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MEET THE NEW BOSS
HEALTH CHECK
GET CONNECTED
We find out what makes LEP’s new chief executive tick – page 7
How to test whether your business is sick – page 3
Who was making connections at our popular event? – p10&11
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AUG 2014
CYBER PROTECTION
SECURE YOUR DATA OR PAYTHE PRICE Firms face hefty fines if they don’t meet new regulations on protecting their customers’ personal information – see pages 8&9 EPB-E01-S3
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Aviation
Wednesday, August 20, 2014
Construction
World’s newest airliner looking good in tests THE world’s newest airliner has completed a series of trials that saw it land in 14 cities, crossing every ocean and flying over the North Pole. The A350 XWB had to undergo the trials in order to be certified to fly as a commercial passenger plane, a hurdle it is expected to clear later this year. During this world tour, the aircraft flew 81,700 nautical miles – or 151,300km – during 180 hours in the air. It was flown by crews from Airbus and customer Qatar, with pilots from the Airworthiness Authority, part of the European Aviation Safety Agency, also involved. The routes were chosen to show performance in different conditions, such as a trip from Johannesburg Tambo International Airport, located at 5,558 feet (1,694m) above sea level, to Sydney, to test it at high altitude. Fernando Alonso, Airbus senior vice president flight and integration tests, said: “The aircraft has performed remarkably well, confirming the high level of maturity that it has been demonstrating during our development and certification tests. I truly believe that the aircraft is fit to enter into service and perform to the expectations of our customers.” The plane is the latest member of the wide-body family, with room for wider seats as well as greater fuel efficiency. So far 742 orders have been placed from 38 customers worldwide.
● Midas Group chief executive Alan Hope believes a greater focus on customer service has helped his firm increase profits
Profits soar Midas Group enjoying benefits of rising housing market Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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HE rising housing market and recovering construction sector saw Midas Group profits shoot up by 73 per cent for the year. But the South Bristol firm puts the performance down to its customer service strategy, now in its second year, pointing to 70 per cent of revenue coming from repeat business to back up the claim. In the 12 months to April 30, Midas increased turnover 12 per cent to £202.9 million, from £180.5 million. And grew pre-tax profits to £2.1 million from £1.2 million. Chief executive Alan Hope said “Despite continued pressure on mar-
gins, our sustained focus on customer service continues to deliver high levels of repeat business and we remain well positioned to maximise opportunities presented by the tentative recovery. “Since launching our customer service vision and strategy two years ago, results have exceeded expectations and in the last 12 months we have achieved record customer satisfaction scores in excess of 80 per cent. “It’s no coincidence that in the same period we saw 70 per cent of revenues come from repeat business, contributing to double-digit growth in turnover, while our relentless focus on costs and risk mean we were able to deliver a 73 per cent increase in taxable profits. “There is no doubt that the customer service culture in our company has led to improved performance, in-
creased levels of satisfaction, more repeat business, and improved financial results.” Midas Group, which employs 450 people across offices mainly in the South West but its HQ in Winterstoke Road, is made up of smaller businesses including Midas Construction and Mi-space, which provides services to the building sector. It was the latter that made the big contribution to growth, with pre-tax profits of £1.5 million – a rise of 350 per cent on last year, despite a small drop in turnover for the period. The business is working on projects including rejuvenating a housing estate in Plymouth and managing a refurbishment programme for Weston-super-Mare-based Knightstone Housing Association. The construction arm is developing the flagship £11.6 million Filwood Green Business Park, set to open
during Bristol’s stint as European Green Capital next year to show off how commercial space can be green. It is also carrying out a £7.3 million refurbishment of Narrow Quay House office in the Harbourside. Alan added: “We have seen some upturn in the market. Housing construction grew for the 15th month in April, and momentum across the rest of the construction sector rose for the 12th month in a row. “But competition is still fierce, and to win work we must look to deliver the same customer experience as other, more consumer-facing industries. “The flexibility and a willingness to work with clients from the very start has been a key element of our success, and this will become more important for us all as clients want even more involvement in the services they engage with.”
HB06265_Bristol Business Pulse campaign_50 x 100.indd 7/17/2014 1 11:56:38 AM
Survey
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Firms find school leavers unprepared for work MOST employers in the region have not taken on school leavers or graduates in the past 12 months but many of those who have feel they were unprepared for work. The findings come from the Business West quarterly economic survey. The results showed positive economic signs, with 36 per cent of businesses saying us they had recruited staff, up five points, and 37 per cent saying they expect to recruit in the next three months, up by three points.
But the lack of skills for work among school and college leavers was a serious concern. The survey found 56 per cent believe the region is attractive to new talent but have not recruited a school/college leaver, graduate, or long-term unemployed person in the past 12 months. Of those which had, only eight per cent believe school leavers are ready for work, rising to 16 per cent for college leavers and just 11 per cent for the long-term unemployed. Business West managing director
Phil Smith said: “The last quarter’s results painted a positive picture for our region, showing that growth remains on a strong footing here in the South West with business confidence up on both the quarter and the year, standing at 74 per cent.” He said the recent fall in unemployment, down 0.7 per cent in the region, reinforced what companies were reporting with a rise in those planning to recruit. But he said lack of skills continued to be mentioned as a growing issue. “We sought to explore this further –
with staggering results,” said Phil. “Of firms that recruited, 61 per cent had difficulties recruiting suitably skilled staff and a very low percentage believe that school leavers, college leavers and the long-term unemployed are well prepared for work. These findings indicate that schools and colleges are not producing business-ready young people and more must be done to improve the link between business and education to ensure a sustainable long term recovery.”
● Phil Smith of Business West
www.bristolpost.co.uk/business
Wednesday, August 20, 2014
Green technology
Power gain New device shows how much you’d save with solar panels
Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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ORE people will switch on to solar power if they see the benefits to their pocket first. That’s the thinking of a Bristol company that has been awarded close to £100,000 to develop a new product. Clean Energy Protector (CEPRO), based in Easton, is developing the Skyprospector. It’s name harks back to the gold or oil prospectors of the Wild West, and hints at the relative gold mine people could be sitting on, or under, in their own homes. The technology simulates an array of solar panels and shows how much power it would be generating against how much energy they are using so people can see the savings. It’s not just those without solar panels who can benefit. Households with solar panels already installed can use the system to see how they perform against their use of energy. This could result in residents using their solar power more effectively, reducing demand and looking at complementary technologies such as energy storage. The technology is composed of three parts, a monitor that clips around your mains cable and measures home electricity usage, a smart meter measuring real solar generation from a site in the neighbourhood, and a web app which links the two and crunches the numbers. The company is optimistic it can use the technology to prove the business case for solar and disprove any misconceptions. It will be piloted around Bristol next year with the aim of being widely available by the end of 2015. The final product will probably be free to the end user. That means the solar industry could pay, as a way to encourage people to sign up. Damon Rand, 39, co-founder and
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The Pitch 2014
Three city enterprises head for boot camp ● THREE Bristol-based small businesses are included in 100 of Britain’s best small companies selected to attend intensive boot camps and compete to win support worth thousands of pounds. The companies have been chosen by a panel of judges in The Pitch 2014, presented by BusinessZone.co.uk and UK Business Forums in association with AVG. Founded in Bristol in 2008, the nationwide competition rewards and celebrates the UK’s entrepreneurs. Among those selected is Wriggle, an app which provides on-the-day offers at local bars, restaurants and other venues to help businesses fill unsold deals. Founded by Rob Hall, the company recently raised £128,000 investment through crowdfunding platform Seedrs. Also on the list is Grow Bristol, an urban farming enterprise set up by Dermot O’Regan that aims to develop innovative and sustainable ways of growing food in the city for the benefit of all its inhabitants and the wider world. The third Bristol-based business chosen is Talking Men’s Shoes, a video blog run by Fiona Wyatt that’s aimed at the men’s shoe industry.
Sportswear ● Damon Rand with the Skyprospector which can show the benefits solar panels would provide
“ With this grant we are now able to rapidly progress development of technology.” Damon Rand director at the firm, said: “With this grant we are now able to rapidly progress development of technology that supports the growing solar PV industry and help householders and housing managers to make informed
and confident investment decisions in this alternative energy technology. “Being based in Bristol, a city with many world-leading low-carbon and high-tech companies, this recognition of our work by the West of England LEP is a welcome accolade.” The £99,500 grant has been awarded from the Regional Growth Fund administered by the West of England Local Enterprise Partnership as a way of kick starting projects and creating or safeguarding jobs. Karl Williams, project manager at the LEP, said: “It’s great that we’ve been able to award this money to
Picture: Dave Betts
Clean Energy Prospector, which is one of a number of businesses playing an important role in our growing low carbon sector, a sector we’ve identified as a key area of economic growth for the West of England.” ● A third round of the Growth Fund is open for businesses to apply for and the closing date for applications is September 8, 2014. For details of the fund, including how to apply, go to www.westofenglandlep.co.uk/ wegfr3. Businesses can also email the funding team on growthfundapps@westofengland.org or call on 0117 903 6207.
Health-test your business before it’s too late Know how Andrew Fisher Executive director Alanbrookes Ltd 01934 863386 AndrewFisher@ Alanbrookes.co.uk www.alanbrookes.co.uk
● Healthy Zone: the business is in good shape. ● Danger Zone (zone of ignorance, zone of uncertainty): warning signals, lenders and trade suppliers need to exercise caution, and owner managers need to take action. ● Failing Zone: high likelihood of bankruptcy within one year. Ensure your accountant uses the correct model – the private company model is different to the quoted com-
pany model and there are different ones for manufacturing and non-manufacturing businesses. If you don’t have access to this expertise, early warning signs you need to watch out for include: ● Adverse financial signals such as declining gross margins, declining market share, worsening working capital, rapidly increasing debt, and a general atmosphere of cash being tight ● Adverse behavioural signals such as poor communication, low morale, bad housekeeping, high management tur nover By the time that clear day-to-day symptoms appear – such as severe creditor pressure, being unable to get new credit, delaying your VAT returns – you have probably already entered firefighting mode whether you realise it or not, and your room for manoeuvre is more limited. The most common reaction to these symptoms – and this is human nature – is to assume all will be put right by that
new contract or that large debtor receipt due any day now. This is rarely the case in reality and if you can resist thinking like that, the good news is that you still have options even now, but you are likely to need professional help in saving the business. It’s always best to take action when everything is in your own hands and assuming you have already done the obvious such as cutting unnecessary costs, you can avert problems by a combination of actions focussed on sales, cashflow and profit. There are a myriad of examples but a few might be: ● Benchmark yourself against others in your industry to identify areas where you can improve – industry statistics such as gross margin should be publicly available through trade assocations etc, or your accountant may have software that gives you a benchmarking report ● Understand and manage your breakeven point so that you are more
Puma springs across border to Bristol ● SPORTSWEAR brand Puma has announced its move to Bristol, opening a new showroom at Bath Road Studios. The company, which makes athletic and casual sportswear, has taken 1,630 sq ft of showroom space on a five-year lease, relocating its operation from Newport in South Wales. The showroom is be open to retail partners and buyers but not the general public. Bath Road Studios was refurbished to provide office space, often for the creative sector, with tenants including ITV West Country, Films@59, Friska and The Set workspace and membership club.
“ By the time that clear day-to-day symptoms appear – such as severe creditor pressure, being unable to get new credit, delaying your VAT returns – you have probably already entered firefighting mode whether you realise it or not. able to survive falls in demand Improve your debtor collection days and reduce hassle by moving customers onto direct debit – this is now being used in many more industry sectors than was previously the case. You could incentivise your customers with a discount for doing so provided the benefit of accelerated cashflow outweighs the drop in margin. As any doctor will tell you, as a general rule the earlier a patient is diagnosed the better the outcome.
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T is an unfortunate fact that many businesses fail because their owners or directors have either not spotted the warning signs in time, or delayed taking action because they think that things will shortly turn around by themselves. This happens to otherwise very effective owner managers because there is usually a delay between the boat springing a leak and that sinking feeling. If you take action at the former rather than the latter stage you will have a much greater chance of turning things around. If you have access to a qualified accountant either in-house or externally you can ask them to calculate your Z-score as part of the management accounts process, or on a regular basis. The Z-Score is the most thoroughly tested and broadly accepted distress prediction model. It applies statistical techniques to financial ratios to determine the overall health status of a business:
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www.bristolpost.co.uk/business
Wednesday, August 20, 2014
Property
Electric avenue Flats will breathe new life into landmark building Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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HAT should a would-be developer look for if they want to convert an office building into flats? According to Sandra Dixon, sales and marketing director at Crest Nicholson, there’s only one place to start. “The key thing is where are the windows positioned,” she said. “Particularly when dealing with a listed building.” Sandra is leading the firm’s conversion of art deco landmark Electricity House, the one-time SWEB HQ in Bristol’s Centre. It is part of the strong trend for converting office buildings within the city centre under a temporary planning regulation called permitted development. But while many of the buildings undergoing transformation are square, clunky offices, this one is sleek, curved and a bit special. It was designed by architect Sir Giles Gilbert Scott, who was involved in Battersea Power Station among other projects, built in 1937 and finished in 1939. “I couldn’t believe it when it came up for sale,” said Sandra. “I said we can’t pass on buying such a fantastic building.” Her enthusiasm was about more than just passion for a period building, but business sense too. “This building fortunately lends itself rather well to be converted into a residential building because the windows positions – there are a lot of them,” she said. “It enables us to put a high proportion of units in, which does help us with planning. But we’ve also been able to put more unusual units, more quirky around the corners and bull-nose front which some particularly beautiful apartments at the front with a bit of outside space on the upper floors as well.” The original building featured a large central atrium, but over the years tenants have taken more of the space for offices. Sandra said: “We are going to re-open up the atrium, it will become
“ I strongly believe it’s a unique building in the city and
deserves to be treated differently. There have been refurbishments before, such as the 5102 but that was really using the building as a shell while this is very much breathing new life into the original.”
Sandra Dixon, sales and marketing director at Crest Nicholson a dynamic space again with more light coming into the building.” The firm, perhaps better known for new-build flats around the Harbourside and Portishead Marina than the restoration and conversion of old buildings, will be looking to replicate original features that have been lost, such as reinstating Terrazzo flooring and deco-style windows. “The windows in now are awful,” said Sandra. In another throwback to days gone-by, the restored lobby area will
boast a concierge, on hand to welcome people in, take parcels and be a point of contact for residents. Sandra said: “There would have been one when Scott designed the building and I strongly believe it’s a unique building in the city and deserves to be treated differently. “There have been refurbishments before, such as the 5102 but that was really using the building as a shell while this is very much breathing new life into the original.” But while the exterior and common areas will echo the past, inside the
flats – which will be mix of one, two and three bedrooms – will be modern and minimalist. Sandra believes the project will be the jewel among office conversions and be popular among city workers and younger people who want to be at the centre of things. “It has a BS1 post code, so you couldn’t get more central,” she says. Provisionally prices will start around £155,000 for a one bed which is unlikely to include parking, to perhaps £500,000 for a three-bedroom apartment. As well as the 85 flats, and 49 underground parking spaces, there will be 12,000 square feet of commercial space, probably cafes and convenience store. This scheme, due to be finished in October 2015 but on sale earlier in the year, and others under permitted development rights will likely change the nature of this part of the city. Sandra said: “It will inject a bit of life into the area.”
● A COMMUNICATIONS firm in Clifton has launched its new brand on the back of a 17 per cent growth in sales year-on-year. JBP has been in business for 30 years. The firm has grown revenue to more than £2 million and plans to double turnover over the next three years. Managing director Chris Lawrance said: “We have seen a significant upturn in business over the last 12 months. We have continued to grow with existing clients as well as winning significant new work.” He said the firm was seeing more demand for high level, strategic communications to support its ambitious clients across a range of sectors. He said: “The rebrand reflects our ‘business class’
approach to delivering communications programmes that yield a significant return on investment for our clients. “We achieve this by providing communications advice with substance, drawing on our knowledge and networks across business, politics and the media.” The firm, which was founded in Bristol by Jennifer Bryant-Pearson, has invested to grow, including opening an office in Coventry last year and expanding its team across all its sites. It also has offices in Westminster and Cardiff. Customers include Sainsbury’s, Bosch, National Grid, BAe, Veolia, and law firm Clarke Willmott. After its rebrand, the company is focusing on three core areas: PR for high potential and mid-market companies; stakeholder engagement for companies involved in complex and construction and infrastructure developments; and public policy, what it describes as providing insights and advice on legislative and regulatory developments.
Networking
Small business owners quiz pensions minister
About to renew the lease? Check the energy performance ratings
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PR firm’s new brand after sales surge
● JBP managing director Chris Lawrence and Liam Herbert
Commercial property
BUSINESSES looking to renew leases in the near future are being told to check the energy performance rating before signing up due to new regulations on the horizon. New energy performance certificates come into force in April 2018, which will make it unlawful to let or sell a commercial property rated below band E. That might seem a way off but if the new lease runs beyond that date, firms might be able to use it as a bargaining chip, according to property agency Bruton Knowles. Paul Williams, head of agency at
Marketing
the Bristol office of the firm, is advising tenants and property owners to get in touch in order to strike the best deal while ensuring any property complies with the required energy efficiency rating. Paul said: “Some businesses will be looking to sign new agreements taking them forward to 2018 and beyond. “Although this date might seem a long way off it’s surprising how quickly it will come round. “Being proactive now will help landlords reap the benefits later on and will make any property more
attractive to tenants. Those concerned about their portfolio will need to assess now the costs and benefits of improving the energy efficiency.” About one in five commercial properties currently falls into bands F and G, so the sector faces a stiff challenge to bring them up to spec. Paul said: “Whilst the measures only come into force when a property is either sold or leased, failing to act now on poorly performing buildings could be a mistake unless you’re happy to have a portfolio of void properties on your hands as tenants either vote with their feet or decide to
opt for cleaner, greener and cheaper options which will be available to them.” He added the best time to undertake any energy efficiency improvements could be during current void periods or lease breaks..
● SMALL business owners from throughout Bristol and South Gloucestershire quizzed Pensions Minister Steve Webb. The evening was organised by the South Gloucestershire branch of the Federation of Small Businesses (FSB) as part of its regular monthly seminars at Aztec West Hotel. It offered members and guests the chance to tackle Mr Webb, who is the MP for Thornbury and Yate, about both his own pensions portfolio and other subjects as varied as local transport provision and Scottish independence. The session was hosted by Paul Neck, the chairman of the South Gloucestershire FSB which has 1,000 members made up of small business owners, the self-employed and local entrepreneurs. Paul said: “Steve always seems to enjoy engaging with and listening to the small businesses community.”
www.bristolpost.co.uk/business
Wednesday, August 20, 2014
Disability aids
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Property
Property investors focus on city market
● Susie Fisher, director of A2i shows off the Braille keyboard cover
Braille boost Keyboard cover will give the blind online independence Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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HE growth of businesses and services that are accessed online causes problems for the blind and visually impaired, so one small Bristol business has come up with a product to help. Montpelier-based A2i – or access to information – was founded 15 years ago specialising in transcription services. But now the firm is moving in a new direction with the launch of a
moulded Braille keyboard cover. The idea is very simple. The cover sits on top of any standard keyboard and overlays braille on the regular keys, meaning someone who can read braille can use the keyboard. It is made from a polyurethane film moulded to fit. You can see the letters through the cover, so it doesn’t cause problems for sighted users. At the moment, some Braille users touch-type using a regular keyboard, but use a screen reader to check as they go, but this can be more awkward in a public setting. And while users may still sometimes need screen readers or support, company
bosses believe it will help give them a greater feeling of independence. Director and founder, Susie Fisher, said: “We are really excited to launch this product, it’s so much better than the old-fashioned Braille stickers that had to be added by hand.” New product manager, Rosie Merrell, said the firm decided to move into this area because more services had to be applied for online, including the Government’s new Universal Credit benefits system, which many visually impaired people might need to access. She said typical customers could be individuals who were starting to
● PROPERTY investors are looking to buy into long-term returns from Bristol’s commercial market. The latest deal sees the snappily titled Aviva Investors UK Real Estate Recovery Fund II buy the long leasehold for Wincanton’s distribution depot in Portbury. The £4.3 million deal was brokered by local firm Colliers International. GVA advised the seller, Stobart Group. The property totals 38,000 sq ft on a site of 6.23 acres and is located very close to Junction 19 of the M5 motorway. Wincanton hold the property on a lease with another 11 years to go, subject to a break option in November 2020, paying £380,000 a year in rent. It follows the recent news that Axa insurance group has bought a large stake in Bristol’s Cabot Circus shopping centre. The London property market is widely seen as overheated, making it too expensive for many investors. Instead they are increasingly looking to the regions, with Bristol well-placed in a well-connected spot with a strong economy. Richard Coombs, of Colliers International’s Bristol office, said: “This acquisition provides Aviva with a generous income yield with potential for improved returns as the regional economy grows.” Get the bigger picture. Business news from Bristol, Bath, Gloucestershire and Somerset. Scan to sign up for news direct to your inbox
learn Braille and had the ability to touch-type. But the main target for the product was likely to be housing associations, libraries and other places where the public had access to computers. The keyboard cover could also be helpful for businesses to meet the needs of employees. Susie added; “It’s great that we can assist in making keyboards more accessible in libraries, colleges and internet cafes.” The company, which employs seven people from its Cheltenham Road office, held a launch event at the Gallimaufry in Gloucester Road.
Renewable energy
Solar panels power council centre great example of how solar PV can significantly reduce energy consumption and deliver long-term cost savings. “As a Bristol-based company and with European Green Capital 2015 on the horizon, we’re seeing more and more businesses taking positive steps to reduce their carbon footprints and capitalising on the industry-leading expertise on their doorsteps. “We’re proud to call Bristol our home and to be a part of Bristol’s leading sustainability sector.” Solarsense has been in business for 20 years always based around the Bristol area, becoming a leading renewable company in the region. It grew quickly at a time when more
subsidies were available for solar energy to help the industry get a foothold and now employs about 30 people. It has helped a range of Bristol based customers including Bristol Zoo, At-Bristol, Bristol University and the Tobacco Factory to take control of their energy costs. The firm was recently awarded a £59,000 grant to create a zero-carbon skills training centre. It will use the money, awarded by the West of England Local Enterprise Partnership through its Growth Fund, to build a show home to demonstrate how the latest renewable technology can be integrated into a family home.
● The new resource recovery centre’s solar panels, installed by Backwell-based Solarsense
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A RENEWABLE energy company has installed the biggest rooftop solar panel system for a local authority in the UK. Solarsense has put in 1,248 solar panels – covering an area the size of seven tennis courts – on the building. Unfortunately the customer wasn’t Bristol, but Wiltshire Council. The panels will power its new resource recovery centre converting domestic waste into solid fuel which is in turn used at power stations. But bosses at Backwell-based Solarsense say it shows what the Bristol area can achieve. David Snape, commercial manager at Solarsense, said: “The project is a
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www.bristolpost.co.uk/business
Wednesday, August 20, 2014
Technology
Seeds sown Tech start-ups buzz after meet-up Sammy Payne business@b-nm.co.uk
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HE crème de la crème of Bristol’s tech start-up scene came together to hear from a Bristol business that hit the big time. Around 100 diverse tech businesses and entrepreneurs filled the Watershed to hear the latest investment advice from representatives from Eden Ventures, Tech City UK, Seedcamp, and Bristol business Basekit. The room was buzzing with enthusiastic developers, inventors, and engineers, who took the opportunity to ask the Basekit founders, Richard Healy and Simon Best, how to grow a successful business. Richard and Simon founded Basekit – a website building tool – in 2004. It has since grown into an internationally successful business. Richard talked about the challenges start-ups must overcome in order to succeed internationally, including fighting with your co-founders and retaining control. “Being creative and having the freedom to be creative is important, but start-ups have to think about their business plan, and model. You need to have a business focus to succeed.” BaseKit’s initial success came after winning £50,000 in 2008, through London-based accelerator scheme Seedcamp. Seedcamp has been described as a “Dragons’ Den on steroids” experience. It takes technology start-ups through a week-long business boot camp and exposes them to around 50 influential investors. This was the first time the representatives from London came to Bristol to meet its wealth of engineering and entrepreneurial talent. Many of Bristol’s innovators were keen to know their funding options and wanted advice about how crowd-funding platforms compared to angel investors, venture capitalists, and government grants. Seedcamp director Carlos Espinal said many entrepreneurs are not yet ready to seek funding. “Firstly the founders have to know exactly what their roles are and just
how much they share of the business,” he said. “They should have it written down. Internal arguments can and will rip otherwise successful businesses apart. “To build on that, start-ups have to know their customers. You need to know who your customer is in order to understand them. Otherwise you won’t know how to speak to them and reach out to them.” Silas Adekunle, the founder of Reach Robotics, said he gained “invaluable insight” by forcing himself to view his business through an investor’s eyes. “Talking to the founders from Basekit made me think of the journey that lies in front of my company and the unforeseen changes that may take place,” he said. The robotics entrepreneur, who
“ There is a wealth of knowledge and experience here. Everyone is supportive of the younger companies and willing to nurture them to expand and better the community.”
● Seed investor Carlos Espinal and South West Founders organiser James Routley Pictures: Sammy Payne
Silas Adekunle has developed a gaming robot called the Mecha Monster, is proud to be a part of Bristol’s thriving start-up network. Silas said: “There is a wealth of knowledge and invaluable experience here. Everyone is supportive of the younger companies and willing to nurture them in order to expand and better the community.” Another young entrepreneur working on drones said he was grateful for Bristol’s strong business community. Mathieu Johnsson, 26, said: “I come regularly to these meet-ups to bounce ideas off other entrepreneurs and get good advice. We actually secured our first client through South West Founders.” CEO of The Filter James Routley founded South West Founders in 2010, creating a network of more than 600 inventors, entrepreneurs, and busi-
● Seed investor Carlos Espinal and Silas Adekunle of Reach Robotics
● Richard Healy and Simon Best of Basekit at the Seedcamp event at the Watershed in Bristol ness professionals. James arranged the event and invited the Seedcamp hosts across from London to meet Bristol’s start-up talent. James’ goal was to help budding entrepreneurs connect with investors and like-minded people. James said: “It’s a rare opportunity to mix with people that have a similar mindset. Entrepreneurs can come together to share problems and hear
● Designer Chloe Meineck
from people who have been there and come out the other side. It’s a good place to get trusted advice. “We’re open to undergraduates, young people, older people, investors, entrepreneurs; anyone with a good idea. Just not people who are selling services.” Paul Masri, who is a project manager at Simpleweb, said meet-ups like this advance business in the local
area. “I came to a meet-up with South West Founders over a year ago and chatted to James about an idea I had for a business,” he said. “He shed some light on the fact the idea was too easy to copy, so I killed it. But, that night I started chatting with someone from Simpleweb. I sent them a follow-up email and it turned out he was the director and they offered me a job. I started a week later.”
● Katy Turner, marketing officer at Tech City
www.bristolpost.co.uk/business
Wednesday, August 20, 2014
7
The Big Interview
DELIVERING SUCCESS FOR REGION As the organisation responsible for steering the area’s economic growth moves into a new phase – delivering on its promises – Gavin Thompson meets its new chief executive, Barbara Davies, to discuss the challenges she faces ahead
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Vital statistics Name: Barbara Davies Age: 58 Position: Chief executive of the West of England Local Enterprise Partnership From: Liverpool but moved to Bristol in 1990 First job: Research fellowship at the Polytechnic of Central London (now the University of Westminster) on planning and transport. “It was my way to get to London.” Working day: I spend my time managing a team of people, working closely with partners and government officials and reporting the LEP board.
together their ambitions and their visions.” Barbara has brought partners together to deliver big projects in the past, including transport improvements for Bath and Weston-super-Mare, bus projects in Bristol and funding for the proposed Metro West suburban rail network. It may be no coincidence that these projects have secured the biggest slices of Government money in recent years.
She said: “The strength of the local enterprise partnership is the bringing together of a range of partners with common aims about growth and creating jobs so for me a large part of the job will be working with the partners and that includes the four councils, businesses, universities, colleges. “It’s about getting to the added value of working together and presenting strong messages to government. We have a strong story in the West of England.” The LEP put its economic plan to Government in April. Although she wasn’t in charge of the body at that time, she was the senior officer coordinating the plan, so the change in leadership won’t mean any change in goals. “I was very involved in the plan,” she said. “This was the first time we had brought a strong story about what the West of England could deliver to Government. “My focus now is to make sure we get those projects lined up ready to be delivered and spend the Government money.” In terms of style, Barbara wouldn’t comment on how she might differ from her predecessor. “All I can talk to you about is what I will do,” she said. “I am clear I have been brought in and will work to deliver what we said to Government.”
“ It’s about getting to the added value of working together and presenting strong messages to government. We have a strong story in the West of England. Barbara Davies But while the focus is on delivering projects that have had funding – ranging from a tidal blade testing centre to a world-first faster broadband network good enough for high tech R&D work – the door is not closed to those schemes in the LEP plan that missed out on money, such things as expanding the Bristol and Bath Science Park. “The projects we didn’t secure funding for are still very important, they are in our plan and we are exploring ways of securing funding for those,” said Barbara. “They were endorsed by the board and we are starting to have discussions about securing funding for those as well and putting together strong business cases. One thing the LEP can do is look at the different initiatives and advise people of possible funding streams, whether government route
or European route.” There is a backdrop of political uncertainty in Barbara’s role. With a general election next year, the future government could make big changes to the LEPs. Barbara won’t be drawn into “speculation” as to what the role or shape of LEPs will be after May, but she does believe they have a future “I think the LEPs will be here to stay from what we have heard, but to understand the role going forward and funding, we just need to wait and see as the parties all have slightly different statements,” she said. While keeping a “watchful eye” on developments, Barbara said the best thing was to “demonstrate we are a very effective LEP and that we can deliver”. “Actions speak louder than words,” she said.”Writing policy documents is one thing and it’s very important, but if we really want the West of England to fulfil its potential, and we all believe it has huge potential, it’s by delivery and delivery across partners that will demonstrate to Government that it’s a good decision to invest in this area.” And how will she measure success in her role? It’s no surprise that it will be what is delivered. She said: “By next summer I would like to see that all the projects have kicked off, are spending money and making progress.”
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O say it’s been a hectic period for the West of England Local Enterprise Partnership is something of an understatement. The body, which is responsible for coordinating and leading steps to create jobs and prosperity across the region, has had its hands rather full. First it had the small matter of £25 million of grants to hand out to local businesses, a huge task for what is actually a very small organisation with just a few staff. Following that was the job of pulling together the strategic economic plan – a blueprint for growing the local economy and a business case for government investment in it. Then just before the Government was due to announce levels of funding, the LEP’s chief executive Paul Wilson left suddenly to take up a role at Bristol City Council. Now the organisation has appointed his successor, Barbara Davies. The 58-year-old takes on the role as the LEP moves into a new phase, having secured Government cash for some of the projects outlined in its blueprint, the focus shifts to delivering them. Barbara is seen as a safe pair of hands. She’ll need to be. One of her tasks will be managing the sometimes fractious relationship between the four local authorities which make up the West of England – Bristol, North Somerset, South Gloucestershire and Bath and North-East Somerset. But Barbara says the relationship is strong. “The three leaders and the mayor sit on the LEP board and everyone involved in the board would see the benefits of working together,” she said. “Any partnership is going to have debates and consider issues and that’s one of the roles of the LEP is to do that brokering of the different groups to get a consistent story. “A lot of what the LEP is trying to achieve is about getting money to the West Country and to do that we need to work together. We need to discuss issues and we need to find commonly agreed solutions, like any partnership.” “Partnership” seems to be Barbara’s favourite word. Followed by “delivery”. No doubt she would say that the former leads to the latter. Her background is in the public sector, she was worked for the LEP for the past three years but held numerous public sector roles before that. But she says her background is credible to business people. “Although my career has been mainly in the public sector, I have worked with businesses in partnerships,” she said. “I am familiar to the business community in the West of England. Developing the strategic economic plan was working very closely with businesses as we drew
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Special report: Cyber security
IT’S MORE IMPORTANT THAN EVER Small businesses are being told to ramp up their cyber security but experts say the biggest threat is not hacking but human error. Sammy Payne reports
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F the new EU General Data Protection Regulation comes into play next year, as expected, Bristol’s businesses will have to brush up on their data protection measures or face a hefty fine. According to a recent study by Skyhigh Networks, surveying 7,000 cloud service providers, only one out of 100 met the new regulation’s guidelines. This should be an alarming figure for businesses, as businesses that leak customer data, even if hacked through criminal activity, can face a fine of up to one hundred million euros. Alison Deighton, who heads law firm TLT’s data protection team, said she often comes into contact with businesses which don’t know what’s required of them legally. “Awareness of data protection risks is rising but many businesses still
“ Cyber threats are very real and businesses need to be aware of the areas where they are most at risk and take steps to mitigate those risks.
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Alison Deighton lack awareness and are under-resourced in this area.” “But, cyber threats are very real and businesses need to be aware of the areas where they are most at risk and take steps to mitigate those risks.” After advising hundreds of businesses on data risks, Alison said it’s clear that data protection is often being left to the IT team. However, all areas of the business need a good understanding of the risks. “Data protection is not just about having good technical security measures in place.” “It’s also about ensuring that your staff is given clear guidance and training on the risks and the procedures they need to follow to reduce those risks. “You can have the best security measures in the world but if one of your staff inadvertently provides their log in details to a third party, all of those security measures will instantly be bypassed.” Data leaks are often due to human error and not through online hacking, according to Alison. This commonly happens by people forgetting their phones and laptops on trains, for example. “Many data security breaches are due to human error, for example, somebody sending an email to the wrong recipient or using an unencrypted mobile device that gets lost or stolen.” Alison thinks factors such as lack of time and money prevent small and
Case study
Don’t let it get in wrong hands ● VOUCHERCLOUD is an online discount service that was launched in 2010. In just four years the digital Bristol business has grown significantly. The company now has 150 staff across three countries that help well over two million people access discount codes for high street shops and restaurants, per month. With more than six million app downloads, protecting a mass of user data is no mean feat. Roja Buck, the chief architect and technical department head at Vouchercloud, explained how the company prevents hackers accessing their users’ data. “We follow strong internal security policies which include everything from symmetric encryption through to regular penetration testing.” “With our new product Giftcloud, we have to store digital gift cards for our users, so substantial investment was made into building proprietary technology to protect our customers data from attack.” According to Roja, storing user data is incredibly important to Vouchercloud’s market success. Without it the company couldn’t create targeted and compelling content for its particular customer base, so it takes data protection seriously. Roja said: “We need to maintain data about that user and that user therefore, explicitly trusts us with information which they consider private. “We take that trust as a fundamental pillar of our business, as without it we can't possibly hope to deliver a market-beating product.” Part of keeping that trust with their customer base meant
keeping their customers’ data “utterly segregated” from Vodafone, which became a shareholder in 2011. Vouchercloud must comply with the data regulations of each country it operates in, so that means investing time into researching relevant data laws. “Our policies have to meet international requirements,” said Roja. “The most important data is anything directly related to our users, personal identifiable information or ‘PII’ as it is known. Extra protection has to be taken around transmitting and storing such details.” Roja, like the experts, thinks the best form of data protection is tactical prevention. “The most important thing is to safeguard our systems from attack so that data does not get into the wrong hands in the first place. It is a complex issue and is a field that changes and becomes ever more important as we adopt technology deeper into our lives.” Roja has been a part of Vouchercloud for over two years and watched as the business went from 25 to 150 staff. For small businesses and start-ups hoping to go global he advised: “Read the legislation in all countries you do business, as data laws can be significantly different across the world. “Make security a unique selling point of your product and follow best practices in storing personal identifiable information. “Lastly, security is only as strong as the weakest point, make sure your data is physically secure as well as digitally secure by using a reputable hosting provider, such as Amazon web services.”
medium-sized businesses from being totally secure online. “It can be difficult for small businesses to obtain affordable technical expertise to ensure that they are taking the right measures to protect data online,” she said. “Once businesses have identified the measures they need to have in place they will need to find suitable products from reputable suppliers.” “It can be helpful to use a technical consultant with data security expertise to assist with this process.” The data protection expert urged business owners who don’t understand the risks of storing and transmitting data to go online and research the Information Commissioner, who regulates the Data Pro-
tection Act. “It’s an easy place to start.” she said. Chris O’Connell, pictured inset right, an associate at Burges Salmon’s and an expert on data protection, said collecting and storing data can be a real struggle. “Businesses are collecting more data than ever before. As a result, businesses of all sizes can often struggle to get to grips with the full extent of their legal obligations and how best to manage the processing and security of data within their organisations. Businesses often fail to realise the risks to data security within their business that are posed by their everyday ways of working.” Chris said business owners need to
strengthen their policies on exactly who in the business has access to customer data. If a handful of employees, rather than many, are trained on how to protect data, the risk of a leak is far less likely. Although businesses risk a heavy fine under new regulations if they leak customer information, it’s the harm to the individual that worries Chris. “Data security breaches can cause serious harm and distress to affected individuals.” Individuals who have been affected by data leaks have experienced, threats of violence, mortgage fraud and fake credit card transactions. Nello Cristianini is a professor of
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Wednesday, August 20, 2014
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TO KEEP CUSTOMER DATA SECURE Case study
We prepare for online attacks by constantly expecting them
trolling what can be done with our personal data.” Nello thinks the new EU data directive is not sufficient enough when it comes to regulating how businesses mine and use data. “My own concern is not so much about the risk of this data being misused as a result of leak or theft.” “My problem is: what are data-holders allowed to do with the data they have lawfully collected. “In Bristol, I have been asked to give personal information, for example my address, even to get a hair-
cut or to buy a goldfish.” The academic wants businesses to think about the data they’re gathering and storing and question whether they actually need it. When researching this article I came across a number of small businesses that had no idea about data protection and what was legally required of their business. When I told this to Bristol’s data experts they were unsurprised and said they frequently came into contact with businesses that were unintentionally breaking data laws. If you are a small business seeking awareness about data protection, please visit the information commissioner’s office online.
everything is completely secure, you will stop checking that it is.” “The attacks we get are usually automated, looking for exploits that exist in other software products. “Others are usually trying to find what kind of information we might store. This is why we don’t store any ‘candy’ data, such as credit cards or information, which could lead to direct financial gains, even though we have e-commerce functionality for our clients.” Neetrix decided not to store its customers card details even though they could do so securely. “It’s a choice we make for added security,” he said. Adam said he had to make cyber security one of his greatest priorities after hearing one too many data horror stories where sensitive customer data had been stolen. “It happens all the time unfortunately, especially with phishing attacks. The most interesting one that comes to mind is a business who dealt with a lot of data that decided to keep everything on premise, on their own servers.” The business went through a lot of effort to secure their customer data, according to Adam. Even hiring a security team to try to hack their servers. The security team did manage to breach the businesses servers, but it wasn’t through an online attack. A member of the team simply posed as a technician and tricked a receptionist into giving him access to ‘fix’ the servers. “He walked directly to the server room and downloaded the databases on to a USB memory stick and walked back out.” “Just goes to show, ignorance and complacency will be the greatest security threat in a business.”
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Artificial Intelligence at the University of Bristol and has expertise in ‘big data’. For Nello, data protection is of huge importance, he said: “It is concerning if a business is not aware of its obligations as a data holder, but there are laws about this.” All businesses, no matter the size, should know and follow the law. But, the professor has concerns about data use within the parameters of the law. “Once businesses follow all the laws, there are still serious problems. I do not think our laws are adequate yet, when it comes to con-
● AS A cloud-based business that supports hundreds of small businesses with their online software, Neetrix must take action against cyber threats as soon as a concern arises. The growing internet business, based in Bristol, is comprised of six employees that help other small businesses with their customer relationship management systems. Adam Saunders, founder and CEO of Neetrix, said the most problematic threat to his business was not software based, but user based. “Software is really good at following instructions, that’s the nature of it. It’s easy to solve a problem when it’s found. People are very different,” he said. “It’s far easier for a hacker to gain access to information by tricking a user into providing it, than directly attacking the software.” This type of attack is called phishing and is the hardest type of attack to stop because it’s the end-user that unintentionally makes themselves vulnerable. It works by unsuspecting people logging into fake websites, which are made to look exactly like the original, using their email address and password. Tricking people into handing over their online details by email is the most common attack, however there are still targeted attacks using phone calls and even letters. The most alarming matter, according to Adam, is the fact phishing “doesn’t require a lot of technical knowledge like hacking does, and it can unfortunately be far more effective”. Adam says Neetrix prepares for online attacks by constantly expecting them. He said: “The moment there is complacency, when you think
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Business diary Wednesday@6: Institute of Directors informal networking at the Radisson Blu Hotel 6-8pm, Wednesday, August 20. Non members welcome. Free but to register call 0117 3707785 or email iod.southwest@iod.com. Set.Social: Networking for the creative industries held on the first Wednesday of every month to facilitate collaborative working amongst like-minded creative professionals, many of whom work from home as freelancers. At The Set, Bath Road Studios, from 6pm, Wednesday, September 3. Access to Growth Capital: The London Stock Exchange and Capita Asset Services are organising this event to help fast-growing SMEs understand how they can get money to grow. From 2.30-6pm on September 9 at Burges Salmon offices, 1 Glass Wharf. Register at http:///www.lseg.com /register1000. Institute of Directors Bristol branch Autumn Special Held at the University of Bristol Botanic Gardens with Martin Bigg from the Bristol Green Capital Partnership, Tuesday, September 9. Check www.iod.com/swestevents for more information and to book. Triodos annual meeting: A chance for people to find out more about the bank. Speakers from Triodos will be joined by Patrick Holden of the Sustainable Food Trust, Kids Company founder Camila Batmanghelidjh and Jeremy Leggett of Solarcentury. Saturday, September 13 at Brunel’s Old Station, Temple Meads, 10am to 4pm. Introduction to Bloodhound SCC: See the latest developments behind the supersonic car and learn about tax relief for research and development at this event organised by Chantrey Vellacott. At the Bloodbound Technical Centre, Avonmouth, from 4.30pm-7pm on September 17. The Bristol Business Exhibition: The exhibition attracts business owners and decision makers from across the region and is a great way to source suppliers and generate new business. It takes place at Ashton Gate Conference Centre from 10am to 3pm on Tuesday, September 30.
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Growing your business into a winning brand seminar: Gregg Latchams and ActionCOACH Bristol & North Somerset host an event with guest speakers including cheese maker, Todd Trethowan and Chris Head of the West of England Rural Network, who will talk about creating and marketing a successful brand and how to grow a food business in the current climate. To reserve a place, email to kayleigh.groves@greg glatchams.com. October 1, 10am-1.30pm, Puxton Park. 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.
Wednesday, August 20, 2014
In pictures - Bristol Connected
A GOOD YEAR – NOW CITY Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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T has been a good year for Bristol’s visitor economy and the city is well placed to push on to greater things in future. That was the message to businesses attending Bristol Connected. Destination Bristol chief executive John Hirst told the event, which is a business networking evening run by the Bristol Post, that 2013 had been a good year. He highlighted street art and the Gromit Unleashed! trail as among the biggest draws for visitors and said next year’s European Green Capital status was a big opportunity. “We are the first UK city to hold this title and it really is whatever we make it,” he said. The networking event, which is held every other month in a different venue, was hosted by the Bristol City Centre Hilton Garden Inn, Temple Way. General manager Kevin Byrnes told the audience 2014 had been good for business with corporate bookings on the rise, meaning mid-week occupancy levels were strong. But he said he would like to see more done to bring in weekend visitors, such as higher profile events. “Bristol has so many fantastic events that bring in lots of people from the local area throughout the summer,” he said. “But really only the International Balloon Fiesta brings in people from further afield.” Final speaker Johnny Palmer, director of events production firm SXS Events, said the city needed more exhibition venues – something which the long awaited arena will deliver. “People come for the knitting conference and stay for the weekend, seeing all the great things Bristol has to offer,” he said. Johnny said his firm worked at the top end of the market and most of the jobs were in London, but the company stayed here because of the quality of life the city offers. “We earn our money in London and spend it in Bristol,” he said. Around 60 people packed the free event at the hotel’s City Cafe. ● If you would like to sponsor or host a future Bristol Connected event, please contact Gavin Thompson by emailing gavin.thompson@b-nm.co.uk.
● The Bristol Connected event at Hilton Garden Inn
● John Hirst of Destination Bristol
● Helen Sanders of Wingrove Taylor Ltd, Rachael Glendinning, and Sam Gooby of EE BRML20140814F-009
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Photos: Michael Lloyd BRML20140814F-005
● Kevin Byrnes, Hilton Garden Inn
● John Hirst, Jendayi Serwah of Noble Trading Associates, Hussain Bayoomi of Local World BRML20140814F-013
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● Daphne Marinopoulos of The Fibre Co and Alison McDougall of Cuddle and Cwtch Ltd BRML20140814F-010
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Wednesday, August 20, 2014
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PUSHES ON TO GREATER THINGS ● Suzan Uzel and Lucy Doyle of Spirit PR
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● Ruth Taylor of Immix Media, and Linn Waite of Early Day BRML20140814F-003 Films
● Linda Hickton of PSL Structural Projects Ltd and Viv Pole of BRML20140814F-012 VSM Ltd
● Chris Young of Radisson Blu, Inge Dowden of Inge Dowden F-002_C Coaching, and Kate Hemmings of Hilton Garden Inn
● Carol Prince of Jordans Ltd, Nicola Padden of City BRML20140814F-008 Sightseeing
● Dan White and Karl Hudson of Stannah Lift Services Ltd BRML20140814F-011
● Johnny Palmer of SXS Events speaking at the Bristol Connected event BRML2014 0814F-023
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The back page
Your digest of the week in business
People ● The recovery of the commercial property sector is reflected in a number of new appointments this week. DTZ is expanding its Bristol investment agency team with the appointment of Hollie Ruddle as association director. She will be providing disposal, acquisition and asset management advice across a wide range of commercial property as well as strategic analysis for real estate property companies, funds, institutions and individuals, joining from LSH. Nick Allan, senior investment director, said: “DTZ’s increasing pool of core clients are seeking our assistance as the demand for investment opportunities continues to increase. Our relationships with both occupiers and investors ensure that we are well placed to advise on a wide spectrum of investment opportunities.” ● Property adviser CBRE has made two appointments locally. Robert Moran has joined the firm’s valuation consultancy team as a surveyor, following four years at GVA and after qualifying as a chartered surveyor last year. Robert said: “My time at CBRE will be spent working on the investment valuation side. I will be responsible for looking after a number of properties on behalf of institutional investors such as Threadneedle, Legal & General and Aviva, which in light of the improving UK economy and investor sentiment means exciting times ahead for the team.” The firm’s other new recruit, Marcus Hutchings, has joined its property asset services team as senior surveyor having previously worked for Workman LLP. Marcus will work with CBRE’s largest client, M&G Real Estate. Marcus said: “This is a great opportunity for me to manage some of the best properties in the South West, a role that was previously based from London. I intend to use my local knowledge of the market to enhance the property and asset management service provided to M&G.”
● Above, Garry Hicks, Robert Moran and Marcus Hutchings of CBRE; right, Hollie Ruddle of DTZ, Jessica Dabrowski of Lambert Smith Hampton, and Simon Young of Tuffin Ferraby Taylor ● And Lambert Smith Hampton (LSH) has strengthened its building consultancy team in Bristol with the appointment of a new graduate building surveyor. Jessica Dabrowski joins the national commercial property consultancy as the firm looks to grow, having won a number of new clients in recent months. The University of Reading graduate, who attained a first class degree in building surveying, has moved to LSH from Cushman and Wakefield in London. Cathy Knutsen, director of LSH’s building consultancy team in Bristol, said: “It is wonderful that we are able to take on additional staff to cope with demand and continue to provide the high levels of service for which we are known.” Jessica said: “I was keen to move to a company that had a national reputation for excellence and that would support me as I develop my skills and qualifications in building surveying.” ● Independent building and property consultancy Tuffin Ferraby Taylor has hired Simon Young as a senior building surveyor at its Bristol office. Simon moves following six years
working at TFT’s office in the City of London, reflecting increasing demand for sustainability and project monitoring work in the South West. Turnover and fee income for the Bristol office has grown by 25 per cent over the last year and Simon’s arrival will help support this growth. Partner Paul Spaven said: “Improvements in the commercial property market are no longer confined to London and we are seeing increasing demand for our services across the UK, especially in the South West. “With Bristol set to be European Green Capital for 2015, we expect particular growing interest in sustainability, where Simon’s skills and experience will be a valuable asset.” ● But it’s not just in property where there is growth. Bristol-based retails support services specialist eXPD8 has promoted its first apprentice to
a full-time role. Issy Player, who lives in Oldland Common, and is a former pupil of St Brendan’s College in the city, undertook her apprenticeship with KTS Training and has been an account administrator at eXPD8 for the last 12 months. Now she will take up a full time role in the account administration team serving the company’s health, beauty and cosmetics sector clients. She said: “I’ve thoroughly enjoyed my apprenticeship and have gained a wide range of skills by working with other team members and shadowing more experienced staff. Being offered a full time job is brilliant and proves just how invaluable apprenticeship schemes are for all concerned.” ● Two local solicitors and a law firm are finalists in the Law Society Excellence Awards 2014. Beverly Watkins, of Watkins Solicitors is shortlisted for Legal Business Woman of the Year. Ligia Bob of TLT is up for Junior Lawyer of the Year. TLP is also shortlisted in the group category Excellence in Diversity and Inclusion. The finalists for the Law Society The winners will be announced at an awards ceremony on October 9 in London. TLT also announced it is retaining all of its final seat trainees as newly qualified solicitors this autumn. Oliver Coad, Teri Galati, Jack Hargreaves, Kate James, Joanna Newton and Claire Pitcher have all accepted permanent roles at the firm after completing their training contracts. The firm’s trainee principal and partner Richard Hayllar said: “The success of our trainee programme is a critical part of delivering for our clients and we therefore continue to look at ways to improve and develop what we offer in partnership with our trainees.”
Medium-sized firms – the dynamo for growth
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1.6 2.5 0.6 0.5 3.99
Inflation (RPI)
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Allister Weir Head of tax Grant Thornton, South West
businesses in driving the economic recovery is clear – but it is not being sufficiently acknowledged and encouraged. That is why Grant Thornton, in conjunction with the CBI, has drawn up a series of proposals in our ‘Agents of Growth’ report aimed at helping them, including tailored support for medium-sized businesses, further work to tackle the skills shortage and boost apprenticeships, and recommendations to increase access to finance. Of course it is not one-way traffic. There is much medium-sized businesses can do to help themselves if they are to compete with the likes of Ger many’s ‘Mittelstand’ – for ex-
ample by trying to forge a stronger collective identity, to think big on exports and take advantage of high growth economies in the Middle East and Asia, and to be more imaginative when it comes to exploring a wide range of finance options. But there is one area in which only Government action will suffice – tax. Our research with the CBI has found that the UK tax system is hampering MSBs’ growth by disrupting their cash flow, absorbing valuable management time and dampening export ambitions. These businesses tend not to have the resources that large ones have to help them navigate complex tax rules, nor do they receive the targeted support that the Government directs at small businesses. Therefore we are calling on the Government to make a series of changes to the tax system to put this
right: ● raise the threshold for the Quarterly Instalment Payments system from £1.5 million to £5 million ● change SME R&D tax relief to allow all growing businesses to benefit as long as they do not have a controlling investment stake from a larger company ● raise the threshold for exemption from transfer pricing rules from firms with fewer than 250 employees to firms with up to 500 employees ● roll out HMRC proposals to provide a designated named official to the largest MSBs, on a demand basis, as soon as possible and in the meantime improve digital communications through emails and live chats Medium-sized firms are the dynamo for growth in this country. If we are to achieve our aim of growing the economy in the medium and long-term, we must prioritise this segment of business.
% % %
%
Ave mortgage rate % Corporation tax % Main rate
21
Small profits rate – below £300,000
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%
Business current accounts
1.01% State Bank £10,000 deposit of India 0.25% £1 deposit
Business savings accounts 1.8% Cambridge & Counties Bank £10,000 deposit Shawbrook Bank
The op-ed column
E are used to hearing and reading about the efforts of the UK’s small businesses, and at the other end of the scale, its large corporates. Both are rightly lauded for their respective contributions and both have their own well established support network. But what of the ‘forgotten middle’, the thousands of mid-sized businesses (MSBs) whose contribution tends to be overlooked? There are approaching 3,000 of these MSBs – broadly defined as those employing between 50 and 500 people – in the South West alone. They employ more than 300,000 people in the region and were responsible for a combined turnover of over £34.5 billion last year, often outperforming their smaller and larger counterparts in relative terms. The importance of medium-sized
In numbers Inflation (CPI)
1.4% £5,000 deposit
Source:
Petrol prices .71p
129 133 138 69
Unleaded
.94p Diesel
.61p Super unleaded
.38p LPG
Source: PetrolPrices.com