ISSUE 45» JUNE 2018

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Chartered Accountants BREXIT BRIEFING & TAX Elect Feargal as President MATTERS PKF-FPM Managing Despite the best efforts of the Director Feargal NI political parties and the FREE INSIDE McCormack has British and Irish Governments, been elected the reality is, that the journey of President of Chartered implementation has been just Inheritance Accountants Ireland, the as complex and challenging Tax UK all-island professional body as Talks Chairman George which represents more than Mitchell envisaged that it Pg2 26,000 accountants across would be. the globe. Feargal, who “Huge progress has been succeeds Shauna Greely, made, not only in terms of Agrifood was elected at the Institute’s lives saved, but the economic AGM in Belfast on Friday and quality of life on the island Businesses 18 May. has been transformed. I for Pg6 In his inaugural address, one, prefer the complexities Feargal said his over-arching of peace, acknowledging the theme for the coming year will start/stop frustrating pace at Financial be caring and people-focused times, to the simplicity of war,” Feargal McCormack elected 2018-19 President Health and that he will adopt a TEAM Feargal said. Pg6 approach where working invisible and undermines the knowledge to help others Chartered Accountants Together Everybody Achieves ability of traditional business and to speak out on behalf Ireland is a principled voice More. to stay the pace. It is my belief of the community in Northern on a broad spectrum of “We are experiencing that leadership in the corporate Ireland, acknowledging that business issues including challenging global political setting is centred on the huge progress has been made Brexit, taxation policies, and and economic times, including ability to deliver change. Only in the 20 years since the Good education. Acknowledging the continuing uncertainty adaptive organisations endure Friday/Belfast Agreement. that the current uncertainty around Brexit, and changing in today’s rapidly changing “We all know the around Brexit and a functioning regulation - a landscape where business environment. To challenges and difficulties NI Executive are very digitalisation and globalisation put it simply, I believe you that have been faced in the challenging, Feargal said the have become partners in a race either innovate or evaporate,” intervening years in securing one factor that will make the for corporate differentiation, Feargal stated. the full implementation of the greatest contribution, to the where technology makes Feargal urged chartered Agreement and subsequent international competitiveness time zones irrelevant, borders accountants to use their St. Andrews Agreement. CONTINUED OVER >> Prestigous National Tax Award Win HOW WILL Leading island based Commenting on the well connected through the PKF BREXIT accountancy and tax award, PKF-FPM Senior Tax International global network consultancy practice Director, Paddy Harty said the and thrive on being one step AFFECT PKF-FPM Accountants were practice was delighted to be ahead of the ever changing tax recognised for its commitment environment.” proclaimed Tax Team of the to providing best in class tax The Irish Accountancy YOU? Year at the Irish Accountancy advice and thought leadership Awards event, hosted by Brexit will have profound tax Awards in April. Presenting for businesses across Ireland critically acclaimed stand- implications for individuals the prestigious award, the and Northern Ireland. up comedian, columnist and domiciled in Northern Ireland, judges highlighted the Tax Director Malachy broadcaster Colm O’Regan, the UK and Ireland. significant work of PKF-FPM’s McLernon (pictured) added, attracted an influential “PKF-FPM have created an audience, including high profile Find out how you and your Cross Border Tax Centre of business will be affected and Excellence which specialises exciting environment of tax leaders from the Irish business specialists who love tax, are and accountancy sectors. how to minimise your future tax in Irish and UK taxes. liabilities. Contact PKF-FPM’s Brexit Global Expertise with Local Knowledge |www.pkffpm.com Centre of Excellence. a newsletter from 2 pkffpm accountants about us PKF-FPM Review Could Spell Radical CORE VALUES • Passionately believe in caring for our clients, colleagues and Change for UK Inheritance Tax community. It is thought that the UK may propose • Listen, understand and solve, The UK has arguably one to make it happen. of the most generous a system along these lines, perhaps introducing a banded CAT system with • Invest in the Best! Inheritance Tax (IHT) regimes in the world, however a tax starting at 20% and rising to 30% on • Pushing out boundaries and lifetime receipts above £500k. creating opportunities. review currently underway could Another radical proposal under • A culture of ethical business lead to radical change. consideration is that Capital Gains Tax and trust. While cases involving multiple gifts will be charged at death on the difference • An ethos of positivity, and/or transfers into Trusts, can be between the market value of chargeable enthusiasm and fun! complex from a tax point of view, in assets belonging to the deceased, less general, the current Potentially Exempt their original base cost. At present in the Transfer (PET) regime enables wealth UK, there is no Capital Gains Tax levied PKF-FPM to be passed down the generations by By Paddy Harty Senior Tax Director at death and in fact, the beneficiary CORE FOCUS way of lifetime gift without the beneficiary receives the asset from the deceased paying any Inheritance Tax (IHT) PKF-FPM Accountants • Caring and proactivity are at estate at its market value at the date of provided the donor survives the gift by the heart of everything we do; deceased’s estate is taxed at a rate of death, thus providing, in many cases, a seven years. However, because of the significantly higher base cost for future • We commit to helping you apparent generosity of this regime, there 40% above the tax free band of £325k. maximise your wealth and With the addition of the residence nil disposals. lifestyle aspirations, through have been calls for reform. With all these potential changes to Inheritance Tax generated just over rate band this could rise to £900k for understanding you and your couples who are married or in Civil the current generous Inheritance Tax business; and £5bn in tax receipts in the 2017/18 and Capital Gains Tax regimes, anyone tax year. While this has increased by Partnerships. A generous aspect of the • We have a proven track UK IHT system is that unlimited lifetime contemplating lifetime gifting should record in delivering simple over 50% since 2014, IHT still accounts gifts can be made to individuals and are perhaps accelerate their intentions in solutions to complex problems. for less than 1% of every pound of case the IHT and CGT regimes are taxation raised and an incredibly low potentially tax free. However, reform could effectively herald the abolition of radically changed in this year’s budget in 4% of deceased estates pay any November 2018. PKF-FPM Inheritance Tax. Indeed, it is often said IHT, replacing it with a tax levied on the donee, similar to the system that prevails Care should be exercised when THREE UNIQUES that Inheritance Tax is only ‘paid by those embarking upon a strategy of lifetime who dislike their relatives more than the in the Republic of Ireland which has a (1) We ‘get’ you, and get things Capital Acquisitions Tax regime. gifting to children as gifts can trigger done. We foster a sense of Taxman’, suggesting the ease at which Capital Gains Tax liabilities and once urgency, with a bias towards this tax can be legally avoided. In the Republic of Ireland, each individual has a lifetime gift receipt given away, the asset is the property passionate thoughtful action In January, the Chancellor asked the of the child and therefore, becomes fair – (we’re business owners Office of Tax Simplification to undertake threshold of €310k for gifts received ourselves). from both parents. There are significantly game for creditors in adverse lifetime a review of the IHT regime. This review is events such as Bankruptcy, divorce, etc. (2) We’re different (“brave, bold currently underway and the Office of Tax lower limits for gifts received from siblings and gutsy”), we tell you what and other relatives, and from third party Life insurance should also be Simplification has issued a consultation considered when making PETs and we think, rather than what you document requesting evidence across strangers. Any receipts above these would like to hear. there are specific policies that can be a range of IHT matters, including in limits are taxed at 33%. Gifts received (3) Acknowledged on death are effectively Inheritances and purchased which take into account the particular the current lifetime gift or ‘PET’ decreasing value of the PET over the independently at local, regional regime. are taxed in the same way at the 33% and national level as “best in Capital Acquisitions Tax rate. seven year waiting period. class” with unique Cross Border In the UK in the 2018/19 tax year, a expertise.

FROM COVER >>

in Northern Ireland and indeed Off-Payroll on the island of Ireland, is Appointment political stability. Workers “We can’t change the past, Newry Office: indeed we have probably In the Autumn Budget Dromalane Mill, been shaped by it, but we can The Quays, Newry 2017, the UK government T 028 302 61010 influence the future. Therefore, announced it would con- I believe we must support and sult on how to tackle non- Belfast Office: encourage our politicians, compliance with the off-payroll 1 - 3 Arthur Street, Belfast including Secretary of State working rules in the private sector. T 028 9024 3131 Karen Bradley MP, herself a IR35 rules ensure that people Chartered Accountant, to grasp Dungannon Office: working through a personal service 30 Northland Row, Dungannon the current opportunity now, company (PSC) who would have T 028 8775 0400 to deliver political stability for been employees if they had been the island of Ireland. I note, engaged directly, pay broadly the Mallusk Office: it was John F. Kennedy, who same Income Tax and National Unit 1, Building 10, Central Park, stated: ‘Let us never negotiate Insurance contributions (NICs) as Mallusk Road out of fear, but let us never T 028 9083 0801 if they were employed. However, fear to negotiate’. Compromise HMRC estimates that only 10% Dundalk Office: for the greater good, must be of individuals working in this way Block 5, Quayside Business Park encouraged, accepted and apply the rules properly, costing the Dundalk, Co Louth. celebrated in a mature society.’ Exchequer hundreds of millions of T 042 9388898 “We owe it to ourselves and PKF-FPM has announced the pounds in lost tax revenues every to future generations, to ensure Balbriggan Dublin North Office: appointment of Gary Digney as year. Balbriggan Business Campus that political stability, and an equity director in the firm. HMRC is currently seeking Balbriggan, Co Dublin mutual understanding are the A Chartered Accountant and views on the best way to tackle T 01 6913500 norm on the island of Ireland,” member of the Association of Business non-compliance with the off-payroll Feargal added, concluding his working rules (IR35) in the private www.pkffpm.com Recovery Professionals, Gary joined address by asking, “If not now, PKF-FPM in 2008. He specialises sector. Given the growth of the [email protected] when? And if not us, who?” in Insolvency and Recovery and is sharing economy, this is an important Feargal’s term of office as authorised by the Insolvency Service area. The consultation closes on 10 President runs for a year from of Ireland to carry on practice as a August 2018. For more information, May 2018. personal insolvency practitioner. please contact a member of our tax team. All details and tax data correct at time of going to press. PKF-FPM cannot be held responsible for any errors, omissions or action taken as a result of the enclosed information. PKF-FPM always recommend that you seek professional advice and consultation. a newsletter from pkffpm accountants 3

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ISSUE 45» JUNE 2018 Rory's Rugby Grand Slam In what has been an historic year, Ireland rugby captain Rory Best raised the Six Nations and the Triple Crown trophies after the NatWest Six Nations match between England and Ireland at Twickenham Stadium on St Patrick’s Day, which Ireland won 24–15. To celebrate what is only the third Grand Slam in history for Ireland, Banbridge RC hosted a special dinner on Saturday 12 May where Rory was the guest speaker. A PKF-FPM client, Rory took over the Ireland captaincy in 2016 ahead of the Six Nations champion- ship. He is Ireland’s third most capped player, having won 111 caps to date and has recently signed a new contract with the IRFU contract covering the period up to the end of the 2019 World Cup.

PKF Global Leaders Visit Belfast PKF-FPM Managing Director, Feargal McCormack, was delighted to host the Leaders of the PKF UK and Ireland firms at a strategic plan- ning session in the firm’s Belfast office in March.

Ireland Captain Rory Best with brother Simon who has also played for Ireland and captained Ireland in a Lions Tour against Argentina, and their father John. This historic photograph was taken on the family farm with the Triple PKF-FPM’s Paddy Harty, Michael Farrell and Feargal Crown and Grand Slam trophies. Rory McCormack with Rory Best and his father John at the and Simon are the first brothers to Banbridge RFC Grand Slam Dinner. captain Ireland.

All-Ireland Role for PKF-FPM’s Alison Burnside PKF-FPM’s Alison Burnside Jackson is the new All-Ireland Tax Conference President of the Girls Friendly PKF-FPM Director Malachy McLernon, Chair Society in Ireland. of the CIOT NI Region, was one of the key Alison, a director in PKF-FPM’s Corporate speakers at this year’s Irish Tax Institute annual and Personal Insolvency & Recovery team, conference. Malachy (left) is pictured with John was commissioned into her leadership role McGrane, British Irish Chamber of Commerce; on Saturday 12 May in St. Patrick’s Cathedral John O’Loughlin, PwC; Carol Lynch, BDO; Armagh. The ceremony was conducted by Mrs Irish Tax Institute President David Fennell; and Thembeka Pama, the World Wide President Darragh Duane, PwC of GFS. Alison’s appointment is for two 3-year terms. Alison Burnside with Feargal McCormack, Thembeka Pama and Teresa Campbell. Avoid Bad Debt Seminar Experts from PKF- FPM, Coface and Credit Risk Brokers were at the Glenavon House Hotel in Cookstown in April to provide advice on avoiding bad debt and trading confidently. Pictured at the breakfast MLN Summit seminar were Ruairi Martin (PKF-FPM), John Simpson World-leading leadership and executive coach (Credit Risk Brokers), Paul Rene Carayol MBE was in Belfast in April where McAnallen, Anthony McDowell he addressed delegates at a Management and representatives of Meteor Leadership Summit. Rene (fourth from right) Electrical. is pictured with Director Teresa Campbell and members of TEAM PKF-FPM. a newsletter from 4 pkffpm accountants

Major Accolades for Novosco Managed cloud provider of the largest NHS Trusts in the UK, and Novosco won a trio of top several of London’s biggest housing awards in April across two associations. major Northern Ireland awards The company was founded by local entrepreneurs Patrick McAliskey and schemes. John Lennon. The Belfast-headquartered business Judges in the Belfast Telegraph Recognition won IT Company of the Year at the Business Awards said of Novosco: Belfast Telegraph Business Awards and “This company has discovered a for Cathal the overall Outstanding Business of the leading position in its market and has Year at the same event in the Crowne developed truly innovative solutions to CGDM Managing Director, Plaza, Belfast. help businesses become better and Cathal Grant was named Meanwhile, across the city, the more efficient. Its CSR efforts are to Business Person of the Year in the company’s Managing Director, Patrick Gary Parkinson, Susan Hill and Dominic be commended and its commitment to Aer Lingus TakeOff Foundation McAliskey, was named Business O'Neill of Novosco accepting the IT its own staff sets a standard that many Business Awards. Cathal received Personality of the Year at the Digital Company of the Year award from Sarah could learn from.” his award at a ceremony in the DNA Awards, which took place at St Little, Belfast Telegraph. The judging panel also praised palatial surroundings of the Anne’s Cathedral. Its clients include two Premier League the strength and commitment of the Institute of Directors Headquarters PKF-FPM client Novosco is a fast- Football Teams, many of Northern leadership team at Novosco in steering on Pall Mall, London attended by growing business that employs 180 Ireland’s top 100 companies, major the company to “phenomenal success”. some of Northern Ireland’s most people, mostly in Belfast, and also has universities in the UK and Ireland, some innovative companies. PKF-FPM offices in Dublin and Manchester. client CGDM Construction was also a finalist in the Best SME category. Re-Gen Waste Commends NMDDC Recycling

Plumbing Industry Accolades Gareth Chambers at Belfast Telegraph Awards. PKF-FPM client CTS Projects was named Contractor of the Year at the 2018 Northern Ireland Plumbing and Heating Industry Around Noon’s awards in April. Pictured receiving the award is Managing Director Connaire McGreevy. CTS Projects Winning Streak Re-Gen Waste Ltd has commended the recycling was also highly commended in the of Newry, Mourne & Down District Council as new Domestic Project of the year at the quarterly data from the Department of Agriculture and Northern Ireland Plumbing Awards Continues Rural Affairs (DAERA) verified its best waste energy recovery and Thomas McGreevy of CTS Around Noon CEO Gareth Projects received the ‘Unsung and landfill rates to date. Chambers is one of 24 finalists Re-Gen works closely with the Council to encourage local residents Hero’ award which recognises on the shortlist for this year’s EY an individual within the plumbing to recycle more by providing a co-mingled blue bin service. and heating industry who makes Entrepreneur of the Year Award. “In most recycling research, we are told that difficulty and The shortlist for this prestigious award a substantive contribution to their convenience are the most significant factors in determining participation includes some of the top business minds in the company, local community or by householders,” commented Re-Gen Managing Director Joseph country. PKF-FPM client Around Noon has also charity. Doherty (pictured), adding that household friendly schemes such as been named one of Ireland’s best managed co-mingling recyclables in blue bins are preferred by residents over companies in the Deloitte Best Managed pre-sort schemes. Companies programme. PKF-FPM client Re-Gen recently invested heavily in a state of the In April, Gareth was named Young Business art glass screening plant at their Newry headquarters to improve the Person of the Year at the Belfast Telegraph Business screening and cleaning of recycled glass, so rather than send it to Awards and in May Around Noon picked up two landfill they can recover 95 per cent for recycling. The company is awards for its breakfast toast at this year’s British uniquely positioned to accept and sort materials commingled with Sandwich Industry (Sammies) Awards. glass for customers and councils across Northern Ireland and the UK.

Washington Conference Demolishing Michelle Hawkins, Michael Farrell, Malachy McLernon and Teresa Campbell represented PKF-FPM at the Chartered the Opposition Accountants Ireland Ulster Society Conference in Pictured receiving the Washington over the May bank holiday weekend. Demolition Contractor of the Year More than 130 of Northern Ireland’s Chartered Accountants attended the Award at this year’s Machinery conference which examined cross-Atlantic business links. The event provided Movers Magazine Awards are an opportunity to hear first-hand about the current climate for business and team members of PKF-FPM investment. With the impact of Brexit looming, Northern Ireland’s business client John Tinnelly & Sons, links with the US could be more important than ever before. the demolition, recycling and environmental specialists based in Newry. 5

millions of registered footballers wearing performance technology ISSUE 45» JUNE 2018 similar to that used by the game’s top players within three years. STATSports Group Managing Director Jarlath Quinn said. “Players, parents and coaches are looking for data that can really help them improve and the APEX Athlete series GPS units do just that. “Our expectation is for millions of registered players in the U.S. to be wearing these devices by 2022 and this will revolutionise the way young players train, Excellent recover and perform. This will be the world’s largest Performance data collection programme on Team members from Kellys Point Hire pictured athletes in any sport across both receiving an Excellent Performance certificate at The Jarlath Quinn, Group Managing Director, STATSports with Taoiseach professional and recreational Hire Awards of Excellence in London in April 2018. Leo Varadkar and Paul McKernan, Chief Information Officer at levels. The information is so rich A family run company, PKF-FPM client Kellys Point STATSports. it enables everyone to make Hire has one of the largest hire fleets in Ireland. better decisions on training and performance. “Key Performance Indicators Deal of the are emerging by position that will assist with developing national standards, player development initiatives, national Re-Gen Waste Year Award for team selections, in-game tactical considerations, reviewing Commends NMDDC training responses in real time STATSports and adjusting practices based upon environmental change and Recycling Hot on the heels of Deal of the Year Award at The conditions”, Jarlath added. winning ‘Best SME’ Irish Times business awards STATSports is a leading global provider of GPS player tracking McElwaine Security at the Aer Lingus in Dublin on 9 May 2018. and analysis solutions for elite TakeOff Foundation Earlier this year, Newry- sports teams which are worn by There was success for McElwaine Security at Business Awards in London headquartered STATSports athletes during practice games Ireland’s National Electrical Awards 2018 in May. The on Tuesday 3 May 2018, announced a ground-breaking and matches to collect intricate specialist electronic security services and solutions deal with the US Soccer data on their performance and provider was named Fire & Security Contractor of the PKF-FPM client STATSports Federation which should see Technologies scooped The physical wellbeing. Year for 2018. McElwaine Security, a PKF-FPM client, has business operations in both Ireland and Northern Ireland. Three Generations Michael Finnegan’s family-run business G3F Invest Ltd has recently constructed a 250kW wind turbine almost 50m tall at a site in Whitecross, Co. Armagh. The project involved various international participants including a turbine supplier and maintenance team based in the Netherlands. Store of the Year Pictured are three generations of the Finnegan family, PKF-FPM Client Tom McAvoy of Nisa Milestone Michael, his son Daithí, Jim Finnegan and Daithí’s Rathfriland receiving the Store of the Year Award cousin, James Hayes. (over 3,000 sq ft) at the Nisa Expo Awards. Kukoon Win Best In House Award In April, the annual DANI awards, which celebrate PDE New Premises Anglo/Indian Joint Venture success in the digital and creative industries Heralds Diversification EPAL, a joint venture between India's Energy Efficiency across Northern Ireland, After almost 30 years located in the Enkalon Services (EESL) and British-based EnergyPro Asset saw PKF-FPM client Business Park, Project Design Engineers Ltd have Management has recently acquired Edina, the Lisburn- Kukoon Rugs scoop the moved into new, purpose-built office premises headquartered energy solutions provider. Best In-House Team located within Lucas Exchange, off the Greystone PKF-FPM assisted in the deal negotiations. Pictured at the Indian High award, well-deserved Road in Antrim. The PKF-FPM client company’s Commission were (from left) Dinesh Patnaik (deputy High Commissioner), recognition for a hard relocation marks a new chapter for Project Design Tony Fenton (Edina joint managing director), YK Sinha, UK High working and innovative Engineers which will include repositioning for an Commissioner of India, and Saurabh Kumar, managing director EESL. team. exciting period of growth and diversification. a newsletter from 6 pkffpm accountants

Seven Steps to Safeguard Planning a Agrifood Businesses Holiday? Seek tax advice. on your supply chain, At this time of year, many Across the 3) Effective tax planning is staff requirements, dual people are looking forward to island of Ireland, essential in a sector where locations and joint venture going on holiday. When you are the agrifood decisions can have far opportunities. packing protection for the expected sector generates reaching consequences. Explore currency sunshine, you also need to think 5) £30bn turnover and Consider whether R&D management and about travel protection which will employs an estimated tax credits and enhanced commodity contracts for stop you getting burned if your 300,000 people. It’s a Capital Allowances could key supplies. travel operator becomes insolvent. sector facing unique be of benefit to your Check that your In the UK, the leisure and travel 6) business. accounting and industry is largely regulated by challenges and Consider the impact of management information the Civil Aviation Authority (CAA), effective planning 4) By Michelle Hawkins Brexit on your business systems are providing up the Air Traffic Organisers Licence will be critical for Director focusing in particular to date information so that (ATOL) and the Association of businesses to succeed you can monitor results and British Travel Agents (ABTA). into the future. Set out take immediate corrective CAA is the statutory corporation below are seven critical action where necessary. which oversees and regulates civil areas to focus on. Build an effective aviation in the UK. They run the 7) management team with ATOL holiday financial protection 1) Set targets. This is shared responsibilities. scheme which protects customers extremely important when More than any other who have purchased a flight or planning for growth. factor, the quality of your a package holiday from a tour 2) Ensure you have management team will operator. adequate resources to influence the long term All travel companies selling air fund growth. This includes survival and success of package holidays and flights in the seeking grant assistance your business. UK must hold an ATOL licence and where available. meet the necessary requirements. If an ATOL holder fails, then the repatriation costs of customers are met by the Air Travel Trust which is funded through the ATOL protection contributions and backed Judgement by a government guarantee. Need to ABTA is the largest travel trade association for travel agents and Mortgage on tour operators. Members have Restore to satisfy the ABTA board that a Family Home they hold a bond, guarantee or have security in place in sufficient Financial CVA amount for the protection of monies in Ireland taken by its members for the Depending on financial circumstances, provision of travel arrangements. Health? where an individual has an unpaid By looking out for these judgement mortgage on their family home accreditations when booking, you With an increasing number of well- which pre-dates 1 January 2015, they can ensure you have peace of may be able to use that judgement mortgage to mind to enjoy your holiday. known UK High Street shops prove eligibility for Section 115(a) of the Personal If you have any queries, please Insolvency Act and thus achieve a significant do not hesitate to contact Alison struggling financially, many are opting to enter write off. Burnside on 00442890243131 or at Personal Insolvency Arrangements (PIA) apply to [email protected] into Company Voluntary Arrangements to address both secured and unsecured debt. their liabilities in an ordered Secured debt is backed by an asset, for example, a and structured way. In recent mortgage or a judgement creditor. Spotlight on weeks, New Look creditors When the Personal Insolvency Act, 2012 was first have voted in favour of CVA By Seamas Keating introduced, many secured lenders exercised a veto, Strategic proposals and House of Director voting against Personal Insolvency Arrangements. Fraser announced plans to This meant that the families concerned could not stay Planning enter into a CVA. Standalone CVAs are in their homes. Business hates uncertainty but A CVA is a formal insolvency a popular restructuring To give the legislation teeth, the Government with Brexit looming uncertainty procedure in which a Company, choice because they avoid introduced a new provision allowing the Courts to is hard to avoid. So, now more with the help of a licensed the negative effects of review ‘no’ votes by the Banks. Under S115(a), the than ever, businesses need to Insolvency Practitioner, Administration whilst allowing Circuit Court and/or High Court can enforce rejected plan strategically to achieve presents a payment proposal the business to continue PIA proposals on Banks or creditors, provided that the their potential and safeguard to its unsecured creditors. If trading as well as reducing its proposal is fit, feasible and fair and that creditors are their future. Effective planning the proposal wins sufficient debts. Moreover, the licensed not unfairly prejudiced. requires a vision of what you support, it can help to restore Insolvency Practitioner, whilst Where a judgement mortgage creditor votes against want to achieve and a carefully a company to financial health. supervising the arrangement, a PIA, the debtor can appeal to the Courts under thought-out roadmap to get The CVA proposal contains can help the Company manage Section 115(a) seeking to enforce the deal on the Bank you there. Milestones must be key information such as details creditor pressure. or creditor. expressed in specific terms and of Company assets, its trading If your business is adversely Many creditors now realise that judgement carefully monitored to measure plans in the future, the likely affected by the retail slump, mortgages on family homes are not an effective way and track progress. If things don’t duration of the arrangement, PKF-FPM has licensed to collect debt and are therefore willing to do a deal go to plan, you can then take an explanation of distributions Insolvency Practitioners and within a Personal Insolvency Arrangement. corrective action. to be made to the creditors with a dedicated Restructuring and If you are about to have a judgement mortgage Strategic planning is also the a statement as to why the CVA Recovery team who specialise registered on your family home, or are coming key to delivering operational is desirable. in helping companies and under pressure from either a judgement mortgage or efficiency and will help you to CVAs are often proposed individuals in financial distress. mortgage creditor, contact Gary Digney at PKF-FPM increase your market share by the Company’s directors. Contact s.keating@pkffpm. Accountants Limited for further information and advice. and profitability. Long term, it Creditors cannot petition for com to find out more. Phone: Email: [email protected] Phone: 028 9024 3131. facilitates structured growth and a CVA. 028 9024 3131. enhances sustainability. To get to grips with strategic planning, contact our business advisory team. a newsletter from pkffpm accountants 7

Optimising Working Capital ISSUE 45» JUNE 2018 The healthier your working capital, include prompt working capital, the invoicing, managing stock and easier it is to pay staff work-in-progress, controlling wages and business costs, managing overheads, debts. Companies with strong reviewing contracts and working capital may also be negotiating better terms with able to obtain discounts and/ suppliers, and swapping short- or avoid penalties by promptly term debt for cheaper long-term settling their bills, explains debt. Feargal McCormack. Business owners can often Forecasting improve efficiency, profitability Accurate forecasting is another and cashflow when they focus on tool that can be extremely helpful. optimising working capital. The However, it requires access to first step in getting to grips with reliable financial information working capital is understanding your business efficiency which, and not all businesses have MJM Makes History what we mean by the term. in turn, boosts cashflow and the in-house expertise and ‘Working capital’ captures the profitability. Factors that can resources to produce accurate The arms of history seem to be firmly wrapped value of your company’s current negatively impact working capital forecasts. Where this is the around PKF-FPM client, MJM Group at the assets minus your current include wasteful spending, case, outsourcing can be a moment. liabilities. Two companies with overstocking merchandise, poor cost-effective solution. Real time As the world’s largest cruise ship, the Symphony similarly valued current assets management of labour resources accounting services provide of the Sea was preparing for its maiden voyage on can have very different working on Work-in-Progress (especially access to qualified accounting 7 April, the Azamara Pursuit sailed into Belfast for capital levels depending on in service businesses) and poorly professionals and 24/7 reliable a refit. their current liabilities. Similarly, controlled collection procedures information about your business The arrival of Azamara Pursuit in Belfast is companies with the same level (such as late invoicing or along with commentary and historic for many reasons, not least because it is of current liabilities can have inadequate creditor control). analysis. This improves decision the first time in the history of MJM Group that the different working capital levels making and helps make your company will complete a refit in Northern Ireland. depending on their current assets. A strategy as simple as providing telephone training for business more profitable. The nature of the contract is also historic in that it the person who chases your PKF-FPM organises regular is the first time any cruise company has awarded Why it is important debts can have a positive impact seminars to help clients improve complete project management responsibilities to an to optimise working on working capital and cashflow their working capital management. individual organisation. by helping to ensure that your If you would like an invitation to The Azamara Pursuit will be in Belfast until the capital end of July during which time MJM will manage Optimising working capital is customers pay on time. the next event, please contact a member of our team. her complete transformation to the Azamara Club important because it improves Other strategies that boost Cruise brand. Alternative Finance for SMEs A recently published Growth in the number of SMEs a challenge, with 70% of smaller British Business Bank was highest in London while businesses opting to forgo growth report reveals some Scotland has a more substantial rather than taking on external evidence that small SME business base and higher finance and 57% of smaller businesses are diversifying growth rate than both Wales and businesses not confident in their their choice of finance. In 2017, Northern Ireland. eligibility to secure a traditional the value of SME asset finance According to the report, the loan. deals (up 12%) and peer-to- significant increases in peer to Lack of awareness and peer business lending (up 51%) peer business lending and equity understanding of the full range both showed strong growth and finance deals (albeit partly driven and benefits of finance options increases were also seen in by a small number of very large available to small businesses, the value and number of SME deals) highlight a shift away from combined with a culture of equity deals (up 79% and 12% traditional financing methods. avoiding external finance, is respectively). This development is particularly impeding potential growth. In this According to the report, positive as equity finance is an context, the increased uptake Gold Award for England has an 88% share of important factor in achieving of diversified range of finance UK businesses, and contributes growth. options is a positive development Hill Engineering 87% of employment and 89% in 2017. However, further efforts The report states that the UK Hill Engineering, the Newry based exporter and of turnover in the UK. Within is a world leader for start-ups and are needed to address issues this, London has a substantially surrounding Patient Capital manufacturer of safety attachment products has has its highest ever population received a Deloitte Best Managed Companies higher share of turnover relative of small businesses. However, (investment from investors who to both the number of SMEs are willing to make a financial Gold Award for 2018. PKF-FPM client, Hill oper- while scale-up performance is ates from a 100,000 sq ft purpose built technically and employment whilst all other improving, it lags behind the US investment in a business without regions, including Northern the expectation of turning a quick advanced complex producing world class couplers due to scarcer later stage Venture and buckets. Ireland, have lower turnover and Capital (VC) funding. Demand is profit) and regional inequalities. employment ratios. The company’s significant growth has been driv- en by Managing Director Ian Hill’s (pictured above) uncompromising ambition to be the very best within his sector. It’s a position he’s used to and one he Action Cancer Leadership works hard to protect but Ian is quick to point out that it is very much a team effort. “We have invest- Recognised ed heavily, not only in ensuring our facilities and Congratulations to Action Cancer Chairman Norman Carson equipment is primed to meet aggressive production who was awarded Trustee of the Year at the CO3 (Chief targets but also that we have the people in place to Officers Third Sector) Leadership Awards on Thursday 3 May make it happen”. 2018 at the La Mon Hotel & Country Club. Norman has chaired PKF-FPM client Action Cancer since 2011 – a time when the organisation was going through one of the most challenging periods in its history. He has re-energised and re-focused the organisation and introduced strong governance. Under his inspiring leadership Action Cancer recently became the first charity in Europe to use 3D scans to x-ray women. He has also led the development of a new We do appreciate Screening Clinic and Therapeutic Centre of Excellence. referrals... 8 STAFF FOCUS

Daredevil Duo ISSUE 45» JUNE 2018 PKF-FPM daredevils Glen Nesbitt and Stephen Chu dusted off their capes recently to abseil 190 ft down Belfast City Hospital’s iconic yellow tower, rais- ing vital funds for Friends of the Cancer Centre. The charity funds life-saving and life-changing projects that make a real and lasting difference to the lives of thousands of local people affected by cancer and their families. In the last year alone, Friends of the Cancer Centre has put £1.2 million back into local cancer services.

Employees of the Year Congratulations to Caroline Preston (left) and Sarah-Jane Garvey, pictured receiving Employee of the Year Awards Sweet Sounds from Director Teresa Campbell at PKF- FPM’s recent staff day. of Success PKF-FPM staff members Ciara Reilly and Janette Burns, who are members of Newry Community Choir, celebrated double success recently when the choir took first place in both the Mixed Voices and the Hymn of Praise categories in the Newry Feis.

Lets Walk... Fresh look Charity Cycle Celebrating National Walking Celebrating the rebranding Taking part in Armagh Down Month, staff members from PKF- of PKF-FPM’s Belfast office Cycling Club Sportive in April were FPM’s Belfast and Mallusk of- were TEAM members Ashok PKF-FPM’s Mary O’Reilly and Amy fices, together with their families, Thomas and Paula Kearney. Mulholland who raised funds for enjoyed a walk to Loughshore. the Eamon Morgan Trust. Belfast Business Best Awards Members of Team PKF-FPM enjoying the Belfast Companies Business Awards in St Anne’s Cathedral in April. Day PKF-FPM TEAM members pictured with Director Teresa Campbell who cut the cake on ‘Best Companies Day’. The event celebrated PKF-FPM’s milestone success being placed 64th in the UK’s prestigious Sunday Times Top 100 Best Small Companies to Work for 2018. Charities Highlighted Picking Winners Newry, Mourne and Down District Council TEAM PKF-FPM enjoyed a fun day at the Aintree Chairperson Councillor Roisin Mulgrew recently Grand National in April as guests of QuickBooks UK. welcomed the leader of Sinn Féin, Mary Lou McDonald to an event organised to highlight the work of three charities: Davina’s Ark, Women’s Aid and Mental Health Forum. Pictured with Roisin Mulgrew and Mary Lou McDonald is PKF-FPM Director Anne Rooney, a volunteer with Davina’s Ark, which provides specialised services for individuals, young people and families affected by addiction. MOONEY EDIA DESIGN PRINT PUBLISH

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