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Mark Cleaver, chief executive – Europe, Bibby Financial Services Group, commented: “We have set ourselves a challenging growth objective. In order to achieve this we are continually looking for opportunities to move the business forward. We believe that this acquisition will bring real value to this group. We are delighted that Thomas Gustafsson and his team have chosen to join the Bibby Financial Services Group and as such be part of our success”. Thomas Gustafsson, managing director of
Kopparberg Finans, added: “We are delighted to be joining the Bibby Financial Services Group. We have looked at the innovative way they have grown their business in recent years. They are recognised in the market as a leading contender and we are excited to be part of that.”
Demand improves for UK-made goods, but output growth expected to ease – CBI
DEMAND for UK-made goods improved in November, compared with the previous month, the CBI said. But manufacturers also expect prices to rise faster in the next three months, and predict slower growth in manufacturing output. The UK’s leading business group said total and export order books improved relative to October, although they were still considered to be below normal.
Responding to the latest monthly Industrial
Trends Survey, 21% of manufacturers said that total orders were above normal and 36% said they were below. The resulting balance of -15% is considerably better than last month (-28%) and slightly better than the survey’s long-run average (-18%). The figure marks a return to the level of demand seen during the summer months. Firms also reported that export order books were better than in October, even though they were still considered below normal. In November, 22% of companies said they were above normal and 29% below normal. The resulting balance of -7% is up on -21% in October, and above the long-run average (-22%).
Manufacturers expect modest growth in output in the next three months. In November’s
survey, 26% predict output will rise, compared with 22% expecting it will fall. The resulting balance of +4 is down on previous months, and the weakest figure since January. However, this figure is broadly in line with the long-run average of +5%. Partly reflecting recent rises in oil and other commodity prices, inflationary pressures have intensified for UK manufacturers in the November survey. A balance of +17% of firms expect to raise prices in the next three months, following +6% in the previous survey, but this is more in line with the expectations seen in September (+15%). Ian McCafferty, CBI chief economic adviser, said: “Manufacturing demand improved in November, following October’s more negative figures for total and export orders. Demand is now back in line with that over the summer months, suggesting that particularly weak order book readings last month may have been a one-off. “Factory output is still set to rise, albeit with modest expectations for growth compared with recent months, as the boost from re-stocking starts to fade.
“Inflationary pressures are a concern, with companies saying they will be increasingly forced to pass on at least part of their rising costs in the form of higher prices.”
Transfer of the Kent Reliance business to OneSavings plc
KENT Reliance Building Society eligible shareholding members and eligible borrowing members have voted in favour of transferring the whole of the society’s business, assets and liabilities to OneSavings plc. The transfer, which is expected to become effective in February, 2011, will be followed by an immediate capital injection into OneSavings plc of £50m by a fund managed by JC Flowers & Co to strengthen the capital base of the new enterprise and to support future growth. The society’s special general meeting was
held at The River Centre in Tonbridge, Kent. At the meeting, 75.8% of eligible shareholding members voted in favour of the proposal, more than the 75% majority required, and 80.15%
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of borrowing members supported the proposal, more than the 50% majority required. The transfer is to be effected through a conditional transfer agreement, signed on 12 October 2010, between the society, OneSavings plc and Kent Reliance Provident Society Limited (KRPS) under section 97 of the Building Societies Act 1986 (as amended). The transfer is expected to become effective on 1 February 2011 subject to, amongst other things:
OneSavings plc having been granted the necessary permissions by the Financial Services Authority under Part IV of the Financial Services and Markets Act 2000 (as amended) to undertake its business as a bank or the parties being satisfi ed that this condition will be met by 1 February 2011; and
confi rmation of the transfer by the Financial Services Authority.
The society will now apply to the Financial Services Authority for the transfer to be confirmed. The transfer is part of wider proposals for a new structure for society’s business. This will allow for substantial capital investment to support the business and enable future growth. Under this new structure, members of the society will become members of KRPS, a new industrial and provident society which is a type of mutual organisation. They will cease to be members of the society (which will cease to exist as a legal entity when the transfer takes effect). In addition, OSB Holdco Limited, a wholly- owned subsidiary of funds advised by JC. Flowers & Co. LLC will invest £50m in OneSavings plc immediately following the transfer which will enable the business to meet its ongoing regulatory capital requirements. Following the investment, KRPS will own 59.9% and OSB Holdco Limited will own 40.1% of the ordinary shares of the company, although this position could be altered by subsequent adjustments and shares issues.
Malcolm McCaig, chairman of KRBS, said:
“The board of KRBS is delighted that members have voted to approve this transfer. Our joint
continued on page 6 November/December 2010 5
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