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BOOK YOUR PLACES
GO FOR GLORY
WORLD FAMOUS
Lord Mayor’s dinner will be the charity event of the year – page 3
Celebrate your success at our Business Awards – pages 8&9
Bristol’s tech industry has global renown, says report – p5
bristolpost.co.uk
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FEB
2015
PLANNING AHEAD
MAKING A GOOD EXIT How to end on a high note by preparing your business for the end game – p6&7
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www.bristolpost.co.uk/business
Wednesday, February 11, 2015
Office development
● The topping out ceremony for new office block 66 Queen Square
Pictures: Jon Kent
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Landmark for 66 Queen Square
● Mayor George Ferguson, Mike Putnam (CEO Skansa UK) and Phil Cotton (KPMG)
THE building of a new office development has reached a high point – the highest point in the construction process. Skanska held a reception to mark the topping out at 66 Queen Square, one of the first speculative office developments in Bristol since the recession. The city’s mayor and Mike Putnam, Skanska UK President and CEO, tightened the last bolts in the steel frame of what will be Skanska’s first commercial office development in the UK in recent years. The event brought together many of Skanska’s clients, partners and employees, including representatives from KPMG, which has taken a 15-year lease on 85 per cent of the 61,000sqft (5,667m²) building. Skanska and KPMG also used the
event to highlight their partner status with Bristol 2015 for the city’s year as European Green Capital. Mike said: “We’re very proud that our 66 Queen Square development is helping to restore a beautiful, historic part of Bristol. The award-winning building will also provide modern, energy-saving measures to increase sustainability and cut carbon, helping Bristol to become an even greener city.” Mayor George Ferguson added: “This development is an excellent example of what can be achieved when the city and a conscientious business work collaboratively. Bristol will have a great new office space, which makes a positive contribution to the local environment.” Phil Cotton, Bristol office senior partner at KPMG, said: “We want to
Tech
Travel
Firms warned of cyber attack threat
Expansion plan Ryanair aiming to be city airport’s biggest carrier
● SMALL businesses run the risk of cyber attacks if they continue to run one of the world’s most popular computer operating systems after 14 July this year. The warning comes from data centre operator Next Generation Data (NGD, which states that Microsoft plans to stop supporting its Windows 2003 and Small Business Server software on that date. That means there will be no more software security updates. Steve Davis, NGD’s channel sales director, said: “Based on past experiences those who don’t take action now will be highly exposed and targeted by cyber criminals – it’s not a case of if you get targeted, it is a case of when. “If your organisation operates under regulations concerning security and privacy of data then you could also risk penalties for non-compliance.” Steve added it when upgrading software it was a good time to consider where data is stored. “You may well decide the office premises are no longer suitable for hosting today’s sophisticated servers,” he said. “A dedicated co-location data centre will minimise the risk of unplanned downtime and disruption.”
reduce the impact we have on the environment as a business, and our property portfolio plays a leading role in this. The sustainable features at Queen Square will help us to reduce our energy consumption and CO2 emissions, and provide a fantastic environment for our staff in the heart of the city. We are delighted to take one step closer to moving into this iconic building.” The building incorporates sustainable features for long-term energy efficiency, including photovoltaic panels, LED lighting and water-saving fittings to meet the BREEAM Excellent standard and an EPC A rating. Alder King and JLL are letting agents for the development with 9,000 square feet still available in three units.
● Steve Haslewood, Chris Hayes and Ben Wielgus
Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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OW-cost airline Ryanair is looking to cast off its budget image as it reveals ambitions to become the biggest carrier flying out of Bristol. The firm’s marketing director Kenny Jacobs told Business that the city’s airport was an important base and one it hoped to grow. “The only problem we have is the number of aircraft,” he said. “We have 300 aircraft on order. Our current fleet is about 200 so having the big number of aircraft coming in will give us the option to deploy more aircraft here in Bristol to serve more leisure routes and more business routes too.” The airline has been flying to and from Bristol for 18 years and has had a base at here for eight, with four planes currently stationed at the airport. It employs around 250 people directly and supports another 1,400 jobs at the airport. As the number of flights and aircraft grow, so too will those figures. “Bristol is a big base for us,” said Kenny. “It’s a very large catchment area with eight million people within
two hours’ drive of Bristol Airport.” The airline has announced its summer schedule with 28 routes in total, adding extra flights to and from Budapest. It will have 97 weekly return flights throughout the season and fly 1.4 million passengers in or out of Bristol over the year. With the addition of a second carry-on bag and allocated seating,
Kenny said Ryanair had taken steps to improve its service and was now targeting the “savvy” business customer. “We will always strive for the lowest fare and keep costs down – we have become the number one airline in Europe by having the lowest fares for our customers,” he said. “But we do want to improve the experience. “We want to be the smart choice for
business travellers who don’t want the usual trappings of business lounges and free peanuts but want to make the savvy choice.” The firm’s customers are still mostly leisure travellers but it does have some popular business routes from Bristol such as those to Dublin, Milan and Warsaw. And it hopes to add more in future years, once those new Boeing 737s land.
www.bristolpost.co.uk/business
Wednesday, February 11, 2015
Lord Mayor of Bristol’s Children Appeal
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Environment ● Jamie Breese, director of Business Showcase South West, Lady Mayoress Sarah Watson, Lord Mayor Alastair Watson, chairman of The Lord Mayor of Bristol’s Children Appeal Bruce Simmonds and Bristol Post editor Mike Norton at the Marriott Royal Pic: Dan Regan
Web help to go green ● BUSINESSES are being encouraged to go green as one of the key planks of the Bristol 2015 programme was launched yesterday. Chairman Andrew Garrad said: “We want to ensure that every business in the region has the chance to benefit from the awareness created by the European Green Capital award. We want to celebrate the success of our greenest companies, but also encourage many more to seize this opportunity to become greener, save money and find new customers.” ● The Go Green tool can be found at www.gogreenbusiness.co.uk.
Charity gala dinner Don’t miss the big event of the year Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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ICKETS are now on sale for what will be one of the not-to-be-missed business events of 2015 – The Lord Mayor’s Charity Gala Dinner. The dinner, which is being supported by the Bristol Post, takes place on Thursday, April 30, at the Bristol Marriott Royal Hotel in aid of The Lord Mayor of Bristol’s Children Appeal. It is being targeted at the South West’s business community and the city’s movers and shakers. The event includes a drinks reception and three-course dinner, with a money-can’t-buy and high-value auction, plus raffle prizes, and world-class live entertainment. The event is one of the many activities taking place throughout the year to raise enough money for 1,650 disadvantaged children. Each child receives a £20 voucher for food and a £20 voucher for clothing and a gift at Christmas. Volunteers work with the city’s social workers to ensure children who are most in need receive the vouchers. Celebrity and VIP guests will be announced closer to the night. The Lord Mayor of Bristol Alastair Watson said: “The dinner is going to be a great evening. It offers an excellent opportunity to entertain clients and to network in the knowledge you are supporting a local charity to help the city’s most disadvantaged children.” Jamie Breese, director of Business Show-
case South West and volunteer on the charity’s events committee, is approaching businesses to secure sponsorship, table sales and donations for the auction. Jamie, who stars in the TV series Auction Kings, said: “We want this to be one of the not-to-be-missed events of the year, if not the event of the year. “There is already excitement in business circles about the dinner. The business community is getting behind the event and I have already had considerable interest in sponsorship packages, and offers of high-value or money-can’t-buy prizes.” He added: “People care about the city where they work and live. They want to help support local charities such as The Lord Mayor of Bristol’s Children Appeal.” Chairman of the appeal Bruce Simmonds said: “Business people have supported the charity, and its work, since it was founded almost a century ago. “We are grateful to everyone who has given and to all who support this event, by volunteering, through sponsorship, auction and raffle donations and ticket purchases. “They are all making a real difference to children in need at Christmas.” To secure your tickets at the early bird price of £55 each, or £515 for a table of 10, please go to galadinner2015.eventbrite.co.uk. Companies and organisations interested in sponsorship packages or donating high-value or money-can’t-buy prizes should email info@galadinner2015.com.
Finance
Funding platform eyes global expansion SME funding and seven new funders recently joined. Now the platform is considering moving into overseas territories. Adam said: “Since the launch of the ABF portal we have seen a very strong demand for funding from small businesses of all sizes. Finding funding solutions for around 2,500 businesses in our first year is testament to the speed and simplicity with which business owners can get an indication of the funding options open to them.”
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● A PLATFORM inspired by a Bristol company has helped 2,500 small and medium sized businesses find lenders other than banks. The alternativebusiness funding.co.uk portal came about thanks to pensionledfunding. com chairman Adam Tavener. It offers a one-stop shop for businesses to access to range of potential lenders and has won plaudits from Government. The funders on the portal have now collectively provided around £2.7 billion in
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www.bristolpost.co.uk/business
Wednesday, February 11, 2015
Women in Business
Get on the case ‘Awards helped build business’ Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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FORMER detective believes more businesswomen should be on the case when it comes to awards. Jenny Williams has become a finalist in the Bristol and Bath Women in Business Awards in the Women in the Workplace category. Mum Jenny combined her experience and knowledge of scenes of crime methodology with her experience as a parent to her children, now aged 12 and 13, to devise the event business which launched in June 2010. Aiming to spark an interest in science and give participants the opportunity to experience ‘hands-on’ challenges in crime scene investigation The Detective Project offers fun science-based events based on scene of crime analysis in the form of detective birthday parties, educational workshops and corporate events. Those taking part in events get to dress up as a Scenes of Crime Officer, confront a “crime scene” with skeletons and clues and are encouraged to use real life 21st century investigation techniques and cutting-edge
in association with
forensic science theory and practice to solve the mystery. The business has grown into a national franchise and Jenny believes previous awards success has helped. She’s a former a runner up in the Bristol Post Business Awards start-up category and has several other awards to her name. The Detective Project has seen a year of continuous growth with turnover rising by 50 per cent in the last 12 months, partly, Jenny believes, as a result of the awards success. The business itself has also expanded from its Bristol base with franchise operations run by former police officers opening in North East Surrey in 2013 and South Essex in April 2014. “Sometimes it’s difficult for busi-
● Jenny Williams, who has entered the Women in Business Awards ness owners – especially home-based business owners – to feel comfortable promoting our achievements,” said Jenny. “Talking to people about our successes and milestones doesn’t always come naturally. However, with 2.9 million home-based businesses in the UK contributing £300 billion to the economy, we really should be proud of
what we bring to the table. “Being recognised in awards helps you appreciate how far you have come and offers huge encouragement for the future. It’s also a fantastic reassurance to people who are interested in your services. “It’s made a significant difference to helping us build our business and as we approach our fifth anniversary
in 2015, we hope this will in turn inspire other businesses to stake their claim in regional and national award success.” The business attributes its success to date to its innovative business idea, its ability to work flexibly and keep costs low and the opportunity it offers franchisees to work from home and run their own exciting business.
Sponsor profile
Awards hail inspirational women
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AST year’s inaugural Women in Business Awards were a huge success, highlighting and paying tribute to those helping to make a real difference in the business world. Across the region there are thousands of women excelling in their fields, setting a positive example to their peers and helping to ensure that Bath and Bristol are firmly on the map when it comes to trailblazing businesses. This year the awards will once again profile women across a wide scope of sectors, from businesses large and small, highlighting the roles
Celebrating Bristol’s best and most innovative companies. Celebrate your success
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WOMEN IN BUSINESS AWARDS SPONSORED BY #PostBiz Awards
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● Debby Aplin, managing director of Crest Nicholson Regeneration
of women at all levels of business. The businesses and individuals recognised by this year’s awards will serve as an example to others, helping to promote and maintain the aspirational business culture of the region and inspiring women to succeed at all levels. Debbie Aplin, managing director of Crest Nicholson Regeneration, said, “By supporting these awards we are showing our commitment to recognising the work of women across all industries in the area. “We very much hope that these awards will serve as an inspiration to many to strive for excellence, and to realise that gender need not be a barrier to career aspirations.”
www.bristolpost.co.uk/business
Wednesday, February 11, 2015
Global recognition
Tech cities Thriving digital firms employ 61,000 in Bristol and Bath Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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ORE people work in the digital technology industry in the Bristol area than anywhere else outside London. The figures, revealed in a detailed report called Tech Nation, back up the region’s status as a globally recognised technology cluster. It finds that 61,653 people work in the sector in Bristol and Bath – although it somewhat stretches the definition of the region to include Gloucestershire and Wiltshire. Greater Manchester was next with 56,145 jobs. The report finds Bristol’s strengths are in data management and analytics, software development and education technology. It picks out global leaders based locally including Aardman Animation, IMDB and Hewlett Packard and says the area’s rich heritage in aerospace and engineering has helped the sector to grow. It also highlights the companies at the sharp end of innovation, working in future technology, such as Ultrahaptics, which uses sound waves to create touch controls, and Open Bionics, 3D printing robot hands for amputees. The right environment for business is key and the Engine Shed business hub at Temple Meads and Bristol & Bath Science Park in Emerson’s Green are featured, along with organisations such as inward investment agency Invest Bristol & Bath, Bristol Games Hub, WebStart Bristol, TechSPARK which support growing tech companies. Indeed, 79 per cent of business said being part of such social networks was a key benefit of the cluster. Half cited access to talent in the area as crucial. Bonnie Dean, chief executive of Bristol & Bath Science Park and head of the Tech City Cluster Alliance in Bristol & Bath, welcomed the findings. She said: “Tech Nation shows that digital businesses are driving the economic growth of Bristol & Bath.
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Expansion
Food producer Tulip creates 145 new jobs ● FOOD producer Tulip is looking to recruit 145 people for its Westerleigh production facility after completing a £16 million expansion. The investment at the South Gloucestershire site has upgraded the abattoir to become one of the most advanced in the UK. It will enable Tulip to grow both its home market as well as increase its capacity to export products around the world including the growing Chinese market. The firm has also created a new facility to produce and cure joints for the UK’s retail market. HR director Kirsty Wilkins said: “This is a very exciting time in the development of our Westerleigh operation as we have invested heavily to enable it to become a world-class production facility ready to meet the increasing demand for our range of quality food products, both here at home, and for export all around the world.” The firm is owned by the Danish Crown Group and employs 7,500 people across 16 UK sites.
Recruitment
Vacancies grow as aerospace takes off
● The report highlights global leaders based locally including Aardman Animation, makers of the Wallace and Gromit films; IMDB, founded by Col Needham of Stoke Gifford; and Hewlett Packard
“Our specialisms in network infrastructure and systems design are developing a reputation for digital excellence that is attracting talent and finance to the area. “The combined support of established digital companies, local academic institutions and local government will ensure growth continues in our cluster for years to come.” Nick Davies, founder and CEO, of social network neighbourly, based at the Engine Shed, added: “Working
closely among Bristol & Bath’s community of digital companies has hugely benefited neighbourly.com. “As a company dedicated to community action, we welcomed the opportunity to work with like-minded local digital businesses and to share expertise, ideas and contacts. Bristol & Bath is rightly being recognised for the opportunities it offers local digital entrepreneurs.” Prime Minister David Cameron said: “The digital sector has been at the heart of Britain’s economic
growth. “Tech Nation demonstrates the growth of digital businesses in all of our major cities and consolidates Britain’s position as a world-leading destination for technology. “The combination of government support and a genuinely thriving entrepreneurial spirit has created a UK-wide success story of which we should be hugely proud of as a nation.” The report was compiled by Tech City UK and DueDil.
● THE number of job vacancies is growing fast – driven by investment in the aerospace industry. The January South West Recruitment Index registered a 49 per cent month-on-month increase in job availability, up to 838 from 563 in December. It attributes the surge in demand for professional talent over a period traditionally affect by seasonal hiring blips to a thriving aerospace industry. Sundeep Bakshi, associate director of Venn Group’s Bristol office, said: “The South West has historically been at the centre of the UK’s aerospace industry, with Concorde, Rolls-Royce and Airbus all creating jobs in the region. “Recent reports that South West-based aerospace companies are to receive a share of £100 million funding – from a £2 billion pot committed jointly by industry and the Government – indicate that job creation in this area is only set to continue.”
Aerospace
£39m investment in research provides a huge boost to the national economy and this latest announcement of investment is excellent news for the UK and its aerospace sector, which is the largest in Europe and second largest in the world. “The projects will be led by Airbus and will see our Filton facility further develop expertise, allowing the UK to be play a major role in producing aircraft which embrace the latest technologies. It also follows a similar announcement of major ATI investment made by the Prime Minister in November last year, which included research and manufacturing facilities.” At the same time, the company is leading a £20 million training project
called the Employer Ownership of Skills Pilot, which will see major aerospace companies working together to inspire and train the next generation of engineers. Employers from across the industry will design and develop new apprenticeship programmes aimed at equipping people with the skills and qualities needed to compete in a global market. Six new Master’s degree courses are also planned aimed at providing existing aerospace employees with high-level technical skills allowing them to progress. Airbus HR director and UK general manager Mark Stewart said: “This initiative will see employers leading
Airbus chief operating officer Tom Williams
the development of skills for UK aerospace and it will benefit the multitude of companies and their supply chains working across the sector. “It has been a fantastic team effort by a cross section of companies and
the Regional Trade Associations. Airbus is proud to be leading this major investment between government and business and our continuing support of the Aerospace Growth Partnership.”
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AIRBUS is making a major investment into research and training, backed by the Government. The plane maker announced £39 million for research projects into three areas – electric powered planes, landing gear technology and future wing development. It’s good news for the firm’s Filton site, near Bristol, where nearly 4,000 employees design wings and landing gear. The research projects will be led by Airbus working with the government Department for Business, Innovation and Skills under the umbrella of the Aerospace Technology Institute. Airbus chief operating officer Tom Williams said: “The aerospace sector
“ The aerospace sector provides a huge boost to the national economy
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www.bristolpost.co.uk/business
Wednesday, February 11, 2015
Focus on start-ups | Sponsored by THEME SPONSOR’S NAME HERE.
Focus: Exit strategy
HOW TO PREPARE YOUR BUSINESS S Most business people focus on right now and maybe the 12 months ahead. Some even have a five year plan. But as Rupert Janisch reports, you also need to consider how and when to get out
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EW companies start off with an end game in mind, certainly not if those who are setting up in business are doing so for the first time. Among the South West’s biggest businesses, Renishaw Plc was set up by David McMurtry in a garage and a bedroom in a house in Chepstow. Surely he could not have expected the company to develop as dramatically as it has over the past 42 years. The story of Renishaw shows how, in time, businesses can develop and change beyond all recognition. So too can personal fortunes. And although Sir David is still heavily involved in the company, the natural development of a business, or simply fate, can result in those who
“ If a business is not properly prepared for a sale this could mean that a buyer is only prepared to offer staged payments, which are dependent on the future performance of the business, rather than the full price on completion.
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Grant McCall started it wanting to pass the running of it on to someone else. Serial entrepreneurs may do this several times in a lifetime. For other business owners, it may happen only once. Whatever the circumstances, there are several principles, options and strategies available to company owners looking to exit their businesses. As you might expect, the main considerations for handing over a business to someone else are legal and financial. Those who anticipate the sale of their business and plan ahead will be best prepared to do so, and be likely to find the most lucrative solution. Grant McCall, right, director and commercial solicitor at AMD Solicitors in Whiteladies Road, said: “A seller will need to ensure the business is ready to comply with the disclosure process and attract a potential buyer. “In most cases the owners will need to ensure that the management structure, commercial contracts, employment contracts, accounting history, client lists, strategy for growth, marketing plans and all handbooks, policies and procedures are geared in readiness for a sale. “If a business is not properly pre-
● Grazziella Pinto is looking forward to the future after being bought out of her business, designer fashion resale website Fashion Bloodhound
‘I am leaving the business in an absolutely ideal situation’ ● FASHIONISTA and entrepreneur Grazziella Pinto has been bought out of her business after just four years. She said it wasn’t something that she had in mind when she started designer fashion resale website Fashion Bloodhound in 2011, but is delighted with the outcome. Grazziella began talks with
pared for a sale this could mean that a buyer is only prepared to offer staged payments, which are dependent on the future performance of the business, rather than the full price on completion.” Tax planning is a major issue for company owners looking to sell a business. Stephen Maggs, senior tax manager at the Bristol office of SME accountancy specialists Moore Stephens, said: “Tax is a significant consideration when it comes to exit strategies, and planning for the exit.
market leader Covetique in October and has now sold some of the assets for an undisclosed sum. Resale clients of Fashion Bloodhound will now be handled by Covetique, current listed items will transfer too and the FashionBloodhound.com domain will automatically redirect to Covetique.com.
Given the potential tax liabilities at stake for vendor shareholders or owners, the implications should mean that the tax is considered to be as important as the other commercial considerations associated with an exit. “My practical experience relates to advising shareholder groups at all points during the life-cycle of the business, and at all of these points the future of the business
All future sales will be passed to Covetique’s website via FashionBloodhound.com. “I’m absolutely thrilled and am very proud of how far we’ve come in such a short space of time,” said Grazziella. “I exit the business in an absolutely ideal situation and I’m so excited by the future. “We entered discussions with Covetique in October 2014 and after reviewing many options for my business with Acuity Advisors, the offer was one that was ideal for me and the business.
should be considered. Clearly, this includes thoughts around an exit, and all things that encompass this line of thought such as timing, likely method of exit, and so on. “As with any tax planning, shareholder groups and business owners put themselves in a significantly advantageous position by seeking advice from an experienced tax professional at an early stage. Many
“I couldn’t be more pleased with the outcome.” The sales means the young entrepreneur can look to new ventures, but not straight away. “I am in a very fortunate position that I can take some time off to consider what to do next,” she said. “I’ve been speaking to some very exciting businesses about my future career and can’t wait to get stuck in to working to build success in another business.” First up, though, she’ll be joining the Bristol Fashion Week judging panel next month.
of the tax planning strategies to make the exit as tax efficient as possible need to be implemented a while before the exit is envisaged.” There are several tax considerations for business owners looking to exit, ranging from maximising the availability of reliefs such as Entrepreneurs’ Relief, to checking whether the disposal of a shareholding will be chargeable to capital gains tax or income tax. Tax considerations apply to vendors and purchasers, both before and after sale, so accountants such as
www.bristolpost.co.uk/business
Wednesday, February 11, 2015
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SO YOU CAN ENSURE HAPPY ENDING Trend for young managers to stage buyout Case study: Hayes Parsons ● AS established companies emerge from the recession, a trend is developing for young management teams to move in and take over from an older generation of business owners. One example is city centre insurance broker Hayes Parsons, which has just been through a management buyout led by 33-year-old James Woollam. The business, based in Colston Tower, is 50 years old has an insurance premium turnover of £11 million. The recent deal means that former directors George Hayes and Arnold Greenwood can stand down. Accountancy firm Corrigan Associates, of Lower Park Row, along with John Dalby and Marti Burgess of Gregg Latchams solicitors, completed the deal in January. Edward Corrigan, of Corrigan Associates, said potential buyouts and succession issues are top of the agenda for many private businesses: “In the last five years we have seen very few deals and management buyouts in the area as
“ Tax is a significant consideration when it comes to exit strategies, and planning for the exit. Stephen Maggs
common sale scenario is a cash payment up front followed by an earn out period of several years, over which time the remainder of the sale price is paid in instalments, provided key targets are met. “For those business owners look-
ing to make a clean break and structure a different type of deal, they will need to ensure they are disposable and can demonstrate a sustainable business. This may mean investing in automated processes or empowering managers to take over the running of
the business. While this is not without its risks, it may pay dividends particularly if owners can demonstrate that their salary and other costs will be added back onto the bottom line, once they leave.” Mr McCall said that recent economic difficulties have left business owners struggling to attract full value on a business sale, forcing a re-think their exit strategies by exploring other options, such as management buyouts and employee share schemes. But he said that, for SMEs at least, things were starting to look up: “The early signs in 2015 suggest there is more optimism in the SME market. “With people taking more chances to buy into companies, this opens doors for business owners considering or actively looking to sell.” What is crucial, said Mr McCall, is for business owners to plan ahead, making sure all their ducks are in a row. Doing so will make the business a much more attractive proposition and increase the value of the company being sold. “Some businesses,” he said, “will have a plan to sell as soon as they create the business, for example to sell within a short term period of five years. “In which case, their exit strategy starts from day one and all the procedures, policies and management issues of the business will be mapped out so that a prospective buyer can take over the business operations
straight away. “At the other end of the spectrum would be a business that has developed and grown but has not considered an exit strategy. “In this situation, an exit strategy may be forced through a change in work circumstances or the owners may be looking to retire and they have decided to sell. “With an unplanned exit, a seller may have to agree a reduced price to sell it quickly, sell dependent on future performance, be required to remain within the business for a few years after completion or start working with their accountant and legal advisers to get the business ready for sale. “This means the accounts, commercial contracts, terms and conditions, retainer contracts, employee contracts, policies and handbooks all need to be reviewed, or put into place.” Mr McCall also advised the securing of intellectual property rights, an appreciation of the time necessary to complete a sale, and suggested business owners should give sufficient thought to any commercial leases which may affect the possibility of a business passing seamlessly from one owner to another. In general, then, think ahead, plan ahead and keep your house in good order. You never know what might be around the corner but there’s no harm in thinking about what could be coming.
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Mr Maggs can and will be integral to the process of transferring responsibility for running a company. Aside from the tax planning, there are many things which a company owner, or owners, can do to make the business as attractive for sale as possible. Excessive expenses can negatively distort the value of a business. Profits and revenues should show steady increase. Companies should be well positioned in a growing market, with barriers against competition and with a strong brand identity. The ideal scenario is achieving a strategic premium, which can significantly influence the price buyers are willing to pay. To reach this position, companies need to dominate their geographical territory or market segment, with strong brand recognition, a strong and loyal management structure, and with key customers locked in by contracts or key service delivery. One of the most common challenges facing smaller companies is that their owners are an integral part of the business. David Roper, far right, a partner in the Bristol office of accountancy and investment management group Smith & Williamson, said: “The business owner is often the person who makes all the decisions and has the strongest customer relationships. “Buyers will understandably want the previous owner to remain in the business to ensure continuity and stability, at least in the short term. “For these businesses, the most
● James Woollam led a management buyout at Hayes Parsons, based at Colston Tower, above right
business owners have been concentrating on surviving the recession and securing the future. “We now have a large number of well-established and excellent businesses across the Bristol area that are owned and run by people in their late 50s, 60s and 70s, who now want to relax a little more. “Many of these directors and owners want to plan for retirement, or want to work less hours. “That fact, combined with the increasing use of technology and new ways of doing business utilising the power of the internet and social media means there is a bubble of activity about to happen.”
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www.bristolpost.co.uk/business
Wednesday, February 11, 2015
Bristol Post Business Awards 2015
STEP INTO THE SPOTLIGHT AT THIS
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F YOU need a touch of inspiration as a Bristol business, then look no further than Hargreaves Lansdown. The so-called investment supermarket has gone from a back bedroom in Clifton to a FTSE 100 company with more than 800 employees in 34 years. And crucially, it’s done so in Bristol. So the firm’s offices in Anchor Road on the city’s Harbourside provided the perfect spot to launch this year’s Bristol Post Business Awards, held in association with UWE Bristol, with a rallying call for local companies to take their chance for the spotlight by putting themselves forward. Bristol Post editor Mike Norton said: “The Bristol Post is very proud of the role it plays at the centre of the business community. For example, we launched a business rates campaign to try to get a better deal for local fir ms. “These awards are a huge part of our commitment to the business community. We feature many of the companies who enter because that is what the event is really about – a showcase to celebrate the achievement of local business.” Last year Williams Automobiles won four prizes including the coveted overall Business of the Year award after completely changing its business model from traditional dealership to British sports car specialist. Chairman Richard Williams told the launch event what that had mean to the more than 100 year old family firm. “To win last year after four generations of the business was quite incredible,” he said. “I must admit I had tears in my eyes as I want up to collect the award.” Professor Jane Harrington, pictured, deputy vice chancellor at UWE Bristol, took the opportunity to highlight the institution’s goals to support business. “We aim to produce what I call work-ready graduates,” she said. “They should be ready to enter the workplace and have the knowledge and skills to be valuable to their employer from day one.” Jane highlighted the university’s Team Entrepreneurship course, where students don’t attend lectures but instead “learn by doing” and set up their own businesses as well as the Bristol Robotics Laboratory, which is carrying out research that could change the future of sectors such as healthcare and transport. She said that the university, which has 27,000 students, supported small businesses with 74 per cent of its supplies being SMEs. And Jane added: “We are really proud to be the headline sponsor of the Bristol Post Business Awards.” Check out www.bristolpost.com/ businessawards for all the details.
● Sian Morse, Centreplate UK, Samantha Clark, Anything Goes Lifestyle, Stephanie Clark, Anything Goes Lifestyle, and Lizzie Archer, Gloucestershire County Council
● Richard Williams, also inset, chairman of Williams Automobiles which won four titles at last year’s Bristol Post Business Awards, addresses guests at the launch
● Martino Burgess, Greg Latchams
● Grace Kingsley, makeup and nail artist
● Beth Williams and Haas Jahangir of The Learning Expedition Company
www.bristolpost.co.uk/business
Wednesday, February 11, 2015
9
Advice
YEAR’S AWARDS
● Merilyn Parker Armitage, The S.H.E Factor, Dan Slater, Barclays, and Sally Tullett, Barclays Pictures: Michael Lloyd
‘A better business model will always beat a better product’
A
GOOD business model is more important that a good idea or product if you want your company to be a success. That’s according to one expert in the field, who says too many people have good ideas but fail to find the right business model. Professor Charles Baden-Fuller, pictured, said: “If you have a good product with a bad business model then the company is a failure. But if you have mediocre product and a wonderful business model the company is a success. “The better business model beats the better product every day.” Charles believes every business needs to define its model before it can succeed. “The business model is a mechanism which identifies who are your customers, how you engage with them and how you deliver value to that customer,” he said. “Too many companies are internally focused and don’t think enough about whether what they do really satisfies the customer, whether they have the right customer and whether, at the end of the day, anyone will pay anything for it.” Among Bristol’s digital businesses, Charles believes this is particularly important. “You might have a very good product but it’s not usable for your target audience or they are used to getting it for free that’s no good,” he said. “The business model identifies the fact that the apparent customer may not be the customer who pays. From a business point of view, the one who pays is the real customer. “In a technology-based company, the digital
economy is changing the way the business model works in most SMEs. It’s allowing new ways of working together globally and changing he way that consumers view the value of your products.” He said the computer games industry was a good example. If a company designs a game that will be given away for free but paid for by advertising, it should be designed differently than a game which someone pays to play. “It’s shouldn’t be the same game with adverts,” he said. “It’s a different experience and a different focus. It’s really important to know which is your business model because mixing them up can be a disaster.” Charles will be one of the speakers at an event about creating successful business models hosted by UWE Bristol next month. Organiser Professor Nicholas O’Regan, associate dean for research and innovation at UWE, said: “Recent events such as the collapse of well-known UK High Street names such as Comet and Jessops show the importance of having a business model that is capable of both creating and capturing value.” The Business Models and Structural Choices event, part of the ESRC Research Seminar Series, takes place at the UWE Bristol Frenchay Campus on March 4 from 9-5pm. Book or find out more under “business events” at www.uwe.ac.uk. The event is sponsored by ESRC, BAM and the British Library, with a nominal charge of £25. It is followed that evening by the latest in the Bristol Distinguished Address Series, featuring Timpson chief executive James Timpson.
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Wednesday, February 11, 2015
In pictures Bristol Post’s Bristol Connected
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Business diary Bristol Distinguished Address Series – Peter Mather: BP’s group regional vice president, Europe and head of country, UK, delivers the latest in the address series supported by the Bristol Post. From 6pm tonight at the Glendinning Lecture Theatre, Frenchay Campus, UWE. Financial Planning Clinic: One-to-one advice on financial issues and questions from chartered accountant Tony James at The Hive, Weston-super-Mare on February 12. Free to pre-start businesses and those trading less than a year, £40 including VAT for those trading over a year. Register at www.northsomersetenterprise agency.co.uk.
● Fran Hope, of Design & Co Ltd, Dagmar Smeed of Dagmar Smeed Consultancy and Samantha Pics: Michael Lloyd Barber of Design & Co Ltd
● Rosalind Turner, Networking South West
Netwalking The step to success Rob Stokes Deputy editor rob.stokes@b-nm.co.uk
B
USINESS people ought to get out and walk to solve problems and come up with creative ideas. That was the message from Rosalind Turner to the first Bristol Post Bristol Connected event of 2015. Rosalind set up Netwalking in 2012 and organises walks for individuals and groups.
She said: “We should be putting walking on a business footing. If we don’t pay attention to our health we suffer. We should take walking more seriously against a backdrop of our increasing reliance on technology.” Rosalind said so many people in business tend to lead static lives but if they walk and talk their health would benefit. And she said as people walked they could come up with solutions to business challenges. She encouraged everyone at the Bristol Connected event held at the Bristol Hotel in Prince Street to con-
sider walking more. You can find out more about Netwalking by going to netwalkingsouthwest.co.uk. Earlier the evening attended by more than 75 people heard about a much faster mode of transport from Jules Tipler and Kim Watts of the Bloodound project. The Bloodhound is a supersonic car being built at Avonmouth which aims to set a new world land speed record in South Africa next year. It will involve the jet powered car racing across a stretch of desert at more than 1,000 mph. Jules, communications manager
with Bloodhound, said there had been a lot of interest from companies at the Bristol Connected event. He said: “It’s been fantastic meeting such a diverse range of people. “Everyone has been massively interested in this project. There has been a lot of interest from people wanting to find out more and whether they can support us. “Face-to-face meetings like this are so much better than faceless emails.” For more details about the Bloodhound project go to www.bloodhoundssc.com.
Families in Business Insight: Bristol’s family businesses can experience a taste of the support available from specialist advisers at the first of a new Insight Group pioneered byFamilies in Business. It launches with a free half-day taster session on Thursday February 12 at Close Brothers Asset Management’s offices in Queen Street. Email Jennette@fibcommunity.com. Social Enterprise Advice: Owners or those thinking of starting a social enterprise or community interest company to book a 45-minute appointment with North Somerset’s specialist advisor at The Hive, Weston-super-Mare on February 13. Free for North Somerset residents. Register at www.northsomersetenterprise agency.co.uk. Construction contractors seminar: LHC holds pre-tender seminar for Bristol-based contractors interested in applying to a third workstream of its offsite New Homes framework – construction services. The public sector procurement specialist is looking for suitable contractors to tender for a number of regional opportunities. Feb 19. Register at www.lhc.gov.uk/ events Financial Planning Clinic: One-to-one advice on financial issues and questions from chartered accountant Tony James at The Hive, Weston-super-Mare on February 19. Register at www.northsomersetenterprise agency.co.uk.
● Mike Goodbourn and Patrick Lincoln, both of Solution IP
● Elizabeth Elliott of Paragon Costs and Helen Paull of Metcalfes
South West VR Conference: Organised by Opposable Games, shining spotlight on virtual reality industry, At-Bristol, February 24. www.southwestvr.com. The Lord Mayor’s Charity Dinner: Enjoy a drinks reception followed by a sumptuous three-course dinner, live entertainment and auction, in aid of The Lord Mayor of Bristol’s Children Appeal on April 30 at the Bristol Marriott Royal Hotel. Book tickets through Eventbrite. Email info@galadinner2015.com for sponsorship opportunities.
● Suzan Uzel, of Spirit PR, Tracy Lewis of Holiday Inn and Margaret Coffey of Holiday Inn
● Guests networking at the event at Bristol Hotel
Email your business events to gavin.thompson@b-nm.co.uk. Events are sometimes cancelled without us being notified so please check with organisers before travelling.
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www.bristolpost.co.uk/business
Wednesday, February 11, 2015
The back page
Your digest of the week in business
People ● Bristol-based charity the St Monica Trust has appointed David Williams as its chief executive, Business can reveal. Established in 1925 by Henry and Mary Monica Wills, the Trust provides accommodation, care and support for more than 1,000 older people in Bristol and North Somerset. Taking up his new role in April, David joins from the Accord Group where he was executive director for care and support. David said he was delighted to have been chosen to lead the trust. He said: “Although the health, housing and social care sector has never been more challenging than it is today, I look forward to working with everyone at the trust to continue to position the charity as the provider of choice for older people in the region.” Trust president Trevor Smallwood said: “The board of trustees are pleased to welcome David as the new chief executive. He brings with him a wealth of experience and we look forward to continuing the trust’s pioneering work under his leadership.” David will be taking up the reins from retiring Gerald Lee, who has led the trust for 15 years. ● KPMG has appointed David Pike as head of restructuring in the South West of England and South Wales. David has 15 years’ experience advising under-performing and stressed companies, helping business owners to overcome financial and operational problems. He joined KPMG’s restructuring team in 1999 and was previously based in the firm’s London office before relocating to Bristol. David said: “The UK has been through a prolonged period of unusual economic conditions and many businesses now need to address the legacy this may have left. As we start 2015, leaders must work out how to seize growth opportunities and operate profitably at all turnover levels, even those perhaps lower than originally envisaged. “I am looking forward to rolling up my sleeves and helping companies in the region, alongside their stakeholders, tackle these issues
team in the South West and Wales. His new boss Richard Dawes, managing director financial planning, said: “In light of the raft of pension changes, we believe the need for clients to receive expert financial advice has never been greater in order for them to realise their lifetime goals. “Richard’s skills and experience will be crucial in driving forward our business. His addition to our 40-strong financial planning team is a further step in the growth of our regional footprint.” ● Richard Stones
● Mark Bennett
● David Williams
● David Pike
and find solutions so they can maximise the value in their businesses.”
impressive growth for Ultimate Finance over the last 12 months with loans up by 60 per cent and the client base expanding across all funding types by 36 per cent. Mark said: “The ‘can-do’ attitude of the group provides a great opportunity for new business and I feel energised by the challenge.”
● Ultimate Finance Group, which provides cash flow solutions to SMEs, has welcomed back Mark Bennett to its Bristol head office. Mark returns as a regional director having left the company in January 2010 to join a rival. With almost 20 years’ experience in the industry he specialises in factoring, invoice discounting and export funding. Although working out of the Bristol office he will be responsible for growing the business in South Wales. He has already arranged funding for two businesses totalling £250,000 in his first few weeks. Mark’s move coincides with
● Investment and financial planning firm Tilney Bestinvest has appointed Richard Stones as financial planning director to cover a number of locations across the M4 corridor. Richard has 20 years’ experience in the financial services industry and is a chartered financial planner. He joins from Towry where he advised high-net-worth individuals. Richard will head up the firm’s established financial planning
Places ● The freehold of the B&Q store in Yate town centre has been sold for £6.78 million. Hartnell Taylor Cook acting for Co-operative Estates sold the freehold interest to Helix Property Advisors on behalf of Harmsworth Pooled Property Unit Trust represented by Macarthur Wilson. The sum reflects a net initial yield of 6.75 per cent. The 37,000 sq ft standalone store is let to B&Q on a 35-year lease to expire in August 2021, rented at £484,396 a year. ● A Bristol office built by developer Stoford is a finalist in the British Council for Offices’ (BC) awards. The 62,275 sq ft development, built on behalf of healthcare insurance provider Simplyhealth, is vying for the crown in the corporate workplace category. Winners will be announced at the awards dinner in the city in May. Stoford completed Simplyhealth House, left, in Clifton, last year. It houses 402 staff on what is considered a gateway site in the conservation area on Whiteladies Road. The building had long been left derelict. The ground floor slab and basement car parking were retained and much of the demolition materials recycled. Stoford director David Brown said the BREEAM Excellent scheme represented a statement building; light, airy and with a clear, open plan working environment. “We are delighted to be finalists,” he said. “The development was progressed with great consideration for the surrounding area, but with a clear vision on creating a strikingly attractive workplace with sustainability at its core.”
In numbers Inflation (CPI)
0.5 1.6 1.7 0.5 3.99
Inflation (RPI)
Weekly earnings
Base interest rate
EPB-E01-S3
DELIVERY of a high-speed rail link between London and the South West to drive the economy and balance national growth should be a key agenda item in this election year. A “HS4” route from London could see Bristol, Exeter, Cardiff, Southampton and Bournemouth
linked, forming a network of economies to rival the northern “powerhouse” and the Midlands. Along with colleagues here at LSH, I am calling on the Government to make a commitment to extending the high-speed rail network to our region, or risk seeing it get left behind in the race for investment and jobs. It could open up key areas of Devon, Cornwall and parts of Somerset. The Government is committed to high speed rail networks delivering economic benefits. Through HS2 and HS3, Birmingham and key northern cities will be better connected, increasing business efficiency and regional competitiveness. Our concern is that without HS4 the South West will be disadvantaged – and given the development timescales associated with HS2 and HS3
the effects could be long lasting. I am staggered that they don’t appear to be looking at Bristol, one of the UK’s major cities. Perhaps as we approach the election businesses will be considering each political party’s economic strategies and considering the implications of ignoring the future needs of Bristol and other South West and South Wales cities. No matter what happens with the other high-speed links, it is going to have an impact on Bristol, with other cities becoming much more appealing to occupiers. There is potentially a massive impact on the city. Bristol, Exeter and Cardiff are three strong economies with real potential, while some northern cities associated with HS3 are failing economies. Plymouth is a city in need of major investment, which could be
encouraged by improved links. HS4 would increase our capacity for freight and logistics, connect cities and create jobs. It would also have a positive environmental impact. However, we need to think carefully about what we are trying to achieve. Are we trying to get our region’s cities to link better together or is it the link to London we are trying to improve? If we do that, do we risk becoming just another spoke of the wheel and would it have a detrimental effect, sucking people out of our region and into London? On balance, I believe HS4 would have a major, positive impact on our city and the South West in general. Isn’t it time we got a campaign for high-speed rail on track before competition from other regions threatens to derail our economy?
%
%
Corporation tax % Main rate
21
20
Small profits rate – below £300,000
%
Business current accounts
1.01% State Bank £10,000 deposit of India 0.25% £1 deposit
Business savings accounts State Bank 1.49% of India £10,000 deposit 1.41% £1,000 deposit
National Counties BS
Opinion
Peter Musgrove, director of office agency at Lambert Smith Hampton (LSH) in Bristol, explores whether a high-speed rail link could create a South West ‘powerhouse’ to rival the north and the Midlands
%
Ave mortgage rate %
Source:
We need high-speed rail to rival other regions
%
Petrol prices .01
107 113 117 61
Unleaded
.87 Diesel
.15p Super unleaded
.23p LPG
Source: PetrolPrices.com