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 6 Issue 5
Dated: 3 February 2002
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
We believe we have found your perfect partner. Email John Arnold jarnold@creditman.co.uk now for further information.
UKPROFIT WARNINGS REACH RECORD HIGH IN 4th QUARTER 2001
As 150 companies in quarter 4 2001 warn of financial difficulties across nearly every industrial sector, Ernst & Young predicts further uncertainty in an environment where cash is king, profits are squeezed and change is constant.
Ernst & Young's latest quarterly Analysis of Profit Warnings reveals that 149 profit warnings were made during the three months to December 2001, a rise of 10% on quarter 3, making a total of 520 over the full year, a rise of 117% on 2000. This represents a record for any quarter and any year since the analysis began in January 1998.
However numbers of warnings are expected to show a significant decline in the first quarter of 2002 as part of a continuing trend that saw a decrease from an exceptional, record peak of 68 in October 2001 down to 49 in November and 32 in December.
Impact of September 11th
During the warnings peak of October we saw many companies observing the FSA's recommendation to inform the market, early on, of any difficulties arising from the events of September 11th. Over 40% of the warnings either directly cited the impact of the September attacks or made a reference to their knock-on effect on transport, tourism or American consumer confidence.
A more sympathetic market
Such was the fragility of the market place that the lowered expectations of investors led to a more sympathetic reaction to share prices than we have seen historically. Share prices only fell by 14% on average on the first day of trading following a warning. Historically this figure has been as high as 25%.
A shift in warning 'hot spots'
Although Software & Computer Services continued to generate the largest total number of warnings in the period (19), the sector's overall share of the warnings as a whole fell, whilst the proportion from sectors such as Engineering & Machinery grew. The number of warnings from Household Goods & Textiles companies, for example, also rose sharply from four to fourteen, nearly a quarter of quoted companies in this sector (14 out of 64). Richard Coates, Corporate Restructuring Partner at Ernst & Young comments, "we are definitely seeing a continuing shift in the 'hot spots' of corporate distress."
So what are some of the likely characteristics of the business environment in 2002?
Tighter Margins
Alan Bloom, Head of Corporate Restructuring, explains: "In the uncertain atmosphere that will dominate the next few quarters there will be extreme pressure on profit margins. Sales and prices will continue to remain stagnant or decline whilst fixed costs such as wages continue to rise." Handling this type of situation will be especially difficult for managers who gained their business experience during the bull run of the last ten years when cost reduction was a not such a priority.
Cash is king
At the same time liquidity and cash flow problems are affecting all industry sectors. Not only are customers trying to delay payment, at the same time suppliers are pressing for the early settlement of accounts. Coates explains, "as a result traditional accounting models are no longer enough. Cash flow has to be modelled and assessed on a week by week basis."
Watch your debt levels
The availability of cheap debt over the last few years has created too many highly leveraged corporates. Any future increases in interest rates will undoubtedly put a strain on borrowing covenants and the ability of companies to make payments. Too often the inability to face up to the situation early enough is the real issue. As Coates comments, "don't be afraid to talk to your bankers as soon as you see a problem."
How to stay ahead in the longer term ?
In the longer term companies have to face up to a market place that is subject to ever more change and irrationality. The best companies will face up to those demands by constantly re-evaluating their priorities and their focus. Bloom explains, "many of the world's leading multinationals have stayed ahead of the competition by being prepared to meet changing conditions by reshaping and re-orientating their business on a continuing basis."
AN APRIL BUDGET SHOULD NOT CAUSE CONCERN SAYS PRICEWATERHOUSECOOPERS
Taxpayers should not be concerned by the announcement that Budget day this year will be in April says PricewaterhouseCoopers.
Although Budget day has, over the last 20 years, traditionally been on a Tuesday in March to fit with the parliamentary working week and the end of the tax year, an April Budget day is far from uncommon. Between 1950 and 1980, April was the most common month to hold the Budget and over the last 50 years Budget day has also been held in July and November.
But there will be some inevitable side effects for both the taxpayer and the Government. John Whiting, tax partner, PricewaterhouseCoopers explains:
"Changes to personal allowances and tax rates are effective from 6 April and with a March Budget can be ready to go then. By having the Budget in April, employers will have to do a certain amount of adjusting and amending - more work for them, although we do already have the personal allowance figures from the pre-Budget report in November which will help.
"Employers will have to watch out for potential changes to National Insurance contributions and where the 10%, 22% and 40% income tax rates start and end.
"Business could be irritated by having to wait another month to know for certain whether measures such as the long-awaited Intellectual Property reforms and substantial shareholdings relief will be coming in at 1 April. These have already been a long time coming although good things are, I suppose, worth waiting for!
"The Treasury could also lose out on revenues from increases to taxes, such as petrol & diesel duties, which normally come into effect immediately. And of course, an April Budget is one month closer to 5 August - the cut off point for passing the Finance Bill to ensure that income tax goes back on the statute book. However, I am sure this will not be of concern to most taxpayers!"
CONSIGNIA URGED TO THINK AGAIN
The Federation of Small Businesses (FSB) has urged Consignia to think again about controversial proposals to scrap the traditional early morning delivery to residential addresses.
The proposals for a two-tier postal system are part of £1.26 billion of cost cutting measures being considered by Consignia. They are currently on trial in parts of south and west of England but could go nationwide within two years.
The FSB is concerned that the proposals would have a devastating affect on the one million UK businesses that are run from a residential address who would have to wait until 3pm to receive mail.
Mr John Walker, FSB National Policy Chairman said, "in business it is vitally important to receive post before 10 am because crucial documents like contracts and cheques arrive by mail. If you have to wait until 3pm, you have already wasted a day and will loose out to the competition based in the High Street."
"Working from home was supposed to be the way forward for businesses but this is a step in the other direction. The FSB wants to see a universal service at a uniform price and our members are worried this is the thin end of the wedge."
EURO STILL WEAK KID ON THE BLOCK
Despite introduction of coins and notes, the euro has hit a six-month low against the dollar
Article by Graeme Leach, Chief Economist of the IoD Published in The Business, 27 January 2002
Euro strength is the dog that will not bark, not after the advent of the single European currency on 1 January 1999 and not, so far, since the introduction of notes and coins on 1 January 2002. In Brussels boosters predict its rise so regularly that, by the law of averages, they should get it right one day. But not yet. At the end of last week, the dollar closed at a six-month high against the euro.
Two arguments were made to explain why the introduction of notes and coins would mark a turning point in the fortunes of the euro. First, the uncertainty associated with the introduction of notes and coins (it might have gone wrong) led people to act on the safe side and get out of deutschmarks (or francs or lira or pesetas) into dollars. This is dubious, given the overwhelming power of global capital markets versus backstreet currency convertors. But perhaps it was a marginal contributing factor, as exhibited in the absolute fall in deutschmarks in circulation last year.
A second, more sophisticated version of the notes and coins transition thesis attributes the consistent weakness of the euro since 1999 to a rise in the risk premium attached to it: a successful launch of notes and coins would work to eliminate this premium. Again, there is a logic to the argument, seen in the context of a new currency, but it can only be taken so far.
Recent years have seen risk running riot all over the world. Japan has been down the pan and Wall Street has been up and down like a yo-yo. If anything there has been a lower risk holding euro-denominated assets than ones in dollars or yen. But there has been a lower reward as well.
In 1999 the argument for an appreciating euro seemed to have a good pedigree, based on portfolio reallocation out of the dollar, a perception of an underlying undervaluation of the euro and a focus on America's huge and growing current account deficit.
The current account argument was overdone. Take on board the potential undervaluation of US exports in services, add the fact the roughly one quarter of total imports to the US are from foreign affiliates of American companies - and the implications of the US current account deficit begin to look less frightening for the dollar.
More important, any fears about the US current account were simply swamped by the sheer scale of capital imports into the US, much of which came from the euro zone.
Over 1999 to 2000, growth in American GDP and Wall Street proved a magnet to foreign capital. Relative interest rate differentials also favoured the dollar, further encouraging euro weakness. Nor was euro strength helped by doubts regarding the European Central Bank's credibility.
But these economic circumstances did not last. The US economy and market had turned down by 2001 and short-term interest rates in the euro zone moved well above those in the US. Moreover, euro zone inflation levels suggested the rate gap might widen as the ECB struggled with the consequences of a one-size fits all monetary policy.
Yet despite this, despite the negative impact of 11 September on the US economy, despite a fistful of false dawns of euro recoveries, there has been no real, sustained improvement in the euro.
In our currently synchronistic global economy, where the US, Japan and the euro countries and simultaneously weak, global capital markets still fall back on the US and the dollar. Markets seem to believe that whatever growth there is in the euro zone is attributable to currency weakness. This is unlikely to persuade them that GDP growth or interest rates will move higher.
The introduction of notes and coins has changed nothing. Global markets remain oriented towards the US, recognising that when recoveries do occur, they tend to be twice as fast in the US than Europe. So if the US downturn is short and shallow, the euro could yet test new lows.
Alternatively, if the US experiences something longer and deeper, such as a hard landing on top of an overvalued stock market and structural savings imbalance, then it may yet be time to drink to the euro - but only because it would be in the last chance saloon.
If the US economy were to experience a hard landing, coupled with a capital outflow from Wall Street and the dollar which favoured the euro, it would make sense to expect the euro to strengthen; but such a scenario would be associated with systemic financial risk on a global scale. In such an environment the euro would not be an oasis of calm.
If a future banking crisis were to emerge, it would do so for the first time when the ECB has operations all over the euro zone. Serious financial instability could ensue as a result of uncertainty over the role of the ECB versus individual national central banks. Furthermore, in such an eventuality, the costs of preventing insolvency could be large and immediately run up against the Brussels growth and stability pact.
This would be the ultimate test of credibility for both monetary and fiscal policy in the euro zone. So even a hard landing in America would not necessarily herald a new dawn for the euro. And in the more likely event of a modest US recovery, the euro is likely to remain the weak kid on the block for the fourth year running.
Companies House regret to inform customers that due to circumstances outside our control, we will no longer be able to provide any services at 7 West George Street, Glasgow, from 28 February 2002.
The office will close at 5.00pm on 28 February.
From 1 March 2002, the nearest Companies House office is at 37 Castle Terrace, Edinburgh, EH1 2EB.
We apologise for any inconvenience.
Please address any enquiries and comments to:
Marsha Purdie, Customer Care, Companies House, 37 Castle Terrace, Edinburgh, EH1 2EB.
Telephone: 0131 535 5864 or 0870 33 33 636
E-mail: mpurdie@companieshouse.gov.uk
ICC CONTINUES EXCEPTIONAL GROWTH WITH TWO NEW DIRECTORS
Continuing the exceptional growth experienced during 2000 and 2001, ICC Information has appointed two new directors.
In contrast to most other information service providers and the direction of the economy, ICC Business Information and Credit divisions grew by 14% last year.
The new appointments, made internally, will enable ICC Information to continue focusing on growth in its core markets - Business Information and Credit.
Business Information will be headed by Ian Goodenough whose first task will be to oversee the launch of a new service, Plum, which enables users to conduct broad research across markets and drill down to find comprehensive details on companies, directors and shareholders all from one search facility.
Gordon Christiansen will head ICC Credit, a new brand recently launched under ICC Information, which is leading the industry in a drive towards credit best practice, especially through its new credit portal and integrated online services.
Alistair Pauline, who remains chairman of ICC Information Ltd said,
"The success of ICC Information over recent years can partly be attributed to our culture which focuses on developing our people and on understanding and meeting our customers' needs. We have a very strong and committed management team, a testament to which is our ability to make internal appointments such as these."
You can obtain ICC's Credit Information Reports by going to http://www.creditman.co.uk/icc/icchome.html
MORTGAGE POSSESSION STATISTICS - FOURTH QUARTER 2001
The Lord Chancellor's Department last week published figures for mortgage possession actions entered in the county courts of England and Wales for the fourth quarter of 2001.
Table 1 shows the number of mortgage possession actions entered for each year, by quarter, since 1995. During the fourth quarter of 2001, 14,556 mortgage possession actions were entered and a total of 10,160 orders were made - 6,053 of which were suspended orders.
The figures do not indicate how many houses have been repossessed through the courts; not all the orders will have resulted in the issue and execution of warrants of possession.
In the fourth quarter of 2001, the number of actions entered was just over 17% less than the fourth quarter of 2000. For the same period, figures show a decrease of 20% in orders made (nearly 60% of orders made were suspended - compared to just over 60% in the fourth quarter of 2000).
Explanatory Notes
Public enquiries : 020-7210 1757/1751
Table 1 MORTGAGE POSSESSION ACTIONS
(Local Authority and Private)
Year Quarter Actions Entered Orders Made1
1995 1 21 345 18 830
2 19 560 18 801
3 22 084 19 028
4 21 181 18 599
84 170 75 258
1996 1 23 987 20 297
2 19 253 18 825
3 19 092 16 953
4 17 526 15 128
79 858 71 203
1997 1 16 298 14 649
2 16 566 14 550
3 16 778 13 999
4 17 431 13 958
67 073 57 156
1998 1 18 536 16 497
2 19 449 16 247
3 22 919 17 101
4 23 932 16 210
84 836 66 055
1999 1 22 525 18 057
2 19 811 15 483
3 19 478 13 997
4 19 794 12 657
__________ __________
81 608 60 194
2000 1 20 371 11 685
2 17 343 14 261
3 17 786 13 435
4 17 545 R 12 700 R
__________ __________
73 045 52 081
2001 1 18 168 12 001
2 16 696 12 159
3 15 546 11 403
4 14 556 10 160
__________ __________
64 966 45 723
1 Including suspended orders R Revised since last publication
The joint administrators of Enron Metals Group Limited last week announced the sale of Enron Metals Limited. The transaction is expected to be completed on 4 February 2002.
Dipankar Ghosh of PricewaterhouseCoopers, one of the joint administrators, said:
"I am delighted to announce the sale of Enron Metals Limited. We received strong expressions of interest from 20 parties - the offer from Sempra was the best. The sale is good news for EMGL's creditors as well as for the employees and the counterparties of Enron Metals Limited.
"The Financial Services Authority and the London Metal Exchange actively monitored the sale process and EML's trading since our appointment and I congratulate them on their approachability and responsiveness in facilitating the sale, which helped to eliminate market disruption from EMGL's insolvency."
Dipankar Ghosh, Anthony Lomas, Neville Kahn and Steven Pearson, all partners at PricewaterhouseCoopers, were appointed administrators of EMGL by the High Court on 3 December 2001. The same four partners were appointed administrators of Enron Europe Limited and a number of other companies in the Enron Europe group on 29 November 2001.
Enron Metals Limited was acquired by Enron in mid-2000 as part of the Metallgesellschaft plc group.
COURT FINDS DEADMAN DIRECTORS GUILTY OF FRAUD
Two directors whose haulage companies were wound up with debts of £2 million have been found guilty of fraudulent trading.
After a trial lasting more than 4 months, a jury at Canterbury Crown Court returned verdicts of guilty on directors Christopher Trietline, a solicitor from Hereford and James Tangye, a farmer from Worcester. Also convicted was company accountant Arthur Waite from Herne Bay, Kent.
The men were involved in running three haulage companies, Deadman Transport Ltd, Deadman Transport (Midlands) Ltd, and Deadman Transport & Groupage Ltd which operated in the Midlands and Kent.
The companies were wound up in 1996 and 1997 leaving creditors out of pocket to the tune of £2 million.
Trietline and Waite were found guilty on three counts of fraudulent trading, whilst Tangye was found guilty on two counts.
The Court adjourned sentencing to the 22 February 2002, and all three were remanded in custody.
All men faced an Indictment containing 3 Counts of Fraudulent Trading contrary to Section 458 of the Companies Act 1985.
Trietline and Waite were found guilty on all Counts. Tangye was convicted on Counts two and three but acquitted on Count One.
The particulars of the offences were as follows:
COUNT ONE
That between 1 January 1995 and 4 September 1995, Arthur Frank Chard Waite, James Alan Tangye and Christopher Charles Trietline were parties to the carrying on of a business, namely Deadman Transport Ltd, with intent to defraud the creditors of that company in that:
i) Waite sought and obtained continued extended credit from Southern Counties Fuels Limited, and in so doing, he falsely represented that a Statement of Affairs in respect of Deadman Transport Limited dated 13 March 1995 gave a true and accurate reflection of the asset base of Deadman Transport Limited, contributing to procuring the extension of the said extended credit to the prejudice of Southern Counties Fuels Ltd; and
ii) Waite, Tangye and Trietline fraudulently removed from the company assets belonging to the company, namely cash, to the prejudice of creditors of the company.
COUNT TWO
Waite, Tangye and Trietline between 12 Mary 1995 and 18 April 1997 were parties to the carrying on of a business, namely Deadman Transport (Midlands) Ltd (formerly known as Aerial Transport Ltd) with intent to defraud the creditors of that company in that they continued to trade and accept credit when there was no realistic prospect of debts being paid as and when they fell due.
COUNT THREE
Waite, Tangye and Trietline between 4 September 1995 and 16 August 1996 were parties to the carrying on of a business namely Deadman Transport (Groupage) Ltd with intent to defraud the creditors of that company in that:
i) Tangye and Trietline procured by deception the extension of further credit from Southern Counties Fuels Ltd by the offer of and agreement to a charge in favour of Southern Counties Fuels Ltd on company property which property was already the subject of a charge in favour of Grant Thornton, the existence of which prior charge was known to Tangye and Trietline, but not know to officers of Southern Counties Fuels Ltd;
ii) Waite, Tangye and Trietline continued to trade and accept credit when there was no realistic prospect of debts being paid as and when they fell due;
iii) Waite, Tangye and Trietline procured by deception the payment by International Factors Ltd of factored debts on invoices which were known to the defendants to be false invoices;
iv) Waite, Tangye and Trietline fraudulently removed from the company assets belonging to the company, namely cash, to the prejudice of creditors of the company.
INSOLVENCIES IN THE FOURTH QUARTER 2001
Statistics showing insolvencies in the fourth quarter 2001 were published on the 1 February by the Department of Trade and Industry.
Company Insolvencies
There were 3,798 company insolvencies in England and Wales in the fourth quarter of 2001 on a seasonally adjusted basis. This was an increase of 1.8% on the previous quarter and an increase of 2.6% on the same period a year ago.
1.1% of active companies became insolvent in the twelve months ended Q4 2001, the same as the previous quarter and the corresponding quarter in 2000.
Individual Insolvencies
There were 7,370 individual insolvencies in England and Wales in the fourth quarter of 2001 on a seasonally adjusted basis. This was effectively the same as the previous quarter and an increase of 1.8% on the same period a year ago.
Number of Insolvencies in England and Wales (seasonally adjusted)
Percentage change
2000 2001 2001 2001 2001 Q4 2001 on:
Q4 Q1r Q2r Q3r Q4p Q3 2001 Q4 2000
Companies 3,703 3,700 3,743 3,731 3,798 1.8 % 2.6%
Individuals 7,239 7,420 7,610 7,374 7,370 -0.0 % 1.8%
p = provisional, r = revised
The Official Insolvency Statistics are the most comprehensive record of the number of insolvencies and bankruptcies and provide a more accurate picture for analysing business conditions. The figures include businesses and individuals, with a breakdown by type of insolvency procedure. The figures treat Scotland separately (as insolvencies are defined differently in Scotland) and give an industrial analysis (for which the figures for England & Wales are published one quarter in arrears).
The statistics are derived from administrative records of the DTI Insolvency Service and Companies House Executive Agencies. The figures for company insolvencies are made up of compulsory liquidations (winding-up orders made by the courts) and creditors' voluntary liquidations registered at Companies House. Figures for individual insolvencies comprise bankruptcy orders and individual voluntary arrangements under the Insolvency Act 1986 and deeds of arrangement under the Deeds of Arrangement Act 1914. Individual voluntary arrangements and deeds of arrangement are now included under one column.
Numbers of insolvencies are not directly comparable with numbers of new business formations. Statistics of business starts and stops that are directly comparable with each other have been assembled from VAT records and are published by the Department of Trade and Industry. The latest figures are those for 2000, and were issued in a DTI press notice on 6 September 2001. More detailed figures are available via the on-line database NOMIS. Additionally, analysis into the number of firms in the United Kingdom estimated the total number of businesses at the start of 2000 at 3.7 million.
The X11ARIMA program (developed by Statistics Canada) is used for the seasonal adjustment of the insolvency statistics, this being the recommended program within UK National Statistics.
A company or individual with debts that they are unable to pay as they fall due is said to be insolvent. 6. Insolvent companies are dealt with under the Insolvency Act of 1986. They can either be the subject of a compulsory liquidation (winding-up) order obtained from the Court by a creditor, member or director or themselves pass a resolution, subject to the approval of a creditors' meeting that the company be wound up voluntarily (creditor's voluntary liquidations). A third type of winding- up, members' voluntary liquidation, is not included because it does not involve insolvency.
The Insolvency Act 1986 also introduced the procedures of company administration orders and company voluntary arrangements. The administration procedure gives a period of time during which creditors are restrained from taking action and a court appointed administrator puts forward proposals to deal with the company's financial difficulties. The Company Voluntary Arrangement procedure aids business by enabling a company in financial difficulty to come to a binding agreement with its creditors.
Receivership appointments comprise administrative receivers appointed under the 1986 Act and certain other receivership appointments, for example under the Law of Property Act 1925. Due to the use of the same statutory documentation for different types of receivership, it is not possible to give a breakdown between them.
For individuals the term bankrupt is used to indicate insolvency.
Insolvent individuals in England and Wales are dealt with mainly under the Insolvency Act 1986. A bankruptcy order is made on the petition of the debtor or his creditor when the Court is satisfied that there is no prospect of the debt being paid. (Figures for bankruptcy orders include administration orders, which are bankruptcy orders relating to the estate of a deceased debtor). There are also individual voluntary arrangements and deeds of arrangement, which enable debtors to come to an agreement with their creditors.
Insolvent individuals in Scotland are subject to sequestration under the Bankruptcy (Scotland) Act 1985. (There are no deeds of arrangement or individual voluntary arrangements in Scotland). The Bankruptcy (Scotland) Act 1993 amending the 1985 Act came into force on 1 April 1993 and will have affected the number of sequestrations in the Scottish Courts.
Insolvent partnerships may either be wound-up like an unregistered company under the Insolvency Act 1986, or the estate, if the partnership may fall to be administered following joint bankruptcy orders against the partners. E-MAIL: Statistics Directorate: margaret.sims@dti.gsi.gov.uk damian.pritchard@dti.gsi.gov.uk INTERNET: Statistics Directorate: http://www.dti.gov.uk/sd
COMPANY WINDING UP AND BANKRUPTCY PETITION STATISTICS FOURTH QUARTER 2001
The Lord Chancellor's Department on the 1st February 2002 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 Forth quarter of 2001.
In the fourth quarter of 2001 the following number of petitions were issued:
- 2,681 company winding up petitions - a decrease of just over 5% on the petitions in the same quarter of 2000;
- 3,484 creditors' petitions - a decrease of nearly 19% on the petitions in the same quarter of 2000;
- 3,797 debtors' petitions - an increase of just over 18% 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. The publication date for the figures covering the first quarter of 2002 will be Friday 3 May 2002.
Explanatory Notes
The 2001 figures are provisional and liable to revision to take account of any late amendments.
No assumption can be made from these statistics about the number of companies that go into liquidation, or the number of individuals made bankrupt.
Insolvency
A company or individual with debts that they are unable to pay is said to be 'insolvent'.
Company Winding Up
When it becomes necessary to terminate a company's existence, whether owing to insolvency or for some other reason, the process is called 'winding up'.
There is a restriction on proceeding that may be commenced in county courts which is based on the paid-up capital of the company. Well over half of winding up proceedings are commenced and handled in the Chancery Division of the High Court at the Royal Courts of Justice in London and at the eight provincial High Court centres.
Company winding up proceedings will normally be commenced at the court centre local to the registered office of the company, which will not necessarily be situated in the same geographical area as the company's base or operational area. The relative regional levels of winding-up activity do not therefore necessarily reflect the geographical distribution of the companies involved.
Individual Bankruptcy
For individuals the term bankrupt is used to indicate insolvency
Proceedings for bankruptcy can be commenced at county courts with the appropriate jurisdiction, or in the Chancery Division of the High Court, either by a creditor (the person to whom the debt is owed) or by a debtor (the person who owes the debt).
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 2 829 R 4 279 3 211
11 028 17 220 12 757
2001 1 3 124 4 775 3 630
2 2 333 2 127 2 681
3 3 866 3 441 3 484
4 3 742 3 801 3 797
10 265 15 563 14 964
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TW LW TW LW
USA 1.41 1.42 Canada 2.25 2.28
Austria 22.57 22.36 Portugal 328.86 325.78
France 10.76 10.65 Belgium 66.17 65.55
Finland 9.75 9.66 Italy 3176.17 3146.50
Germany 3.20 3.17 Sweden 15.13 15.01
Holland 3.61 3.58 Switzerland 2.41 2.38
Spain 272.94 270.28 Ireland 1.29 1.27
Australia 2.75 2.75 Denmark 12.18 12.07
Hong Kong 11.02 11.11 Euro 1.64 1.62
Africa Com 16.25 16.25 Saudi Arabia 5.29 5.34
India 68.41 68.85 Malaysia 5.36 5.41
Singapore 2.59 2.62 Norway 12.86 12.80
Japan 188.58 191.97
TW This week LW Last week.
America's regulators ensured that a joint venture between British Airways and American Airlines did not get off the tarmac by demanding that the airlines give up 224 landing slots at Heathrow airport as the price for a deal.
Global Crossing, a long-distance telecoms carrier once valued at some $50 billion, filed for Chapter 11 bankruptcy protection.
Xerox, an American office-equipment maker that has struggled for some years, gave investors a surprise by announcing that it had made an operating profit in the fourth quarter of $108m.
Kirch, a cash-strapped German media company, faced further trouble after Axel Springer exercised a put option forcing Kirch to pay EURO767m ($661m) for the publisher's 11.5% stake in ProSiebenSAT.1, a broadcasting concern in which Kirch already owns a 53% stake.
Source - The Economist
ARM, the chip designer, announced pre-tax profits of 50.6 million pounds, on turnover of 146.3 million, for the year ending 31st December 2001. Earnings per share stand at 3.5p.
Dataflex announced pre-tax losses of 6.94 million pounds, on turnover of 4.88 million, for the six months ending 31st December 2001.
Fairbriar announced pre-tax profits of 4.82 million pounds, after exceptional charge, on turnover of 42.9 million, for the year ending 30th September 2001. Earnings per share stand at 14.2p, on increased capital.
Games Workshop announced pre-tax profits of 6.04 million pounds, on turnover of 51.6 million, for the six months ending 2nd December 2001. Earnings per share stand at 12.5p.
Invox announced pre-tax profits of 1.64 million pounds, on turnover of 6.45 million, for the nine months ending 31st December 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 merger of Petroleum Geo-Services ASA and Veritas DGC Inc
Acquisition by Apollo Management L.P. of the 'salt' and 'ogden' businesses of IMC Global Inc
P&O PRINCESS CRUISES PLC/ROYAL CARIBBEAN CRUISES LTD: COMPETITION COMMISSION INVITES EVIDENCE
Patricia Hewitt, Secretary of State for Trade and Industry, has asked the Competition Commission to look into the proposed combination of cruise holiday operations by P&O Princess Cruises PLC (P&O) and Royal Caribbean Cruises Ltd (Royal).
The Commission will look at all aspects of the merger's likely effects on the public interest. The Commission has been asked to report to the Secretary of State for Trade and Industry by 20 May 2002. The report will be published later.
The Commission would like to hear from all interested parties in writing by 13 February 2002. If you wish to submit evidence please write to:
The Reference Secretary (P&O/Royal) Competition Commission New Court 48 Carey Street London WC2A 2JT
Denise Kingsmill, one of the Commission's deputy chairmen, will chair the inquiry. The other members of the group are Anthony Clothier, Peter Hazell, Professor Paul Klemperer and Jeremy Seddon.
Biographical Notes Mrs Denise Kingsmill CBE has, since 1979 pursued a legal career, specialising in Industrial Relations, Employment Law and Corporate Governance. She was born in New Zealand and grew up in South Wales. After reading Economics and Anthropology at Cambridge she spent the early part of her career in marketing with ICI and the International Wool Secretariat before sitting Bar and solicitors'' examinations in the late 1970s. She is Non-executive director of Telewest Communications PLC and of Manpower UK Plc. She is also an Honorary Fellow of the University of Wales, Cardiff, and Honorary Doctor of Law of Brunel University and a Trustee of the Design Museum. She has recently completed the Kingsmill Review of Women's Pay and Employment.
Mr Anthony Clothier is an independent consultant specialising particularly in privatisation and restructuring in Eastern Europe and a Member of the Supervisory Board of Alpina dd in Slovenia. He was Chairman of the OFWAT Wessex Customer Service Committee between 1990 and 1995. He was President of the British Footwear Manufacturers Federation on two occasions, the most recent being 1993-1995 and President of the European Shoe Federation from 1979-1983. He served as a main board Director at C&J Clark Ltd from 1977-1986 having previously held other senior positions in this company. He operates and is actively involved in woodland management.
Mr Peter Hazell MA MPhil has been a partner in various capacities in the accountancy firms Deloitte Haskins & Sells, Coopers & Lybrand and PricewaterhouseCoopers, where he was the UK Managing Partner. He was also a Director and Board member of the National Grid Company and is currently the Chairman of the Argent Group, a major UK property developer. He has had experience of competition matters throughout his career and has been involved in merger cases before both EC and domestic competition authorities.
Professor Paul Klemperer FBA is Edgeworth Professor of Economics at Oxford University. His work is focused on industrial economics and auction theory. He has been an adviser to several government departments and the Competition Authorities, and has also advised the US government on merger and competition cases and policy. He has spent several years working in the private sector, and has served on the Board of Advisors of, or as a consultant to, a number of private companies. He has published many papers, edited eleven academic journals, and is a Fellow of the British Academy and of the Econometric Society and a member of the Council of the Royal Economic society. He has also held visiting positions at M.I.T., Stanford, Berkeley, Yale and Princeton.
Mr Jeremy Seddon was head of BZW''s Privatisation and Government Advisory Unit and Vice-Chairman of BZW Corporate Finance from 1987 to 1995 having joined Barclays in 1974. From 1995-97 he was Chairman of BZW/Barclays India. Mr Seddon was until recently Chief Executive of British Invisibles, the company responsible for promoting the UK''s financial services industry in overseas markets.
Further information about this inquiry can be obtained from the Commission's website at www.competition- commission.org.uk
18 - 22 February Advanced Credit Analysis FT Knowledge Course 80 Strand, London For further details tel 020 7010 2508 Website www.nyif.com/emea Email finlearn@ftknowledge.com Friday 22 February 2002 Debt Sale & Purchase Credit Today, Savoy Hotel, London The second annual debt sale and purchase conference chaired by Rob Levick. For details e-mail carleen@credittoday.co.uk 6 - 7 March 2002 Softworld Accounting & Finance Software and E-business event. Grand Hall, Olympia, London Register in advance at http://www.softworld.co.uk/afs2002/register.html 11-13 March 2002 BCR's 2002 Receivables Finance International Conference Four Seasons Hotel, Singapore Website http://www.factorscan.com/static/asianpacific.htm Tel: +44 208 466 6987 Fax: +44 208 466 0654 Email mb@bcrpub.co.uk Wednesday 13 March 2002 ICM National Conference and Exhibition Heritage Motor Centre, Gaydon near Warwick For full details tel 01780-722907 or e-mail training@icm.org.uk Monday 25 March Wessex Branch of the ICM meeting Do Not Get Stung by Guarantees Presented by Jo Johnson of Moore Blatch Solicitors Royal Southampton Yacht Club Southampton 7.00pm for registration and refreshments 7.30pm Speakers 4 April Credit Today Awards 2002 Grosvenor House Park Lane London Black Tie Single Booking 120.00 plus vat. 10% discount to Credit Today subscribers Telephone 01403-786-726 or 020-7407-4700 E-mail sgc@mag-subs.demon.co.uk or awards@credittoday.co.uk or visit www.credittoday.co.uk 7 - 13 April The Credit Academy, 7 day Residential Course FT Knowledge Financial Learning London, 80 Strand, WC2R 0RL Contact Jane Lees - E-mail jane.lees@nyif.com Tel +44 (0)20 7010 2568 17 and 18 April Credit 2002 - The Definitive Event for the Commercial and Consumer Credit Industry Brompton Hall, Earls Court, London For more information contact vtolson@advanstar.com Website www.credit-expo.co.uk 22 - 28 April The Credit Academy, 7 day Residential Course FT Knowledge Financial Learning Venue - Hong Kong, location tbc Time: 08.30 Contact Jane Lees - E-mail jane.lees@nyif.com Tel +44 (0)20 7010 2568 10 - 16 June The Credit Academy, 7 day Residential Course FT Knowledge Financial Learning Venue - New York, location tbc Contact Jane Lees - E-mail jane.lees@nyif.com Tel +44 (0)20 7010 2568 21 June The ICM Fellows Luncheon Churchill Room, The House of Commons Westminster, London Guest Speaker Norman Lamb MP Cost 49.50 GBP inc of vat and all drinks Contact ICM Training Department on 01780-722907 E-mail sheila@icm.org.uk 3 to 5 July Receivables Finance International Europe (2002) Marriott Hotel, Prague Tel: +44 208 466 6987 Fax: +44 208 466 0654 Email mb@bcrpub.co.uk Wednesday to Friday 9 to 10 October International Credit Exhibition & Conference Raffles City Convention Centre Level 4 Swissotel Singapore , The Stamford Singapore Website http://www.internationalcredit001.com/ E-mail info@internationalcredit001.com 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
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