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BUSINESS RATES
TIME TO GET BUILDING
BUSINESS FINANCE
Rates expert backs our campaign for reform – page 2
Why we need a less selfish view on new homes – p6&7
The changing ways of funding your business growth – pages 8&9
24 SEP
2014
SCREEN TIME
PARENTS’ SAFETY NET A GLOBAL HIT Meet the dad whose app allowing parents to control their children’s smartphone screen time is proving popular around the world – Page 5 EPB-E01-S3
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www.bristolpost.co.uk/business
WHAT ARE BUSINESS RATES? ● Business rates are collected by local councils but the money goes to the Treasury. They are paid by occupiers of business premises. If the property is empty, the owner or leaseholder will still pay the tax after the first three months (six months for warehouses and industrial sites). Rates are based on the rateable value of a property, this is the figure the property could have been let for on a set date, the current date being April 1, 2008. It should be re-done every five years, but this is now overdue. You can appeal this valuation if you think it is wrong. The valuation is raised in line with retail price inflation. The rateable value, set by the Valuation Office Agency, is used to work out your rates bill. Your local council works out your bill by applying a government-set multiplier (currently 48.2p in the pound) to the rateable value, then subtracting any relief you are eligible for, such as small business relief. So if your property’s rateable value is £26,000, then 26,000 x 0.482 = 12.532. So your rates are £12,532. Unless you are entitled to any relief.
WHAT’S WRONG WITH RATES? ● BUSINESS rates are linked to RPI, which is seen as an unpredictable measure of inflation. ● Property values are out of date and don’t follow the market. When the economy crashed, rates didn’t fall with it making them a heavy burden on business in hard times. ● They discourage expansion and investment. Rates discourage firms from taking on more space because their tax bill goes up even if profits don’t. ● They discourage retailers from taking the step onto the high street and penalise bricks-and- mortar against online competition. The result is empty shops and offices.
WHAT SHOULD CHANGE? ● Greater local control over how rates are spent so they can be used to encourage more investment and job creation. This happens to a small degree around enterprise zones, such as Temple Quarter, and is being used to help fund the Bristol Arena, but should become the norm. ● A simpler system that small businesses can understand. ● Break the deterrent to expansion. One way this could be done is by replacing rates with a local sales tax.
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SIGN THE PLEDGE ● We are calling for business leaders, owners and entrepreneurs to sign-up to our call for business rates reform. Simply go to www.bristol post. co.uk/business
Wednesday, September 24, 2014
Business rates
Rates reform System has to be more transparent Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
● John Hirst, Destination Bristol: “For many years now we have listened to retailers, both existing and potential occupiers complaining furiously about business rates. Empty stores simply do not help anyone.”
● Ben Batchelor-Wyman has backed our campaign calling for a review of the rating system
system should be more collaborative and transparent. “If a rateable value is considered to be wrong valuers within the Valu-
ation Office Agency should be encouraged to undertake accurate and speedy change so that rate payers don’t end up spending more than they have to, for any long than they have to. “The appeals process is far too defensive. “Businesses are continuing to feel the effects of the most extreme trading environment in living memory. If their costs, of which Business Rates form an increasingly significant part, remain disproportionately high, this represents a major obstacle to their future success and the success of Bristol as a whole. “That’s why we welcome the Real Rates Reform campaign and encourage all businesses to take an active role in the debate.”
Rate summons for one in five firms MORE than one in five businesses in Bristol were summonsed to appear in court after falling behind on their business rates last year. The figures show 3,378 business premises out of 15,046 in the Bristol City Council area were taken to court. The figures were obtained in a freedom of information request by national retail campaigner Paul Turner-Mitchell, pictured. The level of businesses being summonsed has increased by a massive 57 per cent since the last General Election in May 2010, when just 2,149 businesses were taken to court. Paul said: “I am left in no doubt business rates need to be looked at more holistically within the overall context of the economy and other
● Matthew Lea, managing partner at Bishop Fleming: “The Government is expecting the recovery to be driven by the small business sector, but that potential for recovery is stifled by the iniquities of business rates – the only tax that is index linked and guaranteed to rise, irrespective of how a business is performing.” ● James Durie, executive director of Business West: “This is a tax that hits companies of all sizes long before they a make a profit, and acts as a drag on business growth and investment.”
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USINESS rates specialists from Colliers International have welcomed the Bristol Post’s campaign calling for an equitable and transparent review of the rating system. Ben Batchelor-Wylam, who has argued for greater business rate reform for rate payers across the West, highlighted the fact that many businesses find making sense of their rates difficult so the Post’s campaign to review all aspects of the rating system had to be a good thing. He said: “Businesses across the city have been crying out for an effective platform to have their voices heard. “Efforts to date have fallen on deaf ears and the ever increasing burden from business rates is causing a ‘make or break’ issue for many. Bristol City Council’s budget has been slashed and so on the one hand local government is sharing the pain felt by many and yet, for those having to pay business rate bills, the cost has continued to rise.” Ben has been closely involved with Bristol businesses, having run a series of free business rates advice clinics. Having listened to what businesses have to say, he said there are common themes. “The traders we talk to are clearly concerned with the overall direction of travel and the relentless increase in costs in spite of numerous concerns being raised,” he said. “For instance, businesses want to know whether there will be a cap in business rates next year, particularly, if they’ll no longer benefit from transitional relief. “They also want to know what is being done to undertake a thorough and inclusive review of the system before the anticipated 2017 revaluation. “They don’t want a tinkering around the edges and they do want their concerns taken seriously.” “We welcome Bristol Post’s campaign to open the issue to wider debate and scrutiny whilst also creating an opportunity for many of Bristol’s diverse businesses to come together.” He concluded: “I believe the rating
SUPPORTERS
taxes and not simply as a guaranteed revenue stream. We need to fully understand the impact of business rates on business decision making processes not just for retail but as a whole. Could lower business rates act as a catalyst to drive growth and create additional employment? “Would those additional taxes compensate for any loss in revenue for business rates?” The council collects business rates locally on behalf of the Treasury and was given an allowance of £720,617 to collect the rates. In addition, the council recoups £100 for the cost of each summons issued. Paul says this means the large numbers lead to the council collecting an additional £337,800.
● Rebecca Tregarthen, chairman of the Bristol Institute of Directors: “The postponement of revaluation means many business are now paying the wrong rate. “I am also in favour of examining the relationship between central and local control.” ● Johnny Palmer, SXS Events: “Business rates are one of the many taxes and pieces of red tape that slow down growth and limit how many people can be employed.” ● Jayne Smith, director of Rapport Digital Marketing in Brislington: “The ongoing success of our economy depends on the success of small and fledgling businesses, who receive little or no tax incentives of breaks.” ● Dan Molloy, managing director of recruitment firm Colston Consulting: “Business rates are outdated and an additional cost to new businesses that brings no return on investment or tangible benefit.” ● Kevin Seager, director of Kingswood lettings agent Martin & Co: “Business rates are unfair and we get nothing in return. “We have to pay for our own rubbish removal so what do we pay for?”
www.bristolpost.co.uk/business
Wednesday, September 24, 2014
Technology
3
Property
Aztec West buildings sold for big profit
● Barry Roche
● A PROPERTY investment firm has sold two neighbouring grade A office buildings in Aztec West for £6.54 million after buying them for just £2.35 million in April. That’s more than £800,000 profit for each of the five months for which Equity Growth Partners owned Cascade One and Two. The firm bought the buildings from receivers but have now since been let to Protection Group International, which has opened a cyber crime prevention training unit (see left). Matt Eves of Equity Growth Partners said: “This was a particularly significant deal for us as a firm as these buildings represented the first large acquisition we had made for ourselves. We refurbished the
properties and negotiated the surrender of the lease from the existing tenant before securing a new tenant for the 40,000 sq ft.” The sale to Hawkeye Properties Ltd reflects the improving market in Bristol. Matt added: “The property market is definitely changing and this deal will enable us to continue to grow our own portfolio.” JLL acted on behalf of Equity Growth Partners on the acquisition and sale. Olly Paine, head of its South West capital markets division added: ‘‘Our clients showed what significant returns can be made from commercial property investment by hands on-asset management and proactive agency.”
● Brian Lord OBE, managing director for Cyber at PGI; Karen Bradley, Minister for Modern Slavery and Organised Crime, with Vice Admiral Sir Tim McClement KCB OBE, chairman of PGI, during the live hacking demonstration
World first £5m centre leads fight against cyber crime Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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WORLD-first training centre for cybercrime fighters opened in Bristol today aiming to help businesses government agencies and even police forces keep ahead of this growing
“ To stay one step ahead of the cyber criminals, we need to ensure enough people in all sectors of the economy have the right skills to understand and take action against the threat they pose. Organised Crime Minister Karen Bradley
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threat. The centre, run by Protection Group International, was opened by Organised Crime Minister Karen Bradley, who said it was a “major step forward” in the ongoing fight against cyber crime. She said: “To stay one step ahead of the cyber criminals, we need to ensure enough people in all sectors of the economy have the right skills to understand and take action against the threat they pose. “PGI’s innovative training facility is an excellent example of how British know-how and capability can help governments and businesses around the world protect themselves in cyberspace.” The £5-million centre in Aztec West is the first of its kind and already employs 50 people recruited from specialist fields. Chief executive Barry Roche told the Post Bristol was the perfect site for its new facility. “Bristol rose to the top of the shortlist very quickly because of the talent pool in the South West,” he said. “Bristol has a long technology heritage as well as fantastic transport links. It is the right place.” Customers range from large corporate firms to public sector organisations such as councils and police forces and foreign gover nments. The 4,000 square metre facility includes three classrooms and a dedicated network, giving people the chance to work in a so-called sandbox – a safe environment where they can play around without fear of damaging their own network. Barry said training courses for IT and cyber
security professionals are “very technical”. But there are also courses for chief executives and board members, with facilities to host board meetings on site at the same time. He said it was often at the highest level of an organisation that awareness and understanding of cyber crime was lowest. “The need for organisations to protect themselves against cyber crime has never been greater,” he said. “Regulators, customers and employees all expect their data to be kept secure and the burden of accountability rests squarely with those responsible for maintaining that security. “Whether you’re a board member, IT manager or IT professional, ensuring that you’re not the weak link when it comes to cyber security is a business-critical issue.” Barry is a former Royal Marine while managing director Brian Lord is the former deputy director of Government listening base GCHQ in Cheltenham, where he ran the intelligence and cyber crime operations. Brian said the threat was as much the people as the technology. “Attackers exploit human vulnerabilities and the weaknesses inherent in IT systems and infrastructure due to human errors in coding, design, maintenance or procurement,” he said. “Consequently, a strong cyber security programme should also consider human factors from the vulnerability of the systems’ users to the motivations guiding attackers.”
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www.bristolpost.co.uk/business
Planning law
Wednesday, September 24, 2014
Engineering
Logistics
Final call to have say on planning changes
First-class delivery firm scoops award
● LANDOWNERS and developers that could be affected by the proposed changes to the planning system have little time left to have their say. Marcus Plaw, pictured, planning director at property consultancy Lambert Smith Hampton’s Bristol office, said it was crucial companies should seize the opportunity to make their views known before the government consultation ends on Friday. It follows the Government's commitment to the reform of the planning system by cutting red tape to expedite the planning process and in turn boosting the economy. Planning rules have already been changed to allow more office buildings to be converted into flats under permitted development. The current consultation, which began in July, covers neighbourhood planning, housing and town centre development, application process improvements, planning conditions, environmental impact assessment and amending development consent order procedures. Marcus said: “With the deadline fast approaching, anyone who could be affected should be aware of the suggested changes and seize the opportunity to make their views known. Any further loosening further of permitted development rights will be received differently by local authorities, compared to developers. One of the suggested changes is to allow light industrial floorspace and warehousing to change to residential use. “Inevitably, local authorities' concerns will focus on the future availability of light industrial and storage and distribution premises if it is eroded through such changes, and whether the introduction of residential uses into established industrial areas will bring wider impacts. Developers’ concerns have long focused on the imposition of unnecessary or unclear conditions. Where conditions must be discharged prior to construction or a use commencing this only adds to costs and delays.”
● LOGISTICS firm John T Evans Haulage has scooped a national award. The company, which provides express delivery services for consignments of palletised freight across the UK and mainland Europe, received a Palletways Platinum Club Award for delivering outstanding levels of service and operational excellence within the Palletways UK network. The network is made up of 27 UK transport companies. Martin Chalke, principal of John T Evans Haulage, said: “We are delighted to have secured this prestigious award, which reflects the hard work put in by all our staff to ensure we continuously enhance our operations and levels of service. “Winning this award demonstrates to our customers that they can expect a first class delivery service for their small consignment delivery needs across the UK and Europe.” Luis Zubialde, managing director of Palletways, said: “Providing customers with a fast, reliable and efficient service is our top priority, and these awards highlight the dedication of our members to meeting the highest standards.”
● Martyn Wright, of Brunel Engraving, is celebrating a quarter of a century in business
25 years Engineer’s pride as business hits landmark Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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N ENGINEER has carved out a successful business serving customers ranging from big national companies to a local tourist attraction. Brunel Engraving is celebrating 25 years in business. The firm one of the largest engraving businesses in the UK, employing 25 people with an annual turnover well in excess of £1.25 million. It was founded in a office next door to Clevedon’s Curzon cinema and remains in the town today. Its customers include the town’s grade one listed Victoria Pier, for which is has engraved all of the hundreds of plaques adorning its boards bought by the attraction’s supporters
of the years. But the firm’s trade reaches much wider, providing services for Marks and Spencer, Sainsburys and The Body Shop. Its work can be found across the UK, such as on the Isis sculpture in London’s Hyde Park. Founder Martyn Wright said: “We’ve been situated in Clevedon for 25 years and the business has grown steadily year by year. “From the very start customer satisfaction has always been our priority and we pride ourselves on offering an individual bespoke service with a fast turnaround and attention to detail for all our customers, however large or small.” Martyn puts the success down to hard work, dedication to customer care and investment in cutting edge technology. He said: “Over the past couple of years we’ve invested over £75,000 on upgrading our technology, and expanding our premises. “New technologically advanced
machinery, used for producing printed metal labels and badges, and name plates and exterior signs, has made a significant impact on business, enabling us to undertake sophisticated print operations and to handle the most complicated procedures with a quick turnaround, increased production levels and improved overall quality.” Not resting on its laurels, the firm has created a new website and is looking to continue to grow, but has no plans to outgrow its location. Martyn said: “The South West and particularly Clevedon is a great place to live and work, it provides a perfect balance. We have a skilled workforce, excellent communication links and everything is easily accessible. We’re proud to be here. “After 25 years in business we’d like to say a big thank you to all of our staff, our customers, our suppliers and everyone who has supported us in achieving our success.”
Property
Specialists help out in regional office search ● THE Bristol office of property specialists Bruton Knowles has been appointed to advise on the acquisition of new regional offices for one of the country’s most respected providers of care for the elderly. Helping Hands, with its headquarters in Alcester, Warwickshire, has been providing 24-hour live-in care for the elderly and vulnerable people for over 20 years. Bruton Knowles has been appointed for a major property programme that includes finding office accommodation in locations across the UK. Paul Williams, head of agency at the firm’s Bristol office, said: “We will be looking in specific strategic locations so that Helping Hands can support and develop its nationwide network of care provision.”
Know how
Crowd funding and peer-to-peer lenders can help you grow
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T was recently reported that net lending to small companies fell again in the second quarter of the year, despite reforms to the Funding for Lending Scheme designed specifically to boost the flow of credit to the sector. Profitable and successful small businesses need access to finance to start up and grow, and any lack of this will act as a brake on the economic recovery. In Business Secretary Vince Cable’s own words “SMEs feel they have too few lending options other than the big four banks, which is not healthy for the economy.” However, is this perception or reality? The fact is that there are other forms of finance available to those small businesses which are too small to attract traditional private equity, and which are unwilling to give away large slices of equity to business an-
Andrew Fisher Executive director Alanbrookes Ltd 01934 863386 AndrewFisher@ Alanbrookes.co.uk www.alanbrookes.co.uk
gels. There has been much talk lately about crowd funding and peer-to-peer lending. Crowd funding is usually more suited to start-ups and early stage businesses. You show your idea or business to potential investors, who if convinced will contribute a sum to your venture. In the early days of crowd funding contributors were usually given some kind of reward not involving a slice of the equity, but
with investment crowd funding now becoming more common most entrepreneurs should prepare to part with shares in their business. Peer-to-peer lending matches private investors with borrowers. The essential difference between this and investment crowd funding is that you do not give away any equity, but instead pay interest on the money you borrow. For the borrower it can provide a rapid route to cash, while lenders can expect a worthwhile return on amounts lent. There are alternative lenders which specialise in smaller loans and those who can lend up to £1 million. Whatever you do, be careful who you deal with and carry out due diligence – for example, are they overseen by a credible regulatory body? One problem with both these routes is that they often take away the personal interaction between investors
and entrepreneurs which is critical to an entrepreneur understanding where their proposal is flawed. If you are wise, you will appoint a mentor, and websites such as mentorme.co.uk can give you access to a wide range of mentors, from both commercial and not-for-profit organisations. There is also a Government-backed initiative offering a mentor as part of a start up loans package (www.start uploans.co.uk) Aside from the crowd funding and peer-to-peer lending routes, there are other potential non-traditional sources of funds, some of them little-known: ●Certain funders are now offering single invoice factoring or discounting, which gives great flexibility for funding seasonal fluctuations or paying one-off large bills such as tax, without the need for the long term commitment required by traditional factoring and invoice discounting.
●Government grants are available via agencies such as Innovate UK and the Manufacturing Advisory Service, but be prepared for the long haul as well as competition for available funds. ●Multinationals such as Shell and Wellcome offer competitions and awards, which are often accompanied with no-strings attached cash and great marketing exposure. ● Suppliers of hardware or software sometimes have grant programmes to help new start companies get up and running by using their products. A final note – you’ll still need a seriously good business plan, whatever funding route you go down. It also might have been the case that your mainstream bank would have accepted your application if you had credible, detailed up-to-date financial information as well!
www.bristolpost.co.uk/business
Wednesday, September 24, 2014
5
Technology
Green business
Screen Time Dad’s app lets parents control how long kids spend online
Firms leading the way in green energy
Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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ARENTS around the world are grappling with the issue of how much time their children spend online. But for dad Steve Vangasse the challenge has become an opportunity that’s led him to quit his old job and start a business. Steve, who has worked as a software developer for the likes of Orange and Oracle, came up with his own solution. He created an app that allows him not just to see how much time his own three children spend online and on what but also to control it. “The Christmas before last we gave our kids tablets, which was great,” he said. “But it become obvious they were spending a lot of time on them and it was becoming difficult to get them to do their homework or come down for dinner. “I looked at the parental control software out there and didn’t like it, so I developed something myself. “It worked really well in my family so I shared it with a few friends. “Then I put it on the Google Play store and it took off. “I’ve had more than 100,000 downloads.” Steve said most of the competition was from companies whose stock in trade was internet security so were more about control and protecting children from the outside world. Screen Time, he says, is more about conversations and encouraging children to learn to manage their own online use. The parent installs the app on their child’s tablet or phone. They can then set daily limits of screen time for different tasks, such as one hour on social media, two hours for gaming, unlimited for reading. They can also set tasks to allow children to earn more screen time, such as finishing their homework might be rewarded with an extra 30 minutes of games. The child can even take a photo to show they’ve done the
● Steve Vangasse created an app called Screen Time that lets parents monitor and control how long their children Pic: Michael Lloyd BRML20140918A-005_C spend on things like social media and games online task. Parents can use their own phone or computer as a remove control. A pause function can switch off all online access when dinner’s ready, or play might be used to allow unlimited access during a long car journey. “It’s taken a lot of the parent being the bad guy out of it,” said Steve. “Our children will manage their time and save screen time until later rather than just binge.” The app is free to download, but to
access the extra services means signing up to a subscription package. Now Steve, 38, is working on the business full-time, based in the SetSquared incubator in the Engine Shed, he hopes to grow quickly. Most customers so far have come through word of mouth and recommendations but he hopes more marketing will boost that. His biggest deal to date saw the Mexican government pre-install the app on 750,000 tablets it is giving to
the country’s schoolchildren as part of a national education initiative. In the future he hopes to develop an IOS version for Apple products and expand to other platforms, as well as developing new ways the app can help parents or even teachers. But right now, Steve is thinking about how it all began at Christmas, and hoping many of the parents buying their children tablets this December will install Screen Time before putting them under the tree.
● BRISTOL firms are leading the way with a number of nominations in the Green Energy Awards. The shortlist was compiled from a record of more than 100 nominations for inspiring companies, projects and people pioneering the development of sustainable energy in the South West of England. ● University Hospitals Bristol has been shortlisted for Most Proactive Public Sector Body.It has a number of green energy projects including solar panels on estate buildings, a sustainable behaviour campaign and a combined heat and power system ●Low Carbon Gordano is in the running for Best Community Initiative for its plan for a £2.2 million solar array near Avonmouth. ● Solarsense, based in Backwell, is nominated for Sustainable Energy Installer or Supplier of the Year. It has installed more than 150 on-roof solar sites. ● Ross Fairley, environmental lawyer at Burges Salmon, is in running for Sustainable Energy Champion. ● GENeco, which has designed and built a plant producing biomethane gas from waste in Avonmouth which feeds it into the grid, pictured, is up for Best Renewable Energy Scheme. As is AEE for Says Court Farm, the first large-scale solar farm approved in South Gloucestershire. Merlin Hyman, chief executive of organisers Regen SW, said: “With so many fantastic nominations the judges will have a difficult task in selecting the winners. “The South West continues to lead the development of renewables, delivering innovation in products and also in collaborative development models with communities.” The winners will be announced at a ceremony in Bath Assembly Room on November 25.
SMEs
100 firms to exhibit at city’s business expo
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ORE than 100 businesses will be promoting their services when the Bristol Business Exhibition returns to Ashton Gate next
● Find out more at www.bristolbusinessexhibition.co.uk.
● The event is a one-stop shop for SME owners looking for suppliers and services
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week. The event, taking place for the 17th time, is a one-stop shop for SME owners looking for suppliers and services. Organiser Neil Kinnerly said: “The Bristol Business Exhibition will provide the opportunity for exhibitors to sell products and services to 500+ delegates from developing and established business. There is a great chance for face-to-face networking with like-minded business owners and it’s chance to gather good-quality leads and increase your company’s brand awareness and exposure.” He said many exhibitors also use the chance to source new suppliers from other exhibitors by networking with their peers.
The event is free for delegates and Neil said it was a “must attend” for small business owners, executives and decision makers looking to grow their businesses. As well the chance to find new suppliers, they can also network with other businesses and attend seminars. Speakers at next week’s event at Sarah Owen of the Referral Institute and Mark Veysey from Sandler Training. Sarah aims to open people’s eyes to generating more sales in less time by doing business by relationship. While Mark, who runs Sandler Training in Bristol, will talk about how to present yourself as a trusted advisor rather than a salesperson. The event takes place at the Ashton Gate Conference Centre from 10am to 3pm on Tuesday, September 30
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www.bristolpost.co.uk/business
Wednesday, September 24, 2014
The Big Interview
IT’S TIME TO GET BUILDING ON THE James deHavilland dreams up visions that become communities. Gavin Thompson meets the Barton Willmore partner calling for us all to be a bit less selfish when it comes to building homes
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HEN he was a boy, James deHavilland remembers playing in a field near his home. That field was turned into houses and it upset him. Not, however, because he lost his playing field, but because the houses were badly designed. “That’s what drove me into this profession,” he said. “I thought this shouldn’t be allowed to be done so badly.” James is now the senior design partner in the Victoria Street office of design consultancy Barton Willmore. He’s been involved in planning and design his whole career, including a stint in the public sector before being headhunting by a private firm. Now James is upset that not enough homes are being built. And, although he doesn’t use the term NIMBY, he clearly feels the trend is a symptom of a selfish streak in society. “We’ve become a rich country and
Vital statistics
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Name: James deHavilland Age: 45. Place of birth: Hastings, Sussex. First job: Seaside Photography (dressed as Sylvester the cat!) Hero or inspiration: My Grandfather who was a Master Builder.
everyone’s very happy with their lot and are disinclined to ensure everyone else has it too,” he said. “Post-war there was a real goal of everyone having a place to live, collectively there was this desire to make sure everyone was looked after. That seems to have changed. “Housing is one of the basic human needs but it’s been heavily politicised in recent years and it’s quite a shame that we have lost our common goal of providing a home for everybody.” Housing developments, particularly big ones, often get bogged down in the planning process and delayed or stopped by local opposition. But James says there simply aren’t enough homes and we must build more. “Everyone knows population grows,” he said. “We’ve benefited from influx of people from outside over the last century, that continues and is needed, and there is also an increase in our population in terms of more children being born. “We’ve had a baby boom recently as well. As soon as you have a recession you have a baby boom towards the end. “And modern living means people live in smaller households. “There’s a whole generation that’s becoming priced out of being able to afford housing. People talk about using the ‘bank of mum and dad’ but that’s not sustainable. “The reason for that is supply.
My working day Wake up: 7am What do you have for breakfast? Muesli or boiled egg What time do you start work? 8.30am. What happens in your typical working day? Meetings, project management, lots of conceptual drawings, liaising with staff and clients and the odd lunch! What time do you go home? 6.30pm/7pm. Do you take work home/attend evening functions? Yes – with an iPhone you never finish work, do you?
There’s not enough housing. There is a proven need.” But despite the evidence, action is slow. “It’s always talked about but no one seems to do anything about it,” he said. While most people agree we need more housing, the problems always come when you ask where. James admits there are challenging decisions to be made but believes people need to think of the bigger picture. “We have to have a more collective attitude to make sure housing is available as we grow,” he said. “We need to be less selfish. “You have to put them where they are best placed to ensure people can live proper and sustainable lives. Where there is work, community, shopping, education and leisure. All of that needs to be there and if it isn’t, you need to provide it at the same time. That means you have to provide significant amounts of housing to make it [economically] viable.” He says more planning ahead is important. Developments such as Moor Lane in Weston-super-Mare can take 20 years to deliver, even more if you include securing planning permission, which makes the matter even more urgent.
“If you plan to build 4,000 homes, they don’t all appear on day one. It can take 20 years.” He thinks cities should two plans, one a 50-year vision and the other for perhaps the next 15-20 years. Shorter than that and it gets caught up in political cycles. “If it’s a 15-year plan politicians don’t have to worry about re-election, it’s already decided and they can focus on other things,” he said. Perhaps the most common objection to new developments, and one that quickly becomes political, is if they infringe on the sacred green belt. But James says this is based on a fundamental misunderstanding of what the legislation was created to achieve. “Green belt was identified to stop ribbon development and the sprawling of our major cities and towns,” said James. “Loads of houses were being built along the main roads – those 1920s bungalows we all recognise as we drive into towns. That piece of policy was there to stop that happening to ensure we took the time to plan property when our cities needed to expand. It was not about protecting the landscape and certainly not about keeping it green. It was all about proper planning.
“ We have to have a more collective attitude to make sure housing is available as we grow. We need to be less selfish. You have put them where they are best placed to ensure people can live proper and sustainable lives. James deHavilland “And now is the time for proper planning. We need to look at it and say these are the areas we need to move into.” When it comes to deciding, James says there are two choices. Build around towns or expand cities. The size of the latter usually means building more amenities too and good public transport links as the new communities are further from the centre. He said: “When you expand a city you are adding a new district, a new place that is symbiotic with the city,
www.bristolpost.co.uk/business
Wednesday, September 24, 2014
GREEN BELT
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Communications
£3,000 help to set firms up with high-speed broadband BUSINESSES are being urged to take up grants to help them connect to high-speed broadband before they miss out. Firms within the city boundary can get £3,000 grants cover the costs of installing better broadband. But the scheme ends in March next year. Bristol-born Secretary of State for Culture and Media Sajid Javid said: “We want to make sure that small businesses have the help and support they need to grow and prosper in our digital age. That is why we are providing these grants to help small businesses meet their challenges. “I urge all small businesses in Bristol to apply straight away and help boost their businesses with faster broadband.” Colin Skellett, chairman of the West of England Local Enterprise Partnership said businesses needed to make sure they could compete on a global stage. “Super-fast broadband is no longer a luxury for business but an absolute necessity,” he said. “This is a fantastic opportunity for local business in the West of England and we would encourage people to apply in order to benefit from this as soon as possible. “We live and work in a global economy and this will help us to connect and grow.” The Government-backed scheme is primarily aimed at small businesses and Ken Simpson, chairman of the Federation of Small Businesses locally said firms should take the opportunity. “The FSB strongly encourages small businesses to take up this opportunity to improve the connectivity in their business,” he said. “These grants will help small businesses compete in the increasingly digitised market place
and keep pace with larger organisations, whilst simultaneously improving productivity and customer experience.” The grants are part of the Superconnected Cities programme but do not apply to firms outside the city council boundary. A separate scheme has been set up for rural areas. The grant comes in the form of a voucher which can be used with registered suppliers. The benefits of faster broadband include: ●Better communication with customers and suppliers ●Fast secure back-up of data ●Faster upload and download speeds ●Access to online applications and data storage. Businesses can find out more about this offer and apply by visiting the website www.connectionvouchers.co.uk.
A Bilfinger Real Estate company
For Sale My downtime My perfect weekend Staying in Bristol with the family and going to the Lido for swimming and food. Bristol is such an amazing city with fantastic green spaces, great restaurants and fabulous entertainment, plus windsurfing at Weston if it’s windy.
Stockwood Vale Golf Club, Bristol BS31 2ER A well presented proprietary golf club situated between Bristol and Bath.
What’s your favourite book or film or TV show? The Italian Job, but I have enjoyed the Harry Potter series with my children (books & film). What are your hobbies (if any)? Windsurfing, skiing, swimming, cycling and going to gigs.
• Attractive, freely draining, 18 hole 6,060 yard (par 71) golf course • 14 bay floodlit golf driving range • Informal 5 hole academy course • Two storey clubhouse with 3 bedroom apartment • Commercial trading location on the outskirts of Bristol close to A4/Bristol Ring Road For more information please contact: Ben Allen on 020 7911 2360 ben.allen@gva.co.uk
• 483,853 resident population within 20 minutes drive • Typical turnover £800,000 • Typical EBITDA £115,000 • 570 members • 61 hectares (153 acres) • Principally freehold (part leased) • Offers invited in the region of £1.425 million
gva.co.uk/7830 08449 02 03 04
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adding cultural, economic and social benefit to the city but also it has to be its own place too. Big enough that you can live there and have what you need.” Of course, James’ interest in such matters isn’t just a selfless mission. He is one of the two leading partners, with Simon Prescott, at the Bristol office of Barton Willmore, which is the largest design consultancy in the UK and employs 50 people in the city serving the South West. His firm is involved in local schemes including Lyde Green, a site for new homes in Emersons Green, Somerdale in Keynsham, Fishpool Hill close to Filton Airfield and in Whitchurch, among others. “We are very busy,” he said. “We felt the recession first, being involved in strategic land, months before anybody else all our jobs dropped off pretty quickly and we knew there was something unpleasant coming. And for the last two years we’ve been very busy. We were hit early but we came out early as well.” And with that baby boom and little sign of demand dropping, the firm can expect to be busy for some time. Just so long as people are prepared to let those fields near their houses be turned into homes for others not yet as fortunate as them.
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www.bristolpost.co.uk/business
Wednesday, September 24, 2014
Focus: Business finance Expert eye David Beaumont, SME area director for the South West of England Lloyds Bank
Banks supporting growth of SMEs
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T’S clear from customers I speak to that the thought still persists amongst SME businesses that they need to have a long-term relationship with their bank manager, or an extensive proven track record of financial success, in order to be considered for finance. This is a myth that both the finance industry and the Government are working hard to dispel. Research from Lloyds Bank found that business confidence has increased by 12 points since January of this year and to support companies with growth ambitions, there has been a rise in Government-backed initiatives to increase lending to SMEs, such as the Funding for Lending Scheme (FLS). All lending is subject to a satisfactory credit assessment. FLS enables businesses to receive a one per cent discount on the life of a loan, meaning the money saved can be reinvested back in to the business. It’s also worth considering more local lending options that are available such as the Regional Growth Fund. Through this scheme more than £1.5 billion of funding has been made available to local organisations to offer grants and loans to new or expanding SMEs in their area. Alternative forms of funding, such as invoice finance, can enable businesses to borrow against issued invoices, generating capital that can be reinvested in expansion opportunities before the payment has been received from the customer. To support SME growth ambitions, and as part of our 2014 SME charter, we have doubled the amount our most senior managers can lend for renewals to £1 million, increasing lending discretion at a local level. Once a business has decided which funding option suits its particular business’ needs, it is important that they spend time creating a clearly thought-out business plan, with financial forecasts that anticipate any issues that the business may face over the next few years. In addition to funding and a business plan it is essential that firms are aware of the impartial guidance available to them, either through our relationship managers at the bank, or business networks such as the Bristol Chamber of Commerce or Business West, for example. Whatever a business’ goals may be, it is important that all possible options available to them are explored in order to make the most of the economic upturn and seize the latest opportunities for growth.
ALTERNATIVE SCENE MOVES The business finance world ground to a halt in the credit crunch. Several years on, it flows easier again, but only if you know where to look. Gavin Thompson reports on how the finance world has changed.
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HE landscape of business borrowing is shifting. Banks are no longer the only way to finance growth. Alternative lenders are moving in from the fringes to become credible and established routes for businesses to fund their expansion, particularly among smaller businesses. An example is 20th Century Flicks. While most video stores have disappeared from the high street, Clifton-based 20th Century Flicks has retained a loyal customer base. So much so that the store wants to expand and move to new premises in Christmas Steps. It houses the UK’s largest collection of movies for rent and sale, it aims to cement its place as a fixture
“ The crowd-funding market is growing at a truly phenomenal rate, doubling in size roughly every two months. There is a huge appetite for crowd funding in Bristol. Fundsurfer co-founder Oliver Mochizuk in Bristol’s film scene. Given the shift in the market to online streaming and video on demand, it is perhaps not surprising that the banks it approached would not financially back its plans. Ten years ago, that would have been the end of it. But the owners decided to appeal to his customers direct, launching a crowd-funding appeal through Fundsurfer. David Taylor, 35, said: “Launching a crowd-funding campaign offers us a great platform for customers old and new to get involved in helping take the business to the next level.” He said there was still a niche for the business. “Movie habits are moving into online, but there’s an important role for places like 20th Century Flicks to expand and offer something bigger, better and importantly more sustainable for the future,” he said. “We hope Bristol’s film-loving population want to support what we’re doing. “It’s important for Bristol that we stick around and we certainly don’t want to fade out like so many other indie record and video shops.” Supporters can pledge anything up from £1, with film-related rewards for those putting in at least £5. Customers have responded. So far 108 people have made small pledges totalling just under £4,000. Its aim is £10,000 with 17 days to go. It’s not big money in business
● Adam Hart of 20th Century Flicks on Queens Road, Clifton, which is using crowd funding to help a move to a new
● Martyn Fraser of Smith and Williamson
terms, but it is an amount many small businesses would struggle to raise. Bristol has been fast to adopt alternative forms of business funding, with Fundsurfer, based at the Engine Shed in Temple Meads, one of those leading the way. The platform has proved popular with designers, makers and creative people looking to raise relatively small amounts for projects, using a rewards-based model. But it can work for other businesses too. It recently added business loans of up to £5,000 through a peer-to-peer model and next year it will launch an equity element that may appeal to entrepreneurs starting out or looking to take their company to the next level.
Co-founder Oliver Mochizuki said: “It is no exaggeration to say that in the future alternative finance will generate trillions of pounds for creative and social ideas, companies and individuals as well as creating millions of jobs across the world. “The crowd-funding market itself is growing at a truly phenomenal rate, doubling in size roughly every two months. There is a huge appetite for crowd funding in Bristol, we have over 60 projects in the pipeline being worked on after launching in May. “The future of crowd funding certainly looks bright to us and it’s a very exciting time to be running a platform, especially when based in a fantastic city like Bristol. “Bristol can lead the way in alternative finance and we look for-
www.bristolpost.co.uk/business
Wednesday, September 24, 2014
INTO THE MAINSTREAM
● Founders of Chilango Eric Partaker (left) and Dan Houghton (centre) with Luke Lang (right), co-founder of Crowdcube Pic: Professional Images
store in Christmas Steps
Pic: Dan Regan BRDR20140806A-005_C
the economic upturn and seize the latest opportunities for growth,” he said. It’s encouraging to hear bankers taking such a progressive approach. But even the less forward thinking could see the decision taken out of their hands. The government is looking to legislate to force banks to refer rejected loan applications to potential alternative funders. It’s another way in which Bristol is leading this funding revolution. Bristolian Adam Tavener, chairman of Clifton Asset Management and Pensionledfunding, has been a key player, attending meetings at Downing Street on the subject. Adam’s firm specialises in pension-led funding, which allows business owners to invest their pension
pots in their own business to fund growth. But he has become a champion for all forms, through the portal alter nativebusinessfunding.co.uk, which helps companies find lenders and could be used by Government as a platform for banks to refer on those unsuccessful applicants. Adam said: “This is a real opportunity for a collaborative culture to develop between the banking and alternative sectors, not just to refer businesses but to work together on multi-source deals that provide exactly the right shape of funding package for the business owner. “Better sign-posting, would give businesses – particularly SMEs – safe access to approved lenders, while helping banks keep UK businesses growing by encouraging in-
Know how Mark Lord
Director, Corporate Finance, Smith & Williamson, Bristol, Tel: 0117 3762000 mark.lord@smith.williamson.co.uk www.smith. williamson.co.uk
Advisers best placed to help entrepreneurs
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AISING finance for the next stage of a company’s development can be a daunting prospect at the best of times. But with the extensive range of funding sources available in the current market, the options open to entrepreneurs looking to grow their businesses have never been more difficult to evaluate. With business investment forecast to grow this year, confidence is high. Company owners often think that development capital is difficult to access and, whilst it is certainly the case that an innovative and creative approach may be needed, options do exist to unlock this provided that the business fundamentals are sound. It comes down to the strength and experience of the management team, the robustness of their business model and credibility of the underlying financial plan. Private equity plays a key role in providing long-term funding solutions to facilitate the achievement of this plan. Mobeus Equity Partners’ recent £11 million equity and debt package for our client Creative Graphics International, for example, demonstrates the appetite of the venture capital community to invest in solid businesses with a track record of strong customer relationships, and the opportunity to leverage off a solid growth platform. It is at these times of major change that the company’s adviser plays such a key role, helping to position the business in the most favourable light and making sure that an optimal financing package is secured and structured in the best possible manner. Surprisingly, the majority of small and medium-sized enterprises (SMEs) tend to approach only one finance provider. It is important that entrepreneurs consider all the options open to them, which are often much wider than they realise. The trusted adviser, who fully understands the key dynamics and drivers, is often best-positioned to develop and implement the owner’s aspirations for the business. The 10-strong corporate finance team at Smith & Williamson’s Bristol office advises local and national clients on a range of issues, including fundraisings, mergers, acquisitions and growth strategies.
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ward to playing our part in that through Fundsurfer.” Banks continue to be big and important players in the business finance scene, of course. For most companies, they are still first and often final port of call. Lloyds Bank recently restructured its commercial team, with David Beaumont talking control of the South West operation. David is the first to concede banks are now an important part of the funding picture, not all of it. He wants to encourage businesses to grow and flourish, wherever they find the cash. “Whatever a business’ goals may be, it is important that all possible options available to them are explored in order to make the most of
● Fundsurfer co-founder Oliver Mochizuk
novative or complementary funding.” Adam is speaking this morning at a breakfast event at the Aztec Hotel in Almondsbury, sharing the stage with Norman Chambers, deputy chief executive of the National Association of Commercial Finance Brokers. Norman said many business owners go to their own bank, but give up if they are turned away. “To maximise the chance of securing finance, it’s important that business owners have knowledge of the full range of lending options available to them,” he said. “There are more than 150 lenders to businesses in the UK, but few SMEs know they exist or understand how to access them. “The range of funding options for small businesses is growing, with firms increasingly securing finance from alternative lenders such as challenger banks or crowd funders.” Martyn Fraser, a partner in the Bristol office of accountancy and investment management group Smith & Williamson, said the wider choice of lenders was helping improve confidence in borrowing, although there were still barriers. “It remains the case that many companies continue to cite difficulties in accessing the funding necessary to support their growth plans,” he said. “This anecdotal evidence is borne out by the latest quarterly Bank of England statistics which highlighted an annualised reduction in net lending to businesses. “Despite this, our experience is that businesses are still able to access finance, although they may need to explore a wider pool of providers than traditionally would have been the case.” He cited the growth of peer-to-peer platforms both in lending and equity as important at the smaller end of the market. “Although the amounts involved are always going to be small relative to mainstream banks they are making a valuable contribution and increasingly present a viable alternative to SMEs seeking finance,” he said. “In one recent example the Mexican restaurant chain Chilango used the South West-based Crowdcube platform to raise over £2 million of debt.” But Martyn said lending options were opening up in the important corporate market too. He said: “At the other end of the size spectrum the funding market is very liquid at the moment with a growing number of non-bank lenders, such as specialist credit funds, looking to lend directly to companies. “Although this type of solution is aimed at larger, more established, companies it can provide a range of advantages over traditional bank debt such as the length over which the loan is made.” Echoing others in the sector, Martyn concluded: “The key message for business owners is that whatever the size of your business, it is now, more than ever, important to be aware of the full range of funding options available.”
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Business diary Bristol Business Seminar: Find out about alternative sources of business finance at free breakfast event at Aztec Hotel, Almondsbury, today Clifton Asset Management chairman Adam Tavener and Norman Chambers, deputy chief exec of the NACFB will speak. Getting more out of creative agencies workshop: Research conducted by UWE Bristol academics into the relationship between clients and creative agencies has resulted in a series of workshop events designed to examine and improve the fundamentals of the working partnership. This second workshop is aimed at clients. It takes place today, 9am-1pm, Paintworks. Book a place via the Chartered Institute of Marketing. Internet, Website and eCommerce for Business workshop: Six-hour free seminar gets you building your company website and introduces e-commerce.Armada House. 10am-4pm, today. Book via Eventbrite. Inspiring Women Live! Series of events to help to connect the dots between personal and professional development. Louise Ladbrooke, Business West growth manager, and Denise Jacobs at the Marriott Royal from 6.30-9pm tonight. See www.inspiringwomenlive.co.uk. Advanced Social Media: This is a two-day seminar presenting a Master-Class of Social Media. Attendees will work through a social media strategy for their own business. Armada House, 10am-4pm, September 25 and 26. Book via Eventbrite. Introduction to Green Accord environmental accreditation for SME’s: Start “greening” your business at low cost and save costs in your business. 10am-4pm, September 26. Armada House. This is followed by a session on Aspects of Financial Control for SME’s and finally an introduction to Social Media – the biggest thing to hit marketing since TV advertising. All free including free lunch. Book via Eventbrite.
Wednesday, September 24, 2014
In pictures - Sparkies
Sparkies An up-and-coming tech hub? We’re already well established David Maher Roberts Founder The SPARKies / sector specialist for Invest Bristol & Bath
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OR years we’ve been hearing that the Bristol and Bath region is an ‘up-and-coming’ tech hub. But that’s nonsense – we’re there already. We’re established. And because of the forces at play and the strengths of the region, there is no stopping the momentum of growth. You don’t need to look far to see the proof. Major tech companies are choosing to locate innovation and tech centres here because they recognise the talent pool and knowledge centres available to them. We have reports from respected organisations like McKinsey recognising the tech cluster here as the most significant outside of London and we have tech incubators throughout the region helping to create yet more amazing new companies, applications and products. The tech scene is bubbling over with ideas and innovative people with a can-do attitude. From people like Open Bionics bringing out 3D-printed prosthetic limbs which are much cheaper than NHS versions, to The Yogscast – a home-grown online media company with 25 million YouTube subscribers. Everywhere you look there’s someone recognising the importance of the ideas being generated in the
● Guests attend the launch event of Sparkies region. Take Webstart Bristol for instance, which offers a home and mentoring for people with exciting website and app ideas. Or business incubation programme SETSquared (recognised as the most successful university incubator in Europe) which offers a place for fledgling tech companies to grow. There are also more specific development spaces
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. Market Strategy workshop: Three hour free workshop designed to explore the process to create an effective marketing strategy for your business. Armada House, 9.30am- 12.30pm, September 30. Book via Eventbrite.
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Advanced marketing workshop: Assumes that the attendee has completed basic marketing training. This is a three-hour programme, designed for those who have already completed their initial market research. Armada House, 1pm-4pm, September 30. Book via Eventbrite. 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.
● Abby Frear, Hannah Atkinson and Nat Al-Tahhan at the Sparkies launch
like Bristol Robotics Lab and Bristol Games Hub which help new innovators break new grounds in robotics and game development respectively. But it’s not just startups; established companies are being drawn to Bristol and Bath for what we can offer them too. Companies like online delivery service Just Eat, world-leading com-
Pics: Dan Regan BRDR20140916D-007_C puter graphics cards specialists NVIDIA, global mobile marketing firm Somo and telecoms giant Huawei have all established research and development and specialist engineering offices here in the past 24 months. Need more proof ? Well, it’s not every region that has its own tech awards. I set up The SPARKies Awards in 2012 to shine a spotlight on the amazing people, products and companies that make up the tech sector in the region. Year on year the awards have grown in stature, and this year we now have 14 awards being offered from everything from best app and best game to best mentor, best entrepreneur and best startup. Last year’s winner, the technology reviews site TechRadar, based in Bath, now has 19 million people visiting it each month and has expanded into the US, Australia and India. Nominations for this year are open now – visit thesparkies.com Let’s celebrate our established, world-class hub of innovation, a place which is already home to some of the most successful tech companies globally.
www.bristolpost.co.uk/business
Wednesday, September 24, 2014
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In pictures - Chantrey Vellacott hosts R&D tax relief talk
● Yann Gryska and Reena Champaneri of Chantrey Vellacott
● Richard Noble of Bloodhound SuperSonic Car, Miles Hewitt-Boorman and Kevin Voller from Chantrey Vellacott
● Adrian Wilkins and Ben Hortop from CHF Media Group
Bloodhound Tax talks at supercar
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HE Bloodhound SuperSonic Car is at the cutting edge of research and development so it was a fitting choice for a talk on R&D tax relief available to businesses across Bristol. Accountancy firm Chantrey Vellacott hosted the event and provided an introduction to the potential benefits of R&D tax relief, followed by an update from Bloodhound SSC project director Richard Noble. The government has introduced a number of tax breaks to encourage research and development, but lots of firms still don’t know they are entitled. Chantrey Vellacott has also been carrying
out tax reviews for the Bloodhound team. Partner Miles Hewitt-Boorman said: “We’ve been tracking the progress of the Bloodhound project for quite a while and the event was a fantastic opportunity for us and our guests to hear all the about the latest developments. “The project goes much further than the exciting attempt to break the world land speed record, and it was really interesting to hear about the breakthroughs the team has made and the way they are inspiring the next generation of scientists and engineers. “We were also pleased to be able to give an insight into how the R&D tax relief system can support a wide range of industries.”
Part of the Local World group
Staging your Fashion Show doesn’t have to cost a fortune... With many years experience in fashion shows, we can design and create your desired backdrop and shape the catwalk while using creative lighting effects to produce a show-stopping event.
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● Trevor Cooper of Trac-ID with Steve Hiron and Chris Mackley from Chantrey Vellacott
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