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 4
Dated: 30 January 2000
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKGROWTH SLOWS AS INTEREST RATES AND STERLING BITE
Business growth levelled-off and exports remained fragile in the last quarter of 1999, according to the latest quarterly economic survey from the British Chambers of Commerce (BCC), published on Tuesday 25 January 2000.
The survey, the largest and most detailed of its kind, covering 8,630 UK firms, shows that the rate of growth in UK manufacturing sales slowed and export sales recorded their smallest improvement since bottoming out a year ago.
The survey also shows that service sector domestic sales continued to grow but domestic orders declined for the first time in a year and export orders slumped 10 points on a quarter ago.
Firms in both sectors are facing intense competition at home and abroad with a knock-on effect on profit margins. The pressure to raise prices has risen strongly for manufacturers but has fallen a full 19 points for large firms in the service sector.
Dr Ian Peters, Deputy Director General of the British Chambers of Commerce, said:
‘’The levelling-off of indicators in the last quarter suggests that business growth is losing momentum. There is clear evidence that a combination of interest rate rises and the strength of sterling is starting to bite. In particular, the outlook for exports remains fragile with both manufacturing and service firms finding trading conditions difficult.
‘’On the strength of this survey, growth would appear to be under control. Despite price pressures in manufacturing from the rising cost of raw materials, the evidence suggests that there is little likelihood of firms making price increases stick. We would therefore urge the Bank of England to be extremely cautious about further rate rises which hold the danger of inflicting significant damage on UK business.’’
The survey shows that, in both sectors, firms’ intentions to invest continue the upward trend from last quarter, though they remain at or below average for the survey. Service sector investment in training appears to have levelled out and there is no reason to believe that this pattern will change in the next quarter. Micro companies (those employing 1-19) in the manufacturing sector reported lower levels of investment in equipment and training on a quarter ago.
Employment in the manufacturing sector has remained fairly constant over the past quarter, but the picture at regional level is very patchy with seven of the fourteen regions reporting a decrease in jobs growth. Micro-companies reported a significant fall in recruitment over the last three months, but firms’ optimism about future employment growth is at its highest for 18 months.
Job creation in the service sector has continued unabated now for nearly seven years, and firms’ expectations show this will continue but at a slightly slower pace. Smaller firms however report a slight deceleration in employment growth over the last three months.
Recruitment problems are up slightly in both sectors, with record levels of firms finding it difficult to find suitable semi/unskilled staff.
MANUFACTURERS SAY DEMAND HAS GROWN FOR THE FIRST TIME IN ALMOST TWO YEARS
But CBI argues against rate rise as prices and employment fall while investment plans remain weak
Manufacturers say demand is rising for the first time in almost two years despite the high value of sterling, according to the Confederation of British Industry's Quarterly Industrial Trends Survey.
The survey, published last Thursday, shows business optimism continuing to rise. Twenty three per cent of firms were more optimistic and 14 per cent less optimistic. The balance of plus nine per cent compares with plus 13 in October and plus five in July. Optimism about export prospects stabilised for first time in more than three years.
Total orders rose over the last four months for first time since April 1998. Thirty per cent said orders were up and 21 per cent said they were down. The balance of plus nine per cent compares with minus five in October and minus 19 in July. Export orders fell slightly but at the slowest rate since October 1996.
Companies said total orders will grow steadily over the next four months, reflecting expectations that domestic demand will increase and export demand will level off. A balance of plus nine per cent anticipate a rise.
Firms also said that output rose for the first time since April 1998. Thirty one per cent said output was up and 20 per cent said it was down. The balance of plus 11 per cent compares with minus one in October and minus 14 in July. Companies expect output to continue rising, with a balance of plus 11 per cent anticipating an increase over the next four months.
Nick Reilly is Chairman and Managing Director of Vauxhall Motors and head of the CBI's Economic Affairs Committee. He said: "Manufacturers have taken another step towards recovery. But we should not overstate the extent of the revival because domestic prices and employment continue to fall while investment plans remain weak.
"Companies are having to run much harder to stand still. Many firms are hanging on by their finger tips and the two-speed economy remains very much in evidence. Exports are stabilising but this is being driven by a rise in world demand. The strength of sterling is still holding back firms as they battle to compete.
"Another rise in interest rates would restrain economic growth unnecessarily when across the economy there is little evidence of inflation. Moreover, the impact of the millennium is still unclear. The Monetary Policy Committee should keep rates on hold until the trends become more certain."
The survey showed that domestic prices fell over the past four months, although at the slowest rate since July 1998. Firms anticipate a further fall over the next four months. Unit costs fell more slowly than prices over the past four months, suggesting a squeeze on profit margins for the seventh successive quarter. Firms expect the fall in unit costs to continue.
Employment fell over the past four months at the same rate as in the last quarterly survey. Firms anticipate a further fall over the next four months, but expectations are the least negative for almost two years. With employment falling and output rising, the survey suggests a marked rise in productivity.
Companies said plans to invest in plant and machinery remain weak for the year ahead, although they are less negative than in the first half of last year. The main constraint is an inadequate return on expenditure, concern about which is at the highest level on record.
CHAMBERS’ CAMPAIGN HIGHLIGHTS £10 BILLION BURDEN OF NEW LABOUR RED TAPE
Regulatory burdens under New Labour will cost UK firms in excess of £10 billion over the government’s first term, according to the British Chambers of Commerce, ahead of the launch today (Thursday 20 January) of a new campaign to cut red tape on British business.
Launched to coincide with the annual House of Commons debate on Small Firms, the BCC’s campaign cites, in a new "Burdens Barometer", the government’s own regulatory compliance cost assessments on a swathe of new regulations introduced since May 1997.
The BCC’s campaign will invite businesses to come forward with their concerns via a new website - www.britishchambers.org.uk/cutredtape - which will be used to raise awareness across government of the damaging impact of excessive regulatory burdens on British firms.
Chris Humphries, Director General of the British Chambers of Commerce, said:
"Despite all its rhetoric, the reality is that government has dramatically increased the regulatory burdens that threaten small business competitiveness. Excessive red tape is stifling the very enterprises the government is seeking to promote.
"What business and government need most are specific examples of where regulation constrains the growth and competitiveness of British firms. Our campaign will gather such examples and help government better fulfil its commitment to roll-back the burdens of red tape."
Launching the campaign, the BCC will urge government to commit to a range of key measures to improve the regulatory environment for small firms. These include:
Establishing a business-led tax simplification task force, which would thoroughly review the tax system, with the aim of simplifying it. The Trade and Industry Select Committee support this proposal.
Chris Humphries said:
"Business needs time – a learning space - to assimilate and understand the demands that any new regulation places upon them. Government failure to produce clear and manageable timetables for such regulations puts at risk employment opportunity and business growth."
CUSTOMS RELEASE FIRST REGIONAL TRADE FIGURES
The first import and export figures for the 12 Government regions were released last week by Customs and Excise.
Timothy Walker, Deputy Chairman of Customs and Excise, said:
"The new statistics provide essential information for the regions throughout the UK to plan the future economic development of their communities. They are also a must for analysts, businesses and academics interested in regional imports and exports, and local business activity."
A statistical news release with some commentary, additional tables and methodological notes is available from the Department's Tariff and Statistical Office on 01702 367333.
More detailed information, on regional breakdowns showing the numbers of importers or exporters, the value of their trade, the countries they are trading with and the products being traded are available by subscription from the Tariff and Statistical Office.
These statistics refer to goods that have crossed the UK frontier. Customs and Excise do not receive information in respect of goods that move wholly within the UK.
Information relating specifically to regional trade statistics can be found at http://www.hmce.gov.uk/bus/tso/index.htm
THE EURO
The Euro plumbed new depths against the dollar, again trading at below parity. This meant that, compared with the deutschmark, the dollar was at its highest rate for more than ten years.
The Government and seven banks are joining forces to fund a national telephone helpline for small businesses facing debt problems.
Under the new £540,000 three year initiative, businesses will receive telephone counselling and a self-help pack providing comprehensive guidance on dealing with business debts.
The helpline will be launched in July 2000 and will also be available through the Small Business Service (SBS) Gateway.
Patricia Hewitt, Minister for Small Businesses and E-Commerce, said:
"Small businesses can all too easily find themselves facing a debt crisis. The Business Debtline will provide expert counselling and self-help advice in tackling financial difficulties so that small firms can go on to thrive. This initiative is an excellent example of partnership between Government, banks and the voluntary sector."
The service will be provided by Birmingham Settlement who have several years experience of providing debt counselling for small businesses in the Birmingham area.
The service will be funded to the tune of £180K a year for 3 years. Government will invest £80,000 a year and the banks will jointly invest £100,000 a year.
Birmingham Business Debtline was launched in 1992 to provide advice and counselling to small businesses in Birmingham facing debt problems. It is a division of the Birmingham Settlement, a 100 year-old voluntary organisation which also operates a national debtline for personal debts advice. Since its launch, Birmingham Business Debtline's telephone help and advice line has handled around 1250 calls a year, including a substantial proportion from businesses outside the Birmingham area.
The following seven banks are supporting the initiative:
The SBS Gateway will provide a means of accessing a comprehensive national service of information and expert advice.
ECGD AGREEMENT WITH NCM CONCLUDES COOPERATION ARRANGEMENTS WITH BENELUX COUNTRIES
ECGD last week announced it had signed an agreement with NCM N.V., the Dutch Export Credit Agency, which will provide UK and Dutch capital goods exporters with "One Stop Shop" access to export credit packages when they work together in projects in third countries.
The NCM agreement was signed in London by David Wyatt, Head of Business Promotion, and Bas Sepers, Director of NCM N.V.'s mediumand longg term business.
Mr Wyatt said:
"We are delighted to have concluded this agreement with NCM. Our ties with them go back a long way. This is good news for British and Dutch exporters who can now choose to approach only one Export Credit Agency when bidding jointly for overseas contracts. It should help to make future joint bids more competitive and reduce tendering costs."
Mr Sepers added:
"NCM, too, welcomes today's announcement and we very much look forward to working with ECGD in the future as we both seek to help our exporters secure valuable overseas orders."
This agreement is similar to co-operation and "One Stop Shop" arrangements which ECGD already has in place with several other countries. Agreements with ONDD of Belgium and ODL of Luxembourg were concluded on 3 December 1997 and 8 October 1999 respectively, for instance.
The main features of the Dutch Agreement are:
MORTGAGE POSSESSION STATISTICS - FOURTH QUARTER 1999
The Lord Chancellor's Department today published figures for mortgage possession actions entered in the county courts of England and Wales for the fourth quarter of 1999.
During the fourth quarter of 1999 19,794 mortgage possession actions were entered and a total of 12,657 orders were made - 7,816 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 fourth quarter of 1999 the number of actions entered was 17.3% less than the fourth quarter of 1998. For the same period, figures show a decrease of 21.9 % in orders made (61.8% of orders made were suspended - 63.5% were suspended in the fourth quarter of 1998).
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.
A claimant begins an action for an order for possession of residential property by way of a summons in a county court.
The court, following a judicial hearing, may grant an order for possession immediately. This entitles the claimant to apply for a warrant to have the defendant evicted. However, even where a warrant for possession is issued, the parties can still negotiate a compromise to prevent eviction.
Frequently, the court grants the mortgage lender possession but suspends the operation of the order. Provided the defendant complies with the terms of the suspension, which usually requires the defendant to pay the current mortgage instalments plus some of the accrued arrears, the possession order cannot be enforced.
Figures on properties being taken into possession are published twice a year by the Council of Mortgage Lenders. These figures may be obtained through the Council's press office (0171-437-0655), Website address : www.cml.org.uk
Figures on mortgage possession actions are published on a quarterly basis. Publication date of the figures for the first quarter of 2000 will be 26 April 2000.
STUDENTS GET NEW DEBT/SHOPPING RIGHTS WEBSITE
'Wake Up, Wise Up, Speak Up, Don't Get Shafted' advises OFT
The OFT breaks new ground last week by launching a website targeted directly at young people in higher education.
The site provides information not only about consumer rights and redress when problems arise in buying goods or services, but includes a major section on issues of consumer credit, money management and debt.
Launching the site - www.ofthelp.com - in a student 'cyber cafe' in Liverpool, John Bridgeman, Director General of Fair Trading said: '300,000 people start higher education courses each year. For the most part, these are young people living away from home for the first time. Increasingly they are being called upon to pay their way, to manage their budget carefully, and to make consumer choices.
'Ofthelp.com is designed to help them not only to shop wisely, but to get effective redress when things go wrong. It gives tips on money management and advice on how to deal with debt.
'The website is written in the language of students and not the language that you would normally expect from a Government department. I make no apology for the message "Wake Up, Wise Up, Speak Up, Don't Get Shafted", because I believe for the website to be accessed and for the advice to be of use, students must be able to relate to it.'
Topics covered on the site include:
To support the campaign, posters will be put up around student Union buildings around the country and beer mats giving details of the website will be appearing in Union bars, advertisements are also been put in student papers and on student radio.
The OFT publishes a wide range of consumer leaflets which are available free from: OFT, PO Box 366, Hayes UB3 1XB 0870 6060321
*** Forthcoming Creditors Meetings ***
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From 31/01/2000 to 08/02/2000 Number of Creditor meetings : 182 Section Company Time Venue 138 Scotland - Interim Liquidator calling Creditors Meeting 31/01/2000 Capital C Catering Ltd 10.00 am Aberdeen 02/02/2000 Allied Office Group Ltd 02.30 pm Glasgow 03/02/2000 Petrochemical Computer Services Ltd 11.00 am Aberdeen 04/02/2000 Spey Valley Developments Ltd 03.00 pm Aberdeen 07/02/2000 DMS (Scotland) Ltd 11.00 am Glasgow 23 Administrator Calling a meeting of Creditors 01/02/2000 Osovel International Ltd 10.30 am London Temperature Ltd 12.00 pm London 02/02/2000 G C & E A Seymour-Smith Ltd 11.00 am Matford Hamlet Circuits Ltd 11.00 am London Pex Plc 11.00 am Leicester Pex Sox (UK) Ltd 11.00 am Leicester Pex Sox 2000 Ltd 11.00 am Leicester Pex Sox Ltd 11.00 am Leicester Polisox 2000 Ltd 11.00 am Leicester 03/02/2000 Excel Clothing Ltd 11.00 am London HBSV (Europe) Ltd 11.00 am Birmingham HBSV Ltd 11.00 am Birmingham HBSV Overseas Services Ltd 11.00 am Birmingham HBSV Properties Ltd 11.00 am Birmingham HSM International Ltd 10.30 am Nottingham 04/02/2000 H L Bazzars (Wholesale) Ltd 11.00 am Birmingham 48 Receiver calling unsecured Creditors Meeting 02/02/2000 8811 Ltd 10.30 am London Cherokee Frankenhuis Ltd 11.00 am Manchester Daedalus CB Corporation Ltd 11.00 am Bristol S Frankenhuis & Son (MMF) Ltd 11.00 am Manchester S Frankenhuis & Son Ltd 11.00 am Manchester 04/02/2000 Associated Building Services Ltd 10.00 am Cardiff 07/02/2000 Relatively Stable Ltd 11.00 am Leeds 08/02/2000 Varicol Ltd 11.00 am Birmingham 95 Members converting to Creditors Voluntary Liquidation 02/02/2000 Primo Trading Ltd 11.00 am Birmingham 98 Creditors Voluntary Liquidations 31/01/2000 About Travel Ltd 11.30 am Tong Anthony Melia Packaging Ltd 11.30 am Leicester Bellator Ltd 12.00 pm Manchester Bowman Contract Carriers Ltd 11.00 am Sandbach Broadaim Ltd 10.30 am Driffield Centra Fashions Ltd 10.30 am London Continental Drinks Ltd 03.00 pm Manchester David A Fordham Transport Ltd 12.00 pm Barnet Didsbury Cafe Bar Ltd 11.30 am Manchester Euromax Electronics Ltd 10.30 am Driffield Fema Ltd 12.00 pm London Fylde Independent Training Ltd 11.30 am Blackpool Labournmaster Ltd 10.30 am Sleaford Leppin Health Performance Products Ltd 12.00 pm London Marble Fashions Ltd 11.30 am London Maudwall Transport Ltd 03.00 pm Romford Melron Ltd 11.00 am Hereford Nelhans Agencies Ltd 12.00 pm Manchester Raven Car Spares Ltd 11.00 am Southend-on-Sea Route 19 Ltd 11.15 am London Spartan Redheugh Ltd 12.00 pm Newcastle-u-Tyn VMP Ltd 02.30 pm London 01/02/2000 Activemove Ltd 12.00 pm Manchester Advanced Demo & Dismantling UK Ltd 11.00 am Edgware Anglian Packing Services Ltd 11.00 am Cambridge Bronzestar Import/Export Ltd 12.00 pm London Bryngelli Engineering Services Ltd 11.30 am Cardiff CLS Electronics Ltd 10.15 am Bury City Emergency Ltd 11.00 am London Company Cars Ltd 11.00 am York Crown Pools Ltd 11.00 am London Else Distribution Ltd 11.30 am Ashford Enna Ltd 04.00 pm London Garden Centre Supplies Ltd 11.30 am Lutterworth Global Beat Records Ltd 11.15 am Bately Interior Perceptions Ltd 03.30 pm Leeds Jadebond Ltd 11.30 am Southampton Lapot Ltd 11.00 am London New Milton Fisheries Ltd 11.15 am London Palm Tree Services Ltd 02.30 pm Paddington South West Initiative Training Ltd 12.00 pm Kingston-u-Tham Swish Timber Products Ltd 02.00 pm Newport Tarnish Merchants Services Ltd 10.00 am Kingston-u-Tham Trade (Bars) Ltd 11.30 am London Twerton Precision Engineering Ltd 02.00 pm Bath Workforce LCM Ltd - The 02.15 pm London 02/02/2000 Catercore Ltd 11.00 am Bolton D H Health Ltd 10.15 am Sheffield Deerleap Homes Ltd 11.00 am London Eggborough Tipper Ltd 11.15 am Bately Ffenestri Britannia (Windows) Ltd 12.00 pm Llandudno Final Time Ltd 11.30 am London G P Packaging Ltd 11.30 am Bolton Global Enterprises (UK) Ltd 11.00 am London Nationwide Electrical Contractors Ltd 11.30 am Warrington Norton & Co Engineering Ltd 12.00 pm Mossley Oaktree Ltd 11.00 am St Albans Paddico (194) Ltd 10.30 am Sheffield Paul Dennis & Sons Ltd 10.30 am Cardiff Quay Electrics (Brixham) Ltd 10.30 am Brixham RST Sports & Leisure Ltd 11.00 am Sunderland Sparaton (Docklands) Ltd 11.00 am London Stock Management Ltd 04.00 pm London Tatum Ltd 10.30 am Reading Tonetop Ltd 11.30 am Bingham Vertical Lift Systems Ltd 11.15 am Sidcup 03/02/2000 A J Offerdy & Sons Ltd 12.00 pm London Alderlight Ltd 11.00 am Bishop Auckland B G Installations Ltd 11.30 am Hildenborough Bob Brand Promotions Ltd 10.30 am London Bondway Enterprises Ltd 10.00 am St Albans Brookwood Construction Ltd 11.30 am Southampton D & D Engine & Transmissions Prod Ltd 10.30 am Droitwich Spa Deryck K Morley Ltd 11.30 am Mackworth Dextrum Industries Ltd 12.00 pm Bishop Auckland Eagle Mouldings Ltd 11.45 am Meriden Edco Alloys Ltd 02.30 pm Birmingham Gradepost Ltd 11.00 am London Hawkes Hill Publishing Co Ltd 11.30 am Worcester Industrial Support Services Ltd 11.30 am London Inwoods Healthcare Ltd 11.30 am Birmingham J M Fabrications Ltd 11.00 am Sunderland J P Plastics Ltd 11.00 am Bramhope JD Cleaning & Bar Supplies Ltd 11.00 am Birmingham K Brown & Co (Newcastle) Ltd 10.30 am Newcastle-u-Tyn Kainthal Textiles Ltd 12.00 pm Birmingham Kays Installations Ltd 10.30 am Sutton Kelrine Ltd 10.30 am Halifax London Cable Installations Ltd 11.30 am Sutton Maplin Club Ltd 12.00 pm London Mounttrend Ltd 11.30 am York New Century Timber Ltd 10.30 am Hull Norrab Ltd 02.00 pm London Ployspin Ltd 11.30 am London R S Mechanical (Gas Shop) Ltd 12.00 pm Walsall R Shepherd Ltd 10.30 am Broughton Ramprint (Reading) Ltd 11.30 am Aylesbury Redbrae Ltd 12.00 pm Glasgow Select Trading (UPVC) Ltd 10.00 am Taunton TMS Electrical Supplies Ltd 12.00 pm London UK & European Projects Ltd 11.00 am Southend-on-Sea Underpinning To Roof Ltd 12.00 pm Barnstaple United Timber Sales Ltd 12.30 pm Hull 04/02/2000 Abacus Management Ltd 10.30 am London Bright Red Ltd 12.15 pm London Business Coach Personnel Ltd 10.00 am Swansea Business Develop Partnership Ltd - The 11.30 am London Censorbay Ltd 12.15 pm London Communicat Innovation Group Ltd - The 12.30 pm London Conveyor Modules Ltd 11.00 am Nottingham Creative Concept Development Ltd 01.30 pm London Dewrun Ltd 03.00 pm Northwood Direct Cause Ltd 11.30 am Preston Elite Fabrications (NW) Ltd 12.00 pm Manchester Filway Ltd 04.00 pm London Gallacher Contract Services Ltd 11.00 am Chatham Grimliew Ltd 12.00 pm London Helping Hands Group Plc - The 11.30 am Manchester Hide & Fidelity Ltd 11.15 am Gerrards Cross High Furnishing Ltd 11.30 am Blackburn Icon Signs & Graphics Ltd 11.00 am Bishop Auckland Information Partners Ltd 11.15 am Bromley Kingmaker Fashions Ltd 11.30 am Harrow M R S (UK) Ltd 10.15 am Birmingham Morrison Instruments Ltd 11.00 am Manchester Nero Gems Ltd 03.30 pm London OFS (1992) Ltd 11.00 am Glasgow One To Three Ltd 11.00 am London Origin 8 International Sourcing Ltd 11.15 am London Production Warehouse Ltd - The 11.00 am London R K G Engineering Ltd 10.30 am Walsall Regency Windows (Wigan) Ltd 02.30 pm Preston Stardust Cabaret Ltd 03.00 pm Slough Superstar Technology Ltd 12.00 pm London Unit 8 Trading Ltd 03.00 pm Tong Upgrade Direct UK Ltd 11.00 am Gravesend Wycombe Ceramics & Bathrooms Ltd 11.00 am Reading 07/02/2000 All Genuine Parts Ltd 02.30 pm Dereham Auto Future Ltd 11.00 am London Bel Services Ltd 10.30 am Droitwich Spa E S B Engineering Co Ltd 11.00 am Manchester Lectrotech Ltd 11.30 am Birmingham Luna Italian Shoes Ltd 11.00 am London MTM Marketing Ltd 11.00 am Chipping Norton 08/02/2000 Camilla Ltd 12.00 pm Lower Beeding Cato Engineering Ltd 11.30 am Worcester Damar Manchester Ltd 10.30 am Manchester Hyde Park Restaurant Ltd 02.30 pm Paddington J W Swithenbank Ltd 10.00 am Leeds Lovat Protection Services Ltd 10.30 am London Squires & Bartlett Ltd 11.00 am Mickleover Wettenhall Nursery Ltd 11.30 am Crewe
TW LW TW LW
USA 1.63 1.64 Canada 2.35 2.38
Austria 22.86 22.37 Portugal 333.18 325.91
France 10.90 10.66 Belgium 67.03 65.58
Finland 9.88 9.66 Italy 3217.85 3147.78
Germany 3.25 3.18 Sweden 14.29 13.94
Holland 3.66 3.58 Switzerland 2.67 2.62
Spain 276.51 270.49 Ireland 1.30 1.28
Australia 2.59 2.47 Denmark 12.35 12.10
Hong Kong 12.75 12.77 Euro 1.66 1.62
Africa Com 10.31 10.02 Saudi Arabia 6.14 6.16
India 71.41 71.52 Malaysia 6.22 6.24
Singapore 2.78 2.75 Norway 13.42 13.14
Japan 173.80 173.82
TW This week LW Last week.
Seacon announced pre-tax profits of 3.28 million pounds, after exceptional credit, on turnover of 14.9 million, for the year ending 30th September 1999. Earnings per share stand at 10.4p.
Britain's NATWEST, trying to fend off two hostile bids, from BANK OF SCOTLAND and ROYAL BANK OF SCOTLAND, promised to return up to 7 billion pounds ($11.5 billion) to shareholders. BoS improved its offer; but both have until January 31st to make final bids.
Source - The Economist
PROCTER & GAMBLE, a big American consumer-products firm, withdrew from talks to take over two American drug companies, WARNER-LAMBERT and AMERICAN HOME PRODUCTS. This clears the way for Pfizer's $78 billion bid for Warner-Lambert.
Source - The Economist
SINGAPORE TELECOMMUNICATIONS and CABLE AND WIRELESS held talks to discuss a merger between HKT, a Hong Kong telecoms company 54% owned by C&W, and SingTel, the two leaders in their own markets.
Source - The Economist
Shares in BRITISH BIOTECH fell 40% after the release of clinical-trial results showing that marimastat, its cancer drug, had no effect on survival rates for patients with advanced pancreatic cancer when used in combination therapy.
Source - The Economist
Foreign creditors of DAEWOO, South Korea's debt-ridden chaebol, have agreed in principle to sell their outstanding loans to Daewoo to South Korean banks for around 40% of the loans' face value, less than had been hoped. Restructuring the ailing conglomerate will be considerably eased once the threat of legal action by foreign creditors is lifted.
Source - The Economist
FORD, the world's second-largest car company, announced that its fourth-quarter profits for 1999 rose 73% from the previous quarter, to $1.8 billion, and full-year profits to $7.2 billion, an industry record. Car and lorry sales have boomed in America along with the economy.
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 merger between Daily Mail and General Trust plc and Bristol United Press plc
Proposed acquisition by QBE International Insurance Limited of Iron Trades Insurance Company Limited
Proposed acquisition by Westminster Healthcare UK Limited of Priory Healthcare Limited
Proposed acquisition by Arjo Wiggins Appleton Groupof certain assets of Rexam Custom Ltd namely its specialist paper division Chartham.
KIM HOWELLS CLEARS PROPOSED ACQUISITION OF CENTRAL AND SOUTH WEST CORPORATION BY AMERICAN ELECTRIC POWER
Kim Howells, Minister for Consumers and Corporate Affairs, has decided not to refer to the Competition Commission the proposed merger of American Electric Power and Central and South West Corporation.
Dr Howells made his decision in accordance with the advice of the Director General of Fair Trading (DGFT) and in the light of the views of the Director General of Electricity Supply (DGES).
Announcing his decision, Dr Howells said:
"I have considered carefully the advice of the DGFT and the views of the DGES on this merger. The DGES considers that the merger would raise certain competition and regulatory concerns in relation to the markets for electricity distribution and supply, for example, the potential loss of an independent comparator in distribution. But he considers that these would be addressed by non-statutory assurances from the parties.
I agree with the DGFT that the competition or regulatory concerns in this case do not warrant a reference to the Competition Commission, and would be met by assurances from the companies involved. I have accordingly accepted assurances now offered by the companies, and am publishing these today.
The DGES intends to incorporate commitments given by the parties in licence conditions, which are enforceable under the Electricity Act 1989. The parties have also given me an assurance that until the licence modifications are made, they will behave as if the modifications were already in place."
The American media giant which recently agreed to the world's biggest merger, with America Online, announced it would merge its record business with that of EMI, to become the world's largest record company. The deal was partly in response to the challenge of direct sales of music over the Internet, admitted the companies' managers.
THE EUROPEAN COMMISSION
The European Commissiom said it aimed to pass a mass of new e-commerce laws before the end of this year to help the EU catch up with the US in the Internet business.
10th February 2000 Companies House Seminar Shaw Hill Hotel Whittle - le - Woods Chorley Nr Preston Lancashire PR6 7PPW 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 17 February 2000 The ICM Construction Industry Conference "The Changing Face" Kingsway Hall, London WC2 A must for all those involved in the UK Building and Construction Industry 21 February 2000 Wessex branch meeting of the ICM Mock Meeting of Creditors The Southampton Yacht Club 1 Channel Way, Southampton 7.00pm for 7.30pm 8 March 2000 ICM Conference on Commercial Credit Fraud CBI Conference Centre, London WC1 Exhibitors should telephone Sheila Simmons at the ICM on 01780-722907 14 to the 16 March 2000 Credit 2000 THE UK event for the Commercial and Consumer Credit Industry Olympia, London 20 March 2000 Wessex branch meeting of the ICM - AGM The Southampton Yacht Club 1 Channel Way, Southampton 7.00pm for 7.30pm Sponsored by Croner Publications 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
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