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: 111
Dated: 23 May 1999
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKBRITAIN NEEDS MORE FAST GROWING FIRMS TO SOLVE PRODUCTIVITY AND FUTURE EMPLOYMENT PROBLEMS - CBI PRESIDENT
The long-term health of the UK economy will only be improved if more attention is paid to the fast-growth businesses that create employment, states CBI President Sir Clive Thompson. If it wants to solve the productivity and future employment problems, the Government must create the right social and employment conditions for these firms to flourish. We need "a culture where Britain's business is business. Only then will we have completed the creation of a true enterprise society,"
Sir Clive highlights a current difficulty faced in the UK: British business is not institutionally inefficient but structurally - we have many small firms and also a good number of established large firms, but a "desperate shortage" of those at the development stage, the fast-growing businesses in between that are crucial to job creation and output.
He states: "It is the uneven mix of businesses in the UK which contributes to our comparatively poor productivity figures which have so concerned the Chancellor. If we are to improve the prosperity of the people in this country, we must build more of our small businesses into world class players and encourage the business developers - individuals who have the motivation and ability to do that.
"Those developing businesses are now critically important to our economy. The start-ups are vital, but they do not in themselves contribute enough in terms of job creation. And the threat to our older industries will grow with the quickening pace of two major forces - global competition and technological development.
"Globalisation affects businesses directly through competition from international players in every market. And by spreading new ideas and best practice, which change the rules of the game. And we've all seen the effect of improving working practices - increased productivity, lower costs, excess capacity and reduced jobs.
"The second force is the tidal wave of new technology, and in particular electronics, information technology and e-commerce. They are creating new products and services at an unprecedented pace, stimulating the globalisation of markets and production, and transforming the means of marketing and distribution."
Sir Clive argues that in order to allow the right conditions for the second-phase fast development of businesses, particularly in these new technology areas, we should look more to the USA than to the model offered by continental Europe. He says that the USA, with its environment of low tax and low regulation, encourages an individual to grow and develop a business for its own sake.
Meanwhile continental Europe has an inability to develop small businesses and then build them toward medium and large sizes. He says that it is not only their lack of labour market flexibility that holds them back, arguing that while the collaboration, consensus and collectivist approach of the European Social model delivered huge success from 1945 to the end of the 1980's, now it is delivering a chronic problem of high unemployment:
"It is individuals - the business developers - who build and grow great businesses and they seek to operate in environments sympathetic to their need to move swiftly in fast developing markets. Those environments are low tax and low regulation. Today the right environment is provided much more by the American system. Although we should join the European Single Currency, we should not embrace the European Nanny State.
"Our potential crisis is not so much a shortage of entrepreneurs, or even serial entrepreneurs, it is a shortage of business developers - those who will build great businesses, taking infant companies into world class athletes in the peak of fitness."
RISE IN ILO UNEMPLOYMENT UNSURPRISING WHILE MANUFACTURING INDUSTRY REMAINS WEAK - CBI
We are pleased that the number of people claiming unemployment benefit fell, but are unsurprised by the small rise in the more representative ILO unemployment rate, said Kate Barker the Confederation of British Industry's Chief Economic Adviser.
Ms Barker said: "The rise in ILO unemployment is not surprising since manufacturing industry is still weak. Regrettably our surveys suggest that there will be further job cuts in manufacturing over the coming months.
She added: "We believe that the apparent slight rise in earnings growth should be temporary since the pressure for pay increases is easing. Taken with last weeks inflation figures the labour market data supports our view that interest rates can still be safely cut to five per cent next month, without jeopardising the Government's inflation target."
THE NEED FOR A NEW TRADE "ROUND"
Brian Wilson calls for dialogue with business over trade issues
The Government's commitment to new international trade negotiations was last week reaffirmed by Trade Minister Brian Wilson.
Mr Wilson also stressed the need for business and other groups to engage in a debate on the UK's priorities. Speaking at the Industry Forum in Londonlast week he said:
"When trade is free, the best of British companies can take on the world and win. Business - and ultimately consumers - can benefit from the additional competition to supply them with higher quality goods and services at lower prices.
"That is why the Government wants a new "Round" of negotiations in the World Trade Organisation - comprehensive and time- limited, with enough issues on the table for all countries to get something that they want.
Mr Wilson emphasised the need for the Government to work closely with business to ensure an effective strategy, and identified two main aspects where business could help to do this.
"Firstly, we need to work together to develop a strategy based on pursuing goals that will be in the interest of the whole country. We need to know what we can do to bring more trade, jobs and prosperity to the UK. We cannot do that without a proper dialogue with the business community.
"Secondly, I want to see business playing a full part in the growing national debate on trade matters and the WTO. We need to identify and address the legitimate concerns of the British public about the impact of globalisation. At the same time, we need to get over the message that the WTO is part of the solution, not part of the problem.
Mr Wilson stressed that the Government's trade goals and other international goals were mutually reinforcing.
"There need be no conflict between the pursuit of economic prosperity through trade and the pursuit of sustainable development throughout the world.
"The UK has many excellent companies who personify this through the high standards that they operate overseas. I want the voices of these companies to be heard in the trade debate."
Mr Wilson was speaking at the Industry Forum, at the St Ermins Hotel in London. A number of businesses/industry representatives from a range of manufacturing and services sectors were present. The session was chaired by Tommy Hutchinson, (NatWest) acting Vice President of the Forum. For further information about the Industry Forum please ring 0171 437 3809.
A consultation document, Customs Tariffs in the Industrial Sector,part of the process of preparing for the new Round of trade talks, has also been published.
GOOD NEWS FOR CONSTRUCTION BUSINESSES
New rules to clamp down on VAT avoidance by construction customers were laid before Parliament last week.
The measures, developed jointly by Customs and the construction sector, will hit avoiders hard by ensuring that VAT is accounted for earlier than under the existing anti-avoidance rules. They will reduce costs for genuine construction businesses.
The new rules will mean that in most cases VAT is only charged when construction work is paid for, or a VAT invoice issued. This was the position prior to January 1998. But in defined circumstances VAT will have to be charged no later than the day on which construction work is finished. This will stop avoiders deliberately deferring payment of VAT.
Broadly the defined circumstances are that the building which is being constructed or refurbished is occupied by someone who cannot get their VAT back, and that the construction contractor is connected with the occupier, or has been financed by the occupier to carry out the construction work.
The previous anti-avoidance rules, which affected construction work completed after 8 December 1997, required VAT on all construction work to be accounted for no later than eighteen months after the work was finished. This prevented deliberate VAT deferral for more than 18 months, but also affected construction businesses which had not been paid because of disputes with customers.
The construction industry wanted more narrowly targeted rules, and this is what has been achieved with their help. The repeal of the previous anti-avoidance rules before 18 months have elapsed since their introduction means that construction businesses (other than those covered by the defined circumstances in the new rules) can carry on as though the 18 month rule had never existed.
Further details will be set out in Information Sheet 7/99, which will be available shortly from Customs & Excise Business Advice Centres.
RETAIL PRICES INDEX
The all items retail prices index (RPI) rose by 0.7 per cent over the month to stand at 165.2 for April.
In the twelve months to April, the all items RPI rose by 1.6 per cent, down from 2.1 per cent for March.
The 12-month rate of change for the all items excluding mortgage interest payments index stood at 2.4 per cent for April, down from 2.7 per cent for March.
In the 12 months to April, the UK harmonised index of consumer prices (HICP) rose by 1.5 per cent, down from 1.7 per cent in March.
RETAIL SALES - APRIL 1999
In April the seasonally adjusted estimate of retail sales volume is 113.1. This is 0.5 per cent below the March figure but 1.6 per cent higher than the April 1998 level.
In February to April the volume of sales was 0.6 per cent higher than in the previous three months and 1.8 per cent higher than in the same period a year earlier.
Based on non-seasonally adjusted data, the average weekly value of retail sales in April was £3,620 million, 0.6 per cent higher than in April 1998. [Note that this comparison is affected by the timing of Easter: in 1998, the holiday fell entirely in April; in 1999 it straddled the March and April reporting periods]. In February to April the value of sales in current prices was 2.8 per cent higher than in the same period a year earlier.
FAIR DEAL FOR UK SHOPPERS IN EUROPE
Better consumer rights for Britons shopping in the European Union were announced last week by DTI Consumer Affairs Minister Dr Kim Howells.
A new European Directive means that if goods are found to be faulty or do not match up to the contract, shoppers can now have them repaired or replaced - or if this is unreasonable or not possible, obtain a full or part refund.
Welcoming the news, Dr Howells said:
"At present consumers shopping in Europe face a patchwork of rules. The new common rights announced today will make shoppers more confident when buying goods elsewhere in the European Union.
"Shoppers buying goods in the UK will continue to benefit from our existing consumer protection rights under the UK Sale of Goods Act which are among the best in Europe. They will also have the additional rights to repair and replacement given by the Directive".
The Directive also means that if a fault appears in a product during the first six months after purchase, consumers will benefit from a presumption that the fault was present when the product was bought. Also, manufacturers will now have to fully honour the guarantees included with their products.
Dr Howells added: "The UK will not be implementing the option in the Directive which allows Member States to require consumers to notify the seller of faulty goods within two months of having discovered the problem. This would restrict consumers' existing rights.
"Consumers who buy goods elsewhere in the European Union generally have to claim under the law of the Member State concerned. They will have to return the goods there if they become faulty. However, I understand the European Commission is going to investigate this further and may be issuing proposals allowing shoppers to exchange defective goods at home.
"Our forthcoming Consumer White Paper will also be addressing areas of further consumer redress."
All 15 European Union Member States must implement the Directive by 1 January 2002.
Under the new European Community Directive on certain aspects of the Sale of Consumer Goods and Associated Guarantees which applies to both new and second-hand goods, shoppers can get a full or part refund rather than have the good repaired or replaced in certain circumstances e.g. if the product cannot be repaired or if it is difficult or impossible to replace.
The new Directive applies throughout the whole of the European Union, and in certain circumstances, will also add to the rights of shoppers buying goods in the UK e.g. if a fault appears in the product within the first six months of purchase, it will be presumed that the fault was present when the good was bought.
Under the UK Sale of Goods Act 1979, if you buy goods from a trader you can reject them if they are not of satisfactory quality when you receive them. You have a right to a refund if you act quickly. If a defect becomes apparent later you can claim compensation (damages) for up to six years after purchase providing that it can be shown that the defect was present at the time of sale and it was reasonable for goods to last that long. Reasonable compensation will often in practice be repair, replacement or price reduction.
Trade Minister visits Peru and Bolivia
Trade Minister, Brian Wilson will visit Peru and Bolivia from 24-27 May to promote the Government's drive to strengthen trade links with Latin America.
Mr Wilson's visit to Peru underpins the UK's continued commitment to the Joint Action Plan - A Plan for the Future, which was signed by President Fujimori and the Prime Minister in July last year. The agreement calls for strengthened links between the two countries at all levels including trade and investment relations.
During his visit Mr Wilson will meet Ministers and members of the business communities in both countries to identify further opportunities for trade, investment and bilateral co-operation. He will be the first DTI Minister to visit Bolivia since 1996.
Mr Wilson said:
"Latin America remains a mystery to many UK companies, who are unaware of the potential for doing good business in markets like Peru and Bolivia. Many opportunities exist for trade and investment. I am pleased to lend support to UK companies in these countries.
"The UK is a major investor in Peru with investment increasing more than ten-fold between 1990 and 1998. Particular opportunities exist in oil and gas, mining and the transport and infrastructure sectors.
"In Bolivia key sectors are oil and gas, agribusiness, mining and financial services and UK companies are well placed to take advantage of these. Shell and British Gas are currently involved in Latin America's largest pipeline project, the Brazil-Bolivia gas pipeline, which is expected to bring in revenues of US$7 billion over the next twenty years."
On Monday 24 May, Mr Wilson will meet Ministers of Fisheries, Energy and Mines and Transport, Communications, Housing and Construction. He will also speak to the British Peruvian Chamber of Commerce. On Tuesday 25 Mr Wilson will meet, the Minister of Economy and Finance and President of the Council of Ministers, and Peruvian bankers and businessmen, before flying to Bolivia. On Wednesday 26, in La Paz he will meet Bolivia's Vice President, Jorge Quiroga, the Vice Minister for Foreign Affairs and the Minister of Finance. On Thursday 27, in Santa Cruz, Mr Wilson will take an overflight of the Transredes gas pipeline and will meet prominent local businessmen.
Between 1993-1997 UK exports to Peru increased from £30 million to £85.7 million. In 1998 UK exports totalled £66.4 million, the decrease was due to a number of factors including El Nino and the global financial crisis. UK investment in Peru currently stands at US$1.6 billion.
UK exports to Bolivia totalled £15 million in 1998. UK investment in Bolivia was £51 million in 1997.
REPORT HIGHLIGHTS THE FUTURE OF THE UK OIL AND GAS INDUSTRY
Almost half of the companies which supply and service the North Sea believe that their future growth lies in exporting their expertise to oil and gas producing countries around the world.
Launching a new Government-sponsored report, Trade Minister Brian Wilson said last week that, 'hundreds and thousands of oil and gas-related jobs can be retained or created' by Britain improving on its share of the estimated annual $200 billion world market.
Mr Wilson and Sir David Wright, the new chief executive of British Trade International, promised rapid action to adopt the recommendations in the report, Export Culture in the UK Oil and Gas Industry, which was produced for the BTI, the Government's export promotion agency.
Speaking in Glasgow, Mr Wilson said:
"The oil and gas industry contribute £3.7 billion to British exports and currently supports about a third of a million jobs. We have a fantastic level of expertise based on our North Sea experience which is highly marketable around the world.
"While we already have many successful exporting companies, it is vital to persuade others that their long-term prospects must also include exporting. The Export Culture Report has identified some key barriers to exporting which must be overcome if the industry's full potential is to be realised and jobs secured.
"We will draw on the conclusions of this report to help ensure that companies are fully aware of opportunities and that they have the necessary presence in the relevant countries, in order to pursue them."
Sir David Wright - who joined the press conference by video-link from Aberdeen - said:
"This is one of my first engagements since taking up the post and I am looking forward to meeting several representatives from the UK oil and gas industry to learn more about the particular situation of companies in Aberdeen with regard to exports."
In the Report, exporters identified the key barriers to exporting as:
Mr Wilson said:
"The Report has identified strengths and weaknesses and highlighted the way forward for future success. I cannot over estimate the importance of heeding the Report's messages for the benefit of the industry, the economy and job security."
Following a petition presented by the Secretary of State for Trade and Industry in the High Court on 3 June 1998 to wind up Aurum Marketing Limited in the public interest, a winding-up order was made last week by which the Official Receiver became liquidator of the company. The petition was presented following an investigation carried out under Section 447 of the Companies Act 1985.
Between June 1997 and May 1998 the company operated a scheme in which those who purchased marketing packs of 2 health products "Body Bite" and "Body Burst" and returned simple questionnaires were promised payment by the company of double the price of the marketing packs. At least £2,400,000 was received by the company through its scheme.
The registered office and the former business address of the company is at Temple Court, Cathedral Road, Cardiff CF1 9HA.
The petition was presented under Section 124A of the Insolvency Act 1986.
All public enquiries concerning the company should be made to:
THE OFFICIAL RECEIVER
21 Bloomsbury Street
London
WC1B 3SS
*** 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 24/05/99 to 01/06/99 Number of Creditor meetings : 191 Section Company Time Venue 138 Scotland - Interim Liquidator calling Creditors Meeting 24/05/99 Bio-Medical Instrumentation Ltd 10.00 am Glasgow 26/05/99 Hi-Tec Builders Ltd 11.00 am Glasgow Intervention Engineering Systems Ltd 10.00 am Aberdeen 01/06/99 Metroglaze Home Improvement Centre Ltd 11.00 am Edinburgh 23 Administrator Calling a meeting of Creditors 26/05/99 Bradlor Developments Ltd 10.00 am Leeds Czech Speake Ltd 12.00 pm London 28/05/99 Apricot Nursing Home (Ilkeston) Ltd 03.00 pm Nottingham CJSE Realisations Ltd 12.00 pm Banbury Eade Pipelines Ltd 10.30 am Birmingham 48 Receiver calling unsecured Creditors Meeting 26/05/99 Parkfield Hospital (Rotherham) Ltd 11.00 am Sheffield 27/05/99 S Jones Industrial Holdings Plc 11.00 am Birmingham 28/05/99 R D International (UK) Ltd 11.00 am London 67 Scotland - Receiver calling Meeting of unsecure Creditors 25/05/99 Inwood Ltd 10.00 am Edinburgh 01/06/99 Abledarn Ltd 12.00 pm Glasgow 84 N. Ireland - Creditors Voluntary Liquidation 25/05/99 Dac Merchants Ltd 12.30 pm Newtownards Kirkhill Agencies Ltd 12.00 pm Newtownards Stores (Shopfitting) Ltd 12.15 pm Newtownards 98 Creditors Voluntary Liquidations 24/05/99 Ableavis Ltd 10.15 am Epping Ardent Developments Ltd 12.00 pm Stourbridge Artmore Retail Ltd 02.30 pm London Barnet Insulation Co Ltd 03.00 pm London Beaver Industrial Serv (Contracts) Ltd 10.30 am Droitwich Spa Century Offshire Consultants Ltd 02.30 pm London Charterage Ltd 11.00 am Plymouth Eastern Software Publishing Ltd 11.30 am Colchester Euro Copper Co Ltd 11.30 am Preston Firesafe (UK) Ltd 11.30 am Blackburn KLD Shopfitters Ltd 11.00 am Manchester Keybuy Ltd 11.30 am Worcester Lancashire Tank Fittings Ltd 03.00 pm Manchester Max Leisure Ltd 10.15 am Leeds Monkseaton Kitchens Ltd 11.00 am Sunderland Network News Ltd 11.00 am York Nottingham Photo Ltd 01.00 pm London One Step Ahead Ltd 02.30 pm London Peter Waddington Ltd 11.30 am Preston R K Services Ltd 12.00 pm London Reprocraft Imaging & Print Ltd 12.00 pm London Sherelle International Ltd 10.30 am Southampton Stafford Brakes Ltd 11.30 am Walsall Tech-Aid Ltd 11.00 am Shepton Mallet Trakman Imports Ltd 11.00 am Wolverhampton Waste No Carpets Ltd 04.00 pm London West Ridings Stationery Ltd 11.00 am Leeds William Watson & Son (Butchers) Ltd 12.00 pm Glasgow Winterdine Engineering Co Ltd 10.30 am Birmingham 25/05/99 Abbey Construction (London) Ltd 11.30 am Hornchurch Alan French & Co Ltd 11.30 am Bury Alexander Creamics Ltd 03.00 pm Swansea Alfa Manufacturing Ltd 11.30 am Manchester Avalan Technology Ltd 03.30 pm Slough B L Ltd 03.45 pm London Brinlease Ltd 11.15 am London Caterco Ltd 10.00 am Newcastle-u-Tyn D & A Marketing Ltd 10.30 am Leicester D Sport UK Ltd 10.30 am London Electro Powder Coating Ltd 10.30 am Walsall Firlands Services Group Ltd 03.00 pm London G E M A Shoes Ltd 11.00 am London Geddes & Berger Ltd 12.00 pm Manchester Guildprime Joinery Ltd 11.00 am Brentwood Intex Engineering Ltd 11.00 am Birmingham Kay Contracting Ltd 10.30 am London Langleys of London Ltd 02.45 pm London MacDonald & Mercer Graphics Ltd 11.30 am Stockport Mains Domestic Ltd 11.30 am Preston Mains Heating Ltd 11.30 am Preston Merseyside Hydraulic Services Ltd 10.30 am Liverpool Oakman of Edmonton Ltd 03.30 pm Harpenden Paragon Industries Ltd 11.00 am London Redsure Electrical Ltd 12.00 pm Manchester Revival Distribution Ltd 12.00 pm London Rucel Ltd 11.30 am London S & J Loach Ltd 02.30 pm Bradford Scandals Clothing Ltd 04.00 pm London Selbie & McKay Ltd 12.00 pm Glasgow Serema Display Cabinets Ltd 10.30 am Manchester Slec Injection Moulders Ltd 11.30 am Southend Southward Ltd 03.00 pm London Spectrum Travel Ltd 10.30 am Droitwich Spa T B Younge Engineering Ltd 12.30 pm London UK Developments Ltd 11.00 am Brighton Volume Colour Ltd 11.30 am London Your Fortune Ltd 12.15 pm London 26/05/99 A P T Cenca Ltd 11.30 am London AF Security Ltd 10.30 am London AMW Securities Ltd 03.00 pm Southend-on-Sea Acorn Signs Ltd 12.00 pm London B M Construction Ltd 10.15 am Bately BB Joinery Ltd 11.00 am Southend-on-Sea Broadway Fashions Ltd 10.15 am London Buchanan Clothing Co Ltd 11.00 am Glasgow Buchanans Haulage Ltd 12.00 pm London Cambridge Exhibition Co Ltd - The 11.00 am Stow-Cum-Quay Connect Four International Ltd 02.00 pm London Glasscraft (UK) Ltd 10.30 am Leeds Gosport Printing & Supply Co Ltd 12.30 pm Winchester Hambert Ltd 02.30 pm Hove Haul-Ways Ltd 10.30 am Sheffield House of De Parys Ltd - The 11.00 am Bournemouth Lamatur Ltd 10.30 am Sunderland M C Country Vehicles Ltd 10.30 am London Midland Rubber Manufacturing Ltd 11.00 am Birmingham Nichol Contracts Ltd 10.15 am Sutton Novalink Ltd 11.00 am London OEA Ltd 11.00 am London Oak Windows Systems Ltd 11.00 am Birmingham Own TV Magazines Ltd 10.30 am Brighton Oxford Ball Co Ltd - The 11.00 am Theale Pac-A-Fix (Builders Merchants) Ltd 11.30 am Maidstone Predator Ltd 11.00 am Birmingham Roundtrack Ltd 11.00 am London Select Cover Ltd 12.15 pm Manchester Stock and Special Stationery Ltd 10.30 am Morden Superpearl Ltd 12.00 pm London US2 Leisure Ltd 10.30 am Halifax Wax Clothing Ltd 11.30 am Altrincham 27/05/99 Actflow Ltd 11.30 am Dudley Ashford & Sullivan Ltd 11.00 am London Connect 2 Distribution Ltd 11.00 am Sheffield Contract Services (Bedfordshire) Ltd 10.30 am Walsgrave Cormoran Andy Nicholson Tackle (UK) Lt 10.30 am Stoke-on-Trent Dalafax Ltd 03.30 pm Lutterworth Delivered Self Drive Ltd 11.00 am Brighton Designlayer Ltd 12.00 pm Manchester Endeavour Property Maintenance Ltd 11.00 am Epping Eurotek Industries Ltd 02.30 pm Manchester Fallons Motorworld Ltd 10.15 am Sheffield Fallons of Doncaster Ltd 11.00 am Sheffield G & J Allen Ltd 11.30 am Nottingham Highcraft Ltd 11.00 am London Holmesdale Finance Ltd 11.30 am London Independent Hearing Aid Co Ltd - The 11.00 am Barnet Inter County Couriers Ltd 11.30 am Aldridge Jetmost Ltd 03.00 pm Barnet Josephs Harling Ltd 02.30 pm Salisbury Legend Communication and Events Ltd 11.30 am Birmingham Nipper Ltd 11.00 am Weybridge Primeheights Ltd 11.30 am London Promtec Security Ltd 11.30 am Hove Ravenscroft Group Legal Ltd 11.30 am Blackburn Renaissance Marketing Ltd 10.30 am Aldridge Trendpam Engineering Ltd 10.30 am Dorking Xignoble Ltd 10.00 am Bury 28/05/99 Ante Ltd 02.00 pm London Archimedia Application Solutions Ltd 10.30 am Halifax Balvin (UK) Ltd 02.00 pm London Basket Kase Ltd 12.00 pm Manchester Big Star Retail Ltd 12.00 pm London Bodyswitch Entrance Systems Ltd 12.00 pm Nottingham Clarke Fabrications Ltd 01.00 pm Wootton Crown House Holdings Ltd 11.00 am Cardiff Ely Computer Centre Ltd 11.00 am London Essex Grove Enterprises Ltd 12.00 pm London Five Star Construction Ltd 10.00 am London Fryers Wools Ltd 10.15 am Altrincham Glass-Works (London) Ltd 11.00 am London Haverhill Generators Ltd 11.00 am Leicester I T Magazine Ltd 11.30 am London Indicative Solutions Ltd 10.30 am London J J Builders Merchants Ltd 11.00 am London Kidhope Ltd 12.00 pm Cardiff Maxwell James Contracts Ltd 11.30 am Lutterworth Neville Green Ltd 02.30 pm Preston Orion Way Ltd 10.15 am Leicester Overseas Trade & Finance (UK) Ltd 11.30 am London Pearl Europe Plc 11.00 am London Plant Travel Ltd 12.00 pm London Positive Connections Ltd 12.00 pm Exeter Potteries Building Services Ltd 10.30 am Stoke-on-Trent Printing Roller Co Ltd - The 10.30 am London SMT Construction Ltd 10.30 am London Saltech Ltd 03.00 pm Birmingham Salvexmade Ltd 12.00 pm London Seric Ltd 10.30 am London Sourceline Ltd 03.00 pm Moorhouse Terian Plumbing & Heating Supplies Ltd 12.00 pm Manchester Thor Underwriting Ltd 11.00 am London Trevor Lowe (Storage & Distribut) Ltd 10.15 am Bury Unitlaser Ltd 11.30 am London Westorb (Construction) Ltd 10.15 am London Westorb (Milton Keynes) Ltd 11.00 am London Whisby Mortar Ltd 10.30 am Nottingham Xara Sportswear International Ltd 11.30 am London 01/06/99 Chauveau Ltd 10.00 am London Elena Ltd 11.00 am London HG Mechanical Services Ltd 10.30 am Manchester Imperial Meat Co Ltd 12.00 pm Abingdon Nett Enterprises Ltd 11.30 am Brighton Officecare Group Ltd 11.00 am London Stone Civil Engineering Ltd 11.00 am Birmingham
TW LW TW LW
USA 1.6225 1.6200 Canada 2.3797 2.3688
Austria 20.9617 21.0017 Portugal 305.400 305.988
France 9.9924 10.0116 Belgium 61.4510 61.5680
Finland 9.0570 9.0750 Italy 2949.60 2955.24
Germany 2.9799 2.9852 Sweden 13.7476 13.6812
Holland 3.3570 3.3634 Switzerland 2.4408 2.4391
Spain 253.460 253.940 Ireland 1.1997 1.2020
Australia 2.4534 2.4404 Denmark 11.3238 11.3422
Hong Kong 12.5809 12.5581 Euro 1.5233 1.5265
Africa Com 10.0390 10.1108 Saudi Arabia 6.0850 6.0756
India 69.2310 69.2550 Malaysia 6.1653 6.1557
Singapore 2.7921 2.7640 Norway 12.5872 12.5491
Japan 201.930 197.240
TW This week LW Last week.
Caffyns announced pre-tax profits of 1.86 million pounds, on turnover of 151.6 million, for the year ending 31st March 1999. Earnings per share stand at 46.7p.
Greenalls announced pre-tax profits of 24.3 million pounds, after exceptional charge, on turnover of 459.6 million, for the six months ending 26th March 1999. Earnings per share stand at 6.69p.
MARKS AND SPENCER reported that pre-tax profits for the year to end- March had fallen by 41% to 656m pounds ($1.09 billion), at the high end of much-reduced expectations. Sales were flat at 8.2 pounds billion, and the British retailer said its market share in clothing had fallen, for the first time in years, from 15.1% to 14.3%. M&S also announced further restructuring. Its share price rose by 5%.
Source: The Economist
BARCLAYS, who has recently lost two chief executives, plans to cut 6,000 jobs out of its 65,000-strong workforce by the end of the year. The cuts will come mostly in the bank's retail operation, although no branches will be closed.
Source: The Economist
NEW HOLLAND/CASE
New Holland, a big agricultural-machinery group that is majority-owned by Fiat of Italy, is to take over Case, an American rival, in a $4.3 billion deal. With combined net sales of about $10.8 billion a year, the new group would mount a challenge to John Deere, the world's biggest agricultural-equipment maker, with sales of $13.8 billion. Reflecting the miserable state of farming that also spurred the takeover, Deere reported that net profits in the second quarter had slumped from $365m a year ago to$150m.
Source: The Economist
HEALTHEON/WEBMD
With the hope of becoming the dominant health-care site on the web, Healtheon and WebMd are planning to merge via a share swap valued at $5.5 billion that will include big investments from such high-tech sources as Microsoft, Intel and Excite.
Source: The Economist
PHILLIPS ELECTRONIC/LG ELECTRONICS
In South Korea's largest-ever foreign-equity deal, Phillips Electronics is taking a 50% stake in LG Electronic's liquid-crystal display unit, for $1.6 billion. The Dutch electronics giant said the purchase will make it a leader in the rapidly expanding business of flat-panel screens for televisions and laptop computers.
Source: The Economist
ALLIED DOMECQ/WARREN BUFFETT
Shares in Alied Domecq jumped on reports that Warren Buffet, through his Berkshire Hathaway investment vehicle, is spending some of its cash pile buying a stake of over 3% in the British firm, the world's second-largest wine and spirits group, which also owns the Dunkin' Donuts and Baskin-Robbins food chains. Allied Domecq has become a more attractive target since it began talks to shed its pub chain.
Source: The Economist
OLD MUTUAL
Following the example of other South African firms, Old Mutual, the country's biggest life assurer and financial-services group, plans to list in London in July. The institution, which has 3.2m policyholders, hopes to raise 400m pounds ($647m) to finance its international expansion.
Source: The Economist
DOW JONES/REUTERS
Dow Jones and Reuters formed a joint venture to combine their interactive operations to take advantage of the fast-growing business-information market.
Source: The Economist
MERGER CLEARANCE
The Secretary of State for Trade and Industry has decided, on the information at present before him, and in accordance with the recommendation of the Director General of Fair Trading, not to refer the following merger to the Competition Commission under the provisions of the Fair Trading Act 1973:Proposed acquisition by IMI plc of Polypipe plc
Acquisition by Thompson Travel Group plc of Simply Travel Holdings Limited
Acquisition by Thompson Travel Group (Holdings) Limited of A B Caller & Sons Limited
Acquisition by Thompson Travel Group (Holdings) Limited of Robert Sibbald Travel Agents Limited
Proposed acquisition by Applied Graphics Technologies Inc of Wace Group plc
Proposed acquisition by Chesapeake Corporation plc of Field Group plc
ACQUISITION BY THE SCOTTS COMPANY OF CERTAIN ASSETS OF THE MONSANTO COMPANY
Kim Howells, Minister for Competition and Consumer Affairs, announced last week that he intends to refer the acquisition by The Scotts Company of certain assets of the Monsanto Company to the Competition Commission, unless suitable undertakings are obtained from Scotts.
This decision is in accordance with the advice of the Director General of Fair Trading (DGFT).
Dr Howells said:
"I agree with the DGFT that the merger gives rise to competition concerns in relation to the market for garden fertilisers, by giving Scotts control of both the Miracle Gro and Phostrogen brands of garden fertiliser. I agree with the DGFT that these concerns could be addressed by undertakings from Scotts to divest the Phostrogen brand. I have therefore asked the DGFT to seek suitable undertakings from Scotts."
Small companies must get ready for the euro
A CD-Rom to help UK businesses to prepare for the euro was introduced last week at the launch of Grant Thornton's European Business Survey.
Small and Medium Sized Enterprises (SMEs) need to get ready to use the euro to be competitive with the rest of Europe said Small Firms Minister Michael Wills.
"This latest CD-Rom demonstrates the Government's response to businesses' growing need for practical advice and guidance on euro preparations. The challenge for SMEs is to take advantage of the business opportunities in their markets. If businesses do not, their competitors will.
"The CD-Rom allows businesses to hear how their peers are responding to the euro, the opportunities they see and the threats they think other businesses will face. It is not Government telling business what to do, it is business speaking to business in an easily shared, high tech format.
"The CD-Rom is not just an awareness-raising exercise. It includes a practical tool, the EuroPlanner, for businesses to use to prepare their strategy to deal with the euro.
"Thirty per cent of businesses responding to Grant Thornton's survey considered that the introduction of the euro would increase trade with eurozone countries. This represents a further opening of a market of nearly 300 million customers!"
The first version of the DTI's CD-Rom was released on 23 February 1999 but was designed for intermediaries to use to drive presentations on the euro. This stand alone version was produced for individual firms to use following demand from those firms who saw the CD-Rom used in their presentations.
The CD-Rom was introduced at Grant Thornton's launch of the seventh European Business Survey on prospects and issues for SMEs at 1 Whitehall Place, London.
Copies of the CD-Rom are available from Bernard Stevens by faxing your request to 0171 828 4079 or from your regional euro forum - or see for details.
Further information about the euro is available on the Treasury's euro website: www.euro.gov.uk Euro factsheets, Business Preparations for the euro, and other related material can be obtained by calling 08456 01 01 99.
CBI WELCOMES SELECT COMMITTEE'S E-COMMERCE REPORT
The CBI last week welcomed the findings of the Trade and Industry Select Committee's enquiry, into e-commerce.
Commenting on the findings Peter Agar, CBI Deputy Director-General, said: "It is encouraging that the Committee highlighted the need to ensure the Government only takes measures that promote e-commerce and not ones that stifle its development. The Committee's detailed recommendations support our effort to ensure that the forthcoming Bill is a real facilitator for e-commerce growth in the UK."
Mr Agar added that the CBI is particularly pleased that the Committee has signalled the need for:
8th June 1999 The 40th Institute of Credit Management National Conference and Exhibition New Millennium - New Risks Cumberland Hotel Marble Arch London W1 To book, or for further information telephone 01780-722907 9th June 1999 ICM Examination Preliminary Certificate in Credit Management 14th to the 16th June International Seminar on Risk Behaviour and Risk Management Run in association with FECMA Stockholm If you would like to attend or take an exhibition stand please telephone Lindsey Burke at the ICM Water Mill on 01780-722912 17th June 1999 South West Credit 1999 Crossmead Conference Centre, University of Exeter All change for the Millennium A one day seminar presented by the South West Branch of the ICM Chaired by Sir Roger Cork For further details contact Consultancy Services on 01275-855675 12th to the 14th October 1999 Tuesday to Thursday Credit North 1999 at the Royal Armouries, Leeds 17 - 19 November 1999 Wednesday to Friday International Credit Exhibition & Conference Raffles City Convention Centre The Westin Stamford, Singapore http://www.internationalcredit99.com Mailto:info@internationalcredit99.com
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