British and Commonwealth Holdings
Encyclopedia
British and Commonwealth Holdings plc was a financial services company which used to be a constituent of the FTSE 100 Index
.
was merged with Union Castle
to form The British & Commonwealth Shipping Company, a shipping business
.
British & Commonwealth were the ultimate owners of British United Airways (BUA)
, Britain
's largest wholly private, independent airline of the 1960s, as well as its subsidiaries
and sister companies, including British United Air Ferries
and British United Island Airways (BUIA)
. They were also a shareholder
of Bristow Helicopters
, at the time the UK's biggest helicopter
company as well as one of the largest in the world, acquiring full conrol in 1985.
In 1969 British and Commonwealth Shipping, Furness Withy
, P&O
and The Ocean Steamship Company
established Overseas Containers Limited
to exploit containerisation.
In late 1970 British & Commonwealth sold BUA along with three new BAC One-Eleven
500 aircraft it had leased to the airline to Caledonian Airways
for £12m. It continued to own BUIA, which had changed its name to British Island Airways (BIA)
in July 1970.
. This wasn't a totally new area for the company: it had established fund managers
Gartmore
in 1969. Multiple acquisitions included Exco International
, a UK money brokering business in 1986, and Oppenheimer, a large American fund management company.
At its height, the company was said to be "the largest financial services company in the UK, if the 4 high-street banks are excluded". Favourable profiles in the business press culminated in John Gunn being awarded the accolade "Guardian
Young Businessman Of The Year".
In 1988 it acquired Atlantic Computers plc, a computer services business for £434m
, having first built up a stake in that company by way of a series of market purchases. The acquisition proved ruinous – "accounting irregularities" were discovered in Atlantic's books: the company had been giving away free computer time to clients, but writing up said time as if paid for at the market rate.
Both acquiror and acquiree subsequently went into administration
(the former in 1990, the latter during the late 1990s) Until its collapse, British & Commonwealth had also been the majority shareholder of Air UK, at the time the UK's largest regional airline and BIA's successor.
Young Businessman Award". Companies which saw the managing director receive the award in the 1980s had an uncomfortable habit of becoming business failures not long after.
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
.
History
The Company was originally established in 1955 when Clan Line SteamersClan Line
The Clan Line was a passenger and cargo shipping company that operated in one incarnation or another from the late nineteenth century and into the twentieth century.-Foundation and early years:...
was merged with Union Castle
Union-Castle Line
The Union-Castle Line was a prominent British shipping line that operated a fleet of passenger liners and cargo ships between Europe and Africa from 1900 to 1977. It was formed from the merger of the Union Line and Castle Shipping Line...
to form The British & Commonwealth Shipping Company, a shipping business
Shipping line
-History of shipping lines:Large-scale shipping lines became widespread in the nineteenth century, after the development of the steamship in 1783. At first, Great Britain was the centr of development; in 1819, the first steamship crossing of the Atlantic Ocean took place and by 1833, shipping lines...
.
British & Commonwealth were the ultimate owners of British United Airways (BUA)
British United Airways
British United Airways was a private, independentindependent from government-owned corporations British airline formed as a result of the merger of Airwork Services and Hunting-Clan Air Transport in July 1960, making it the largest wholly private airline based in the United Kingdom at the time...
, Britain
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
's largest wholly private, independent airline of the 1960s, as well as its subsidiaries
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
and sister companies, including British United Air Ferries
British United Air Ferries
British United Air Ferries was a wholly private, British independentindependent from government-owned corporations car and passenger ferry airline based in the United Kingdom during the 1960s. It specialised in cross-Channel ferry flights carrying cars and their owners between its numerous bases...
and British United Island Airways (BUIA)
British United Island Airways
British United Island Airways was formed in November 1968 as part of a reorganisation of the BUA group of companies. It was a regional sister airline of British United Airways , Britain's largest wholly private, independentindependent from government-owned corporations airline of the 1960s...
. They were also a shareholder
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....
of Bristow Helicopters
Bristow Helicopters
Bristow Helicopters is a British helicopter airline originally based at Aberdeen Airport, Scotland, part of the Bristow Group based in Houston, Texas, USA....
, at the time the UK's biggest helicopter
Helicopter
A helicopter is a type of rotorcraft in which lift and thrust are supplied by one or more engine-driven rotors. This allows the helicopter to take off and land vertically, to hover, and to fly forwards, backwards, and laterally...
company as well as one of the largest in the world, acquiring full conrol in 1985.
In 1969 British and Commonwealth Shipping, Furness Withy
Furness Withy
Furness Withy was a major British transport business. It was listed on the London Stock Exchange.-History:The Company was founded by Christopher Furness and Henry Withy in 1891 in Hartlepool. This was achieved by the amalgamation of the Furness Line of steamers with the business of Edward Withy and...
, P&O
Peninsular and Oriental Steam Navigation Company
The Peninsular and Oriental Steam Navigation Company, which is usually known as P&O, is a British shipping and logistics company which dated from the early 19th century. Following its sale in March 2006 to Dubai Ports World for £3.9 billion, it became a subsidiary of DP World; however, the P&O...
and The Ocean Steamship Company
Ocean Group plc
Ocean Group plc was a major British transport business. It was listed on the London Stock Exchange and was a constituent of the FTSE 250 Index.-History:...
established Overseas Containers Limited
Overseas Containers Limited
Overseas Containers Limited was a container shipping company formed by a consortium of British shipping companies in 1965. It is not to be confused with Orient Overseas Container Line .-History:...
to exploit containerisation.
In late 1970 British & Commonwealth sold BUA along with three new BAC One-Eleven
BAC One-Eleven
The British Aircraft Corporation One-Eleven, also known as the BAC-111, BAC-1-11 or BAC 1-11, was a British short-range jet airliner of the 1960s and 1970s...
500 aircraft it had leased to the airline to Caledonian Airways
Caledonian Airways
Caledonian Airways was a wholly private, independentindependent from government-owned corporations Scottish charter airline formed in April 1961. It began with a single Douglas DC-7C leased from Sabena. Caledonian grew rapidly over the coming years to become the leading transatlantic "affinity...
for £12m. It continued to own BUIA, which had changed its name to British Island Airways (BIA)
British Island Airways
British Island Airways was the legal successor to British United Island Airways . It commenced operations under that name in mid-1970. Ten years later it merged with Air Anglia, Air Wales and Air Westward to form Air UK, at the time the UK's biggest regional airline and its third-largest scheduled...
in July 1970.
1980s Boom And Bust
In the 1980s, new management under one John Gunn oversaw rapid expansion in financial servicesFinancial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
. This wasn't a totally new area for the company: it had established fund managers
Investment management
Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...
Gartmore
Gartmore Group
Gartmore Group Limited is a British-based investment management business. It is listed on the London Stock Exchange.- History :The Company was founded in 1969 by British & Commonwealth and acquired by Banque Indosuez in 1989. It was first listed on the London Stock Exchange in 1993...
in 1969. Multiple acquisitions included Exco International
Exco International
Exco International was a leading British money brokering company. It was listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index but was acquired by British & Commonwealth Holdings in 1986.-History:...
, a UK money brokering business in 1986, and Oppenheimer, a large American fund management company.
At its height, the company was said to be "the largest financial services company in the UK, if the 4 high-street banks are excluded". Favourable profiles in the business press culminated in John Gunn being awarded the accolade "Guardian
The Guardian
The Guardian, formerly known as The Manchester Guardian , is a British national daily newspaper in the Berliner format...
Young Businessman Of The Year".
In 1988 it acquired Atlantic Computers plc, a computer services business for £434m
Million
One million or one thousand thousand, is the natural number following 999,999 and preceding 1,000,001. The word is derived from the early Italian millione , from mille, "thousand", plus the augmentative suffix -one.In scientific notation, it is written as or just 106...
, having first built up a stake in that company by way of a series of market purchases. The acquisition proved ruinous – "accounting irregularities" were discovered in Atlantic's books: the company had been giving away free computer time to clients, but writing up said time as if paid for at the market rate.
Both acquiror and acquiree subsequently went into administration
Administration (insolvency)
As a legal concept, administration is a procedure under the insolvency laws of a number of common law jurisdictions. It functions as a rescue mechanism for insolvent entities and allows them to carry on running their business. The process – an alternative to liquidation – is often known as going...
(the former in 1990, the latter during the late 1990s) Until its collapse, British & Commonwealth had also been the majority shareholder of Air UK, at the time the UK's largest regional airline and BIA's successor.
Trivia
British And Commonwealth was one of a group of British companies that was said to have suffered "the curse of the GuardianThe Guardian
The Guardian, formerly known as The Manchester Guardian , is a British national daily newspaper in the Berliner format...
Young Businessman Award". Companies which saw the managing director receive the award in the 1980s had an uncomfortable habit of becoming business failures not long after.