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 28
Dated: 22 July 2001
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKCBI STRONGLY BACKS GOVERNMENT PLANS FOR FASTER DELIVERY OF MAJOR BUILDING PROJECTS
The CBI on Friday strongly backed the Government's commitment to streamlining planning procedures for major infrastructure building projects, including airports and railways.
It rejected suggestions that the changes would damage the democratic process by preventing people from making objections.
John Cridland, Deputy Director-General, said: "This is a balanced package that prevents schemes of national economic importance getting kicked into the long grass, while still allowing objectors to make their case.
"By clarifying national policy, there is real scope for better decisions to be made. The package also means decisions should be made more swiftly, which benefits all concerned irrespective of the outcome.
"The Government had to act because too many vital projects have been mired in bureaucracy and uncertainty for too long. We encourage ministers to bring about improvements as soon as possible and to allow parliamentary time for new legislation where necessary."
BUSINESS WELCOMES CHANGES TO EMPLOYMENT TRIBUNAL PROCESS
The British Chambers of Commerce have strongly welcomed new government measures which came into force on Monday 16 July designed to limit the number of ill founded claims reaching employment tribunal.
The changes come against a background of rising tribunal applications, with the most recent available figures showing cases in 1999-2000 exceeding 100,000 for the first time. While over two thirds of applications never reach tribunal stage, under the previous system employers faced significant time and financial costs, with many making early settlements even where the tribunal case had no chance of success.
The Chambers led criticism of the previous system where employees had nothing to lose by making an application, particularly where their representatives provide a “no-win, no fee” service.
The new measures introduced by government include:
"The government has responded to calls from business to make the employment tribunal system less open to abuse from frivolous and vexatious claims. The new rules will help deter the rising number of ill-founded cases that are burdening enterprise and produce a fairer system for both employers and employees.”
The BCC’s new Director General, David Lennan, is set to meet with Trade Secretary Patricia Hewitt later this week, ahead of a further government consultation with business aimed at reinforcing the 'prevention not cure' approach.
CBI WELCOMES TRIBUNAL SYSTEM REFORM IDEAS
The CBI on Friday applauded the Government for putting forward radical proposals that will help curb the 'compensation culture'.
New government figures, which show a record number of 130,408 employment tribunal cases last year, back up the CBI's call for urgent measures to deter workers from making unnecessary tribunal claims.
"There is plenty of evidence of the employment tribunal process getting out of control. Given the record number of cases, the government is right to think radically about employment tribunal reform and better dispute resolution within companies," said CBI Deputy Director-General John Cridland.
"These are sensible ideas which should reduce the continual spiral of claims to employment tribunals without threatening anyone's right to justice. This is not about preventing people pursuing legitimate grievances, it is about avoiding unnecessary cases.
"It is not unreasonable to introduce a charge on applicants before they are able to use the tribunal system", he added. Charges are already quite normal in other areas of the court system, the CBI pointed out.
The CBI will be consulting members on the idea that all businesses will have 'dispute resolution procedures'. Whether or not this idea is acceptable will depend on whether business believes it will help reduce the number of cases.
MEGA DEALS FUEL BUY-OUT MARKET
In the second quarter of 2001, the total value of UK management buy-outs (above £10m) reached £7.2bn, the highest ever quarterly total, but half of this was accounted for by just two deals.
Charles Milner, Head of Private Equity at KPMG Corporate Finance, said: "Over the last few years we have seen the shape of the buy-out market change with larger deals becoming ever more prevalent. This is clearly in evidence this year with three deals passing the £1bn mark."
The two "mega deals" this quarter were the institutional buy-out of BT's Yell Group by Apax Partners and Hick Muse Tate & Furst for £2.1bn and Deutsche Morgan Grenfell's buy-out of Whitbread pubs for £1.7bn. A further 29 deals accounted for the remaining £3.4bn of activity during the period.
"As the UK M&A market has suffered a sharp downturn and with the ongoing malaise in the capital markets, the buy-out sector is inevitably impacted with deal volumes depressed" continued Milner.
This quarter saw three secondary and the first tertiary buy-out of Heavy Machinery Group by Bank of Scotland Integrated Finance. "We are likely to see more of this type of buy-out whilst IPOs remain a difficult route for private equity exits" remarked Milner.
As the larger deals continued to dominate the scene, the number of public to private (PTP) transactions has also been growing. This quarter, six of the top ten deals were PTPs totalling £2.3bn. The property sector has been particularly active this year completing nine out of 18 PTP deals struck in the last six months.
On the outlook for the next six months, Milner commented: "As economic uncertainty prevails, vendors are having to bring their expectations sharply into line. We are seeing a number of transactions being revisited as vendors re-open negotiations at more realistic price levels. The bottom line is that deals continue to be closed - they are just taking longer."
Milner concludes: "Notwithstanding a decline in the volume of activity we have not seen the scale of downturn in the volume of £10m+ deals as some of the more pessimistic commentators predicted. Timing is critical and in the past a realignment of pricing expectations has augured well for private equity buyers."
INFLATION IN EURO-ZONE
Inflation in the Euro-Zone dropped to 3% in the year to June from an eight-year high of 3.4% the month before. The European Commission predicted that inflation would slip below the European Central Bank's 2% ceiling early next year.
Source - The Economist
TURKEY
Turkey's lira hit a fresh low against the dollar, even after the government raised short-term interest rates. The lira is now down by over 50% since the start of the year. The Turkish economy minister, Kemal Dervis, had one bit of good news: the communications minister, a constant thorn in his side, resigned. But the risks of a debt default persist.
Source - The Economist
USA
Alan Greenspan, chairman of the Federal Reserve, downplayed the chances of a fast recovery for America's slowing economy. He said that he hoped that the economy had hit the bottom; but he acknowledged that it was not yet free of risk, leaving the door open for possible further interest-rate cuts.
Economic indicators left uncertain the hopes that an American recovery was on the cards. Industrial Production fell in June for the ninth month in succession to 3.6% lower than a year ago. Inflation was also on the up. The consumer-price index edged up in June to 3.2% over a year earlier.
Mr Greenspan's less than optimistic prognosis for the economy was also backed up by a slew of Company Results, most of which were bad.
America's slumping markets and nervous investors took their toll on Merrill Lynch, America's biggest stockbroker. It announced that second-quarter profits were down 41% from a year ago. Charles Schwab, America's biggest online stockbroker, said that profits had fallen by 26% in the same period.
Source - The Economist
Finally - from John Wiley & Sons, Inc. - a book that shows executives at companies of all sizes how to effectively extend credit and collect receivables internationally.
At a recent national conference, a well-respected, conservative international credit expert predicted that within five years every company represented at the event would be selling internationally, including those who had not yet dipped their toe into the international arena. This is a good news/bad news story for most credit executives. More responsibility for the credit professional is a definite plus in a contracting job market. Unfortunately, however, not all credit professionals are adequately prepared to address either the regular or special issues involved when operating in a global economy.
“When companies first sell internationally,” says Mary S. Schaeffer, author and editor of a new book on international credit, they often make one of two mistakes. They either use the same procedures, policies and terms as they do domestically or worse, throw their credit policy out the window and sell to all takers.” The results of either of these strategies can be devastating the former typically strangles international sales while the later results in increased DSO and bad-debt write-offs as sales are made to firms the company never would have sold to domestically on open account.
A sound international credit and collections policy will allow a company to compete on a level playing field globally through the selective use of forfaiting, credit insurance and other techniques not typically used when extending credit domestically. A good understanding of different cultural business practices also helps. Ms. Schaeffer, with contributions from 14 leading experts, investigates these and other topics of use to those selling internationally either for the first time or for the thousandth time in International Credit and Collections: A Guide to Extending Credit Worldwide.
Ms. Schaeffer, a business and financial writer with extensive corporate finance experience, is the editor of IOMA’s Report on Managing Credit Receivables and Collections, a monthly newsletter the covers both domestic and international credit and collection topics. She is the author of four other business books including one of the first ever written about derivatives. She can be reached at mschaeffer@ioma.com and is happy to provide a list of the contributors with e-mail addresses. Many of those contributors are available for public speaking engagements.
Title: International Credit and Collections: A guide to Extending Credit Worldwide
Author: Mary S. Schaeffer
ISBN: 0-471-40675-9
Buy your copy NOW from
http://www.amazon.co.uk/exec/obidos/ASIN/0471406759/qid%3D995561619/202-0013547-4041475
D&B REPORTS SECOND QUARTER 2001 EPS OF 33 CENTS PER DILUTED SHARE BEFORE ONE-TIME ITEMS, UP 14 PERCENT
Identifies Additional $70 Million in Financial Flexibility
Raises EPS Guidance for 2001 on Lower Expected Revenue Growth
MURRAY HILL, N.J.—July 18, 2001—Dun & Bradstreet (NYSE: DNB) today reported diluted earnings per share from continuing operations for the quarter ending June 30, 2001 of 33 cents, up 14 percent from 29 cents a year ago, before one-time items in both years, which are further described below. As reported and after one-time items, diluted earnings per share from continuing operations for the 2001 second quarter was 44 cents, a 69 percent increase over the 26 cents reported in the 2000 quarter.
Revenue for the quarter from its core businesses (credit, marketing and purchasing information solutions) was $299.1 million, flat with the year ago period before the effect of foreign exchange and down 3 percent after the effect of foreign exchange. Consolidated operating income for the second quarter was $52.8 million, up 10 percent from the year-ago period, before one-time items. Income from continuing operations for the second quarter was $27.4 million, up 17 percent from the 2000 second quarter, also before one-time items.
"Our earnings per share and operating income growth this quarter are in line with our guidance. This is a direct result of the financial flexibility initiatives that we began implementing nine months ago under our Blueprint for Growth strategy to transform D&B, while simultaneously delivering shareholder value," said Allan Z. Loren, Dun & Bradstreet Chairman, Chief Executive Officer and President. "We are not satisfied with our core revenue growth for the quarter, which was impacted by the continuing effect of the slowing economy on our customers spending. However, our strategy enabled us to invest in growth areas of the business as we had planned, delivering shareholder value despite current economic conditions."
Milestones for top-line growth include:
Closing the previously-announced acquisition of iMarket, Inc., strengthening D&B¿s ability to provide marketing solutions to small and mid-sized businesses, enhancing D&B's already world-class, proprietary database, and providing incremental revenue.
Completing the previously-announced sale of D&B's Receivable Management Services (RMS) businesses in the U.S., Canada, Hong Kong and Europe for total proceeds of $125 million, effective April 30, 2001. $35 million of the proceeds was for future products and services to be provided to RMS by D&B and will be recognized over a five-year period, providing incremental revenue.
Launching important products with longer-term growth potential in the areas of decisioning (D&B Small Business Solutions, and D&B Risk Assessment Manager – Enterprise) and data integration (D&B Global Access Toolkit). Milestones for bottom-line growth include:
Achieving international profitability for the second quarter for the first time since 1997 by beginning to manage Europe as one business instead of 19 separate businesses, and by changing D&B's business model in the Asia Pacific/Latin America region during 2000 to align investment with each country's profit potential.
Initiating a $100 million share repurchase program, which at current prices represents about 5 percent of outstanding shares. This program is expected to be completed before May 2002.
North America's second-quarter revenue from core businesses was $207.9 million, essentially flat with the prior year period, due primarily to the effect of the U.S. economic slowdown on our customer's discretionary spending. The effect of the slowdown is being seen primarily in the Company's project-related marketing and purchasing areas. North America's operating income for the period was $63.3 million, up 3 percent from $61.6 million in the prior year period. The 2001 second quarter operating income was negatively affected by investments in the B2B e-Commerce business, and the loss of RMS operating income effective April 30, 2001. Before the effect of these items, operating income for North America was up 9 percent from the prior year period.
Europe reported second-quarter revenue from core businesses of $80.0 million, down 1 percent over the 2000 second quarter before the effect of foreign exchange and down 8 percent after the effect of foreign exchange. Europe was profitable in the second quarter for the first time since 1997, achieving operating income of $5.2 million, compared to a prior year period loss of $2.3 million.
Second-quarter revenue from core businesses at Asia Pacific/Latin America, was $11.2 million, a 1 percent increase over the prior year period before the effect of foreign exchange and an 8 percent decrease after the effect of foreign exchange. Asia Pacific/Latin America also achieved profitability in the quarter, reporting operating income of $1.0 million for the period, compared to a $2.2 million loss in the prior year period.
THE UK PLCs STILL TAKING THEIR TIME TO PAY BILLS
The average time it takes companies to settle bills is 46 days and the payment performance of the slowest paying plc is getting worse, according to league tables for over 4000 companies published by the FSB.
The private sector performance league tables, based on an analysis of company reports by business information company, Dun & Bradstreet, include the average payment times of some of the UK's largest household names. The tables, published for the third year running by the FSB - show that the average length of time it takes a plc to pay its suppliers remains at 46 days, the same as in 1999 and 2000.
However, bad payers are getting worse - one quarter of companies listed are taking over 60 days to pay, compared with one fifth last year.
A total of 4,100 plcs appear in the tables - an increase on the 3,141 from last year. The total amounts of the accounts examined are estimated to represent one fifth of UK GDP. Other findings include:
Commenting on the tables, Mr John Emmins, the FSB's National Chairman said that the increase in the number of companies reporting payment times reflected the growing importance that plcs were attaching to good payment performance.
"The increase in the number of companies submitting their payment details is commendable. It is a sign that prompt payment and ethical business practice is becoming as important to boardrooms as generating profits".
Mr Emmins went on to say, " However, we still need to see a decrease in average payment times. Regrettably, late payment is still an endemic part of business practice for many companies".
Commenting on the findings, Mr Philip Mellor, senior analyst at Dun & Bradstreet said, "While the performance of UK plc has remained static over the last three years, Dun & Bradstreet's wider analysis of 1.3 million European companies, shows our position has significantly improved now standing second in the European league table of payment performance".
The figures are based on the latest company returns. Both the FSB and Dun & Bradstreet accept that there may be a qualification attached to company annual reports and that the situation may well have changed as a result of improvements.
THE OFT: STATEMENT OF PURPOSE
The OFT's Statement of Purpose was launched last week by John Vickers, Director General of Fair Trading.
Speaking at the annual conference of the Government Economic Service, John Vickers said:
'Competition and consumer policies are now at the heart of Government economic policy. I welcome moves to strengthen the OFT's powers to make markets work well.'
The Statement of Purpose sets out how the OFT will achieve that goal by:
John Vickers added:
'The OFT is independent and accountable in various ways. I hope that our Statement of Purpose will enhance our accountability to Parliament and the public.'
STATEMENT OF PURPOSE
Enforcement
Investigation
Communication
TOWARDS EFFECTIVE ENFORCEMENT OF COURT DECISIONS
The Lord Chancellor, Lord Irvine, last week announced the publication of a Green Paper to improve the enforcement of decisions taken in court.
"It is important that people have confidence in the justice system, and in its ability to deliver justice once a court has made a judgment" said Lord Irvine. "The measures set out in 'Towards Effective Enforcement' will help to achieve that".
The Green Paper builds on the conclusion of consultation papers and research to bring together proposals on enforcing both civil and criminal judgments. It also proposes a single piece of bailiff law, setting out possible new powers and responsibilities for enforcement agents.
The paper explores:
The Lord Chancellor said "The primary purpose of the Green Paper is to consider how best to achieve a fundamental improvement in the warrant enforcement system by opening up to public consultation a range of options and ideas for the future regulation of enforcement agents in England and Wales.
"The Enforcement Review arises out of the Government's commitment to improving access to, and the efficiency of, civil justice in England and Wales.
But, the widened review (as I announced on 6 March) gives us an opportunity to look at the responsibilities and powers of all enforcement agents. Not just those within the High Court and county courts, but also those, for example collecting fines, council tax and Inland Revenue debts and enforcing breaches of community sentence.
Improved enforcement in these arenas can only increase confidence in the justice system as a whole."
A White Paper will be published in early 2002 setting out proposals for legislation in the light of this public consultation. It will also cover revised procedures for attachment of earnings, garnishee orders and charging orders arising from Phase 1 of the Review. At that stage it ought to be possible to develop a practical structure for warrant enforcement service delivery.
The Lord Chancellor announced on 6 March 2001 that he was to broaden the remit of the review of civil enforcement, to include structures for, and the regulation of, civil enforcement agents generally, not just within the High Court and county courts.
The Report on Phase One of the Enforcement Review and Professor Beatson's Review of Bailiff Law were both published on 26 July 2000, when the Lord Chancellor announced the terms of reference of Phase Two as follows:
The Review identified the need for independent expert advice from the private, independent and public sectors involved in enforcement and a market evaluation of the delivery of enforcement services. The Lord Chancellor announced on 8 May an advisory group on the delivery of enforcement services would be established.
The Green Paper can be viewed at : http://www.lcd.gov.uk
*** FORTHCOMING CREDITORS MEETINGS ***
From 23/07/2001 to 01/08/2001 Number of Creditor meetings : 193 Section Company Venue Liquidator 23 Administrator Calling a meeting of Creditors 25/07/2001 Worldxchange Communications Ltd London Grant Thornton 27/07/2001 Botley Pharmacy Ltd London Chantrey Vellacott Ealing Training Ltd London RSM Robson Rhodes 30/07/2001 Internet 3 Communications Ltd London Kingston Smith & 01/08/2001 Pine Design Manufacturing Ltd Stafford Geoffrey Martin & 48 Receiver calling unsecured Creditors Meeting 25/07/2001 Langar Engineering Ltd Nottingham Deloitte & Touche 26/07/2001 Buildmajor Ltd Birmingham KPMG United Skills Services Ltd London Tenon Recovery 30/07/2001 Ever 1375 Ltd Newcastle-u-Tyne 98 Creditors Voluntary Liquidations 23/07/2001 Aridale Ltd London Gregory Michaels & Barlow & White Highway Contractors Ltd Rooney Associates CCD Internet Ltd Manchester A H Tomlinson & Co D Merrett & Co Ltd Barnwood Hazlewoods Daze Design Ltd Kingston upon Marks Bloom East Midland Controls Ltd Sandiacre KPMG Fernville Ltd Liverpool Rooney Associates Harlequin Design Consultants Ltd London Begbies Traynor KGP (Kitchens) Ltd Bradford Baker Tilly McTeq Ltd Nottingham Blades Paper & Board Trading Ltd Maidstone Begbies Traynor Planit Interiors Ltd London Carter Clark Skabeau (UK) Ltd London Alexander Lawson & Tip Top Group Consultants Ltd London Grainger & Co Tip Top Solutions Ltd London Grainger & Co Wessex Media Ltd London Langley & Partners 24/07/2001 AE Errington Ltd Bristol Houghton Stone Airwaves Telecommunications Ltd Chorley Tenon Lathams Alite Recruitment Ltd Leeds Wilson Pitts Allied Appliance Services Ltd London Pridie Brewster Am Pm Printing Ltd Bristol Houghton Stone Ambleside School (Cheam) Ltd Cheam Benedict Mackenzie Beds Abroad Ltd London PricewaterhouseCoop Bubble.Inc.Com Ltd Reading Bridgers Buckingham Consult Partnership Ltd - T David Rubin & C I T P Group (Services) Ltd - TheLondon David Rubin & CITP Group Plc - The London David Rubin & Castle Printers London Ltd London BDO Stoy Hayward Clean & Tidy Ltd London Sinclair Harris Confer & Incentive Travel Part Ltd - T David Rubin & Corporate Archives Ltd Halesowen Mayfields Fercombe Ltd London K S Tan & Co Frontline 2 Ltd London The KBSP Frontline Integrated Marketing LtdLondon The KBSP Genset Service & Installation Ltd Clifton Moor David Horner & Co Graham Hulme (Hotel Interiors) LtdNewton-Le-Willows In House Manufacturing Ltd Bromsgrove Haden Insolvency Internet Careers Ltd London HLB Kidsons Intraco Medical Ltd London Kallis & Co LSE Preservation Ltd Southampton Roger Evans Longacre Homes Ltd London Kakouris & Marine & General Engineering Services Tenon Jennings Memory Lane Developments Ltd London K S Tan & Co Mobiles Plus Ltd Edgware Elliot Woolfe & Multimed Interactivve Ltd Leeds Chamberlain & Co New Forest Piggeries Ltd Southampton Roger Evans Oxford Solutions Ltd Bristol IP Services Paper Junction Ltd Leeds Capital Insolvency Portold Ltd Walsall K J Watkin & Co. Prima (Hull) Ltd Walsall K J Watkin & Co. Revetts (Norwich Road) Ltd Ipswich McTear Williams & Riverhouse Living Ltd Banbury Barnett Ravenscroft Runway Ltd London PricewaterhouseCoop Runway Travel Warehouse Ltd London PricewaterhouseCoop Scholec Ltd Preston Begbies Traynor Securiglaze (UK) Ltd London Langley & Partners Security Training Services Ltd Birmingham Poppleton & Appleby Shournagh Ltd Bromley Crane & Partners Sindall & Baker Exhibitions Ltd Watford Critchleys Structured Steel Bending & Burning Ltd RMT Summerfield Group Ltd Birmingham Langley & Partners Takeout Ltd London Valentine & Co TargetFixings & Power Tools Ltd Sandbach Chris Haworth & Co Telint Global Ltd London HLB Kidsons Viper International.Com Ltd Sheffield Begbies Traynor 25/07/2001 ASG Manufacturing Ltd Birmingham Poppleton & Appleby Act Fast Handling Ltd Cheltenham Janes Act Fast Services Ltd Cheltenham Janes Actionproof Ltd Manchester Royce Peeling Green Atlas Telecommunications Ltd London Langley & Partners Bella Exports Ltd Exeter Cottam Bell Bowdens Building Services Ltd Liverpool Begbies Traynor Burgon Engineering Ltd Brigg Mazars Neville Chameleon Search & Selection Ltd SawbridgeworthPeter Gorlov Copytrax Multimedia Ltd London Begbies Traynor Dreamscape Merchandise 1996 Ltd London Begbies Traynor Electrotech Control Design Serv Ltd BRI Business Euro Retail (Motors) Ltd Bristol Mazars Neville Graveson Ltd Worthing Levy Gee Keycom Communications Ltd London Carter Clark M A S C Computer Services Ltd Driffield Redman Nichols M J Berry (London) Ltd London Begbies Traynor Manorcrest Marble & Granite Ltd London Berley Media Image Dynamics Ltd Guildford Stonham & Co Mongolian Feast Restaurants Ltd Cambridge Keith Stout & Norwich Health Club Ltd Norwich McTear Williams & Olympian Services Ltd Manchester Casson Beckman & Seymour Sign & Display Ltd London D Wald & Co Tiffany Enterprises Ltd Llandudno Parkin S Booth & Co Trenchline Ltd London David Rubin & Twin Electrical Supplies Ltd Aldridge K J Watkin & Co WWW.Clothes To Go.Com Ltd St Albans Morton Thornton & Weston (Financial Services) Ltd Birmingham Langard Lifford White Knight Security Services LtdExeter BKR Haines Watts 26/07/2001 A & S Recovery Ltd London Kakouris & Able Tool & Plant Hire Ltd Salford Crawfords Barown Restaurants Ltd Hornchurch Redhead French Bentley Laundry Ltd Leeds Kroll Buchler C P L Ltd Leicester Casson Beckman Eco Chic Ltd London Leonard Curtis Eye Value Ltd Harrow Newman & Partners G T Silkscreen Ltd Aldridge K J Watkin & Co Game Over UK.Com Ltd Leighton Buzzard Glaydene Ltd Tunbridge Wells Handmade Designs Ltd Bristol Byrne Associates Havanaheights Ltd Waterlooville K S Tan & Co Hortmoor Computers Ltd Stanford Le Hope Infrastructure Defense UK Ltd London Baker Tilly Ingram Maintenance Ltd Upshire Sochalls KMA Environmental Services (UK) Ltd Levy Gee Kentish Shore Bakeries Ltd Chelmsford Morison Tenon M Pace Ltd London Rifsons Saud Rokoko Ltd London Gregory Michaels & Soltrax Ltd London Panos Eliades Sun Modilex Ltd Warrington Leigh & Co TBC Research Ltd London Kingston Smith & 27/07/2001 A J A Carpenters Ltd Bristol KPMG A4 Associated Security Services ltd Solomon Hare Albion Waste Management Ltd Sheffield Poppleton & Appleby Alchemy Creative Services Ltd London Lawrence Woolfson Cadogan Home Office Ltd Birmingham Baker Tilly Cradley Doors Ltd Birmingham Poppleton & Appleby D P Interior Design Ltd Southampton Radfords Display Productions Ltd London Levy Gee Dunmar Resins Ltd Peterborough Valentine & Co East West Europe (Eximp) Ltd London Andrew & Co GNW (Liverpool) Ltd Hale Milner Boardman & Go 4 Gold Leisure Ltd Bury Downham Train Harman Imaging Ltd London Hawk Global Products Ltd Norwich Smith Aston Jaychem (Bourne) Ltd Peterborough Valentine & Co Jaychem (Industrial Flooring) Ltd Peterborough Valentine & Co London Corporate Planners ltd London Panos Eliades McCarthy Consultancy Services Ltd Ipswich Ensors Mongoose Communications Ltd London Andrew & Co Nash Fisher Ltd Bristol Solomon Hare SMS Press Ltd London Smith & Williamson Security Vision Ltd Southampton Radfords Spaldings Electronics Ltd Sutton Turpin Barker & Stateline Bearing Co Ltd London Martin Sklan & Co TG4 Ltd London Griffins Tyne Tees Profiling (Gateshead) Ltd Tenon Jennings Vistaland Ltd Manchester A H Tomlinson & Co 30/07/2001 5 Counties Fencing Ltd St Albans Kings Batchsurvey Enterprises Ltd Luton Mazars Neville Bradwell Stone Ltd Rotherham Hart Shaw Norteck Bodies Ltd Birmingham Casson Beckman Tudor Thompson Insurance Group LtdGlazebrook Campbell Crossley & Vivao Plc Reading BDO Stoy Hayward Webzone Plc St Sinclair Harris Western Industrial & Office Equip Ltd Hazlewoods 31/07/2001 A B S Consulting Ltd London Valentine & Co AD Cream International Ltd Stoke-on-TrentCooper-Parry And Technology Ltd Oxford Shaw & Company Cap Clothing Co Ltd Leicester HKM Harlow Khandia Cropmarks Direct Imaging Ltd London Grant Thornton Design Development Corporation LtdLondon Chantrey Vellacot Force Developments Ltd Sheffield Poppleton & Appleby Fox Search Ltd Stockton-on-Tees Kingswood Print & Display Ltd London Begbies Traynor Knights Motoring Services Ltd Worthing Levy Gee Limitextra Ltd London Valentine & Co Mardi Gras Entertainments Ltd Manchester Lewis Alexander Mayhurst Developments Ltd Slough Oury Clark Natura Design Products Ltd Manchester Budsworth & Co Nexgen Ltd London Smith & Williamson Quantum Leap Technologies Ltd Manchester Begbies Traynor Route To Market Ltd London Smith & Williamson TBH Solutions Ltd Dorchester on Begbies Traynor Western Calf Rearers Ltd Monmouth E.Mary Grove & Co. 01/08/2001 Bassett Tyres & Exhaust Ltd Barnwood Hazlewoods Blaenau Skip Hire Ltd Llandudno Parkin S Booth & Co CTSG Electrical Ltd New Malden Nunn Hayward Capital Clothing Ltd Manchester Hodgsons Car Cosmetics Ltd Hale Milner Boardman & Ceilform Ltd Southend-on-Sea Cest Programmes Ltd London BDO Stoy Hayward Crane Foundry (Wolverhampton) Ltd Birmingham Smith Cooper Flexible Space Management Ltd London Benedict Mackenzie JJT Precision Ltd Birmingham Casson Beckman Manchester Antiques Ltd Altrincham Lines Henry Online Partners.co.uk Ltd London Griffins Tia (Holdings) Plc Sheffield Poppleton & Appleby Trackinside Ltd London JanesFor detailed information on all 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 1.40 1.40 Canada 2.16 2.15
Austria 22.65 22.71 Portugal 330.05 330.91
France 10.79 10.82 Belgium 66.41 66.58
Finland 9.78 9.81 Italy 3187.62 3196.01
Germany 3.22 3.22 Sweden 15.17 15.35
Holland 3.62 3.63 Switzerland 2.49 2.50
Spain 273.91 274.63 Ireland 1.29 1.29
Australia 2.76 2.80 Denmark 12.25 12.28
Hong Kong 10.94 11.99 Euro 1.64 1.65
Africa Com 11.56 11.67 Saudi Arabia 5.26 5.28
India 66.04 66.48 Malaysia 5.32 5.35
Singapore 2.57 2.58 Norway 13.15 13.15
Japan 175.82 175.31
TW This week LW Last week.
Philips, Europe's leading consumer-electronics firm and third-biggest chip maker, announced second-quarter losses of EURO770m ($672m) compared with a profit of EURO3.6 billion last year. Its highly profitable chip business has suffered the same fate as its rivals' and the 4,000 job losses announced are likely to fall heaviest on these operations.
BP, the British oil giant, agreed to acquire Veba Oil from E.ON, a German utility, thereby becoming Germany's largest petrol retailer. The deal--BP will hand over its stake in Ruhrgas, Europe's biggest natural gas distributor, and some money--will be completed next year and value Veba at around EURO6.5 billion ($5.5 billion), according to E.ON.
Royal Bank of Scotland, Britain's second-largest bank, raised GBP2 billion ($2.8 billion) from shareholders to finance the purchase of Mellon Financial, an American retail bank. It will chip in GBP500m of its own cash.
Profits at Intel, the world's biggest chip maker, nose-dived by 94% in the second quarter to $200m, as the slowing economy hit PC sales and sparked a price war. The company tried to cheer investors with the information that business was unlikely to deteriorate in the next quarter.
Source - The Economist
Ashtead, the plant hire group, announced pre-tax profits of 11.9 million pounds, after exceptional charge, on turnover of 552 million, for the year ending 30th April 2001. Earnings per share stand at 7p.
Colefax announced pre-tax profits of 5.92 million pounds, on turnover of 70.4 million, for the year ending 30th April 2001. Earnings per share stand at 16.5p on reduced capital.
Diagonal, the information technology group, announced pre-tax profits of 2.92 million pounds, on turnover of 45 million, for the six months ending 1st June 2001. Earnings per share stand at 1.7p on increased capital.
John Menzies, the aviation services and distribution group, announced pre-tax profits of 15.1 million pounds, after exceptional charge on turnover of 1,331 million pounds. Earnings per share stand at 2.7p.
MERGER CLEARANCE
The Secretary of State for Trade and Industry has decided, on the information at present before him, and in accordance with the recommendation of the Director General of Fair Trading, not to refer the following merger to the Monopolies and Mergers Commission under the provisions of the Fair Trading Act 1973:
Completed acquisition by EM.TV & Merchandising AG, Kirch Beteiligungs GmbH & Co KG and Speed Investments Limited of a further 25% of SLEC Holdings Limited
MELANIE JOHNSON REFERS PROPOSED ACQUISITION BY HCA INTERNATIONAL OF CERTAIN ASSETS OF THE LONDON HEART HOSPITAL
Acting on the advice of the Director General of Fair Trading (DGFT),Melanie Johnson, Minister for Competition, Consumers and Markets, last week referred to the Competition Commission the proposed acquisition by HCA International Limited of certain assets of the London Heart Hospital.
Miss Johnson said:
"The DGFT has advised me that the proposed acquisition raises competition concerns in respect of the market for the supply of private cardiac medical services in Central London which warrant reference to the Competition Commission. I have carefully considered the DGFT's advice and agree with his conclusions. I am therefore referring the proposal to the Competition Commission so that it can be fully investigated."
The decision to make a reference does not in any way prejudge the question of whether or not the merger would be against the public interest. It is for the Competition Commission to report on this after investigation. The Commission are to make their report by 1 November 2001.
HEWITT CLEARS HALIFAX PLC AND BANK OF SCOTLAND PROPOSED MERGER
Patricia Hewitt, Secretary of State for Trade and Industry, has decided not to refer the proposed merger between Halifax Plc and Bank of Scotland to the Competition Commission.
Mrs Hewitt made her decision in accordance with the recommendation of the Director General of Fair Trading (DGFT).
Announcing her decision, Mrs Hewitt said:
"I have considered the DGFT's advice carefully and agree that the merger will not raise competition concerns in the banking sector that would warrant a reference to the Competition Commission.
"The market shares which would result would be much lower than those of the four main clearing banks. The parties' branch networks are to a large extent complementary and there is very little geographic overlap.
"Unlike the proposed Lloyds TSB/Abbey National merger, this merger does not involve one of the Big Four banks and the removal of a competitor. In fact, it may strengthen competitive pressures on the Big Four."
E-Commerce Minister Douglas Alexander last week outlined the bidding process for the 26 remaining licences for broadband fixed wireless access in England, Scotland, and Wales. The licences will be available from September 2001.
Commercial licence holders will be able to deliver internet and multimedia services over the airwaves.
This is part of the Government's drive to provide competitive broadband services throughout the UK. Broadband fixed wireless access will provide competition to fibre, cable links, DSL phone lines and satellite, which also offer access to broadband services. Together with these existing technologies the Government are closer to delivering broadband across the UK.
Companies will be able to bid for these licences at the reserve price set at last November's auction where these remained unsold. If no other company is interested, the bidder will be awarded the licence at the reserve price. If the licence attracts more than one applicant it will then go to auction.
This process will continue until all the licences are sold or when the Government reviews bidding after 12 months.
This procedure was agreed following discussions with industry after the close of last November's auction. Mr Alexander said:
"This move will help regional economies to benefit as businesses can take advantage of the opportunities broadband services offer.
"It will allow small firms to have fast always-on access to the internet and high capacity data transfer between offices and customers. This will have a real impact on the development of e-commerce and allow companies to have the competitive edge that is needed in such a fast-moving market.
"It will also benefit consumers across the country. They will be able to access internet services quickly and efficiently, with costs kept low".
Companies interested in making a bid should contact: The Broadband Fixed Wireless Access Section, Radiocommunications Agency (0207 211 0324 or email BFWA@ra.gsi.gov.uk). Copies of the information pack are available on the Radiocommunications Agency website at http://www.radio.gov.uk
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