Some representatives of the company had allegedly told potential customers that British Gas was changing its name to “Eastern”.One independent domestic supplier competing in the trials, Calortex, has so far refused to sign up to a voluntary code of practice on the grounds that it does not go far enough. We need to sort this thing out before the second phase of competition comes in.”Eastern Gas, part of the Hanson group, recently faced criticism from the GCC and Ofgas following complaints about its doorstep marketing tactics in Kent. However Professor Stephen Littlechild, the electricity watchdog, is already believed to be in favour of a binding code of practice, with Offer as the enforcement agency.Ms Slipman explained: “I think it’s now imperative that we have an enforceable code to put the public’s mind at rest and stamp out cowboy selling tactics. Some 1.5 million homes will be able to choose an alternative supplier to British Gas for the first time in Dorset, the former county of Avon, Kent and Sussex.Sue Slipman, director of the Gas Consumers Council (GCC), said she believed Clare Spottiswoode, the gas regulator, had now accepted that Ofgas should play a bigger role in developing and policing an enforceable code of conduct.Previously Ms Spottiswoode has argued that marketing was a matter for the OFT and local trading standards officers. The move follows pressure from the Gas Consumers Council to replace a controversial voluntary code produced by the gas industry, which even some independent suppliers have claimed was too weak.
It comes six weeks before the second large trial of household gas competition begins in the south of England. The OFT, the UK’s overall competition watchdog, is to bring together the gas watchdog, Ofgas, and its counterpart in the electricity industry, Offer, at a private conference in January to discuss how a binding joint code could be developed. The gas and electricity industry regulators are facing pressure from the Office of Fair Trading to come up with a tough enforceable code of practice aimed at stamping out dubious sales tactics by rival suppliers in the move towards full domestic competition planned for 1998.

It would be a pity if a few poor performers are allowed to tarnish a market which is well run and serves the useful purpose of providing a share trading facility for many firms the Exchange choses to ignore.. It is time the company explained itself to shareholders who, among other things, remain unaware of the identity of the new chairman, whether anything will be salvaged from the Kingston problems, what impact they will have on the other part of the group and how such a disaster can overwhelm a company so quickly after professionals have pored over its prospectus figures.Let’s hope Ofex and Austin Friars Securities insist Woodstock writes to shareholders soon. The Ofex contingent and sponsors Austin Friars Securities may also care to ponder that investors who supported the flotation have yet to hear a word directly from Woodstock.The announcements chronicling the problems have been made on the Ofex screen and through newspapers, such as The Independent. Group chairman Richard Flatau resigned.The company promised a “further detailed announcement in the very near future prior to a resumption in the trading of the shares”.For a business to run into such problems so quickly after its Ofex launch must be of considerable concern to Mr Jenkins and his team.

The restaurant arm, it was stated, continued to trade satisfactorily. Woodstock said Kingston had defaulted on its obligations to Bass, the brewing giant, which had put in a receiver. Woodstock’s board, it was stated, had “recently become aware of certain financial irregularities” within its Kingston Inn offshoot Then came the bombshell. The company then consisted of around 45 pubs and a pub restaurant, the Blenheim at St John’s Wood in London.In November the shares, down to 15p, were suspended. It was floated by stockbroker Austin Friars Securities at 20p in July when it pulled in pounds 600,000.

The shares remain suspended at 60p.Woodstock, a pubs and restaurants group, is also suspended. Joint administrators have put together a rescue package for the skin care group. It is now talking about further cash-raising which will involve a rights issue and another debenture.Services Direct is another Ofex casualty. The company has since made a pounds 2m debenture issue and drawn down pounds 900,000. Ofex then decided to suspend the shares.The AIM float was geared to raising pounds 2m. But then the AIM move failed to materialise as questions were asked about the rampant Ofex share price.

SkyNet, supplying vehicle information systems, had an unbelievable run – and that is exactly what it turned out to be.The shares romped from 27.5p to 275p when it was about to move to AIM. Mind you, when the excitement over its Bolivian involvement was at its peak, the shares soared to 135.5p.The big successes on Ofex include Display IT Holdings, which has produced a rival to the Reuters financial screens, Motion Media, with video telephones, and Robotic Technology, with robot grinding systems.It is not surprising that such a lightly regulated market has suffered a few highly forgettable experiences. It is seen as vulnerable to a takeover strike, with Regent Inns and Yates Brothers Wine Lodges the mostly likely predators.Pan Andean, despite the shock of a dry well which the world and its dog had regarded as a surefire success, can still muster a ride from 17.5p to 51.5p. It was founded as an accountancy agency but has spread into such activities as providing catering staff.Surrey Free Inns, at a 412p peak, has scored a hit with its Litten Tree superpubs concept. There has even been talk of 330p a share.A number of other AIM companies are suspended but there seem reasonable hopes the shares will return to market, although shareholder dilution looks likely.The successes of the junior market include Abacus Recruitment, Surrey Free Inns and Pan Andean Resources.Abacus is standing at an 84.5p peak after a dramatic profits recovery.