for key clients), both designed for UK companies with turnover of over £3 million. For SMEs, Managed Trader and Cashflow Trader provide cost-effective cover for domestic and export trading, with the latter offering a unique, fully integrated credit management solution which guarantees payment of invoices at 65 days from the due date.
Our trader range of insurance products are all Globalliance contracts - flexible modular policies that can be adapted to clients' specific requirements, whether they need customer or country risk cover, and adjusts to whatever country or language they may be trading with.
Other insurance related financial products include single risk cover, duty deferment guarantees and travel bonds.
As a member of the Coface Group, Coface UK clients benefit from access to three global networks, CreditAlliance, InfoAlliance and @rating, with information on 41 million companies worldwide.
For further information about Coface UK, please contact:
Suzanne Teo
T: 020 7325 7548
Email: suzanne_teo@cofaceuk.com
Website: www.cofaceuk.com
Court jails directors who "gambled with other people's jobs and money"
Three ex-company directors who defrauded creditors to the tune of £2 million have been jailed after a four-month trial at Canterbury Crown Court.
Christopher Trietline, 57, a solicitor from Hereford, received a sentence of 5 years, while James Tangye, 57, a farmer from Worcester, and company accountant Arthur Waite, 51, from Kent, both received 3 years.
The trio, who ran the Deadman group of haulage companies in the Midlands and Kent, were also disqualified from acting as company directors for 10 years.
The Court heard how the directors had ruined the once reputable family haulage businesses - Deadman Transport Ltd, Deadman Transport (Midlands) Ltd and Deadman Transport and Groupage Ltd - leaving behind a litany of bounced cheques, broken promises and forged documents.
Despite being effectively insolvent, the companies continued to operate throughout the Midlands and Kent, and resulted in losses to creditors approaching £2million when the companies finally ceased trading.
The court heard how the Deadman directors:
One of the Deadman group's main victims was the fuel supplier Southern Counties Fuels Limited. Southern was persuaded to extend credit for fuel in the mistaken belief that they were dealing with a company of substance. This was to prove costly, as despite repeated promises of payment from the directors, the loan was never repaid.
Passing sentence on the three, presiding Judge Adele Williams said the sentences reflected the serious extent of the fraudulent trading and that she was acting "to protect the public and deter others who would behave in the same way".
She reserved her harshest comments for Christopher Trietline, who she identified as the most manipulative of the trio:
"Not only were you dishonestly gambling with the Deadman group of companies but also with other people's money and jobs. You are by far the most intelligent and manipulative of the three defendants and it was you who stood to gain most financially."
Arthur Waite and James Tangye were labelled "willing associates" in Trietline's "dishonest schemes".
Consumer and Competition Minister Melanie Johnson welcomed the sentences:
"We are committed to protecting reputable businesses from those which don't play by the rules."
"These sentences should act as a warning to those businesses which think they can swindle the public and break the law with impunity".
The trial began on 10 September 2001, with the jury returning its verdicts on 25 January 2002. All three defendants were found guilty and remanded in custody until sentencing on 22 February 2002.
The men were found guilty of fraudulent trading under Section 458 of the Companies Act 1985.
Deadman Transport Limited.
Incorporated on 28 July 1993. Registered office was 'Sea Winds', Cordingham Road, Whitstable, Kent, CT5 4AS. This was a non trading company which held haulage licences for the Deadman group of haulage companies which traded from Whitstable.
Deadman Transport (Midlands) Limited
Originally Aerial Transport Ltd, incorporated on 24 July 1992 and trading from premises in Peterborough. Deadman Transport Ltd acquired Aerial in June 1995 and on 12 June Christopher Trietline and James Tangye were appointed directors. In August 1995 Aerial changed its name to Deadman Transport (Midlands) Limited. It operated from 33 Saffron Road, South Wigston, Leicester, LE18 4UL. Its registered office was at No.1, West Walk, Leicester, LE1 7NG.
Deadman Transport and Groupage Limited
Incorporated on 11 August 1995 and traded from premises at Whitstable in Kent. Trietline and Tangye were appointed directors and Waite as Company Secretary. Registered office was the same address as that for Deadman Transport Ltd.
*** FORTHCOMING CREDITORS MEETINGS ***
For detailed information on the British Isles insolvency's (liquidation's, receiverships, administrations, dividends, creditors) please visit http://www.insolvency.com/cgi-bin/gazette/liq/nots.plNEW SERVICE COMING SOON! WATCH OUT FOR OUR ANNOUNCEMENTS!!
Williams Communications, an American telecoms company, teetered on the brink of Chapter 11 bankruptcy protection.
Confidence rebounded at General Motors. Despite a gloomier outlook at its big rivals, Ford and DaimlerChrysler, GM raised profit forecasts for the year.
Volkswagen may yet be saved from foreign invasion. A new European Commission takeover code is again under threat from Germany, keen to protect its biggest car maker.
Swiss Re said that it expected losses of SFr200m ($118m) for 2001 after the world's second-biggest reinsurer put costs from September 11th at nearly SFr3 billion.
Shares in Prosiebensat.1, a terrestrial broadcaster controlled by cash-strapped Kirch, made big gains after the cancellation of a merger with KirchMedia, Kirch's rights arm.
Source - The Economist
MERGER NEWS
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/s to the Monopolies and Mergers Commission under the provisions of the Fair Trading Act 1973:Acquisition by Adolph Coors Company of Carling Brewers
CARGILL/CERESTAR: COMPETITION COMMISSION INVITES EVIDENCE
Patricia Hewitt, Secretary of State for Trade and Industry, has asked the Competition Commission to look into the proposed acquisition by Cargill Incorporated of Cerestar, a company ultimately controlled by the Montedison Group. Cerestar is a producer of starch and sweeteners.
The Commission will look at the proposed merger's likely effects on the public interest, including the impact on the supply of glucose syrups and blends. The Commission has been asked to report to the Secretary of State by 9 May 2002. The report will be published later.
The Commission would like to hear from all interested parties in writing by 11 March 2002. If you wish to submit evidence please write to:
The Reference Secretary (Cargill/Cerestar)
Competition Commission
New Court
48 Carey Street
London WC2A 2JT
Or email: carmonte@competition-commission.gsi.gov.uk
Further information about this inquiry as it proceeds will be obtainable from the Commission's website at www.competition-commission.org.uk
INQUIRY INTO THE ACQUISITION OF McKECHNIE PAXTON HOLDINGS LIMITED BY LINPAC GROUP LIMITED
Statement of Hypothetical Remedies
The Competition Commission has sent a remedies letter, on a purely hypothetical basis, to the Linpac Group Limited (Linpac), as part of its inquiry into the acquisition by Linpac of McKechnie Paxton Holdings Limited (Paxton).
This statement summarises the points on which views are being sought. In particular, comments are invited on the likely effectiveness, costs and practicability of the remedies that have been set out. It should be clearly understood that the basis on which the points listed below are being raised is entirely hypothetical. It does not imply that the Commission has reached any conclusion on whether the acquisition is likely to be against the public interest. It is being published now to give interested parties as much time as possible to comment on the possible remedies that the Commission may consider, consistent with maintaining the schedule for the inquiry.
The Commission invites views on a number of hypothetical remedies:
Measures might include:
Other remedies, which would go along with those listed above, include:
Responses
Comments are invited on the hypothetical remedies described in this statement. It would be helpful if responses could be sent to the Reference Secretary, Peter Radley, at the Competition Commission, New Court, 48 Carey Street, London, WC2A 2JT e-mail linpac@competition-commission.gsi.gov.uk by Monday, 11 March.
COMPASS BID FOR RESTORAMA, RAIL GOURMET AND GOURMET NOVA REFERRED TO THE UK COMPETITION AUTHORITIES
Competition Minister Melanie Johnson today welcomed the European Commission's decision to refer part of a proposed merger of companies providing foodservices to the UK competition authorities.
The merger would result in the acquisition of Restorama AG, Rail Gourmet Holding AG and part of the business of Gormet Nova by Compass Group PLC.
It has been referred to the UK competition authorities under Article 9 of the EC Merger Regulation.
Melanie Johnson said:
"I am pleased that the Commission has agreed with our request to refer this case to the UK authorities.
"This proposed merger appears to raise competition concerns in relation to on-train foodservices in the UK. These concerns can now be looked at in more detail."
The case will now be considered under the merger provisions of the Fair Trading Act. The EC Merger Regulation requires the consideration of the case to be completed within four months.
Rail Gourmet Holding AG, Restorama AG, Gourmet Nova Finland OY and the Manchester Airport (Sungate) business of Gourmet Nova UK (together 'RGR business') are a group of companies, which constitute part of the foodservice concerns of SAirlines (ultimately owned by SAirgroup ('Swissair')).
The proposed concentration between Compass and RGR Business was notified to the European Commission on 14th January 2002 under the terms of the EC Merger Regulation (Council Regulation 4064/89 as amended). In accordance with Article 19 of the Regulation, the UK received a copy of the notification on 16th January 2002.
Under Article 9(2)(a) of the EC Merger Regulation a Member State may inform the European Commission that a merger threatens to create or strengthen a dominant position as a result of which effective competition will be significantly impeded on a market within that Member State which presents all the characteristics of a distinct market.
The Commission has decided to refer the case to the UK insofar as it relates to the market in the UK for on-train foodservices. On referral of a case to a Member State, the Member State has four months to publish any report on the merger or to announce its findings.
UK ASKS EUROPEAN COMMISSION TO CONSIDER UK COMPETITION ASPECTS OF GE ENGINE SERVICES / UNISON INDUSTRIES MERGER
The UK has asked the EC to consider the UK competition aspects of the proposed merger between GE Engine Services - a subsidiary of General Electric - and the US aircraft components manufacturer Unison Industries.
This merger would not automatically qualify for consideration under EC Merger Regulations (ECMR) and would ordinarily be dealt with by the UK competition authorities. However, the Director General of Fair Trading has advised that this merger may have an impact on markets that extend beyond the UK. The DTI have agreed that it would, therefore, be appropriate to ask the EC to consider the matter in accordance with Article 22 of the ECMR.
Competition authorities from France, Germany and Spain have also asked the Commission to consider the case, in as far as it impacts on their markets, in the expectation that the EC will consider the competition aspects in all the Member States concerned.
GE Engine Services Inc, is active in the sale of replacement engine parts and maintenance services for engines made by a range of manufacturers. It is a wholly owned subsidiary of the General Electric Company (GE), a diversified industrial company active in a range of fields including aircraft & industrial engines, appliances, information services, power systems, lighting, broadcasting and transportation systems. Unison Industries Inc, is a privately held company that manufactures and sells various engine accessories and controls. Its products are used for a variety of application areas such as commercial aviation, military, helicopter, marine and industrial applications.
Concentrations meeting the turnover thresholds set out in Article 1 of the EC Merger Regulation (ECMR - Council Regulation 4064/89 as amended) fall directly to the consideration of the European Commission rather than national competition authorities. However, Article 22(3) of the ECMR enables a Member State acting alone or a number of Member States acting together to request that the Commission examine a concentration that does not meet the turnover thresholds. Following such a request, the Article provides that the Commission may consider such a case as it would a concentration meeting the ECMR thresholds insofar as it affects trade between Member States.
Member States first made joint use of Article 22(3) in this way in respect of the bid by Italian weaving machine manufacturer Promatech's bid for Sulzer Textile (Switzerland) in December 2001. As on that occasion, use of Article 22(3) has been possible in the current case primarily because of recent improvements to liaison between the national competition authorities of the Member States involved. This has enabled the necessary co-ordination to take place within the tight deadlines set down in the ECMR for making requests under Article 22.
Commenting on BT's proposed reduction in its wholesale broadband prices, David Edmonds Director General of Telecommunications said:
"Last week announcement has the potential to bring about a step change in the take-up of broadband by consumers and small businesses.
"The cost of broadband is clearly an important factor in take-up and the price reductions proposed are very significant.
"I welcome the fact that BT believes it can reduce its costs and pass these savings on through lower charges to service providers.
"Service providers have the opportunity to take real advantage of these proposed price reductions.
"Reduced wholesale charges should enable service providers to offer broadband access to consumers at significantly lower prices, which could drive mass take up of high speed services.
"Clearly any prices charged by BT must be fair and not anti-competitive. BT is well aware of that and has already provided Oftel with cost information. "We are examining that information as a matter of urgency. But it already appeared from information that was provided to Oftel earlier that there was likely to be scope for a significant reduction in BT's wholesale prices."
Oftel has recently been carrying out an investigation into BT's existing wholesale prices as a result of a complaint from another operator. BT have provided further information on their cost base in the last few days and Oftel should shortly be able to ascertain the cost basis of BT's wholesale prices and reach a decision on whether these prices restrict competition or not.
6 - 7 March 2002 Softworld Accounting & Finance Software and E-business event. Grand Hall, Olympia, London Register in advance at http://www.softworld.co.uk/afs2002/register.html 11-13 March 2002 BCR's 2002 Receivables Finance International Conference Four Seasons Hotel, Singapore Website http://www.factorscan.com/static/asianpacific.htm Tel: +44 208 466 6987 Fax: +44 208 466 0654 Email mb@bcrpub.co.uk Wednesday 13 March 2002 ICM National Conference and Exhibition Heritage Motor Centre, Gaydon near Warwick For full details tel 01780-722907 or e-mail training@icm.org.uk Monday 25 March Wessex Branch of the ICM meeting Do Not Get Stung by Guarantees Presented by Jo Johnson of Moore Blatch Solicitors Royal Southampton Yacht Club Southampton 7.00pm for registration and refreshments 7.30pm Speakers 4 April Credit Today Awards 2002 Grosvenor House Park Lane London Black Tie Single Booking 120.00 plus vat. 10% discount to Credit Today subscribers Telephone 01403-786-726 or 020-7407-4700 E-mail sgc@mag-subs.demon.co.uk or awards@credittoday.co.uk or visit www.credittoday.co.uk 7 - 13 April The Credit Academy, 7 day Residential Course FT Knowledge Financial Learning London, 80 Strand, WC2R 0RL Contact Jane Lees - E-mail jane.lees@nyif.com Tel +44 (0)20 7010 2568 17 and 18 April Credit 2002 - The Definitive Event for the Commercial and Consumer Credit Industry Brompton Hall, Earls Court, London For more information contact vtolson@advanstar.com Website www.credit-expo.co.uk 22 - 28 April The Credit Academy, 7 day Residential Course FT Knowledge Financial Learning Venue - Hong Kong, location tbc Time: 08.30 Contact Jane Lees - E-mail jane.lees@nyif.com Tel +44 (0)20 7010 2568 10 - 16 June The Credit Academy, 7 day Residential Course FT Knowledge Financial Learning Venue - New York, location tbc Contact Jane Lees - E-mail jane.lees@nyif.com Tel +44 (0)20 7010 2568 21 June The ICM Fellows Luncheon Churchill Room, The House of Commons Westminster, London Guest Speaker Norman Lamb MP Cost 49.50 GBP inc of vat and all drinks Contact ICM Training Department on 01780-722907 E-mail sheila@icm.org.uk 3 to 5 July Receivables Finance International Europe (2002) Marriott Hotel, Prague Tel: +44 208 466 6987 Fax: +44 208 466 0654 Email mb@bcrpub.co.uk Wednesday to Friday 9 to 10 October International Credit Exhibition & Conference Raffles City Convention Centre Level 4 Swissotel Singapore , The Stamford Singapore Website http://www.internationalcredit001.com/ E-mail info@internationalcredit001.com If you have an event coming up which is credit management related and you would like us to make an entry in the Diary section please e-mail the details to jarnold@creditman.co.uk
Alternatively you may use the email interface. email creditman-request@mailing-list.cyberstrider.net with the word Help in the subject line for details.
Business Credit Management UK: John Arnold jarnold@creditman.co.uk
Business Credit News UK: Pat Williams pwilliams@creditman.co.uk