The Serious Fraud Office is poised to launch an investigation into Independent Insurance, a stock market favourite for the past five years that announced yesterday it had gone into provisional liquidation. The Serious Fraud Office is poised to launch an investigation into Independent Insurance, a stock market favourite for the past five years that announced yesterday it had gone into provisional liquidation.The decision to involve the SFO is unusual, and is a mark of the gravity with which allegations of impropriety surrounding the collapse are being taken. Anyone found to have committed a fraud at the company could face jail.Inquiries into Independent, which specialised in commercial insurance, will also involve the Financial Services Authority and the company’s liquidators, PricewaterhouseCoopers. An SFO spokeswoman said: “We have been passed information from the Financial Services Authority today.

We are still examining whether it would be appropriate to launch an investigation.”Independent’s difficulties could leave many of its clients out of pocket. Companies that have taken out more cover than is legally required will not receive compensation for any new claims.The collapse may add to the suffering of those bereaved and injured by the Hatfield rail crash, because Great North Eastern Railways, the company involved in the crash, was insured with Independent.The failure could herald a rise in premiums on a variety of policies, including those for cars and homes, as claims from the 400,000 individuals insured with Independent will be covered by the industry-funded policyholder protection board. This will impose a heavy cost on other insurers, which they may recoup through premiums.Independent’s chief executive, Michael Bright, has fallen on his sword, resigning last week. Whether his actions would be the focus for the SFO inquiry was not clear.. Unlike many peers to have floated at the height of last year’s hi-tech bubble, Scipher, the technology licensing business, has survived the burst rather well.

Unlike many peers to have floated at the height of last year’s hi-tech bubble, Scipher, the technology licensing business, has survived the burst rather well.
But then the company does not manufacture anything and its business model reduces investors’ risk by offering exposure to a wide variety of technologies.It licenses out its own technology ­ which covers three main areas including electronics, optics and magnetics ­ and also that of others such as BT and Imagination Technologies.Scipher unveiled satisfac-tory year-to-March figures yesterday, with a pre-tax loss of £10.1m compared with a loss of £5.4m last year Sales were £16m, up from £13m. But the shares surged on news of an NHS contract to provide doctors with smart cards to root out bogus practitioners. The deal should bring in at least £2m over three years.The key barometer for Scipher is its new business revenues, or sales from businesses set up since it was spun out of Thorn EMI in 1996. Reassuringly, they increased by 76 per cent to £11.6m and now accounts for more than 75 per cent of turnover. Mature business revenues, as forecast, slipped back to £2.1m from £3.6m last time, while partnership agreements contributed £2.3m towards specific research projects.Scipher is not expected to turn in a profit until 2003 but it should not struggle getting there At the end of March, it had £8m in the bank. While the company shelled out £11m on its headquarters, it is in negotiations on a sale and leaseback deal, which will see the bulk of that money flow back through the business.There is also the possibility that some of its joint ventures ­ perhaps including the technology it is developing with AstraZeneca to monitor chemical reactions ­ could eventually be trade sold or floated.The company came to market at 380p in February 2000 and moved as high as 945p.

Last night’s close of 392.5p puts the stock on 11 times forecast sales of £32m for the current year. Many of the company’s markets are still in their infancy and Scipher still has much to prove, but that ratio does not seem too demanding at all. Buy.Marks & SpencerThe beguiling attractions of sale and leaseback include the notion that the top brass in the retail and leisure sectors should be able to give up trying to be property managers and concentrate on what they do best: retailing, running hotels, whatever. The attractions also include a quick buck from selling the family silver Never mind having to rent it back in perpetuity. Sale and leaseback is back at the top of the investment agenda, as investment banks tout for the business and companies find a big investor appetite for the sites they have long kept locked away.Word from Marks & Spencer is that it will be joining the sale and leaseback party, with a deal covering £300m to £400m of its £3bn property portfolio. It has promised to give £2bn of cash back to shareholders by next March.But any sustainable recovery in the M&S share price ­ down 5.75p at 234.25p yesterday ­ will have to be predicated on improving sales, not a one-off bonus for its long-suffering investors.

The promised new ranges from George “at Asda” Davies will launch after M&S has, it seems, missed out on the recent surge in consumer spending on clothes and failed to capitalise on the closure of C&A’s stores across the UK.The sale and leaseback is peripheral, if not actually damaging. Since the deal is likely to cover only the worst performing sites, it could delay the point when M&S has to bite the bullet and close these stores.Property sales increase the risk profile of M&S and others, since being able to pay the rent becomes a live issue. Arcadia, the retailer with the biggest lease liabilities in the sector, saw its profits wiped out as sales faltered. Investors in the hotels industry, in particular, should be nervous.