Design
House UK, working from a purpose built 5,800 sq ft. warehouse and office
complex in Bolton in Lancashire, recently launched ‘Trade Select’,
a range of practical high quality taps for kitchen & bathroom plus
showers, shower pumps and bathroom accessories. All products are presented
in striking and recognisable packaging individual to the company.
The Trade Select range will be marketed through the traditional Builders’
and Plumbers’ Merchant chain and DHUK has gone to great lengths to
provide plumbers with the products they desire and merchants with an effective
round-the-clock service. Although official office opening hours will be
from 08.00 to 18.00 hours, staff will thereafter be on constant duty to
process incoming emailed and faxed orders to ensure despatch the following
day. Smart Point of Sale literature dispensers are available and will
be regularly restocked by DHUK staff, while the A5 literature will be
backed up by a quarterly publication giving updates on new products, prices
and special offers to meet customer demand.
Mike Campbell, Managing Director of DHUK (pictured right), is proud of
his company’s Trade Select range. ‘We are offering truly well
made brassware products designed specifically with the plumber in mind.’
he says ‘Just as important, we have a system in place that will give
full, comprehensive support to Merchants. We are confident that the high
product quality and distinctive branding of Trade Select will make a major
impact on the market. But this is only the start; there will be more to
come from DHUK!’
Tel: 01204 699333
Email: mailto:sales@designhouseuk.com
Web: http://www.tradeselect.com
Family
Fails to Clean up in Washing Machine Fire Case
A family who claimed a faulty washing machine caused a £1 million
fire at their home were today landed with a £150,000 legal bill
after dropping their case for compensation. Quintin Lovis and his wife
Michele sued Hoover and high street chain Dixons, claiming the £349
washing machine was to blame for the fire at their 17th-century Essex
farmhouse. But on Tuesday they withdrew the case and face paying £25,000
each to Hoover and Dixons in legal bills as well as their own costs of
£100,000.
The Lovises had received £900,000 from their insurers to compensate
for the damage, but then agreed to take Hoover and Dixons to court as
a means of recouping the money on behalf of the insurer. It is thought
the insurer may step in to help Mr Lovis meet at least part of the costs.
Mr Lovis, a former Lloyd's underwriter, dropped the case after it emerged
the fire could have been caused by another appliance.
Mr Lovis, 53, and his wife, 52, insisted in evidence last year that the
AC170 washing machine caused the fire which spread from their utility
room to the billiards room and caused extensive damage to their Grade
II-listed Mantells Farm, at Aldham, near Colchester.
Hoover and Dixons denied breach of contract or selling faulty goods under
the Consumer Protection Act.
On 23 February 1999, they put the machine on and went to bed, only to
be woken at 5am by 'crackling noises'.
Mr Lovis went to investigate and was confronted by a fire which had spread
to the roof. He woke his wife and while she looked for a way out, he rushed
to another part of the house to wake their 21-year-old son Alex. All three
managed to flee to safety.
The Fire Brigade says the fire started in the utility room and then spread
to the roof of the billiard room next door. The roof then collapsed, limiting
damage to the rest of the property.
Both Hoover and Dixons claimed the fire could have been started by an
old tumble drier kept in the utility room, which the couple say was not
plugged in, or by a computer. Firefighters found the Hoover still standing
with the clothes inside it, undamaged.
Maytag
Corporation and Samsung Electronics Co., Ltd. Announce Strategic Alliance
Agreement
Maytag
Corporation and Samsung Electronics Co., Ltd. announced on 24th February
that they have signed an agreement for Samsung to manufacture high-efficiency,
front- load laundry products for Maytag. The strategic agreement is designed
to expand Maytag's existing laundry product lines and strengthen its market
position, both in the United States and internationally. Maytag plans
to continue manufacturing laundry products in the United States.
'Since these laundry models will all be new for Maytag, this agreement
will help us increase the variety of laundry products Maytag offers to
consumers worldwide, while continuing our tradition of dependability and
innovation,' said Ralph F. Hake, chairman and CEO of Maytag Corporation.
'This laundry partnership will combine the best of Maytag's design, testing,
consumer research, marketing and sales expertise with Samsung's laundry
and electronics knowledge and world-class manufacturing capability.'
Samsung Electronics Co., Ltd. Executive Vice President Moon Yong Lee said,
'We're pleased to cooperate with Maytag, a leader in the United States
laundry appliances market. Our advanced technology, along with Maytag's
product development, engineering and design expertise, will ensure we
maintain the highest standards of quality that customers expect.'
These laundry models initially will be marketed exclusively under the
Maytag and Amana brands and will be sold through normal Maytag distribution
channels beginning later this year in the United States and international
markets. The laundry agreement will serve as a basis for discussions about
other potential business cooperation, Hake said.
Maytag Corporation is a leading producer of home and commercial appliances.
Its products are sold to customers throughout North America and in international
markets. The corporation's principal brands include Maytag®, Amana®,
Jenn-Air®, Jade®, Hoover® and Dixie-Narco®. Approximately
90 percent of all manufacturing across the entire corporation takes place
in the United States. In addition, 96 percent of Maytag Appliances manufacturing
employees are located in the United States, where the corporation operates
12 manufacturing plants, including four laundry facilities.
University
Doctor to Earn More by Becoming a Plumber
A
molecular biologist is retraining as a plumber in response to the comparatively
low wages paid by his university, it emerged recently. Dr Karl Gensberg
said he hoped to double his £23,000 annual salary by abandoning
his post at Birmingham University, following a 13-year career in research.
The academic, from Streetly, West Midlands, decided to take up a new trade
after a conversation with a tradesman. 'The plumber said he assumed I
had loads of money because I had a PhD. I happened to have my pay slip
to hand, so I showed it to him and he was absolutely gobsmacked. He said
he earned £33,000 and some of his colleagues took home £50,000.
'I just thought what am I doing? My work is a combination of zero career
structure, contractual abuse and pathetic pay, which is a pretty poor
package.
'Even if I make the same amount as I do now, at least I won’t need
to be worried about what will happen to me when my short-term contract
ends.'
A university spokeswoman said: 'Dr Gensberg is employed on a fixed-term
contract, which will end shortly and, therefore, the university has been
seeking to redeploy him.
'He has been given time off and flexibility in his working hours to pursue
another career.'
Renewal
of Royal Warrant at Stoneham
English
kitchen furniture manufacturers, Stoneham Plc,
has had its Royal Warrant to HM The Queen officially renewed after an
initial tenure of 10 years. Under new strict rules the present Award will
be evaluated for renewal after 5 years.
Stoneham is a 5th generation manufacturer of fine furniture founded in
1864 and has emerged as one of Britain’s finest designers and producers
of high quality kitchens. The company was first awarded The Royal Warrant
10 years ago and has gained renewal through continuously high level of
product and service to a number of the Royal Households and associated
projects.
The awarding of The Royal Warrant proceeds along strict protocol and guidelines
and holders are constantly monitored. Managing Director Adrian Stoneham
says that the company is particularly proud to have had the Award renewed:
‘This is not only a recognition of our products and services, but
of the commitment and effort of an extremely loyal and skilled workforce.
It also means a lot to our distributors and customers.’
Tel: 0208 3008181
Email: mailto:kitchens@stoneham.plc.uk
Web: http://www.stoneham-kitchens.co.uk
Pic: Stoneham Sales Director Howard Stoneham outside the new office entrance displaying The Royal Crest
Hansgrohe
Provides Luxurious Bathrooms Onboard the QM2
Hansgrohe
has provided bespoke designer bathroom fittings to Cunard's new flagship
ocean liner, Queen Mary 2. Following five years of planning, QM2 was named
by HM the Queen in an historic ceremony on January 8th, attracting worldwide
media attention.
In keeping with the elegance and sumptuous surrounding of the cabins,
only the highest quality bathroom fittings were acceptable for this project.
A wide range of Hansgrohe basin mixers, showers, thermostatic shower controls,
Shower Panels, whirlpool baths and hundreds of accessories were supplied;
many of which have been specially manufactured carrying the Cunard logo.
Two of Hansgrohe's classic designer ranges from the Axor brand have been
extensively used: Axor Carlton, which captures the golden years of the
1920's and romance of foreign travel, is used extensively in the Suites,
Todd's English Restaurant, Olive's restaurant, and other public areas.
A
mixture of single lever and three hole basin mixers are installed with
matching accessories. Hansgrohe's patented, silky matt finish, Satinox,
is used in all areas except the Suites which are classic chrome.
Axor Terrano designer range is to be found in the Penthouses, Forward
Suites, Duplex Suites and Children's areas. Again a mixture of chrome
and Satinox finish were chosen with single lever basin mixers, plus many
three hole basin mixers, some with lever and others with cross handles.
Matching showers and accessories are installed to overall stunning effect.
Axor Steel, with its contemporary looks and practical performance, is
put to good use in the Canyon Ranch Spa and Hair Salon. The specification
list goes on to include Shower Panels from Hansgrohe's, Pharo, wellbeing
brand; such as the uniquely height adjustable Lift panel; the slimline
and compact Comfort Plus panel, and luxurious whirlpool baths for selected
cabins.
The project was managed throughout for Hansgrohe by Contract Sales Manager,
John Brunton. He states, 'This project has taken weeks, months and years
of work; so to see QM2 launched in all her glory is absolutely awesome.
This is truly a one of a kind project and we are all extremely proud at
Hansgrohe of our involvement.'
Tel: 0870 7701972
Email: mailto:info@hansgrohe.co.uk
Web: http://www.hansgrohe.co.uk
Hibberd
Distribution Success Demands New Premises
Hibberd
Distribution Ltd, the Blackpool based distributor of both Hotpoint and
Indesit kitchen appliances, has recently moved premises due to business
expansion. Adding a new head office, showroom and extensive warehouse
facilities, holding a larger quantity of stock for prompt delivery and
service.
After just four years in business, Hibberd Distribution has built a strong
customer base, including kitchen retailers, builders, merchants and developers
in the North East, North West and East Midlands. Thanks to a comprehensive
offering of built-in and freestanding appliances from Hotpoint and Indesit,
along with a wide selection of sinks and taps, Hibberd has products to
accommodate all.
Tony Hibberd, Managing Director at Hibberd Distribution comments: 'We
are very exdited about the future at Hibberd Distribution. Our new premises
have given us a great opportunity to really push the business forward,
and by offering leading appliance brands like Hotpoint and Indesit to
our customers, along with our prompt and efficient service, we are all
looking forward to the developments in 2004.'
Graham Ball, Commercial Director at Merloni Elettrodomestici UK comments:
'Merloni has a strong working relationship with Hibberd Distribution,
with the brand transfer from Ariston to Hotpoint in April 2003 boosting
HDL's business. We are looking forward to working closely with HDL in
2004, helping to grow the business further to ensure they need an extension
before too long!'
Tel: 01253 345 588
Email: mailto:order@hibberddistribution.co.uk
De
Dietrich Home Deliveries Include Full Installation for Every Sale of American
Refrigeration
As
part of its ongoing improvement of service, all home deliveries of De
Dietrich American fridge freezers include free installation and connection
of the water kit to existing plumbing.
De Dietrich sells two types of American fridge freezers, a fully cladded
stainless steel and a black model, with optional mirrored Anthelios panels,
the fitting of which is included in the home delivery charge. The stainless
steel model is also versatile, as it can be fitted as a built – in
or a freestanding appliance.
Paul Dominy, director of sales for De Dietrich says:
‘This is a luxury product and deserves a luxury service to go with
it. By incorporating the installation within the delivery cost, we are
able to provide a value added service for end users, who will not have
to wait around for a plumber before being able to use their appliance.’
Tel: 01256 308 000
Web: http://www.dedietrich.co.uk
Orama
Uncovers lndustry Perspective on the Worksurface Market
In
a recent survey, Orama, the independent manufacturer of worksurfaces and
associated decorative products, polled KBB industry professionals about
their views on future trends for kitchen worksurfaces. The short questionnaire
was designed to supplement Orama's initial market research findings in
a continued strategy to match its products to the needs of the industry
and to put its customers at the heart of its new product development.
As
part of the initiative, Orama entered all participants into a prize draw
with a chance to win the latest Planit Fusion CAD software from Planit
International. The lucky recipient, independent kitchen designer, Nicki
Theokritoff, was presented with the software during a visit to Orama's
premises in December (picture left).
The 'Skimming the Surface' survey confirms the requirement for a design-led
approach and the pivotal role that the worksurface plays in the choice
of kitchen. All the respondents acknowledged that the style of worksurface
would strongly influence a purchase, highlighting the symbiotic relationship
between units, appliances and worksurfaces.
According to the respondents, composites are likely to experience the
highest level of growth over the next two years, closely followed by laminates
and granite. With the emergence of new printing techniques, offering an
altogether sharper look and feel to laminates, industry professionals
also welcome the introduction of new visual effects, which appeal to consumers
looking for more sophisticated worksurfaces.
Peter Holt, Sales and Marketing Director, Orama, comments: 'With the worksurface
becoming firmly embedded as the one item binding all elements of the modern
kitchen, these findings are very encouraging. They confirm that the industry
is in tune with customer expectations and the trend in the market for
altogether more realistic and sharper effects offering more visual depth.
'Over the last 18 months, Orama has embarked on an ambitious programme
to align its entire business with the needs of the market. This has involved
continuous investment in both people and production techniques to deliver
the most innovative and modern worksurfaces and to meet the expectations
of retailers, distributors, kitchen manufacturers and consumers.'
Orama offers quality durable decorative panels and worksurfaces. Established
for many years, Orama holds ISO 9002 certification and the Furniture lndustry
Research Association Gold Award for product performance. The company is
also a corporate member of the KBSA (Kitchen Bathroom Bedroom Specialist
Association). All Orama's chipboard and solid timber products are sourced
from 'responsibly managed' forests.
Tel: 01773 520560
Web: http://www.orama.co.uk
Wilsonart,
the worktop manufacturer and high-pressure laminate supplier has continued
with its growth programme in plant and equipment. The purchase of seven
new fork-lift trucks from 'Lansing Linde' has seen capital expenditure,
in this area alone, rise to around £250,000 in recent months.
The equipment includes two High Mast and two Standard Mast lifts, each
with a load capacity of 3-tonne; plus a heavyweight lift with a 7-tonne
capacity. The order has been delivered to the company's Shildon site in
Co Durham, North East England and the purchase of a further two 'lifts'
is planned.
From his Newton Aycliffe base, Area Sales Manager for 'Lansing Linde',
James Robson comments:
'We are delighted to maintain our on-going relationship with such a progressive
and forward thinking Company as Wilsonart'.
Andrew Snowball is Works Manager for Wilsonart; he confidently predicts
yet further improvements in the delivery chain:
'Good equipment, good people and a bit of determination will ensure a
heightening of the level of service we provide for our customers'.
Wilsonart is a subsidiary of Wilsonart Inc, whose headquarters are in
Temple, Texas, USA. The business operates world-wide, and is part of ITW,
one of the leading conglomorates in America.
Tel: 01388 774661
Web: http://www.wilsonart.com
Hotpoint
is 5th Strongest of All Brands in the UK
The
UK kitchen appliance brand, Hotpoint, is ranked number 5 in a consumer
survey asking which brand they can't live without. In a recent survey
conducted by Martin Hamblin GFK, 1,000 adults were asked to name three
brands of any products or services they could not live without. The survey
revealed that Hotpoint came 5th, ahead of top brands Sony, Sainsbury's
and Heinz. It was only topped by BT at number one followed by British
Gas, Tesco and SKY TV.
Neil Tunstall, Marketing Director at Hotpoint comments; 'This is great
news for
Hotpoint. To be in the top five of a survey like this, where it's open
to all known brands is fantastic, especially as 2004 is going to be a
big investment year for the brand. To have a platform like this to build
on is superb - it's going to be an exciting year!'
Tel: 08709 060 060
Web: http://www.hotpoint.co.uk
Twigden
Homes Offers Opus Multi-Room Entertainment System in Southern Show Room
Opus
Technologies, the manufacturer of multi-room entertainment systems and
structured wiring solutions, recently announced that Twigden Homes will
now offer the Opus 500 Series Multi-Room Entertainment System to new home
buyers in the company's Southern Regional 'Choices' show room.
'Along with the latest in designer bathrooms and kitchens, more and more
of our customers are asking about the installation of hi-tech sound systems.
We chose to include the Opus system in our 'Choices' house for its simplicity,
style and value for money. Compared with the cost and inconvenience of
having various different CD players, speakers and radios dotted around
the house, Opus provides an affordable and neat solution,' commented Ann
Page, sales and marketing director, Twigden Homes.
'We at Twigden Homes like to offer our purchasers a wide choice of finishes
and additional items to enhance their new homes and lifestyles. To this
end, a property at 'Valley Park' in Peterborough has been devoted to showcase
many of the products available. Located alongside two showhomes and a
viewhome, the 'Choices' house enables purchasers to envisage the endless
possibilities available to create their own 'dream home'.
'With the Opus system playing in the background, our 'Choices' house now
provides a relaxing and mellow atmosphere in which customers can select
spa baths, glass sinks, corian worktops or, indeed, an audio entertainment
system,' concluded Ann.
"We are proud to be working with progressive developers such as Twigden
and to be helping them differentiate themselves in the market and add
value to their properties,' commented James Johnson-Flint, chief executive
of Opus Technologies. 'Modern entertainment technology attracts buyers,
especially when it exceeds expectations and costs less than people think.
Based on our extensive experience with many of the UK's leading housebuilders,
Twigden homes will now sell faster than ever.'
Web: http://www.opus-technologies.co.uk
Web: http://www.twigdenhomes.co.uk
The
number of people going bankrupt has soared by nearly a third during the
past year. During the final three months of 2003, 10,271 people in England
and Wales became insolvent, 12% more than during the previous quarter
and a 28.9% jump on the same period of 2002.
But at the same time the Department of Trade and Industry said the number
of companies that became insolvent fell to 3,316, 1.9% less than during
the three months to the end of September and a 22.5% drop on the same
quarter of 2002.
The figures came the day after the Bank of England's Monetary Policy Committee
raised interest rates by 0.25% to 4%, a move which is likely to increase
the pressure on people who are already troubled by debt.
Debt advice group Debt Free Direct estimates that yesterday's rate hike
will increase the number of people who are struggling to keep up with
their debts from 2.3 million to 6.46 million.
Chief executive Andrew Redmond said: 'The reason why there are so many
individual insolvencies is a direct consequence of the high level of consumer
debt.
'More and more people have overstretched themselves, then there is a change
in their lives, their income goes down, and they can't afford their debts
any more.'
He added that he thought there was a danger that the number of people
going bankrupt would increase dramatically once the new Enterprise Act
comes into force in April, reducing the period of bankruptcy from three
years to one year.
Electrolux
Board Proposals: Michael Treschow, new Chairman, and Aina Nilsson, new
Board Member
As
previously reported, Rune Andersson has declined re-election as Chairman
of the Electrolux Board at the Annual General Meeting in April 2004. Jacob
Wallenberg, Vice-Chairman, has also declined re-election.
Prepared by representatives of some of the large shareholders, the proposal
for election of Board members represents re-election of Board members
Peggy Bruzelius, Thomas Halvorsen, Louis R. Hughes, Hans Stråberg,
Barbara Thoralfsson, Michael Treschow and Karel Vuursteen, and the election
of Aina Nilsson as Board member.
The Board proposes Michael Treschow as new Chairman. Michael Treschow
is chairman of Ericsson and former President & CEO of AB Electrolux.
The proposal for election of the Board members has been prepared by representatives
of some of the large shareholders: Investor AB (Claes Dahlbäck),
Alecta pensionsförsäkring, ömsesidigt (Ramsay J. Brufer)
and AMF Pension (Tor Marthin) and Chairman of Electrolux Rune Andersson.
Aina Nilsson, proposed new Board member, is design director in AB Volvo.
Born in 1953, Nilsson is a graduate of the School of Art and Design at
Gothenburg University. She has been design director for Volvo Trucks and
has held several senior design positions within Saab Automobile and Saab-
Scania. Nilsson is a member of the board of Ballingslöv International
AB and chairman of the board of the Swedish Industrial Design Foundation.
The proposal will be submitted at the Electrolux Annual General Meeting
on April 21st, 2004.
UK
Company Profitability Enters Fifth Year of Decline
The
collapse in profitability of UK companies continued into the second quarter
of 2003, according to Experian® in its latest Corporate Health Check. The
average return on capital among leading British companies across the industrial
economy fell from 5.76 per cent in the 12 months to March 2003 to 5.23
per cent in the twelve months to June 2003.
'UK corporate profitability has fallen for 17 consecutive quarters and
is now barely one-third the level achieved in early 1999,' said Peter
Brooker of Experian, the author of the report. 'However, this was the
first time in more than two years that the decline from the previous quarter
has slowed down. It's too early to say if this is the start of a
turnaround and a return to growth in corporate profitability, but it is
a hopeful sign.
'The Alcoholic Beverages sector is now the only one out of the 24 industry
sectors studied in the Health Check to have seen any growth in profitability
over the last four years. 19 sectors are down from their peak by over
a third and the worst performing – the Media, Engineering, IT and
Telecommunications – by 90 per cent.
'This period reflects yet another of contraction of the manufacturing
sector, which now accounts for just 17 per cent of Gross Domestic Product
(GDP), compared with 21 per cent in 1997. The current level of output
in the manufacturing sector is the same as in 1994 and investment by manufacturers
has fallen to its lowest level for 20 years. According to the ONS,
129,000 jobs were lost in manufacturing in the last year, while the financial
and business services sector lost a further 22,000, agriculture &
fisheries 36,000 and energy & water 12,000. At the same time,
the public sector has grown by almost 160,000 jobs.
'Manufacturers are failing to benefit from the slight upturn in the global
economy, principally because 60 per cent of UK goods exports are to the
EU, where demand remains weak. The positive exchange rate for exporters
to the eurozone isn't sufficiently strong enough to outweigh the depressed
economic conditions in Europe or the effects of the weak dollar.
In addition, all sectors have to live with higher business costs, including,
since April, the rise in employers' NIC. As a result, business confidence
has fallen in ten of the UK's 12 regions, with the two exceptions only
narrowly escaping a fall themselves, according to the latest Regional
Trends Survey, published by the CBI and Experian's Business Strategies
division.'
The decline in corporate profitability is across the board, affecting
industries serving both domestic and export markets as well as manufacturing
and services. Of the 24 industries analysed by Experian, 17 have seen
their profitability fall in the last 12 months, 11 by more than one-fifth
– one more than in the previous quarter.
Seven industry sectors saw profitability grow over the last 12 months
– Oils (17.21 per cent to 17.69 per cent), Building & Construction
(14.71 per cent to 16.79 per cent), Textiles & Clothing (4.08 per
cent to 5.24 per cent), Alcoholic Beverages (10.57 per cent to 13.28 per
cent), Food Manufacturing (10.44 per cent to 13.55 per cent), Food Retailing
(10.56 per cent to 11.88 per cent) and Motor Traders (7.30 per cent to
10.22 per cent). All except Oils were also ahead of the previous
quarter.
The decline in the four weakest sectors, Engineering, IT, Telecommunications
and the Media, accelerated sharply in the second quarter. The quarterly
decline in the Engineering sector in the second quarter was almost 40
per cent, compared with 25 per cent between the fourth quarter of 2002
and the first quarter of 2003. In the Media, the decline was 48
per cent compared with 25 per cent in the first quarter, IT 44 per cent
compared with 30 per cent and Telecoms 43 per cent compared with 30 per
cent.
The slowdown has affected the north of the country more than the south,
particularly the North West, North East and Scotland. The exception
in the north is Yorkshire & Humberside, which recorded its fourth
consecutive quarterly improvement in profitability. However, a majority
of the country is affected, with profitability falling over the last year
in the South East (7.77 per cent in Q2 2002 to 5.29 per cent in Q2 2003),
Wales (2.02 per cent to 1.38 per cent), the West Midlands (11.47 per cent
to 7.91 per cent), the North West (6.51 per cent to 4.51 per cent), the
North East (13.62 per cent to 10.64 per cent) and Scotland (7.23 per cent
to 5.24 per cent).
In contrast, the South West, East Midlands, East Anglia and Yorkshire
all recorded better profitability in the second quarter of 2003 than in
both the previous quarter and a year earlier. The difference between the
East and West Midlands can be put down to less of a reliance on heavy
engineering and the motor industry and a more broadly based economy that
includes more Food Manufacturing and Textiles companies.
'The financial results in the second quarter of 2003 bring home the imbalances
in the UK economy between the consumer and public sector economies on
the one hand and the industrial economy on the other,' concludes Peter
Brooker.
'Although there are signs that growth in consumer spending may be slowing
slightly and consumers are less confident about prospects for the economy,
they are still spending robustly; public sector recruitment and spending
on infrastructure and services are strong, but the performance trend of
18 of the 24 industry sectors covered by the Health Check was weaker in
the latest quarter than in the previous quarter – up from 10 sectors
in the previous quarter.
'The economic outlook does appear to be improving, but the signals are
very mixed and it will take some time before any upturn is reflected by
improvements in corporate profitability. In the meantime, companies
are refraining from committing to any investments to improve productivity
– despite the widening gap with our G7 competitors – as they
wait to see how sustained any recovery might be. Many companies
are also curtailing investment plans because of concerns over pension
fund shortfalls.
'Trading conditions remain extremely challenging. Despite the fall
in limited company failures in 2003, they are still historically high,
and an uncertain economy will lead to a further decline in profitability
and more company failures in 2004. Therefore, it is more important than
ever for companies to check the financial stability of companies they're
doing business with and the people behind them if they are to make it
through 2004.'
Consumer
Credit Licensing Annual Update
The
OFT carried out a total of 1119 licensing actions in 2003. Some 778 licence
applications were withdrawn following challenge from the OFT, 228 warning
or advisory letters were issued and 113 Minded to Revoke/Refuse notices.
In addition, the OFT refused 34 licences and revoked 19 licences.
Offences taken into account in the refusal or revocation of licences include
theft of vehicles, forging documents, taking risks with creditors' money,
making false trade descriptions, taking monies without permission, drug
offences, handling stolen goods, violent disorder and supplying false
information on licence applications.
Under the Consumer Credit Act 1974, businesses that are involved in consumer
credit or hire must have a consumer credit licence. The OFT has a duty
to protect the interests of consumers by monitoring the fitness of those
holding and applying for licences.
In considering fitness the OFT can take into account a number of factors
including:
* any offence or conviction connected with the business or anyone involved
in running the business
* failure to comply with the provisions of the Consumer Credit Act or
other consumer protection legislation
* consumer complaints
* evidence of unfair business practices
* evidence of discrimination on grounds of sex, colour, race or ethnic/national
origin.
Penny Boys, Executive Director of the OFT, said:
'Where we have sufficient evidence, we will use our powers to refuse or
revoke credit licences to keep out unfit traders from the consumer credit
market. But we need more proportionate powers to ensure that all those
with consumer credit licences deal with borrowers fairly. We welcome the
Government's intention to reform the Consumer Credit Act to give the OFT
these powers.'