Business 26 November 2014 by BGSD-cs

SUDDEN SLOWDOWN

GROWTH FUNDING

BRIGHT IDEAS

Bank of England’s top economist reveals drop in orders – page 2

How cash flow finance can help SMEs to grow – pages 8&9

Best time to start a business is now, says entrepreneur – p3

bristolpost.co.uk

www.

NOV 2014

AUTUMN STATEMENT PREVIEW

ALL WE WANT FOR CHRISTMAS IS... Ahead of the autumn statement, Bristol’s businesses tell George Osborne what they’d like for Christmas

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Wednesday, November 26, 2014

Public relations

Firms join forces to create the ‘next generation of superbrands’ A BRISTOL public relations firm has joined with other companies with complementary strengths to form a new social creative agency with the goal of building the “next generation of super brands”. Chaired by Next Fifteen co-founder Mark Adams, Honey is brainchild of three agency founders, Bristol-based PR and experiential practice Renegade, social media agency Rabbit, and TCG a social agency with a focus on data, strategy and consulting. The agency HQ is in London with plans for offices in China and the Middle East. Its Bristol office, where three staff are based, will be at Renegade’s Brunswick Square site. The new firm was formed to integrate cross-over disciplines such as PR, social and performance mar-

keting, helping customers make their budgets go further with more coordinated campaigns. Honey’s initial focus is on the lifestyle, retail, sports, travel and media sectors. Mark said: “Agencies collaborate more than ever. We’ve all worked together closely for some time and decided we could do better as a single entity working formally under one brand. “Social is more than just buzz and there’s a massive global opportunity for next-generation super brands to succeed by placing social at the heart of their marketing. We think there’s a £100 million opportunity for an international socially-led agency.” Honey’s founding partners are Mark, Chris Adams, Dirk Singer, and Renegade’s Mark Terry-Lush.

Finance

Forecast

South African finance group invests in city ● ONE of the largest financial services groups in South Africa has become the latest in a string of major international businesses to announce investment in Bristol’s globally-significant, fast-growing tech hub. MMI Holdings, which acquired Bristol-based finance tech business Blue Speck Financial earlier this year, plans to open a new 120-person office in the city. The company expects to have created around 100 new jobs in Bristol by 2017. The news follows a series of announcements by global business players investing in the Bristol and Bath region’s tech cluster.

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● Toby Hughes, CEO of Blue Speck Financial Bristol-based tech firm SecondSync was snapped up by social media giant Twitter in a deal earlier this year. Meanwhile, big names from the tech world such as Somo, the world’s largest independent mobile solutions company, Huawei, the Chinese telecoms giant, and Just Eat, the online takeaway service, have set up new bases in Bristol this year. Toby Hughes, CEO of Blue Speck Financial, said: “Bristol has two great universities, strong creative, tech and financial services industries, and good links to London. “Incubators such as SETsquared, voted one of the three best in the world, make Bristol a great place to accelerate a tech-focused business. There’s a wealth of talent in Bristol and it’s one of the best cities in the UK for a work-life balance.”

● From left, Tara Greenwell, Li Ma, Mark Adams, Dirk Singer, Jo Liu, Chris Adams, Kara Kibble and Mark Terry-Lush

Economy still positive but firms report orders slip, says bank chief

EXCLUSIVE Oh}pu \ovtwzvu

Assistant Editor (Business) gavin.thompson@b-nm.co.uk

OME businesses in Bristol are reporting a slowdown in orders, according to the chief economist of the Bank of England. Andy Haldane spoke exclusively to the Bristol Post following a series of talks with businessmen and women in the city. He said the mood was generally “pretty positive” with the economy “growing nicely” but added: “For some firms, they have felt and seen a bit of a tail-off since the summer with activity in some cases fading away a bit and in some cases fading away quite sharply.” He said it was hard to put his finger

on one single cause, but the slowdown in Europe, Britain’s biggest trading partner, “plainly hadn’t helped”. But he reassured the business community that when interest rates did start to rise, they would do so very slowly and normalise at lower levels than before. “Our message is that it will be limited and gradual,” he said. “Whenever time comes to start raising rates – and I don’t know when that will be – we don’t expect at that point to see them shoot up. “We think that it will be a gradual path once we get started and the levels to which we are likely to head when things normalise are not going to be the same levels we have seen in the past. “The Bank rate in the past averaged five to six per cent. I think for the future we might see rates sticking somewhere below that, maybe three per cent.”

● Andy Haldane The Bank believes such forward guidance helps businesses to make investment decisions with a degree of reassurance. He added the financial markets were forecasting that rates would eventually level out closer to two per cent but would not even start to rise

until the end of next year. The visit saw Andy meet around 100 businessmen and women in the Bristol and Bath area, along with the bank’s South West agent Stephen Collins. Such visits play a key role informing the Bank’s Monetary Policy Committee – on which Andy sits – in setting interest rates. “The business intelligence from the regions is presented on equal footing with the official numbers,” he said. “Over the last couple of years, that business intelligence has been absolutely crucial in making sense of what has been going on. “When the economy began picking up steam in 2013 we only really saw it in the official figures in the second half of 2013 but got that message from Stephen and his colleagues in the regions from the very start of the year.” AUTUMN STATEMENT: PAGES 6&7

Childcare

Nursery owners celebrate opening 20th site BEV and Tony Driffield’s nursery business is growing even faster than the children they look after. The couple founded Mama Bear’s Day Nursery in 2002 and have just opened their 20th site. The latest addition is in Bradley Stoke as the family business has taken over the former Butterflies Day Nursery site, where 104 local children aged between three months and five years attend. The opening follows the addition of new nurseries in Whiteladies Road and Totterdown earlier in the year. Bev said: “We are so excited to be opening a new nursery in Bradley Stoke and adding to our portfolio of much-loved nurseries in Bristol. “To have reached the 20 nursery milestone is a huge achievement for us and we’re so proud of the work we have put in. The idea for Mama Bear’s

Day Nursery initially started in our living room in Bradley Stoke so it feels like we have come back home.” Located on Great Parks Road, the setting will have indoor and outdoor facilities and an onsite kitchen providing morning snacks, hot lunch and afternoon tea. Bev said: “The Bradley Stoke nursery is in a great location for those who live or work in the area. We’re very close to Almondsbury Business Park, Aztec West and the M4/M5 junction so I think it’s going to be a great asset to the local area. “Existing staff are staying with the nursery meaning a smooth transition for the children who are also staying at the nursery and we’re really excited about the three age-specific outdoor play areas which we will be redeveloping in early 2015 to create outstanding outdoor

● Tony and Bev Driffield, of Mama Bear’s space.” Bev said the growth of the Hanham-based business was down to a “commitment to quality”.

“We always aim to create a home-from-home environment and we put a massive focus on the quality of care we provide,” she said.

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Wednesday, November 26, 2014

Entrepreneur

Taking shape Kirsty squares up to some inspiring business ideas Oh}pu \ovtwzvu

Assistant Editor (Business) gavin.thompson@b-nm.co.uk

IRSTY Ranger’s eureka moment happened against the uninspiring backdrop of the M5. Driving back to Bristol from a visit to her parents in Cheshire, she was mulling over the night before’s television. “I was coming back to a Monday of work which I had had enough of,” she said. “My dad and I had watched Dragons’ Den the night before and had chatted about how there were so many cool business ideas out there. “I thought, what if we could get a million really good business ideas and do something with those? It evolved from there. “I’ve always wanted to do something innovative and challenging.” Kirsty quit her job and applied for the Webstart Bristol start-up incubator, after which she launched Idea Squares. The business is a way for people to share their brilliant ideas and get feedback, support and – perhaps – funding. Anyone can submit ideas and anyone can look at them and give feedback. People can choose to pay for promotion on the homepage and on social media, giving them a bit of extra exposure. But the key to the site is that is helps people hone their business idea, with the chance to take part in a boot camp run by consultants I2S Group. After that, it refers wannabe businesses to potential investors. And only if those investors part with their money, does Idea Squares take its five per cent fee. “For entrepreneurs if they go through this process they will end up with a well-formed business proposition,” said Kirsty. “Investors receive hundreds of business plans into their inbox and many of them just aren’t strong enough to be considered for investment. “The value of working with us is that they can rest assured when they receive a proposal from us it will be

Aerospace

£44m boost for Filton Airbus projects ● PLANE maker Airbus has announced a major investment in research into the next generation of wing design and manufacture. Wings for the firm’s fleet are designed at the company’s Filton site near Bristol, while much wing assembly work is carried out in North Wales. The £100 million package is a collaboration between Airbus and the British and Welsh governments that should keep the UK at the cutting edge of new technology and innovation. Prime Minister David Cameron announced the plan at a Trade and Industry Summit in Newport where he highlighted the aerospace was worth £27 billion to the UK economy every year. He said: “With this investment we are backing our aerospace sector so that it continues to thrive.” Airbus President and CEO Fabrice Brégier added: “The British aerospace sector is a world leader and this investment by our government partners recognises the huge economic benefits of highly skilled, high value engineering. We have already invested significantly in our UK sites in the last decade and this announcement continues our commitment.” Around £44 million will go towards projects connected to the Filton site, where Airbus employs 4,000 people.

Showcase

Top Apprentice Stella to be guest speaker

Kirsty’s top tip ● YOU don’t need tech knowledge to launch a tech start-up, you need to know what your strengths are and find people to fill in the gaps.

of a very high quality.” Kirsty launched the site in February and has so far seen 1,100 ideas submitted with more than 60 added just last week. Nine of them have been referred on to investors with the first expected to

support, raising £24,000 earlier this year to get the business started. It’s no surprise that Kirsty became an entrepreneur. It runs in the family. “Both my parents own businesses,” she said. “My brother, my uncles too. I don’t know why, we’ve just never particularly wanted to work for anyone!” And the 27-year-old believes the timing couldn’t be better. “There’s never been a better time to become an entrepreneur,” said Kirsty. “We live in a hyper connected world. You can start a business and reach a global audience within minutes.”

Hollister Design and music and dance promoters Concrete Promo took space in the building. Cube Real Estate recently took on the asset management of 10 Templeback, where it is hoping to achieve a similar transformation to

attract new tenants to the large waterfront office building on behalf of the owners Benson Elliot. Ruari Laidlaw, who works in the asset management team at Cube, said: “Bath Road Studios has been a successful acquisition to date, and despite a couple of tough years for the economy, we have had a steady influx of new tenants that have wanted flexible, contemporary space without paying a premium for it. “We now have an opportunity to bring one of the largest grade A office buildings in the city back to life. “There is a severe shortage of high-specification space available in Bristol but we hope the large waterfront offices, central location and green credentials will appeal to those looking to grow their businesses.” NFU Mutual occupies two floors of 10 Templeback, leaving 78,000 square foot of empty office space.

Ex-ITV studios for sale after £1.35m revamp

space in the city. ITV Westcountry remains a tenant and has been joined by a host of creative businesses from digital start-ups to award winning video production companies. Recently, graphic design company

● APPRENTICE winner Stella English who won the show then took Lord Sugar - unsuccessfully to an employment tribunal will be among the guest speakers at a major business event in Bristol. The Business Showcase South West returns in May 2015 with Dragons’ Den success story Levi Roots, business author and entrepreneur Bev James and Gerald Ratner joining Stella, pictured, as guest speakers. Mr Ratner’s talk should be lively. He ran successful jewellery firm Ratners Group until a spectacular gaffe when he called his own products “crap” eventually saw him fired from his own company. He has since, slowly, rebuilt his career. The eventwill be spread over two days at the Colston Hall.

Get in touch Assistant Editor (Business) Gavin Thompson Call 0117 934 3336 Email gavin.thompson @b-nm.co.uk Twitter @gavin_thompson1 Advertising Robert Rodgerson Call07828 941469 Email robert.rodgerson @b-nm.co.uk Advertising Jane Chapman Call 01179 343025 Email jane.chapman @b-nm.co.uk

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receive funding any day now. The concept has taken off around the world, with 80 per cent of ideas submitted from overseas. Because of that, Kirsty wants to develop an online version of the boot camp to help those overseas would-be entrepreneurs develop their ideas. To that end she has launched a Seedrs funding campaign seeking £35,998 investment in return for a total five per cent stake in the business. After launching the appeal last week, it is already oversubscribed but Kirsty is letting it continue. It’s the second time she has turned to the crowd-funding platform for

Offices

THE former ITV studios which has been converted into trendy offices is to be put up for sale. Bath Road Studios, pictured, is now either let or under offer, following a major refurbishment. The final phase of the £1.35 million project led by London-based Cube Real Estate’s Cubemaker Partnership completed last month and now the company has told the Post it plans to sell the building. The company bought Bath Road Studios in 2010 and transformed the site into an enterprising arts and business hub, due to a shortage of flexible and contemporary work-

www.bristolpost.co.uk/business

Wednesday, November 26, 2014

Tax

Time for reform ‘Business rates are hampering expansion dreams’ Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk

USINESS rates are “outdated, clunky and not fit for purpose” according to the regional director of business lobbying organisation the CBI. Debs Waddell told the Bristol Post she had been disappointed when the Government didn’t commit to a full review earlier this year. The Post is calling for wholesale reform of the business rates system to break the link to property that holds back firms from investing, greater local control of the income collected and a simpler system. Debs said: “I think some of the solutions they have offered, whilst helpful such as the two per cent cap, are sticking plasters. They are not the full review we all want and know is needed.” She said businesses recognised that the Government would be reluctant to let go of the money business rates generate in tax but that reform was still possible. “We have got a massive deficit of £68 billion and business rates contribute about £27 billion to the Exchequer so they are not going to go away,” she said. “That does reduce the Government’s firepower on business rates but that doesn’t mean they can’t do anything.” Backing the Post campaign, she said the current system deterred business expansion because bigger premises usually meant higher rates. She said: “Expansion is often one of the scariest times for a business, it when it is most at risk because they have all this outlay. We are asking is there an opportunity to relax what businesses are expected to pay as it’s going through that expansion?” The CBI is calling for a change to using the CPI measure of inflation instead of RPI. The former tends to be more stable and lower and is the more widely used measure. It wants a guaranteed exemption for SMEs on rental values of less than £12,000, which she said would not cost the exchequer much because the amount of time the local authorities spend chasing relatively small amounts of money.

● Debs Waddell, regional director of CBI, who is backing the Post’s campaign to change business rates

“ The deficit does reduce Government firepower on business rates but that doesn’t mean they can’t do anything! “And the fact they are relative to that big pot but not to those small employers, means they could make an administrative saving, they wouldn’t have to do that chasing,” she said. “So it would save us money as well as be a relief.” She said a wide-ranging review would need to look at rates alongside other measures. “At the moment companies which invest in energy efficiency are potentially penalised because the more energy efficient they get, the higher the rateable value of the property,” she said. “That seems a perverse incentive. “That’s a good example of why the review can’t happen in isolation, it has to take into consideration

everything else that is happening in the business environment.” Debs said the CBI believed these measures would cost the Exchequer £300 million in 2015/6, but even that cost had to be seen in terms of the bigger picture. “If shops and business close, then people are going to become unemployed, people aren’t paying taxes so we lose money that way,” she said. The current system also deters businesses from investing in Bristol and the rest of the UK. While the UK is considered competitive on corporation tax, Debs said our business rates were the “most uncompetitive in the whole of Europe”. Some businesses have complained that they get little in return for their rates, such as rubbish collection. But Debs said if the system was fairer and worked better, businesses would not begrudge using it to contribute to society and public services. ● We are calling for business leaders, owners and entrepreneurs to sign-up to our call for business rates reform. Simply scan the QR code, right, and fill in the form.

Investment

10-minute pitch to win share of £30m ● A BRISTOL technology start-up is to pitch to an audience of investors and corporates at The Shard in London. The 22nd floor of the iconic London landmark will host businesses providing technology solutions for everything from wrinkles to poor public transport in developing countries with just 10 minutes to pitch to the likes of Mercia Fund Management and Eden Ventures for a collective £30 million of investment. Bristol’s Ultrahaptics, who will be pitching to the investors, is the world’s leading touchless haptics company. Its unique technology brings the sense of touch to gesture control, creating the experience of feeling without touching. The firm recently secured £600,000 investment to help it develop its technology and will be asking for more in London. The event, Accelerating Growth, is organised by SETsquared, a business incubation programme run by a partnership of the universities of Bath, Bristol, Exeter, Southampton and Surrey and will see over 20 businesses pitching. Bristol SETsquared businesses have raised some £36 million in investment in the last 12 months and Accelerating Growth aims to boost that figure by putting start-ups face-to-face with angel investors, venture capitalists, high net worth individuals and self-certified sophisticated investors. Nick Sturge, pictured, director at the Bristol SETsquared Centre in the Engine Shed, said: “The fact that businesses within our incubator have doubled the amount of funding they have raised in the last year proves there is real appetite for investors and corporates to partner with high growth potential technology companies. “Ultrahaptics shows real innovative talent and I have no doubt that they will do an excellent job of pitching to the biggest and best investors.”

Recruitment

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Bristol move to strengthen position A NATIONAL recruitment firm specialising in distribution, engineering and construction has moved into Bristol, reflecting the region’s growing strengths in those key sectors. McGinley Human Resources was founded in London in the 1960s but its nearest office for the South West until recently was Cardiff. Now the firm has opened an office in Almondsbury in a bid to strengthen its position in the region. Senior consultant Simon Miles said the move was a response to growing demand in the region. “This has been a strategic move due to the expansion of our operational teams and customer demand,” he said.

“Geographically, we felt we needed to increase our presence in this part of the UK.” The office houses four members of staff, supplying hundreds of temporary workers to primarily the distribution and logistics and construction, engineering and property sectors. Bristol’s position at the crossroads of the M4 and M5 makes it a key hub for the distribution sector, which more firms moving into the Avonmouth and Severnside area as a result. The firm has had a Bristol office for a time before, in the late 1990s, and Simon says it is “no stranger” to the area. He believes local knowledge com-

bined with winning repeat business will drive the firm’s growth. He said: “The company’s expansion has resulted from repeat clients and loyal candidates – a testimony to our customer focus and various investments in the business to secure our place at the top of the recruitment industry in our markets. “Our growth has also resulted from exciting opportunities from new clients who have been attracted to our complete service offering and innovative solutions.” He added: “We have an exciting growth plan with targets to achieve by 2018 and this includes becoming fully established in the West of England and being renowned in the UK as the agency of choice.”

● Senior consultant Simon Miles and director Matt Goldsmith

www.bristolpost.co.uk/business

Wednesday, November 26, 2014

Windows

Growing panes Window firm opens showroom... as son joins the team Gavin Thompson Assistant Editor (Business) gavin.thompson@b-nm.co.uk

ARK Price has good reason to invest in the future of Polar Bear Windows. It’s not just that it’s his business, which he has built over 20 years. He’s just hired his teenage son as an apprentice. Mark, 42, himself started out fitting windows at 17 and now son George is following in his footsteps at the age of just 16. George is one of several new hires recently as the company has invested £100,000 in moving to a new showroom, which Mark believes to be the biggest in the South West. The success of the firm, which now employs 28 people, has been built on a simple business model. “We are a straightforward company with straightforward prices. There’s no gimmicks, the price is the price,” said Mark. “We only fit A rated windows on energy, we don’t mess around with B and C rated products.” He said spending on A rated windows would pay for itself in energy savings over 10 years, and is also better for the environment. The company name was chosen to highlight that green message, as people link polar bears to ice caps melting due to climate change. The firm has moved from its base in Keynsham to its new showroom, at Jarretts Garden Centre, Willsbridge. The move is designed to give customers a better service, not just in terms of choice but in the way they shop. “If you are going to spend £5,000 on a car, you want to go and look at it first,” said Mark. “We want to invite our customers to come and look at the products they are going to invest in before they buy. Putting new win-

● Owner Mark Price with son George who has joined as an apprentice at Polar Bear Windows, which has a Pic: Michael Lloyd new showroom at Jarretts Garden Centre in Willsbridge, below dows in your property is an investment.” Polar Bear sees itself as very much a local company, sponsoring a number of local sports clubs around the Keynsham area. And with George joining, it’s now very much a family business too.

Contest

Robotics start-up is ‘people’s choice’ ● A ROBOTICS entrepreneur has been named as the runner-up in the People’s Choice category at the Pitch@Palace competition, held at St James’s Palace and hosted by The Duke of York. Silas Adekunle, pictured, from Reach Robotics, a start-up business based in the Technology Business Incubator at the Bristol Robotics Laboratory (BRL), has also been selected as one of the entrepreneurs to visit Saudi Arabia to attend the sister Pitch@Palace competition, at the King Abdullah Economic City. Fifteen start-up businesses were selected to pitch their ideas after an initial selection process involving 41 science and technology start-ups, from around the UK, who attended a boot camp in London in October. Two other start-ups from BRL represented at the camp, Alan Broun from Dawn Robotics, and David Graves of OmniDynamics, failed to reach the Palace Silas said: “It was a fantastic experience to pitch in front of such a distinguished audience. “Being the People’s Choice runner-up is a validation for us as a company and also for our product.

auction

148

commercial investments to include (unless previously sold or withdrawn)

Lot 15

Lot 41

Bristol Connected

Get festive at our next event tol Connected events – some of whom I’ve since written about – and I know other people have made good connections too. “But this time we are changing the time, so any regulars take note December’s event will be at lunchtime. “We feel within the busy festive period, it’s a good chance to test the waters earlier in the day. And with the great riverside location provided by Cube Real Estate, which is within easy walking distance of the city centre, we couldn’t have a better location to try it out.” The relaxed event features a couple of short speakers, drinks and nibbles and plenty of networking time. Ellen Green, pictured, of the Blue Badge Company, will be sharing her experience running a fast growing young business from Montpelier. Visit Eventbrite to sign up. The event is free but you must register for a ticket.

RETAIL 42/42A/42B High Street, Keynsham Bristol

Phillips Road, Weston-Super-Mare BS23 3UZ

Lot 127: Greggs, newsagent and offices. Total rent £48,500 p.a.

Lot 33: Let to HSS Hire Services Group Plc at £39,000 p.a. (Sublet to Majestic Wine) on a lease expiring in 2020.

Whitchurch District Centre, Oatlands Avenue, Bristol BS14 9NJ Lot 15: Let to Asda Stores Ltd until 2077 at £28,440 p.a. Rent geared to 22.84% of OMRV. Next review 2020.

35/38 High Street, Bristol BS1 2AN Lot 47: Shop (A2 use) and offices above. Total gross rent £91,416 p.a.

16 Market Place, Berkeley, GL13 9BD Lot 45: Bank and Residential Investment. Bank let to National Westminster Bank Plc. Whole let at £20,890 p.a.

1 Bank Street, Williton TA4 4NQ Lot 41: Bank and Office Investment. Bank let to National Westminster Bank Plc on lease expiring 2028 with minimum increases. Whole let at £34,535 p.a.

10 East Street, Ilminster TA19 0AA Lot 44: Bank and Residential Investment. Bank let to National Westminster Bank Plc on a lease expiring 2026 with fixed increases. Whole let at £25,768 p.a.

Wednesday 10th December 2014 The Dorchester, Park Lane, Mayfair, London W1K 1QA

020 7205 2871 Online auction catalogue at

www.allsop.co.uk

OCTOBER SALE - £124m raised 83% sold

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ENTREPRENEURS, business owners and professionals can wind down ahead of Christmas at the final Bristol Connected of 2014. The Bristol Post-run networking event will be held on Tuesday, December 16 at riverside office building Temple Back. The site was recently taken over by Cube Real Estate, the developer behind Bath Road studios with plans to refurbish it early next year. Bristol Connected gives business people the chance to meet the Post business team as well as make connections with people from other companies and industries. Post assistant editor Gavin Thompson said: “We’ve been thrilled with the success of this event to date, which is held every other month at a different location. “I’ve made some fascinating contacts at Bris-

W:10.5075cm H:7.2752cm

www.bristolpost.co.uk/business

Wednesday, November 26, 2014

Focus on start-ups | Sponsored by THEME SPONSOR’S NAME HERE.

Autumn Statement preview

BRING US ALL SOME CHRISTMAS CHE This time next week, Chancellor George Osborne will be delivering his final Autumn Statement before next year’s election Gavin Thompson looks ahead at what’s in store and asks what business would like as an early Christmas present

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HE story of 2014 has been one of growth and recovery, up to now. But higher borrowing and concerns over the impact of the economic performance of the Eurozone, Japan and others mean George Osborne won’t have such a big sack full of presents to giveaway in the inappropriately -named Autumn Statement next week. But that doesn’t mean we don’t all have long lists of requests. We have been good after all, investing in growing our businesses and creating jobs. As one of the few regions that actually contributes more to the Exchequer than it gets back, Bristol has been especially good this year. So what do we all want? Top of the Bristol Post’s Christmas list is reform of business rates. The Post is campaigning for a wholesale review of the tax to break the tie with property that stifles business growth, to give more local control over how the proceeds are spent, and for a simpler system which business can understand. And we’re not the only ones. Business West, for example, is also calling for movement on business rates. The organisation’s managing director Phil Smith said: “If we were to ask George for three presents before Christmas, it would be giveaways on business rates, infrastructure and apprenticeships. “With a feeling of deja vu, here we are again asking the Chancellor to cut costs and reform the broken business rates system. For those of you with keen policy memories you may remember the call for a freeze in business rates this time last year, which the Chancellor briefly tamed with a two per cent cap on inflation and the introduction of a rate discount to help the high street. “However, this didn’t go far enough and yet again we cry out for reform to this crippling tax which hits firms before they make a profit.” Phil, right, said closing the skills gap, particularly among young people, was key to achieving

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long-term growth. “Youth unemployment remains stubbornly high despite total unemployment at its lowest since 2008,” he said. “Fir ms consistently tell us about skills shortages and we are working hard to ensure better links between education and business. We urge the Chancellor to use tax cuts to incentivise this.” And finally, Business West wants more investment in infrastructure. Phil said: “Infrastructure is at the core of British business, underpinning confidence and competitive-

ness, but the UK remains off pace with delivery. “We already know that the Autumn Statement will contain plans for a £15 billion Roads Investment Strategy, but the government must address the ever-poorer state of Britain’s existing roads as well as adding much-needed new ones and revving up the delivery of key projects, with many of these progressing at a glacial speed.” Infrastructure is also the focus of the demands of the Confederation of British Industry. Director General John Cridland, right, said: “We know firms are concerned about the state of our roads and energy supply and affordability,

so the arrowhead of business recommendations is a major push on improving the country’s infrastructure. Businesses want to see the Government set out clear project plans, with start dates and timescales.” The Government has heavily trailed some infrastructure announcements, including plans to make the A303 in Somerset dual carriageway. But more money for road and rail improvements in the Bristol area would be welcomed by businesses locally, in particular the plans to create a better suburban rail network under the MetroWest banner. The CBI is also calling for tax

changes to encourage innovation, a move likely to find strong support from Bristol’s strong tech sector. John said: “We want to see the Government encourage innovation and enterprise by expanding the R&D tax credit to encourage development, as well as research activity.” And he added a freeze on long-haul air passenger duty would help small businesses to export products and services to growth markets such as Mexico and Indonesia. Exports is an interest shared by the Association of Chartered Certified Accountants. Head of taxation Chas Roy-Chow-

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www.bristolpost.co.uk/business

Wednesday, November 26, 2014

HEER, PLEASE MR OSBORNE

Expert eye Josephine Bush Tax partner EY, Bristol

WHAT IS THE AUTUMN STATEMENT?

● Officially, the Autumn Statement provides an update on the government’s plans for the economy based on the latest forecasts from the Office for Budget Responsibility (OBR). The forecasts, called the economic and fiscal outlook are published twice yearly, at Budget and at Autumn Statement. They look at the future performance of the UK economy, in this case for the period to 2018-19. The OBR provides an updated statement on the current state of the public finances and whether the government is going to meet its own fiscal objectives. The main objective, set by the government, requires it to balance its budget at the end of a rolling five-year period. A balanced budget means the amount spent by the government in a year, on things such as the NHS and welfare is equal to the amount brought in by things like taxes. In reality it has become something of a second Budget. It also gives the Chancellor the chance to stand up and talk about the economy and guarantee plenty of media coverage. Though this can be a blessing or a curse. Remember the pasty tax? If you’re a real enthusiast, you can follow the Treasury’s Twitter for latest information, using #AS2014. You can also check out EY’s analysis at ey.com/uk/autumnstatement. And we’ll post the important bits on the BristolPost.co.uk throughout the day.

Chancellor’s statement won’t give much away

Dear Mr Osborne We’ve been very good this year, helping our economy to grow. So for Christmas this year, business would like... ❆ Wholesale reform of business rates to make them simpler and fairer, from, the Bristol Post, Business West, CBI and pretty much everyone else ❆ More spending on infrastructure such as roads and rail, from Phil Smith of Business West and John Cridland of the CBI ❆ Scrap auto-enrolment pensions, Matthew Lea of Bishop Fleming ❆ A single and dedicated HMRC contact for each mid-sized business, Allister Weir, of Grant Thornton

GREATER BRISTOL

❆ Tax cuts to give incentives to hire and train young people, Phil Smith, Business West ❆ Export tax breaks, Chas Roy-Chowdhury of the Association of Chartered Certified Accountants

● Devolution for the regions has gathered momentum following the Scottish Referendum this autumn. The Coalition has already moved towards local authorities having greater control of how business rates are spent but it could be that the Chancellor goes further in the Autumn Statement. The Government wants regional powerhouses with their own agenda and responsibility to deliver economic growth in their respective area. It is looking for incentives to encourage areas including Bristol to take this path. The process is likely too complex to push through this side of the general election, but this could include steps towards local tax raising powers for those who grasp the regional mantle.

hury said: “Within the confines of U competition law we ought to conder offering a form of R&D style redit for SMEs which export.” But he said most importnt was stability. “We should ensure we o not get tax shocks, ut that changes are hought through and roperly exposed,” he aid. “We have an exemely complicated ax system and further nkering to aid one inustry or another will just dd to this further. The best thing r the economy would be a period of ability to help businesses plan for uture. “Without certainty, neither govern-

ments nor taxpayers can effectively budget or plan for their future actions.” Accoutancy firm Bishop Fleming thinks the perfect Christmas bonus for many smaller businesses would be to scrap the roll out of auto-enrolment pensions. Managing partner Matthew Lea, left, said: “It is costly to administer; it would be so much cheaper and easier to increase National Insurance payments, with those revenues ring-fenced for a better state pension.” It would be a major shock if that wish is fulfilled, however, as pension

reforms have been among the most radical steps this Government has taken and will be its main legacy. A survey of mid-sized companies by business and financial advisers Grant Thornton found almost half (48 per cent) liked the idea of a single and dedicated HMRC contact who knew their businesses. Allister Weir, partner and head of tax at Grant Thornton in the South West, said: “We are continuing to call for personalised account management for medium sized businesses by government and a dedicated team to look at their issues, which would provide the focus needed, while also identifying

any cumbersome processes that should be removed.” There are plenty of presents the business community is hoping for. But are any of them likely? Paul Falvey, left, tax partner at business advisers BDO in Bristol, put it: “Now that the political parties are gearing up for next year’s general election it is likely that the political decision making process will become bogged down. The fear is that the forthcoming Autumn Statement will not escape this and as a result turn out to be a damp squib.” Just a tangerine and maybe a lump of coal then.

HE Chancellor will deliver his Autumn Statement on December 3, but is not expected to muddy the waters and won’t give much away ahead of next year’s General Election. With the UK General Election in May 2015, a Scottish Election in May 2016 and a possible referendum on the UK’s membership of the EU in 2017, this is an uncertain time for businesses across the UK, and no less so in the South West. Additional uncertainty arises as the Scottish referendum earlier this year triggered a national debate about major constitutional change in other regions of the UK. The Chancellor now has the opportunity to build on this momentum and try to galvanise growth across the English regions. Change and further devolution of powers will still be forthcoming in the form of concessions from Westminster and greater control for the regions. But devolution will be an ongoing process and businesses in the South West must have a voice, continuing to engage with Government, local authorities and each other in maximising any benefits these new powers can deliver for the economy and identifying any challenges they create. Business leaders have urged the Government to focus on energy and infrastructure projects with businesses in the South West hoping for significant investment, which would have a significant impact on the region’s economic potential. For example, improvements to the A303 around Stonehenge to relieve congestion to the South West have been in demand for some time. Retail and small business groups have also been championing the need for business rates reform. The British Retail Consortium has encouraged its members to write to their MPs and has called for an extension of reliefs put in place last year and a commitment to overhaul the tax after the election. However, with income tax receipts expected to be below forecasts – due to weak growth in wages and borrowing up as a result – the Chancellor may feel that his hands are tied.

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www.bristolpost.co.uk/business

Wednesday, November 26, 2014

Focus on start-ups | Sponsored by THEME SPONSOR’S NAME HERE.

Cash flow finance

HOW FINANCE CAN HELP SMALLER Businesses are looking to scale-up to meet demand in a growing economy but many don’t know how to fund it. Gavin Thompson reports on some of the finance options to help your cash flow

EW figures show that only one in four small and medium-sized businesses in the South West have a business savings account. The research, by challenger bank Aldermore, found the main reason for that was that the business didn’t have sufficient cash flow to be putting money aside. At the same time, despite concerns over key trade markets such as the eurozone, the recovery is now widely seen as being in full swing. Many firms will be winning bigger orders than they are geared up to deliver. They face the challenge of how can they scale up quickly without a pile of money sitting in the bank. It’s a story that’s increasingly fa-

“ Most of our customers come to us because of cash flow. They are trucking along managing purchases but as soon as get big order, they haven’t got the working capital to service it.” miliar to Maurice Ezekiel, managing director of Ultimate Trade Finance, based in Bradley Stoke. “I had a client which supplies wooden cots made in Poland to some of the supermarkets,” he said. “They just received big order from Asda. As it stands they can’t do anything but I think we’re going to do a deal with them and we’re going to help that business grow.” Trade finance is one of the forms of lending that are alternatives to the traditional bank business loan. It means a business doesn’t need the money in the bank or a long history of accounts. Maurice says his team look at each case individually, but a small company with a big order from a good customer is just the kind of deal they’re likely to support. “Most of our customers come to us because of cash flow,” he says: “They are trucking along managing purchases but as soon as get big order,

Finance allows me to work with big clients Case study ● AFTER 20 years in the logistics trade, David Coombes was frustrated with the recruitment agencies he relied on to supply workers. “I felt none of the recruitment agencies I was using understood the challenges of the industry,” he said. So David decided to start his own agency, believing others in the sector might feel the same and could benefit from his knowledge. It’s a growing industry. Eight per cent of the working population work in logistics and distribution and it’s of increasing importance locally with the M4 and M5 making it an ideal place from which to connect to the rest of the UK. Logistics Job Shop is now a thriving business employing 70 people in offices across the UK. During the recession, he changed the business from a simply a recruitment agency to include a Monster-style jobs board. But the Clifton-based firm has only been able to succeed thanks to finance to help it manage its cash flow. LJS fills permanent and temporary vacancies and has set up different invoice finance facilities to cater for those different needs. The provider, in this case Bradley Stoke-based Ultimate Finance, will pay out a percentage of an invoice when it is issued, in return for a cut, and then David

they haven’t got the working capital to service it.” He sees it as something of a mission to help the economy. “Yes we’re in it to make profit,” he said, “but we are helping businesses to grow.” Traditionally, businesses using this kind of facility have tended to be importers but increasingly manufacturers are seeing it as an option too. “We’re seeing more manufacturing customers recently than I’ve seen in

● David Comobes of Logistics Job Shop in Clifton gets the rest when the customer pays. It keeps the cash flowing as filling permanent roles can take several months, so LJS can be waiting some time to get paid. When it comes to temporary vacancies, LJS has to pay the weekly wages to its workers right

past 24 years in the UK,” he said. “We’ve got a couple of engineering companies on the books, one of them making parts of Boeing. There’s a company manufacturing LED studio lights that are 93 per cent more efficient than traditional ones. We fund the purchase of components from abroad and they assemble them and sell the product. “We’re financing the SME sector, providing finance for new start companies, long standing companies

away but might have to wait a month for the employer to pay sometimes more. “The bigger the company is the slower it pays,” said David. “We want to work with them because of the volume and pedigree of these blue chip companies but the down side is they play much

looking for new sources of finance.” Because this kind of lending often has less to secure it, there’s a large amount of trust involved which means looking into the eyes of the company bosses and being confident they can deliver. Maurice says he has walked away from deals that looked good on paper. “We meet every new client,” he said. “We spend time to understand their business and often we can add value other than just the money from

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Fast, flexible cashflow solutions that help SMEs succeed Call 0800 121 7757 or visit ultimatefinance.co.uk

slower. “Often it is 90-day payment terms and one firm I work with doesn’t pay for two months in May because everyone is working on their annual results. “I couldn’t operate with this sort of clients without finance. it is critical to how we operate.”

doing that.” While new orders can great opportunities, David Roper, right, a partner in the Bristol office of accountancy and investment management group, Smith & Williamson, says growth can be a threat to a business too, simply because of cash flow problems. “Many businesses are still finding their feet again following the recession and cash flow can be a real issue, even for the most successful com-

www.bristolpost.co.uk/business

Wednesday, November 26, 2014

FIRMS SCALE UP QUICKLY Stationery firm expands by taking over rival

Expert eye Maurice Ezekiel Managing Director Ultimate Trade Finance mezekiel@ultimate finance.co.uk 0845 251 3030

Trade finance takes pain out of imports

Case study ● A TRADE and retail stationery supplier has expanded by taking over a former rival. Purple Office, based in North Street, supplies customers up and down the country and has recently integrated Click Office into its business. Purple Office’s range has increased over the years and is now a one-stop-shop for stationery, printing, furniture and confidential shredding, amongst others and is seeing year-on-year growth despite being in a competitive industry. Staff numbers have increased from six to 14 over the past two years. Directors Mike Peklivanas and Steven Tyler say that growth is possible thanks to a six-figure working capital facility through invoice financing. Mike said: “We truly enjoy what we do every day and are surrounded by a great workforce. “Our performance to date is quite significant and delighted at the demand for our products. “Click Office has complemented

our range and we are delighted jobs have been saved as a result of taking on this local business.” The firm’s finance provider, RBS, provided the £2 million turnover business with a £100,000 increase

in its invoice factoring to help cover the costs of the expansion. “We couldn’t be more delighted with the way the factoring facility works for our business which has enabled our growth and

expansion,” said Mike. “We are looking to increase our workforce and turnover in the next two years and confident we can achieve this with RBS Invoice Finance on board.”

panies,” he said. “It’s no coincidence that insolvency practitioners are at their busiest in the years after a recession when companies run out of money because they haven’t got the cash reserves to fund their expansion. Rising sales frequently mean escalating, up-front costs, including those associated with labour, stock and distribution. The ability to fund this gap can make or break a business.” David believes “good housekeeping” is the first step, before borrowing. “Prepare detailed, rolling, weekly cash flow forecasts to identify and respond to the companies’ needs,” he said. “If cash flow is likely to become problematic, act quickly. There are a lot more options available to businesses than there were, with banks, asset finance and invoice discounting all offering solutions. “Crowd funding is also proving to

be increasingly popular and there are a growing number of sites offering equity and debt-based funds to companies of all sizes. “Some businesses are using crowd funding to raise small amounts of debt, with interest calculated on risk and return. Others raise equity in exchange for investment. “As the old saying goes, the best time to ask for money is when you don’t need it. By planning ahead and presenting the crowd funding community with a positive and compelling case, businesses are far more likely to attract the working capital they need to achieve their growth aspirations.” Some still think crowd funding is just for start-ups offering equity in return for cash and established companies shy away because they don’t want to give away a stake in their business. But there are other forms of crowd funding such as

peer-to-peer lending. One new platform in the market, Money&Co, only lends to businesses with at least three years behind them. Founded by serial entrepreneur Nicola Horlick, right, it is aimed squarely at the SME market, connecting people looking for a better return on their savings with businesses seeking finance. Nicola visited Bristol recently to talk to the chamber of commerce, West of England Local Enterprise Partnership and a number of local businesses about this route. “Bristol and South West is attractive to us because it is growing,” she said. “It has the highest population growth in the country and there are lots of interesting businesses here.” In order to borrow through the platform, companies apply for the amount they want, Money&Co checks it over and approves or oth-

erwise, then individual lenders decide what they want to lend and at what interest rate (although if it’s over subscribed the higher interest rates are knocked off). The company then decides whether or not to accept the combined offer. Since launching in April, the platform has overseen more than £3 million loaned to a total of nine businesses. From crowd funding, to trade and invoice financing, there are more options then you might think. Sometimes the costs can be less than you’d expect too. For example have a trade finance deal behind you might help you negotiate better terms with your supplier because you’re less of a risk. Which then in turn helps cover the finance costs. The message is if that if you have robust growth plans and orders you need to meet, don’t just take no for an answer.

● Mike Peklivanas, director of Purple Office and Ian Hussey, RBS Invoice Finance Manager

MEs are increasingly importing foreign goods and selling them at a profit in the UK. However, many firms are surprisingly ignorant about how best to finance these transactions and lose out as a result. Let’s say you want to import a product from China, for a total of £100,000. You may have to pay a £30,000 deposit up front, then the balance once the goods arrive in the UK. You’ll eventually get this money back when you sell the products on, but you could be out of pocket for 90 days or more (and longer in the case of the deposit). Unless you have that kind of working capital sitting around this is probably a deal-breaker – do not pass GO unless you have £100,000! A traditional bank will look at your balance sheet and may decide the net worth of your company is insufficient. However, there are a few UK lenders who will look at things quite differently. Ultimate Trade Finance, for instance, specialises in transactional finance. This means we look beyond the balance sheet at the deal itself, and at the experience of the company directors. Provided we are satisfied that they know what they are doing, and that they have a confirmed order from a reputable buyer, we have two types of facility. Space does not permit explaining them in full here, but the more innovative of the two involves a combination of Trade Finance and Invoice Finance to offer a completely integrated supply chain finance solution. There are several major benefits to this. With our backing, the company may be able to negotiate better terms with their supplier and thereby that cover their costs. What’s more, when the order has been delivered by our client and they have invoiced the goods, the invoice finance facility releases some of the final profit 30, 60, 90 days early, thereby providing immediate access to additional working capital. And, best of all, it often enables us to us to finance deals that would otherwise have foundered – transactions that are not just good for the business but for the UK economy as a whole.

Fast, flexible cashflow solutions that help SMEs succeed EPB-E01-S3

Call 0800 121 7757 or visit ultimatefinance.co.uk

In pictures Inspiring Women Live!

Get on board Women urged to seize every opportunity to become key decision maker

OMPANY’S without women on their boards are an opportunity, according to one leading businesswoman. Bray Leino learning director Stephanie Morgan was talking at Inspiring Women Live! about how women should pursue board appointments to ensure that they are represented at decision making level. Referring to the latest annual progress report into Women on Boards, publicised by Lord Davies of Abersoch earlier this year, Stephanie said: “The Lord Davies report has done us a favour and raised the profile of women on boards, but there is still a long way to go. “Every time I now see a board with no women, rather than feeling disheartened, I think – yes, a new opportunity!” Stephanie pointed to the value women can bring to boards, referring to statistics which indicate that organisations with women at board level tend to be more profitable. Finally, she urged the women in the group to apply to become a board member for any organisation or company she felt passionately about, so they can really make a difference. More than 30 businesswomen gathered for the event at Hannover Quay, Bristol. It was organised by events specialist Amanda Kerin.

● Karen Lowe

● Stephanie Morgan

● Liz Wong

Each one features two speakers who urge businesswomen to prioritise their personal development whilst also assisting them to pursue professional goals. Image consultant and personal stylist Karen Lowe spoke about why image matters and how the clothes we wear can have a positive or negative impact on how we feel about ourselves. She said: “Whether we like it or not, people make decisions about you based on what you wear. You are your own shop front.” Karen explained that she often works with women who have lost confidence in the business world for a range of reasons, maybe following children, menopause or stress. Karen said: “Creating a relevant style can be an invaluable way to regain that confidence and give you more self-assurance in your working life.” Elizabeth Wong, founder of wedding venue styling company Elizabeth Weddings, said: “It was a great evening - the event was very engaging the speakers were really inspiring!” The next Inspiring Women Live! event is the Christmas social on Monday, December 8, 6.30-9pm, at Revolution Bar, Baldwin Street, Bristol. For more information visit www.inspiringwomenlive.co.uk.

In pictures Ladies Who Latte

Part of the Local World group

Staging your event doesn’t have to cost a fortune... AN Event Services provide audio visual equipment and support for all your event needs. We offer a professional and experienced approach with pre-show, on-site and post-show technical support.

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● Carolyn Porch, of Emersons Green Treatment Centre, and Jo Rymell, graphic designer; below, Sarah Parrott Pictures Michael Lloyd

Drop in for coffee and share your ideas SARAH Parrott and Liz Mizen of New World Business held the second Ladies Who Latte event in Warmley. The networking event is for all women in business. It is designed to offer flexible networking with a less formal approach. Sarah said: “Whether you have 15 minutes to pop in, or you stay for two hours, we hope that you will find it a well earned break to share ideas and most importantly gain motivation from other entrepreneurial women.” There are no speakers, you don’t need to pay to attend – just buy

your coffee and mingle. The concept was launched eight years ago and in less than a year it grew to more than 600, and now stretches across England where it is estimated there are now more than 8,000. Liz and Sarah’s event is one of the newest. Sarah added: “Should any woman interested in starting her own business or those already in employment or home working require more information, get in touch.” The contact email address is: sarah.liz@newworldbusinesscentre.co.uk.

In pictures Smith & Williamson’s annual client event

Special feature

takingadvantage oFtheimproving

Economy Be enterprising and diversify

● Smith & Williamson’s annual client event at the RWA in Clifton

‘Our thank you to our loyal clients’

USINESS owners and directors, professional advisers and customers were among over 450 guests who attended Smith & Williamson’s annual client event at the Royal West of England Academy (RWA) in Clifton. Accountancy and investment management group, Smith & Williamson, which has around 180 staff at its Bristol office, hosted the drinks re-

ception. Business and private clients as well as contacts and friends of the firm enjoyed the RWA’s 162nd Annual Open Exhibition of more than 500 works of art, including paintings from HRH The Prince of Wales. The firm’s managing partner Mike Lea said: “We had another excellent turnout this year and were delighted that so many people were able to join

us. It was an opportunity to thank our clients for their ongoing loyalty. “We hope they enjoyed the evening of art and conversation as much as we did.” The Royal West of England Academy’s Annual Open Exhibition showcases an eclectic range of paintings, drawings, sculptures and other artworks for sale, and runs until 7 December 2014.

or many small businesses, the recession was a time to scale back and streamline their businesses but those that survived have come out stronger, more efficient, with greater productivity and, importantly, with a sustainable business model. In 2015, the UK economy is set to accelerate. So how can these entrepreneurs and businesses take advantage of the positive outlook? The UK Government is now providing SMEs with much-needed support, from innovation-friendly start-up visas, tax breaks for angel investment, reform to the UK’s intellectual property regime and Entrepreneur’s Relief, all designed to sustain entrepreneurs. There are 24 Enterprise Zones in

the UK and they are great places to do business for both new and expanding firms. Businesses can access up to 100% business rate discount worth up to £275,000 per business over a five year period, simplified local authority planning, government support to ensure that superfast broadband is rolled out, and, 100% enhanced capital allowances (tax relief) to businesses making large investments in plant and machinery. Businesses, however, are still cautious. No longer are they relying on one major contract. Diversification is imperative, so look at the growing sectors in the UK to see if your organisation can add value and services to these sectors.

● John Erskine, partner at Smith & Williamson with Aardman Animations’ Peter Lord and David Sproxton, and Mike Lea, managing partner, Smith & Williamson, Bristol

● Simon Smith and Kevin Jones of Clarke Willmott with Mike Lea, managing partner, Smith & Williamson, Bristol

GALLERIES GALORE

FOR MORE PICTURES Check out our website at bristolpost.co.uk/business

● Mike Lea, managing partner, Smith & Williamson, Bristol, with Harry and Laura Marshall of Icon Films

Steve WilSon, Director of Corporate Banking Bristol

Gina Fucci, Managing Director of Films at 59

With any business, it’s vitally important to have a sound plan, and my team can work with you to make sure you’re prepared. We’ll work out which direction you want your business to go, and we’ll make you aware of the challenges you might face. It’s inevitable that you could face difficult times but that doesn’t need to spell disaster if you have strategies in place. We can also use our perspective to make sure you’re making the most of every opportunity, whether it’s networking or digital skills, so that, when times are good, you’re reaching your full potential.

It’s exciting that our economy is improving as it has been through great difficulty since 2008. People are feeling more confident. We still need to be cautious, but there are opportunities. While consumers have been spending time at home watching moving images on TVs, tablets, computers or mobile phones - the companies that buy the content and ‘transmit’ the images have been changing. To meet viewer demands, we have to be flexible and able to supply storytellers with the latest technology to deliver everything from low resolution to 8K!

To find out how RBS can help your business take advantage of the improving economy

● Nick Thornley, John Prior, Dean at Bristol Cathedral David Hoyle and Lord Lieutenant of Bristol Mary Prior

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● Sienna Clarke and Stella Clarke

visit rbsbusinessconnections.co.uk call Steve Wilson on 07919 210737 or email steve.j.wilson@rbs.co.uk

www.bristolpost.co.uk/business

Wednesday, November 26, 2014

The back page

Your digest of the week in business

Places ● A new training centre in Bristol is showing the way for collaborative working to combat skills shortages. The British Engineering Manufacturers’ Association training centre is providing practical training for 12 engineering apprentices from businesses in the local area. Six SMEs came together to invest £120,000 in the new centre so they could ensure their recruits got the training needed for their businesses. The firms, Broadway Engineering Ltd, DS Machining Services Ltd, Nylaplas Engineering Ltd, McBraida PLC, Ravenscourt Engineering Ltd and Reynolds Engineering Ltd, each have at least one apprentice at the centre. Ian Mynett, BEMA director of training, said: “Businesses in the West of England are willing to put up money to close the skills gaps – and it is working.” The West of England LEP Skills team also helped get the project off the ground.

● Bristol law firm Veale Wasbrough Vizards (VWV), scooped the Deal Makers award at the annual EducationInvestor Awards ● Left to right, Chris Haigh, Matthew Hutch and Jay Ridings

● Insurance group Brightside is looking for traders to join a Christmas market at its offices

● Reed Specialist Recruitment has relocated its Bradley Stoke office to the Willow Brook Centre. The recruitment agency has opened a 1,200 sq ft office on the first floor of the shopping centre. James Thomas, manager of the six-strong team, said; “We are really pleased to open a branch at Willow Brook. The centre puts us in the heart of the community and is so easily accessible for job hunters.” The deal by Alder King and WGH means the office accommodation at the centre is now fully let. ● Insurance group Brightside is looking for traders to join a Christmas market at its offices in Aust. The firm is looking for professional and amateur traders to sell their goods and help raise money for local charity SARA (Severn Area Rescue Association) on Wednesday, December 3. Contact events@brightsidegroup.co.uk for details.

Prizes ● The education team at Bristol law firm Veale Wasbrough Vizards (VWV), scooped the Deal Makers award at the annual EducationInvestor Awards dinner.

The awards celebrate innovation and excellence amongst businesses and organisations in the education sector. Managing partner Simon Heald said: “It has been a particularly good year for us in terms of the size, number and profile of deals that we have undertaken.” ● Paintworks-based e3 has picked up another award, winning best Automotive Campaign at The Digitals 2014. The “Our cars speak for themselves. Our customers speak for us” campaign focused on a partnership with Reevoo, to create the UK’s first automotive

multi-channel independent review platform, allowing customers to post un-moderated comments about their car directly on the manufacturer’s website. Neil Collard, managing director of e3, said: “This was a trailblazing campaign not only for Kia, but for the automotive market in general and has yielded fantastic results.”

People ● Independent building and property consultancy Tuffin Ferraby Taylor has made three new appointments at its Bristol office as a result of the continuing expansion of its business in the South West.

Chris Haigh MRICS and Jay Ridings MRICS both join as senior building surveyors working on professional and project work, while Matthew Hutch joins as a graduate building surveyor. Neil Gilbert, partner at the Bristol office, said: “These appointments follow a very successful 12 months for the Bristol office and an upsurge in instructions across the South West. As we look ahead to 2015 – when Bristol takes its role as European Green Capital – we are pleased to welcome Chris, Jay and Matt and look forward to working with them as we continue to take advantage of the growing opportunities across the region.” ● Accountancy and business advisory firm BDO LLP has strengthened its Bristol office with the appointment of Paul Falvey, above right, as tax partner. Paul has been based in Bristol for the last 17 years, most recently at Baker Tilly. He will focus on developing BDO’s mid-market offering to clients. Paul said: “As the economy continues to pick up, we will focus on providing tax advice to companies looking to expand, helping them to deliver their strategy as well as assisting them in meeting their increasingly onerous compliance obligations.”

How to make a sharp exit from your business

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NE day, by whatever means, you will exit your business. Preferably you will still be alive and in control when this happens. The most common strategies are ● Trade sale ● Private equity ● Management or employee buyout ● Transfer or sale to the next generation ● Voluntary liquidation Trade sales can include customers, direct competitors, or organisations within your industry wishing to expand their product or service range. No-one is going to pay you for your business if you make it cheaper and easier for them to poach your employees, steal your customers, or copy your ideas. Creating great value means you need to ensure your business is an investment not a lifestyle

Know how Andrew Fisher Executive director Alanbrookes Ltd 01934 863386 AndrewFisher@ Alanbrookes.co.uk www.alanbrookes.co.uk

option. Profiling would-be buyers and adapting yourself accordingly will certainly make a difference as to whether you manage to sell your business; it may also be a key driver in increasing the value of your business many times over.

There are ways to manage a staged transition and payment terms, but history is littered with examples of people falling out after the deal. Get some rock solid advice as to how to protect your interests (especially your intellectual property rights) during any earn-out period and always have a plan B. Only some businesses will be large enough to attract private equity, but if you are in this fortunate position, the buyers will usually be looking for a business that has a defendable market position, with sustainable earnings, and is scalable, with identifiable growth opportunities. Management and employee buyouts have been around a long time; but using the Co-operative structure to facilitate employee buyouts is a more unusual and exciting route. Co-ops offer financial and operation-

al advantages, are statistically more resilient to economic uncertainty, and operate in an exceptionally benign tax environment. In addition to entrepreneur’s relief on capital gains and business property relief on the transfer of a qualifying enterprise, Co-ops can also be used to hand down a business to the next generation within an overall “family office” type structure. Finally, you can follow the route of 18 per cent of privately owned businesses and simply close the doors and cash in what’s left, but get advice about how to take advantage of the rules surrounding capital distributions. You don’t want to be taxed on the resultant cash as if it were income. Now for a warning – your business may be worth less than you or rose-tinted spectacle-wearing busi-

● Nicky Williams has joined Venture Insurance, the independent brokers based in Kings Parade Avenue in Clifton, increasing the team to 11 staff. Nicky brings more than 25 years of experience in a range of commercial insurance . She said: “I’ve known various members of the Venture team for many years, I wanted to come back to an independent brokers and it’s exciting to be part of a growing business. “We’ve have some very strong relationships with insurers. And for me the key difference of working with an independent company is the relationships you grow with your clients.” ● Grant Thornton has launched a dedicated team to offer consultancy services to local authorities, police bodies and fire and rescue authorities across the South West. The new team is part of the firm’s wider public sector assurance practice. It will be headed up by Ginette Beal, left, in the South West. She said: “I am excited by this opportunity, and confident that the team will be able to provide distinct added value to our clients, and to support them in the significant challenges they face over the short to medium term.”

ness brokers think. None of the above exits will give you optimum value if the business is wholly dependent on you – it needs to be systemised so that your successors can run it every bit as well as you. Read Michael Gerber’s “E-Myth” and all will be clear. Running your business is one thing but designing an enterprise which is an attractive investment is where the real wealth is generated. Whenever you get a chance, work on, not in, your business making sure that you and your advisers, especially those with experience of running their own businesses, focus on making relentless incremental improvements, thereby increasing the capital value of your enterprise. The effect on value can be tracked on a regular and scientific basis if your accountant has the requisite valuation software. You only get to exit your business once – make the most of it, if only for your family’s sake.