December 2016 Credit Management magazine

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CORPORATE INSOLVENCIES RISE AFTER BREXIT A post-Brexit bounce in the number of companies throwing in the towel has been reported by the Insolvency Service (IS) in its latest quarterly figures. An estimated 3,633 companies failed during the third quarter of 2016, a two percent rise on the previous quarter. Published at the end of October, official statistics show that a trend in case numbers has been fairly flat for the past year, having decreased from mid-2011 to mid-2015. The figures also show that an estimated 2,569 companies entered a creditors’ voluntary liquidation in the third quarter; a 5.2 percent rise on the previous quarter and a 2.2 percent year-on-year rise. The IS said these figures are in line with a fairly stable trend observed over the past two years.The figures also show a fairly benign context around compulsory liquidations compared to the recent past. A total of 632 companies were subject to compulsory liquidation between July and September, a 4.5 percent decrease on the previous quarter but 2.4 percent higher than the same period in 2015. Other types of company insolvency also remained in line with medium-term trends. There were an estimated 352 administrations, an increase of 3.5 percent compared to the previous quarter and 0.6 percent higher than the same quarter in 2015. There were an estimated 75 company voluntary arrangements and five administrative receiverships. The liquidation rate was at its lowest level since comparable records began. Andrew Tate, President of R3, says a quarterly rise in corporate insolvency numbers, however, is not necessarily an indicator of Brexit -related financial problems for UK companies:“According to R3 research, UK companies remain in good shape,” he says. “Only 21 percent of businesses – close to a record low – surveyed in our most recent Business Distress Index report a key indicator of distress, while 62 percent report at least one sign of growth. “So long as the economy continues to grow steadily insolvency numbers are unlikely to rise too much, but, of course, that all depends on what impact Brexit has on the economy.” gov.uk/government/organisations/ insolvency-service INTRUM JUSTITIA ACQUIRES 1ST CREDIT EUROPEAN credit management services group Intrum Justitia is to acquire UK debt purchaser 1st Credit from private equity firm Bridgepoint for £130 million, subject to regulatory consent. Headquartered in Reigate, 1st Credit was acquired by Bridgepoint in 2004. It has over 100,000 customers and arrangements of more than £300 million. In 2015 it increased collections revenue by 18 percent to £50.1 million and reported EBITDA of £33.2 million, up from £27.3 million in 2014. The company holds a position on all major debt purchase panels in the UK. Intrum Justitia, which is listed on the Stockholm Nasdaq, has more than 90 years of experience, 19 offices across Europe and an international network covering 160 additional countries. Mikael Ericson, President and CEO of Intrum Justitia AB, says acquiring 1st Credit will strengthen its ability to service clients in the financial industry: “The UK market is one of the largest and most developed in Europe. With 1st Credit, we acquire a strong unit with a solid organisation which we believe can grow into one of the market leaders in the UK in the coming years.” Intrum intends to retain the existing UK management team, led by Chairman Leith Robertson and Chief Executive Eddie Nott. intrum.com 1stcredit.com FIRST WINNER OF JEREMY CHAPLIN AWARD AMIR Ali has become the first winner of the Jeremy Chaplin Memorial Award, an award established in Jeremy’s memory to recognize and acknowledge the hard work and contribution from an individual within the Industry. Amir, a regular columnist in Credit Management, received the award from the President of the Civil Court Users’ Association (CCUA), Lord David Hacking at the CCUA Annual Conference. Lord David said that Amir had been unanimously chosen for his exemplary work as acting Chair of the CCUA, following Jeremy’s passing, and before he was officially elected as Chair of the Association at last year’s AGM. ccua.org.uk Pictured from left to right: Brian Havercroft, Honorary Vice President of the CCUA and Chair of the Judging Panel for the Jeremy Chaplin Memorial Award; Angela Chaplin, Jeremy’s widow; Amir Ali; and Lord David Hacking. 8 December 2016 www.cicm.com The recognised standard
News in Numbers – provided by the Money Charity THE.news . IN NUMBERS £1,036 trillion ANNUAL GROWTH IN PRIVATE DEBT FOR UK ADULTS £108 MILLION AVERAGE GOVERNMENT DEBT GROWTH FOR EACH DAY IN SEPTEMBER 2016 (£4,090 PER SECOND) £4.7 billion TOTAL NET LENDING TO INDIVIDUALS BY UK BANKS AND BUILDING SOCIETIES ROSE IN SEPTEMBER 2016 6.723 MILLION £188.7 billion OUTSTANDING CONSUMER CREDIT LENDING AT THE END OF SEPTEMBER 2016 4,077 new debt PROBLEMS EVERY DAY DURING THE QUARTER ENDING JUNE 2016 ACCORDING TO CITIZENS ADVICE BUREAU £1.315 trillion outstanding MORTGAGE LENDING AT THE END OF SEPTEMBER 2016 employees JOINED A PENSION SCHEME UNDER AUTO-ENROLMENT BY THE END OF SEPTEMBER 2016 £231,843 cost OF RAISING A CHILD TO THEIR 21ST BIRTHDAY ACCORDING TO LV’S ‘COST OF A CHILD’ REPORT CCJS ON THE RISE CICM NEWS CONSUMERS in England and Wales are facing a decade-high level in the number of County Court Judgments (CCJs), according to figures released by the Registry Trust. There was a year-on-year increase nearing 50 percent in the third quarter of 2016, with more than a quarter of a million (256,847) judgments registered against consumers in England and Wales. The average value of a CCJ, however, fell 11 percent to £1,642, the lowest third quarter figure in the past decade. By contrast the average value of a judgment in Q3 2008 stood at £3,680. Over the same period, the number of judgments against consumers in the High Court fell for the third year in a row to 62, the lowest number on record. The total value increased sharply by 90 percent to £68.3 million, with the average value rising to a decade high of £1.1 million. The total value of debt judgments against consumers in all courts in England and Wales during Q3 2016 was £490 million. “The rise and rise in the number of judgments is a matter for serious concern,” says the Registry Trust’s Chairman, Malcolm Hurlston CBE: “One factor may well be that claimants are finding it worthwhile to sue for smaller sums. But people face not only lenders and utilities which use the county courts but also local authorities and HMRC who have their own approaches. “It becomes ever more important for people who can to satisfy judgments, either within a month, in which case they may be removed, or soon after when the satisfaction record will look good on the credit score.” registry-trust.org.uk FCA ON A MISSION THE Financial Conduct Authority (FCA) has launched a consultation on its mission, designed to provide a guiding set of principles around the strategic choices the FCA makes. It will inform the FCA’s strategy and day-today work over the coming years. The intention of the mission is to provide clarity over the objectives, the methods to allow it to focus its efforts in the right places as well as explaining the reasoning behind the work the FCA does, and a framework on how it chooses the tools it uses to do it. In developing the mission, the FCA will be seeking engagement across the breadth of its stakeholders. Consultation will have a fundamental impact on the shape of the final strategy. Andrew Bailey, Chief Executive of the FCA, says establishing and embedding a clear mission for the FCA is critical to its success: “The mission will only be a success if our stakeholders engage with us through this consultation process. We want this to be a very open process. Out of it, we hope that we can set out a clear path ahead for financial conduct regulation in the UK.” fca.org.uk FECMA APPOINTMENTS Glen Bullivant FCICM has stood down as President of FECMA (Federation of European Credit Management Associations) after three successful terms in office. The new elected board are: President – Josef Busuttil, Malta Association of Credit Management; Vice President – Ludo Theunissen, Instituut voor Kredietmanagement, Belgium; Vice President – Philip King FCICM, Chartered Institute of Credit Management; and Treasurer – Jan Schneider Maessen, Bundesverband Credit Management e.V., Germany. The recognised standard www.cicm.com December 2016 9
Page 1 and 2: CREDIT MANAGEMENT THE CICM MAGAZINE
Page 3 and 4: CONTENTS DECEMBER 2016 www.cicm.com
Page 5 and 6: Hoist Finance. Season’s greetings
Page 7: NEWS IN BRIEF MANUFACTURING DRIVES
Page 11 and 12: BACK TO BLACK IVAS AND RPBS In resp
Page 13 and 14: OPINION TOMORROW’S CICM Philip Ki
Page 15 and 16: INTERNAL AND EXTERNAL RECOGNITION A
Page 17 and 18: The biggest weapon in the armoury,
Page 19 and 20: Now is the time when employers in c
Page 21 and 22: INTERVIEW WILDE AT HEART Sean Feast
Page 23 and 24: ‘‘What we offer is not for ever
Page 25 and 26: THE RECOGNISED STANDARD CICM Britis
Page 27 and 28: We want to build the financial capi
Page 29 and 30: TRADE TALK So the multi-layer impac
Page 31 and 32: HEDGING YOUR BETS NISSAN seems to b
Page 33 and 34: the ice Despite the controversies,
Page 35 and 36: The recognised standard www.cicm.co
Page 37 and 38: WEBSEND 4 IN SUMMARY eBilling and D
Page 39 and 40: Although there is much debate over
Page 41 and 42: ASK THE EXPERTS LINES OF COMMUNICAT
Page 43 and 44: Sector Getting Better Getting Worse
Page 45 and 46: EDUCATION GRADUATE STARS Debbie Tuc
Page 47 and 48: ‘‘ Below eight credit professio
Page 49 and 50: THE CICM MAGAZINE FOR CONSUMER AND
Page 51 and 52: The recognised standard For further
Page 53 and 54: NEW CICM MEMBERS THE INSTITUTE WELC
Page 55 and 56: BRANCH NEWS SOUTH WALES BRANCH COLL
Page 57 and 58: CREDIT MANAGER DRIVE BUSINESS TARGE
Page 59 and 60:
Cr£ditWho? CICM Directory of Servi
Page 61 and 62:
Cr£ditWho? CICM Directory of Servi
Page 63 and 64:
CREDIT MANAGEMENT CM MONTHLY PRIZE
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December 2016 Credit Management magazine

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