We’ve all made typos in the past but I bet your typo wasn’t as expensive as this one.
Typos, where you misspell a word or put in a wrong word by mistake, are fairly common. This particular typo though was incredibly costly as it resulted in a company going out of business, 250 people losing their jobs and the government having to pay £9 million in compensation.
Back in 2009 Mr Davison-Sebry, the MD and co-owner of Taylor and Sons Ltd was enjoying a holiday in the Maldives when he received a phone call asking why his company had gone into receivership.
Receivership is very often the first stage of a company going out of business. It typically occurs when a company is suffering financial difficulties and an independent “receiver” is called in to run the company instead of the directors.
Taylor & Sons Ltd was a successful company. It had been established back in 1875 and was doing very well so why the call to the MD asking why his company had gone into receivership?
Well it turns out that Companies House (the organisation in the UK that publishes official notices about companies) had issued a notice saying that Taylor & Sons Ltd had gone into receivership.
Unfortunately for all of the people involved with Taylor & Sons Ltd, it was a typo by Companies House and the company that had actually gone into receivership was Taylor & Son Ltd and not Taylor & Sons Ltd.
Companies House rectified their “one letter mistake” within a few days but it was too late. There was a snowball effect as one supplier after another heard about it and despite being told that Taylor & Sons Ltd was financially secure, they terminated the orders and cancelled the credit agreements.
Within 3 weeks all of the company’s 3,000 suppliers had cancelled agreements and would not supply the company anymore.
The end result was that Taylor & Sons Ltd lost all of their suppliers and as a result couldn’t produce anything for their customers so they ended up going out of business.
The end of a 140 year-old company and all due to a one letter type.
The directors were understandably unhappy about this and took Companies House to court where they were recently successful in their case and won nearly £9 million in damages.
That was probably the most expensive one letter typo in history.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2015-03-20 21:34:532015-03-20 21:34:53Is this the most expensive typo in history?
Gin and tonic is a drink that has caused a number of hangovers over the years but for two individuals it is going to make them very wealthy.
Gin is often credited with being a traditional English drink but the first recorded date for the production of gin was actually in the Netherlands in the 17th Century.
One of the key ingredients of tonic water is quinine.
Quinine is said to have many medicinal purposes and was first discovered by local tribes in Peru and Bolivia. Some people claim that quinine has medicinal purposes which helps various ailments including malaria.
The bringing together of gin and tonic happened in the early 1800s when British army officers in India were using quinine in an anti-malarial capacity and decided to hide the bitter quinine taste by mixing it with tonic water and then hiding the taste even further by adding gin.
The drink “gin and tonic” then came into existence.
Fast forward to 2005 and the company Fever Tree which was set up by Charles Rolls and Tim Warrillow produced their first bottle of upmarket tonic water.
Fever Tree tonic water has been selling very well since then and the company is now being quoted on the AIM (AIM is the Alternative Investment Market which is a sub-market of the London Stock Exchange and allows smaller companies to float shares with a more flexible regulatory system than is applicable to the main market).
The Fever Tree company has been valued at £154 million. That’s not a bad valuation for a company that’s selling tonic water.
There will no doubt be happy faces at the company and the success of the flotation will be toasted by a glass or two of champagne. Or should that be a glass or two of gin and tonics?
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2014-11-14 14:37:132014-11-14 14:37:13Who needs champagne for a celebration?
The first pair of blue jeans to be made in the world were made by Levi Strauss in 1873.
Since then, the company Levi Strauss has gone on to sell millions of pairs of jeans and their turnover last year was $4.6 billion.
Interestingly the shares of the company are not publicly traded as the company is a private company owned by the descendants of the family of Levi Strauss.
As well as being a company with an 141 year history it is also leading the way in terms of the ethical treatment of its suppliers.
It has recently announced that it will start offering low-cost working capital to its suppliers who meet certain environmental, labour and safety standards.
It was announced that the company will provide loans with progressively lower interest rates to those of its 550 suppliers who perform well in terms of their environmental and safety standards.
This is an admirable move by the company.
Their suppliers are often from developing markets such as Bangladesh and to encourage their suppliers to adhere to better ethical conditions they will provide loans to them at interest rates that get lower the better the suppliers perform in terms of their environmental and safety standards.
A great idea and will we see other companies introducing similar schemes to encourage ethical approaches to their supply chain?
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2014-11-11 15:01:212014-11-11 15:01:21This idea by Levis is certainly a good fit.
When governments try to crackdown on corruption and bribery it is normally good news for the “good people” and bad news for the “bad people”.
Unfortunately for Diageo, the world’s largest spirits maker, they haven’t done anything wrong but have been caught up in an anticorruption drive in China.
Diageo make the world-famous Johnnie Walker whiskey and Smirnoff vodka but they also make the Chinese spirit “Baijiu”. To most people outside of China, Baijiu is unknown but for people in China it’s extremely well known and is considered to be an expensive luxurious drink.
Chinese president Xi Jinping has led an anticorruption drive which has seen businesses reducing the level of luxurious gifts that they give out. Expensive watches, fine food and expensive cigars were all commonly gifted by companies to encourage business and win favours.
The Baijiu drink was also commonly bought by companies to give away as gifts but following the anticorruption clampdown sales have collapsed in the last year.
Diageo owns nearly 40% of Shui Jing Fang, the Chinese company that manufactures Baijiu and the sales of Shui Jing Fang fell by nearly 80%. As a result, Diageo has written down the value of the investment in Shui Jing Fang by £264 million.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2014-09-02 20:14:382014-09-02 20:14:38This crackdown has caused a bit of a headache.
It’s amazing how much you know. Whether you’re fully qualified or part qualified the professional exams with ACCA and CIMA are very comprehensive and as such anybody who has passed exams has proved that they have the ability to learn, comprehend and explain various technical topics.
As we progress through our studies we soon start to take certain things for granted. Take debits and credits for example. Ask any qualified accountant which side debits and credits go and they will tell you (hopefully!) without even thinking.
I was recently teaching a group that were new to the joys of double entry. Some of them were initially finding it a bit of a struggle to remember which side the debit and credit went.
A couple of quick memory techniques for anyone starting out on double entry bookkeeping which will help you remember that debits go on the left and credits on the right:
Think of the Australian rock band AC/DC or the electrical system AC/DC and then remember that A/C’s = D’s and C’s [Accounts = Debits (on the left) and Credits (on the right)].
2. The driving reminder.
WARNING – I’d only recommend that you use this is you’re from one of the countries that drive on the left such as the UK, Australia, Hong Kong, Bangladesh, Malaysia and South Africa (there are other countries that drive on the left but for brevity sake I won’t list them all here!)
If you think that you Drive on the left but Crash on the right then it should help you remember that you Debit on the left but Credit on the right.
Again, it’s probably not worth using this memory technique if you’re from one of those countries that drive on the right!
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2014-04-30 02:28:092014-04-30 02:28:09Which way, left or right?
It’s Easter weekend and in many countries around the world people celebrate by giving each other chocolate Easter eggs.
There could be some worrying news though for people who enjoy eating these chocolate eggs as well as anyone who enjoys eating chocolate in general.
The price of chocolate is rocketing and in the last year alone cocoa prices have risen by 20% and it seems that the price rises will continue.
So, what is causing the increase in chocolate price?
The answer is that it is a simple case of supply and demand.
In December, the International Cocoa Organisation said there could be a 150,000 tonne deficit in the amount of cocoa beans produced in 2014.
There is a significant lead time in cultivating cocoa crops so the supply of cocoa will remain relatively static. In addition, the supply problems are being compounded by prospects of an El Nino weather pattern which can result in crop damaging dry winds in some of the leading cocoa growing countries in West Africa such as Ghana and the Ivory Coast.
Demand on the other hand is surging.
According to Euromonitor the value of chocolate consumption in major emerging markets such as Asia and Latin America will grow at more than double the rate of the world average in the next 5 years.
It’s estimated that consumers in the Asia Pacific region will eat 1.096 million tonnes of chocolate by 2018. This represents a 27% increase from 2013 and compares to a 5% increase in Western Europe (the biggest current buyer of chocolate) over the same period.
So in conclusion, there are supply problems, rocketing demand and higher chocolate prices seem inevitable.
What better excuse therefore is needed to buy that extra chocolate bar now before prices rise?
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2014-04-20 14:24:332014-04-20 14:24:33Is now a good time to eat more chocolate?
When I was younger I can remember queuing with friends to get the latest album by my favourite group. At the risk of showing my age though it’s been a long, long time since I last did that.
It’s not because I don’t like music anymore but rather that it’s now so much easier to buy music online.
Things have changed quite dramatically for the music industry when it comes to their distribution methods.
In my youth it was pretty simple. Record companies would distribute the albums via the record shops.
Fast forward several years and over the last decade music has been increasingly distributed online via platforms such as iTunes and Amazon. There’s also the not insignificant impact of illegal downloads of music.
Even if you still want to buy the more traditional CD versions of the albums rather than the digital version, then supermarkets such as Tesco sell the leading CDs at very cheap prices.
The high street music shops have struggled to stay alive. Several high street music shops such as Virgin Megastores, Our Price and Zavvi have all gone out of business.
Students of strategy though would not really be surprised by this as according to Michael Porter’s generic strategies there are two main ways of competing. Namely, cost leadership or differentiation.
In simple terms, cost leadership is where a company can produce something at a lower cost than its rivals whilst differentiation is where an organisation can charge a premium for its product as it’s “different”.
A high street chain of music shops is going to have a significantly higher cost base compared to companies that sell music over the internet. Property costs are going to be significant and will make it impossible for high street record chains to ever win the cost leadership battle.
Whilst it’s not looking good for the big chains of record shops what about the smaller independent record shops? Clearly they could never compete via cost leadership so what about differentiation?
On Saturday the seventh annual UK Independent Record Store Day will be held.
More than 240 stores have signed up to this year’s Record Store Day and tomorrow’s event is aimed at reinvigorating interest in the independent music stores.
At last year’s event people were queuing to get into the shops. Not to buy the cheap music but to savour the atmosphere, talk to people who were interested in similar types of music and to buy some of the more unusual music.
Hopefully this differentiation approach will work as in my opinion it will be a sad day if all the independent music shops disappear and we can only buy the music online or at a supermarket when buying our weekly shop.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2014-04-17 10:32:462014-04-17 10:32:46It looks like Saturday could be a record day…
Now, I’m not talking about the Premier League table where at the time of writing they are 7th in the League and are guaranteed to obtain their lowest points total in a season in the Premier League era. No, instead I’m talking about the Deloitte Football Money League.
Deloitte are arguably the top accounting firm when it comes to dealing with UK football teams and each year they profile the highest earning clubs in the world.
The 17th edition of their report highlights the financial results from the 2012/13 season and it seems that Man Utd falling down league tables isn’t restricted to the Premier League table.
For the first time since the Deloitte Football Money League began they have fallen out of the top 3 big earners in the world. European champions Bayern Munich from Germany, leapfrogged Man Utd into third place behind Real Madrid and Barcelona.
Like most clubs in the top 20, Man Utd did generate more money than the previous year and the financial position going forward in the short term should be ok as there is a new Premier League television contract as well as some lucrative commercial deals present.
The problem could come though if they fail to qualify for the Champions League over the next few seasons. Dan Jones, partner in the Sports Business Group at Deloitte, said: “Consistent non-qualification for the Champions League would be a problem because, in round number terms, it is worth circa €50 million”.
So, it’s potentially a rough couple of years ahead for United.
The top 10 earners according to the Deloitte report are:
1. Real Madrid: €519 m
2. Barcelona: €483 m
3. Bayern Munich: €431 m
4. Man Utd: €424 m
5. Paris Saint Germain: €399 m
6. Manchester City: €316 m
7. Chelsea: €303 m
8. Arsenal: €284 m
9. Juventus: €272 m
10. AC Milan: €264 m
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2014-03-27 15:18:352014-03-27 15:18:35Are Manchester United getting it wrong?
After getting to know each other 118 years ago in 1896 it’s looking like pwc’s relationship with the Barclays banking group is coming to an end.
Barclays has just released their 2013 Annual Report and the Report highlights that they are putting their audit out to tender and pwc will not be invited to tender.
They put this down to several reasons including being “mindful of investor sentiment regarding external audit firm tendering and rotation” and the fact that “2014 is likely to see new regulation in this area both from the UK Competition Commission (implementing its decision to mandate tendering at least every 10 years) and the European Union (requiring audit firm rotation at least every 20 years).”
Barclays is one of pwc’s major clients and the fees received by pwc were pretty significant.
In 2013 the total audit and non-audit fees paid to pwc by Barclays amounted to £45 million.
Interestingly, the non-audit fees paid to pwc represented 28.5% of the audit fee.
Allowable non-audit services are pre-approved up to £100,000, or £25,000 in the case of certain taxation services. Any proposed non-audit service that exceeds these thresholds requires the specific approval from the Chairman of the Audit Committee before pwc can be engaged.
Barclays said that during 2013 the Chairman of the Audit Committee scrutinised all such requests for approval, particularly those that concerned taxation-related services, and two requests for approval were declined.
Whilst losing the Barclay’s audit is no doubt a £45 million disappointment to pwc, it’s fair to say that the other accounting companies are looking forward to the opportunity of tendering for a £45 million audit.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2014-03-05 22:23:442014-03-05 22:23:44After 118 years Barclays are saying farewell to pwc.
It’s one of the classic economic models. Changes in supply and demand can impact on prices but should you be interested in this model if you like to drink a glass of wine?
Morgan Stanley, the American financial services firm has released a report on global wine supply and demand. Assuming that you haven’t had too much wine to drink already today then it does make some interesting reading.
First of all, global wine consumption has generally been rising since 1996 and the current consumption is approximately 3 billion cases per year.
This consumption (demand) of 3 billion cases of wine compares to the current production (supply) of 2.8 billion cases of wine. Unless you’re now on your second bottle of wine of the day you’ll be able to work out that demand exceeds supply by 200 million cases.
The report by Morgan Stanley predicts that in the short term “inventories will likely be reduced as current consumption continues to be predominantly supplied by previous vintages”.
In other words, the shortfall between annual demand and supply will be satisfied by wines that were produced in earlier years.
Once this stockpile has been used though it will simply be a case of demand exceeding supply and we all know what happens when demand exceeds supply. Yes, prices will increase.
If you’re a wine drinker then you’re likely to be facing a more expensive drinks bill in the future.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2013-11-15 20:02:312013-11-15 20:02:31Will this model mean you’ll drink less?
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