House prices rise by 5.9% in 2009, says Nationwide

UK house prices rose by 5.9% in 2009, making some recovery from the massive falls seen last year, the Nationwide building society has said.

The rise in prices seen this year compared with a sharp fall of 15.9% in 2008, the lender said. The average cost of a home went up for the eighth months in a row in December, rising 0.4% to £162,103.  However, the Nationwide predicted that prices would change little over the coming year.

"This year's recovery has to some extent been driven by transitory factors and there are reasons to believe that it will lose momentum over the coming year," said Martin Gahbauer, the Nationwide's chief economist. "At the same time, there is no obvious catalyst on the near-term horizon that would trigger significant renewed falls in prices, such as a sharp spike in interest rates."

Surprise

Mr Gahbauer admitted that the past year's price increases had taken everyone by surprise.  "Few could have foreseen this development at the start of the year, when the near-term price trend was still pointing to a repeat of the double-digit annual decline experienced in 2008," he said.  "Although house prices are still 12.2% lower than their October 2007 cyclical peak, they have now rebounded by an impressive 8.9% since their February 2009 trough," he added.

The lender said price increases in the past few months had moderated compared with those in the summer.

The Nationwide argued that although interest rates were likely to remain low, which would help mortgage borrowers, there was still uncertainty about whether unemployment would rise much further and whether cash-rich buyers could continue to be a significant feature of the market. As a result, it argued that the outlook for the coming year was unclear. "At this stage, it seems likely that 2010 will see no significant house price movements in either direction," Mr Gahbauer said.  "However, the experience of 2009 demonstrates how unpredictable the market is at the current juncture and that one should always be prepared for the UK housing market to surprise."

Strong decade

Looking back at 2009, the Nationwide said there were clear reasons for the unexpected upturn in prices.  "The re-entry of cash rich buyers into the market coincided with an extremely low supply of property available for sale, as low interest rates limited the number of distressed sales and a significant number of home movers decided to offer their properties for rent rather than sale," Mr Gahbauer said.  "This restriction in supply meant that even a relatively modest pick-up in demand was able to put upward pressure on house prices."

Looking further back, the Nationwide said that the past decade was the strongest on record for house prices, despite the recession.  Property values have risen by 117% since the end of 1999.  Taking inflation into account, the average home increased by 68% in value over the decade, compared with a 14% fall in real terms in the 1990s.

 

Posted at 07:48PM Dec 31, 2009 by Kelly Board in Mortgages & Housing Market  |  Comments[0]

Banks 'must lend more' next year

There should be more competition in the banking sector with more lending from non-UK banks made available to small firms, a group has said.

In its new year message, the Federation of Small Businesses (FSB) called for banks to return to their "normal lending criteria".

There are five million small businesses in the UK. The FSB represents 215,000 small firms across the UK.  "2010 must see the route to recovery," said FSB chairman John Wright. "Small businesses deserve a big vote of confidence and the sector in turn will return the compliment with jobs, guaranteeing a sustainable recovery.  2010 may be a general election year, but for small firms, it will be business as usual as they strive to complete the route from recession and back into recovery."

A Department for Business spokesman said: "We have extended the Enterprise Finance Guarantee for a further 12 months to encourage additional bank lending to viable smaller firms and announced that businesses will be able to continue to defer tax payments to help with cash flow as they prepare for growth.  We are working with the FSB to offer up to 10,000 graduates a chance to boost their future employability through internships in small and micro businesses."

Posted at 07:13PM Dec 30, 2009 by Kelly Board in The Economy  |  Comments[0]

Lehman administrators PwC repay $11bn to creditors

Administrators of the collapsed investment bank Lehman Brothers have agreed a plan to return $11bn (£6.9bn) to former investors.

PricewaterhouseCoopers (PwC) said more than 90% of affected investors - with assets still locked in Lehmans - had agreed to the deal.

PwC is responsible for winding down the Lehman Brothers' European operations. The investment bank held $32bn of client assets when it collapsed at the height of the banking crisis in September 2008.  $13.3bn has so far been returned to investors, who are mainly large hedge funds and investment companies.

The agreement forms part of an attempt to speed up the administration of Lehmans, with PwC warning that it could take a decade or more to wind up the bank's European operations.

Posted at 08:23PM Dec 29, 2009 by Kelly Board in Insolvency  |  Comments[0]

Bank of England voted 9-0 for unchanged 0.5% rate

All nine members of the Bank of England's Monetary Policy Committee (MPC) voted to hold interest rates at its December meeting.

Minutes from the meeting also showed that the MPC was unanimous in voting to maintain the £200bn quantitative easing (QE), or asset buying, programme.

The MPC agreed that the medium-term outlook for inflation had not changed since its November inflation report.  In November, the committee extended its existing £175bn QE programme by £25bn.

That decision, however, had been split.

Seven members voted for a £25bn expansion, while chief economist Spencer Dale favoured no expansion and David Miles wanted a £40bn increase. The December minutes said that the two still thought "a slightly different scale of asset purchases could still be justified".  "But the lack of significant news on the month meant that the case for deviating from the programme of asset purchases announced in November was outweighed by the benefits of completing it as planned," the minutes said.

The British Chambers of Commerce agreed that there was "no immediate need" to increase the size of the programme.  But the group's chief economist David Kern added: "It is disappointing that the MPC has not considered new ways of addressing the persistent weakness in bank lending to business.  "A cut in the rate of interest paid on commercial bank deposits held with the Bank of England may be worth considering."

Posted at 08:22PM Dec 23, 2009 by Kelly Board in The Economy  |  Comments[0]

UK economy remains in recession

The UK economy shrank by 0.2% between July and September, figures show, an upward revision to the previous estimate of a 0.3% contraction.

It means that officially the recession has not yet ended. Analysts believe that fourth quarter figures will show the economy returning to growth.

The news disappointed those who had expected a contraction of 0.1%.

The British Chambers of Commerce (BCC) said the latest figures raised concerns about the strength of the recovery.  bvgBCC chief economist David Kern said: "While most analysts expect a return to positive growth in the next few months it is important to stress that recovery is not yet guaranteed."

The UK recession began in the April-to-June quarter of 2008. Since then the economy has contracted by 6%.

This is the second revision to the third quarter's GDP figure. The initial estimate, released in October, showed the economy shrank by 0.4%.

It is customary for the first estimate of GDP to be revised twice at monthly intervals. It can sometimes also be revised up to 18 months after the initial estimate.

Recovery concern

The fact the economy had shrunk during the third quarter of 2009 took many analysts by surprise when the initial figures were released in October.

Many had expected the UK economy to return to growth during that period, and are still scratching their heads that subsequent revisions show the economy still to be in recession.

"We still find it hard to believe fully that the economy was contracting in the third quarter," said Investec's Philip Shaw.

Others believe that they may yet be proven right.

"We are expecting this number to be revised upwards and this will eventually be seen as a growth quarter," said Amit Kara from UBS. "The big picture is that the economy is recovering... we see growth at 1.8% next year."

The Office for National Statistics said the upward revision to the third-quarter figures was down to an improvement in construction output. That was boosted by strong growth in public sector projects, while the decline in house building slowed.

However, services and industrial production were weaker.

Balancing act

BBC economics editor Stephanie Flanders said: "There is at least one piece of encouraging news in today's release: the household savings ratio in the third quarter rose to 8.7% of income, compared to 7.6% in the previous three months."

She said it was important for savings in the economy to go up to put the recovery on a more sustainable footing.

The household savings ratio is the percentage of disposable income that is saved.

Analysts say the high level of household debt in the UK must come down in order to make the economy more balanced. However, while overspending was one of the factors contributing to the credit crunch, it is important for the recovery that consumers do not cut back their spending too sharply.

 

Posted at 10:25PM Dec 22, 2009 by Kelly Board in The Economy  |  Comments[0]

CBI predicts 'fragile' UK economic recovery

Growth in the UK economy is set to pick up gradually next year but the economic recovery will be "fragile", a leading business group has said.

The CBI predicts that the UK will exit recession in the fourth quarter of 2009, helped by consumer spending ahead of the VAT rise in January.

But the group says the economy is unlikely to have returned to pre-recession levels by the end of 2011.

It says unemployment will peak at 2.8 million - lower than first forecast.

"Although the first few months of 2010 will be difficult, growth will gradually pick up and increasing confidence and demand will lead the UK into a more positive 2011," said John Cridland, the CBI's deputy director general. "Consumer spending looks to be slightly more resilient than we first thought, and a weaker pound will help to support export growth.  However, the economy will be on a fragile path of very slow growth, as we continue to feel the lasting effects of the financial crisis."

Growth forecasts

The CBI's latest quarterly economic survey forecasts:

• a return to growth in the fourth quarter of this year, with the economy growing 0.5% quarter-on-quarter

• annual growth of 1.2% in 2010, followed by growth of 2.5% in 2011

• after "constrained wage growth" during 2009 and 2010, average earnings will rise by 3.9% in 2011

• UK interest rates to start rising in spring next year, reaching 2% by the end of 2010

• the consumer prices index level of inflation to rise sharply following the rise in VAT in January, before easing back and falling below the Bank of England's target rate of 2% in 2011

• oil prices to rise to almost $100 a barrel by the end of 2011 "as the global economy recovers with a relatively limited oil supply".

The group's forecast for the economy is slightly more optimistic than that of the British Chambers of Commerce (BCC).

The BCC predicts positive growth of 1% in 2010 and 2.3% in 2011.

The Treasury expects economic expansion of 1.25% in the fiscal year 2010, rising to 3.5% in each of the following two years.

Posted at 09:19PM Dec 21, 2009 by Kelly Board in The Economy  |  Comments[0]

UK’s public sector borrowing continues to soar

The Office for National Statistics (ONS) has today revealed that the UK’s public sector net borrowing hit a record high of £20.3 billion in November.

While the figure was less than the £23 billion analysts had expected, it was still the highest for any month since the ONS began gathering data over 16 years ago.

Overall debt now stands at £844.5 billion - the equivalent of 60.2% of GDP. In May, credit rating agency, Standard and Poor’s, said the UK’s debt burden may reach 100% of GDP.

In comparison, in November 2008, public borrowing was £15.5 billion, while net debt stood at £706.2 billion - the equivalent of 49.6% of GDP.

Commenting on the figures, James Knightley at ING, said: “The UK’s public finances have deteriorated further in November, but not as badly as the market had feared." 

 "Certainly the better labour market data is helping government finances and a return to growth will further help moderate the rate of deterioration,” he added.

Meanwhile, the overall level of public borrowing for this financial year is on target to hit the £178 billion forecast by the Treasury.

The recession has meant tax revenues have been hit, as well as a severe hike in unemployment benefits.

Official figures last week showed that UK unemployment rose by 21,000 in the three months to October to 2.491 million, taking the unemployment rate to 7.9% - a 13-year high.

However, the increase was slower than expected and was the smallest quarterly rise since March-May 2008

The number of Britons claiming jobseeker’s allowance (JSA) fell for the first time since February 2008.

Posted at 10:02PM Dec 18, 2009 by Kelly Board in The Economy  |  Comments[0]

Hundreds of jobs lost at failed airline

Administrators for collapsed airline Flyglobespan said they have had to make a large number of redundancies.

Out of the 650 workers at the Edinburgh-based firm, 550 are now without a job.

Bruce Cartwright from administrators PricewaterhouseCoopers (PWC) said there was no choice other than to cease flights and make redundancies. He said that everything was being done to ensure that 4,500 stranded holidaymakers would be brought home.

All flights were cancelled after Flyglobespan's parent company, Globespan, entered administration on Wednesday at 1700 GMT. Passengers are currently stranded in Spain, Portugal, Cyprus and Egypt.

Bruce Cartwright of PricewaterhouseCoopers said they would endeavour to make sure that "nobody would be left stranded anywhere".

About 1,000 passengers who had booked package holidays and were currently abroad would be brought home under the Air Travel Organisers' Licensing (Atol) insurance arrangement scheme. The remaining 3,500 stranded passengers will have to make their own way back to the UK using alternative airlines.

Mr Cartwright said that in less than 24 hours good progress on repatriation had been made and he thanked Virgin for stepping in to take home, free of charge, 60 cabin crew currently stuck in India.

The administrator added that he had spent most of the day with Globespan staff in Edinburgh. He said employees had acted with "great dignity" and that "they have behaved incredibly well considering this has come so close to Christmas."

At a news conference in Edinburgh, Mr Cartwright went on to explain that although the company's directors had not wanted to appear publicly they had offered their full co-operation, and he was asked on behalf of the directors to thank the Scottish public for supporting them over the last 35 years and to thank employees.

Mr Cartwright said: "They [the directors] did everything they could to achieve a more favourable outcome than they see today."

About £30m was owing to the Globespan group by the company holding its credit card transaction payments, according to Mr Cartwright and that about half of the money paid by passengers could be re-paid.

 

Posted at 07:32PM Dec 17, 2009 by Kelly Board in The Economy  |  Comments[0]

Eurozone confirms inflation return

November's eurozone annual inflation figure was the first positive rate for seven months, figures have confirmed.

The European Union's Eurostat body said consumer prices in the eurozone in the year to November rose by 0.5%.

The positive figure, which was slightly down on an initial estimate of 0.6%, was widely expected by economists.

But the return to price rises - which is largely because of a rise in energy costs - is being seen as welcome news for the European Central Bank. It suggests the currency bloc may be able to avoid falling into deflation without employing yet more stimulus measures.

Encouraging signs

Current figures show private sector business activity in both manufacturing and services increased in December at the fastest rate for two years.

The purchasing managers' index (PMI) for the 16 countries using the single currency, rose to 54.2 points from 53.7 points in November, its highest reading since October 2007.

Chris Williamson, chief economist at Marit, who compiled the figures, said the data suggested the eurozone's recovery from recession would continue.

"The flash PMI suggests that euro area GDP will have risen for a second successive quarter in the fourth quarter," he said. "Even more encouraging... the rate of job losses eased to the weakest for 14 months."

Inflation rose among the largest economies of the eurozone, returning to positive territory in France, Germany and Spain and accelerating in Italy.

Across the full 27-nation European Union, inflation was at 1%, up from 0.5% in October.

Despite the better economic news, economists widely expect inflation to remain below the European Central Bank's target of just below 2%.

Posted at 09:10PM Dec 16, 2009 by Kelly Board in The Economy  |  Comments[0]

Borders staff may lose jobs on Christmas Eve

All 1,100 staff at book chain Borders will lose their jobs on Christmas Eve unless a buyer is found this week, the firm's administrators have warned.

MCR also said it was in "advanced talks" with a number of possible purchasers about the sale of some of Borders' 45 UK outlets.

It said that any deals over the sale of shops had yet to be finalised.

Borders went into administration on 26 November, before closing down sales were started three days later.

MCR said that unless store sales are agreed this week, all 45 Borders and Books Etc shops will close on 22 December, with staff finishing work on 24 December.

Borders went into administration at the end of last month after coming under severe pressure from internet competitors and supermarkets during the recession.

Waterstones owner HMV has repeatedly refused to comment on reports it is interested in buying some of the Borders shops.

The Borders chain was originally owned by the US book giant of the same name, but was sold in June 2007 to Risk Capital Partners, which is headed by Channel 4 chairman Luke Johnson.

Risk Capital then sold it on to the private equity firm Valco earlier this year.

Posted at 08:03PM Dec 15, 2009 by Kelly Board in Insolvency  |  Comments[0]

Rising house prices a problem not a solution, Treasury warned

Current rising house prices represent an economic problem for the UK and not a solution, Martin Weale, director of the National Institute of Economic and Social Research (NIESR), has warned.

At a Treasury select committee on the pre-Budget report (PBR) this afternoon (14 December), when asked about emerging asset bubbles, Mr Weale said that, like government debt, increased house prices would only result in a burden to future generations.

Fuelled by the government's quantitative easing programme, Mr Weale said he was concerned that people viewed the increasing house prices as a way out of the country's economic difficulties.

However, he said that when the government stimulus is stopped, the bubble could pop once again and trigger the second dip in the recovery.

Instead Mr Weale said it would be good for the economy to have a period of stagnation in the housing market.

However Karen Ward, chief UK economist of HSBC, disagreed and said quantitative easing had been a success in turning the forecast of a potential depression in the UK around and people should be careful of talking about boom and bust every time an asset class goes up or down.

Ms Ward said that the monetary policy committee was doing its job and was working very well.

Meanwhile, the panel of witnesses generally agreed the pre-Budget report did not do enough to explain how the structural deficit was to be reduced.

Robert Chote, director of the Institute for Fiscal Studies, said the plan to reduce the deficit over the next four years would be more credible if there were more detail as to where the pain will fall.

Posted at 08:38PM Dec 14, 2009 by Kelly Board in Mortgages & Housing Market  |  Comments[0]

Summary of Chancellor's Pre-Budget Report

The Chancellor delivered his Pre-Budget Report on Wednesday 9 December. Business will welcome some PBR measures - the new patent box, whereby income from new patents granted from 2013 will be taxed at 10% and the announcement of consultation on a foreign branch exemption.

The extra ½% hike in national insurance rates for employers, employees and the self-employed from 2011 will not be appreciated. This - combined with the 2008 announcement - will mean a 1% charge, raising about £7 billion in 2011-12 and subsequently.

Individuals will see tax allowances and thresholds frozen at 2009-10 levels - so no pay boost in April 2010. National insurance rates and thresholds are also unchanged. The state pension will rise by 2.5% from April 2010 - meeting the guarantee to increase pensions by the lower of RPI and 2.5%. Other benefits and credits will rise by 1.5%.

The much-heralded bank bonus tax applies to bonuses over £25,000 payable from today to 5 April 2010. It covers individuals engaged in banking business (including building societies) and will be charged at a 50% rate. Taking account of the levy, national insurance and income tax, bonuses will bear an effective 68% tax. It supports the G20 measures on bank pay to defer bonuses.

Finally, the Chancellor confirmed that VAT will go back to 17.5% from 1 January 2010.

Posted at 11:50AM Dec 13, 2009 by Kris Wigfield in Sport Finance  |  Comments[0]

Alistair Darling's Pre-Budget Report

The chancellor said UK GDP contracted by 0.5% in the three months to September and economic growth this year is forecast to be 0.75% - down from the 2.5% he predicted in March. He slashed economic growth forecasts for 2009 from 2.75% to between minus 0.75% and minus 1.25%. Inflation is forecast to come down sharply, reaching 0.5% by the end of next year. In 2010 growth is forecast at between 1.5% and 2% - Mr Darling said the economy would continue to recover after that. He told MPs the PBR represented a £20bn fiscal stimulus between now and April 2010, 1% of GDP.

 

Borrowing will be taken to record levels, reaching £78bn this year - up from the £43bn he predicted earlier this year - and up to £118bn next year - equivalent to 8% of GDP. Mr Darling said that was the "right choice for the country". He said borrowing would fall from 2010 to £105bn, then to £87bn, £70bn and then £54bn so by 2016 Britain would once again be borrowing only to invest. UK net debt as a share of GDP will be 41% this year, 48% next year, then 53% and 57% in subsequent years.

 

£3bn capital spending is to be brought forward from 2010/11. The money will be used to increase motorway capacity, improve and build new social housing, renew primary and secondary schools and invest in energy efficiency measures. But there will be a sharp cut in the rate of growth in public spending, now expected to grow by 1.2% per year, a sharp decrease from the 1.8% previously planned. In addition, the government has pencilled in £5bn in efficiency savings by 2011.

 

VAT to be cut from 17.5% to 15% from 1 December 2008 until 31 December 2009. The chancellor urges retailers to pass it on as soon as they can. Alcohol and tobacco prices will not fall as duty on them will be increased to match the VAT cut.

 

A new 45% higher income tax rate is proposed for earnings above £150,000 from April 2011. Mr Darling says it will impact on 1% of people. The £120 rebate for basic rate taxpayers, introduced in the wake of the 10p tax row, is made permanent and increased to £145 from April. Mr Darling says it will benefit 22 million households - an extra 500,000 - "not just this year but for good".

 

From April 2011 all rates of National Insurance contributions are to be increased by 0.5% for all employees and employers. The starting point is to be raised to that of income tax - Mr Darling says no-one on less than £20,000 will see their NI contributions increase.

 

The pension credit will be increased in April from £124 to £130 a week for individuals and from £189 to £198 for couples. State pensions to rise in line with highest rate of inflation, from £90.70 to £95.25 for a single person. Pension and child benefit increases will take effect in January, three months early, and every pensioner gets a one-off payment of £60 from January while couples get £120. Tax relief for people with up to £1.8m in pension funds is extended until 2016. A means-tested savings scheme will be offered to up to eight million people on low-incomes or benefits from 2010 in which the government provides 50p for every pound saved. The maximum government contribution will be £300 per person and the scheme will be available through a range of banks, building societies and credit unions as well as the Post Office.

 

The differential first-year rates on new cars will go ahead in April 2010 - but controversial new rates for older cars will be phased in. Duty rates for all cars will only increase by maximum of £5 from next year. In 2010 the maximum rise will be limited to £30 per car, rather than £90. Less polluting cars will see no increase, or a cut of up to £30. A fuel duty rise will match the VAT cut, leaving drivers no worse off. However planned future rises in petrol costs, together with the end of the VAT cut by 2010, could lead a rising price for fuel.

While there had been support to reform APD to become a "tax per plane" rather than per person, the chancellor said that could harm the aviation industry which was facing "huge problems". Instead APD is to be reformed so that those who travel the furthest - and who have a bigger environmental impact - meet the cost, he said.

 

An extra £100m is to be provided, with a further £50m brought forward, to help 60,000 more households insulate their homes. Mr Darling said the government would invest £535m more quickly on energy efficiency, rail transport and environmental protection.

Exemption for foreign dividends for large and medium sized businesses confirmed, introduced in 2009. Small firms to get a temporary increase in threshold for empty property relief - for 2009/10 empty commercial properties with a rateable value below £15,000 exempt from business rates. Also struggling businesses will be able to spread their VAT, corporation tax and NI contribution payments over a longer timetable. Rise in corporation tax for small firms from 21p to 22p - planned for April 2009 - will be deferred. Tax repayment scheme for previously profitable businesses will be extended so up to £50,000 of losses can be offset against profits made over last three years. A £4bn deal has been agreed with the European Investment Bank to provide money to UK banks to pass onto small and medium-sized businesses.

 

Major mortgage providers have agreed to wait three months after falling into arrears before initiating repossession proceedings. The government will also seek European Commission approval to help the mortgage market by providing for a temporary period guarantees for securities backed by new mortgages. From January, those who have mortgages of up to £200,000 will be eligible for a state benefit which pays the interest on their mortgage, a doubling of the current cap of £100,000. The waiting time to receive this benefit once an application has been made will be cut in April from 39 weeks to 13 weeks.

 

New initiative to fill 500,000 job vacancies with 20 major employers by speeding up recruitment and improving access to training. A rapid response service will expand to help those thrown out of work in all redundancies. There will also be £15m funding for free debt advice.

Posted at 02:20PM Dec 12, 2009 by Kris Wigfield in The Economy  |  Comments[0]

UK interest rate remains at 0.5%

The Bank of England has held UK interest rates at the record low of 0.5% in a widely-expected move. It also announced no changes to its programme of pumping newly-created money into the economy - so-called quantitative easing (QE). In November, the Bank of England said it would inject another £25bn, taking the total planned under QE to £200bn. The Bank cut interest rates to 0.5% in March in an attempt to boost the recession-hit economy.

Under QE, the Bank of England prints money to buy assets from banks and other companies to stimulate the economy. The bank is expected to wait until the current QE programme runs out in January before considering whether it should be expanded.

Responding to the decision, some analysts believe interest rates could remain at the current level for the foreseeable future. "With sustainable, significant recovery very far from guaranteed, any policy tightening still looks a long way off and we expect interest rates to stay down at 0.5% until at least late 2010. Indeed, the Bank of England could very well delay raising interest rates until 2011," said Howard Archer at Global Insight.

The Bank of England recently warned that the recovery would be "slow and protracted" and that it would take months for the full impact of its policies to be felt. The British Chambers of Commerce have accused the Bank's Monetary Policy Committee and the government for not going far enough to help recovery. "One critical factor delaying our exit from recession is the difficulties creditworthy small and mid-sized firms face trying to obtain adequate finance. This issue must be addressed quickly to ensure that a recovery gets under way," said Chief Economist David Kern.

Posted at 07:26PM Dec 11, 2009 by Kelly Board in Sport Finance  |  Comments[0]

Directors call for SFO probe into Aero collapse

The board believes that a fraud may be responsible for a black hole in the accounts that led to last month's failure.

Allan Graham, Richard Heis and Jim Tucker of KPMG were appointed at the beginning of November after shares were suspended in the AIM-listed company following the discovery of accounting mistakes in a contract.  At the time the company stated that it believed the issues were not "a result of either fraud or theft".

The company was valued at £140m when shares were suspended - KPMG have said that shareholders are unlikely to see any return.  Investors, including HSBC and Gartmore, are now furious with auditors Deloitte, whom it is claimed were responsible for a monthly stock audit, and JP Morgan Cazenove, the company's broker.

The company's former chief executive, Rupert Lewin, and it's finance director, Hugh Bevan, both resigned after the company's shares were suspended.

Posted at 07:25PM Dec 10, 2009 by Kelly Board in Sport Finance  |  Comments[0]