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 15
Dated: 16 April 2000
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKUK MANUFACTURING GROWTH EASES AS EXPORT CONCERNS INCREASE
The outlook for manufacturers worsened last quarter with a decline in home markets and further reductions in export growth according to the latest quarterly economic survey from the British Chambers of Commerce (BCC), published on Thursday 13 April 2000.
The survey, the largest and most detailed of its kind, covering 8,682 UK firms employing almost a million staff, shows the acceleration in manufacturing growth last year has been lost, and that confidence in domestic and export market growth in the coming months has slipped.
Price pressures in manufacturing have eased on last quarter, capital investment is at its lowest level for three quarters and increased numbers of firms cite the exchange rate as their main concern.
The survey also shows that service sector domestic sales growth slowed for the second consecutive quarter, particularly in medium and large firms. However export sales growth and employment expectations remain firm. While service firms' confidence in profitability is at its highest since 1998, confidence in turnover dipped slightly on the previous quarter.
Dr Ian Peters, Deputy Director General of the British Chambers of Commerce, said:
"Manufacturers are experiencing a cooling in growth at home compared to least year's steady improvement and exports remain a primary concern with further decline expected in the coming months. This is another warning signal on sterling for both the government and the Bank of England."
"This survey confirms the trend suggested last quarter that manufacturing growth was levelling and, with the service sector now showing significantly slower sales growth in the UK market, reveals now a downturn across both sectors both at home and abroad."
The survey shows that large firms experienced the most significant fall in manufacturing export growth with businesses in the North and Midlands bearing the brunt.
In both sectors, investment in plant and machinery has slowed, but intentions to invest in training are at the highest for two years. Large manufacturing firms' investment in plant and machinery is now in decline having fallen by a balance of 18 percent in the last quarter.
Employment in the manufacturing sector remains patchy, with reasonable rates of growth in smaller firms offset by job cuts in medium and large businesses. In the service sector, job growth remains robust, particularly in the Midlands and South, and firms' expectations are that this will continue.
Recruitment difficulties in both sectors eased slightly last quarter, with respondents reporting evidence of a loosening in the labour market, particularly in manufacturing, where falling confidence and uncertainties over sterling's strength and interest rates are keeping staff recruitment low.
CBI CHIEF WARNS OF STERLING THREAT TO UK POSITION IN WORLD TOURISM LEAGUE TABLE
"Manufacturers are not the only ones paying a high price for a high pound" - Digby Jones
The Confederation of British Industry last week warned that strong sterling is a major threat to the UK's position in the world tourism league table.
Digby Jones, CBI Director-General, said at the Association of Leading Visitor Attractions that "manufacturers are not the only ones paying a high price for a high pound".
He pointed out that the UK's ability to take advantage of the expanding world tourism market is being hampered by a growing reputation as a high-cost destination.
Digby Jones acknowledged that there is little that policy makers can directly do to manage exchange rates. But he will call on the government to stop heaping extra taxes and regulations on companies.
"The strong pound means that fewer tourists are coming to Britain and they are spending less money when they get here," he said. "That has a huge knock on effect in terms of jobs, investment and our ability to create wealth.
"Changes to the way British people take holidays are also having an enormous impact. More people are taking advantage of cheap overseas holidays, which means fewer people are spending their holiday money at home."
The world tourism industry is expected to double in size by 2010, making it a crucial growth market. At the moment, Britain is the fifth highest revenue earner in the world tourism league table.
The British tourism industry presently employs around 1.7 million people. But the British Tourist Authority estimates that the strength of sterling has cost 30,000 jobs over the last two years.
Digby Jones pointed out that many tourist attractions must continue to raise their game if they want to compete with attractions in other countries.
"The Chancellor, Gordon Brown, was right to say that manufacturers need to raise productivity. It is equally true to say that many tourist attractions, particularly small attractions, need to raise standards to beat off competition.
"There is much that we in business can and should do to help ourselves. We of all people understand the necessity of dealing with markets as they are, not simply as we would like them to be.
"But the government must ensure that businesses have as great a chance as possible of being successful. That means not taking risks with inflation by over-reacting to pressure to raise public spending, such as we saw with the recent Budget.
"It means not piling taxes on companies, such as we saw with the increase of at least £5 billion a year during this parliament. And it means not adding to the red tape burden, such as we saw with the recent radical overhaul of employment law."
Digby Jones concluded by pointing out that manufacturing and tourism are not the only sectors of the economy suffering from the strong sterling. "Agriculture is really struggling as it tries to recover from the impact of the BSE crisis," he will say.
"The government has got to assist where it can, with fewer taxes and less regulation."
BYERS ANNOUNCES MAJOR PACKAGE OF HELP FOR ROVER SUPPLY COMPANIES
Trade and Industry Secretary Stephen Byers last week announced the release of £2 million to help component suppliers heavily dependent on Rover for business.
The money will fund a package of support, advice and training to help companies affected by BMW's decision to sell Rover. It will be targeted at companies who need help in the short term but have good long-term prospects. The companies will be offered:
Making the announcement, Mr Byers said:
"There are many companies in the Rover supply chain who are facing an uncertain future and who need immediate help.
"This will give companies the opportunity to have expert advice on the future direction of their business. Companies will need to make important decisions about their future very soon. It will give employees the chance to retrain whilst still in employment.
"The Government is determined to minimise the number of job losses at Rover and in the supply chain by putting in place a programme of help which supports economic regeneration and job creation.
"The measures I have announced today are a positive, first step in giving immediate help to those companies which are most at risk."
The proposals have been developed by the Task Force set up by Stephen Byers. The Task Force has worked closely with the Birmingham TEC/Business Link and the help will be delivered through the existing Business Link network and their business advisers in the West Midlands.
The intensive review of each supplier's business earmarked for this first tranche of help will include help and advice on finding new customers and markets and looking into the possibility of re-focussing their businesses into other areas.
Advice will be given to develop fresh business and marketing plans, as well as advice on export opportunities, and there will be help with re-tooling their factories and help with re-training. The money will partly involve making a contribution towards meeting the costs of providing employees with off-the-job training and therefore not available at their work.
The £2m comes from the £129m fund which has been allocated by the Government to the Rover Task Force.
Education Secretary David Blunkett had announced £5.5m in help to Rover workers at Longbridge or associated West Midlands sites who are made redundant. The money will help workers back into work through re-training and provide work-based learning and Information and Communications Technology training.
A rapid response team has also been set up by the Employment Service on-site at Longbridge. It will ensure that anyone who seeks advice will get a tailor-made service according to their needs, fast-tracking of benefit claims and early access to training programmes, the New Deal and job-finder services.
BYERS PUBLISHES COMPETITION COMMISSION MONOPOLY REPORT INTO THE SUPPLY OF CARS
New proposals to bring more competition to the supply of new cars and so help reduce prices were announced by Trade and Industry Secretary Stephen Byers last week.
The proposals are in response to the Competition Commission monopoly report into the supply of cars which is also published today. The report found that:
The Director General of Fair Trading estimates that the annual cost to private car purchasers could be around £1 billion a year as a result of the present system.
Stephen Byers said:
"The findings of the Competition Commission report cannot be ignored. They represent a clear and unambiguous call for change which requires a positive response.
"For many private buyers, a car is the second most expensive purchase of their lives. This report confirms what many people have thought was the case - that in Britain we are paying over the odds for new cars. The reason for this is that the market is not operating as competitively as it should.
"In response to the findings I am today announcing that I will be introducing measures to bring about greater competition in the supply and selling of new cars which should mean lower prices and increased sales. These measures should restore consumer confidence and bring certainty to the car market.
"The Competition Commission has identified a number of ways in which this market fails to function properly. It recommends substantial changes to the distribution of new cars - particularly in the relationship between manufacturers and dealers.
"To make the market more competitive, I am taking the immediate steps recommended by the Competition Commission and the Director General of Fair Trading. As the Consumers' Association said in its evidence to the Competition Commission, steps such as insisting dealers are offered the same bulk discounts as fleet customers should make this market function more fairly and put downward pressure on prices."
These immediate remedies will be imposed by Order under the Fair Trading Act 1973. A notice of this order is published today. By law interested parties must have an opportunity to comment on these proposals. Representations are invited by 19 May 2000. I intend to make the Order within two months.
Among the measures are:
Dealers who buy a large quantity of new cars outright will therefore be able to benefit from the sort of volume discounts currently enjoyed by fleet customers and pass on the benefits to customers.
This will allow contract hire companies to offer a better deal to their private customers and encourage more competitive pricing to private customers generally.
The current practices can mislead consumers about prices. These measures will ensure that dealers are free to advertise the price at which they are prepared to sell, without fear of penalty from suppliers. The Secretary of State has also not ruled out a ban on recommended retail prices if these two specific remedies need to be reinforced.
These should increase transparency and price competition by encouraging suppliers and dealers to set a market clearing price for new cars.
Mr Byers said:
"The Competition Commission also makes a number of recommendations for more fundamental change which relate to practices permitted by the European Union's Car Block Exemption rules. I believe these are important changes for the longer term in altering the structure of the market. We are discussing these issues with the European Commission now that the report is published.
"Although the Block Exemption formally runs until September 2002, our discussions with the European Commission could bring about changes in the UK before then.
"However, due to the complicated legal and other factors that surround this issue, a point recognised by the Competition Commission, I expect it to take at least a year to resolve.
"I will also be pressing the European Commission to enforce the existing block exemption rules vigorously to ensure that dealers are free to import new cars from dealers in the manufacturer's franchised network in other EC Member States, and that they will not be disadvantaged if they do so and that private buyers are not obstructed if they wish to buy abroad for import into the UK."
One of our readers has asked this us this question:
Should internet companies be treated differently for credit decisions than traditional businesses, and if so why??
Answers to Philip G. Parsons, Credit Analyst, IBM UK - Email: PHILIP@uk.ibm.com
ECGD SUPPORT TO ENABLE UK FIRMS TO PROVIDE ROMANIA WITH 2,000 LOW COST SOCIAL HOUSING APARTMENTS AND WATER SYSTEMS
Stephen Byers, the Secretary of State for Trade and Industry, announced last week in Parliament that he had asked ECGD to back a project that will allow firms based in the UK to provide 2,000 low cost social housing apartments and water supply services to villages throughout Romania.
In answer to a written question from Jim Murphy MP, Mr Byers said:
"I have instructed the Export Credits Guarantee Department (ECGD) to make cover available to Mivan Ltd and Kier International who have won a contract to construct low cost housing and provide water services to villages in Romania. The export credit guarantees will amount to US$120 million. In addition, a further US$47 million is being provided in support of the project by commercial banks not covered by ECGD.
"This project will bring benefits to many ordinary Romanians and provide an important export order for Northern Ireland where Mivan is based."
Because the level of risk for Romania currently falls just outside ECGD's usual level of acceptability, this project will be made exempt from ECGD's general break-even remit and accounted for under its Trading Account 3 which, amongst other things, allows ECGD to underwrite finance for projects which will provide social and developmental benefit.
This project has been launched by the Romanian Ministry of Public Works and Land Planning to improve the quality of village life in various locations throughout Romania. In all, 2,000 social housing apartments will be constructed and water systems will be installed in 1,700 Romanian villages.
Work under this contract is likely to provide additional jobs in Northern Ireland, particularly in design fabrication.
ECGD will be underwriting a euro 88 million loan, lead arranged by the London office of Deutsche Bank and co-arranged by KBC Bank NV, London Branch, and Rabobank International to help finance the project.
UK EXPORTERS TO GET ECGD BACKING TO TRADE WITH BULGARIA
Richard Caborn, the Minister for Trade, last week announced that ECGD was now prepared to back UK companies exporting capital goods and services to Bulgaria for the first time in ten years.
Cover from ECGD is also to be made available for companies investing in Bulgaria.
ECGD had withdrawn support for trade with Bulgaria in April 1990 after the country had declared a unilateral moratorium on debt repayment and servicing. This moratorium has since been lifted.
Mr Caborn said:
"Bulgaria has made good progress in recent years in building a market based economy and adhering to a prudent fiscal policy. The time is now right for ECGD to encourage British companies to compete for contracts and invest in this developing market."
*** 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 17/04/2000 to 25/04/2000 Number of Creditor meetings : 172 Section Company Time Venue 138 Scotland - Interim Liquidator calling Creditors Meeting 17/04/2000 Specialised Tooling (Scotland) Ltd 03.00 pm Dundee 19/04/2000 Border Structures Ltd 11.00 am Glasgow 20/04/2000 Geneoak Ltd 12.00 pm Glasgow Innovaprint Ltd 12.00 pm Edinburgh Janet Stewart Windows & Doors Ltd 11.30 am Paisley John D Reid Joinery Ltd 11.00 am Glasgow Oxenfoord Home Farm (Breeders) Ltd 10.30 am Edinburgh Scotia Outsource Supply Ltd 02.30 pm Glasgow Tomintoul Brewery Co Ltd 10.00 am Glasgow 23 Administrator Calling a meeting of Creditors 17/04/2000 Cosmeceutical Laboratories Ltd 11.00 am Manchester 20/04/2000 Calluna Technology Ltd 11.00 am Edinburgh Quad Building Services Ltd 12.00 pm Hemel Hempstead 25/04/2000 Jems Holdings Ltd 02.00 pm Manchester Wardell Security Ltd 12.20 pm Manchester Wardell Warehousing Services Ltd 12.10 pm Manchester Warrington Distribution Centre Ltd 12.00 pm Manchester 48 Receiver calling unsecured Creditors Meeting 17/04/2000 Lenwade House Hotel Ltd 12.00 pm Hellesdon 19/04/2000 Thomas Waide Ltd 10.00 am Leeds Versailles Group Plc 02.00 pm London Versailles Trade Finance Ltd 02.00 pm London 20/04/2000 FTS Ltd 11.00 am Cardiff Hollands Distribution Ltd 10.00 am London S & S Manufacturing Ltd 10.30 am Sheffield W H White & Son Ltd 02.30 pm London 25/04/2000 Matrice Ltd 10.00 am London Robert Michaels Holding Plc 10.00 am London 67 Scotland - Receiver calling Meeting of unsecured Creditors 19/04/2000 Wilkie-Hooke Ltd 10.00 am Glasgow 98 Creditors Voluntary Liquidations 17/04/2000 Adroit Plastic (Mouldings) Ltd 12.00 pm Bately Altered Images (Decorating Cont) Ltd 11.00 am South Ruislip Baron Tool Services Ltd 12.00 pm Worcester Broadwalk Flowers Ltd 02.00 pm London DL Motorcycles Ltd 02.00 pm Swansea David Man Ltd 11.30 am Glazebrook David Man Transport Services Ltd 11.30 am Glazebrook EMKO Ltd 11.00 am Leicester Glowbrite Clothing Ltd 11.00 am Bately Howell Heating Ltd 11.00 am Birmingham J J International Ltd 11.00 am Lancaster John R George Ltd 11.30 am Cardiff Lowther Construction Ltd 12.00 pm Penrith Mouldex Ltd 11.30 am Altrincham Peter Cooper Meats Ltd 11.15 am Sittingbourne Phoenix HM Ltd 11.00 am Birmingham Phoenix Recruiting Co Ltd 11.00 am Morley Quad Corporate Finance Ltd 12.00 pm London TTL Realisations Ltd 02.00 pm Aberdeen Thompson Beaver Ltd 11.00 am Huddersfield Unison Computers Ltd 11.45 am London United Serv Club (Carlisle) Ltd - The 10.30 am Rosehill Woodray Ltd 12.00 pm Newcastle-u-Tyn Working Wonders Training Ltd 11.45 am Croydon 18/04/2000 A N Suites (Leicester) Ltd 02.30 pm Wootton A N Suites (Northampton) Ltd 03.30 pm Wootton A W McDonnel & Sons (Haulage) Ltd 11.00 am Gosforth Acorn Shutters Ltd 02.30 pm Newcastle-u-Tyn Associated Taxi Owners Ltd 11.30 am Leicester Avalon Solutions Ltd 03.30 pm Lutterworth Bearing & Lubrication Services Ltd 11.00 am Edgware Century 2000 (UK) Ltd 10.30 am Yarm Earlmond Ltd 11.00 am Brighton Euro Trading (Southern) Ltd 12.00 pm London Excelsior Properties Investments Ltd 10.30 am Birmingham Express Imaging Ltd 10.15 am Kingston-u-Tham G B Luck Bag Co Ltd 11.30 am Worcester G C Electrical Ltd 11.00 am Southend-on-Sea Harpers Engineering Ltd 11.30 am Chandlers Ford Hawker Computers Ltd 10.30 am Luton Health & Safety Centre (West Mid) Ltd 11.00 am Aldridge Icon (Reprographics) Ltd 03.30 pm Aberdeen John Reoch & Son Ltd 11.00 am Dundee Keel Steels Ltd 11.00 am Birmingham Lanestar Ltd 02.00 pm London Logic Window Systems Ltd 12.00 pm Cardiff Millennium Print Finishers Ltd 11.30 am Hornchurch Ninegate Ltd 11.30 am Liverpool Panther Motors (North East) Ltd 11.00 am Sunderland Paul B Garratt Coach Travel Ltd 11.30 am Lutterworth Phoenix Painting Contractors Ltd 11.00 am Stoke-on-Trent Phoenix Resources Ltd 11.30 am Bristol Port Eynon Logistics Ltd 10.00 am Swansea Regal Windows Ltd 03.00 pm Swansea Supernatural Wholesale Restaurants Ltd 02.30 pm London Transport Realisations Ltd 11.00 am Bristol Unilec Power Plant Holdings Ltd 12.00 pm London Unilec Power Plant Ltd 12.15 pm London Walkers Trucking Ltd 11.30 am Southampton Weatherall Construction Ltd 11.00 am Stoke-on-Trent Whitelite Windows & Conservatories Ltd 11.15 am London Wolds Confectionery Co Ltd 11.00 am Grimsby Woodtech Services Ltd 02.00 pm Newport 19/04/2000 Apex Apparel (UK) Ltd 11.00 am London Atlantic Turf Accountants Ltd 11.30 am Marlow Brynmair Bakery (Clydach) Ltd 02.00 pm Swansea C S Retail Systems Ltd 11.00 am Birmingham Car Options Finance (UK) Ltd 11.00 am Manchester Castle Lithographics Ltd 11.30 am West Drayton Catering Equipment Services Ltd 02.30 pm London Delmode Ltd 03.00 pm Ilford Engineering Plastics UK Ltd 11.30 am Blackburn Eyeball Ventures Ltd 11.00 am London Fine Decor Ltd 11.45 am London First Metro Independent Ltd 12.00 pm Glasgow Foggys Bar Ltd 11.00 am Liphook Geoffrey Mash Photographic Ltd 10.30 am Yarm Gunnel Travel Services Ltd 12.15 pm Egham Hemic Engineering Ltd 11.30 am Leicester Joden Ltd 10.30 am Swansea Millennium (Dry Cleaners) Ltd 10.30 am Sevenoaks Music Connections Retail Ltd 11.00 am Southend-on-Sea Music Connections West Ltd 10.00 am Southend-on-Sea Oakcrown Developments Ltd 11.00 am Guildford Pinnacle Design & Marketing Ltd 10.30 am West Drayton Redrose Investments Ltd 02.30 pm London Richard Beale Ltd 12.00 pm Southampton S M L Engineering Co Ltd 11.30 am London Sitting Pretty Ltd 12.00 pm Sevenoaks TDL Electronics Ltd 10.30 am Reading Taylor Valves Ltd 12.00 pm Leeds 20/04/2000 Atlantic Pacific Union Ltd 11.30 am London Beatrice Scott Ltd 11.00 am Leeds Bright Walton (Timber Supply) Co Ltd 12.00 pm London Brittania Inns Ltd 03.30 pm London Caracag Hotels Ltd 10.00 am Glasgow Caracag Innovations Ltd 10.00 am Glasgow Caracag Ltd 10.00 am Glasgow Caracag Properties Ltd 10.00 am Glasgow Caravan & Container Rentals Ltd 10.30 am Sheffield Cliftonbeat Ltd 10.30 am Collingtree Comrage Ltd 11.00 am London Cotall Ltd 12.00 pm London Crown Sponsorship UK Ltd 12.00 pm Manchester Direct Disk Supplies Ltd 11.00 am London Fraser Insurance Services Ltd 12.00 pm Glasgow Interface Solutions Ltd 02.30 pm Bristol Ivydene Consultants Ltd 10.15 am Sutton Job Match Ltd 03.30 pm London Lakebower Ltd 02.30 pm Driffield Learon Fabrications Ltd 11.00 am London Leightons (UK) Ltd 02.30 pm London Lifelast Ltd 11.30 am Brentwood Linoakley (No 105) Ltd 11.30 am Luton Micklejohns Ltd 10.30 am Oxford NJS Technical Services Ltd 03.30 pm Crawley Nayla Fashions Ltd 11.30 am London Newleigh House Ltd 01.30 pm Stoke-on-Trent Orton Industrial Supplies Ltd 11.30 am Luton Pangolin Solutions Ltd 02.15 pm Slough Paragon Contractors Services Ltd 04.00 pm London Perceptions (Womens Wear) Ltd 03.00 pm London Pier Filing Station Ltd - The 10.00 am Glasgow Postgress Ltd 03.00 pm London Poynings Consultants Ltd 10.00 am London Premier Distribution Services Ltd 10.30 am Weybridge RJS Shops Ltd 10.30 am Driffield Readnote Computers Ltd 12.00 pm Swindon Reason Retail Ltd 11.00 am Barnet Regional Accountant Ltd 11.00 am London S H Popple Ltd 03.30 pm Lutterworth Supercast Foundries Ltd 10.30 am Birmingham T Walsh Contractors Ltd 11.30 am Liverpool Technique Tooling Ltd 11.30 am Havant Tele Assess Ltd 12.00 pm London Tor-Link Supplies Ltd 11.00 am Grimsby Venusdraw Ltd 04.00 pm London Whitehorse Press (UK) Ltd 10.15 am Bately 25/04/2000 BEB & D Electrical Engineers Ltd 12.00 pm Manchester Canon Engineering (Bury) Ltd 11.45 am Manchester Contract Business Services Ltd 11.00 am Uckfield Eldec Ltd 10.30 am Manchester Insight IT Management Ltd 03.00 pm Chandlers Ford Mike Everett & Sons Transport Ltd 10.00 am Brentwood Yachtmaster Services (Q Y A) Ltd 12.00 pm Royston
TW LW TW LW
USA 1.59 1.58 Canada 2.32 2.30
Austria 22.95 22.70 Portugal 334.41 321.18
France 10.94 10.83 Belgium 67.28 66.63
Finland 9.91 9.82 Italy 3229.83 3198.56
Germany 3.26 3.23 Sweden 13.83 13.73
Holland 3.67 3.60 Switzerland 2.62 2.59
Spain 277.54 274.85 Ireland 1.31 1.30
Australia 2.66 2.63 Denmark 12.42 12.30
Hong Kong 12.40 12.37 Euro 1.66 1.65
Africa Com 10.49 10.45 Saudi Arabia 5.97 5.95
India 69.50 69.30 Malaysia 6.05 6.03
Singapore 2.73 2.72 Norway 13.59 13.44
Japan 168.58 166.99
TW This week LW Last week.
Arcadia, the retailing group, including Dorothy Perkins, Richards and Burtons chains, announced a 60.8 million pound loss, after exceptional charge, on turnover of 1,041 million, for the six months ending 26th February 2000.
Fortress Holdings, the investment group, announced a pre-tax loss of 0.513 million pounds, after exceptional charge, on turnover of 22.7 million, for the year ending 31st December 1999.
Hyder, the Welsh water and electricity supplier has been targeted by Nomura International, the Japanese Investment Bank. Hyder state that it is considering a range of options, including selling off part of the group, after announcing indebtedness of 1.9 billion pounds.
International Energy announced pre-tax profits of 13.8 million pounds, after exceptional credit, on turnover of 66.6 million, for the year ending 31st December 1999. Earnings per share stand at 16.8p.
Silentnight announced pre-tax profits of 40 million pounds, after exceptional credit, on turnover of 219.7 million, for the year ending 29th January 2000. Earnings per share stand at 56.3p.
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 Natwest Equity Partners Ltd and The Really Useful Group Ltd of Stoll Moss Theatres Ltd
Proposed acquisition by Caradon Plc of Brand Rex
We have told John Lewis that on the details they have supplied so far concerning the agreements Dixons have with Packard Bell and Compaq, the agreements do not appear to infringe the new Competition Act. But we are seeking further information from John Lewis on their complaint.
Vertical agreements between manufacturers and retailers are excluded from the prohibition on restrictive agreements in the new competition law which came into effect on 1 March. However the Director General of Fair Trading can clawback this exclusion where he considers the agreement would be anti-competitive.
In fact vertical agreements are commonplace in business and do not generally give rise the competition concerns.
The OFT undertook a detailed and lengthy review of PC retailing last year and came to the conclusion that it is competitive and that consumers can buy PCs at a wide range of prices. An extensive consumer survey revealed that UK consumers had no particular preference for shopping on the high street and that shopping by mail order or in out-of-town PC stores was a highly developed and comparable alternative. Consumers were also found to have no great preference for computers from established international brands sold via traditional high street outlets over products from directsellers orr retailers' own brands. Dixon's market share of the whole retail market does not make it a dominant player.
TESCO
Tesco have said that it would invest 35m pounds ($55m) in its highly successful e-commerce operation (said to be the world's largest and actually making a profit), and spin it off as a wholly owned subsidiary. The company also announced pre-tax profits for 1999 up 10.8%, and an extra 20,000 jobs worldwide.
17 April 2000 Wessex branch meeting of the ICM The Budget Presentation by Ian Nichol from PricewaterhouseCoopers The Southampton Yacht Club 1 Channel Way, Southampton 7.00pm for 7.30pm 26th April 2000 Companies House Seminar Pine Lodge Hotel Kidderminster Road Bromsgrove B61 9AB Registration 5.30pm - 6.00pm Seminars include a question and answer session and buffet 6.00pm - 9.00pm Cost 37.60 pounds Contact Tamara Bent tbent@companieshouse.gov.uk +44 (0)29 20380911 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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