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: Vol 4 Issue 18
Dated: 7 May 2000
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKINTEREST RATES
CBI APPLAUDS DECISION TO LEAVE INTEREST RATES ON HOLD
The Confederation of British Industry last Thursday applauded the Bank of England's decision to leave interest rates on hold.
Kate Barker, CBI Chief Economic Adviser, said: "This was the right decision and should bolster long-term economic growth.
"Firms are now making investment decisions that will come to fruition over the next two years. With sterling rising to new peaks, a further rate rise would have hit these plans hard.
"As for inflation pressures, there is still little evidence of inflation in most sectors of the economy. We continue to expect earnings growth to weaken over the summer.
"This should not be seen as the postponement of an inevitable rise, but as a signal that interest rates have peaked."
CHAMBERS GIVE BANK CREDIT
Reacting to the decision by the Bank of England's Monetary Policy Committee to hold interest rates at six per cent, Ian Peters, Deputy Director General of the British Chambers of Commerce (BCC) said:
''Business will give the Bank credit for recognising the untold damage that the strong pound is doing to UK business competitiveness.
''With the pound at a 14 year high and intense competitive pressures in the economy, inflation looks set to continue below the government's target. There are also clear signs that the recent rate rises are slowing economic growth to a more sustainable level.
''The worry remains however that the Chancellor's spending plans could force interest rates and sterling even higher in the months ahead.''
MAYOR OF LONDON - ENOUGH OF POLITICS, IT'S TIME TO DO BUSINESS, SAYS CBI CHIEF
Now the election is over it's time for action said Digby Jones, Director-General of the Confederation of British Industry, on Friday.
"Let's put the rhetoric behind us and get on with making London the capital city where everyone wants to do business and lead quality lives. The CBI looks forward to working with Ken Livingstone to ensure that business needs and priorities receive early attention."
Digby Jones added: "Tackling London's enormous transport problem is the overwhelming business priority, and will undoubtedly be one of the acid tests of mayoral success. But also important are improvements to the way in which London is governed. Better co-ordination between planners and a more stream-lined and focused administration are needed to deliver the best results for London as a whole.
Digby Jones concluded: "The Mayor will be faced by many competing pressures, but as the capital's ambassador he must always make time to fight its corner as a global city. It is vital that London retains its place as an attractive location for international business."
MORE PEOPLE TO REAP THE BENEFITS OF WORKING PART-TIME
Stephen Byers, Secretary of State for Trade and Industry, last week announced that new rights for part-timers covering pay, pensions, training and holidays are to be extended to include homeworkers and agency workers.
Most of Britain's six million part-timers are already treated as favourably as full-timers. However over 400,000 part-timers should see an improvement in their conditions under the new measures. Businesses will have eight weeks to prepare for the regulations before they come into force on 1 July.
Stephen Byers said:
"The proposals I am putting forward today will ensure that part-timers are no longer discriminated against.
"This revised package safeguards the position of part-timers, whilst avoiding unnecessary burdens on business.
"The Government listened carefully to the strong arguments which emerged during our consultation on the Part-time Work Directive. We have decided to extend the measures from employees to workers. This has been done in this particular case in order to help thousands of extra part-timers who are some of the most vulnerable members of the workforce.
"Full-time workers who start working part-time will now be able to compare their new terms and conditions with their previous package. This will be particularly helpful to women returning to work part-time after maternity leave.
"However, the regulations will be introduced with a light-touch by ensuring that comparisons can only be made between part-time and full-time workers with the same type of contract.
"Also, in another change to safeguard the position of businesses, I have strengthened the written statement procedure. Part-timers who believe they have been treated unfairly must now request a statement in writing; and the timescale for providing an answer has been increased to 21 days. This will provide an important opportunity for part-timers and their employers to resolve any problems before a complaint to an employment tribunal becomes necessary."
The measures introduced today will also simplify the legal position for part-timers - 80 per cent of whom are women - who will no longer have to go down the indirect route of claiming discrimination under the Sex Discrimination Act, which is costly and time-consuming for all those involved.
Once the regulations are in place, the DTI plans to help both companies and workers by issuing a publication with the social partners covering the law and best practice in more detail.
Under the regulations published, part-timers will:
The regulations are subject to Parliamentary approval.
The new measures should encourage more people to consider working part-time as their circumstances change. Traditionally part-time working has been associated with parenthood. But it can also suit carers, students, the retired and those preparing to retire. And it can provide an income for entrepreneurs when they are first starting out on a new venture.
Part-timers who believe they have been treated unfairly must now request a statement in writing. In addition, the period by which employers will have to submit an answer has been increased from 14 to 21 days.
The regulations are available at http://www.dti.gov.uk/er/ptime.htm
Paper copies of the regulations can be obtained from the DTI Enquiry Line on 020 7215 2152/6207.
THE BRITISH CHAMBERS OF COMMERCE - QUARTERLY ECONOMIC SURVEY SUMMARY - QUARTER 1 2000
Introduction
The steady progress made by the manufacturing sector during 1999 has subsided somewhat during the first quarter of 2000, with growth in firms’ UK and export sales slowing and confidence and investment slipping back slightly. Service sector businesses also report their UK sales growth slowing slightly, but that apart their situation remains more upbeat, with export sales growth up, employment expectations optimistic and confidence steady.
The Domestic Market
The steady acceleration in manufacturing sales growth over the past year has faltered slightly over the past quarter, with the figures for sales and orders down 4 and 5 points respectively. Most of this easing in growth can be attributed to a poorer quarter reported by manufacturers in the north and midlands.
Service sector UK sales and orders growth has also eased over the past quarter, down 6 and 3 points respectively and mainly attributable to a poorer quarter for the sector’s medium and large firms.
Export Markets
Manufacturing export sales have retreated over the past quarter from the levels of the previous two, the indicator down from +15% to +8%. Only three regions report an improvement in their export situation on a quarter ago, with export growth generally slow, as typified by single figures in most regions in the north and midlands. The service sector export situation is brighter, with firms’ sales and orders up on a quarter ago.
Employment
Manufacturing jobs expansion has improved slightly over the past quarter, in all but large firms, but the sector’s jobs growth overall remains at a very low level. Service sector job growth, on the other hand is much higher but has remained broadly steady for the past three quarters. Service firms’ expectations suggest that the sector’s job growth will continue to be robust. Jobs growth in both sectors, however, does not appear to be impacting on recruitment difficulties, which have eased over the past quarter.
Investment
Manufacturing investment in plant and machinery has eased slightly over the past quarter to its lowest level for three quarters. The sector’s investment in training, however, is at its highest level for two years. Similarly, service sector investment in training is at a near two year high.
Business Confidence
The tough trading conditions are particularly having an effect on manufacturers’ margins, with confidence in profitability down 9 points over the past quarter. Service sector firms’ confidence in their future turnover remains virtually unchanged over the past quarter across all size categories of business. Firms’ confidence in their future profitability is at a two and a half year high, with fewer firms citing competition as a concern.
Capacity Utilisation
Manufacturing capacity utilisation has eased slightly, down 2 points on the three year high reported a quarter ago. After last quarter’s high level of service sector capacity use, the figure has dropped back to a level more consistent with that seen over the past two years.
Cashflow
Cashflow has deteriorated slightly in the manufacturing sector mainly as a result of poorer figures reported by micro-sized firms. Service sector cashflow has improved, the indicator up a point, solely due to better cashflow being reported by the sector’s large businesses.
Prices
From its record high last quarter the price indicator for manufacturing has retreated a sizeable 7 points over the last three months. The price indicator for the service sector is at a two year high, with pay settlements firms’ main concern.
Economic Climate
The slower growth seen in the manufacturing sector over the past quarter needs to be put into context. From a positive perspective it is small and is against the backdrop of the steady improvement seen during 1999. From a negative perspective, however, it further accentuates the imbalances in the economy, with northern and midlands regions experiencing the lion’s share of the deterioration. Slower manufacturing growth also sharpens the divide between the performance of the two sectors, although it appears on the strength of this survey that the service sector is also experiencing a slight cooling of growth at home, which is needed to contain price pressures. A primary concern remains exports, with the manufacturing situation deteriorating over the past quarter and increased numbers of firms in both sectors once again citing the exchange rate as a problem.
We continue with the changes of the Law in Scotland with a contribution from Claire Sandbrook - Under Sheriff
E-mail Claire Sandbrook c-sandbrook@sherwoods.co.uk
I have read with increasing alarm the tenor of the debate in Scotland. I have also been concerned to see the level of press coverage that the Scottish issue has received as against the issue of enforcement in England and Wales which is just by the numbers of population a far larger issue.
I take it you are all looking for UK wide solutions on enforcement and that as practitioners you want a proper system which is evenly balanced between the rights of the parties, bearing in mind that we are now looking at a post judgment/decree situation, where the defendant has to surrender some rights to the creditor so that the court's order can be obeyed.
It is also my view that enforcement is an a-political issue. No one side of the argument can say what is fair as they have vested rights.
The solutions on proper workable enforcement remedies must be a compromise between the parties who must surrender their interests to those of the Court, whose orders are being enforced.
I would like to see the ICM taking a lead in the debate south of the border together with leading practitioners in debt recovery. Naturally I think the Sheriffs can add a great deal to the debate and certainly myself and my colleagues would be willing to assist in any campaign to highlight the current inadequacies of the enforcement system and to build on the work of the LCD in creating a better environment for enforcement.
As a solicitor my involvement goes beyond the Sheriff v Bailiff debate. I am interested in seeing the current enforcement remedies streamlined and extended so that they become focused and targeted which in my view will cause far less distress to defendants.
I have also advocated the need for proper pre-legal measures to ensure that litigation itself becomes more targeted and focused to avoid suing people of straw who to be honest should never have been extended credit in the first place! The pre-action debt protocol could be a terrific initiative provided its not hi-jacked!
Perhaps we should take the opportunity of the decision in Scotland to do something positive for enforcement and create a working party of practitioners to look at the current situation and move the arguments forward.
I am always looking for the enforcement utopia - I believe it is possible to collect debt post judgment in a humane and civilised way whilst retaining the dignity of debtors and the integrity of the creditor community!
I hope this email provokes a response from those of you who know me - and for those that don't perhaps you have similar views.
Claire Sandbrook - Under Sheriff
WARRANT SALES BANNED: NOW IT'S THE TURN OF ARRESTMENTS!
Contributed by Stephen Cowan, Yuill & Kyle, Debt Recovery Lawyers, Scotland.
E-mail Stephen Cowanscowan@yuill-kyle.co.uk
Another Member's Bill has been introduced to the Scottish Parliament dealing with debt enforcement.
Arrestment is the process whereby a creditor freezes moveable property in the hands of a third party .The most common form of arrestment is where the creditor arrests the debtor's cash in the hands of a bank holding funds to the credit of the debtor.
The new bill, supported by the same individuals who introduced the measure to ban poindings and warrant sales, seeks to remedy what they say is an anomaly in the system, and in so doing assist the poor.
What they want to do is introduce "fair and reasonable limits" to creditors' powers that leave the poor and most vulnerable in society unable to pay for basics such as food or rent.
Currently earnings arrestments (similar to attachment of earnings arrestment) protect the first £63 of the debtor's income. However where a bank account is arrested all the money in the account will be attached which can leave the debtor in a state of financial embarrassment. Should the Bill become law social security benefits and pensions would be released from the arrestment thus allowing individuals with the means of sustaining themselves.
As a genuine poverty measure the move has to be welcomed. It is also hoped the Parliament, which will no doubt support the measure, will also ensure an effective alternative will be created filling the gap left following the abolition of poindings and warrant sales. Perhaps the Parliament's mind will be concentrated in considering measures to protect the interest of commercial creditors who are also a part of Scottish society.
Statistics showing insolvencies in the first quarter 2000 were published on the 5 May by the Department of Trade and Industry.
COMPANY INSOLVENCIES
There were 3,408 company insolvencies in England and Wales in the first quarter of 2000 on a seasonally adjusted basis. This was a decrease of 1.6% on the previous quarter, and a decrease of 7.5% on the same period a year ago.
1.1% of active companies became insolvent in the twelve months ended Q1 2000, slightly down on the previous quarter and the corresponding quarter in 1999.
INDIVIDUAL INSOLVENCIES There were 7,662 individual insolvencies in England and Wales in the first quarter of 2000 on a seasonally adjusted basis. This was an increase of 3.7% on the previous quarter and an increase of 11.8% on the same period a year ago.
Number of Insolvencies in England and Wales (seasonally adjusted)
Percentage change
1999 1999 1999 1999 2000 Q1 2000 on:
Q1r Q2r Q3r Q4r Q1p Q4 1999 Q1 1999
Companies 3,684 3,656 3,477 3,464 3,408 -1.6 % -7.5%
Individuals 6,851 7,181 7,383 7,391 7,662 3.7 % 11.8%
p = provisional, r = revised
Prepared by the Government Statistical Service Department of Trade and IndustryThe Official Insolvency Statistics are the most comprehensive record of the number of insolvencies and bankruptcies and provide a more accurate picture for analysing business conditions. The figures include businesses and individuals, with a breakdown by type of insolvency procedure. The figures treat Scotland separately (as insolvencies are defined differently in Scotland) and give an industrial analysis (for which the figures are published one quarter in arrears).
The statistics are derived from administrative records of the DTI Insolvency Service and Companies House Executive Agencies. The figures for company insolvencies are made up of compulsory liquidations (winding-up orders made by the courts) and creditors' voluntary liquidations registered at Companies House. Figures for individual insolvencies comprise bankruptcy orders and individual voluntary arrangements under the Insolvency Act 1986 and deeds of arrangement under the Deeds of Arrangement Act 1914.
Numbers of insolvencies are not directly comparable with numbers of new business formations. Statistics of business starts and stops that are directly comparable with each other have been assembled from VAT records and are published by the Department of Trade and Industry. The latest figures are those for 1998, and were issued in a DTI press notice on 26 August 1999. More detailed figures are available via the on-line database NOMIS. Additionally, analysis into the number of firms in the United Kingdom estimated the total number of businesses at the start of 1998 at 3.7 million.
COMPANY WINDING UP AND BANKRUPTCY PETITION STATISTICS FIRST QUARTER 2000
The Lord Chancellor's Department on the 5 May 2000 published statistics for company winding up, and creditors' and debtors' bankruptcy petitions issued in the High Court and county courts of England and Wales during the first quarter of 2000.
Table 1 shows the number of company windings up, and creditors' and debtors' bankruptcy petitions issued for each year by quarter, since 1995.
In the first quarter of 2000 the following number of petitions were issued:
Figures on insolvency petitions are published on a quarterly basis. The publication date for the figures covering the second quarter of 2000 will be Friday 4 August 2000.
The 2000 figures are provisional and liable to revision to take account of any late amendments.
*** 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 08/05/2000 to 16/05/2000 Number of Creditor meetings : 146 Section Company Time Venue 138 Scotland - Interim Liquidator calling Creditors Meeting 08/05/2000 Hermes Training Ltd 12.00 pm Glasgow ITD Transport Ltd 03.00 pm Glasgow 11/05/2000 Level Nine Europe Ltd 11.00 am Perth 15/05/2000 John Smith (Transport Contract) Ltd 11.00 am Glasgow 16/05/2000 Arrina (Caledonia) Ltd 10.00 am Aberdeen 48 Receiver calling unsecured Creditors Meeting 08/05/2000 Gull Trailers Ltd 10.30 am Nottingham Kenwootton Ltd 10.30 am Nottingham Wootton Trailers Ltd 10.30 am Nottingham 09/05/2000 Faststay Ltd 10.30 am Bristol Pearce Buckle Ltd 11.15 am Manchester 15/05/2000 Fire (Realisation) Ltd 10.00 am London Nationwide Security Group Plc 10.00 am London Services (Realisation) Ltd 10.00 am London Systems (Realisation) Ltd 10.00 am London 16/05/2000 Sport-Casual Direct Ltd 11.45 am London 67 Scotland - Receiver calling Meeting of unsecured Creditors 10/05/2000 CDC (Crisps) Ltd 02.00 pm Glasgow 84 N. Ireland - Creditors Voluntary Liquidation 16/05/2000 James Nimmons & Sons Ltd 03.00 pm Belfast 95 Members converting to Creditors Voluntary Liquidation 10/05/2000 P A Signs Ltd 11.00 am Manchester 98 Creditors Voluntary Liquidations 08/05/2000 Chariots Automotive Innovations Ltd 11.00 am London Culinary Crafts Ltd 11.00 am Sheffield DJs Automobile Engineering Ltd 10.30 am Sheffield Dalmani Knitwear Ltd 11.30 am Nottingham Discount Fuels (Northern) Ltd 10.30 am Gainsborouh Diskgem Ltd 03.15 pm Edinburgh Ellamees Ltd 11.30 am Leicester Furniture Framemakers Ltd 03.30 pm Derby IQ Marketing Partnership Ltd 03.30 pm Slough Lexiconi Construct & Development Co Lt 10.15 am Kingston-u-Tham One Only Ltd 02.30 pm Richmond Pooltone Ltd 03.00 pm London Red Tag Imports Ltd 03.00 pm Manchester Standard Networks (UK) Ltd 11.00 am Basingstoke TFM Facilities Services Ltd 11.30 am Manchester Tempest Software Ltd 10.30 am Leeds Therm-O-Glaze UK Ltd 10.30 am Harrow Tower (Otterburn) Ltd - The 11.30 am Carlisle Toy Planet Ltd 10.15 am London Trio Contract Furnishers Ltd 02.00 pm Derby Wallace Clark Services Ltd 11.30 am Darlington Yamina Ltd 12.30 pm London 09/05/2000 A T F Urquhart (Ullapool) Ltd 12.00 pm Nairn Acetree Ltd 11.00 am Barnet Attention Ltd 02.30 pm Paddington Coastal Foods International Ltd 12.00 pm Manchester Confidential Document Destruction Ltd 11.00 am Evesham Eastlook Ltd 03.00 pm Manchester Elite Conveyor Services UK Ltd 10.30 am Driffield Elno Computers Ltd 12.00 PM Dungannon Embassy Exhibitions Ltd 12.00 pm Birmingham Farmer Cabins Ltd 11.30 am Fulford G Maggs & Son Ltd 11.00 am Bristol Hawick Hosiery Ltd 10.30 am Edinburgh Hussain Central T V Ltd 11.00 am Birmingham John Thompson Builders & Contract Ltd 10.30 am Derby Kato Communications Ltd 11.15 am London Lyrescourt Ltd 11.00 am Wolverhampton Retreat (West Sussex) Ltd - The 11.30 am London Right Handed Frog Ltd 11.00 am Brighton S N S Posters & Publications Ltd 11.05 am Brighton Shaw Design Associates Ltd 11.30 am Lutterworth Swiftsnow Ltd 12.00 pm London U S Apparel Ltd 02.30 pm Manchester 10/05/2000 1st Call Roofing Solutions Ltd 11.00 am Northampton Cladar Ltd 11.00 am Portsmouth Clothing Manufacturer Ltd - The 10.30 am Leicester Computers Ltd 11.00 am London Danum Transport Ltd 12.30 pm Wakefield Deville Associates Ltd 11.00 am London GBS Business Support Ltd 02.30 pm Leeds Horncastle Mushrooms Ltd 11.00 am Sheffield Impress Ltd 11.00 am Wakefield In-step Sales & Marketing Ltd 11.15 am Kingston-u-Tham Organic Roundabout Ltd - The 11.00 am Birmingham PDC (Building Services) Ltd 03.15 pm Bately PDC (Design Build) Ltd 03.45 pm Bately PDC (Project Management) Ltd 02.45 pm Bately Palmfine Ltd 02.45 pm Cambridge Premier Copy Solutions Ltd 10.30 am Sheffield Project Design Consult (Holdings) Ltd 02.15 pm Bately Reindear Express Ltd 10.30 am Manchester Thames Mouldings Ltd 10.45 am Southend-on-Sea UK Action Ltd 11.00 am London Voyager PC Ltd 11.00 am Manchester 11/05/2000 Border Demolition (2000) Ltd 11.30 am Manchester Dealshow Ltd 11.00 am London Departures Travel Ltd 12.00 pm Manchester Femco Moulds Ltd 11.30 am Epping Foster Tyres Ltd 02.30 pm Ipswich Freephone Direct Ltd 10.30 am Sheffield Glaze UK Ltd 11.00 am London Harris & Waley Ltd 10.30 am Derby Henley Burrowes & Co Ltd 11.30 am Worcester High Oak Ltd 12.00 pm London Homeplus (Newport) Ltd 02.00 pm Newport Inter Market Futures Ltd 11.30 am Ilford Lamro Ltd 10.00 am Chelmsford Meridian Care Homes Ltd 02.30 pm London Message Ltd 11.00 am London Playpen Day Nursery Ltd 10.15 am Salisbury Saloon Ltd 12.00 pm Hale Silvermove Ltd 11.30 am London Sneyd Carpets Ltd 10.15 am Newcastle Swans Music Ltd 12.00 pm Manchester Trans American System Ltd 10.30 am Liverpool 12/05/2000 Alltex Interiors Ltd 01.30 pm St Albans Benfield Automobile Transmissions Ltd 02.30 pm London Colchester Town Ctre Management Co Ltd 03.45 pm Colchester Curtain Clearance Co Ltd 12.30 pm Newcastle-u-Tyn Delta Building Services Engineers Ltd 11.30 am Plymouth Electro-Voice Products Ltd 10.30 am Watford Express Systems Transport Ltd 12.00 pm London Fabrica (UK) Ltd 12.00 pm Manchester Jinosko Technology Services Ltd 10.30 am Manchester London Taxi Centre Caterers Ltd 11.15 am London London Taxi Centre Diesel Ltd 10.45 am London London Taxi Centre Ltd 10.15 am London Mantisflow IT Ltd 11.20 am London Maverick Knitting Ltd 11.30 am Leicester Max Construction (NE) Ltd 11.00 am Newcastle-u-Tyn Nutt & Co Ltd 11.30 am York Outline Engraving Ltd 11.30 am Liverpool Senate Contracts Ltd 11.30 am London Thermal Tempest Heating Equipment Ltd 11.30 am Peterborough Treseders Wholesale Oils Ltd 03.00 pm Swansea 14/05/2000 Sullivans Picture Finishers Ltd 11.00 am Cambridge 15/05/2000 A F S Engineering Ltd 12.00 pm Birmingham Canard Foods Ltd 11.30 am Birmingham Century Seal Windows Ltd 02.30 pm Manchester Christys of Thames Ditton Ltd 11.15 am Kingston-u-Tham Industrial Roofing Services Ltd 11.00 am Bristol Monoword Ltd 10.15 am Worthing PK Partitions Ltd 11.15 am Haywards Heath R C M (UK) Ltd 11.30 am Liverpool 16/05/2000 Ben Lomond Whisky Centre Ltd 12.00 pm Glasgow Bransby & Son Ltd 02.30 pm Hyde British Landscape Ind Train Org Ltd 01.30 pm Bradford Copytech Business Machines Plc 10.45 am London Cromcord Ltd 11.00 am London Hayden Advertising Consultants Ltd 02.30 pm London O H F Ltd 11.30 am Southend-on-Sea P F S (Coventry) Ltd 12.00 pm Birmingham Poseidon Pictures Ltd 11.00 am London Premier Controls (Bedfordshire) Ltd 11.00 am South Ruislip Toptarif Ltd 02.30 pm Hyde Victory Press Ltd 11.15 am Bromley Visual Media Ltd 11.30 am Liverpool
TW LW TW LW
USA 1.54 1.57 Canada 2.30 2.32
Austria 23.82 23.83 Portugal 347.19 347.24
France 11.35 11.36 Belgium 69.85 69.87
Finland 10.29 10.29 Italy 3353.15 3353.76
Germany 3.38 3.38 Sweden 14.06 14.09
Holland 3.81 3.81 Switzerland 2.68 2.72
Spain 288.14 288.20 Ireland 1.36 1.36
Australia 2.61 2.68 Denmark 12.90 12.91
Hong Kong 12.02 12.25 Euro 1.73 1.73
Africa Com 10.80 10.76 Saudi Arabia 5.78 5.90
India 67.37 68.65 Malaysia 5.86 5.97
Singapore 2.65 2.68 Norway 14.05 14.12
Japan 166.86 169.39
TW This week LW Last week.
Jarvis Porter announced pre-tax losses of 24.9 million pounds, on turnover of 108.8 million, for the year ending 29th February 2000.
Nord Anglia, the private education group, announced pre-tax profits of 1.59 million pounds, after exceptional credit, on turnover of 31.2 million, for the six months ending 29th February 2000. Earnings per share stand at 5.7p.
Uniliver, an Anglo-Dutch consumer-products giant, bid $18.4 billion for Bestfoods, a large American food company. Bestfoods rejected the deal. It may be hoping to extract a higher bid. Shares in rivals H.J. Heinz and Campbell Soup jumped on predictions of further industry consolidation.
Source - The Economist
Associated British Ports, Britain's largest port operator, said that Nomura a Japanese investment bank, had made an offer for the company, thought to be worth around 1 billion pounds ($1.6 billion). Nomura recently bid 402m pounds for Hyder, a heavily indebted Welsh utilities company.
Source - The Economist
Merger talks between Young & Rubicam, an American advertising agency, and WPP, a British counterpart, collapsed amid accusations from both sides that the other had tried to change the terms over Y&R's level of autonomy. Y&R then announced it would merge with Publicis, a French agency. Both deals valued Y&R at up to $5.5 billion.
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 Richmond Foods plc of AFF, a division of Allied Foods Ltd
Proposed acquisition by Electricite De France through its wholly owned subsidiary The London Power Company Plc of Sutton Bridge Power Limited
Proposed acquisition by Fergat SPA of 85% of the Issued Share Capital of Dunlop-Topy Wheels Limited
HANSON/PIONEER: KIM HOWELLS ACCEPTS UNDERTAKINGS
Kim Howells, Competition and Consumer Affairs Minister, announced on the 4th May that he has accepted appropriate undertakings from Hanson plc, and that their proposed acquisition of Pioneer plc will not therefore be referred to the Competition Commission. This decision is in accordance with the advice of the Director General of Fair Trading (DGFT).
The undertakings require Hanson to divest, to purchasers approved by the DGFT, such assets, sites and quarries as would reduce their market share:
"On 6 April I announced that I intended to refer this acquisition to the Competition Commission unless suitable undertakings were received from Hanson to remove the competition concerns identified by the DGFT as arising from their proposed acquisition of Pioneer. The DGFT advised me that these concerns could be addressed by undertakings from Hanson to divest certain assets in respect of its production of aggregates, asphalt and ready mixed concrete. " "I invited interested parties to comment on the text of the draft undertakings to the OFT. Following that consultation, the undertakings were revised in some minor respects. The DGFT has advised me that these undertakings are appropriate to remedy the adverse effects of the acquisition.
"I agree with the DGFT's advice and have therefore decided to accept the undertakings in lieu of a reference to the Competition Commission."
The proposed merger between Hanson plc and Pioneer plc was originally notified to the European Commission on 10 February 2000 under the terms of the EC Merger Regulation (Council Regulation 4064/89 as amended by Council Regulation 1310/97). On 7 March the UK requested that the Commission refer the case back to the UK competition authorities under Article 9(2)(a) of the ECMR. The Commission referred the case to the UK on 24 March 2000.
AIR CANADA'S ACQUISITION OF CANADIAN AIRLINES REFERRED TO THE COMPETITION COMMISSION
Kim Howells, Ministers for Consumers and Corporate Affairs, has decided, in accordance with the advice of the Director General of Fair Trading (DGFT), to refer the acquisition by Air Canada of Canadian Airlines to the Competition Commission under the provisions of the Fair Trading Act 1973.
Kim Howells considers that the merger raises concerns in respect of the market for non-stop city-pair flights between Heathrow and Canada. The decision to make the reference does not in any way prejudge the question of whether or not the merger would be against the public interest. It is for the Competition Commission to report on this after investigation. The Commission are to make their report by 3 August 2000.
Shareholders in Boo.com, a privately held Internet sports-goods retailer, want to sell the company after plans for an IPO were abandoned in the wake of declining investor interest in dot.com shares and poor sales performance. Boo.com could now be a target for a retailer or sports-goods manufacturer. Bertelsmann, Europe's biggest media company, likewise abandoned plans to float bol.com, its online bookshop, citing "unfavourable market conditions".
Source - The Economist
23 May 2000 The ICM National Conference and Exhibition Cumberland Hotel, Marble Arch, London W1 Credit Management in the Electronic Age For more details of the Conference or to exhibit phone the ICM Training department on 01780-722907 16 June 2000 The ICM Fellows Luncheon Royal Air Force ClubPiccadillyly, London W1Ticketses are #39.50 plus vat each. To reserve tickets contact the ICM Training Department on 01780-722907 fax 01780 721271 e-mail training@icm.org.uk 20 June 2000 The ICM AGM at 3.30pm The Water Mill, Station Road, South Luffenham, Oakham, Leics, LE15 8NB 5 July 2000 E-Commerce for the Credit Manager New ICM Conference Kenilworth, Warwickshire Contact the ICM Training Department on 01780-722907 e-mail training@icm.org.uk Tuesday 3 October 2000 ICM Credit Scotland 2000 (Conference and Exhibition) Hampden Park Football Stadium, Glasgow Anyone interested in attending (or exhibiting) should contact David Ancliffe on (0131 200 8686). Friday 20 October 2000 Millennium Annual Dinner of the ICM Drapers Hall, City of London.
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