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: 71
Dated: July 19 1998
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKUK TARGET RATES FOR MAJOR INVESTMENT PROJECT SHOW LITTLE CHANGE - ACA / CBI SURVEY
British firms still set demanding target rates for major capital investment projects, despite the UK's recent good inflation performance, according to a major report out last week. The average rates of return set by companies for key investment decisions are very similar to a previous CBI survey in 1994. However there were fewer examples of targets for investment return being set at over 20 per cent, and there is also evidence that target rates are not applied rigidly.
The report: "Target Practice: How Companies Approach their Key Investment Decisions" - is based on the results of a survey carried out by the Association of Consulting Actuaries (ACA) and the Confederation of British Industry. Aimed at firms with a turnover over #20 million, it sought information on how they took major capital investment decisions, and what quantitative procedures were used. 326 firms responded to the survey.
The survey shows that target rates and other criteria affecting investment decisions are set at more demanding levels than would be expected on the basis of underlying theory. Payback periods were generally between two to four years, internal rate of return targets averaged 17.1 per cent, and net present value discount rates averaged 11.9 per cent.
However this may be caused by the survey's focus on major investment decisions - some respondents suggest that lower rates are used for appraisal of more everyday projects. And there is evidence that achievement of target rates is not the sole criterion for making a decision - only 16 per cent of companies said that they always rejected projects which did not meet their target.
Commenting on the survey, Kate Barker, CBI Chief Economic Adviser, said: "The survey gives mixed messages about the process of investment appraisal. Only just over half of the smaller firms responding use a quantitative procedure. However, although some target rates remain high, it is encouraging to note that in the majority of cases these rates are applied flexibly, and that over two-thirds of respondents use different target rates depending on the nature of the project. This suggests a quite subtle use of target rates in the decision-making process in many UK firms."
Chris Waites, Chairman of the ACA's Corporate Finance and Risk Committee, added:
"Actuaries are increasingly involved in corporate finance as well as the more traditional fields of insurance and pensions, and we are delighted to have had the opportunity to work together with the CBI on this survey. It is interesting to note that EVA and other more sophisticated approaches are beginning to be used more widely. We do have some concerns, however, about the very wide range of hurdle rates in common use and the high rates used by some companies. If, as we suspect, rates are set high to provide a generalised allowance for risk, then poor quality decisions may result in speculative projects favoured at the cost of those offering a more secure return."
The survey reaffirms that investment appraisal techniques are not rigorously quantitative and systematically applied. Twenty-three per cent of companies have no formal quantitative procedure at all, and significant numbers, particularly among smaller firms, ignore cashflow based methods and rely on profit based methods instead which may yield misleading results.
Only 29 per cent of companies regularly carry out post-investment appraisal to identify which projects actually achieved their planned financial objectives, suggesting that opportunities to improve the planning process in the future may be being missed. Respondents reported that where it is carried out, targets are generally achieved.
Just over a quarter of companies reported that their plans for investment are continually or frequently constrained by lack of available capital. However the largest grouping - 42 per cent - said that insufficient capital was seldom or never a constraint.
The firms surveyed do not support the view that the changes made by the Chancellor to ACT tax credits and corporation tax in the July 1997 Budget will boost investment. However the survey did not test the Treasury's expectation that the tax changes will encourage firms to take a long-term view, and it is likely to be some time before firms fully adjust to the new tax regime.
Copies of "Target Practice" are available from: CBI Publication Sales, 103, New Oxford St, London WC1A 1DU. Tel : 0171 395 8071.
The survey was sent earlier this year to UK companies with a turnover in excess of #20 million. Of the 326 responses, 291 provided an annual capital expenditure figure. The total of their capital spend is #19.2 billion, representing a significant proportion of UK company capital investment. The combined turnover of the companies responding to the survey is #110 billion, and they employ 880,000 people. They cover a wide range of different industrial sectors and are a good cross-section of UK companies.
The Association of Consulting Actuaries (ACA) draws its membership from 1100 individual consulting actuaries working in some 80 firms throughout the United Kingdom. Actuaries and actuarial techniques are being used increasingly in the analysis of investment projects of all types.
EMPLOYMENT AND VACANCIES UP BUT EARNINGS PRESSURE PERSISTS - SMITH
Employment Minister, Andrew Smith said last week:
" It's good news that employment is at its highest rate for 8 years, and that the economy continues to generate historically high levels of new vacancies - 223,800 notified to jobcentres this month. It is encouraging that the broad measure of unemployment (ILO) fell by 54,000 (down 0.1% to 6.3%) to 1.81 million, taking it to the lowest rate and level since the Labour Force Survey began in 1984. The claimant count rate remained unchanged at 4.8%, despite a slight rise of 700 in June.
" The overall picture confirms that the labour market has slowed considerably in recent months.
" The earnings figures underline the importance of employers showing responsibility on pay. The rise to 5.4% in April - driven up particularly by increases in the private sector - is a cause for concern. Although some of this increase is undoubtedly a result of the high level of bonuses paid in March and April, this level of earnings growth - and its increases over the last quarter - is still too high."
BACKGROUND TO LABOUR MARKET STATISTICS: JULY 1998
Employment growth continues at a slower rate but earnings growth has picked up.
LFS employment grew by 36 thousand in the latest quarter - a slower rate than last year. ILO unemployment also fell but later figures for the claimant count show tiny rises and suggest that the labour market may have slowed further. Earnings growth was 5.4% in the 3 months to April - the highest level in this economic recovery. Increased bonuses were a factor.
Latest LFS employment growth continues but is down on last year.
The Act will enhance and give greater rights to individuals, including a new express right to prevent data being used for direct marketing, and extends data protection law to cover some manual records.
In future, businesses will benefit from common standards of data protection within the European Union.
Lord Williams said:
"This new Act gives effect to an EC Directive which we are bound to
implement by statute.
"Data protection is about protecting citizens' personal privacy and a key objective has been to develop a regime which is workable and fully protects individuals' personal information - without putting unnecessary additional burdens on business.
"The Act also recognises the importance of freedom of expression and contains exemptions to ensure that journalism and artistic and literary expression are not put at risk by data protection rules.
"Data protection affects a huge range of organisations in the public and private sectors. The Government has taken great care to consult representative organisations to ensure that we produced a workable law."
The Act will bring the requirements of the EC Data Protection Directive into UK law.
The Directive comes into force on 24 October. However, subordinate legislation needs to be in place before the Act can be implemented and this is unlikely to be before the end of the year at the earliest.
With the general framework clear, businesses can plan ahead for when the new Act comes into force said Lord Williams. The main provisions will be phased in over three years.
The main changes from current legislation include:
PRIVACY THREATENED BY NEW DATABASES
Elizabeth France, the Data Protection Registrar has warned against the introduction of 'look-up' services in the UK. These services already well established in the USA, bring together extensive collections of personal data about ordinary citizens and make them available to anyone on payment of a fee.
One way in which they can be developed is by routinely scanning newspapers to extract information on those featured. Amongst the threats this poses is the creation of an, at least partial, register of criminal convictions outside the controls that apply to the official record.
In launching her Annual Report last week Elizabeth France commented;
"Such collections, built up for no specific purpose beyond that someone, be it a family member, a law enforcement authority, a journalist or a private investigator might be prepared one day to pay for access to whatever is held on a particular individual, are very much what the Data Protection Act sets out to restrict. We must take care to ensure that 'look up' type services do not develop in the UK unless they can comply fully with both the current and new Data Protection Acts".
The specific warning about 'look up' services comes in the course of more general concerns that the capabilities and costs of IT systems are no longer the constraints on processing that they once were. In this context Elizabeth France suggested:
"What was once unthinkable no longer is. New IT systems can of course, bring benefits to individuals but they can also threaten the privacy of their personal life".
The Annual Report goes on to discuss examples where new databases might pose such a threat. These inlaid:
SOLICITOR'S FIXED COSTS
Solicitors` fixed costs in undefended civil actions are under scrutiny by the Lord Chancellor's Department, which has just published a consultation paper outlining proposed changes in the rules covering County Court and High Court actions. Comments on the proposals must be received by the 17th August 1998. http://ww.open.gov.uk/lcd/consult/civ-just/fixed-cofr.htm
LAWYERS FOR YOUR BUSINESS
This scheme, operated by The Law Society, offers a free first consultation with a solicitor from over 1,700 practices countrywide to diagnose potential problems and suggest future action.
Further details can be obtained from: Lawyers for Your Business, The Law Society, 50-52 Chancery Lane, London WC2A 1SX. Telephone 0171 405 9075
LORD CLINTON-DAVIS PREPARES FOR TAKE-OFF IN BRAZIL
Minister for Trade, Lord Clinton-Davis will visit Brazil to boost trade and investment particularly in the aerospace sector, on a three day trip leaving on Wednesday 22 July.
Lord Clinton-Davis said:
"Brazil is the UK's most important trading partner in Latin America. It is one of the fastest growing of our export markets and was identified as a target market by the Export Forum.
"However many UK companies are still unaware of the level of development and sophistication in Brazil or that the UK is one of the largest investors in this market. I hope that our new Brazil Initiative and the DTI's 'Link Into Latin America' campaign will remedy this.
"As the Brazilian market continues to open and grow there will be even more potential to increase our exports and our market share. This is a major window of opportunity and we must take advantage of it."
Lord Clinton-Davis will be accompanied on his visit by seven aerospace companies, including Rolls Royce, The General Electrical Company and GKN Westland.
"The UK aerospace industry is the third largest in the world by turnover. Eleven UK companies feature in the world's top 100 aerospace companies. But as US industry restructures, the UK needs to be lean and fit to compete with, and be credible partners for, the new US giants. In the UK and in Europe both industry and government needs to take action. I hope that we can use this visit to build on and strengthen the relationship between the UK and Brazilian aerospace industries."
Lord Clinton-Davis will arrive in Brazil on Wednesday 22 July. On Wednesday 22 July the Minister will visit Motores Rolls Royce and avionics company Elebra. On Thursday 23 July he will visit Centro Tecnico Aeronautica (CTA), the Department of Research and Development of the Brazilian Ministry of Aeronautics. He will also visit and speak at a lunch at Embraer, Brazil's sole aircraft manufacturer. In the afternoon he will call on Sr Manuel Fernandes, the Mayor of Sao Jose dos Campos. He will also lay a foundation stone of BBA's friction materials factory and visit Bidim, BBA's adjoining factory. In the evening he will speak at an official dinner. On Friday 24 July the Minister will visit the regional airline Tam. He will also speak at an Aerospace Special Interest lunch co-hosted by the British Chamber of Commerce and the Consul General. In the afternoon the Minister will fly to Rio de Janeiro.
Lord Clinton-Davis will be accompanied by the following delegation:
Peter Woolfrey Smiths Industries
Jacques Arnold The General Electric Company plc
Phil Burton The General Electric Company plc
Mike Boden Rolls Royce International Limitada
Bob Press GKN Westland
Marie-Christine Kerr Paribas
Steve St Clair Diefenbach Elkins Davies Baron
Brazil is the UK's most important trading partner in Latin America. UK exports have trebled between 1992 and 1997 making Brazil one of our fastest growing export markets. The UK market share was around 2.6% in 1996.
Around 92% of UK exports to Brazil are manufactured goods. In 1997 the UK's top five exports to Brazil were:
Sector Exports in 1997 #m % Change over 1996 Other Transport equipment #137 +102 Road Vehicles #124 + 22 Organic Chemicals # 83 - 3 General Industrial Machinery # 72 + 75 Power Generation Machinery # 68 + 36During the State Visit of President Cardoso in December 1997, a Joint Action Plan was signed with the Prime Minister. This covers all aspects of the UK's bilateral and multilateral relations with Brazil. The Plan supports the establishment of a Brazilian British Partnership whose aim is to promote trade and investment in both directions.
Brazil is one of the DTI's ten target markets, identified as a fast-growing and under-exploited market, following the Export Forum's report 'Towards an Export Initiative' published in November 1997.
The DTI 'Link Into Latin America' campaign will be relaunched this year. There will be a major conference in Birmingham in November which will give a practical introduction to doing business in Brazil to 300 small and medium sized enterprises and multipliers.
# = pounds sterling
GLENDA JACKSON ANNOUNCES TRADE MISSION TO ARGENTINA
Transport Minister Glenda Jackson is leading a high level delegation to Argentina to promote and demonstrate UK business capabilities in the region. The delegation will also evaluate the business opportunities available and explore the scope for co-operation and partnership.
The delegation will include representatives from 14 British companies with interests in the transport sector, many of whom are already active in Argentina and some of whom are relatively new to the market.
The issue of increased air services between the two countries will also be discussed.
Ms Jackson said:
"I am looking forward to leading my first trade mission to Argentina and to supporting the efforts of British companies, with expertise in the transport sector, wishing to develop closer links with their Argentine partners.
"British companies already play an important role in the transport industry world-wide, and I am confident that the representatives on this particular mission will use the opportunity to reinforce their skills and expertise and forge lasting and beneficial links.
"The UK Government is committed to strengthening relations between Britain and Argentina and, by offering my support to the mission, I very much hope that we can use this opportunity to develop closer co-operation within the field of transport."
The Mission has been organised by the Transport Export Promotion Unit of DETR, in liaison with the British Embassy at Buenos Aires and the DTI and FCO Argentina desks.
During the visit, Ms Jackson will be meeting with President Menem, who will be visiting the UK in October 1998.
The companies in the trade delegation are: ABB Daimler-Benz Transportation, Alstom, Balfour Beatty Major Projects, British Airways, GEC, Halcrow Group, HSBC Projects & Export Finance, Kennedy & Donkin, The Mersey Docks & Harbour Co, National Express Group, Pandrol UK, Porterbrook Leasing Company, Railway Industry Association and Wayfarer Transit Systems.
Market Wizard Systems (UK) Limited was ordered to be wound up in the High Court on 14 July 1998. This followed the presentation of a petition by the Secretary of State for Trade and Industry to wind up the company in the public interest following enquiries under Section 447 of the Companies Act 1985 (as amended).
The Official Receiver has been appointed as liquidator of the company.
Market Wizard Systems (UK) Limited marketed and sold a computer software program which was said to generate guidance on buying and selling traded options in twelve blue-chip stocks quoted on the London Stock Exchange. Advertising material issued claimed that the system can generate substantial profits but the enquiries were unable to establish any evidence that the system was generating profits for customers of the levels quoted.
In his judgement on the making of the winding up order Mr Justice Carnwath found that the activities of the company constituted investment business as defined by the Financial Services Act 1986 and that in the absence of authorisation from the Financial Services Authority the company was conducting unlawful business. He also found that the company had made misleading statements in its promotional literature, had included in its management team an undischarged bankrupt, Mr Robin Reichelt, and had failed to maintain proper accounting records.
The order will not take effect for 14 days; during that period the Official Receiver remains as provisional liquidator.
The registered office of Market Wizard Systems (UK) Limited is at 4 Old Park Lane, London W1Y 3LJ and it traded from 13 - 14 Queen Street, Mayfair, London W1X 7PL.
The petition was presented under S 124A of the Insolvency Act 1986.
The 14 day delay in the order gives the company an opportunity of applying to the Court of Appeal to delay the effect of the winding up pending a possible appeal.
All public enquiries concerning the company should be made to: The Official Receiver, 21 Bloomsbury Street, London WC1B 3SS (Telephone 0171 637 6583)
*** 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 20/07/98 to 28/07/98
Number of Creditor meetings : 186
Section Company Time Venue
138 Scotland - Interim Liquidator calling Creditors Meeting
21/07/98
County Fabricators & Builders (Gl) Ltd 10.00 am Glasgow
New Era (Milliken Park) Ltd 11.00 am Glasgow
22/07/98
Hillfoot Dyers Ltd 11.00 am Glasgow
27/07/98
Seagull Cleaners Ltd 12.00 pm Aberdeen
23 Administrator Calling a meeting of Creditors
20/07/98
Cobra Sports Ltd 10.00 am London
Quality Design & Build Ltd 01.00 pm Hartlepool
21/07/98
Centrex Ltd 11.00 am Telford
RTITB Services Ltd 11.00 am Telford
22/07/98
Attwell Farms Ltd 11.00 am Birmingham
48 Receiver calling unsecured Creditors Meeting
20/07/98
Newby Farm Ltd 10.30 am Manchester
21/07/98
Systems Engineering (Lancaster) Ltd 11.00 am Manchester
22/07/98
Bowman Yachts Ltd 10.00 am Southampton
98 Creditors Voluntary Liquidations
20/07/98
African Aviation Publications Ltd 10.15 am Egham
Byma Textiles Ltd 10.30 am Warrington
C T & T Ltd 11.00 am London
Caton Electrical Ltd 11.30 am Marlow
Crows Hall Farm Produce Ltd 11.30 am Winchester
Design 2000 (Kent) Ltd 11.00 am London
E C Consulatnts Ltd 11.00 am Guildford
Estuary Colour Group Ltd 03.00 pm Colchester
George Brough & Co Ltd 11.30 am London
Giles Clothing Ltd 11.00 am Birmingham
Inn Place Ltd - The 03.30 pm Lutterworth
Machinery Impex Co Ltd 12.00 pm Birmingham
Maison Crocs Ltd 10.00 am London
Pinehouse Of Romford Ltd 10.30 am Southend-on-Sea
Powersource UK Ltd 10.00 am Bristol
Reltona Ltd 04.00 pm London
Richbond Ltd 03.00 pm London
Rock Lobster Restaurant Ltd 02.00 pm Leicester
Shaftesbury Tickets Ltd 03.00 pm Gerrards Cross
Shenval Ltd 11.30 am Hutton
Vandanel Sport & Leisure Ltd 12.00 pm London
Visitor Systems Ltd 10.30 am March
21/07/98
A & D Motors Ltd 02.30 pm Aylesbury
A J Slegg & Son Ltd 11.00 am Ashford
Allport Environmental Health Ltd 10.30 am London
Briscoe Property Co Ltd 10.15 am London
Bryco Windows Group Plc 02.30 pm Leeds
Bryco Windows Ltd 02.30 pm Leeds
Bryline Riding Surfaces Ltd 11.00 am Northampton
Candy Group Ltd - The 10.30 am Harrow
Cinemania (UK) Ltd 04.00 pm London
Drives & Components (Winsford) Ltd 11.30 am Altrincham
Ellesmore Ltd 11.00 am Birmingham
Expandlight Trading Ltd 10.30 am Yarm
Fun Food Factory Ltd 10.30 am Halifax
Hamill Associates Ltd 12.00 pm Beaconsfield
Hampshire Farms Ltd 10.00 am Reading
Lloyd & Moran Ltd 10.30 am Liverpool
London Bridge Studios Ltd 12.30 pm London
Moonshine Lemon Juice & Liquor Co Ltd 11.00 am Leeds
Multigas Marketing Ltd 10.15 am Batley
Overvision Trading Ltd 02.00 pm Aylesbury
Portman Leisure Concessionaires Ltd 11.00 am London
Portsmouth Operating Co Ltd 11.00 am Portsmouth
Pro-Tect Healthcare Ltd 11.30 am Manchester
Silver Line Cab Co Ltd 11.00 am London
Sporting Occasion Ltd - The 11.30 am Hemel Hempstead
Tom Mogg Ltd 12.00 pm Alveston
Unifresh Ltd 11.00 am Beaconsfield
Valleydale Consultants Ltd 11.00 am London
Westfield Holdings Plc 11.30 am Beaconsfield
Wildgoose Pressure Washers Ltd 12.00 pm Manchester
22/07/98
Ahmad Brothers Ltd 10.30 am London
Arena Exports Ltd 10.30 am Harrow
Ark Grosvenor Plc 02.00 pm London
Bradwest Protection Ltd 12.00 pm Bristol
Buckingham House Financial Ser Ltd 11.45 am London
C & N Restaurants Ltd 04.00 pm London
Canasta Computers Ltd 02.30 pm Southampton
Cleveland & Durham Prop Conveyance Ltd 10.30 am Newcastle-u-Tyne
Colour Coat (Midlands) Ltd 11.30 am Nottingham
Dawren Systems Ltd 11.30 am Biggleswade
Dovil Ltd 02.45 pm Llandudno
Fiddian Melaas Ltd 01.00 pm London
I.C.C.T. (U.K.) Ltd 02.30 pm London
J A G Engineering & Packaging Ltd 10.30 am Sheffield
KC (UK) Ltd 11.00 am Sunderland
Kirk Land Co Ltd 11.00 am London
L Marshall Contracts Ltd 11.00 am Barnet
Lymebay Developments Ltd 04.00 pm London
MAA Sherawali Films Ltd 04.00 pm London
Manchester Pneumatics Ltd 03.00 pm Bolton
Manhattan Construction Ltd 11.30 am London
Microplaza Ltd 11.00 am London
Microscan Services Ltd 12.30 pm London
Nectorsound Ltd 02.00 pm London
Opengate Software Ltd 12.00 pm London
Original Driveways Ltd 11.30 am Manchester
Parkville Graphics Ltd 03.00 pm London
Planned Fashions Ltd 10.00 am London
Projectplan Ltd 11.00 am Liverpool
Punchmaster Tools Ltd 11.00 am Newcastle-u-Tyne
R T M Systems Ltd 11.30 am Manchester
Regal Garage Ltd 11.30 am Manchester
Shillingdene Ltd 03.00 pm Manchester
Snappers (Essex) Ltd 10.15 am Kelvedon
Storm Colour Ltd 10.30 am Croydon
TOF Fabrications Ltd 03.30 pm Sunderland
Takhar Textiles Ltd 03.30 pm Sileby
Torque Wear Ltd 10.30 am Nottingham
Wastelands UK Agencies Ltd 11.00 am Edgware
Windermere Service Centre Ltd 11.00 am Preston
23/07/98
Associates Metal Products Ltd 11.00 am Wolverhampton
Atmospherics Ltd 12.00 pm London
Box 100 Ltd 12.00 pm London
Branston & Gothard Ltd 11.00 am London
Chatout Ltd 11.00 am London
Child Of Achievement Ltd 10.30 am Weybridge
Digitech Automation Ltd 10.30 am Norwich
Franks Marble Arch Ltd 11.00 am London
Hebron Ltd 11.30 am Bradford
KRW Enterprise Ltd 11.00 am Bristol
Macphail Deca (Wales) Ltd 02.00 pm Newport
Mister Michael Ltd 11.00 am London
Multicontrol Ltd 12.00 pm Southampton
Norsteel Structures Ltd 10.30 am Birmingham
P E C Property Services Ltd 02.30 pm Marlow
Quality Fireplace Co Ltd - The 11.30 am Fareham
Rasman Ltd 11.00 am London
Station Taxis (Sheffield) Ltd 10.30 am Sheffield
Stock Solutions (Stroud) Ltd 03.00 pm Bristol
Tomac Mining Products Ltd 11.30 am Sheffield
Victor Towler & Co Ltd 11.30 am London
WCC Holdings Ltd 03.00 pm Bristol
Worthmarket Ltd 11.00 am Lytham St Annes
Zip Technologies Ltd 11.00 am London
24/07/98
A N Smith & Sons (Builders) Ltd 02.30 pm London
AM PM Leisure Ltd 11.00 am Leeds
Ace Dress Ltd 11.30 am Manchester
Advance Visual Optics Ltd 12.00 pm London
Castlemead Lithographic Reproduct Ltd 01.00 pm Royston
City Development Management Ltd 02.30 pm London
Communications Electronics Ltd 03.30 pm Basingstoke
Fillips Wine Bar Ltd 03.15 pm Twickenham
Glenwood Heating Services Ltd 11.00 am Birmingham
Grenco Ltd 11.30 am Altrincham
Grooms Controlled Waste Services Ltd 11.30 am London
Hetside Printing Co Ltd 11.00 am Manchester
L S Properties Ltd 11.30 am Glazebrook
Larbert DIY & Building Supplies Ltd 12.00 pm Glasgow
MAI Comics Ltd 10.15 am Batley
Manorfield Ltd 11.00 am Woburn Sands
Reflex Time Ltd 12.00 pm Abergavenney
Sorasak Ltd 10.30 am Wakefield
Tailor Made Packaging Ltd 10.30 am Hertford
Thomas Townend (1778) Ltd 11.30 am Gerrards Cross
Van Der Kwaak (UK) Ltd 11.00 am Bristol
Work Foundation Consultancy Ltd 03.15 pm Gerrards Cross
Work Foundation Investment Trust Ltd 03.15 pm Gerrards Cross
27/07/98
Abbey Care Services Ltd 02.30 pm London
Adamson Developments (NW) Ltd 10.30 am Newcastle-u-Tyne
Athco Ltd 10.30 am Hornchurch
B.S.E. Press Knives & Co Ltd 11.00 am London
Challecrest Ltd 11.00 am London
Children's Commision Plc - The 10.00 am London
County Flooring Ltd 03.00 pm Gerrards Cross
Eltree Information Ltd 10.30 am Manchester
HMG Norwood Products (Household) Ltd 11.00 am Liverpool
Manor House Prime Ltd 10.30 am Southend-on-Sea
Melair Ltd 10.30 am Halifax
Midlands Building Co Ltd 12.30 pm Pedmore
Scaledean Ltd 11.30 am Manchester
Scenic Happenings Ltd 10.30 am Wetherby
Spring Services Ltd 12.00 pm London
TMG (Portsmouth) Ltd 02.00 pm London
Waterside Products Ltd 11.00 am Birmingham
Whitelight Engineering Services Ltd 12.30 pm Southend-on-Sea
28/07/98
A C & J Consultants Ltd 03.00 pm Northwood
Anderland International Transport Ltd 11.00 am Bromsgrove
Aveca Commercial Stationary (UK) Ltd 12.00 pm London
Chase Media Ltd 12.00 pm Southampton
Farrar Technologies Ltd 12.00 pm London
Hydroburst UK Ltd 10.00 am Birmingham
Iceart Ltd 12.00 pm London
Italian Furniture Manufacturers Ltd 11.00 am Manchester
Loline Interiors Ltd 12.00 pm Royston
MRS Graphics Ltd 11.00 am Derbyshire
MRS Paintwork Ltd 11.00 am Derbyshire
P.D.L. Group Ltd 11.00 am Birmingham
Pixieville Ltd 02.30 pm London
Sherwood Engineering Services Ltd 11.00 am Nottingham
Thistle Dust Extraction Ltd 10.30 m Perth
View Systems Ltd 11.30 am Lutterworth
Westrope Distribution Ltd 11.00 am London
TW LW TW LW
USA 1.6399 1.6323 Canada 2.4411 2.4128
Austria 20.6960 20.8806 Portugal 301.541 309.607
France 9.8646 9.9489 Belgium 60.7980 61.2113
Finland 8.9400 9.0221 Italy 2902.32 2925.81
Germany 2.9256 2.9680 Sweden 13.0942 13.1680
Holland 3.3165 3.3457 Switzerland 2.4707 2.5084
Spain 250.1000 251.9210 Ireland 1.1708 1.1797
Australia 2.6301 2.6553 Denmark 11.2265 11.3017
Hong Kong 12.7061 12.6492 ECU 1.4907 1.5009
Africa Com 10.1581 10.5039 Saudi Arabia 6.1506 6.1226
India 69.7310 69.4054 Malaysia 6.8083 6.9541
Singapore 2.7817 2.8182 Norway 12.4960 12.5903
Japan 230.720 230.113
TW This week LW Last week.
Ellis and Everard, the chemicals distributor, has announced pre-tax profits of 32.1 million pounds, on turnover of 732 million, for the year ending 30th April 1998. Earnings per share stand at 24.7p.
First Technology has announced pre-tax profits of 13.6 million pounds, after exceptional credit, on turnover of 54.3 million, for the year ending 30th April 1998. Earnings per share stand at 19.4p.
Goode Durrant, the vehicle leasing group, has announced pre-tax profits of 31.5 million pounds, after exceptional credit, on turnover of 202.4 million, for the year ending 30th April 1998. Earnings per share stand at 38.7p on increased capital.
David S. Smith, the paper and packaging group, has announced pre-tax profits of 51.1 million pounds, on turnover of 1,113 million, for the year ending 2nd May 1998. Earnings per share stand at 11.9p, on increased capital.
W. H. Smith has announced pre-tax profits of 267 Million pounds, after exceptional credit, on turnover of 2,901 million, for the year ending 31st May 1998. Earnings per share stand at 79.2p.
Trifast, the industrial fastenings group, has announced pre-tax profits of 8.42 million pounds, on turnover of 78.8 million, for the year ending 31st March 1998. Earnings per share stand at 34.1p, on increased capital.
MERGER CLEARANCE
The Secretary of State for Trade and Industry has decided, on the information at present before her, and in accordance with the recommendation of the Director General of Fair Trading, not to refer the following mergers to the Monopolies and Mergers Commission under the provisions of the Fair Trading Act 1973:Proposed acquisition by Capital Radio plc of Xfm Limited.
Proposed acquisition by Green Property Plc of Trafford Park Estates Plc.
Proposed acquisition by FirstGroup plc of the remaining 80% of Mainline Partnership Limited that it does not already own.
UK AND ITALY INTERVENE ON NOTIFICATION OF GEC/FINMECCANICA JOINT VENTURE
The UK and Italian Governments have informed GEC and Finmeccanica respectively under Article 223(1)(b) of the EC Treaty that the military aspects of the proposed joint venture in defence electronics between GEC-Marconi and Finmeccanica should not be notified to the EC Commission under the EC Merger Regulation.
The UK and Italian Governments have notified the EC Commission that they have taken these measures as they are necessary to protect the essential security interests of the UK and Italy.
Under the EC Merger Regulation which came into force on 21 September 1990 as amended with effect from 1 March 1998, "concentrations" (ie mergers and certain joint ventures) involving a combined world-wide turnover of more than 5bn ecu (around #3.3bn) and in which at least two of the parties also each have a European turnover exceeding 250m ecu (around #170m) fall to the European Commission for assessment as the exclusive competition authority. Concentrations which do not meet these thresholds but which exceed certain other ones, including where the combined world-wide turnover exceed 2.5bn ecu (around #1.7bn) and where in at least three Member States the combined aggregate turnover of all undertakings exceeds 100m ecu (around #67m) similarly fall to the European Commission.
Such transactions must be formally notified to the EC Commission not more than one week after the conclusion of the agreement, or the announcement of the public bid, or the acquisition of a controlling interest (whichever of these is the earliest). GEC and Finmeccanica announced conclusion of a joint venture agreement covering certain of their defence electronic interests on 10 July.
Article 223 of the EC Treaty permits Member States to take measures necessary to protect their essential security interests. The approaches by each government to GEC and Finmeccanica are such measures. In the UK, the effect of the measure is that the military aspects of the transaction may be considered under national merger control law.
The UK has invoked Article 223 four times before in relation to defence concentrations: in the case of the military aspects of the bids for VSEL by BAe and GEC in 1994 and joint ventures between GEC Marconi and Thomson CSF and between British Aerospace and Lagardere in 1996.
MMC INVITES EVIDENCE ON THE ACQUISITION OF LUTONIAN BUSES LIMITED BY ARRIVA PLC
Nigel Griffiths, Competition and Consumer Affairs Minister, DTI, has asked the Monopolies and Mergers Commission to inquire into the acquisition by Arriva plc of Lutonian Buses Limited.
He has made this reference because of competition concerns in the supply of bus services in Bedfordshire and Hertfordshire, specifically in the market for the supply of bus services in the Luton area. The MMC will examine all aspects of the merger in considering whether it may be expected to operate against the public interest.
The Commission would like to hear from all interested parties, in writing, by 5 August 1998. To submit evidence or obtain a copy of the full terms of reference, please write to:
The Reference Secretary (Arriva/Lutonian)
Monopolies and Mergers Commission
New Court
48 Carey Street
London
WC2A 2JT
(Please quote Ref INTNT 9/98)
The Group of Commissioners conducting the inquiry will be chaired by Professor John Pickering; one of the Commission's members. The remaining members are:
Sir Ronald Halstead CBE, Arthur Pryor CB, Jonathan Rickford and Sarah Brown.
The Commission has been asked to make its report to the Secretary of State for Trade and Industry by 23 October 1998. The report will be published at a later date.
http://www.open.gov.uk/customs/700-11.htm This is the Customs and Excise site and contains among other things a list of the VAT leaflets which can be obtained directly from the site.
http://www.nationaltrust.org The American National Trust, well worth a visit
http://www.dti.gov.uk/betpay/ Visit the DTI site for an up to the minute guide to improving your credit management skills, also gives details of other leaflets and guides on offer.
http://www.realnames.com Another tool for finding your way round the net, just type in a name and off you go.
http://www.travelbritain.com An interesting site for tourists whether UK based or from overseas.
MCI COMMUNICATIONS
MCI Communications of the USA will sell all of its Internet assets to Cable & Wireless of Britain for $1.75 billion. The sale was required by regulators, who have now approved MCIs $37 billion merger with WorldCom. The deal should give C&W the American clout that it needs to forge a European alliance.
Source: The Economist
APPLE COMPUTERS
A rejuvenated Apple Computer surprised analysts with a reported profit of $101m in the quarter to end-June, its third consecutive quarterly profit.
Source: The Economist
31st July North East Branch meeting of the ICM Gliding Evening 5.30pm Evening includes fun quiz + buffet Burn Gliding Club, near Selby Cost # 17.50 Bookings to David Kirkby on 0113-282-3852 - # 5.00 deposit required 8th September Northampton Branch meeting of the ICM The role of the Solicitor in Credit Management Time TBA Followed by Go-carting at St.James Mill Road, Northampton For further details contact - Kerry Bland on 0966-275454 or Malcolm Swann on 01604-673410 12th September North East Branch of the ICM Annual Dinner The Cedar Court Hotel, Bradford Cost #25.00 - further details form Sid Ulph (01254-724000) or Brian Lewis (01937-581977) 15th September London Branch meeting of the ICM 6.00 for 6.30pm Business Information - where does it go from here? Presentation by Phillip Mellor, Senior Analyst, Dun & Bradstreet London Transport House 55 The Broadway London SW1H OBD Thames Valley Branch meeting of the ICM 6.45 for 7.15pm Mock Creditors' Meeting Presented by the Moore Stephens Booth White thespians Honeywell Control Systems Ltd, Honeywell House, Arlington Business Park, Bracknell +Buffet 16th September Merseyside & North Wales Branch meeting of the ICM 10.00am to 5.00pm Annual Full Day Seminar A full day of speakers and exhibitions The Maritime Museum, Albert Dock, Liverpool +lunch +coffee 17th September Kent Branch meeting of the ICM Wine and Wisdom 7.30pm Teams of 4-6 competing for the Branch's Annual Challenge Shield Dominican Priory, Canterbury Bookings for Kent Branch meetings - Ian Mella (Tel 01233-756253) Members - # 3.00 Non Members - # 3.50 Students # 1.00 Sussex and Surrey Branch meeting of the ICM 7.30pm Mock Summary Judgment Hearing With a local Judge Bridgehouse Hotel, Reigate 19th September East Midlands Branch meeting of the ICM Bi-Annual Dinner Dance 1.30pm Contact Tim Davies on 0116-257-6264 for further details and to reserve places and tables. # = pounds sterling
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