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 31
Dated: 12 August 2001
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKHOUSE SALES SLUMP BY 35 PER CENT IN 12 MONTHS: PRICE REDUCTIONS IMMINENT
House prices may be on the increase but the all important and often ignored measure - the number of actual house sales - has slumped by over 35 per cent in the last 12 months, according to figures released by Experian on the 6 August.
The total number of house sales has progressively declined, quarter by quarter, over the last 12 months, from 270,579 sales in the second quarter of 2000, to 175,244 sales in the first quarter of 2001 with the downward trend set to continue. The same downward spiral of sales is repeated at the prestigious end of the market - in homes worth more than £1 million - which has experienced a 21 per cent decline in sales over the same period.
"The decline in sales is affecting every section of the housing market and in every area of England and Wales", comments Bruno Rost of Experian. "Although house prices have appeared to rise, the actual volume of sales has taken a nose dive in all areas. It is inevitable that estate agents and house builders will begin reducing prices in order to maintain their margins and the momentum of business.
"It has yet to be seen whether this signals the beginning of a sustained downturn in house values, or a plateau in a generally upward market, but if combined with growing economic depression, job losses and declining corporate profitability, then it is highly probable that a period of subdued or reducing house prices is on the cards."
PROPERTY PRICE REPORT SHOWS 10.83% INCREASE IN PRICES
Average house price in England and Wales now £117,398
The Land Registry on the 8 August published its latest quarterly residential property price report, covering the period April - June 2001, in electronic format only on its website at www.landreg.gov.uk. This is a new service and enables the Registry to publish its data three weeks earlier than usual. Printed copies will be available from Wednesday 29 August.
The report compares average prices and volume of sales with those for the same period in 2000. It also gives a breakdown of the average sale prices of old and new properties, by property type.
The following information is contained in the report:
England and Wales
Greater London
MIDLANDS BUSINESSES ARE STILL SHOWING RESILIENCE AS THEY AWAIT US FALL-OUT
As businesses and commentators alike await the full fall-out of the US economy's slowdown, Midlands businesses look well set to weather the storm.
In the second quarter of 2001, only 94 Midlands businesses showed signs that they were struggling, compared to 120 in the previous quarter and 106 in the second quarter of the previous year.
According to the quarterly stats from business advisory firm KPMG, 22 of those 94 businesses were in the manufacturing and engineering sector but even this is down on the 31 of the previous quarter.
The figures are compiled for KPMG by Mandis Information Services Ltd in Nottingham and report the numbers of businesses, whether quoted or unquoted, making negative announcements of any kind on subjects such as profit warnings, redundancies and significant restructurings.
Commenting on the results, Ann Davies, a Restructuring partner at KPMG in Birmingham, said: "Resilient is the word that seems to be most often used when describing Midlands businesses at the moment and these figures seem to back that up. However, the figures benefit from falling numbers in the high-tech sectors - covering dot.coms, software and IT support businesses - resulting in a more even spread of warnings across the different industry sectors. Nationally, the 150 struggling high-tech businesses represents an enormous drop from the 402 of the same time last year when their problems were at a peak."
"Locally, there are still issues such as over-capacity and weakened competitiveness to be addressed in our key manufacturing and automotive sectors. However, while our figures show businesses are still struggling in those sectors, these numbers represent a lower percentage of the regional total than in previous quarters. The reduction in numbers may be explained by the strong messages coming out of some our main regional players such as Land Rover, Jaguar and Peugeot."
One industry sector which has seen rising figures is the transport and distribution sector. Eight Midlands businesses reported difficulties in the past three months out of 53 nationwide - the latter figure representing a sizeable increase on the 11 of the corresponding time last year - as fuel price increases and increased European competition are having an effect.
Two other sectors are continuing to benefit from the transformation of Birmingham and the Midlands. Between them, the property sector and the leisure / hotels sector registered only one struggling business in the whole three months, compared to 60 across the country.
Ann Davies continued: "One set of figures within this quarter's Mandis statistics is slightly baffling. The number of struggling retailers in the region rose from three to ten this quarter while the national figure rose to 134. Considering that the media is awash with reports of healthy consumer spending continuing, despite all the prevailing economic concerns, this rise is unexpected and of some concern."
"Looking at the Midlands figures as a whole, the down-side is that with all sectors reporting a similar level of difficulties, they are all vulnerable to the slowdown in the US and global economies. While we still wait to see the effect on the UK of this, we must remember that we cannot be immune from these problems. Those businesses which are major exporters cannot afford to simply wait for exports to return to their previous levels. At the same time, businesses cannot rely on the domestic market alone and must consider how they can increase their sales in the overseas markets. Therefore, it is vital that businesses look at how they can do things better or differently, through diversifying or restructuring. Time is of the essence."
NEW CONSTRUCTION ORDERS: JUNE 2001
Orders in the year to June 2001 rose by two per cent compared to the previous year but orders in the second quarter of 2001 fell by 12 per cent compared to the same quarter a year earlier, which was exceptionally high following large contracts in June 2000. Orders in the second quarter of 2001 fell by 16 per cent compared to the previous quarter, with falls in all sectors except public housing and public non-housing. This was due mainly to the high results reported in the first quarter, which was the highest quarter for three years.
Private housing orders in the second quarter of 2001 fell by six per cent compared with the previous quarter and were nine per cent lower than the same quarter a year ago. Orders in the year to June 2001 fell by eight per cent. Public housing and housing association orders in the second quarter of 2001 showed a rise of nine per cent compared to the previous quarter, and of 36 per cent compared to the same quarter a year earlier. Public housing and housing association orders in the year to June rose by seven per cent when compared to the previous twelve month period. All comparisons in this sector are affected by large variations due to its relatively small size.
Infrastructure orders in the second quarter of 2001 were 42 per cent lower compared with the previous quarter, and were 22 per cent lower than in the same quarter a year earlier. This follows high levels of orders in the first four months of 2001. Orders in the year to June 2001 rose by eight per cent compared with the previous twelve month period.
Public non-housing orders (excluding infrastructure) in the second quarter of 2001 were 35 per cent higher compared with the previous quarter, but three per cent lower compared to the same quarter a year earlier. The recent rise is mainly due to high levels of orders in the schools and health sectors. Orders in the twelve months to June 2001 were four per cent lower when compared with the previous twelve month period.
Private commercial orders in the second quarter of 2001 were 23 per cent lower compared to the previous quarter and 20 percent lower than in the same quarter a year earlier. These falls were mainly due to low levels of office orders in April and May. Orders in the twelve months to June 2001 were eight per cent higher than in the previous twelve month period. Private industrial orders in the second quarter of 2001 were 2 per cent lower than in the previous quarter, but were two per cent higher compared to the same quarter a year earlier. Orders in the year to June 2001 were two per cent lower than in the previous twelve month period.
WIDESPREAD MANUFACTURING JOB LOSSES ACROSS UK REGIONS AS EXPORT CONFIDENCE FALLS
Manufacturers in the UK see no let up to job losses as optimism about export prospects fell at the quickest rate for almost three years, the latest CBI Regional Trends Survey reveals.
Estimates based on the survey suggest a further 29,000 manufacturing jobs will be lost between July and September this year, according to results published by the CBI and Business Strategies Ltd. These cuts, which are severe even by recent UK standards, will be spread across the regions, with few exceptions. Only the South West and Northern Ireland are likely to avoid job losses.
Over the past four months manufacturers reported further significant job cuts in the North East, the East Midlands, the North West and Yorkshire and Humber. But in this survey other regions - including the South East, East of England and the West Midlands - also recorded sizeable declines in employment, while Scotland registered its worst outcome since early 1999.
Some 36 per cent of those surveyed throughout the UK said they were negative about employment prospects, just nine per cent were positive. This is the weakest expectation since January 1999.
Export prospects across the UK took another turn for the worse, with optimism about the year ahead falling at the fastest rate since October 1998. The sharpest declines were in Wales, West Midlands, South West and North West. Only the East Midlands avoided a fall in export optimism.
Overall UK business confidence fell further, with a balance of 22 per cent of firms being less optimistic about the general business situation. This compares with minus 29 per cent in April when sentiment was also affected by the foot-and-mouth crisis.
The declines in business confidence were widely spread across the regions. The deepening gloom spread to Northern Ireland and Scotland. But the Midlands appears to be escaping the worst of the deteriorating sentiment. The East Midlands reported little change in overall confidence since the last survey, while in the West Midlands the fall was modest.
Peter Gutmann, Associate Director of Business Strategies, said: "International developments are making life very tough for manufacturers. The pound's persistent strength and weak global demand account for widespread further falls in confidence in the current survey. Previously resilient regions are experiencing the pain as much as traditional manufacturing areas, as the downturn has affected new technology sectors. With traditional sectors still struggling, and high-tech output falling back, employment is bound to fall further in virtually all regions."
Plant and machinery investment intentions for the next 12 months are negative in all regions except Wales, where there appears to be modestly higher capital spending on the horizon over the coming year.
Sudhir Junankar, CBI Associate Director of Economic Analysis, said: "This survey suggests that last week's rate cut was clearly justified. The global slowdown is now hitting UK manufacturing hard with firms in virtually all UK regions experiencing falling orders, output and employment with severe pressure on profit margins. With underlying inflation set to remain within the government's 2.5 per cent target, further interest rate reductions may be necessary if consumer demand comes off the boil and service sector growth eases further."
BUSINESS REACTS TO INFLATION REPORT
Reacting to the latest inflation report from the Bank of England published Wednesday 8 August, Ian Fletcher, Chief Economist at the British Chambers of Commerce said:
“Today’s report illustrates clearly that the greater risk to our economy is slowing world growth, rather than inflation. With Monetary Policy Committee members’ forecast of inflation ranging from either slightly higher or up to a half per cent lower, the Bank should have the scope to cut interest rates further in the months ahead and should aggressively use every opportunity.
“We are concerned that while business has woken up to the reality, some members of the MPC continue to set policy on the assumption that the exchange rate of sterling against the euro will soften soon. This has resulted in inflation undershooting target for two-and-a-half years."
Many companies in the UK are delaying payment of their invoices as a means of bolstering their cash flow as their profits are hit by the strong pound and deteriorating economic conditions. According to the latest research carried out by Experian, the information solutions company, the average payment period across all industries has risen by 0.71 days – to 60.34 days from 59.63 days – since November 2000, when the last survey was carried out.
"This is a disappointing development," said Steve Kilmister, Managing Director of Experian’s Business Information division. "It shows that, more than two years after the Government introduced legislation giving small companies the right to interest on late payments that it is really quite low on companies’ priorities when faced with difficult trading conditions and falling profit margins. Their priorities are to maintain cash flow and protect the jobs of their employees. The result is that payment times are even longer now than when the legislation was introduced."
Experian’s research, which was conducted among 150,000 companies of all sizes and across all industry sectors, revealed that small businesses pay the most promptly – 58.6 days on average – and are the most consistent, taking just 0.3 days more on average to pay their bills than six months earlier. However, even among small businesses, adverse trading conditions have led to some sharply rising payment trends. Small Pharmaceuticals companies took 11 days longer to pay their invoices in May 2001 than in November 2000, small Oil and Chemicals companies took seven days longer and small Gas companies six days longer.
Altogether, small companies in 16 of the 29 industry sectors covered by Experian’s survey were taking longer to pay their invoices in May 2001 than in November 2000. Only seven industry sectors were taking less time, while there was no change among six industries.
An overwhelming majority of medium-sized companies are, on average, taking longer than in November 2000 to pay their invoices. Of the 29 industry sectors, 21 increased their payment period – by as much as 20 days among medium-sized Oil companies and 13 days among medium-sized Gas companies – with six industries paying more quickly and just two showing no change. The greatest improvement among medium-sized companies was in the Financial Services sector, which has speeded up by 10 days to 49 days on average.
Large companies are, on average, taking 1.5 days longer to pay their invoices than in November 2000, with the Gas industry, once again, greatly increasing the length of time it takes to pay: up 16 days to 91 days. Of the 29 industry sectors, 17 are taking longer, six are paying more quickly and the remaining six industries are unchanged.
The sector with the overall fastest payment performance is Agriculture, Fishery & Forestry, which took, on average 0.85 days less to pay in May 2001 than six months earlier. However, while small companies in the sector knocked a day off their payment time, medium and large companies added a day.
The greatest improvement by an entire sector was in Financial Services, which is paying its invoices, on average, 3.11 days earlier at 58.44 days. Medium-sized companies in the sector led the way, slicing 10 days off their payment period.
The slowest paying sector is the Oil industry, which added 8.44 days to make a total of 76 days to pay invoices. Whilst small and large oil companies added seven and five days respectively, medium-sized oil companies are taking 86 days to pay their invoices – a remarkable 20 days later than in November 2000. Other slow paying sectors are Pharmaceuticals (up 7.11 days to 71.92 days) and Chemicals (up 5.71 days to 69.45 days).
Taking size of company into account, the slowest payers are large Gas companies on 91 days – 16 days longer than six months earlier. Up until now, the slowest payers have been Vehicle & Equipment Rental companies (85 days). Medium-sized Electricity companies, medium and large Textiles companies, medium and large Electronics companies and medium-sized Building Materials companies all increased their average payments times by four or more days between November 2000 and May 2001.
"The right of small companies to claim interest from large companies and the public sector was extended last November to give small companies the right to claim interest from other small companies," added Steve Kilmister, "so we should have expected to see an improvement among payment times among small businesses at the very least. So far, however, there has been little evidence that companies are willing to exercise their rights against their customers. This could be a function of the state of the economy, with companies afraid to lose any business, regardless of its size.
"Late payment is not just an indication of possible cash flow problems. It is also an attitude, whereby some people believe it is acceptable to withhold payment of invoices until long after the agreed, contractual period. The Late Payments of Commercial Debts (Interest) Act 1998 sent a clear signal that such behaviour is not acceptable but the latest figures indicate that there is still a very long way to go."
"Obviously, these are average figures and many firms are scrupulous about paying on or before the date agreed with their suppliers," continued Steve Kilmister. "But, on average, companies in Britain are still taking two days longer to pay their invoices than in November 1998, when the late payment legislation was introduced.
"While some companies delay payment of invoices to aid their own cash flow in difficult times or have a dispute with the supplier, others have no justification. The problems that late payment causes suppliers – and the human cost – should not be underestimated. Cashflow, profits and growth can all be adversely affected. Late payment can, and frequently does, lead to business failure and job losses.
"With profit margins being squeezed from all sides, it has never been more important for companies of all sizes to take steps to avoid late payment by their customers by finding out as much as they can about customers before they supply any goods and services on credit. They can do this by checking their credit worthiness and payment record to find out how quickly they pay their bills. They can do this easily and at little cost through Experian’s Payment Performance service, which not only tells you how long the customer takes to pay its bills but also gives an early warning of any cashflow problems the customer itself might be experiencing."
For more information on Experian, visit the company's web site on http://www.experian.com
SPECIAL CREDIT CONFERENCE NEWS - PART 1
International Credit Exhibition & Conference 2001 - http://www.internationalcredit001.com Asia 2nd Biennial Event, Singapore , held once in every 2 years.
* Overview of the International Credit Conference - 24 to 26 October, 2001
Day One - Credit Conference 24 October, 2001
International Keynote Presentation : Credit Management In The 21st Century : Opportunities And Challenges. By Kevin Terrell, President & CEO, STAGraydon ( Stand Number : # M9 )
National Keynote Presentation : Future Directions In Debt Management & Litigation By Lee Chiwi, Barrister-At-Law ( Middle Temple) , MBA, Senior Partner, CW Lee Peng Chia Philip ( Stand Number : E1 )
International Credit / Trade Debts Recovery : - Management & Recovery Of Defaulted Emerging Markets' Trade Debts. By Jan Mekenkamp, Managing Director, OMNI Whittington Emerging Markets B V ( Stand Number : # M8 )
Lured by spectacular opportunities for business growth many companies have ventured into emerging markets. However, as demonstrated by the regular reoccurrence of financial crisis in these markets, the associated financial risks remain considerable. Under the circumstances credit managers are faced with the challenging task to strike a balance between two seemingly conflicting objectives, i.e. maximising business growth and minimising credit losses. In this presentation Mr Mekenkamp addresses some of the recovery options that are available in case an adventure in an emerging market country results in a credit loss.
Credit & Sales Management : - Who's Side Are You On, Anyway? ( Working With The Sales Department) By Timothy Paulsen, President, T. R. Paulsen & Associates ( Stand Number : # E5 )
In the informative and entertaining keynote, author, consultant, and international specialist in collections, Tim Paulsen, will share key techniques to improve the performance of any credit and collections operation.
Consumer Credit / Market Channels : - Targeting Consumers and the Infrastructure / Process Requirements Of Different Channels to Market. By Robert Evans, Product Director, Target Group PLC ( Stand Number : # M2 & M3 )
The Presentation will examine the changing face of Consumer Market Sectors for Financial Services and Retailers. Technology and the Internet have been a Key Driver In The E-Commerce Revolution, Breaking Down The Barriers And Reducing The Cost Of Entry Into New Markets. Although The Internet Provides An Opportunity To Grow Business, There Are Pitfalls. Companies Need To Be Prepared To Meet High Volumes With Exceptional Service Standards. If The Whole Process Is Not Thought Through It Could Become The Fastest Way To Lose Customers And Put An Organisation At Risk. Targeting Consumers And The Infrastructure / Process Requirements Of Different 'Channels To Market' Will Be Considered And Discussed. Strategies In New Business Acquisition And Credit Management Will Be Looked At In The Context Of Generating Business Through New And Emerging Channels. The Presentation Will Provide A Guide To Doing Profitable Business On A Range Of Financial Services Products In The Digital Age Covering Every Aspect Of The Process, From Front-End Web Requirements To Back-End Self Servicing.
Credit Conference Registration Forms & Bookings at : http://www.internationalcredit001.com/conference.htm
Visitors On-Line Registration For Free Exhibition Pass at : http://www.internationalcredit001.com
Email or contact Organiser for Registration Form & Details Mailto:sales@internationalcredit001.com Tel: (65) 392-9210
KPMG Mandis figures show 22 per cent drop in negative announcements
KPMG receivership figures up 3 per cent in first six months of 2001 compared to same period for 2000 Management are setting more realistic budgets, and are beginning to manage the market's expectations by issuing fewer profit warnings as key performance indicators are met, said Mick McLoughlin, Corporate Recovery Partner, KPMG and Head of Lender Services reacting to KPMG figures issued last week.
A 22 per cent drop in negative announcements across twenty one sectors for the first six months of 2001 compared to the same period during 2000 were recorded in national figures compiled for business advisory firm KPMG by Mandis Information Services Ltd in Nottingham. Mandis report the numbers of UK businesses, whether quoted or unquoted, making negative announcements of any kind on subjects including profit warnings, redundancies and significant restructurings.
Those sectors which performed better, included most notably, food and drink (8 per cent decrease in 2001), leisure, entertainment, and hotel sector (38 per cent) - which has still to feel the impact of lost bookings as a result of the foot and mouth crisis - and, utilities (gas, oil, coal, electricity and mining) at 52 per cent. However, a number of sectors continue to show increased signs of distress, including transport and distribution (72 per cent increase), automotive (39 per cent), electronics (21 per cent) and telecoms (17 per cent) in businesses throughout the country.
KPMG's receivership figures also support the view that it is not all gloom and doom in the market place at the moment. They show a like-for-like increase of only 3 per cent as they moved up from 541 in 2000 (January-June) to 557 in 2001. On a regional basis, South Wales saw the biggest decrease in receiverships, as they plummeted by 31 per cent during 2001. The South East, which records the highest number of receiverships of anywhere in the country, remained relatively unscathed as the region reported a 1 per cent decrease, moving from 237 in 2000 to 234 for the first six months of 2001.
Mick McLoughlin continues:
"KPMG's receivership figures for the first six months of 2001 compared to the same period five years ago (1996 - 767 receiverships) show a substantial decline, and last year's figures were also the lowest since 1988, so we are still working from a very low base in a pretty robust economic environment.
"However, a warning note needs to be sounded: the impact of the foot and mouth crisis has hit farmers very badly. The true financial impact on farming will be relatively small, compared to the overall effect that it will have on industries such as tourism, leisure and hospitality, further down the line."
Dun & Bradstreet are the source of KPMG's receivership figures.
EASTBOURNE DIRECTOR AGREES TO 4 YEAR DISQUALIFICATION MODULAR DUCTING SYSTEMS LIMITED ("the Company")
On 24 July 2001 the Secretary of State accepted from Mark David Hurst of 15 Barcombe Walk, Old Town, Eastbourne, East Sussex BN20 8HT a disqualification undertaking for 4 in respect of his conduct as a director of the Company. Modular Ducting Systems Limited carried on business as suppliers of duct work systems from Deanland Road, Golden Cross, Hailsham, East Sussex BN27 3RP and went into liquidation on 21 December 1999 with no assets and liabilities of £197,340 and an estimated deficiency of £197,342
The Secretary of State accepted the disqualification undertaking based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed by Mark David Hurst:
From 30 November 1997 Mark David Husrt caused or allowed Modular Ducting Systems Limited to trade to the detriment of the Crown in that liabilities in respect of PAYE Income Tax, National Insurance Contributions and VAT increased from £98,734 to £196,076 whilst other trade creditors liabilities reduced from £147,020 to £1,264.
Section 6 of the Company Directors Disqualification Act 1986 requires the Court to make a disqualification order of between 2 and 15 years for unfit conduct. On 2 April 2001 amendments were introduced by the Insolvency Act 2000 allowing directors, with agreement of the Secretary of State, to avoid the need for a court hearing by offering an acceptable disqualification undertaking. This has exactly the same legal effect as a disqualification order made by the Court, and will usually include a schedule identifying the director's unfit conduct. The consequences of breaching a disqualification undertaking are the same as those for breaching a disqualification order.
If anybody contravenes a disqualification order or breaches their disqualification undertaking they may be committing a criminal offence and could go to prison for up to 2 years or face a fine or both. Any person with information to suggest that a disqualified person has acted in contravention of this provision should contact The Insolvency Service's "Defiant Director's Hotline" on 0845 6013546.
WINDING-UP ORDER - HARLEY FINE WINE LIMITED
A Winding-up Order was made against Harley Fine Wine in the High Court on the 8 August 2001.
On 4 July 2001, the Secretary of State for Trade and Industry presented a petition to wind the company up in the public interest. The petition followed an investigation under Section 447 of the Companies Act 1985. On 4 July the Court appointed the Official Receiver provisional liquidator pending the hearing of the petition.
Harley Fine Wine Limited sold exclusive wines held in a bonded warehouse for investment purposes. The directors of the company have not co-operated with the DTI investigation and there are concerns that the company has not purchased the wine it claims to have sold.
The registered office and apparent place of business were at an accommodation address at 1-7 Harley Street, Kensington, London W8 6TG from where the post was collected.
The directors of the company were also in control of Ashley White Limited which operated a similar business until it was wound up in the public interest on 24 March 2001. The company failed to purchase most of the wine it purported to sell.
The petition was presented under Section 124A of the Insolvency Act 1986.
All public enquiries concerning the companies should be made in writing addressed to:
The Official Receiver
Public Interest Branch
21 Bloomsbury Street
London WC1B 3SS
COMPANY WINDING UP AND BANKRUPTCY PETITION STATISTICS: SECOND QUARTER 2001
The Lord Chancellor's Department on the 3 August 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 second quarter of 2001.
In the second quarter of 2001 the following number of petitions were issued: - 2,333 company winding up petitions - a decrease of 9% on the petitions in the same quarter of 2000;
3,866 creditors' petitions - a decrease of 8% on the petitions in the same quarter of 2000;
3,742 debtors' petitions - an increase of over 21% on the petitions in the same 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 1996.
Figures on insolvency petitions are published on a quarterly basis.
INSOLVENCY AND BANKRUPTCY PETITIONS FILED
Table 1
Year Quarter Companies Creditors Debtors
winding-up bankruptcy bankruptcy
petitions petitions petitions
1996 1 3 094 5 603 3 030
2 2 865 5 314 2 617
3 3 025 5 269 2 614
4 2 996 5 082 2 428
11 980 21 268 10 689
1997 1 2 998 5 209 2 613
2 2 724 5 231 2 431
3 2 695 4 812 2 380
4 2 741 4 291 2 212
11 158 19 543 9 636
1998 1 3 122 4 157 2 665
2 2 849 4 616 2 500
3 2 840 4 562 2 522
4 2 960 4 420 2 693
11 771 17 755 10 380
1999 1 3 294 4 748 3 230
2 2 748 4 433 3 221
3 2 748 4 466 3 006
4 2 525 3 849 2 936
11 315 17 496 12 393
2000 1 2 940 4 546 3 314
2 2 560 4 166 3 074
3 2 699 4 229 3 158
4 2 801 4 279 3 211
11 000 17 220 12 757
2001 1 3 124 4 775 3 630
2 2 333 3 866 3 742
*** FORTHCOMING CREDITORS MEETINGS ***
For detailed information on all 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 1.43 Canada 2.18 2.20
Austria 22.14 22.41 Portugal 322.58 326.52
France 10.55 10.68 Belgium 64.90 65.70
Finland 9.56 9.68 Italy 3115.49 3153.52
Germany 3.14 3.18 Sweden 14.75 15.11
Holland 3.54 3.58 Switzerland 2.42 2.45
Spain 267.72 270.98 Ireland 1.26 1.28
Australia 2.78 2.77 Denmark 11.98 12.14
Hong Kong 11.09 11.19 Euro 1.60 1.62
Africa Com 11.78 11.82 Saudi Arabia 5.33 5.38
India 67.06 67.66 Malaysia 5.40 5.45
Singapore 2.52 2.58 Norway 12.81 13.05
Japan 175.63 178.82
TW This week LW Last week.
Heavily indebted British Telecom was offered GBP18 billion ($25 billion) for its fixed-line network in Britain from a consortium headed by WESTLB, a German investment bank. A week earlier, BT dismissed an offer of GBP8 billion for its local network from an American consortium.
British Airways revived plans for a transatlantic alliance with American Airlines that failed to take off five years ago. The deal would require antitrust immunity, unlikely to be granted unless the governments of Britain and America can agree on a much delayed "open skies" agreement to liberalise air traffic between the two countries.
Airlines suffered from the slowing world economy. BA announced operating profits of GBP50m ($71m) in the latest quarter, a 50% decline compared with a year ago. KLM Royal Dutch announced that it would lay off 500 employees, nearly 2% of the total. Cathay Pacific Said that profits for the first half had plunged 39% to HK$1.3 billion ($166m). Germany's Lufthansa announced that it would cut back its long-haul network. However, Ryanair, one of the world's biggest budget airlines and the most profitable airline of any size, announced a 21% rise in pre-tax profit for the quarter to EURO27.4m ($24m) as customers apparently favoured cheaper alternatives.
Interbrew, a Belgian brewer, announced a deal to swallow Beck's, Germany's fourth-largest beer maker, for DM3.5 billion ($1.6 billion); Interbrew recently took an 80% stake in Diebels, a smaller German beer maker. The country's highly fragmented brewing industry looks set for further consolidation.
Uniliver, an Anglo-Dutch consumer-goods giant, reported that profits for the latest quarter were up by 52% compared with a year ago, to EURO900m ($768m). America's Procter & Gamble, the world's leading consumer-goods firm, made a quarterly loss of $320m, its first for eight years, as restructuring costs hit the company's balance sheet.
Source - The Economist
Charles Baynes announced pre-tax profits of 25.8 million pounds, after exceptional credit, on turnover of 134.2 million, for the six months ending 30th June 2001. Earnings per share stand at 14.5p, on reduced capital.
Colt Telecom announced pre-tax losses of 108.2 million pounds, on turnover of 433.5 million, for the six months ending 30th June 2001.
GKN, the automotive and aerospace group, announced pre-tax profits of 183 million pounds, after exceptional credit, on turnover of 2,798 million, for the six months ending 30th June 2001. Earnings per share stand at 17.7p.
Inchcape, the automotive services group, announced pre-tax profits of 43.6 million pounds, after exceptional charge, on turnover of 1,755 million, for the six months ending 30th June 2001. Earnings per share stand at 27.2p on reduced capital.
Smartlogic, the software group, announced pre-tax losses of 16.6 million pounds, after exceptional charge, on turnover of 4.78 million, for the six months ending 30th June 2001.
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 Societe Europeenne des Satellites of GE American Communications Inc, and The proposed acquisition by General Electric Capital Corporation of 25.1% shareholding in SES Global SA
Completed acquisition by Dimension Data Holdings plc of Proxicom, Inc.
Acquisition by Enterprise Inns plc of 439 pubs from Morgan Grenfell Private Equity Ltd
Acquisition by Enterprise Inns plc of 433 pubs from Scottish & Newcastle Plc
Completed acquisition by Apax Partners & Co Ventures Ltd and Hicks Muse Tate & Furst of Yell Ltd, Yellow Pages Sales Ltd and Yellow Book USA Inc.
Acquisition by The Proctor and Gamble Company of the Clairol Hair and Skin Care Business of Bristol-Myers Squibb Company
300 households will participate in digital TV pilot scheme
E-Commerce Minister Douglas Alexander, and Culture Minister Tessa Blackstone, on the 8 August welcomed the Independent Television Commission's announcement that an area encompassing Sutton Coldfield, Lichfield and Tamworth will provide the location for the first "Go Digital" TV pilot project.
Under the Go Digital programme, a representative sample of volunteer households will be identified by a professional research company working in consultation with the Local Authorities.
They will be loaned equipment allowing them to:
Jointly backed by Government and industry, the pilot project will help experts to build a better understanding of the technical and social issues which viewers face in switching from analogue to digital TV services.
The scheme will be led by the Independent Television Commission, who in partnership with industry identified Sutton Coldfield, Lichfield and Tamworth as an ideal launch pad for these studies. There were two main factors in selecting these areas:
The progress and findings of the trials will be periodically reviewed to ascertain whether further trials - possibly in different geographical areas- might be desirable to achieve the project's objectives.
E-Commerce Minister Douglas Alexander said,
"This project, which brings Government and industry together, is an important first step in understanding how we will be using our televisions in the all-digital environment of the future. The consumers taking part in these real-world tests will play a vital role in ensuring that the benefits of digital TV can be made more accessible to all."
Culture Minister Tessa Blackstone said:
"Digital television will transform the communications services available in the home. The pilot project will be vital in assessing the impact on viewers adopting these new services. Those taking part will have the opportunity to shape the future of digital TV."
The Project Management Board will recruit a professional research company and work with Local Authorities to identify a representative selection of households to take part in the pilot. However, members of the public who are interested in further information about the project should contact the ITC at the following address: Digital Planning, Independent Television Commission, Staple House, Staple Gardens, Winchester, Hampshire, SO23 8SR. Email: digital@itc.org.uk
Organisations involved in the digital TV pilot project are: BBC, Boxclever, BSkyB, Channel 4, DCMS, Dixons, DTI, ITC, ITVDigital, NTL, Nokia, Novapal, Pace, Philips, Sony, TDN (The Digital Network) and Telewest.
Currently over 30% of UK households are receiving digital TV services. In September 1999 the Government set out its conditions for switchover from analogue to digital TV transmissions, and expects these to be met within the period 2006-2010.
Wednesday 26 September Sussex & Surrey Branch of the ICM A speaker from Surrey Police Fraud & Financial Investigations Unit Venue - The Bridge House Hotel Reigate Time: 700 for 7.30 p.m. Sponsored by ICC Information Systems Ltd Thursday 18 October Magazines in Credit 2001 Conference and Awards Grosvenor House Park Lane, London W1 Telephone Justin Barry on 020-7400-7534 for more information or e-mail justin.barry@ppa.co.uk or visit the website at www.ppa.co.uk/events/credit2001Wednesday, Thursday and Friday 24th to 26th October 2001 International Credit Exhibition & Conference The Westin Stamford, Singapore http://www.internationalcredit001.com Mailto:info@internationalcredit001.com Thursday 22 November Sussex & Surrey Branch of the ICM Factoring/Invoice Discounting/Asset Finance Speaker: To be advised Venue - HSBC, Farncombe Road, Worthing Time: 7.00 for 7.30 p.m. Sponsored by HSBC 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. 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
To unsubscribe to this list please send e-mail addressed to jarnold@creditman.co.uk as follows:
unsubscribe credit-news your e-mail name and address
Business Credit Management UK: John Arnold jarnold@creditman.co.uk
Business Credit News UK: Pat Williams pwilliams@creditman.co.uk