Euler Hermes UK Risk Bulletin - #8 September 2011 - Retail Special Issue
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Euler Hermes UK Risk Bulletin #8 September 2011 - Retail Special Issue
Enhance your business relationships with your suppliers. Your suppliers are our clients. Providing Euler Hermes UK with your up-to-date financial information can help your business. A positive credit insurance review can enhance business relationships with your suppliers, which in turn could result in more goods, better credit terms or additional discounts. With the information you provide, we are able to make better informed decisions on the credit limits we are asked to consider and may increase the level of credit to our clients - your suppliers. In the UK alone we are giving an extra £3 billion of new credit to UK businesses every month. Call our buyer line on 08444 122041 to speak to a Risk Analyst in your local area, or email your information to moreinfo@eulerhermes.com
Foreword
Kris Macauley Welcome to a special Retail edition of the Euler Hermes UK Risk Bulletin. We
Head of Risk Information previously took an in-depth look at Retail just after Christmas but thought it
necessary to highlight the sector again in view of the continued pressures and
steady stream of bad news emanating from the sector in recent months. The fact
that the insolvency rate in Retail has increased 13% from full year 2010 to H1 2011
in itself is a sign. But probably more alarming is the fact that listed retailers have
issued 26 profit warnings in H1 2011, more than in all of 2010 and nearly twice as
many as in all of 2009. Put another way - more than 1 in 6 of listed retailers have
had to issue a profits warning. And the summer period has shown no declination
in this trend, with the European debt crisis and impact of the riots adding to the
challenges faced in the sector.
The corollary to serious pain on the high street is that – almost predictably -
serious pain will progressively filter elsewhere. We saw this in all past recessions
or downturns, when a slump in Retail led the way for other sectors to follow.
As each week passes, the potential for a double dip scenario seemingly increases.
The Retail sector performance is currently doing little to help. Hand in hand with
Retail fortunes is the Travel sector and at their busiest time of year, we take the
opportunity to evaluate its state of health.
We also continue our series on Export, with a special focus on BRIC and India in
particular. With UK conditions stagnant, exporting continues to provide a more
compelling case for economic recovery.
As always, when economic pressures increase, there are always winners and
losers, good companies in tough sectors and bad companies in good sectors. Our
role, with our teams of analysts is to identify those, thus protecting our clients
and – over the cycle – supporting them in reducing the total cost of risk. You will
read in this issue the story of our client Brilliant Media and its involvement in the
TJ Hughes insolvency as a particular example of the support credit insurance can
offer. In these difficult times, no doubt there will be winners and losers. By using
credit insurance, we believe our clients will maximise their chance of counting
themselves amongst the winners.
Contents Sector focus Retail 1 Export focus India - BRIC Foundations 2 Sector focus Travel 4 Regional focus Republic of Ireland: Retail fears realised 5 Retail Case Study Brilliant Media and TJ Hughes 6 Sectors under pressure It’s not just Retail 8
Sector focus:
Retail
Christine Brennan In the previous Retail trade sector update (issue 6 - March 2011) we
Risk Underwriting Manager
Non-Food Retail and
predicted that the ongoing resilience of the UK Retail Sector would
Textiles be severely tested in 2011. Unfortunately our prediction has proven
true.
Retail sales grew by 0.8% month on month Retailers selling furniture, carpets, white
in June; however, the underlying pattern in goods and electricals continue to find the
the monthly growth rate has been flat since current trading conditions challenging.
the start of the year. Food store sales grew by
just 1.3% in the year to June 2011 as the large The UK electrical goods retailers have to
increases in prices led to the sharpest drop cope with aggressive price deflation and
in volumes since records began. In contrast margin erosion which are exacerbated by
non-store retailing grew by 23.6%. Indeed competition from the supermarkets and
the internet now accounts for £1 in every £10 low cost internet operators. The iPad has
of retail sales. Mobiles with internet access provided some respite and tablet PC sales
are powering a shopping revolution. have been strong. However, these have come
at the expense of reduced laptop sales and
Consumer confidence dropped again in advances in mobile phone technology has
July to its lowest level since March 2009 as reduced demand for digital cameras and
the squeeze on disposable incomes and the MP3 players. The music market continues its
uncertainty over the future economic and transformation as consumers migrate from
financial situation weighed on sentiment. CDs to digital downloads and free music
Deteriorating conditions in the Eurozone streaming services.
and sharp falls in global stock markets in
recent times will have increased consumers’ Retailers loaded with onerous debt
anxiety. obligations and bullish growth targets
which were set at the top of the credit cycle
Many retailers brought forward their are finding life difficult.
summer sales and embarked on strong
promotional campaigns to stimulate Additionally, some specialist retailers who
demand. Aggressive price cuts and extended aggressively expanded their store portfolio
summer sales will have a negative impact in the last 10 years not anticipating a
on margins. reduction in sales volumes now have to
think differently about how they manage
The main costs for retailers are human their businesses.
resources and property costs. Rents in many
locations are softening; London however, Although life is tough on the high street
remains an exception. Multiple retailers, there are still many UK retailers (Next,
such as Thornton’s, Mothercare, HMV and Marks & Spencers, W.H.Smith’s, Dunelm,
Carpetright, have closed an average of 20 Kingfisher) who are navigating rough waters
shops a day as they contend with the tough with flexible pricing architecture and brand
trading environment. Supermarkets and recognition.
the discount retailers have bucked the trend
showing growth in store numbers for the
first half of the year.
1
Export focus:
India - BRIC Foundations
Mark Wyatt
Although a disparate grouping, the BRIC countries (Brazil, Russia,
Director
Risk, Information and
India and China) all provide significant potential for economic
Claims growth and for increasing UK trade flows.
Of these countries, India has the closest links a period of monetary tightening (eleven
with the UK, linguistically and historically, it increases in interest rates since March 2010)
is the world’s most populous democracy and, and uncertainties in the global economy, a
despite lingering doubts about the speed current “slowdown” is still likely to result in
of bureaucracy in that country, the modus annual growth of 7-9% this year and next (see
operandi of the business environment should also Economy).
be broadly familiar to UK traders. That is
not to say that India is other than a complex Economy
and challenging market but two stark facts
illustrate the potential: Wholesale price inflation (used for official
target setting, with a formal comfort zone
Size of 5-6%) was 9.4% yr/yr in June (from 9.06%
in May), reflecting continuing high prices
India is the world’s seventh largest country for fuels (12.85%) and foodstuffs. Moreover,
in area and tenth in economic size. Its state-owned oil companies increased
population is the second largest, with initial gasoline prices in April, so wholesale price
results from the national census showing inflation is unlikely to ease substantially
a population (1.21bn) that increased by in coming months, even though food price
181mn in the last decade and is expected to pressures should provide some respite,
overtake that of China by 2030. In addition following adequate monsoon rains. At end-
to the regional economic heartlands around July, the Reserve Bank of India (RBI, central
Mumbai, Delhi and Bangalore, commercial bank) increased its benchmark interest rates
prospects exist in other cities, including by a further 50bps, with the repo (the main
Nagpur, Ahmedabad, Chandigarh, Pune and policy rate) now 8% and reverse repo 7%.
Jaipur. Moreover, despite high poverty levels, Inflation and inflationary expectations (not
a widening middle class provides growing economic growth), are the key policy targets
markets for consumer items. A government for now, so we expect further monetary
commitment to improve infrastructure policy tightening this year and for this to
(and financial resources provided to fund it) moderate further (but not curtail) domestic
means that business opportunities also exist demand.
in transport, construction, communications
and engineering sectors. Indeed, GDP growth has already slowed (7.8%
yr/yr in Q1 2011 following 8.3% in Q4 2010)
Growth and latest data provides some corroboration.
Industrial output in May was up 5.6% yr/yr
India is the second fastest growing economy (5.8% April), car sales’ growth slowed and
after China, among major non-OECD the July PMI (53.6, 55.3 in June) suggests that
markets. In the period 2002-10, annual real manufacturing activity is at its slowest pace
GDP growth averaged 8% and it is a mark in around 20 months. Part of the slowdown
of the country’s potential that, even after reflects the above-mentioned monetary
2Big Market
In July 2010, PM David Cameron
launched an Indian trade drive, with a
delegation to that country considered
tightening. However, with PMI still in positive the largest in living memory. Towards
territory, this appears to be a manageable the end of July this year, the UK and
slowdown, not a collapse. Overall, and even India held an economic and financial
with moderately subdued domestic demand dialogue aimed at boosting bilateral
and an uncertain global trajectory, India is
trade and investment. As part of
forecast to maintain a GDP growth rate of
this, new deals valued at over £1bn
around 7-8% in FY2011/12. For FY2012/13,
GDP expansion is forecast at around were signed. Bilateral trade reached
8.5%, supported by continuing domestic £13bn in 2010, up from around £11bn
consumption and investment growth and in 2009, with UK exports to India
with a boost from government spending. increasing by 28% and imports from
that source increasing 27%. Moreover,
BRICs GDP Growth 2002 - 2012 the UK is the largest inward investor
% Growth
into India and the latter is the UK’s
15 third largest investor, with the UK
12 recipient of more than 50% of India’s
9 investments into Europe.
6 Indian PM Manmohan Singh seeks
3
to increase bilateral trade to £24bn
2002 2012
0
within five years.
-3
-6
-9
China India Russia Brazil
Euler Hermes forecasts for 2011 and 2012.
3Sector Focus:
Travel
Dirk Kotze Travel and Tourism businesses focussed on the domestic UK market
Risk Underwriting Manager
Fuel, Energy, Advertising
are taking advantage of the currency weakness and anticipate an
and Travel uplift in demand during the Olympic Games. The outlook, however,
for travel businesses serving outbound tourism remains gloomy.
The office for National Statistics recently The tougher environment combined with
reported that overseas travel from the UK company specific issues have resulted in
continued to decline in 2010 after a steep the failure of a number of operators/agents
drop in 2009. Official figures released in 2011 – Gill’s Cruises, Dream Holidays
on 28th July showed a fall of more than and Holidays 4 UK being some of the most
5% in visits abroad by UK residents last noteworthy recent examples.
year, following an even bigger 15% decline
during 2009. Reasons quoted are economic It is evident that travel businesses that
and exchange rate challenges, along with have failed to differentiate their offers
a number of travel disruptions, mostly and/or have not yet embraced new
affecting air travel. technologies will find it most difficult to
adjust their business models in the face of
These statistics came as no surprise as we lower demand and increased competition
have seen a tough travel market in the UK as from lower cost competitors. Cash is
evidenced by public announcements of the all important and many businesses in
bigger tour operators as well as proprietary this sector have been relying on growing
information obtained through our Risk turnover to fund thinly capitalised balance
Office network. sheets. During the good years many
operators chose not to retain profits in their
In a profit warning on 12th July, Thomas businesses and now have to rely on limited
Cook Group plc announced an expected reserves. With both margins and volumes
profit shortfall for the year due to travel under pressure, we expect an increased
disruptions in the Middle East and North number of weaker operators to be exposed
Africa as well as tough trading conditions before the end of the year.
in the UK where there is a continued
squeeze on consumers’ disposable income. Most consumer facing industries appear
Similarly, on 12th May TUI Travel plc refer to to face an uncertain future in the medium
operating results being affected by factors term and unforeseen business failures
including significant headwinds from in the travel sector remain a significant
political events in Egypt and Tunisia and risk. Despite the aforementioned market
the weak UK economic environment, which pressures, we continue to underwrite
was later confirmed in their interim results. substantial levels of credit in the travel
industry. In support of our insured clients,
Information obtained by our analysts show we underwrite nearly £500m of cover
that smaller tour operators and agents are across 600 travel related business in the
also finding a weaker market with demand UK. This support is made possible by the
generally being flat at best. Even in the fact that many businesses in the industry
cruising sector which has seen significant have recognised the benefits of providing
growth in recent years, agents are reporting us with relevant, up to date information
reduced growth and tighter margins. that enables us to make meaningful
assessments of their credit worthiness.
4Republic of Ireland:
Retail fears realised
Mike Buggy In our last review of Retail in March, we identified unmanageable
Risk Underwriting Manager
Ireland
debt, built up during the “Celtic Tiger” years and inflexible rents,
due to legacy leasehold commitment, as major threats to an Irish
Retail sector struggling under the weight of austerity.
Recent high profile examples of these issues In the case of Superquinn we did provide
have emerged in the cases of Superquinn advanced warning to our clients in relation
and Xtravision. This has served to highlight to the increased level of risk associated
the vulnerability of unsecured creditors with the company in the 18 months prior
in both “pre-pack” receiverships and to the receivership. In many cases our
examinerships. policyholders were quite far advanced in
managing down their exposures prior to the
The McConnells pre-pack in 2010 was a formal appointment.
watershed moment in insolvency practice
as it was the first substantial pre-pack There will be a knock on effect to the
receivership in Ireland leaving the way supplier base in the case of Superquinn.
open for banks to consider its use as a This risk has been mitigated by the
legitimate tool to mitigate losses. This accelerated retention of title payments
event certainly heightened our awareness made by the receiver and the goodwill fund
of the circumstances where a pre-pack is an established by Musgrave.
option for the banks.
The time has long since passed where it
The same logic applied to examinership, is acceptable to trade with companies on
where in the case of the National Lining reputation alone. This has been a feature
Company of Ireland, a legal precedent was of the Irish Retail sector in the past and
set in relation to the repudiation of leases. therefore access to information and
This in effect created a mechanism for monitoring has never been so important.
companies to exit onerous leases, providing There has been a marked change in the
the court granted protection from creditors profile of insolvencies since January with
and confirmed the examinership process. food retail up 36% with an insolvency rate
Recent examples of companies exiting the of 2.3% and non-food retail up 127% with an
process show that unless you have a strong insolvency rate of 1.72%. This is a worrying
retention of title claim, the prospects of trend when compared against the average
a meaningful recovery for an unsecured insolvency rate across all sectors of 0.65%.
creditor is limited given the level of
damages generally awarded to landlords. The outlook for the rest of 2011 is another
record year of insolvencies so our analysts
Our objective is to steer our clients away continue their vigilant watch over Irish
from these risks and protect them from companies in order to continue protecting
suffering bad debts. We have been very our clients from potential losses.
active in our review of the challenges
facing the retail sector and in many cases
have successfully anticipated some of the
emerging issues.
5Brilliant move pays off
The failure of any large business is a tragedy, and
when it affects the future of others within the
supply chain, the full impact can be catastrophic.
It is for this very reason that many a turnaround plan and the promise of an
thousands of businesses decide to credit injection of cash in April 2011 suggested
insure, to protect them against the failure of the business might still have a future. Its
a major customer - a failure that can often collapse two months after Endless acquired
be as sudden as it is dramatic. the business was therefore somewhat of a
surprise.
The recent collapse of the discount retailer
T J Hughes and the closure of its national For Brilliant Media as a key supplier to T
portfolio of 57 stores is an excellent case J Hughes, the speed of the collapse was
in point. T J Hughes can trace its history unexpected and most unwelcome. Brilliant
back to 1912 and whilst its woes had been is one of the UK’s largest independent
well documented in the past, and the media agencies with a turnover of c£90
business even taken to the brink of failure, million. For three years it had been buying
6media space in the national and local has been easy to point the finger of blame at
press on the retailer’s behalf, and stood credit insurers in the past but the reality is
to lose a considerable amount of money if that they only ever pull cover when there is
its client failed. Fortunately, Brilliant was good reason.”
credit insured and so when the death knell
sounded it was already in a good place, as The time from the point at which the
Finance Director Craig Megretton explains: business looked like it had a future to one
“Almost since Brilliant started in 1981 we where its future was well and truly behind
have insured against customer insolvency it, was only two months. Despite Endless’
and for the last 10 years have been with confidence in T J Hughes’ potential, the two
Euler Hermes UK,” he says. “In the media newly appointed Directors resigned and
industry with high turnovers and low with the Quarter Day for rent pending, the
margins, credit insurance is accepted ‘best business was wound up.
practice’.
In the case of T J Hughes, Craig says that its
“We had been buying between £6.5m and payment record to Brilliant was exemplary:
£7 million in media for T J Hughes each year “It was what we would call a ‘clean account’,”
for the past few years, and were averaging he says. “They had stayed within their limit
£500,000 per month which was more than and had paid for February and March so
covered by the limit given by our insurer. the next tranches of invoices were only just
At the end of 2010, however, Euler Hermes falling due.”
notified us that the limit would be reduced
since the risk had significantly increased This made a claim to Euler Hermes a simple
and further information from T J Hughes process: T J Hughes went insolvent on 30th
had not been forthcoming. June; Brilliant was promptly paid its claim
on 11th July. As Craig says, in a competitive
“We took the view that since Euler Hermes market of low margins, such a sum is far
was effectively doing our ‘credit checking’ from insignificant: “It was very important
for us, that if they said the limit had to for our own cashflow that we had the money
be reduced then there must be very good as quickly as possible,” he says, “and this
reason for doing so.” is something that Euler Hermes clearly
recognised.”
And so it proved right. T J Hughes had a very
difficult 2010. Euler Hermes had been closely The claim resulting from the failure of T J
monitoring and analysing information on Hughes has served to confirm Craig’s belief
the company, and indeed had been at the in credit insurance, if any such reassurance
point of cancelling all cover when, in March was needed: “It means I sleep better at
2011, Endless, a restructuring and business night,” he concludes.
turnaround operator, entered the fray.
David Smith, Head of Risk Underwriting at
Euler Hermes takes up the story: “With the It was very important for
arrival of Endless whom we had worked
our cashflow that we had
with previously, we decided to retain a level
of exposure to support the turnaround. the money as quicky as
Indeed, it was understood that the possible, this is something
turnaround had started well and action had
that Euler Hermes clearly
been taken to strengthen the management
team.” recognised.
Craig Megretton concurs: “Euler Hermes Craig Megretton,
could well have withdrawn our limit
Finance Director, Brilliant Media
altogether but clearly understood that for
T J Hughes to survive, it needed to retain
its route to market and its business model
was heavily dependent on advertising. It
7Sectors under pressure:
It’s not just Retail...
Paul Anderson
Sluggish demand for housing and public sector cuts means
Regional Risk Manager
East Anglia, London and
that Construction and Property are still difficult, while Print and
South East Packaging are hit by paper and energy price hikes. In the regions,
the North of England exceeds the national average for insolvency.
In previous issues of our Risk Bulletin, we continued pressure on household incomes
have reported on the difficulties faced by from low or no salary increases, job losses
companies in the Construction sector. At and general price inflation will continue to
the end of June 2011, the sector is at the have a marked effect on the sector this year.
top spot in our UK insolvency volumes by
sector table with the largest number of While Construction accounts for the
insolvencies (1332 - 24%) by volume year largest volume of insolvencies however, the
to date. This is reflected in the number of insolvency rate is higher in other sectors.
claims and reports of overdue payments Furniture ranks No.1 in the UK for 2011 YTD
we have received from our clients in the with an annualised rate of 2.62% (national
same period. Public sector spending cuts average 0.74%). It is of no great surprise
have impacted here, with reduced volumes that this is the case when we consider that
of contracts for tender and ever more consumers’ ability to invest in non-essential
competitive pricing. Sluggish demand for items is reduced and corporate customers
housing has also had a negative effect. have looked to save costs. General demand
Some companies in the sector are chasing in this sector has been weak throughout
work at minimal margins – sometimes the year and we have seen retailers offering
at considerable discount to cost. This large discounts to generate sales. The recent
increased competition and pricing pressure administrations of Habitat, Lombok and
has come at a time when input prices for Homeform (with brands Moben, Dolphin,
products such as precast concrete and Sharps and Kitchens Direct) were predicted
fabricated steelwork have continued to and we believe that there will be no recovery
grow. With Construction output expected to for the Furniture sector in the foreseeable
remain depressed through the remainder future.
of 2011 and into 2012, the challenge for the
sector will clearly remain significant. Print and Packaging are also among those
at the higher end of the scale for insolvency
Other sectors struggling in H1 2011 rates. Companies in both sectors have been
are Property (Development, Letting hit by paper and energy price movements.
Management and Trading) at 11%; Food However, whilst the insolvency rate is higher
and Agriculture at 8%; Electronics at 8% for Packaging (2.33%), we have seen fewer
and Non-food Retail at 7%. The Retail insolvencies here than for Print (2.03%) –
environment has become more volatile where we continue to see smaller players
as we have progressed through H1 2011 fail with regularity due to their inability to
and has attracted a large amount of press pass on cost increases to customers.
coverage. We have already seen significant
insolvencies such as Habitat, Homeform,
T.J. Hughes and Jane Norman - further high
profile failures are anticipated. Given the
8Sector Insolvency Rates H1 2011 Sector Insolvencies by volume
Position NACE Group Insolvency Rate Metals 1% Film & Media 1%
Chemicals 1% Furniture 1%
1 Furniture 2.62% Telecoms 1% Non-Food Wholesale 1%
Health 1%
General Manufacturing 1% Publishing 1%
2 Glass manufacture 2.51% Advertising1%
Print 1.2%
3 Packaging 2.33% Recruitment 2% Construction 24%
Leisure 2%
4 Metal Fabrication 2.28% Metal Fabrication 2%
Engineering 2%
5 Print 2.03% Finance 2%
Timber 3%
6 Other Services 1.71% Automotive 3%
7 Construction 1.66% Fuel, Travel & Transport 4% Property 11%
8 Timber 1.60% Textiles 4%
9 Recruitment 1.49% Other Services 5% Food & Agriculture 8%
10 Waste / Recycling 1.49% Non-food retail 7% Electronics 8%
UK regions under pressure Looking ahead, assuming very low level GDP
growth for the remainder of 2011 and 2012,
With London and the South East accounting we anticipate that the Northern regions will
for 46% of live companies in the UK, it is start to see some improvement like the rest
logical that these areas account for the of the UK. The improvement will however
larger volume of insolvencies in H1 2011. continue to lag the improvement seen in the
Year to date they stand at 40% – with South – particularly the South East, which
Greater London 26% and South East 14%. showed an annualised insolvency rate of
Similarly, while Construction ranks No.1 0.58%.
for insolvency volumes year to date, 34% of
these come from Greater London and the
South East – greater than the North East
and North West combined at 23%. Greater
London and the South East also account for
50% of Property insolvencies.
Scotland
It is, however, the insolvency rates that
are of particular note. These show that
the North East, Yorkshire & Humberside
and Northern Ireland remain rooted to North
East
the top of the insolvencies table – though Northern
Ireland North
the rates of failure in H1 2011 have West
Yorkshire
improved. The North West has now joined & The
Humber
them at No.4, after sitting below the East Ireland
East
Midlands and East Anglia at the end of Midlands
Q1 2011. Within the Northern regions, West
East of
Midlands
it is those familiar industries that are Wales
England
Greater
most affected – Construction, Furniture, London
South
Print and Packaging and Non-food Retail. South East
West
Within Northern Ireland, it is Construction
and Furniture most affected. If we look
within the Northern regions, Sunderland
(annualised rate 2.16%), Manchester (2.04%), Insolvency Rate
Sheffield (1.78%) and Bolton (1.58%) top the
>1.25%
table. All exceed the annualised national
1.00% - 1.25%
average of 0.74% by quite some way.
0.75% - 1.00%
0.50% - 0.75%Euler Hermes Global Offices
Argentina China Euler Hermes Collections India
Euler Hermes Argentina S.A. Euler Hermes Information 59 avenue Marceau Euler Hermes Services India
Av. Corrientes 299 - 2°piso Consulting (Shanghai) Co., 75008 Paris Pvt.Ltd.
C1043AAC CABA, Buenos Ltd. in Shanghai, PRC Tel: +33 1 4070 1555 4th Floor, Voltas House
Aires Unit F, 9th Floor 23, J N Heredia Marg
Tel.: +54 11 4320 7157/77 Mirae Asset Tower Euler Hermes World Agency Ballard Estate
166 Lujiazui Ring Road 8, rue Euler Mumbai 400 001
Australia Pudong 75008 Paris Tel.: +91 22 6623 2525
Euler Hermes Trade Credit Shanghai 200120 Tel.: +33 1 4070 5083
Underwriting Agents Pty Ltd. Tel.: +81 21 5012 2220 Indonesia
Level 9, Forecourt Building Germany PT Asuransi Allianz Utama
2 Market Street Chile Euler Hermes Indonesia
Sydney, NSW 2000 Euler Hermes Seguro de Kreditversicherungs-AG Summitmas II.Building, 9th
Tel.: +61 2 8258 5108 Crédito S.A. Friedensallee 254 floor
Ave. Presidente 22763 Hamburg Jl. Jenderal Sudirman Kav
Austria Kennedy 5735 Tel.: +49 40 8834 0 61-62
Prisma Kreditversicherungs- Of. 801, Torre Poniente Jakarta 12190
AG Las Condes Federal Export Credit Tel. +62 21 252 2470 ext.6100
Himmelpfortgasse 29 Santiago Guarantees
1010 Vienna Tel.: +56 2 246 1786 Friedensallee 254 Ireland
Tel.: + 43 5 01 02-0 22763 Hamburg Euler Hermes Ireland
Colombia Tel.: +49 40 8834 9192 The Arch
Euler Hermes Collections Euler Hermes Colombia Blackrock Business Park
Handelskai 388 Calle 72 6-44 Piso 3 Euler Hermes Collections Carysfort Avenue
1020 Vienna Edificio APA GmbH Blackrock
Tel.: +43 1 90 81 771 Bogota Zeppelinstr. 48 Co. Dublin
Tel.: +571 326 4640 14471 Potsdam Tel.: +353 1 200 0400
Bahrain Tel.: +49 331 27890-000
Please contact United Arab Czech Republic Israel
Emirates Euler Hermes Čescob, Greece ICIC
úvěrová pojišťovna, a.s. Euler Hermes Emporiki SA 2, Shenkar street
Belgium Molákova 576/11 16 Laodikias Street & 68010 Tel Aviv
Euler Hermes Credit 186 00 Prague 8 1-3 Nymfeou Street Tel.: + 97 23 796 2444
Insurance Belgium S.A. (NV) Tel.: +420 266 109 511 115 28 Athens
Rue Montoyer, 15 Tel.: +30 210 69 00 000 Italy
1000 Brussels Denmark Euler Hermes SIAC S.p.A.
Tel.: +32 2 289 3111 Euler Hermes Kreditforsikring Hong Kong Via Raffaello Matarazzo, 19
Norden AB Euler Hermes Credit 00139 Rome
Brazil Amerika Plads 19 Underwriters (HK) Ltd Tel.: +39 06 8700 1
Euler Hermes Seguros 2100 Copenhagen O Suites 403-11, 4/F
deCrédito SA Tel.: +45 88 33 3388 Cityplaza 4 Kuwait
Avenida Paulista, 12 Taikoo Wan Road Please contact United Arab
2.421 – 3º andar Estonia Island East Emirates
Jardim Paulista Please contact Finland Hong Kong
São Paulo / SP 01311-300 Tel.: +852 2867 0061 Japan
Tel.: +55 11 3065 2260 Finland Euler Hermes
Euler HermesLuottovakuutus Hungary Kreditversicherungs-AG
Canada Mannerheimintie 105 Euler Hermes Magyar Japan Branch Office
Euler Hermes Canada 00280 Helsinki Hitelbiztosító Zrt. Kyobashi Nisshoku Bldg. 7F
CIBC Tower Tel.: +358 10 850 8500 Kiscelli u. 104 8-7 Kyobashi, 1-chome
1155 Rene-Levesque West 1037 Budapest Chuo-Ku
Blvd. Suite 1702 327 France Tel.: +36 1 453 9000 Tokyo 104-0031
Montreal Quebec H3B Euler Hermes SFAC Tel.: +81 3 3538 5403
Tel.: +1 514 876 9656 1, rue Euler
75008 Paris
Tel.: +33 1 4070 5050Holding company: Euler Hermes, 1 rue Euler, 75008 Paris, France
Tel: +33 1 4070 5050 - www.eulerhermes.com
Latvia Poland South Korea Tunisia
Please contact Poland Euler Hermes Towarzystwo Euler Hermes Credit Please contact Italy
Ubezpieczen S.A. Underwriters (HK) Ltd.
Lithuania ul. Domaniewska 50 B Korea Liaison Office Turkey
Please contact Poland 02-672 Warsaw Rm 1411, 14/F, Sayong Euler Hermes Sigorta A. Ş.
Malaysia Tel.: +48 22 363 6363 Platinum Bldg. Iz Plaza Giz Ayazağa Yolu
Please contact Singapore 156, Cheokseon-dong, Eski Bügyükdere Cad.
Portugal Chongro-ku No:9 Kat: 14 Maslak/Istanbul
Mexico COSEC - Companhia de Seoul 110-052 Tel.: +90 212 290 76 10
Euler Hermes Seguro Seguro de Créditos, S.A. Tel.: +82 2 733 8813
de Crédito S.A. Av. da Republica, nº 58 United Arab Emirates
Blvd. Manuel Avila Camacho 1069-057 Lisbon Spain Euler Hermes
#164 8° piso Tel.: +351 21 791 3700 Euler Hermes Crédito, c/o Alliance Insurance (PSC)
Col. Lomas de Barrilaco Sucursal en España de Euler Warba Center 4th Floor
Deleg. Miguel Hidalgo Qatar Hermes SFAC, S.A. Office 405
Mexico DF CP 11010 Please contact United Arab Paseo de la Castellana, 95 PO Box 183957
Tel.: +52 55 5201 7900 Emirates Planta 14 Dubai
Edificio Torre Europa Tel.: +971 4 266 3083
Morocco Romania 28046 Madrid
Euler Hermes Acmar Euler Hermes Tel.: +34 91 417 77 67 United Kingdom
37, bd Abdelattif Ben Kreditversicherungs- Euler Hermes UK plc
Kaddour AG Sucursala Bucuresti Sri Lanka 1 Canada Square
20100 Casablanca Str. Petru Maior Nr.6 Please contact Singapore London E14 5DX
Tel.: +212 5 22 79 03 30 Sector 1 Tel.: +44 20 7512 9333
011264 Bucarest Sweden
The Netherlands Tel.: +40 21 302 0300 Euler Hermes Euler Hermes Guarantee plc
Euler Hermes Kreditförsäkring Surety House
Kredietverzekering NV Russia Norden AB Lyons Crescent
Pettelaarpark 20 Euler Hermes Credit Klarabergsviadukten 90 Tonbridge
5216 PD ’s-Hertogenbosch Management P.O. Box 729 Kent TN9 1EN
Tel.: +31 73 688 9999 OOO 111 64 Stockholm Tel.: +44 173 277 0311
Krymskiy Val, 3/2 Tel.: +46 8 55 51 36 00
New Zealand Moscow, 119049 United States
Euler Hermes Tel.: +7 495 649 80 08 Switzerland Euler Hermes ACI
Trade Credit Ltd. Euler Hermes 800 Red Brook Boulevard
Level 1, 152 Fanshawe Street Saudi Arabia Kreditversicherungs-AG Owings Mills, MD 21117
Auckland 1010 Please contact United Arab Euler Hermes Reinsurance Tel.: +1 410 753 0753
Tel.: +64 9 354 2995 Emirates Tödistrasse 65
8002 Zurich Euler Hermes UMA Inc
Norway Singapore Tel.: +41 44 283 65 65 (trade debt collection)
Euler Hermes Euler Hermes (Kreditversicherung) 600 South 7th Street
Kredittforsikring Norden AB Kreditversicherungs-AG Tel.: +41 44 283 65 85 Louisville, KY 40201-1672
Holbergsgate 21 Singapore Branch Office (Reinsurance) Tel.: +1 800 237 9386
P.O. Box 6875 3 Temasek Avenue
St. Olavs Plass # 03-02 Centennial Tower Taiwan Vietnam
0130 Oslo Singapore 039190 Please contact Hong Kong Please contact Singapore
Tel.: +47 2 325 6000 Tel.: +65 6297 8802
Thailand
Oman Slovakia Allianz C.P. General
Please contact United Arab Euler Hermes Servis, s.r.o. Insurance Co., Ltd.
Emirates Plynárenská 1 323 United Center Building
82109 Bratislava 30th Floor
Philippines Tel.: +421 2 582 80 911 Silom Road
Please contact Singapore Bangrak, Bangkok 10500
South Africa Tel.: +66 2638 9000
Please contact ItalyRegional Risk Offices
London Risk Office (East Anglia, London and South East)
1 Canada Square
London
E14 5DX
Birmingham Risk Office (Midlands, South West and Wales)
2nd floor
1 Colmore Row
Birmingham
B3 2BJ
Manchester Risk Office (North and Scotland)
Norfolk House
7 Norfolk Street
Manchester
M2 1DW
Northern Ireland Risk Office
21 Linenhall Street
Belfast
BT2 8AB
Republic of Ireland Risk Office
The Arch
Blackrock Business Park
Carysfort Avenue
Blackrock
Co. Dublin
UK DATA PROTECTION ACT 1998/REPUBLIC OF IRELAND DATA PROTECTION ACTS 1988 AND 2003 (“THE ACTS”) - INFORMATION NOTICE
“Personal Data” as defined in the Acts, provided to Euler Hermes UK plc and any of its subsidiaries and branches, including Euler Hermes
Collections UK Limited, Euler Hermes Risk Services UK Limited and Euler Hermes UK plc Republic of Ireland branch, will be processed for the
purposes of carrying out credit insurance, risk assessments, credit management and other related activities. The data will be held securely and
may be shared within the Euler Hermes Group or with responsible third parties, within or outside the EEA. You may write to the Data Protection
Officer at the address shown for further information.
For further information on the Acts please refer to the websites of the Information Commissioner in the UK at www.ico.gov.uk or the Data
Protection Commissioner in the Republic of Ireland at www.dataprotection.ie.
EHUK Risk Bulletin #8 Septembber 2011
© 2011 Euler Hermes UK Plc. The content of the report (which is subject to change without notice) reflects only our opinion, which is based on
information received by us. Accordingly no warranty, representation or other assurance is given as to the accuracy or completeness of the report.
The report is for general information and is not intended to address any requirements you may have, for which you must obtain independent
advice. The report does not constitute any form of advice, recommendation or arrangement by Euler Hermes UK plc or by the Euler Hermes
Group of Companies and must not be relied upon in the making of any decision, agreement or arrangement.
Euler Hermes UK plc Registered in England and Wales No. 149786
1 Canada Square Registered office: 1 Canada Square, London E14 5DX
London E14 5DX
Tel: +44 (0)20 7512 9333 Euler Hermes UK plc is authorised and regulated by the Financial Services Authority
Fax: +44 (0)20 7512 9186
12
www.eulerhermes.co.ukYou can also read
