we are not experiencing any selling pressure this morning. Given the RNS, we may now be in normal territory from now on. That is when there is a lot of buying, the SP will go up, something that was not happening before, we now know why!!!
The UK’s largest Christmas pudding maker has been accused of demanding “unfair” terms from its suppliers. 2 Sisters Food Group, which makes Matthew Walker Christmas puddings, asked for up to four months to settle bills and a discount of 3 per cent for paying within 90 days.
The food manufacturer is also one of the largest producers of frozen poultry in the UK and supplies supermarkets including Tesco, Asda and Marks and Spencer. The terms, first reported by the BBC Newsnight programme, were branded “unfair” by the Federation of Small Businesses (FSB). Premier Foods, another manufacturer, caused controversy earlier this month after saying suppliers could lose their contracts unless they made annual cash payments. Documents seen by the Financial Times suggest that 2 Sisters had asked for up to three months, or about 90 days, to make payments on goods and services from suppliers. If 2 Sisters paid on time, it would receive a 3 per cent “prompt settlement discount”, the documents say. The standard payment period would be extended to 120 days if a supplier rejected those terms, and if the due date fell at or around the end of the year or the quarter, 2 Sisters would have an extra 14 days to pay. The EU Late Payment Directive says companies should settle bills within 60 days, unless there is explicit agreement from a supplier. “We obviously put forward our best position in our T&Cs, as any business would naturally do,” 2 Sisters said, adding that reports had given “an unfair reflection” of the process. 2 Sisters said the contract was a starting point for negotiations and any supplier could reject the terms if they felt they were unsuitable. The FSB said the explanation was “poor at best”. “It misses the point that small firms do not have the power or resources to reject such unfair terms, nor to get recompense when the terms are breached,” said John Allan, national chairman. The Institute of Directors called on 2 Sisters to “look carefully” at whether their terms were in line with the prompt payment code, a voluntary code of conduct to which 2 Sisters is not a signatory. “Overly aggressive behaviour will only serve to drive a wedge between big and small businesses,” said James Sproule, director of policy.
Simon Fenton, who makes weights, said he was shocked when he saw the terms. His company, Weights Ltd, has only done a small amount of business with 2 Sisters, but he said suppliers more reliant on relationships with big food companies would find it difficult to reject the terms.
“If you’re not in a good position to negotiate, they can just demand what they want,” he said. He added that he had rejected the terms and received upfront payments from 2 sisters
The relationship between food manufacturers and suppliers has come under scrutiny recently, with producers criticised for the tough terms they o
So schroder have dumped 43 mil shares in pfd due to the departure of one of their managers causing a 2/3rd reduction in their fund and not due to pfd, all shares should have already been bought hence the reason we are where we are. That says to me there should be no reason why the sp can't start to climb fingers crossed
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