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 29
Dated: 29 July 2001
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKTIME FOR BANK OF ENGLAND TO BEAT BACK EXCHANGE RATE'S GRIM REAPER
London, 23 July 2001: The Ernst & Young ITEM Club's economic forecast for Summer 2001 (Q3) finds that GDP growth will dip to around 1.8% this year and show just 2% in 2002. World markets are too weak to allow faster growth, according to the Club and, more to the point, the value of the pound has been too high for too long.
Weak markets and weak currencies: the UK is between a rock and a hard place
"Last quarter's hike in our exchange rate could be the last straw," says Professor Peter Spencer, the Ernst & Young ITEM Club's economic advisor. "The undervalued Euro and the United States' weak market make it very difficult for the UK to sell to either continent profitably. The problem will persist as long as the pound is high."
Investment finally falls
And the impact of the UK's exchange rate is now becoming palpable. Says Spencer: "until now, there has been a hiatus in business investment. In the last quarter, however, we witnessed a significant fall. Furthermore, the buoyancy of consumer confidence is deceptive. Strong retail sales figures are not the only measure of consumption. If wider measures are consulted, observers will see that growth in consumer spending has dipped from 4 to 3% in the last six months.
Now UK's fortunes stand or fall on exchange rate
Since the Ernst & Young ITEM Club's Spring forecast, the UK's effective exchange rate has strengthened, points out Spencer. And the dollar remains high despite a weakened economy: its value against its trade-rated basket of currencies is up 7% since the beginning of the year despite a 2.75% cut in interest rates. Says Spencer: "these factors have fundamentally changed the UK's business climate since the last quarter. This means that the UK cannot necessarily look forward to a natural decline in the value of its currency as has been widely expected.
"Here lies the biggest threat to the UK's prospect of recovery. Last year, when we had strong market growth overseas and at home, we could live with a strong pound. This year world growth is down and the pound has continued to rise. Until the pound falls back from its present level, bad trade performance will unhinge the economy and keep GDP growth well below trend."
High pound to prolong agony indefinitely
The Ernst & Young ITEM Club presents two scenarios: in the first, exchange rates adjust of their own accord, but slowly. The dollar will come down and the Euro will recover. A significant recovery from the UK's present position could therefore be expected in 2003. Says Spencer: "if, however, exchange rates do not adjust, this will lead to a collapse—never mind a fall—in investment spending, with knock-on effects for job prospects and personal income. The longer it takes for the pound to come down, the further that recovery is going to be delayed."
Bank should intervene
The prospect of this alternative scenario moves the Ernst & Young ITEM Club to comment on policy matters. It says that the Bank of England, preferably working with the European Central Bank and the US Federal Reserve, should intervene with a sale of pounds for Euros. The market should be hit with large-scale gilt issues, converted into Euros and then invested in the German and other European government bond markets. Says Spencer: "such a move would bring down the value of the pound and dig Britain out of an economic hole allowing growth to resume. Higher gilt and annuity funding rates would also help those moving into retirement.
Enough is enough
"Britain has endured high exchange rates for too long. UK manufacturing is already into a recession, which is spreading to services. It will not be long before this hits consumer confidence. The Bank of England must strongly consider restoring the balance by actively and intelligently intervening—as it is more than capable of doing—to sell off its currency. We must not allow our currency to be puffed up to the degree that it puts our whole economy at risk."
GLOBAL SLOWDOWN LEADS TO SHARPEST FALL IN EXPORT OPTIMISM FOR NEARLY THREE YEARS - CBI
Export optimism for the year ahead has seen the sharpest fall since October 1998 amid continuing concerns about global demand.
The CBI's quarterly Industrial Trends Survey, published last Wednesday, shows a decline in domestic and export orders, weakening investment intentions and increased job losses. Manufacturers continue to report a decline in business optimism, although to a lesser extent than in April when confidence was affected by the foot-and-mouth crisis.
Export orders fell over the past four months, more sharply than previously expected . Thirty-seven per cent of firms said export orders were down, 17 per cent said they were up. The balance of minus 20 per cent compares with minus 15 in April and minus one in January. Over the next four months, the decline in export orders is expected to slow, although expectations are the weakest since January 1999.
Domestic orders fell in line with expectations over the past four months. Thirty-one per cent of firms said domestic orders were down, 19 per cent said they were up. The balance of minus 12 per cent compares with minus 14 in April and minus three in January. Domestic orders are now expected to stop declining over the next four months.
Manufacturing output fell at the fastest rate since July 1999, despite previous expectations that there would be little change. Thirty per cent said output was down, 21 per cent said output was up. The balance of minus nine per cent compares with minus one in April and plus five in January. Output is expected to be broadly stable over the next four months. However, expectations of a sharp fall in stocks could lead to further falls.
Nick Reilly, Chairman of the CBI's Economic Affairs Committee and Managing Director of Vauxhall Motors, said: "The economic slowdown in the US and Germany is impacting on UK manufacturers' ability to export. Prospects for the next four months include more job losses and the risk of a further decline in output. With domestic prices falling more than unit costs over the next four months, we expect profit margins to be under pressure. Having allowed for continued robust growth in consumer spending, we still believe the difficult world economic backdrop is sufficient to justify a quarter-point cut in interest rates. A cut next week would act as insurance against the downside risk to world growth."
The number of firms working below capacity rose to the highest level since January 1993, from 64 per cent to 67 per cent, well above its long term average. Employment fell at a faster pace than reported in April and at the fastest rate since July 1999. Over the next four months a greater fall in manufacturing jobs is forecast, with expectations the most negative since January 1999.
Domestic prices fell at the fastest rate since last October. Further price cuts, at a similar rate are expected over the coming four months. Unit costs were broadly stable but are expected to fall moderately over the next four months.
Plans to invest in plant and machinery over the year ahead deteriorated and are the most negative since last October. Uncertainty about demand remains the most important factor discouraging investment. Internal and external finance constraints, taken together, have risen to their highest level for nearly eight years. Over the next year, only 27 per cent of firms plan to invest to expand capacity, the lowest proportion for two years.
SLOWER ECONOMIC GROWTH NO SURPRISE - CBI
Sudhir Junankar, CBI's director of Economic Analysis said: "The second-quarter GDP figures are not surprising and point to a further slowdown in economic activity. The sharp decline estimated for manufacturing output indicates two successive quarters of falling activity.
"These figures confirm a two-speed economy with the service sector continuing to grow healthily, although still well below the peak seen a year ago. This evidence of a slight cooling in the service sector and the continued decline in manufacturing, reported in this week's CBI survey, suggests a quarter-point cut in interest rates can safely be made as inflationary pressures remain under control."
The 2nd quarter growth in services output is 0.6, the lowest since 0.4 in the first quarter of 2000
STALLING ECONOMY SPARKS RATES CALL FROM CHAMBERS
Reacting to the latest estimate for UK Gross Domestic Product published on Friday 27 July, Ian Fletcher, Chief Economist at the British Chambers of Commerce said:
"This is desperately bad news, showing clearly that the weakness in manufacturing is now feeding through into the wider economy. Although only preliminary estimates, the data suggests that service sector companies most closely aligned to manufacturing, such as transport and business services, are now feeling the draught."
The Chambers' most recent analysis of UK business performance showed UK firms suffered their worst period of economic activity for over two years last quarter, with recession closing in on manufacturing and the service sector losing its grip on growth.
Ian Fletcher said:
"To prevent further stalling, and to boost confidence and investment, the Bank of England next week must apply the jump leads and cut interest rates by a quarter per cent."
MPC TO KEEP RATE ON HOLD NEXT WEEK, BUT NOT FOR LONG SAYS KPMG
UK Monetary Policy Committee Meeting, August 1-2, 2001 - pre-meeting note
Weak second quarter GDP growth has put rate cuts back on the agenda. However, with the Committee currently viewing monetary policy as a trade-off between the risks to growth in the short-term and concerns about exacerbating the imbalances in the economy in the longer-term, it may wish to see more convincing evidence that the consumer is tamed before easing policy further.
After an 8-1 vote for no change in interest rates in July, the MPC is widely expected to keep rates on hold again this month. Evidence since the last meeting is consistent with continuing robust consumer spending - although retail sales volumes were flat on the month in June, year-on-year comparisons showing 5½ -6% growth suggest the underlying trend is still strong - and, at 2.4%, inflation remains stuck only just below target. Despite high profile job loss announcements, official statistics are yet to show any signs of significant easing in the labour market, while house prices, another measure of consumer confidence, continue to rise.
With the MPC currently viewing monetary policy as a trade-off between the risks to growth in the short-term and concerns about exacerbating the imbalances in the economy (essentially between the tradeable and non-tradeable sectors) in the longer-term, it may need more evidence that consumer demand is slowing significantly before voting to cut interest rates again.
Certainly GDP growth weakened in the second quarter, but the preliminary estimate of a 0.3% quarter-on-quarter rise, after 0.5% in the first three months of the year, is very much in line with the path anticipated in the May Inflation Report. That forecast expected the foot and mouth epidemic and related effects to depress demand and output in the short-term, but projected some recovery in the second half of the year as such distortions unwound. While the new forecast to be published after the MPC meeting can be expected to retain a similar profile, the deteriorating world outlook will likely push the recovery further out.
…but risks to growth are still on the downside at home…
For both domestic and international reasons, then, we continue to advocate an early rate cut. First, it is by no means clear that total consumption is as strong as the retail sales numbers alone suggest, as we still do not know the extent of expenditure switching to the high street from other leisure activities in the face of the difficulties in the countryside.
Second, there is clear evidence that the business background is still deteriorating apace. The first quarter saw a worrying (and unanticipated) collapse in business investment and a sharp rise in stocks. With profitability in the corporate sector in general, and manufacturing in particular, under increasing pressure there is no obvious reason to expect investment to turn round in the near future, while there is the clear risk of a sharp inventory correction at some point depressing output, with knock-on effects on employment and consumer confidence. While - as expected - the second quarter GDP estimate confirmed that manufacturing is in recession, it also suggested that the slowdown is spreading to the service sector. As manufacturing is a consumer of services (as are its employees) there is a clear risk that the dynamics between the two become reinforcing.
…and internationally
Third, the international situation continues to worsen. The US is flirting with full-blown recession as growth slowed to an annualised rate of only 0.7% in the second quarter, reflecting a further slump in business investment and a cooling in consumer spending. Output is plummeting in Japan, and the slowdown in Europe is spreading outward from Germany.
The MPC's decision
Thus for the time being, the world is without an engine of growth and the risks are very clearly on the downside. Against this background, policy will continue to be eased internationally and we expect early moves from the US Fed and - even - the ECB. In the UK, the markets had ruled out any further rate cuts this cycle and pencilled-in a rise by next year, but the betting has started to shift. While the odds are still that rates remain on hold this month, it is no longer a foregone conclusion and future cuts are back on the agenda.
The Final Report of the Company Law Review, published on the 26 July 2001, contains a blueprint for comprehensive reform and modernisation of the law.
Speaking on behalf of the Steering Group which led the Review, Rosemary Radcliffe said:
"When we embarked on the Review three years ago, we were asked to devise a modern framework of company law that would support the creation, growth and international competitiveness of British companies; provide straightforward, cost-effective and fair regulation; and underpin high standards of corporate behaviour. We believe our recommendations achieve that.
"Fundamental reform of company law is long overdue. Our recommendations will reshape company law for small companies. They will simplify and modernise the law for all companies, reflecting the demands of the modern economy. They are designed to achieve fair and proportionate regulation for companies and their directors, and to encourage directors to observe high standards. And they will enable the law to respond more rapidly and more flexibly to changing needs in future.
"The Review has drawn on the commitment and expertise of a huge number of individuals and organisations. We are immensely grateful to all of them. The involvement and support of such a wide range of interests gives us confidence that our recommendations are soundly-based and command a broad consensus of support.
"We welcome the Government's commitment to modernise the law. Comprehensive modernisation will require a new Companies Act. It is a major undertaking which cannot be achieved by minor changes to the present law. But it is vital if we are to have a competitive framework for business in this country. We urge the Government to take this forward." Key recommendations in the Final Report include:
Copies of the Final Report of the Company Law Review can be obtained free of charge by telephoning 0870 1502 500. A separate summary of the proposals for small business is also available. Both documents are also on the Review pages of the DTI website: http://www.dti.gov.uk/cld/review.htm
Summary of Principal Recommendations of the Company Law Review Final Report
Small and Private Companies
Rules on companies' internal administrative procedures should be simplified so that private companies:
Formal decision-making procedures should also be made simpler by:
Mediation and arbitration should be encouraged as alternatives to litigation, in particular by creating an arbitration scheme specifically to deal with shareholder disputes.
The burden of financial reporting and audit should be reduced, and the usefulness of small company accounts improved, by:
Simplification of the capital maintenance regime for all private companies, with, in particular, repeal of the present obscure, complex and costly rules on "financial assistance" in connection with share acquisitions.
Directors
The basic duties of directors should be clearly set out in the Companies Act.
The present rules in the Companies Act on directors' conflicts of interest should be updated and clarified.
Directors' contracts of employment should be limited to a period of three years on first appointment and one year for re-appointments, unless shareholders authorise a longer period;
There should be better disclosure on directors' training, qualifications and other relevant information.
Shareholders
The law should be reformed to make it easier for investors who hold shares in nominee accounts to exercise shareholders' rights and communicate direct with the company.
Quoted companies should be required to circulate members' resolutions free of charge with the AGM papers, where the resolution has the requisite level of support and is received by a clear deadline (15 days after publication of the annual report and accounts).
There should be more openness about the role of institutional investors. In particular companies should disclose in their annual report their major relationships with financial institutions; institutional investors who manage funds on behalf of others should disclose how they have voted their shares; and the voting process on key company resolutions should be audited.
Company Reporting and Audit
Most public companies and very large private companies should be required to publish an operating and financial review (OFR) as part of the annual report; this would provide a review of the business, its performance, plans and prospects, and information the directors judge necessary for an understanding of the business, such as relationships with employees, suppliers and customers, environmental and community impact, corporate governance and management of risk. Quoted companies should make their annual report and accounts available on a website within four months of the year-end; they should then be required to wait at least 15 days before settling the AGM papers for circulation, to allow time for shareholders to table resolutions for debate at the AGM.
All public companies should be required to lay the accounts in general meeting and file them at Companies House within six months of the year-end.
There should be no statutory extension of the auditors' duty of care to extend it beyond that set out in the Caparo case - although this could be developed by the courts.
Directors and employees should have wider statutory duties to assist the auditors. Auditors should be entitled to limit their liability to the company and to third parties, within appropriate limits to be set by the Secretary of State.
Institutional Arrangements
A Company Law and Reporting Commission should: keep company law under review; prepare an annual report on the state of company law and corporate governance and any need for reform; issue guidance, and advise on proposed secondary legislation.
A Standards Board would: make detailed rules on accounting and reporting (including the OFR); make disclosure rules in areas such as the Combined Code and on information to be provided to shareholders; keep the Combined Code under review; make rules on matters such as the conduct of AGMs; and publish guidance on issues within its remit.
A Private Companies Committee would examine the impact of company law and reporting requirements on private companies, with the Company Law and Reporting Commission and the Standards Board being required to take account of its advice.
Other Proposals to Simplify and Streamline the Law
The rules governing maintenance of company share capital should be reformed. The principle of freedom of public access to information about companies should be preserved, but scope for abuse should be countered by:
The law on "trading disclosures" (principally the information companies must disclose in business communications) should be updated to reflect modern conditions, such as increasing use of electronic communications.
The law should be updated to improve the legal mechanisms used in company restructuring.
There should be a new mechanism (with safeguards) enabling companies to "migrate" to and from Great Britain, or to switch corporate domicile between England and Wales and Scotland, without having to be wound up.
The existing procedures for restoring dissolved companies to the register should be rationalised, and a procedure introduced to enable restoration in straightforward cases without the need for court intervention.
The legislation on foreign companies which have a place of business here should be simplified and updated.
There should be a separate form of corporate body designed specifically for charities.
Effective Sanctions
Companies should be required to disclose in the annual report any criminal convictions during that reporting year for breaches of Companies Act requirements on the part of the company or its officers.
The "phoenix company" syndrome should be tackled by:
strengthening the existing provisions on transactions between a company and its directors;
stronger safeguards where a director of a failed company applies to the court to be a director of, or concerned in the management of, another company with the same or a similar name;
interim orders for disqualification of directors in advance of final disqualification proceedings, to enable speedy preventative action in serious cases.
JOHNSON ANNOUNCES BIGGEST OVERHAUL OF CREDIT LAWS FOR A GENERATION
Government to magnify small print and muzzle loan sharks
The biggest shake-up of consumer credit laws for a generation was announced on the 25 July 2001 by Consumer Minister Melanie Johnson. The changes will clamp down on loan sharks, magnify the small print and put a stop to irresponsible lending.
She unveiled a major package of proposals including a review of the 30 year old Consumer Credit Act and giving extra powers to the OFT and the courts to clamp down on loan sharks who prey on vulnerable consumers.
She also published the report of the debt taskforce which calls for clearer and more understandable credit agreements and suggests ways of achieving more responsible lending and borrowing.
The Government has published a consultation on the proposed changes to the Consumer Credit Act (1974).
Melanie Johnson said:
"Our credit laws are 30 years old and need a radical overhaul to protect people in today's credit market. This is a top priority for the Government.
"There has been a worrying increase in the numbers of people falling into the debt trap, getting loans at often extortionate rates which they clearly can't afford to repay.
"Consumers need to know what they are letting themselves in for when they sign up for credit. The expensive catch shouldn't be hidden in microscopic text. It should be explained, up front, by the lender.
"We will take action to protect vulnerable consumers who are preyed on by rogue lenders and make sure that consumers get clear and understandable information so they know exactly what they are getting into before they sign on the dotted line."
She added:
"I thank all the taskforce members for their hard work and in coming forward with real, practical solutions to help consumers avoid getting into debt difficulties."
Today's package of proposals includes action to:
"CAB advisers have seen a huge increase in the number of consumer debt enquiries, which have gone up by 39% over the past four years.
"The Consumer Credit Act is long overdue for reform. We want to see tougher powers to clamp down on loan sharks and measures to ensure that all lenders act responsibly and fairly towards consumers."
Citizens Advice Bureaux dealt with nearly one million enquiries about debts in 2000/01. Over 600,000 of those enquiries related to consumer debts - including loans, credit cards and overdrafts.
The Task Force on overindebtedness was set up in October 2000. It focused on practical ways of achieving more responsible lending and borrowing. Its recommendations propose greater transparency in credit transactions, as well as encouraging lenders to share and make use of both positive and negative data when assessing an application for credit. The Task Force report is published today and the Government will take forward its recommendations by:
The full list of bodies on the Task Force were:
The DTI continues to work with the Money Advice Trust aimed at ensuring consumers can have ready access to high quality, free and independent debt advice. This includes the recent matched funding with lenders for a £2 million project to pilot a national infrastructure for independent and free money advice.
NACAB's key tips for dealing with debt:
The OFT is currently looking at debt management companies. Following receipt of evidence from consumers and trade bodies, they produced a draft set of guidance notes which they published for consultation in May. OFT expect to produce a final set of guidelines in the near future.
UK GOVERNMENT SECURES LANDMARK AGREEMENT FOR WORLD'S POOREST COUNTRIES
Support for the world's 41 poorest nations will now concentrate on projects which provide them with social and economic benefits, thanks to a new international agreement spearheaded by the UK Government's Export Credits Guarantee Department (ECGD).
This agreement means that the 26 export credit agencies (ECAs) in the world's main trading nations will now make sure that their exporters provide insurance support for only these types of projects. This policy has been adopted by ECGD since 1997.
Minister for Trade Baroness Symons said:
"This agreement ensures that the world's most heavily indebted poor countries - which includes Bolivia and Mozambique - benefit from worthwhile projects such as healthcare and essential infrastructure.
"This agreement represent another important piece of the jigsaw of setting poor countries on a path of sustainable growth without becoming saddled with unsustainable debts."
And she added: "The UK Government has been working hard to try and resolve the debt problems of poor countries. In December 1999, the Government announced its readiness to relieve approximately £1.9 billion of payments owed by the world's poorest nations."
ECGD committed itself to concluding this international agreement - known as the OECD Statement of the Principles - under its Mission and Status Review of July 2000 which also saw the introduction of its Business Principles.
Although ECGD support availability for heavily indebted poor countries (HIPCs) is limited due to their current economic circumstances, it is important to have the established ground rules in place for when they emerge from their difficulties.
The UK has pledged to write off all £1.9 billion of debts owed to ECGD by the HIPCs when they show that debt relief will lead to poverty reduction. Of the 33 countries which owed debt to ECGD, 18 have already reached this point. These 18 HIPCs owed approximately £650 million to ECGD at the time the UK made its pledge.
Two of these - Bolivia and Uganda - have now had all their debts written off completely. Others have been relieved of all future payments obligations to ECGD, provided they remain on track with their economic reform programmes and develop poverty alleviation strategies. And for those countries yet to start receiving debt relief, all payments are now held in trust until that time that they can be returned to fund poverty reduction.
Under the OECD Statement of Principles, ECAs support to HIPCs will now be provided only for goods and projects which bring social and economic benefits and which are consistent with their poverty reduction strategies i.e. productive expenditure.
This was an element of the Chancellor's 1997 "Mauritius Mandate", which aimed to resolve the debt problems of poor countries and to set them on a path of sustainable growth.
The Chancellor also set the objective of securing an international agreement which committed ECAs within the Organisation for Economic Co-operation and Development (OECD) to adopt similar policies. The UK Government hosted an international conference of OECD countries in London in March to make progress towards an international agreement. The resulting Statement of Principles has been agreed at the OECD Export Credit Group.
The ECAs of France, Germany and Spain are among the 26 covered by this agreement.
The Statement of Principles applies to officially supported insurance (export credits) involving credit terms of two years or more. A number of OECD countries, including the UK with ECGD - has also committed to apply this policy to 22 other poor developing countries i.e. those which qualify for highly concessional World Bank funding (the so-called IDA-only countries).
The ECGD Business Principles includes an ethical code on developing countries, which encourages responsible trade with, and investment in developing countries. It ensures that debt sustainability will be a key factor when providing support for exports.
ECGD, the Export Credits Guarantee Department, Britain's official export credit agency, is a separate Government Department responsible to the Secretary of State for Trade and Industry. One of its main functions is to underwrite bank loans to enable overseas buyers to purchase capital and project related goods/services from the UK, and to insure the return on investments made by UK companies in overseas enterprises.
MORTGAGE POSSESSION STATISTICS - SECOND QUARTER 2001
The Lord Chancellor's Department last week published figures for mortgage possession actions entered in the county courts of England and Wales for the second quarter of 2001.
Table 1 shows the number of mortgage possession actions entered for each year, by quarter, since 1995. During the second quarter of 2001 16,696 mortgage possession actions were entered and a total of 12,159 orders were made - 7,456 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 second quarter of 2001 the number of actions entered was nearly 4% less than the second quarter of 2000. For the same period, figures show a decrease of nearly 15% in orders made (nearly 61% of orders made were suspended - compared to 60% in the second quarter of 2000).
Figures on mortgage possession actions are published on a quarterly basis. Publication date of the figures for the second quarter of 2001 will be 31 October 2001.
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 17 786 13 435
4 17 525 12 690
__________
73 025 52 071
----------
2001 1 18 168 12 001
2 16 696 12 159
1 Including suspended orders
R Revised since last publication
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From 30/07/2001 to 10/08/2001 Number of Creditor meetings : 256 Section Company Venue Liquidator 138 Scotland - Interim Liquidator calling Creditors Meeting 30/07/2001 Johnstone Media Ltd Edinburgh Grant Thornton 06/08/2001 John Smillie Ltd Glasgow Bannerman Johnstone 23 Administrator Calling a meeting of Creditors 30/07/2001 Internet 3 Communications Ltd London Kingston Smith & 31/07/2001 Coubro & Scrutton Ltd London BKR Haines Watts 01/08/2001 Pine Design Manufacturing Ltd Stafford Geoffrey Martin & 03/08/2001 Freshworks Ltd London Benedict Mackenzie Ilotron Ltd London Arthur Andersen Soup Works Plc London Benedict Mackenzie 06/08/2001 Internet Security Plc London BDO Stoy Hayward 07/08/2001 Bookacourse.Com Ltd Stoke-on-TrentPKF 48 Receiver calling unsecured Creditors Meeting 30/07/2001 Ever 1375 Ltd Newcastle-u-Tyne Phipps Packing Services Ltd Wolverhampton BDO Stoy Hayward 02/08/2001 Impress Group Holdings Ltd Telford Arthur Andersen Impress Group Ltd Telford Arthur Andersen Intercraft Products Ltd Telford Arthur Andersen Paterson Group International Ltd Telford Arthur Andersen Web International Ltd Telford Arthur Andersen 03/08/2001 Elf Print Media Ltd Bristol Mazars Neville 10/08/2001 Plazoo Pipe Systems Ltd Manchester PricewaterhouseCoop 67 Scotland - Receiver calling Meeting of unsecured Creditors 31/07/2001 Creative Office Interiors (Scot) Ltd KPMG 84 N. Ireland - Creditors Voluntary Liquidation 31/07/2001 Iinoil Ltd Belfast McClure Watters 98 Creditors Voluntary Liquidations 30/07/2001 5 Counties Fencing Ltd St Albans Kings Astral Leisure Entertainment Ltd Warrington R W Keating & Co Batchsurvey Enterprises Ltd Luton Mazars Neville Bradwell Stone Ltd Rotherham Hart Shaw C J Bartley & Co Ltd London Levy Gee Cheeno Designs Ltd Leicester HKM Harlow Khandia Cloud Nine Group Ltd Bately O'Hara & Co Cloud Nine Industrial Recruitment Ltd O'Hara & Co FSD Golding Ltd Wolverhampton BDO Stoy Hayward Faces Corporate Travel Ltd London BKR Haines Watts Fastcheque Loans & Credit Ltd Bolton Ratcliffe & Co Flowers 2000 Ltd South Ruislip Pitman Cohen Graham & Sons Construction Ltd Birmingham Errington Walker Grecian Ltd London Andrew & Co Hudsons Engineering (UK) Ltd Sheffield Poppleton & Appleby Norteck Bodies Ltd Birmingham Casson Beckman Notnow Ltd Leicester HKM Harlow Khandia Profiled Cladding & Roofing Ltd London Smith & Williamson RPM Cruise Services Ltd London BKR Haines Watts Retail Direct Asia Ltd Sutton Turpin Barker & Saints Property Services Ltd London Leigh & Co Small Plant & Power Tools Ltd Swansea H R Harris & TCEC Ltd Guildford Baker Tilly 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 & J Enterprises Ltd Cardiff BN Jackson Norton A B S Consulting Ltd London Valentine & Co A C T Computers Ltd Manchester Royce Peeling Green AD Cream International Ltd Stoke-on-TrentCooper-Parry AGM Tooling Services Ltd Cardiff Deloitte & Touche Aerotrans International Services Ltd BKR Haines Watts And Technology Ltd Oxford Shaw & Company Bedmatic Ltd Huddersfield Milner Boardman & Cadrion Ltd London Hurst Morrison Cap Clothing Co Ltd Leicester HKM Harlow Khandia Chandlers (UK) Ltd Chandlers FordBKL Tenon Consyst Ltd Gosforth Tait Walker Cropmarks Direct Imaging Ltd London Grant Thornton Design Development Corporation LtdLondon Chantrey Vellacot Falcon Plastics Recycling Ltd London David Rubin & Co Force Developments Ltd Sheffield Poppleton & Appleby Fox Search Ltd Stockton-on-Tees G R Luxford Ltd Northampton BRI Business Hillson Motor Engineers Ltd Upshire Sochalls Hydrocare Ltd Sutton Coldfield Inovex Ltd Swansea Stones & Co Inovex Special Purpose Machines Ltd Stones & Co Jamack Sheet Metal Components Ltd Hornchurch Redhead French Kingswood Print & Display Ltd London Begbies Traynor Knights Motoring Services Ltd Worthing Levy Gee Kusala Ltd Sheffield PKF Limitextra Ltd London Valentine & Co Longshine Technology Co Ltd London Phillips & Co Lowell Associates Ltd Manchester Begbies Traynor MEA Projects Ltd Manchester Levy Gee Mardi Gras Entertainments Ltd Manchester Lewis Alexander Mayhurst Developments Ltd Slough Oury Clark Miresbrook UK Ltd Birmingham PKF Natura Design Products Ltd Manchester Budsworth & Co Nexgen Ltd London Smith & Williamson Phoenix Products Ltd Halesowen Mayfields Premier Hotels (Dartford) Ltd London Deloitte & Touche Premier Hotels (Leeds) Ltd London Deloitte & Touche Premier Hotels (Poole) Ltd London Deloitte & Touche Premier Hotels (Wembley) Ltd London Deloitte & Touche Proguard Ltd Birmingham BKR Haines Watts Quantum Leap Technologies Ltd Manchester Begbies Traynor R & M J Hughes & Son Ltd Old Colwyn Marshall Peters Route To Market Ltd London Smith & Williamson Screendragon International Ltd London Silver Altman Services 2000 Ltd Salisbury Smith & Williamson Southgate Residential Homes Ltd Manchester Cosgroves Swalecraft Ltd Sittingbourne Smith & Williamson TBH Solutions Ltd Dorchester on Begbies Traynor TCA Distribution Ltd Nottingham HKM Harlow Khandia Thats Cool Ltd London Begbies Traynor Walford Meadows (Africa) Ltd London David Rubin & Co Western Calf Rearers Ltd Monmouth E.Mary Grove & Co. Yarra Ltd London Begbies Traynor 01/08/2001 A13 Cash & Carry Ltd London Ian Frances Aquatrays Ltd Chard BKL Tenon 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 Classic Fashion Ltd Leicester HKM Harlow Khandia Co-Drive Ltd Leicester HKM Harlow Khandia Crane Foundry (Wolverhampton) Ltd Birmingham Smith Cooper D Jobling Glassware Ltd Newcastle-u-Tyne Development & Construction Ltd Hale Milner Boardman & Door Manufacturing Co Ltd - The Birmingham Moore Stephens ECL Consultants Ltd London David Rubin & East Sussex Surfacing (Midlands) Ltd Poppleton & Appleby Fabric Academy Co Ltd Newcastle HKM Harlow Khandhia Flexible Space Management Ltd London Benedict Mackenzie H B S Design Associates Ltd Reading Harrisons Harrington Lowndes Ltd London Sorskys Harrington Lowndes Rentals Ltd London Sorskys Hillthorne Engineering Ltd Warwick The Till Morris Inset 2000 Ltd Sheffield Poppleton & Appleby International Youth House Project Ltd Elwell Watchorn & JJT Precision Ltd Birmingham Casson Beckman Jarco Ltd Preston Begbies Traynor John Gilpin Ltd Leeds Wilson Pitts Lantern Contracting Ltd Birmingham Casson Beckman Manchester Antiques Ltd Altrincham Lines Henry Masons Industrial Roofing Ltd Cardiff Solomon Hare Media Press Commercial Printers Ltd Harrisons Online Partners.co.uk Ltd London Griffins Powersign Ltd Manchester Casson Beckman & Q C Estates Ltd London Sorskys Regency Properties Ltd Warrington R W Keating & Co Regent Kemicals (Leicester) Ltd Aldridge K J Watkin & Co Rufus Stone Design & P R Ltd Reading Harrisons Software Development Team Ltd Paisley Milne Craig & Spectrum RSR Ltd Bradford Baker Tilly Teknoskill (UK) Ltd London Chantrey Vellacott Tia (Holdings) Plc Sheffield Poppleton & Appleby Trackinside Ltd London Janes Tris Global Communications Ltd New Malden Nunn Hayward 02/08/2001 Artistic Development Ltd Sheffield JWD Associates Ashwood Joinery Ltd SawbridgeworthPeter Gorlov B C H Communications Ltd Leicester Casson Beckman Benefitsu Corporation UK Ltd London Smith & Williamson Benefitsu Equipment Systems Ltd London Smith & Williamson Benefitsu Health Management Ltd London Smith & Williamson Benefitsu Leisure Health Ltd London Smith & Williamson Bestseller Systems Ltd London David Rubin & Co Bioblast Ltd Grimsby HLB Kidsons Blendselect Ltd Newport Ray Purnell & Co Carstop Ltd Hale Milner Boardman & Corn Meadow Leisure Ltd Worcester Smith & Williamson Dresswise Ltd Sheffield Poppleton & Appleby G M Precision Engineer (W Bromwich) Lt HLB Kidsons Gainsborough Security Group Ltd SawbridgeworthPeter Gorlov Glencar Communications Ltd Birmingham Casson Beckman Goodwave Security Services Ltd Barnsley Elwell Watchorn & Independent Travel Publishing Ltd London Knights & Co Inside Design Ltd London A Segal & Co Jarard Ltd Markyate Spearing & Co. Jibe Clothing Ltd Sheffield Poppleton & Appleby K P Structures Ltd Cardiff Doyle Davis McCulloch Electrical & Mech Serv Ltd Wilkins Kennedy Prime Mechanical Services Ltd West Bentley The Thompson Red Pepper Film Co Ltd Stevenage Technalens Ltd Ringwood Leigh & Co Westbourne Design & Build Ltd Manchester Begbies Traynor Westbourne Property Investments Ltd Begbies Traynor Woodstock (N/W) Ltd Manchester Poppleton & Appleby 03/08/2001 3 S Technology Ltd Luton Mazars Neville Capital Brickwork Contractors Ltd London BBK Custom Electrical (Automatics) LtdHove Chantrey Vellacot Datum Business Supplies Ltd London Morison Tenon Datum Holdings Ltd London Morison Tenon Digital Micro Plc London Casson Beckman Filta-Rite Ltd Manchester Mitchell Free Trade Beers Ltd Slough Oury Clark Global Directory Ltd Whitchurch Barry Mitchell & Co Highfield Construction Ltd Cardiff Solomon Hare Knightsfield Ltd Birmingham Moore Stephens L B Clothing Ltd Manchester Hodgsons More For Less Ltd London A Segal & Co Old Mill (Scunthorpe) Ltd - The Nottingham Blades Propaganda Clubs Ltd London Casson Beckman Renaissance Stained Glass Ltd Stockport Bennett Verby Sanbros Engineering Ltd Birmingham Poppleton & Appleby Shanice International Ltd London Hacker Young Surostone Enterprises Ltd Lewes E W Sheppard Travel Net Systems Ltd Reading Harrisons Wellfill Insulation Ltd Worthing Levy Gee Wokings Ltd - The Stoke-on-TrentLines Henry 04/08/2001 Chalkscape Ltd Oadby Pole Arnold 06/08/2001 Continent Vehicles Ltd London Langley & Partners Fradley Plant Sales Ltd Nuneaton Pattinsons Hoxton Collective Ltd - The London Benedict Mackenzie Kew Construction Ltd Reading Walker & Co Lloyd Rees Ltd Liverpool A H Tomlinson & Co Orient Vehicles Ltd London Langley & Partners Sparks & Spanners Taxi Repairs LtdBirmingham Heathcote & Coleman 07/08/2001 Aranbridge Ltd London Poppleton & Appleby Delaspeed Services Ltd Rotherham Hart Shaw Electrical Logistics Ltd Leeds Deloitte & Touche Elmsway Ltd Reading Harrisons European Career Systems Ltd London Sinclair Harris Goldblock Ltd London Panos Eliades H R D Auto Engineering Co Ltd Leicester Casson Beckman Head New Media Ltd London Harris Lipman Inside Track Training & Development Lt BDO Stoy Hayward J A G Freight Services Ltd London Chantrey Vellacott K Bogdanow Ltd London Gerald Edelman Kalgard Vacuum Coating Ltd Welshpool HLB Kidsons Manor Document Technology Ltd Bristol Houghton Stone Milner Engineering Installations Ltd Begbies Traynor Silverplate Ltd London Andrew & Co Studentnet Ltd Nottingham Deloitte & Touche Studio 78 Reprographic Services Ltd Baker Tilly Tagati Ltd London Sinclair Harris Tapemaster Ltd London Menzies Turners Thermal Insulation Ltd Bristol Bishop Fleming Virtual Environments International Ltd Poppleton & Appleby Vulture Culture Ltd Gerrards CrossPhillips & Co 08/08/2001 Balloons Over Torbay Ltd Bristol Moore Stephens Bike King Ltd Liverpool Parkin S Booth & Co Cheethams Fresh Produce Ltd Altrincham Lines Henry Cobra Recruitment Ltd West Byfleet Gibson Hewitt & Co Directron Ltd Dudley Mazars Neville EPS Rectifiers Ltd Bradford Baker Tilly G Floyd (Droylsden) Ltd Salford Crawfords Pennine Accident Repair Centre LtdLeeds Kroll Buchler Premier Contract Interiors Ltd Lutterworth F A Simms & South & West Highway Surfacing LtdBristol Grnt Thornton Stamford Pickard (Holdings) Ltd Manchester HLB Kidsons Wirral Graphics Ltd Daresbury A H Tomlinson & Co 09/08/2001 Aark Design Ltd Blackpool Sargent & Co. Hann Bags Ltd London Kakouris & MLM Precision Sheet Metal Ltd London Wilkins Kennedy Midland Lamb Co Ltd Nuneaton Pattinsons Redbox Organisation Ltd - The Lutterworth F A Simms & Tayton Windows Ltd Chorley Wallwork & Co Triton Communications Ltd Bristol J W Lewis & Co 10/08/2001 Blue Boats Ltd Penzance Blades Epoch Software Distribution Ltd London David Rubin & Co Epoch Technical Services Ltd London David Rubin & Co Grasp Multimedia Ltd Bristol Moore Stephens Heswall Carpets Ltd Liverpool Parkin S Booth & Co Lancashire Leather (Reproductions) Ltd Milner Boardman & Mobility Now Ltd Bristol Smith & Williamson NPD Joinery Ltd Bromsgrove Haden Insolvency RML Office Supplies Ltd Southampton Roger Evans Syon Holdings Ltd London BN Jackson Norton
TW LW TW LW
USA 1.43 1.40 Canada 2.20 2.16
Austria 22.43 22.65 Portugal 326.80 330.05
France 10.69 10.79 Belgium 65.75 66.41
Finland 9.69 9.78 Italy 3156.27 3187.62
Germany 3.18 3.22 Sweden 15.17 15.17
Holland 3.59 3.62 Switzerland 2.46 2.49
Spain 271.23 273.91 Ireland 1.28 1.29
Australia 2.81 2.76 Denmark 12.13 12.25
Hong Kong 11.16 11.94 Euro 1.63 1.64
Africa Com 11.71 11.56 Saudi Arabia 5.36 5.26
India 67.49 66.04 Malaysia 5.43 5.32
Singapore 2.59 2.57 Norway 13.05 13.15
Japan 177.08 175.82
TW This week LW Last week.
The costs of restructuring and a failed merger with General Electric hit Honeywell. Profits at the American engineering company crashed by 90% in the latest quarter compared with last year.
ABB, Europe's biggest electrical-engineering firm, said that it would lay off up to 8% of its workforce, some 12,000 employees, over the next 18 months. Profits (before interest and tax) fell by 21% in the first half of 2001, compared with a year ago; the company's shares slumped.
Invensys, the British engineering group, suffered similarly. It said that operating profit would be far below expectations and that it would cut 2,500 jobs on top of 3,500 job losses already announced. Allen Yurko, Invensys's chief executive, resigned.
Siemens, the European technology giant, was hit by heavy losses in the latest quarter, driven by the poor performance of its telecoms businesses. The German firm said that it would speed up restructuring of its telecoms operation, which could involve further job losses on top of the 8,000 that have gone so far this year.
Compaq reported a $279m loss in the second quarter, after a profit of $388m last year. The PC maker is shedding staff and writing off assets. Xerox, another troubled American technology company, joined Compaq in issuing a profit warning.
Fiat and Electricite De France succeeded in their battle to take over Montedison. The big Italian energy company succumbed to an improved offer from Fiat and EDF of around EURO6 billion ($5.3 billion), but the European Union's competition authorities, anxious to ensure a liberalised market in energy, may yet intervene.
Source - The Economist
Aggregate Industries announced pre-tax profits of 35.1 million pounds, on turnover of 584.3 million, for the six months ending 30th June 2001. Earnings per share stand at 1.8p.
British Biotech announced pre-tax losses of 23.5 million pounds, after exceptional charge, on turnover of 1.59 million, for the year ending 30th April 2001.
Cookson, the industrial materials group, announced pre-tax profits of 12.3 million pounds, after exceptional charge, on turnover of 1,155 million, for the six months ending 30th June 2001. Earnings per share stand at 0.3p.
Eurodis Electron, the electronic components distributor, announced pre-tax profits of 12 million pounds, after exceptional charge, on turnover of 450.5 million, for the year ending 31st May 2001. Earnings per share stand at 9.4p, on increased capital.
Renishaw announced pre-tax profits of 30.8 million pounds, on turnover of 125.3 million, for the year ending 30th June 2001. Earnings per share stand at 34p.
MERGER NEWS
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/s to the Monopolies and Mergers Commission under the provisions of the Fair Trading Act 1973:Acquisition by Alchemy Partners of Totectors Ltd
Completed acquisition by Centrica Plc and TotalFinaElf of Humber Power Limited
Final plans for setting up a new Telecoms Ombudsman, in the first half of next year, to resolve disputes between consumers and telecoms companies have been published on the 26 July 2001 by Oftel.
The Ombudsman will provide a new independent and impartial service, enabling consumers to resolve disputes with their telecoms company more quickly and easily without having to go to court.
Oftel has set out the timetable for the introduction of the Ombudsman. The following are the key stages for implementation:
Oftel believes that the industry will accept responsibility for establishing and running the scheme. This will ensure industry ownership and commitment and allow for greater flexibility in the detail of the scheme.
Oftel will work closely with the industry and consumer groups to ensure effective implementation and will take any necessary action to keep the project on track.
David Edmonds, Director General of Telecommunications said:
"I am delighted to be able to announce firm plans for a Telecoms Ombudsman. I look forward to all operators and service providers - both fixed and mobile - rising to the challenge of establishing the scheme by summer 2002 at the latest.
"The Ombudsman will provide consumers with an important service - a free and easy to use scheme to resolve any dispute with their telephone company over their telephone bill or the terms and conditions under which their telephone service is provided.
"The Ombudsman will have the power to investigate disputes and to award compensation to consumers.
"Setting up the Ombudsman is an important example of Oftel and the industry working closely together to the benefit of consumers without the use of formal regulation.
"This self-regulation by the industry allows the scheme to be set up with greater flexibility, speed and efficiency than by introducing a statutory scheme.
"The industry and consumer groups have been right behind the scheme throughout the planning stages. With their continued commitment and co-operation I believe the Ombudsman can be implemented quickly and with great success.
"Oftel firmly believes that the Ombudsman scheme will be a crucial part of the Government's plans for the future regulation of the communications industry and will continue to work closely with the Government to take those plans forward."
Implementation of a Telecommunications Ombudsman Scheme is available from Oftel's website at: http://www.oftel.gov.uk/publications/consumer/ombu0701.htm.
Access to the Ombudsman Scheme will be limited to residential consumers and small businesses.
It is proposed that the maximum value of award that the Ombudsman will be able to make against a member is £5,000.
Wednesday 26 September Sussex & Surrey Branch of the ICM A speaker from Surrey Police Fraud & Financial Investigations Unit Venue - The Bridge House Hotel Reigate Time: 700 for 7.30 p.m. Sponsored by ICC Information Systems Ltd 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 Thursday 22 November Sussex & Surrey Branch of the ICM Factoring/Invoice Discounting/Asset Finance Speaker: To be advised Venue - HSBC, Farncombe Road, Worthing Time: 7.00 for 7.30 p.m. Sponsored by HSBC Thursday 24 January 2002 Sussex & Surrey Branch of the ICM Annual General Meeting Followed by Dinner. Speaker: To be advised Venue - The Imperial Hotel, Hove Time: 7.00 for 7.30 p.m. # = pounds sterling 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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