Editor: Pat Williams. E-mail pwilliams@creditman.co.uk
John Arnold. E-mail jarnold@creditman.co.uk
Site: Business Credit Management UK
URL: http://www.creditman.co.uk
Issue: Vol 4 Issue 33
Dated: 10 September 2000
Welcome to the Business Credit News UK. We are pleased to be back with you after our summer break.
In this weeks edition you will find the following topics.
UKINTEREST RATES
LOW INFLATION JUSTIFIES INTEREST RATE FREEZE, SAY CHAMBERS
Reacting to Thursday’s decision by the Bank of England’s Monetary Policy Committee to hold interest rates at six per cent, Dr Ian Peters, Deputy Director General of the British Chambers of Commerce (BCC) said:
‘’Low inflation and steady growth justify the Bank’s interest rate freeze. The evidence suggests that the feared consumer boom is fading. Recent cooling in average earnings and the housing market is likely to reinforce the downward pressure on prices from tough competition.
‘’The recent fall in sterling against the dollar has been offset by the continued weakness of the euro. The competitive disadvantage from the strong pound continues to squeeze profit margins and investment among UK manufacturers.’’
CBI PRAISES INTEREST RATE DECISION
The Confederation of British Industry praised the Monetary Policy Committee's (MPC) decision to leave interest rates on hold.
Kate Barker, CBI Chief Economist, said:
"This is the right decision and we hope the Bank will now give a clear signal that interest rates have peaked - unless there is a sharp fall in the value of sterling.
"The pace of consumer spending may have slowed over the summer, with retail sales weakening and the housing market softening.
"Cost pressures are picking up but most companies cannot pass these on to their customers either in the UK or abroad. This means inflation is set to remain on target."
BUSINESS START-UPS AND CLOSURES: VAT REGISTRATIONS AND DE-REGISTRATIONS IN 1999
Estimates of the number of enterprises registering and de-registering for VAT in 1999, and the stock of registered businesses at the start of 2000, are published today (1 September) by the Department of Trade and Industry. They are the best official guide to the pattern of business start-ups and closures across the UK and in each industry.
There were 178,500 registrations in the UK in 1999. There were 172,000 de-registrations in 1999, or one in ten of the businesses registered at the start of the year. There was a net gain of 6,500 registered enterprises during the year, increasing the stock of VAT registered businesses to 1.66 million at the start of 2000.
In 1999 there were 38 registrations for every 10,000 people age 16 or over in the UK. There were 37 de-registrations for every 10,000 people age 16 or over.
The number of registrations fell by 7,800 (or 4%) between 1998 and 1999. The number of de-registrations rose by 16,000 (or 10.3%). The net gain of 6,500 enterprises during 1999 shows a rise in the total business stock for the fourth consecutive year.
NEW 'LOCAL' TAX COULD COST BUSINESS BILLIONS, WARN CHAMBERS
Government proposals to allow local authorities to levy supplementary rates bills on local firms could cost businesses in England an additional £2.75 billion in the next 5 years, and more than £1bn each year thereafter, the British Chambers of Commerce warned on the 25 August 2000.
The proposals, expected in the forthcoming Local Government Finance Green Paper, will enable local authorities to introduce an additional tax of up to five per cent of the national business rate, with no right of veto for business. Local authorities would have the power to phase the tax in at one per cent a year, over the next five years.
While local authorities will have to agree with their business community how the money is to be used, the obligation to do so follows only after the tax has been imposed. Should no agreement be reached, the extra revenues raised will enter the existing national business rate pool, over which business has no influence.
Chris Humphries, the BCC’s Director General, wrote recently in protest to the Prime Minister, arguing that local business communities should be given the right to block the levying of a local rate where they are not satisfied with its purpose, and disputing government claims that their new proposals could help local authorities become more accountable to business for the services they provide.
Chris Humphries said:
“We support the government’s wish to see local authorities and their business communities working together because we believe local communities gain. However, increasing the tax burden on business will help no-one.
“At present the government’s proposals put the cart before the horse, by giving local authorities the power to impose an additional levy without first agreeing with business the purpose for which it will be used. Unless businesses have the right to refuse a local rate where they do not think it adds value, these proposals will be seen for what they are – yet another new tax on business.’’
The BCC supports the existing principle of Business Improvement Districts, where specific projects are agreed upon with the local business community before extra funds are raised, and where a clear cut-off date for the local levy is set. The BCC believes this could be extended as a justifiable and clearly accountable alternative to the proposals for a new supplementary rate.
To ensure that local businesses receive better value from the £16.2bn that is currently raised from business rates the BCC is also calling for business representation on Council scrutiny committees.
Chris Humphries said:
“Businesses are working with their local authorities up and down the country to bring greater prosperity to their local communities. This works best where business is treated as an equal partner, not as a cash cow.”
ADVANCE ENERGY STATISTICS
Provisional statistics showing energy production and consumption and petroleum product prices in the three months to July 2000 were published on the 6 September 2000 by the Department of Trade and Industry. Some figures for typical retail prices of motor spirit and diesel fuel in August are also given.
Production of indigenous primary fuels in the three months to July 2000, at 67.3 million tonnes of oil equivalent, was 1.0 per cent lower than in the corresponding period a year ago. Production of coal and petroleum fell by 12.9 per cent and 7.3 per cent respectively, whilst production of gas rose by 19.1 per cent. Production of nuclear electricity fell by 15.0 per cent because of the closure of one station owned by BNFL Magnox and maintenance at others, and because of statutory and refuelling outages at British Energy stations.
Total inland consumption of primary fuels, which includes deliveries into consumption, during the three months to July 2000, at 49.3 million tonnes of oil equivalent, was 1.9 per cent higher than that recorded for the same period a year ago. Consumption of gas rose by 10.4 per cent, whilst consumption of coal, oil and primary electricity fell by 0.1 per cent, 1.4 per cent and 13.9 per cent respectively. Coal consumption fell only marginally because coal was used in power stations to make up for a shortfall in nuclear electricity. Gas demand increased due to increased exports and colder weather than in 1999.
Total use of petroleum, including non-energy use, in the period May to July 2000 was 18.9 million tonnes, 3.0 per cent lower than a year earlier. Energy use was similar to last year (up 0.2 per cent) while non-energy use decreased by 14.9 per cent. Total motor spirit deliveries decreased by 3.8 per cent, with deliveries of unleaded petrol 3.2 per cent higher. In the period, unleaded petrol deliveries (excluding Lead Replacement Petrol (LRP)) represented 92.5 per cent of total motor spirit deliveries, compared with 86.2 per cent a year earlier. Derv fuel deliveries increased by 2.7 per cent, while deliveries of other gas diesel oils, primarily used for heating purposes, rose by 1.0 per cent. Fuel oil deliveries fell by 29.1 per cent, continuing its decline as a source of energy for industry and electricity generation. Deliveries of other products increased by 7.6 per cent with increased deliveries of aviation turbine fuel (up 5.6 per cent), burning oil (up 15.3 per cent) and liquefied petroleum gases (up 13.2 per cent).
The prices of motor spirits and diesel have fallen in the month to mid August following a fall in the price of crude oil in July. In terms of prices at the pump, the prices of premium unleaded, lead replacement petrol (LRP) and diesel have fallen by 4.3, 2.8 and 2.3 pence per litre respectively, when compared to the mid July prices.
In the year to mid August 2000, rises of 7.5, 6.0 and 5.6 pence per litre were seen for premium unleaded, LRP and diesel respectively - these represent increases of around 7 to 10 per cent in the price of these fuels.
In the month to mid-July the price of super unleaded rose slightly by 0.1 pence per litre and was around 7.2 per cent higher than a year ago; an actual increase of 6.1 pence per litre.
BRC-KPMG AUGUST RETAIL SALES MONITOR
Manufacturing, Retail and Distribution
Slowest Growth this Year.
The British Retail Consortium-KPMG Sales Monitor has recorded its lowest figures since November 1999, with the exception of the March results, which were distorted by the timing of Easter. It is also the first time this year that (non-Easter affected) like-for-like sales growth has slipped below 2%. Like-for-like sales increased by 1.7% in the year to August, compared with 2.2% increase year-on-year in July. The rate of growth in total sales slowed from 4.7% in July to 4.3% in August.
The three-month trend rates of growth continued to slow from 5.2% to 4.8% for total sales, and from 2.7% to 2.3% for like-for-like sales.
These were weak growth figures from a low base, as August 1999 was also a disappointing month. The main problems reported were lack of footfall and severe price deflation. Internet shopping and factory outlets were two of the better performing formats during August.
Bridget Rosewell, Chief Economic Adviser to BRC, comments:-
“We will need to see a strong recovery in retail sales in the autumn if the renewed momentum in sales which started in 1999 is not to peter out. While this month’s figures may be a blip, a further month of weak results would suggest that growth rates have peaked at well below the performance of the previous high point in 1997. The economy may well be slowing.”
Bill Moyes, Director General of BRC, comments:-
“Overall this was a disappointing month. Customers appeared to be thin on the ground, and those who were still shopping had to be tempted by promotions and the continuation of summer sales. Retailers will be hoping that customers return from holiday ready to spend.”
The August Monitor covers four weeks from 30 July to 26 August and provides the most up-to-date reflection of recent retail performance.
Contributed by Stephen Cowan, Yuill & Kyle Debt Recovery Lawyers, Scotland
E-mail scowan@yuill-kyle.co.uk
A furious row has erupted within city of Glasgow Council and Tommy Sheridan. Sheridan, a Member of the Scottish Parliament. Also a city councilor he introduced the Bill to the Parliament that has now accepted the principle warrant sales should be banned. Whilst the Scottish Executive has agreed to this, the law will remain intact until such time as an effective, but humane, alternative is found.
However Sheridan wants City of Glasgow Council to confirm they will instruct no further poindings or sales in respect of monies due to them by April of next year.
It has been reported in The Herald this morning that Glasgow's ruling Labour administration want an effective alternative system to be in place before they agree to the ban. The council leader is reported to have said "Being a legislator is not just about doing easy things like saying let's get rid of the big, bad warrant sales. Everyone can unite around that. The hard grind involves coming up with a system of debt collection sanctions that don't over-impinge on their efforts with interest."
He further argued if the council announced a date at which warrant sales ceased to be used as a sanction for debt collection-and the Scottish Parliament has not by that date enacted a new type of debt collection sanction-then council taxpayers would have no incentive to pay because no means of taking action against defaulters would be available. That could result in substantial cuts in budgets or cuts in services that could impact on vulnerable people.
In addition the council leader said, "The issue here is not the poor. Our difficulties with council tax collection are with better off people who can pay but won't pay…We are simply saying that as soon as the Scottish Parliament passes legislation that makes it clear what the sanctions will be and when they will be enforced then we will announce a date when we can get rid of warrant sales".
CHAMBERS PUT EXPORT DOCUMENTATION ONLINE
The British Chambers of Commerce on the 1st September launched a new web-based service enabling UK exporters to reduce the application process for European Community (EC) Certificates of Origin from around three days to just a matter of hours.
‘e-Cert’ is a free, fast and secure service to help businesses automate export procedures, and is launched as part of the Chambers’ drive to help UK business get the best from the web.
Developed in partnership with Global Trade Partner Ltd, e-cert is one of the first applications available using ‘ChamberSign’, the new digital certificate provided by the Chambers and their technology partners ViaCode, the digital security service from Royal Mail, which authenticates the identity of e-commerce traders and guarantees complete privacy for any transactions over the Internet.
EC Certificates of Origin cover goods being exported from the UK and are essential for exporting companies to meet customs requirements in the importing state, and to comply with banking and other official and commercial issues.
In the UK, the officially designated authorities for the issue of EC Certificates of Origin are Chambers of Commerce. Each year the Chambers issue over 350,000 Certificates of Origin to UK exporters, and e-Cert will allow businesses to apply on-line.
Maria McCaffery, Director of the International Trade Division of the British Chambers of Commerce said:
"With margins and markets increasingly tight, UK exporters can look to the internet for time and cost savings. ‘e-Cert’ is just one of a range of applications we hope to introduce, using ChamberSign technology, to help our exporters improve their business competitiveness.
"By encouraging exporting companies to use e-cert and ChamberSign now, we hope to give them a headstart in engaging in international trade online. We are pressing the authorities in Europe to allow UK Chambers to deliver online authorisation of Certificates and we are working to encourage overseas customs and customers to accept electronic documentation."
Ms Kath Hardaker, Shipping Officer at Pittards plc, a world-class leather manufacturer and one of the first companies to use the new e-Cert process said:
"We airfreight our goods and time is of the essence – any delays could result in considerable storage charges at the destination. We are now able to despatch goods on the same day that they are called off production, saving us at least 2 days. ‘e-cert’ has given flexibility, speed and efficiency"
For more information companies should contact their local BCC Chamber of Commerce or visit the website: www.britishchambers.org.uk/exportzone
Global Trade Partner Ltd (GTP) has 15 years experience in providing export administration solutions. GTP has over 150 customers engaged in everything from chemicals, motorcars and machine tools to cereals and tobacco products. Many are household names. GTP clients include: United Distillers and Vintners plc, Glaxo Wellcome, Britvic International, Black and Decker, Hattersley Newman Hender, Avery Berkel, Glenmorangie and many others. GTP has provided solutions integrated to SAP R/3, Oracle, Baan, QAD MFG/PRO, SSA BPCS, EFACS Software, IBS ASW, AremisSoft MTMS, Glovia and others. GTP may be contacted on +44 (0)1749 345007 or alternatively visit the website www.gtp.co.uk
The BCC is working with Inland Revenue, Customs and Excise and others to apply e-commerce technology effectively to enable secure transfer of VAT, self assessment and PAYE returns, as well as exporters' Certificates of Origin The BCC’s exportzone website provides firms with online information and support on everything from grants and market visits to export procedures and training.
In 1998/9 Accredited Chambers took more than 3000 UK businesses on over 230 trade missions and trade fairs across the world, winning over £370m of business overseas.
ChamberSign certificates are available from any BCC Approved or Accredited Chamber of Commerce at £50 per annum. By enabling companies to receive the government’s new £50 discount for electronic VAT returns, the certificates are effectively free. More on www.chambersign.co.uk
The Secretary of State for Trade and Industry has presented a petition in the High Court to wind up in the public interest, Step Management Services Limited ("Step") and Timeplan Projects Limited ("Timeplan") following enquiries under Section 447 of the Companies Act 1985 (as amended).
On the application of the Secretary of State the Court appointed the Official Receiver as provisional liquidator of both companies on 17 August 2000 pending the hearing of the petition on 4 October 2000.
Step and Timeplan traded in the promotion of a holiday club owned by an associated company (the Global Discovery Club) by cold-calling members of the public and offering "free" holidays in exchange for attendance at a sales promotion.
The UK registered office of both companies is Global House, 260 Manchester Road, Worsley, Manchester, M28 3SQ. Step trades from that address. Timeplan previously traded from that address but now trades from Suite C, Riverview House, Friarton Rd, Perth, Scotland, PH2 8DF.
The petitions were presented under S 124A of the Insolvency Act 1986.
All public enquiries concerning the company should be made to:
The Official Receiver
21 Bloomsbury Street
London WC1B 3SS
*** FORTHCOMING CREDITORS MEETINGS ***
Contributed byhttp://www.insolvency.co.uk
For more detailed information and ALL the British Isles insolvency's (liquidation's, receiverships, administrations, dividends, creditors) please visit http://www.insolvency.co.uk
From 11/09/2000 to 19/09/2000 Number of Creditor meetings : 157 Section Company Time Venue 138 Scotland - Interim Liquidator calling Creditors Meeting 11/09/2000 B I P J (Properties) Ltd 11.00 am Hamilton Chemikil Preservation Ltd 02.30 pm Hamilton Environmental Install (Scotland) Ltd 11.00 am Glasgow Milroy Fabrications Ltd 10.30 am Glasgow 12/09/2000 Fish Machinery International Ltd 11.00 am Aberdeen Flowers by Arrangement Ltd 11.00 am Glasgow 15/09/2000 Eastgale (Garments) Ltd 03.00 pm Glasgow Enhance Home Improvements Ltd 12.00 pm Glasgow Fin Mac Engineering Ltd 02.00 pm Glasgow 23 Administrator Calling a meeting of Creditors 11/09/2000 United Management Ltd 03.00 pm London 12/09/2000 Axmore Ltd 11.00 am Manchester Blakes Car Rentals Ltd 10.30 am London 13/09/2000 Optchannel Ltd 12.00 pm Manchester 15/09/2000 W Karp & Sons (Manufacturing) Ltd 10.30 am Liverpool 48 Receiver calling unsecured Creditors Meeting 11/09/2000 A E Bartholomew & Co Ltd 12.00 pm London 14/09/2000 Comsign Ltd 02.00 pm Manchester 15/09/2000 Data Archiving Co Ltd - The 03.00 pm Chatham 18/09/2000 Wyndham Engineering (Site Div) Ltd 10.30 am Cardiff Wyndham Engineering Ltd 10.30 am Cardiff 19/09/2000 Accident Courtesy Cars Ltd 12.00 pm London Accident Support Unit Ltd 12.00 pm London Collide A Line Ltd 12.00 pm London Collision Replacement Cars Ltd 12.00 pm London Crash Care (UK) Ltd 12.00 pm London Crash Replacement Cars Ltd 12.00 pm London Western Help Hire Ltd 12.00 pm London 67 Scotland - Receiver calling Meeting of unsecured Creditors 15/09/2000 DIFSL Re-Organisation Ltd 12.00 pm Glasgow 18/09/2000 Bruce Clark (Scotland) Ltd 03.00 pm Edinburgh 95 Members converting to Creditors Voluntary Liquidation 11/09/2000 Tudor Holdings (Care Properties) Ltd 11.00 am Birmingham 12/09/2000 H Plotnek (Developments) Ltd 11.00 am Birmingham 14/09/2000 Calthorpe McKenzie Ltd 10.30 am Solihull Wilson Purves Ltd 02.15 pm Dorking 19/09/2000 Milford Plastics Ltd 12.00 pm Basingstoke Rainford Engineering Ltd 01.00 pm Basingstoke S D L Sales Ltd 11.00 am Basingstoke 98 Creditors Voluntary Liquidations 11/09/2000 A J Autos Ltd 10.30 am Preston Apex Access Sales Ltd 01.45 pm Nottingham Bancroft Precision Ltd 11.00 am London Barrett Formwork Ltd 11.00 am London Channelvox Ltd 10.00 am Kingston-u-Tham Compass Express Couriers Ltd 11.30 am London Coulsdon Millennium Concert Ltd 02.30 pm Croydon D & P G Ames Ltd 10.00 am Chester Datavalley Support Ltd 11.30 am London Gnoll Nursing Homes Ltd 11.00 am Neath Grass Pride Associates Ltd 11.00 am London Imperks Script Ltd 12.00 pm London Kerrygram Data Ltd 03.00 pm Reading Leaning Tower of Pizza Ltd - The 11.30 am Bromsgrove Lewis Plant & Civil Engineering Ltd 10.30 am Liverpool Masterpack DSK Ltd 03.30 pm London Newsworld Publishing Ltd 12.00 pm London Northern Earthmover Tyre Special Ltd 12.00 pm Stockport Parkers (UK) Ltd 10.30 am Brighton Pullman Refrigeration Sales Ltd 11.45 am Manchester Raymond Access Ltd 11.30 am Nottingham Ron Jones (Burton-upon-Trent) Ltd 10.00 am Derby Sheffield Insurance Services Ltd 11.00 am Sheffield South Devon Shopfitting Services Ltd 11.00 am Newton Abbot Velvetex Ltd 11.30 am Leicester Worklink Ltd 02.00 pm London 12/09/2000 Apollo Handling Ltd 10.00 am Newcastle-u-Tyn Apothek Media Ltd 12.00 pm London Artswift Ltd 12.00 pm London B & G Wholesale Carpets Ltd 11.30 am Tadcaster Brighton Clothing Co Ltd 02.00 pm Lewes Creative Thinking Ltd 11.00 am Sheffield Design Studio (Kitchens & Bedrooms) Lt 11.00 am Lewes E E G Engineering Ltd 11.00 am London F R Gittins & Sons Ltd 03.00 pm London Fresh Approach Ltd 11.00 am Weybridge G Henshaw Roofing Services Ltd 02.30 pm Eastbourne Green Willow Software Ltd 01.00 pm London Gwynedd Distribution Services Ltd 03.00 pm Glazebrook Harris Contracting Services Ltd 10.00 am Birmingham Hester Thomson & Co Ltd 11.30 am London Heyside Packaging Ltd 12.00 pm Manchester Kent Fabrications Ltd 11.30 am Chatham Luxrad Ltd 10.15 am Kingston-u-Tham Simfo Ltd 11.00 am London Sterlings (Accountancy Services) Ltd 11.00 am Birmingham Storewell Storage Systems Ltd 12.00 pm London 13/09/2000 Alex Clothing Ltd 10.30 am London Amhill Ltd 11.00 am Sheffield Canisa Ltd 04.00 pm London Favoriet Menswear Ltd 12.00 pm London Grange Aluminium Ltd 11.00 am Reading Grovefact Ltd 10.30 am Nottingham H Adey & Sons Ltd 12.00 pm Leicester Home Style Care Homes Ltd 10.30 am Manchester Independ Immigration Support Agency Lt 11.00 am Birmingham Inter Events Ltd 11.30 am Leeds Inter Ltd 11.15 am Leeds J & L Becker Ltd 12.00 pm London Mitre Cement Ltd 10.30 am Chelmsford Ravenstone Ltd 10.15 am Weybridge Strand Reproductions Ltd 10.15 am Bury Taurus Furnitures Frames Ltd 12.00 pm Cardiff Web Shack Ltd - The 12.00 pm London Weevsjan Clothing Ltd 11.00 am London 14/09/2000 A G Petzetakis (UK) Ltd 11.00 am Alresford Aldershot Manufacturing Ltd 11.30 am London Ardale Computer Services & Supply Ltd 11.30 am Liverpool Artemis IT Solutions Ltd 11.00 am Gloucester Asteroid Storage Systems Ltd 11.30 am London Barram Ltd 11.30 am London Brightdesign Ltd 11.30 am London Daconair Ltd 11.00 am London Elms Building & Civil Engineering Ltd 11.00 am Gosforth Glentex Litho Ltd 12.00 pm London H B Insulations (Asbestos) Ltd 10.30 am Nottingham Jackie Rose Leisure Ltd 02.00 pm London Long Sutton Logistics Ltd 12.00 pm London Oliver Machinery Co Ltd - The 11.30 am Manchester P M Gate Ltd 11.00 am Liverpool PR Paper Services Ltd 10.30 am London Pylon Press Ltd 03.00 pm London Stockson Ltd 11.30 am Bristol Synchro Video Services Ltd 10.30 am London Team Valley Leisure Club Ltd 12.30 pm Sunderland Topnotch Textiles Ltd 12.00 pm Walsall Transit Express (GY) Ltd 11.00 am Grimsby Worldunit Ltd 11.00 am Worthing 15/09/2000 Aaron Extensions Ltd 12.15 pm Woodford Green Avlona Ltd 12.00 pm London Beaymontcrest Ltd 10.15 am Warwick Chedcorp Ltd 03.00 pm London Davenport Indust Build Maintenance Ltd 03.00 pm Harrow Emel Printing Co Ltd 11.00 am Birmingham Hollytree Designs Ltd 12.30 pm Liverpool Insomnia Music Ltd 03.30 pm Lutterworth Nexus Ltd 11.30 am Milton Keynes Nexus Technology Ltd 12.30 pm Milton Keynes Paycharm Ltd 02.00 pm London Print Appeal Ltd 11.30 am Mackworth R J C Data Solutions Ltd 11.00 am London Servecentre Ltd 02.00 pm London Sino Trading Co Ltd 11.30 am Liverpool Synopsys Ltd 10.30 am London Telecom UK Phonecard Ltd 11.45 am London Thomson Manufacturing Co Ltd 12.00 pm Chester Windmill Scaffolding Ltd 11.00 am Grimsby 18/09/2000 Bendminster Ltd 10.30 am London Cumberland Display Solutions Ltd 10.30 am Billericay Data & Virtual Environments Ltd 11.30 am Manchester Earlestown Recruitment Ltd 10.30 am Liverpool Jasmine-Louise Ltd 03.00 pm London Lion Heart Catering Ltd 03.45 pm London Manor Glass Systems Ltd 03.00 pm Swansea Memorymakers UK Ltd 11.00 am Glasgow Power & Dta Installations Ltd 11.30 am Southampton R M Underwriting Ltd 11.30 am Watford 19/09/2000 Bearkley Homes Ltd 11.00 am Plymouth Charnwood Loft Conversions Ltd 11.00 am Leicester EBA Graphic & Printing Ltd 10.30 am Guildford J & J Groundworks Ltd 10.00 am Edinburgh KW Electronics Ltd 12.00 pm St Asaph
We are sorry but this service is not available this week. Normal service should be resumed next week.
Corus announced pre-tax losses of 165 million pounds, on turnover of 7,298 million, for the nine months ending 30th June 2000. Corus was formed last year in a merger between British Steel and Hoogovens of the Netherlands.
Sema, the computer services group, announced pre-tax profits of 42.2 million pounds, on turnover of 720 million, for the six months ending 30th June 2000. Earnings per share stand at 42.2p.
Taylor Woodrow announced pre-tax profits of 89.4 million pounds, after exceptional credit, for the six months ending 30th June 2000. Earnings per share stand at 16.4p, on reduced capital.
George Wimpey, the housebuilders, announced pre-tax profits of 48 million pounds, on turnover of 694.1 million, for the six months ending 30th June 2000. Earnings per share stand at 9.8p
MERGER CLEARANCE
The Secretary of State for Trade and Industry has decided, on the information at present before him, and in accordance with the recommendation of the Director General of Fair Trading, not to refer the following merger to the Monopolies and Mergers Commission under the provisions of the Fair Trading Act 1973:Acquisition by Maiden Outdoor Advertising Limited of Tower Advertising Ltd
Acquisition by HCA of St Martin's Healthcare Limited
Proposed acquisition by Lincoln Electric Holdings Inc of Charter Plc
Acquisition by Misys Plc, through its subsidiary ACT Medisys Ltd, of CDS Group Ltd
Proposed acquisition by Assa Abloy AB of the locks division of Williams Plc.
Proposed acquisition by Arch Chemicals Holdings UK Limited of Hickson International Plc
Proposed acquisition by Centrica Plc of Direct Energy Marketing Limited and Assets of NGW Natural Gas Wholesalers Inc
Completed merger between Capital Radio Plc and Beat 106 Limited
Completed acquisition by Haslemere Estates Plc of Scottish Metropolitan Property Plc
Proposed acquisition by Publicis SA and Saatchi and Saatchi Plc
Proposed acquisition by Weigh-Tronix UK Ltd of the Avery Berkel Group of Companies
Completed acquisition by Scottish Widows Plc of assets of Guardian Assurance Plc namely Aegon Property Portfolio
Proposed acquisition by BPB Plc of Celotex Corporation
HEWITT REFERS PROPOSED ACQUISITION OF BLACKPOOL NOW BY GANNETT UK LIMITED
Patricia Hewitt, Minister for Small Business and e-commerce, has referred to the Competition Commission ("CC") the proposed acquisition by Gannett UK Ltd ("Gannett") of Regional Independent Media Holdings Limited's ("RIM") newspaper title Blackpool Now, together with related assets.
The reference is intended to ensure that Gannett's proposed acquisition of this new title is considered alongside its proposed acquisition of RIM's other titles, which was referred to the CC on 13 July.
The reference in no way prejudges the public issues concerned; it is for the CC to investigate and report its findings by 27 September 2000.
The Fair Trading Act 1973 (sections 57-62) provides that the transfer of a newspaper or newspaper assets to a newspaper proprietor whose newspapers, including the newspapers to be transferred, have an average paid-for circulation per day of publication of 500,000 or more copies, shall be unlawful and void unless the transfer is made with the written consent of the Secretary of State.
On 13 July Stephen Byers referred to the Competition Commission Gannett's proposed acquisition of the titles of which RIM was a newspaper proprietor as at 29 June. The reference was mandatory. Because Blackpool Now was launched after this date, a separate reference is needed to allow the CC to investigate the transfer of this title alongside that of RIM's other titles.
The parties concerned in the proposed transfer are:
Gannett UK Limited
Newspaper House
34-44 London Road
Morden
Surrey
SM4 5BR
Regional Independent Media Holdings Limited
PO Box 168
Wellington Street
Leeds
LS1 1RF
SYLVAN INTERNATIONAL/LOCKER GROUP JOINT VENTURE : DEADLINE FOR COMPETITION COMMISSION REPORT EXTENDED
Kim Howells, Consumer and Corporate Affairs Minister, has announced that he has agreed to a request by Competition Commission (CC) for an extension until 28 September 2000 of the time allowed for their investigation of the joint venture between Askern Group Ltd (a subsidiary of Sylvan International Ltd) and Locker Group plc's Pentre Packaging drum and reel business. The Commission has informed the DTI that it is unable to complete its investigation into the joint venture within the deadline originally set (14 September).
The Competition Commission were originally due to make their report by 14 September 2000. Under Section 70(2) of the Fair Trading Act 1973, the Secretary of State may allow one extension of not more than three months following representations from the CC where satisfied that there are special reasons why the report cannot be made within the period specified in the reference.
INTERBREW'S ACQUISITION OF BASS REFERRED TO THE COMPETITION COMMISSION. INTERBREW'S ACQUISITION OF WHITBREAD CLEARED
Stephen Byers, Secretary of State for Trade and Industry, has decided to refer the acquisition of Bass' UK brewing interests by Interbrew to the Competition Commission under the provisions of the Fair Trading Act 1973. However, he has decided not to refer Interbrew's acquisition of the brewing business of Whitbread to the Competition Commission. Both decisions are in accordance with the advice of the Director General of Fair Trading.
Commenting on his decision to refer Interbrew/Bass, Mr Byers said:
"The merger raises competition concerns in respect of the market for the production and distribution of beer. In reaching this view, I have taken into consideration the DGFT's advice that, at the brewing level, the merger reduces the number of national brewers from four to three, creates a new market leader and significantly increases the level of concentration in the hands of the top two brewers. At the distribution level, the DGFT has advised that similar concerns relating to market share and concentration arise. I agree with the DGFT's advice that Interbrew's acquisition of Bass therefore gives rise to competition concerns warranting reference to the Commission."
In line with the policy of greater transparency in competition cases, the DGFT has undertaken to publish the assessment section of his advice to the Secretary of State within 10 working days, after affected parties have had the opportunity to comment on the inclusion of information which may, for example, be price sensitive.
The decision to make a reference does not in any way prejudge the question of whether or not the merger would be against the public interest. It is for the Commission to report on this after investigation. The Commission are to make their report by 6 December 2000. In line with the DGFT's advice, the Secretary of State will, as soon as possible, make an order under section 74 of the Fair Trading Act 1973 requiring Interbrew to take no action to integrate the Interbrew and Bass businesses.
Amelia Fletcher, Simon Gaysford and Adele Oliveri of Frontier Economics say that e-commerce is unlikely to develop entirely new forms of anti-competitive behaviour that cannot be dealt with under existing competition law. But they conclude that a number of areas will require careful monitoring and that in some cases detailed application of competition law may require some adjustment.
Three key elements of the application of competition policy: market definition, assessment of market power, and assessment of individual agreements and conduct have been considered.
The paper is published by the OFT to stimulate discussion.
Among Frontier's conclusions and recommendations are:
* Many of the characteristics of e-commerce and associated patterns of behaviour will tend to lower barriers to entry into both B2C and B2B e-commerce, reducing the potential for players to secure and exploit market power.
* There are certain characteristics of e-commerce which may tend to raise barriers to entry such as:
* Sunk costs of establishing consumer loyalty - reputation, branding and customer loyalty will become increasingly important and may create significant first-mover advantages. These could be reduced if customers were able to 'port' their own database entries from site to site [2].
* 'Tippy' markets - Online marketplaces may tend towards being natural monopolies and a second potential entrant may face large barriers to entry. These barriers will be particularly high in markets where liquidity is important and exacerbated where market participants are tied into the market via proprietary supply chain management systems. The 'tippiness' of online marketplaces will be strongly affected by the ability of market participants to monitor different marketplaces and to switch easily between them. Intermediaries could facilitate this.
* Even where first mover advantages persist, they need not imply market power if operators compete in a wide product market that includes traditional commerce, and if barriers to entry into the traditional service are low.
* Increased buyer power will tend to limit the extent to which high market shares and barriers to entry will confer market power.
John Bridgeman, Director General of Fair Trading, said:
"Competition authorities worldwide are facing the challenge of ensuring that e-commerce flourishes in a competitive environment. The balance to be struck is that of protecting consumers without stifling innovation.
"Many characteristics of e-commerce should increase competition because buyers will have access to a global marketplace and the ability to easily compare price and product features. Conversely e-commerce may also enable business to become more efficient at damaging competition.
"Whether existing competition law is up to the task of dealing with this new and constantly evolving marketplace is an issue being considered by many competition authorities. This paper is intended as a platform for discussion and debate amongst practitioners and interested parties."
The OFT intends to host an Autumn seminar to discuss the issues raised in this paper. If you would like to register an expression of interest in attending this seminar, or would like to comment on the paper, please write to: Peter Bamford, Chief Economist, OFT, Fleetbank House, 2-6 Salisbury Square, London EC4Y 8JX.
Separately the OFT and OFTEL were asked by the Cabinet Office's Performance and Innovation Unit to look at emerging barriers to competition in electronic markets. A report, due to be published in the Autumn, will examine the emergence of new access technologies and devices.
Tuesday 3 October 2000 ICM Credit Scotland 2000 (Conference and Exhibition) Hampden Park Football Stadium, Glasgow Anyone interested in attending (or exhibiting) should contact David Ancliffe on (0131 200 8686). Friday 6 October 2000 Swindon Branch of the ICM Seminar Telephone Collection Techniques Credit Scoring and Vetting Procedures Receiverships/Liquidations Prioritise Your Workload Cost 85.00 members, 95.00 non-members Lunch included and Refreshments Contact Barry Parkin on 01793-766471 during working hours Tuesday 17th October 2000 Chilterns Branch of the ICM Insolvency Reform and Corporate Restructuring To be held at Kodak, Hemel Hempstead 6.30 for 7.00pm Friday 24th November Chilterns Branch of the ICM Annual Dinner Your Branch Committee invites you and your Colleagues, Suppliers or Customers to a formal Dinner, a Speech and Toasts by our Special Guest Speaker. This Years sumptuous occasion is at Putteridgebury near Luton, one of the most beautiful of locations in the branch area. Tickets : #30 Per member, #50 Member & guest or A corporate table for the modest price of #275.00 For details, tickets & Table reservations please contact: Jennifer Scott 01992 553931, Stuart Hopewell 020 7465 5908, Friday 20 October 2000 Millennium Annual Dinner of the ICM Drapers Hall, City of London. # = pounds sterling
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