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 43
Dated: 18 November 2001
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKUNEMPLOYMENT RISE NO SURPRISE - CHAMBERS
Reacting to the latest labour market data released last Wednesday by the Office of National Statistics showing a rise in unemployment claimants in October, Ian Fletcher, Chief Economist at the British Chambers of Commerce said:
"Today's news was not unexpected - it's a sign that the global slowdown is finally washing up on British shores. But we believe that the Bank of England did the right thing at the right time by cutting rates half a point last week.
"These figures show solid statistical evidence for what seemed to be a dismal month for employment, after a series of high-profile lay-offs by manufacturers and airlines. With more lay-offs hitting the headlines this month and the latest plane crash in New York adding to the airline industry's woes, we can expect that October's figures will not be a one-off.
"Earnings growth continues to slow which, along with falling inflation, gives plenty of room for manoeuvre to the Bank of England if it decides another rate cut is needed. We urge the Bank to stay vigilant in this uncertain climate and act decisively if further interest rate cuts become necessary."
CBI CHIEF WARNS OF COLD ECONOMIC WINTER BUT SAYS UK CAN AVOID RECESSION
CBI chief Digby Jones last Wednesday warned of a "cold economic winter" but said the UK should avoid overall recession, despite figures showing a rise in unemployment.
"The labour market is now on the turn," he said. "This confirms our fears that the UK's fundamentally strong economy is being hit hard by the global slowdown, although these figures should be seen in the context of the whole economy.
"Despite current difficulties, people should remain cautiously optimistic that we can steer clear of an economy-wide recession. Skills shortages remain and that means there will be job opportunities for skilled workers in the private sector. Continuing recruitment in the public sector will also soften the blow.
"But nobody should underestimate the problems. Firms are bracing themselves for a cold economic winter, with more job losses to come particularly in manufacturing and tourism."
MANUFACTURERS' CONFIDENCE FALLS SHARPLY IN ALL PARTS OF THE UK - SAYS REGIONAL SURVEY
This Autumn's severe drop in business confidence and optimism about export prospects over the year ahead has affected every region of the UK. In the West Midlands, Wales, Scotland and Northern Ireland the falls in export optimism are the largest since the survey began in 1990. Those are the key findings of the latest Regional Trends Survey published last Tuesday by the CBI and Business Strategies.
Sentiment, which was already weak as a result of the global slowdown, has been further depressed by the terrorist attacks on the USA. Every region registered a serious decline in business confidence but the sharpest fall was in the North West which recorded a balance of minus 74 per cent. The other sharp falls were in Wales the West Midlands and the South West which all recorded balances of minus 72 per cent.
Optimism about export prospects for the next twelve months has deteriorated markedly in several regions in recent surveys. This time large declines were seen in all regions. The biggest fall was in the West Midlands followed by Yorkshire & the Humber, Wales and the South West.
For the UK as a whole, export deliveries fell sharply over the past four months and by far more than had been expected in the previous survey. The fall was most severe in the North West which posted the largest declines in the past two surveys. There were also substantial declines in the North East, Wales and Yorkshire & the Humber. The East Midlands is the only region in which manufacturers report a rise in export deliveries.
Export deliveries are expected to fall markedly over the next four months except in the East Midlands. Manufacturers in Yorkshire & the Humber, Scotland and the West Midlands are particularly pessimistic about short term prospects. Sudhir Junankar, CBI Associate Director of Economics, said: "This survey shows that in every region of the UK manufacturers, already under pressure from the slowdown, have had their confidence further knocked by the terrorist attacks. It confirms the slowdown is widespread and explains the concerns that led to the Bank of England's half-point rate cut.
"More disturbing, however, is that manufacturers in all regions expect orders, output and jobs to fall over the coming months. The longer term outlook is especially bleak with investment plans being reined back sharply in virtually all UK regions.
"With inflationary pressures subdued, last week's cut need not be the last in the line - particularly if economic conditions continue to deteriorate."
Most manufacturers see no let up in job losses. Further significant job losses have been seen in the past four months in all regions except the South West, which recorded a rise, and the East Midlands, where only a modest decline was recorded.
All regions expect employment to decline over the next four months with the North East most affected. Those findings are consistent with the regional pattern on output. The South West and the East Midlands were the only regions reporting a rise in output over the last four months.
Estimates based on the survey show that, at the UK level, a further 30,000 manufacturing jobs will be lost in the fourth quarter of this year. These will be spread across almost all the regions. Only the South West and Northern Ireland will avoid job losses. In absolute terms the largest fall (eight thousand) is forecast for the South East, but in percentage terms the East of England, the North West and Scotland will see larger declines.
Peter Gutmann, Associate Director of Business Strategies, said: "Heavy reliance on external markets accounts for much of the gloom in the current survey. The severe slowdown in the global economy and the prospect of worse to come has undermined optimism in all regions. Even the South West and East Midlands, which were surprisingly resilient in terms of output and employment in recent months, have succumbed to the general gloom."
WHAT CAN WE EXPECT IN THE PRE-BUDGET REPORT?
With the Pre-Budget Report due to be delivered on 27 November, any pronouncement by Treasury Ministers is eagerly scanned for indications of measures which may be included.
On 4 November the Chancellor of the Exchequer made a speech at the dinner of the CBI's annual conference. Much of this was devoted to considering the general economic situation, and the prospects of the UK entering the Single European Currency. However, the Chancellor also touched on a number of tax issues.
Referring to concerns about the effect of a global slowdown on the UK's economic growth, he stated that, '… in the Pre-Budget Report we will do more to recognise the vital contribution of modern manufacturing to exports, innovation and our great regions'. No specific measures were mentioned. The Chancellor may have had in mind completely new initiatives, or perhaps proposals based on some of the many consultation exercises currently in progress, or recently concluded, on the taxation of companies. These include relief for companies' capital gains on the disposal of substantial shareholdings; a new régime for the taxation of intellectual property, goodwill and other intangible assets; new tax incentives for research and development; tax credits for community investment, and many other proposals.
The Chancellor also said, 'First, to reward enterprise and entrepreneurship I can say tonight that the Budget will significantly extend our cuts in capital gains tax. I will propose that for business assets held for two years capital gains tax which in 1997 was 40% will be cut to 10%.' This confirms an announcement made on 18 June 2001, after the General Election, as part of the 'Enterprise for All' initiative. The changes are to take effect from April 2002.
The Chancellor added, 'Second, in the next Budget I will also propose extending our cuts in small company corporation tax where instead of 23p in the pound the rates are now 20p and in many cases only 10p.' This, again, confirms an announcement on 18 June that the 10% corporation tax band would be extended in Budget 2002. (The wording of the CBI speech is wide enough to encompass further reductions in the rates, but in the light of the earlier announcement that seems unlikely.)
A further change referred to by Mr Brown was an undertaking that 'there will be a simplification in the VAT system as we introduce further deregulatory measures to help small business'. This suggests that action is to be taken in the Budget (and presumably announced in the Pre-Budget Report) in at least one of the two main areas of the VAT system where consultation has been taking place. These are the introduction of a flat-rate scheme for small firms, and changes designed to increase take-up of the annual accounting scheme.
The European dimension
In the same speech Mr Brown, in summing up areas where benefits would accrue from increased European co-operation, referred to the need for the Member States to 'promote tax competition not tax harmonisation'.
This message was reinforced by a House of Commons written answer given by the Paymaster General on 1 November. Asked about the European Commission's proposals for a single consolidated company tax base announced on 23 October, she replied, 'The Government's position is that tax harmonisation, including proposals for a consolidated company tax base, is not the way forward for Europe'.
CHANCELLOR WILL FIGHT HIS CORNER IN PRE-BUDGET ANNOUNCEMENT
The Chancellor of the Exchequer will deliver his Pre-Budget Report on Tuesday 27 November 2001.
With the UK committed to supporting the war against terrorism, will the Chancellor be levying a punch at the tax-payer to fund military spending or will he box-clever instead?
Business and financial advisers, Grant Thornton, are predicting a stand-off. Mike Warburton, tax partner at Grant Thornton said, "I think we will have a neutral pre-Budget Statement with emphasis on avoiding a slide into recession and a continued importance placed on maintaining work and enterprise."
Warburton added, "The state of public finances remains strong, despite the economic downturn, mainly because of the larger than expected surpluses that the Chancellor has been running at over the last few years. Even with the announced expenditure on the Health Services, it is unlikely that the additional spending on the war effort could not be met from the contingency fund.
"At the same time, Gordon Brown is a prudent Chancellor and he will not want to have a give away Budget at a time when the balance of payments is heavily in deficit."
So who will be the victims in this round? Where will the blows hit hardest?
Gloves off attack on the super-rich
Currently, Inheritance Tax affects anybody with an estate worth over £200,000. The tax has been criticised by both the Tories and Labour and in the last Tory budget, Kenneth Clarke said, "Inheritance tax is a penalty on thrift, independence and enterprise paid largely by people of modest means who either cannot or do not make careful plans to avoid it." So far, neither party has seriously addressed this. Therefore, there is a strong case for a significant rise in the nil rate threshold to about £400,000 which would mean that the vast majority of people would avoid paying any inheritance tax at all. For those who are not exempt from inheritance tax, it is possible that the Chancellor will extend the potentially exempt transfer period from seven years to 10. This will make financial planning more difficult for those whose estate is worth in excess of the nil rate threshold.
Extra protection for those in need
Low income families and pensioners look set to get a helping hand with the Chancellor announcing improvements to the children's tax credit and the promised integration of child's credit. He is also due to announce further information about the pension credit and the way it is planned to operate so that pensioners are not penalised for their diligence in saving for their old age.
But will this helping hand really provide the support that is needed? Warburton said, "The problem with means tested tax credits is that they inevitably produce high marginal rates of tax as the means testing has effect. The schemes are bound-up in red tape and therefore have poor take-up, particularly among the poorest members of society where they are needed most."
Commenting on benefits for pensioners generally, Warburton said, "The Government and Bank of England together have given us low interest rates which is good for business, but bad news for savers and, of course, pension funds. This is particularly apparent with the very low annuity rates now available which means that many people who have saved for years for their retirement are now looking at substantially less income than they had planned. At the moment, Self-Invested Personal Pension plans have to acquire annuities by the time the member has reached 75. With greater life expectancy, this is too soon to force people into fixing their investments into the present low annuity rate structure. We might, therefore, see the Chancellor increase this to perhaps 80."
Boots have recently announced that the Trustees of their Pension Fund have decided to stop investing in equities and switch into bonds. If other pension funds follow suit, this could have a disastrous impact on the equity market and the ability of companies to raise funds. Part of the problem stems from changes to accounting policies which cause quoted companies to adjust for movements in their pension fund investments through their quoted accounts. To this extent, therefore, Boots are arguably pursuing a prudent policy. It is important, however, that Government policy does not exaggerate this trend. The Chancellor might help to alleviate the position by announcing greater flexibility on the way in which pension funds can invest money for their members.
A stand off is expected when it comes to National Insurance and Stamp Duty
No major changes are expected to National Insurance, other than the continued progress of integration of Income Tax and National Insurance systems. However, the Chancellor is not expected to go as far as absorbing National Insurance into Income Tax because of the political damage that a 32% basic rate would cause.
On Stamp Duty, The Chancellor has probably done enough to dampen down the housing market with successive increases on Stamp Duty on property transactions. For many years there has been a good case to be made for reducing, or eliminating Stamp Duty on share transactions. The UK is now out of line with the rest of the world at a time when improvements in electronic trading enable transactions to be carried out anywhere in the world. The case was ably made by John Major in his one and only Budget Speech in 1990 for Stamp Duty on shares to be abolished and a case could be made with greater force now, than 11 years ago. Much as this change is needed, the political constraints are likely to rule it out this year. At a time when New York is recovering from the terrorist attacks, it would be political dynamite to introduce changes which would inevitably have the effect of sucking business away from New York into London. Hopefully, however, there will be an opportunity to make this change later in this Parliament.
Extra support for business
Businesses suffering in the teetering economy will also be helped. There will be plenty of lobbying for help for those businesses particularly affected by recent events, such as airlines, insurance, tourism and agriculture. However, no significant new announcements to help the agricultural sector are expected. In addition, whilst tourism in London has undoubtedly been hit, elsewhere, it seems to be recovering. Overseas tourists may not be coming here to visit London and Stratford, but there are plenty of British people planning to stay and holiday in the UK this year. One way in which he may be able to alleviate the position would be a temporary reduction in Insurance Premium Tax and Airport Levies. It would certainly be a good PR move.
The Chancellor has also already announced proposals for VAT to be applied at a flat percentage on turnover for small businesses. This month may provide the opportunity for him to explain the results of consultation on this issue and announce his future plans.
Gordon Brown recognises the importance of wealth creation and the role played by enterprise, particularly young businesses, in this process. He also understands the need to raise skill levels. It must be particularly frustrating for him that the Individual Learning Accounts System has had to be suspended as a result of suspected fraud and mis-selling. It is unlikely that he will let the opportunity pass to say what measures are proposed to replace this gap in our system. The CBI has said that it is vital to address the gap between UK productivity and that of our European competitors, let alone the 42% gap we have with the US.
Finally, Corporate Tax is not anticipated to take centre stage. The Chancellor has already talked about changes to Corporate Tax with, in particular, consultation on Research & Development, accounting for intangible assets such as goodwill and know-how and Capital Gains Tax on company disposals. He may announce the results of consultation, but the big changes in this are likely to be held back until the Budget proper in March. There has been consultation on the highly complex area of corporate debt and foreign exchange transactions. Changes are much needed to streamline these tax structures and we can expect an announcement on progress.
Will the Chancellor make a stand on the Euro?
If we are to join the Euro, we can only do so after a two year probationary period akin to our time in the Exchange Rate Mechanism. Given the length of time it will take for a Referendum to be organised, this means that any announcement on the Euro has to be made within the next twelve months or so. With other events going on in the world, an announcement of a Referendum in the Autumn Statement is not expected, but it might give the opportunity for the Chancellor to say whether the UK is currently operating within the five tests he has set for membership, particularly since most of the tests are subjective in nature and, in practice, only he can say whether or not they have been met to his satisfaction.
In short, the gloves are off and the Chancellor is in the ring. But Grant Thornton does not believe that he will be inflicting too much injury. Warburton concluded, "Brown's key objective is to keep the economy moving in the hope that we can avoid the recession which is expected in many other developed countries. He is not going to want to upset those efforts by a tax raising Budget."
GETPAID Selected For European Shared Services Trading Company
The GETPAID® Corporation, a leading supplier of receivables management software and services, has announced the selection of its products by the Swedish multi-national engineering company Alfa Laval - a world leader in separation, heat transfer and fluid handling.
"As a Shared Services organisation we focus on providing Alfa Laval with a competitive advantage in the marketplace by delivering best-in-class services at a competitive price. We believe that GETPAID will enhance our ability to deliver such via the leveraging of best practices and technology," states Jacques Christens, Head of Shared Services in Europe. "Alfa Laval has been using GETPAID since July of this year at our US operation, with great benefits. We selected GETPAID to be a part of our re-engineering programme, in order to improve efficiencies in our administrative processes and therefore increase our customer focus."
"We are pleased to welcome Alfa Laval shared services to our client family," states Dianna Piumelli, president and COO of The GETPAID Corporation. "Alfa Laval is among our extensive client base of over 500 companies who serve as a testament to our products and services, our history demonstrates that we deliver proven results."
The GETPAID product is well suited for global companies; it is multi-lingual and supports transactions in multi-currencies. The GETPAID team of professionals has successfully installed the product in more than seventeen countries, and the system is supported internationally.
Using GETPAID, Alfa Laval has been able to automate many routine tasks, manage account portfolios and facilitate customer service related functions. Companies who implement GETPAID realize substantial and immediate results in terms of productivity, efficiency and tracking. GETPAID can be integrated with any A/R system, and is certified to interface with SAP and Oracle.
About The GETPAID Corporation
The GETPAID Corporation is the leading provider of collection and dispute resolution software used by thousands of commercial collectors in B2B credit departments to manage billions in past due receivables. GETPAID is based in New Jersey, USA, with offices worldwide.
The GETPAID Professional Services team is comprised of experts who deliver installation, system configuration, training and on-going support services to the more than 500 installations worldwide in a wide array of companies, industries and environments.
For more information, contact GETPAID at 01344 887407 (UK) /1-973-463-1500 (US) or visit www.getpaid.co.uk
ASSOCIATION FOR FINANCIAL PROFESSIONALS FORMS STRATEGIC ALLIANCE WITH NATIONAL ASSOCIATION OF CREDIT MANAGEMENT
Contributed by www.collectionindustry.com a Kaulkin Ginsberg Company
November 12, 2001 — Members of the Association for Financial Professionals (AFP) (www.AFPonline.org ), will gain access to a variety of credit management content and discounts on tools through a new alliance with the National Association of Credit Management (NACM) (www.nacm.org ) in the first quarter of 2002.
In addition to the development of a co-branded Web site, the alliance will provide AFP members with discounts on NACM's educational offerings, as well as its Business Credit magazine and various publications. NACM also will present an educational session at The AFP 23rd Annual Conference, scheduled for November 3-6, 2002 in New Orleans. In exchange, NACM's members will receive access to AFP content and obtain discounts on AFP's online tools.
"Business credit is an integral part of the American economy, and credit sources continually change,'' said Jim Kaitz, AFP's president and CEO. "Recently, access to credit has been decreasing. Our new relationship with NACM will provide our members with insight into credit management trends and decision-making, as well as the expertise and tools to support them as they navigate the ever-changing credit landscape.''
NACM Chairman Val Venable, CCE, said, "Credit executives must work hand- in-hand with key corporate treasury decision-makers at their businesses in order to successfully manage their company's working capital. This new alliance with AFP will provide NACM members with a forum to explore subjects that are of mutual interest and concern, and provide a resource for expertise on banking, financial reporting and treasury services.''
About AFP
The Association for Financial Professionals in Bethesda, Maryland, supports more than 14,000 individual members from a wide range of industries throughout all stages of their careers in various aspects of treasury and financial management. AFP is the preferred resource for financial professionals for continuing education, financial tools and publications, career development, certifications, research, representation to legislators and regulators, and the development of industry standards.
About NACM
The National Association of Credit Management (NACM) and its network of Affiliated Associations are the leading resource for business credit information, services and education to 30,000 professionals worldwide. NACM is the premier provider of a full array of services, from business credit reports and industry credit groups, commercial collection and adjustment services to publications and educational conferences, programs and seminars.
FOUR PROMISE NOT TO MISLEAD ON INTEREST FREE ADS
Allied Carpets of Orpington, Furnitureland of Penge, Fairway Furniture of Plymouth and Gregory and Porritts of Bolton have agreed to change adverts for interest free credit after the OFT said that such adverts could mislead the public.
These four businesses swiftly agreed to make the changes after the OFT wrote to them under new Stop Now powers. All four were advertising interest free options or 0% finance deals for their products. However if a lump sum was not paid off in full at the end of the one-year interest free period, interest was charged for the whole of the loan.
The OFT took the view that the adverts broke the law by using the words 'interest free' when the agreement was not genuinely interest free.
In response, the four have told the OFT that they will stop this form of advertising.
John Vickers, Director General of Fair Trading, said:
"I welcome the swift and positive response from these businesses which reflects their desire to comply with the law. Customers may have been misled by these adverts and not realised they could be charged interest during the 'interest free' period. The OFT is aware that other companies continue to advertise in this way. We are pressing a number of them to comply. Those that do not will face action from the OFT."
Under the Stop Now Regulations, the OFT can apply for a Court order against traders who breach or are threatening to breach a number of laws harming the collective interests of consumers covered by those laws. It can seek written assurances in lieu of court action.
The Regulations cover the following areas: doorstep selling, timeshare, unfair contract terms, consumer credit, distance selling, package travel, package holidays and package tours, misleading and comparative advertising, sale of goods rights, TV broadcasting activities and advertising of medicinal products for human use.
The OFT took the view that the use of interest free option or 0% finance in these adverts breached section 7(c) of the Consumer Credit (Advertisements) Regulations 1989. Effectively, Regulation 7(c) bans any advert that implies the consumer can get free credit where in fact he would be liable for contractual charges.
NEW COFACE OPERATION IN CHINA WILL HELP UK EXPORTERS.
The Coface Group, one of the world leaders in credit protection, is strengthening its presence in Asia with the establishment of a Shanghai subsidiary, Coface China; It also launches its @rating Solution, the first worldwide insurable company ratings system, in Beijing. The new operations are expected to bring significant advantages to UK companies, as Britain is already the leading European investor in China and trade between the two countries has increased significantly.
The Coface Group already has a direct presence in Asia - in Hong Kong, India, Japan, Singapore and South Korea - and also has partners in Malaysia, the Philippines, Taiwan and Thailand. In addition, it is present in regions where China has a strong economic interest, including Europe (31 countries) and the US. The new operation will enable the Group to enhance its knowledge of Chinese companies for the benefit of its international credit protection (CreditAlliance) and business information (InfoAlliance) customers.
Due to its size and key economic position in Asia, China is a particularly important strategic market for the UK. Reforms introduced in China over the last two decades, including its application for membership of the World Trade Organisation, have facilitated the globalisation of its economy. Chinese external trade has grown significantly in the last year with UK exports to China increasing by 30% in the first six months of 2001.
In addition, China's entry to the World Trade Organisation (WTO) next month will see a rise in these opportunities, as well as an increase in the challenges facing local companies, for example, ensuring the credit-worthiness of international trading partners will be of prime importance.
To take advantage of the opportunities available and to overcome the risks, companies will need to gain customer confidence, demonstrate their own reliability as trading partners and assess the viability of their commercial partners (prospective or existing). Thanks to the Coface Group's @rating Credit Opinion (and monitoring) and the @rating Quality Label.
Coface China will also be working in partnership with Hua Xia International Business Credit Information (a member of the InfoAlliance network) and Kompass China International Information Service Co. in order to optimise its sources of local information and provide an improved service to customers worldwide. In addition, these partnerships will enable Coface to provide Chinese companies with access to a database comprising 50 000 products and services, as well as company contacts (suppliers or producers) and information reports in more than 70 countries.
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 includes Open Trader (for 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.
Our trader range of insurance products are all Global finance contracts - flexible modular policies that can be adapted to clients' specific requirements, whether they need customer or country risk cover, and adjusts to whatever country or language they may be trading with.
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 41 million companies worldwide.
For further information please contact
Suzanne Teo
UK T: 020 7325 7548
Email: suzanne_teo@cofaceuk.com
Website: www.cofaceuk.com
Move to provide certainty for corporate lenders and borrowers
Patricia Hewitt, Secretary of State for Trade and Industry on the 9 November confirmed the Government's intention that the abolition of administrative receivership would not apply to existing corporate lending agreements.
The Enterprise Bill contains provisions to abolish the right to appoint an administrative receiver in most circumstances. But it will continue to be possible for a secured lender with both a loan contract and a floating charge created before the Bill becomes law, to appoint an administrative receiver in the same way as currently.
Abolishing the right to appoint an administrative receiver will not apply to corporate lending agreements entered into prior to the commencement of the relevant provisions.
Commenting on the proposals, Patricia Hewitt said:
"I am aware of concerns in the business community about how our proposals to restrict the right to appoint administrative receivers will affect existing agreements.
"We recognise that uncertainty of this kind is unwelcome.
"I have therefore taken early steps to address this issue by making clear our intention that the current insolvency law provisions will continue to apply to lending agreements supported by a floating charge where they are entered into prior to the commencement of these aspects of the Enterprise Bill."
The White Papers "Productivity and Enterprise; A World Class Competition Regime" (CM 5233) and "Productivity and Enterprise: Insolvency - A Second Chance" (CM 5234) are both available on the DTI website at:
http://www.dti.gov.uk/cp/ukcompref.htm and
http://www.insolvency.gov.uk/compwp.htm
The existing provisions in relation to administration and administrative receivership are to be found in the Insolvency Act 1986.
The Enterprise White Paper proposals for corporate insolvency are designed to streamline the administration procedure so that it becomes fully effective in all circumstances in the future and to restrict the right to appoint an administrative receiver to holders of floating charges granted in connection with certain transactions in the capital markets.
RIVAL BOWMAN YACHTS LIMITED - IN ADMINISTRATIVE RECEIVERSHIP
The Southampton based boat builders and repairers, Rival Bowman Yachts Limited, has been placed into Administrative Receivership. Ryan Densham, Business Recovery Services Partner at PricewaterhouseCoopers was appointed Joint Administrative Receiver on Tuesday 6 November 2001.
The Bowman yacht range is well known and highly respected and in the past three years a new Starlight range of yachts has been added to the company's product range. The Starlight yacht has been well received by the market.
The company's turnover in the last financial year ended 20 April 2001 totalled £3.7 million and it has recently employed 40 people.
Ryan Densham, partner, PricewaterhouseCoopers said:
"The range of boats this company has are highly regarded in the yachting world. They produce a quality product that is viewed as a market leader particularly now that the new Starlight 46 is in production. This yacht was described in Yachting Monthly as 'a fine yacht in every way. She is beautifully built, looks great, sails well and seems vice free ... she exudes charisma and is a boat to be coveted.'
"At present, trading has stopped whilst a purchaser of the business is being sought. There are currently some boats in production and the facility in Southampton with its crainage and access to the waterfront is well suited to building these very attractive boats. We want to find a purchaser who will be able to take the business forward and to exploit the opportunities offered, in particular, by the new Starlight 46."
Any interest should be directed to Ryan Densham, PricewaterhouseCoopers at the following contact address: 31 Great George Street, Bristol, BS1 5QD, Telephone: 0117 929 1500, Fax: 0117 929 0519.
*** 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 1.44 1.46 Canada 2.29 2.33
Austria 22.51 22.42 Portugal 328.05 326.68
France 10.73 10.68 Belgium 66.01 65.73
Finland 9.72 9.68 Italy 3168.42 3155.14
Germany 3.20 3.18 Sweden 15.24 15.51
Holland 3.60 3.59 Switzerland 2.40 2.40
Spain 272.26 271.12 Ireland 1.28 1.28
Australia 2.78 2.85 Denmark 12.17 12.13
Hong Kong 11.24 11.44 Euro 1.63 1.62
Africa Com 13.95 14.01 Saudi Arabia 5.40 5.50
India 69.27 70.38 Malaysia 5.48 5.57
Singapore 2.64 2.66 Norway 12.89 12.98
Japan 176.16 177.77
TW This week LW Last week.
McCarthy & Stone, the house builder, announced pre-tax profits of 60.5 million pounds, after exceptional charge, on turnover of 167.5 million, for the year ending 31st August 2001. Earnings per share stand at 38.8p.
Telewest Communications announced pre-tax losses of 593 million pounds, on turnover of 973 million, for the nine months ending 30th September 2001.
Vosper Thornycroft, the ship builder, announced pre-tax profits of 15.4 million pounds, on turnover of 200.2 million, for the six months ending 30th September 2001. Earnings per share stand at 34.3p.
Young & Co., the brewer and pub operator, announced pre-tax profits of 5.18 million pounds, after exceptional credit, on turnover of 53.9 million, for the six months ending 30th September 2001. Earnings per share stand at 29p.
Profits at Siemens fell by 76% in the year to the end of September to Euro2.1 billion
Marconi announced pre-tax losses for the latest half year of a huge GBP5.1 billion
Vodafone, the world's biggest mobile-phone operator, announced pre-tax losses of GBP8.4 billion ($12 billion) in the six months to the end of September.
MERGER NEWS
The Secretary of State for Trade and Industry has decided, on the information at present before him, and in accordance with the recommendation of the Director General of Fair Trading, not to refer the following merger/s to the Monopolies and Mergers Commission under the provisions of the Fair Trading Act 1973:Proposed acquisition by Arla Foods Amba of New Zealand Dairy Board's EU consumer dairy products business carried out through New Zealand Milk (UK) Ltd and the right to the "Anchor" brand name.
Proposed acquisition by BG Group plc of Enron Oil & Gas India Limited
Proposed acquisition by BOC Group plc of the vacuum and pressure interests of Smiths Group plc
Completed acquisition by Letts Holdings Ltd of DRBG UK Ltd and Filofax Inc from DRBG LLC
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 Wednesday 5 December The GETPAID Corporation's free half-day seminar Using Technology to Improve Your Cash Flow The Slouth/Windsor Marriott Hotel, Langley, Berkshire, SL3 8PJ Time: 08.00 For more information, call 01344.887.407. 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