/raid1/www/Hosts/bankrupt/TCREUR_Public/040301.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Monday, March 1, 2004, Vol. 5, No. 42
Headlines
F R A N C E
SCOR GROUP: Premium Income to Slip 29% Despite High Renewal Rate
G E R M A N Y
PROSIEBENSAT.1 MEDIA: Outlook Changed to Positive
I T A L Y
PARMALAT USA: Unsecured Debtors' Organizational Meeting March 8
P O L A N D
GDYNIA SHIPYARD: Revises Details of Restructuring Program
NETIA SA: J.P. Morgan Subsidiaries Increase Shareholding
R U S S I A
AGRICULTURALPROM: Declared Insolvent
BERDSK: Court Opens Bankruptcy Proceedings
ELECTROTECHNICAL FACTORY: Court Appoints Insolvency Manager
KERBER: Under Bankruptcy Supervision Procedure
KISILYOVSK BREWERY: Insolvency Manager to Auction Assets Mar. 22
LEVIKHINSKY: Unprofitable Copper Mine to be Liquidated Soon
METROMEDIA INTERNATIONAL: Cuts Nine-month Loss to US$7.5 Million
PALLASOVKA: Court Names Insolvency Manager
PERVOMAYSKSELHOZCHIMIYA: Under Bankruptcy Supervision Procedure
SAVMA: Creditors Have Until April 20 to File Proofs of Claim
SIBGAZTRANS: Under Bankruptcy Supervision Procedure
S W I T Z E R L A N D
ADECCO SA: Audit Fails to Spot Misappropriation, Irregularities
U N I T E D K I N G D O M
ABBEY NATIONAL: Reports GBP686 Million Pre-tax Loss
ABBEY NATIONAL: Investment Grade Ratings Affirmed
ABBEY NATIONAL: Ratings Lowered Due to Restructuring Burden
ABERDEEN ASSET: Contests Financial Ombudsman Service Ruling
ALFRED BULL: Calls in Administrator from Grant Thornton
BAE SYSTEMS: Expects Improvements in Defense Biz this Year
BAE SYSTEMS: Fears Delay of Aircraft Delivery
BNR EUROPE: Appoints PricewaterhouseCoopers Liquidator
BRITISH ENERGY: Reports GBP12 Mln Quarterly Operating Profit
CANARY WHARF: BP Division Leases Canada Square Property
CANARY WHARF: Brascan Confirms Asset Sale Plan
CANARY WHARF: CWG Denies Lowering Bid Threshold
CHARTER PLC: Sells Interest in GCE Gas Control Equipment
DANTHERM HMS: Appoints Liquidator from Numerica
EUROTUNNEL PLC: Directors Campaign for Galaxi Project Support
FYLDE MECHANICAL: Appoints KPMG Administrator
FORTNUM & MASON: Records 5th Profit Slide in Eight Years
HOLLINGER INTERNATIONAL: Wins Court Case Against Lord Black
INTEGRATED NETWORKS: Calls in Liquidators
INVENSYS PLC: To Accelerate U.S. Pension Plan Contribution
INVESTEC EXTRA: Concluding Assembly Set March 30
MARCONI CORPORATION: Receives EUR5.7 Mln from GDA Disposal
MICOM COMMUNICATIONS: Appoints Liquidator
MYTRAVEL GROUP: To Appoint Michael Beckett Chairman
NETWORK RAIL: SRA Essential Supporter of MTN Program, Says S&P
NETWORK RAIL: SRA's Support Merits 'AAA' for MTN Program
NORTEL NETWORKS: Names Walsh and Setchim Liquidators
PARMALAT FOOD: Names PricewaterhouseCoopers Administrator
ROYAL MAIL: Autumn Strikes Likely Affected 3rd Qtr Reliability
TRINITY MIRROR: Restructuring Props Profit by 11.5%
*********
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F R A N C E
===========
SCOR GROUP: Premium Income to Slip 29% Despite High Renewal Rate
----------------------------------------------------------------
SCOR Group disclosed recently these highlights of its 2004
renewals campaign:
(a) Renewals undertaken in a very difficult context with the
capital increase of SCOR and the developments on the Group's
rating.
(b) Renewals which confirm that most of the ceding companies and
clients with which SCOR has developed longstanding relationships
have remained with the Group.
(c) Renewals marked by risk selection and technical
profitability, which have benefited from a rate environment,
which remains satisfactory.
(d) Renewals which pursue the reorientation of the business
portfolio by geographic zone, particularly by a deliberate
reduction of underwriting in the United States, and by risk
category, with an emphasis on short-tail risks.
(e) Overall, at constant exchange rates, the renewals as of the
1st of January translate into a reduction in Expected Gross
Premium Income of 29%, as compared with the premiums written
during 2003 in Non-Life reinsurance (property & casualty, large
corporate accounts and credit & surety) and a reduction of 11%
in the expected premiums in Life reinsurance when compared to
the premiums in 2003.
The Board of Directors of SCOR, meeting on February 25, 2004,
was informed of the results of the 2004 renewals campaign.
Renewals undertaken in a very difficult context
2004 underwriting in Non-Life as well as in Life were undertaken
in a very difficult context marked by:
(a) The Group's ratings development: certain markets (United
Kingdom, United States, Canada and some Northern European
markets) as well as certain industrial clients proved
particularly sensitive to the ratings development of the
Group.
(b) Waiting for the completion of the capital increase: launched
at the beginning of December 2003, the success was only
announced on January 6, 2004.
(c) The stance taken by the large brokers: suspension of SCOR
from the major brokers' security lists in the period between
publication of the third quarter 2003 results and the
Shareholders' Meeting that approved the capital increase.
Moreover, the whole reinsurance sector was marked by the non-
renewal by certain important clients of their proportional
treaties, the reduction in their demand for reinsurance, the
continuation of the raising of deductible levels and the resort
to captives.
In this context, the SCOR Group anticipates a reduction in its
premium income, but shows the quality of the relationships,
which it maintains with its clients. It must be stressed that,
on most of the markets, the renewals were undertaken by SCOR
with clients for risks similar to those underwritten during the
last two years, particularly in property, with a reduction in
the exposure to long-tail risk, and under rate conditions close
to those of last year.
Numerous clients have made known to the SCOR Group their
intention to increase treaty shares or to assign facultative
business as soon as the Group's rating is improved.
(b) Non-Life reinsurance renewals (property & casualty, large
corporate accounts, and credit & surety) show that SCOR's
clients have stayed with the Group
The renewals at January 1, 2004 concerned 79% of the 2003
property & casualty portfolio (of which 94% of the treaties in
Europe), 36% of large corporate accounts business, and almost
the entire credit & surety portfolio, representing altogether
72% of SCOR's Non-Life portfolio.
Expected gross premium income for the overall Non-Life business
in 2004 is expected to contract by 29% as compared to the Non-
Life premiums written in 2003 at constant exchange rates.
In Property & casualty reinsurance business volume written in
2004 is expected to represent 69% of the 2003 figure at constant
exchange rates. The reduction in writings is especially
pronounced in the North American and the U.K. markets. As for
the European and Asian markets, renewal rates are significantly
higher.
Large corporate accounts business was temporarily penalized by
developments in the Group's rating. Only 36% of contracts fell
due for renewal at January 1, and 47% of those were renewed.
However, the full-year premium income outlook appears to be
better than the outcome of the latest renewal campaign suggests.
In the credit & surety business, SCOR preserved all of its lead
underwriting positions, while premium income is expected to fall
35%, mainly due to quota share reductions. SCOR's clients have
remained loyal, barring the loss of a single significant
customer.
The analysis of the renewals shows that SCOR has maintained
commercial relationships with the vast majority of its cedents.
For example, out of the top 352 property & casualty reinsurance
customers, 312 have renewed their treaties. The decrease in
premium income stems first and foremost from share reductions.
This reflects the quality of SCOR's long-term relations with its
ceding companies and the depth of its business franchise.
(c) Renewals marked by risk selection and technical
profitability, which have benefited from a rate environment,
which remains satisfactory.
Overall, the structure of the Non-Life portfolio has evolved in
line with the objectives announced in the "Back on Track" plan,
emphasizing selective underwriting and technical profitability.
The Group avoided any form of adverse selection by only working
with clients which it knew, for risks which it understood and by
applying strict underwriting criteria with a rigorous rate
policy.
Please note that the pursuit of the reorientation of the
business portfolio is marked by the following developments:
(i) Short-tail risks now account for 70% of the property
portfolio and 83% of large corporate accounts business.
(ii) Expected Gross Premium Income for treaties underwritten
in the United States should represent less than 16% of
expected premiums in 2004.
(iii) The relative share of non-proportional treaties
increases in the total volume of expected treaty
premiums.
(d) The Life and Accident reinsurance outlook remains positive
despite the short-term impact of rating developments.
Life business is written throughout the year. In SCOR Vie's
main markets, the number of clients lost is relatively small.
Consequently there is reason to anticipate a reduction in 2004
in expected premiums not greater than 11%, leading to a
reduction in premium income on the order of 17%.
Denis Kessler, Group Chairman and Chief Executive Officer,
stated: "Achieved under very difficult conditions for the
company, the 2004 renewals campaign showed that the vast
majority of our clients have remained with the Group, despite a
reduction in quota shares on treaties. We have reduced the
proportion of long-tail risks in our portfolio. We have managed
to consolidate the basis for redeployment while avoiding any
adverse selection of risks or customers. We have benefited from
a rate environment, which remains satisfactory. Our renewals,
admittedly with a reduced volume, adhere to strict profitability
and quality criteria. Combined with the emphasis on cost
reduction, these renewals contribute to putting together the
conditions for a sustainable return to profitability of the
Group."
2004 timetable:
April 1, 2004: FY 2003 Results
May 18, 2004: 2004 1st Quarter Results and General Meeting of
Shareholders
August 26, 2004: 2004 Half-Year Results
November 4, 2004: 2004 3rd Quarter Results
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G E R M A N Y
=============
PROSIEBENSAT.1 MEDIA: Outlook Changed to Positive
-------------------------------------------------
Moody's Investors Service changed the outlook on the Ba3 long-
term senior implied and debt ratings of ProSiebenSat.1 Media AG
to positive from negative following the reporting of the
company's preliminary 2003 results.
ProsiebenSat.1 revealed in its preliminary results evidence of
stabilizing operational and financial performance. It also
reiterated that the group's planned EUR280 million equity
capital increase should be completed as planned by April 2004.
Moody's noted that the company's viewing sharing for its family
of channels recovered from 28.1% in 2002 to 28.9% in 2003, and
its share of gross TV advertising spending in 2003 showed signs
of recovery in the third and fourth quarters. It also noted
improvement in group profitability in 2003 and the decline of
the company's debt to EUR676 million at end-2003.
Moody's is encouraged by the reiteration of the timing and form
of the planned capital increase. It believes ProsiebenSat.1
should benefit from a EUR280 million increase in equity capital
by April 2004. Moody's warned though that there are still
residual execution risk on the transaction. The Ba3 rating also
takes account the group's shorter-term refinancing of drawings
under the EUR380 million revolving credit facility maturing in
December 2004.
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I T A L Y
=========
PARMALAT USA: Unsecured Debtors' Organizational Meeting March 8
---------------------------------------------------------------
Deirdre A. Martini, the United States Trustee for Region II,
will convene an organizational meeting of the largest unsecured
creditors of Parmalat USA on March 8, 2004 at 2:00 p.m. The
meeting will held at the Office of the U.S. Trustee at 80 Broad
Street in Manhattan.
Greg M. Zipes, Esq., from the U.S. Trustee's office, explains
that the sole purpose of the meeting will be to form one or more
committees to represent the Debtors' unsecured creditors in
these cases. "This is not the meeting of creditors pursuant to
Section 341 of the Bankruptcy Code," Mr. Zipes says. He relates
that a representative of the Debtors will attend and provide
background information regarding the cases, but nothing in that
presentation will constitute sworn testimony. Creditors
interested in serving on a Committee should complete and return
a statement indicating their willingness to serve on an official
committee.
Official creditors' committees, constituted under Section 1102
of the Bankruptcy Code, ordinarily consist of the seven largest
creditors who are willing to serve on a committee. In some
Chapter 11 cases, the U.S. Trustee is persuaded to appoint
multiple creditors' committees.
Official creditors' committees have the right to employ legal
and accounting professionals and financial advisors, at the
Debtors' expense. They may investigate the Debtors' business
and financial affairs. Importantly, official committees serve
as fiduciaries to the general population of creditors they
represent. Those committees will also attempt to negotiate the
terms of a consensual Chapter 11 plan -- almost always subject
to the terms of strict confidentiality agreements with the
Debtors and other core parties-in-interest. If negotiations
break down, the Committee may ask the Bankruptcy Court to
replace management with an independent trustee. If the
Committee concludes that the reorganization of the Debtors is
impossible, the Committee will urge the Bankruptcy Court to
convert the Chapter 11 cases to a liquidation proceeding.
Immediately following the U.S. Trustee's determinations about
how many official committees will be appointed and who will be
appointed to each committee, the newly formed committees will
convene their initial meeting. The first order of business is
to listen to the U.S. Trustee explain the powers and duties of
the committee as a whole and members' individual
responsibilities.
The Committee will generally elect a chairman. Thereafter, the
Committee typically conducts beauty pageants to select their
legal and financial advisors. (Parmalat Bankruptcy News, Issue
No. 6; Bankruptcy Creditors' Service, Inc., 215/945-7000)
===========
P O L A N D
===========
GDYNIA SHIPYARD: Revises Details of Restructuring Program
---------------------------------------------------------
Gdynia Shipyard has amended its restructuring program,
presumably to assure liquidity and reduce tax liabilities,
Warsaw Business Journal reported.
The company has reportedly requested an extra PLN20 million loan
and applied conversion and reduction of tax liabilities of over
PLN200 million when it submitted revisions to its reorganization
plans to the Industrial Development Agency. According to the
report, the company hopes to benefit from the public aid law,
under which firms of particular importance for the labor market
may be subsidized.
Representatives of the Industrial Development Agency had
previously demanded financial forecasts for the next years.
They also found questionable details in the restructuring plan.
NETIA SA: J.P. Morgan Subsidiaries Increase Shareholding
--------------------------------------------------------
Netia SA (WSE: NET), Poland's largest alternative provider of
fixed-line telecommunications services, announced that it
received a notification stating that following the purchase of
Netia's shares, the subsidiaries of J.P. Morgan Chase & Co.
jointly hold 28,917,766 Netia's shares, which represent 8.38% of
Netia's outstanding share capital and 8.38% of the total voting
power at Netia's general meeting of shareholders, as of February
25, 2004 as:
Percentage of Netia's share
capital and percentage of
voting power at the
Number of general meeting of
Company shares shareholders
----------------- ------------------- --------------------
J.P. Morgan Securities Ltd. 16,187,642 4.68%
----------------- ------------------- --------------------
J.P. Morgan Fleming Asset
Management (U.K.) Limited 12,730,124 3.69%
----------------- ------------------- --------------------
The percentage holding of total share capital was calculated
based on Netia's reported share capital as of February 1, 2004.
Taking into account the number of series J shares issued until
February 24, 2004 in connection with the exercise of Netia's
subscription warrants, the shares jointly held by the
subsidiaries of J.P. Morgan Chase & Co. represent 8.28% of
Netia's share capital.
CONTACTS: NETIA
Investor Relation:
Anna Kuchnio
Phone: +48 22 330 2061
Media:
Jolanta Ciesielska
Phone: +48 22 330 2407
Taylor Rafferty, London
Mark Walter
Phone: +44(0) 20 7936 0400
Taylor Rafferty, New York
Abbas Qasim
Phone: 212 889 4350
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R U S S I A
===========
AGRICULTURALPROM: Declared Insolvent
-------------------------------------
The Arbitration Court of Belgorod region declared Closed JSC
Agriculturalprom special construction factory insolvent. The
case is docketed as A08-9391/03-2"B". Yuri Yakovlev has been
appointed insolvency manager. Creditors have until April 20,
2004 to submit proofs of claim to the insolvency manager at:
308002, Russia, Belgorod, Post User's Box 32.
CONTACT: AGRICULTURALPROM
308015, Russia
Belgorod, Pushkin str.49
BERDSK: Court Opens Bankruptcy Proceedings
------------------------------------------
The Arbitration Court of Novosibirsk region declared insolvent
Federal State Unitary Enterprise Berdsk. The case of the
biological preparations factory is docketed as A45-7905/02-
SB/1491. Anatoly Fedchenko, a member of TP Self-regulated
organization of arbitral managers in Sibir Federal District, has
been appointed insolvency manager.
Creditors have until April 20, 2004 to submit their proofs of
claim to the insolvency manager at: 630099, Russia, Novosibirsk,
Post User's Box 424, for Anatoly Fedchenko.
CONTACT: BERDSK
Kchimzavodskaya str.11
ANATOLY FEDCHENKO
630049, Russia, Novosibirsk
Krasny prosp.184, off.209
ELECTROTECHNICAL FACTORY: Court Appoints Insolvency Manager
-----------------------------------------------------------
The Arbitration Court of Kaluga region declared OJSC
Electrotechnical factory insolvent. The case is docketed as
A23-2299/03B-7-61. Andrey Leonov, a member of TP Self-regulated
organization of arbitral managers NGAU, has been appointed
insolvency manager. Creditors have until April 20, 2004 to
submit their proofs of claim to the temporary insolvency manager
at: 248600, Russia, Kaluga, Post User's Box 29.
CONTACT: ELECTROTECHNICAL FACTORY
248016, Russia, Kaluga
Territory St.Kaluga-1
Andrey Leonov
Insolvency Manager
248016, Russia, Kaluga
Plechanova str.45, off.529
KERBER: Under Bankruptcy Supervision Procedure
----------------------------------------------
The Arbitration Court of Volgograd region commenced bankruptcy
supervision procedure on Unitary Enterprise Specialized
production factory Kerber. The case is docketed as A12-
19334/03-c58. A. Schirochenko, a member of TP Self-regulated
organization of arbitral managers MZPU, has been appointed
temporary insolvency manager. Creditors are asked to submit
their proofs of claim to the temporary insolvency manager at:
400120, Volgograd, Eliseeva str. 15a-32.
A court hearing on Kerber's bankruptcy case will take place at
09.00(MT) on April 22, 2004 at the Arbitration Court of
Volgograd region.
CONTACT: KERBER
400107, Russia
Volgograd, Libknechta str.2a
A. SCHIROCHENKO
125171, Russia, Moscow
Leningrad schosse 16, build 3
KISILYOVSK BREWERY: Insolvency Manager to Auction Assets Mar. 22
----------------------------------------------------------------
The bidding organizer and external insolvency manager of OJSC
Kisilyovsk Brewery will launch the sale of the company's brewery
production and services building at 12:00 (MT) on March 22, 2004
at Kemerovo region, Kisilyovsk, Novostroyka str.1.
The assets for sale, labeled as Lot 1-9, are priced at RUB1.484
million. The amount will be increased by increments of 5%.
Acceptance of applications to participate in the auction is
until 12:00 noon on March 16, 2004. Applications are accepted
at: Kemerovo, N. Ostrovskogo str.32, off.333, Phone: 7-8-384-2-
36-10-56
Interested bidders are required to deposit to the settlement
account 40702810500000000396 of Kisilyovsk Brewery in Kemerovo
branch bank "Promtorgbank", correspondent account
30101810800000000795, BIC 043207795, INN 4211002734.
CONTACT: KISILYOVSK BREWERY
652700, Kemerovo region
Kisilyovsk, Novostroyka str.1
LEVIKHINSKY: Unprofitable Copper Mine to be Liquidated Soon
-----------------------------------------------------------
Levikhinsky copper mine, one of the most problematic enterprises
in Sverdlovsk region, will be closed completely. The license
for the operation has already been withdrawn and its personnel
dismissed. Liquidation of its assets will be launched in the
next several weeks as authorities prepare for the clean-up of
the site.
Problems at the complex began in 1997 after emergency failures
resulted to floodings in the area. Owner Kirovogradskaya mining
company, subsidiary of Uralskaya mining and smelting company,
subsequently declared the mine unprofitable. JSC Kamkabel,
producer of cable and wires, took over management of the
property complex during bankruptcy proceedings. It revived the
company's operation hoping to focus on ore mining. But lack of
money and market beset the company so that it could not even pay
employees' salary. Mining at the site fully stopped in 2003.
METROMEDIA INTERNATIONAL: Cuts Nine-month Loss to US$7.5 Million
----------------------------------------------------------------
Metromedia International Group, Inc. (currently traded as:
OTCPK:MTRM - Common Stock and OTCPK:MTRMP - Preferred Stock),
the owner of interests in various communications and media
businesses in Russia, Eastern Europe and the Republic of
Georgia, announced its financial results for the third quarter
ended September 30, 2003.
For the three months ended September 30, 2003, the Company
reported net income attributable to common stockholders of $24
thousand on consolidated revenues of $18.6 million. Income
attributable to common stockholders from the Company's
continuing core business operations during this period was
$0.4 million and losses from discontinued non-core business
operations were $(0.4) million. This compares to a net loss
attributable to common stockholders of $(48.7) million, or
$(0.52) per share, on consolidated revenues of $15.9 million in
the corresponding period of 2002. $(38.5) million and $(10.1)
million of such net loss was generated by the Company's
continuing and discontinued business operations, respectively,
in the corresponding period of 2002;
For the nine months ended September 30, 2003, the Company
reported net income attributable to common stockholders of $1.3
million, or $0.01 per share, on consolidated revenues of $53.1
million. Losses attributable to common stockholders from the
Company's continuing core business operations during this period
were $(7.5) million and income from discontinued non-core
business operations was $8.8 million. This compares to a net
loss attributable to common stockholders of $(104.8) million, or
$(1.11) per share, on consolidated revenues of $47.9 million in
the corresponding period of 2002. $(68.2) million and $(35.5)
million of such net loss was generated by the Company's
continuing and discontinued business operations, respectively,
in the corresponding period of 2002; and
As of September 30, 2003 and January 30, 2004, the Company had
$24.1 million and $23.3 million, respectively, of unrestricted
cash at its headquarters level.
With respect to these financial results, Mark Hauf, Chairman and
Chief Executive Officer, commented, "The Company's current
financial performance reflects the progress we have made on
implementing the significant corporate restructuring we embarked
on last year. When I accepted the responsibilities of Chief
Executive in February 2003, the Company was faced with
substantial liquidity issues and, in my opinion, the need for a
fundamental change in the Company's operational processes and
business development strategies. In response, we initiated a
three point restructuring program. First, significantly
downsize corporate overhead staff and related expenditures.
Second, monetize historical interests in cable television and
radio broadcast businesses, to generate needed cash and better
focus the attentions of the Company. And third, concentrate all
continuing business development attention on core telephony
businesses in Russia and the Republic of Georgia. The third
quarter 2003 financial results that we are now reporting provide
a yardstick by which to measure our success thus far in the
pursuit of this restructuring program. While additional work
remains in connection with the disposition of remaining non-core
media businesses and the reduction of certain historical
overhead expenditures, I am pleased that our efforts to date
have yielded both income and a modest cash reserve. Although
the current financial reports admittedly reflect a wide range of
non-operating adjustments in addition to basic operating
performance, I believe they clearly demonstrate a fundamental
departure from the Company's historical trends. I am especially
pleased with the strong operating performance of our core
PeterStar and Magticom businesses for the first nine months of
2003."
Mr. Hauf added: "There are still a number of risks the Company
faces with respect to our efforts to return to a stable and
sustainable financial position, especially those connected with
the further building of liquidity reserves and those relating to
the operation of a business in volatile developing foreign
markets. Despite these risks, I can report my belief, as backed
by the financial results we announced, that our efforts to
restructure and refocus the Company should result in continued
material improvements in the Company's basic health and future
prospects."
Ernie Pyle, Executive Vice President and Chief Financial
Officer, commented: "As we announced on September 30, 2003, the
Company's Board of Directors formally approved management's plan
to dispose of all remaining non-core media businesses of the
Company. Accordingly, pursuant to US Generally Accepted
Accounting Principles, the Company is now presenting the 2003
and 2002 financial results of its non-core business operations
as discontinued business components. Note also that the
Company's 2003 and 2002 financial results reflect the effects of
gains and losses on the sale of businesses; gains on the
retirement of indebtedness and impairment charges associated
with the Company's carrying value in businesses prior to their
disposition."
To see full copy of financial results:
http://bankrupt.com/misc/Metromedia_9Month.htm
PALLASOVKA: Court Names Insolvency Manager
------------------------------------------
The Arbitration Court of Volgograd region declared insolvent
OJSC Pallasovka, an agricultural production chemistry factory.
The case is docketed as A12-18773/03c48. A. Pschenkov, a member
of TP Self-regulated organization of arbitral managers Avangard,
has been appointed insolvency manager. Creditors have until
April 21, 2004 to submit proofs of claim to the insolvency
manager at: Russia, Volgograd, Lenin prosp.79-102.
CONTACT: PALLASOVKA
Russia, Volgograd region
Pallasovka', Kchimikov str.4
PERVOMAYSKSELHOZCHIMIYA: Under Bankruptcy Supervision Procedure
---------------------------------------------------------------
The Arbitration Court of Nighny Novgorod region commenced
bankruptcy supervision procedure on OJSC Pervomaysk agricultural
chemistry factory Pervomayskselhozchimiya. The case is docketed
as A43-20442/03-24-204.
Leonid Shavarenkov, a member of TP Interregional self-regulated
organization of arbitral managers in Privolzgskiy District, was
appointed temporary insolvency manager. Creditors are asked to
submit their proofs of claim to the temporary insolvency manager
at: 606000, Dzerginsk, Lenina prosp. 57/2, off.20
A court hearing on the bankruptcy case will take place at
10.00(MT) on March 2, 2004 at the Arbitration Court of Nighny
Novgorod region.
CONTACT: PERVOMAYSKSELHOZCHIMIYA
607760, Russia, Pervomaysk
Oktyabrskaya str.74
LEONID SHAVARENKOV
603001, Russia, Nighny Novgorod
Pochainskaya str.20
SAVMA: Creditors Have Until April 20 to File Proofs of Claim
------------------------------------------------------------
The Arbitration Court of Tver region declared Savelovskiy
machine-building factory OJSC SAVMA insolvent. The case is
docketed as A66-3273/03. Vasily Schevchenko, a member of TP
Russian self-regulated organization of arbitral managers, has
been appointed insolvency manager.
Creditors have until April 20, 2004 to submit their proofs of
claim to the temporary insolvency manager at:115597, Russia,
Moscow, Guryevsky prosp.27, build.2.
CONTACT: SAVMA
171510, Russia
Tver region
Kimry', 50th-VLKSM str.11
VASILY SCHEVCHENKO
Insolvency Manager
109012, Russia, Moscow
Polkovaya str.17, build.18
SIBGAZTRANS: Under Bankruptcy Supervision Procedure
---------------------------------------------------
The Arbitration Court of Khanty-Mansiysk autonomous district
commenced bankruptcy supervision procedure on The Siberian
gaseous transport company Sibgaztrans. The case is docketed as
A75-149-B/04. Vasiliy Vohmenzev, a member of TP Ural self-
regulated organization of arbitral managers, has been appointed
temporary insolvency manager.
Creditors are asked to submit their proofs of claim to the
temporary insolvency manager at: 620027, Russia, Ekaterinburg,
Post User's Box 29. A court hearing on the bankruptcy case will
take place at 10.00(MT) on May 24, 2004 at the Arbitration Court
of Khanty-Mansiysk autonomous district.
CONTACT: SIBGAZTRANS
626400), Russia, Surgut
Mayakovskogo str.79
VASILIY VOHMENZEV
Insolvency Manager
620075, Russia, Ekaterinburg
Gorkogo str.31
=====================
S W I T Z E R L A N D
=====================
ADECCO SA: Audit Fails to Spot Misappropriation, Irregularities
---------------------------------------------------------------
The Board of Directors of Adecco S.A. issued this update
recently:
(a) According to the latest management information, operations
remain healthy and year-to-date demand for the Company's
services continue to be stronger than last year.
(b) The Board of Directors and Management stand unified in their
full commitment to resolve the issues associated with the
release of the audited 2003 financial statements. Based on
the information currently available to the Board, the Board
confirms that to date no evidence demonstrating major
misappropriations or irregularities that would be
financially significant to the Company as a whole has been
found.
(c) The Board of Directors further determined it will propose
that a majority of independent directors be elected at the
next General Meeting of Shareholders.
(d) In addition, the Board will propose to the next General
meeting of Shareholders, the re-election of Philippe Foriel-
Destezet and the election of Klaus J. Jacobs to the Board of
Directors. To underline their commitment to the Company,
Adecco's two principal shareholders have reiterated their
support and have conveyed to the Company their intention to
maintain their respective shareholdings in Adecco S.A.
About Adecco
Adecco S.A. is a Forbes 500 company and the global leader in HR
Solutions. The Adecco Group network connects 650,000 associates
with business clients each day through its network of 28,000
employees and more than 5,800 offices in 68 territories around
the world. Registered in Switzerland, and managed by a
multinational team with expertise in markets spanning the globe,
the Adecco Group delivers an unparalleled range of flexible
staffing and career resources to corporate clients and qualified
associates.
The Adecco Group comprises four Divisions, Adecco Staffing,
Ajilon Professional, LHH Career Services and Jobpilot e-HR
Services. In Adecco Staffing, the Adecco staffing network
focuses on flexible staffing solutions for global industries in
transition, including automotive, banking, electronics,
logistics and telecommunications; Ajilon Professional offers an
unrivalled range of specialized branded businesses; LHH Career
Services encompasses our portfolio of outplacement and coaching;
Jobpilot e-HR focuses on online recruiting activities for the
Adecco Group.
Adecco S.A. is registered in Switzerland and is listed on the
Swiss Exchange (ADEN / trading on Virt-x: 1213860), NYSE (ADO),
Euronext Premier Marche (12819).
Additional information is available at the Company's Web site at
http://www.adecco.com
CONTACT: ADECCO
Media Centre
Phone: +41 1 878 8888
===========================
U N I T E D K I N G D O M
===========================
ABBEY NATIONAL: Reports GBP686 Million Pre-tax Loss
---------------------------------------------------
Chief Executive's Review
Overview
At our 2002 results presentation a year ago, Abbey set out the
scale of financial threats and business challenges it faced and
the need for a fundamental change in strategy. The new strategy
was announced, to focus solely on personal financial services in
the U.K., and sell or wind down its other activities.
It has been a tough year for Abbey, but we've made a lot of
progress in reducing risk, selling certain assets, re-organizing
the personal financial services business and putting foundations
in place to allow Abbey to grow in the future. One year into
our three-year change program, we are on track and have met the
priorities we set out 12 months ago. The task is challenging,
however, as the 2003 financial results show. We are reporting a
loss before tax of GBP686 million, albeit substantially due to
the speed and success of asset and business sales in the
Portfolio Business Unit.
Summary of the financial results for 2003:
(a) Personal Financial Services trading profit before tax of
GBP1,021 million (2002: GBP1,219 million); in line with
guidance given at the third quarter statement in October,
with the exception of a provision of GBP50 million described
below;
(b) An overall Group pre-tax loss of GBP (686) million (2002:
loss of GBP(947) million), consisting of:
(i) personal financial services trading profit (as above);
less
(ii) personal financial services 'non-trading' charges of
GBP786 million (2002: GBP1,398 million). These include a
GBP373 million life assurance provision largely relating
to the pending introduction of new financial services
authority regulations in this sector on 'realistic'
balance sheet reporting and related matters (as flagged
in the third quarter statement); and
(iii) Portfolio Business Unit losses of GBP (921)
million (2002: -GBP768 million); reflecting successful
and rapid reduction of assets, and write-down of certain
remaining assets to estimated sale values.
Other financial and business highlights include:
(a) An 80% reduction in Portfolio Business Unit assets, from
GBP60.0 billion to GBP12.3 billion, well ahead of plan. By
the year-end, the reduction in risk weighted assets and
associated losses equated to a notional equity release of
approximately GBP1.0 billion, with an overall improvement in
loan and securities loss estimates of GBP344 million versus
the mark to market disclosures given at the start of 2003;
(b) The personal financial services banking spread narrowed to
1.81% (2002: 2.03%), with the Abbey retail spread falling
from 1.79% to 1.55%, in line with previous guidance;
(c) Gross and net mortgage lending up 32% and 40% respectively.
Second half net lending market share was 10.4%, with the
full year of 9.9% our highest market share in 9 years;
(d) Further improvements in credit quality, with a 39% reduction
in 3-month-plus mortgage arrears cases in 2003, with the
position now better than the Council of Mortgage Lenders
average;
(e) personal financial services trading costs, including costs
reported as part of embedded value, down GBP22 million, with
underlying inflation, increased pension costs, investment
and business re-launch spend being offset by GBP126 million
of cost savings in the year (GBP165 million on an annualized
basis);
(f) An Equity Tier 1 ratio of 6.9% (2002: 6.4%) and Tier 1 ratio
of 10.1% (2002: 9.2%), with the improvement largely due to
portfolio business unit capital release.
However, we are increasingly cautious about the prospects
for a 'one-off' capital return to shareholders in the light
of the ongoing regulatory and accounting developments as
highlighted in previous statements; and
(g) A proposed final dividend of 16.67 pence, to give a full
year dividend for 2003 of 25 pence per share, the same as
the payment for 2002.
In 2004, Abbey expects a substantial recovery in total Group
statutory results reflecting the anticipated reduction in PBU
losses. We aim to report the first improvement in Personal
Financial Services revenues during the second half of 2004, but
remain cautious about full year Personal Financial Services
trading profits. Growth prospects are expected to be held back
by reduced profitability in the mortgage book as the impact of
the lending mix of recent years combines with continuing
redemptions to lower margins further. Since the business re-
launch, steps are being taken to offset this trend, but these
will take time to have a material impact. We remain confident
that the major changes we are making will improve Abbey's
Personal Financial Services business and produce a stronger
business with better potential for growth.
Financial and Business Highlights - Personal Financial Services
Personal Financial Services trading profit before tax of
GBP1,021 million (2002: GBP1,219 million) was down 16%, and
equated to a trading earnings per share of 41.7 pence. The main
drivers of the fall were:
(a) Reduced earnings from the life assurance business, largely
due to a GBP142 million negative swing in experience and
assumption changes;
(b) A fall in Banking and Savings trading profit of 9% to GBP876
million (2002: GBP962 million), with lower net interest
income, largely due to spread reduction;
(c) Lower general insurance earnings of GBP73 million (2002:
GBP92 million); offset by
(c) A smaller loss in Group Infrastructure of -GBP307 million
(2002: -GBP355 million) due to earnings on increased
capital held centrally and lower expenses, offset by a
provision of GBP50 million relating to uncertainty
about the regulatory environment for product mis-selling.
Personal Financial Services statutory profit before tax was
GBP235 million (2002: loss of -GBP179 million), affected by the
following material charges in 2003:
(a) Embedded value charges and rebasing in the life assurance
business of -GBP443 million (2002: -GBP553 million). This
includes a charge of GBP80 million relating to tax law
changes affecting the structure of the Scottish Provident
acquisition; adverse investment variances and the effects of
the adoption of active embedded value accounting of GBP118
million; and a GBP373 million provision largely relating to
the pending introduction of new Financial Services Authority
regulations in the sector on 'realistic' reporting and
related matters. The final impact of regulatory change on
our life companies is still unclear, with scope for the
final charge to be significantly higher or lower, than the
provision made.
(b) Re-organization costs of GBP315 million compared to GBP34
million in 2002, reflecting expenses in relation to cost
reduction as well as smaller one-off expenses associated
with the new Personal Financial Services strategy. Also
included are asset write-downs of GBP141 million, including
GBP69 million in the second half of the year, following the
completion of the mortgage processing and general insurance
joint venture reviews. The write-down has substantially
reduced the amount of previously capitalized development
costs in relation to these joint ventures, down to GBP6
million.
In terms of Personal Financial Services new business flows, the
highlights include:
(a) Full year gross mortgage lending of GBP29.1 billion (2002:
GBP22.1 billion) representing a market share of 10.7%, with
the second half volumes up 26% on the first half. With
capital repayments still slightly below natural stock share,
net lending of GBP9.4 billion was 40% higher than 2002
(GBP6.7 billion), equating to a market share of 9.9%;
(b) Total retail deposit inflows of GBP1.2 billion, lower than
the GBP1.9 billion in 2002;
(c) Bank account openings totaling 396,000 (2002: 444,000), with
a total stock of accounts nearing 3.8 million and Abbey-
branded in-credit balances up 23% to GBP4.3 billion (2002:
GBP3.5 billion);
(d) Growth in unsecured lending balances, which includes credit
card (cahoot only), unsecured personal loans and overdrafts,
by 12% to GBP2.9 billion (2002: GBP2.6 billion);
(e) Investment product sales of GBP184 million (annualized
equivalent) 43% lower than 2002, reflecting subdued market
demand and the Abbey-specific impacts of our withdrawal from
the with-profit bond market, declaration last year of a zero
bonus for with-profits policyholders, and the need to
substantially restructure our investment product ranges,
branding and distribution. These changes are now underway;
(f) Protection sales 12% higher than 2002 at GBP125 million
(annualized equivalent); and
(g) General insurance new policy sales of 452,000, down 11% on
2002.
These new business flows are creditable given the current
demands of the change program on front line staff, but are below
our future aspirations.
Strategic update - Personal Financial Services
Abbey has made significant progress against the priorities set
out in February 2003.
We have introduced a new functional structure based around the
customer, in addition to which, major organizational changes
implemented include:
(a) Completing the Executive Director team, with the appointment
of Priscilla Vacassin (Human Resources Director), Angus
Porter (Customer Propositions Director) and Tony Wyatt
(Customer Operations Director); creating a Customer Board,
attended by Vittorio Radice and Waheed Ali; and appointing
Gerry Murphy and Geoff Cooper as Non-Executive directors,
with effect from January 1, 2004;
(b) Reviewing the next layer of management, reducing the size of
this group and filling the majority of resulting vacancies
including the external recruitment of new heads of
advertising, compliance, risk, general insurance, corporate
strategy, internal audit and branch distribution;
(c) Undertaking a wide-ranging review of our operational
activities, which has concluded to date that we will plan
our operations activities around 5 key U.K. locations, and
move work from smaller sites to larger centers. In 2003, we
closed 6 operational U.K. sites, with a further 4 site
closures already announced for this year. We have also
announced the transfer of a range of administrative
activities to a new site in India;
(d) Closing the majority of our in-house active fund management
business and the transfer of funds to multi-manager, aiming
to deliver superior investment performance and choice for
our customers; and
(e) Reaching ongoing annualized gross cost savings of GBP165
million.
We have also been investing in and upgrading our IT to
support the people who deal directly with customers, giving
them better tools to do their job, including:
(f) Installing new customer relationship management software,
with more than 8,000 staff trained and online. By the end
of the second quarter of 2004, 11,000 customer-facing staff
will be using the system; and
(g) The replacement and upgrading of IT in the branches,
covering 40,000 pieces of IT equipment (which will be
complete by June 2004), putting a new telecommunications
platform in our branch network, head office sites
and call centers, which is faster and easier to use.
At this time last year, we highlighted the need to address
recruitment and retention in some areas of the business, as well
as improving and increasing numbers of customer-facing staff. To
date we have:
(a) Introduced a number of new recruitment and induction
measures, with new joiner turnover in our branches and
telephone centers now running significantly lower than a
year ago;
(b) Fundamentally re-organized the staffing and management of
our branches. 400 customer advisers have been recruited,
and the number of staff qualified to give mortgage advice
has been increased by 27% over the year;
(c) Tackled service standards in certain areas, partly through
recruiting 150 staff in our banking and savings contact
centers - they are now consistently achieving industry
standard service levels and aiming for further improvements;
(d) Increased training days by 38% from 2002 levels, including
almost 130,000 training days in the second half of 2003
alone - double the amount in the first half; and
(e) Launched our outreach program, with 60 staff now actively
making calls, and plans to increase capacity further in the
first half of 2004.
On September 24, we re-launched the business, clearly signaling
our intent to deliver a distinctive experience to our customers,
and laying out for our people the ways to make this happen. The
re-launch also involved:
(a) A commitment to simplify and increase consistency in our
core banking, mortgages and savings ranges. This has
already included replacing six different current accounts
with just one, grouping similar mortgages and savings
accounts together, making it easier for customers to choose
the right account, and the withdrawal from sale of some low
paying savings accounts;
(b) Reducing the number of brands we will use in future, uniting
under the Abbey brand in most business areas. In 2004 this
will mean replacing the Scottish Mutual and Scottish
Provident brands for new business;
(c) A commitment to communicate in plain, everyday language,
including a rewrite of more than 7,000 customer letters. As
at December 31, over 2,000 have been completed, covering
most of our banking, savings and mortgage letters; and
(d) The first phase of a new advertising campaign rolled out.
The second half of the year also saw Abbey launching new and
innovative products and services, including a wrap service for
intermediaries, and offering all customers a multi-manager
investment service both direct and through IFAs.
To see financial statements:
http://bankrupt.com/misc/Abbey_Prelim2003.htm
ABBEY NATIONAL: Investment Grade Ratings Affirmed
-------------------------------------------------
Fitch Ratings affirmed the ratings of Abbey National plc at
Long-term 'AA-', Short-term 'F1+', Individual 'B' and Support
'2'. The Outlook for the Long-term rating remains Stable.
The affirmation follows the announcement of Abbey's GBP686
million pre-tax loss for 2003, with non-trading charges of
GBP786 million and losses from the Portfolio Business Unit of
GBP921 million wiping out a GBP1,021 million trading profit from
the core Personal Financial Services business. The results were
broadly in line with management's prior indications, with the
exception of a GBP373 million provision for the position
expected to be shown in the group's life companies' "realistic"
balance sheets, following forthcoming FSA regulations on the
solvency of life companies. Abbey's ratings are underpinned by
reasonable capital ratios (Tier 1: 10.1%) that have improved
during 2003 as a result of the net notional capital release from
the Portfolio Business Unit run-down, although the level of
capital necessary to support its insurance businesses going
forward remains uncertain.
Fitch continues to view positively the strategic decision by
Abbey's new management team to concentrate on its historic
strength of U.K. Personal Financial Services, although this area
remains exceptionally competitive. In addition, the agency
notes the management's success in reducing dramatically the
group's risk profile both by exiting parts of the wholesale
banking business non-essential to its core Personal Financial
Services operations (and now managed in the Portfolio Business
Unit) and through measures taken to reduce the risk profile of
its insurance operations. In particular, Fitch notes that
around GBP24 billion of Portfolio Business Unit's risk weighted
assets have been sold or have run off during 2003, and
unrealized mark-to-market losses on the remaining Portfolio
Business Unit bond and loan portfolios have been almost
eliminated (GBP66 million compared with GBP1.2 billion at end-
2002).
However, the agency warns that the bank's ability to maintain
its present ratings is dependent on the successful
implementation of the new Personal Financial Services-focused
strategy. This business has suffered from many years of under-
investment, and the results (and trend) reported from the
division, albeit still in a transformational stage, do not
compare favorably with those of its larger domestic competitors.
Fitch will continue to closely monitor management's progress in
achieving its broad targets in the Personal Financial Services
arena.
Abbey National is the sixth largest banking group incorporated
in the U.K. by assets and has a strong retail franchise in the
U.K., with significant shares in the retail savings and mortgage
markets and over 15 million customers.
CONTACT: FITCH RATINGS
James Longsdon
Gordon Scott; London
Phone: +44 (0) 20 7417 4222
ABBEY NATIONAL: Ratings Lowered Due to Restructuring Burden
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its long- and short-
term ratings on Abbey National PLC and related entities to
'A+/A-1' from 'AA-/A-1+', including its counter party credit
ratings on Abbey and its long-term counter party credit and
insurer financial strength ratings on Abbey National Life PLC.
The downgrade on the short-term ratings is in line with that on
the long-term ratings. The outlook on all entities is stable.
At the same time, Standard & Poor's affirmed its 'BBB+' counter
party credit and insurer financial strength ratings on Scottish
Mutual Assurance PLC and Scottish Provident Ltd., which continue
to benefit from Abbey's support.
"The downgrade reflects the continued heavy burden of Abbey's
restructuring on its balance sheet, and the expectation that the
upturn in core retail profits will take some time to come
through," said Standard & Poor's credit analyst Michelle
Brennan.
Abbey announced a GBP686 million pretax loss for 2003, which was
greater than Standard & Poor's had expected, and came on top of
a GBP947 million pretax loss for 2002. "These accumulated
losses are delaying the group's return to an earnings profile
and balance sheet consistent with a 'AA-' rating," added Ms.
Brennan.
Core personal financial services earnings are expected to remain
stable in 2004, as Abbey works to revitalize its retail
operations. Given the disruption associated with the
repositioning activities, personal financial services earnings
are not expected to show signs of growth until the latter part
of 2004.
Abbey's 2003 loss reflects the ongoing cost of its exit from its
Portfolio Business Unit (PBU: mainly comprised of Abbey's former
wholesale bank activities), but also a GBP373 million charge
related to its life assurance subsidiaries' moves to a
"realistic balance sheet" approach to regulatory capital
requirements.
The ratings on Abbey are supported by its important position in
the highly competitive U.K. savings and residential mortgages
markets (although affected by the disruption of the
restructuring), buoyant retail asset quality, good liquidity and
funding profile, the benefits expected to accrue from its cost
and efficiency programs, improved management focus and
execution, and measures to reduce the group risk profile. Group
operating earnings remain weak, although they should improve
once the Portfolio Business Unit exit is completed.
"The stable outlook reflects Standard & Poor's expectations
regarding the contribution of Abbey's personal financial
services activities to overall group earnings and risk profile,"
said Ms. Brennan. Portfolio Business Unit exit losses are
expected to be significantly lower in 2004, and to be minimal in
2005. Overall group earnings are expected to come in line with
'A+' peers within the outlook horizon. At this point, Standard
& Poor's does not expect further material charges associated
with the life operations, although the regulatory environment
remains in some flux.
"The outlook could be revised to positive if group risk-adjusted
earnings show a sustainable recovery to levels consistent with
'AA-' peers," she added.
CONTACT: STANDARD AND POORS
Analyst E-Mail Addresses
michelle_brennan@standardandpoors.com
peter_dutton@standardandpoors.com
david_harrison@standardandpoors.com
FIG_Europe@standardandpoors.com
InsuranceInteractive_Europe@standardandpoors.com
ABERDEEN ASSET: Contests Financial Ombudsman Service Ruling
-----------------------------------------------------------
Aberdeen Asset Management PLC announces that it has received
details from a Financial Ombudsman Service adjudicator of a
provisional assessment in respect of a case being examined by
Financial Ombudsman Service in relation to a complaint brought
by one investor in Aberdeen Progressive Growth Unit Trust.
The provisional assessment, which is not binding on either
party, sets out the FOS adjudicator's view on this complaint,
which Financial Ombudsman Service has been treating as a lead
case. The provisional assessment proposes that the dispute
between Aberdeen Unit Trust Managers Limited and the complainant
be resolved by the payment of compensation to the complainant.
After careful consideration of the provisional assessment, the
Board believes it does not reflect the weight of evidence, which
Aberdeen has supplied to substantiate its position. Whilst
remaining sensitive to the distress suffered by investors in
Progressive and wishing to provide support to them on a
voluntary basis, the Board cannot agree with the Financial
Ombudsman Service adjudicator's opinion in this case. Aberdeen
will therefore be exercising its right to have the case referred
to the Ombudsman for determination.
In the absence of further material developments, Aberdeen does
not intend to make any further comment on this case in advance
of the issue of such final determination, as to do so could be
in breach of the obligation of confidentiality implicit in the
FOS process and may have a bearing on the Group's
responsibilities to its insurers.
CONTACT: GAVIN ANDERSON & COMPANY
Neil Bennett
Mark Lunn
Phone: 020 7554 1400
ALFRED BULL: Calls in Administrator from Grant Thornton
-------------------------------------------------------
Name of Company: Alfred Bull And Company Limited
Nature of Business: Marquee and Awnings Supplier
Trade Classification: 39-Recreational Services
Date of Appointment: February 17, 2004
Joint Administrative Receiver: GRANT THORNTON
31 Carlton Crescent
Southampton SO15 2EW
Receivers:
Samantha Jane Keen
Nigel Morrison
(IP Nos 9250, 8938)
Company Address: Woodbridge Meadows
Guildford
Surrey
GU1 1BB
Phone: 01483 575492
Fax: 01483 573448
Web site: http://www.alfredbullmarquees.co.uk
*****
Alfred Bull is a 100-year-old family firm based in Guilford. It
is the leading marquee contractors in the South East.
BAE SYSTEMS: Expects Improvements in Defense Biz this Year
----------------------------------------------------------
Preliminary Announcement 2003
Highlights:
(a) Strong cash performance
(b) Record order book at GBP46 billion
(c) Good performance from North America with underlying organic
sales growth of 11%
(d) Customer Solutions & Support again delivered a robust
performance
(e) Good progress towards stabilizing the U.K. MoD Programs
business
(f) Turnaround in International Partnerships, driven by second
half performance in MBDA and AMS and exit from Astrium
(g) Airbus results maintained in difficult market
(h) Avionics business impacted by reduced throughput and
rationalization activity
Results in brief
2003 2002
GBP GBP
Order book1 46.0 billion 42.5 billion
Sales 12,572 million 12,145 million
Profit before interest2 980 million 1,002 million
Earnings per share2 16.6p 17.3p
Profit/(loss) before interest3 453 million (410) million
Loss per share3 (0.5)p (23.2)p
Dividend per share 9.2p 9.2p
Operating cash inflow 836 million 136 million
Net debt 870 million 1,298 million
Outlook
Good sustained underlying growth is anticipated across the
company's operations in North America and in International
Partnerships with some recovery in the Avionics business. The
performance of the Programs business is expected to continue to
be restrained with some U.K. MoD production programs still in
early phases of maturity. Margins in Customer Solutions &
Support are likely to continue to trend downwards. Overall,
underlying performance of the company's defense businesses in
2004 is expected to be slightly ahead of 2003.
Airbus plans a volume of activity for 2004 similar to 2003, with
a slightly lower value mix of deliveries.
(a) Including share of joint venture order books and after the
elimination of intra-group orders of GBP1.9 billion
(b) Before goodwill amortization and impairment of GBP518
million (2002 GBP615 million) and exceptional items of GBP9
million (2002 GBP797 million)
(c) Statutory basis
2003 Preliminary results statement
Commenting on these results, Chairman Sir Richard Evans said:
"We remain committed to the twin objectives of improving our
performance to meet the expectations of our customers and
delivering enhanced shareholder value."
Mike Turner, chief executive, added: "Our overall priorities are
to deliver enhanced performance and improve returns,
particularly from our major U.K. defense programs in the medium
term, and to continue to grow our business in the U.S."
To see full copy of financial results:
http://bankrupt.com/misc/BAE_Prelim2003.htm
BAE SYSTEMS: Fears Delay of Aircraft Delivery
---------------------------------------------
BAE Systems Chairman Sir Richard Evans said negotiations with
the Ministry of Defense over a contract to build two aircraft
will certainly not meet its target conclusion.
Earlier it was projected that the "main gate," the first part of
the contract will be signed by April. Now Sir Evans described
the possibility "not cat in hell's chance," according to The
Scotsman.
Sir Evans warned that this glitch could delay the project as
much as one year, though he said it was possible that design and
cost could be fixed by the year end. Negotiations are currently
stuck on whether the 65,000 ton carriers, which the government
is willing to have for GBP2.9 billion, will be scaled back or
made at a higher price.
BAE made a GBP233 million pre-tax profit last year, compared to
a GBP616 million loss the year before after exceptional charges
from the Ministry of Defense projects that ran over budget.
BNR EUROPE: Appoints PricewaterhouseCoopers Liquidator
------------------------------------------------------
BNR Europe Limited
Telephone Switching International Limited
Northern Telecom Telecommunications Limited
Nortel (Management) Limited
Brightspeed Components Limited
At the Extraordinary General Meeting of these Companies, on
February 10, 2004, the subjoined Special Resolutions to wind up
these Companies were passed.
Tim Walsh and Richard Setchim of PricewaterhouseCoopers LLP, One
Kingsway, Cardiff, are appointed Joint Liquidators of the
Companies.
CONTACT: PRICEWATERHOUSECOOPERS LLP
One Kingsway
Cardiff CF10 3PW
United Kingdom
Contact:
Tim Walsh, Liquidator
Richard Setchim, Liquidator
Phone: (44) (29) 2023 7000
Fax: (44) (29) 2080 2400, 2404 (VAT)
Web site: http://www.pwcglobal.com
BRITISH ENERGY: Reports GBP12 Mln Quarterly Operating Profit
------------------------------------------------------------
Key Points
(a) Good progress on restructuring continued, with sale of
AmerGen interest ($277 million); provisional gain on sale of
GBP35 million; restructuring remains subject to significant
uncertainties.
(b) Group operating profit, after exceptional items, of GBP12
million in the quarter, compared with loss of GBP21 million in
the nine month period
(c) Total U.K. output of 17.3 TWh in the quarter (down 4% year
on year); 52.7 TWh for the nine-month period (up 6% year on
year)
(d) Operating cash inflow, after capex, was GBP1m in the nine-
month period
(e) Net debt was reduced by GBP167 million to GBP454 million in
the quarter, primarily as a result of the AmerGen net proceeds.
The HMG Credit Facility has reverted to GBP200 million
Update since December 31, 2003
(a) Total U.K. output of 59.5 TWh up to 31 January 2004 (up 5%
year on year)
(b) Revised U.K. nuclear output forecast for the year of around
65.5 TWh confirmed (up 3% year on year), compared with 63.8 TWh
in 2002/03
(c) Dispute with Siemens settled. Siemens to pay GBP18.3
million to British Energy
(d) Nil drawings under HMG Credit Facility as at February 24,
2004
Key financials are shown below: 3 Months Ended 9 Months Ended
31 Dec 2003 31 Dec 2003
GBPm
GBPm
Group turnover 369 1,046
Group operating profit/ (loss) 12 (21)
Loss before tax (10) (81)
Achieved price (excluding misc. income)
GBP17.6/MWh
GBP16.4/MWh
Total operating costs (excluding revalorisation)
GBP17.2/MWh
GBP16.7/MWh
Adrian Montague, Chairman, said:
"We continue to make good progress with the Company's
restructuring, with the sale of our interest in AmerGen for $277
million being the highlight of the period. Whilst a decision by
the European Commission on restructuring is pending, we are
focusing on improving British Energy's operational reliability
and financial capability."
To see financial statements:
http://bankrupt.com/misc/BritishEnergy_9Month.htm
CONTACT: BRITISH ENERGY
Paul Heward
Phone: 01355 262201
FINANCIAL DYNAMICS
Andrew Dowler
Phone: 020 7831 3113
CANARY WHARF: BP Division Leases Canada Square Property
-------------------------------------------------------
Canary Wharf Group plc and BP's Integrated Supply and Trading
division, announces that formal contracts have been exchanged
for the lease of approximately 140,500 sq. ft. of space in 20
Canada Square. This is an increase of 12,500 sq. ft. above the
128,000 sq. ft. announced at the signing of the initial heads of
agreement in September 2003.
The lease agreement is for 140,500 sq. ft. on floors 1,2 & 3 and
part of floor 4 (with basement storage) on a 20-year term with
tenant only breaks at 10 years and 15 years. If no break is
exercised at the end of the 10th year, a one-year rent-free
period will be granted.
To accommodate future growth, Integrated Supply and Trading has
an option on the remainder of floor 4, (30,800 sq. ft.)
exercisable up until April 1, 2004. If this option is
exercised, BP will acquire a break right on the 4th floor only
exercisable at the end of the 5th year of the term, upon payment
of a one-year rental penalty. In addition, should Integrated
Supply and Trading exercise its option over the remainder of
floor 4, it will acquire an additional option on the 5th floor
(40,900 sq. ft.) exercisable up until September 1, 2004 and,
subject to exercising its options on the 4th and 5th floors, an
option on the 6th floor (47,000 sq. ft.) exercisable up until
1st November 2004.
The recently completed 535,000 sq ft 12-floor glass and steel
building was designed by leading architects Skidmore Owings &
Merrill. The building offers large floor plates of typically
40,000-45,000 sq. ft. Located in a prime position at Canary
Wharf on the southeast corner of Canada Square Park, it provides
underground links to the Jubilee Line and Docklands Light
Railway stations as well as direct access to the retail, which
extends to over 600,000 sq. ft. of shops, bars and restaurants.
The building is bordered to the south by the five-acre Jubilee
Park and the new Clifford Chance, Northern Trust and Lehman
Brothers headquarter buildings. To the north it shares its
Canada Square location with the world headquarters of HSBC and
the European headquarters of Citigroup, Credit Suisse First
Boston, Bank of America and in the future of Barclays Bank plc
(expected to move in during the fourth quarter of 2004). The
McGraw-Hill Companies, the global information services provider,
will also be occupying some 266,000 sq ft at 20 Canada Square.
BP's IST division were advised by DTZ, Canary Wharf Group were
advised by CB Richard Ellis and Knight Frank.
George Iacobescu, Chief Executive, Canary Wharf Group plc, said:
"We are extremely pleased to be welcoming BP, one of the largest
and most prestigious companies in the world. We had an
excellent collaboration with BP's professional management team
and are happy to have been able to satisfy the present and
future requirements of Integrated Supply and Trading. Canary
Wharf prides itself on being in a position to offer the highest
quality office space with the best available technological
specification and fit-out, a major requirement for an occupier
such as BP's Integrated Supply and Trading division."
CONTACT: CANARY WHARF GROUP PLC
Wendy Timmons
Phone: 020 7537 5025
INTEGRATED SUPPLY AND TRADING
Lucy Almond
Phone: 020 7579 7949
BP
Wendy Silcock
Phone: 020 7496 4076
CANARY WHARF: Brascan Confirms Asset Sale Plan
----------------------------------------------
Brascan plans to sell buildings in Canary Wharf if it
successfully buys the Docklands estate, the Financial Times
said, citing documents detailing the proposal.
To recall, Paul Reichmann, founder and former executive chairman
of Canary Wharf, backed Brascan's 275p a share offer over rival
Morgan Stanley because the U.S. group's plans included selling
buildings, the report said. Brascan is offering GBP1.6 billion
for Canary Wharf, including debt. To repay the acquired
obligations, it plans to undertake targeted property sales or
sales of partial interests in the company's properties. It
assured that "such transactions will be undertaken in a manner
that seeks to maximize both sale proceeds and the value of the
remaining property portfolio."
CANARY WHARF: CWG Denies Lowering Bid Threshold
-----------------------------------------------
CWG Acquisition notes the report in the Financial Times of
February 26, 2004 that CWG Acquisition would consider lowering
the 75% threshold(s) required for the Share Alternatives to its
Offer to be made available.
At the request of the Panel on Takeovers and Mergers, CWG
Acquisition wishes to clarify that, as set out in its Offer
Document, the Share Alternatives and Additional Share Election
Facilities remain subject to valid acceptances being received
which, when aggregated with any Canary Wharf Shares held by CWG
Acquisition and any further Canary Wharf Shares that CWG
Acquisition has contracted to acquire, together amount to at
least 75% of Canary Wharf's issued share capital (diluted to
include shares potentially issuable pursuant to rights under the
Canary Wharf Share Schemes).
The Share Alternatives and Additional Share Election Facilities
also remain subject to the other conditions as set out in the
CWG Acquisition Offer Document. No decision has been made by
CWG Acquisition with respect to the modification or waiver of
the conditions attaching to the Share Alternatives and
Additional Share Election Facilities and there can be no
certainty that any decision to lower the 75% threshold(s)
required for either or both of the Share Alternatives and/or
either or both of the Additional Share Election Facilities will
be made.
Terms used in this announcement have the same meaning as in the
Offer Document dated February 24, 2004.
CONTACT: CANARY WHARF CWG
Brascan
Katherine Vyse
Phone: +1 (416) 363 9491
DEUTSCHE BANK
Debbie Robertson-Bond
David Church
James Agnew
Phone: +44 (0) 20 7545 8000
MERRILL LYNCH INTERNATIONAL
Kevin J. Smith
Michael Profenius
Mark Brooker
Phone: +44 (0) 20 7628 1000
THE MAITLAND CONSULTANCY
Angus Maitland
Philip Gawith
Martin Leeburn
Phone: +44 (0) 20 7379 5151
CHARTER PLC: Sells Interest in GCE Gas Control Equipment
--------------------------------------------------------
The Board of Charter plc is pleased to announce the completion
of the sale of its 50% interest in GCE Gas Control Equipment AB
to Triton for an initial cash purchase consideration of SEK193
million (GBP14 million) received. The consideration is subject
to adjustment based on the audited net asset value of GCE as at
December 31, 2003.
*****
Charter plc recently announced that its pre-tax profit decreased
from GBP3.8 million for the year ended December 31, 2003 from
GBP12 million the prior year. Net debt is down to GBP136.8
million from GBP194.0 million. David Gawler, Chairman and Chief
Executive, attributed the improvement to restructuring
initiatives implemented since 2001 and some recovery in key
markets.
CONTACT: CHARTER PLC
Andrew Fenwick
Pamela Small, Brunswick
Phone: +44 (0) 20 7404 5959
DANTHERM HMS: Appoints Liquidator from Numerica
-----------------------------------------------
At an Extraordinary General Meeting of the Dantherm HMS Limited
Company on February 9, 2004 at the Ostertor 6, DK 7800, Skive,
the subjoined Special Resolution to wind up the Company was
passed.
Colin Ian Vickers, Licensed Insolvency Practitioner and
Christopher Herron, Licensed Insolvency Practitioner, both of
Numerica, 4th Floor, Southfield House, 11 Liverpool Gardens,
Worthing, West Sussex and 56 Dingwall Road, Croydon CR0 0HQ,
were appointed Liquidator for the Company.
Creditors are required to send in their full names, their
address and description, full particulars of their debts or
claims of the Company on or before March 24, 2004 to the
Liquidators.
CONTACT: NUMERICA
4th Floor
Southfield House
11 Liverpool Gardens,
Worthing, West Sussex
Phone: 01903 222500
NUMERICA
56 Dingwall Road,
Croydon CR0 0HQ
Contact:
Colin Ian Vickers, Liquidator
Christopher Herron, Liquidator
Phone: 020 8681 8389
Web site: http://www.numerica.biz
Company Address: 2 Nightingales
Cotford St Luke
Taunton, Somerset TA4 1JJ
Phone: 01823433945
EUROTUNNEL PLC: Directors Campaign for Galaxi Project Support
-------------------------------------------------------------
Non-executive directors of Eurotunnel advised investors they
should back management plans for a financial rescue and vote
down proposals from rebel shareholders to save the company.
Eurotunnel is planning to implement its Galaxi Project to pare
down its EUR9 billion (GBP6.4 billion) debt. But rebel
shareholders led by financial journalist Nicolas Miguet are
opposed to the program.
Last week, the Eurotunnel board warned in an open letter to
investors: "They run the severe risk of leading the company into
an extremely difficult situation which could well result in
shareholders losing their entire investment."
The non-executive board said: "The Galaxie project is the
product of more than a year of discussion and work with the
board. It tackles, simultaneously, the company's three
fundamental problems: namely the fact we are funded entirely by
private investment, the excessive level of debt and insufficient
traffic from the rail operators."
Eurotunnel, which reported full-year loss of GBP1.33 billion,
needed to cut down its debt by at least GBP2 billion in order to
survive. The principal part of its debt matures in 2005-2006.
FYLDE MECHANICAL: Appoints KPMG Administrator
---------------------------------------------
Name of Company: Fylde Mechanical & Electrical Services Limited
Nature of Business: Plumbing and Ventilation Contractors
Trade Classification: 45340
Date of Appointment: February 12, 2004
Joint Administrative Receiver: KPMG
St James Square
Manchester M2 6DS
Receivers:
Paul Flint
Brian Green
(IP Nos 9075, 8709)
FORTNUM & MASON: Records 5th Profit Slide in Eight Years
--------------------------------------------------------
Grocer Fortnum & Mason reported a 40% drop in profits, the fifth
fall in eight years, recently. Earnings in the company reached
GBP3.6 million during their peak in 1997.
The company blamed the war in Iraq and the failure of its trade
shows to pick up for the difficulties, but analysts say its old-
fashion image was to be accounted for its irreversible losses.
Pre-tax profits fell to GBP638,000 in the year to 13 July.
Sales were GBP39.35 million, down slightly from GBP40.03 million
in the previous year.
In a statement the company said it expects market conditions to
remain challenging during the coming financial year. The store
is owned by Canadian Weston family.
HOLLINGER INTERNATIONAL: Wins Court Case Against Lord Black
-----------------------------------------------------------
A Delaware judge issued an injunction blocking ousted Hollinger
International chief executive Conrad Block from selling his
majority stake in Hollinger Inc., which controls Hollinger
International.
According to Bloomberg, Vice Chancellor Leo Strine wrote in his
decision that Black "has repeatedly behaved in a manner
inconsistent with the duty of loyalty he owed the company."
He wrote further, "his conduct threatens grave injury to
International and its stockholders by depriving them of the
benefits that might flow."
Mr. Black, who was ousted in November after the discovery of a
US$32 million unauthorized payments to him and other top
executives, wants to sell his stake in Hollinger Inc. to tycoons
David and Frederick Barclay.
He is being separately sued for more than US$200 million in
relation to the misconduct.
Hollinger International owns the Daily Telegraph, the Chicago
Sun-Times and the Jerusalem Post.
INTEGRATED NETWORKS: Calls in Liquidators
-----------------------------------------
At the Extraordinary General Meeting of the Integrated Networks
Limited Company, on February 10, 2004, the subjoined Special
Resolutions to wind up these Companies were passed.
Tim Walsh and Richard Setchim of PricewaterhouseCoopers LLP, One
Kingsway, Cardiff, are appointed Joint Liquidators of the
Companies.
CONTACT: PRICEWATERHOUSECOOPERS LLP
One Kingsway
Cardiff CF10 3PW
United Kingdom
Contact:
Tim Walsh, Liquidator
Richard Setchim, Liquidator
Phone: (44) (29) 2023 7000
Fax: (44) (29) 2080 2400, 2404 (VAT)
Web site: http://www.pwcglobal.com
INVENSYS PLC: To Accelerate U.S. Pension Plan Contribution
----------------------------------------------------------
Invensys plc announces that it has reached agreement with the
U.S. Pension Benefit Guaranty Corporation (PBGC) regarding the
Group's U.S. defined benefit pension plan (the U.S. plan),
conditional on the closing of Invensys' previously announced
refinancing.
The agreement provides for the acceleration of contributions to
the U.S. Plan totaling $150 million over the next three months,
plus additional contributions of 4% of net proceeds from future
disposals. The obligation to make additional contributions
requires a minimum payment of $25 million to be paid within the
next six months (out of disposal proceeds or otherwise), and
applies over no longer than a five-year period, until an agreed
maximum level of funding of the U.S. plan is attained.
Invensys will continue to pay annual service costs to the U.S.
plan, but the accelerated contributions will reduce the
previously expected peak-funding requirement of $203 million to
the U.S. plan in financial year 2007 to a level similar to prior
years' service costs of approximately $22 million per annum.
These contributions are within the amounts provided for by the
Group when establishing the escrow amount to be set up as part
of the refinancing plan, in order to fund certain identified
legacy liabilities, including pensions.
Commenting on the agreement, CEO Rick Haythornthwaite said:
"As part of the refinancing plan we were mindful that the
uncertainty surrounding the Group's legacy liabilities needed to
be removed as soon as possible so as to allow the Group to focus
on its core businesses. The escrow account gives us the
flexibility to fund these liabilities and this agreement with
the PBGC is a further welcome step in dealing with these legacy
issues."
CONTACT: INVENSYS PLC
Victoria Scarth
Mike Davies
Phone: +44 (0) 20 7821 2121
Brunswick
Nick Claydon
Ben Brewerton
Phone: +44 (0) 20 7404 5959
INVESTEC EXTRA: Concluding Assembly Set March 30
------------------------------------------------
The Final Meeting of Members of the Investec Extra Income Trust
PLC Company will be on March 30, 2004 at 11:00 a.m. It will be
held at the offices of PricewaterhouseCoopers LLP, Plumtree
Court, London EC4A 4HT.
The purpose of the meeting is to present the account before the
Members how the winding-up and the Company's property were
disposed of.
MARCONI CORPORATION: Receives EUR5.7 Mln from GDA Disposal
----------------------------------------------------------
Marconi Corporation plc (London: MONI and Nasdaq:MRCIY)
announces that it has received EUR5.7 million (approximately
GBP3.8 million), which represents deferred consideration from
the previously announced sale of its holding in General Domestic
Appliances Holdings Limited to Merloni Elettrodomestici S.p.A.
in March 2002. The cash proceeds will be paid into the
Mandatory Redemption Escrow Account and will be used, in due
course, to fund a further partial redemption of the Group's
Senior Secured Notes.
About Marconi Corporation plc
Marconi Corporation plc is a global telecommunications
equipment, services and solutions company. The company's core
business is the provision of innovative and reliable optical
networks, broadband routing and switching and broadband access
technologies and services. The company's customer base includes
many of the world's largest telecommunications operators. The
company is listed on the London Stock Exchange under the symbol
MONI and on NASDAQ under the ticker MRCIY. Additional
information about Marconi Corporation can be found at
http://www.marconi.com
CONTACT: MARCONI CORPORATION PLC
Press Inquiries
Joe Kelly
Phone: +44 207 306 1771
E-mail: joe.kelly@marconi.com
David Beck
Phone: +44 207 306 1490
E-mail: david.beck@marconi.com
Investor Inquiries:
Heather Green
Phone: + 44 207 306 1735
E-mail: heather.green@marconi.com
MICOM COMMUNICATIONS: Appoints Liquidator
-----------------------------------------
At the Extraordinary General Meeting of the Micom Communications
Corp. (Europe) Limited Company, on February 10, 2004, the
subjoined Special Resolutions to wind up these Companies were
passed.
Tim Walsh and Richard Setchim of PricewaterhouseCoopers LLP, One
Kingsway, Cardiff, are appointed Joint Liquidators of the
Companies.
CONTACT: PRICEWATERHOUSECOOPERS LLP
One Kingsway
Cardiff CF10 3PW
United Kingdom
Contact:
Tim Walsh, Liquidator
Richard Setchim, Liquidator
Phone: (44) (29) 2023 7000
Fax: (44) (29) 2080 2400, 2404 (VAT)
Web site: http://www.pwcglobal.com
MYTRAVEL GROUP: To Appoint Michael Beckett Chairman
---------------------------------------------------
MyTravel Group plc announces that it intends to appoint Michael
Beckett as non-executive chairman, to succeed Eric Sanderson,
who will retire at the conclusion of the annual general meeting
on March 22, 2004.
Eric Sanderson said: "I assumed the chairmanship at a time of
considerable difficulty for the company. Over the past year,
however, we have successfully extended the maturity of our debt
facilities and convertible bonds and have made disposals of non-
core businesses. The new management team has also implemented
numerous measures to bring the business under much better
control and to improve its performance. It is now appropriate
for a new chairman to take the company through the company's
next stage, which will involve restoring the balance sheet. I
would like to wish Michael Beckett every success as chairman."
MyTravel chief executive Peter McHugh said: "I am grateful to
Eric for the support he has given me since I became chief
executive. The Board appreciates his long service as a non-
executive director, and particularly everything he has done for
the company in an exceptionally difficult year as chairman. We
wish him well for the future. I am delighted that Michael
Beckett is joining us as chairman. He will bring to the
position a wealth of experience."
Michael Beckett said: "I am looking forward enormously to
joining MyTravel as chairman. I am well aware of the challenges
facing the business but I am confident we can succeed as the
turnaround is well under way."
CONTACT: MYTRAVEL GROUP
Brunswick
Sophie Fitton
William Cullum
Phone: 020 7404 5959
NETWORK RAIL: SRA Essential Supporter of MTN Program, Says S&P
--------------------------------------------------------------
The U.K.-based Strategic Rail Authority (SRA; AAA/Stable/A-1+)
will play an essential role supporting the proposed GBP10
billion medium-term note program (MTN) to be issued by Network
Rail MTN Finance PLC, said Standard & Poor's Ratings Services
(see "Presale: Network Rail MTN Finance PLC", published on Feb.
26, 2004, on RatingsDirect, Standard & Poor's Web-based credit
analysis system).
"The SRA is the sole provider of credit support for the MTN
program, and it therefore has certain contractual obligations
under a MTN support facility agreement and a direct agreement
with Network Rail MTN Finance," said Standard & Poor's Public
Finance credit analyst Craig Jamieson. "This means that the
SRA's credit quality will be a significant factor for that of
the MTN program." The MTN support facility comprises a
revolving facility available on five business days' notice and a
stand-by facility available on 60 days' notice.
An SRA-related event of default, such as the SRA's insolvency or
it ceasing to be a U.K. government department or entity directly
wholly owned by a U.K. government department, allows the
security trustee to exercise a put option for the amount
outstanding under the program (including interest, principal,
and hedge costs) to the SRA. The put option is exercisable on a
same-day basis. There is also a corresponding "call option"
that can be exercised by the SRA in similar circumstances as the
put option if the put option is not exercised. Where there is a
program termination event (broadly, a default other than a SRA-
related default), the SRA may elect to continue paying scheduled
note and hedge payments.
Alternatively, it may accelerate the notes under the put option
on 60 days' notice to coincide with the availability of the
standby facility.
Standard & Poor's ratings on the SRA remain unchanged despite
the government's announcement of potential industry
restructuring on January 19, 2004. Standard & Poor's
understands that the SRA's financial obligations will continue
to have the full backing of the U.K. sovereign (AAA/Stable/A-1+;
see "U.K. Rail Industry Review Signals Potential Change
for the SRA--But No Immediate Credit Impact", published on
January 20, 2004, on RatingsDirect). The SRA is a non-
departmental public body responsible for setting strategy and
supporting the U.K. rail system.
The Secretary of State for Transport will issue a comfort letter
to support the SRA's obligations under the MTN program.
Although this letter is not legally binding, it is indicative of
the level of government support for the SRA. It is in
substantially the same form as the comfort letter supporting
Network Rail CP Finance PLC (commercial paper A-1+).
CONTACT: STANDARD AND POOR'S RATING SERVICES
Analyst E-Mail Addresses
craig_jamieson@standardandpoors.com
adele_archer@standardandpoors.com
PublicFinanceEurope@standardandpoors.com
NETWORK RAIL: SRA's Support Merits 'AAA' for MTN Program
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
'AAA' rating to the proposed MTN program to be issued by U.K.-
based special-purpose company Network Rail MTN Finance PLC (the
MTN Issuer).
The preliminary rating assigned to the program is based on the
credit enhancement provided by the Strategic Rail Authority
(SRA; AAA/Stable/A-1+) and its ability to meet its contractual
obligations in a timely manner in all circumstances through the
SRA facility in the form of a term loan facility, the MTN
Support Facility (MTNSF), of up to GBP10 billion ($18.7 billion)
and a direct agreement.
The final rating is contingent on the execution of the MTN
letter of comfort from the Secretary of State for Transport and
the receipt of final executed financing documentation, legal,
and tax opinions, all in satisfactory form. Standard & Poor's
Ratings Services understands that the letter of comfort is
expected to be signed on March 3, 2004. Subsequent information
may result in the assignment of final credit ratings that differ
from the preliminary credit ratings.
The proceeds of the MTNs will be on lent to Network Rail
Infrastructure Ltd. under inter-company loan arrangements. The
MTNs have a maximum term of up to March 31, 2009.
If the MTN Issuer is unable to meet maturing MTN liabilities
from the proceeds of the inter-company loan made to NRIL, it
will have access to the MTNSF for up to GBP10 billion. In order
to redeem the MTN program on maturity, the MTN Issuer can draw
up to GBP10 billion plus certain other costs from the MTNSF
within 60 days' notice.
"A key factor supporting the rating is the SRA's ability to fund
potentially significant amounts of maturing notes on a timely
basis and outstanding amounts (principal and others) under the
program," said Standard & Poor's Infrastructure Finance credit
analyst Magdalena Richardson. The funds will come from a
combination of the authority's own liquidity or funds available
at the Department of Transport.
CONTACT: STANDARD AND POOR'S RATINGS SERVICES
Analyst E-Mail Addresses
magdalena_richardson@standardandpoors.com
craig_jamieson@standardandpoors.com
mike_wilkins@standardandpoors.com
InfrastructureEurope@standardandpoors.com
NORTEL NETWORKS: Names Walsh and Setchim Liquidators
----------------------------------------------------
At the Extraordinary General Meeting of the Nortel Networks
London Limited Company, on February 10, 2004, the subjoined
Special Resolutions to wind up these Companies were passed.
Tim Walsh and Richard Setchim of PricewaterhouseCoopers LLP, One
Kingsway, Cardiff, are appointed Joint Liquidators of the
Companies.
CONTACT: PRICEWATERHOUSECOOPERS LLP
One Kingsway
Cardiff CF10 3PW
United Kingdom
Contact:
Tim Walsh, Liquidator
Richard Setchim, Liquidator
Phone: (44) (29) 2023 7000
Fax: (44) (29) 2080 2400, 2404 (VAT)
Web site: http://www.pwcglobal.com
PARMALAT FOOD: Names PricewaterhouseCoopers Administrator
---------------------------------------------------------
Name of Company: Parmalat Food Holdings (U.K.) Limited
(t/a Parmalat)
(formerly Newcivil Limited)
Reg No 3288239
Nature of Business: Manufacture of Food
In the early 1970's a Research Center was formed at Parmalat's
headquarters in Collecchio. At the time the company had only a
few hundred employees-since then the research center has served
as a base for the company's rapid expansion. Parmalat was
founded as an innovative company and research has always been a
fundamental pillar in the company's development.
Trade Classification: 04
Date of Appointment: February 16, 2004
Administrator: PRICEWATERHOUSECOOPERS LLP
Plumtree Court,
London EC4A 4HT
Contact:
M J A Jervis, Joint Administrator
D G L Hargrave, Joint Administrator
(Office Holder Nos 1185, 101127)
PRICEWATERHOUSECOOPERS LLP
101 Barbirolli Square,
Lower Mosley Street,
Manchester M2 3PW
Contact:
M Horrocks, Joint Administrator
(Office Holder No 1017)
Web site: http://www.parmalat.com
ROYAL MAIL: Autumn Strikes Likely Affected 3rd Qtr Reliability
--------------------------------------------------------------
Royal Mail that year-end service quality targets were unlikely
to be achieved following industrial action during the autumn.
Letter reliability in the third quarter of the financial year --
from October to December -- fell from the record levels achieved
earlier in 2003.
Chief Executive Adam Crozier said: "Our customers have suffered
as a result of the industrial action in some parts of the U.K.
in the autumn and I greatly regret that. But since then we have
made a major step forward, gaining the backing of our postmen
and women for a new deal on pay and change in the company worth
14.5% over 18 months."
But Mr. Crozier made clear that customers would continue to see
some impact on quality of service due to the implementation of
changes to the network.
"The pay agreement we've reached with our people is a vital
foundation stone for going forward to complete our recovery
plan. We can now get on with things. However the
implementation of changes has been delayed so we are now
catching up, working at a faster pace to a more demanding
timescale," he said.
"Our people are doing an outstanding job putting changes in
place. But the unprecedented pace of change within Royal Mail's
network makes sustaining high levels of customer service more
challenging.
"In January we made the single biggest change we've ever made to
our transport and distribution networks. We're also changing
delivery patterns in our 1,500 local offices. This means we
won't get services back to normal as quickly as we would
normally after last year's disruption. We expect this to have
some impact on the final quarter's figures. I apologize to our
customers if their services don't hit targets while we complete
these changes.
"But we don't make changes lightly and the truth is that change
is necessary to put us in a position where we can consistently
meet-and exceed-our regulatory targets. That will be a
significant improvement for customers and that's what I'm
committed to."
Royal Mail has published letter reliability results for the
third quarter (October - December) which show that quality of
service for First Class mail fell to 84.9% during the period,
much of the fall due to the widespread effect of strikes which
disrupted mail right across the country even though the majority
of postmen and women continued to work normally. This reduced
cumulative performance to 90.3%, against a target of 92.5%.
Cumulative performance for Second Class mail fell by one per
cent to 97.6%, against its target of 98.5%.
In the first half of the year (April- September) Royal Mail's
First Class service showed its strongest ever performance,
reaching 92.75%, with Second Class mail at 98.7%, both ahead of
targets.
CONTACT: ROYAL MAIL
148 Old Street
London
EC1V 9HQ
Web site: http://www.royalmail.com
TRINITY MIRROR: Restructuring Props Profit by 11.5%
---------------------------------------------------
Trinity Mirror plc announces the Group's preliminary results for
the 52 weeks ended December 28, 2003.
Operational highlights
(a) "Stabilize Revitalize Grow" strategy to improve performance
and enhance shareholder value delivering ahead of expectations
(b) Strong performance in uncertain and challenging market
conditions: Group operating profit(1) and earnings per share,
before exceptional items, up 11.5% and 10.8% respectively
(c) Operating margin(1) before exceptional items increased from
17.6% to 19.4% with Regionals division including Digital Media
improving operating margin from 21.9% to 23.6% and Nationals
division improving operating margin from 15.7% to 17.4%
(d) Cost savings of GBP5.0 million achieved in 2003 from Chief
Executive's review, incremental savings of GBP18.0 million
targeted in 2004 (increased from GBP16.0 million) with
annualized savings target for 2005 increased to GBP30.0 million
(from GBP25 million). These are in addition to gross
incremental cost savings of GBP9.2 million from previous cost
reduction plans
(e) Disposal of titles in Ireland completed on January 15, 2004
(f) Dividends increased by 4.0% to 18.3p per share
(g) Net debt reduced by GBP61.0 million from GBP666.1 million to
GBP605.1 million
Financial highlights
Like-for-like(1) (pre exceptional items(2)) Actual (post
exceptional items(2) )
2003 2002(3) % 2003 2002(3) %
GBPm GBPm Change GBPm GBPm
Change
Turnover 1,095.0 1,082.3 1.2% 1,095.1 1,089.3 0.5%
Group 212.5 190.5 11.5% 100.5 59.8 68.1%
operating
profit
Profit 172.5 155.5 10.9% 60.6 26.2 131.3%
before tax
Earnings/ 41.1p 37.1p 10.8% 4.6p (6.6)p 169.7%
(loss)
per share
Proposed 12.8p 12.3p 4.1%
final
dividend
per
share
Total 18.3p 17.6p 4.0%
dividends
per share
Net debt 605.1 666.1
(a) Turnover and operating profit adjusted to exclude the
results of Post Publications Limited and Ethnic Media Group
Limited which were disposed of in June 2002, Channel One which
ceased trading in November 2002 and Wheatley Dyson & Son Limited
which was disposed of in February 2003. During the 52 weeks
ended December 28, 2003 these businesses achieved turnover of
GBP0.1 million (2002: GBP7.0 million) and operating profit of
GBPnil (2003: GBP0.5 million)
(b) Group operating exceptional items of GBP112.0 million (2002:
GBP131.2 million) include a GBP100.0 million (2002: GBP125.0
million) impairment charge against the carrying value of the
publishing rights and titles of the Regional titles in London
and the South East (2002: Midlands). Total exceptional items
before tax of GBP111.9 million (2002: GBP129.3 million), and
after tax of GBP106.7 million (2002: GBP127.5 million), also
include the net profit on the disposal of subsidiary
undertakings and, in 2002, the Group's share of associate's non
operating exceptional items
(c) Turnover has been restated to reflect Arrow Interactive
revenues net of commissions payable to third parties. This
change in accounting policy has no impact on the Group operating
profit for 2003 or 2002
Sir Victor Blank, Chairman of Trinity Mirror plc, commented:
"Our 2003 figures represent the results of less than a full
year's efforts by our new management team. They mark the first
tangible signs of achievement in businesses that have drive,
fresh thinking and renewed commitment. We are very pleased to
have been able to achieve this transformation while
simultaneously driving improved performance and delivery."
Sly Bailey, Chief Executive, Trinity Mirror plc commented:
"The changes made during this year have delivered a performance
ahead of expectations. 2003 represents the best year on year
profit improvement for the Group since the merger in 1999 and
sets the benchmark for further value creating performance for
enhancing shareholder value.
"While there is still much work to be done, we are now
significantly progressed on the first phase of our three phase
transformation program
"Stabilize Revitalize Grow" and the team is focused on
continuing the pace of change which has been apparent in 2003."
CONTACT: TRINITY MIRROR PLC
Sly Bailey, Chief Executive
Vijay Vaghela, Group Finance Director
Nick Fullagar, Director of Corporate Communications
Phone: 020 7293 3000
FINSBURY
Rupert Younger
James Leviton
Phone: 020 7251 3801
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S U B S C R I P T I O N I N F O R M A T I O N
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Copyright 2004. All rights reserved. ISSN 1529-2754.
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