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 11
Dated: 19 March 2000
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKBMW DECISION "MAJOR DISAPPOINTMENT" - BYERS
Trade and Industry Secretary Stephen Byers said that the announcement by BMW was a "major disappointment."
Commenting on the outcome of the supervisory board decision, Mr Byers said:
"There was a clear understanding between the Government, the workforce at Rover and BMW that the business strategy which was entered into accepted that break-even would not occur before 2002.
"Clearly losses of £1.3 billion in the last two years cannot be ignored by any company.
"It is however a major disappointment that BMW has failed to deliver on this commitment.
"The prime objective for Government is to see that the new owner of Longbridge is committed to continue car production in the long term.
"I have spoken to Jon Moulton of Alchemy Partners.
"I stressed to him the importance of Longbridge both in terms of those employed directly and those employed indirectly throughout the West Midlands. Mr Moulton said that he wanted to retain car production at Longbridge and that they were not in the business of asset stripping.
"He said it was Alchemy's intention to develop the MG brand at Longbridge.
CBI REACTION TO SALE OF ROVER
Digby Jones, the West-Midlands-born Director-General of the Confederation of British Industry, said last Thursday:
"Car production at Longbridge is vital to the prosperity of the West Midlands. The Longbridge workforce and management team have worked tremendously hard to improve performance and I applaud that. That has been recognised by the prospective new owners in their investment.
"We all want the deal to succeed and for the uncertainty experienced by those directly affected, employees and suppliers alike, to be brought to an end. I am encouraged that the government will be doing all it can to help."
CBI URGES CAUTION ON EARNINGS FIGURES AND WARNS AGAINST A GIVE-AWAY BUDGET
The Confederation of British Industry last Wednesday urged the Bank of England to maintain caution about figures showing rising average earnings.
It repeated warnings that a give-away Budget could stoke inflation, pushing up interest rates and adding to upward pressure on sterling.
Kate Barker, CBI Chief Economic Adviser, said: "The MPC should not overreact to the earnings figures, which have been pushed up by New Year bonuses. It will still take a couple more months for the trend to become clear. The economy is already set to slow after recent rises in interest rates.
"The employment figures highlight the fragile nature of the manufacturing recovery. There have been yet more job losses among exporters, despite output improvements. The Chancellor must not announce too much of a give-away Budget or he could exacerbate the two-speed economy."
ILO unemployment increased by 12000 between the August to October 1999 and November 1999 to January periods. But the claimant count measure decreased slightly (down 6700) between January and February 2000.
Workforce jobs increased by 70,000 between September and December 1999. Manufacturing jobs continued to decline slightly, down by 16,000 between September and December and 109,000 over the year to January 2000.
Average earnings increased by 5.9 percent over the year to the three months ending January 2000, up from 5.5 percent in the fourth quarter of last year. Earnings growth is at its highest level for seven and a half years.
NEW BURDENS FOR EMPLOYERS - FORTHCOMING FATES TAX
There has been much talk of an increase in red tape facing employers recently. But what are the issues?
6 April - Working Families Tax Credit (WFTC) and Disabled Person's Tax Credit (DPTC)
From 6 April, employers will be responsible for administering the WFTC (which last October replaced Family Credit, paid by the Department of Social Security) and DPTC. Apart from the increased administrative burden, the main issue is cash flow - employers will have to pay the tax credits to any qualifying employee and set these off against monthly PAYE deductions and student loan repayments (see below)
If there are large number of low paid employees (which in many sectors will be the case) the employer may be out of pocket and have to apply to the Inland Revenue to claim advance funding a minimum of nine working days before the first relevant pay day. And this is in addition to the requirement to respond quickly to requests from the Tax Credit Office for earnings information when an employee makes a claim. Quite a headache.
6 April - Collection of Student Loans
Many employers are still not fully aware of the implications: it does not just apply to those employed while they are students, but any employee who was once a student and took out a student loan from September 1998 onwards. Employers will now be responsible for collecting and paying over the loan repayments (with penalties for getting it wrong).
6 April - IR35 personal service companies
Employers will have to watch out, when hiring consultants that they are not 'deemed' to be employees. Under the Inland Revenue's revised proposals (following a furore from contractors last year) all the personal service or 'slave' companies' income from 'disguised' employment would be treated as subject to PAYE and NIC with certain minimal allowances.
The 'slave' companies themselves will have to review their working arrangements in detail and where necessary introduce new systems to account for PAYE and NIC.
19 May - Construction Industry Scheme (CIS)
This is the first annual reporting deadline under the new CIS, which came into being last August, though many companies are still not aware that they are 'deemed' contractors. ANY business (not just in the construction industry) that spends, on average, more than £1m per annum on construction operations over a 3-year period (not difficult with property prices so high) are classified as deemed contractors.
They will have to submit annual returns by 19 May showing payments made and tax deducted under both old and new construction schemes. (there were two regimes in force during 1999/2000) Any organisation not complying with the new rules will face penalties of up to £3000 per breach. The Inland Revenue has introduced four new organisational units specifically to police the operation of the new scheme.
Proposals for reform to offer a modern and effective framework of company law were published last week for consultation by the independent Steering Group responsible for the Company Law Review.
The consultation document "Modern Company Law for a Competitive Economy: Developing the Framework" sets out two main themes: an improved and modernised framework for all companies, with some significant proposals for reshaping the rules which govern the way larger companies in particular are operated and controlled; and a simplification and restructuring of the law for small companies, reflecting the Review's commitment to "think small first".
Speaking on behalf of the Steering Group, Bryan Sanderson (Managing Director, BP Amoco) and Colin Perry (Chairman of the CBI Small Companies Council) said:
"We need a system of company law which meets the needs of business, and encourages enterprise and competitiveness in companies both large and small. It must be flexible, clear and accessible. In developing our proposals our aim has been to strip out obsolete provisions and to simplify and clarify the law where possible, as well as to improve transparency and accountability and to encourage companies to recognise the wide range of relationships and know-how on which their success increasingly depends.
"At the heart of our proposals are a statutory statement of the duties of company directors, and improvements in company reporting to ensure that all those with an interest in the company have access to the information they need to understand the business and assess its performance.
"We are inviting views on a proposed statement of directors' duties which, while requiring directors to act in the collective best interests of shareholders, would recognise that this can only be achieved by having due regard for other interests, such as those of employees, customers, suppliers and the community, as well as taking account of the impact of business decisions on the company's reputation and on the environment. The statement would also recognise the need for directors to take account of the long-term as well as the short-term consequences of their decisions.
"Earlier consultation has already shown that company directors would welcome a statement in the form of a set of high level principles which will give them guidance as to what their duties are. We believe that a statement along the lines we propose would help to increase awareness and understanding amongst directors of what the law requires, and so promote good company governance.
"This clarification of directors' duties is underpinned by the increased transparency provided by improved company reporting. Particularly for large companies, our proposals would require publication of more timely and comprehensive information, bringing all companies up to the standards already met by the best. A key feature of our proposals is that public and very large private companies should be required to publish a broad operating and financial review which explains the company's performance, strategy and relationships (for example with employees, customer and suppliers as well as the wider community).
"We have also undertaken a fundamental review of company law to produce a set of rules tailored to the needs of small private companies, which make up the vast majority of the company population. There are three main elements to our approach. Firstly, we are proposing a substantial simplification of the law for all private companies. Secondly, within this overall framework we have designed a set of provisions with the needs of small private companies (and particularly those companies with a very small number of shareholders) specifically in mind. Thirdly, we have drawn up detailed proposals for a simpler form of reporting and accounting for small companies. This would provide an accounting format tailored to their needs, and would greatly lighten the burden of the present statutory audit requirements.
"This document takes forward the work of the Review across a very broad front, building on the consultation which we carried out last year. Following on from this present consultation, we envisage a further major consultation exercise towards the end of this year, leading to our final report to Ministers in Spring 2001."
The present consultation document "Modern Company Law for a Competitive Economy: Developing the Framework" is also available on the website. Alternatively, copies can be obtained by telephoning 0870 1502 500.
Comments are invited on the proposals concerning small private companies by 15 June 2000; and on the remainder of the document by 28 July 2000.
The members of the Company Law Review Steering Group are:
Modern Company Law for a Competitive Economy Developing the Framework
http://www.dti.gov.uk/cld/review.htm
Summary of Main Proposals
Directors
The consultation document:
Shareholders
There are proposals to:
Reporting and Accounting for Large Companies
In summary, it is proposed that listed companies should prepare:
There are proposals to widen both the scope of audit and the range of auditors' liability. This would be balanced by a removal of the present bar on auditors agreeing a limit on their liability with the company and clarification of the law on contributory fault by companies.
Small and Private Companies
The document examines proposals for simplifying the law for private companies generally, by shortening minimum notice periods for meetings, allowing companies to relax the requirements for resolutions in writing, further simplifying the capital maintenance rules, relaxing the restrictions on the powers of directors to issue shares, removing the requirement to have a company secretary, making provision for arbitration of shareholder disputes and simplifying the model constitution (Table A).
To this would be added a regime designed specifically for small companies, which would apply automatically on formation unless excluded. This would be based on the existing "elective" regime which currently enables private companies to opt out of certain requirements, but requires a specific decision to do so.
The document also invites views on whether the law can be further simplified for "owner-managed" companies (ie companies where the owners and directors are the same people). It puts forward a number of possible options which could be pursued further if there is support for them on consultation.
For small company reporting, it is proposed that:
Additional proposals
There are also proposals to:
UK WRITES OFF MAURITANIAN DEBT - BYERS
Stephen Byers, the Secretary of State for Trade and Industry, on the 17 March announced that the UK had agreed to provide 100% relief on the entire debt owed to ECGD by Mauritania. This is the first formal implementation of the UK's commitment to provide comprehensive debt relief for the poorest countries.
At a meeting of Mauritania's official creditors at the Paris Club, the UK signed up to a multilateral agreement which provides relief on 90% of that country's debt. The UK will, on a unilateral basis, go beyond this.
Mr Byers said:
"The UK has made a commitment to relieve the debt burden of the Heavily Indebted Poor Countries. Our announcement demonstrates that we are serious in this intention. Following the agreement reached in Paris, Mauritania's obligation to repay over US$11 million of export credit debt to ECGD will be removed. We are not expecting to have to ask the country to make any further payments.
"I am delighted that the UK has once again led the way in encouraging the resources of the poorest to be diverted from debt repayment to healthcare and education.
"Release of this debt burden will enable Mauritania to inject more money into its poverty reduction programme, a key feature of the HIPC initiative. This should lead to better healthcare facilities and education for the country's poor."
The debts affected by this announcement relate to an oil refinery for which finance had been underwritten by ECGD some time ago.
On 21 December 1999 the Chancellor of the Exchequer, Gordon Brown, pledged to lift the burden of debt owed to the UK by the world's poorest countries. This commitment covered all debt owed to ECGD by the 41 Heavily Indebted Poor Countries (HIPCs).
With other creditor nations, the UK negotiates, through ECGD and HM Treasury, the rescheduling of international trade credit debt at the Paris Club, an informal body of official creditors. The Paris Club has agreed to reduce the debt burdens of the HIPCs once certain eligibility criteria have been reached. The UK, for its part, will agree to write off 100% of HIPC debts as these criteria are satisfied.
LIDDELL: LET'S SEIZE OPPORTUNITIES IN CZECH REPUBLIC
Europe Minister launches initiative to boost UK exports and investment
European Competitiveness Minister Helen Liddell last week urged UK firms to grasp new opportunities for business at the Prague launch of Opportunity Czech Republic.
To underline the Government's support for UK trade and investment in the Czech Republic, Mrs Liddell is visiting Prague to promote British goods and services.
Mrs Liddell said it was important that British exporters and investors did not lag behind their competitors in winning new business in a rapidly developing market.
She said:
"The UK supports EU enlargement not just to heal the divisions of the past. It also makes sound business sense. The Czech Republic's entry into the European Union will provide great opportunities for British companies"
"With 10 million customers at the heart of Europe, UK companies need to be here in the Czech Republic now. I want to see the same goods on the shelves in Prague as in Preston or Pontypridd"
"That is why the Czech Republic is one of the countries selected by British Trade International for a major trade and investment promotional initiative"
The Minister also praised the Czech Republic's ambitious package of economic reforms:
"Economic reform is vital for increased prosperity, more jobs and greater fairness across Europe. It is as important in the Czech Republic as in the fifteen EU member states"
"To make the most of an enlarged single market of nearly 500 million customers, the Czech Republic and the other EU candidates must ensure that their businesses can compete with the rest of Europe"
"My visit to Prague comes in the run-up to the European Council in Lisbon. I look forward to exchanging ideas with the Czech Government on how to put reform into practice"
The Launch of Opportunity Czech Republic will feature exhibits by major UK firms including Bovis, BT, Shell, Tesco and National Power.
Mrs Liddell added:
"It is great to see the household names like Tesco already thriving in the Czech Republic. I want to see small and medium size business sharing in the rewards. They are the companies that will power future job creation across Europe"
Mrs Liddell will tomorrow open the Prague office of Ricardo Consulting Engineers, a High Tech automotive design company winning orders in the Czech Republic.
The UK is third in the global league of major investors in the Czech Republic with investments totalling approximately US$670 million. The Czech Republic is the 33rd largest customer for British exports, worth £740 million in 1999.
The Czech Republic is one of a dozen key target markets (along with Poland and Hungary) around the world that have been selected by British Trade International for special promotion. UK is encouraged to focus its attention on these markets. These three central European markets are the focus of British Trade International's Opportunities In Central Europe trade and investment campaign. The campaign was launched just over a year ago by the then Trade Minister Brian Wilson.
*** Forthcoming Creditors Meetings ***
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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 20/03/2000 to 28/03/2000 Number of Creditor meetings : 170 Section Company Time Venue 138 Scotland - Interim Liquidator calling Creditors Meeting 20/03/2000 Scotmec Industrial Ltd 03.00 pm Glasgow 21/03/2000 Gasheat Services (Inverclyde) Ltd 12.00 pm Glasgow Portcroft Ltd 12.00 pm Edinburgh 22/03/2000 Almar Holdings Ltd 10.00 am Glasgow 23/03/2000 Scotch on the Rocks Ltd 11.00 am Paisley 28/03/2000 ACG Fabrication Ltd 11.00 am Dundee Acrosstype Ltd 10.00 am Aberdeen Riverbrae Construction Ltd 11.30 am Glasgow SMC Fabrications Ltd 11.00 am Glasgow 23 Administrator Calling a meeting of Creditors 21/03/2000 Velocity Developments Ltd 11.00 am Birmingham 23/03/2000 British Boxing Board of Control Ltd 11.00 am London 48 Receiver calling unsecured Creditors Meeting 20/03/2000 H R Metals Ltd 11.00 am Birmingham Style Cut Garments Ltd 11.00 am Watford 22/03/2000 Truck Centre Ltd - The 02.15 pm Newport Pagnell 28/03/2000 Jebcorp Trading Ltd 12.00 pm London 95 Members converting to Creditors Voluntary Liquidation 23/03/2000 Ariaton Ltd 12.00 pm Chatham Criaton Ltd 11.00 am Chatham 98 Creditors Voluntary Liquidations 20/03/2000 2000 Electro Services Ltd 12.00 pm London A W Heating Spares & Controls Ltd 12.00 pm Reading Albright Construction Ltd 11.00 am Brentwood B S Russell Plant (Sales) Ltd 11.00 am Maidstone Candles + Ltd 11.30 am Brighton Carlton Construction & Demolition Ltd 11.00 am Nottingham Chatkarn (Blackpool) Ltd 02.30 pm Blackpool Chatkarn Ltd 02.30 pm Blackpool Consolidata Holdings Ltd 11.30 am Cheadle Culloden Engineering Ltd 10.30 am Aberdeen D M Futures Ltd 11.00 am London Dalna Ltd 03.30 pm London Daniel Douglas Ltd 03.00 pm London Earthworks Scotland Ltd 03.45 pm Glasgow Gangway Clothing Ltd 12.00 pm London Goldcrest Restaurants Ltd 11.30 am London Hurst Production Services Ltd 11.00 am Leicester Primet Ltd 11.30 am Manchester S3 Welding & Fabrication Ltd 11.00 am Sheffield Sky Air Cargo Services UK Ltd 11.00 am London Sports Media Presentation Ltd 11.45 am London Tenderprime Ltd 02.15 pm Swindon Yard Shoes Ltd 03.00 pm London 21/03/2000 A C Infrared Ltd 11.45 am Croydon Auld Bros (Distribution) Ltd 11.30 am London Aztec Footwear Ltd 03.00 pm Peterborough Braemoor Ltd 12.00 pm Stockport Brothock Cleaners Ltd 02.30 pm Dundee Castle Flooring Ltd 11.00 am London Corbetts Couriers Ltd 01.30 pm Cheltenham Cornelly Sales Ltd 11.30 am Edgware D S B Photographic Services Ltd 10.00 am Glasgow Dancing Fleas Productions Ltd 11.45 am London ETS (Transport & Storage) Ltd 11.30 am London Elfinsign Ltd 03.00 pm London Haverstore Ltd 02.30 pm Cambridge Helvetex Ltd 10.30 am Birmingham Heritage Stone Ltd 10.00 am Hamilton Inter-Associates Ltd 11.00 am Leicester Knott Quest Ltd 10.30 am Sheffield Lacara Ltd 10.30 am London Mann Garments Ltd 10.30 am Leicester Microtech Engineering Ltd 12.30 pm Gorleston-on-Se PJ Peripherals Ltd 11.00 am Hove Panel Shop Ltd - The 10.15 am Worthing Platinum Systems Ltd 12.00 pm Inverness Prekards Ltd 10.30 am Exeter Premier Contractors (Electrical) Ltd 11.15 am Bradford Regional Thai Taste Ltd 02.30 pm Paddington Southberry Hotel Ltd 11.00 am Bristol Sport & Leisure Publications Ltd 12.00 pm London TRT UK Ltd 12.00 pm Sandiacre Tuftons (Financial Services) Ltd 11.30 am Maidstone Walkley Clogs (Elland) Ltd 10.30 am Halifax White Village Properties Ltd 11.30 am Sheffield White Waghorn Consultancy Ltd 02.30 pm London Woodborough Ltd 11.30 am Manchester 22/03/2000 Angel Restaurants Ltd 11.00 am Glasgow Arzt Computer Solutions Ltd 03.00 pm Shrewsbury Brunel Demolition Ltd 12.00 pm Reading Clear Dimensions Ltd 02.30 pm Eastbourne Dafen Construction Ltd 10.00 am Swansea Devomet Ltd 11.30 am Southampton Directional Drilling Supplies Ltd 11.30 am Ipswich E K Packaging Ltd 12.00 pm Nottingham Engineered Underground Solutions Ltd 11.30 am Ipswich Fleet Recruitment (Solent) Ltd 11.00 am Southampton Forestcairn Ltd 11.00 am Gosforth Gatwick Civil Engineering Ltd 11.30 am Crawley Integrated Screeding Ltd 11.00 am London Mike Ayres & Co Ltd 10.00 am Sheffield PRA Communications Ltd 11.00 am Birmingham Progressive Telecom Tech Serv Ltd 11.00 am Derby Riki Tik Productions Ltd 11.00 am London Saturnian Ltd 11.30 am Leeds Shopkeepers Agency Ltd - The 11.00 am Manchester Trimach Ltd 03.00 pm Nottingham Wellbank Cars Ltd 12.00 pm market Deeping 23/03/2000 Alex Gardber Glazing Contracts Ltd 11.30 am Walsall Autoradio Ltd 12.00 pm London Careheath Ltd 03.00 pm London Carleton Developments Ltd 10.15 am Bately Chrome House Ltd 11.30 am Southampton Coral Trading Ltd 02.30 pm London Gilwood Produce Ltd 11.30 am Liverpool I D Contracts Ltd 10.30 am Coventry JSK (UK) Ltd 11.00 am Derby Jackpot Promotions Ltd 11.30 am Coventry Maiden-Chef Ltd 12.00 pm London Manage & Ind Training Serv Ltd 12.45 pm Broughton Marvor Ltd 10.15 am Peterborough Nova Structures Ltd 11.30 am Royston Originet Ltd 03.45 pm Southampton R S B Construction Ltd 11.30 am Birmingham Rivendell (Fabricat & Sheet Metal) Ltd 11.00 am London Synpro machine Initiative Ltd 11.30 am Preston Techlink Ltd 11.30 am Lutterworth Topflex Designs Ltd 10.30 am London Warwick Business Services Ltd 11.00 am Manchester Watchword Business Services Ltd 02.30 pm London Watnets Soft Furnishings Ltd 11.30 am Hornchurch Watts New Generations Ltd 12.00 pm Glasgow 24/03/2000 A S Mobile Services Ltd 11.00 am Chatham Allgas (Coventry) Ltd 11.30 am Lutterworth Alliance Moulds Ltd 11.00 am Hale Black Diamond (Nottingham) Ltd 11.00 am Nottingham C T I Event Management Ltd 02.00 pm London Condor Global Forwarding Services Ltd 11.00 am Northwich Corkfield Training Ltd 11.00 am Bristol Dantona Ltd 04.00 pm London ET & T (UK) Ltd 10.15 am London ETS (Warwick) Ltd 10.30 am Warwick Kenneth Gardner Ltd 11.00 am Lancaster Kirk Industrial Plastics Ltd 03.30 pm Hamilton Knoll Construction Ltd 11.00 am Southend-on-Sea Local Solution Ltd - The 11.00 am London London Media Print Ltd 12.00 pm London M J D Roofing (New Milton) Ltd 11.45 am London Mericom Ltd 11.00 am London Nightworld Ltd 10.30 am Nottingham PTS Construction Ltd 03.30 pm Warwick Paratex Ltd 10.00 am Rotherham Red Giant Promotions Ltd 12.00 pm Manchester Scotts Ltd 10.30 am Halifax Spices of Bengal (Bangladeshi Cuis) Lt 03.00 pm Sevenoaks Statefirst Ltd 03.00 pm Northwood Steadfast Ltd 02.30 pm London Taktyle Signs & Labels Ltd 03.00 pm Cambridge Taste of Bengal (Bangladeshi Cuis) Ltd 11.00 am Sevenoaks Teleconferencing UK Ltd 10.30 am Birmingham UK Essentials Ltd 03.30 pm Billericay Vencra Ltd 11.00 am Manchester World Soccer Ltd 11.00 am Glasgow Yorkshire Dales Premier Waters Ltd 10.30 am Leeds 27/03/2000 Abercon House Ltd 02.30 pm London Academy Glass & Glazing Co Ltd 12.00 pm London Adhesive Paper Products Ltd 11.00 am London Extreme Autos Ltd 11.00 am Chelmsford Hale Office Supplies Ltd 11.30 am Altrincham Harbour & Coastal Engineering Ltd 02.30 pm Plymouth Pile Breaker (UK) Ltd 02.30 pm Plymouth Pile Breaker Ltd 02.30 pm Plymouth Response Courier Systems Ltd 11.30 am London Y K Construction Ltd 11.30 am Walsall 28/03/2000 Altafield Ltd 12.00 pm London Chiltern Furniture (1998) Ltd 11.00 am Harpenden Crown Plastics Ltd 02.00 pm London Cyclone Marketing Ltd 02.00 pm Halesowen Le Switzerland Watch Super Serv Ltd 11.30 am London Norman J Drew & Partners Ltd 11.45 am Croydon Wavertech Ltd 12.00 pm Glasgow West Four Deco Ltd 02.00 pm Harpenden
TW LW TW LW
USA 1.57 1.58 Canada 2.32 2.31
Austria 22.41 22.62 Portugal 326.56 331.90
France 10.68 10.85 Belgium 65.70 66.32
Finland 9.68 9.84 Italy 3153.97 3215.55
Germany 3.18 3.23 Sweden 13.71 13.97
Holland 3.58 3.64 Switzerland 2.62 2.65
Spain 271.03 275.46 Ireland 1.28 1.30
Australia 2.59 2.61 Denmark 12.13 12.32
Hong Kong 12.27 12.32 Euro 1.62 1.65
Africa Com 10.19 10.32 Saudi Arabia 5.91 5.93
India 68.69 68.95 Malaysia 5.99 6.01
Singapore 2.70 2.71 Norway 13.29 13.39
Japan 167.15 169.81
TW This week LW Last week.
Edinburgh Oil & Gas announced pre-tax losses of 0.246 million pounds, on turnover of 4.48 million, for the year ending 31st December 1999.
James Fisher announced pre-tax profits of 6.28 million pounds, after exceptional charge, on turnover of 68.1 million, for the year ending 31st December 1999. Earnings per share stand at 37.41p.
Haden MacLellan, the engineering group, announced pre-tax losses of 48.6 million pounds, after exceptional charge, on turnover of 437.4 million.
Hepworth, the heating and building materials group announced pre-tax profits of 76.2 million pounds, on turnover of 651 million, for the year ending 31st December 1999. Earnings per share stand at 22.5p.
Perry announced pre-tax profits of 4.89 million pounds, after exceptional credit, on turnover of 446.5 million, for the year ending 31st December 1999. Earnings per share stand at 12.9p.
The UK Government government has announced launch aid worth 530m pounds ($835m) to BAE Systems to develop wings for Airbus Industrie's proposed A3XX superjumbo. The new aircraft, with up to 650 seats, would challenge Boeing's monopoly in large jets, but it has yet to win any firm order from airlines.
Boeing and the American government both expressed concern over the state aid to BAE. Meanwhile, it was reported that Boeing had suspended research on a new range of passenger jets, the 20XX programme; and production delays lengthened as a strike by some 15,000 engineers over pay and conditions remained unresolved.
The chief executive of troubled British Airways, Bob Ayling, resigned. Until the airline finds a new boss, Lord Marshall, BA's chairman and Mr Ayling's predecessor in the job, will take temporary charge again.
BP Amoco announced a deal to sell the $7 billion Alaskan oil operations of Atlantic Richfield to Phillips Petroleum. The motive for the sale was to persuade America's competition watchdogs that BP Amoco's $30 billion merger with Arco should proceed.
BP Amoco also agreed to buy Burmah Castrol, the UK-based lubricants firm, for 3 billion pounds ($4.7 billion) to fill a gap in its operations since the end of a joint venture with Mobil.
Source - The Economist
MERGER CLEARANCE
There is no merger news this week.
lastminute.com made its stockmarkete debut with an initial public offering that, at the end of the first day's trading, valued the company at 732m pounds ($1.15 billion). Lastminute.com, which raised 114m pounds for investment, is expected to start making a profit no earlier than 2004.
TOP EXECUTIVES SHUN INTERNET RECRUITMENT
KPMG News 01 March 2000
Web-site experts are being challenged to sort out the problems which are preventing the Internet realise its full potential in the world of recruitment.
One local recruitment expert believes that it could be 5-10 years before the real business high-fliers join the stampede of people circulating their CV details on-line.
Stephen Bryan, a director with KPMG's Executive Search & Selection team in Birmingham, believes that this is one area the Internet has left behind. He does not see that changing until confidence in the level of integrity and confidentiality of Internet recruitment sites is improved.
Mr Bryan commented: "As far as the most senior executive positions are concerned, the Internet has a lot of catching up to do. The people needed to fill these positions are already senior decision-makers. For them to bring their decision to look for a new job into the public domain via the Internet could have massive repercussions for their current employer. This would be particularly true of a plc where such an announcement, if it became public, could affect the company share price."
The problem arises from the fact that many of these people are used to being head-hunted and appreciate the integrity and confidentiality which the head-hunting process guarantees. Currently, the Internet cannot provide the same level of security - a fact reinforced by the new Number 10 Downing Street web-site being hacked into within two weeks of its launch.
Mr Bryan added: "The Internet is proving extremely valuable at the lower levels of recruitment, providing a constant supply of job candidates. Some companies are now trying to get the high-fliers on to their sites but this will remain an unenviable task until the perceptions over security issues are addressed."
"There is also a certain reluctance amongst the senior executives themselves who have become used to being sought and feted by head-hunters for a specific position. In their eyes, simply circulating their details on the Internet will remove one of the trappings of success - being singled out for a current vacancy. Even if that reluctance was overcome, there is still the problem that the Internet is unable to give a full impression of an individual's breadth and depth of experience."
"It is intriguing that in these days of rapid technological advances, one area can have been so left behind. Unless huge strides are made in the area of Internet security, it is going to be some time, probably 5-10 years, before senior executives can be assured that this is a viable avenue for them."
20 March 2000 Wessex branch meeting of the ICM - AGM The Southampton Yacht Club 1 Channel Way, Southampton 7.00pm for 7.30pm Sponsored by Croner Publications 17 April 2000 Wessex branch meeting of the ICM The Budget Presentation by Ian Nichol from PricewaterhouseCoopers The Southampton Yacht Club 1 Channel Way, Southampton 7.00pm for 7.30pm 26th April 2000 Companies House Seminar Pine Lodge Hotel Kidderminster Road Bromsgrove B61 9AB Registration 5.30pm - 6.00pm Seminars include a question and answer session and buffet 6.00pm - 9.00pm Cost 37.60 pounds Contact Tamara Bent tbent@companieshouse.gov.uk +44 (0)29 20380911 23 May 2000 The ICM National Conference and Exhibition Cumberland Hotel, Marble Arch, London W1 Credit Management in the Electronic Age For more details of the Conference or to exhibit phone the ICM Training department on 01780-722907 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).
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