Corporate Vision April 2015

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Why Are We Going Back to Commodities? l New Dragons Revealved for Dragon’s Den l Stop Horsing Around With Your Business

Mandarin Oriental

Why You Should Love Your Technology Department and Your Data!

We head to Atlanta where Mandarin Oriental Hotels are Celebrating Spring in Style

Smart Pension Set to Solve Auto Enrolment Headache for Small Firms An entrepreneurial new auto enrolment firm claims it has solved the pension sign up headache for thousands of Britain’s small businesses. We find out more...

Why Are We Going Back into Commodities? We spoke to Jade Fu, Investment Manager at Heartwood Investment Management, about why commodities are again proving an attractive option.

April 2015

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Editor’s Note Welcome to the April edition of Corporate Vision. Kicking off this issue, we find out why the UK is the most desirable market in Europe for business expansion. We take the reins and introduce a Yorkshire-based company that has developed an unusual method of teaching businesses how to make thoroughbreds of their team members. Peering into our crystal ball, we speak to leading healthcare experts who give us their thoughts on the critical next five years in the future of the NHS and we investigate why we’re slowly going back into commodities. We also find out just how much cash homeowners are really storing away. We chat with Kevin Uphill, Chairman of Avondale, about how UK businesses are failing to retain middle management and we find out why an entrepreneurial new auto enrolment firm claims to have solved the pension sign up headache for thousands of Britain’s small businesses. And finally, in our lifestyle section, we head to Atlanta where Mandarin Oriental Hotels are celebrating spring in true style. We hope you enjoy this issue. See you next month!


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Contents 6 News New Dragons Revealed for Dragon’s Den 15 Industry Insight FedEx and TNT Express Agree on Recommended All Cash Public Offer for All TNT Express Shares

21 Strategy Why Are We Going Back into Commodities?

27 Money Homeowners Store an Average of £16,000 in Cash

31 SME Quality Second Tier Management Remains Key Challenge for SMEs

37 Lifestyle Atlanta Celebrates Spring With the Atlanta Bloom Package


News

New Dragons Revealed For Dragons’ Den Three new dragons are set to join the BBC’s long-running business show, Dragons’ Den. Joining Peter Jones and Deborah Meaden on the panel will be Nick Jenkins, Touker Suleyman and Sarah Willingham.

Finally, there is retail magnate Touker Suleyman, who owns fashion brand Hawes & Curtis and womenswear label Ghost.

Jenkins was the founder of greetings card website Moonpig, making £120 million after he sold it to Photobox.com in 2011. He now funds start-up companies in technology and retail.

“It is a privilege to join the panel of Dragons’ Den,” he said.

“I am very excited about joining Dragons’ Den and using my experience to back some great new businesses and help them through the turbulent first years,” he said. Joining Jenkins is Sarah Willingham, who made millions turning the Bombay Bicycle Club takeaways into a nationwide brand. She then founded the website LetsSaveMoney.com, and makes regular TV appearance on shows like ‘This Morning’ as a finance and consumer expert.

“I want to support people with the guts to pursue their dreams and provide the financial backing, opportunities and support that will ease their path to success.” The three will take over the slots left by Piers Linney, Kelly Hoppen and Duncan Bannatyne. Peter Jones is now the only original member of the ‘Dragons’ Den’ team from the show’s first series, back in 2005.

6 Corporate Vision April 2015


News

Appointments Visolaris Announce New Partnership Manchester based Visolaris, one of the UK’s leading renewable energy companies is pleased to announce its partnership with two of the industry’s highest regarded specialists in solar and wind energy. The partnership with two RECC and MCS accredited companies; Lenwood Renewable Energies, specialists in solar energy and Spectrum Energy Systems, specialists in wind energy will establish a solid foundation for growth for Visolaris in 2015 and beyond. With the UK well on its way to meeting its renewable energy targets, Visolaris is now focused on raising awareness amongst business owners of the benefits of renewable energy, by supplying free solar and wind installations to all commercial clients.

UK Most Desirable Market in Europe for Business Expansion World business leaders select UK as the second most desirable country in the world for businesses to expand into. The UK has been selected as Europe’s most desirable country, and second in the world, by companies looking to expand their business overseas, according to the art of connecting global business, an international report published by BT. The report surveys 1150 business decision makers based in 13 regions around the globe, exploring the reasons for international expansion, which markets are desirable and why, the effects of being a ‘digital first’ economy and barriers to expansion. The survey finds that an overwhelming 80 per cent of business decision makers believe that international expansion is highly essential for the success of their organisation. Seventy-five per cent say that growth opportunities are the main reason prompting them to look to expand overseas. The survey also highlights several technology factors that businesses look for when expanding into other countries, with 62 per cent of respondents flagging the quality of IT infrastructure and services, 60 per cent the quality of digital and communications infrastructure and 52 per cent the IT skills of the workforce as being important in decision-making.

Luis Alvarez, chief executive officer, BT Global Services, said: “It’s great to see so many executives around the world aiming for international growth. Those countries rated as highly desirable places to expand into not only have economic potential but the right blend of business culture underpinned by an extensive digital infrastructure, skills and sound regulation. In this environment BT is delighted to play a key part in helping take UK business to the world and in bringing world business back to the UK.” Crispin Simon, chief executive officer of UK Trade and Investment (UKTI), said: “We are making the UK the best place to start and grow businesses and I am pleased that this report reinforces our position as the number one location for inward investment in Europe. The UK has always thrived on openness and we realise that the welcome we extend to those who invest here is critical to securing our country’s long term future.”

April 2015 Corporate Vision 7

In 2014 over 17 percent of the UK’s electricity came from renewable sources, this is an increase of just over 4 percent from the previous year. With the new ESOS legislation requiring all large enterprises to review their energy usage by 5th December 2015, Visolaris is encouraging businesses to consider using roof space and existing land assets for solar and wind installations. With zero cost implication it’s not only an effective energy saving option it also meets the new government requirements. Charles Hesketh, Managing Director of Visolaris, believes the advantages for businesses are clear to see: “As climate change continues to dominate the political agenda and with the new legislations coming into effect this year, free renewable energy installations for companies are both economically and environmentally savvy.”


News

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News

Business Leaders Show Strong Confidence in Sustainable Growth Private sectors are now a critical driver of sustainable development, with emerging economies in the front seat, according to new Global Opportunity Report Business leaders globally have strong confidence in their own ability to turn sustainability challenges such as water scarcity and lock-in to fossil fuels into new business opportunities, particularly in the manufacturing and finance sectors in emerging economies. This is one of the key findings of the Global Opportunity Report by DNV GL, UN Global Compact and Monday Morning Global Institute. The new report is based on a survey and consultations with more than 6,000 public and private sector leaders in over 21 countries. “Businesses across the planet are not shying away from global risks such as climate change, and increasingly recognise the positive benefits of seizing the related opportunities. The report confirms that there has been a turning point, where private sectors are now a critical driver of sustainable development with emerging economies in the front seat,” said Georg Kell, Executive Director of UN Global Compact. In addition to the 6,000 leaders surveyed, 200 experts from eight countries have shared insights and contributed to creating the Global Opportunity Report. The report identifies and ranks 15 sustainability opportunities according to public and private sector interest and potential impact on societies and business. With the new report, the partners aim to demonstrate how global sustainability challenges and risks can be seen as opportunities. The work provides an open innovation platform where stakeholders worldwide can explore and capture sustainability opportunities and solutions across risk domains and regions. Additionally, the report identifies more than 120 readily available solutions. Water Innovation Leading Opportunity Asked about future prospects, business leaders see untapped and profitable opportunities especially in handling and providing solutions to address water scarcity and to promote green consumer choices. Overall, developments in water-efficient agriculture is the opportunity that inspires most confidence among the leaders. 37% find this opportunity to have great benefits for society and consider their country to have great capacity to seize this opportunity.

“I believe one of the most clear signals in the survey is the confidence we see in our ability to address water scarcity. It is a grave problem that affects hundreds of millions of people globally and the competition for water is seen as a major obstacle to health, growth and prosperity. This finding also makes me optimistic that we’ll meet a global development goal to ensure availability and sustainable management of water and sanitation for all,” said Henrik O. Madsen, Group CEO and President of DNV GL, one of the partners of the network and report. Green Consumer Choices Highly Favoured Opportunities related to lock-in to fossil fuels also is assessed positively. The most favored opportunity here is green consumer choices. This includes innovations to change consumer behavior to increased uptake of renewable energy in households or a growing selection of consumer products made with the use of renewables. Private Sector More Optimistic than Public Sector The public sector is expected to play an important role in realising many of the opportunities described in the report, especially those that are regulation-oriented. Nevertheless, public sector respondents were consistently less optimistic than the private sector about how the opportunities can positively affect society and their capacity to pursue these opportunities. “The report findings are encouraging and concerning at the same time,” says Erik Rasmussen, Founder of Monday Morning Global Institute. “The strong interest in pursuing sustainable business opportunities in the private sector is very positive. Yet, the governmental sector seems to be more reluctant and not seeing the same opportunities. This is a pity. Governments can play an important role by issuing regulations that support both sustainability and business ventures. Business and governments must share visions and initiatives.” However, the Global Opportunity Report indicates that this scenario is likely to change. For leaders below 30 years of age, female leaders and leaders in emerging economies in Asia, Sub-Saharan Africa and South America, regulated energy transition and smart water regulation are the top-ranking sustainability opportunities.

April 2015 Corporate Vision 9

“I believe that one of the most interesting findings in the report is how young leaders under 30 years of age, people in emerging economies and also women embrace regulation as a strong tool for sustainable change. It is very likely that the decision makers of tomorrow will be found in these groups, and it gives us hope that we can see a stronger collaboration between the private and the public sector in the future,” said Henrik O. Madsen, Group CEO and President of DNV GL. Manufacturing and Finance Sector Most Confident Emerging economies are especially ready to pursue market opportunities associated with sustainability challenges. The report shows that the manufacturing sector – especially in China – is most confident in their ability to address sustainability barriers and deliver profits and prosperity in return. China First, Europe Last Regionally, China is the most optimistic in the survey with 48 percent showing great confidence in sustainability opportunities, followed by India with 44 percent and South America 37 percent. Europe is the least optimistic with only 23 percent, making it the most cautious region when it comes to belief in development associated with sustainability.

Amount of people who see developments in water-efficient agriculture as an opportunity with great benefits for society...

37%


News

10 Corporate Vision April 2015


News

5 Principles For Deriving Winning Business Insights Martin C. Zwilling enlightens us as to what he believes to be the five principles for deriving winning business insights. Martin is a start-up mentor, executive, blogger, author, tech professional, and angel investor, as well as CEO and Founder of start-up Professionals, Inc.

attachment that links customers to your products, as opposed to competitors, and translates into sustainable growth. A simple, inspirational product and brand message is far more influential than one which highlights product features and functions.

I often hear the popular notion that successful entrepreneurs are built from a single heroic insight or a single innovation. This is just plain wrong. The business world is a symphony of players and elements that only works when everything interconnects harmoniously. Continuous innovation and continuous learning are required for any sustained connection and success.

4. Accelerate sustainable growth. Creating a unique product and a unique brand isn’t enough. It takes repeatable sales processes to create a scalable business. Accelerating this growth requires continuous innovation, improved collaboration, visionary leadership, and an inspired and positive relationships with all your constituents.

I’ve long believed these principles, but I’ve never been able to explain them as well as my friend Faisal Hoque, with Drake Baer, in their recent book “Everything Connects.” Hoque’s great insights on how to transform businesses in this age of creativity, innovation, and sustainability are based on his serial entrepreneur experiences, as well as his study of Eastern philosophies.

5. Create tangible long-term value. Every business transaction has consequences. The positive ones are called value. Short-term consequences are usually quantitative, and long-term ones are more qualitative. The most sustainable way to create long-term value is to continually invest in your capabilities both as individuals and as an organization.

Here is my extrapolation of his many lessons and messages into five essential principles for making the connections in business that can lead to success as a business executive or an entrepreneur:

In business, as in life, success won’t happen without good people relationships. To better build and nurture your people connections, here are some top line principles from the book which I espouse:

1. Learn to work with people and build strong relationships. Nobody succeeds as a “Lone Ranger” in business. Finding people and building the relationships you need requires effort, and is a key component in moving every business forward. Equally important is avoiding people who bring you down, waste your time, or have no interest.

• Be honest. It’s the only way to create and maintain trust and respect.

2. Root out ideas by cultivating curiosity. Curiosity is the best catalyst for business creativity, learning, problem solving, and ideas. Ideas are the beginning of a strategy. The continuous discovering, planning, and implementing of ideas is the only path to sustainable innovation. Nurture the people in your relationships who have curiosity.

• Be direct. Direct communication leads to direction, the path you set as a leader. • Think ahead. You need to surround yourself with forward thinkers, and listen. • Inspire and influence. The best and brightest will be toppled if they can’t inspire others. • Create a community. You need cross-pollination and collaboration from the ecosystem. •

3. Connect with your target audience. Today’s innovative “social economy” requires emotional

Think long term. Leaders must be aware of the present moment while setting their sights on long-term goals. Purpose must be a part of the present and the future.

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For entrepreneurs, the road to success is always a longer one than you anticipate. An old Chinese saying comes to mind that when you’ve made it 90 percent down the path, you’re halfway to your destination. That last 10 percent of making the right connections is the other half of your journey. Are you thoroughly prepared to facilitate your own success, and the success of your company?

If you would like to read more from Martin visit: www.startupprofessionals.com


News

Stop Horsing Around!

12 Corporate Vision April 2015


News

A Yorkshire-based company has developed an unusual method to teach businesses how to make thoroughbreds of their team members... Unbridled Success Retreats, run by Julia Felton of Business HorsePower, combines Talent Dynamics, a business development tool, with hands on coaching from horses. This unique combination helps individuals and teams learn more about themselves, their leadership style, how they communicate with others and the impact they create. She is the only person in the UK to do this. “Horses have a unique ability to mirror and react to an individual’s body language and behaviour. They can sense whether someone expresses confidence, trust, authenticity, openness and positive energy,” Felton explains. “As a herd animal, they long for leadership and will respond to non-verbal body language to decide who to follow. I combine this with the Talent Dynamics assessment tool so that business teams can gain understanding and insight into their natural abilities and so work more productively together.”

This novel approach to people development is in line with the recently released Deloittes Global Human Capital Trends for 2015 report, which states that global organisations must navigate a ‘new world of work’, one that requires ‘bold and innovative thinking’. The report shows that 78% of company leaders cite culture, engagement and leadership as their key challenges for 2015. Felton believes her horse-led approach could create the breakthrough businesses need. “My programme isn’t a team building fun day out on horseback. In fact workshop participants don’t ride the horses at all,” says Felton. “It goes much deeper than a corporate away day. Participants have to lead the horses through a series of challenges. How they do this gives both themselves and their team members deep insight into the way they lead and impact others. I’ve never run a workshop where the attendees are not still talking about the event months afterwards.”

Appointments

Balfour Beatty Appointed to New £800 Million Southern Construction Framework Balfour Beatty has been appointed to the new Southern Construction Framework which will provide it with access to a share of a total of £800 million of construction work in the public sector in the South West. The framework is administered by Devon County Council in the South West and is open to any public body in southern England including universities, schools, health trusts, local authorities, emergency services and museums. It is OJEU compliant, removing the need for individual procurement processes and reducing the costs of bringing projects to completion. It has been designed to provide tangible community benefits such as the engagement of local businesses, graduates, trainees and apprentices. Balfour Beatty is one of ten contractors appointed to Lot 1 for work in the South West and the company’s place on the framework runs for four years from September 2015. Projects awarded through the framework will be valued at between £1m and £50m. Martyn Osborne, Balfour Beatty Managing Director for Wales and the West, said: “Balfour Beatty has a wealth of experience of delivering public projects in the South West and through this appointment we will continue to offer value, innovation and long term benefits for our customers. We are committed to supporting communities through our strong local supply chains and through our offer to young people, working in partnership with local schools and colleges, to provide great career opportunities and apprenticeships in construction.”

April 2015 Corporate Vision 13



Industry Insight 16 Why You Should Love Your Technology Department and Your Data 17 Next 5 Years of Change in the NHS Crucial to Its Survival 18 FedEx and TNT Express Unite


Industry Insight: Why You Should Love Your Technology Department and Your Data

How Next Generation Computing Power Is Redrawing the Relationship Between Technology and Management Why you should love your technology department and your data.

In the age of next generation, in-memory computing all businesses can, and should, be data-driven. We’ve all heard the buzzword ‘Big Data’, but what does this mean? It means that managers no longer have to make decisions in the dark. They can gain insights from their data, on-demand, by working with their technology department to minimise the risk associated with all business decisions. The fact that IT can tap into the data means the relationship between the technology department, which was often thought of as a function on the periphery of the business, and the business leaders themselves, is being redrawn. Technology and management no longer work in silos. They work alongside each other to find vital insights from their deluge of data. These insights have seen online retailers increasing. In a nutshell, faster, smarter data analysis enables management to know who their customers are, what they are doing and how to keep them coming back for more. So why is next generation, in-memory data analysis making such a difference to the business of manage-

ment? The latest business intelligence applications are providing unprecedented levels of speed, scale and simplicity to storing and accessing data at a price most companies can now afford. As a result valuable nuggets of information can be found by management and businesses have never been in a better position to capitalise on the real-time demands of their customer base. Managers can now access and visualise decision-changing data as soon as it is needed and this means that technology is gaining new ground as integral across all areas of the business - from marketing to product development - not just as a function on the periphery, but central to it. Businesses that have managers who are embracing in-memory database technology are seeing unprecedented growth with levels of insight never seen before. Here are a few examples of how data analytics is working in the real world for a number of different companies: Channel 4 Since 2006, C4’s focus on becoming a data-led broadcaster has meant that management has worked closely with technology to implement cutting edge data warehouse and analytics tools to really understand its audiences’ viewing habits on its hugely successful

16 Corporate Vision April 2015

on-demand website, 4OD. Powerful and superfast data analytic capabilities have consequently brought real-time intelligence to C4 that enables it to provide a number of value-add services such as allowing viewers to resume a programme in the right place, across all platforms; or by offering viewers a menu of programmes that are likely to be of interest based on their previous viewing history. Coop -EG coop installed a new data warehouse-based business intelligence solution in 2011 to consolidate receipt data across all its stores and make overall evaluation possible in real-time. As a result of the new system, coop management was able to respond immediately to specific spikes in product demand at particular stores and adjust stock accordingly depending on seasonal fluctuations, bank holidays, weather forecasts, school holidays or events and promotions in neighbouring stores.


Industry Insight: Next 5 Years of Change in the NHS Crucial to Its Survival

Next 5 Years of Change in the NHS Crucial to Its Survival, Say Leading Healthcare Experts in New Report Leading health policy and academic experts share their concerns, aspirations and hopes for the future of the NHS in a new collection of essays published today by The Smith Institute and ACCA (The Association of Chartered Certified Accountants). The report, Healthcare - the next 5 years concludes that change to the NHS is unavoidable, and that political consensus is needed to provide good quality healthcare over the long term. Michelle Mitchell, Chief Executive, MS Society and the report’s editor, said: “The NHS has a lot to celebrate – it has contributed to people surviving conditions that in the previous century would have been fatal, and has contributed to an increasing life expectancy. Yet it now faces its biggest challenge yet.

“In the face of widening health inequalities, an ageing population, an increasing number of people living with more than one long-term condition, and the continuing impact of risk factors such as smoking, alcohol, physical inactivity and poor diet, the NHS must transform. “The most important change will be how the health care system mobilises and recognises the assets, strengths and abilities of individuals not just our needs. This includes enhanced support to self-manage, bringing about truly person centred care, and patient involvement in the design and production of services. Importantly, we need to invest in and accurately measure the things patients value -improved experience of care matters as much to most patients as clinical effectiveness and safety.” “The next 5 years will make or break the health service – the Five Year Forward View provides an important opportunity to transform the NHS for the better. Let’s work together to make sure the NHS has more to celebrate in the future.”

April 2015 Corporate Vision 17

Gillian Fawcett, head of public sector policy at ACCA and one of the essayists, said: “Delivering efficient and effective healthcare systems will continue to be of major public interest around the world over the next five years and beyond. In the future it will also be important for politicians, healthcare system managers and professionals to devise ways of communicating the essential need for change and how this might be implemented. Innovative approaches to healthcare service provision will be required to achieve an outcome that is politically acceptable, sustainable and offers value for money.” Paul Hackett, director of the Smith Institute, said: “The NHS continues to adapt to the pressure its under, not least from an ageing society. But, as this report shows the NHS is at a crossroads. Without a new settlement on ‘prevention first’, efficiency savings and funding some hospitals could face bankruptcy.”


Industry Insight: FedEx and TNT Express Agree on Recommended All Cash Public Offer

FedEx and TNT Express Agree on Recommended All Cash Public Offer for All TNT Express Shares • FedEx and TNT Express employees share a commitment to serving customers and delivering value for shareholders and supporting the communities they live and work in. FedEx Corporation and TNT Express have announced that they have reached a conditional agreement (the Merger Protocol) on a recommended all-cash offer for all issued and outstanding ordinary shares, including shares represented by American Depositary Receipts (the Shares) of TNT Express. Frederick W. Smith, Chairman and CEO of FedEx Corp., said: “We believe that this strategic acquisition will add significant value for FedEx shareowners, team members and customers around the globe. This transaction allows us to quickly broaden our portfolio of international transportation solutions to take advantage of market trends, especially the continuing growth of global e-commerce and positions FedEx for greater long-term profitable growth.” Strategic Rationale • The combined companies would be a strong global competitor in the transportation and logistics industry, drawing on the considerable and complementary strengths of both FedEx and TNT Express. • The combined companies’ customers would enjoy access to a considerably enhanced, integrated global network. This network would benefit from the combined strength of TNT Express strong European road platform and Liege hub and FedEx’s strength in other regions globally, including North America and Asia. TNT Express customers would also benefit from access to the FedEx portfolio of solutions, including global air express, freight forwarding, contract logistics and surface transportation capabilities. • FedEx will strengthen TNT Express with investment capacity, sector expertise and global scope. • Employees will enjoy further growth opportunities with the extended reach and propositions offered by the combined organization.

Transaction Details The proposed transaction envisions the acquisition of the Shares of TNT Express pursuant to a recommended public offer by FedEx. The Offer Price per Share represents an implied equity value for 100% of TNT Express on a fully diluted basis. The Offer Price represents a premium of 33% over the closing price of 2 April 2015 and a premium of 42% over the average volume weighted price per TNT Express Share over the last three calendar months. Unanimously Recommended by TNT Express Executive & Supervisory Boards The Executive Board and the Supervisory Board of TNT Express (the Boards) have frequently discussed the developments of the proposed transaction and the key decisions in connection therewith throughout the process. The Boards have received extensive financial and legal advice and have given careful consideration to the strategic, financial, operational and social aspects of the proposed transaction. After careful consideration, and also taking into account the fact that TNT Express has only recently launched its Outlook strategy for a stand-alone future, the TNT Express believe the Offer to be in the best interest of TNT Express and its stakeholders, including its shareholders, and intend to fully and unanimously support and recommend the Offer for acceptance to TNT Express' shareholders, and vote in favour of the resolutions at the EGM (as described below). Furthermore, Mr. Vollebregt, the only member of the Boards who holds TNT Management and EmployeesThe combination offers a unique opportunity to strengthen the resource base of both companies, thereby offering prospects for employees of the combined companies. FedEx has a long-standing history of developing leaders from within its organization, providing best-in-class training and development opportunities. FedEx will continue to respect existing work councils’, trade unions' and employee rights and benefits (including pension rights).

18 Corporate Vision April 2015

The combined companies will cooperate to avoid any significant redundancies in the global or Dutch work forces. The combined companies will foster a culture of excellence, where qualified employees will be offered attractive training and national and international career progression based on available opportunities. Acquisition of 100% FedEx and TNT Express anticipate that full integration of FedEx and TNT Express will deliver substantial operational, commercial, organisational and financial benefits which could not be fully achieved if TNT Express were to continue as a standalone entity with a minority shareholder base. If FedEx acquires 95% of the Shares, FedEx intends to delist TNT Express from Euronext Amsterdam promptly and intends to initiate the statutory squeeze-out proceedings to obtain 100% of the Shares. If FedEx acquires less than 95% but at least 80% of the Shares, FedEx intend to acquire the entire business of TNT Express at the same price as the Offer Price pursuant to an asset sale, combined with a liquidation of TNT Express, to deliver such consideration to the remaining TNT Express shareholders (the Asset Sale and Liquidation). The Asset Sale and Liquidation is subject to TNT Express Extraordinary General Meeting (EGM) approval. The Boards have agreed to unanimously recommend to the shareholders to vote in favour of the Asset Sale and Liquidation. FedEx may utilize all other available legal measures in order to acquire full ownership of TNT Express' outstanding Shares and/ or its business in accordance with the terms of the Merger Protocol.

FedEx’s willingness to pay the Offer Price is predicated on the acquisition of 100% of TNT Express Shares.

100%


Industry Insight: FedEx and TNT Express Agree on Recommended All Cash Public Offer

April 2015 Corporate Vision 19



Strategy 22 Smart Pension Set to Solve Auto Enrolment Headache

24 Why We Are Slowly Going Back into Commodities?


Strategy: Smart Pension Set to Solve Auto Enrolment Headache for Small Firms

Smart Pension Set to Solve Auto Enrolment Headache for Small Firms An entrepreneurial new auto enrolment firm claims it has solved the pension sign up headache for thousands of Britain’s small businesses.

The Pensions Regulator’s most recent report into SME awareness of the forthcoming changes showed that only 35% of small employers understand auto enrolment and workplace pensions. Smart Pension’s cutting edge platform allows companies to set up their Government mandated workplace pension scheme in minutes, with immediate set up confirmation and all available at no fee to the company. The instant digital application can be made on any device and yet offers similar or higher legal compliance standards than any other scheme in the market. Cofounder and chief executive Andrew Evans said: “We are huge supporters of auto enrolment and the positive change it is bringing to the UK’s working population’s provision for retirement. Auto enrolment means that every employee normally working in the UK gets the opportunity of more income in retirement. With employees getting a free top up of their pension fund from both their employer and the government, the scheme is generous and is going to make a huge difference to the quality of life in retirement for participants.

However, reports have shown that the set up can be time consuming and our research indicates that small companies want to avoid at all cost wasting time on laborious, inefficient and complicated auto enrolment procedures. This could be a huge problem for SMEs, especially with penalties issued for any delay. Smart Pension was designed to take away this headache, and provide a fantastic solution to what could be seen as a big problem for SMEs.” Will Wynne, cofounder and managing director, added: “We have built Smart Pension’s advanced auto enrolment platform from the ground up, avoiding any of the limitations of incumbent platforms. We have leveraged modern technologies to make for a frictionless experience as well as integrated leading UK technology partners into our flow, with the sole purpose of helping UK businesses meet their legal obligations quickly, easily and securely. Our platform was designed to be highly intuitive and quicker than anything else in the market, importing data feeds automatically and cutting out the complicated manual checking and paperwork that hold up old fashioned paper based processes. By 2018, an estimated 1.3 million British based firms with employees will have to comply with new pension legislation or face severe penalties, including fines and even a two year prison sentence.

22 Corporate Vision April 2015

From March 1, firms with fewer than 58 employees will have to start automatically enrolling their employees for a workplace pension while companies that employ 30 staff or fewer will begin to auto enrol in the next wave, from June 1. Smart Pension is a London based start-up. It was founded in 2014 by Andrew Evans, a seasoned financial expert and former head of Lloyds Banking Group’s wealth portfolio, and his co-founder technology entrepreneur Will Wynne, a former banker and CEO of online florist Arena Flowers They have now closed a significant investment (£1.5m) round from an impressive crop of tech entrepreneurs. Andrew added: “There is industry concern that as the volume rises by 20 times in the coming months, the existing providers will bend and break under the strain. But, through leveraging UK tech excellence and partnering with Apex, we are not only capable of supporting the current levels of enrolling businesses, but also of handling the 70,000 company sign ups forecast per month and more in the months to come, all at zero cost to the businesses we are signing up.”


Strategy: Smart Pension Set to Solve Auto Enrolment Headache for Small Firms

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Prior to designing the platform, we carried out research with business leaders and what came through loud and clear was that they must avoid fines at all costs and so wanted a simple, robust online process that could be completed in one sitting and which resulted in compliance achieved, at nil cost (set up or ongoing) to their business, and with a very good underlying financial product for their employees. That is what we have built.

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April 2015 Corporate Vision 23


Strategy: Why Are We Going Back into Commodities?

24 Corporate Vision April 2015


Strategy: Why Are We Going Back into Commodities?

Why Are We Going Back into Commodities? Heartwood Investment Management is a division of Heartwood Wealth Management Ltd (Heartwood) which is authorised and regulated by the Financial Conduct Authority (FCA) in the conduct of investment business, and is a wholly owned subsidiary of Svenska Handelsbanken AB. We spoke to Jade Fu, Investment Manager at the firm, about why commodities are again proving an attractive option.

Across our multi-asset class portfolios, we have not held any direct commodity exposure for more than two years. That turned out to be a good decision, given the huge collapse in the oil price and steep declines in other parts of the commodity complex over the last few months. We continue to believe that the fundamentals remain weak for the commodities asset class, principally due to the supply and demand imbalance. Global demand for commodities has been growing but at a slower pace due to the slowdown in emerging markets. Meanwhile, supply for various commodities has grown faster, helped by the shale gas revolution, favourable weather for crop productions, and higher metals outputs in the US and China. That being said, we are beginning to see tentative signs of stabilisation across a number of sectors, particularly in energy, and we consider that now is the time to gain an entry point into the asset class. First, commodity prices across the complex have moved a long way and are trading at the lower end of their five-year ranges. Second, significant price falls have started to attract more investor interest into the asset class this year. Inflows are totalling almost $5 billion, in sharp contrast with the large outflows reported in each of the last two years. Finally, within a multi-asset class portfolio, investing in the commodities asset class remains a tool for portfo-

April 2015 Corporate Vision 25

lio diversification. Correlations with equities and fixed income have been trending higher in recent years, but since the middle of last year, these correlations are breaking down and provide the potential for a more diverse return stream. Consequently, we have decided to invest in a broad based instrument, the UBS CMCI Composite Commodity ETF. Going from holding no exposure, we have no plans to maintain a full weight in commodities and intend to remain underweight in the asset class. However, we are in a position to phase back into the asset class should the fundamentals become more supportive Heartwood provides wealth management services for private clients, including discretionary investment management, financial planning, tax-efficient wealth structuring, tax advice, retirement planning and pensions advice. In addition, Heartwood Investment Management (HIM) provides investment management services for financial advisers and charities. Heartwood currently has over ÂŁ2.3 billion of assets under management and administration. Nothing in this press release constitutes advice to undertake a transaction and professional advice should be taken before investing. Past performance should not be seen as a reliable indicator of future results. The value of investments may fall as well as rise.


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Money

28 Why Homeowners Store an Average ÂŁ16,000 in Cash


Money: Homeowners Store an Average £16,000 in Cash

Homeowners Store an Average £16,000 in Cash Over 2,000 homeowners surveyed by YouGov are stashing away an average of £16,286, according to research commissioned by specialist buy-to-let peer-to-peer platform Landbay.

Over 2,000 homeowners surveyed by YouGov are stashing away an average of £16,286, according to research commissioned by specialist buy-to-let peerto-peer platform Landbay. Findings show 23% of those surveyed have £25,000 or more in cash savings accounts, with 15% having over £40,000. Elderly savers are keeping higher amounts in these accounts, with 19% of over-55s storing over £40,000 in cash. Landbay estimates that homeowners combined could have as much as £433bn in savings accounts despite their dissatisfaction. Angry majority A clear majority of respondents (57%) are aware of the rate they are currently getting and are unhappy. Less than one in four (23%) are happy with their savings account interest rate. This year, 27% expect to earn 0.5% or less on their savings, and a staggering one in ten (8%) expect to earn nothing. Apathy for the remainder With little to get excited about, other consumers have little knowledge of the rates they earn. More than one in ten (12%) of homeowners surveyed are not aware of the savings account rate they receive, rising to 18% among those under-54. Older generations are more aware of their rates, but as a result have higher levels of resentment with 62% of over-55s unhappy with their savings rate.

Attitudes to risk preventing savers gaining higher rates The lack of willingness to take risks or wait for access to savings has left many to settle for rates they are unhappy with. The research found a majority of cash savers are risk-averse, 53% would not be willing to accept a small level of risk to savings if it meant a higher return. Despite this, a sizeable minority (39%) are open to taking at least a little risk if it means improved returns. When it comes to savings, homeowners in the survey were overly cautious even when faced with the possibility of earning nothing on their savings in 2015. Instant access less of a concern One in three respondents (33%) wanted to have instant access to all their savings, however 42% are willing to wait between one to six months before accessing cash. Almost one in five (17%) would be willing to lock up their money for twelve or more months, a significant proportion aware that their instant access savings accounts do not offer the best deal for interest accumulation. John Goodall, cofounder and CEO of Landbay said: “Although it was good to see the Chancellor acknowledge the plight of savers in the Budget with a boost to tax free savings, the reality is that very few will benefit because of the paltry interest rates on offer from the banks.” “The savings market is now polarised into two groups. On the one hand we have the settlers, content with little to no interest rate return on their savings but willing to settle as it avoids any form of risk. On the other hand, we have the reachers, a growing number of savers who are keen to make their

28 Corporate Vision April 2015

money work harder and take a small level of capital risk for improved returns. Six years of rock-bottom interest rates has created angst in the savings market, and a new wave of savers are considering alternative forms of finance to avoid their money losing value in the bank.” “Finding the balance between ease of access in savings, and putting some cash under slightly more risk to attain higher rates is merely sound financial planning.” “Alternatives to savings accounts are always worth looking into if your money is not working hard enough and only earning measly interest rates. Given how much homeowners are keeping in cash many would benefit from putting just a small amount of their savings into low risk investment products as part of a more balanced approach to their finances.” “By moving just part of your money away from savings accounts, you can make your money earn a far higher rate of return.”

When choosing between risk and security it is not all or nothing.


Money: Homeowners Store an Average ÂŁ16,000 in Cash

April 2015 Corporate Vision 29


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SME 32 Quality Second Tier Management Remains Key Challenge for SMEs

34 Times of Tunbridge Wells Investment Fund


SME: Quality Second Tier Management Remains Key Challenge for SMEs

Quality Second Tier Management Remains Key Challenge for SMEs UK businesses are failing to retain middle management according to Avondale report. 36% of all respondents said they will consider an acquisition in the next 24 months and method to grow their business Avondale, a leading commercial business sales and acquisitions service provider has today launched its inaugural ‘Growth versus Survival Report’ and revealed that 94% of of UK business owners are currently struggling to retain second tier management within their organisation. The report was released following an exclusive roundtable event attended by spokespeople from Avondale, FD Solutions, Holmesdale Building Society, Jellyfish, PHD Equity Partners, Templefield Property and CV Capital. Commissioned by Avondale,, the report examines the current state of UK businesses and looks at whether they are in a state of growth or survival, the most successful routes to growth and the key challenges businesses will face in 2015. Amongst its results it found: Two thirds (67%) of UK businesses surveyed are in a state of growth The research revealed that new products and increased marketing were key routes to growth with 62% of all respondents utilising marketing and a further 48% launching new products

A key challenge for businesses (94%) is the ability to retain quality middle management The research suggests that the larger the company, the more likely they are to acquire with 60% of businesses turning over £10M+ saying they have completed an acquisition in the past 24 months Kevin Uphill, Chairman of Avondale comments: “The last 12 months has proved to be a successful year for UK businesses as the stabilising economy has allowed them to make calculated risks to achieve real growth. We are thrilled to launch the first ever ‘Growth Versus Survival Report’ looking at the current state of the business landscape and allow us to examine the methods these companies use to maximise growth.” He adds: “The report has highlighted that whilst the majority of businesses are growing, retaining middle management remains a common problem for UK companies. This lack of second tier leadership has led to business owners focusing on the day-to-day running of their organisations as opposed to concentrating on the overall strategy and in a sense, could be impeding their own long-term growth.”

32 Corporate Vision April 2015


SME: Quality Second Tier Management Remains Key Challenge for SMEs

April 2015 Corporate Vision 33


SME: Times of Tunbridge Wells Investment Fund

34 Corporate Vision April 2015


SME: Times of Tunbridge Wells Investment Fund

Times of Tunbridge Wells Investment Fund Businesses Invited To Apply To Dragon’s Den-Style Fund

A recent graduate who wants to launch an app to help young people find flat mates, a 55-year-old lady who dreams of opening a training school for dogs, a chef with a vision of opening a chain of fish restaurants along the south coast. What links these apparently unrelated people? They have all applied to the Times of Tunbridge Wells Investment Fund, a £5 million Dragon’s Den-style investment fund, the biggest fund of its kind in the South East. Launched alongside its new weekly newspaper, the Times of Tunbridge Wells, the Dragon’s Den-style fund is designed to help limited companies, from start-ups looking for seed capital to businesses needing cash to expand. The fund has received an enthusiastic reception from the local business community. Jo James, Chief Executive of Invicta Chamber of Commerce, said: “With access to traditional sources of finance still being problematic for many businesses, this initiative is welcomed as it will give the opportunity to further develop local business, creating local prosperity and employment opportunities. This scheme is not just about the finance, it recognises the importance of getting it right advice and support to ensure business growth.” Alison Parmar, Development Manager at the Federation of Small Businesses says: “The Times of Tunbridge Wells Investment Fund is a great opportunity for small businesses and we would encourage them to consider applying. We often hear that a lack of funds holds small businesses back from the next step towards growth such as refurbishing a premises, taking on more staff or launching a new product. This investment fund is a clear example of Larger firms helping smaller companies and encouraging a more entrepreneurial culture; something the FSB supports.”

April 2015 Corporate Vision 35

Greg Clark MP, Minister for Universities, Science and Cities, sees the fund as instrumental in securing the region’s future prosperity. He said: “For our area to continue to be prosperous requires our businesses to be successful – new start-ups to be created and established businesses to grow. An investment fund that provides extra support is to be warmly welcomed and I look forward to seeing the benefits in action.” Would-be entrepreneurs need to send a full business plan in writing, together with a covering letter. Suitable candidates will be invited to pitch their idea to a group of High Net Worth businesspeople. Just as in the hit BBC business show Dragon’s Den, investors can either declare themselves ‘out’ or offer funds in return for an equity stake in the applicant’s business, although the investors reserve the right to use other financial structures.



Lifestyle

38 Mandarin Oriental: Atlanta Celeb


An Inspired Escape

Shangri-La Nanjing Tradition and modernity collide in luxurious fashion in China’s ancient capital

Mandarin Oriental

Atlanta Celebrates Spring With the Atlanta Bloom Package



Lifestyle: Mandarin Oriental, Atlanta Celebrates Spring with the Atlanta Bloom Package

From the city’s famed dogwood trees and azaleas to basking in the beautiful weather, spring is a perfect time to visit Atlanta. To celebrate the season, Mandarin Oriental, Atlanta introduces the Atlanta Bloom package designed to leave guests feeling renewed and refreshed in Southern style.

FANTASTIC FACTS Mandarin Oriental, Atlanta partners with Bill Lowe Gallery to showcase an outstanding collection of contemporary art throughout the hotel. Curated by Bill Lowe, the rotating art exhibition features work from some of the world’s most exciting contemporary artists.

Guests who book the Atlanta Bloom package will receive luxury accommodations, breakfast and two 50-minute Aromatherapy Massages using the award-winning Spa’s signature Bloom oil. The holistic treatment combines the custom-blended essential Bloom oil with the best of eastern and western massage techniques to calm the body and mind. Guests will also receive a signature set of the body and bath Bloom oils.

The Spa features a unique treatment called the Peaches and Cream Journey which melts away muscle tension while restoring the body’s balance. A skin softening apricot kernel exfoliation prepares the skin for a comforting massage using warm cream and peach oil. The treatment ends with a blissful red clay scalp massage.

Housed in an iconic building designed by celebrated American architect Robert A.M. Stern, Mandarin Oriental, Atlanta soars 42 stories above the Atlanta skyline and offers sophisticated, residential elegance in its 127 spacious rooms and suites. The intimate hotel features a 15,000-square foot spa, indoor lap pool, fitness centre, extensive meeting and event space, The Café & Bar for exquisite dining and Taipan, serving specialty cocktails. The sought-after Buckhead location is steps away from the region’s top dining, designer boutiques and cultural attractions. The hotel is 35 minutes from Atlanta Hartsfield-Jackson International Airport and 10 minutes from the DeKalb-Peachtree Airport, which accommodates private aircraft.

The hotel has an English Garden, a rare find in the heart of the city. This enchanting outdoor space is an exquisitely landscaped, picture-perfect venue for al fresco gatherings. Mandarin Oriental, Atlanta’s fan embraces Asian heritage by way of a traditional 19th century Chinese hand-painted fan, while it is reflective of the sophistication and elegance of the hotel. The peach colour is symbolic of Georgia as it is known as the ‘peach state.’

40 Corporate Vision April 2015


April 2015 Corporate Vision 41



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