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 5 Issue 46
Dated: 9 December 2001
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKRETAILERS TAKE HEART FROM NOVEMBER SALES RALLY - CBI
Growth in retail sales volumes rallied in November. The increase was unexpected and contrasted with October which had shown the weakest increase in growth this year.
The CBI's quarterly Distributive Trades Survey, published last Tuesday, shows that 50 per cent of retailers said sales volumes were up compared with a year ago, while 21 per cent said they were down. This gives a balance of plus 29 per cent which compares with plus 19 per cent in October and plus 54 per cent in September. A further increase is expected in December. The underlying trend shown by the three-month moving average has fallen back to its lowest level since June indicating a slight weakening in consumer demand.
Sales for the time of year were significantly above average in November despite the expectations of below average sales reported in the October survey. Orders placed on suppliers unexpectedly picked up in November with 42 per cent of retailers saying they were up and 29 per cent saying they were down. This gives a balance of plus 13 per cent which compares with plus 5 per cent in October and plus 36 per cent in September.
Alastair Eperon, Chairman of the DTS Panel and a Director of Boots, said: "Retailers' confidence is holding up and has been boosted by the increased sales volumes in November. Stores are now hopeful that consumer spending in the run-up to Christmas will protect the retail sector from the severe slowdown already hitting the rest of the economy."
Stores selling durable household goods maintained the strongest increase in sales volumes compared with a year earlier. Strong increases were also reported by booksellers and stationers and stores selling footwear and leather. Chemists, Hardware, China and DIY stores, specialist food shops and grocers reported smaller but still significant increases in volumes. Furniture and carpet retailers and clothing stores experienced only modest growth.
Retail prices continued to rise in November but at a slower rate than reported in August. A more modest rise is expected in December.
Retailers' optimism remains positive although it has weakened since August. Thirty-one per cent of firms expect the business situation to improve over the next six months while 13 per cent expect it to deteriorate. The balance of plus 18 per cent compares with plus 21 per cent in August.
Firms' investment intentions have weakened and point to spending levels similar to the past 12 months. A moderate increase in jobs is expected in December following no change in November.
Wholesalers also reported that annual sales had picked up in November, the first increase since the August survey. Sales are expected to grow at a slower rate in December. Orders started to rise after five consecutive months of decline, a moderate fall is expected in December.
Motor traders' annual sales volumes grew at a faster rate in November, despite prior expectations of a fall. Volumes are expected to fall in December but the three-monthly trend remains unchanged indicating stable growth.
SURVIVING THE CONSUMER DOWNTURN: PRICEWATERHOUSECOOPERS GUIDE FOR RETAILERS TO STAY IN CONTROL IN 2002
UK retailers face a flat first quarter in 2002 and need to prioritise capital expenditure, become more flexible on fixed costs and focus on product innovation in order to stay in control, according to retail business recovery experts at PricewaterhouseCoopers. UK retailers will be particularly exposed in 2002 as consumer demand becomes more fickle, undermined by a predicted deceleration in UK economic growth to 2% and the prospect of unemployment rising by 250,000 in the next year alone, according to PricewaterhouseCoopers and the Office of National Statistics.
Retailers who are currently focused on the traditionally high spending Christmas and New Year period need to begin preparing immediately for the challenging trading conditions in 2002. PricewaterhouseCoopers is advising retailers to take five specific steps to survive the downturn:
Richard Boys-Stones, Retail Business Regeneration partner at PricewaterhouseCoopers, said:
"Short-termism could be the retail sector's Achilles heel during a downturn. Those retailers which act sooner rather than later and adopt greater flexibility to costs are best placed to survive a fall in consumer confidence. By putting in place scenario plans so that they can respond speedily to changing trading conditions, retailers maximise their chances of emerging stronger after a downturn."
In its latest UK Economic Outlook PricewaterhouseCoopers predicts that UK economic growth is likely to decelerate from 3% in 2000 to 2% in 2001 and 2002.
PricewaterhouseCoopers Business Recovery Services helps rapidly to rebuild and recover value trapped in under-performing and troubled businesses. The specialist expertise available to corporates and lender institutions includes: business regeneration and turnaround, advice to banks and other lenders, investigations, and insolvency services. The world's largest dedicated business recovery practice, it has over 2,000 professional staff globally assisting troubled companies and, in the UK, includes some of the country's leading insolvency practitioners and CEO-level turnaround managers.
HEWITT ANNOUNCES NEW £20M TO SPREAD MANUFACTURING SUCCESS
Cash backing for exchanging best practice will help employers and employees develop world-class ways of working Trade and Industry Secretary Patricia Hewitt today announced a £20 million cash boost to manufacturing as part of drive to spread excellence throughout the sector.
Addressing representatives of employers, employees and Regional Development Agencies, and fellow Ministers at the Manufacturing Summit in Birmingham, Ms Hewitt announced an extra £20 million over two years to take forward the conclusions of the joint CBI/TUC work on productivity. This money will go towards:
In addition the umbrella national best practice campaign 'Fit for the Future' will be expanded. Both the TUC and CBI will sit on the steering group and develop the campaign's strategy with other key partner organisations.
This additional £20m over the next two years builds on the £20m already committed to the promotion of best practice and the £5m already committed to the Partnership Fund, bringing the total amount that is currently being spent in this area to £45 million.
The Trade and Industry Secretary also announced the establishment of four more Regional Centres of Manufacturing Excellence in the East Midlands, South West, Yorkshire and Humberside, and the North East.
These new Centres join those recently announced in the South East and North West and will provide hands-on advice, support and practical aid to local manufacturers.
Speaking in Birmingham Ms Hewitt said:
"Where business and unions agree on good ideas to raise productivity then the government should look to back them. That's why I am pleased to announce an extra £20m to support a key recommendation from the CBI-TUC work on best practice, boosting measures which we already know to work well.
"These are very tough times for manufacturers and manufacturing workers, many of whom are facing redundancies as a direct result of the global economic slowdown. "We have to do everything possible to help, and that includes celebrating the strengths of many British manufacturing companies. Nobody gains from talking the sector down. It only makes it self-fulfilling, as our bright young people will no longer want to go into engineering, and foreign companies are deterred from investing here.
"But while there is much to celebrate about British manufacturing, we still lag our main competitors in skills, in production techniques, in investment and management expertise.
"No one pretends that these challenges can be met with just one meeting. This is why the Summit must be part of an ongoing commitment to work together.
"So we need to devote all our energies to focus on driving up productivity. Our nation's wealth depends on no less."
"As a government driving up productivity is our No1 priority for manufacturing. We do this by investing in basic science, by pursuing a strong competition policy, by investing in transferable basic skills and infrastructure, by actively promoting knowledge transfer between universities and industry, and by supporting exports, regions in transition, and small companies.
"Business too needs to raise its game. Industry leaders bear a responsibility for the spread of best practice. We will all benefit if the companies manufacturers trade with are as good as the best. And we will all benefit when our country becomes more prosperous as a result.
"The UK has some of the best manufacturing companies and workers in the world and there is much that we can learn from them. By investing in best practice and spreading manufacturing excellence we can help the entire sector meet the challenges of the future.
"I am asking the RDAs to take the lessons from today and drive forward this agenda in the regions with manufacturers, unions, and other local partners to implement an industrial strategy for their region."
Speaking on the exchange rate, Patricia Hewitt said:
"Many manufacturers are facing very real difficulties as a result of the weakness of the euro. British membership of a successful single currency offers us potential benefits in terms of trade, transparency, costs and currency stability, which is why we support it in principle.
"But in practice the economic conditions must be right, which is why the Government is committed to a rigorous and comprehensive assessment of the five economic tests, which include the impact of membership on investment and jobs."
"But we must also avoid thinking that a different exchange rate would solve all the problems our manufacturing companies face. In fact, in the 1960s and 1970s when sterling was falling, our productivity gap with France and Germany actually widened.
"Whatever the exchange rate, we must work together to drive up productivity and competitiveness - particularly in companies that have been lagging behind."
Also speaking at the summit were Education Secretary Estelle Morris and Minister for Work Nick Brown:
Education Secretary, Estelle Morris said;
"This is a key time for the world economy and the need for a highly skilled, well trained workforce has never been greater. Business and government have been working together to tackle the skills gaps which have held back some businesses at a time of economic growth. Last week, for example, we announced plans to make work based training for young people in England match the best in the world through a new generation of Modern Apprenticeships. "For too long we have fallen behind our European competitors by not recognising that skills and knowledge are the key resources that enable people and the economy to deal with change. The challenges that we face today will be far greater in the future if we don't work together to bridge the skills gap."
Minister for Work, Nick Brown said:
"The Government has worked to build a strong and stable economy, that is well placed to deal with change but we still have more to do. Although new jobs come up all over the country, there are also areas where opportunities are restricted and people who are unable to take them up. That's why most efforts focus on the hardest to help, for example through Employment Zones, Action Teams and policies for Neighbourhood Renewal."
"We want to get more people into better jobs, where they can develop their skills, so that they and their employers can respond effectively to change. Each region must develop its own strategy for ensuring a plentiful and diverse supply of jobs, as well as making sure that people have access to those jobs and the necessary skills to do them."
HOUSEBUILDING: OCTOBER 2001
In October 2001, it is provisionally estimated that 16,300 dwellings were started in Great Britain compared with 13,900 in October 2000. Completions numbered 15,900 compared with 15,000 the previous year.
In the latest three months 45,700 dwellings were started, up 5 per cent on the same three months a year ago, while total completions at 41,000 were down 1 per cent.
In the latest three months there were an estimated 45,900 total starts, at the same level as the previous three months, and up 5 per cent compared with the same period a year ago. On the same basis of comparison private enterprise starts were 42,200, up 1 per cent on the previous three months and also up 8 per cent compared with a year ago.
Total completions were 40,700, including private enterprise completions of 35,400, up 2 per cent and 3 per cent respectively, comparing the latest three months with the previous three months. Total completions were down 2 per cent. Private enterprise completions were down 1 per cent compared with the previous year.
Figures for England show similar trends to those for Great Britain. Total starts, 37,700 for the last three months were at the same level as the previous three months and up 7 per cent on the same period a year ago. Total completions, 32,900 for the last three months, were up 2 per cent over the previous three months but down 2 per cent on the same period a year ago.
INTEREST RATE DECISION "NO SURPRISE" BUT ROOM FOR A FURTHER CUT EARLY IN 2002 - SAYS CBI
The CBI said last Wednesday that the Bank of England's decision to leave interest rates unchanged is understandable but there remains scope for a further reduction early in 2002.
Ian McCafferty, Chief Economic Adviser, said: "This decision is no surprise. Last month's half-point cut was the latest in a series of aggressive rate cuts and it will be difficult to gauge long term trends until after the Christmas period.
"Consumer spending in particular is seasonally buoyed which may make the extent of the economic slowdown and the effect of the cuts to date hard to judge.
"But today's decision should not be taken as a signal that we have had all the cuts the economy needs. Given the lack of inflationary pressure, there is room for a further reduction at some point over the next few months."
MPC RIGHT TO HOLD ITS NERVE - CHAMBERS
Reacting to the Bank of England's decision to hold interest rates at 4.0 per cent, Ian Fletcher, Chief Economist at the British Chambers of Commerce, said:
"Business will welcome the MPC's restraint in keeping rates on hold. Output growth remains strong despite the downturn abroad, and the consumer-side of the economy appears to be bearing up well. There is no reason why we should not avoid recession with appropriate support and it is much better that the Bank pauses and takes stock of the economy.
"The Bank's surprise half-point cut last month was a strong vote of support for British firms, and the domestic news since does not warrant another cut. Today's decision will be seen as prudent but the Bank should continue to monitor events closely and make further cuts if necessary to boost confidence and spending."
The UK's Export Credits Guarantee Department (ECGD) has been a key player in negotiating an historic agreement on improved environmental standards for capital goods exports.
The agreement, to be known as 'Common Approaches on the Environment and Officially Supported Export Credits' ('The Agreement on Common Approaches') seeks to raise environmental standards for capital goods exports, and has been agreed by 24 of the 26 Organisation for Economic Co-operation and Development (OECD) export credit agencies.
ECGD - which has already raised its own environmental screening on projects for which it provides export credits guarantee support - has, since 1999, played a leading role in negotiating the draft Recommendation which was considered last week at a meeting of the OECD Export Credit Group (ECG) in Paris.
Whilst the USA and Turkey were unable to support the implementation of the draft Recommendation, the other Working Party members agreed unanimously that they would implement the provisions of the Recommendation with effect from 1 January 2002.
Minister for Trade and Investment Baroness Symons said:
"The ECG has a mandate from the G7 to secure an agreement by the end of this year. Much time and effort has been put into these negotiations and this agreement sets common approaches to the assessment of environmental impacts of projects supported by export credit agencies.
"Although I am disappointed that the USA and Turkey - for different reasons - are unable to support the Agreement on Common Approaches, I believe this voluntary agreement reached by the remaining 24 OECD countries represents a sound starting point and a platform for further development in the light of experience.
"ECAs have an important role to play in promoting worldwide sustainable development and the UK Government favours a multilateral approach to environmental issues. We wanted to remove the uncertainty over the ECG's commitment to implement an environmental agreement, in the interests of all our stakeholders.
"This notable achievement will also place exporters in participating countries on an equal competitive footing.
"I look forward to the practicalities of implementing the Agreement on Common Approaches being resolved and hope that our American and Turkish partners will see their way to participating in due course."
The main points of the Agreement on Common Approaches which has been reached are:
The OECD is the most significant forum for ECGD's international negotiations.
ECGD, Britain's official export credit agency, benefits the UK economy by helping exporters of UK goods and services win business by providing export credit guarantees, insurance and reinsurance against loss.
One of ECGD's main functions- through its export credit guarantees - is to underwrite bank loans to enable overseas buyers to purchase capital and project related goods and services from the UK, and to insure the return on investments made by UK companies in overseas enterprises.
ICC INFORMATION LIMITED FOCUSES ON SPECIALIST CREDIT MARKET WITH ICC CREDIT
ICC Information Limited, the business information provider, is launching a new brand, ICC Credit, to reflect its focus on credit management services. ICC Credit has been created to deliver critical credit information services, to promote best credit practice throughout UK business and broaden management understanding of the most effective risk management procedures.
ICC Credit's services have been developed to meet the needs of a better-informed business community, offering broader advice to complement the credit information it already supplies. Adrian Howells, Marketing Director of ICC Credit stated that the new brand emphasises ICC Credit's ability to offer a complete credit service.
"Businesses are becoming more and more aware of the need for effective credit management to increase profit margins and bring greater stability, vital during the current economic slow down. ICC Credit has been driving to introduce best credit practice within existing credit departments, as well as educating top management about the need for effective risk management procedures.
"In the modern economy, businesses need more than just information about the companies they trade with and are requesting much more comprehensive and advisory services. ICC Credit still offers high quality credit information but in addition can now advise clients about the introduction of effective risk management procedures by integrating credit information into their whole risk strategy."
ICC Credit's recently launched credit portal (www.icc-credit.co.uk) reflects the first sign of these improved advisory services. This evolution is now further emphasised by the new ICC Credit brand and logo.
For more information and to see further services for the credit industry visit www.icc-credit.co.uk
ICC Credit is a provider of business-to-business information through a range of electronic and hard-copy media. The company is an acknowledged authority in the field of company information in UK and Ireland.
You can obtain your ICC reports by going to http://www.creditman.co.uk/icc/icchome.html
ICC Credit is part of the largest company in the Bonnier Business Information group and currently employs around 180 people. The company's headquarters are in Hampton with regional offices in Cardiff, London and Wetherby. ICC Credit has achieved both ISO9002 approval for data compilation and analysis and BSI-DISC PD0008 for the legal admissibility of electronically stored documents.
LATEST CSA REPORT SHOWS IT'S TIME FOR A NEW APPROACH TO CONSUMER DEBT
The Credit Services Association (CSA) issued a report this month, which not only highlights the massive increase in consumer debt but also underlines a change in attitudes towards debt recovery amongst lenders and debt collection agencies themselves.
Consumer debt in the UK has now reached a staggering £50 billion, with credit card lending having all-but doubled over the last four years and structured personal loans overtaking overdrafts as a primary source of finance in the same period.
With nearly half (47% - i.e. 22 million people) of the adult population now having a store card, lenders are placing even greater on customer retention as competition grows. The research went onto explain that market conditions had influenced the approach debt collection agencies are taking as greater emphasis is being placed on maintaining a long-term relationship with the customer.
Ken Maynard, Managing Director of Cabot Financial, a market leader in debt Purchase and management and a member of the CSA comments, "We welcome the findings of this report at a time when it is important for banks and financial institutions to consider the type of company they partner with when recovering and managing debt."
Cabot has adopted a unique approach called Polite Persistence. The foundation of this approach is to build a positive and trusting relationship with the customer. The other key element in all collections activity is the safeguarding of the original lender's reputation. Cabot's approach is therefore relationship rather than transactional driven.
Mr Maynard continues, ". At Cabot, we pride ourselves in treating cardholders and borrowers as customers and manage them with respect while trying to negotiate a payment plan that is effectively adhered to and is realistic".
Ken Waters, President of the CSA commented further, "These changes in attitude have in turn impacted on the approach of the debt collection agencies. The research found that the emphasis of initial customer contact has now moved away from a relatively 'hostile' contact aimed at collecting overdues, to one of 'customer-care'; maintaining the relationship with the customer, and encouraging the customer into better payment habits."
The report continued to explain a growing trend amongst lenders towards using fewer agents with closer contact and integrated information systems suggests that there will be fewer collection agencies in the future, but they will be larger and more sophisticated.
"We achieve excellent productivity through a combination of quality information systems and collection procedures together with a highly trained and motivated team. We use state-of-the-art call centre technology and have a sophisticated IT functionality. Every client that Cabot has partnered with has returned to us for a repeat transaction." commented Mr Maynard.
GETPAID INTRODUCES DRS AUTO TRACK FOR AUTOMATIC TRACKING AND ESCALATION OF PROBLEM INVOICES
Parsippany, NJ, December 6, 2001- The GETPAID® Corporation, a leading supplier of receivable management software and services, announced today the availability of DRS AutoTrack for the tracking of problem invoices through the resolution cycle, expediting cash collections and improving customer service.
DRS AutoTrack operates with the GETPAID Dispute Resolution System (DRS) to help speed the resolution of problem invoices by facilitating internal communication and instituting a proactive tracking system that includes the ability to automatically monitor and escalate problems to ensure resolution.
"The GETPAID product planning and development team routinely works in collaboration with our customer base to determine areas for advancement," comments C.J. Wimley, senior vice president, product planning and development at The GETPAID Corporation. "Through this process, we discovered that one of the biggest obstacles in timely dispute resolution is the ability to proactively track and monitor the disputes and DRS AutoTrack addresses this issue. We anticipate that this product will have a significant impact on the resolution life-cycle."
Managing Problem Invoices
DRS AutoTrack monitors open disputes and then using pre-built Auto-escalation Chains, configured with time intervals and managerial levels, problems not receiving appropriate attention will be escalated to the next appropriate step and notification will be sent. Auto-Escalation Chains are configurable, user-defined paths of action that can consist of an
unlimited number of escalation steps.
About The GETPAID Corporation
The GETPAID Corporation is the leading provider of collection and dispute resolution software used by thousands of commercial collectors in B2B credit departments to manage billions in past due receivables. GETPAID is based in Parsippany, NJ, with offices worldwide including the UK.
The GETPAID product line includes advanced collection and dispute resolution systems with multiple currency and languages for global use, a powerful report writer, and a web-enabled product.
The GETPAID Professional Services team is comprised of experts who deliver installation, system configuration, training and on-going support services to the more than 500 installations worldwide in a wide array of companies, industries and environments.
For more information visit www.getpaid.com
OFT SEEKS FIRST STOP NOW COURT ORDER
New powers which allow the OFT to act more quickly against unlawful trading practices are being used for the first time in court, against a business supplying kitchens.
The proceedings in Manchester County Court are against Craftsmen Kitchens Ltd, Craftsmen Kitchens Manufacturing Ltd, and George Brown, Nichola Brodie, Vance Miller and Sadiya Hussein.
The OFT and trading standards have received a very large number of complaints from all over the country about these companies supplying shoddy kitchens or failing to deliver ordered parts.
The OFT gave the businesses a full opportunity to put things right by undertaking that they would comply with the law but they did not respond.
John Vickers, Director General of Fair Trading said:
'The new Stop Now powers are starting to deliver results for consumers. The OFT has successfully used the powers in a number of cases to stop unfair trading practices. These successes have been achieved because businesses have agreed to change their practices. But where businesses refuse, we will take court action to get the same result, as this action shows.'
Under the Stop Now Regulations, the OFT can apply for a Court order against traders who breach or are threatening to breach a number of laws harming the collective interests of consumers covered by those laws. It can seek written assurances in lieu of court action.
The Regulations cover the following areas: doorstep selling, timeshare, unfair contract terms, consumer credit, distance selling, package travel, package holidays and package tours, misleading and comparative advertising, sale of goods rights, TV broadcasting activities and advertising of medicinal products for human use.
TWO THIRDS OF AMERICANS PLAN TO CUT BACK ON CREDIT CARD USE THIS HOLIDAY SEASON
Contributed by collectionindustry.com at www.collectionindustry.com a Kaulkin Ginsberg Company.
66% of Americans plan to use either less credit than a year ago or no credit as they buy holiday gifts, according to the initial release of the Cambridge Consumer Credit Index.
The Index is sponsored by the Debt Relief Clearinghouse, America's premier-debt-management referral service. In a nationwide poll of 1000 adults done by ICR/International Communications in the past week, 30% of Americans plan to use less credit than they did a year ago and 36% will not use any credit card debt at all when buying gifts. In contrast, 31% plan to use about the same amount of credit card debt as last year and only 4% expect to use more credit card debt. Jordan Goodman, spokesperson for the Index, says: ``Clearly consumers are approaching this holiday season in an extremely cautious mood, with most unwilling to take on additional debt for gifts.''
The Index also asked consumers who are going to use credit cards for gifts whether or not they expect to pay these bills off when they arrive in January. Fully 55% expect to pay their credit card bills off in full next month, while 39% expect to carry a balance and pay interest for at least a month after January. Only 6% thought they would pay off some, but not all of what they spend when the bills come in January.
The initial reading for the Cambridge Consumer Credit Index is 60. This means that on average 40% more Americans are paying off debt than are adding debt. That number is a composite of the three questions asked of respondents:
— In the past month, have you taken on more debt or paid off debt?
In December, 31% of consumers say they have taken on more debt, with 23% taking on a little and 8% taking on a lot more debt.
Conversely, 69% of Americans have paid off debt, with 49% paying off a little and 20% paying off a lot. The index reads 62 on this question.
— In the next month, do you anticipate taking on more debt or paying off debt? In December, 26% plan to take on more debt, with 6% planning to take on a lot and 20% planning to add a little debt.
Conversely, 74% expect to pay off debt, with 58% paying off a little and 17% paying off a lot. The index reads 52 on this question.
— In the next six months, do you expect to take on debt because you are thinking of making a major purchase such as a car, education, appliance, medical procedure furniture or carpeting? 33% of Americans plan to take on more debt to make such purchases, with 10% taking on a lot of debt and 23% taking a on a little debt. In contrast 67%of Americans plan to pay off debt in the next six months, with 46% expecting to pay off a little and 21% expecting to pay off a lot. The index reads 66 on this question.
— "While two-thirds of Americans are or are planning to pay off more consumer debt, it is surprising that about one-third of Americans are or are expecting to go further into debt," says Index spokesperson Jordan Goodman. "At a time of rising layoffs and uncertain job security, it is dangerous for so many Americans to be adding to their already formidable debt burden."
The Index survey is conducted by ICR (International Communications Research) of Media, Pa., over five days in the week before the index is released. 1000+ households throughout the country are polled with a margin error of plus or minus three percentage points. The Index is released on the fifth business day of every month to coincide with the Federal Reserve Board's G19 release of consumer credit outstanding data.
The Debt Relief Clearinghouse, which sponsors the index, refers consumers to the debt-management agency best able to handle their problem. To date thousands of clients with excessive credit-card debt have been referred to Cambridge Credit Counseling Corporation, based in Agawam, Massachusetts and the Brighton Credit Management Corporation, headquartered in Palm Beach Gardens, Florida. Cambridge and Brighton help thousands of Americans in financial distress by educating them on how to use credit wisely while in turn negotiating lower interest rates, waiving late and/or over limit fees with creditors to help consumers repay their unsecured debt obligations. Unlike other debt management firms, Cambridge and Brighton offer programs that pay a rebate to qualified clients of half the ``Fair Share'' contribution received from creditors for every six months that the client pays their bill on time. These programs, known as the Good Payer Program at Cambridge and the Bonus Payment Program at Brighton, have helped thousands of Americans repay their debt load while rewarding them for their commitment to reduce their debt.
For more information about the Cambridge Consumer Credit Index, contact Paramjit Mahli at pmahli@cambridge-credit.org or 800-804-0575, or economist Allen Grommet, who provides an economic analysis of Index results, at agrommet@cambridge-credit.org or 800-804-0575, or the Cambridge website at www.cambridgecredit.org. Consumers wishing to find out more about Debt Relief Clearinghouse's referral services should call 1-888-4DEBTHELP or visit www.debtreliefonline.com
Administrative receivers from business advisory firm KPMG have today been called in at Midlands-based UPF (UK) Ltd.
The UPF group consists of three divisions - Thompson Chassis in Wolverhampton, Homer Pressings in Walsall and Thompson Congleton in Congleton, Cheshire. The main Wolverhampton site employs 447 people, with a further 118 employed in Walsall and 214 in Congleton.
Thompson Chassis supplies some of the biggest names in the automotive industry, including Land Rover, Rolls Royce and General Motors, with their products being used in vehicles such as the Discovery and the Frontera.
Two key factors have been blamed for the company's demise. They are the failure last November of the group's German subsidiary, Meckenstock, and the significant investment required in setting up a US operation to supply General Motors with chassis for use in its new truck to be launched this month. Both of these events placed an incredible strain on the rest of the group.
Commenting upon the announcement, Mark Orton, one of the administrative receivers from KPMG in Birmingham said: "Despite the problems which the group has suffered from in recent times, we are still continuing to trade the business. We are talking to all our major customers and look forward to an ongoing trading relationship with them. Our intention is to find a buyer as a going concern in order to preserve as many jobs as possible."
ENRON EUROPE LTD (IN ADMINISTRATION)
PricewaterhouseCoopers, administrator to the European holding company of the Enron group, announced that approximately 1,100 redundancies have been made in the UK across the group, with 250 staff retained.
Tony Lomas commented:
"The over-riding priority is to preserve the valuable parts of the business and to reduce the cash needs of the business whilst seeking to secure the future of certain Enron businesses and its employees."
The administrators are currently in discussions with regard to the sale of the metal business.
*** 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.pl
TW LW TW LW
USA 1.42 1.42 Canada 2.24 2.25
Austria 21.93 22.14 Portugal 320.78 322.57
France 10.49 10.55 Belgium 64.54 64.90
Finland 9.51 9.56 Italy 3098.16 3115.44
Germany 3.12 3.14 Sweden 14.99 15.27
Holland 3.52 3.54 Switzerland 2.36 2.36
Spain 266.22 267.72 Ireland 1.26 1.26
Australia 2.75 2.75 Denmark 11.91 11.97
Hong Kong 11.11 11.15 Euro 1.60 1.60
Africa Com 15.91 14.87 Saudi Arabia 5.34 5.36
India 68.28 68.45 Malaysia 5.41 5.43
Singapore 2.60 2.61 Norway 12.77 12.80
Japan 177.85 177.09
TW This week LW Last week.
Ford has given a profits warning.
The British advertising company Cordiant Communications has issued its third profit warning.
Alba, the electronics and appliances manufacturer, announced pre-tax losses of 12.3 million pounds, on turnover of 161.8 million, for the six months ending 30th September 2001.
Dewhurst announced pre-tax profits of 1.36 million pounds, after exceptional charge, on turnover of 22.9 million, for the year ending 30th September 2001. Earnings per share stand at 8.4p.
Dyson announced pre-tax profits of 1.64 million pounds, after exceptional credit, on turnover of 34.2 million, for the six months ending 30th September 2001. Earnings per share stand at 7.54p on reduced capital.
Sage, the software group, announced pre-tax profits of 121.3 million pounds, on turnover of 484.1 million, for the year ending 30th September 2001. Earnings per share stand at 6.5p.
Six Continents, the leisure group, announced pre-tax profits of 690 million pounds, after exceptional charge, on turnover of 4,033 million, for the year ending 30th September 2001. Earnings per share stand at 53.2p.
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:Proposed acquisition by South Downs of Brockhampton Holdings
Completed acquisition by Capital Radio plc of 19% of the share capital of Tainside Limited
Completed acquisition by Daily Mail and General Trust plc of the Loot business of Scoot.com plc
Acquisition by A&P Group Holdings Ltd of assets of Cammell Laird Group plc
Small Enterprises urged to take advantage of tax breaks, which could cut fast Internet bills by 20%
E-commerce Minister Douglas Alexander today set out a comprehensive package of measures to advance broadband Britain and urged businesses to take up Government tax breaks which could cut more that £50 off a typical £260 broadband connection bill.
He also published the Government's response to the first report by the Broadband Stakeholders' Group, established to advise the Government on the further steps necessary to facilitate the rollout of broadband services across the UK.
The Government's strategy includes measures to:
Small enterprises can claim 100% first year allowances on their investment between 1st April 2000 and 31 March 2003 on the capital costs of getting connected to broadband.
Douglas Alexander said:
"These initiatives map out a route forward for the UK's broadband industry.
"The UK is one of the world leaders in internet use and e-commerce.
"This strategy will help us to build on this success for the broadband sector.
"As the stakeholders' group has made clear, there is no individual measure which, on its own, is the answer.
"What is needed is a comprehensive approach which tackles both supply and demand for broadband services. This strategy provides that route map to progress this agenda.
"Too many people in the sector don't realise that there are a number of relevant initiatives including tax relief on establishing and maintaining broadband connections, that also apply to employers paying for connections at employee's homes."
The Government has accepted the approach of the Broadband Stakeholders Group - indeed we have accepted 14 of the group's 15 recommendations.
The strategy includes the establishment of a pilot Broadband Brokerage service, in the East of England initially, which will allow companies, public sector organisations and individuals to collectively broker their demand for broadband services.
Peter Radely, Chairman of Alcatel, said:
"We are very encouraged that the government has responded positively to the wide ranging recommendations from the Broadband Stakeholders' Group."
Jim Norton, Chairman of the Broadband Stakeholders' Research Group said:
"The next phase involves much detailed work on implementation and turning concepts such as public aggregation procurement into reality on the ground. The skills of the Broadband Stakeholders' Group participants in the detail of business change will be made available to support these crucial developments."
The Stakeholders' Group report and Government response were both published at a high level summit - 'Broadband Britain: the content challenge'. At a summit leading figures from the both content and infrastructure sectors will be bought together to look at what practical steps can be taken to ensure that the UK will be the home of world-class broadband content for years to come.
Broadband is fast 'always on' Internet access. It is enhances Internet services providing video on demand, video conferencing, interactive television and on-line gaming. With traditional 'narrowband' technology, an estimated one-third of user time on-line is spent waiting.
Copies of the two reports are available at: www.e-envoy.gov.uk3. The Broadband Stakeholders Group brings together organisations from the broadband supply industry, the content industry, private and public sector users of broadband and consumer representatives.
HAPP E-BIRTHDAY
The UK online second annual report was launched last week, by DTI Secretary of State, Patricia Hewitt and e-Envoy Andrew Pinder. It marks the huge progress made towards ensuring that the UK is a world leader in the knowledge economy.
In the past twelve months great leaps have been made getting UK citizens online, in e-commerce and e-government. We now have the highest Internet use in Europe with 51% of the people in the UK now regularly logging on.
This time last year, public understanding of UK online was low - today the 'Let's all get on' campaign is the first interactive advertising campaign run by the Government and one of the most successful ever on digital television. Nearly 50,000 people have contacted us and taken their first steps to getting online.
This time last year, there were no UK online centres. Today there are more than 2,000 UK online centres in local communities with most offering free or low-cost access to the Internet and training for those less familiar with computers. By the end of 2002 there will be 6,000 UK online centres, including 3000 in local libraries right across England.
This time last year, there were 1.7 million SMEs online, today there are 1.9 million, which is well ahead of the government target. The past 12 months have seen sales conducted over the Internet reach £57bn.
This time last year, the Government Gateway didn't exist. Today 178,000 registered users and 10,000 businesses interact with it, electronically completing a wide range of forms through this single Internet point. The Gateway is so successful it is used as a role model for governments around the world.
Monday 10 December Wessex Branch of the ICM Quiz Night - Sponsor Virtual Mailroom Ltd Venue - Royal Southampton Yacht Club 1 Channel Way, Ocean Village, Southampton SO14 3QF Time : 7.00 pm for 7.30 pm Refreshments provided Monday 14th to Thursday 17th January 2002 ICM Examinations Thursday 24 January 2002 Sussex & Surrey Branch of the ICM Annual General Meeting Followed by Dinner. Speaker: To be advised Venue - The Imperial Hotel, Hove Time: 7.00 for 7.30 p.m. 27 - 29 January 2002 FCIB - A Global Association of Executives in Finance, Credit & International Business 108th International Conference & Workshop In Europe Amsterdam Marriott Hotel The Netherlands For further information Telephone: + 44 (0) 1865 481 630 Fax: + 44 (0) 1865 481 482 Email: timlane@fcib-europe.org Website: www.fcibglobal.com Friday 22 February 2002 Debt Sale & Purchase Credit Today, Savoy Hotel, London The second annual debt sale and purchase conference chaired by Rob Levick. For details e-mail carleen@credittoday.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 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 +44 (0)20 7010 2568 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 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 tojarnold@creditman.co.uk
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