global

ISSUE 11

FLYING COLOURS CENTRAL AMERICA POISED FOR VIBRANT FUTURE

BACK IN THE GAME FOOTBALL’S ROAD TO RECOVERY GETTING THERE OVERHAUL FOR GLOBAL SUPPLY CHAIN The network for doing HOME, HOTDESK OR HYBRID business THE FUTURE FOR POST-COVID WORK HABITS 2 UHY GLOBAL May 2021 WORD OF WELCOME

IN THIS ISSUE

3 16 WORD OF BEAUTIFUL GAME NEW WORLD OF Is football poised to AGILE BUSINESS return to normal? Changing habits WELCOME that will outlast Welcome to issue 11 of UHY One of the biggest symptoms the pandemic Global, our twice-yearly magazine of managing the virus has been 4 for international businesses. This a new nationalism including ‘JUST IN TIME’ TO is the second ‘lockdown’ issue, the closing of borders and ‘NOT ENOUGH’ meaning that at the current contrasting strategies to deal Covid lessons for time, the Covid-19 pandemic with the threat. In our feature global supply chain is still throwing a dark shadow Global Trade Reset, we examine across our world. A year on from the perfect storm for business of the outbreak, travel and social global disruption under Covid-19 19 freedoms remain restricted in with added Brexit, and a new GAME ON many countries, industries and US administration keen to undo Historic team jobs continue to suffer, and so many of the policies developed weathers storms many people continue to lose by the previous administration. their lives. On behalf of UHY 8 I expect to see the resumption BEATING International, I extend our sincere of many cultural activities lost THE ODDS sympathies to everyone blighted to us over the last 12 months. Strength in numbers by this dreadful disease. When viral transmission falls, it for Central America While nothing is certain in the will be a joy to once again visit 20 world, I am taking heart from the theatre or watch a game of GLOBAL TRADE the huge progress being made soccer. Our regular All Around RESET to develop, test, produce and The World page, opposite, kicks Can the world deliver the vaccines we desperately off this edition of UHY Global, economy build need. A substantial proportion of with a look at how the ‘beautiful back better? our most vulnerable populations game’ is already making a cautious 12 will be offered immunisation comeback. Also in this issue, fans VOYAGE OF as 2021 moves forward. I am can read about KS Cracovia, a DISCOVERY also profoundly hopeful that sporting institution in Poland, and Profile of Antonis the amazing resilience we have a client of our Polish member firm. Kassapis seen in all of our communities, personal and professional, will These are optimistic stories for help return us to a more normal a year that promises to put the 14 23 life – with some new perspectives. worst behind us. I hope you enjoy GLOBAL NEWS SERVING CLIENTS, reading them. If you would like Stories from SERVING Inevitably, many of our features in to dig deeper and browse our around the world COMMUNITIES this issue of UHY Global consider expanded digital edition of UHY Celebrating our the impacts of Covid-19 on a Global, you can find it online, here: inspirational people range of economic and geopolitical www.uhy.com/publications. activity. For businesses reliant on international supply chains, Dennis Petri the pandemic has asked some Chairman, UHY International very tough questions of their resilience. In our article: From 15 ‘just in time’ to ‘not enough’, INSPIRATION AND we look at how pre-pandemic INNOVATION production and distribution Staying competitive models fell short, and what lessons under duress have been learned, a year on. ALL AROUND THE WORLD UHY GLOBAL May 2021 3

WINNING BACK THE CROWDS COULD TWO MAJOR INTERNATIONAL FOOTBALL TOURNAMENTS IN THE SUMMER OF 2021 SIGNAL A RETURN TO BUSINESS AS NORMAL? iStock.com/Barcin

Will 2021 mark a return to normal for the was, but unsustainable in the longer term. People want to be associated with success, beautiful game? Two major international Football clubs are grateful for the support whether they are college students or competitions are scheduled to go ahead, of business where they have it. MKS potential investors into an area.” delayed from 2020 because of the Covid Cracovia, a club in Poland’s top division pandemic. Euro 2020 (as it is still called) is and a client of Polish member firm UHY Successful sports teams not only bring being played across 12 European countries ECA Group, is owned by international direct wealth to a city or region, but this summer, culminating in the final at capital group and global software also contribute economically in terms Wembley Stadium in London. On the other developer Comarch S.A. (see client story, of city visibility, tourism and investment. side of the Atlantic, the Copa America is page 19). The organisation’s other activities That is even more true for host cities also underway in June and July 2021. offer some level of financial protection for of major international tournaments, the team. which are boosted by infrastructure The arrival of effective vaccines has raised spending before an event, fan spending hopes that the matches will take place in during it, and an intense media focus on LONG-TERM CHALLENGES stadiums teeming with cheering fans, but local amenities, history and tourism. UEFA – European football’s governing body In a report for the World Football Summit, which focuses on the business side of the – has made no secret of the fact that it is HOPING FOR THE BEST planning for several different scenarios. game, industry experts suggested that many of the challenges created by the While football’s governing bodies are virus will still be felt in 2024, as the sport keen to stage major tournaments in the struggles with limited attendances, reduced summer, doing so without spectators – or sponsorship and a fall in merchandising with only a limited number – will be a and licensing revenues. Smaller clubs that major blow for host cities. Elliott says that There is a feelgood rely on nurturing young talent before is especially true when cities have invested factor that raises selling it to larger competitors may also in infrastructure in the expectation of suffer from a decline in transfer fees. recouping the outlay from the economic an area’s economy activity of thousands of visiting supporters. Elliott Buss, a partner at UK member firm when a football UHY Hacker Young in Newport, Wales, “These cities will have been spending in team is doing well. and head of UHY’s national sports group, expectation of full hotels, packed bars says the wider economy of an area is and restaurants, as well as fan spending significantly affected when football fans in and around grounds,” he adds. “The go missing. “It is the pubs and bars in city lack of fans won’t matter so much in London or Rome, which will have spent As the pandemic swept across the world centres and around the ground (when very little, if anything, on additional in spring 2020, many professional clubs they are open), the caterers, the security infrastructure, but remember that cities were left with plummeting income and no firms... all these rely on an influx of like Bucharest in Romania and Baku in choice but to continue paying the wages football fans from the local area and also Azerbaijan are due to host matches too.” of players and staff while maintaining away fans from other regions,” he says. stadiums and training facilities. “There is a kind of feelgood factor that For the moment, the football industry is hanging on and hoping for the best. Since then, football has returned, first raises an entire area’s economy when a Everyone involved in the economics of behind closed doors and more recently in football team is doing well,” says Elliott. the game is hoping that the rivers of front of limited numbers of fans in some “So when a team gets promoted to the top tier, you see a boost in applications to revenue from modern top-level football regions. The situation is better than it n the local university from foreign students. will soon flow freely once again. 4 UHY GLOBAL May 2021

FROM ‘JUST IN TIME’ TO ‘NOT ENOUGH’ CORONAVIRUS AND GLOBAL SUPPLY CHAINS FEATURE – GLOBAL SUPPLY CHAINS UHY GLOBAL May 2021 5

t the start of the pandemic, manufacturers and retailers Astruggled to source the parts and products they needed as the global supply chain ground to a halt. A year later, what lessons have been learned?

When coronavirus spread rapidly around Around the world, businesses were hit the world in the early months of 2020, from both sides. As markets shrunk, the effects on global supply chains were companies had to fight for every new immediate and obvious. Health services piece of business, only to see efforts quickly ran short of personal protective to fulfil hard-won orders hamstrung equipment (PPE). Supermarket shelves by malfunctioning supply chains. emptied of staple foods such as rice and pasta as consumers rushed to stock up on store cupboard essentials.

While these shortages made headlines around the world, behind the scenes The pandemic manufacturers faced their own supply has provided an chain challenges. When China went into lockdown early in the pandemic, opportunity to many businesses struggled to source redefine best practice the equipment and components they needed. As the crisis spread across in warehousing the globe, supply chains crumbled. and logistics and Morito Saito, vice president and director at create stronger UHY FAS Ltd, Japan, says that in the early supply chains months of the pandemic procurement was a major headache for small and medium- that are better sized businesses in particular. “These able to withstand businesses could not source the quantity of parts they needed, and they did not know global shocks. when logistics would recover and parts would be available again, causing great uncertainty. In addition, they did not have the diversified network that could step in and immediately arrange replacements.” BACK TO NORMAL?

In Brazil, too, manufacturers suffered The situation a year later is much as Chinese workshops shut up shop. improved, at least on the supply side. Carlos Bernardo Gonçalves, corporate Despite many northern hemisphere finance partner at UHY Bendoraytes & nations having endured a winter wave Cia – Auditores Independentes, Brazil, of Covid-19, PPE shortages are not a talks of a perfect storm created by a pressing concern and supermarkets remain scarcity of supply and the exchange well stocked. Manufacturers in many rate depreciation of the Brazilian real countries might be struggling, but that at a time of global uncertainty. is more from a dearth of customers than a scarcity of parts and components. “We also had some cases of clients who suffered from the lack of components So, is the supply chain crisis over? Is it back and raw materials, especially in areas to ‘business as usual’ for manufacturers such as clothing and electronics and retailers who have in recent manufacturing, which had China as years favoured lean and ‘just in time’ their largest supplier,” he adds. procurement policies? The pre-Covid supply iStock.com/Kosal Hor chain was focused on rapid delivery and 6 UHY GLOBAL May 2021

reducing the costs involved in stockpiling valuable companies are those that are best is underpinned by this as well as by parts and products, but priorities may be at cutting costs. Lutfey Siddiqi, a visiting the fragility of links which emerged shifting. Many experts say it is time for a professor in practice at London School of during the crisis.” re-evaluation of our reliance on the kind of Economics’ foreign policy think tank LSE complex international supply chains that IDEAS, believes that the ‘de-globalisation’ struggled in the face of a global crisis. associated with the pandemic “has challenged the value of hyper-efficient, According to these voices, Covid should super-optimised supply chains... cost Manufacturers act as a wakeup call for the global cutting is no longer an unequivocal procurement sector. They argue that the indicator of returns; it may actually signal and retailers are pandemic has provided an opportunity increased risk and reduced resilience.” realising that to redefine best practice in warehousing and logistics and create stronger supply In other words, lean and complex relying on a single chains that are better able to withstand supply chains may make companies less supplier for a global shocks. They argue that resilience attractive to investors in future, because should replace cost as the primary criteria they are inherently vulnerable. But how vital component or of a functioning procurement strategy. to make supply chains more resilient? popular product Using digital tools and AI to model the That is partly because the Covid pandemic effects of various shocks and diversify represents a huge is by no means over, and partly because supply accordingly is one potential business risk. global supply chains were stretched to solution. Insisting that suppliers implement breaking point even before Covid-19. disaster recovery planning is another. Global warming is leading to more of the extreme weather events – floods, One idea that has gained considerable fires, hurricanes – that make ‘just in time’ support since the start of the pandemic Is onshoring realistic? Many national delivery harder to guarantee. Then there is the ‘onshoring’ of supply chains, governments think revitalised local supply are geopolitical threats, most recently which simply means sourcing more chains can help post-Covid economic highlighted by the US-China trade war. parts and materials closer to home. recovery. The PPE crisis at the start of the Research completed before the pandemic This reduces the risks associated with pandemic highlighted the risks of relying found that companies already expected shipping goods thousands of miles and on distant producers for vital materials, disruption to production lines for one or gives national governments the power and at the same time showed that it was two months every three to four years. to step in and support producers of vital possible to create new domestic supply As the researchers noted, “the fact is materials who may be struggling. chains almost overnight. Alan Farrelly, UHY that the world has more shocks.” Board member and managing director British economist and author Paul Ormerod of UHY Farrelly Dawe White Limited, believes the pandemic has made the idea RISKY COST CUTTING Ireland, says local production of PPE was of domestic procurement more attractive. Modern supply chains were created for quickly accelerated as the country’s over- “The crisis has obviously led to geopolitical cost and efficiency, not for resilience. reliance on China became clear. “The fact connections being reconsidered in a pretty But even stock markets may be starting that Ireland needed to acquire 15 years fundamental way,” he says. “The concept to re-evaluate the idea that the most of average annual supply from China of bringing manufacturing back (to the UK) FEATURE – GLOBAL SUPPLY CHAINS UHY GLOBAL May 2021 7

iStock.com/JESP62

during the first half of 2020 showed the of new factories and equipment, in Sectors that are now considered of need to become more self-sufficient,” reality local production will struggle to national importance – the production of he says. “In the race for supply, quality compete with Chinese imports on price. basic medical supplies being one – may was compromised, and the fact that Nevertheless, there is evidence that benefit from public investment and other alternatives have now been sourced more Japanese businesses are aware of the stimulus measures to encourage self- locally could be the way of the future, for need to diversify their supplier base. sufficiency. In other areas, “companies PPE and other vital products or materials. will start to consider the risk of global In a short space of time Ireland had to “Some domestic manufacturers have pandemics and other shocks in supply create a new industry, and that will allow begun to move their supply chains chain decision-making, tending to the country to become more self-sufficient from China to Thailand, as well as geographically diversify suppliers even should the need arise in future.” Vietnam and Indonesia, and are further if margins are reduced,” he says. In the Netherlands, too, there are hints strengthening their local procurement that businesses in some sectors are trying and production systems,” Morito says. Carlos adds that, for business to to source parts and components closer But he adds that many Southeast Asian become more resilient in the long to home. “I have heard from Dutch countries have some way to go before term, investors and stock markets companies in the high-end electronics they can match China’s advanced will have to reward organisations for industry (dominated by low volume and manufacturing capabilities, and that strengthening supply chains without high complexity) that are looking for China will remain the preferred supplier punishing them for increased costs. But opportunities to make supply chains more of a wide range of industrial materials change is clearly needed, and the early resilient through more regional sourcing,” and components in the short term. signs are positive. Manufacturers and says Paul Mencke, partner at Govers retailers are realising that relying on a Accountants/Consultants, Netherlands. single supplier on the other side of the world for a vital component or popular In that case, ‘regional’ sourcing would product represents a huge business risk. likely mean the EU, though Paul’s own Supply chain shocks are likely to become experience is instructive. The pandemic Many national more common. One positive outcome struck just as the Eindhoven office governments think of Covid-19 would be the widespread was having the glass roof in its atrium re-evaluation of what constitutes best revitalised local replaced, forcing a long delay as the practice in supply chain management. n Italian supplier stopped work for an supply chains can extended period of lockdown. For more information about UHY’s help post-Covid capabilities, email the UHY executive office, [email protected] or visit www.uhy.com AN EVOLVING STORY economic recovery. While shortening supply chains may increase resilience to some extent, no supply chain is invulnerable. There are other issues with local procurement. In Brazil, Carlos Bernardo Gonçalves Morito Saito says that, while Japanese agrees that supply chain management is authorities promote domestic changing thanks to the pandemic, but procurement by subsidising the purchase through evolution rather than revolution. 8 UHY GLOBAL May 2021

BEATING THE ODDS CENTRAL AMERICA LOOKS FORWARD TO A BRIGHTER FUTURE FEATURE -– ???BEATING THE ODDS UHY GLOBAL May 2021 9

ew regions have struggled harder than Central America to forge Feconomic and political viability and unity in a globalising world. How is a joined-up approach to trade benefiting traditional and modern businesses – and how far will recent success in these areas make sure they can bounce back from the challenges of Covid-19?

Like the earthquakes and volcanoes challenges. Sustainable recovery and which define the region’s geology, new opportunities will only happen the eight nations of Central America with bold emergency measures and define its future. Belize, Costa Rica, these must work hand in hand with Dominican Republic, El Salvador, a longer-term vision. We are here to Guatemala, Honduras, Nicaragua and support our clients to make these Panama are set to drive the region’s new measures work for them.” growth and prosperity. They have fought hard, first for their independence and “Everything we do collectively now could latterly for their reintegration into a affect our national development over more cohesive whole. 2021 marks the next decade, and beyond,” he says. 30 years since the Organización de Estados Centroamericanos (ODECA) set a new treaty of cooperation in motion, supported, since 1993, by the Central American Integration System (SICA) Everything we do which is observed internationally by eleven regional advisors, including the US collectively now could and Canada. SICA’s four main pillars of support revolve around political, socio- affect our national cultural, economical and sustainable development over management of natural resources and their ongoing commitment has always the next decade, been to achieve ‘peace, freedom, and beyond. democracy and development’.

STRONGER IN RECOVERY Armed with support from SICA and Foreign investment and technical other organisations, together with assistance are key to new economic clear engagement from regional UHY success. The US, currently Central member firms, clients and governments America’s most important trade and in individual jurisdictions, everyone is investment partner, must target working hard to adapt to global and intra- investments aimed at generating regional opportunities as well as dealing new employment opportunities and with difficult public health and political supporting sectors, essential for growth challenges. The will to thrive as a nation and regional integration. As with other is beyond question – indeed, there’s a countries hit by the pandemic, Central general optimism that the region will be America has experienced weakened stronger in recovery than ever before. fiscal positions and strained public “According to Omar Pérez, managing resources. Multilateral development partner, UHY Auditores y Consultares banks and international financial SA, in Honduras: “All our UHY member institutions must play a major role in firms across this region agree that financing Central American economies. a positive, far-reaching response POST-COVID PLAN to the crisis must look further than firefighting the immediate post-Covid The region’s major income relies on impact with all its economic and health agricultural exports such as coffee, iStock.com/Mabelin Santos 10 UHY GLOBAL May 2021

iStock.com/Marco Vasquez bananas and pineapples. Tourism is opportunities are out there to trigger community in helping the region to also fundamental to Central America’s success but now Central America promote growth and investment. sustainability – and this has collapsed in must find ways to capitalise on them the wake of Covid’s travel restrictions. by creating an economic reactivation INVEST IN CHANGE plan for a post Covid-19 world. In recent years US companies have The impact on both industries been looking to grow their nearshore has been devastating but UHY The AALAC identifies three key areas trade into Central America – attracted member firms across the region are of opportunity, confirming the region’s by the region’s competitive wages, positive about building back. unique potential to be an integral part growing young working population of a robust and sustainable recovery. and preferential trade access. The In short, these potential building understanding is that by diversifying blocks for long-lasting change are supply chains and relocating, US the demographic bonus of a large businesses will be better protected against working-age population, nearshoring of An economic future global disruptions. The advantages multinational firms to Central America for Central America if this happens, reactivation plan and a renewed appetite for regional is that the region will be in a strong economic integration. AALAC delivers needs to create an position to become the first US choice constructive, results-oriented solutions to for nearshoring and foreign investment incentive for individual inform how the public and private sectors – both of which are critical for boosting can advance hemispheric prosperity and job creation and creating competitively jurisdictions to position the region as a core partner priced supply chain resilience. attract nearshoring in the transatlantic community. Longstanding foreign investment relies on newly revitalised cooperation The challenges are clear. An economic business opportunities. between leaders from the public and reactivation plan needs to create an private sectors so that together they can incentive for individual jurisdictions create workable solutions to address the to attract nearshoring business region’s historic barriers to growth. The Adrienne Arsht Latin American opportunities – and AALAC’s support Center (AALAC) points to strong regional must be harnessed by both public and The region’s second-largest trading benefits, such as dedicated economic private sectors working together to partner is Central America itself. zones and tax advantages – designed train and empower low-income youth. Intraregional trade between Honduras, to improve ease of doing business. The There is also a role for the international El Salvador, Guatemala, Costa Rica and FEATURE– BEATING THE ODDS UHY GLOBAL May 2021 11

Nicaragua accounts for 27% of total AN INTEGRATION RESTART their place as a market that offers exports and 13% of total imports – a Better understanding and expertise theeconomies of scale that will status quo that will continue to flourish in business technology is central for lead to new market opportunities, as each nation’s understanding of achieving sustainable development – full enhanced regional competitiveness and the power of togetherness grows. economic integration has stalled partly dynamic job creation programmes. because of longstanding technical and It is imperative that governments “Our offer as UHY member firms in practical hurdles. A sophisticated uptake seize Central America’s demographic Central America is to build our reputation of technology across the nations will bonus of a thriving workforce and on consistent excellence and responsive encourage growth and unity. Political build initiatives that encourage young advisors. Our ability to work across our leaders must put any tensions aside and people not to move away from home. region’s national borders is unparalleled prioritise an integration agenda with and one which we are very proud of,” technology as its beating heart. This says René Pérez, founding partner of UHY will comprehensively boost advances Peréz & Co in Guatemala. “These are in the implementation in policy, fiscal unique times though and we will not rest and monetary coordination, tax until we have done everything we can to harmonisation, the adoption of common A priority for support our clients through the pandemic standards and financial sector integration. Central American crisis and on to much better times.”n If the countries of Central America For more information about UHY’s nations is to achieve act as one now, they will take capabilities, email the UHY executive structural change office, [email protected], or visit for sustainable www.uhy.com. development.

Central American nations must invest in policies, new sectors and industries that will reduce educational and economic disparities, improve training for work in a changing economic landscape, create new jobs and attract more women to the labour market. The Inter- America Development Bank indicates that these measures could result in a 33% increase in GDP per capita.

An immediate priority for all Central American nations is to achieve structural change for sustainable development. Employment opportunities must be protected and company closures avoided. UHY member firms work closely with clients to strengthen the liquidity of their businesses and to guide them towards operating under a ‘new normal’.

“We are introducing new service lines such as forensic auditing and payroll administration and we are working with associated consultants in some specialised areas,” says Arabellis Calderón, managing partner, UHY Calderon Gonzalez & Asociados, Dominican Republic. “All our staff understand the importance of excellent service and we are learning to develop new options and new thinking whenever we can.” iStock.com/Edfuentesg 12 UHY GLOBAL May 2021

iStock.com/Freeartist VOYAGE OF DISCOVERY

n idyllic childhood shattered by war made Antonis Kassapis a Arefugee. The experience gave him tenacity and adaptability, even allowing him to flourish in a profession he vowed he would never be part of. The career I said “We have a saying in Cyprus – Antonis later took a combined degree I would never follow ‘Whatever you hate and don’t in architecture and computer science want, you see it all over you’. This and after graduating had the option was accountancy! happened with my career.” Despite to continue in computers or study his admission that accountancy was to become an architect. “To study neither his first or even last choice of I needed a job to support myself. career, there is no denying the success Cyprus was not yet an EU member it down. In my six years as manager of Antonis Kassapis has made of it. so I needed a work permit.” the offshore business team I had gained Growing up in the village of Kormakitis TAKING OPPORTUNITY specialist expertise and many contacts. I decided to start my own firm.” on the northern shore of Cyprus in One profession for which it was easier the 1950s, the director and managing to get a permit was accountancy. “I GOING IT ALONE partner of UHY Antonis Kassapis got a job as a trainee accountant and Antonis set up in a rented office in Limited had other dreams. “My father qualified in 1984. After the trauma of summer 1991 with a team of five. “One was a teacher, we had plenty of books losing my home in Cyprus I felt settled client brought another and we became to read and I imagined myself as and was at last earning a salary.” many things – a painter or sculptor, a ‘one stop shop’ for international singer, boxer, footballer, architect, The accountancy profession was on businesses wishing to use Cyprus. civil engineer and more. The career the rise in Cyprus, and Greek speaking Besides accounting, tax and audit we I stated categorically I would never accountants were in demand. In offered everything our international follow was that of accountant!” 1984 Antonis was offered two jobs, clients needed for setting up in Cyprus.” one managing a team working with The UK was in recession when Antonis The childhood idyll ended dramatically in offshore companies. “I started my job left, but things were different in Cyprus. 1974 when Antonis had to flee from the in Nicosia in March 1985 and stayed “I saw companies with profits, prospects invading Turkish army, leaving his parents six years. I was one of the first in and hope. With my firm I always had a at home. “My village was the nearest Cyprus to specialise in international feeling that this could not last for ever, point to Turkey so we felt the urgency. business and I found it fascinating.” I ended up a refugee in the UK where but 20 years later we had 50 staff and I had an older brother at Birmingham Opportunity came knocking when more work than we could handle. But University. Having just finished school, Antonis was 35 and spurred a huge the economy started shaking in the I went to college to do A Levels.” decision – he was offered a lucrative role second decade of the 21st century.” with a Middle East company. “I turned PERSONAL PROFILE UHY GLOBAL May 2021 13

Amid the Greek debt and large bad THE JOY OF FAMILY loans the two largest local banks By 1993 Antonis had embarked on collapsed. Unlike Greece there was no another venture – a family. “I married bail-out for Cyprus. “My country was Rona, a lawyer, the following year we the first item in the international news had a son, Yiannis. Our second son, for months. Not in a good way.” Marios, was born in 1995. We separated in 2017 after our sons (pictured right with Antonis) had left to study in London, where they now work.”

Today, the firm continues to flourish, and We became a engages strongly with the UHY network one stop shop which they joined in 1992. “UHY has been an important part of my career for international and life. I have seen it grow from a small businesses wishing friendly group to a global network, and attending meetings helped me think to use Cyprus. about how to improve my firm. Over the years UHY has referred some good clients Lockdown gave our to us and helped some of mine to grow firm space to do internationally. I enjoyed my relationship with UHY people I met over the years. things we never had ADAPTING FOR SUCCESS The Covid-19 pandemic proved a time for previously.” Confidence eventually returned, and challenge and an opportunity for today Cyprus has a thriving services Antonis’s business. “The UHY network sector, strategically important at the support has been invaluable. There crossroads of Europe, north Africa and have been many positives amid the the Middle East. “It has natural and legal MR BEAN AND LIVERPOOL gloom – Covid forced us to strengthen advantages which make it attractive That may involve his favourite pastimes – our IT systems and online working to international business and high net reading, his allotment and travel. skills. Lockdown gave us space to do worth individuals,” says Antonis. “At 40, I took up skiing and speedboat, things we never had time for previously. which I found exciting. I love films and Again, it’s adaptability that counts.” Antonis’s business navigated the TV, particularly crazy comedies like crisis years well and he realised his Among other priorities Antonis is Mr Bean, Monty Python and Borat.” superpower was adaptability. “You have focusing on succession planning which to be able to change fast to cope with His other great love is football – he hopes will enable the firm to continue circumstances and take opportunities. he and his sons support ‘the best smoothly after him. “I’m looking forward My relationships with clients were vital. club in the world’, Liverpool FC. to an active retirement, doing new things As well as providing good service I was “We are happy when they win and and relaxing with friends and family.” friends with many and they referred miserable when they lose!” me to their associates. This was the Asked about his inspirations in life main way my firm grew at that time.” Antonis does not hesitate. “My parents gave me the desire to succeed in a

Antonis and his team fair and workmanlike way and are my inspiration. My father Elias died in 2020 and is buried in his beloved Kormakitis where my mum Ioanna still lives. Finding myself a refugee from Cyprus in England, I had to solve problems for myself as I had learned to. My 40-year career has brought me personal satisfaction, financial comfort and skills to cope with life situations. Despite its reputation, accountancy has never been boring for me.”n

To find out more about UHY Antonis Kassapis Ltd visit www.uhy.com.cy or email [email protected] 14 UHY GLOBAL May 2021 GLOBAL NEWS

NEW LEADER FOR WORLD TRADE BODY Economist and international development alongside overseeing a USD 81 billion expert Dr Ngozi Okonjo-Iweala has operational portfolio in Africa, South taken office as the first female and Asia, Europe and Central Asia. first African Director General of the World Trade Organization (WTO). Speaking on her selection as Director General, Dr Okonjo-Iweala highlighted Dr Okonjo-Iweala twice served as the importance of a collective response Nigeria’s Finance Minister and was to rebuilding the global economy. “A responsible for reforms enhancing the strong WTO is vital if we are to recover transparency of government accounts fully and rapidly from the devastation and strengthening institutions against wrought by the Covid-19 pandemic,” corruption. She also had a 25-year she said. “Our organisation faces a career with the World Bank, where great many challenges but working she rose to become managing director together we can collectively make the from 2007-2011 and spearheaded WTO stronger, more agile and better initiatives to assist low-income countries, adapted to the realities of today.”

ARM’S LENGTH NEW ERA FOR UK AND EU GUIDANCE Following the endorsement of the contracts. EU stock trading in the largest ever bilateral trade agreement UK has ceased and moved to within The Organisation for Economic Cooperation on 30 December 2020, the UK has the single market. A memorandum and Development (OECD) has published completed its separation from the of understanding around the guidance to help address practical European Union (EU), with new regulation of financial markets is challenges relating to transfer pricing rules arrangements now in force for trade, expected soon and discussions raised by the coronavirus pandemic. travel, immigration and security. are ongoing. The treaty will be Developed and approved by the 137 subject to review every five years. Under the post-Brexit trade and members of the Inclusive Framework on cooperation treaty, UK businesses will Base Erosion and Profit Shifting (BEPS), the be able to trade products with the EU guidance seeks to provide clarity on applying on a tariff-free and quota-free basis, the arm’s length principle (ALP) during although customs declarations, border periods impacted by Covid-19. Four key checks and special licences for some areas have been identified where additional products have been introduced. Non- limitations and practical challenges are most tariff barriers for medical, chemical significant: comparability analysis, losses and other products have been and the allocation of Covid-specific costs, reduced, and UK and EU businesses government assistance programmes, and will have continued access to bid for advanced pricing agreements (APAs). iStock.com/Charlie AJA each other’s government procurement For further information, visit www. oecd.org/tax/transfer-pricing/guidance- on-the-transfer-pricing-implications- of-the-covid-19-pandemic.htm AUDIT QUALITY UPDATE The International Auditing and providers. They also look to increase Assurance Standards Board (IAASB) audit firm leadership responsibilities has issued revised standards aimed and accountability, increase focus at strengthening and modernising on flows of communication and audit quality management. strengthen the monitoring of quality management systems and the Recognising the need for proactive effective remediation of deficiencies. and adaptable quality management, the new standards introduce a The standards are effective from risk-based approach focused on 15 December 2022, replacing achieving quality objectives and the the current IAASB standards on impacts of technology, networks quality control and audit. Shutterstock.com/360b and the use of external service COGS AND WHEELS UHY GLOBAL May 2021 15

iStock.com/Fresh Splash

“The rapid deployment of relevant technologies to provide clients with INSPIRATION AND uninterrupted service, has been impressive,” he says. “It feels like our members have squeezed years of learning INNOVATION into just a few months. By sharing this on calls and through our regular ow does a global accountancy network stay communications, ideas, experience and Hcompetitive under duress? The answers lie in recommendations have effectively rolled knowledge share, relationships and communications. out through the network very quickly.”

While it is expected of most businesses to multinational clients working with our PEOPLE FIRST stay competitive and evolve to meet the members in different countries. While we The wellbeing of over 8,500 professionals changing needs of their market, the global see this in normal times as a competitive worldwide has also been a priority for firms, pandemic is proving to be a disruptor of the strength, it has now proved to be a major and the network. To ensure support – both highest order, forcing leaders to re-evaluate factor in surviving the pandemic.” technical and personal – is always available, existing models and plan more carefully for UHY member firms have been scrupulous Through regular video calls between the the future. From supply chain resilience to in assessing the new working environments UHY Board and member firms across the employee wellbeing, company architectures and meeting the needs of their people. With world, and by taking its usual regional and are being redefined at a rapid pace. such a changing mix of Covid restrictions global conferences online, the network and guidelines across the 100 plus countries For global accountancy and consulting has been able to maintain the momentum in which UHY operates, a plethora of networks like UHY, comprised of of cooperation and communication measures and solutions has emerged. independent member firms, there are between UHY colleagues. While on-screen Leadership, teamwork and personal additional challenges. Each member will relationship-building will never replace resilience were all issues studied and manage its own domestic and international face-to-face networking, Rhys recognises debated during the Annual Meeting online client base, meeting needs, ensuring that there have been unforeseen benefits. in 2020, and member firms have been quick continuity of service and identifying and to share their concerns and find solutions implementing necessary change. The “Our online conferences had a wider with their colleagues across the network. risks of insufficient change, not adapting audience, with more participants working at an operational level within their firms. quickly enough or simply being unsure of “Keeping staff safe, effective and motivated They have provided an additional value how to move forwards, are clear. Network through lockdowns has been of paramount to discussions and knowledge sharing, management must in these circumstances importance for the UHY Board and the and further strengthened the practical fulfil its role of catalyst, facilitator and membership of this network,” says Rhys. working relationships between firms.” motivator, on top of its quality control and “Technology has played a massive part, member support obligations – no small task. the key enabler, but I have to credit the AGILITY AND IMAGINATION innovation, imagination and endeavour WORKING TOGETHER As member firms shared their Covid-19 of our colleagues around the world, to According to UHY International’s chief journeys throughout 2020, valuable insights find ways through. There has always executive officer Rhys Madoc, the emerged. Not least, the importance of been an almost familial culture within network’s longstanding culture of close maintaining proactive communications and between UHY member firms. The collaboration and relationship-building with clients, providing trusted advice to pandemic has challenged people like never between firms has been a key factor in help steer businesses through the maze of before, but I am proud of the practical coming through 2020 relatively unscathed. government support schemes – and with and emotionally supportive responses I an eye to the future, helping clients to have seen from our firms, which perfectly “Working together has been a foundation establish resilient, more agile infrastructures. exemplify this close-knit network.” stone of the way UHY operates, right from the network’s inception nearly 35 years Top of the list for Rhys has been the As 2021 moves forward with a Covid- ago,” says Rhys. “It provides consistency, speed at which member firms have experienced network of member firms, quality and joined-up personal service to adapted to remote working. and with mass vaccinations a reality, recovery and growth beckons for UHY. n 16 UHY GLOBAL May 2021 PERSPECTIVES

A NEW WORLD OF AGILE BUSINESS

STICKING PLASTER SOLUTIONS ADOPTED IN 2020 ARE MORPHING INTO NEW WAYS OF WORKING THAT WILL OUTLAST THE PANDEMIC. UHY EXPERTS DISCUSS THE WAYS BUSINESS HAS BEEN CHANGED FOREVER BY COVID-19.

iStock.com/Fresh Splash PERSPECTIVES UHY GLOBAL May 2021 17

n January the chief executive of Unilever told a conference “It’s essential to make sure business Ithat a significant part of the firm’s 150,000-strong global clients have secure remote access workforce would never go back to the office full time. to essential systems from any internet connection including His words made headlines. Here was “If there is too much remote encrypted connectivity to employees, further proof that the adoption of remote supervision, employees feel distrusted, suppliers and invoices,” he says. work, an emergency measure when resulting in possible compromise on Covid-19 swept across the world in 2020, work ethics. If it is too little, work BIG CHANGE AHEAD was no longer seen as a temporary fix. and productivity could slacken.” If remote and hybrid working models Alan Jope’s comments showed that for do become the norm after Covid, the Still, remote work is likely to continue Unilever, there would be no going back. consequences will be significant. Hybrid’s for many employees as part of a hybrid Instead, the company would join a growing appeal goes beyond its flexible working model, when they spend some of the list of businesses determined to offer a benefits for staff. Businesses are eyeing working week in the office and some at hybrid working model (in which employees potential savings in equipment costs, home. Employees want it – in a recent split the working week between the office bills for utilities (power and lighting) UK survey, 73% of knowledge workers and home) after the pandemic ends. and even reduced office space. said they favoured a hybrid arrangement In that way – and in many others – the after the pandemic, meaning companies A well planned hybrid work programme pandemic has changed business for that refuse to offer it could face a could mean companies having to physically good. Emergency measures that were recruitment and retention problem. host less than 65% of their workforce adopted overnight when Covid first at any one time. That fact is leading to struck are morphing into permanent the reimagining of offices as digitally solutions that will outlive lockdowns and advanced, fluid spaces for meetings, social distancing. The pandemic-fuelled Remote supervision is hotdesking and team bonding, with transformation of business goes beyond most of the day-to-day work carried out remote working to include the reimagining untrodden ground for elsewhere. Research by Cisco Systems of office space, the accelerated adoption many organisations. found that over half (53%) of larger of new technology and prioritisation organisations plan to reduce the size of of more secure supply chains. their office space after the pandemic.

The world is in the midst of perhaps the The result of this shift away from biggest shake-up to business practice DIGITAL TOOLS FOR REMOTE SUCCESS large, centralised offices is potentially since the invention of the internet. For companies considering a move transformative. UHY firms around the UHY’s global network of member to hybrid working, new digital tools world have already seen clients reduce firms is part of this change, working that promote virtual communication office space in preparation for a post- with businesses on the ground. and collaboration are vital. This could pandemic world. In addition, the flight REMOTE WORKING HERE TO STAY mean videoconferencing and file from city centres could see an increased sharing software, teamwork tools, and requirement for co-working spaces in the According to some estimates, three cloud-based unified communications suburbs and small towns where many or four times as many people could systems that let employees make of us live. Remote workers may replace be working at home after the professional calls from anywhere. the social aspect of office life by renting pandemic than before it began. communal desk space closer to home. “You don’t necessarily need to spend But making remote work as productive a ton of money; there are many cost- The appeal of smaller offices away and collaborative as its office-based effective solutions out there,” says Adil. from city centre locations is one Roman counterpart can be a challenge. Adil The worry, he adds, is “the digital highway Seredynski, managing partner at Polish Buhariwalla, partner at UHY James suddenly widening, exposing businesses member firm UHY ECA Group, knows Chartered Accountants, UHY’s member to a huge magnitude of potential threat well. Lockdown has shown that it is firm in UAE, says the supervision of traffic, be it unintentional or malicious.” possible to work efficiently remotely, and remote workers requires physical has opened up the possibility of working distance but ‘virtual closeness’. There Eran Amir, partner at UHY Shtainmetz- from smaller offices and premises away is a fine balance to be maintained. Aminoach & Co CPAs, Israel, says the from the expensive centres of major cities. use of digital tools that give businesses “Remote supervision of work is untrodden the ability to switch quickly to home “Our own firm has set up an audit ground for many organisations, and working has become a key measure subsidiary in a small town near Warsaw,” threats arise from either too much of business resilience, and that remote Roman says. “It’s much cheaper and or too little of it,” Adil adds. working will make cybersecurity it’s a university town, so there isn’t a even more of a challenge. problem finding talented people. It’s one possible model for the future.” 18 UHY GLOBAL May 2021 PERSPECTIVES

COLLATERAL DAMAGE Donna adds that management of determination to make up for lost time. Both the increase in remote work multinational entities (MNEs) are now Entrepreneurial opportunities will be and the flight from city centres have focused on developing greater supply unlocked and the widespread shift to consequences beyond office space and chain resilience for the months and years digital platforms also offers possibilities location. UHY’s professional advisors ahead. “That might involve finding local for tech-focused firms and niche retail. predict that businesses relying on the suppliers, redefining supplier relationships Roberto says that entrepreneurs are already daily commute – food vendors near and using technology to change the cost sensing this shift. “Some entrepreneurs train stations, for example – may suffer, structure where applicable,” she says. see opportunities to get into new or they may decide to relocate in Adil agrees, but adds that sourcing new markets now, and venture capitalists tandem with the workers they serve. suppliers can prove tricky for many firms. are making money available. Risk takers Hospitality businesses that rely on “Businesses have to forge partnerships and adapters will be the winners.” corporate bookings may also lose out with new often, untried and untested Agile businesses with flexible workforces, in the ‘new normal’. In some cases, suppliers. This poses threats in terms of a ‘digital-first’ philosophy and low costs marketing efforts will need to target reliability, quality, costs, and production will be in the best position to exploit this remote working teams who will still come and distribution delays,” he says. wave of consumer spending. Eran believes together regularly for team building days, professional advisors can help businesses social contact and creative workshops. remodel themselves for the post-Covid Roberto Macho, managing partner at landscape. Could workforces be leaner and UHY Macho & Asociados, Argentina, more agile, perhaps by merging roles or the Lean and agile believes that some businesses, especially greater use of contractors and freelancers, in badly hit sectors like tourism and businesses that he asks? Businesses may require short-term hospitality, will have mothballed large credit to increase stock during a period of quickly adapt parts of their operations during Covid, limited income, and UHY member firms and that reshaping them for the post- to new business are on hand to help clients find the very best sources of credit for their needs. lockdown world might require “a pivot realities will thrive. through organic innovation and inorganic Roman also believes that a professional growth. Some may be forced to abandon services network like UHY can help the market in the longer term,” he says. entrepreneurs grasp opportunities. OPPORTUNITIES AS BUSINESS RESUMES “Through an ‘ask the expert’ platform, RETHINKING THE SUPPLY CHAIN There is no doubt that the post-pandemic supported by the Polish Chamber of UHY experts agree that changes to supply era will be a challenging time for many Commerce, UHY ECA Group shared chain management may be one of the businesses. But UHY advisors also predict information in the areas of labour lasting hangovers of Covid. “Supply chain a period ripe with opportunity. Lean law, civil and commercial law, digital disruption has clearly materialised with and agile businesses that quickly adapt transformation, finance, company Covid-19,” says Donna Frye, director to new business realities will thrive. liquidity and debt, bankruptcy, of transfer pricing, UHY Advisors Inc., restructuring and taxes,” he says. Michigan, US. “Supply chain reorganisation Some economists are even predicting has been constant for many (during Covid) a 21st century version of the ‘roaring With good advice and an agile mindset, and accounting firms like UHY have been twenties’, a consumer-led spending many companies will do well but for helping our clients manage the change.” spree driven by a post-pandemic others, the post-pandemic world will present challenges, as measures adopted during Covid become permanent. UHY member can help businesses navigate a new reality of hybrid work, accelerated digital transformation and a fresh focus on secure supply. n

For more information about UHY’s capabilities, email the UHY executive office, [email protected], or visit www.uhy.com

iStock.com/Pekic CLIENT STORY UHY GLOBAL May 2021 19

GAME ON UHY’S POLISH MEMBER FIRM IS HELPING A HISTORIC FOOTBALL CLUB WEATHER THE COVID STORM AND FIND SUCCESS Shutterstock.com/Marcin Kadziolka

Founded in 1906, MKS Cracovia is the performance on the pitch would never “We quickly agreed on the method oldest football team and active sports be undermined by financial issues off it. of cooperation with UHY ECA Group club in Poland. Its volatile history includes and the first audits went smoothly,” triumphs in the Polish top division (the For Comarch, UHY ECA Group’s reputation says Konrad. “All deadlines were met Ekstraklasa) at one end of the spectrum, for excellent service was well established. despite the occurrence of force majeure relegation and near bankruptcy at the “We already had positive opinions and during the audit period in the form of other. Today, after years in lower leagues credentials around UHY ECA Group the pandemic. We are satisfied with the club is re-established in Poland’s and UHY is a well-known brand,” says the quality and timeliness of UHY ECA top flight, and last year competed in Konrad Taranski, CFO and vice president Group’s services as well as with a fully the Europa League for the first time of the management board of Comarch professional approach to cooperation.” in decades. In 2020 Cracovia won the S.A. “We could draw on the experience Polish super cup for the first time. Off of earlier cooperation between UHY UHY ECA Group is now tasked with the pitch Cracovia’s fortunes are also ECA Group and other entities related completing the next Cracovia audit, which on the rise – it is now a subsidiary of to Comarch, so we were happy to trust may be more complex still. The Polish Comarch S.A., the club’s Cracow-based the firm with the Cracovia account.” Ekstraklasa was one of the first leagues sponsor and global software business to suspend matches due to the pandemic For UHY ECA Group, Cracovia is a listed on the Warsaw Stock Exchange. in March 2020. The league resumed in labour of love. “Cracovia is more than May, with games played without fans Football club finances are a complicated a football club, it is part of our football until the end of the competition in July. business, with income generated through history,” says Dominik Biel, partner at So far, 2020/21 season matches have gate receipts, media earnings, sponsorship, UHY ECA. “It is the oldest Polish club, been played behind closed doors. club shop sales, hospitality franchises and and the beloved club of Pope John Paul player transfers. Income can rise and fall II. Being an auditor of Cracovia is both As well as shortfalls in ticket revenue, on an almost weekly basis. A poor run a private and professional passion.” the audit will take account of other of form dampens matchday receipts and financial pressures caused by Covid, Associate partner Patryk Steidten shop sales, and success has the opposite with reductions in hospitality and agrees. “Football is my greatest hobby, effect. Outgoings are equally unstable. media income. Cracovia will weather so the analysis of the business was Player wages usually make up the lion’s the storm thanks to the support of one of my favourite projects.” share, and transfers can dramatically Comarch, but for UHY ECA it will be a alter the short term financial picture. football club audit unlike any other. CLINICAL FINISH Happily, the firm has the complete The trust between UHY ECA Group and STRONG PARTNERS confidence of the club and its parent Comarch was reinforced by the smooth Comarch first acquired shares in Cracovia’s company to perform to the highest handling of the first audit. UHY ECA holding company in 2003, and now holds standards. Konrad says the cooperation Group was contracted in 2019, and 66.11% of Cracovia share capital. In 2019 between Comarch and UHY ECA completed the audit during the first wave the club turned to Polish UHY member Group, and the quality of the work of Covid in 2020. Comarch was impressed firm UHY ECA Group to audit its financial so far has put the firm in a strong by the firm’s commitment despite the statements and licensee documentation, position to be considered for further challenges presented by lockdown. and to help ensure that the club’s contracts as the group expands. n 20 UHY GLOBAL May 2021

GLOBAL TRADE RESET HAS THE PANDEMIC FUNDAMENTALLY CHANGED THE PRINCIPLE AND PRACTICE OF GLOBAL TRADE OR SHOULD WE EXPECT BUSINESS AS USUAL, WITH ALL ITS FLAWS?

ome argue that without globalisation there would be no and to stimulate economic recovery. Scoronavirus pandemic, and that the pre-eminence of A number of pandemic-hit nations have international trade and travel is the architect of its own downfall. turned inwards to protect themselves and their economies, which is understandable Others see the pandemic as a turning point, a catalyst for a more but does not address a global crisis equitable, sustainable globalisation. with a global solution. Fortunately, after an initial ‘vaccine nationalism’ Meanwhile, trade tensions and popular economies, largely at the expense of from some countries, a more equitable unrest continue to shift the basics of people and communities who suffered distribution model is now being created, global relationships, redefining both threat most from the fallout. It was not recognising that global vaccination is and opportunity. As we look towards a enough to prevent a global recession, a prerequisite for global recovery. post-pandemic recovery, can a safer, fairer, since when most developed and many and greener renewal take place, or will developing countries have seen sluggish everything simply revert to a pre-pandemic growth. It also served to exacerbate status quo? Early signs are mixed. underlying problems, inequalities and increasingly underfunded public sector LEARNING FROM THE PAST infrastructures. As a consequence, too Having to put Many have likened the opportunity for many governments were cruelly exposed change presented by the coronavirus by the pandemic. Developing nations are people before pandemic to the immediate post World more vulnerable, already nursing high War 2 recovery, a time of significant levels of debt and poor healthcare. On profits has sent a investment, change and new blueprints top of all that, environmental stress has shockwave through for peace and security through economic emerged over the last decade as probably co-operation and social rebuilding. the pre-eminent global challenge. the global economy.

But perhaps a more sobering comparison COVID CROSSROADS is with the global financial crash of 2008, It is hard to imagine that global trade which saw free market economics in is not at a crossroads. After a year of According to the United Nations freefall and governments across the world Covid restrictions that have impacted Conference on Trade and Development scrabbling to keep the boat afloat. The lives, livelihoods and liberties, and (UNCTAD), governments need to world then as now, needed to address produced the deepest global recession recognise that expansionary fiscal climate and biodiversity change, and since post-war records began, the measures need not be confined to poverty, as well as the state of global way out is still uncertain. Having to emergency response, and that ongoing healthcare and risk preparedness. Planning put people before profits has sent a investment will be critical to global and implementing the 2008 recovery shockwave through the global economy. recovery. In its Trade and Development was an opportunity to address these Report 2020, ‘From global pandemic to issues – but the opportunity was missed. As a result, decades of prudent prosperity for all: avoiding another lost financial management have been decade,’ UNCTAD asserts that “Our main Instead, governments dug in and turned upside down (in some countries concern remains a misplaced optimism appeared to bail out the few at the more significantly than in others) and in the rules, practices and policies of the expense of the many, committing to governments have borrowed trillions of hyper globalized economy.” In other the preservation of financial systems dollars to fund domestic aid packages, to words, returning to the old ways will be a and a faith in market forces to restore keep people and businesses from collapse, FEATURE– GLOBAL TRADE RESET UHY GLOBAL May 2021 21

iStock.com/Hamid Ebrahimi

return to pre-existing problems. The world China will be a beneficiary and – despite swift recovery for all nations. needs to step up to the challenge – and lingering tensions over the current trade a global reset has to be part of the deal. imbalance between the two superpowers It remains to be seen how the Chinese – a resurgence in both economies is good and US administrations in particular Nevertheless, some finance ministers news globally, the US and China between manage their relationship over the next are already talking up debt reduction them accounting for c.40% of global GDP. crucial months and years. 2021 has initiatives – cuts to public services, already seen a sanctions-led response increased taxation – even while their from major players and others, to alleged citizens and businesses are struggling human rights breaches. Meanwhile the with a second or third wave of the complex challenges of Middle Eastern virus. The danger, as UNCTAD sees it, is nuclear diplomacy, border issues between premature fiscal tightening and a return A ‘race to the top’ India and China, massive social unrest to the same market-driven economics on green spending in much of Latin America, East Africa’s as before. It would solve nothing and internecine conflicts, a potential power be another opportunity missed. for jobs and vacuum in the European Union (EU) with Germany’s Angela Merkel stepping down A RACE TO THE TOP infrastructure would this year, and the burgeoning threat of What nations do next has rarely carried encourage everyone. cyber hostility everywhere – all of this more significance for the future wellbeing will continue to occupy policymakers of the global family. In the United and populations as countries struggle States, a new administration under to reboot trade and development. President Joe Biden has shown positive Importantly, the US administration early signs of grasping, not missing, wants to boost renewable energy with In Europe the United Kingdom, Europe’s the post-pandemic opportunity. On substantial investment over the next ten second largest economy in 2019 (with his first day in office Biden signed the years, starting now. Targets of net zero a GDP of USD 2.8 trillion, according papers to bring the US back into the emissions by 2050 and a zero carbon to World Bank statistics), left the EU Paris Agreement on climate change, and grid by 2035 are ambitious, given the single market and customs union on the country is now formally readmitted, country’s relationship with fossil fuels, but December 31st 2020. For both parties, sending a strong signal of intent. a big step in the right direction. With both the full impact on trade is unclear, China and the US vying for economic and Covid lockdowns (now in a third What is more, the Senate has approved a and technological leadership, a ‘race to wave in many European countries) only massive USD 1.9 trillion stimulus package the top’ on green spending for jobs and muddy the waters. Geopolitical tensions to aid US recovery. Like many other infrastructure would encourage everyone. present a further challenge to the UK countries struggling under Covid in 2020, government, which must meet the needs ongoing crisis response saw spending that EXISTING TENSIONS of a restless Union. Scotland’s ongoing was not entirely environmentally friendly, Unfortunately the coronavirus call for independence, and Northern with large sums shoring up beleaguered pandemic has only served to exacerbate Ireland’s dissatisfaction with a sea border sectors such as oil and minerals extraction. many of the geopolitical tensions between itself and the rest of the UK as But the US package and Biden’s intentions that have been impacting trading a result of Brexit, are major obstacles to going forward are a cause for optimism. relations around the world before and a collaborative strategy for recovery. An early boost to consumer spending during the crisis, and this reinforces is anticipated, much of it likely to result high barriers to a collaborative and in the purchase of imported goods. 22 UHY GLOBAL May 2021 FEATURE– GLOBAL TRADE RESET

BlackRock, Inc. in New York, US, is the iStock.com/Massimo Giachetti world’s largest investment and asset management company, with USD 8.67 trillion in assets under management (as of January 2021). In his 2021 letter to CEOs, the BlackRock Chairman Larry Fink provided an upbeat perspective on sustainable stocks, and the accelerating movement of investors into environmentally sound assets. An advocate of the belief that climate risk is investment risk, Fink’s message for business is clear. “Companies with a well-articulated long-term strategy, and a clear plan to address the transition to net zero, will distinguish themselves with their stakeholders – with customers, policymakers, employees and shareholders – by inspiring confidence that they can navigate this global transformation,” he says.

With the tilting of capital into climate- secure investment, more nations pledging net zero carbon targets and an increasing However, despite all of the world’s sustainable direction. Greta Thunberg’s realisation by business that a genuine tensions, early signs of economic recovery determination to shame the developed commitment to the principles and in 2021 at a global level are more positive world governments into action practice of environmental, social and than many had anticipated. The OECD over climate, would be an extreme corporate governance is the path to a Economic Outlook, Interim Report March example, but business has a critical brighter future, then there are reasons to 2021, for example, predicts a global GDP role to play too. Given that there is an be optimistic. Global scientists working growth of 5.6% for this year, up a full international regulatory commitment to together on finding a vaccine delivered a percentage point from the December tackle corporate issues like tax evasion truly astonishing result. Now governments forecast, and more than most analysts and profit shifting, then leaders and and business must do the same. n had predicted as the pandemic stopped stakeholders on the ground might also everything in its tracks during 2020. want to consider putting their weight For more information about UHY’s behind environmentally beneficial capabilities, email the UHY executive ON THE GROUND DIRECTION investment programmes, better corporate office, [email protected], or visit What is more, at a microeconomic governance, greener pensions and more www.uhy.com level, there is a lot that can be done purposeful corporate social responsibility. to help steer recovery in a more

MAKING IT ADD UP worst of the pandemic, not only by governance (ESG) is fast becoming a Global accountancy networks like UHY delivering engagements on time and watchword for boards, shareholders and will have an increasingly important without compromise, but also by capital markets. Brands know this, and role to play in business sustainability, helping them navigate and benefit today’s consumers are smart enough because their member firms are from the myriad Covid compensation to know the difference between lip uniquely placed to turn rhetoric into schemes offered by many governments service and genuine commitment. An action. The profession’s representative across the world: grants, loans, tax essential component of the deal will body in the UK – and increasingly breaks, furlough and other labour be a company’s non-financial reporting internationally – the ICAEW, (Institute support programmes, restart funds, of its environmental, social, diversity of Chartered Accountants in England filing deadline extensions and so on. and other measures. UHY accountants and Wales) talks of regeneration with ‘a Taking care of the profit and the people. have the detailed knowledge, process triple bottom line’. Profit. People. Planet. experience and expertise with data Soon, professional advisors will step that can inform clients’ strategic It is a neat truth. Throughout 2020, up again, knowing that the triple thinking, and help them embrace a UHY member firms have been bottom line includes the planet. successful and sustainable future. supporting their clients through the Environmental, social and corporate SERVING CLIENTS, SERVING COMMUNITIES UHY GLOBAL May 2021 23

STAR QUALITY AFTER A YEAR LIKE NO OTHER, WE CELEBRATE THE MAGIC THAT MAKES UHY SO SPECIAL – OUR PEOPLE.

EMERALD ISLE’S PINK ARMY

During Covid UHY Farrelly Dawe registered as sponsors again. We BEST INVESTMENTS White Limited, Ireland, sponsored were also very lucky to have world The Crain’s business network is one of and took part in the 100K in 30 class football players Rio Ferdinand, the most respected in the US and does days challenge in June 2020 to raise Sergio Aguero, John Hartson, and not hand out awards to just anyone. funds for Breast Cancer Ireland. other stars, support the event.” Two exceptional UHY professionals Teams joined the ‘pink army’ along caught their attention in 2020. with 15,000 people worldwide to Julie Manteria, (above left) director of raise EUR 1.2m (USD 1.47m). “When marketing at UHY Advisors Inc., New York, we were working from home this US, has been driving public relations and was a great way to maintain team digital marketing initiatives to support spirit,” says Alan Farrelly, managing our brand for over five years. Last year director. “For 30 days our firm walked she became the first UHY marketing over 10,000 kilometres, raising professional in the US to be appointed more than ten thousand euros (USD principal. Despite Covid, Julie’s efforts kept 12,300). We plan to play an even UHY Advisors’ profile in the spotlight. bigger part in 2021 and have just Crain’s New York Business honoured her as one of its ‘remarkable cohort’ of Notable Women in Accounting and Consulting. “She worked on the firm’s complete redesign of their website, led the marketing integration of a multiple office merger, and swiftly launched the firm’s crisis management services campaign in response to the global pandemic.”

Julie says, “It is an honour to be counted among this talented group of women.”

Meanwhile Crain’s Detroit Business arm recognised ‘inspiring’ Kathy Crockett managing director, UHY Advisors Inc., Sterling Heights, Michigan as MAXIMUM TALENT a Notable Woman in Finance.

Max Whiteley of UHY Hacker Young, of the Year. The Manchester team “She led the firm’s Great Lakes region of Manchester LLP won an Apprentice won Large Firm of the Year at the Women Invested in Success & Excellence of the Year award at the 2020 2021 UK and EMEA Xero Awards. (WISE) programme, which focuses on Made in Manchester awards, where leadership, the advancement of women and judges praised his commitment enhancing career opportunities. She inspires and outstanding client feedback. others to develop expertise in policies, trends Max was also nominated for Best and technology affecting the industry.” Digital Rising Star at the 2020 Digital Kathy was also nominated for a 2020 ATHENA Accountancy Awards and Insider’s Award, which honours ‘an established Young Apprentice of the Year leader and mentor who assists women in Award in 2020 (assistant manager reaching their full potential and demonstrates Ellie Driver, was also shortlisted in excellence, creativity, and initiative’. the Young Accountant category) and in 2021 for Young Accountant LET US HELP YOU ACHIEVE FURTHER BUSINESS SUCCESS To find out how UHY can assist your business, contact any of our member firms. You can visit us online at www.uhy.com to find contact details for all of our offices, or email us at [email protected] for further information.

UHY is an international network of legally independent accounting and consultancy firms whose administrative entity is Urbach Hacker Young International Limited, a UK company. UHY is the brand name for the UHY international network. Services to clients are provided by member firms and not by Urbach Hacker Young International Limited. Neither Urbach Hacker Young International Limited, the UHY network, nor any member of UHY has any liability for services provided by other members. © 2021 UHY International Ltd. The editorial opinions expressed in the magazine may not necessarily be those of UHY International Ltd or its member firms. Every effort is made to ensure accuracy but the publishers cannot be held responsible for errors or omissions. No part of this magazine may be reproduced in any form without prior permission of UHY International Ltd. We thank all contributors. Design: Flex with UHY International. Editorial: Flex with UHY International. Photography supplied by UHY member firms, their clients and from stock.

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