Griffin and King

Cost of winding up SMEs to increase

2012-02-29T15:07:00.000-08:00

The cost of winding up small businesses will increase considerably from March as a
result of new legislation.

Under current rules, the Extra-Statutory Concession 16 allows company directors to
wind up a solvent company without the need to appoint a liquidator, with the surplus
funds being passed to shareholders as capital receipts instead of dividends.

Because this money is subject to capital gains tax, rather than the income tax on
dividends, shareholders will usually pay less tax on it.

However, the Chartered Institute of Taxation (CIOT) is warning of changes from 1
March 2012, when the new Enactment of Extra-Statutory Concessions Order 2012 comes
into effect.

This new legislation will mean that the favourable tax treatment for winding up
companies will only apply to those whose total distributions do not exceed £25,000.

These changes will place significant additional financial and administrative burdens
on small and medium-sized businesses, according to the CIOT.

Read more: http://www.thesme.co.uk/news/192/cost-of-winding-up-smes-to-increase/

Research finds businesses are failing because of uncertainty over admin expenses

2012-02-26T15:31:00.000-08:00

A recent survey of R3’s members found that on average, 28% of potential trading administrations are now pre-packed or liquidated because of the expenses regime. This demonstrates that the legislation setting out what is an administration expense needs urgent changes to help save viable businesses.

The UK’s business rescue culture is being hampered by the Government’s refusal to implement legislation to clarify what is an expense of an administration. This will help rescue thousands of businesses that enter administration, says R3, the insolvency trade body.

Until recently, an administrator understood that if he was trading a business and trying to rescue it he had to pay certain trading costs (administration expenses) as a priority but recent court rulings have thrown uncertainty on this principle. The interpretation of what is considered an administration expense has widened considerably, particularly for rent and pensions obligations, to the extent that rescuing a business through a trading administration is too costly.

R3 President, Frances Coulson comments:

“Continued uncertainty has had an unhelpful impact on the UK’s rescue culture, with far reaching, adverse consequences for the UK economy. If Insolvency Practitioners are not sure about how much it is going to cost to trade a business they may have to make the decision to close it, meaning creditors lose out and jobs are out at risk. The Government is aware of the problem but is being slow to act.

“It has huge consequences on the ability to rescue businesses, the lending culture, and returns to unsecured creditors. Paying out an undetermined range of costs as a priority makes deciding to risk trading a business significantly more expensive and, in many cases, impossible.

read more: http://www.creditman.biz/uk/members/news-view.asp?newsviewID=15311

Simon Read: Extra funds totalling £40.5m will help a lot of people. Or will it?

2012-02-23T13:56:00.000-08:00

The Money Advice Service has been handed £40.5m to help people with debt problems. That's great news. It's a lot of money that could go a long way towards helping vulnerable people with their money worries. I'm pleased the Government is waking up to the growing problem of debt.

OK, so it's not extra money or new funding. The Government has simply passed responsibility for "delivering debt advice across the UK" to the Money Advice Service, which is presently part of the Financial Services Authority. The City watchdog has asked for the cash in its fees and levies consultation paper published on Thursday.
But once the Money Advice Services gets the cash, what will it do with it? With an estimated four million people currently in fuel poverty – when a tenth of their income is taken up paying gas and electricity bills – maybe the service could help them.
Its budget works out, neatly, at a tenner for each person in fuel poverty. But, let's face it, that's not really enough cash to make enough difference. Would £100 help with fuel costs? Probably. So maybe the cash could be given to one in 10 struggling people.
But hang on. If someone's in fuel poverty it's very likely they're struggling with all their finances. In which case, £100 may make no real dent in their debt woes. They need more. So maybe the cash could be handed out on a basis of £1,000 per deserving person. That's a grand idea which would help 40,000 folk.

read more: http://www.independent.co.uk/money/spend-save/simon-read-extra-funds-totalling-405m-will-help-a-lot-of-people-or-will-it-6358821.html

Insolvent companies face trading uncertainty

2012-02-19T13:50:00.000-08:00

Confusion over the payment priorities of administrators of collapsed businesses is resulting in job losses and company liquidations, insolvency practitioners have warned.

Almost one in three administrations that companies could have been traded through instead result in an unnecessary "pre-pack" administration or a liquidation because of uncertainty over what qualifies as an "administration expense", according to insolvency trade body R3.

While administrators are typically liable for certain trading costs as a priority, including staff wages, recent court rulings have also included a much broader set of liabilities, including pensions.

R3 said insolvency practitioners are responding to the uncertainty by closing companies "meaning creditors lose out and jobs are at risk".

The body is calling for legislation to clarify administrators' responsibilities.

R3 president Frances Coulson said: "Paying out an undetermined range of costs as a priority makes deciding to risk trading a business significantly more expensive and in many cases impossible.

Read more: http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9091995/Insolvent-companies-face-trading-uncertainty.html

Government drops changes to pre-pack insolvency

2012-02-04T08:37:00.000-08:00

Government proposals to overhaul the pre-pack insolvency sales process have now been dropped, to the dismay of business bodies.

The proposed improvements to legislation had caused controversy as it would leave creditors unpaid following the administration and sale of a business.

In a statement, the Employment Minister Edward Davey said that Government was not convinced of the benefits having “taken into account all of the issues.”

The Forum of Private Business responded to the developments with apprehension, suggesting Government should go even further towards protecting creditors from so called ‘phoenix companies.’

Research from the Forum, under the ‘cost of compliance’ survey, revealed that UK small businesses are owed more than £33 billion in outstanding invoice payments.

Senior Policy Adviser at the Forum, Alex Jackman, said: “Cutting red tape is hugely important but, against the backdrop of the Government’s de-regulatory agenda this is one area where tighter legislation would protect more firms from ‘phoenix’ companies abusing the pre-pack insolvency process by starting again while failing to pay them.

“Late payment, or in this case non-payment, devastates firms’ ability to maintain any kind of healthy cash flow and threatens their very survival.

“The Government is working on some extremely positive projects at present to help firms minimise the problem and offering them more protection in this way would also be of great benefit.”

Mr Davey had argued that pre-pack sales can offer flexibility in business rescues when used properly.

However, the Forum had expressed concerns over the abuse of the process, for example when an existing management team or associates are able to effectively buy back the company without consultation with creditors.

Often such actions are carried out deliberately with the express purpose of avoiding paying debt.
Under the new proposals, insolvency practitioners would need to give three days notice ahead of a pre-pack sale, to allow for challenges.

Read more: http://bdaily.co.uk/news/business/30-01-2012/government-drops-changes-to-pre-pack-insolvency/

Griffin and King hold and attend local event.

2011-11-15T02:54:00.000-08:00

Griffin & King hold & attend local events, at a recent event a business card draw took place

Adam Grant from Black Country Reinvestment Society was the proud winner

of the Griffin & King Hamper.

Experian reports rich getting poorer

2011-09-17T08:14:00.000-07:00

Experian has reported a massive 100% increase in the level of borrowing amongst high
income families in their 30s and 40s over the past three years, with many citing the
rising cost of living as the main cause.

Over a third (33%) of high income families are now reliant on overdrafts of over
GBP1,000 to keep the family finances ticking over between pay-days, compared to just
15% in 2008. This is according to the results of a three-year survey commissioned by
Experian, the global information services company and the largest credit reference
agency in the UK.

The report reveals a high proportion of these families (52%) are regularly borrowing
money against their overdrafts resulting in expensive repayments because of the high
rates of interest charged on overdrafts compared to other credit products.

47% of UK adults have applied for additional credit in the past two years, with some
borrowing from sources which charge relatively high interest rates, potentially
adding to their financial pressures and risking missed repayments and a chequered
credit history.

Despite this, nearly two-thirds of high income families are actually optimistic
about their financial future, with 61% believing their financial situation will
improve in the next 12 months, despite dipping in to their savings and relying on
their overdrafts to make ends meet.

When many are borrowing to make ends meet, Experian highlights that many people are
missing out on the best rates because they're unaware of the benefits of managing
their credit report [http://www.creditexpert.co.uk/credit report.aspx ] with a
service such as Credit Expert.

Brits are getting better at accessing and managing their personal information that
lenders see which is inevitably resulting in them securing better borrowing rates.

Making the right decisions where borrowing is concerned is vital, and getting a good
credit rating [http://www.creditexpert.co.uk/credit-score.aspx ] is one of the ways
you can give yourself the best chance of finding the deals you want.

Peter Turner, Managing Director at Experian Interactive said: "UK families often
rely on their overdraft to get by, but that is not always the best option. Many of
us choose to borrow, but it's where you borrow from that makes all the difference.
The current financial climate is tougher than ever and seeing your credit report
could help families manage their credit better, as well as helping them plan for
their financial futures."

Credit Expert from Experian shows customers what a lender sees in their name. Every
time someone applies for credit or a loan, that request is recorded. Multiple
requests on borrower's credit history can look as if you are over-extending yourself
or a fraud is being committed. For those looking for a good credit deal or mortgage,
Credit Expert [http://www.creditexpert.co.uk ] allows them to check their report
instantly online to ensure that it accurately reflects their position, and then as
often as they want after that. Credit Expert members can also match their credit
report to credit offers they are more likely to be accepted for using Experian's
Lower My Bills service.

http://www.griffinandking.co.uk

Article sourced from: Experian

CAB advice for struggling homeowners ahead of new repossession figures

2011-09-11T14:34:00.000-07:00

National charity Citizens Advice has produced top tips for homeowners struggling to
keep up mortgage payments ahead of tomorrow’s repossession figures. This advice is
based on its experience helping people deal with more than 100,000 mortgage and
secured loan arrears, and stopping 5,000 people becoming homeless over the past 12
months.

Chief Executive, Gillian Guy said:

“With the cost of living going up daily and incomes lagging badly behind, mortgage
lenders and the government must focus on helping people stay in their homes.
Repossession is a terrifying prospect and should always be the last resort”

She reminded anyone struggling to meet their mortgage repayments that they can get
free, independent advice from their local CAB.“You have a greater chance of staying
in your home if you seek advice and take action as soon as you think you’re having
problems,” she added.

Top tips if you start to fall behind on your mortgage:
* Make mortgage payments top priority - you could lose your home if you fall behind
with payments.
* Let your mortgage lender know if you're having problems - don't just stop paying
or miss payments. Your lender should treat you fairly and sympathetically and be
willing to negotiate affordable repayment arrangements with you. If they know you
are doing your best to stop the debt growing they are more likely to allow you more
time to sort the problem out.
* Get free, independent advice as soon as you realise there's a problem. Don’t wait
until you’re threatened with court action by your lender. Contact your nearest
Citizens Advice Bureau (for contact details, and for more detailed information about
dealing with mortgage arrears, go to the CAB website www.adviceguide.org.uk; or try
National Debtline (0808 808 4000 www.nationaldebtline.co.uk or Shelter ( 0808 800 4444

www.shelter.org.uk)

* You may be able to cut down your monthly mortgage costs. For example, your lender
may agree to reduce your monthly interest payments, increase the term of the
mortgage to give you more time to pay, or allow you to make interest-only payments
for a while.
* Check for any mortgage payment protection insurance you may have if you suddenly
lose your job or are unable to work because of illness or injury.
* Get advice on benefits, tax credits and other help you may be entitled to if you
are struggling. A CAB adviser can check if you are missing out on additional income
and help you make a claim.
* Don't ignore court papers and court hearings. If you are notified that your lender
is seeking possession through the courts, it doesn’t mean you’ve already lost your
home. Don’t be intimidated by your lender into believing there’s no point attending
the court hearing. Do go to court, but get advice first if you can. Otherwise look
out for an advice desk at the county court run by a free independent advice service
such as the CAB or Shelter. Getting advice – even at this stage – will give you a
much better chance of saving your home.
* Find out if you qualify for government help. If you are facing repossession, the
government’s mortgage rescue scheme (MRS) may allow you to sell your house but
continue to live in it and pay rent.. Ask your local council for details. If you’ve
lost your job and are claiming benefits, you may be able to get help towards paying
your mortgage interest.

http://www.griffinandking.co.uk/

A significant proportion of the UK's small firms may be relying on the personal finances of their owners in order to continue trading

2011-08-28T15:15:00.000-07:00

That was the finding of a survey conducted by the think-tank, the Centre for
Economic and Business Research (CEBR).

Polling some 750 enterprises employing 20 workers or fewer, the CEBR reported that,
on average, business owners have been directing £20,000 from personal assets into
their firms.

Of those who responded, 27 per cent admitted to requesting loans from family and
friends in order to keep the businesses solvent.

A similar proportion (26 per cent) conceded that they had taken out personal
overdrafts or bank loans, or had turned to their credit cards, to maintain their
business activities.

More alarmingly, 13 per cent had re-mortgaged their homes to provide their
businesses with liquidity.

The survey was carried in partnership with price comparison website, Make It Cheaper.

Make It Cheaper's chief executive, Jonathan Elliot said: "It is extremely concerning
that small business owners have been compelled to take the drastic step of placing
their own financial stability in jeopardy to keep the company afloat.

However, many small businesses feel they have no alternative, as costs rise and
traditional lines of credit remain cut off. It is no surprise that so many are
turning to personal loans and credit cards to survive."

Source - Gibson Hewitt

Half the nation concerned about their debts

2011-08-23T14:17:00.000-07:00

Nearly half of individuals (47%) are concerned about their debts, according to the latest wave of R3’s, the insolvency trade body, Personal Debt Snapshot. The quarterly tracker of the nation’s finances reveals a 7% rise in debt concern, compared to this time last year.

Of those who are concerned about their debts, credit card debt continues to dominate fears for 53% of individuals; an increase of 5% on last quarter. Concern about certain types of debt has increased this quarter: Payday or other short term loans (up 2%), hire purchase (up 3%) and store cards (up 1%); while worry about secured lending has reduced such as mortgage repayments (down 4%) and bank loans (down 2%).

Frances Coulson, R3 President comments:

“Households that are already struggling may find traditional lenders unwilling to provide further credit and are therefore drawn to short-term credit solutions. Individuals turning to short-term loans and credit cards should be wary of the high interest rates that often accompany these products. Overall debt can quickly snowball out of control.

“Concern about secured lending is also likely to have fallen due to the Bank of England continuing to keep interest rates at an historic low. Households have begun to feel comfortable that their mortgage repayments will remain as they are for the foreseeable future.”

Over a quarter (27%) of people are saving less then they usually do, equating to 13 million individuals, this compares to 24% in July last year and 32% in April 2011. While one in five (21%) consumers are putting off big financial decisions, compared to 14% a year ago and 28% last quarter.

Frances Coulson continues:

“Early 2011 was a tough period as individuals struggled to keep control of their finances and felt uncertain about the future. It is encouraging to see people have started to bolster their savings and pay off their debts. But we must remember that financial distress is still higher than it was a year ago. Delays in taking big financial decisions are up considerably on last year, indicating that the public is still hesitant about what the coming months have in store.”

Allied to this is fear of redundancy: the overall fear of redundancy is twice as high as this time last year. Twice the amount of people in the public sector fear redundancy compared to private sector workers, with one in five public sector workers raising their concerns, compared to 9% of private sector workers.

Frances Coulson said:

“Employees in the public sector are clearly wary that more job losses are yet to be announced and the full force of public sector cuts is still to be felt. We know that unplanned changes of circumstance, such as job loss, are key triggers of insolvency.

“With around six million people employed in the public sector in the UK, significant redundancies could result in increased insolvency levels. More people have started saving and paying off their debts, so these reserves should serve them well if they do face a period of unemployment. Those struggling with debt should seek financial advice rather than dealing with the distress on their own.”

Appointment of Administrators - 15 August 2011

2011-08-21T01:25:00.000-07:00

Aug 15 2011
DOORS & HARDWARE LIMITED;
EUROMARK CODING AND MARKING LIMITED;
FRESH 123 LIMITED t/a Pin Point Personnel;
JOHN NUNN & COMPANY LIMITED;
LINACRE HOSPITALITY & LEISURE LIMITED t/a Pacific Lounge Bar & Restaurant;
NORTHWEST TRADE LIMITED;
SORRISO CAFE AND COFFEE HOUSE LIMITED formerly Sorrisocafeandcoffeehouse Limited;

Winding Up Petitions 15th August

2011-08-20T12:56:00.000-07:00

Aug 15 2011
The following winding up petitions were advertised today the 15 August 2011.

ALL THINGS CHOCOLATE LIMITED
COG7 TRAINING AND CONFERENCE CENTRE
DAIRIES SPORTS & SOCIAL CLUB LIMITED (THE)
DAVID EDWARDS PHOTOGRAPHY LIMITED
DEREK JONES BODYWORK (2005) LIMITED
DORMER PLANT HIRE LIMITED
DREADED BLUE SCREEN LIMITED
HALOGEN SOLUTIONS LTD
HOTELCONNECT LIMITED
MIDDLE EAST TRAVEL & TOURS LIMITED
MTN FOODS & DISTRIBUTION (MIDLAND) LTD
OAKLEIGH ENGINEERING LIMITED
THE PRINT WRAP COMPANY LIMITED
RAPEZA LIMITED
RED DIRECT LIMITED
SVENDSEN SPORTS (UK) LIMITED

Green shoots of recovery for first time buyers in the mortgage market

2011-07-26T08:26:00.000-07:00

First time buyers and borrowers with smaller deposits are enjoying the first signs of recovery in the UK mortgage market, with the number of products available for those with a 10 per cent deposit rising to the highest levels since November 2008, according to analysis by moneysupermarket.com [http://www.moneysupermarket.com/mortgages ].

There are now 312 mortgage products at 90 per cent loan to value (LTV), an increase of 17 per cent since June. The last time there were was over 300 products available was in November 2008, when Bank of England base rate was at 4.5 per cent and the impact of credit crunch began to have a major impact on mortgage lending.

As well as an increase in the number of mortgage products available, the average rate on 90 per cent mortgages has also begun to fall. The average rate on fixed rate mortgages has dropped 0.53 per cent in the past year to 5.87 per cent this month - and has dropped 0.17 per cent since last month.
Although tracker mortgages at 90 per cent LTV are now more expensive than this time last year, the average rate is now 5.5 per cent, a drop of 0.22 per cent since June.

Clare Francis, mortgage spokesperson at moneysupermarket.com [http://www.moneysupermarket.com/mortgages ], said: "There is a severe shortage of first time buyers at the moment and one of the reasons for this is down to the fact that it's been so difficult to get a mortgage unless you've had a deposit of 25 per cent or more. It's therefore encouraging to see an increase in the number of 90 and 95 per cent mortgages available.

"That said, we are still a long way off the number of products that were available pre-credit crunch and those with smaller deposits are still having to pay a higher rate of interest than those who are able to put down 25 or 30 per cent. It's good to see things are moving in the right direction though as this should make it slightly easier for people to take that first step onto the property ladder."

Winding Up Petitions - 17 June 2011

2011-07-04T04:04:00.001-07:00

Jun 17 2011
A2B RECRUIT LIMITED
AMORIA LIMITED
ASSETCO PLC
CARDS AND GIFTS LIMITED
CORNISH FARM SERVICES LIMITED
CRYSTAL RECRUITMENT LIMITED
DOBLE MONK BUTLER (DMB) LIMITED
DTM RECRUITMENT LIMITED
DUNLOP AND BADENOCH LIMITED
EDUCATION RECRUITMENT ONLINE LIMITED
EMAN8 LIMITED
FOREVER RECRUITMENT LIMITED
HONG KONG (LYME REGIS) LTD
J & B GILL FOOD LIMITED
JGC PROJECT SERVICES LIMITED
KENTON OPERATIONS LIMITED
M.E. HAMILTON LIMITED
MAGAZINES PLUS LIMITED
MEDI RECRUITMENT LIMITED
NETBUSTERS MEGASTORES LIMITED
RECRUITMENT ONLINE LIMITED
SPEEDFAST TOOL HIRE LIMITED
ST VINCENT GROUP LIMITED
SWANWICK TYRES LIMITED
VINCI TRADING LTD

Despite a moderate decline in 2011-2012, number of corporate insolvencies to remain above pre-crisis levels

2011-06-27T02:03:00.001-07:00

Euler Hermes’ Global Insolvencies Index, which tracks worldwide trends in corporate failures, dropped by a significant 5% in 2010 after having soared by 64% between 2007 and 2009. “The present trend reflects the improved financial situations of many businesses following substantial adjustments made by the businesses themselves to cope with the crisis,” says Wilfried Verstraete, Chairman of Euler Hermes’ Group Management Board. “It also reflects some public support measures that are still in place, such as car scrapping schemes and tax relief, but above all it reflects the general upturn in the world economy.” After contracting by 2% in 2009, world GDP rebounded by more than 4% in 2010, driven by two main factors: restocking and a recovery in international trade, which grew by 15% in volume terms in 2010 after having fallen by 13% in 2009.

Against this background, corporate insolvencies declined in more than half of the countries in Euler Hermes’ sample. The two regions that have been driving the global economic recovery – Asia-Pacific and America – recorded the sharpest improvement, with corporate insolvencies down by respectively 12% and 8%, after two years of strong increases.

For Europe, 2010 was on the whole less positive. Business failures continued to rise in Southern Europe (Greece, Italy and Portugal). Spain was the exception with a 5% fall in corporate insolvencies, but this followed a five-fold increase over the previous three years. There were improvements in Eastern Europe (Hungary, Poland, Czech Republic, Russia and Slovakia) and in some other countries such as Belgium, Denmark, Ireland, Luxembourg and Switzerland. The improvement was slight, a 2% decrease, in France and Germany. Although the improvement was more marked in Finland, Norway, the Netherlands and the United Kingdom, it did not offset the very strong rise in insolvencies over the preceding years.

Corporate insolvencies expected to remain at high levels in 2011-2012

According to Karine Berger, Head of Market Management and Strategic Marketing, and Chief Economist at Euler Hermes, “the ongoing recovery in the world economy is likely to keep corporate insolvencies on a downward trend in all regions out to 2012.” However, this improvement could be curtailed by several factors, particularly in industrialised countries where many companies have recovered only part of their former leeway:

– Slower pace of world economic growth – expected to drop to around 3% in 2011 and 2012 – and, more particularly, the sluggish momentum of the European countries as a whole;

– Rising production costs (raw materials, payroll costs, etc.); and

– Monetary tightening, with a significant loss of competitiveness linked to exchange rates for some countries.

Given the above, the fall in the global insolvencies index is likely to be moderate in 2011 (-7%) and 2012 (-5%), with exceptions linked to specific economic conditions (Greece and Portugal) or exceptional events (Japan). “Overall, the fall in the global index from 2010-2012 will not be large enough to offset the record increases of 2008 and 2009. In other words, corporate insolvency levels in 2012 will still be higher than in 2007 in many countries,” says Wilfried Verstraete.

Business Debt under the weather

2011-06-20T01:35:00.001-07:00

Statistics on debt judgments in England & Wales released today (May 24) by Registry Trust Ltd show that the total value of county court judgments (CCJs) issued against businesses rose 14.4 percent (£19.6m) from £136.2m to £155.8m in the first quarter of 2011.

Registry Trust is the non-profit organisation which operates the Register of Judgments, Orders and Fines for England and Wales on behalf of the Ministry of Justice in the public interest.

Year on year the value of CCJs against businesses has fallen by 11.2 percent or £19.6m from £175.4m to £155.8m

Judgment numbers reflect a similar pattern in that they rose 8.9 percent over the last quarter but fell 7.2 percent year-on-year. Businesses in England and Wales faced 37,794 CCJs in Q1 2011, compared with 34,713 in the previous quarter and 40,711 during the same period of 2010.

This quarter a record 23,832 searches were requested. Anyone can search the registers online at www.trustonline.org.uk.

Announcing the statistics Malcolm Hurlston, Registry Trust chairman, said:

“The weather was blamed for the sluggish performance of the economy in the last quarter of 2010 and could be one of the reasons for an increase of judgments against businesses in the first quarter of 2011.

P35 (PAYE) Deadline 19 May: Comment from Frances Coulson, President of insolvency trade body R3

2011-06-16T05:30:00.001-07:00

“Typically many businesses will be caught out by the P35 deadline on 19 May, having been ‘getting by’ and not submitting the full amount of PAYE they owe each month. This deadline is traditionally a time when HMRC uncovers any shortcomings in the payments due and the payments made in terms of PAYE, as well as those businesses which do not file at all.

“I suspect this will lead to an increase in actions by HMRC in a couple of months time, as well as pushing up corporate insolvency numbers towards the end of the year.

“One in four (24%) businesses are concerned about their debts, according to the R3’s latest Business Distress Index. Of this group, 37% are worried about Crown debts and this deadline will be a test for them. Seeking professional advice as soon as possible is the best way to allay those fears.”

Frances Coulson, R3 President

Methodology note on R3’s Business Distress Index: BDRC Continental conducted 501 telephone interviews with small, medium and large business owners and Financial Directors between 7th and 18th March 2011. Quotas are set by size, region and sector and the data weighted to the profile of GB businesses. The respondent in each case is a senior financial decision maker. Small businesses are those with a turnover of £50,000 to £1million pa.

R3 is the trade body for Insolvency Professionals, representing 97% of the UK’s Insolvency Practitioners.

Consumer court debt down £90m

2011-06-13T05:22:00.001-07:00

The quarterly value of debt judgments against consumers in England and Wales has fallen £90m (16.7 percent) year on year according to statistics released today (May 24) by Registry Trust Ltd.

The figures show a drop from £538.8m in Q1 2010 to £448.8m in Q1 2011.

Registry Trust is the non-profit organisation which operates the Register of Judgments, Orders and Fines for England and Wales on behalf of the Ministry of Justice in the public interest. Judgment information is a key indicator in credit decisions.

The total is 5.4 percent lower than the previous quarter, having fallen £25.8m from £474.6m to £448.8m.

The £448.8m figure is the sum of 143,946 judgments – 5.9 percent fewer than the 152,915 recorded in Q1 2010 and 1.6 percent fewer than last quarter’s aggregate of 146,258.

This quarter a record 23,832 searches were requested. Anyone can search the registers online at www.trustonline.org.uk.

Announcing the statistics, Malcolm Hurlston, chairman of Registry Trust said: “When numbers of judgments fall the information provided by each one becomes more precious.

“In certain cases this judgment will be the only indicator of creditworthiness available to a lender.

“It is pleasing therefore to see the public’s interest in the register rising. Trustonline is the only place where you can access your own and other peoples’ judgment histories which can help you make more informed lending decisions.”

Winding Up Petitions - 23 May 2011

2011-06-08T03:08:00.001-07:00

May 23 2011
The following winding up petitions were advertised today the 23 May 2011.

ACTIVE POWER LIMITED
ALFRETON CAR & COMMERCIAL LIMITED
CONLEC C.E.C. LIMITED
CONSTABLE HOUSE (ASHTON-UNDER-LYNE) LIMITED
CREST BUILDING DEVELOPMENTS LIMITED
CWMBRAN HARDWOOD CENTRE LIMITED
EML BUILDING SERVICES LTD
FALLAPIT HOUSE LIMITED
FLORITE FITTINGS & FABRICATION LTD
G & A ELLIS HEATING LIMITED
GABBITAS LIMITED
GREENFIELD CONSTRUCTION (GB) LIMITED
JACKSONS (PROPERTY AGENTS) LIMITED
MAINTENANCE PROJECTS LTD
MASTERBUILD CONTRACTORS LIMITED
MERROWS LTD
MICHAEL ATKINSON PLUMBING & HEATING LIMITED
MONSON ARMS LIMITED
RADLEYS BUILDING CONTRACTORS LIMITED
ROBINSON & ROBINSON LIMITED
SERVICES EUROPEAN LIMITED
SIRIUS ELECTRICAL LIMITED
TARGETPOINT INSTALLATIONS LIMITED
TEAM GREEN MAINTENANCE AND FACILITIES LTD
TPD LTD

For more information email jarnold@creditman.co.uk

CAB - Good News for Credit Card Users

2011-06-08T01:54:00.000-07:00

Citizens Advice and The UK Cards Association produce consumer guidance on recent changes

National charity Citizens Advice has joined forces with the UK Cards Association to ensure that consumers are savvy about recent changes to credit card accounts. The changes will give credit card holders greater flexibility and control over their accounts.

The changes came into effect in January, and April of this year. To coincide with this Citizens Advice and UK Cards have produced a leaflet outlining what the six main changes are and what they will mean for consumers. The leaflets will be available from Citizens Advice Bureaux across England and Wales and to download, along with an ‘advicepod’, from the charity’s advice giving website www.adviceguide.org.uk/index/credit_card_changes.

The six changes will mean:

1. The most expensive debt will always be paid off first

Before, most credit card companies used your repayments to pay off your cheapest debt first. This meant you paid interest on the more expensive debt, such as cash withdrawals, over a longer period of time.

2. On new accounts, making the minimum payment will still reduce the outstanding balance.

For new accounts opened from 1 April 2011, credit card companies must set the minimum payment at a rate that reduces your actual balance by 1% each month. Before, if you made the minimum payment, this would generally only cover fees and interest charges and wouldn’t reduce your outstanding balance.

3. Credit card cheques will only be sent on request

Before, credit card companies could send you cheques that you could use to transfer balances from other credit cards, withdraw money against your account, or pay for goods and services. Now you will only be sent these cheques if you ask for them.

4. More choice and control over credit limit increases

Before, your credit card company could increase your credit limit without asking you. Now, they have to contact you if they want to increase your credit limit. You will have 30 days to decide whether to decline the increase. This gives people more control over their spending.

5. Clearer communications about interest rate increases

Before, if credit card companies increased your interest rate and you chose not to accept it, your account would be closed and the outstanding balance repaid at the existing rate over a reasonable period of time. Now, once your credit card company has contacted you, you will have 60 days to decide whether to reject the new rate. This means you will have more time to explore alternative deals.

6. More flexibility about how much you pay towards your bill.

Before, if you wanted to set up a regular payment you would normally have had to pay either the outstanding balance, or the minimum payment each month. Now you can choose to repay any amount you want between the minimum and the full balance.

Gillian Guy, Chief Executive at Citizens Advice said:

“For some time now Citizens Advice has been campaigning for changes to the way some credit card companies operate, which can make it difficult for people to manage their credit card accounts effectively.

“Last year we dealt with over 420,000 enquiries from people worried about credit card, store and charge card debts. The majority of those people come to us concerned about how to deal with their repayments. These new changes will give credit card users more flexibility and control over their accounts.. We are pleased to be working together with UK Cards to ensure as many people are aware of these enhanced rights as possible.”

Melanie Johnson, Chair of The UK Cards Association said:

“Over the last six years the credit card industry has made a number of significant changes to improve transparency and give cardholders more control over their finances, putting them back in the driving seat.

“These latest improvements deliver further benefits, and we hope that this new consumer leaflet, produced in partnership with Citizens Advice, will help ensure that the nation's 30 million credit card holders are aware of how they can benefit from these important changes”

Winding Up Petitions

2011-06-01T03:25:00.000-07:00

Winding Up Petitions

The following winding up petitions have been advertised today.

1ST MORTGAGE SOLUTIONS UK LIMITED
4TWINS LEISURE LIMITED
875 DESIGN LTD
A & R HEALTHCARE LIMITED
A W M PLUMBING LIMITED
A. G. NEADS LIMITED
A.S. TRAVEL LIMITED
ACKI LIMITED
ALBION ESTATES UK LIMITED
ANLABY HOUSE ESTATES LIMITED
AQUASTAT LIMITED
ASPECTS INTERNET ACCESS LIMITED
AVALON PERSONNEL LIMITED
AVTECH AVIATION AND ENGINEERING PLC
AWAX SECURITY (SOUTHERN) LIMITED
BALMORAL ACCOUNTANCY SERVICES LIMITED
BARBROOK LTD
BETA RETAIL LTD
BLAEN CEFN SERVICES LIMITED
BOSTALLS LIMITED
BROADBASE UK LIMITED
BYRON HOTELS LIMITED
BYTRON INFORMATION SERVICES LIMITED
C & C (CRASH REPAIRS) LIMITED
C.N. CONSTRUCTION LTD
CHALDEAN CONSULTANTS LIMITED
CLF SOLUTIONS LIMITED
COMPLETE COOLING SOLUTIONS LIMITED
CORONETCROWN LIMITED
COURT CLUB LEISURE LIMITED
CREATA SOLUTION LIMITED
D.M.C. (ELECTRICAL & INSTRUMENTATION ENGINEERS) LIMITED
DAVID SMITH PRODUCTS AND SYSTEMS LIMITED
DEVERE CONSULTANTS LTD
DRIVER & WAREHOUSE RECRUITMENT LIMITED
DRIVEWAYS.UK.COM LTD
DROP AND GO LIMITED
DRUMMOND SELECTION LIMITED
E FOX LIMITED
E.W. SERVICES LIMITED
EAGLE TOWER INVESTMENTS LIMITED
EASTZEST LIMITED
ELIXIR HOMES LIMITED
ELLE CONSTRUCTON LIMITED
EP EXHIBITIONS LIMITED
EXACTA MARKETING COMMUNICATIONS LIMITED
EYE 2 EYE CONTACTZ LIMITED
FBT MEDIA LTD
FIFETECH LIMITED
FORTRESS SERVICE GROUP PLC
FURNITURE LIVE LIMITED
G10 UK LTD
GAMMA TRANSFERS (UK) LTD
G-CLASS CENTRE LIMITED
GENERAL OBJECTS LIMITED
GLENN JARVIS LIMITED
GLOBAL 3D LIMITED
GOLDCREST SUPPLIES LIMITED
GRAM CONSTRUCTION LIMITED
GREGG NOWAK LIMITED
GRIFFIN MANAGEMENT SERVICES LTD
HAMPTONS (BOURNEMOUTH) LTD
HARRY JAMES BATHROOM DESIGN LIMITED
THE HERCULES PUB COMPANY LIMITED
HOLTS CONSERVATORIES LIMITED
HOMELET (BAYSWATER) LTD
HOVIK JOINERY LIMITED
IMONIT TRADING LIMITED
JL PIPEWORK LIMITED
JUST B & CO LIMITED
JUST DOORS AND WINDOWS LIMITED
JUST HIRE (CATERING EQUIPMENT) LIMITED
K. TRAYNOR LIMITED
KEMP CARPENTRY CONTRACTORS (LINCS) LTD
KEMPRILE LIMITED
KINK LIMITED
KULA UK LIMITED
LESSCENT HOMES LIMITED
LYNCH FARM EQUESTRIAN CLUB LIMITED
MAYPOLE HOUSE SCHOOL
MCHALE & CO SOLICITORS LIMITED
MERCIA PROJECTS LTD
MICHAEL BROOKES & CO LTD
MIDSHIRES NUMBER FOUR LIMITED
MILLA KITCHENS LIMITED
THE MOBILE FONE CENTRE LTD
MONSOON INDIAN CUISINE (DORSET) LIMITED
MURRAYS OF BLENCARN LIMITED
MY VILLAGE LIMITED
NABBOND CONSULTANTS LIMITED
NEWMECH ENGINEERING LIMITED
NORTH-WEST PROPERTIES PORTFOLIO LIMITED
NOTEGEM LIMITED
O.C.L. LIMITED
OCCASUS FANUM CONSULTING LIMITED
OPTIMUM TECHNOLOGY SURGICAL LIMITED
PADDY PUBS LIMITED
PARALAW LIMITED
PENTHOUSE RESTAURANT LIMITED
PINK PIGEON TRADING CO. LIMITED
PIPEWORKERS LIMITED
PLAY HOUSE DAY NURSERY (N.E.) LTD
POLCONSTRUCT UK LTD
POOLE PR LIMITED
POYSER DEVELOPMENTS LIMITED
THE PRIORY HOTEL & BISTRO LIMITED
PROPERTY RESCUERS LTD
QUICKENDENE LIMITED
RAILWAY PRINCIPLE SOLUTIONS LIMITED
RAVENSTONE LIMITED
SAINT JOHN SECURITY INSTALLATIONS LIMITED
SEVIC ENGINEERING LIMITED
SILVERBOURNE FURNITURE LIMITED
SPEAR CONSTRUCTION LIMITED
ST. GEORGES KEEP LIMITED
SURMA (SWANSEA) LIMITED
SWAN & HARLEQUIN LIMITED
SWINGLEHURST LIMITED
SWL DISPUTE RESOLUTION LIMITED
TRADEMANOR LIMITED
TURNSTILE MUSIC LLP
U.K. PIZZA COMPANY LIMITED
UK REINFORCEMENT LIMITED
VIBE ONE LIMITED
VMG SALESWORKS LTD
WALTON LODGE VETERINARY CLINICS LIMITED
WELLING UNITED FOOTBALL CLUB LIMITED
WILLIAMS WALSH LIMITED
WILLS & CO. REGISTRARS LIMITED
WOODLANDS (WORCESTERSHIRE) LIMITED
WOODLEIGH SCHOOL LANGTON LIMITED
WORLDMAN RETAIL LIMITED
ZIPCOM LTD

Winding Up Petitions - 6 May 2011

2011-05-23T01:42:00.001-07:00

May 6 2011
The following winding up petitions have been advertised today.

AWL CONTRACTORS LTD
BRADLEY-TURNER & CO LIMITED
CAPEASH UK LTD
CLIFFORD ESTATES LIMITED
COMPLIANCE ELECTRICAL CONTRACTS LIMITED
EASTCOTTS ESTATES LIMITED
EPCOT SYSTEMS LIMITED
LAND WATER SERVICES LTD
RACE TEC MOTORSPORTS LIMITED
TIME LINE (LEICESTER) LTD
TOPLINE HAULAGE LTD
TRANSDERMAL COSMETICS PLC
TURKISH RADIO (UK) LIMITED
WANSTEAD CARPENTRY CONTRACTORS LIMITED

For more information please email jarnold@creditman.co.uk

Company administrations rise again as recessionary forces finally bite

2011-05-16T01:57:00.001-07:00

The number of troubled companies falling into insolvency in England and Wales rose for the second successive quarter, with administrations up 22% to 782 in Q1 2011 (Q4 2010: 642), according to statistics released today by the Government's Insolvency Service.

"The rise in corporate insolvencies results from a combination of factors that are dragging economic growth to a snail’s pace. Rising global commodity prices are putting pressure on businesses at the same time that demand is falling,” commented Malcolm Shierson, Partner at Grant Thornton's Recovery and Reorganisation practice.

“Of particular note is the volume of distressed retailers we are dealing with. This is unsurprising given the rise in input prices and increase in VAT which comes at the same time as the Government and households implement austerity measures to reduce their debts,” Shierson pointed out.

“Whilst CVAs have recently been the insolvency process of choice in the retail sector, creditors are increasingly questioning whether a CVA will improve their ultimate return.”

Meanwhile, the number of companies entering liquidation saw an increase of 3.7% to 4,121 in Q1 2011 (Q4 2010: 3,973). The latest figures reflect a 2% increase on the same quarter a year earlier (Q1 2010: 4,036).

"The number of administrations is a more accurate barometer of the health of the UK economy than liquidations. Typically large employers are first placed into administration when declared insolvent. Additionally, most companies entering administration are liquidated at a later date, creating both a lag and double counting effect that distorts the liquidation statistics," concluded Shierson.

Chief Economist's Weekly Brief

2011-05-05T06:07:00.000-07:00

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3 May 2011

The UK dodged a double dip recession in the first quarter. But the pace of growth
was nothing to write home about and will have done little to harden interest rate
sentiment one way or the other at the Bank of England. Eurozone growth kept its
momentum, thanks to France and Germany, but things are sagging in the States
where the pace of growth slowed sharply in Q1. Meanwhile, the economic
effects of the earthquakes are beginning to show in Japan.

The first estimate of UK GDP shows the economy grew by 0.5% in Q1.
The Chancellor will be sleeping better in the knowledge that the economy grew in Q1,
but no-one is over the moon at the pace of recovery. The 0.5%q/q growth in Q1
cancelled out the contraction in Q4 meaning that the economy has stood still since Q3 2010.
A 0.9%q/q increase in services led the rebound in Q1, especially welcome after the
0.6% q/q decline in Q4. Construction output disappointed, falling 4.7%q/q. While manufacturing
grew by 1.1%q/q, goods output growth halved to 0.4%q/q in Q1 11 compared with Q4 10.

UK retail sales growth was subdued. In many ways, the behaviour of retail sales data
is a mirror image of the GDP data: a strong end to 2010, followed by a weak start to
2011. Sales went sideways in February and March, and show a modest decline if we strip
out auto fuel. Food stores fared better than non-food stores, particularly those selling
household goods, but non-store sales left both trailing in its wake, growing 14%
y/y in March. Indeed, the internet now accounts for £1 in every £10 of total retail sales.
But when it comes to recent trends in retail sales, bigger isn't better. Small businesses
notched up growth of 6.9% y/y in March, compared to 4.6% y/y for large businesses
(those with 100 or more employees).

Eurozone economic performance is maintaining its momentum. Services and
manufacturing growth accelerated in April despite surging energy costs, tough austerity
measures, and a strong currency. The composite PMI index rose to 57.8,
supported by manufacturing. Services output growth dipped slightly but remains high.
Employment rose at the fastest pace since November 2007, as firms increased capacity
to meet rising workloads. Inflation is still the party pooper, up to 2.8%y/y in April from
2.6%y/y in March. Output prices rose for the ninth month in a row and input prices
were a touch below March’s 32-month high. But guess what?Take France and Germany
away and the Eurozone story is one of just moderate growth.

US growth slowed at the start of 2011. US economic growth slowed sharply to an
annualised rate of 1.8% in Q1, down from 3.1% in Q4 2010. Private consumption slowed
from 4.0% to 2.7% in Q1, partly because of the weather but rising commodity prices played
a role too. A sharp fall in government spending (both federal and state) subtracted 1.1%
from overall growth. US house prices are also still falling The Case Shiller 20 city index fell
3.3%y/y in February, the biggest annual fall since November 2009. The fall of 1.8%m/m in
February was the smallest since last July, but that is cold comfort in the current market.
Overall, a quarter to forget for the US economy and one that policy makers will hope is a blip.

The Fed held the main policy rate at 0.25% in April and confirmed it will continue with
the QE2 programme. Neither is surprising. More interesting was the tone of the Fed
Chairman’s first post-FOMC press conference. Bernanke stated that inflation expectations
are well anchored in spite of commodity price rises. This gives the Fed the space to
maintain ultra loose monetary policy to support the economic recovery and job creation.
We do not expect rates to rise until Q1 next year.

Economic impacts of Japanese earthquake materialising Japan’s trade surplus fell
for the first time in 16 months in March following the earthquake. Vehicle exports fell by
almost a third, dragging overall exports down 2.2% m/m. The disaster also hit consumer
sentiment: retail sales fell by 8.5%y/y in March, the steepest drop in 13 years. The Bank
of Japan (BoJ) intervened by ramping up its monetary stimulus immediately after the
earthquake. At its meeting last week, it left rates on hold at 0.1% but rejected a further
expansion of the asset purchase programme. On the fiscal side, Prime Minister Naoto Kan
unveiled a JPY 4tn spending package to support reconstruction – but warned that it
could mean higher taxes.

Appointment of Administrators - 28 April 2011

2011-05-05T05:53:00.001-07:00

ALDERNEY PARTNERS LIMITED
THE BRITISH PRINTING COMPANY LIMITED
GO INDEPENDENT LIMITED
H2O NETWORKS LIMITED
LOSELEY DAIRY ICE CREAM LIMITED
MILMAR LEISURE LIMITED
POLESTAR MAGAZINES & CATALOGUES LIMITED
formerly Brookdart Limited, BPCC Magazines Ltd, BPCC Business Magazines Limited, Polestar Web Offset Limited, Polestar Magazines Limited, BPCC Consumer Magazines Ltd, BPC Magazines Ltd, BPC Publications Ltd
POLESTAR PROPERTIES LIMITED
R ELLIS CONTRACTORS LTD
SILVERBIRD TRAVEL LIMITED t/a Lanyard Travel
ST. OMER RECRUITMENT LIMITED
VON ESSEN HOTELS 1 LIMITED
VON ESSEN HOTELS LIMITED