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 5 Issue 17
Dated: 29 April 2001
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKUS SLOW DOWN: WE CAN TAKE IT, SAYS ITEM
London, 23 April 2001: The Ernst & Young ITEM Club's quarterly report for Spring 2001 (Q1) disputes Gordon Brown's sunny 2.25 – 2.75 per cent GDP growth forecast for this year. It finds that the economy is slowing and that we can expect little beyond the Club's last forecast GDP growth of 2 per cent.
Other forecasters are coming to the same conclusion while the Club continues again, as its last forecast, to emphasise the necessity for interest rate cuts to 5 per cent or less before the year-end to combat recessionary tendencies. The most obvious threat comes from the US. But UK consumers have been spending more than they are earning and are feeling the pinch now that stock market gains and Millennium bonuses have evaporated. The effects of fiscal drag continue to eat into savings, too. Consumers simply aren't in a position—as Gordon Brown seems to think—to step into the breach and take the edge off the impact of a precarious US economy and slowing world trade.
Thus far, the Ernst & Young ITEM Club has said that the UK has weathered recessionary squalls very well. The huge raft of profit warnings in the technology and manufacturing sectors both here and in the US make a storm look increasingly likely, however. The US stock market isn't responding to interest cuts as it did in 1998—inflation is embedded in the US economy rendering this medicine ineffective. Suddenly Alan Greenspan is losing credibility and a lack of confidence is starting to worm its way through the US economy resulting in the 86,000 drop in employment during March alone. There is thus some risk of a sustained depression in equity prices and the ITEM Club has projected the effects of this over the coming year. The outcome is that if Alan Greenspan does not manage to save the day and talk the US stock market back up, the Ernst & Young ITEM Club forecasts that UK growth will be only one per cent this year and next year, and this assumes that the Bank of England cuts interest rates to three and a half per cent.
Professor Spencer, the Ernst & Young ITEM Club's economic advisor says: "It is not the growth angle that is important but the fact that the Bank of England, unlike Alan Greenspan, is free to cut interest rates in a non-inflationary environment and cut them again if it has to. That is why we think that if the US goes downhill, the UK will not fare so badly. Interest rate flexibility will insulate us from the worst.
"What's more, the British economy is in a pretty robust state. Any of the huge shocks that have been thrown at the economy over the last three months—the US slowdown, the stock market crash, our own TMT bubble bursting, extreme weather conditions, transport problems, and foot and mouth—would have sent business and consumer confidence into a tailspin elsewhere or in the past. Mrs Thatcher and the conservative government set the legislative and economic framework for a new Britain. Gordon Brown and Tony Blair picked this up and developed it by giving the Bank of England control of monetary policy, for example. So now the UK can weather the US slow down. Furthermore, our alternative forecast has a silver lining. Its 3.5 per cent interest rates mean a five per cent mortgage rate which would protect jobs and free up income."
So what does this mean for Blair's prospects for re-election?
Economists and political analysts have, according to Professor Spencer, always had a lot of fun exploring the link between economic performance, consumer confidence and political performance in the opinion polls—and these relationships have, traditionally, been easy to plot. But the Ernst & Young ITEM Club's research into the Thatcher, Major and Blair reigns show that there is no longer any guarantee that the consumer will give politicians the credit for low interest rates. A key diagnostic for the political analyst has now failed.
Says Professor Spencer, "In the old days, there was a very tight relationship between economic indicators and political popularity. You could predict opinion polls by looking at interest rates since consumer confidence was driven by those interest rates. But it seems the Exchange Rate Mechanism débâcle destroyed the model. John Major lost his authority to the degree that when Mr Lamont cut interest rates, the Tory poll lead did not recover. Since then, our analysis shows that this predictive model is well and truly dead."
Professor Spencer says that in the past the British electorate has showed itself to be sadly gullible—twice believing that when interest rates were cut before an election, they wouldn't go up afterwards (they did in 1983 and 1989). "These days we need more than low interest rates to make us feel good—like having confidence in politicians because they are seen to be in control of events. Blair's poll rating remained untouched when consumer confidence was hit by the world economic crisis in 1998 but declined on his mismanagement of the fuel crisis.
"If consumer confidence deteriorates over the next few weeks, at least New Labour will have nothing to fear from the old predictive model so beloved of the psephologists. In turn, the election analysts can be sure that low interest rates will no longer buy votes. Mismanagement of another foot and mouth or fuel crisis could, however, spell disaster."
MANUFACTURING FIGHTBACK QUASHED BY U.S. ECONOMIC SLOWDOWN - CBI SURVEY
The US economic slowdown has quashed hopes of an upturn in manufacturing.
The Confederation of British Industry's quarterly industrial trends survey, published last Wednesday, shows weakening orders, output and business confidence.
Domestic orders fell over the past four months at the fastest rate since July 1999. Thirty per cent of firms said domestic orders were down, 16 per cent said up. The balance of minus 14 per cent compares with minus 3 in January and minus 8 last October.
Over the next four months, firms expect domestic orders to fall at the fastest rate since January 1999. They also expect export orders to fall further, having declined over the past four months at the fastest rate since July 2000.
Output growth ground to a halt over the past four months, despite expectations of a significant increase. Twenty eight per cent said output was down, 27 per cent said output was up. The balance of minus 1 per cent compares with plus 5 in January and minus 3 in October.
Firms recorded a fall in business confidence for the fifth successive survey, the biggest drop since January 1999. But the CBI cautioned against reading too much into the size of the decline, which may reflect both the US slowdown and the foot-and-mouth crisis.
Nick Reilly, Chairman of the CBI's Economic Affairs Committee and Managing Director of Vauxhall Motors, said: "Manufacturers are clearly facing difficult times. The last survey suggested a small step forward, but now we seem to have taken two steps backwards. The next few months will be crucial."
Mr Reilly said the survey had convinced CBI members to press the Bank of England for a further quarter-point cut in interest rates. "We do not wish to overstate the likely scale of the UK slowdown," he said. "We are not in the same position as the US, and the UK economy remains fundamentally strong. But we do need a quarter-point rate cut to limit the downturn."
Over the past four months firms saw stocks of raw materials, finished goods and work in progress all rise together for the first time since October 1996. Companies plan to run down stocks over the next four months in a bid to match output more closely with demand.
The number of firms working below capacity rose to 64 per cent, significantly above the long-term average. Employment fell and companies expect it to continue falling over next four months, at the fastest rate since July 1999.
Domestic prices fell at the slowest rate since April 1998. But firms had expected prices to rise and they now forecast further reductions. Unit costs were unchanged over the past four months, suggesting a further squeeze on profit margins.
Plans to invest in plant and machinery remain weak over the next 12 months, although less negative than any point over the past three years. The most important factor discouraging investment was uncertainty about demand, at its highest level as a constraint for over two years.
NEW £100 PENALTY WILL HIT POOR AND IGNORANT SELF-EMPLOYED HARDEST WARNS PKF
Anyone who started up their own business on or before January 2001 must register with the Inland Revenue before 30 April 2001 to avoid a new £100 penalty, warns Sheena Sullivan, a tax partner with the accountants and business advisors, PKF.
Anyone starting up on their own now has three months to notify the Inland Revenue of their liability to pay Class 2 National Insurance contributions (NIC) so time is also running out for new businesses set up in February this year.
The registration for Class 2 NIC will also be treated as notification for tax and Class 4 NIC purposes so that the newly self-employed will only have to notify the Inland Revenue once. This new requirement means that the old six-month limit for registering as self-employed has disappeared.
Says Sheena Sullivan, "Unfortunately, this new penalty is most likely to affect those who are ignorant or who cannot afford to take early professional advice on the wide-ranging implications of their new self-employed status. It also makes the assumption that there is a definitive date on which an individual changes to a self-employed status. Many people are still in employment when they start up a new business or gradually turn a hobby into a business over a period of time. So it's not as straightforward as it seems to identify the exact date."
CHAMBERS APPLAUD GOVERNMENT DECISION ON SUPPLEMENTARY BUSINESS RATE
The British Chambers of Commerce last Tuesday warmly welcomed the Government’s decision to drop its proposals for a local supplementary business rate in favour of ‘US style’ Business Improvement Districts. The decision was announced by the Prime Minister, Tony Blair MP, in his speech Improving the Quality of Life in South London and follows months of campaigning by the Chamber network.
The proposal, which was contained within last year’s Local Government Finance Green Paper, would have given local authorities the ability to levy a local supplement on the business rate without the consent of the local business community. Chambers’ estimates had put the cost of the rate to business at £2.75 billion over five years, with a bill in excess of £1 billion per year thereafter.
Ian Fletcher, Head of Policy at the British Chambers of Commerce said:
" The Government’s reconfigured proposals instead reflect the BCC’s preferred option of American-style Business Improvement Districts. These are business-led projects; based within defined geographical areas, and designed to tackle local problems identified by the business community. Crucially, the new proposal gives business the opportunity to vote on whether a Business Improvement District goes ahead.
" This is a great example of the Government listening to the voice of the business community. The supplementary business rate proposal was ill-conceived from the outset, increasing the tax burden on business and threatening to ruin the relationship of business and local authority. The new proposals are what Chambers of Commerce have been advocating and we will now be looking very closely at the detail to ensure that they truly benefit the business community."
The Lord Chancellor's Department on the 25 April 2001 published figures for mortgage possession actions entered in the county courts of England and Wales for the first quarter of 2001.
Table 1 shows the number of mortgage possession actions entered for each year, by quarter, since 1994. During the first quarter of 2001 18,168 mortgage possession actions were entered and a total of 12,001 orders were made - 7,510 of which were suspended orders.
The figures do not indicate how many houses have been repossessed through the courts; not all the orders will have resulted in the issue and execution of warrants of possession.
In the first quarter of 2001 the number of actions entered was nearly 11% less than the first quarter of 2000. For the same period, figures show a increase nearly 3% in orders made (nearly 63% of orders made were suspended - compared to 60% in the first quarter of 2000).
Explanatory Notes
Table 1 MORTGAGE POSSESSION ACTIONS
(Local Authority and Private)
Year Quarter Actions Entered Orders Made1
1995 1 21 345 18 830
2 19 560 18 801
3 22 084 19 028
4 21 181 18 599
------ ------
84 170 75 258
1996 1 23 987 20 297
2 19 253 18 825
3 19 092 16 953
4 17 526 15 128
------ ------
79 858 71 203
1997 1 16 298 14 649
2 16 566 14 550
3 16 778 13 999
4 17 431 13 958
------ ------
67 073 57 156
1998 1 18 536 16 497
2 19 449 16 247
3 22 919 17 101
4 23 932 16 210
------ ------
84 836 66 055
1999 1 22 525 18 057
2 19 811 15 483
3 19 478 13 997
4 19 794 12 657
------ ------
81 608 60 194
2000 1 20 371 11 685
2 17 343 14 261
3 17 786R 13 435R
4 17 525 12 690
------ ------
73 025 52 071
2001 1 18 168 12 001
1 Including suspended orders R Revised since last publication Lord Chancellor's Department
Selborne House, 54 Victoria Street, London SW1E 6QW ENDS
CONCERN OVER REASONS FOR PROFIT WARNINGS
An increasing number of companies within the engineering sector are announcing profit warnings as a result of failings in their own internal controls.
Industry experts at business advisory firm KPMG are concerned at the impact that this is having on market capitalisations and believe that many of these problems can be avoided.
Typical of the problems being experienced are inconsistent audit procedures, lax capital expenditure controls, an inability to properly deal with major contracts and the poor visibility of senior management.
Jeremy Butler, Industrial & Automotive Products industry manager at KPMG, commented: “We have seen that this is increasingly becoming a problem for medium sized companies with numerous international divisions. It all stems from the inability of some central management teams to look after so many international divisions. To some degree, this is not that surprising as these businesses may have plenty of overseas locations, all managed through a divisional management structure.”
“While it is obviously not impossible to manage an organisation of that scale, their structure can cause problems, particularly at the level of management just below divisional management. Executives working at that level are not as experienced as the divisional management yet still have some very complex businesses to oversee. On top of that, with such a tiered structure, control issues can be driven further and further down an organisation’s structure, making problems virtually `opaque` and untrackable from senior management’s point of view.”
KPMG believes that most of these problems arise as local management struggle to meet the demanding targets set by group management, digging themselves further into trouble the longer this goes unchecked. More often than not, this only comes to light when new management is appointed and there is a concerted effort to clear out past problems, uncovering these “black holes” in the process.
Unfortunately, by then the situation has often spiralled out of control and the business has to face the possibility of just one overseas division’s failings having a major impact on the whole group.
Butler continued: “This problem has been around for a few years but is now becoming more noticeable. Unfortunately, throwing money at the problem does not guarantee success. What is essential is a proper internal audit function which could pick up on the sort of internal control problems which seem to be bringing businesses down at the moment. What many people do not realise is that internal audit is not purely a financial process. Being so close to the heart of the business, it can also assess operational risks and controls and help determine acceptable levels of residual risk. Unfortunately, many companies, faced with low margins, have recently been cutting group overheads such as internal audit. This has increased risk and, as such, is a false economy.”
“With these sorts of afore-mentioned problems in abundance right now, a proper assurance function is essential to the well-being of any business. Without it, while some businesses may recover from problems like this, the majority will undoubtedly feel a massive impact on their share price.”
On 25 April 2001 Cargo Forwarding International plc was wound up in the High Court on the petition of the Secretary of State for Trade and Industry presented in the public interest on 9 March 2001. The petition followed enquiries by the Companies Investigation Branch of the DTI under the provisions of s447 of the Companies Act 1985.
On the application of the Secretary of State the Court appointed the Official Receiver as the provisional liquidator of Cargo Forwarding International plc pending the hearing of the petition. The Official Receiver is now liquidator of the company.
Cargo Forwarding International plc was incorporated in 1994 and traded as a storage and freight forwarding business. The DTI enquiries identified that:
The Official Receiver will be responsible for investigating the circumstances of the company's failure and the conduct of the directors in relation to the company affairs. In appropriate cases, the Official Receiver can take disqualification proceedings or refer matters for prosecution.
The registered office and trading address of Cargo Forwarding International plc was 96 London Industrial Park, Roding Road, London E6 4LS. It also had warehouse premises at Unit 38, Imex Business park, Hamilton Road, Longsight, Manchester.
The petition was presented under s124A of the Insolvency Act 1986.
Creditors or anyone who has given the company goods for consignment that have not arrived at their destination, or believe that the company might have goods in storage belonging to them, should contact:
June Williamson at
The Insolvency Service
Public Interest Unit
PO Box 203
21 Bloomsbury Street
London WC1B 3Q
BIG BEAT IN RECEIVERSHIP
Established pub, club, restaurant and hotel business Big Beat is in receivership.
Headquartered in Glasgow, the company operates 23 licensed premises including establishments in London, Nottingham and Sydney, Australia as well as throughout Scotland, with a significant concentration in Glasgow. It employs around 400 staff and has a turnover of approximately £26m.
The receivership has been triggered by the recent revocation of the public entertainment licence for the company’s London club, Home. This severely curtailed the trading position of the venue which, given the investment at this location, resulted in cashflow difficulties across the group.
Receiver Blair Nimmo of KPMG Corporate Recovery is planning to continue trading each of the business units as a going concern whilst seeking a buyer or buyers for the entire group. He commented:
“Big Beat has a strong portfolio of pubs, clubs, restaurants and hotels, each of which shall continue to trade as normal until a buyer is found. This is a fantastic group of licensed premises, each strong in its own marketplace and is a rare purchase opportunity in the licensed trade. We are confident of a significant level of interest in the business and assets.”
*** 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 30/04/2001 to 08/05/2001 Number of Creditor meetings : 170 Section Company Time Venue 138 Scotland - Interim Liquidator calling Creditors Meeting 01/05/2001 Hutek International Carbon Ltd 12.00 pm Glasgow 02/05/2001 Ideal Format Photographic Ltd 10.30 am Edinburgh Riverbank Hosiery (Crosshouse) Ltd 11.00 am Glasgow Rockhill Civil Engineering Ltd 03.00 pm Paisley 23 Administrator Calling a meeting of Creditors 01/05/2001 Capsulam International Ltd 11.00 am Guildford 03/05/2001 Churchfield Associates Ltd 11.30 am London Churchfield Associates West Ltd 11.30 am London 08/05/2001 Chromelink Ltd 10.15 am London 48 Receiver calling unsecured Creditors Meeting 30/04/2001 Virginia Stock Ltd 10.30 am Bristol 02/05/2001 Hooper Metrocab Ltd 11.05 am Wishaw Metrocab (UK) Ltd 11.00 am Wishaw STW Realisations Ltd 10.30 am Newmarket Seckloe 24 Ltd 10.00 am Newmarket 03/05/2001 Team Central Ltd 03.30 pm Castle Bromwich 08/05/2001 Francis Ward Holdings Ltd 11.00 am Manchester 67 Scotland - Receiver calling Meeting of unsecured Creditors 04/05/2001 Crube International Ltd 03.00 pm Aberdeen 08/05/2001 Acreforth Ltd 03.00 pm Glasgow Bordercrown Ltd 03.00 pm Glasgow Braidmount Ltd 03.00 pm Glasgow Braidrise Ltd 03.00 pm Glasgow Burghbreak Ltd 03.00 pm Glasgow Jimmy Nicks Properties Ltd 03.00 pm Glasgow 84 N. Ireland - Creditors Voluntary Liquidation 02/05/2001 MGM Partnership Ltd 10.00 am Belfast Simms & Young Ltd 02.30 pm Belfast 03/05/2001 Newmills Ltd 03.00 pm Belfast 04/05/2001 J D Coulson Ltd 11.00 am Belfast 95 Members converting to Creditors Voluntary Liquidation 03/05/2001 Seaquest Systems Ltd 10.30 am Manchester 98 Creditors Voluntary Liquidations 30/04/2001 Affinity Group Ltd - The 10.00 am Kingston upon Alpha Business Services Ltd 11.00 am London Bright Accommodations Ltd 11.00 am London Central Properties (Estates) Ltd 02.00 pm London Cromwell Manor Essex Ltd 11.15 am Basildon Divemex Ltd 11.00 am Caersws Gasteam Ltd 11.30 am London Goalnet Internet Services Ltd 03.00 pm Barnet Goodings Ltd 02.15 pm London Havana Leisure Ltd 11.30 am Worcester Heggies (Hereford) Ltd 11.30 am Bristol J P Harrison Ltd 11.00 am Glasgow J P I Haulage Ltd 10.30 am Shedfield Lark Lane Developments Ltd 12.00 pm Hale Monsoon Bar & Grill Ltd 02.00 pm London Sei-Mitsu Solutions Ltd 12.00 pm London Solution-E Ltd 10.00 am London Southern Auto Spares Ltd 11.00 am Guildford Spacemaker Plant Ltd 11.30 am Newport Sprayquick Services Ltd 12.00 pm Manchester Steve West Welding Ltd 10.15 am Ripley Thompsons Steam Laundry Ltd 02.30 pm Swansea Unipharma.Net Ltd 11.15 am Glasgow Vision Multimedia & Print Ltd 11.00 am London 01/05/2001 ARQ Ltd 11.00 am Bristol Bradford City Furniture Centre Ltd 10.15 am Bradford CPR Removals & Storage Ltd 12.30 pm Birmingham Countdown Services UK Ltd 11.30 am Sileby DHL Construction Ltd 12.00 pm Manchester DJW Export Services Ltd 03.00 am London Express Joinery Works Ltd 11.00 am North Shields Filtration Assemblies Ltd 11.15 am Lancaster Giftware International Plc 11.30 am Lutterworth JH Leisure Training & Development Ltd 11.00 am Bradford KZN Media Ltd 10.30 am London Law Network Ltd - The 11.30 am Blackburn Litronic Services Ltd 11.00 am St Albans MEM Computers Ltd 11.00 am Stockport Phoenix North West Ltd 11.15 am Preston QSS Ltd 10.30 am Weston-Super-Ma Ritchies Ltd 12.00 pm Glasgow Suzytex Ltd 12.00 pm London Toybox Ltd 10.15 am London Westdraft Design Services Ltd 12.00 pm Glasgow 02/05/2001 ARC Security Systems Ltd 12.00 pm Manchester Accident People Ltd - The 11.30 am Southampton Angel Street Ltd 11.30 am London Answer 42 Ltd 10.30 am St Albans Apple Vehicle Management Ltd 11.30 am Nottingham Bridal Design Room Ltd - The 11.30 am Manchester C P S Bodytec Ltd 10.30 am Sheffield Cantina Ltd 10.00 am London Clark & Evans Ltd 11.00 am Birmingham Commercial Resites Ltd 11.00 am Bristol Connect 25 Ltd 02.30 pm Sileby Cordon Bleu Manufacturing Plc 11.15 am London Cruma Products Ltd 10.30 am Abingdon Crypt Wine Bar Ltd - The 03.15 pm Westhampnett D M Weldon Ltd 02.30 pm Walsall Environmental Comfort Ltd 10.30 am Egham Fingertips Media Ltd 11.00 am London Floor Deck Ltd 10.45 am Southend-on-Sea Gibson Machinery Sales Ltd 11.00 am Ashton-on-Ribbl Kauser Krafts Ltd 11.00 am Oldham Kentrak (Global) Ltd 11.00 am London LV Ltd 11.00 am Halesowen Message Central Plc 03.30 pm London Nationwide Electrical Ltd 11.30 am Widnes Nyro Ltd 11.30 am Cambridge P D Gell & Sons Ltd 11.00 am London Premier Security Manage (Scotland) Ltd 03.30 pm Glasgow Procruma Ltd 11.30 am Abingdon Property World (Internet) Ltd 11.30 am Edgware Punchline Designs Ltd 12.00 pm London Russearl Properties Ltd 02.00 pm London Solent Environmental Services Ltd 12.30 pm Winchester Sybertrade Ltd 11.30 am Truro 03/05/2001 Brisco Rentals Ltd 11.00 am London Emergent Form Ltd 11.30 am Liverpool Grasshopper Babywear (Stranraer) Ltd 11.00 am Wolverhampton Hambleton Lodge Equine Premix Ltd 10.30 am Yarm Hamilton Hargreaves (International) Lt 10.30 am Epsom Harmonics Communication Ltd 11.30 am Lutterworth Heritage Design & Project Manage Ltd 02.30 pm Clifton Moor I Trust You.Com Ltd 11.30 am Hornchurch Midas Property & Investments Ltd 02.00 pm London Nicarig Ltd 03.00 pm London O K Systems Ltd 11.00 am London Peterson Ltd 11.30 am Warminster Riddle Engineering Ltd 02.00 pm Manchester Tripwire Travel Systems Ltd 10.15 am Salisbury W L Harrild & Partners Ltd 11.00 am London 04/05/2001 AHM (UK) Ltd 03.00 pm London Authoronce Ltd 11.30 am London B R Carpentry Ltd 11.00 am Stowmarket Beach Foods Ltd 11.00 am West Sussex Business Dreams Ltd 11.00 am Sutton Butte Mining Plc 11.00 am London Catwalk Fashions (Clacton) Ltd 11.30 am London Corrugated Printing Services Ltd 02.00 pm Newport Creative Interior Solutions Ltd 10.30 am Longeaton Cutting Room Ltd -The 12.00 pm London D K Leisure Ltd 03.00 pm London Evian Logistics Management Ltd 10.00 am London Execichef Ltd 11.00 am Barnsley First Choice Computers (UK) Ltd 11.00 am Swindon Floors Street Demolition Ltd 10.30 am Glasgow Freestyle Sportswear Ltd 12.00 pm Eaton Socon Furniss Engineering Services Ltd 10.30 am Sheffield Good Press Ltd 10.15 am London Health Projects Abroad Ltd 11.30 am Salford Healthxchange.Com Ltd 11.30 am London Industrial Maintenance Supplies Ltd 12.00 pm Kidderminster Infracon Ltd 03.00 pm London Keywise Enterprises Ltd 11.45 am London Marlwood Ltd 12.00 pm London McLachlan Driver Recruitment Ltd 12.00 pm Glasgow Medisource Ltd 11.00 am London Midland Housing Ltd 02.30 pm London Plumbers Mayte Ltd 11.30 am Hornchurch Pregenesis Ltd 11.30 am London Regalbury Ltd 11.00 am Shepton Mallet S M C Mountaineering Ltd 11.30 am Manchester Samson Corporation Ltd 11.30 am Manchester Scanletts Building Services Ltd 12.00 pm London Sprintden Ltd 12.00 pm London Stretchers Ltd 11.15 am Banbury Tradereach Ltd 02.30 pm Henley-on-Thame Tru-Stitch Ltd 03.00 pm Leicester Wharfedale Trading Co Ltd 10.15 am Bradford 07/05/2001 Automotive Solutions Ltd 12.00 pm Lewes 08/05/2001 Arlandia Ltd 11.00 am London Army & Navy Stores Ltd 11.30 am Cardiff At Ricochet Ltd 10.30 am Bristol Bitsofpc.Com Ltd 11.30 am Manchester Caribbean Experience Ltd - The 12.00 pm London Ellison Engineer & Construction Co Ltd 11.00 am Newbury Major Print & Design Ltd 11.00 am Liverpool R C W Steels Ltd 11.00 am Birmingham RJP Positioning Clip Ltd 12.00 pm Southampton Square Format Ltd 01.30 pm Warwick Trash Media Plc 11.00 am Staines Tricast (Sales UK) Ltd 10.30 am London
TW LW TW LW
USA 1.44 1.44 Canada 2.23 2.24
Austria 22.12 22.46 Portugal 322.35 327.23
France 10.54 10.70 Belgium 64.86 65.84
Finland 9.56 9.70 Italy 3113.30 3160.47
Germany 3.14 3.19 Sweden 14.73 14.77
Holland 3.54 3.59 Switzerland 2.46 2.48
Spain 267.53 271.58 Ireland 1.26 1.28
Australia 2.86 2.84 Denmark 11.99 12.17
Hong Kong 11.25 11.25 Euro 1.60 1.63
Africa Com 11.68 11.68 Saudi Arabia 5.41 5.41
India 67.55 67.79 Malaysia 5.48 5.48
Singapore 2.63 2.60 Norway 13.13 13.18
Japan 176.80 179.20
TW This week LW Last week.
After months of pressure from disgruntled shareholders, Sir Iain Vallance, chairman of British Telecom, is to step down, to be replaced by Sir Christopher Bland, chairman of the BBC.
Compaq Computer revealed profits for the first quarter of $200m, above the forecasts of pessimistic analysts but still a third down on a year earlier. But 3M, an American technology conglomerate, issued a profits warning for the next quarter and said that 5,000 jobs would go, around 7% of the total.
A takeover bid of A$10 billion ($5.1 billion) for Woodside Petroleum, an Australia-based oil and gas company, by Royal Dutch/Shell, was surprisingly blocked by the Australian government for being "contrary to the national interest".
The UK's Hilton Group gained another 154 hotels through the acquisition of Scandic, a Swedish hotel company, for £612m ($881m). SAirGroup, owner of Swissair, is selling its hotel company, Swissotel, to Raffles Holdings, a Singapore-based hotel group, for SFr520m ($305m). SAirGroup is also planning to change its name back to Swissair Group, and is considering selling two loss-making French subsidiaries.
Source - The Economist - http://www.economist.com
Andrews Sykes announced pre-tax profits of 0.5 million pounds, after exceptional charge, on turnover of 86.9 million, for the year ending 30th December 2000.
Camellia announced pre-tax profits of 15.2 million pounds, after exceptional charge, on turnover of 253.4 million, for the year ending 31st December 2000. Earnings per share stand at 247.7p, on reduced capital.
John Laing, the housebuilder and construction group, announced pre-tax profits of 5.7 million pounds, on turnover of 1,574 million, for the year ending 31st December 2000.
Silentnight announced pre-tax profits of 13.9 million pounds, after exceptional charge, on turnover of 230 million, for the fifty three weeks ending 3rd February 2001. Earnings per share stand at 20.9p.
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 joint venture between Barclays Bank PLC,HSBC Bank plc and Securitas UK Limited, forming Securitas Cash Management Limited
Proposed acquisition by Mersey Docks and Harbour Company of Heysham Port Ltd.
Acquisition by Joh. Barth & Sohn GMBH of a controlling interest in English Hop Products Ltd
Proposed acquisition by Swan Capital Investments of Mid Kent Holdings plc
Proposed acquisition by East Surrey Holdings plc of a 24.5% shareholding in Phoenix Natural Gas Ltd
In the first e-business survey to target the opinions of Britain’s future high-flyers, KPMG reveals that 84% of 17 and 18 years olds think that computers will be the most important business tool when starting their chosen career – making computers more important than telephones and signalling the future growth of a nation with dwindling interpersonal skills.
The Future Generation Internet Survey conducted by business advisers KPMG was designed to find out the attitudes and opinions of the next generation of business people towards the importance of e-business.
The survey also reveals that the appeal of working for dot coms is on the decline, despite the majority of respondents using the internet every day.
Derek McAllan, director of KPMG’s e-Business Centre of Excellence based in Reading, said: “It is surprising that computers are considered more important to respondents than telephones. This provides a key message to business leaders that traditional interpersonal skills need to change and that the workplace will be even more largely driven by technology, meaning that regular IT training will continue to be important.
“The fact that dot coms are losing their appeal amongst future business people can be attributed to the downfall of some internet companies, such as boo.com, meaning they are perceived as high risk employers with a 24-7 flare and burn working culture.”
KPMG’s e-Business Centre of Excellence offers dedicated business advisers who can provide strategic e-business advice and solutions across a range of key specialisms – including IT, finance, tax, supply chain management, security, customer relationship management (CRM), internal processes and dot.coms.
The approach is highly business-oriented and multi-disciplinary, providing advice and solutions across functions to meet a customer’s business objectives, rather than focusing on just one area.
Other key findings from the Future Generation Internet Survey include:
Derek McAllan concluded: “This research has given a great insight into the future perceptions of the internet and e-business by tomorrow’s business managers. It suggests that the future will be bright for traditional companies as long as they adapt their internal and customer-facing methods of working to meet the new business landscape.”
SMART METERS CAN PROVIDE "INTERNET UNDER THE STAIRS"
New metering technology could bring internet to every home and help cut energy bills
Patricia Hewitt, Minister for E-commerce, last week backed proposals for the trialling of a new generation of smart meters. New technology will allow electricity and gas meters to give better information, giving householders the opportunity to reduce their spending on fuel. They may in future also be able to connect homes to the internet and supply cable TV.
Ms Hewitt said:
"The internet of the future will connect all kinds of devices, not only PC's and TV's. Technology already exists to allow telephone and TV services through utilities meters. I would like to see more energy companies developing smart meters that would become the hub for internet connections around the home.
"Every home has a meter - every home has the potential to connect on-line. Given successful development - most meters could provide an "internet under the stairs".
"Smart meters can help people budget better. They can display usage in pounds and pence, perhaps on a display next to the heating thermostat or even as a pop-up screen on the TV. Pilot studies have shown that with this sort of information, people can typically save around ten per cent of their fuel bills, more than £50 a year in some cases.
"Smart metering will also be an important tool in developing mass use of photo-voltaic (PV) domestic generation. As more and more homes invest in solar panels, new meters have the ability to provide precise measurement of use and excess electricity exported into the supply system. A Smart Metering Working Group has been established within DTI to consider how these technologies can be applied in the energy arena, and will be reporting with recommendations in September.
Ms Hewitt also drew attention to Ofgem's current metering strategy consultation:
"Smart metering appears to offer many benefits. I shall be writing out to the energy companies encouraging them to respond to OFGEM's consultation and I will be keen to explore how the benefits offered by these technologies can be captured for the benefit of customers."
21 May Institute of Credit Management - Wessex Branch meeting How to Install a Debt Collection Package Royal Southampton Yacht Club Channel View Road, Southampton. 7pm for 7.30pm start Refreshments provided. 21st to 23rd May, 2001 GARP Credit & Counterparty Risk Summit, London. For full programme details please visit www.garp.com or contact GARP on tel. +44 (0)20 7626 9300. 22 May The Institute of Credit Management National Conference and Exhibition Cumberland Hotel, Marble Arch, London W1 European Outlook ICM Members £165.00 - Non-members £190.00 Retired & Student members £95.00 all plus vat Buffet Luncheon 8.30am to 5.00pm To register telephone 01780-722907 Fax 01780-721333 Thursday 24 May Sussex & Surrey Branch of the ICM Telephone Collections Speaker: Manager of Equifax Risk Management The Imperial Hotel Hove Time: 7.00 for 7.30 p.m. Sponsored by Equifax Risk Management Monday 11th June Stoke on Trent Branch of the Institute of Credit Management Credit Management Organisations in Europe - an Overview International speaker Russell KENNARD, MBA AIMC Places at this event are limited - those interested in attending should contact Catriona COLERICK on Telephone Number (01782) 28 2430. Coffee and biscuits will be served from 1830hrs, the presentation will commence at 1900hrs and will be followed by a light buffet to facilitate networking and discussion. The venue is Knight & Sons premises in The Brampton, Newcastle-under Lyme, Staffordshire. 22 June The Institute of Credit Management Fellows' Luncheon Dartmouth House Mayfair, London Tickets £42.00 plus vat To reserve places telephone 01780-722907 E-mail training@icm.org.uk 25 June Institute of Credit Management - Wessex Branch meeting How Credit Managers can get the most out of E-Commerce Presentation by Bill Chalker of the National Westminster Bank Plc Royal Southampton Yacht Club Channel View Road, Southampton. 7pm for 7.30pm start Refreshments provided. Friday 29 June Institute of Credit Management - Sussex & Surrey Branch Summer Social - Wine Tasting Bookers Vineyard Foxhole Lane, Bolney, West Sussex Time: 7.00 for 7.30 p.m. Wednesday, Thursday and Friday 24th to 26th October 2001 International Credit Exhibition & Conference The Westin Stamford, Singapore http://www.internationalcredit001.com Mailto:info@internationalcredit001.com If you have an event coming up which is credit management related and you would like us to make an entry in the Diary section please e-mail the details to jarnold@creditman.co.uk
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