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CROWD SURFING
THE SOCIAL SEASON
APPY TALK
Students ride wave of support to raise cash for start-up – p3
Four pages of businesspeople out and about – pages 8-11
Come to our Business Awards and try out our app – page 5
Business bristolpost.co.uk
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RURAL ECONOMY
HOW DO YOU LIKE THEM APPLES? How farmers and rural businesses around Bristol are adapting and thriving in a tough climate. See pages 6 & 7
27 June 2014 M Shed, Bristol EPB-E01-S3
Everything you need to know about exporting, all on one day! www.businesswest.co.uk/export-fair
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Journalism
Wednesday, June 11, 2014
Low carbon
Post business editor shortlisted for award ● THE Bristol Post’s business coverage is in the running for a top press award. Assistant editor (business) Gavin Thompson has been shortlisted in the specialist journalist of the year category in the South West Media Awards, sponsored by EDF. The awards are the premier event of their kind for journalism in the region. The nominated journalists cover subjects including crime, education and rural affairs. Of the six finalists, five work for Local World, the owners of the Bristol Post. And the Post is up for a host of other categories including newspaper of the year and website of the year. Winners will be announced at a ceremony at the Bristol Hotel on Thursday, July 3 Sign up here for business news direct to your inbox every day
● Managing director Grant Jefferies with fellow directors and Bray and Slaughter staff outside the firm’s new office in Parson Street, Bedminster
Employment
Firms among largest foreign employers ● TWO Bristol firms were named among the 50 largest foreign employers in the UK in the Sunday Times PA Consulting Inward Investment Track 50. The table ranks overseas-headquartered multinationals by their UK staff number. The firms are Aerospace manufacturer Airbus, which employs 4,000 people in Filton, and contact centre operator Teleperformance, which is based in Stokes Croft and specialises in outsourcing customer service management.
Get in touch Assistant Editor (Business) Gavin Thompson Call 0117 934 3336 Email gavin.thompson @b-nm.co.uk Twitter @gavin_thompson1
Writer Rupert Janisch Email business@ b-nm.co.uk Advertising Robert Rodgerson Call07828 941469 Email robert.rodgerson @b-nm.co.uk
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Advertising Jane Chapman Call 01179 343025 Email jane.chapman @b-nm.co.uk Advertising Shama Abokor, Regional Business Account Executive Call 0117 934 3426 Emailshama.abokor@ b-nm.co.uk
Eco-friendly New office, same site - but with far greener credentials Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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BUILDING contractor has moved into a new eco-friendly office without moving offices. Instead Bedminster-based Bray & Slaughter simply built new premises on the site of its old joinery mill. The firm, which employs around 50 staff, has been in the area for more than 100 years and has been in Parson
Street since 1949, making it a real mainstay of South Bristol. Managing director Grant Jefferies said the new office would coincide with a new branding and logo. He added the low carbon office used the latest sustainable technology but kept most of the structure of the old mill building. Grant said: “This investment will provide a solid platform from which the company can continue to grow and develop, creating employment opportunities and improving productivity and staff working conditions.
“The innovative re use of industrial building stock, sensible and sympathetic design and installation of quality materials have become the hallmark of Bray & Slaughter and it is fantastic that our place of business reflects this ethos. We now have a home befitting our talented staff and hope it will help us to continue to attract the best local graduates and professionals to join us and continue the success we have enjoyed in recent years.” The company was formed in 1900 when Sydney Slaughter joined forces with Percy Bray, who had a small plumbing firm.
This partnership continued until 1927, when Percy died and his son Percy John Bray took over from him. B&S then carried on until 1932, when Sydney Slaughter’s nephew Sydney Richard Slaughter joined the firm. It became a limited company in 1934. The business was originally based at Lydstep Terrace in Bedminster, but the buildings were badly damaged during the war so the firm was forced to move to a temporary site in Holy Cross Church Hall. Then, during the early 1950s, the company moved to its present Parson Street site.
All you need to know in one place
We’re exporting more than ever, let’s keep going! RESEARCH shows that businesses which export have significantly greater growth prospects, more durability and higher profitability than companies who don’t. That’s why Business West is launching its 2020 by 2020 initiative, with the goal of getting 2,020 businesses exporting more by 2020. The campaign will encourage ambitious companies to grow their business through exports. Managing director Phil Smith, said: “Statistics show that exporting businesses are 11 per cent more likely to succeed than those which only serve domestic markets. “The good news is that at Business West we have noticed a significant increase in export activity amongst our customers with April and May being record months for our export documentation department. “We really must get behind our exporters if we are to stand a chance
of achieving the Prime Minister’s target of increasing exports to £1trilion by 2020, and help businesses to seize valuable opportunities. “This is exactly what our #GetExporting campaign has been designed to do.” Business West is inviting businesses to join it and UK Trade & Investment at an Export Fair on June 27 at the M shed. The fair is the first of its kind in the region and will be the place where businesses can get everything they need to know about exporting in one day. Speaker David A. Smith will discuss why the birth of the digital age is transforming how goods and services are bought and sold. David, chief executive of Global Futures and Foresight (GFF), will challenge, inform and entertain on many of the key issues of trading internationally during the digital revolution. After the speech, attendees can ex-
● Brewers are exporting overseas plore a range of support zones, with experts on hand to discuss everything from starting to export, conducting market research, expanding your overseas markets, to how to fund your exporting and how to ac-
cess overseas contracts. The launch follows the release of HMRC figures showing the region’s exports rose from £12.9 billion in the year to March 2013 to £13.6 billion in the year to March 2014, representing an increase of 5.4 percent. The former Commonwealth markets have been popular, with many firms looking to win business in Australia and New Zealand. One industry seeking opportunities Down Under is the drinks trade. The Bristol Beer Factory, Warmley-based Bath Ales and Sandford-based Thatchers’ Cider have all moved in to the Australian market in the past 12 months. Machinery and transport equipment and manufacturing goods continue to be the most exported commodities from the region, and the South West remains one of only three regions with food and live commodities in their top five export goods.
www.bristolpost.co.uk/business
Wednesday, June 11, 2014
Technology
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Available for let
Office where workers won’t take the Mickey ● CHILDREN around the world would love to live in Disneyland and now grown ups in Bristol could find themselves working in the city’s own Disney-style castle. St Vincent’s Works, an office close to Temple Meads station, is available for let and the turreted building bears a striking resemblance to the spiritual home of Mickey and Minnie Mouse. James Preece of Colliers International, which has been appointed to find a new tenant, said it was an “amazing office building”. He said: “It is in a great location with the bonus of exceptional parking. Being right at the heart of the new creative sector what we really need is the Bristol equivalent of The Walt Disney Corporation.”
● Greg Gruzecki, left, and David Graves
● St Vincent’s Works, which looks like a Disney castle
Photo: Sammy Payne
Pair get operation up and running through £52k crowd funding Sammy Payne business@b-nm.co.uk
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WO students have raised more than £52,000 for their business in just 16 days through an online crowd funding campaign. Greg Gruzecki and David Graves launched a campaign to get their business, OmniDynamics, up and running through the crowd funding website Kickstarter. The entrepreneurial pair reached their initial target of £20,000 in just 10 hours. David, who stayed up all night and watched in disbelief as his business surpassed its goal, said: “I think I lost my head for a little bit. I ran around the room being far too loud.” Greg said he had not expected the campaign to be so successful, before adding: “I was overwhelmed by the support and became very excited. So excited, I went, ‘Whoa!’.” The instant success shows how fast business ideas can become a reality for savvy entrepreneurs who spot an opportunity. David said: “We knew our market and hit it with the right product at the right time. We were solving a real problem and satisfying a genuine need.” David and Greg were told to find a placement at a business for the third year of their robotics degree when they came up with the idea of starting their own. David, 22, said: “We were told to go work for someone else. To start our own business wasn’t presented to us as an option, so we had to look for it. “It wasn’t easy, we really had to create our own path.” The business, which caters to people who use 3D printers, needed the £20,000 funding to bring their product, called Strooder, to market. Strooder is a piece of technology that turns plastic pellets into a single piece of solid plastic, called filament, that can be used for 3D printing. David credits studying robotics at UWE for
giving him an “empowered” and “entrepreneurial mindset”. Not only have the robotics students developed a product and launched a business within their placement year, they’ve also hired a team of six people to help launch their campaign and meet demand. When asked about recent figures of unemployment, which showed nearly a fifth of young people were out of work, David said starting your own business was the way forward. David said: “All it takes is an idea. Entrepreneurship is a self-enabling process. “Each step enables you to do more and go further. From earning your own wage to changing the industry landscape.” OmniDynamics is a technology start-up based inside the Bristol Robotics Laboratory. Bristol Robotics Lab innovation manager Jill Burnett said the lab’s business incubator was a “visionary” programme there to grow technology start-ups and support student entrepreneurs. Jill said: “Robotics is an emerging sector with huge potential for the UK, identified by the government as one of the eight great technologies that will drive our economy.” Jill said David and Greg made great robotics students because they have shown they could “walk the talk”. The innovative nature of the Strooder technology is its eco-friendly potential. OmniDynamics hopes to find a way to turn plastics around the home, such as empty milk bottles, into 3D printing material, enabling people with 3D printers to be ecological and cost effective. So far, over 300 people have backed the business, pledging from £1 to £349. The company is yet another technology start-up to join Bristol’s already thriving start-up sector. David and Greg have no plans to slow down the business once they begin the final year of their degree. David said: “This is something we are in for the long haul, we have many ideas to come. Strooder is just the beginning.”
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Innovation
Start Up & Grow with initial loan of £5,000 ● A NEW private initiative has been launched to help entrepreneurs in Bristol launch and accelerate growth in their businesses and to help create jobs and wealth in the region. Bristol Start Up & Grow is offering five innovative local entrepreneurs the chance to receive an initial business loan of up to £5,000, free legal and accountancy services for a year, mentoring and access to high profile business leaders and corporate connections. The package could be worth up to £100,000 per company. The project is being launched and backed by prominent Bristol solicitor Charles Cook, right. Charles is himself an entrepreneur and is experienced in start-ups. He left a big city practice and founded the boutique corporate law firm, Cook & Co, in 2008. The firm now has 17 staff, an enviable client portfolio, a high profile chairman in Colin Sexstone and offices in both Clifton and Portishead. “Bristol is a hotbed for entrepreneurialism,” said Charles. “From the merchant traders to Brunel, Concorde, Wallace and Gromit and Trunkis, Bristol has always produced innovation. We want to offer support to local entrepreneurs with innovative business ideas to help them launch and grow their businesses. “We firmly believe that most people only need a small amount of money to kick start their business idea and can really benefit from having early stage good quality legal and accountancy advice.” Charles’ project is being backed by entrepreneur Rob Law, who is the founder of Bristol-based Trunki. Rob founded Trunki with a loan from the Princes Trust of £5,000. He said: “The entire £5,000 went on initial legal fees. “There is tremendous value in having a quality team of lawyers, accountants and mentors around you when starting and growing a business.” Decisions for support will be made by August 1, 2014, and applications should be submitted to Bristol Start Up & Grow by July 1, 2014. For more details please see www.bristolstartup.com.
Wednesday, June 11, 2014
Travel
Airline to expand 30% after two years’ success Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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SHORT-HAUL carrier which specialises in the business market plans to expand its Bristol-based team by 30 per cent after a successful first two years. Despite the long history of its name, bmi regional has only been an independent carrier for two years after taking the franchise run by British Airways owner IAG and turning it into an independent business. While it had an established brand, it had none of the business infrastructure to support it meaning the first 12 months were something of a roller coaster. But from that unusual start, a successful airline has grown, with Bristol Airport becoming one of its key hubs. Two years ago bmi regional employed no one here but now has 80 staff in Bristol and has now announced plans to expand that. It operates direct flights to key business centres around Europe, as well as having a dedicated aircraft to fly Airbus staff from Bristol to the plane-maker’s Toulouse base. Bmi regional chief executive Cathal O’Connell said: “Last year was one of significant development and investment to establish bmi regional from a subsidiary of a group to a standalone business. “We’ve rebuilt our infrastructure and systems and reshaped our operating network to focus on profitable routes which enables us to continue our growth into 2014.” He said the carrier had built Bristol into a “major new base”. “Bmi regional is building a Bristol success story, bringing investment and employment opportunities to the city and the region,” said Cathal. “Bristol continues to attract business investment from around the world and provides a gateway to the commercially vibrant South West of England. “Our route to Aberdeen provides a vital link for the oil and gas industry; our services to Frankfurt, Hamburg and Munich link Bristol to three German economic powerhouses; and Milan is the commercial hub of north-
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● BRISTOL is the sixth best UK city for attracting foreign direct investment, according to a study by accounts EY. Bristol is unsurprisingly the leading centre in the South West with 12 such big investments made in 2013. Nationally it was behind Manchester, with 15, but ahead of Birmingham, with 11. The South West as a whole saw the number of projects rise from 15 in 2012 to 27 in 2013. Investments made in Bristol included three in construction – Vento Ludens Ltd, Continental Datagraphics and GE Oil & Gas; three in business services, Areva Risk Management Consulting, MDE Consultants and Deloitte LLP; and two in software by Cray and Culina Logistics Ltd. Richard Jones, EY’s senior partner in the region, said: “The South West is performing well against fierce competition for investment between the rest of the UK and wider Europe, and the region continues to prove itself as an attractive destination for foreign investors. “Being one of the few UK regions not to see a decline in projects, the region continues to prove itself as an attractive destination for foreign investors and it is encouraging to see Bristol positioned as the sixth most important UK city for FDI.” The top 10 cities were London (380 projects), Glasgow (24), Belfast (18), Edinburgh (16), Manchester (15), Bristol (12), Birmingham (11), Cambridge (8), Aberdeen (7) and Livinston (6).
Chance to apply for development funds
● Bmi regional chief executive Cathal O’Connell east Italy.” The airline has a code-share agreement with Lufthansa which puts Bristol on the destination map for the longhaul carrier, helping promote the city around the world. It was recently rated most punctual airline by independent website flightontime.info. Shaun Browne, aviation director at Bristol Airport, said the airline was supporting the city’s economic
strengths. He said: “The routes operated by bmi regional from Bristol Airport are vital for many businesses across the South West, with the destinations served having strong links to important sectors in the region such as aerospace, defence, energy and financial services. “We will continue to work with bmi regional to support further growth and enhance connectivity from Bristol.”
From stores to stars, Alan sets up academy to get up to 56 learners on the go. “In the longer run, Bristol’s a big technology city so there could be potential to expand further.” Alan, 38, has a small team including an IT trainer, assessor, and a recruitment specialist who will be building relationships with employers. So far they have up to a dozen interested in signing up. Apprentices can start without an employer on board as part of the course is based in the centre, but Alan says they will be encouraged to be proactive about finding one rather
Bristol among UK best for foreign investment
Healthcare
Training
A FORMER Somerfield manager has opened a new apprenticeship academy in the city to train young people to work in the technology, social media and digital marketing industry. Alan Rowlands is academy manager at the new 3AAA centre in Prince Street, Bristol, where the first cohort of 14 apprentices have started this week, with a second group set to get under way in July. “We are hoping that will be a bigger cohort,” said Alan. “We have two training rooms with a capacity for about 28 people in each so we will look
Investment
● Alan Rowlands and his team inside a classroom
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● BUSINESSES are being urged to apply for funding to develop products and services that help patients get the most from their prescribed treatments. The West of England Academic Health Science Network is working with NHS-funded programme SBRI Healthcare on the national contest. Dr Elizabeth Dymond, deputy director, enterprise and translation at West of England network said: “We are really encouraging organisations to get involved as this is a fully-funded opportunity for businesses to access support to bring their innovative products and services to new markets.” To find out more, visit www.sbrihealthcare.co.uk.
than leave it to the academy. The academy’s work is government-funded and aimed at 16-23 year olds, from those straight out of school to young people who have gone into further education but decided it’s not for them or those out of work. Alan, who went into recruitment after ten years at Somerfield, adds: “Ideally they should have at least English and maths at grade C as they need to be at the right level.” The apprenticeships last 12 months and will be just below a Level 4, which is a Higher National Diploma equivalent. Nationally, 3AAA – which stands for Aspire, Achieve, Advance – was founded in 2008 and works with a number of employers and colleges around the country. Its move into Bristol is focusing on the city’s creative and digital market, one of the fastest growing sectors locally.
www.bristolpost.co.uk/business
Wednesday, June 11, 2014
Technology
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Sponsors
Post business awards... There’s an app for that Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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HE Bristol Post Business Awards will be an interactive event this year after one of our finalists developed a mobile app for guests to use on the night. Mubaloo founder Mark Mason said the firm was excited to be supporting the event, which takes place at Brunel’s Old Station. He said: “The app is centered around what all events this year seem to focus on; the selfie. “We were asked to come up with an app that would make it as easy as possible for attendees to take pictures and submit them for the ‘best selfie on the night’ competition. “The app features different categories where users will be able to view entries and submit their own pictures. “The app will automatically include the relevant social media tags, for added convenience. “Attendees will also be able to view other finalists and see who the sponsors are, through the app.” Mubaloo won the Best Company (up to 100 employees) category at the awards two years ago and is this year a finalist in both Innovator of the Year and Best Creative or Technology Business categories. The firm has a strong track record in app development, with some big local businesses among its customers. Mark said: “We are proud to work closely alongside some of Bristol’s top businesses including Hargreaves Lansdown and Unite Students. “Last year, we helped Hargreaves Lansdown create HL Live for iPad which has gone onto become the most popular financial trading app on the iPad this year; winning Best Financial Services Campaign at the recent MOMA awards by The Drum magazine. “For Unite, Mubaloo has created MyUnite to provide students with the ability to log maintenance issues and get job updates. “This follows on from the maintenance app created in 2011 that led to a 30 per cent increase in the amount of jobs completed per week. “We continue to fly the flag for
● Sarah Weller, Mark Mason and Gemma Coles of Mubaloo who have designed an app for the Bristol Post Business Awards Photo: Dan Regan
The categories ● Business of the Year Bristol, sponsored by UWE Bristol ● Young Entrepreneur of the Year ● Lifetime Achievement Award, sponsored by Punter Southall ● Retailer of the Year, sponsored by Broadmead Bristol BID ● Customer Service Award, sponsored by Broadmead Bristol BID ● Family Business of the Year, sponsored by BOM Group ● Innovator of the Year ● Export Award, sponsored by Lloyds Banking Group ● Marketing Campaign of the Year Bristol, highlighting how much creativity and development expertise there is in the area.” The Bristol Post Business Awards
● Large Business of the Year, sponsored by Smith & Williamson ● Best Creative/Technological Award, sponsored by Ashfords Solicitors ● Leisure & Tourism Business of the Year, sponsored by QBE ● Small Business of the Year, sponsored by First Great Western ● Start Up Business of the Year, sponsored by Jordans ● Environmental Business Award ● Contribution to the Community Award, sponsored by Renishaw is the premier event of its kind in the city. Last year more than 400 businesspeople attended the celebration of local business.
Be there! ● The Bristol Post Business Awards is not just for the finalists, it’s a fantastic networking opportunity and a great place to entertain your clients. For tickets, go to www.bristolpost.co.uk/ businessawards
Sponsors profile
Creative Tech Award sponsorship
technology group at Ashfords to deliver technical expertise and commercial advice to clients. Having completed over 50 deals in the 2013/2014 financial year with a value in excess of £250m the team is one of the most active in the UK. Andrew is joined on the judging panel by Stephen Moore, who heads
Ashfords’ Employment Group. Stephen noted: “It’s great for Bristol to have so many companies in the running for the Best Creative and Technology category, it certainly gave the judging panel a tough decision to make. “Ashfords is recognised nationally as a leading provider of legal and related professional services. As well as our strength in the technology sector, we have specialist expertise in Corporate and Commercial, Employment & HR, Real Estate, Dispute Resolution, and Business Risk and Regulation. Our aim is straightforward – to help our clients get the results they want.”
● Andrew Betteridge
● Stephen Moore
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ASHFORDS are delighted to support the Bristol Business Awards, recognising the business community in Bristol and the surrounding areas. Andrew Betteridge, who is judging the awards, leads the Venture Capital and Private Equity Team at Ashfords. The team advises venture capital and private equity investment funds, management teams and growing businesses on all aspects of financing strategy, fund raising and investment. The team has a wealth of experience in technology sectors, including social media, enterprise software, telecommunications and cleantech, and combines the specialist industry knowledge of the wider
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Wednesday, June 11, 2014
Focus on start-ups | Sponsored by THEME SPONSOR’S NAME HERE.
Focus: Farming and the rural economy Expert eye Matthew Peters Partner Bruton Knowles 0117 287 2101 matthew.peters@ brutonknowles.co.uk
Auctions back in favour
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T’S good to see rural property and land auctions coming back into favour as the rural property market continues to perform strongly. Auctions were once a cornerstone of the agricultural calendar – and community – but it’s fair to say they rather fell out of favour during recent years. Well, businesses across the farming sector are certainly making hay while the sun shines now! That’s hardly surprising as farmers and landowners are always on the lookout for a good deal – to add long coveted parcels of land to their estate or to dispose of those awkward corners that don’t quite fit their portfolio. The auction process itself is very much the fast track as far as buying property is concerned – but can be something of a danger point for the unwary and there are a few things to bear in mind if you are going to bid at auction. The most important thing is to do your research in advance and take off those rose-tinted spectacles while you do it. Be sure to know precisely what you are bidding on. What is included and what is excluded from the sale. Request a catalogue and any property details and go through it with a fine-tooth comb. It is vital to get the opinion of a professional surveyor or valuer the same as if you were buying in the traditional way. View the property as many times as you can and let your professional adviser view it as well. If things are in a poor state consult builders and other professionals to check costs of likely repairs. You may have grand plans for the property but is it subject to planning restraints? Are there any other hidden caveats and conditions you will have to adhere to? On the day itself, stay calm and don’t get swept along with the excitement of the auction. It is far better to let the property go to someone else than to pay more than you bargained for. Keep within the bracket of spending you set yourself. If necessary get a professional to bid on your behalf – they will be less emotionally involved. Buying at auction is not for the faint-hearted. It can be exciting and fun but can also be frustrating and time-consuming. But preparation is the key; getting quality experts on your team and having an eye for a bargain can make commercial property buying at auction a very profitable activity indeed.
RURAL FIRMS FIND THEIR Farmers and rural business owners don’t just have to cope with the ups and downs of the economy, their trade is also affected by a host of external factors, from the weather to bus routes. Gavin Thompson reports.
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E all complain about the weather. It’s a national pastime. But if your business involves planting things in the ground, then harvesting and selling them, the weather matters more to you than most. It’s not just crop farmers who are affected. Livestock farmers face higher costs when feed costs go up. Indeed the whole rural economy seems to be at the vagaries of either the weather or other external factors ranging from heavy-handed retailers to funding for bus routes. Yet there are thriving rural and farming businesses here in the countryside around Bristol. And there is potential for others to follow their success, if they can find their own winning formula. Melanie Squires, the NFU regional director for the South West, said agriculture was a key part of the South West economy, with businesses all along the supply chain from the farmers, processors, distributors and wholesalers to retailers. She spelled out some of the challenges faced by the sector, not least of them being the weather. “The deviation from seasonal norms have become more pronounced and climate change clearly has a part to play in that,” she said. The last few years have seen drought, flood, heat waves and cold snaps. That creates volatility in commodity prices such as cereal prices which affect every other sector in the supply chain. But there are things businesses can do. Melanie said: “We help our members understand the process along the supply chain. The better they understand that, the more opportunities there are.” Businesses can purchase forward on the futures market to help smooth out the ups and downs of prices, for example. Developing their own brands for produce and promoting British origins of food is another strategy that has been successful. Melanie said: “Consumers want British. A recent NFU survey found 86 per cent of shoppers want to buy more traceable food produce; 78 per cent think supermarkets should supply more British organic food.” She admitted that what people say and what they are prepared to do is not always the same, particularly when it comes to pricing, but said there was strong evidence that people were influenced by the NFU’s Red Tractor logo. Meanwhile, diversification of a business can help to spread the risk, which has seen many farmers attracted by the lure of windfarms as an additional income stream.
● Pies in production at Marshfield Bakery
We’re a rural business – we’re not on a bus route Case study
● RECRUITMENT can be a challenge for rural businesses. Unlike a city-based firm, there isn’t a large potential workforce living nearby. It’s one of the many challenges Marshfield Bakery has had to overcome since it was founded in 1984 by Lynne and Paul White. The business began in Lynne’s kitchen and still uses many of her family recipes. It was based in the High Street in Marshfield, a village between Bristol and Bath, but after 20 years moved to nearby Tolldown. It now employs 45 people and produces 100 different baked-tray goods such as shortbread, brownies and flapjacks, which it supplies to wholesalers who distribute it to retailers across the UK. With that growth comes the
issues of recruiting, training and retaining staff. Director Chris Smith (pictured right), who joined the firm as an experienced business head to support the family owners, said that could be challenging. “We are a rural business,” he said. “We are not on a bus route.” The business had been successful but a few years ago got to the stage where it was difficult to grow further and take it to the next level. So the Whites made a bold step to bring in outside experience to
support them. Chris said he helped the Whites to “take a step back and create a plan”. Together they made some changes, including a “huge operational decision” to move to shift production to increase the volumes. At the same time the family kept the focus on the business’ focus on customer service. The plan seems to be working with sales rising fast. Like many family-owned firms, succession planning is important. But while Lynne and Paul are gradually stepping back, Chris and the Whites’ son Ben are taking the business forward.
Working together can make businesses more able to weather the storms too. One example is the OMSCo, the organic milk producers co-operative based in Weston-super-Mare. Sales and marking director Richard Hampton said the organic milk market could be turbulent with prices having risen then crashed, risen then crashed in the past 20 years. But he said by acting as a co-operative, Omsco could smooth out the impact for members. “Organic milk is a supermarket business so small changes by re-
tailers can make a big difference,” he said. He cited the recent recession when many retailers savagely cut back on organic milk in a bid to keep household shopping bills down. He said: “It wasn’t about consumer choice, it was a choice made for the consumer by the retailer.” At that time Omsco had to find other buyers and actually exported much of the milk overseas to get the best prices, something the lone farmer would struggle to do. Challenges remain across the rural economy, however, particularly around cash flow and borrowing.
For example, recently the beef price has plummeted as supermarkets compete to keep prices down for customers, leaving the average annual income for a livestock farmer under £20,000. That leaves the farmer short and possibly needing to borrow. But in this region, many farmers are tenants which means they own fewer assets to borrow against. Jerry Barnes, a partner at Smith & Williamson, and a member of the fir m’s landed estates team specialising in the food and drink sector, said it was certainly easier for those with their own land.
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Wednesday, June 11, 2014
OWN WINNING FORMULAS
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Know how Jerry Barnes Partner and Head of Family Office and Landed Estates at the Bristol office Smith & Williamson 0117 376 2000 jerry.barnes@smith. williamson.co.uk www.smith. williamson.co.uk
Who rules the roost in a family business?
M ● The Countess of Wessex at the wheel of a Thatchers lorry during her visit to Myrtle Farm to open the company’s £3million Jubilee Building, above
‘Virtuous circle’ of profits and reinvestment
“Access to funding for further investment continues to be an issue for many,” he said. “But for those with landed assets, the picture is more upbeat with banks often more willing to lend against farmland as values have continued to appreciate. He added: “The recent change to capital allowances means purchases of machinery and other equipment up to the value of £500,000 can potentially be written off for tax purposes in the year of purchase, providing opportunities for large one-off tax savings, potentially
Case study Sales director Chris Milton said: “Every business should be concerned with the bottom right hand corner of their management accounts, but you can do that and be sustainable.” He said the business was trying to create a “virtuous circle” growing its profits and reinvesting in the community and its processes. “The fact we have grown is no accident,” he said. “It was planned – it’s just running a bit quicker than expected.” But he said the business stayed true to its ethos and traditions. “We call it the Thatchers’ way. Essentially the business is based on farming – we are farmers. We believe we have craft and expertise
and passion and on that platform we believe we can build a sustainable future.” The business has been family owned since 1904, starting with William Thatcher, then, Stan, John and now Martin. Chris said the future of the business was Martin’s children Eleanor and Peter, and that drove the firm’s focus on sustainability. Thatchers certainly plans for the long term. It farm 360 acres in Somerset has another 800 acres under long-term contract in Somerset, Herefordshire, Wiltshire and Kent. While much of the rural economy rides the ups and downs of the climate, prices and other external factors, Thatchers is signing farmers up to 25-year contacts, guaranteeing to buy their apples as well as
providing the expertise needed. The new facilities give the business room to treble in size over the next seven years. Thatchers’ recipe is a successful one. In the last six years, the business has grown by nearly 600 per cent. Export sales have tripled in the last year, and Thatchers is one of the fastest growing brands in UK off-licence trade through supermarkets. It is sold in 20 countries, the most recent addition was Australia where it has linked up with Coppers Brewery, a fifth generation family firm. Every part of every batch of cider produced is tasted by John or Martin Thatcher before it is allowed to leave the site. With 150,000 litres of cider produced this year, that’s one tradition that might not be so sustainable.
providing further funds for investment. Of course it is important to review the structure of the business regularly to ensure longer term tax efficiency.” Jerry and his firm recently hosted a Future in Food Conference at Yeo Valley in Blagdon, which gave an insight into such challenges but also painted an upbeat picture. He said: “The West of England has a rich and diverse agricultural heritage with a large community of farmers and food and drink processors. We heard first-hand accounts of some of the innovative
approaches to business development being taken by companies such as Thatchers, Lye Cross Farm and Marshfield Bakery, who continue to work hard to differentiate their products and extend their reach. “Many of the West’s food and drink brands have a very strong identity at home as well as abroad. “Those who have not managed to establish or differentiate themselves quite so well are being urged to collaborate with others in their supply chain to help strengthen their offering and better exploit the opportunities. Organisations such as
the NFU and the West of England Local Enterprise Partnership are among those actively encouraging this approach.” But he warned while things were generally positive, there was a “cloud on the horizon”. “As Sterling continues to strengthen against the Euro, the impact on the Basic Payment Scheme (BPS) – formerly Single Farm Payment – is likely to be felt with farmers facing the prospect of lower support payments. The next few months will be critical in terms of setting the level of new payments.”
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● FOR rural and farming businesses, sustainability is vital. As businesses that live off the land, the protection of the environment is crucial. But sustainability is not just about being green, it’s about sustainable profits too. Thatchers, the Sandford-based cider producer, has put that sustainability at the core of its business model. This week, the Earl and Countess of Wessex visited the firm’s new packaging and warehouse facility. The £3 million Jubilee Building has been designed with sustainability in mind. It has a curved green roof to emulate the landscape, features rainwater collection, insulation and natural ventilation. It is powered by a biomass boiler, fuelled by miscanthus crop grown on eight acres of land on the farm.
ANY of the West Country’s food and drink businesses are family-owned. If you are one of them, you’ll understand the challenges. Succession is almost always a major concern whether it’s openly talked about or not. It’s difficult enough trying to run a business without having the added pressure of balancing commercial considerations with personal ideals and family dynamics. Introducing new family members into the business is just one of a raft of scenarios which can threaten the long-term future of the business as well as family life, if not dealt with effectively. Whether yours is a farming business which places great emotional value on the land itself or a third generation, family-owned company, which may be more concerned with its brand, intellectual property and reputation, the fundamentals remain the same. Every business is different, but they all need a structured plan and clear communication. Perhaps surprisingly, many owners haven’t set out their intentions regarding the future direction and management of the business and even where they have, it isn’t always communicated effectively. More often than not, the plans remain in someone’s head and expectations among first, second and even third generation family members are not always properly managed. There are lots of ways to approach this – for example, by setting up a Discretionary Trust which can separate ownership and control. As your business grows and prospers, you will almost certainly reach a point where you need to buy in expertise and this may include investing in top level people for senior management roles. While attracting and retaining key people is vital, you do not necessarily have to give ownership to those in authority. There are many ways of rewarding and incentivising senior staff and we can help you with this.
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www.bristolpost.co.uk/business
Wednesday, June 11, 2014
BRISTOL’S BUSINESS COMMUNITY Balloon Fiesta 100 Club at Cameron Balloons
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The Bristol Connected event at Bristol Zoo
● The scene at the Balloon Fiesta sponsors’ dinner held at Cameron Balloons in Bedminster BRDR2014 0605D-006_C
EMBERS of the Bristol International Balloon Fiesta 100 Club were treated to dinner in an unusual venue when the draw was made for this year’s title sponsor. Club members, who all support the free event, are put into a draw with one chosen as the headline sponsor. This year Accolade Wines, based in Avonmouth, was the lucky winner, which will use the event to promote its Hardys wine brand. The announcement was made at a black-tie dinner and rather than opt for a traditional venue, the event was staged at Cameron Balloons in Bedminster. The firm was founded by Don Cameron and it was after he gave a talk to the Bristol Junior Chamber on his attempt to cross the Atlantic in a balloon back in 1978 that the idea of the fiesta was born. The event has since become a major part of the calendar in Bristol. This year it takes place at Ashton Court from August 7-10. Simon Williams from Hardys said: “We’re really excited to be named title sponsor for the Bristol International Balloon Fiesta in 2014. All our wines destined for the UK and Europe are bottled at a state of the art facility in Bristol, so we feel part of the region and have been proud sponsors of this fantastic national event for four years.”
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● Lacey Tucker and Chintal Patel
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www.bristolpost.co.uk/business
Wednesday, June 11, 2014
OUT AND ABOUT
Pavilion
GALLERIES GALORE
Business diary
FOR MORE PICTURES Check out our website at bristolpost.co.uk/business
Pictures by Dan Regan
Institute of Directors regional dinner and director awards: With IoD chief economist James Sproule at Paintworks on Thursday, June 12. To book, call 0117 3707785 or visit www.iod.com/swestevents. Bloodhound SCC Cockpit Launch: The unveiling of the Bloodhound Supersonic Car’s cockpit, aka Driver Andy Green’s 1,000mph office, at the Bloodhound Technical Centre, Avonmouth,10:45am on Friday, June 13.
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HO knew pensions could be so much fun? That was the feedback after the recent Bristol Connected: Auto-enrolment - Are You Ready? event at Bristol Zoo. The event was held by the Bristol Post in association with Clifton Asset Management and gave business owners an insight into the issues they face as the laws on workplace pensions roll around to smaller and medium sized firms. While the turnout was affected by a combination of traffic, torrential rain and Bristol Rugby’s final game at the Mem, dozens of business owners and managers attended. They were treated to engage talks from: * Seven Investment Management founder Justin Urquhart Stewart, who is a regular expert on television and radio, and gave a bombastic talk on the state of the economy and rise of the entrepreneur. * Pensions Guru Steve Bee, who entertained with his dry wit but also explained how automatic enrolment will work for employers and what they need to do. * And finally Morten Nilsson, chief executive of pensions provider Now Pensions talked through some of the benefits and pitfalls. Clifton Asset Management group finance planning director Anthony Carty urged business to start planning now. He said: “It is difficult to understate the amount of heavy lifting that is required for this project. “The Pensions Regulator says you should be planning for at least 18 months.” Bristol Post assistant editor (business) Gavin Thompson added: “We’re very grateful to Clifton Asset Management and our speakers for making this excellent event possible. “The key message to business owners and managers was to act now. Find out what your staging date for auto-enrolment is and then seek out the expert advice you will need. “But don’t leave it too late if you want to get it right.” The next Bristol Connected event will be on Thursday, August 14, from 6pm. Details and ticket information will be announced nearer the time.
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Cider Trends Summit: Aone-day conference that will provide insight into the innovative world of cider and the trends currently driving this vibrant category. Tuesday, June 17, At-Bristol, 10am to 4.30pm. Visit www.cidertrends summit.co.uk for details. CBI: The Annual Bolland Lecture: John Cridland CBE, Director General, CBI, gives the Annual Bolland Lecture 2014, on Wednesday, June 18 at UWE Exhibition and Conference Centre. What’s Your Digital Strategy? Institute of Directors and 02 host seminar on how businesses are using digital with speakers including Ho Wade, head of direct sales at 02. From 7.30am to 10am at the Engine Shed, Wednesday, June 18. ● Above, Justin Urquhart Stewart during the Bristol Connected event at Bristol Zoo Pavilion
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Somerset in Business Showcase: Businesses from all over Somerset, and beyond, will be at The Winter Gardens, Weston-super-Mare,for the fourth annual showcase in the resort. The event takes place from 11am to 4pm on Wednesday, June 18. To register visit wwww.sib.today. Outset Bristol Start Up Loan workshop: How to apply for a Start Up Loan and use it to help grow your business - this workshop is open to anyone in Bristol who is about to launch a new business or has been trading for less than 12 months. Thursday, June 19, 2-5pm at Royal Oak House, Prince St, Bristol. Register at www.outsetbristol.co.uk or call 0800 032 2903.
● Justin Urquhart Stewart, Morten Nilsson, Anthony Carty and Steve Bee during the Bristol Connected event at BRDR20140604C-010_C Bristol Zoo Pavilion
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The Bristol Post Business Awards: A celebration of all that’s great about Bristol business run by the Bristol Post. A great chance to network and entertain clients. From 7pm on Wednesday, June 25 at the Passenger Shed, Temple Meads. Book tickets online at www.bristolpost.co.uk/ businessawards. 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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● Emma Hall and Yarka Krajickova BRDR2014 0604C-012_C
A masterclass in leadership from the Masai people: Chris Howe explores the wisdom of leadership from the Masai people and its relevance to business in the West. The Clifton Pavilion, Bristol Zoo, 6pm, Friday June 20. To book visit https://www.formstack.com /forms/uwe-masterclass_in_ masai_leadership.
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www.bristolpost.co.uk/business
Wednesday, June 11, 2014
BRISTOL’S BUSINESS COMMUNITY South Gloucestershire branch of the Federation of Small Businesses (FSBs) – ‘It costs how much?’ Held at Aztec West Hotel
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● Helen Eyre, speaker Trevor Lever and Brian Bingham BRJK20140528E-013_C
HE difficult task for small businesses of making sure the price is right was the subject of the latest seminar held by the South Gloucestershire branch of the Federation of Small Businesses (FSB). Under the title of “It costs how much?”, Terry Lever, a Somerset-based sales and marketing expert, entertained the audience at the Aztec West Hotel by looking at every aspect of pricing to customers. The FSB team hold a free-to-attend seminar on the last Wednesday of every month open to members and non-members. The next seminars are on how to network (June 25) and an ‘ask the politician’ event with Steve Webb, the Pensions Minister on July 30. “These seminars are an excellent way of encouraging local businesses to meet together and learn things which can help them grow and develop,” said Paul Neck, the chairman of the FSB’s South Glos branch. For more info go to http:// www.fsb.org.uk/gloswestofengland/ branches/southgloucestershire.
● Members at the seminar at Aztec West Hotel
● Andrew Forbes, Neil Munns, Paul Sampson, Martin Greaney, Ray Turner
Pictures by Jon Kent
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Regular fortnightly meeting of the Bristol branch of the Institute of Directors - held at the
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USINESS leaders from around Bristol and Bath enjoyed an evening of informal networking at the Bristol branch of the Institute of Directors’ regular fortnightly meeting at Radisson Blu in the city. The speaker was surveyor and IoD member Robert Chapman, who talked about the economic impact of taking professional property advice when purchasing or leasing commercial property, as well as legal and
accountancy. The Bristol branch is the largest in the South West with a membership of 500, including student representatives from the University of the West of England. As well as informal networking, the branch holds a number of keynote events through the year, the next on June 25 with Tastetech founder Janis Sinton and her team demonstrating taste encapsulation at Explore@Bristol.
Wednesday, June 11, 2014
OUT AND ABOUT 2
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Future in Food Conference at Yeo Valley
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AIR prices, sustainability and brand identity were among the topics debated at the Future in Food Conference run by the Bristol office of accountancy and investment management group, Smith & Williamson. Melanie Squires of the NFU said: “Together we must promote British produce – which the NFU is doing through its Back British Farming campaign – label food in a way that is
practical and easy to understand, and work towards introducing long-term supply contracts” Tim Harrap, head of collaboration at Lye Cross Farm, told the event about the importance of brand authenticity. He challenged businesses to think about how they communicate the stories behind their products and develop a memorable brand which reflects their key selling points. Jerry Barnes, head of private client
tax at Smith & Williamson’s Bristol office, which has a dedicated landed estates team, said: “We enjoyed a lively debate and locally-sourced lunch at the impressive Somerset headquarters of Yeo Valley. “This is the second year we have run this event and we are grateful to our speakers for highlighting some of the major issues facing the sector as well as sharing their success stories with us.”
● Melanie Squires, regional director, NFU in the South West
Radisson Blu Part of the Local World group
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● Roger Plahay, Richard Graves and Karen White
Call us on: 01684 575832 Email us at: enquiries@aneventservices.co.uk Visit us at : www.aneventservices.co.uk
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Wednesday, June 11, 2014
The back page
Your digest of the week in business
People ● A GROUP of Bristol’s leading tech sector entrepreneurs went to Buckingham Palace this week for a special reception by the Queen and the Duke of Edinburgh. The event recognised and celebrated the growing contribution of the technology sector to the UK economy and the country’s proud tradition of innovation. The Queen and The Duke of Edinburgh were joined by the Duke of Cambridge, the Duke of Gloucester, the Duke of Kent and the Duke of York, who is a long-time supporter of SMEs and the technology sector and has previously visited Bristol’s Engine Shed tech hub. ● As the economy picks up, recruitment follows. Property consultancy JLL has made a raft of new graduate appointments to its Bristol office. Four new recruits have joined the office with a fifth graduate due to start in September. That’s the highest number of graduate appointments since 2007. Jeremy Richards, head of JLL’s office, said: “They were all originally due to start in September but we’ve been able to take on four of them already, which is another reflection of the improving market conditions.” The graduates are Lucy Warren and Chris Quaile, who will join the building and construction team; Kathryn Hollick, joining healthcare valuation and Ross Wigley, who will join the office agency team. Deborah Bryant Pearson, will be joining the company in September.
impressive £1,000 more than last year for their chosen charity, Children's Hospice South West. Solicitor Robyn Palmer, who helped organise the event, said: "I was so pleased with the turn out at the event and the amount of money we managed to raise. The most popular auction items of the night were glider lessons, a VIP tour of the Houses of Parliament and our previous resident, Rudolf The Reindeer, which is already gaining fame on Twitter.”
● Palace visit: From left, Nigel Austin of Cayder; Tom Griffin of Ripjar; Nicola Ray of Modern Media; Glenn Smith of Maplebird; Bonnie Dean of Bristol & Bath Science Park; and Steve O’Brien of Newicon at the Science Park in Emersons Green
Awards ● Stride Treglown, which has a big presence in Bristol, has maintained its No.10 ranking in the prestigious Architects Journal 100 list of top UK architectural practices. The survey gathers data on key elements such as company ethos, clients, projects, income and location in order to build up a detailed picture of the industry. David Hunter, chairman of Stride Treglown, said: “We were thrilled to hold on to the number 10 slot for another year. It reinforces our
● Cricket tournament: From left, Abdul Hafeez, James Parks, Craig Wain, all of No5 Chambers, and Paul Bleasdale position as a serious national, and increasingly, international player.”
Good work ● A number of Bristol firms have been doing their bit for good causes. Law firm VWV has chosen Brace and St Mungo's Broadway (London) as its charities this year.
Managing partner Simon Heald said: “We take our responsibility towards the community in which we live and work, seriously and it is important for our staff and firm to play an active role, not only in business but also in community life.” ● Ashfords staff raised £4,586 at their Bristol charity quiz, an
● Comedian Barry Cryer entertained 105 guests at the annual dinner of the Bristol & Bath branch of the Chartered Institute for Securities & Investment. The event at Bristol Zoo raised £1,000 for Talking Money (formerly Bristol Debt Advice Centre). Osman Yukselturk, director of the MSc finance programme at UWE, and Helena Thompson, chief executive of Talking Money, were among guests. ● A six-a-side charity cricket tournament is taking place in Bristol on Friday, June 20, to raise money for the Avon Bristol Law Centre and Marie Curie Cancer Care. The Anthony Barker QC Memorial Shield, organised by No5 Chambers based in Queen Square, will be awarded to the team that triumphs at Brislington Cricket Club in Ironmould Lane. The tournament is a tribute to Mr Barker, a former head of chambers, who died in 2012 after a long battle against cancer. ● Staff at Clarke Willmott LLP hosted their first charity ball on May 9 at Woodlands Castle. The black tie event, which included a 17-piece band, a charity auction and raffle, raised over £3,400 for St Margaret’s Hospice and The Albemarle Centre. Since 2012, the firm has raised over £8,000 for both the charities
In numbers Inflation (CPI) Inflation (RPI) Weekly earnings Base interest rate
1.8 2.5 1.7 0.5 3
Average mortgage rate
% % % %
.99%
Corporation tax % Main rate
21
Small profits rate – below £300,000
20
%
Business current accounts
1.01% State Bank £10,000 deposit of India 0.25% £1 deposit
Business savings accounts 1.85% Secure Trust £1,000 deposit Bank Shawbrook Bank
1.40% £5,000 deposit
Source:
The op-ed column
Sometimes doing nothing is not a bad thing
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HEN in a position of power or management, people feel the need to do something... anything. We see it with companies, a brand is still bedding in but the boss announces it is time for a change. I’ve seen it in my own industry over the years. It is understandable, of course. The people in charge are usually paid the most money. Those on the ground doing the day-to-day work look up and think “what are they actually doing?” So the boss thinks he’d better earn his salary by having some big ideas. That’s great when there are good big new ideas. Every industry and every business needs innovation. But change for change’s sake
Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
and new strategies coming in and going out through a constantly revolving door helps no one. And what we see in the office is magnified in the corridors of power. The coalition Government was criticised for a relatively light Queen’s Speech last week, in which it set out its legislative programme for the coming Parliamentary session. Some accused it of being a “zombie” gover nment that had “run out of ideas”. It might be true. But let’s turn that on its head. How many people are right now thinking, “what we need in this
“ Change for change’s sake and new strategies coming in and going out through a constantly revolving door helps no one. country is some new laws”. Or “we simply must have some more red tape and bureaucracy to make our days more interesting”. Because that’s what the Queen’s Speech entails. The new laws the Government wants to introduce in the coming year. And those new laws all require
someone to do something different. To start doing something, stop doing something or record what they are doing, aren’t doing or are no longer doing. The single most important task this Government was faced with on coming to power was steering through the economic crisis towards more prosperous shores. Business needs a stable environment in which to prosper. There is already plenty of change under way, automatic enrolment for workplace pensions, for example. Business has enough on its plate. Sometimes strong leadership means to choose to do nothing.
● To write for this column email your 350-word submission and a photo to business@b-nm.co.uk.