Editor: John Arnold. E-mail jarnold@creditman.co.uk
Pat Williams. E-mail pwilliams@creditman.co.uk
Site: Business Credit Management UK
URL: http://www.creditman.co.uk
Issue: Vol 5 Issue 41
Dated: 4 November 2001
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKRETAIL SALES BOOM FADES - CBI SURVEY
The rapid growth in retail sales has started to slow, according to the CBI's latest Distributive Trades Survey (DTS).
Sales volumes growth is at its slowest this year, with 45 per cent of retailers saying they are up and 26 per cent saying they are down in October compared with a year ago. The resulting positive balance of 19 per cent compares with 54 per cent in September. It is the least buoyant picture since the December 2000 but is in line with the average balance since 1990.
Sales growth is expected to increase at a similar rate in November after hitting five-year peaks over the summer. Despite signs of weaker consumer confidence, the underlying trend in retail sales remains fairly robust. Special one-off factors like a warmer-than-usual October could unwind in the months to come, the CBI said.
"Consumer spending has moved out of fifth gear but that does not mean it is heading for a standstill. It is too soon to say whether sales growth will continue to slow over the long-term. But with inflation prospects benign, the CBI's call for a meaningful rate cut is justified," said DTS Panel Chairman and Boots director Alastair Eperon.
"Anecdotal evidence suggests that sales may have been affected by the decline in tourist trade from the United States and by the unusually warm October, which has impacted on clothing sales in particular," he added.
When asked about how sales looked for the time of year, 24 per cent said they were good, 52 per cent said they were average and 24 per cent said they were bad. This flat result compares with the plus 29 per cent result in September.
Clothing sales turned negative for the first time for two years. Furniture, carpet stores and off licences reported the greatest fall in sales. Household goods continued to see extremely strong sales, while hardware, china and DIY saw the liveliest annual improvement in trade.
In wholesaling, orders placed on suppliers fell markedly and orders are expected to decline a little faster in November.
Motor traders may have found the novelty of the new-style car number plate system wore off. Annual sales grew very slowly in October compared with September and are expected to fall in November.
WILSON ANNOUNCES FURTHER £6M BOOST FOR UK COAL INDUSTRY
Coal mines in Scotland and Wales have received a further £6.4m injection from the Government. This takes the total amount of aid paid under DTI's scheme to assist the industry to over £137m.
Brian Wilson, Minister for Energy and Industry, announced the payment of £5.4m to Longannet Mine in Scotland, and £1m to Aberpergwm Colliery in South Wales. Grants are made to assist mines with viable futures without aid through short-term market problems.
Brian Wilson, Minister for Energy, said:
"Coal has a continuing role to play in the energy needs of Scotland and the UK. I am determined that Longannet will be given every opportunity to achieve its full potential and this has been reflected in our support for the colliery.
"I am very confident that this latest tranche of support will open a very bright future for Longannet."
The Commission has approved payments as follows:
The money will be paid under the UK Coal Operating Aid Scheme, which was approved by the European Commission last year. It applies to coal produced between 17 April 2000 and 23 July 2002, and provides support by the UK government for the UK coal industry. It is designed to allow mines with viable futures without aid to overcome short term market problems, caused in particular by low world gas prices and the lifting of the stricter gas consents policy on the building of gas-fuelled power stations in the UK.
Although the Scheme as a whole has been approved by the Commission, they also approve individual subsidy payments. The Commission has three months to consider an application for aid, but the DTI and the Commission have co-operated closely together to speed up the process as much as possible.
Aid is considered in three tranches covering the period 17 April 2000 to 23 July 2002. Tranche 1 covers 17 April 2000 to 31 December 2000 (£87.5m approved by the Commission); tranche 2 covers 2001 (£49.6m approved to date); and tranche 3 covers 1 January 2002 to 23 July 2002. Sixteen different collieries have received aid under the Scheme.
The payment to Longannet is in addition to grants of £17.5m and £18.3m paid under the first and second tranche periods respectively. However, in making their original applications Mining (Scotland) Ltd decided not to seek Commission approval for all the eligible costs detailed in their application and admissible under the Scheme. Due to unforeseen geological problems and major flooding at the mine, Mining (Scotland) Ltd requested that DTI seek Commission approval to pay the costs omitted from its 2000 and 2001 applications in August of this year. The Commission found that these costs were legitimate under the terms of the Scheme and authorised their payment on 17 October 2001. Anthracite Mining Ltd did not apply for subsidy in the first tranche period.
This announcement will take total payments under the Scheme to over £137m. The Scheme has an overall limit of £170m, although the government does not currently anticipate spending this amount.
All applications for aid under the Scheme are based on forecast losses. There is a reconciliation procedure whereby any excess of aid over actual losses is repaid to the Government. Nearly all payments made under tranche 1 have now been reconciled.
Further details of the Scheme are available at www.dti.gov.uk/support/coal.htm
STATE OF THE ECONOMY IS ONE OF UK'S BIGGEST BUSINESS CONCERNS
Britain's economic outlook is one of the biggest concerns for its business community, with only one in ten company leaders forecasting economic growth over the next year, according to a new survey conducted by business and financial adviser, Grant Thornton.
Over 2,400 business owners and managers were surveyed as part of the national Owners' Day campaign to pinpoint the key issues of concern for business owners and provide a unique insight into what challenges UK businesses face. The findings will be launched at a series of events on November 8.
The survey revealed that building the value of the business was managers' chief concern, a particular challenge as anxiety about Britain's economic performance has increased substantially since last year's inaugural study (from 30% in 2000 to 47% in 2001).
Economic uncertainty may overshadow growth
Graeme Forbes, Head of Entrepreneurial Services at Grant Thornton, "it is highly likely that this reported level of concern about our economic outlook will have deepened substantially after the tragic events of 11 September." He continues, "Economic indicators and anecdotal evidence show that the economic situation has worsened since our summer survey. Faced with high levels of uncertainty, business leaders are having to make increasingly tough decisions about managing their businesses during a downturn, but we also know that some see the situation as creating opportunities to expand their business. Either way, effective management skills are going to be highly prized."
UK businesses find opportunity in the gloom
One in three respondents felt downbeat about the UK economy, believing it will decline over the next 12 months, but the vast majority (86%) said their own businesses would remain stable or grow, although this confidence is lowest in firms employing 10 or fewer staff. Business optimism appears to be paralleled by recruitment plans as an even larger proportion said they would maintain or increase staff numbers (92%).
This feeling of cautious optimism is echoed by one of the experts consulted as part of the Owners' Day research. HSBC Bank plc's Chief Economist Dennis Turner, believes the overall picture of the UK economy shows that it is in pretty good shape. He states, "In the 1970s, we were prone to double digit inflation and we were the sick man of Europe. Now in 2001, inflation is at its lowest for decades, interest rates have been at 7% or less for years, unemployment is under one million and the Government is awash with money. At a very high level of aggregation, this is a good economy."
Other Owners' Day experts believe that uncertain times call for a fresh approach to managing the business. Giles Clarke, entrepreneur and creator of Pet City is adamant that having strong financial control of the business is vital. He says, "It's tough for everyone in a recession. If you have good cash reserves, low gearing and a clear market position, it's likely that you'll see competitors disappear and it's a fantastic opportunity to build a strong market position." Terry Thomson, CEO of engineers Thomson Pettie, also believes that such times can be advantageous for ambitious businesses. He states, "It's very tight and there are price pressures on everyone, but I'm one of those warped people who see it as an opportunity. We'll do to others what they do to us so that we'll come out the other end. It's my job to see that we come out the other end, picking up business along the way."
Lack of business planning and European preparation let businesses down
In order to weather any economic storm, businesses must be well prepared, but alarmingly, one third of UK businesses that responded to the survey do not have a formal business plan. This was the case with nearly half of all respondents employing 10 or fewer staff, but it was also a fact for nearly one in five of larger companies employing 250 or more people. The larger the business, the more critical a business plan would seem to be, with 84% of companies with a turnover of £30m-£100m per year and 98% of companies turning over £100m per year having business plans.
Graeme Forbes concludes, "In the face of a down turn, businesses must be aware that now is the time for strategic planning and an up to date business plan. With an appropriate management structure and careful budgeting, the current economic climate offers a wealth of new opportunities."
Grant Thornton is a leading financial and business adviser to owner-managed businesses and their owners. It aims to help clients realise their ambitions locally, nationally and internationally, via a network of 41 local offices, and an international network with representation in over 100 countries.
Visit Grant Thornton's website at www.grant-thornton.co.uk
Acquisition of French & Associates subsidiary creates Ireland's largest business information service
Nottingham, UK, 29 October 2001 - Experian, the global information solutions company, has continued its growth in Ireland with the acquisition of Interface Business Information, one of Ireland's leading business information providers.
Experian Ireland, already a significant provider of business information in Ireland following the acquisition of ITPA in 1998, will merge with Interface to become the leading local provider of business information. With the acquisition of Interface, formerly part of French & Associates French & Associates, a leading provider of Order-to-Cash outsourcing solutions, Experian will create the largest and most comprehensive web-enabled financial information resource on Irish companies. This makes it far easier for commercial organisations of all sizes to minimise their exposure to risk when conducting business with other companies.
In addition to providing financial information for credit management on companies in Ireland and abroad, Experian is also well known in Ireland for its weekly Gazette, which lists all bankruptcies and Registered Judgments. Interface was set up in 1994 and quickly became a key supplier of business information to the Irish business community. In recent years, it has become particularly successful in supplying business information to the credit insurance market. It has since grown to become the leading provider of Irish business information to overseas based companies.
"This acquisition is an important element of our successful strategy of building the leading business in Ireland to provide business information services to Irish companies and the country's financial services industry," said Richard Fiddis, Chief Operating Officer at Experian.
"As the global economic slowdown has impacted on the Irish economy, company insolvencies have begun to increase, so companies need rapid access to accurate information about the companies they trade with in order to do all they can to avoid the risk of trading with companies that find themselves unable to pay their bills.
"Since Experian acquired ITPA more than three years ago, we have made considerable investments in new technology to enhance the amount and content of the information available on companies and the methods of delivery of that information to our clients. This acquisition is further evidence of Experian's commitment to the Irish market and to providing increased levels of service to clients of both businesses, with improved online delivery, more comprehensive financial information on companies in Ireland and a broader product range."
French & Associates’ is a leader in business process outsourcing (BPO) for the Accounts Receivable and Order-to-Cash outsourcing functions. founder and Executive Chairman, Paul French, commented on the company’s decision to sell Interface , "We built a market-leading business information service with top-notch people and clients at Interface. As French & Associates increases its focus on outsourcing the Order-To-Cash function for Global 1000 companies, it makes more sense for us to partner with world-class providers like Experian for business information services versus owning those services ourselves. This gives our clients maximum flexibility."
As well as its business information operations, Experian is also a major decision support and target marketing services provider in Ireland. Its clients in Ireland include most of the country's major financial institutions, as well as government departments, multi-nationals and a wide variety of businesses covering the entire economic spectrum.
Experian helps organisations find the best prospects and make fast, informed decisions to improve and personalise their relationships with their customers. It does this by combining sophisticated and intelligent decision-making software and systems with some of the world’s most comprehensive databases of information on consumers, businesses, motor vehicles and property. Through multi-channel delivery of its web-based products and services, Experian enables its clients to conduct secure and profitable e-business and develop state-of-the-art CRM systems for communicating and building one-to-one relationships with customers. Experian is a subsidiary of GUS plc and has headquarters in Nottingham, UK, and Orange, California. Its 12,000 people support clients in over 50 countries. Annual sales exceed £1 billion.
DESPITE FINANCIAL WOES, MOST AMERICANS READY TO MEET DEBT OBLIGATIONS
Contributed by www.collectionindustry.com
3 in 10 Americans say finances affected by September 11 attack, according to national survey by CollectionIndustry.com; but vast majority still expect to pay debts as usual.
WASHINGTON, DC—OCTOBER 30, 2001—A nationwide survey sponsored by CollectionIndustry.com shows that 80 percent of Americans stand ready to pay their debts in the normal way, despite deep-running financial troubles.
The finding comes in spite of the fact that 31 percent of Americans say their household finances have been affected as a result of the September 11 terrorist attack, and 35 percent say their household finances have been affected by the recession, according to the survey.
3 in 10 affected by September 11, more by recession
The number of citizens whose finances have been affected by September 11 is 31 percent nationwide, according to the survey.
That number climbs to 37% among Americans 45-54 years old, and to 40% among Americans 55-64 years old, the survey shows.
The percentage of Americans whose finances have been affected by the terrorist attack is slightly higher in the Northeast than the national average (34 percent), and slightly higher among Americans earning more than $75 thousand annually (also 34 percent).
“Clearly, the attack has some Americans worried about their financial well-being,” says Marvin Kaulkin, chairman, CollectionIndustry.com. “People 45 and older are more concerned than others, because they have significant debt obligations—and remember previous economic hard times. Younger people have yet to experience financial woes as adults.”
The recession also weighs on some Americans’ minds. According to the survey, 35 percent of Americans say their household finances have been affected by the recession. That number increases to 44 percent among Americans 45-54 years old, and to 40 percent among Americans 55-64 years old, according to the survey.
8 in 10 still prepared to meet debts
Despite September 11’s effect on household income, the survey shows that a vast majority of Americans expect to continue meeting their debt obligations in the normal way.
Eighty percent of Americans say they “will continue to pay debts as usual,” according to the survey. Only 6 percent expect “some difficulty paying debts due to the events of September 11,” and only 1 percent will be “unable to pay debts due to the events of September 11.”
Similar percentages pertain among Americans who anticipate financial troubles as a result of the recession. Six percent of Americans expect “some difficulty paying debts due to the recession,” and just 2 percent will be “unable to pay debts due to the recession.”
“Looking beyond September 11, an even greater number of citizens are worried about the recession’s effect on their finances,” says Kaulkin. “But the majority remains confident they'll meet their obligations. That’s good news for issuers of credit.”
The survey, commissioned by CollectionIndustry.com and conducted between October 19 and 21 by Market Facts, Inc., polled more than one thousand Americans. The findings have a margin of error of plus (+) or minus (-) three percent.
CollectionIndustry.com is affiliated with Kaulkin Ginsberg Company, the leading mergers and acquisition firm in the credit and debt-collection industry, with more than 80 completed transactions valued at nearly $2 billion.
COMPANIES FACE YEAR-END FINANCIAL DIRECTOR CRISIS
Over 10% of the UK's leading companies may find themselves without a financial director (FD) when facing their year-end, according to new research by Executives Online (www.executivesonline.co.uk) a dedicated interim management consultancy.
This 'nightmare scenario' is likely to confront over 2,100 top businesses in the UK and is a growing phenomenon. Companies today are 50% more likely to face this problem than in the '80s. As a result the demand for interim finance directors is set to double over the next four years.
The quicker turnaround in FDs is the reason for this trend. According to Executives Online, financial directors now typically stay in their post for 2.5 years, a dramatic fall from the 1980s when financial directors on average stayed with a company for four years. Added to this, companies are taking longer to find a suitable replacement for an outgoing FD - on average taking six months. This means that if a finance director resigns from October onwards their companies, (those with typical January-December reporting), may well reach the year-end without a suitable replacement.
In response, Executives Online has launched 'Fast-Track FD' - a new service through which it can supply, in days, handpicked interim finance directors and senior managers, with top-level experience, drawn from a wide range of industries. With several hundred FDs available, individuals or complete finance teams can be placed on assignment within companies, as a stopgap measure whilst a company replaces a finance team member, or for longer-term contracts.
Norrie Johnston, managing director of Executives Online, explains why companies are likely to need its new service: "It can take some time for a recruitment agency to put forward suitable candidates to replace a departing FD. Interviews then take a month. If none are right, the process must be repeated. Attempt any of this around Christmas and you lose another month because diaries are so full. When you finally find the right person, they will be locked in to at least a three-month termination period. A company whose FD resigns today may still be without a replacement in April."
Executive Online's research predicts that the market for interim managers will double, reaching £400million by 2005, and 20% of this spend will be on interim finance directors. To find out more about 'Fast-Track FD' contact Norrie Johnston on 01962 829705 or visit www.executivesonline.co.uk
DUN & BRADSTREET DECIDES WITH CONFIDENCE: CHANGES NAME TO D&B; COMPANY LAUNCHES NEW CORPORATE BRAND IMAGE AS PART OF ITS BLUEPRINT FOR GROWTH
Dun & Bradstreet has announced it will transition the company's name to D&B, its widely used and instantly recognizable company acronym. Along with this change, D&B launched a new corporate brand, which includes a new logo, tag line, visual identity and renamed product lines. The intent of the new brand, captured in the tagline "Decide With Confidence," is to show an intense focus on enabling customers to make better, more confident business decisions.
As part of the brand launch, the company's new logo prominently features the acronym D&B and retains the familiar vibrant blue color, honoring and building upon D&B's 160 year trusted heritage. A bold golden-yellow secondary color reinforces the company's attributes, particularly the illuminating qualities of insight and expertise, and will also be prominently featured in the new visual identity.
"The core of our Blueprint for Growth strategy is our strong, global brand. Our new brand is all about what we bring to our customers and their experience with D&B. We provide our customers with more than information. We bring the trust, expertise, insight and tools to help them make more confident business decisions," said Allan Loren, Chairman, Chief Executive and President of D&B. "The changes to our brand are a positive reaffirmation of our customer-centric focus and a declaration of our commitment to our customers' success."
D&B's Product Lines Tied To New Brand
D&B continues its leadership role in providing customers with the products and services needed to make confident business decisions. D&B has renamed its product lines to enable customers to quickly identify the right D&B solution to suit their decision-making needs and processes.
D&B's traditional and value added credit products and services will now be known as D&B Risk Management Solutions. D&B Risk Management Solutions help customers increase profitability by managing credit exposure and transaction risks.
D&B's marketing products and services will now be known as D&B Sales and Marketing Solutions. D&B Sales and Marketing Solutions help customers analyze markets, locate prospects and manage customer relationships. D&B's purchasing products and services will now be known as D&B Supplier Management Solutions. D&B Supplier Management Solutions help customers evaluate the effectiveness of their procurement strategy and help them to locate new and manage existing supplier relationships.
Drawing upon the above three core competencies, D&B has tailored its expertise to meet the changing needs of its customers. To do this, D&B has rebranded its industry and segment solutions which include: D&B E-Commerce Solutions, which help customers transact online with confidence by validating and authenticating trading partners.
D&B Small Business Solutions, which are designed and priced specifically for small businesses, and help customers to monitor business credit and find new prospects.
"We're focusing our entire company on our customers and their success. When they need to make a decision, D&B will be there to help them decide with confidence," added Loren.
COFACE UK WIDENS ITS CREDIT INSURANCE PRODUCT PORTFOLIO WITH NEW FINANCIAL CONTINGENCY TEAM
London, 31 October 2001. Leading credit insurance company, Coface UK, has recruited a new Financial Contingency underwriting team as part of its commitment to broaden its credit insurance product and services portfolio.
The Team will focus on developing new credit products and services for Coface UK's portfolio, including Specific Account Cover and Duty Deferment. The former will allow clients to protect themselves against specific risks, including contracts beyond the normal level of trade with a particular customer. Duty Deferment is primarily aimed at helping UK importers manage their cash flow more effectively by giving them 45 days grace before duty is payable to H M Customs. This allows time for the goods to go onto the market, while also protecting H M Customs against the risk of non-payment by the company in the event of its insolvency.
Phil Amlot has been appointed Risk Manager of the new team and will report to Gerald Dobeson, Coface UK's Senior Risk Manager. Phil has 12 years experience of the credit insurance sector and together with fellow team members, Iain Bird, MICM (Grad), Devia Bijkerk and Rachel Goulding, has a proven record in developing credit products for a diverse range of industry from banking and construction to property and travel.
Commenting on his appointment, Phil Amlot said, "I am delighted to have the opportunity to head a strong team in this new area at Coface UK. I have no doubt that we will be able to deliver a highly responsive level of service to our clients."
About Coface UK
Part of the Coface Group, the world leader in export credit insurance with over 78,000 clients in 99 countries, Coface UK specialises in flexible credit management services for British businesses, including domestic and export credit insurance, research into prospective buyers, credit information, customer monitoring and receivables management.
Coface UK's range of credit insurance products
comprehensive cover) and Top Trader (for key clients), both designed for UK companies with turnover of over #3 million. For SMEs, Managed Trader and Cashflow Trader provide cost-effective cover for domestic and export trading, with the latter offering a unique, fully integrated credit management solution which guarantees payment of invoices at 65 days from the due date. Other insurance related financial products include single risk cover, duty deferment guarantees and travel bonds.
As a member of the Coface Group, Coface UK clients benefit from access to three global networks, CreditAlliance, InfoAlliance and @rating, with information on 38 million companies worldwide.
For further information about Coface UK, please contact:
Suzanne Teo
T:+44 (0)20 7325 7548
Email: suzanne_teo@cofaceuk.com
Website: www.cofaceuk.com
UK EXPORTERS ENCOURAGED TO RETURN TO RUSSIA - WITH ECGD!
Health and education projects are Russia's priority
UK exporters received a welcome boost on the 31st October as the Minister for Trade and Investment Baroness Symons announced that ECGD is now able to offer significantly more support to companies selling capital goods and services to Russia.
The Export Credits Guarantee Department is now able to consider providing medium and long term cover for capital goods and infrastructure projects. The Russian Government has made health and education projects a priority.
This news coincided with a visit by Foreign Secretary Jack Straw to Moscow. The Foreign Secretary met the Minister for Foreign Affairs Igor Ivanov and informed him that ECGD is now able offer much more cover for Russia.
Recently, ECGD - which benefits the UK economy by helping exporters win overseas business by providing insurance against loss - had only been able to provide limited support because of the Russian economic crisis in August 1998.
ECGD is able to offer more support after it concluded its eagerly awaited market review on the country.
Minister for Trade and Investment Baroness Symons said:
"Following its market review, ECGD is now able to consider medium and long-term cover for projects in Russia.
"I look forward to seeing UK exporters take full advantage of this extended ECGD cover particularly on health and education projects which the Russians are making their priority."
The recent ECGD market review comes after a rapid growth in the Russian economy assisted by improvements in the terms of trade and tight monetary and fiscal policies over the last two years.
Before this announcement, ECGD was only able to provide limited support to UK exporters under its Structured Financing initiative. Structured Financing - previously known as "Good Projects in Difficult Markets" is a scheme designed to support projects in countries where cover is restricted. Applications for support have to demonstrate project viability, the potential to generate hard currency revenue (held offshore in an escrow account to minimise the currency transfer and host government interference risks), ideally have a majority private sector ownership and involve risk sharing with other commercial institutions. (Projects in Heavily Indebted Poor Countries and certain other of the world's poor countries will also need to satisfy productive expenditure criteria i.e. projects which provide economic and social benefits to the host country.)
ECGD, Britain's official export credit agency, benefits the UK economy by helping exporters of UK goods and services win business by providing export credit guarantees, insurance and reinsurance against loss.
One of ECGD's main functions- through its export credit guarantees - is to underwrite bank loans to enable overseas buyers to purchase capital and project related goods and services from the UK, and to insure the return on investments made by UK companies in overseas enterprises.
ECGD is a separate Government Department responsible to the Secretary of State for Trade and Industry.
INFORMATION COMMISSIONER LAUNCHES FREE ON-LINE SEMINARS
The Information Commissioner's Office is launching a series of FREE on-line seminars.
The four introductory seminars aid both individuals and organisations who hold personal information (data controllers) in understanding the Data Protection Act 1998.
Each seminar consists of a voice over recording accompanied by a power point presentation. The seminars can be downloaded from the Information Commissioner's website: www.dataprotection.gov.uk/seminars.htm
Elizabeth France, Information Commissioner said, "I am pleased to announce the launch of the long awaited on-line seminars. These seminars will be particularly useful for data protection officers. Further specialist seminars will be added to the programme over the coming months to build up a comprehensive training package for anyone who needs to understand and apply data protection law".
INTEGRATING CREDIT COLLECTIONS TO DELIVER COMPANYWIDE BENEFITS with I-many CMS (Collections Management System)
With a rising percentage of sales invoices "in dispute" and companies actively adopting strategies of slow payment in a recessionary business climate, the launch of I-many's next generation Collections Management System (CMS) will be music to the ears of companies needing to track and manage cash collection. I-many CMS is designed to maximise cash collection and lower a company's fixed overheads.
Through the integration of best-of-breed collections and dispute management systems, I-many CMS enables many companies, especially those with a national or International branch/distribution network, to operate a standardised, web-enabled, out-of-the-box solution that can be rapidly deployed and provide a very quick return on investment.
I-many International (formerly BCL Vision Ltd.) is now the global supplier of I-many CMS, the leading e-commerce based collections & dispute management software. I-many CMS is designed to integrate with leading ERP systems, like SAP, Sage and Oracle Financials, through generic gateways to maximise cash collection, reduce days sales outstanding (DSO) and improve customer service.
I-many CMS provides access for customers to their own account(s) using their web browser instead of the telephone to obtain copy documentation, send messages and obtain information relating to transactions, payments and disputes. CMS's web-based, multi-lingual, multi-currency product is the leading global solution available today for collections and dispute management.
This solution has recently helped global companies like Alcatel and United Technologies Carrier Corp. solve the challenges brought on by the growing need for effective cashflow, receivables and collections management. In order to improve their company's cash flow, Carrier created a "revenue process management'' program. With thousands of customer accounts managed by offices in 171 countries, Carrier needed a Web-based, multi-language, multi-currency program that could accelerate the collection and dispute processes. I-many CMS software was the first product to meet all those needs.
"We view the collections process as an operational concern, not simply a finance issue,'' said Alan Machuga, director of Carrier Business Enhancement and Shared Business Services group. "I-many's CMS software gives Carrier the opportunity to easily track invoices from the moment they are created to the time the cash is received. This means we can serve our customers better and enhance our analysis and forecasting capability.''
Mike Willstrop, CEO, I-many International reinforces these comments: "Any company that issues large volumes of sales invoices will benefit from I-many CMS. But, importantly, it is also a powerful platform for Global and European businesses wishing to implement global credit policies and take a significant step towards integrating the Credit & Collections function into the Enterprise, delivering strategic information on the profitability of different clients and distribution channels. I-many provides a one stop solution for companies looking to manage cashflow and trade relationships quickly and efficiently."
About I-many International
I-many International is a wholly owned subsidiary of I-many, Inc. I-many International was formed following the acquisition of BCL Vision, supplier of I-many CMS (formerly Sales2Cash), an e-commerce-based collections and dispute management software solution.
I-many CMS integrates with leading ERP, accounting and document management systems to; maximise cash collection, reduce days sales outstanding (DSO) and improve post-sale customer service. I-many CMS provides customers with access to their account using their Web browser to obtain copy documentation, help resolve open disputes and obtain timely information relating to their account, unpaid invoices and payments.
About I-many
I-many (NASDAQ: IMNY) is the leader in providing software and Internet-based contract management solutions and related professional services which enable businesses to manage complex trade relationships and facilitate business-to-business e-commerce. The company's software is used by 8 of the largest 10 healthcare manufacturers in the world and leading consumer goods companies. The company estimates that its solutions help manage more than $55 billion in contracted commerce per year. For more information, visit the company Web site at http://www.imany.com
TERRORIST ATTACKS IMPACT COLLECTION AGENCIES - USA
Contributed by Kaulkin Ginsberg Company at www.kaulkin.com
In recent weeks we conducted a survey of collection agency owners about the effects of the September 11 terrorist attacks on their business. Based on the response of 65 owners, the attacks seem to have hurt an already short collection month. At the request of clients, many agencies stopped collecting initially in all regions, and continue to curtail activity in the NY and DC regions. Owners also cited that the collectors’ personal reactions also impacted collection performance for a period of about a week. It appears that, for many agencies, revenue could be down as much as 30% for September, even for those that had been on track for a record month. A majority, however, categorized the September effects as “moderate”, expecting 4th quarter results to pick up, and long-term effects to be minimal.
We asked agency owners the following five questions:
To view the entire article and survey compilations please go to http://www.kaulkin.com/Bulletins/WTC%20Survey%20Article.pdf
ECGD BOOSTS KHAZAKSTAN TELECOMS
Telephone lines in Khazakstan will soon be putting more people in touch across the former Soviet Union state thanks to UK firm Telspec Europe Ltd winning a £1.4 million contract to supply up-to-the-minute telecoms technology, backed by the Export Credits Guarantee Department (ECGD).
Telspec Europe Ltd is a world market leader in the pair gains technology it will supply to the country's national telephone operator, Kazaktelecom. This equipment modifies single telephone lines to carry more channels - in the case of Khazaktelecom, twelve extra channels will be created for each line.
ECGD - which underwrites bank loans to enable overseas buyers to purchase British capital goods - is providing export credit guarantee support for a £1.2 million loan arranged by HSBC Project and Export Finance, which will fund the project.
The new equipment will help meet huge public demand for extra telephone lines in Khazakstan. Significant savings of up to 50% against laying new underground wires or telephone poles can then be passed on to Kazaktelecom customers.
Minister for Trade and Investment Baroness Symons said:
"Telspec is an excellent example of how British companies using British technology can achieve significant export success with the help of ECGD. British technology will help Khazakstan's communications infrastructure meet growing demand with minimal capital outlay.
ECGD backing has helped support a UK export business of around £20 million, safeguarding 350 jobs in the UK, including 150 jobs at Telspec's Perth manufacturing plant."
The additional telephone lines supplied will help further boost the country's economic and social development following independence from the former Soviet Union a decade ago.
Telspec Europe Ltd has supplied pair gains systems around the world, including Australia, South America, North Africa and the Middle East, as well as to British companies like BT. Telspec supports a programme of ongoing reinvestment into research and design into its product - on average around 15% per annum. For further information contact Marketing Manager Jeff May on: 01634 687 133.
Each telephone line comprises a 'pair' of twisted copper wires. The pair gains technology is lodged at the telephone exchange and also in a box located near users of the system. The pair of wires is then divided into a number of channels, multiplying the number of 'lines' which each pair of wires can support.
This is the first export credit guarantee ECGD has issued for the country on a corporate risk basis - that is, risks considered as being dependent on a company. Previous export credit guarantees have been issued on a sovereign risk basis - that is, risks considered as being dependent on the state itself. This reflects recent improvements in Khazakstan's economy. In the decade following independence from the former Soviet Union, Khazakstan has been developing its oil resources and in the last few years has enjoyed impressive economic growth, further aided by Russian recovery. Official figures recently issued by the state show GDP expanded by 9.8% last year.
MORTGAGE POSSESSION STATISTICS - THIRD QUARTER 2001
The Lord Chancellor's Department on the 30 October 2001 published figures for mortgage possession actions entered in the county courts of England and Wales for the third quarter of 2001.
Table 1 shows the number of mortgage possession actions entered for each year, by quarter, since 1995. During the third quarter of 2001 15,546 mortgage possession actions were entered and a total of 11,403 orders were made - 6,882 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 third quarter of 2001 the number of actions entered was just over 13% less than the third quarter of 2000. For the same period, figures show a decrease of nearly 21% in orders made (nearly 60% of orders made were suspended - compared to 61% in the third quarter of 2000).
The data provided in each of the tables relate to mortgage possession actions entered and orders made in county courts in England and Wales. Figures for suspended orders are also provided.
The data cover both local authority and private (e.g. banks and building societies) mortgages.
The 2000 and 2001 figures are provisional and therefore liable to revision to take account of any late amendments.
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.
Figures on properties being taken into possession are published twice a year by the Council of Mortgage Lenders. These figures may be obtained through the Council's Website address : www.cml.org.uk
Figures on mortgage possession actions are published on a quarterly basis. Publication date of the figures for the fourth quarter of 2001 will be 30 January 2002.
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 17 525 12 690
73 025 52 071
2001 1 18 168 12 001
2 16 696 12 159
3 15 546 11 403
1 Including suspended orders
R Revised since last publication
Statistics showing insolvencies in the third quarter 2001 were published on the 2 November by the Department of Trade and Industry.
COMPANY INSOLVENCIES
There were 3,649 company insolvencies in England and Wales in the third quarter of 2001 on a seasonally adjusted basis. This was a decrease of 4.1% on the previous quarter and a decrease of 2.4% on the same period a year ago.
1.1% of active companies became insolvent in the twelve months ended Q3 2001, the same as the previous quarter and the corresponding quarter in 2000.
INDIVIDUAL INSOLVENCIES
There were 7,368 individual insolvencies in England and Wales in the third quarter of 2001 on a seasonally adjusted basis. This was a decrease of 3.1% on the previous quarter and an increase of 2.2% on the same period a year ago.
Number of Insolvencies in England and Wales (seasonally adjusted)
Percentage change
2000 2000 2001 2001 2001 Q3 2001 on:
Q3 Q4 Q1 Q2r Q3p Q2 2001 Q3 2000
Companies 3,741 3,703 3,694 3,806 3,649 -4.1 % -2.4%
Individuals 7,212 7,239 7,433 7,605 7,368 -3.1 % 2.2%
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.
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.
A company or individual with debts that they are unable to pay as they fall due is said to be insolvent.
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).
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.
HONEYBEE PUBLICATIONS LIMITED and AWARENESS UK LIMITED
The Secretary of State for Trade and Industry has presented petitions in the High Court to wind-up Honeybee Publications Limited and Awareness UK Limited in the public interest.
The Stockport-based companies were involved in the publication of a drugs awareness booklet for distribution to schools.
The petitions were presented following investigations carried out by the Department's Companies Investigation Branch under section 447 of the Companies Act 1985 and are listed for hearing on 7 November 2001.
The registered office of both companies is The Lodge, Compstall Hall, Compstall, Stockport, Cheshire SK6 5HX. Honeybee Publications Limited was incorporated in February 2000 and Awareness UK Limited was incorporated in October 2000.
The petitions were presented under s124A of the Insolvency Act 1986.
The Secretary of State also applied to the High Court for the appointment of the Official Receiver as the provisional liquidator of Honeybee Publications Limited and Awareness UK Limited until the hearing of the petitions. The companies defended this application but withdrew just before the hearing on 25 October 2001 and agreed to it.
All public enquiries concerning the affairs of the two companies should be made to the Official Receiver at
The Insolvency Service
Public Interest Unit
PO Box 203
21 Bloomsbury Street
London WC1B 3SS
*** FORTHCOMING CREDITORS MEETINGS ***
For detailed information on the British Isles insolvency's (liquidation's, receiverships, administrations, dividends, creditors) please visit http://www.insolvency.com/cgi-bin/gazette/liq/nots.pl
TW LW TW LW
USA 1.45 1.42 Canada 2.28 2.25
Austria 22.18 22.03 Portugal 323.28 320.99
France 10.57 10.50 Belgium 65.04 64.58
Finland 9.58 9.50 Italy 3122.20 3100.17
Germany 3.15 3.13 Sweden 15.27 15.23
Holland 3.55 3.52 Switzerland 2.37 2.36
Spain 268.29 266.40 Ireland 1.27 1.26
Australia 2.87 2.79 Denmark 11.99 11.90
Hong Kong 11.33 11.12 Euro 1.61 1.60
Africa Com 13.54 13.63 Saudi Arabia 5.44 5.34
India 69.72 68.47 Malaysia 5.52 5.41
Singapore 2.66 2.60 Norway 12.84 12.73
Japan 177.56 174.96
TW This week LW Last week.
Jonathan Browning Managing Director of Jaguar and James Goodwin CE of United Airlines have also parted with their respective companies.
Sir Peter Bonfield CE of British Telecom will be leaving the company in January 2002 much earlier than originally planned.
Enron the world's biggest energy trading company is reported to be having mounting financial problems.
Lockheed Martin has secured the largest ever contract handed out by the Pentagon.
BAA, the airport group, announced pre-tax profits of 150 million pounds, after exceptional charge, on turnover of 1,125 million, for the six months ending 30th September 2001. Earnings per share stand at 4.5p.
Easy-Jet announced pre-tax profits of 40.1 million pounds, after exceptional charge, on turnover of 356.9 million, for the year ending 30th September 2001. Earnings per share stand at 15.2p in increased capital.
Ebookers announced pre-tax losses of 19.8 million pounds, after exceptional charge, on turnover of 114.3 million, for the nine months ending 30th September 2001.
Inventive Leisure announced pre-tax profits of 2.22 million, on turnover of 18.7 million, for the year ending 30th June 2001. Earnings per share stand at 9p, on increased capital.
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:Completed acquisition by SIG PLC of Capco Holdings Limited
Completed acquisition by Albion Chemical Holdings Limited of Hays Chemicals Limited
Alexander also announces next phase of UK online campaign
E-commerce minister, Douglas Alexander, called on the technology and internet community to work with Government to open up new ways to encourage participation in the democratic process.
He said they could play a leading role in opening up new democratic channels, including:
Alexander also outlined the next phase of the UK online campaign that aims to enable everyone to make the most of the internet and make the UK a leader in the knowledge economy. The next phase of the campaign is designed to raise awareness and understanding of UK online, and will involve a national TV advertising campaign and provide an integrated contact centre.
In a speech to the Democracy in the Information Age Conference Douglas Alexander said:
"Getting people back into the democratic process is a huge challenge. In the UK we have already embarked upon an ambitious programme to tackle this. New technology will help to empower people, encouraging them into and, strengthening the democratic process. I believe it is time to put e-democracy on the information age agenda and, for governments to set out what they mean by e-democracy and how they intend to use the power of technology to strengthen democracy.
"We must open up new democratic channels, through which government and representatives can relate to citizens. We must make citizens feel democratically empowered beyond their few seconds in the polling booth.
"UK online is a vital part of our drive to become a leading knowledge economy, and is a key part of the process of opening up new democratic channels."
In order to make internet technology an effective tool for e-democracy, available to all, Alexander laid out six basic principles for success:
The second phase of UK online campaign will include:
The Office of the e-Envoy (OeE) and Department of Transport, Local Government and the Regions (DTLR) take the lead in developing and implementing e-democracy within central government. The OeE will also provide guidelines, promote best practice, monitor progress and lead on the development of internationally agreed technical standards required to support e-voting. A number of central government departments are involved in developing e-democracy, including the Department of Trade and Industry, Cabinet Office, the Scotland, Northern Ireland and Wales Offices, Department for Education and Skills and the Improvement and Development Agency.
Tuesday 6 November ICM Credit Scotland 2001 The National Stadium, Hampden Park, Glasgow, G42 9BA Cost £50.00 including Buffet Luncheon and Refreshments E-mail carol_myers@hotmail.com Monday 12 November Wessex Branch of the ICM European Credit Checking - Speaker/Sponsor ICC Information Ltd Venue - Royal Southampton Yacht Club 1 Channel Way, Ocean Village, Southampton SO14 3QF Time : 7.00 pm for 7.30 pm Refreshments provided Monday 12th November Stoke on Trent Branch of the ICM "Credit Management Qualifications: the UK and Beyond" Presented By Russell Kennard, MBA AIMC, founder-owner of Kennard & Co For details please contact the event organiser: Catriona Colerick, MICM (Grad.) on Tel. 01782 28 2430 Thursday 22 November Sussex & Surrey Branch of the ICM Factoring/Invoice Discounting/Asset Finance Speaker: To be advised Venue - HSBC, Farncombe Road, Worthing Time: 7.00 for 7.30 p.m. Sponsored by HSBC 4-6 December Online Information 2001 Olympia Grand Hall, London Monday 10 December Wessex Branch of the ICM Quiz Night - Sponsor Virtual Mailroom Ltd Venue - Royal Southampton Yacht Club 1 Channel Way, Ocean Village, Southampton SO14 3QF Time : 7.00 pm for 7.30 pm Refreshments provided Monday 14th to Thursday 17th January 2002 ICM Examinations Thursday 24 January 2002 Sussex & Surrey Branch of the ICM Annual General Meeting Followed by Dinner. Speaker: To be advised Venue - The Imperial Hotel, Hove Time: 7.00 for 7.30 p.m. Friday 22 February 2002 Debt Sale & Purchase Credit Today, Savoy Hotel, London The second annual debt sale and purchase conference chaired by Rob Levick. For details e-mail carleen@credittoday.co.uk Wednesday 13 March 2002 ICM National Conference and Exhibition Heritage Motor Centre, Gaydon near Warwick For full details tel 01780-722907 or e-mail training@icm.org.uk 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
Alternatively you may use the email interface. email creditman-request@mailing-list.cyberstrider.net with the word Help in the subject line for details.
Business Credit Management UK: John Arnold jarnold@creditman.co.uk
Business Credit News UK: Pat Williams pwilliams@creditman.co.uk