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 12
Dated: 26 March 2000
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKThe UK's high-street banks suffered a stinging rebuke in a report commissioned by the Treasury. The banks are accused of making excess profits of as much as 5 billion pounds ($8 billion) a year through a monopoly on the payments system and by chiselling personal and small-business customers. The government referred small-business banking to the Competition Commission and promised laws to open up the payments system.
BYERS AND BROWN REFER SUPPLY OF BANKING SERVICES BY CLEARING BANKS TO SMEs TO THE COMPETITION COMMISSION
Stephen Byers, the Secretary of State for Trade and Industry and Gordon Brown, Chancellor of the Exchequer, last week accepted one of the key recommendations of the Cruickshank Report and have made a joint reference to the Competition Commission, under Section 51 of the Fair Trading Act 1973, of the provision of banking services by clearing banks to small and medium sized firms in the UK.
Mr Byers said:
"The health of small and medium sized firms is crucial to the success of the economy and the employment of many people. The provision of banking services is an important influence on their prospects for growth and success in the future.
"The Cruickshank Report considers there is a substantial case for a reference of this market.
"I consider the issues identified and the concerns expressed about this important area are such that the provision of banking services to SMEs should be fully investigated by the Competition Commission. A full inquiry will enable the issues identified in the Cruickshank Report to be investigated."
The Chancellor will make a further response covering other recommendations of the Cruickshank Report in the Budget statement tomorrow.
The big four banks alone supply banking services to 83% of SMEs in Great Britain and according to the Cruickshank Report may be acting in ways that raise competition concerns.
The report describes a highly concentrated sector both at regional and national level. It suggests there is evidence of substantial super normal profits and price discrimination and argues the market is characterised by a lack of information, inertia and strong barriers to entry.
Terms of Reference
The Secretary of State for Trade and Industry and the Chancellor of the Exchequer in exercise of their powers under sections 47(1), 49(1) and 51(1) of the Fair Trading Act 1973 hereby refer to the Competition Commission the matter of the existence or possible existence of a monopoly situation in relation to the supply of banking services by clearing banks to small and medium sized enterprises.
The Commission shall investigate and report on the questions whether a monopoly situation exists and, if so:
(a) by virtue of which of the provisions of sections 6 to 8 of the said Act that monopoly situation is to be taken to exist;
(b) in favour of what person or persons that monopoly situation exists;
(c) whether any steps (by way of uncompetitive practices or otherwise) are being taken by that person or persons for the purposes of exploiting or maintaining the monopoly situation and, if so, by what uncompetitive practices or in what other way;
(d) whether any action or omission on the part of that person or persons is attributable to the existence of that monopoly situation and, if so, what act or omission and in what way it is so attributable; and
(e) whether any facts found by the Commission in pursuance of their investigations under the preceding provisions of this paragraph operate or may be expected to operate against the public interest.
The Commission shall report upon this reference within a period of 15 months from the date of this reference.
CRUICKSHANK: RIGHT ON SERVICES, WRONG ON FINANCE
Reacting to the recommendations made in the Cruickshank report on competition in UK banking services, published on Monday 20 March Dr Ian Peters, Deputy Director General of the British Chambers of Commerce (BCC) said:
"We are increasingly concerned that the concentration of banking services in a small number of banks is restricting choice in the small business sector. We urge government to act on the report’s recommendation that the provision of banking services to small and medium sized businesses be referred to the Competition authorities.
"Government must also recognise that limited competition and issues such as charges on cash machines have a knock-on effect on small, local traders - increased cost and limited availability of cash in small and rural communities will drive customers away from local shops into the nearest towns.
"However, Cruickshank’s proposal that the government should progressively switch support from the Small Firms Loan Guarantee Scheme (SFLGS) towards an enlarged venture capital fund programme, demonstrates a lack of understanding of small business finance.
"The SFLGS is an essential tool in the funding of British small and medium sized enterprises and is often used in conjunction with venture capital finance to provide a balanced and appropriate mix of finance. Government should encourage venture capital finance but retain and enhance the SFLGS"
CBI REACTION TO THE BUDGET
The Confederation of British Industry welcomed the Budget's additional support for entrepreneurs.
But it expressed a note of caution about whether the fiscal stance is sufficiently tight to maintain interest rates at present levels.
Digby Jones, CBI Director-General, said: "I am pleased that the Chancellor recognised our case for entrepreneurs and the need to stimulate investment in smaller quoted companies.
"But I am concerned by the electioneering slant of his spending proposals - £280 million for transport is woefully inadequate to address the crucial needs of the public and business alike.
"We are also worried by the levels of committed public expenditure at a time when the strength of sterling is a real issue and so many jobs in the UK are at risk.
"This is not the Budget for Business that we were hoping for."
CHAMBERS RESERVE JUDGEMENT ON BUDGET
Reacting to Chancellor Gordon Brown’s Budget, Chris Humphries, Director General of the British Chambers of Commerce (BCC) said:
"Businesses have learnt not to be fooled by Chancellors’ headline announcements, but to await the small print before casting final judgement on the Budget.
"While changes to capital gains tax and the introduction of permanent capital allowances will encourage business investment, Gordon Brown has not done enough to ease the increasing tax and administrative burden on business. There must remain a concern that the Chancellor’s £4 billion additional spending may force interest rates and sterling even higher.
"Our main disappointment is the Chancellor’s failure to address the increasing burden small employers face as the government’s unpaid tax collectors.
Commenting on individual measures in the Budget, Dr Ian Peters, Deputy Director General of the BCC, said:
Capital Gains Tax
"We welcome the more favourable capital gains tax regime for business investment, particularly the abolition of the 25% threshold for all shareholdings in unquoted companies."
Enhanced Capital Allowances
"The Chancellor's decision to put 40% capital allowances for small and medium businesses onto a permanent basis will aid cash-flow and stop the distortion of investment decisions."
Enterprise Management Incentives
"Increasing the number of managers eligible for enterprise management incentives will make it easier for small, rapid-growth businesses to recruit high-calibre staff. There is a real concern however that qualifying companies will need professional advice so as not to fall foul of complex rules."
R & D Tax Credit
"Encouraging research and development is a positive move, but the BCC would have liked the Chancellor to extend the concept of investment tax credits to all early stage business investment."
E-Commerce Support
"We particularly welcome the 100% write-off against tax of all small companies’ investment in e-commerce and new information technology. This will help drive the UK’s small firms to engage in trade on line."
BYERS STATEMENT FOLLOWING BMW MEETING
Following the meeting with BMW on the 23 March 2000, Trade and Industry Secretary Stephen Byers said:
"This was a constructive meeting. The UK Government and BMW both agreed that we now need to look forward and plan ahead for the future. During our discussions BMW agreed that they will protect as many jobs as possible.
"We explained to BMW that we felt it important that they should work in co-operation with the Taskforce we have set up to promote economic regeneration and job creation.
"BMW responded positively to this proposal and they will now consider in what ways they can be of assistance."
Author: H. A. Schaeffer, Jr.
Sound Business Credit Decisions Using A Case Study Approach
Finally - from John Wiley & Sons, Inc. - a book that lets credit professionals peek inside the minds of those who are innovative at analyzing credit and excellent at devising creative business solutions when it seems like a credit sale cannot be made.
Have you ever wondered how really good credit managers analyze an account, grant credit and find those "innovative" business solutions to make a sale to a marginal customer happen? Would you like to get inside the minds of other credit professionals to see if you would arrive at the same solution as others in the field when presented with an unusual set of credit circumstances? Credit Risk Management: A Guide to Sound Business Decisions - a new book published by John Wiley & Sons - lets you do just that.
Written by Hal Schaeffer, president of D&H Credit Services Inc., Credit Risk Management presents twelve challenging real life examples of situations credit managers have faced. Schaeffer, a popular lecturer and credit consultant, has over 29 years experience in the credit field. The cases are all situations he encountered when working as a credit executive at several well-known companies. The examples were used in an American Management Association credit case study course he taught for several years. The reader is presented with the same information as Schaeffer was originally and it is suggested that the readers make their "credit decisions" before reading the recommendations of several of his students. At the end of each case he reveals the action that was actually taken and the outcome of those decisions.
D & H Credit Services Inc. is a consulting firm that provides cash flow enhancement services, bankruptcy preference defenses and negotiations to companies of all sizes including several Fortune 500 companies. It also provides educational programs to both companies and private associations. D & H, now located in Port Washington NY, was established in July 1994.
Mr. Schaeffer, a 29-year veteran of the credit profession, is president of D & H Credit Services Inc. He is a popular speaker at regional and national events as well as on-site customised seminars for Fortune 500 companies. He is also the author of Financial Customer Service: A Guide to Making Smarter Business Decisions (John Wiley & Sons 1999), the best selling book on this innovative concept. Mr. Schaeffer is available for interviews and speaking engagements. He can be reached at 001 (516) 883 6980 or by e-mail at dandhcredit@earthlink.com
WHAT YOU SHOULD DO IF SCOTTISH JUDGMENT ENFORCEMENT IS ABOLISHED
Contributed by Stephen Cowan, Yuill & Kyle, Debt Recovery Lawyers, Scotland.
E-mail at scowan@yuill-kyle.co.uk
The current Bill before the Scottish Parliament to ban poindings and warrant sales (approximating to English execution) may leave no effective mechanism for the recovery of debts less than £1,500.00. And as approximately 67% of debts fall below this limit credit controllers will be understandably concerned.
Whilst there are very few warrant sales of commercial goods, statistics show that in 54% of cases when they do take place all of the prior enforcement expenses are paid along with some contribution towards the principal debt.
But their real value is not in the actual sale itself but as an ultimate sanction towards payment - the further debt filters through the enforcement process the greater amount is settled - with only a small fraction ending up in a sale.
If the sale sanction is removed how many "slow payers" will simply ignore their debts, and if this happens what will you be able to do?
The short answer is you will be left with no legal basis to recover a debt where you are owed less than £1,500.00 and arrestment (similar to garnishee) is ineffective - and the arrestment will have no effect if the debtor's account is overdrawn or you do not know where the account is held - either of which scenarios are quite likely.
What's the Scottish Parliament's position?
The Parliament's committees are very sympathetic to the Bill's main aims. Evidence has been taken from those representing society's most disadvantaged giving examples of warrant sales which simply should not have taken place. Particularly focused have been domestic debts where sales have arisen for non-payment of local taxes. However, the Scottish Law Commission, in a discussion paper commissioned by the Parliament's Justice Minister, Jim Wallace, have suggested a raft of reforms which if introduced as an amendment to the Bill could both protect society's disadvantaged from the worst excesses of domestic warrant sales whilst at the same time preserving the position of commercial creditors thus ensuring they are not robbed of effective judicial enforcement for business debt.
Whilst the sensible argument is that enforcement should be retained but modified politicians seem to be ignoring this. If the Bill is passed in its current form the consequences could be disastrous for the recovery of business debts.
Many may consider that whilst the committees can have their say the Scottish Government will not be bound by what they say. This is true but ignores the "real politik" of the devolved committee system.
The Justice Committee being the lead committee, can,after considering the current Bill, propose its own in substitution for the Bill presented to the Parliament by the Scottish Socialist Workers' Party member Tommy Sheridan. If they do,one can only speculate what their Bill would contain. But the important point to grasp is the Committee is not obliged to refer either Mr Sheridan's Bill or their own back to the Scottish Executive. The Bill's political backers will not want matters to be referred back to the Executive because they will be frightened the Executive will introduce a sensible enforcement review, doubtless taking on board many of the excellently formulated reforms proposed by the Scottish Law Commission. The Scottish Socialist Party, will see this as giving the Executive opportunity to dilute the Bill's main aim - being the total abolition of enforcement.
But What Will Happen If The Bill Is Passed?…
In its current form if the Bill becomes an Act you will be severely disadvantaged. For debts less than £1,500.00 you will have no legal means of recovery except by arrestment.
This is what you should do to protect your position:-
Finally, you could always write to the Justice Minister voicing your concern. You may think it worthwhile pointing out to him if Scottish enforcement is abandoned your company may think twice about offering credit to Scottish businesses or will do so on less favourable terms - if at all.
Even if you do not currently trade in Scotland you may in the future. So your objections will still be valid and your concern will be taken seriously. The Socialist Workers have been able to muster support to abolish enforcement. The Scottish Executive should be aware "socially inclusive" also means taking account of the legitimate interests of the business community. Business welcomes reasoned law reform and appreciates society's most disadvantaged should be removed from the enforcement net. But business also expects effective enforcement remedies should be retained against those who are able to pay for goods and services but simply do not settle their accounts unless ordered by a court to do so.
James Wallace, Scottish Parliament, Holyrood House, Edinburgh
SURVEY OF SERVICES PROVIDED TO EXPORTERS
More than 15,000 UK exporters are being asked about their awareness, usage of trade finance, the Single Currency, credit insurance, the Internet, e-commerce and Government support - part of a wide-ranging survey commissioned by NCM Credit Insurance and the Institute of Export.
Questionnaires (both postal and Internet-based) ask exporters, ranging from owner-managers to major international companies, for their assessment of the services they receive from Government, including British Trade International, banks and credit insurers. Results will be announced on 29 June 2000.
This eighth annual survey revisits the 1999 results and will reveal changes in the past 12 months, along with new topics such as 'Do you use e-commerce?'. Results are used by Whitehall, bankers, credit insurers, Business Links, Chambers of Commerce and other bodies.
Last year the survey generated a 10 per cent response rate from 10,000 exporters and this year the response is expected to be even higher. All respondents will be entered into a draw for pairs of tickets to travel on the 'London Eye' Millennium Ferris Wheel.
"This survey is an excellent opportunity for exporters to comment on the quality of services they receive" said Angela Gildea, NCM's new Market Research Professional.
Cardiff-based NCM is one of the world's leading credit insurers, protecting companies whose buyers fail to pay. Last year it insured 45 billion Euros of UK exports to 250 countries.
The Institute of Export represents UK exporters. It sets and seeks to raise standards of export management and practice by formal and informal education and training. It is an entirely private sector organisation, an educational charity and enjoys Royal Patronage.
The Major Issue Consultancy is an independent consultancy commissioned to analyse these annual surveys and investigate the findings.
For futher information please contact
NCM: Gary Hicks, gary.hicks@ncm group.com; 02072 486121;
Angela Gildea, angela.gildea@ncmgroup.com; 02920 824950;
Institute of Export: Ian Campbell institute@export.co.uk, 0171 247 9812;
Major Issue: Mark Runiewicz mark@majorissue.com, 0171 556 7133.
BUSINESS AND POLICE UNITE TO COMBAT COMPANY FRAUD
The net will close in on fraudsters as the Confederation of British Industry and the Metropolitan and City of London Police Services unite to tackle company fraud in London.
Faced with an escalating problem of company fraud, which is costing industry billions of pounds a year, members of the CBI got together with the Metropolitan and City Police Service fraud squads to produce an initiative to combat the problem.
Launching the scheme last week, Sir Clive Thompson, President of the CBI, said: "Sixty per cent of UK firms suffer from fraud each year, so the cost to UK plc is enormous. Ignoring the risks is not an option. The cost of fraud extends beyond the financial loss as it also damages a company's reputation. We must work closely with the police to make fraud more difficult to perpetuate and send the message loud and clear that fraudsters will be caught and dealt with fast."
Speaking at the launch Jack Straw, the Home Secretary, said: "Fraud is sometimes portrayed as a victimless crime. In fact it can have a devastating effect on business and individuals by causing serious financial ruin, bringing with it loss of livelihood, as well as adding to the costs which all law-abiding people have to pay for credit and goods. This joint initiative between business and the police is an excellent example of where a structured partnership approach can have benefits for all concerned. Fraud is a growing problem for industry. These proposals demonstrate how the police can harness private sector expertise, while introducing necessary quality control checks, to assist the investigation process. I have asked to be kept informed of the outcome of the initiative."
The initiative is designed to deal with the rapidly changing business world where computers allow financial transactions at the touch of a button from anywhere in the world making responding to fraud a greater problem than when all deals had to be signed by hand. It is not the police contracting-out of investigating fraud cases, nor is it a privatisation of the police by the back-door.
Sir John Stevens, Commissioner of the Metropolitan Police Service (MPS) said: "The MPS has always treated fraud seriously and it has been very successful in dealing with serious and complex cases. We are determined to combat corporate fraud, and have now joined forces with the City of London police and the private sector to ensure that our respective expertise and resources are used in the most efficient way. Increased reporting of fraud will aid our intelligence-led strategy. This, combined with improved awareness, robust fraud prevention measures and successful prosecutions, will ensure that fraud is tackled in the most effective way."
Perry Nove, Commissioner of the City of London Police, said: "The difficulties of investigating corporate fraud in ways which are both timely and effective are well rehearsed. The initiative is neither a panacea nor an abrogation of police responsibility, but my judgement is that it will make a beneficial difference in a number of cases and in turn there will be a wider public benefit as the police will be able to move more cases more quickly."
The initiative has been designed to get the maximum benefit from combining the expertise, knowledge and resources of the police and commercial organisations. It will improve the chances of a successful prosecution for a company which suspects it has suffered a fraud because it will be able to use police resources, its own in-house expertise and that of approved organisations. It will not need any changes in legislation, and current relationships between the police and commercial organisations will be unaffected.
The initiative has been developed over the last year to make sure fraud is dealt with more effectively. It will start in London from 1 April for one year, and if successful will be launched nation-wide after the first year.
The initiative will be run with approved organisations* working alongside the police and under the supervision of a nominated police investigator to investigate suspected cases of fraud.
When the initiative is launched nation-wide it will use accredited investigators who will have to prove that they are competent to investigate complex fraud cases, and sign a contract with the police for every individual case they investigate. They will be subject to strict sanctions should they transgress.
This anti-fraud initiative is being backed by a robust prevention campaign and supported by a CBI guide on combating fraud, produced together with Ernst & Young. The guide, Fraud: Risk and Prevention, clearly sets out how to identify fraud and measures to combat it.
David Sherwin, Head of the Fraud Investigation Group at Ernst & Young, said: "In this connected world, fraud risks are ever increasing. This business guide will help management understand better the risks they are facing and how to combat them."
The Confederation of British Industry/Metropolitan and City of London Police Services scheme to combat company fraud is set out in a Statement of Intent to which a commercial organisation may choose to sign up. The Statement can only be used in the case of significant fraud, and is supported by Acceptance Criteria and Guidelines for reporting the suspected fraud to the Police. The Data Protection Commissioner's Office has been consulted. The Assistant Data Protection Commissioner said that they are pleased to have been consulted by the CBI and Metropolitan Police on the initiative at this early stage - it should help to ensure that any processing of personal data involved will be in full compliance with the Data Protection Act of 1998.
The National Security Inspectorate* will act as the accreditation agency for the pilot scheme when approved organisations such as forensic accounting firms, private investigation agencies, in-house company security staff will carry out the fraud investigations.
Fraud accounts for around £12 billion, or 42.6 per cent of the cost of all crime committed in the UK each year - according to an Association of British Insurers Report in 1998.
Fraud: Risk and Prevention - a guide for companies to help them prevent and deal with company fraud, has been produced by the CBI and Ernst & Young to coincide with the conference. Copies are available from CBI publication Sales, Centre Point, 103 New Oxford Street, London, WC1A 1DU, tel: 020 7395 8071, e-mail: pubsales@cbi.org.uk, price £10.
The Secretary of State for Trade and Industry has presented a petition in the High Court to wind up in the public interest Hever Management Limited.
Hever Management Limited is a resort management company which undertakes the management and maintenance of a hotel, timeshare and leisure facilities at Hever Golf and Country Club at Hever in Kent.
The petition was presented following an investigation carried out by the Department's Companies Investigation Branch under section 447 of the Companies Act 1985.
On the application of the Secretary of State the Court appointed the Official Receiver as provisional liquidator of the company on 22 March 2000. The role of the Official Receiver as provisional liquidator is to protect and preserve the assets and financial records of the company until the hearing of the winding-up petition.
The recent directors of the company have been Mr Ronald Albert Popely (until 5 July 1999), Ms Jane Camille Hawley (until 7 October 1999) and Mrs Dawn Patricia Humphrey. The secretary of the company is Mr Russell Lindsay Miller.
The registered office of the company is at Hever Golf Club, Hever Road, Hever, Edenbridge, Kent, TN8 7NP.
The petition was presented under section 124A of the Insolvency Act, 1986.
The petition is listed for hearing on 2 October 2000 when several related petitions are also due to be heard.
The related petitions were presented by the Secretary of State on 24 August 1999 against:
Hever Worldwide Properties plc (formerly Hever Worldwide Vacation plc and Hever Worldwide Property Club plc) which was incorporated in England as a public company on 6 November 1997.
Monaman Limited (formerly Hever Castle Golf and Country Club plc and Hever Golf and Country Club plc) which was incorporated in England as a public company on 15 April 1993.
Casterbridge Properties Limited which is a company registered in St Vincent and the Grenadines. It has no connection with a company incorporated in England of the same name (company number 3047184) whose registered office is Casterbridge, The Thatchway, Angmering, BN16 4HJ.
Hever Country Hotel Limited which was incorporated in England as a private company on 9 January 1995.
Hever Country Hotel Title Limited which was incorporated in England as a private company on 11 November 1994.
Fanlight Finance Limited which is a company registered in St Vincent and the Grenadines.
and on 30 September 1999 against:
Hever Vacation Club, an unincorporated association based at Hever Golf and Country Club, Hever Road, Hever, Kent TN8 7NP.
On the application of the Secretary of State the Official Receiver was appointed provisional liquidator of all of these seven entities on 5 October 1999.
All public enquiries concerning the company should be made to:
THE OFFICIAL RECEIVER
Public Interest Unit
21 Bloomsbury Street
London WC1B 3SS
*** Forthcoming Creditors Meetings ***
Contributed byhttp://www.insolvency.co.uk
For more detailed information and ALL the British Isles insolvency's (liquidation's, receiverships, administrations, dividends, creditors) please visit http://www.insolvency.co.uk
From 27/03/2000 to 04/04/2000 Number of Creditor meetings : 174 Section Company Time Venue 138 Scotland - Interim Liquidator calling Creditors Meeting 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 29/03/2000 Leisure Sport (Oban) Ltd 12.00 pm Oban 30/03/2000 Sweeney Demolition Ltd 10.30 am Edinburgh 03/04/2000 New South Mills Ltd 11.00 am Dundee 04/04/2000 HDS Systems Ltd 12.00 pm Falkirk 23 Administrator Calling a meeting of Creditors 29/03/2000 Queens Park F C Ltd -The 02.00 pm Glasgow 30/03/2000 M & P McCarthy Brothers Ltd 10.00 am London 31/03/2000 Barry Stafford MG Parts Ltd 10.30 am London Moss Europe Ltd 10.30 am London Moss International Group Ltd 10.30 am London Moss International Holdings Ltd 10.30 am London Moss International Ltd 10.30 am London Naylor Brothers MG Parts Ltd 10.30 am London 48 Receiver calling unsecured Creditors Meeting 27/03/2000 L & P Plastics Ltd 11.00 am London 28/03/2000 Jebcorp Trading Ltd 12.00 pm London 03/04/2000 Pipework International Ltd 10.00 am Sheffield 98 Creditors Voluntary Liquidations 27/03/2000 AFS 2000 Ltd 11.15 am Southend-on-Sea AFS Garage Ltd 10.30 am Southend-on-Sea Abercon House Ltd 02.30 pm London Academy Glass & Glazing Co Ltd 12.00 pm London Adhesive Paper Products Ltd 11.00 am London Ampole Ltd 12.00 pm London Euro Fashion (2000) Ltd 04.00 pm London Extreme Autos Ltd 11.00 am Chelmsford FX International Ltd 11.00 am Northampton First Klass Promotions Ltd 10.30 am Guildford Fitmay Produce Ltd 03.00 pm London Girgios Ltd 11.00 am London H E M A C Building Services Ltd 10.30 am Marlow Hale Office Supplies Ltd 11.30 am Altrincham Harbour & Coastal Engineering Ltd 02.30 pm Plymouth L Searle Insulations Ltd 11.00 am Ipswich Leonet Ltd 11.00 am London Logic Step Ltd 10.30 am London Martex International Ltd 10.30 am Gloucester Metropolitan Construction Services Ltd 11.00 am London Pile Breaker (UK) Ltd 02.30 pm Plymouth Pile Breaker Ltd 02.30 pm Plymouth R Ormrod Ltd 11.30 am Blackpool Response Courier Systems Ltd 11.30 am London Retail Broadcast Services Ltd 11.00 am London T H P Engineering Ltd 02.30 pm Leicester Y K Construction Ltd 11.30 am Walsall 28/03/2000 Airplan (UK) Ltd 10.30 am Guildford Altafield Ltd 12.00 pm London Chiltern Furniture (1998) Ltd 11.00 am Harpenden Crown Plastics Ltd 02.00 pm London Curtain Trading Centre Ltd -The 11.00 am Barnet Cyclone Marketing Ltd 02.00 pm Halesowen Derry Construction Ltd 11.00 am London Flowline International Ltd 10.15 am Grantham H H Bushell & Co Ltd 12.00 pm Walsall Highland Express (Inverness) Ltd 11.30 am Glasgow Highland Express Ltd 11.30 am Glasgow Kaire Europe Ltd 11.30 am Worcester Latchly Management Ltd 11.00 am London Le Switzerland Watch Super Serv Ltd 11.30 am London Lexcreed Ltd 10.30 am Liverpool Norman J Drew & Partners Ltd 11.45 am Croydon Recreational Design & Construction Ltd 11.30 am Leicester SCA Quantum International Ltd 01.15 pm Southampton Sign Centre (Swindon) Ltd 10.30 am Swindon Skillsun Ltd 10.15 am Newcastle Streetwise Clothing Co Ltd 03.00 pm London Wang (UK) Ltd 11.00 am Hounslow Wavertech Ltd 12.00 pm Glasgow West Four Deco Ltd 02.00 pm Harpenden 29/03/2000 Advanced Lining Systems Ltd 11.30 am Brighton Armada Cleaning Services Ltd 11.30 am Tunbridge Wells Automotive Electrical Centre Ltd 10.30 am Droitwich Spa Berryman Barker Ltd 11.30 am Manchester British Deming Association Ltd - The 10.30 am Salisbury D Kirk (Dysart) Ltd 03.30 pm Glenrothes Duopost Ltd 11.30 am Liverpool Euroshed Import/Export Ltd 11.00 am London Fern Solutions Ltd 12.00 pm Glasgow Francesco Gentile E F LLI (UK) Ltd 11.00 am London Genfields Ltd 12.00 pm London Gordon Haigh Insurance Consultants Ltd 11.00 am North Shields Grandwear (Leicester) Ltd 11.30 am Leicester Great Western Engineering Ltd 10.30 am Abingdon Learning in Business Events Ltd 10.30 am Egham Leisuremotion Ltd 12.00 pm London Magpies Nest Ltd - The 01.00 pm London Nationwide Heating & Plumb Serv Ltd 02.00 pm London Platinum Systems Ltd 12.30 pm Inverness Sovereign Woodlands Ltd 11.00 am Brighton Specialised Corporate Print Ltd 12.00 pm London Tempera (Air Conditioning) Ltd 11.30 am Nottingham 30/03/2000 A C W Tipping Co Ltd 11.00 am Corsham A J Still (Motors) Ltd 11.30 am Crawley Aircon Realisations Ltd 03.00 pm London Automation Handling Ltd 12.00 pm Glasgow Avonside Precision Machining Ltd 03.00 pm Glasgow Blakesware Property Co Ltd 12.00 pm London Cartec Car Sales Ltd 11.00 am Leicester Dataman Direct Ltd 10.00 am Sheffield Enigmadual Ltd 02.30 pm Liverpool Glass Cooling Systems Ltd 11.00 am Hull Hugh Dickson Ltd 11.30 am Liverpool International Parcel Systems Ltd 11.30 am Croydon James Kingston Ltd 12.00 pm Cardiff John Scanlon Motor Services Ltd 11.30 am Glasgow M C International Ltd 11.00 am Southend-on-Sea Mooney Scott Distribution Ltd 10.30 am Driffield R B Coachworks Ltd 11.00 am Ashford Roadrunner Organisation Ltd 10.30 am London Salter Baker Asso (Education) Ltd 11.00 am Arundel Sam Dodds Ltd 11.30 am Anfield Sandon Ltd - The 12.00 pm Anfield Slates Are Us Ltd 03.30 pm Southend-on-Sea Soif (UK) Ltd 10.30 am London Spirecrown Ltd 11.30 am Lutterworth Steward Group Ltd 12.30 pm Hull Trends Productions (London) Ltd 11.00 am London Virusolve Ltd 10.00 am Halifax Vossen Laboratories (UK) Ltd 11.30 am Blackburn 31/03/2000 AMS Transport Ltd 11.00 am Birmingham Alpha Office Machines Ltd 10.15 am Cardiff Bates Neon Ltd 10.00 am Southend-on-Sea Cableco Romans Ltd 10.30 am Leeds Cymtek Entertainment Simulators Ltd 11.30 am London Derma Chemicals Ltd 11.30 am Lutterworth Euronet Communication Ltd 02.00 pm London Frazer Freight Services Ltd 03.30 pm Slough Frazer International Freight Serv Ltd 03.30 pm Slough Geoblock Interface Ltd 11.45 am London Geoblock Interface Supplies Ltd 10.45 am London Innovations (South Wales) Ltd 10.30 am Pentwyn Intermex Consultants Ltd 11.00 am London J & M Bryn Ltd 11.30 am Liverpool K & M Davies (Transport Division) Ltd 12.00 pm Cardiff L B Y Ltd 11.00 am Leeds Livecroft Ltd 11.30 am Lutterworth London 4x4 Accessories Ctre Ltd - The 11.00 am London Maius Ltd 11.00 am Hull Metromart Ltd 03.00 pm Billericay P & S Filters Ltd 11.00 am Northampton Quadrant (Express) Ltd 12.00 pm London Reseda Ltd 12.00 pm Gerrards Cross SLT McAndrew Ltd 11.30 am Ashby-de-la-Zou Shire Project Services Ltd 11.00 am Birmingham TRS Consultants Plc 03.15 pm London TRS Consulting Plc 03.15 pm London 03/04/2000 A L C Blackburn Ltd 11.30 am Blackburn Alumeta Ltd 11.00 am Manchester Ashleys Plymouth Ltd 11.00 am Plymouth Clearview Leisure Ltd 11.00 am London Corporate & Legal Securities Ltd 11.00 am Maldon Degen Construction Ltd 11.00 am London Dicemoat Ltd 11.30 am London Globelast Ltd 10.30 am London Millennium Joinery Services Ltd 11.30 am Hornchurch Reflex Telecoms Ltd 12.30 pm Poole Ship Management & Logistics Ltd 12.00 pm London 04/04/2000 2 Print Ltd 11.00 am Wyboston Armagate Ltd 12.30 pm London Be'Kleen (Stockport) Ltd 11.30 am Manchester Blakeley Painters Ltd 02.30 pm Manchester C J Motor Group Ltd 11.15 am East Linton Cablemaster Ltd 11.15 am Bromley Controlled Environment Systems Ltd 11.30 am Altrincham I S R Holdings Ltd 11.00 am Marlow Information System & Research Ltd 11.00 am Marlow James Fraser & Son (Ayr) Ltd 11.00 am Ayr Nelson Glass Ltd 11.00 am Manchester Ozone Laundry Co Ltd 12.00 pm Royston Phoenix Euro Ltd 02.00 pm London Q Squared Ltd 12.00 pm Aylesbury South of Scotland Home Weavers Ltd 10.00 am Edinburgh Stylesearch Ltd 11.30 am Lutterworth
TW LW TW LW
USA 1.57 1.57 Canada 2.32 2.32
Austria 22.41 22.41 Portugal 326.56 326.56
France 10.68 10.68 Belgium 65.70 65.70
Finland 9.68 9.68 Italy 3153.97 3153.97
Germany 3.18 3.18 Sweden 13.71 13.71
Holland 3.58 3.58 Switzerland 2.62 2.62
Spain 271.03 271.03 Ireland 1.28 1.28
Australia 2.59 2.59 Denmark 12.13 12.13
Hong Kong 12.27 12.27 Euro 1.62 1.62
Africa Com 10.19 10.19 Saudi Arabia 5.91 5.91
India 68.69 68.69 Malaysia 5.99 5.99
Singapore 2.70 2.70 Norway 13.29 13.29
Japan 167.15 167.15
TW This week LW Last week.
Dialog announced pre-tax losses of 3.86 million pounds, after exceptional charge, on turnover of 148.7 million, for the year ending 31st December 1999. Earnings per share stand at 23.7p.
M J Gleeson announced pre-tax profits of 4.59 million pounds, on turnover of 141.1 million, for the six months ending 31st December 1999. Earnings per share stand at 31.7p.
John Laing, the construction group, announced pre-tax profits of 52.7 million pounds, after exceptional credit, on turnover of 1,792 million, for the year ending 31st December 1999. Earnings per share stand at 44p.
Telewest Communications, the cable operator, announced pre-tax losses of 529.9 million pounds, on turnover of 792.5 million, for the year ending 31st December 1999.
Chase Manhattan, America's third biggest bank, is negotiating to buy Robert Fleming, a British investment bank and asset manager. Fleming is one of the few remaining independent British investment banks, as Schroders was bought by America's Citigroup in January.
Source - The Economist
Scottish & Newcastle, the UK's largest brewer, paid FFr18 billio ($2.6 billion) for brewing interests belonging to Danone, a French food group, in the latest manoeuvre in European brewing consolidation. The acquisition of Kronenbourg, France's largest brewer, and of its Belgian and Italian operations will make S&N Europe's second-largest brewer. Danone will concentrate on healthier products such as yoghurt and bottled water.
Source - The Economist
Agrochemicals is another fast consolidating business. BASF, a German chemicals giant, agreed to acquire Cyanamid, a pesticide and herbicide maker, from American Home Products for $3.8 billion. AHP can now concentrate on drugs. BASF will gain access to American markets for its enhanced range of products.
Source - The Economist
Hutchison Whampoa, a Hong Kong conglomerate, sold a third of its 5% stake in UK's Vodafone AirTouch, a mobile-phone operator, for 3.2 billion pounds ($5 billion), in the largest-ever private share placement.
Source - The Economist
EM.TV, a German television company best known for its recent purchase of the Muppets, took a 50% stake in Formula One motor-racing for $1.65 billion. EM.TV said it wanted to purchase a further 25% from Bernie Ecclestone, owner of the rest of the holding company.
Source - The Economist
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:Proposed acquisition by BASF Group of Chemdal Group
Proposed acquisition by Brady Corporation of Critchley Group plc
Proposed acquisition by Fresenius Medical Care AG of the non-US dialysis business of Total Renal Care Inc., namely Total Renal Care (UK) Ltd
COMPETITION COMMISSION CLEARS CWC/NTL MERGER
Stephen Byers, Secretary of State for Trade and Industry, last week published the report of the Competition Commission (CC) on the proposed merger between NTL Incorporated (NTL) and the cable interests of Cable & Wireless Communications plc (CWC). He announced that the CC has concluded that the proposed merger may be expected not to operate against the public interest.
Mr Byers said:
"The Competition Commission has found that the proposed merger between NTL and the cable interests of CWC may be expected not to operate against the public interest.
"The Competition Commission reported that, 'contrary to the views widely expressed by media commentators that the need for a reference was difficult to understand, the reference elicited strong expressions of concern about a number of issues'. Main concerns were about the merger's effect on the wholesale market for pay-TV content and on the balance of market power between pay-TV platforms and, in particular, between cable and satellite services. There was also some concern about the effect of the merger on telecommunications services. However others saw scope for the merger to enhance competition and particularly competition with BSkyB.
"NTL is the second largest operator of cable telephone and pay-TV service in the UK, and CWC the third largest. The combined company would account for 27 per cent of all subscribers to pay-TV in the UK. In this market British Sky Broadcasting Group plc (BSkyB), which uses satellite transmission, is the leading supplier with a share of approximately 50 per cent".
"The Competition Commission found that the merger would have no direct effect on competition between NTL and CWC, as they operate in different geographical areas. Nor did it find any evidence that the merger would potentially reduce direct or indirect competition, such as competition amongst cable operators themselves in innovation or the copying of best ideas.
"The Competition Commission has reported that a main concern was whether the merger would increase or enhance the market power of the merged entity in relation to that of pay-TV channel or programme providers. However the Commission did not believe that the merger would substantially affect the market power of the enlarged NTL relative to content providers, as NTL would continue to need to offer consumers a variety of content and this need would increase when the introduction of digital technology increases the number of channels that could be carried. Also the content providers would themselves have a degree of countervailing power. Nor did the Commission believe that NTL's intention to acquire broadcasting rights would distort competition in the market for the acquisition of such rights.
"The Competition Commission added that the merger might rather enhance the efficiency with which the technological advantages of cable could be deployed. This would have beneficial effects particularly on competition between pay-TV platforms, though BSkyB would retain a strong position in the market. Thus there should be benefit to consumers in the longer term.
"Nor did the Competition Commission see adverse effect on competition in telecommunications given the low market shares of both NTL and CWC compared to BT".
"However the Commission acknowledged that there was considerable uncertainty about how the relevant markets would develop. Some of the issues raised, for example whether there should be open access to the cable networks, went substantially wider than the effect of the merger. Should NTL or the cable industry in general prove to have market power in future, the industry was already subject to a regulatory structure with the powers to examine such issues at that time to remedy any adverse effects that might be seen to have arisen".
FORESIGHT LOOKS AT THE FUTURE FOR ELECTRONIC RETAILING
Over the next five years the growth of personal e-commerce will be driven by women and the development of new technologies, a report by the Foresight Retail E-commerce Task Force said last week.
Clicks and Mortar: the new store fronts is a consultation report on how e-commerce might affect the future of retailing. It brings together a range of recent forecasts on e-commerce and develops four alternative scenarios to show how different technological, business and social trends could shape the future of the 'electronic store front'.
Announcing the report at a business breakfast on 'Reaching the Global Consumer', Lord Sainsbury, Minister for Science, said:
"This report examines the revolution that is taking place in retailing as the internet and new technologies bring e-tailing from the PC in the study into the centre of the home. These new technologies include interactive television, game consoles and third generation mobile phones. The rewards for those retailers and service providers who develop alternative strategies to reach consumers through a range of alternative technological platforms are huge.
"The report points to a UK market in personal e-commerce of some £7 billion or more in 2003. But the report does not see a Britain of empty high streets: rather mortar-based retailers can continue to thrive if they develop policies to retain customer loyalty through the provision of quality goods and services."
In her foreword to the report, Patricia Hewitt, Minister for Small Business and E-commerce, says:
"This report brings together current thinking about e-commerce and retailing. But in true Foresight fashion it has gone beyond these trends to look to the future. For example, the report indicates that an increasing number of women will use e-commerce for their shopping needs. This will present many new opportunities for retailers."
The consultation closes on 1 June 2000. All views are welcome.
Copies of Clicks and Mortar: the new store fronts (URN 00/648) are available free of charge from the Foresight Retail e-commerce task force, by faxing a request to 020 7215 6760, or electronically on the Foresight Knowledge Pool: www.foresight.gov.uk
The UK Foresight programme brings together business, Government, the science base and others to develop and act on shared visions of the future.
The current round of Foresight began in April 1999, and work is being taken forward through three thematic and ten sectoral panels, each looking at the future for a particular area. Thematic panels: Ageing Population; Crime Prevention; Manufacturing 2020. Sectoral panels: Built Environment and Transport; Chemicals; Defence, Aerospace and Systems; Energy and Natural Environment; Financial Services; Food Chain and Crops for Industry; Healthcare; Information, Communications and Media; Materials; Retail and Consumer Services. There is a further industry-led panel looking at Marine issues and a task force looking at the impact of e-commerce on business processes. All panels are looking at the implications of their proposals for education, training and skills and sustainable development.
Over the next few months Foresight panels will be publishing their emerging thoughts for consultation. Details of these and other panel activities can be found in the Foresight Knowledge Pool: http://www.foresight.gov.uk or by sending a fax to the Foresight Directorate on 020 7215 6715.
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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