THAMES VALLEY MARCH 2009 #165 £2.50 AN ELCOT PUBLICATIONS TITLE
Climbing out of the hole Corporate recovery & turnaround Free with this issue: •Law South East www.businessmag.co.uk contents 3
The best law firm
to work for in the Thames Valley The best law firm
to work for In the April issue of in the Thames Valle The Business Magazine regular features
• Property special News • Legal focus 4 Opinion – Who would be a banker? • Team building 4 Steve McQueen’s Desert Racer bike launched in UK 5 Firm celebrates first shared service centre for legal sector For more details 6 Shareleague 6 A windfall for the long-term sick? call: 0118-9745308 7 Deloitte fuels dynamic business practice p42 email: [email protected] 8 Exhibition – a real draw for local artists 9 Golf Ambassadors Programme launched 9 Surviving the slowdown 10 Area Sq appointed for design of new HQ 11 Basingstoke for business 12 Passionate about improving performance 13 Hadley to fill a void in Oxfordshire life AIM Barometer 14 AIM company valuations continue widespread slide Surrey News 16 Coutts relocates Guildford office p44 p8 Advice for Entrepreneurs 17 Reviewing employee benefit schemes Deals Update 18 Latest deals data from across the region Law 30 Reducing your exposure to stress in the workplace Finance 31 Home workers should claim tax relief 32 SEEDA commissions work to speed property recovery 33 M&A – they’re still on the agenda 33 Assessing the services of professional advisers p10 p36 Technology 34 Consolidation is the key to cutting costs Business Travel/Hospitality special features 36 Tylney tradition is a treat Serviced Offices Corporate Recovery & Turnaround 37 Move in, move out – but don’t get lumbered 19 Actsforrescuingbusinesses Property 20 Administration–amoderndayoverview 38 Market of opportunity 21 Usingthedownturntoyouradvantage 39 Professional advice pays off 23 Dedicatedinsolvencypracticelaunched 40 Mandelson performs groundbreaking ceremony 42 FRAs – a legal obligation 24 Pre-packscanbea‘validtool’ International Trade 25 Howeffectiveisa‘pre-pack’administration? 43 Go east and sell 26 Copingwiththerecession:somekeybusinesslessons 44 Present survival and future 27 Tradingwhilstinsolvent? prosperity 28 Cashflowmanagement–bestdefenceinuncertaintimes People 29 It’snotallbadnews 45 Movers and risers Diary Telecoms Chartered Surveyors 35 GurusetsupanappealingSTORMforRossKemp 46 Dates for your diary Services Offices 37 Movein,moveout–butdon’tgetlumbered
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 4 news www.businessmag.co.uk OPINION OPINION
Who would be a banker? For all your legal needs, whether business or personal In 2009, in Britain, a banker might as well wear a mask and carry a gun, as many people see him as enemy number one, robbing the taxpayer and causing misery among the nation’s businesses and SteveMcQueen’sDesert households. How has the reputation of the banker fallen so low? Why has our trust gone in the man RacerbikelaunchedinUK (or woman) once seen as the guardian of our finances? An Oxfordshire motorcycle manu- McQueen bike that he custom- motorcycles was well known and We all know that banks facturer is making a name for itself ised with close friend Bud Ekins inspired the owner of Métisse have done their best to use with its Hollywood connection. painstakingly recreated. The Motorcycles, Gerry Lisi to recreate that gun to shoot themselves Carswell-based Métisse frames are chrome-moly nickel his favourite bike. in the foot. Poor judgement by Motorcycles is currently hand plated and the motorcycles have a “One thing that I do have in banks over lending practices building a limited replica edition of fully reconditioned period Triumph common with Steve McQueen is a globally have threatened busi- the off-road motorcycle originally TR6 engine complete with a real love of motorcycles which be- nesses locally. designed by the Rickman brothers single Amal carburettor. They also gan when I worked as a mechanic Having seen the value of and built by Hollywood legend include styled footrests made to in the 1960s. The Desert Racer banks decimated, bankers Steve McQueen. McQueen’s preferred design. Each is such an iconic motorcycle that have got more flak for tighten- The Métisse Desert Racer is bike features McQueen’s signature when I took over Métisse via the ing the available credit at a time on sale in the UK for distribution on the tank badge and a certificate Rickman brothers, I was deter- when businesses desperately worldwide, with a full endorsement of authenticity. mined to bring it back into produc- need all the help they can get. from the McQueen estate. Twenty nine years after his tion and use traditional methods The fact that much of the new Only 300 of the motorcycles death, Steve McQueen remains to ensure that it is as close to the capital raised by the banks will be built at the Carswell site, an iconic figure, epitomising the original bike as possible.” has come from the taxpayer with every detail of the original essence of cool. His passion for After three years in develop- has added to the frustration ment, the Métisse Desert Racer of businessmen and women was unveiled at Motorcycle World across the country. at Beaulieu last year. The bikes, And then there’s the ques- which retail for around £13,000, tion of bonuses. Rightly or have already found homes with wrongly, the public has seen buyers from across Europe and this as an issue about reward- America – with Chad McQueen as ing failure. the company’s very first customer. So where does that leave “Having an endorsement our relationship with bankers? from the McQueen estate is very The plain fact is that banks important to us,” said Lisi. “This are a vitally important element has been a real labour of love – we in our economy and busi- were determined that our limited nesses need to have a close, edition motorcycles would match trusting and open relationship the McQueen version in every way with their bank. They need to – hand built in exactly the same know that advice from their way as they were back then.” bank is sound and that the finance they receive from their Details: bank is certain and unlikely to www.metisse-motorcycles.com suddenly disappear. Similarly, bankers need to know they can be trusted and that business people respect their judgement. Toxin-eatingsuccessforMicrobialSolutions And that means that banks Oxfordshire company Microbial treatment developed by Microbial very pleased that the trial with need to actively promote Solutions has completed the suc- Solutions, which renders toxic BAE Systems has proved the po- the positives, and show the cessful trial of a commercial scale metalworking fluids used in the tential of Microcycle Technology. business community what toxin-eating bio-reactor with BAE engineering industry less harmful Reducing the need for landfill, they are doing (to counter all the national focus about what Systems. before disposal. and avoiding other more energy- they’re not doing). Following the success of the Bacteria in the bio-reactor con- intensive processes, Microcycle Banks need to be closer to Microbial Solutions bio-reactor sume toxins and chemicals within Technology is environmentally their business community than in east Yorkshire, BAE Systems the metalworking fluids, reducing sound and can cut costs.” ever before. It’s time to rebuild is now negotiating for a 25-tonne their pollution by up to 98%, and Recently recognised by the bridges, and forge closer treatment plant capable of leaving behind grey water that is presentation of a BAE Systems relationships. It’s time to climb processing around half a million safe to dispose of in the sewerage Chairman’s Award for innova- out of the bunker... litres of waste metalworking fluid system. Toxic components are tion, Microbial Solutions is per year. converted to harmless gas and working towards a commercial David Murray The bio-reactor process there is no residual oily waste. launch of the industry-leading Publisher involves Microcycle Technology, Professor Will Pope, CEO of Microcycle Technology later this an ecologically friendly bacterial Microbial Solutions, said: “We’re year.
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk news 5
PwC recruiting Firmcelebratesfirstshared 1,000 graduates PricewaterhouseCoopers is servicecentreforlegalsector recruiting nationwide for around 1,000 full-time and intern positions Osborne Clarke has announced a Osborne Clarke believes the of a competitive, high quality and starting in April, June and Septem- £50 million deal with Integreon to legal industry will move to focus flexible service. Our clients exist in ber 2009, and has already seen a create the UK legal sector’s first on core legal services. Support a tough commercial environment 50% increase in applications. onshore shared services centre. services will be provided by a new and expect their lawyers to be as The Association of Graduate The seven-year deal answers generation of businesses focused focused and cost efficient.” Recruiters, based on its bi-annual client demand for greater efficiency on high-end multiple service provi- Sourcing non-legal expertise survey of the graduate jobs mar- and will see around 75 of Osborne sion to the professional services from one expert supplier will enable ket, expects the number of UK Clarke’s business services employ- community. Osborne Clarke to focus clearly on graduate vacancies to drop this ees transferred to Integreon. Osborne Clarke has worked its legal activities, while maintaining year for the first time since 2003. The shared services centre in with Integreon, the global leader flexible business service support Ian Smith, senior partner at Bristol will provide a full suite of in integrated knowledge and legal and cost stability. PwC Thames Valley, said: “For business support services to law process outsourcing, to develop Beswick added: “It is testament us it’s business as usual in terms firms. The majority of Osborne this business model. to the expertise and experience of of graduate recruitment. Our Clarke’s business services ranging Simon Beswick, managing part- Osborne Clarke’s business service requirements haven’t changed and from IT to business intelligence will ner of Osborne Clarke, explained: professionals that they will now be we are looking for drive, energy be handled by Integreon. “Having access to a full suite of involved in the growth of Inte- and commitment so that we can Over the past 12 months, specialised business support serv- greon’s UK and European offering. confidently invest in our people’s Osborne Clarke has put its working ices designed for the legal industry Both businesses have a clear focus skills to last a lifetime. We believe practices under the microscope, is a critical part of Osborne Clarke’s on innovation and providing quality graduate recruitment is a long- while looking at the way law firms vision of the modern law firm. service – this is a good fit for our term investment in the future of buy and use support services. The aim is to ensure the delivery people.” our business.”
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THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 6 news www.businessmag.co.uk
Thames Valley Peopleinfocus EMPLOYMENT LAW UPDATES Shareleague FROM BOYES TURNER Presented by
in association with Awindfallfor As well as the Shareleague for listed companies below, this month we take a look at AIM-listed Oxford Catalysts thelong-term Oxford Catalysts fuels and Oxford sick? Group, the innovator Catalysts’ chief ex- of specialty catalysts ecutive officer Roy for the generation of Lipski believes the clean fuels, will look acquisition marks In this month’s column, we look at the European Court back at 2008 as a the beginning of a of Justice’s (ECJ) decision in Stringer and Others -v- Her transformational year new phase in the Majesty’s Revenue and Customs (HMRC) concerning in its short history. development of the Despite the increas- Milton Park based holiday and holiday pay whilst on sick leave ingly difficult condi- company, the winner tions in the capital of the Innovation The ECJ’s decision markets, November category at this 2008 saw Oxford year’s Oxfordshire The ECJ has ruled that workers Catalysts complete Roy Lipski Business Awards. on long term sick leave are en- the acquisition of Ve- Lipski commented: titled to accrue statutory mini- locys Inc from US-based Batelle “The enlarged group has the mum holiday and pay if absent Memorial Institute, the world’s core technology and criti- for all/part of the holiday year. leading independent science and cal mass required to become Workers are also entitled to technology organisation, raising a leader in the fast emerging take accrued holiday at another £10.3 million via an institutional small scale synthetic fuels time – including the possibility placing in the process. market – a potentially significant of carrying forward holiday to a Velocys is the recognised new industry that could unlock subsequent holiday year. world leader in the design and sufficient supplies to produce What ‘holiday’ is applicable? development of microchan- hundreds of billions of dollars’ nel process technology for worth of transportation fuels This decision refers to the statu- the production of synthetic each year.” tory minimum holiday entitle- ment (including public holidays, Large (over £1 billion) this increases to 28 days’ from April 2009). It does not apply Closing price Closing price Change in 31/12/08 31/1/09 share price to any additional contractual RECKITT BENCKISER GROUP 2578 2675 4% entitlements. BRITISH SKY BCAST.GROUP 480 497 4% David Blomfield CABLE & WIRELESS 156.5 156.9 0% SHIRE 1012 1011 -0% Do employees have to ask to take BG GROUP 957 950.5 -1% holiday? employers will have to top up GLAXOSMITHKLINE 1284.5 1219.5 -5% to 100% for holiday on an an- The ECJ’s judgement states ICTL.HTLS.GP. 562 525 -7% nual basis. VODAFONE GROUP 139 129.7 -7% employers cannot place pre- BRITISH AIRWAYS 179.7 120.1 -33% WOLSELEY 384 172.7 -55% conditions on employees on What can employers do now? sick leave taking holiday, such Medium (£250 million to £1 billion) Employers will have to wait and as requiring them to formally see how the House of Lords Closing price Closing price Change in ask to take holiday. Therefore interprets the ECJ’s decision, 31/12/08 31/1/09 share price the right to take or be paid for DSG INTERNATIONAL 17.5 22 26% particularly the mechanics of GAME GROUP 127 143.5 13% holiday will accrue automati- how accrued holiday is paid/ MICRO FOCUS INTL. 282.5 303 7% cally. YELL GROUP 42.5 44.25 4% taken or carried forward. Now DE LA RUE 906 937 3% is the time for employers to ELECTROCOMP. 141.25 131.75 -7% Will holiday/pay expire or keep HALMA 202.5 183 -10% rolling over? check to see who is off sick, SPECTRIS 535 481.75 -10% why and for how long. Manag- MORGAN CRUCIBLE 111.5 96 -14% The judgement does not ex- ing sickness and absence is SEGRO 247 159.75 -35% clude the possibility that holiday never an easy task, but there is Small (£50 million to £250 million) can be rolled forward year to guidance available on dismiss- Closing price Closing price Change in year. However, the ECJ has left ing workers due to long term 31/12/08 31/1/09 share price it open to national legislators incapability and if anything ELEMENTIS 37.25 46.25 24% to consider imposing reason- FIDESSA GROUP 493 610 24% recent case law has actu- SDL 229 270 18% able time limits on when holiday ally made this slightly easier. COSTAIN GROUP 19.75 23 16% should be taken. This may GALLIFORD TRY 31.75 35 10% Employers should also look at SHANKS GROUP 109 97.75 -10% include allowing holiday to be their policies and contracts and INTERSERVE 227.25 199.25 -12% taken during sick leave. consider reviewing holiday and MCKAY SECURITIES 145 123 -15% sickness entitlements to ac- VITEC GROUP 235.5 188 -20% What will they be paid? BIG YELLOW GROUP 238.75 169.75 -29% count for any increased costs Holiday pay is calculated at the in the future. Sub – £50 million worker’s normal rate of pay, as Closing price Closing price Change in if they had been at work. 31/12/08 31/1/09 share price Details: UNIQ 4.15 11.25 171% EGDON RESOURCES 3.25 7.25 123% What if the worker is on David Blomfield INNOVISION RESH.& TECH. 8.75 15.5 77% permanent health insurance? 0118-9527224 ZINCOX RESOURCES 30.25 40 32% dblomfi[email protected] SOPHEON 7.5 9 20% When employee’s are in receipt AVIS EUROPE 3.93 3.17 -19% SINCLAIR PHARMA 18 14.5 -19% of PHI payment which pays a Emma O’Connor FULCRUM PHARMA 3 2.38 -21% proportion of an employee’s 0118-9527210 FOUNTAINS 54 42 -22% wages, it currently appears that [email protected] LOK’N STORE GROUP 49 37.5 -23%
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk news 7 Deloittefuelsdynamicbusinesspractice
Deloitte is delighted to once again be supporting the Thames Valley smart companies are now tak- ing another look at the market Business Magazine and its Awards programme. ‘This gives us yet and positioning themselves to another opportunity to demonstrate our commitment to Thames Valley move quickly – opportunities to buy assets from stressed or companies, particularly in the current climate,’ writes Ian Barton distressed owners can, in the current environment, appear at Sponsorship of the Deloitte well as a passion to grow and a moment’s notice. Banks and Dynamic Business Award is this develop; companies who are private equity remain keen to year being led by Ian Barton, a credit to the Thames Valley. invest in strong management who is in charge of Deloitte’s The Business Magazine itself teams who are working in at- Corporate Finance Advisory continues to report stories of tractive markets. business in the Thames Valley. optimism and success. Whilst “We are also seeking those Barton said: “Over the past economic challenges make who are managing and looking two years we have met a large business conditions tough, there after their people; giving them number of businesses from all remains plenty of opportunity for the opportunity to contribute sectors; in both 2007 and 2008 good businesses and we look where they can and trying to we had an excellent shortlist of forward to meeting companies maintain a sense of fun and finalists and have chosen ex- this year who are tackling these enjoyment – harnessing and emplary winners in both years. challenges and continuing to be developing the talents of their The quality of the entrants and successful. people remains vital to their their dynamic approach to the “We are looking for innova- business. challenges they have faced has tive strategies: all downturns “If you fit the bill we look impressed us and the independ- generate opportunities as well forward to meeting you in the ent judges we have used. as challenges – this year in coming months.” “As in previous years, we particular, we will be looking for are looking at many factors finalists who are taking advan- Details: when selecting our finalists. In Ian Barton tage of the growth opportunities Ian Barton volatile markets it is the dynamic presented by this environment 0118-3222486 business that will capitalise on our clients and it has always so that they emerge ahead of [email protected] new opportunities and be well been refreshing to see just how the competition. Well-capital- www.deloitte.co.uk positioned for growth and suc- many businesses in the Thames ised businesses who invest in cess when conditions ease. At Valley share that aim. their M&A capability can pick up Deloitte we endeavour to inject “We continue to look for some relative bargains. Clearly dynamism when working with real energy and enthusiasm as access to finance is critical and
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 8 news www.businessmag.co.uk AreaSqappointedfor designofnewHQ Office design and fit-out specialist Area Sq has been appointed to manage the design and build of the new 25,000 sq ft European headquarters for United Therapeutics Europe in Chertsey
United Therapeutics specialises in the devel- design process. This ensured the project was combination of carbon-neutral carpet and reus- opment and commercialisation of products to communicated internally and the design team ing some of the existing floor covering. address the unmet medical needs of patients received regular feedback. Gary Chandler, Area Sq’s managing director, with chronic and life-threatening cardiovascular The new building had to reflect United commented: “In the current market it is refresh- and infectious diseases and cancer. Therapeutics’ brand image and be built with ing to work with a fast-growing company which The company currently occupies three offices flexibility in mind, while also being inspirational puts it employees first and is open to design in Guildford and the objective of the reloca- to work in. The spacious, double high and light suggestions. By working in partnership with tion is to consolidate its business operations in reception area boasts green glass feature walls United Therapeutics and its staff we will achieve one location that will also accommodate future and James-Bond style seating. A large client a fabulous design.” expansion plans. and staff friendly breakout area is located in Robert Grover, European medical director, Area Sq has worked closely with the United close proximity to the boardroom and lecture added: “We are all very excited about the move, Therapeutics’ project team members located in theatre areas. The conference room includes particularly as everybody feels they have con- the UK and US to achieve a design that is both folding doors and modular furniture to enable tributed to the look and feel of our new office.” multi-purpose use. functional and contemporary, incorporating the Area Sq and Sketch studios are part of the All furniture was provided by Sketch Studios, latest technology and quirky features. United Fourfront Group: fourfrontgroup.co.uk Therapeutics acquired the freehold on the build- Area Sq’s sister company specialising in office ing, which meant design opportunities could be furniture procurement. Sketch designed flexible Details: explored in full without liability obligations on furniture throughout the building including be- Area Sq: Gary Chandler re-instatement. As a result, Area Sq was able spoke desks to allow easy reconfiguration. 01784-274000 to make structural alterations to the building to The open plan office area is light, spacious [email protected] create a design that is truly fit for purpose and and comprises a central library area featuring an areasq.co.uk meets United Therapeutics’ requirements. aquarium centrally positioned to be seen from all United Therapeutics’ objective was to put angles. Other facilities include a videoconferenc- Sketch: Justin Bass people at the forefront of the project and the ing suite, a gym and shower rooms. 020-7647-5255 company worked with Area Sq to organise con- United Therapeutics was able to minimise the [email protected] sultations amongst employees throughout the environmental impact of the fit-out by using a sketchstudios.co.uk
TEL: 0300 123 2244 [email protected] www.tvu.ac.uk/futureskills
RECESSION PROOF YOUR BUSINESS Businesses, large and small, need to respond appropriately to current economic challenges to ensure survival. The TVU FutureSkills team can bring new expertise and resources to support you through the economic downturn. Support includes a wide range of bespoke programmes, training and consultancy that can be delivered at your own business premises, TVU campuses in West London, Slough and Reading, or at our outreach and enterprise centres in Acton, Southall, Park Royal, Heathrow or Slough. With cutting edge programmes, a friendly team and a fully equipped training facilities we are ready to help you develop your business in difficult times. For further details please contact the FutureSkills team.
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk news 9 Survivingtheslowdown GolfAmbassadors All the talk of a recession has left many businesses feeling anxious about the months Programme ahead. Keith Stevens, partner in Wilkins Kennedy’s corporate recovery and insolvency launched team, looks at what businesses can do to
The Berks survive and where to go to for help Bucks and Oxon A long period of growth and (BB&O) Golf Part- prosperity in the UK has given way nership has teamed to a looming recession. As a result up with Buckinghamshire more SMEs are facing serious dif- New University to launch a ficulties. Unfortunately for some, unique Golf Ambassadors the combination of tight cashflow, Programme. growing bad debts and decreased The aims of the pro- sales are forcing formal insolvency gramme are to provide proceedings. students with real hands-on Businesses and their owners experience in the golf indus- can, however, take positive action try and to provide the BB&O to survive tough times. Golf Partnership with high quality sports management Assess your risks volunteers. in expanding the number Review the key areas of risk in Four second-year BA of clubs being awarded your business. Consider what (Hons) Sports Management GolfMark, which is a national you would do if your bank were Keith Stevens & Golf Studies students from accreditation scheme that to withdraw its support. Are you Bucks have been selected identifies and recognises aware of alternative forms of when cutting costs, particularly to work alongside the BB&O junior and beginner-friendly financing and how to go about in the case of price reductions or Golf Partnership in the new golf facilities. obtaining these? changes to your workforce. programme, which has been Sport England recognises and values the commit- developed by Francisco New funding Proactive tax planning Baeza (principal lecturer ment made by sports clubs Many businesses rely on overdraft There are many ways in which a at Bucks New University), in developing high quality and loan finance which is often business can improve the efficien- Justine Lawrence (develop- standards and welcoming limited by the security you have cy of their tax affairs by managing ment officer at the BB&O Golf environments for young available. Growing businesses tax payments. Establish whether Partnership), and Phil Beard people, and therefore it is a increasingly find that factoring, you are eligible for schemes (volunteer manager at the key priority within the BB&O which allows you to raise finance such as the VAT cash accounting England Golf Partnership). Golf Partnership. At present on the value of outstanding scheme or research and develop- Lawrence commented: there are 120 affiliated clubs invoices, is a more appealing op- ment tax credits. If you find you “The calibre of students and less than half of them are tion. Asset finance is particularly are currently unable to meet your interviewed was very high signed up to GolfMark, creat- useful for capital investment. For tax payments, work with your ad- which made the selection ing a huge opportunity for businesses looking to fund expan- viser or contact a recovery expert process difficult, but we’re the students to significantly sion, equity finance, provided by to assist in negotiating with HM delighted with the four develop this area. venture capitalists or business Revenue & Customs before you selected and look forward to The second project will angels, may be suitable. incur penalties. working with them. We are be working with a number of schools within Berkshire, sure that their contribution Manage cashflow Independent business reviews and youthful approach will Buckinghamshire and Ox- Knowing your cash position If you think your business may be prove most beneficial to the fordshire that provide some is critical. This can easily be in trouble seek external advice partnership.” form of golfing activities to achieved by regularly preparing early. External advisers can bring Baeza added: “This is an their pupils. The students will and reviewing forecasts. Look at a fresh perspective and offer alter- excellent programme that be working with the county ways in which you can improve native solutions. Your advisers can will be very beneficial to development officer and the cash generation or sensibly defer also help you prepare forecasts Bucks New University, golf Golf Foundation in estab- outgoings. Ensure you have ef- which provide a more objective students and the BB&O Golf lishing the school links and ficient invoicing practices. In the picture of the state of your busi- Partnership. On behalf of the providing a variety of initia- event of late payment, chase ness and can be useful in funding University and the students, tives to introduce children to quickly and assertively. Consider applications. Many directors of I would like to say that it is golf. They will be involved in using a collection agency if debt small businesses have secured great to be working with such providing thorough train- recovery becomes an ongoing their loans against their homes. By prestigious organisations ing to relevant organisers, a problem. Maintain a good relation- working with specialists early on from the golf industry.” leading coaching programme ship and communication with your you may well be able to sell your Beard from the England to junior golfers, and the de- bank – especially if you anticipate business and avoid being placed Golf Partnership confirmed velopment of junior specific difficulties. If you are experienc- into administration or losing your that if successful within the equipment and games to ing a cashflow problem, consider home and personal assets. Berks, Bucks and Oxon area, make the sport enjoyable for working with a recovery specialist. he is hoping to launch the all ages. These experts can help you nego- Details: Keith Stevens scheme nationally with other tiate with your suppliers, advise 01784-435561 county golf partnerships. Details: on debt repayment schemes and [email protected] The selected Bucks stu- 0800-056-5660 other steps you can take to keep www.wilkinskennedy.com dents are Lauren Drake, Luke [email protected] your business operating. Jennings, James McGilvray, bucks.ac.uk bbogolfpartnership.com and Rajiv Patel, and they will Overheads be mentored by Lawrence Look carefully at your expenses. and Baeza on two separate Cut back where possible. Rene- projects. The first project will gotiate more favourable contracts be working alongside the from suppliers such as utility and county development officer communication providers. Be sure to take a longer-term view
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 10 news www.businessmag.co.uk
Exhibition–arealdrawforlocalartists Local artists from across the able to help B P Collins with region have been given the op- their innovative exhibition space, portunity to showcase their work which has allowed many local in the latest community art initia- artists to display their work to a tive by law firm B P Collins. The varied audience for an extended Gerrards Cross-based practice is period. It is a real bonus for our a strong supporter of art projects artists to have work on show in and has now teamed up with an business environment and to Art Works for Business (AWB), be able to provide a source of a Creative Bucks project which enjoyment for the staff and visi- champions artists and business- tors to B P Collins.” es across the county. The exhibition runs until May Some 29 pieces of original art and visitors to The Chalfont Suite, which regularly hosts from 23 artists have been given From a painting by Brenda Hurley Artist: Isabel Fallow pride of place in The Chalfont seminars and events throughout Suite, the law firm’s state-of-the- artists and the creative com- which showcase the wealth of the year, will be able to purchase art suite of meeting rooms, with munity is important to us and the local talent, but that the artists the paintings. Since opening in a range of mediums including exhibition is a great example of will feel proud to see their work January 2008, previous exhibi- watercolours, pastels, acrylics the benefits of local businesses on display.” tions have highlighted work by and even computer pieces. and art working together. We Laura Boswell, AWB Co-ordi- German artist Helmut Otto and Karl Wingfield, chief operating hope that not only will visitors to nator, said: “I am delighted that photography students from Am- officer, said: “Supporting local our offices enjoy the artworks, Art Works for Business has been ersham and Wycombe College. Ground-breakingfutureplans forThatchamandTheale Alan Hadley may be entering its while driving environmental 76th year in the demolition and awareness and sustainability,” waste removal business but it’s said general manager Martin not short of ground-breaking Elford. plans for the future. “We believe we are now The Reading-based company ready and prepared for many aims to open two new opera- exciting opportunities in the tions in May – a waste transfer future,” he added. Not that station at Colthrop Business Hadley is waiting for things to Park in Thatcham, near New- happen. It is very much creating bury and a fresh landfill site at it’s own future. Ufton Nervet near Theale. Hadley strategic investment It is also very happy to be in a new aggregate washing at “a major crossroads” in its facility at Moores Farm, Pinge- business. Hadley is literally wood (near M4 Junction 11) has working at the reconstruction of now been operating success- the M4 Junction 11 intersection, fully since summer 2008. Nearly fulfilling a £1 million contract for a quarter of a million tonnes recycled foundation materials. per year of “muckaway” from Much like the long-awaited construction sites can be proc- M4 infrastructure project, essed on-site into five different Hadley is reconfiguring itself to high specification aggregate improve its operation, in prepa- products. ration for an expected increase Hadley is also preparing to in usage. operate one of the UK’s largest “We have now completed inert landfill sites at Shipton- our planned ‘root and branch’ on-Cherwell, Oxfordshire. It review of our business. This provides a step-change op- has clarified our aims and re- portunity for Hadley – limestone focused our operations on our extraction will begin over the customer needs and our core next two years. business strengths and values. What we are all about now is Details: putting the customer first, and 0118-9301991 providing economic solutions, www.hadleys.co.uk
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk news 11 Basingstokeforbusiness Basingstoke is “the business” transport and the M3 Junction 6, Leader of the council Cllr An- for local businesses, according closely followed by redevelop- drew Finney said: “Our business to a special question-time event ment of other commercial areas community is key to our future staged in the town. and business parks. prosperity and whilst the event Nearly 90% of more than 100 Transport links and proxim- shows we’re getting most things business delegates attending, ity to customers were the most right, we clearly have challenges including leading figures from important factors when choosing to face. I hope this is the first in a Barclays Asset Finance, LG Mo- a location for their business, said series of events which enable us Do you tion, Clydesdale Bank, HSBC and delegates. to identify and meet the needs of need more Tenon, agreed that Basingstoke Nearly half the businesses businesses in Basingstoke and was an excellent or good place to (46%) said they already had Deane.” clients? “do business”. measures in place to reduce CO2 Information gained and views The event, organised by Desti- emissions, and a further 20% said expressed at the event will be fed nation Basingstoke in partnership they were planning to do some- into consultation processes for with Basingstoke and Deane Bor- thing in the next five years. the council’s Economic Develop- ough Council, was also seeking Other topics discussed ment Strategy action plan and We provide local businesses’ views on what included commercial property, Local Development Framework. a refreshing support they needed. regenerating business areas, Top priorities for the future manufacturing, skills, inward Details: approach to: economic success of the borough investment, traffic and transport 01256-845692 were the redevelopment of Bas- links, and council support in the [email protected] sales lead generation ing View business park, improving economic downturn. www.destinationbasingstoke.co.uk and appointment setting
Judges based their decision ‘Best Branding’ award for law firm on aspects including the reach Boyes Turner won the national the Thames Valley firm’s HR and of the campaign, communi- cation of brand values, and accolade of the “Best branding marketing teams. It has run over creativity to ensure maximum campaign in 2008” at The Lawyer the past nine months and features effectiveness. magazine’s HR awards, held at many of the firm’s people. Chief executive Andrew Chalk- the Grosvenor Hotel, London. The judges felt that the cam- ley said: “This is fantastic news. Call us today: The industry award was gained paign made the firm “clear win- To stand out against magic circle THE BUSINESS DEVELOPMENT AGENCY for the Free Range Lawyers ners” and “head and shoulders” and national heavyweight firms 0118-934-4119 recruitment campaign, which was above the other two firms short- such as Linklaters and Lovells is www.achieveuk.com developed in-house jointly by listed – Lovells and Linklaters. a great achievement.”
10 years 2 million sq ft 22% regional market share
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STRUTT & PARKER Property Consultants
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THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 12 news www.businessmag.co.uk Passionateaboutimprovingperformance Kaleidoscope has a passion for helping organisations to improve their ful analysis of an organisation, its business and its objectives. performance: through people, process, systems and information, both We may need to address issues today and, perhaps more importantly, for tomorrow, writes Kieran relating to people, to informa- tion or to systems, using our Maloney, one of the company’s three founders and senior managers experience at a senior level to bring real understanding The group who founded Kalei- and practical solutions to our doscope in 2007 have a wealth customers. of practical experience from their time spent in blue-chip Each customer is unique companies and consultancy including developing pan-Euro- and will be confronted pean contact centres, imple- with unique issues menting CRM solutions and designing account management “Improving performance is our processes customers’ key objective. We A kaleidoscope is defined as derive enormous satisfaction a complex pattern of frequently from seeing our customers changing shapes and colours. grow and develop after taking To survive in business, par- on board the solutions we have ticularly during a recession, developed with them.” organisations need to continu- ously innovate and evolve and Details: unless managed well, these Kieran Maloney frequent changes can create 07785-335990 new and sometimes challenging [email protected] issues. The Kaleidoscope team www.kpcuk.com of Kieran Maloney, Paul Stan- Kaleidoscope’s three partners (from left): Chris Allbut, Kieran Maloney and ford and Chris Allbut works with Paul Stanford organisations to address the root cause of these issues and Kaleidoscope partner We offer bespoke develop high impact solutions Maloney commented: “Each solutions to custom- that are simple to implement customer is unique and will be ers; we base our and deliver positive results. confronted with unique issues. solutions on a care-
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THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk news 13
HadleytofillavoidinOxfordshirelife This spring recycling and waste management company Hadley, founded of local wildlife. A full-time ecolo- gist will be employed to assist in in Reading as a family business in 1933, is set to become the operator this process. of one of the UK’s largest inert landfill sites at Shipton-on-Cherwell, Hadley was announced last August as the preferred opera- Oxfordshire, writes John Burbedge of The Business Magazine tor for the site with an exclusive agreement with its owners, the It will also begin a long-term Kilbride Group. Planning matters project that will transform a 400- are currently being finalised with acre wasteland, which includes the Oxfordshire authorities. a derelict cement works and Although Hadley has grown ancient quarry, into a modern steadily, basing its progress on environmentally-conscious inert traditional values of customer sat- waste management site, which on isfaction aligned with a commit- completion will provide a mix of ment to the environment, it is not employment generating after-uses, unwilling to invest in its future. wildlife conservation areas and Hadley’s managing director public access as a leisure amenity. Pete Cannon said: “The Shipton The challenge is huge, the po- site will use the latest technolo- The Shipton-on-Cherwell site which is of special interest for its wildlife tential immense. The quarried site gies and techniques to maximise sustainability, but overall repre- has an inert landfill capacity – or able extraction will be undertaken ment Hadley has also become a “void reserve”, as it is known – in sents a further significant step while other areas are infilled. master of environmental “change in achieving our growth strategy, excess of 2.7 million tonnes. A new railhead will also be built management”. by opening up new geographical In addition, massive manufac- to help import inert waste. It has successfully undertaken markets and business streams for turing silos and factory structures The Shipton site is of spe- other large waste/environmental the company.” will need to be demolished, the cial interest for its geology and management projects at Chan- ruins of the cement works that wildlife, so operations will need dlers Farm Quarry in Eversley, Details: operated from 1929 to1986. This to be carried out sensitively. Two Hampshire, and in Berkshire at Pete Cannon, managing director includes a 60-metre high chimney, wildlife areas are planned, with Poors Allotment, Ufton Nervet, Martin Elford, general manager a local landmark at the site just public nature trails, and over the and Moores Farm, Pingewood, 0118-9323444 north of Kidlington. project lifetime Hadley’s envi- which involved special care to During the first few years, ronmental investment is likely to avoid disturbing the nesting habi- Hadley will be able to offer its exceed £2m. tat of rare Little Ringed Plovers. customers virgin aggregate, pre- The scale of the project may be While Hadley operates the dominantly limestone. Approxi- daunting, but in becoming expert Shipton site commercially, it will mately one million tonnes of vi- in recycling and waste manage- also be monitoring the wellbeing Incentivesthatbeatthegloom Talaris opens new headquarters Talaris launched its new corporate welcomed the team to their new Despite the economic downturn, ences that retailers could select headquarters at Chineham Park Talaris House home. retail specialist Auto Miles UK has and redeem at their leisure with in Basingstoke with a champagne Tracey Graham, chief executive worked successfully with kitchen Omega branded points-vouchers. reception last month. officer of Talaris, said: “It is a great manufacturer Omega to maxim- Gifts included a Formula One The event was attended by privilege and pleasure to base our ise sales and encourage brand experience, a one-day residential the 80 head office employees of corporate headquarters in Basing- switching. cookery course at Le Manoir, a Talaris, the leading cash-handling stoke where we join a thriving busi- A tailored incentive scheme VIP personalised shopping con- solutions provider, and guest of ness community at Chineham Park, based on choice and flexibility of sultation and even a tank-driving honour Mike Loftus, chairman amongst other successful and well rewards has been the key to the experience. of Destination Basingstoke, who respected companies.” companies’ success. Chris Blackham, Omega’s According to a survey by Sub marketing manager, commented: Lime Europe, on behalf of Omega, “The flexibility of the Auto Miles 80% felt that the retailer incentive solution suited our needs per- Legal team tackles charity challenge had a positive effect in increas- fectly and the results surpassed Six adventurous volunteers from kayaking course during The Helly ing sales of Omega brands. all expectations, with many retail- Gerrards Cross law firm B P Col- Hansen Adventure Challenge This feedback was reflected ers beating targets and switching lins swopped the comfort of their Series, held in Pirbright, Surrey. by increased sales that Omega sales from competitors’ brands. offices recently for a gruelling The Chilterns MS Centre pro- experienced amongst participat- The incentive produced high charity challenge to raise funds vided T-shirts for team members ing retailers in the last quarter of levels of incremental sales in what for the Chilterns MS Centre. and money raised will be donated 2008. is a difficult and challenging mar- More than £1,100 was collected towards a £500,000 target which Instead of offering a headline ketplace and we are already look- by the two teams, who took part the charity aims to raise to help gift, Auto Miles provided an online ing at new and exciting incentive in a 10km off-road run, a 25km equip its new purpose-built catalogue of products and experi- programmes for the future.” mountain bike ride and a 1.5km centre.
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 14 aim barometer www.businessmag.co.uk AIMcompanyvaluationscontinue widespreadslideintheregion AIM has played a key role in helping southern firms fulfil their expansion and fundraising plans. To highlight its importance to the regional economy and showcase its top performing companies, the University of Surrey and accountants BDO Stoy Hayward have launched the Southern AIM Barometer
Among the companies based in the south east region, a number of AIM firms are still strug- gling to hold on to their market valuation. Although the major- ity of businesses have lost at least 70% of their market value, there are a good number of companies that have managed to achieve positive movements over the last 12 months, in spite of the worsening economic conditions. Notable among this group of high performers are Forum Energy, TV Commerce, Clinical Computing and ECO Animal Health Group. Forum Energy is an oil and gas company with projects in the Philippines. It performed extremely well during the third quarter of the year on account of the high oil prices but has since lost most of that gain. TV Commerce (now Gemstones of Africa Group) operates TV channels and generates most ! of its revenue through interac- tive audience participation. It share price can be significantly healthcare market, has shown manufacturer and supplier of has recently changed its name affected by non-trading. In the positive signs of recovery in animal feed and animal health to reflect its interests in acquisi- case of TV Commerce, there the last quarter. Its share price products, has also gained 30% tions in Africa. It should however were no changes in the share increased from 1.63p in Septem- in the last quarter, reducing the be noted that the percentage of price between February 2008 ber to 3.25p by the end of 2008. year-to-date loss in value to 6%. free float shares (percentage of and September 2008. The share price increase is in Simon Watson, partner at shares available for trading) for Clinical Computing, an IT response to the release of the BDO Stoy Hayward, said: “In both companies is among the company that specialises in company’s Clinicalvision V soft- this period of market turmoil, lowest in the group and so their computer software for the ware. ECO Animal Health Group, there is not much consistency in the pricing of individual companies and much of the recent falls in share price has little to do with the performance or prospects of many AIM firms in the region. Companies will find it frustrating to announce good results in spite of market conditions only to see either no movement in value or even negative reaction driven by un- duly optimistic expectations. “Many companies have suf- fered share price declines in line with general sector movement but encouragingly, there are a few examples of AIM firms in the region that have successfully traded throughout 2008, but the weakening of share prices as shown in the barometer disguise this.” The southern region The Southern AIM Barometer has continued to fall since May 2008. In line with AIM stocks nationally, the southern region Index has fallen by over 60% ! from its initial value in December
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk aim barometer 15
2007. The loss in value has oc- Other sectors such as oil and fered as much decline in value curred largely during the second gas, technology and indus- as the AIM listed companies. About the Southern AIM half of the year, as market trial goods and services have, The FTSE All Share Index has Barometer: uncertainties following the credit however, managed fairly well. dropped only 33% in value over The Southern AIM Barometer crunch increased. But, by the end of the year, the the year to December 2008. is an index that tracks the Dr Sam Agyei-Ampomah, oil and gas sector had lost most This is consistent with the view stock market performance of senior lecturer at the Univer- of the value accumulated during that investor sentiments are London Stock Exchange Al- sity of Surrey, said: “Many of the oil price boom. ternative Investment Market the companies in the southern shifting from riskier small-cap Industrial composition stocks towards relatively safer (AIM) listed companies in the region are struggling to hold on Surrey/Hampshire and south to their value. At the beginning east area of England. The of 2008, 53% of the companies current reporting is based had market capitalisation in on 87 AIM-listed companies. excess of £10 million but by the The number of constituent end of the year this figure fell companies, however, may to only 31%. It is anticipated change from time to time due that should this trend continue, to additions of new compa- many more companies are likely nies or deletions resulting to leave the market than have from delisting of a constitu- already done so.” ent company. The index val- However, AIM companies in ue is calculated as the sum the southern region performed of the free-float and liquidity marginally better in the last adjusted market capitalisa- quarter than AIM stocks nation- tion of the constituent stocks ally. This is largely due to the rebased at 100 at the base relatively better performance of date of December 2007. the oil and gas and technology Where necessary, adjust- sectors. Indeed, the impact of ments are made to the index the general economic decline ! value to correct for changes on the various industrial sec- in market capitalisation due tors in the region is varied. The Industrial and technology com- large-cap stocks. Generally, to changes in a company’s financial sector companies, number of shares. which contribute over 33% of panies make up about 45% of small-cap companies are more the southern Barometer value, the sample in terms of numbers, volatile and hence more vulner- lost over 62% of their value off but they only contribute 21% able during periods of market the back of growing concerns of the index value. On the other uncertainty than their larger over rising bad debts and write- hand, oil and gas and financials counterparts. If investor confi- offs. Companies in the basic companies contribute over 45% dence in small-cap companies resources (mining and min- of the index value. As a result, continues to wane, market eral resources) and consumer the performance of the index is performance of AIM-listed com- goods sectors (down 85% and likely to be dominated by the panies, as a whole, will suffer. 91% respectively) have suffered performance of the financials most including Oakdene Homes and the oil and gas sectors. Details which lost 94% and has now Comparatively, companies Simon Watson requested a suspension of trad- listed on the main London 0118-9254400 ing in its shares. Stock Exchange have not suf- www.bdo.co.uk
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THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 16 surrey news www.businessmag.co.uk CouttsrelocatesGuildfordofficeto accommodateitsgrowingteam Private bank Coutts’ Guild- support staff and regional chair- have an office in the local area. that valuations in equity and ford office is relocating within man Mark Richardson. That’s why we’re keen to spread corporate bond markets suggest Guildford, in order to accommo- Alastair Graham, client partner the word that we are here, we are that investors with longer time date the growing team, provide for Coutts in Guildford, said: “The expanding and we are very much horizons should soon start to see bigger client meeting rooms current economic climate has open for business.” some significant opportunities.” and better client entertainment driven many wealthy individuals Andy Rymer, managing Shirley Coe, private banker facilities. to seek out banks they can trust, partner for Coutts in the south for Coutts in Guildford, said: The private bank looks after but also that have a proven and east, added: “Coutts remains in “Coutts aims to be accessible some of the UK’s top entrepre- strong track record of looking af- a strong position and focused and geographically close to our neurs, executives and sports and ter their money. With a 300-year on growth. We firmly believe that clients, in order to understand entertainment stars. history, having survived many our long-term investing ethos the local community and industry The firm’s former Guildford downturns, Coutts is an obvious of broadly diversified portfolios issues that may affect our cli- office, at 4 Jenner Road, opened natural fit. means that our clients are well- ents. Where competitors are only for business in August 1997. “The success of the Guildford placed to weather the current now beginning to move back into Its new premises, at 2 Cathe- office has been a reflection of storms and to participate in the regional private banking, many dral Hill, now house the team, the hard work put in by the team, subsequent recovery. having exited in 2002/3, Coutts is which has grown from four to because although we’ve been “Based on our outlook for reaping the rewards of its long- 16 members over the past 10 in Guildford for over 10 years, 2009, clients should be prepared term commitment, which has years. It now includes six private all too often we still hear that for markets to remain volatile now become the fastest growing bankers, two specialists, seven people just don’t know that we in the short term, but we think area of the business.” DiamondLogisticsMDnamedasfinalist Employment law office for Croydon fortwoSurreybusinessawards Employment law specialists at Martin Searle Solicitors Kate Lester, managing director local business community. Over have opened a new office in of Diamond Logistics, has been the last year, Lester quadrupled named as a finalist for two Surrey Diamond Logistics’ donations to Croydon to provide special- business awards, Guildford Life charity, dedicating all funds to ist employment law advice with Style’s Entrepreneur of the local causes. to local businesses and Year Award and Surrey Business The Yvonne Arnaud Theatre, employees. Award’s Surrey Business Person Phylliss Tuckwell Hospice and Since the firm’s launch of the Year. the New Victoria Theatre in Wok- in 2004, it has built a strong Lester founded Diamond ing have particularly benefited reputation for service and Logistics in 1992 and, over the from Lester’s support. value with clients ranging years, has built up an impressive Diamond Logistics also from individual workplace list of over 1,000 Surrey-based pledged support to reception- discrimination problems, to clients, including the top five ists by establishing the Surrey businesses and local authori- legal firms in Guildford. Office Star Award to highlight ties employing thousands. Her award successes recog- the valuable role of office sup- Martin Searle Solicitors nise Lester’s leadership skills as port staff. works alongside a team of head of one of Surrey’s leading Lester said: “Those who know Human Resources consult- courier companies and the role me are aware that I am passion- ants to offer a service where she has played in driving the ate about business – about de- businesses require both legal courier industry forward. livering the best service possible and practical HR expertise, They also acknowledge the to clients and having a motivated for instance on restructures, contribution she has made to the Kate Lester and professional workforce.” disciplinary procedure and help with recruiting staff. Based at Bedford Park in east Croydon, the office will Sale of Thirstpoint to Personnel Hygiene Services (PHS) be run by Martin Searle So- licitors’ director Fiona Martin Penningtons Solicitors LLP has provides services that create a of Thirstpoint under the direction and local employment law advised Jon Grant, director and better working environment – from of one of the leading companies in solicitor Marsha Thompson. sole shareholder of Thirstpoint, in washroom services and interior its field.” Martin said: “We have connection with the sale of Thirst- landscaping to plant rental and Steve South, partner at Wise many clients from Croydon, point to Personnel Hygiene Serv- drinking water dispensers. The and Co chartered accountants including large employers, ices (PHS), one of the UK’s leading group’s acquisition of Thirstpoint and business advisers in Farnham, and there is huge demand in workplace service providers. is part of an ongoing expansion advised Jon Grant on the financial this area for our specialist Thirstpoint is based in Farn- programme by PHS throughout aspects of the sale. Morgan Cole’s employment law services.” ham, Surrey, but operates through- the country. Swansea office and Pricewater- She added: “To help em- out the UK and specialises in the Penningtons advised Jon houseCoopers advised PHS. ployers safely navigate their supply, installation and mainte- Grant on all legal aspects of the way through these difficult nance of drinking water systems transaction, including corporate, Details: times we will be offering our at commercial premises. The sale tax, property and employment full range of employment law of the company to PHS allows Jon law. Sarah Scarlett, corporate Sarah Scarlett services. In addition, we offer Grant to benefit from a successful partner in Penningtons’ Business 01483-791800 a new fixed-fee redundancy business which has been estab- Services Division, led the legal [email protected] law advice package where lished for over 15 years. team advising Thirstpoint. Scarlett clients can get the profes- PHS, which has more than commented: “We are delighted to Caroline Ainsworth sional help they need as cost 200,000 customers in the UK and have contributed to a deal which 020-7457-3000 effectively as possible.” 48 regional service branches, will ensure the future development [email protected]
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk advice for entrepreneurs 17 Reviewingemployeebenefitschemes foreverybody’sbenefit,saysTenon Tenon, one of the Top 10 UK accounting firms, specialises in providing advice to 21st century entrepreneurs. Now it is sharing its knowledge and experience in a series of articles written by John Burbedge for The Business Magazine: ‘Advice for Entrepreneurs’
With the clouds of recession what benefits you offer, while schemes – tax-advantaged em- casting shadows over UK plc, still offering your employees an ployee share arrangements. most SMEs are not likely to appropriate and competitive Open to SMEs with gross be considering reviewing their package.” assets below £30m and under employee benefits schemes . . “Often, when we undertake a 250 employees, an EMI al- . but they should be, says Alan review we get employees, even lows employees to buy or be Frei. management, saying that they awarded shares within a “tax “Where companies have not didn’t know that the company wrapper” – Capital Gains Tax reviewed their employee risk provided all these benefits,” rather than Income Tax – which benefit costs for three or four said Frei. “Which means that means the first £9,600 of gain years, we generally find that for many years the company will be tax free, with a 56% re- reductions of up to 50% can has probably not needed to be duction in tax on the balance. now be achieved,” said Frei, a paying out for providing them.” According to the Office for director of Tenon’s Employee Frei highlights the major Benefit Consultancy. review areas as pensions, National Statistics Inter De- “Insurance and invest- life assurance cover (typi- partmental Business Register ment sectors have changed cally four times salary in the there were an estimated 4.7 dramatically in recent years UK), long-term sickness and million SMEs in the UK at the and improved mortality rates disability cover (which can start of 2007. Only 8,020 SMEs have been reflected in lower be 75% of salary, potentially were operating EMI schemes. costs. Times change and so do until retirement), and private Frei believes this extremely facts, terms and products, but medical insurance (usually for low uptake is due to lack of Alan Frei, director, Tenon Employee providers often rely on ‘inertia employees, spouse/partner awareness of EMIs and their Benefit Consultancy marketing’ to maintain their and children). relatively complex nature. premiums – if the customer Seeking alternative provid- “UK entrepreneurs tend to doesn’t ask, they won’t get ers or varying the length or like to buy a simple employee CREATE A WIN-WIN told.” range of cover can dramatically benefits product ‘off the shelf’ PENSION BENEFIT Faced with recessionary reduce costs, he says, without and look after its day-to-day problems, many entrepreneurs necessarily disadvantaging operation themselves. EMIs are will look first at the obvious employees. not that straightforward and SMEs without any pension costs – daily operational over- “Should comprehensive most SMEs would need the heads, cashflow, the head- medical cover extend beyond scheme for employees, should help of professional advisers to consider introducing one, says count, plant and premises. the employee to all of his set them up. In my view, that’s Nothing wrong with that, says family, for example, or should Alan Frei. It could provide a win- a step worth taking. Frei, but before taking drastic lesser cover be provided? This win situation for all concerned, “A good EMI scheme can be actions, entrepreneurs should benefit may be more important if employees already make also review their employee in America, but we do still have a massive performance driver contributions to personal pen- benefit arrangements with a the NHS in the UK.” for your business. Again it sion plans. “If an employee is already skilled adviser. Pensions are seen as a encourages ‘ownership’ of the paying into a personal plan, Employee benefit structures greater employee benefit benefit, but it also gives em- then the SME should consider need to be tailored to the ac- in the UK than the US, says ployees the freedom to decide paying that for them and reduc- tual requirements of business- Frei, but he advises against their own future, for their own ing the employee’s salary. es facing today’s commercial providing non-contributory good and that of the company If the employer makes the challenges, not compiled in the pension schemes. “Any benefit for which they work.” pension contribution instead dusty past then filed for years provided must be valued by the But how will employees view of the salaried employee, the as another corporate tick-box. employee. If they have to put this tinkering with “terms of contribution escapes NIC. That “What was right for you and their hands in their own pock- employment”? NIC saving could then be used your employees then, may not ets to some extent, it gives “Restructuring is a fea- to boost the employee’s existing be providing your business them more ownership of the ture of the business world at pension contribution, or shared, with value for money today.” benefit, and a better percep- present. People realise that helping both the employee and Savings are very likely from tion of the company’s commit- changes will have to be made the SME’s bottomline. Either any review, says Frei. A profes- ment. The other side of that if businesses are to beat this way, the arrangement is neutral sional adviser will also know coin is that the employer does recession. Not only are reviews for the employee in income tax the most competitive provid- not needlessly pay monies into accepted, they are now ex- terms, while providing a benefit ers, the latest products and all a pension plan for an employee pected. Even the most valuable to the employee, and possibly the available tax benefits. Im- that clearly does not value it.” employees realise that they the SME.” provements that will help retain Then there is the area of can’t make excessive demands “poachable” employees can be bonuses and incentives – at a time when all companies made and re-budgeting could hackle-raising words for the Details: Tenon Offices actually help save the jobs of financial sector at present, but are trying to reduce costs,” Windsor: 01753-754400 some valued employees. a powerful employee benefit if says Frei. “Offering the most relevant, used correctly. Good, clear upfront com- Basingstoke: 01256-370370 cost-effective employee Nowadays, when targets munication that explains the Reading: 0118-9530350 benefits package within the are hit, employees tend to be needs and the solutions is key, Southampton: 023-8064-6464 constraints of your budget is rewarded with a mixture of says Frei. He advises using a challenge in today’s environ- cash and/or share options. Frei impartial professionals to help ment, but you can save costs believes many SMEs are miss- devise and present any fresh by looking at the way your ing out by not using Enterprise proposals, and to answer em- benefits scheme is set up and Management Incentive (EMI) ployee queries as they arise.
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 18 deals update www.businessmag.co.uk latest deals data from across the region ... latest deals data from across the region ... latest deals data from across the region ... latest deals data from acr
Williams Lester The Foresight Group Forth Photonics Completion Date: 16/01/2009 Completion Date: 21/01/2009 Completion Date: 01/2009 Target: Willliams Lester (architectural practice) Target: @Futsal Deal Value: £6.1m Acquirer: Brennan Group Acquirer: Foresight Ventures Details: Forth Photonics has completed its Deal Value: Undisclosed Deal Value: Undisclosed second round of fundraising, with new investment of €7.6m (£6.1m). The Details: Long-established Ringwood architec- Details: A company that plans to spread Futsal, newly-raised funds ture, planning and conservation practice a fast-growing form of five-a-side are expected to take Forth Photonics’ Williams Lester was sold to American- football, throughout the UK, has raised first product through to full owned Brennan Group LLC. £3.25m in funding from Foresight commercialisation. Forth Photonics is a Williams Lester was founded in 1987 Ventures, a provate-equity investor. @ medical device company that and Walter Williams and David Lester Futsal will use the funds to build a chain designs, develops, manufactures and will continue to be involved in the busi- of 30 indoor centres across the UK. markets imaging systems for the ness together with all members of the The first has already been opened in non-invasive, in-vivo detection of can- current team Swindon. Shoosmiths corporate partner, cerous and pre-cancerous lesions. Corporate Finance BTG McInnes Corporate Finance Emma Gibson advised @Futsal in Focusing initially on cervical cancer, its Advisers: relation to the injection of equity capital proprietary Dynamic Spectral from Foresight. @Futsal director Jim Legal Advisers: Clarke Willmott Imaging System platform (DySIS™) is Sanger described Emma as “Proactive, the only medical device to use dynamic extremely good at clearing points up spectral imaging to assist in the detec- Folio Hotels before they arose” tion and mapping of cervical cancer Funding: Foresight Ventures and, in clinical trials, has been shown to Completion Date: 01/2009 Legal Advisers: Shoosmiths’ corporate partner Emma significantly increase the Target: Folio Hotels Gibson and solicitor Rachel Reeves sensitivity of pre-cancerous lesion Acquirer: Mulbourn detection. Used by gynaecologists, DySIS™ assists in identifying the early Deal Value: Undisclosed stages of cervical cancer by Details: This deal involved the cream of the Project Jupiter mapping changes in cervical tissue, Folio properties being bought out of Completion Date: 21/01/2009 providing high resolution images of the adminstration and was completed in cervix and enhancing or magnifying a very short time despite the number Target: The In House Catering Company areas of diagnostic importance. The of stakeholders involved. Rescuing Acquirer: Catermasters Contract Catering technology also has the potential to be jobs and ensuring a sustainable future Deal Value: Undisclosed developed into applications for for the Folio brand was a priority for detection of other epithelial cancers. everyone involved and some 1200 jobs Details: Grant Thornton’s southern Forth Photonics was established in were saved corporate finance team advised 2002 by the DySIS™ inventor, Professor contract catering provider, Funding: Management team, landlords and Costas Balas, who is now the Catermasters, on the acquisition private equity company’s chief technology officer. of London-based fine dining and Corporate Finance BTG McInnes Corporate Finance hospitality firm, In House Funding: NBGI Ventures, Albion Ventures, Scottish Advisers: Venture Fund Funding: The Royal Bank of Scotland Group Legal Advisers: Fladgate Financial Due Horwath Clark Whitehill LLP, contact Corporate Grant Thornton Dilligence: Geert Struyven Administrator: MCR Finance Advisers: Virgin Vie Legal Advisers: Manches Financial Due HW Corporate Finance Project Hot Desk Completion Date: 01/2009 Dilligence: Target: Virgin Vie At Home Completion Date: 28/01/2009 Acquirer: MBO Target: Teal Furniture Holdings Deal Value: Undisclosed Sale of Insensys Wind Energy Acquirer: Senator International Details: Since its launch in 1996, Virgin Vie Completion Date: 30/01/2009 Deal Value: Undisclosed At Home has established itself as the Target: Insensys Details: Teal Furniture, the UK’s leading specialist leading party plan company in the UK, manufacturer of quality wooden chairs Acquirer: Moog Holding GmbH & Co.KG with over 10,000 consultants. The Virgin for the healthcare, care homes and study Group selected the Virgin Vie At Home Deal Value: £16 million bedroom markets was acquired by the management team, led by Ros Simmons Details: Founded in 2002 and based in Hamble, Blackburn-based office furniture company and Ratan Daryani, as the preferred bid- Insensys is the World’s premier wind Senator International. der after a competitive process, on the energy rotor and blade load measure- A long standing client of the firm, Grant strength of its robust and comprehen- ment company. Shoosmiths advised the Thornton acted for the shareholders on a sive business plan vendors in the sale to German-based restructuring and the subsequent disposal. Legal Advisers: Bond Pearce LLP Moog Holding GmbH & Co.KG. Shoos- Funding: Barclays Bank miths partner John Jackson said, “The Corporate Finance Grant Thornton Corporate Finance transaction was particularly interesting Advisers: Advisory (Duncan Lamb/Paul Short) Beech because of the technology involved in Legal Advisers: Pitmans (Adam Dowdney/Rishi Sharma) Completion Date: 30/01/2009 the business and the purchaser was a German company, being a subsidiary of Financial Due Egan Roberts Target: Beech Care and Nursing an American public company” Dilligence: Acquirer: August Equity Legal Advisers: Shoosmiths Corporate Partner John Commercial Due Senator International (In-house) Deal Value: Undisclosed Jackson and Associate Adam Hewitson Dilligence: Details: Enara Group, a portfolio company of UK lower mid-market firm August Equity, acquired Beech Care and Nursing Agency, a privately-owned Next Deadline domiciliary care agency. Enara was acquired by August Equity in a £20m buy-and-build with the The next Deals Update will appear in our April 2009 issue – simultaneous acquisition of First Call Care Services in November deadline for submissions is Wednesday March 11 2008 Submissions are free. If you would like to submit deal information or advertise on this page contact Tanya Liddiard Legal Advisers: Shoosmiths corporate partner 0118-9745308 – [email protected] Emma Gibson Elcot Publications is not responsible for the accuracy of information in the deals update section which is supplied by individual firms
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk corporate recovery & turnaround 19
less than the business was once worth, leaving creditors feeling Actsforrescuingbusinesses aggrieved.” But these are difficult times. The current downturn will test whether the business that is facing difficulties. David Matthews of Grant Thornton In particular where it can be sold in Reading says: “My focus is Insolvency Act and the Enterprise Act really do as a going concern and jobs can always to save a business where achieve what they were designed for, writes be saved as well. Some however possible but the opportunities to take the view that the legislation do so are becoming more and Richard Willsher of The Business Magazine now disadvantages unsecured more challenging. The banks are creditors such as trade suppliers getting unfair bad press in my More than 40,000 UK businesses with its unsecured creditors, which in certain circumstances, such as opinion, suggesting that if they will be declared insolvent in 2009, would be approved by 75% of in so-called “pre-pack” deals. just started lending again every- forecasts the Credit Management creditors by value as well as 50% Under a pre-pack deal a com- thing would be alright but it’s not Research Centre at the Univer- of shareholders. An insolvency pany goes into a formal insolvency as easy as that... They are under sity of Leeds Business School. practitioner would supervise the process having already agreed huge pressure but how can they Whether working for banks, ac- work-out. Following amendment to sell its assets to a third party. justify lending to risky proposi- countancy firms, lawyers or corpo- of the Act in 2000 and the Enter- Effectively it’s a done deal. The tions?” rate finance boutiques, business prise Act which came into force advantage of a pre-pack is that So with the lack of funding to recovery specialists are rushed in September 2003, the protec- the sale takes place in a private off their feet. Their goal is to help tions for the debtor company support companies in administra- way that preserves the value of the rescue businesses and they will were strengthened and Crown tion the choices for survival may assets. Otherwise the business be working to a greater or lesser preference which gave the govern- be limited. Some criticise the degree in a way circumscribed by ment first call on the resources might find itself in a fire sale sce- current UK legislation saying that the Insolvency Act as amended by left in the insolvent businesses nario and key staff might become US-style Chapter 11 administra- the Enterprise Act 2002. was removed. It also encouraged unsettled and leave. Disadvan- tion does a better job because it The joint objective of the banks and other creditors to make tages can be that the administra- allows protection from creditors, two pieces of legislation was to greater effort to help businesses tor has the deal thrust upon him gives “super-priority” to lenders encourage the survival of enter- recover. and has little influence over the which reduces their risk and may prises rather than their failure. And Under current administration outcome. At the same time trade compel suppliers to continue trad- together they rang a death knell procedures the administrator has and other unsecured creditors ing with the insolvent business. for the use of the administrative three duties. The first is to rescue without any priority rights over the Others, such as Baker Tilly’s Bruce receiver who had in the past been the business if possible. The sec- assets may lose out. Bob Young Mackay, say that the US system appointed by bank lenders and ond is to obtain a better realisation of Begbies Taylor, the corporate seems overly legalistic and lacks who therefore worked primarily of the assets of the business than rescue and recovery specialist flexibility. He adds that after the for their paymasters’ best interest. could be obtained in a liquidation. argues: “Pre-packed deals often current deluge of insolvencies Under the current laws, adminis- The third duty is to realise as much happen when the nature of the in the UK, the legislation will be trators have a duty to all creditors from the business’ assets as pos- company means the administrator tested to the full. It may be that of an insolvent business. sible for the benefit of the secured must move fast or risk there being this will result in further changes The Insolvency Act allowed for and preferential creditors. nothing left to sell as customers as those in the insolvency profes- the distressed business to come Business recovery profession- switch in droves. But they are sion learn from experience about to a Company Voluntary Arrange- als seem in general to welcome controversial because frequently it the effectiveness of what is still ment with its creditors. The debtor the new administration process as is the previous owner who makes a comparatively recent set of company would form a contract being to the greater good of the the purchase, and for very much measures. Companyadministrationsmorethan Present, but not performing well doubledfromlastyearandsettorocket Did you know that “pres- enteeism”, where employ- The number of companies being “Companies across all sectors ees are present but due to placed into administration in will struggle when they need to health issues have reduced England and Wales has surged refinance their debt as lenders rein performance and are less to 2,018 in the fourth quarter back on corporate lending,” said productive, costs up to of 2008, according to statistics O’Sullivan, adding: “On top of this, seven times more than released on last Friday by the the arteries of business are being absenteeism? Government’s insolvency service. clogged up as credit insurers cut A government-backed This figure should however be back on the provision of cover for report has shown that adjusted downwards to reflect a suppliers and contractors. workforces that are well, single appointment involving 729 “More retail businesses will run work well. managed-service companies in into difficulties as British consum- By introducing workplace September 2008. The adjusted ers maintain a negative outlook In wellness programmes com- figure of 1,289 is still 124% higher the face of rising unemployment, panies can increase revenue than in the fourth quarter of 2007, which is predicted to reach three and reduce costs – and when 575 new administrations million, as well as a decline in achieve a cost-benefit ratio were recorded and 28% higher spending power following signifi- of up to 85:1. than the 1,007 administrations Trevor O’Sullivan cant rises in essential household Wellness programmes re- announced in the third quarter of expenditure,” O’Sullivan specified. period the previous year, when duce the costs of sickness 2008. “It is vital that companies facing absence, staff turnover, and The single appointment over 3,039 liquidations were recorded. liquidity problems or difficulties This represented an increase of accidents and injuries. The 729 managed-service companies refinancing their debt seek profes- by-product is increased was second only to Grant Thorn- 11.9% on the third quarter of 2008, sional advice immediately.” which saw 4,118 liquidations. productivity. ton UK LLP’s record appointment Reading company NSG as administrators of 844 compa- “These numbers are not good These figures are available at: and unfortunately they are going Services provides wellness nies managed by tax solutions www.insolvency.gov.uk/other programmes and is offering to get progressively worse as busi- provider Asciom Solutions and information/statistics/200902/ free workplace evaluations ness and consumer confidence Safe Solutions in Q4 2006. index.htm during March. Company insolvencies in Eng- continues to fall,” said Trevor land and Wales jumped by 51.6% O’Sullivan, director for Grant Details: Trevor O’Sullivan Details: 0118-9660274 to a total of 4,607 in the final quar- Thornton, recovery and reorgani- 023-8038-1100 www.wiseaboutstress.com ter of 2008 compared to the same sation. trevor.o’[email protected]
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 20 corporate recovery & turnaround www.businessmag.co.uk
At the end of the last recession, there was Administration–a a perception that companies had gone into re- ceivership “too easily” at the expense of busi- nesses and unsecured creditors. Consequent- ly, the Government looked at our insolvency moderndayoverview laws and amended the Insolvency Act 1986 by the Enterprise Act 2002. One of the amend- ments brought the process of administration As the economy reaches the part of its cycle where business more to the fore. Indeed, the circumstances in which secured creditors can appoint admin- becomes more difficult and problems start to emerge, law firms istrative receivers have now been very much restricted. There are various differences be- are ready to help their clients with advice to assist them in surviving tween administration and receivership but the the recession. Blake Lapthorn’s insolvency and business recovery most important is the duty of administrators to perform their functions in the interests of the team is one of the largest in the country, writes Paul Rippon, head creditors as a whole. of insolvency Thames Valley and consultant (solicitor) at Blake Pre-packaged administration Lapthorn. It provides specialist advice and assistance to all those This is currently a hot topic in the profes- affected by insolvency issues, reacting quickly to the needs of sion and the business news. A “pre-pack” administration is the situation where the sale its clients – from individuals or companies who are in financial of all or part of a company’s business and difficulty to administrators of a wide range of companies assets is negotiated with a purchaser before the administrators are appointed and, imme- diately following the administrators’ appoint- Helping before it is too late ment, the sale to the purchaser takes place. It is an area where there has been some The importance of seeking advice early on adverse publicity, not least by suppliers and cannot be stressed too highly. If there is one other unsecured creditors of the company key message, it is that the sooner a business in administration. However, it is important gets advice, the more options it will have to to appreciate that when used in appropriate resolve its problems. This will ensure that circumstances it is the best, and often the the best outcome possible is obtained in only, way for certain parts of the business to the circumstances. It is essential that busi- survive. nesses (or individuals), when things begin Creditors are sometimes concerned to get tough, do not “stick their head in the because they are informed after the event, sand”. Many businesses believe they are able especially when it is a case that the buyer to tough it out and that things will improve has been “associated” with the company that based on previous experience but the clear went into administration. The regulatory bod- message today is that the scale of the current ies of the insolvency profession have worked economic climate is quite different from the together to produce guidance in the form of a problems that we have faced in recent years. new statement of insolvency practice, which Whether selling goods to companies that came into effect on January 1, 2009. Among may be themselves getting into difficulties other things, it “reminds” administrators of or running a business where there may be the matters to be considered before deciding problems ahead, there are certain steps that whether a “pre-pack” sale should take place can be taken and there are ways businesses and it also sets out the information to be can protect their position. given to creditors as soon as possible after In the area of insolvency and business administration to explain and justify why a recovery, the firm is currently assisting a Paul Rippon “pre-pack” sale took place. One of the main number of charities who have lost money as purposes of the statement is to ensure more a result of the collapse of one of the Icelandic follow from a company going into administra- transparency than may have been the case banks by trying to help them recover their tion, which covers everything from employ- on occasions in the past. money. The firm is also helping companies ment to property to contractual advice. There who have supplied goods to some of the are a number of problems that a company Conclusion large retail store chains that have gone into can face during the process of administra- In the context of the present situation, these administration recently and which have tion, which makes it even more time-critical are unprecedented times for businesses. featured in the national news. If companies’ for both the business and the administrators. However, it is by no means all doom and terms of business are right, we can often Quite often, we are faced with situations that gloom. We will, no doubt, emerge from the recover their goods for them when they have are complex, with lots of different strands current troubled economic climate at some not been paid. The firm is also acting for and inter-related aspects. In the majority of point, even if no one knows when, and companies or individuals whose businesses cases, speed is of the essence. The goodwill making sure we prepare ourselves for the are in difficulties. For example, when things of businesses has a finite “shelf life” in these eventual upturn is important. All companies go wrong and administrators are appointed, circumstances and more often than not we and businesses must have the confidence it is often the case that the business and cer- have to complete a sale under very strict time to continue doing business where they can tain assets can be bought from the company constraints. as this is in the short term and, hopefully, the in administration which, among other things, long term interests of all. These are difficult can help preserve jobs and lead to the crea- Then and now times but if businesses take the right steps tion of new jobs. It is useful to look at how the current reces- now and seek advice (when and where ap- sion compares with other recent difficult pe- propriate) the recovery will be quicker and Administration uncovered riods that the UK economy has experienced, the rewards going forward that much greater. Administration is one of a number of formal including how the law has evolved. insolvency procedures. It is the one that Many people will remember the recession Details: gives the best hope for either saving a in the late 80s and early 90s and will probably Paul Rippon company in its entirety or at least parts of the recall the term “administrative receivership” 01865-254261 business and, importantly, often saves jobs rather than the term “administration” that we [email protected] if a buyer can be found. Administration is the hear so often today. Administrative receiver- procedure that people hear most of at the ship takes place when a secured creditor moment in the current economic climate. (often but not always a bank) holding a float- In the UK, administrators are licensed ing charge over the assets of the company insolvency practitioners and are, invariably, appoints administrative receivers. The pri- accountants. As lawyers, our role is to assist mary duty of the receivers was to recover the them with the legal questions that inevitably money lent by the secured creditors.
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk corporate recovery & turnaround 21 Usingthedownturn toyouradvantage
Ian Smith, senior partner at PricewaterhouseCoopers LLP in the Thames Valley, discusses what businesses can do to survive the economic slowdown in 2009, and looks at the measures that can be taken to help companies come out stronger than their competitors
Two types of businesses fail holder management and effective during economic downturns. scenario planning – can make The first are businesses that are all the difference in surviving the not strong enough to withstand storm and can help the business changing market conditions, the to emerge from the downturn in second are essentially sound the best possible shape. businesses whose ability to survive is undermined by poor management. Managing cash during a While individual businesses recession should be an cannot control the course of eco- nomic events, it is possible for every day priority with management to adopt a strategy emphasis placed on that goes some way towards controlling their own destiny. tight control and clear, Behind the inevitable head- accurate, short-term lines of rapidly falling confidence, the views of UK CEOs in the forecasts recent PricewaterhouseCoopers CEO survey, provide an insight Ian Smith, senior partner at into some of the challenges and PricewaterhouseCoopers in the opportunities ahead. The results Thames Valley, provides some of the survey also highlighted recession survival tips for busi- what CEOs believe will matter nesses: in 2009 as they look to revitalise 1. Cash is king: their own and the UK economy’s fortunes. This year will test Many companies will face finan- CEOs’ belief that the ability to cial pressure during the eco- adapt to change is one of the nomic downturn, yet now more most important sources of com- than ever, cash is king and good petitive advantage in sustaining cashflow is vital. Managing cash long term growth. Winning com- during a recession should be an panies stay light on their feet, de- everyday priority with emphasis ploying all their resources in the placed on tight control and clear, areas of the business most likely accurate, short-term forecasts. to do well in trying economic In the PwC CEO survey, over conditions, while directing their three-quarters of UK chief execu- operational energy towards the tives said they expected to fund opportunities that arise. future growth from internal cash resources, with only a quarter expecting to fund growth through ... it is possible for debt. In the absence of external management to adopt a financing, businesses must as- sess and minimise cash risks as strategy that goes some soon as possible. Businesses that way towards controlling don’t manage cash as a priority ultimately may not be able to pay their own destiny their liabilities and consequently risk being forced into some part Using this time of uncertainty to of an insolvency process. take a fresh look at your organi- sation’s strategy and carrying out 2. Your new banker a detailed and up-to-date analy- It may seem as if his own sis of your business practices problems have turned your once can give you a better under- business hungry banker into a ra- standing of where your business tioner of credit. In fact, a number stands. This understanding can of the leading banks can show be a critical element in anticipat- statistics that their new lending ing market change and applying to SMEs has increased rather effective means of addressing than reduced. However, A new leaf. over now) (Turn to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) or, ‘PricewaterhouseCoopers’ refers All rights reserved. © 2009 PricewaterhouseCoopers LLP. which is a separate and independent legal entity. the PricewaterhouseCoopers global network or other member firms of network, each as the context requires, change. Key “self-help” tech- niques – focusing on cash, stake- Continued overleaf ...
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 22 corporate recovery & turnaround www.businessmag.co.uk
... continued from page 21
you need to remember that the risks they are assessing at this time are greater and, under- standably in the current environ- ment, profitability and liquidity forecasts are down and security is by definition poorer. Any help available will come at a price. Treat your bank with caution and respect and ensure your credit applications are as robust as possible because however long and cordial your relationship, your interests may not be entirely aligned. Without insurance cover, the key to managing the risk of loss through the failure of major trading Ian Smith partners has to be tight usually negatively. Your messag- control es need to be honest, clear and realistic. Show your commitment 3. Your new taxman: to the business, but do not make For many small businesses, tax promises you cannot keep. If you is an area where some welcome have bad news share it promptly. slack from cashflow challenges The length and severity of may be available. Your taxman any downturn is uncertain, is under instructions to be more which makes business planning understanding – and in prac- difficult. Deciding whether an tice, HMRC is saying yes to well unexpected slump in sales is a thought out requests for deferral new trend or merely a blip that of tax payments. In many cases, will quickly be reversed is very a few simple tweaks to the busi- difficult, and calls for a differ- ness’ administrative arrange- ent response depending on the ments can also defer the tax bill outcome. significantly. Endless scenario planning can be of limited value, but with 4. Watch the supply chain: a focused approach, a business However skilful and careful a can establish the extent of its climber, his fate is linked to who- operating headroom. A company ever else is on the rope. Without should have three scenarios; insurance cover, the key to man- a best guess outcome, one aging the risk of loss through the modelling 10-20% downside failure of major trading partners and a “bank payout” situation. has to be tight control, commu- This kind of planning can help nication and prompt action when improve a company’s agility. As problems arise. You need to market conditions change, if the take a hard look at who you are analysis has been done ahead linking your fate to. If you are not of time, a company can imple- comfortable, address the issue ment its strategy more quickly before there is a problem. and gain a competitive edge rela- tive to its peers – an important consideration for the eventual For many small upturn. businesses, tax is an area That recovery, however, is unlikely to be swift. The extent of where some welcome both corporate and personal in- debtedness will require a lengthy slack from cashflow deleveraging process. Liquidity challenges may be will remain tight, while consumer and corporate confidence will be available slow to return. Companies face a hard grind, not just this year, but 5. Value your people: stretching into 2010. Faced with However robust the business, this tough outlook, it is vital that this is a worrying time for your companies take action now to employees. You cannot change control their own destiny. that, but you can help. Never has communication been more Details: important. Rest assured that the Ian Smith rumour mill is in full operation, 0118-9383260 filling in any gaps you leave – [email protected] With 2009 likely to be one of the most challenging years on record, now is the time to take control of your now is the time to take control With 2009 likely to be one of the most challenging years on record, – to help you make of charge own destiny and get your business into shape. Spend 1 hour with us – free better business decisions. Contact Jonathan Bentley on 0118 938 3017 or [email protected] managinginadownturn.com to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) or, ‘PricewaterhouseCoopers’ refers All rights reserved. © 2009 PricewaterhouseCoopers LLP. which is a separate and independent legal entity. the PricewaterhouseCoopers global network or other member firms of network, each as the context requires,
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk corporate recovery & turnaround 23 Dedicatedinsolvencypracticelaunched Thames Valley accountants and business advisers, James Cowper LLP, Commenting on the launch, Sue Staunton said: “The current has expanded its practice with the launch of James Cowper Insolvency economic climate has seen an Services LLP enormous increase in demand for business restructuring and James Cowper Insolvency Serv- insolvency services. James ices brings together a 10-strong Cowper Insolvency Services team of highly experienced is a natural progression to the insolvency, restructuring and advice and support we offer our business turnaround specialists, clients. combining almost 100-years’ top “Our dedicated team offers flight experience, and the abil- a full range of business turna- ity to draw upon the extensive round and restructuring support resources of one of the region’s across a variety of industry sec- largest accounting firms. tors. Our focus is to assist in the James Cowper Insolvency recovery or rescue of struggling Services is led by James businesses, but we recognise Cowper partner Sue Staunton, that is not always possible. a licensed insolvency practi- “When a business has failed, tioner who spent some 10 years James Cowper Insolvency working in insolvency for Grant Services can assist in choosing Thornton. the right insolvency procedures She is joined by Peter Hall to minimise losses to creditors and Sandra Mundy, both former and exposure on the part of colleagues at Grant Thornton, directors.” and Peter Whalley, formerly of PricewaterhouseCoopers. They Sue Staunton, Sandra Mundy, and Peter Hall (front row: third, fourth and Details: Sue Staunton will be supported by a dedicated fifth from left respectively). Peter Whalley (back row second from left) and [email protected] team of professionals. the James Cowper Insolvency Services team www.jamescowper.co.uk
known better. If you are in any Timeforfinancedirectorstoruletheworld doubt about the solvency of your business, you should seek profes- Effective business planning is the best way to spending. Directors should also sional advice for peace of mind. analyse recent experience and Secondly, businesses may be turnaround a struggling business, says Sue establish which product or service a curate’s egg – i.e. good in parts. Staunton, partner and head of James Cowper lines generate a proper contribu- Whilst taking care not to break the tion and which are more marginal insolvency rules relating to trans- Insolvency Services or loss making. In addition, the actions at an undervalue it may be customer list should be reviewed possible to plan to sell the good As the credit crunch starts to bite, get there in the most direct way? to ensure that credit ratings are parts off or close the bad parts the importance of having a sound A business plan can take many still correct. down and retrench. business plan and using it as a forms, but should include the Most importantly, there then Thirdly, boldness is the key to tool to guide your strategy has following: needs to be effective monitor- survival in difficult circumstances. become evident. • An analysis of where the busi- ing of results against this plan. In Already, we are beginning to see To put it simply, companies who ness is now, what the strengths recessions more than at any other that businesses that took bold have a good idea of where they’re and weakness are and what are time, budgets should be flexible and decisive action to contain going and plan and budget to the opportunities and threats and regularly revised to reflect their costs, through redundancy or achieve those objectives will have for the future. changed circumstances and ac- other measures, have now placed a much better chance of surviv- • Where do you want to go – tions taken by management as the themselves in a much better place ing the current recession. Having what do the directors want the year progresses. To be useful, this to survive. articulated a plan also means that business to achieve over the monitoring needs to take place On a more positive note, they are able to identify when next five years? on a timely basis and, in difficult many businesses can thrive in a business performance is diverging • Why do you want to do it – times, we would always suggest recession. Those with cash, for from that strategy and take early does everyone want to achieve that a client prepares a rolling example, can look for acquisition steps to avoid disaster. In con- the same objectives? Often three month cashflow statement. opportunities or invest in capital trast, companies who “fly by their we find that two directors/ By undertaking this process within the business in a more af- pants” and haven’t planned ahead shareholders have very different rigorously, businesses will give fordable way. Recessions can also are more likely to flounder. objectives and this can pull the themselves the best chance of be a good time to make strategic Despite this, it is still surprising company in different directions. surviving the recession. However, recruitment decisions as the pool how many businesses have no • How are you going to get there in some cases, through no fault of of candidates widens. formal business or management – what should the business do their own, the fundamentals of the Whatever the circumstances information. It’s a good idea, to achieve its objectives? markets, products and services your business finds itself in at the therefore, to go back to basics • The financial implications – that the business is involved in moment, I wish you well and hope and review the essential elements what will happen if the business will mean that the outlook is grim. that your planning and monitoring of a business plan. achieves its objectives, what In such cases, there are a few processes protect you and help Rather than starting with will happen if it does not, what rules and reminders that are also you to prosper. the detail of numbers, planning working capital and investment important. should begin with a broader are required to achieve the Firstly it is important not to Details: Sue Staunton view. Directors and shareholders objectives? trade insolvently. This is particu- [email protected] should discuss and assess what Once the overall strategy has been larly relevant for finance directors www.jamescowper.co.uk it is that they really want to do set, the directors can then focus as regulators are and achieve and over what period on the coming year. Firstly, an often more robust of time (as individuals as well as annual budget needs to be agreed in their treatment of corporately). After all, if you do which includes a detailed review finance directors as not know where you are trying to of overheads to identify and they take the view get to then how can you expect to eliminate discretionary/comfort that they should have
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 24 corporate recovery & turnaround www.businessmag.co.uk Pre-packscanbea‘validtool’ Opposite, a lawyer looks at pre-packs from a legal perspective. Here, David Clements, business recovery partner of Reading-based accountants and business advisers Chantrey Vellacott DFK, considers some of the concerns about the pre-pack process, and concludes that they are a valid tool to use
Pre-packs are not new but they a connected party or winding the for secured creditors in a pre-pack have increased in volume follow- company up, the best decision for is an average of 42% compared ing the Enterprise Act of 2002. The the creditors is to sell the business with 28% in a business sale. process is viewed with some sus- on rather than allowing the busi- In addition, the value of the picion as creditors are informed of ness to fail as the returns would business is retained. When the the pre-pack after the process is be considerably less. business’ principal assets are the completed. Some people are against pre- employees, forward contracts or A pre-pack is a deal for the sale packs, and it is understandable intellectual property, prepacks can of an insolvent company’s busi- that creditors after the fact would be successfully deployed. Once ness (and/or assets) which is put be suspicious of the procedure. word of a company’s financial in place before the company goes Critics also believe some use difficulty gets out, it becomes David Clements into administration. The deal for pre-packs to get out of debts and much harder for IPs to retain the the sale of the business will usu- obligations so creditors lose out vital assets necessary to keep the The number of pre-packs will ally have been worked out before as a result. company viable. Suppliers and continue to rise this year as busi- the insolvency practitioner (IP) is Critics also think that it is wrong customers may take their business nesses struggle to get credit from formally appointed, and is then that a business is sold back to the elsewhere, leaving the company banks. Risk advisers estimate as rapidly executed once appointed. owner of the company although with few assets and, effectively, many as four in five UK suppli- The business is usually sold the sale of a business back to no business. Therefore, pre-packs ers will be affected by pre-pack with little or no open marketing. connected parties is not exclu- are a tool to bring about the sale administrations. Unsecured creditors are usu- sively a feature of pre-packs. of a business which may have Independent research shows ally not informed of the pre-pack In 52% of all standard business otherwise simply shut down. evidence that pre-packs (due to until after it has been completed. sales the business was sold back There has been a lot of misun- their speed) perform better than Secured creditors will usually to connected parties. This figure derstanding about how pre-packs business sales taking place after be aware of the transaction as is 59% in pre-pack administra- operate; there have been moves to an appointment in preserving they will generally be required to tions. This differs from a “phoenix” improve the transparency of pre- employment. release their security. where the sale always involves the packs. SIP (Statement of Insol- Pre-packs are a valid way of Opponents of pre-packs are owner or connected parties. vency Practice) 16 was introduced dealing with businesses and the concerned that creditors are There are benefits to the on January 1, 2009 to require IPs SIP will ensure that the interest rendered powerless by the proc- prepack. They include the fact to disclose to creditors why the of all creditors has been con- ess. Creditors will not be able to that pre-packs preserve more jobs decision to pre-pack was taken, sidered and that the process is recover money owed from the than business sales. In 92% of the large amounts of associated transparent. new proprietor even if, as in many pre-pack cases, all of the employ- information concerning that deci- cases, the business effectively ees were transferred to the new sion and the connections between Details: remains in the same hands. Others company which compares with the purchasing company and the David Clements have suggested that suppliers 65% for a business sale. company in administration. These 0118-9524100 are also left in the dark and out of For secured creditors, they are going to be proactively policed [email protected] pocket, as supply contracts are provide a satisfactory return. The to see that all parties have effectively rendered null and void reality of a business going through behaved in the right way. without any notice. insolvency is that the creditors IP’s who are judged to Faced with the decision very rarely receive all of the money have broken the new rules between selling the business to owed to them. The average return could be disciplined. Smallbusinessesbeing‘driventowallbybankloanrates’ Tougher lending criteria are push- corporate loans to Libor rather looking to secure new credit lines see large scale job cuts and this ing small businesses into insol- than the interest rate set by the now, well before their existing loan will see the figures for personal vency, warns Wilkins Kennedy. Bank of England. facilities expire, as this will improve insolvencies rise much higher in As the credit crunch tightens its “That is hitting businesses with their chances of guaranteeing their the months ahead. grip, the latest figures published turnovers of less than £5 million funding. “The severity of the UK’s debt by The Insolvency Service reveal hardest. For companies without “On the other hand weaker binge was already in evidence that the number of individual insol- assets to borrow on, the situation businesses that have survived by before the credit crunch, with indi- vencies in England and Wales has is tougher still. taking on high levels of debt are vidual insolvencies rising sharply risen by 18.5% in the past year to “Lenders are shying away from now finding that the rug has been in the past few years. reach 29,444 in Q4 of 2008. even secured lending to small pulled out from under them as “Things are going to get even Wilkins Kennedy, the Top 25 businesses and raising interest lenders refuse to continue funding tougher for those struggling to pay accountancy firm, says that rather rates as the downturn makes them at sensible interest rates. back unsecured loans. Unemploy- than victims of the recession the these kinds of loans look increas- “Construction and property ment has almost reached the personal insolvencies we are see- ingly risky. Banks are requiring businesses have been hit the two million mark so if you have ing now are more likely to be those even those with strong business hardest but we are now seeing outstanding debts and have been who built up unsustainable levels plans to provide a high level of increasing numbers of pubs, bars unable to build up adequate sav- of debt prior to the credit crunch. security against loans. At the same and clubs going to the wall as they ings then there will be nothing to Corporate insolvencies have time it is becoming increasingly struggle against the downturn in cushion the blow. soared by 51.6% in the past year difficult for company directors to consumer spending.” “The reality is that even as to reach 4,607 in the last quarter. borrow against assets that are Another surge in personal the economy recovers we are Keith Stevens, insolvency part- continuing to fall in value. insolvencies is expected as the unlikely to see a fall in the number ner at Top 25 accountants Wilkins “Despite calls from the Govern- downturn continues. of individual insolvencies for a Kennedy, commented: “Small ment there is no sign that the “Whilst the impact of the credit long time.” businesses are being driven to the freeze on lending to businesses is crunch is now sending increas- wall by higher borrowing margins. beginning to thaw. In the current ing numbers of businesses to the Details: Keith Stevens There is a tendency to link more climate businesses need to be wall we are only now beginning to 01784-435561
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk corporate recovery & turnaround 25 Savingbusinessesandjobs?How effectiveisa‘pre-pack’administration? The range of techniques available to insolvency and restructuring professionals to help businesses and management deal with the effects of financial or operational distress is constantly evolving and improving, writes Pitmans’ insolvency and restructuring partner, Ian Searle. Whilst pre-packs are not new, they have increased in volume following the Enterprise Act 2002. The process is viewed with some suspicion as most creditors are informed of the pre-pack after the process is completed
Recent independent research of the money owed to them. It taken, plus large amounts undertaken on behalf of R3, the is therefore more accurate (and of associated information Association of Business Recovery helpful) to consider what credi- concerning that decision and Professionals, indicates that the tors might reasonably expect the connections between the positive aspects of pre-packs in a distressed situation rather purchasing company and the are not reported and there are than the total amount owed. company in administration, i.e. clear benefits to the process in R3 found that the average re- the directors and sharehold- this current downturn. Pre-packs turn for secured creditors in a ers. can be an invaluable tool for an pre-pack is an average of 42% • It isn’t right that a business is sold insolvency practitioner, keeping as compared with 28% in a back to the owner of the company a business trading and saving business sale. The average re- The sale of a business back jobs. In 92% of pre-pack cases, turns to unsecured creditors in to connected parties is not Ian Searle, partner R3 found that 100% of jobs were insolvency cases are very low; exclusively a feature of pre- saved. Pre-packs also provided pre-packs provide just 1% of obligations which are owed to packs. R3 found that in 52% a better return for secured credi- return, whilst in business sales creditors in the pre-appoint- of all standard business sales, tors when compared with their the average return is 3%. ment period. They should be the business was sold back to prospects, should the company mindful of the potential liability • The value of the business is connected parties. This figure be simply liquidated. which may attach to any per- retained is 59% in pre-pack admin- son who is a party to a deci- istrations. This differs from What is a pre-pack? Pre-packs are deployed sion that causes a company to a “phoenix”, where the sale successfully when the busi- incur credit, and who knows A pre-pack is a deal for the sale always involves the owner or ness’ principal assets are the that there is no good reason to of an insolvent company’s busi- connected parties. Faced with employees, forward contracts believe it will be repaid. Such ness (and/or assets) which is put the decision between selling or intellectual property, as in liability is not restricted to the in place before the company goes the business to a connected all service businesses. Once directors. into a formal insolvency process, party or winding the company word of a company’s financial • The earlier a business or its usually administration. The deal up, the best decision for the difficulty gets out, it becomes directors seek professional for the sale of the business will creditors is to sell the business much harder for insolvency advice, the greater the options usually have been worked out on, rather than allowing the practitioners to retain the staff, which are likely to be avail- before the insolvency practitioner business to fail as the returns suppliers and customers nec- able. Leaving matters to the is formally appointed, and is then would be considerably less. rapidly executed once the ap- essary to keep the company last moment in the hope that pointment is made. viable. Suppliers and custom- Conclusions “something will turn up”, until ers will attempt to take their a cashflow crisis or creditor The business is usually sold • The independent research business elsewhere, leaving pressure forces them to seek with little or no open market- undertaken by R3 shows clear the company with few assets advice, is one of the major (and ing. Unsecured creditors are not evidence that pre-packs (due and, effectively, no business. avoidable) challenges facing usually informed of the pre-pack to their speed) perform better Therefore, pre-packs are a many insolvency and restruc- until after it has been completed. than business sales taking tool to bring about the sale of turing professionals seeking to Secured creditors will usually place after an appointment in be aware of the transaction as a business which may have preserve and maximise value. otherwise simply shut down. preserving employment. they will generally be required to • Many types of businesses have release their security. In the current downturn, with What are the negative claims made been pre-packed, predomi- fewer buyers around, a pre-pack What are the benefits of a pre- against pre-packs? nantly those in the service and can be a good option for many construction sectors. Trad- pack? • Pre-packs are a ‘stitch-up’ distressed businesses. However, ing on a service business is the underlying operational as • More jobs are preserved It is understandable that virtually impossible where the creditors who are informed of well as financial issues, which R3 found that pre-packs pre- employees as the main assets caused the initial problems must serve more jobs than business a pre-pack deal after the fact of the business can walk out of would be suspicious of the be identified and addressed as sales (i.e. a going concern sale the door to alternative employ- part of the restructuring process, procedure. Critics also believe of the business negotiated ment. to give the new business and its some business people use and arranged after the com- • Pre-packs are a valid way of employees the best chance of pre-packs to get out of debts mencement of the insolvency dealing with businesses and success going forward. procedure). In 92% of pre-pack and obligations, or acquire the SIP will ensure that the assets cheaply so creditors cases, all of the employees interests of all creditors have Details: Ian Searle lose out as a result. There have were transferred to the new been considered. The process 020-7634-4635 company which compares with been recent moves to improve is transparent by ensuring [email protected] 65% for a business sale. the transparency of pre-packs. creditors are provided as early www.pitmans.com SIP (Statement of Insolvency as possible with a detailed • They provide a satisfactory return Practice) 16 was introduced on explanation and justification for secured creditors January 1, 2009, that require of why a pre-pack sale was The reality of a business going insolvency practitioners to undertaken. through insolvency is that the disclose to creditors why the • The SIP reminds insolvency creditors very rarely receive all decision to pre-pack was practitioners of the duties and
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 26 corporate recovery & turnaround www.businessmag.co.uk Copingwiththerecession: somekeybusinesslessons In this article Neil Relph, location director of Beaconsfield’s Vantis, the accounting, tax and business recovery and advisory group, looks at some key lessons that can be learnt in a recession, and offers advice on how business owners can steer their companies to grow and prosper, by taking the right steps
Hopes were high at the start of for others, a tougher economic en- recommend three simple steps: 2008 that the effects of the credit vironment will provide unexpected • Success starts by defining the crunch would be contained within opportunities. In uncertain times, business opportunity: to satisfy Neil Relph the global financial system; in fact cash is king, and those (mostly the needs of a real customer, for the first six months, we won- mature) companies that have who needs a job to be done Of course, there are many more factors to consider when steering dered what all the fuss was about. strong balance sheets, fat margins • Construct a plan setting out your business through a recession, People assumed that non-financial and good cashflow, will have a how your business will fulfil the and the above represents merely businesses would simply carry definite edge over those in the above need, at a profit an introduction to these. Vantis on regardless – beliefs fuelled by critical phase of their investment • Compare your new plan to your invites you to explore the subject in the news of expanding sales and cycle – especially start-ups that are existing model, and review the greater detail at its upcoming free record profits. spending, rather than producing, extent to which you would need seminar entitled “The Recession ... The shock turn of events in cash. to change it, in order to capture Can you see light at the end of the September changed everybody’s Opportunities will arise for com- the opportunity. tunnel?”. This will be held on March outlook almost overnight, as if panies with cash to acquire weaker By completing the above steps, 17, at 9.30am in Marlow. suddenly businesses had fallen off rivals and, through the synergy you will identify whether you can a cliff that no-one could see. The savings of a combined business, use your existing business model Details: www.vantisplc.com/events speed of the ensuing downturn to increase profit margins, thereby and structure to meet the new caught everyone by surprise, and repaying the initial costs of the need, or whether you need to sepa- now, six months later, nobody is acquisition. rate out a new business unit, to expecting business as usual for the To sustain your business in a execute a new model. Successful year ahead. recession, it is essential that you companies are those that profitably For many businesses, the top reinvent your business model and fulfil a real customer need with an priority will simply be survival, while develop a clear road map. We effective business model.
Never was it more important Survivingintherecessionandbeyond to avoid the pitfalls of going off track and losing sight of what’s Whether we like it or not, recession is here and we all have to deal with important as now during a downturn. Sometimes the best- the challenges it creates. At Kaleidoscope Partnership Consultancy laid plans get skewed and twist- (KPC) we can talk from experience, having been through the last ed to become something quite different to that intended. We recession; what we learned then will stand us and our clients in good call this the Zone of Distortion. It is when elements within the stead during this one organisation unknowingly act as distorting factors upon the Most businesses are faced with focus our own experiences of can do to help them remain original intention and, therefore, the harsh realities of the current the need to adapt, evolve or being customers. change the desired outcome. business world and trading innovate. Similar to Darwinism it • Identify all possible markets Tough though it is, keeping a conditions. Like most busi- is concerned with survival and and routes to market. Revisit perspective of the long-term nesses, KPC has no safety net natural selection. Survival is traditional areas but also look vision is important or your short- against the recession and is as about adapting to the conditions at where the market potential term adaptability could lead to exposed as anyone in the man- in which we find ourselves in the is during this period based on distortions from which recovery agement consultancy sector. present. Those that can’t will your core proposition. becomes costly, time consuming In a perverse way, however, we become extinct which in turn • Analyse your competition, and competitively damaging. are positive about it. As long as creates new opportunities for reset your benchmarks to Thinking in Darwinian terms we apply our survival rules and others. So beware large dino- beat them, if not in all, then in again, were you setting out stick to what we believe we are saurs, it might well be time for some key areas, that will give to develop a horse, only to good at, our competition will the quick-witted nimble mammal you an opportunity to exploit design a camel? It is said the reduce and our potential cus- to rule. and win over new customers. camel was a horse designed by tomer base increase. We have • Galvanise your people committee, wherein the classic an opportunity to demonstrate KPC six rules for surviving the and use all your resources distortion must have happened. our ability to thrive in adverse recession: towards one clear purpose conditions and we relish the • Go right back to basics and to give it your best shot at Details: challenge. define precisely what your every opportunity that comes Kieran Maloney The BBC in conjunction with core business proposition is. along. 07785-335990 David Attenborough, is cur- • Strip out everything that is [email protected] rently running a series about not directly contributing to Do these six things and you www.kpcuk.com Charles Darwin who, 150 years this core proposition to make will have a better ago wrote “The Origin of the you as cost-effective as pos- chance of surviving Species”, from which came the sible. what looks like the work and ideas on natural selec- • Really, really get close to your worst set of trading tion and evolution. The current customers to understand as conditions since the situation has brought into sharp best as possible what you 1930s.
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk corporate recovery & turnaround 27
consider inviting professional advisers to a full board meet- Tradingwhilstinsolvent? ing to speak to the board as a whole and answer any ques- tions that the board may have. In the current economic climate, it is important The crucial element is that directors of companies regularly consider communication, whether amongst the board members, whether their respective companies could be with the bank or with credi- trading whilst insolvent. This article by Kathryn tors. Creditors, no matter how big or small, become suspi- Tait, a solicitor at Boyes Turner, aims to help cious when they are ignored or avoided. Being upfront and directors identify whether the company is honest at an early stage will insolvent, the possible consequences, and help creditors to understand the situation and may assist in what they can do to help the companies, the the parties finding a solution, creditors and themselves for example creditors may agree to smaller but regular payments. If you do not com- Is the company insolvent? Failure to do so may result in municate with creditors it is any of the following: more likely that the company There is no statutory defini- will face a statutory demand, tion of “insolvent”. However, • proceedings against the di- rectors for fraudulent trading shortly followed by a winding the Insolvency Act 1986 refers up petition. to a company being unable to • proceedings against the di- rectors for wrongful trading Often the problem is cash- pay its debts as and when they flow and equally as often a fall due and to the value of a • proceedings against the directors for misfeasance. review of the debtor books company’s assets being less reveals the problem. A round of than its liabilities. In either of If any of the above are estab- lished, the directors could be chaser letters to debtors may these circumstances it is likely Kathryn Tait raise additional funds. Fur- that a Court will find that the held personally responsible for the debts of the company. It ther, it may be that customers company is insolvent. But what can be persuaded to agree to may also lead to disqualifica- owed to the company to those does this mean in practical change payment terms so that tion proceedings, and if the terms? owed to the creditors. From rather than 60 days they pay directors cannot satisfy any this point, the directors must within 30 days. Some key questions: monetary liability, personal be seen to be taking every step • is the company able to pay bankruptcy. Both disqualifica- to minimise any potential loss its invoices within the pay- tion proceedings and bankrupt- to the company’s creditors. In a wrongful trading ment terms i.e. within 30 cy will affect a director’s ability Professional advice should situation, the courts will days? to trade or gain employment. be sought as early as possible. • do the directors have to In a wrongful trading situation, look favourably on a regularly ask creditors to ... the directors could the courts will look favourably director who has sought wait for payment? on a director who has sought • are direct debits and be held personally and followed professional and followed professional cheques being returned responsible for the debts advice. Regular communication advice unpaid on an increasingly with the bank will assist and by involving the company’s ac- frequent basis? of the company Finally, if a decision to trade on is countant, up-to-date informa- • are the directors deferring made, directors should carefully tion should be available. payment of PAYE, NIC and Under the provisions of the consider and take the appro- Frequent board meetings VAT? Is the company using Insolvency Act 1986 relating to priate advice on putting client should be held with all direc- sums set aside to pay HM wrongful trading, it is not neces- deposits and pre-payments in a Revenue and Customs for sarily a defence for a director tors present. Non-executive separate account until the goods other purposes? to say that they didn’t know or directors are frequently under or services are delivered. In the • are creditors insisting on have the skills to appreciate that an illusion that the same rules event that the company goes cash on delivery? the company was insolvent. A do not apply to them. This is into an insolvency process, the • is the company using depos- director’s conduct will be judged incorrect – a non-executive client deposits and prepayments its from customers to pay against (1) the general knowl- director can be held liable as are protected. for raw materials for other edge, skill and experience that with any other director. Further, It is a hazardous time for customers’ orders? may be reasonably expected of those individuals with whose companies and directors alike, • is the company only able to a person carrying out the same instructions the directors are but one that with the right pay off interest on loans and functions as are carried out by accustomed to act, in other approach and advice can be overdrafts? that director in relation to the words “shadow directors”, and safely navigated. • is the overdraft increasing? company and (2) the general those holding themselves out • is the landlord chasing for knowledge, skill and experience to be directors may also be Details: rent or insurance? that the particular director has. liable. It is therefore impera- Kathryn Tait • are the values of assets It is therefore against both an tive that anyone involved in the 0118-9527205 diminishing or have little or objective and subjective test to promotion, formation and man- [email protected] no equity? which a director’s conduct and agement of a company attends If the answer to most of these decision making is reviewed. all meetings to which they are questions is “yes”, the com- invited and requests all such pany could well be deemed to What can be done? information that they think nec- be insolvent, and it is impera- The directors must be realistic essary to apprise themselves tive that professional advice and honest about the state of of the company’s situation and should be sought. the company’s affairs and the make any decision necessary. prospects going forward. This At such meetings, up-to-date The consequences will include reviewing the posi- management accounts should If a company is insolvent, the tion of customers and clients be prepared and laid before the director is duty bound to con- to check if they are financially attendees. Detailed notes and sider putting the company into sound. As soon as the direc- minutes of all decisions should a formal insolvency process. tors suspect that the company be made and kept – whether The primary purpose of this may be insolvent, the emphasis made at a board meeting or duty is to protect creditors. of their duties shifts from those not. The directors should also
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 28 corporate recovery & turnaround www.businessmag.co.uk Cashflowmanagement–best defenceinuncertaintimes Martha Thompson, business restructuring partner at BDO Stoy Hayward LLP, explores the options
As we all know only too well many Under the late payment Talk to your bank businesses are facing difficulties legislation, a business may be Businesses may wish to discuss in the current economic climate. A able to charge interest and debt with their bank whether additional reduction in the supply of readily recovery costs, both at its own funding is available. The medium available funding means that many discretion. and long-term plan should form companies of all sizes are strug- part of any dialogue so as not to gling to secure finance. Look at financing cause undue concern, which may Banks have become more Businesses should try to renegoti- make matters worse. However, rigorous in applying their lending ate their credit limits and adjust communication with the bank is criteria as they return to risk rather payment dates with main sup- important as bank managers and than market-led pricing. This also pliers to better suit the needs of financiers who are unaware of means that short-term borrowing the business. Companies should problems until the last minute are is no longer available to finance also consider alternative financing unlikely to be sympathetic and long-term strategies and commit- arrangements that will improve will be less able to form part of a ments or in some cases, trading cashflow in the short term and Martha Thompson losses. solution. help provide a window to imple- Other advisers such as solici- As cash generation supersedes ment a profit improvement plan. To summarise, the most tors and accountants can be use- important feature of all is facing both sales and profits as the key These could include factoring or ful sounding boards and might be up to the facts at the earliest business driver, sound financial invoice discounting as well as able to help. The earlier the busi- possible opportunity. The longer controls are becoming increasingly sale and leaseback arrangements. ness speaks to them, the more the business waits to address the important. Many businesses are Other options may include sup- adopting a more inward looking options there are likely to be. issues, the more difficult it will be plier finance, sometimes called to resist a downturn and return approach. “reverse factoring”, an option if Bring new equity into the business There are several ways that to profitability. Taking action to the business is a regular supplier business can improve their cash- Owner-managers could sup- address areas of inefficiency or to a large organisation that has an flow: port the business from their own under-performance will also leave appropriate arrangement in place. resources; the cheapest form of the business in a stronger position Improved debt recovery Project bank accounts (which finance. Business angels might to capitalise on any available op- ensure that a contractor and their Despite best efforts, sometime provide a source of manage- portunities in the market. supply chain receive payments a business will find that some ment expertise as well as finance. Turnaround specialists will customers end up paying late. If promptly through certified interim Refinancing will often buy you identify and assess the prob- this happens, the business should payments) and asset-based lend- additional time but will not, in iso- lems facing a business and drive contact the customer as soon as ing may also help. lation, ensure survival, if you fail to through appropriate solutions. Our address the underlying problems own newly-launched microsite, possible to try to resolve the issue. Grants and government funding The business should then review facing the business. dedicated to helping businesses There are an increasing number of survive 2009, is just one of the its procedures and tighten up its Sell assets credit control processes to reduce grants and government guaran- ways companies can gain useful the possibility of this happening teed financial schemes available Raise cash by selling under-uti- information to help them navigate again in future. to help viable businesses with lised assets and then leasing them the downturn: One useful technique is to call temporary cashflow problems. back. However, the business must www.bdo.co.uk/surviving2009guide customers shortly before the due They can assist with business de- ensure it is selling the assets at date to obtain confirmation that velopment and are available from market value if it is to connected Details: there is no query over the debt a variety of sources including the parties. Martha Thompson and that it will be paid on time. government, european union, [email protected] Businesses may also wish to regional development agencies, Reduce costs consider taking other measures Business Link, local authorities Cost cutting is often the most ob- to protect themselves against and some charitable organisa- vious strategy but it is not simply a customer failure and ensuring that tions. These grants may be linked question of downsizing. Where it is they do not become the custom- to business activity or a specific appropriate, downsizing needs to er’s banker by default. A review of industry sector and some grants be managed properly. A knee-jerk the terms of trade and in particular are linked to specific geographi- reaction to trading difficulties can retention of title clauses may also cal areas, e.g. those in need of endanger the business you are assist in future debt recovery. economic regeneration. trying to save.
Reading is clearly well placed, Connect Reading – creating profit but is it a recession-beater? through community involvement Reading is better placed to reports in its “Cities Outlook For those who believe community School; Jenny Dawkins, head withstand the recession than 2009” that Reading is one of involvement is vital during chal- of corporate responsibility most towns and cities, accord- five “cities” ranked among the lenging times, the next Connect research, Ipsos MORI Reputa- ing to recent reports. top 10 in all three indices of Reading conference will be on tion Centre; Paul Briggs, chief Experian’s Policy Insight of economic prosperity, built envi- March 19, 9.30am-4pm at The executive, Thames Valley Cham- Winter 2008 shows Reading ronment and social deprivation. Waterfront, Oracle Corporation, ber of Commerce; Michael as the number one location in C4C defines Reading along Thames Valley Park. Coughlin, chief executive, Read- terms of annual average GVA similar lines to its functional Speakers include: Steve ing Borough Council. growth between 2010 and economic area, i.e. Reading, Downing, associate professor of 2026. Centre for Cities (C4C) Wokingham and Bracknell. strategy (CSR), Henley Business Details: www.connectreading.co.uk
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk business success 29 in association with It’snotallbadnews Barclays Commercial Bank There may be a recession on but bad news does not tell the whole story. In a new series of monthly articles Barclays Commercial Bank highlights business success in the region. Richard Willsher of The Business Magazine reports
Anyone thinking about the says that he is glad he didn’t go recruitment sector, especially ahead with buying a property a where it involves filling jobs in couple of years ago. finance and accountancy, might So what about the market at imagine it was an area of busi- the moment? “We are seeing ness that is on its knees. But this year that people are cutting Greg Thorpe, managing director back on hiring at the senior and founder of Farnham-based end but at the junior end there Howett Thorpe Recruitment is a lot of activity; a surprising Consultants, has a different amount actually. A lot of the story to tell. companies that we are recruit- The company opened for ing for are going through huge business in 1988. It has sales growth. Companies are sorting of over £2 million annually, a out their credit control, and staff of 10 and recruits per- their sales and purchase ledg- manent and temporary staff ers so there’s activity there. At for accountancy and finance the same time there are a lot functions of businesses of all of candidates out there at the sizes, as well as for the ac- moment but we still interview all countancy profession. Its field of them. If they have registered of operations covers Berkshire, with us we will get them in and Hampshire and Surrey. talk to them. Because when the right job does come along ‘We are full of praise for you’ve got to be able to talk about your candidate. When Barclays, as they’ve been you know your candidate, re- extremely supportive cruitment is easy.” from the start’ ... despite the doom and Thorpe doesn’t deny times are gloom many of his clients tough but has taken steps to make sure that the firm is well are doing really well placed to weather the condi- tions. “The penny dropped in Finally, Thorpe says that you’ve about September of last year. got to have a strategy. “You We noticed companies with- can’t have an attitude of ‘let’s drawing offers from candidates just see how it goes from and putting on hold jobs that month to month’. You’ve got they were recruiting for. These to have a plan, especially for are classic signs .... But we are your staff. They’ve got to have better prepared now than we the confidence in you mov- were in 1991, which was really ing forward.” And he remains bad for us. We’ve been in busi- upbeat because despite the Greg Thorpe: ‘... there are a lot of candidates out there at the moment but ness a long time so we’ve got doom and gloom many of his we still interview all of them’ a big client base. At the same clients are doing really well. “I time a decision we made about was talking to one this morning three years ago to target some makes sure that he works close- body. The fact is that there is who told me his competitors of the larger companies has ly with his internal accounts col- business out there and you just had gone under and he’s picked paid off.” league to carefully monitor cash have to be more streetwise. Our up the business from that. He’s Howett Thorpe bid hard to get in and out of the business. market share is very small so we now hiring a financial director on to the preferred supplier lists “But the key I think is the are focused on increasing that to help him run the business. of companies like Lastminute. team that we have. You have market share by more effective There are definitely success com, BMW, Sanofi and Hotels to keep your key staff because marketing. That’s something stories out there and we are For You. In fact it has 38 clients when you come out of a reces- else I learned from 1991; don’t seeing this every day;” ... and like these. It means providing sion – and part of our planning cut back on your marketing and by the sounds of it Howett exceptional client service to stay is for when we come out the advertising. You’ve got to keep Thorpe is one of them. on the list but Howett Thorpe other end – there is no point your name out there and your is one of the few that clients in cutting cost and not having brand going.” Details: will turn to when recruiting. The much left. I spoke to my key Another advantage that company also recruits for many people, made them aware of the business has is that it is Greg Thorpe smaller, SME clients. “Having the situation we were facing not weighed down with debt. Howett Thorpe both types of clients,” says and we are all working as a Thorpe is full of praise for 07737-139519 Thorpe, “is a real godsend.” team and pulling together. And Barclays Commercial Bank, [email protected] They have had to take some if you come out of the recession which stuck with them in 1991 cost cuts including reducing in this sort of shape then you’re and is being supportive now but Andy Simpson staff. Thorpe says that he had in an incredibly strong position. all it has is an overdraft facility Head of Thames Valley to sit down with his accountants “The thing about the econo- and that is undrawn. Moreover Barclays Commercial Bank and decide where to tighten the my now is that there is so much it uses leased premises and is 07775-552125 belt. He has also added more negative news in the press that not burdened with the cost of [email protected] stringent credit controls and it can have an effect on every- commercial property. Thorpe www.barclayscommercial.com
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 3028087stripadBusMagazine:Layout123/1/0909:16Page1law www.businessmag.co.uk
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Commercial Commercial Property Corporate Disputes Environment One Friar Street Reading RG1 1DA Employment Financial Services Licensing Planning Private Client Tel.0118 951 6800 www.blandy.co.uk Reducingyourexposureto stressintheworkplace With recent statistics indicating that stress is the biggest cause of work-related illness, employers and advisers must be aware of the need to be alert to complaints of ‘stress’ from employees and the risk of the various claims that can be brought against them. Laura Binnie, a solicitor in Blandy & Blandy’s employment law team considers the issue of ‘stress management’ in the employment relationship
In the current economic climate, to be required which will involve referring employees to occupa- employees are likely to feel even the company actively considering tional health where appropriate. greater pressure to work hard a resolution to the problem. Fac- Ultimately, what is expected in order to try and secure their tors such as the employer’s size is that a reasonable employer Laura Binnie employment and bolster their and resources will be relevant. would notice that there might be position in the event of being It is therefore important to a problem that needs attention adjustments to their role in order put at risk of redundancy. While keep a regular “check” on staff and take steps to address it. to avoid costly claims for unlaw- some stress is acknowledged as and act on any issues relat- Finally, bear in mind that in ful disability discrimination. positive for us, severe stress can ing to stress that the employee cases of serious stress, the impact negatively on both the raises, for example in appraisals. employee may develop a “dis- Details: individual and the business. As Make sure that workloads are ability”, for example if their stress Laura Binnie the economy looks set to worsen distributed fairly and that junior triggers a clinically-recognised 0118-9516800 before it improves, how can employees in particular are sup- condition such as depression, or [email protected] companies reduce their exposure ported. Consider extra training if post-traumatic stress disorder. www.blandy.co.uk to potential claims in this area? necessary and it is always wise Such impairments will amount All employers have a duty to have an up-to-date stress poli- to a “disability” if they are “long to safeguard their employees’ cy in place and available to all term” (have lasted, or are likely health. As such, they can be li- staff. Employers will only breach to last, for at least 12 months). able for stress-induced personal their duty of care if they ignore This will of course lead to extra injury if they breach this duty and warning signs and fail to inves- obligations on employers not are held responsible for caus- tigate such signs, for example to discriminate against the em- ing the employee’s stress. For by seeking medical evidence or ployee and to make reasonable liability to arise, the employer must have been able to “rea- sonably foresee” such injury occurring in the first place. Until recently, it was thought that this LocalfirmPenningtonsadvisesonsaleof claim posed a number of dif- ficult hurdles for an employee leadinglegalsoftwaresuppliertoIris to overcome; the onus was on the employee to prove that the London and south east law firm ommended by the Law Society. It is the leading provider of software employer’s behaviour was fairly Penningtons Solicitors LLP has is also a founder member of the and services to both the legal and extreme and the test of reason- advised AlphaLAW on its sale to Legal Software Suppliers Asso- accountancy professions. able foreseeability was a strin- Iris Software Group, the largest ciation (LSSA) and attained gold Penningtons’ business serv- gent one. However, in October privately owned software and certified status in the Microsoft ices team, led by partner Charles last year, the Court of Appeal services business in the UK. partner programme. Brooks, advised the shareholders decision in Dickens v 02 plc ap- AlphaLAW was rated the “top The sale of the issued share of AlphaLAW on the corporate peared to weaken that test and legal software supplier” in six cat- capital of the company to Com- sale as well as on intellectual has potentially paved the way for egories in an independent survey puter Software Group, part of property, property, employment an increased number of stress carried out by the Law Society. Iris Software Group, will ensure and tax matters. claims. While the Court reiterated Penningtons was instructed by the continued development of Brooks said: “We were that employers must “reason- father and son John and Simon AlphaLAW, said Simon Meehan. ably foresee” the employee’s Meehan, the shareholders of “This will provide AlphaLAW pleased to advise on a deal which injury, it was sufficient here that AlphaLAW, the trading name for customers with access to the achieved a very satisfactory out- the employee had previously Management Support Systems. resources and investment of a come for two leaders in their field. complained of stress in her job. They have specialised in the major software house that under- Our own personal knowledge of It also may now not be adequate design, supply, and support of stands the changing needs of the the products they provide added for an employer to simply have computer based legal manage- legal sector.” an extra dimension to our involve- in place a counselling service ment systems for over 30 years. Iris Software Group has over ment in the transaction.” for employees – some level of AlphaLAW is one of the few 5,000 law firms, barristers’ cham- CMS Cameron McKenna LLP “managerial intervention” is likely software solution providers rec- bers and coroners as clients and acted for Iris Software Group.
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk finance 31 Homeworkersshouldclaimtaxrelief The economic downturn will “HMRC has recently confirmed business use of the office, in which specifies that the rooms result in more business owners that businesses can claim for practice there may be little or no concerned have an element of working from home, according mortgage interest and for people tax to pay. both business and personal use. to Target Chartered Account- who do have a large mortgage, Business owners who do use In these circumstances HMRC ants, which has an office in the tax relief can be significant. this strategy should ensure the have confirmed that full Principal Reading. Other eligible costs include rental, rent charged does not exceed Private Residence (PPR) relief However, whether they are es- council tax, home insurance, a commercial rent – this can be should continue to apply, so no tablished businesses which are repairs and energy bills.” checked by having an independ- capital gains arise. giving up their office space as Wilson said that the relief ent rental valuation by a quali- “Another concern that people part of a cost-cutting programme could be claimed by businesses fied professional or obtaining raise is that they will become or people who have been made that operated as a sole trader, comparative charges from a local liable to pay business rates. redundant and are setting up by partnership or limited company. serviced office. The level of rent Whether or not you claim tax themselves, they should ensure For a company to achieve maxi- should be reviewed annually and relief would have no bearing on they are claiming tax relief if they mum benefit it should pay an invoiced to the company. this – it would depend on an are to enjoy the full benefit. annual rent for partial use of the Wilson added: “People are assessment by the Valuations Andrew Wilson, head of cor- premises. The company was able sometimes concerned about Agency Office, which would take porate and business tax at Tar- to claim corporation tax relief on claiming relief because they into account factors such as the get, explained: “Business owners the rental payments. fear that, if they decide to sell extent and frequency of the busi- who use their home for business While the rental income their home in the future, part of ness use and any modifications purposes can claim a proportion received is subject to income the proceeds may be subject to made to the property to accom- of the costs – even if it is only for tax and individuals will need to capital gains tax. modate that. However we are not one room of the house for part of report it on their personal tax “This is highly unlikely but, aware of any instances where a the time, as it usually is for most return, as it can be offset by to be on the safe side, you can claim for tax relief has led to a of them. expenses attributable to the put in place a rental agreement business rates assessment.” Takingstockofthefinances Five specialist solicitors join Darbys As the end of another tax year it’s important to look at all the Darbys Solicitors of Oxford has with London-based firm Wedlake approaches, cashflow, busi- avenues open to you.” bucked the negatives trends of Bell. ness profitability and even just Here’s a summary of some of recession and taken on five new Award-winning Reshma surviving until the next payday the areas which offer tax relief: legal specialists. Sheikh will work in Darbys are hot topics. The tax year New clients gained for Darbys insolvency team along with Sonal end on April 5 is a good time to Individual Savings Accounts corporate, technology and me- Chudasmama. During her time consider your financial position (ISAs) dia, and insolvency departments working for Eversheds, Sheikh and check whether you have • Annual allowance of £7,200 have prompted the recruitment. won the Best Female Employee taken full advantage of the tax • Limit for a Cash ISA is £3,600 The firm already employs more at the 2008 British Asian Hafta reliefs and exemptions that are • All gains currently free from than 150 people. awards and in 2007 was Society available. capital gains tax Solicitors Daniel Hopkins and of Asian Lawyers Young Lawyer Tenon, the adviser to en- • No liability to income tax. Jonathan Williamson boost the of the Year and Female of the trepreneurs, says that there corporate, technology and media Year for Eversheds. is no time like the present to Pensions team. Hopkins comes from Solicitor Rachel Stafford, review your personal and busi- • Lifetime allowance of Moorcrofts in Marlow, having former managing partner at Fen- ness finances – to make sure £1.65m and annual allow- previously worked for Slaughter dom Dawson in High Wycombe, they are on track to meet your ance of £235,000. Both limits and May with FTSE 100 firms will cover private client business financial goals while reducing will increase annually including Marks and Spencer, specialising in probate, tax, wills, your tax obligations as much as • Any pension payment made Unilever and American Express. court of protection, LPAs and possible. by April 5 up to £3,600 is Williamson previously worked equity release. Peter O’Sullivan, national allowed and 20% basic rate head of financial services, says tax is deducted at source. there are a number of plan- This reduces the actual cost ning opportunities people can to only £2,880 for basic consider, depending on their rate and non-taxpayers circumstances. “Effective finan- and £2,160 for higher rate cial planning includes taking taxpayers. advantage of available allow- ances and exemptions such as Inheritance tax (IHT) planning deductions for pension contri- • Each individual can make butions, ISA allowances and IHT exempt gifts of up to inheritance tax exemptions.” £3,000 in a tax year. If the “The message is act now exemption was not used to save money by making the last year, it can be carried most of the tax relief available, forward for one year only, saving through tax efficient so gifts of £6,000 could be instruments and reducing the made in 2008/09 tax year. inheritance tax on your estate.” O’Sullivan adds. High-risk investments Andrew Jupp, national head • Investments such as Venture of tax, commented: “If you’re a Capital Trusts and Enterprise business owner, consider the Investment Schemes offer at- tax efficiency of your remunera- tractive tax relief (30% of the tion packages, minimise tax on amount subscribed for VCTs the sale of your business and and 20% for EISs). They are have a plan in place to extract high-risk investments as they profit tax efficiently from your invest primarily in start-up company. Individuals and busi- companies and will therefore ness owners are feeling the only be suitable for certain Darbys’ new recruits (from left): Rachel Stafford, Reshma Sheikh, Daniel effects of the credit crunch so types of investor. Hopkins, Jonathan Williamson and Sonal Chudasmama
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 32 finance www.businessmag.co.uk
Genesys buys SEEDAcommissionswork Conseros Alcatel-Lucent company Genesys Telecommunications tospeedpropertyrecovery Laboratories, based in Camber- ley, has acquired Conseros, a A major study is underway to SEEDA’s chairman Jim Sarah Whitney, managing Canadian company specialising review the impact of the credit Brathwaite said: “We want to director of the regeneration and in customer service delivery. crunch on development in the understand the impact of the development team at CBRE, The acquisition, for an undis- south east. global credit crisis on the re- said: “CBRE is proud to be lead- closed sum, is part of Alcatel- Commissioned by the South gion’s property market and what ing this work which will require Lucent’s continued investment East England Development this means for our housing and significant consultation with in applications software and Agency (SEEDA) from CBRE commercial property sectors. many of the parties that have a Genesys’ build-out of its portfolio Richard Ellis, the study will make Crucially, we want to map out ac- vested interest in maintaining for customer service software, practical recommendations on tions to ensure that development and strengthening the economy having inaugurated its Applica- how the public and private sec- gets back on track as soon as of the south east. There is a very tions Software Group in January. tors can lend momentum to a possible. This study comes at a real possibility that the downturn “Genesys expects the use of recovery. critical time and is not just a one- in the property market is more service delivery software to be Industry experts will put way process but a discussion to than just a short-term cyclical a driver of growth for our core forward recommendations for develop new ideas and provide shock. It may well have signifi- products, and a key technol- action that will be debated with practical solutions for meeting cant structural effects that will ogy that expands our footprint regional and national stakehold- the challenges.” cause profound change in the beyond the contact centre,” said ers at a SEEDA conference, to be “The current challenging cli- medium and longer terms and Nicolas De Kouchkovsky, presi- held in conjunction with CBRE, in mate requires fresh approaches, this study is aimed at addressing dent of Genesys. London on March 25. actions and responses from those structural changes. Conseros has pioneered soft- The project will explore four both the development industry “How will the downturn and ware of a key business applica- key themes over the short term and the public sector, needing recovery impact on the commer- tion that enables enterprises to (12 to 18 months), medium term new skills and behaviours on the cial and residential markets in optimise resources and manage (two to three years) and longer part of both. We need a better different parts of the south east? and distribute high volumes of term (five to 10 years). understanding of the ways in What will the future capacity and work items virtually anywhere It will examine what the which the public and private composition of the house-build- within the enterprise. The property market and its key sectors can work to deliver ing sector look like and what solution gives business users stakeholders will look like; new quality schemes and support does this mean for attitudes, re- visibility and control of the tasks, financial and delivery models; recovery across the region. It lationships and ways of working priorities and people who are what action should be taken by should also deliver lessons and between the public and private responsible for service delivery. the public sector, now and in the messages of wider significance sectors? These are some of the Conseros’ application is future; and what this means for for the recovery in the national key questions we are exploring already in use by several joint delivery skills in the region. development market.” as part of the research.” customers.
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk finance 33
M&A–they’restill business lifecycle ontheagenda Assessingthe Businesses in the region are working their way through the current recession and are looking servicesof to do deals, writes The Business Magazine’s professional Richard Willsher
This was among the views or to refinance. This came as advisers expressed at the presentation of no surprise to those attend- a report produced by business ing the event and indeed the In times of cutbacks, Rodney Style advisers Grant Thornton entitled, survey found that over 80% of many owner-managed “Securing finance: financing and respondents expected to find it refinancing in today’s economic difficult or very difficult to secure businesses find themselves having to review climate.” The research was car- financing for their business. What their professional advisers and the services ried out by Mergermarket, which is more, 20% of respondents sought the opinions of 150 CEOs expected to refinance in the next that they offer and CFOs, originally in Septem- 12 months and it is the view of ber last year and they reverted to some in the financial sector that Rodney Style, partner, HW • Perhaps, most importantly, the respondents in late October there may not be an easing of Chartered Accountants, looks at what is your relationship with to stress test their findings. available credit until the end of some of the key prerequisites for your accountant? Are you sat- Mid-market UK corporates 2010. But as Grant Thornton’s choosing an accountant isfied that your finances are believe that there are “significant corporate finance partner David being handled by someone opportunities to grow through Brooks says in the report: “As It is essential that, as an you trust and get on with? mergers and acquisitions in the financing facilities are renegoti- owner-manager, you keep your At Haines Watts we offer a wide current market and in the com- ated in 2009 there is likely to business in good order and your range of specialist services ing months,” the survey found. be considerable banking and accountant will assist you to without losing the personal at- And even though financing is a shareholder pressure to adopt a do this so that you can focus tention to detail at a local level: significant issue the survey con- significantly more prudent gear- your energies on its growth and Our strapline “Local Matters. cluded that: “What seems to be ing structure.” development. Here are five main National Strength” encompasses emerging... is a perception that areas you should be looking at: the idea that our partners are whilst financing is hard to find in • Has your accountant worked geographically close and can the current market, it need not with owner-managed busi- draw on specialist advice from hold up M&A. This is likely to be ness clients before and across the UK. due to an expectation that there dealt with companies in your Haines Watts has endured economic ups and downs over will be more, smaller, bolt-on sector? deals, at cheaper prices, and that the last eight decades. Our abil- • Do you feel that your ac- these will be financed through a ity to focus on our core values countant is good value for business’ own resources.” and improve our business has money? Your accountant’s Price remains the main deal seen us become the 15th largest advice and assistance should breaker. Sellers of businesses firm of Chartered Accountants in either bring you savings or may have expectations that their the UK, with over 50 offices and help you make more money buyers find hard to swallow. in excess of 1,000 people. by focusing on the important Alternatively buyers may feel that Nationally, our Group is made things that make a difference. they can cut a finer deal. There up of several complemen- Your accountant should also has in general been a downward tary divisions, HW Chartered be on the look out for any op- shift in EBITDA multiples for UK Accountants, HW Corporate portunities and ways in which mid-market businesses and this Finance, HW Financial Services, is a trend that has now been in to assist your business’ HW Asset Finance, HW Forensic train since late 2007, the report growth, improve its overall Accounting, HW Expense Con- profitability and, if possible, noted. Wendy Hart trol, HW Technology and so on, Funding is a significant barrier reduce its tax burden. meaning that we can always find to doing deals. This was certainly Nonetheless, the views ex- • Is your accountant aware the right specialist for you. a preoccupation among business pressed by business people of the day-to-day running Our founder Cyril Haines people who attended the report’s during a lively discussion follow- of your business and your Watts combined sharp thinking presentation at a roundtable ing the report’s presentation at long-term goals? Use your with unrivalled customer service event at Reading’s Forbury Hotel the Forbury was that wallowing accountant as a sounding and we carry that mantra with us on January 27. in doom and gloom was not the board throughout the year today. However, we appreciate it On the one hand Steve Carle way forward. They also felt that as their knowledge will not is more important now than ever of private equity house Lloyds the press could be somewhat to only encompass technical not to become complacent. We Development Capital and Andrew blame for making a bad situa- issues but day-to-day and intend to continue to strengthen Clayton of RBS both endorsed tion seem even worse than it practical ideas. Your account- our service offering and expand the view that good businesses is. Instead they said that they ant should also be ready to our business to become the will always attract funding. And are looking to do deals and to challenge any key strategic premier adviser to the owner- as if to prove this Wendy Hart take advantage of what op- issues and decisions. managed business sector in of Grant Thornton was able to portunities may arise during • Can your accountant grow the UK. confirm that the firm had lately the current difficulties. Wendy with your business? Do they closed two deals which had Hart, Grant Thornton’s corporate offer specialist services? For Details: www.hwca.com entailed raising the necessary fi- finance partner who hosted the example, you may decide to nancing. This was clear evidence event, closed the proceedings sell your business at some moreover that transactions are by stressing the importance of point in the future; your ac- still being concluded. taking good advice early and countant should be able to At the same time pricing is at looking at all of the available prepare you for this and as- likely to be significantly higher financing options. This was the sist you to minimise any tax for those businesses that are best way both to survive and to liabilities payable on the sale. looking to raise new funding do deals going forward.
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 34 technology www.businessmag.co.uk Consolidationisthe keytocuttingcosts Efficiency, effectiveness and value for money are among the most important elements driving today’s IT systems, writes Alison Dewar of The Business Magazine
More than ever, the need to lower or CRM have been introduced, tions, databases and datacentres more efficiently and improves costs at the same time as ensur- the relevant piece of equipment in order to increase asset utilisa- storage, energy consumption ing the highest possible levels of has been added but with very lit- tion, contain costs and make IT and cooling capacity, it provides service is essential. tle thought to overall integration. easier to manage. a much greener IT solution and But if your datacentre is full to The effect of this is a network “Instead of simply adding helps companies reduce their capacity and you need a solution of business unit “silos”, each more into the IT mix, it’s about carbon footprint. fast, you also need to find an effectively operating in isolation, looking at the priorities of a busi- answer which makes sense to making for a very inefficient and ness, controlling IT costs, provid- Details: Karen Pearson the money men who are watch- inflexible system that cannot ing a system which is flexible 07800-853227 ing the pennies and pounds very grow and respond to changing enough to offer increased capac- [email protected] closely. business needs. ity when it is needed and enable www.dtpgroup.co.uk The reality is that for most Consolidation provides a real a quick response to changing companies their current IT infra- solution which delivers both market conditions.” structure is both under-utilised short-term improvements and The pooling and virtualisation and over-provisioned, so trying long-term business benefits. capabilities built in to HP’s Blad- to persuade a finance director to Newbury-based DTP Group, eSystem enable the consolida- invest in yet more equipment is a Hewlett Packard gold partner, tion of existing under-utilised, going to be a tricky business. specialises in HP’s IT consolida- special purpose servers, on to Whether an organisation’s tion solutions. one highly versatile and com- growth has come through ac- Technical services manager, pact system, saving space and quisition or organically, in most Andrew Bourne, said: “Consoli- significantly reducing long-term cases IT systems have grown up dation is all about centralisation operational costs. on a piecemeal basis. As new and streamlining – reducing the And, because it enables business functions such as ERP number of appliances, applica- systems to work together much OnlinesystemwinsonImpact Farnham Castle launches iCastle and takes cultural training online Intercultural training organi- using a readily available headset sation, Farnham Castle, has and interact live with their tutor launched iCulture, a new live, online in a virtual classroom.” web-based training and coach- Apart from allowing businesses ing service. to train geographically dispersed The service allows the compa- employees, other benefits of ny to deliver all of its intercultural iCulture include the elimination of training and assignment briefing the cost of travel, and associ- programmes over the Internet to ated expenses. It also reduces groups or individual users, at the the environmental impact relating same time. to attending on-site training The firm said that the online sessions. There is flexibility in training system “is designed terms of when users can take to meet the needs of today’s the sessions, including weekend business world on a truly global tuition for the benefit of families scale by delivering modular requiring a country briefing before based development training in a move abroad, for example. Richard Pollins, head of real estate at DMH Stallard, accepts the Greatest an informative and challenging “Today we live and work in an Business Impact Award for the company’s online system environment”. era where workload, time, budget “The issues associated with constraints and the increas- DMH Stallard, a Top 100 law firm In delivering the award, the getting individuals and groups ing need to be environmentally based in London and the south judges recognised the firm’s together all in the same place sensitive are having an effect on east, has won the “Greatest Busi- innovative use of technology in at the same time for training the ability to ensure individuals ness Impact” award at the Sorce delivering business value to clients often results in the opportunity receive the training and coaching Conference for the development through improved business proc- for important and valuable skills they need,” said Toms. of online property portfolio man- esses and better communication. development to be missed,” said “However, remote delivery agement tool – DMH Direct. DMH Direct enables clients Jeff Toms, director of marketing through iCulture now provides The Sorce Awards highlight to instruct DMH Stallard online and client services at Farnham a valuable alternative to face- the importance of using intranet and then subsequently track the Castle. to-face delivery and one we and extranet solutions to con- progress of matters over the web. “However, remote delivery anticipate will prove particularly nect organisations, people and The system offers clients and through the unique iCulture popular with organisations around knowledge. their agents a dedicated extranet platform enables multi-location the world.” DMH Stallard was joined in the to help streamline and make more participants to join pre-arranged final by two other finalists, Croy- transparent the legal process of live video training sessions over Details: don College and West London acquiring, developing and manag- an internet connection wherever www.intercultural-training.co.uk/ Mental Health. ing property assets. there is access to a computer, prod_remotedel_video.asp
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk telecoms 35
Enabling Business today, Aligning technology for the future
Karen Pearson - 07800-853227 GurusetsupanappealingSTORMfor RossKempandSavetheChildren Bracknell-based company Content Guru ensured that a television They discovered a community of orphaned children, scratching appeal by Ross Kemp went down a STORM and successfully raised a living on a rubbish dump. The £100,000 for the Save the Children charity young victims were living a life of constant danger and hunger, The STORM was the telecom- a short space of time, allowing as The innovative technology dulled only by solvent abuse. munications platform used to host many people as possible to make developed by Content Guru, which Shocked by what they saw, the a donation line set up by Content donations. specialises in mass participation team returned determined to draw Guru, following a Sky1 documen- A Sky1 statement about the ap- media solutions for the com- attention to the plight of the chil- tary, part of the BAFTA-winning peal says: “The response to Ross munications and entertainment dren, and launched the appeal. series Ross Kemp On Gangs. Kemp Meets the Glue Kids has industries, played a key role in Donations can be made to Save The STORM donation line been nothing short of phenom- helping young victims of Kenya’s the Children projects in Kenya us- provided an entirely automated enal. Sky1 and Save the Children post-election violence. ing the details below. system that made donating quick would like to thank the concerned While filming the series, Ross and easy. The Interactive Voice viewers who have contributed to Kemp and his team visited the Details: Response service allowed a large over £100,000 raised in the fight to scene of some of the worst 0800-814-8148 number of calls to be processed in combat this devastating epidemic.” fighting in Kenya in early 2008. www.savethechildren.org.uk/sky
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 36 business travel/hospitality www.businessmag.co.uk
Business readers are more likely to use Tylney for a cli- Tylneytraditionisatreat ent lunch or dinner during the week and here the hotel won’t disappoint. Typical mains are When restaurants and hotels hire and fire, and don’t know whether pan-fried skate, rack of lamb, they will be here tomorrow as they cope with the recession, there breast of chicken or a vegetar- ian dish – all very traditional, is something wonderfully reassuring about Tylney Hall, writes David but with what chefs like to now refer to as “a modern twist”. For Murray of The Business Magazine instance, the skate arrives with mango, avocado and chilli. The fact that head chef Stephen The wine list is French accent- Hine, and general manager ed, with some worthy names but Rita Mooney, have both been there’s also a decent smattering in place for 25 years means of New World choices including there’s a great sense of conti- one of the world’s finest reds, a nuity about this luxury hotel in 1996 Grange from the Penfolds Hampshire. stable at a cool £246 a bottle. At Hine, in fact, has been head this hotel, you can’t go wrong chef since Tylney opened its with a decent Burgundy although doors as a hotel in 1985. He you may have to pay at least £40 previously worked as a sous a bottle. chef at Oakley Court, Wind- If you plan on using Tylney sor, and received his training Hall for an event or meeting, the at the renowned Dorchester hotel has a special offer until in London, so his pedigree is April 30. Anyone booking a resi- exemplary. dential conference or event can Just 20 minutes drive from claim £50 credit per delegate, to Reading, Tylney Hall is on the be used against hotel services edge of the picturesque village for the duration of the event. This of Rotherwick, and is set in 66 can include treating guests to a acres of parkland that looked at champagne reception or gourmet its best in the recent snowfall. dining, bedroom upgrades, after- Part of the Elite Hotels group, dinner speakers or even accom- Tylney gets a four Red Star rat- modation for their partners. ing from the AA, and two Red Tylney Hall and long-standing head chef Stephen Hine Rosettes for its restaurant, plus right, with a roast carved at This is not a jeans and T-shirt Details: 01256-764881 it’s a member of the Small Lux- www.tylneyhall.co.uk ury Hotels of the World group. the table, and you sit in the place; men are required to wear Despite all that, it contrives to splendid Oak Room with views a jacket or tie. The dress code be far less stuffy than you might across the gardens and out to adds to the sense of occasion imagine, although it is unafraid the giant redwoods. when you take Sunday lunch of tradition. The tables are a decent size, at Tylney. Looking at the other One of the most traditional there’s plenty of crisp linen, and diners, it seems that most are things you can do in a country the waiters know the difference there to celebrate a memorable house hotel is have Sunday between attentiveness and day, whether a birthday or an- Lunch. At Tylney, they do it stalking. niversary.
Newexecutiveheadchef New conferencing facilities at Milton forluxuryhotelCliveden Park Innovation Centre in Abingdon Milton Park has launched a new scale events, seminars and Chris Horridge has been ap- conferencing facility to meet the presentations. The conference pointed by von Essen hotels as increasing demand for meet- room can seat up to 60 people the new executive head chef at ing space in the Abingdon and in a theatre style for smaller leading luxury hotel Cliveden. Didcot region. corporate events. His new role involves oversee- Housed in the purpose-built A large meeting room pro- ing the smooth running and Milton Park Innovation Centre, vides an open and spacious development of the hotel’s three the new facility, managed by environment, seating up to 20 restaurants, including its flagship Oxford Innovation, is designed people in a roundtable format. restaurant Waldo’s. to provide office accommoda- There are two board-standard Horridge said: “I’m thrilled tion and conferencing facilities rooms catering for up to 15 peo- to be joining the Cliveden team for start-up and fast-growing ple, and a small meeting room and hope to bring a unique style organisations. Meeting rooms can seat up to five people for to the hotel, whilst providing of varying size enable the host- briefings, interviews and one- guests with a truly memorable ing of business events for up to to-ones. dining experience. I look forward 100 people. All rooms are fully acces- to the challenges ahead, as well James Dipple, managing sible on ground floor level, and as maintaining and growing director of Milton Park, com- come with a data projector, free Cliveden’s reputation as one of mented: “The flexibility of the Wi-Fi access and dedicated the UK’s best luxury hotels.” Chris Horridge conferencing facilities make free parking. Furniture layout, Most recently Horridge was them an ideal choice not only refreshments and catering can head chef at the Michelin-starred Already a familiar name on for people already at home on be arranged to suit individual Bath Priory and he is a previous TV and radio, he is passionate Milton Park, but also for visiting requirements. winner of Caterer & Hotelkeep- about making sure foods retain or nearby organisations looking er’s Acorn award, given to only their maximum nutritional value for practical and usable ameni- Details: a few individuals under 30 each and has worked closely with ties in this important location.” Debbie Rushton year, for their achievements in scientists and nutritionists to The facility’s main room can 01235-854099 the industry. perfect his cuisine. seat up to 100 people for large- [email protected]
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk serviced offices 37 Movein,moveout–but don’tgetlumbered Office space – the way companies use it, how they pay for it and how they manage the infrastructure within it – should be reviewed regularly regardless of the state of the economy, says James Parris, sales manager at leading Slough office business centre, The Oriel
“How many entrepreneurs do team or perhaps find “swing” for what they use. you know who started up their space before moving into a new This pay-as-you-use business using long-term com- building. Managed Office Suites mentality used to be mercial office space? Hardly are configured to suit each cli- more common in the any. Smart business owners ent’s precise needs. Costs are US but is growing understand the importance of transparent – and reassuringly here now that busi- keeping all overheads as low as predictable. nesses are analysing possible for as long as possible Another way to reduce their cost bases more closely.” “The Oriel is part of a world- – and keeping legal costs to a overheads is rethinking meet- Reputation protection wide network of independent minimum. Flexible office space – ing room use. “Most companies business centres that’s regularly where you can just move in and need a certain amount of space Parris also makes a good point audited and is defined by its abil- move out – delivers a powerful to conduct meetings – gener- about protecting corporate repu- ity to be ‘discreet’. This means advantage for start-up business- ally around 25% in corporate tations. “Getting the ‘fit’ right is it’s our clients’ businesses – not es,” explains Parris. headquarters – but these can be so important for businesses using ours – that take the limelight.” Aside from its Serviced Office left empty 70% of the time,” says flexible space, especially bigger packages for smaller businesses Parris. “Yet they are still paying companies with established Details: and entrepreneurs (which include rent on this relatively redundant brand values. They don’t want 01753-205100 day offices and hot-desking), The space, let alone the cost to heat to feel their reputation is being www.the-oriel.co.uk Oriel on Slough’s Bath Road also and maintain it. In dedicated affected by the property provides what it calls Managed office business centres like The owner’s brand. Equally why Office Suites. These are ideal for Oriel, businesses can have virtu- should they sacrifice quality bigger companies needing to up- ally instant access to a range or finish because they don’t size or downsize, establish a new of meeting rooms and only pay own the whole building? Comfortableworkingenvironmentsforgreaterproductivity The office environment and service and then we selected workplace has been scrutinised the best to offer to our custom- a great deal in recent years and ers. We now offer a full range of has now become a major topic products to suit all working areas for all businesses. Long gone are within the office environment, the days where the office was helping to achieve best work- “just a place to work”. ing practices with a choice in The average employee spends product design. What’s more we the majority of their day in the aim to do this at a price to suit office so it’s important they feel the budget. comfortable as their motiva- “You can be confident that tion has a big part to play in our professional approach and increasing productivity. Modern attention to detail will ensure all companies now realise and projects are completed on time understand their employees’ and within budget.” need for a workplace that allows Quality and communication comfort and flexibility in order to starts at the initial project consul- hit optimum creativity, passion, tation and continues through flair and work output. all stages to completion and With the workplace environ- aftercare. Frasers believes it is ment being so key to success important for customers to have in business, Frasers Office trust and confidence in the peo- Interiors, part of the Frasers Of- ple they work with, and support fice Supplies Group, has become this by putting those customers more involved in office refurbish- firmly at the forefront of every- ment since 2008. thing they do. By working together with es- With this streamlined service fully supplying furniture to many The Frasers philosophy is tablished local partners, Frasers in place along with free consulta- customers throughout the years straightforward: Office furniture Office Interiors can look at issues tions, free delivery and even free we identified it as a product area should be simple and easy to such as current space utilisation, installations, Frasers Office Inte- in which we could offer a better buy. Help, support and advice working practices, expansion riors saw its furniture sales more service. So, during 2007 we are always available. plans and office fit-outs. Building than double in 2008 compared looked closely at how we could alterations, partitioning, heat- with 2007. become a more effective partner Details: ing, air-conditioning, decoration, Nick Clark, sales and market- to our customers. Nick Clark lighting, flooring and window ing director at Frasers Office “We assessed furniture sup- 0118-9509222 blinds are all part of this profes- Supplies Group, explained: “Al- pliers for their quality, delivery, nick.clark@frasersoffice.co.uk sional service. though we have been success- price, design and planning www.frasersoffice.co.uk
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 38 property www.businessmag.co.uk Marketofopportunity The main commercial property sectors: industrial, retail and offices, are obviously not performing well at the current time. Here are a few statistics to confirm this, says Haslams’ Neil Seager, while warning that those of a nervous disposition should miss out this first section
• The most recent RICS Once in a lifetime capitalise on the current Commercial Market Survey We might be witnessing a market conditions it will revealed: property market that will never only be a matter of time - Occupier demand declining be seen again. This means there before prices and rents start to rise. - Available floor space for is real value to be had out there. occupation increased at Investors have the opportunity to its fastest pace since the buy at double digit yields which introduction of the question Hotel operators has to compare favourably to in 1999 1-2% interest from the bank. Oc- and developers are - Demand is falling and avail- cupiers are able to drive a hard ability increasing, sending now able to look at bargain with rents reducing and rental expectations even incentives increasing. property at realistic lower - The sharpest pick up and workable rates in available space was Investors have the Neil Seager reported in the retail sector, opportunity to buy Alternative uses which also witnessed the There is an opportu- most dramatic fall off in at double digit yields nity for those occupiers that the prices residential and com- enquiries during the final traditionally have not stood a mercial developers were willing quarter of 2008. which has to compare chance when competing against to pay. Now, similar to the hotel favourably to 1-2% the main property sectors. Hotel market, healthcare has a fighting • Specifically in the Thames Val- operators and developers are chance. ley, Savills’ research reports: interest from the bank now able to look at property Even in the current market - Office development is un- at realistic and workable rates. there remains opportunity for likely to start until 2012 Of course, in order for the inves- Leisure occupiers are now being some. - Rents are expected to drop tors and occupiers to make the taken more seriously by land- Haslams is currently advising during 2009. most of this market they need lords and are able to negotiate investors on purchasing com- to be in a position of strength. change of use. There remains mercial property and develop- • At the time of writing, the In- Investors with cash are waiting a good demand for healthcare ment land. We are also advising vestment Property Data bank for the right moment to pounce, property such as nursing homes, a major leisure and healthcare figures show that UK property and if you look closely enough, doctors surgeries and hospitals. operator on its expansion values plunged by 14.4% in there are also occupiers doing The Government is targeting a plans. the last quarter of 2008. relatively well; Asda, JD Sports, more modern private and public Abbey National, IG Group, Sky, to healthcare sector. Securing a Details: OK that’s enough of that... I name but a few. site for such a use in the past, Neil Seager believe however that there are With finite supply, once inves- particularly in the south east, has 0118-9211515 some positives. tors and occupiers begin to been extremely difficult given [email protected]
miles distant. Thatcham train sta- OmegaHouseoffersbestofbothworlds tion is conveniently situated at the other end of Pipers Way. Omega House is an attractive office building which could provide your This is a rare opportunity for a company to own its own business the ‘best of both worlds’ with its high levels of parking and premises at a time when interest rates are now at the lowest level close proximity to Thatcham train station. Getting to work has never in history. Across the board, been easier, writes Roger Reid landlords’ aspirations have had to align with the reality of the Haslams is marketing Omega current market conditions. The House, Thatcham, on a freehold combination of low prices and in- basis. The property is a high terest rates, coupled with lack of quality, modern, single-storey new development and available office building with an excellent freeholds mean that commercial parking provision of 48 spaces, property represents a prudent representing an impressive ratio medium-term investment at the of 1:208 sq ft. The building cur- current time. rently has D1, Non-Residential Institution consent but Haslams Details: has recently applied for a change Roger Reid of use to B1 (offices). Therefore 0118-9211549 the building is now suitable for [email protected] D1 or B1. The building is positioned on Pipers Way which has excellent access to the A4 which links directly to the nearby A34 (ap- proximately three miles) and M4 motorways which is some nine Omega House: excellent parking and close proximity to Thatcham train station
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk property 39 Professionaladviceandgood serviceproveamoneysaver Retaining the values of ‘old-fashioned By understanding the cus- tomer’s requirements and objec- professionalism’ is helping one organisation tives, Fairweathers was able to stay ahead of the field as the economy structure a deal that resulted in the company receiving incentives tightens worth in excess of £2 million. In a further example, the prac- Fairweathers is one of the lead- “It is also why almost 100% tice also helped a national com- ing chartered surveying practices of our work comes from referrals pany combine its operations and in the south east, with offices in from other professionals, a group achieve significant savings after both London and Reading, and in not given to recommending firms the acquisition of a competitor. the nine years since it began, it lightly.” Fairweathers helped identify has consistently been one of the The practice specialises in a suitable new premises, negoti- most successful firms of its kind wide range of areas, including ated terms for a new lease and assisted with the disposal of in the country. commercial valuations, com- Peter Memmott Senior director, Peter Mem- mercial property management, the old leases, enabling the company to relocate to a better mott, believes this is due in no acquisitions for owner-occupiers, quality, more modern building, their property transactions. This small part to the sought-after rating, rent reviews, lease renew- which is cheaper to maintain, at is certainly a challenging market, skills of his consultancy team als and probate work. a lower rent than the two offices but clearly one in which there are and excellent service. The current market means, previously occupied. considerable opportunities for “Our approach is built on says Memmott, that it’s even “Every individual circum- companies and individuals.” in-depth knowledge, skill, and more important for clients – stance will be different, but these unshakeable ethics,” he said. whether owner-occupiers or examples show that by talking Details: “Before the current ‘credit tenants – to seek professional to the experts, savings can be Peter Memmott crunch’, old-fashioned profes- advice. achieved,” added Memmott. 0118-9698999 sionalism was looked down upon Most recently, the practice “Fairweathers will never be [email protected] by some, but it has enabled us to was able to help one Slough the cheapest firm to employ, www.fwsurveyors.co.uk provide our clients with immense company reappraise its property but people continue to use stability and the sort of advice needs, negotiating terms for it to us year after year because that most often saves them a consolidate most of its opera- they know that we add an very considerable sum. tions onto just one site. unrivalled amount of value to Romansrecognisesits2008achievers Pitmans acts for
Top performers of independent Banner in ground local property services com- pany Romans are off to South rent portfolio sale Africa. Commercial law firm Pitmans The trip is a reward to has acted on behalf of Banner recognise and celebrate the Homes Group in the sale, for an achievements throughout the undisclosed sum, of a ground past 12 months of more than 20 rent portfolio company consist- individuals from the firm’s sales, ing of 18 separate properties. lettings, financial services, Janice Wall, partner in customer service and support Pitmans London corporate departments. department, commented: “We Romans’ annual staff awards were delighted to act in this presentation at the Madejski sale for Banner, a valued client Conference Centre in Read- of Pitmans. Not only was it a ing was attended by over 200 rare property transaction in people from within the property the current market but it also services divisions of the group. further demonstrated our firm’s The event was hosted by Peter ability to put together a team of Knight, the industry expert, multi-disciplinary lawyers who motivational speaker and worked closely together across author. both Pitmans offices to speedily Peter Coles, residential complete the transaction.” division managing director, The sale was completed on commented: “Whilst the last 12 December 9 and involved cor- months have been challenging Romans Annual Award winners, with directors Peter Coles and Dale porate, property and tax lawyers for the property industry, the Norton, looking forward to their prize trip to South Africa spanning Pitmans London and best companies with the best Reading offices. “Our lettings division let over Coles concluded: “As a people providing the best serv- Banner, one of the country’s ice, have and will continue to 2,700 properties. We sold over company we are hugely proud of leading independent house thrive. Despite what the media 100 properties at our auctions our team and their work across builders, has over 30 years expe- may have us believe about a and our chartered surveyors all the divisions. They have a rience in the industry and caters stagnant property market, last carried out over 2,700 property common goal and that is to not for homebuyers with budgets of year Romans’ 14 sales of- surveys, whilst our independent only achieve dynamic results for up to £4 million. It has won many fices sold over 2,000 properties financial advisers at Flower IFA our company but, in doing so, to awards from What House, for its with a combined value of over helped over 1,500 people ar- provide our customers with an innovative design and excellent £0.5 billion. range their mortgage in 2008.” outstanding level of service.” customer service.
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 40 property www.businessmag.co.uk Mandelsonperformsgroundbreaking ceremonyforFluor’snewUKHQ
Peter Mandelson, secretary of financial terms of the transac- ness, enterprise and regulatory “In the UK, we have nearly state, took part in a ground- tion were not disclosed. reform. “The jobs and skills that 1,800 employees working for breaking ceremony at Segro’s IQ However, Fluor said that it this sustains will help strengthen clients from around the globe Farnborough, to mark the com- illustrates the firm’s ongoing and Britain’s capacity as a world helping them meet the needs of mencement of construction for long-term commitment to invest leader in engineering. The sector their customers in diverse end Fluor’s new UK headquarters. in the region. is vital to the UK’s future suc- markets. Farnborough is the Fluor’s pre-let at IQ Farn- “This will be a world-class cess, and we welcome Fluor’s ideal place for Fluor to execute borough is reported to be the centre of excellence in Farn- investment. I am gladdened that our work on behalf of these largest real estate deal outside borough,” said Mandelson, the a well-regarded global business clients.” of London since 2001, though secretary of state for busi- such as Fluor is placing the UK The new UK headquarters will at the heart of its operations.” cover 210,000 sq ft and consist Ian Coull, chief executive of a state-of-the art, four-build- officer of Segro said: “Segro is ing complex. One of these will very much looking forward to be acquired by Fluor with three welcoming Fluor to IQ Farnbor- other adjoining buildings being ough and constructing its new taken on long-term leases. UK headquarters for them. Dur- The first phase of construc- ing construction of the Nicholas tion is expected to be com- Hare scheme, 350 jobs will be pleted in early Q1 2010, with the generated, along with a further remaining buildings complete 1,500 ancillary roles at the site. during the course of Q1 and Q2 This marks an exciting start to 2010. the next phase of development IQ Farnborough is a Segro- at IQ Farnborough.” owned development located Ian Thomas, managing direc- approximately 35 minutes south- tor of Fluor, added: “Today is a west of London and adjacent to great day for Fluor and for our the Farnborough airport. UK employees. For more than The construction marks 50 years, Fluor has been active another important stage in the in many key UK markets such as advancement of the site, with energy and chemicals; power; a De Vere Hotel, scheduled to renewable energy; manufactur- open this month and Segro cur- ing and life sciences; nuclear; rently developing a master plan From left: Ian Thomas (Fluor UK managing director), Peter Mandelson and transportation and telecommu- for the next phase of develop- Ian Coull (SEGRO chief executive) nications. ment. Abingdon’slargestletting Manufacturer relocates to Suttons Manufacturer Ray Hudson is re- package that allows our com- locating from Henley-on-Thames pany time to evolve and expand and taking up a 10-year lease on into one unit, rather than several Unit 43 at Suttons Business Park units as we had previously. Good in Reading. access to the M4 and 24-hour Commercial property consul- security were other factors in tancies Lambert Smith Hampton the decision-making process for and Haslams, acting on behalf of choosing Suttons Business Park.” landlord Standard Life Invest- RHL provides low energy ments, have arranged RHL’s lease yet powerful fans for domestic of the 4,590 sq ft industrial space. and commercial use, as well as RHL is relocating from manufacturing controls, ventila- Henley following a fire at the tion panels, grilles, ducting and company’s previous premises. bespoke ventilation systems. Rosemary Hudson, director at Office and warehouse units are The Quadrant at Abingdon RHL, explained: “Standard Life available on the park from 3,000 Universal Consolidated Opportuni- becoming a formidable hub for Investments offered a competitive to 20,000 sq ft. ties has leased Abingdon’s largest science and tech enterprises in office letting this year to Tessella, the area. Tessella is a major inter- the scientific software solutions national firm whose presence will Property management business expands provider. strengthen the Park’s community Aitchison Raffety has expanded ing surveying, valuations, rating Tessella has taken 10,000 sq ft considerably and we’re delighted of commercial office accommoda- to have them.” its property management divi- appeals and commercial and tion at The Quadrant, Abingdon The Quadrant is situated at sion by setting up additional residential agency,” said direc- Science Park and will move its UK the entrance to Abingdon Sci- property management teams in tor Miles Awdry. group headquarters from Vineyard ence Park and comprises a wide its Milton Keynes and London “In the current economic Chambers in Abingdon. Carter range of business units within a offices to link with its existing climate it is encouraging to be Jonas has handled the lease on landscaped setting, in walking High Wycombe operation. able to provide a cost-effective behalf of UCO and is now market- distance of the town centre and “In using the three offices we service to clients and one which ing Tessella’s former premises. leisure facilities. can offer clients a more respon- enables our own company to Stephen Wilkes, managing There is still some availability sive service and the benefits develop,” he added. director of UCO, predicted that on the Park, and UCO is planning associated with having local Aitchison Raffety manages Tessella’s decision will attract a further 30,000 sq ft of business property managers. Our clients properties for investor and pri- more businesses to The Quad- accommodation on an adjoining are also able to benefit from our vate clients throughout England rant: “Abingdon Science Park is site. other services including build- and Wales.
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009
42 property www.businessmag.co.uk FRAs–alegalobligation Andrew Marsden, a director of Head Projects Building Control, explains why companies need a Fire Risk Assessment (FRA) and advises on how they should be commissioned
What is an FRA? ployers are solely responsible for replaced by the Regulatory Reform An FRA is the assessment of fire fire safety within their workplaces (Fire Safety) Order. safety provisions in a building or and the identified responsible per- son within the company therefore What happens if I do not have an workplace, and the management of FRA? fire safety. It involves a full evalu- takes full corporate liability. The ation of the premises in terms of employer must conduct a fire risk Without a current assessment, the fire safety hazards and provides a assessment regardless of the size Fire Service may serve a notice to of the risk. alter the building or restrict its use. clear and concise report on how to Andrew Marsden minimise fire risks. It includes a re- Failure to comply with the notice What do those responsible for fire could lead to prosecution and a view of the provision and position- of the building regulations and safety need to understand? fine. In extreme circumstances, ing of fire extinguishers, fire safety associated legislations, and a The responsibility is now more than systems and an evaluation of the manslaughter charges could be wealth of experience in education, just protecting people from fire fire safety management systems brought against the responsible health care, commercial and retail and procedures. related harm. It means complying party in the event of a death by fire. developments. He also has special- with all the regulations including Why do you need an FRA? How do I obtain an FRA? ist knowledge in fire safety, fire ensuring the safety of property, the engineering and fire risk assess- The Regulatory Reform (Fire Safety) fire brigade and even passers-by. You need to contact a company ments, and is able to provide FRAs Order 2005, effective October Additionally, the responsible person that can provide you with a quali- across the entire country. 1, 2006, places a legal duty on must ensure all members of staff fied, experienced and knowledge- building owners and occupiers have completed Fire Training and able fire risk assessor. On comple- Details: (the responsible person) to ensure Fire Warden Training as appropri- tion of the assessment, you should Andrew Marsden all buildings (except single family ate. be provided with a report that will 020-7936-9010 dwellings) have in place an FRA. advise how to deal with outstand- [email protected] My company has a fire certificate, is Additionally, if more than five peo- ing issues in an order of priority. ple are employed, the FRA must be this enough? in writing. No, fire certificates no longer meet Head Projects Build- the legislative requirements and ing Control is part of Who is responsible for an FRA? need to be replaced by an up to the Romans Group. All premises must have an FRA date FRA. All existing fire legisla- Marsden has compre- with only a few exceptions. Em- tion has been repealed and was hensive knowledge ‘Excellent’environmentalAdVantage Kitted out and ment agenda. “Green” features custom-made include light-sensitive fluores- Kits-Direct is the latest customer cent lighting, thermally efficient of Slough Trading Estate’s Enter- exterior double glazing and prise Quarter having taken a 585 water saving devices. sq ft (54 sq m) unit at 915 Yeovil The £2.5 million refurbish- Road. ment has delivered a new 24,915 Established in 2001 and sq ft office to Reading town previously based in Datchet, Kits- centre. Other features include Direct specialises in supplying new exterior cladding, high-spec personalized sports and corpo- air-conditioning, new internal rate wear. It has built a solid cus- finishes, raised floors and DDA- tomer base, including local sports compliant toilets/showers. clubs and has steadily grown its Architects Barton Wilmore database of corporate clients. worked on the design of Ad- Michael Stanley, managing Vantage as well as Clearwater director of Kits-Direct, explained: Court. Architect Greg Cunning- “Following our steady growth ham said: “The environmen- we decided to move to Slough tal credentials of both these Trading Estate. With over 400 buildings are hugely impressive, businesses located on the estate, and show that both new-build we believe the new location will assist us in gaining new business and refurbished buildings can and retaining existing customers. achieve excellent environmental “Our intention now, is to focus AdVantage, the newly-refur- Smith Hampton’s Reading office, standards. In both cases we on developing the company web- bished office development on which is marketing the grade A have utilised the most appropri- site with a view to maximizing our Castle Street in Reading, has scheme, commented: “It is rare ate design solutions, incorpo- potential in the sports and corpo- achieved a BREEAM rating of for a such a high environmental rating the latest technology, to rate sector. We believe the new “Excellent” – only the second rating to be awarded; Clearwater reduce the carbon footprint of unit on Yeovil Road will be key in building in the town ever to Court, Thames Water’s head- each building.” helping to grow the business.” receive the accolade. quarters, is believed to be the Watkins Payne Partnership The Enterprise Quarter is “Excellent” is the highest rat- only other building in Reading coordinated the BREEAM proc- designed to provide flexible work ing under the BREEAM (Building with this BREEAM award.” ess and specified the mechani- space and business support to Research Establishment Envi- Property fund and asset man- cal and electrical systems. Scott small and medium-sized compa- ronmental Assessment Meth- agement company Valad put Osborn was the main contractor. nies. It offers space ranging from od/2006) scoring system. Chris environmental credentials high Jones Lang LaSalle acts as joint 500 sq ft – 2,000 sq ft with easy-in Reeve, director with Lambert on the AdVantage refurbish- marketing agent. and easy-out leases.
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk international trade 43
Amsterdam and can be useful also be more suitable partner in locating clients and agents or companies to do business Goeastandsell distributors in Holland. Likewise with. Most UK companies the Belgian Luxembourg Cham- do business in Benelux with ber of Commerce is another distributors, agents and joint Sterling is cheap and the Benelux markets are useful networking organization venture deals. Therefore the close and open for business; so what are you while The Enterprise Europe best recommendation is that… Network assists UK companies UK companies should carry out waiting for? writes Richard Willsher in finding agents, distributors more in-depth research before or suppliers in any of the 40+ choosing which companies to Within the space of the last of support organisations that countries within its reach. partner with.” few months British goods have can assist you with your export So does the Benelux market So wide is the range of UK become more affordable for sales into Benelux and distance welcome trade with UK com- produced goods and indeed UK our Eurozone neighbours. But for a brief market visit is no panies? David Bax replies: “A services that are sold in these where to start? While there are obstacle.” resounding yes to this one; three markets that the key is 16 countries to choose from, He lists UKTI as a first port of providing the goods are of high to try and identify where yours Belgium, Luxembourg and call in researching the market quality competitively priced and might fit in. At times when the UK the Netherlands are on our and finding out what incentives delivered on time… Dutch com- is already in the grip of recession doorstep and have been strong might be available to assist panies often approach UK com- and the rest of Europe is follow- business partners of the UK for trade with Benelux. But he also panies with interesting products ing hard on our heels, there is a long time. highlights the Export Market or services offering strong mutual advantage to be seized. Belgium is the UK’s sixth Research Scheme, service USP’s, in particular those they There is a natural fit for UK com- largest export market and the provided by the British Cham- have heard of or have carried panies needing to sell products Netherlands is the fifth. Lux- bers of Commerce that helps out market research to locate. and those in Benelux countries embourg may be small but its UK companies develop an UK companies should naturally needing to buy cheaper, so there economy is heavily dependent entry strategy for new over- respond to the interested Ben- is every good reason to give it on international trade based seas markets. The Netherlands elux company. a go in the markets from which mainly around banking, insur- British Chamber of Commerce “However they should also we are only separated by a short ance, telecommunications and has offices in both London and bear in mind that there may stretch of the North Sea. the steel industry. “My advice for any UK com- pany considering exporting for Benelux – the basics the first time,” says David Bax, International Trade Adviser, UK Population GDP UK exports UK imports Trade & Investment (UKTI), “is (million) (billion) (£ – billion) (£ – billion) to consider Benelux coun- Belgium 10.4 $399 (£282) 11.8 15 tries as a stage one project. Luxembourg 0.48 $41 (£29) 0.27 0.7 Other European markets, where language considerations and Netherlands 16.6 $687 (£487) 15.0 23.0 regulatory conditions are more Total 26.97 $1,127 (£798) 27.07 38.7 difficult, can be tackled at a later stage. There is a plethora Source: UK trade statistics / CIA World Factbook SeminarhighlightstheRussianmarket Will you be able A seminar organised by UK Trade The case for trading with the of new businesses, and by grow- to take the heat? & Investment South East last other high-growth markets that ing consumerism in Moscow It’s commonly accepted that 2009 month aimed to show that any make up the BRICs (Brazil, Rus- – shopping malls are springing will confront many companies misgivings about trading with sia, India, China) is already well up across the capital – and in the in the south east with business- Russia were often the result of made, particularly, for India and regions. threatening crises. Surrey crisis outdated perceptions and that China, but the case for Russia Tackling the Russian market communications expert Stuart this huge market presented op- is also compelling. It is now the does present challenges – mar- Hyslop believes many board-level portunities across the board. 10th-largest economy in the ket access issues, bureaucracy, managers will not cope well. Doing Business in Russia, world – GDP having grown by and the time and patience it Hyslop, who is the managing at the Holiday Inn, Gatwick, over two-thirds in seven years takes to develop the long-term director of Esher-based Surrey featured advice from experts – with a quickly growing middle relationships necessary to do House Corporate Communica- including Stephen Dalziel, execu- class. business there. But these obsta- tions, and a contributing editor tive director of the Russo-British By 2030, Russia is likely to be cles are often exaggerated, and to a new business advisory book Chamber of Commerce, and the largest market – and the larg- they are offset by high profit mar- on crisis communication, trains Mark McCrory, head of commer- est economy – on the European gins and the professionalism of and conducts real-time exercises cial section at UKTI Moscow; as landmass, presenting long-term the hard-working, well-educated with senior people in multinational well as up-to-date contributions trading possibilities. For south Russian business class. companies worldwide. from companies, highlighting the east companies, relevant sectors In the current economic He says: “As we move into what key business and cultural chal- currently include: advanced en- downturn, Russia is not a market everyone acknowledges is going lenges of trading in Russia. gineering; financial services; ICT; that British companies can afford to be a tough and challenging year, Avis Europe, headquartered power/energy; sports & leisure; to ignore. those sitting in the hot seats can at Bracknell, is in the process infrastructure; retail products; As Lev Denker, Russia special- expect things to warm up consider- of entering the Russian market. and healthcare. ist and International Trade Ad- ably, whether it be financial, supply Ian Roberts, regional director – Russia is generally welcoming viser with UKTI South East says: chain or staffing or reputational Scandinavia and Central/Eastern to British business and expertise. “The Guildford seminar was a issues that test their skills. Either Europe, talked about the issues The UK is the largest source of great chance for companies way, their actions, or inaction, will they were facing and the factors foreign direct investment into interested in doing business in come under close scrutiny. other businesses targeting this Russia; and UK exports were up Russia to hear expert advice “It can take years for a com- market needed to take into ac- by 37% in 2007/8. But there is on the opportunities there for pany’s share price to recover count. scope for greater activity, par- UK companies and unbiased fully after a crisis, especially if it’s By contrast, Mott MacDon- ticularly among SMEs, as it is not opinions on the current political, believed it was handled badly. My ald’s Simon Harrison spoke from just the UK majors, like Shell and business and cultural environ- advice would be to get some crisis the point of view of a company BP, doing well there. ment.” management training ... and soon.” that has been successfully trad- In fact, rather than oil and gas, Delegates were also be able ing in Russia for a number of Russian growth is now driven by to sign up to a market visit to Details: www.surreyhouseuk.com years. entrepreneurs setting up a wave Russia later this year. www.koganpage.com
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 44 international trade www.businessmag.co.uk UKTIbusinessbreakfasts providerecipeforpresent survivalandfutureprosperity Business confidence has sustained a number of huge body blows in recent months. Uncertain how long the economic downturn will last, or how deep it will be, companies are understandably cautious. Do they base their plans on simply getting through, or should they take what appears the riskier decision to look further ahead and plan for growth?
Yet these are not necessarily As well as the opportunity • and UKTI will concen- scheme to test markets in Nor- mutually exclusive propositions. to tap into the knowledge and trate on tips you can use way, Sweden, Ireland and the International trade is a positive experience of industry experts, to take advantage of ex- Netherlands, and now exports option that can help companies the briefings will give compa- panding markets around consistently to those countries, not just weather the downturn nies the chance to network the world and spread as well as to Belgium, and but position themselves to reap with like-minded businesses, your financial risk. occasionally to Hungary. They greater rewards when recovery potential customers and suppli- Oxfordshire company Natural have also just started doing begins – to survive and thrive. ers. Delegates will also receive Balance Foods is one SME in business in France. But precisely how do compa- a free Top Tips booklet, full of the region that has always seen “There is nothing more valu- nies go about making themselves essential guidance and intel- itself as an international opera- able than having a broad-based leaner, more efficient, better able ligence. tion. It views exports as a cru- export portfolio,” says Combs. to withstand the pressures of the There are numerous expert cial vehicle for developing its “It provides stability – which downturn , and at the same time support organisations that business, spreading risk, and is particularly valuable in the look for new business abroad, companies can turn to in as an investment in the future. current difficult times. Some without weakening their ability to tough economic times, but The company was founded businesses may be thinking, bounce back and take advantage the workshop roadshow gives by brothers Greg and Jamie short-sightedly, that exporting of the opportunities that will be businesses across the region Combs in 2005. They could is riskier and more trouble than there when economic growth the chance to access all this hardly have dreamt that, relying solely on the domestic returns? expertise at the same time, in a just three years later, British market – and it does require Through a series of free Sur- location convenient to them. athletes would be taking their effort – but you are planting vive & Thrive Business Breakfast The roadshow will cover a healthy snacks to the Olympics seeds for the future.” Briefings in the south east during wide area, visiting Maidstone in Beijing; or that they would Asked to give a top tip of March, UK Trade & Investment (on March 24), Southampton win a Grand Prix for product in- his own for winning business (UKTI), plans to provide some of (March 25), Oxford (March 26), novation at the prestigious SIAL during a downturn, Combs said: the answers and help companies Reading (March 30) and Gat- 2008 food and drink exhibition “The downturn has caused us meet the challenges ahead. wick (March 31). in Paris. Both of these events as a management team to more With key partners HSBC, Busi- Each of the contributing or- generated valuable PR, added thoughtfully identify the key ness Link, MAS South East (a ganisations will lead a session new distribution and further actions needed to achieve our manufacturing advisory service at the seminars, considering reaffirmed their commitment goals, and to put aside many of funded by the Department for key themes and strategies for towards the export market. the more secondary activities Business), and Finance South managing the downturn: Natural Balance Foods and expenses. This exercise East, UKTI will present a pack- • HSBC will talk about makes two brands of healthy has really brought our team age of practical advice focusing securing funding and snacks – “Nakd” and “Trek”, together, made us leaner and on the central issue of finance business development; the latter a slow-release energy actually made us a bit more and incorporating 30 top tips • Finance South East will bar, and neither containing any optimistic about the future”. for winning business in difficult give advice on how to added chemicals or sugar. Chris Burchell, executive “The products have to be manager of UKTI South East’s times. source investment; good, taste good, and do International Trade Team, Themes to be considered in- • Business Link will of- good,” explains co-founder adds: “Natural Balance Foods clude: sourcing finance; business fer general business Greg Combs. “We ensure that is an excellent example of an assistance; managing financial advice; everything we sell promotes at SME that, rather than reining risk through exporting and cost • MAS South East, will least one charitable cause.” in its export activity during the control; and how to access up- look at the specific “One of the key successes downturn, is judiciously looking to-date information suitable for challenges facing manu- of the products is that they are to increase it, identifying key your industry sector. facturing businesses; universally accepted and liked markets for future growth. At our all over Europe,” adds Combs. series of Survive & Thrive Busi- “This fact alone has really ness Breakfasts, we aim to show helped us in our mission to that with careful assessment internationalise.” and consideration, there are Export sales represent a rela- practical steps that companies tively small proportion of overall like Natural Balance Foods can turnover (18%), but – in the cur- take to reduce costs and make rent economic climate – Combs themselves more efficient during believes that, if anything, the the downturn, and take advan- company is now more aggres- tage of the short and medium- sive in its international strategy, term opportunites that expand- particularly in terms of pricing, ing markets currently offer. assisted by the decline in the To book onto the Survive & value of sterling. Thrive Business Breakfasts, see Natural Balance Foods prod- details below: ucts are already sold in six Eu- ropean countries. The company Details: 01453-872731 used support available through Keystone Conference and Events UKTI’s Passport to Export www.keystone-group.co.uk/ukti/southeast
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 www.businessmag.co.uk people 45
Stephen Hurrell has joined Buckinghamshire New Univer- Wil Honner, James Stares and Grant Thornton has transferred Wokingham-based HP Archi- sity’s vice chancellor and chief Caroline Turnbull (above) are Jonathan Griffin from its east tects as director of architecture. executive Professor Ruth the latest editions to Pricewa- Midlands office to lead its private Having run Hurrell Architec- Farwell has been elected chair terhouseCoopers, joining its client services team in Oxford. ture from Alresford, Hamp- of the higher education body business recovery services Griffin said: “It is a privilege to shire, for the past three years GuildHE. practice. be asked to head up this client – previously he was a partner/ GuildHE is an inclusive body Honner and Turnball will be team, which is part of a long-es- director in a Southampton representing universities, uni- based in the Thames Valley of- tablished and successful office. practice – Hurrell has almost 30 versity colleges and specialist fice and Stares will be based in I look forward to helping existing years’ experience in oversee- institutions. Farwell is currently Southampton. Each of the new and new clients in Oxfordshire to ing architectural design, client one of two GuildHE vice-chairs. joiners has extensive experi- achieve their financial goals.” relationship, liaison and project She was unanimously elected ence in advising stakeholders of Janet Crookes, manag- coordination. in January and will take up her troubled businesses. ing partner at Oxford, added: Hurrell’s experience spans appointment in August, serving David Bennett, PwC head of “Jonathan’s expertise in advis- from small refurbishments to until November 2011. business recovery services in ing private clients will further new-build offices and major Farwell succeeds Prof David the Thames Valley and south strengthen the 55-strong Oxford commercial and residential Baker, principal of University coast said: “Businesses across tax team. Like our other tax projects. College Plymouth, who said: the region currently face a partners he is used to dealing He has undertaken project “She will be an excellent chair very challenging time and the with entrepreneurs and their coordination of several new- at a time when our contribution services that we provide can businesses and will interact build garden centres, averaging to UK higher education will be help stakeholders to navigate seamlessly with our audit and around £5m per project. of such crucial importance.” through these challenges.” corporate finance practices.”
Doyle Clayton has appointed Berkshire-based office fit-out Andy Simpson has been ap- Last month marked a change for two new partners, Tina and refurbishment company pointed head of region, Thames B P Collins as David Stanning Wisener (above) and Adri- Oaktree Interiors has appoint- Valley, at Barclays Commercial took over as senior partner from enne Brown, to its expanding ed Carl Marsh as its new Bank, where he has overall Ian Johnson, who has led the Reading office. Vanessa Pot- managing director. accountability for the sales and firm for the past 10 years. ter has also been promoted The internal promotion for service coverage teams in both Stanning, who until recently to associate. Marsh, formerly contracts the SME and corporate space, headed up the corporate and The firm’s commitment to director, becomes effective and is responsible for c£50 commercial team, has more the Thames Valley also contin- from April 2 and comes after million of income, over 2,500 than 30 years’ experience and ues to grow, with a move on more than 10 years’ service, customers and c85 staff. excellent relationships both with during which the company the cards to larger premises in Simpson has held several clients and with the business has achieved year-on-year central Reading. senior positions at Barclays community in the Thames Valley. growth. and has an outstanding record Paying tribute to his pred- Marsh commented: “I The Oxford office of Manches am truly honoured to be of building and developing ecessor, he said: “Ian’s contribu- solicitors has appointed Sarah recognised with this promo- sales teams across a number tion during his long and extraor- Moreton as an associate to join tion, and although we face of different businesses, includ- dinarily hard-working tenure as its property litigation team. a year which will undoubt- ing the retail and commer- senior partner has earned the Moreton will act for both edly be tough, we believe cial banking sectors. These respect and appreciation of all of landlords and tenants in relation that the team in place is well previous roles have seen him us and we thank him for this. to disputes involving business positioned to capitalize on lead on national-basis client “I look forward to B P Col- and residential leases, business the reputation that we have acquisition strategies, sales lins making the best use of the lease renewals and termina- gained throughout a very culture programs and strategic opportunities presented by the tions. competitive industry.” alliances. current economic climate.”
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2009 46 diary www.businessmag.co.uk BarclayscoachingsessionwithChelseaFC Last month, Barclays, title sponsor of the Barclays Premier League, organised an official HOW TO REACH US coaching session with Chelsea Football Club for Barclays Com- ManagingEditor&Publisher mercial Bank clients Harlington DavidMurray School, Shooting Stars Hospice [email protected] and Lanesborough School. Tel:0118-9745330 Eleven students from Harling- Fax:0118-9744110 ton School, six students from Web:www.businessmag.co.uk Lanesborough School and 11 patients from Shooting Stars ADVERTISING Hospice all enjoyed a fantastic Advertising:0118-9745308 day at Stamford Bridge, the [email protected] home of Chelsea Football Club, Paulo Ferreira and Deco answering questions at the event SalesDirector where they met their Chelsea TanyaLiddiard:0118-9745308 heroes Deco and Paulo Ferreira. spare time. The group posed for Lanesborough School students [email protected] The guests asked the players photos, collected the players’ had a coaching session by the BusinessDevelopmentManager questions about being football- autographs and were treated to club coaches and Shooting ers, playing for Chelsea and KellyBaker:0118-9745587 watching the first team train. At Stars Hospice guests toured the [email protected] what they like to do in their the end of the day Harlington and ground and club museum. MARKETING To have your business event included in this monthly diary, email details to: [email protected] Marketing&DesignAssistant AmandaBrown:0118-9745586 18 “ProjectsForum–Keepingthe 26 “MarketingSkillsforManufactur- [email protected] March ers”,MASSouthEastseminar, DealsFlowing”,ManchesLLP EDITORIAL event,Oxford. Slough-WindsorCopthorneHotel. 4 “Employers’AnnualReturns”,HM Details:01865-813657. 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Chamberevent.Details: event,PentaHotel.Details: Allmajorcredit/debitcardstaken www.thamesvalleychamber.co.uk Details:01753-870500. www.thamesvalleychamber.co.uk DISTRIBUTION 13 “Employers’AnnualReturns”,HM 25 “BecomingSelf-employed”,HM 3 BusinessLeaders’Forum,Chamber Revenue&Customsworkshop, Revenue&Customsworkshop, event,Henley. ThamesValley Details:01753-870500. Slough.Details:0845-603-2691. Reading. Circulation:15,000 3 BracknellBusinessBreakfast, 17 Opennetworkingevening,Chamber Details:0845-603-2691. Readership:45,000 event,Thame.Details: 25 “InFocusEmploymentLaw”,BP Chamberevent.Details: Subscriptions:1year£45 www.thamesvalleychamber.co.uk Collinsseminarre:legislation www.thamesvalleychamber.co.uk 7 OxfordshireBusinessBreakfast, DistributeddirectbyRoyalMailtobusiness 17 WokinghamBusinessLunch,Cham- update,GerrardsCross. directorsandprofessionals,andalsoavail- berevent,CantleyHouseHotel. Details:01753-279006. Oxford.Details: ableinselectedhotelsandbusinesscentres. 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