Editor: John Arnold. E-mail jarnold@creditman.co.uk
Site: Business Credit Management UK
URL: http://www.creditman.co.uk
Issue: Vol 4 Issue 28
Dated: 16 July 2000
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
We are very pleased to welcome our new sponsors, Credit and Business Services Ltd, pioneers of undisclosed outsourced credit management in the UK since 1993. CBS diverse client base includes both blue-chip and smaller businesses, who benefit from a tailored, cost-effective solution to their credit needs. In addition to their range of commercial credit services, CBS is now also one of the UKs leading brokers to the sales-linked finance and credit insurance market. Visit them at www.cbsplc.com
UKCBI WELCOMES NEWS ON JOBS BUT SOUNDS NOTE OF CAUTION ON EARNINGS
The Confederation of British Industry last Wednesday said that jobs growth is great news but sounded a note of caution over earnings data.
Kate Barker, CBI Chief Economic Adviser, said: "The rise in jobs is great news, but this data also shows a weakness in the manufacturing sector where the rate of decline in employment has recently accelerated.
"The further marked fall in the average earnings data supports our view that the inflation outlook remains favourable. It suggests that interest rates can be left on hold right through the summer.
"But the earnings data may not be as good as it seems because bonuses figures can be so erratic.
"For the first part of the year, the headline earnings data was overstated because of millennium bonuses. Now it seems understated because strong bonuses last May have fallen out of the annual data."
APPOINTMENT OF NEW DIRECTOR GENERAL OF FAIR TRADING
Stephen Byers, Secretary of State for Trade and Industry, announced on the 13 July the appointment of Professor John Vickers, Chief Economist and Executive Director of the Bank of England, as Director General of Fair Trading.
Mr. Byers said: "I am pleased to announce the appointment of Prof. John Vickers as the next Director General of Fair Trading. To attract an individual of his standing to this post is a demonstration of the importance of the position of DGFT. The Competition Act gives the Office of Fair Trading strengthened and much needed powers to tackle anti competitive behaviour and practices which hurt consumers and companies .
"I attach particular importance to John Vickers' wide knowledge and experience of business issues and markets, combined with detailed expertise in competition matters, which I know he will put to good use in driving competition and helping consumers. I look forward to working with him."
John Vickers said: "I look forward to taking up this exciting appointment at a time of great change at the Office of Fair Trading. The Competition Act 1998 reshaped and updated competition law, giving a wide range of new powers to the OFT, and the OFT will be at the centre of initiatives to strengthen consumer policies.
The OFT has a challenging agenda to make sure that markets work well. That is good for consumers and for efficient businesses."
Mr Byers added, "I am grateful to John Bridgeman for his determined work over five years acting as the consumer watchdog."
Professor John Vickers, aged 42, joined the Bank of England as Chief Economist and Executive Director in April 1998. He was educated at Eastbourne Grammar School and Oriel College, Oxford. After a period working in the oil industry, he taught economics at Oxford University, and became Drummond Professor of Political Economy in 1991. He has also held visiting positions at Princeton, Harvard and the London Business School. He has written widely on economic topics,including privatisation, regulation and competition.
John Bridgeman completes his term of office at the end of September 2000. John Vickers is expected to take up post in the Autumn.
MANUFACTURING SQUEEZED FURTHER BY STRONG POUND
Manufacturing activity slowed last quarter to its lowest level for a year with export sales and orders contracting, according to the latest quarterly economic survey from the British Chambers of Commerce (BCC), published on Thursday 13 July 2000.
The survey, the largest and most detailed of its kind, covering 7,973 UK firms employing 800,000 staff, shows that manufacturing domestic sales improved in only three of thirteen regions over the last quarter, with large firms being hardest hit by the slowdown. Export sales in the sector contracted for the first time in a year and firms' expectations suggest this decline will continue over coming months.
The significant fall this quarter in manufacturers' confidence in profitability coincided with the highest level of pressure on prices from raw material costs since the second quarter of 1997.
The survey also shows that growth in service sector domestic activity picked up on last quarter, particularly in the largest firms. Service sector export activity expanded at its fastest rate since the fourth quarter of 1997 and firms' confidence in turnover remained strong. However, service sector firms reported a fall in their intention to raise prices and their confidence in profitability also dipped on the previous quarter.
Dr Ian Peters, Deputy Director General of the BCC, said:
''The strength of sterling is placing manufacturers under increasing pressure. Exports are declining for the first time in a year, while domestic sales have reached a near standstill. Despite its recent fall in value, the pound still remains above a level at which UK manufacturers can compete effectively. On the strength of this survey, manufacturing remains in a very fragile position, with clear signs that its decline will continue over coming months.
''The idea of a two-speed economy in the UK is misleading. The prospect of a sustained downturn in manufacturing holds the danger of damaging knock-on effects across the economy as a whole. With the business environment still intensely competitive, firms in both sectors are being forced to absorb rising costs through lower profit margins.''
The survey shows that while, in both sectors, investment in plant and machinery has picked up over the past quarter, investment in training has slowed, by 7 percentage points in manufacturing.
While growth in manufacturing employment slowed last quarter, recruitment difficulties in all except the smallest firms increased significantly for skilled manual workers.
The level of job creation in the service sector continues to expand strongly, but this does not appear to be causing a growth in recruitment difficulties, which have eased slightly this quarter.
THE CBI COMMENT:
Commenting on the BCC survey, Digby Jones, CBI Director-General said:
"Manufacturing exporters are continuing to suffer from the strength of sterling, despite some easing in the exchange rate over the past few weeks. UK business is handicapped when competing for export orders. Today's survey reinforces the CBI view that interest rates can be left on hold right through the summer".
UNEMPLOYMENT FIGURES
Unemployment in the UK fell to 3.8% (on a claimant-count basis), its lowest since February 1980. A booming economy and low inflation has trimmed the jobless figure to 1.1m. Average earnings grew by 4.6% in the 12 months to May, 0.1 percentage points more than the government's target rate.
Source - The Economist
Small Business Minister Patricia Hewitt on the 12 July 2000 launched the Business Debtline, a telephone helpline aimed at helping small businesses facing debt problems.
The service will provide telephone counselling and a self-help pack of comprehensive guidance on dealing with business debts.
The Debtline telephone number is 0800 197 6026, and calls can be made between the hours of 10am to 4pm, Monday to Friday. The self-help pack can be accessed from the SBS website:
http://www.businessadviceonline.org/businesstopics/finance/ann0100s4.asp
Ms Hewitt said:
"Many businesses face a debt crisis at some stage in their life. The Business Debtline will provide expert counselling and advice so businesses can overcome their financial difficulties and prosper.
"The Debtline is an excellent example of how Government, banks and the voluntary sector can all work together in the interest of small business."
David Irwin, Chief Executive of the Small Business Service said:
"SMEs face many difficult finance issues. The Business Debtline will provide a means by which SMEs can get advice to alleviate some of those burdens. Advice available will cover subjects from drawing up budgets to presenting payment proposals to creditors."
"I am pleased that the SBS is partnering another excellent scheme that will contribute to our aim of enhancing small business performance."
The £540,000 three-year initiative will be operated by Birmingham Settlement, a voluntary organisation, who have operated a similar service for businesses in the Birmingham area for a number of years. The Debtline is being jointly supported by seven major banks and the Small Business Service (SBS).
The following seven banks are supporting the initiative:
Barclays
HSBC
NatWest
Lloyds TSB
Bank of Scotland
Royal Bank of Scotland
Co-Operative Bank.
The service will be funded to the tune of £180k a year with the SBS providing £80,000 a year and the banks jointly contributing £100,000 a year. The website http://www.businessadviceonline.org is one element of the SBS Gateway, which provides access to a comprehensive national service of information and expert advice.
BEWARE COMPANY DIRECTORS!
Contributed by Stephen Cowan, Yuill & Kyle, Debt Recovery Lawyers, Scotland. www.debtscotland.com
E-mail Stephen Cowan scowan@yuill-kyle.co.uk
Company directors will be held to be unfit if they persistently prefer to pay one class of creditors over another, following the judgment in re Structural Concrete Ltd, reported in "The Times" of 5th July, 2000.
The circumstances of the case surrounded an application to disqualify the company's directors, in terms of the Company Directors Disqualification Act, 1986.The directors were disqualified for periods ranging from two to four years for activity which many would feel surprised would merit such a ban.
Basically, in an effort to keep on trading, the directors retained £462,890 from monies collected for the Inland Revenue as deductions from payments made to the self- employed workforce. Structural Concrete was a specialist sub-contractor in the construction industry, which had fallen into financial difficulties. They decided to priorities payment of their debts. In particular they used monies received to reduce their bank overdraft and the company's trade creditors in the hope they could trade out of their financial difficulties.
Once the company went into liquidation it was discovered there were no monies available to pay the Inland Revenue. The court was emphatic. Where circumstances existed where there was deliberate non-payment of a certain class of debt, whether Crown or otherwise, this would on the face of it lead to an almost automatic conclusion such conduct would lead to unfitness. Exceptional circumstances would have to exist to rebut such an assumption.
So what will not be tolerated? It will not be sufficient for the directors to prefer one class of creditor against another simply because there was an intention in the future to pay the class of creditors who had been missed out-even although the Directors had acted in good faith and had derived no profit from their course of action. Nor will it be relevant to consider the economic depression within which the company had been trading. Also it will irrelevant the company had been cash starved as result of non-payment of monies due to them as a result of contractual disputes.
The court emphasized it would "send out entirely the wrong message if it were to be thought that a deliberate policy of not making any payment of such a Crown debt, allowing it to rise to £460,000-odd and making no attempt to secure the Crown's agreement to that course of action, while at the same time paying the company's other pressing creditors, could not lead to unfitness and therefore to a disqualification".
UNIVERSAL PROMOTIONS (WIRRAL) UK LIMITED,
UNIVERSAL PROMOTIONS (CHESTER) LIMITED,
UNIVERSAL PROMOTIONS (PENINSULA) LIMITED,
UNIVERSAL PROMOTIONS (MANAGEMENT) LIMITED,
UNIVERSAL PROMOTIONS (NORTH WEST) LIMITED,
UNIVERSAL PROMOTIONS (NORTHERN) LIMITED,
TRINITY PROMOTIONS (WIRRAL) LIMITED,
TRINITY PROMOTIONS WIRRAL (U.K.) LIMITED,
TRINITY PROMOTIONS (CHESTER) LIMITED AND
TRINITY PROMOTIONS (NORTH WEST) LIMITED
On 29th June 2000 the Secretary of State for Trade and Industry presented petitions in the High Court of Justice in London to wind up in the public interest Universal Promotions (Wirral) Limited, Universal Promotions (Chester) Limited, Universal Promotions (Peninsula) Limited, Universal Promotions (Management) Limited, Universal Promotions (North West) Limited, Universal Promotions (Northern) Limited, Trinity Promotions (Wirral) Limited, Trinity Promotions Wirral (U.K.) Limited, Trinity Promotions (Chester) Limited and Trinity Promotions (North West) Limited following enquiries made by the Companies Investigation Branch of the DTI under the provisions of Section 447 of the Companies Act 1985.
On the application of the Secretary of State the Court appointed the Official Receiver as provisional liquidator of Universal Promotions (Wirral) UK Limited, Universal Promotions (Chester) Limited, Universal Promotions (Peninsula) Limited, Universal Promotions (Management) Limited, Universal Promotions (North West) Limited, Universal Promotions (Northern) Limited, Trinity Promotions (Wirral) Limited, Trinity Promotions Wirral (U.K.) Limited, Trinity Promotions (Chester) Limited and Trinity Promotions (North West) Limited pending the hearing of the petition on 9th August 2000.
All the companies, which trade from Birkenhead, Merseyside, are involved in the publication of diaries, yearbooks and sports programmes for charities and sections of the emergency services, selling advertising space in the publications to the business community throughout Great Britain.
The companies were incorporated on the following respective dates:
Universal Promotions (Wirral) UK Limited 17 August 1995
Universal Promotions (Chester) Limited 24 November 1995
Universal Promotions (Peninsula) Limited 22 October 1998
Universal Promotions (Management) Limited 16 December 1996
Universal Promotions (North West) Limited 4 July 1997
Universal Promotions (Northern) Limited 22 October 1998
Trinity Promotions (Wirral) Limited 10 October 1996
Trinity Promotions Wirral (U.K.) Limited 29 November 1995
Trinity Promotions (Chester) Limited 22 October 1998
Trinity Promotions (North West) Limited 22 October 1998
All public enquiries concerning the business affairs of the companies should be made to the Official Receiver at the following address:
The Official Receiver
The Insolvency Service
Public Interest Unit
PO Box 203
21 Bloomsbury Street
LONDON WC1B 3QW
The registered offices of all of the companies except for Universal Promotions (Northern) Limited are at 181-183 New Chester Road, Wirral, Merseyside, L62 4RB. The registered office of Universal Promotions (Northern) Limited is 68 Argyle Street, Birkenhead, Merseyside, L41 6AF
Further information on company investigations is available from http://www.dti.gov.uk/cld/comp_inv.htm
DTI PETITION TO WIND UP GATEWAY INSOLVENCY LIMITED AND THIRTEEN ASSOCIATED COMPANIES
The Secretary of State for Trade and Industry has presented petitions in the High Court to wind up, in the public interest, fourteen companies following investigations by the DTI's Companies Investigations Branch. The investigations were conducted under section 447 of the Companies Act 1985 (as amended). The companies are:
Gateway Insolvency Limited
Driscall Management Services Limited
Chariot Traders Limited
ECE Europe Limited
Cumberland Leasing Corporation Limited
Adesso (UK) Limited
White Knight Strategies Limited
Cumberland Venture Corporation Limited
Bestgrant Limited
Shaizir Trading Partners Limited
PSG (GB) Limited
Eldon Enterprises Limited
Houston Communications Limited
On the application of the Secretary of State the Court has appointed the Official Receiver as provisional liquidator of all the above companies pending the hearing of the petition on 6 September 2000 at 10.30am.
The companies have been engaged in the provision of insolvency and related advice. The role of the Official receiver as provisional liquidator is to protect and preserve the assets and financial records and documents of the company until the hearing of the winding-up petition.
The companies, which have various registered offices, currently trade from 31a Saint James Square, London SW1. Their previous trading address was at Fourth Floor, 1 Great Cumberland Place, London W1.
The petitions were presented under Section 124a of the Insolvency act 1986.
All public enquiries concerning the company should be made to:
The Official Receiver
Public Interest Unit
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 17/07/2000 to 25/07/2000 Number of Creditor meetings : 185 Section Company Time Venue 138 Scotland - Interim Liquidator calling Creditors Meeting 18/07/2000 All Clear Emergency Services Ltd 10.00 am Edinburgh European Bathrooms (Scotland) Ltd 12.00 am Edinburgh Millbry 199 Ltd 11.00 am Glasgow 25/07/2000 James P McFarlane & Co Ltd 11.00 am Paisley 23 Administrator Calling a meeting of Creditors 18/07/2000 European Transaqua Ltd 10.30 am Nottingham 24/07/2000 Construction Power (St Helens) Ltd 10.30 am Rochdale Taskforce Install & Maintenance Ltd 11.00 am London 48 Receiver calling unsecured Creditors Meeting 17/07/2000 DDSS Ltd 11.00 am Leeds Knight & Willson Ltd 02.00 pm Leeds Status Innovations Ltd 11.30 am Birmingham 19/07/2000 Motorworld (UK) Ltd 11.00 am Birmingham Printers Express Ltd 11.00 am London 21/07/2000 Continental Imports (Blackpool) Ltd 10.00 am Leeds 24/07/2000 D & D Manufacturing Suppl & Install Lt 10.00 am Sheffield 67 Scotland - Receiver calling Meeting of unsecured Creditors 18/07/2000 McAlindon Building Contractors Ltd 12.00 pm Glasgow 19/07/2000 Anytime Export Ltd 11.00 am Edinburgh Anytime Ltd 11.00 am Edinburgh 84 N. Ireland - Creditors Voluntary Liquidation 20/07/2000 William Gray & Son Ltd 03.00 pm Belfast 98 Creditors Voluntary Liquidations 17/07/2000 Axiom Development Partnership Ltd 02.45 pm London Axiom Workshops Ltd 02.30 pm London Contrast Marketing Ltd 12.00 pm London Fear Not (UK) Ltd 10.00 am Preston Game Fayre Ltd 10.00 am Perth Gilcrest Trading Ltd 10.30 am London Hendrick Ltd 02.30 pm London I T S Logistics Ltd 11.00 am Hull Magnum Restaurants Lts 11.00 am London Marlston Engineering Ltd 10.30 am Reading Maxplay (Europe) Ltd 11.00 am Bournemouth Metro Leisure (UK) Ltd 11.00 am Styvchale Moore Bros (Wilton) Management Ltd 11.00 am Southampton Northgale Ltd 11.00 am Hornchurch P A Equipment Hire Ltd 11.00 am Manchester P M Pleating Ltd 11.30 am Manchester Paron Reliant Manufacturing Ltd 11.30 am Birmingham Roger Black Partnership Ltd -The 03.00 pm London Sureline (Pipeline Constructors) Ltd 11.00 am Blackburn T K L Ltd 11.30 am Liverpool Tecserv Engineering Products Ltd 11.00 am Birmingham Total Office Group Plc 04.00 pm Leeds Type Technologies Ltd 03.00 pm London U S P Estates Ltd 02.30 pm London Vitalis (International) Ltd 12.30 pm Leeds Vitalis Ltd 10.15 am Leeds 18/07/2000 A J Heating Services Ltd 11.00 am Wolverhampton A V R Toolmakers Ltd 11.30 am Nottingham Aberdeen Medi-Cal Ltd 10.30 am Aberdeen Albert Gate Fruit Stores Ltd 11.00 am Barnet Amilu Ltd 12.00 pm Manchester Birdsall Furnishings Ltd 11.30 am Wakefield Camelot Conservatory Co Ltd 03.00 pm London Carpet Movements Ltd 02.30 pm Bradford Central Marketing Management Ltd 11.30 am Leicester Code Menswear Ltd 02.30 pm Bolton Crossway (Fitness) Ltd 02.30 pm Halifax Daydawn Ltd 12.00 pm London Deancover Ltd 03.00 pm London Dennis Transport Ltd 11.00 am Chandlers Ford Derbyshire Textiles Ltd 11.15 am Sheffield Design Corner Ltd 11.00 am London Directwhiz Ltd 10.05 am Egham Doddington & Rollo Community Proj Ltd 02.30 pm London Emsworth Road Garage (Lymington) Ltd 12.00 pm Southampton Environmental Waste Technology Ltd 10.30 am Halifax Faithfulls Ltd 11.30 am Guildford Frinton Shipbrokers Ltd 12.00 pm London G S E Collections Ltd 10.30 am London Glenforth Engineering Ltd 11.00 am Bristol Harrowbrook Exhaust Co Ltd - The 11.30 am Hinckley Hughes Commision Ltd 02.30 pm Leeds Hughes Trading Ltd 02.30 pm Leeds Independent Life & Pensions Ltd 11.00 am Hereford Industrial & Allied Chemicals Ltd 11.00 am Birmingham John Henry Architectural Install Ltd 11.00 am Bolton Kerry Construction Ltd 02.30 pm Southampton Landmark Agricultural Ltd 12.30 pm Sheffield Level 3 Ltd 12.00 pm Liverpool M & S Electrical Services Ltd 02.30 pm Southampton Market Place Services Ltd 11.00 am Aldridge Maztex Ltd 12.00 pm Manchester Melon Records Ltd 10.30 am Crawley Music in the Sun Ltd 10.30 am Sheffield Robin Stone Services Ltd 12.00 pm London Rose Greeting Cards (UK) Ltd 11.00 am Manchester Same Day Solutions Ltd 11.00 am Swansea Saunders Computer Services Ltd 10.30 am Nottingham Sun & City Holidays Ltd 12.00 pm London Trade Glaze (Windows & Doors) Ltd 11.00 am London Yardy Products Ltd 02.30 pm Henley-on-Thame 19/07/2000 Allport Environmental Services Ltd 11.00 am Barnet Bonny Claire Cakes Ltd 12.00 pm London Colman Homes Ltd 11.00 am Bolton Equinox Medical Lasers Ltd 11.00 am Swansea Express Wholesale (DIY) Ltd 12.00 pm Manchester Greatminster Underwriting Manage Ltd 11.00 am Leeds Hampton Technologies Ltd 11.00 am London Hannah Auto Electrics Ltd 12.00 pm Glasgow Impressions Ltd 10.00 am Kingston-u-Tham International Laser Group Ltd 01.00 pm Swansea Kalme Ltd 03.00 pm Glasgow M & H Smith Ltd 02.00 pm Carlisle Maurice Douek Ltd 03.00 pm London Mortons Bars Ltd 11.00 am London PBR Contracts Ltd 11.00 am Sunderland Perry Print (UK) Ltd 03.30 pm London Primetime Pizza Ltd 11.00 am Newcastle-u-Lym Resolution Consultants Ltd 11.30 am Guildford Roberts McLellan Ltd 10.30 am Liverpool Top Draw Office Supplies Ltd 11.00 am High Wycombe Ulysses Security Enterprises Ltd 10.30 am Newcastle-u-Tyn 20/07/2000 A & S Transport (North) Ltd 12.00 pm Preston A J T Transport Services Ltd 10.30 am Walsall Alf Parry & Son Ltd 11.30 am Deeside Aston Equipment Ltd 03.30 pm Bury St Edmunds Complete Freight Services Ltd 12.00 pm Worcester Conmax Ltd 11.00 am Gerrards Cross EGM Mann & Son Ltd 10.30 am Cambridge Embershaw Ltd 11.00 am Aldridge Eric Marjoram Transport Ltd 03.30 pm Lutterworth Frontadd Ltd 10.30 am Birmingham I H B Ltd 12.00 pm London Jekyll & JHyde Leisure Ltd 10.00 am Yarm K & J Recruitment Ltd 03.00 pm Manchester Knightsbridge International Ltd 10.15 am Bradford Old English Joinery Co Ltd - The 10.15 am Ipswich Pin Corporate Solutions Ltd 10.15 am Harrogate Portland Plumb & Heat Supplies Ltd 10.30 am Nottingham Redcombe Civil Engineering Ltd 11.00 am Bristol Runnymead Associates Ltd 11.00 am Birmingham Sandwell Electrical Installations Ltd 11.00 am Birmingham Sokel Shaw Consulting Ltd 11.30 am London Ultima Cars Ltd 11.00 am Northwood Warmex (Insulation Specialists) Ltd 10.30 am Sheffield Waterfront Press Ltd 10.30 am London Wirral Insulation & Renders Ltd 11.00 am Runcorn 21/07/2000 A S Data Services Ltd 02.30 pm Birmingham ABC Uniforms & Workwear Ltd 11.30 am London Bill Barloe (Spares) Ltd 11.00 am Glasgow Camberley Realisations Ltd 10.15 am Birmingham Colortech Printers Ltd 11.30 am Leicester D & R Property Serv (South Region) Ltd 11.45 am London Dore Engineering Ltd 11.00 am Sheffield Harbans Ltd 11.00 am Birmingham Headstream Ltd 11.00 am Hornchurch Heritage Fine Furniture Ltd 02.30 pm Watford Industrial Plant Services (UK) Ltd 11.30 am Manchester Lancashire Leather Ltd 11.00 am Manchester Leofric Interiors Ltd 11.00 am Wolverhampton Mallard Mailing Services (Cheshire) Lt 11.30 am Manchester Mirvex (UK) Ltd 10.00 am Manchester Mountford Computer Services Ltd 04.00 pm London Riviera Fashions Ltd 10.30 am Leicester Shackleton Fabrications Co Ltd 11.30 am Sheffield Southern Counties Optical Services Ltd 12.30 pm London Tradeability Ltd 11.00 am Croydon Turnkey Environmental Services Ltd 12.00 pm Guildford Uniway Ltd 03.30 pm Leicester Vanguard Fabrications Ltd 12.00 pm Hale Whitstable Litho Printers Ltd 11.30 am Canterbury World of Glass Ltd 12.00 pm London 24/07/2000 Bargebloe Electric Ltd 12.00 pm Manchester Cityspan Ltd 12.00 pm London Cleo Entertainment Ltd 03.00 pm Gerrards Cross Danby Contracts Ltd 10.30 am Nottingham GA Woodcock Freight (Realisations) Ltd 11.30 am Sheffield Leanstore Ltd 12.00 pm London Packaging Realisations Ltd 10.30 am Sheffield Placed First Ltd 03.00 pm London R A Austin Life & Pensions Ltd 11.30 am Lutterworth W C D Promotions Ltd 11.00 am Brighton Woodcock Travel Ltd 03.00 pm Sheffield 25/07/2000 0700 2 Insure Ltd 11.30 am Aldridge Alphabec (London) Ltd 12.00 pm London Alphabec Ltd 11.45 am London Chris King Pipework Services Ltd 11.00 am Leeds Dinamack Ltd 11.00 am Hereford GA Woodcock Ltd 10.30 am Sheffield Intermediation Licensing Corp UK Ltd 11.15 am London International Transact Systems Ltd 11.00 am Glasgow Melvyn Yardley Grinding & Engineer Ltd 11.30 am Brierley Hill Principal Connections Ltd 10.30 am Manchester Station Cars (City) Ltd 04.00 pm London Swirlnote Ltd 11.30 am London TLS Interior Architecture Ltd 11.00 am Hampton Court Truck & Trailer (Ludlow) Ltd 11.00 am Wolverhampton
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Shareholders in British Airways also forced a review of a 2m pounds ($3m) payment to its former chief executive, Bob Ayling, as compensation for being sacked. Many saw his dismissal as part of the rough and tumble of corporate life, for which he had already been well compensated.
Diageo, the UK food-and-spirits group, is joining the American food industry consolidation. It is considering merging its Pillsbury food division in America with General Mills.
European Aeronautic Defence and Space, the firm created by the merger of Germany's DaimlerChrysler Aerospace, France's Matra and Spain's Construcciones Aeronauticas, floated on the Paris, Frankfurt and Madrid stock exchanges. The float valued the company at 15.4 billion ($14.7 billion). Although priced much cheaper than EADS management had recently predicted, the shares promptly drifted below the offer price.
The American Bar Association rejected a proposal that would have allowed "multi-disciplinary partnerships" with accountants. This was a blow to the ambitions of the "Big Five" accounting firms. The American lawyers, best-known for the money they make, argued that partnerships with commercially oriented bodies might diminish lawyers' professionalism.
BP Amoco, the British oil company, announced a shift from "rationalisation" to "expansion", with a rise in capital spending of $1.5 billion, to $13.5 billion a year for three years. BP hopes to convert the spending into profits growth of 10% a year through 2002.
Tradepoint, a British electronic stock exchange, and SWX, Switzerland's stock exchange, announced an alliance to create a new stockmarket, to be called VIRT-X. Switzerland's 24 blue-chip shares will transfer to the new exchange, which will also trade 230 European blue-chip shares.
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:Completed acquisition by Pearson Plc of Dorling Kindersley Holdings Plc
Proposed acquisition by Luminar plc of Northern Leisure plc
Proposed acquisition by BSkyB plc of Sports Internet Group plc.
Acquisition by Shanks Group plc of Waste Management Nederland BV
Acquisition by Beel Industrial Boilers plc of assets of Rolls Royce Power Engineering, namely Cochran Boilers Limited
Completed acquisition by ARRK Formation Ltd of Styles RPD Limited
Acquisition by Decorative Surfaces Holding AB of Perstorp Surface Materials Group
CARLTON, GRANADA AND UNM: COMPETITION COMMISSION REPORT AND DECISIONS
Stephen Byers, Secretary of State for Trade and Industry, on the 14 July published the report of the Competition Commission on the proposed mergers of Carlton and UNM, Granada and UNM, and Granada and Carlton.
He announced that the Competition Commission has cleared both of the mergers involving Granada. Where the Competition Commission clears a merger, the Secretary of State has no power to take any action other than to publish the Commission's report.
However the Commission has found that a merger of Carlton and UNM may be expected to operate against the public interest. Mr Byers said that, in accordance with the recommendations of the Competition Commission and the advice of the Director General of Fair Trading ("DGFT"), he is allowing the merger of Carlton and UNM to proceed on the condition that the parties give an undertaking to divest the Meridian licence within a period of six months from the date of the completion of the merger. He has asked the DGFT to obtain such an undertaking.
The Commission therefore concludes that it would expect a merger between Carlton and UNM to be contrary to the public interest, unless obligatory divestments had been made and those divestments include one of the three leading licences - Carlton TV, i.e. London weekday; Central TV; Meridian TV - which the merged company would own. The Commission recommends that the prospective merged company be required to divest Meridian to a buyer approved by the Director General of Fair Trading (DGFT) as a condition of permitting that merger to proceed.
The Commission considered that the obligatory divestments and that recommended by it would also reduce the risk of a dominant company being in a position to exercise undue influence over the ITV Network's operations.
The proposed merger between Carlton and UNM was referred by the Secretary of State in accordance with the advice of the Director General of Fair Trading on 8 February 2000.
The Fair Trading Act 1973 empowers the Secretary of State to refer to the Competition Commission for investigation and report actual or proposed mergers which create or intensify a market share of 25% of the supply in the UK, or a substantial part of the UK, of particular goods and services or involve the take-over of assets exceeding £70 million.
Irrespective of any decisions taken under the Fair Trading Act, the companies are obliged to comply with various rules pursuant to the Broadcasting Acts 1990 and 1996. These rules are a matter for the Department of Culture, Media and Sport and the ITC.
Copies of the report are available from the Stationery Office.
PROPOSED ACQUISITION BY WESTERN POWER DISTRIBUTION LIMITED OF HYDER PLC
Kim Howells, Minister for Competition, has decided, in accordance with the advice of the Director General of Fair Trading, not to request the European Commission to refer the proposed acquisition by Western Power Distribution Limited of Hyder PLC to the UK competition authorities under Article 9 of the EC Merger Regulation.
Dr Howells said :
" I carefully considered representations for requesting the referral of this case to the UK authorities. However, I have concluded that the acquisition did not satisfy the relevant criteria in the Regulation. This decision was in accordance with the advice of the Director General of Fair Trading and the sectoral regulators.
The separate arrangement under which WPD proposes to procure certain water services from United Utilities is not affected by my decision. This transaction has not fallen to the EC competition authorities. The UK competition authorities, including the sectoral regulators, are carefully examining whether the transaction falls to be considered under UK competition law. Their considerations are ongoing. Irrespective of changes in the ownership of the licensed
water and sewage undertaking (Dwr Cymru) owned by Hyder, the water regulatory regime will continue to apply to it."
Under Article 9 of the EC Merger Regulation a Member State may inform the EC Commission that a merger threatens to create or to strengthen a dominant position as a result of which effective competition will be significantly impeded on a market within that Member State, which presents all the characteristics of a distinct market or that a merger affects competition on a market within that Member State which presents all the characteristics of a distinct market within that Members State and which does not constitute a substantial part of the common market.
If the Commission considers that a merger threatens to create or to strengthen a dominant position as a result of which effective competition would be significantly impeded on a distinct market within that Member State it shall either:-
(a) deal itself with the case in order to restore effective competition on the market concerned; or
(b) refer whole or part of the case to the Member State concerned with a view to the application of the Member State's competition law.
In cases where a Member State informs the Commission that a merger affects competition in a distinct market within its territory that does not constitute a substantial part of the common market, the Commission shall refer the whole or part of the case relating to the distinct market concerned if it considers that such a distinct market is affected.
The UK has made eight Article 9 requests to the Commission for a case to be referred to the UK authorities. These requests were in the cases of Nabisco Group Holdings Corp/United Biscuits plc/Horizon Biscuit Company Ltd, Hanson plc/Pioneer International Limited, Anglo American plc/Tarmac plc, Exxon Corporation/Mobil Corporation (1999), Electricite de France/London Electricity PLC (1999), Redland plc/Lafarge S.A (1997), GEHE and Lloyds (1996) and Tarmac/Steetley (1992).
The proposed arrangements between WPD and United Utilities have not been notified to the EC. The UK competition authorities are examining whether these arrangements fall to be considered under UK competition law. In particular, the Director General of Fair Trading, after consulting the Director General of Water Services, will advise the Secretary of State on whether the transaction meets the criteria for mandatory reference to the Competition Commission under the Water Industry Act 1991. If the arrangements satisfy these criteria, then they must be referred to the Competition Commission.
Revenues at YAHOO!, the world's most popular website, jumped by 110% in the quarter to the end of June despite fears that dot.coms are running out of money and can no longer afford advertising, a major source of Yahoo!'s income. Yahoo!'s share price recovered after a recent slide.
OIL REPORTING GOES ELECTRONIC
DTI once again showed it means e-business with the introduction of a web-based system for oil production reporting - a world-first in the industry.
Energy Minister Helen Liddell welcomed the new system:
"This initiative is aimed at cutting red-tape and speeding up the reporting process. It is a world-wide first, a sign that Britain is in the lead.
"This is the start of a number of e-business initiatives to be introduced as the DTI continues to lead the way in modernising the oil sector.
"This new initiative is a result of government and industry working together, through PILOT, to ensure that the UK industry harnesses technology and remains competitive in the global market."
The new system goes live, ahead of schedule, following tests in the Shell operated Eider field and the Neptune field run by BG.
Malcolm Brinded, Chairman of Shell UK and joint Chairman of PILOT said:
"I am pleased that Shell have been able to work with the DTI to convert our production reporting procedures to the modern web environment. Systems such as this show that the many types of partnership between Government and industry can deliver benefits, in this case simply by cutting paperwork and saving costs. "
PILOT is the successor body to the Oil and Gas Industry Task Force. It was set up in November 1998 to improve the competitiveness of the UK oil and gas industry and secure the future of offshore operations on the UK Continental Shelf. It brings together Government departments, industry representatives and trade unions to develop mutual understanding of the key issues for the industry both in the short term and over the next ten years.
The report "A Template for Change", and information about PILOT activities, is available on http://www.dti.gov.uk/ogitf or in hard copy from Cara Noble, Oil and Gas Industry Development, DTI, Atholl House, 86-88 Guild Street, Aberdeen, AB11 6AR.
The DTI is building a secure electronic business infrastructure to allow data to be collected, validated and eventually published on the web directly from internal databases. The infrastructure, based upon Oracle technology, incorporates a number of firewalls and encryption techniques that enables all users to have complete confidence in the security of the data.
The DTI has been consulting with POSC, the Petroleum Open Software Corporation, with regard to formulating data exchange standards based upon XML. They have also been discussing cooperation with the American and Norwegian governments on this issue. The DTI is the first to implement a web based solution based upon these new standards.
XML, extensible mark-up language, is the emerging standard for developing and building business data exchange formats for structured data on the web. Further information can be found on http://www.w3.org/xml
POSC is the not for profit international IT standards body for the oil and gas industry. It celebrates its 10th anniversary this year. It is currently working with a number of regulatory bodies and oil companies to produce data exchange standards for electronic regulations on the web. DTI are early adopters of some of the emerging recommendations. The POSC web site is http://www.posc.org
The DTI Oil and Gas directorate has had its own website ( http://www.og.dti.gov.uk ) since 1995, and uses it to publish and exchange information of interest to the industry in line with the Government's policy of increasing the amount of communication with business conducted electronically. The measures announced are part of that process.
5 July 2000 E-Commerce for the Credit Manager New ICM Conference Kenilworth, Warwickshire Contact the ICM Training Department on 01780-722907 e-mail training@icm.org.uk Tuesday 3 October 2000 ICM Credit Scotland 2000 (Conference and Exhibition) Hampden Park Football Stadium, Glasgow Anyone interested in attending (or exhibiting) should contact David Ancliffe on (0131 200 8686). Friday 20 October 2000 Millennium Annual Dinner of the ICM Drapers Hall, City of London.
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