Inside this issue... Andy Bounds on Board (not Bored) meetings Wirral Town Group You can take an Accountant out of the Office...
Features: Corporate Recovery Alternative Funding
plus much more...
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Issue Four
Spring | 2013
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CharteredOne | Issue 4 | Spring 2013
INSIDE THIS ISSUE 24 ANDY BOUNDS - HIS NEW BOOK
GET IN TOUCH WITH THE MAGAZINE TEAM... Advertising/Features: Roger Swift - 0845 643 5551 roger.swift@crosbyassociates.co.uk
Editorial:
27 LORD MAYOR OF LONDON VISITS
Martyn Best martyn.best@documentdirect.co.uk Chartered ONE is designed and published on behalf of the Liverpool Society of Chartered Accountants by Crosby Associates Ltd.
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MERCHANT TAYLORS DOES THE BUSINESS
www.crosbyassociates.co.uk Š All rights reserved.
The Presidents Words
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Insight 7 Apprentice Challenge
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LSCA ANNUAL DINNER
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Student Society 13 Corporate Recovery
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Bored Meetings 24 Wirral Town Group The Liverpool Society of Chartered Accountants was founded in 1870 and is the oldest district society in the Institute of Chartered Accountants in England & Wales, and was one of the four founding societies of the ICAEW. The Society has an illustrious history and has provided in Harmood Banner, Arthur Green and Ian Morris, three National ICAEW Presidents. Awarded the Freedom of the City of Liverpool in 2012, the Society continues to play an active role in local and ICAEW issues. As a world leading professional accountancy body, the ICAEW provides leadership and practical support to over 138,000 members in more than 160 countries, working with Government, regulators and industry in order to ensure the highest standards are maintained.
moc.kcotSnepOrotceV.www
Our members provide financial knowledge and guidance based on the highest technical and ethical standards. They are trained to challenge people and organisations to think and act differently, to provide clarity and rigour, and so help create and sustain prosperity. The ICAEW ensures these skills are constantly developed, recognised and valued. Because of us, people can do business with confidence. The ICAEW is a founding member of the Global Accounting Alliance with over 775,000 members worldwide.
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Lord Mayor of London Visit 27 ICAEW BASE Game
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Annual Dinners 34 Beer Tasting 36 Golf Society 36 Calling all Voters
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CPD Programme
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Asset Finance 41 LSCA Members Conference
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Retired Members Conference
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Notice of Meeting
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Liverpool Town Group
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RAILEX - The Filing Specialists Holmes cocked his head in his customary quizzical manner. Smoke billowed across the room as he lit up his thirtieth pipe of the day. Watson recognised the look: Holmes was thinking.
“Really Holmes” snapped Watson, “you can’t keep blaming that poor, long-suffering woman for what you really should be able to take care of yourself. Why does such a keen mind surround himself with such chaos?”
“What’s the problem Holmes?” enquired Watson, staring over his copy of the Times.
As luck would have it, Mrs. Hudson then entered carrying a new set of sturdy files.
“That case with the hound, something still bothers me. Where did we file the casework for the whole ghastly incident?”
“Here” she said, presenting them to Holmes “I knew you would need this mess sorting out sooner or later, I got these from the Railex Filing stores. They are - in fact - the filing specialists, just who you need to solve your kind of a problem.”
Watson looked concerned; “It should have been filed in the usual manner” he said gruffly, looking towards the haphazard selection of files, curious objects and paraphernalia. He tried and failed - to hide his look of disapproval as he observed Holmes’ filing ‘system’. Holmes raised himself from his chair, approaching the aforementioned jumble with an air of determination. “Mrs Hudson!” he yelled, “why are my files in such disarray!?”
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Holmes looked surprisingly sheepish for a man with such a usual demeanour of arrogance. “You see” laughed Watson “quality filing really is quite elementary, my dear Holmes!”
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Chartered One | Issue 4 | Spring 2013
FOREWORD
The President’s Words Welcome to the latest issue of your Chartered ONE. It’s been a busy few months since my last foreword and I can hardly believe that my year as President is nearing its end. Although many of our members are in what is commonly known as the ‘busy season,’ whether finalising year- end numbers, completing tax returns or undertaking audits, there is, as ever, plenty for me to report upon. I am delighted to be able to say that our Annual Dinner, held in the Crowne Plaza in November, was a great success and, in these difficult economic times, it is heartening to see that what we obviously regard as the premier business event of the year is still well attended. Thank you to all who supported this. In January the City of Liverpool welcomed the Lord Mayor of the City of London, and I was fortunate to meet him, and present some of the views of our local members.
an initiative to connect better with all of our members. In that respect please look out for a members’ survey which we plan to launch in the next month or so. We need to know what you, our members, want from the ICAEW and the Society, so I look forward to a good response rate, with lots of actions and ideas to build into our future plans. Within this issue we have two main features, one on Corporate Recovery, and one on alternative means of funding your and your clients’ businesses.
February brought to our region a heat of the ICAEW BASE game for Students taking their A My year as President is nearly over and I can Levels, and we also held a joint beer tasting say that it has been immensely enjoyable and event with the Liverpool Law Society at the Ship I would like to sign off here with a big vote of & Mitre, and not munsurprisingly oc.kcotSnethe pOevent rotcewas V.wwwthanks to you all for your support. sold out! More details are reported elsewhere within this issue. Regards, I have also recently undertaken a number of visits to our members in business as part of
Paul Christian President
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Octopus expects it to be a recordbreaking year for Venture Capital Trusts The recent announcement from the Financial Services Authority (FSA) that it was reconsidering its proposals to restrict the sale of Venture Capital Trusts (VCT) has been warmly received by the VCT industry, financial advisers and by retail investors alike. Paul Latham, Managing Director of Octopus Investments, explains. Restricting the sale of UCIS
The VCT market is still open for business It’s great news that the FSA is listening to the concerns of VCT investors, and recognising that many retail investors have benefitted greatly from the tax incentives and the performance of their own VCT investments. As a result, with tax year-end fast approaching and with VCTs still available to retail investors, it seems likely that 2013 will be a recordbreaking year for VCTs. New share offer: four thriving VCTs to choose from
Last year, a consultation paper issued by the Financial Services Authority proposed a ban on promoting unregulated collective investments. At the time, there was some concern that Venture Capital Trusts would fall under the proposed ban, thereby deeming them as ‘unsuitable’ for retail investors.
We’ve just launched new share offers on four of our most popular VCTs: Octopus Titan, Octopus Apollo, as well as our Octopus AIM and Second AIM VCTs. Each new share offer allows clients to ‘hit the ground running’ by investing into established VCTs that are already paying out tax-free dividends.
An unfair comparison?
Why invest with Octopus?
At the time, the proposal, and its implications for VCTs, seemed like an unintended consequence of some wellmeaning regulatory changes. After all, whereas some unregulated investments, such as timber funds, or property portfolios, make it hard for the investors to sell their holding and get their money back, a VCT on the other hand is an established and proven investment product for retail investors that has been around for 18 years and is part of a well-regulated and mature industry.
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Octopus manages more VCT money on behalf of investors than any other VCT provider – in fact, one in every four VCT investors chooses us to manage their money. We’re one of only two companies to have ever been AAA rated by Citywire and we were awarded the ‘Five Star Service Award’ by Investment Adviser last year.
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Chartered One | Issue 4 | Spring 2013
INSIGHT Welcome to the fourth and latest edition of your quarterly bulletin, Chartered ONE. Whilst our President has outlined the activities he has been involved with over the past few months, and future Presidents will continue to do so, I thought it might be useful to highlight what the purpose of Chartered ONE is, to point you to some of the features and article in this issue, and to ask you how you would like YOUR newsletter to be. BACKGROUND The Liverpool Society of Chartered Accountants Chartered ONE newsletter is now ONE year old, and was produced during my year as President.
THIS ISSUE We have two leading features - Corporate Recovery and alternative Funding - which have been supported by a number of our advertisers and partners. These are two burning issues of the current economic climate, and I hope you find them technically interesting and relevant for you.
I wanted us to have a better medium for communication of the Society’s activities, and to help keep you in touch with what your Society and fellow members are doing.
Many of you may know Andy Bounds - either from your own student days, or as a fellow Society member, or indeed as a well-known speaker, and now international best-selling author. He very kindly penned the “Bored Meetings” especially for our Society, and has also donated one of his books to be given to a lucky member. If you would like to be entered into the draw for this, just drop me a note giving two names of people who have endorsed the book ! I’ll make the draw on 30th April.
The issues have evolved, and will keep doing so in response to your own wishes, ideas and thoughts. So, please email me at martyn.best@documentdirect.co.uk if you have any opinions.
Thoughts for coming issues include: • Members professional and personel news • Firm’s News • A spotlight on... • Social Activity moc.kcotSnepOrotceV.www • Comments/Feedback • Letters page • Special Features
THE FUTURE We have a number of carefully planned courses coming up in the next few months, and of course the Annual Conference is planned for 13th June. Full details are within, so please do book and support the Society. Our next issue will be towards the end of Summer, so please do send me your thoughts and any content you’d like us to consider for publication. That’s it for this issue, and I do hope you enjoy the following pages. My very best wishes to you all, Martyn Best
You can also join our Society’s LinkedIn group it’s very easy to find within groups on LinkedIn
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Ralli support various charities including Factor 50, which is the melanoma patient support group started by Ralli’s PR & Manager, Gill Nuttall, back in 2007. Factor 50 has three Ambassadors, all chosen extremely carefully. David Healy MBE, Andy Flower OBE (England’s director of cricket, himself a melanoma sufferer) and Tim Lovejoy (his Grandpa died of melanoma) The Ambassadors were selected very carefully indeed and they are truly connected. Last year they continued their charitable efforts as a firm, and raised several thousands of pounds for various causes, all close to their hearts. They did sporting events, corporate events, collections, sold Christmas cards, wrist bands, the daughter of one melanoma patient sold some of her artwork, raising almost £5,000. All told, despite the economic climate, 2012 was a very good year and Ralli is very proud to be associated with some fine charities. Looking forward to 2013, they intend to continue with the work that they do and on 18 May 2013 Ralli will be hosting the 3rd “His and Hers” Charity ball. This will be at The Point, LCCC, Old Trafford, Manchester and bookings are now being taken. In previous years, we have enjoyed some great entertainment at the Ralli Factor 50 Balls, and we hope that this year will be no different. The event is sponsored by Ralli and various other sponsorship opportunities are available. Current confirmed sponsors are; Wigmore Media, David M Robinson, Acrobat and Uvistat. Full details of the event can be found at: http://www.ralli.co.uk/news Contact Gill Nuttall for details: Tel: 0161 615 0730 email: gillian.nuttall@ralli.co.uk
Why us? Our Commonwealth history and the region’s humanrights record give us the upper-hand as a destination for British products and services. We have a working knowledge of the UK’s economy and way of life and appreciate its demand for growth and expansion. We know what you value and can represent you with confidence. No politics involved. Satisfaction guaranteed.
Why now? The reality of globalisation and current events facilitates an opportunity for a shift in world trade trends from being merely economically driven, past being green to being ethical and fair. Our people are lovers not fighters. We believe the future belongs to those who like us, value history and celebrate culture.
Why you? Why not you? Here is an opportunity for you to sell you products and services among the settled communities of sub-Saharan Africa and to source all manner of raw materials ranging from wild honey to copper cathodes. On your behalf, we will bring your British Brand to the region’s doorstep in a language and culture they can understand. No red tape. Results focussed.
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Downing Flexi-Offices ACROSS LIVERPOOL CITY CENTRE: FROM ONE PERSON, FROM ONE MONTH
THE OFFICE SPACE YOU NEED, FOR AS LONG AS YOU NEED IT, AT AN IRRESISTIBLE INCLUSIVE RENT. JUST TELL US WHAT YOU WANT…
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FOLLOW US FOR EXCLUSIVE DEALS @DOWNINGGROUP
Flexible office space: Where what you see, is what you pay for No one likes surprises, especially ones which come with a sting in the tail. What you think might be the perfect office when you sign the lease can quite often come with add-on fees and overheads you weren’t expecting. Downing, Liverpool’s largest commercial landlord, has developed a simple solution for any business in need of a quality office at a great price – FlexiOffices. Flexi-Offices provide high-specification office suites with flexible, low-cost leases without any surprise add-on fees – what you see is what you pay for. Robin Ellis, senior agency surveyor, said: “We’ve listened to what occupiers have told us and with Flexi-Offices, customers get all the flexibility of a serviced office, with a monthly rent that is fully inclusive, but without any of the expensive addons that can sting occupiers after they sign up to a serviced office.” Under the scheme, suites ranging from 100 sq ft are available for one month upwards and are ideal for a variety of businesses from one-person start-ups, SMEs and larger companies looking for a Merseyside base.
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Flexi-Offices are now available in a number of Downing’s Liverpool buildings including the newly created suites in 1 Old Hall Street. Complementary facilities are also available to Liverpool Chamber of Commerce members who can take advantage of their free Membership Suite in 1 Old Hall Street. This includes Wi-Fi, hot desks, meeting rooms as well as access to business development services. Robin added: “1Old Hall Street is a prominent building in our portfolio, and we are pleased to unveil brand new Flexi-Offices in the heart of the commercial district. They have been immensely popular since launching last year, and we’re sure even more companies will take advantage of these new suites given their central location and great value - your own dedicated office in an address like 1 Old Hall Street for a couple of hundred pounds a month is proving hard to resist.” Flexi-Offices are available across Downing’s city centre portfolio including No 1 Old Hall Street, Victoria House, James Street, Federation House, Hope Street and The Portal at the Grade II Listed Port of Liverpool Building located on Liverpool’s World Heritage waterfront site. For more information please visit www.downing.com
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WE’VE BEEN PROVIDING BUSINESS FINANCE FOR OVER 75 YEARS Economic recovery is underway albeit fragile and uncertain; however, small & medium sized businesses are essential to the sustainability of this recovery. Conister Bank, through its UK subsidiary Conister Finance & Leasing is providing vital funding to the SME market in England and Wales. Conister Bank was established in 1935 and is licensed and regulated by the Isle of Man Financial Supervision Commission. Funded entirely by deposits Conister Bank is able to provide competitive SME funding, for a wide range of assets including commercial vehicles, manufacturing equipment, IT and& telephony, to name a few. We take a flexible approach and evaluate every opportunity on its individual merits, as well as providing genuine commerciality in our decision making process. We are able to offer quick decisions, processing and payment. We work with you to create a finance product that meets your needs. Contact us if you would like to find out more about how we can help you.
All loans are subject to status. Terms and conditions apply. Minimum age 21. Early settlement fees apply. An acceptance fee may be charged.
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Working in partnership For you... • We protect your reputation • We add to your services offering • We control costs through Direct Access
For your clients... • We understand the pressures they face • We deliver a speedy resolution • We can control costs with transparent charging
We specialise in... • Commercial & company law • Dispute resolution & mediation • Estate planning & inheritance • Insolvency, partnerships & LLPs • Property, landlord & tenant • Specialist & general tribunals • Trusts & taxation
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tlantic Chambers has been at 4–6 Cook Street, Liverpool, since relocation in 2003, but can trace its history to the beginnings of the Liverpool Bar. Today, fifteen members make up the Chancery and Commercial Group, providing advice, drafting and advocacy before all Courts and before a variety of specialist tribunals – for instance the First and Upper Tier Tax Tribunals. Almost any legal dispute can raise accounting issues. There may be a concern that assets held in trust have been mismanaged or mixed with other assets, though to what financial effect may be difficult for a lawyer to say without an accountant’s input. The client may allege the existence of a partnership, but his lawyer may have little idea what a share in this partnership would be worth.
Equally, for every individual or business retaining the services of an accountant, legal issues will at some point arise. Advice may be required in restructuring the shareholding of a company, in challenging VAT assessments, in negotiating new lease terms or in drafting share purchase agreements. And when those running a business fall out, their accountant will often be the first port of call – for both sides! Instructions can be accepted through Direct Access; it is often unnecessary to involve solicitors. Above all the Group appreciates the client’s need for advisors to work together toward clear goals, and its members can provide the legal experience required, whether in trusts and taxation, estate planning and inheritance, insolvency, or any aspect of the law governing companies, partnerships and LLPs.
Please contact us to discuss how we can help your practice and your clients.
4–6 Cook Street, Liverpool L2 9QU Tel: 0151 236 4421/8240 Fax: 0151 236 1559 or 0151 227 3005 DX: 14176 Liverpool Email: clerks@atlanticchambers.co.uk Web: www.atlanticchambers.co.uk
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Apprentice Business Challenge 2013 ICAEW is hosting a national skills competition for apprentices on the Accountancy, Professional Services and Project Management Higher Apprenticeship programmes. The competition, part of the WorldSkills UK portfolio of competitions, is an exciting interactive business game that will enable apprentices to compete against each other to be crowned the 2013 Apprentice Business Challenge champions. Taking on the role of business advisers, apprentices will compete in teams at one of three regional heats held in Leeds, Birmingham and London on the 21st, 22nd and 23rd May 2013. The teams will be made up of a mix of apprentices from across the different apprenticeship frameworks, organisations and industry sectors, providing a unique learning and development experience. Teams will work through a case study detailing a reallife business issue. They will then be required to analyse the information, propose a
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solution and present their recommendations to a “We’re also especially judging panel in the form of pleased to be hosting a presentation and written the Apprentice Business report. Challenge, which will The judging panel and enable apprentices to step competition mentors will be into the role of business on hand throughout the day advisors injecting dynamism to provide support, guidance and excitement into their and feedback. The judges training and development. will then choose a winning We’d therefore encourage team and a top-performing as many apprentices and individual apprentice. The employers as possible to take six top scoring teams from part.” across the three regional heats will ICAEW is committed subsequently be to broadening access invited to compete to the accountancy at the National Final profession including in London on 19th July 2013. the development
of non-university
Mark Protherough, routes for talented ICAEW Executive individuals. Director - Learning & Professional Development, said: “ICAEW The Apprentice Business is committed to broadening Challenge is sponsored access to the accountancy by PwC with support profession including the from the Management development of nonConsultancies Association university routes for talented (MCA), the Association of individuals. We’re therefore Tax Technicians (ATT), Skills delighted to support Higher CFA and the Association Apprenticeships, which of Accounting Technicians help to develop the skills (AAT). and commercial awareness www.VectorOpenStock.com required in the workplace.
To enter the competition please register online. For further information visit www.icaew.com/abc or contact us now on 01908 248 250 or email abc@icaew.com.
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Chartered One | Issue 4 | Spring 2013
Chester & North Wales Student Society Chester Race Day The Chester Finale Race meet was the venue for the first CNWCASS social since its revival. 13 Students met at the Pursglove & Brown offices in Chester for a buffet lunch and a chance to get to know each other.
Allwoods winning the award for staying out the latest!
The day was toasted by guest speaker Robin Dillamore – Chairman of Chester & North Wales Society of Chartered Accountants. He spoke words of encouragement for the recent revival of the society and expressed support for the event.
A big thank you goes to the partners of Pursglove & Brown for allowing us to use their boardroom and to all the committee members who helped to ensure the day ran smoothly.
The group took a short walk over to the racecourse where they worked together in teams to place their bets. The early signs of success were less than promising – putting all your money on the first race wasn’t the best idea boys! – but a good laugh was had by all.
Thanks to Robin for taking time out of his Saturday and for showing his support for the event.
An evening meal at Duttons followed the days racing, a two course meal was enjoyed by all as well as a few bottles of wine.
The day was toasted by guest speaker Robin Dillamore, Chairman of Chester & North Wales Society of Chartered Accountants.
The evening continued moc.kcointStonethe pOearly rotceV.www hours, with the boys from Champion
If you’re interested in any future events you can contact the CNWCASS Chair – Heather Townsend via email heather.townsend@mitchellcharlesworth.co.uk
FIND US ON FACEBOOK C&NWCASS Chester & North Wales Chartered Accountant Student Society
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Corporate Recover y Feature Bob Pinder, Regional Director, ICAEW Professional Standards - Corporate Recover y Recent troubles for high street retailers such as HMV and Blockbuster serve as an obvious reminder of the work insolvency practitioners do, but these are just two high-profile examples. For corporate insolvencies, in the fourth quarter of 2012 there were • 2,912 creditors’ voluntary liquidations; • 580 administrations; • 276 administrative receiverships; and • 151 company voluntary arrangements.
Each of these cases will have involved an insolvency practitioner working with both the business in question and its key stakeholders to achieve the best possible outcome for all parties. Working with distressed companies is not without its challenges. Many of those involved in an insolvency process will have lost money or even their livelihood so it’s little wonder the profession comes under scrutiny, particularly when it’s a high profile failure. As the UK’s biggest regulator of insolvency practitioners, ICAEW is working hard to ensure our licence holders’ views are heard in the debates affecting the sector. In December last year, the Business Minister, Jo Swinson, announced an academic review of the fees charged by insolvency practitioners. Our initial response was that any review of fees must be based on evidence. If it’s not handled carefully, this issue risks undermining confidence in the vital job insolvency practitioners do. Given the difficult circumstances creditors of failed companies often find themselves in, it’s no surprise that questions around the costs of the insolvency arise. It’s worth remembering, www.VectorOpenStock.com however, that it’s the failure of the company, not the insolvency practitioner’s actions, that has caused the creditors to lose money. And, the key here is to increase
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Chartered One | Issue 4 | Spring 2013
understanding of what is often a difficult and complex process. As an example, some of the work carried out by insolvency practitioners - which may not seem to benefit creditors directly - is required by law and is for the protection the wider business community and the public more generally. These statutory obligations must be considered as part of the review which needs to look wider than simply perceived value for money. We’ll therefore look forward to sharing these views and working with Professor Elaine Kempson from the University of Bristol who is leading the review and due to report back in summer 2013. Other changes announced by the minister include changes to the way complaints against insolvency practitioners are handled. A new process is expected to be in place this spring. For over a year now, ICAEW has worked with other regulators and the Joint Insolvency Committee to develop this package of reforms and we’re pleased with the agreed changes. These include:
• •
• •
Complaints gateway operated by the Insolvency Service giving creditors and debtors visibility of the complaints system; The publication of common sanctions guidance to which regulators must refer when deciding a sanction, making the sanctions system more transparent and consistent; The publication (for a period of at least a year) of all sanctions imposed by regulators, on a single web page hosted by the Insolvency Service; and Use of the same independent individuals for key roles in appeals by complainants and IPs (where regulators’ rules permit), aiding consistency.
For further information on these and other issues affecting the sector, members and non-members are encouraged to join ICAEW’s Insolvency and Restructuring Group. Membership is free to all ICAEW licensed insolvency mocpractitioners. .kcotSnepOrotceV.www We recently hosted a joint event with the Turnaround Management Association looking at the challenges faced by the hotel sector. This event was free for members of ICAEW’s Insolvency and Restructuring
Group and ICAEW’s Tourism and Hospitality Group, and future themed events are being planned. This year’s Insolvency and Restructuring Group Annual Conference will be held at Chartered Accountants’ Hall, London, on 11 June 2013 and will provide further insights into the future of the sector during these turbulent times. We also look forward to welcoming you to ICAEW’s insolvency roadshows in the north west in September. They’re free for our licence holders and their staff. If this article has whetted your interest in insolvency, why not study for ICAEW’s Certificate in Insolvency? The qualification gives you a solid grounding in insolvency and is great preparation for the Joint Insolvency Board exams you need to take to become an insolvency practitioner.
As the UK’s biggest regulator of insolvency practitioners, ICAEW is working hard to ensure our licence holders’ views are heard in the debates affecting the sector.
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NACFB helping fund UK businesses
Adam Tyler, CEO
The National Association of Commercial Finance Brokers was formed twenty-one years ago. It now comprises one thousand one hundred members and twelve directors, all of whom have current brokering experience across the full range of commercial finance.
Our aim is to smooth the path of finance from lenders to SMEs, and to lobby in Westminster on behalf of our members. As the regulatory body for UK commercial finance brokers, we had a presence at the Asset Finance Operations conference on 11 December last year. A panel of experts including the NACFB’s own Adam Tyler sat to discuss regulation of the Asset Finance market. One significant prompt for the discussion was the media’s reporting of recent leasing scams, especially culminating in a Panorama BBC broadcast in September 2012. More recently, in one twenty-four hour period our Chief Executive Adam Tyler was at an event where George Osborne and Vince Cable were both speakers, and then a formal meeting to discuss clean energy initiatives for SMEs. Nonetheless, it is the asset finance market that continues to dominate our discussions, because of two relatively recent news stories – the sad withdrawal of ING Leasing from the market at the end of last November, and the encouraging growth figures revealed by 2012’s NACFB member survey. Our survey had shown a 100% increase in the value of asset finance business during the last reported twelve month period, so we are keeping an eye on how the market is recovering from the ING news. Where is the commercial finance sector overall right now? It’s a long way away from where it was before 2008. From a total of £19billion commercial lending, we are recovering slowly and are back up to £8.9 billion as we enter 2013 – approximately £1bn of which comes from the asset finance sector. So we’re under no illusions about the scale of the task ahead of us. The first thing we can do at the NACFB is maintain a high profile and to lobby at the highest level. Over the last twelve months, we have added eighteen more funders to our lender panel . The shifting of our office from Exeter to London has resulted in a much higher profile where it really matters, as we’re only a short walk away from Westminster.
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The NACFB’s own website serves as a straightforward broker-search facility, helping small businesses find experts in their area. The events we run bring brokers into direct contact with alternative funders. That means the required flow of money is already in motion, and here is where asset finance and invoice finance in particular play a major part, by allowing businesses to control their finances as flexibly as possible. Invoice finance looks likely to play a greater role in the bigger picture all the time we are still in recovery mode, because it is among the appropriate solutions to needing short term funding. The NACFB seeks to represent the whole gamut of lenders and types of commercial funding, and to educate its members as to the benefits of each type. That means we need to know what they want us to say, and it means sometimes the government needs to know the answer to a specific set of questions relating to future policy. We are fortunate that our member brokers are very forthcoming when surveyed, and turn out in large numbers for the events that we run during the year across the country. As a result of all this free-flowing information direct from the front line, we hold a vast amount of upto-date data, ensuring that we can act as an effective mouthpiece at any time. For example, we can see that 29% of NACFB members have used asset finance at some point during 2013, and that the average deal size was £64,500. For factoring and invoice discounting the average fee has been 20% of the ongoing facility charge. All this data is updated and made available through the year. To find out more about what the NACFB does and what it can offer, take a look at our website:
www.nacfb.org
Contact details: For further information or pictures regarding this release or the NACFB, please contact Robin Skuse:
NACFB Hamilton House 1 Temple Avenue London EC4Y 0HA Email: adam.tyler@nacfb.org.uk Tel: 0207 489 2056
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Insolvency Comes Full Circle - Back to the Old School Insolnet is a new concept in the Insolvency market that aims to re-connect General Practice Accountants to the insolvency process, a connection they lost with the creation of the Insolvency Licence under the Insolvency Act 1986 Insolnet Accountants share in any insolvency fees generated from one of their clients, by being able to share the work. It makes sense from the perspective of the Accountant and the client as the Accountant is familiar with their client which ensures the cases are setup efficiently, and allows the Accountant to ensure his client interests are respected as the case progresses. By dealing with cases on a secure web platform, the Accountant and IP can work efficiently and effectively together, ensuring the client is dealt with correctly, and case progression can be monitored with ease Insolnet Accountants act as an agent of Findlay James, the Insolvency Practice that supports the Insolnet network, there are no onerous regulatory requirements for the Accountant to comply with. All cases are covered by Findlay James bonding and PII, at no cost or risk to the Accountant Insolnet has been designed and built in-house at Findlay James and is duly supported by our head office staff of IT technicians and Insolvency Professionals. CPD accredited training is provided to use Insolnet to administer cases, and covers routine insolvency technical issues.
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Statutory insolvency procedures are standard processes, and surprisingly straightforward to deal with using the Insolnet system, which provides the necessary systemic rigour to ensure cases are 100% compliant with statutory rules and regulations. The Insolnet case management system is on a secure web platform, designed for General Practice Accountants, to assist with routine insolvency case management processes, using the flexibility, security and efficiency of a web based platform, optimised for use on an ipad for maximum operating flexibility and marketing impact. If you are an Accountant who: • Is seeking to maximise your fee income from your client base in every way possible •Has clients who may require the use of insolvency procedures to resolve tax issues • Is interested in using insolvency services as a marketing tool to increase your general practice client base • Is interested in developing your skills and knowledge • Is interested in competing with your local IP’s rather than helping them Then please consider the Insolnet opportunity. As Insolnet is free to all registered users, what have you got to lose, except fee opportunities? Please contact Alisdair Findlay or Michael Davey on 01242 576 555 or email: ajf@insolnet.co.uk
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The office printer – the enemy within?
introduce more stringent levels of document security that comply with the new guidance.
“Businesses need to re-evaluate their existing printing and MFD fleet to enhance security, minimise waste and promote more flexible printing practices.� Tim Hubbard, Regional Sales Director, Altodigital comments on the challenges document security can bring to organisations.
Any organisation that holds personal information is affected, irrespective of size, turnover or structure. Whether you are maintaining customer records, storing payroll information, private employee details, or managing any other confidential lists, you will have to comply with the new EU rules and be able to demonstrate how and why you use, manage and protect sensitive data.
Over recent months there has been high profile coverage around the security of data and sensitive documents, such breaches have huge impacts on an organisations reputation and can significantly damage their brands, not to mention the financial and legal implications. In the IT arena security continues to be a key item high on the agenda, but protecting and securing the print environment is still an area which continues to be overlooked by the majority of organisations and the risks are significant. The adoption of multi-functional devices (MFDs) assist in cost reduction and a greener carbon footprint, but their ability to print, copy, scan and fax, leaves everything that goes through the device extremely vulnerable. Just as with any computer, MFDs have a hard drive which stores every piece of information that is processed through it. ARE YOU AWARE OF THE RISKS? It has never been more important to invest in the safe management and security of printing devices and MFDs. Left in the wrong place, faxed, printed, scanned and copied documents are as vulnerable as any other piece of information that an organisation manages. With more onerous EU proposals being introduced with regards to the protection, management and handling of personal data, companies large and small are required by law to
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YOUR MOST CRUCIAL ASSET IS BEING THREATENED The fact is, left unsecured printers and MFDs can pose a significant security risk. As shared printing environments become more complex and increasingly mobile employees print from smartphones, laptops, tablets and other devices, there is a real chance that your sensitive documents could end up in unauthorised hands. Tim Hubbard is the Regional Sales Director for the North West region at Altodigital who specialise in Managed Document Solutions and the security of documents. MORE INFORMATION Please visit tv.altodigital.com to view the latest video on print security and learn how you can minimise the risks and prevent breaches within your organisation. To learn more about implementing a secure document strategy please contact:
Tim Hubbard T: 0845 504 5353 E: learnmore@altodigital.com W: www.altodigital.com
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Strategies for solvent companies that are no longer required The starting point when planning any distribution of a company's reserves is to consider the shareholders individual tax positions. In the table below we consider three possible scenarios for a company with £90,000 of net assets to distribute and one shareholder. Scenario A - assumes a capital distribution and that Entrepreneurs Relief is available. This results in an effective tax rate of 8.8% and can be contrasted with Scenario B. Since 1 March 2012 the maximum capital distribution permitted under the statutory provisions that replaced Extra Statutory Concession C16 is £25,000 so a Members Voluntary Liquidation (MVL) will be necessary. Scenario B - assumes Entrepreneurs Relief is not available, and this results in an effective tax rate of 24.6%. Scenario C - is a dividend strip and results in an effective tax rate of 14.6% as the shareholders personal allowance and basic rate bands are available to ensure that only £58,550 of the grossed up dividend is taxable. This option should always be examined in depth, particularly if Entrepreneurs
B. C.
Where the shareholders are additional rate tax payers (or would become so as a result of a dividend strip) and the funds available for distribution are larger, then a Members Voluntary Liquidation will almost always give the best outcome. Other matters to consider are the base of cost of the shares (they may not necessarily have been acquired for one pound per share), or transferring shares to spouses to spread the distribution over several tax years to allow more Annual Exempt Amount to be utilised. However care must be taken to ensure that any Entrepreneurs Relief available is not compromised.
ANNUAL EXEMPTION £
TAXABLE £
90,000
11,000
79,000
7,900
82,100
8.8%
MVL and Capital distribution no Entrepreneurs Relief
90,000
11,000
79,000
22,120
67,880
24.6%
Dividend Strip (20%/40% tax payer)
90,000
90,000
13,174
76,826
14.6%
MVL and Capital distribution with Entrepreneurs Relief
-
TAX PAYABLE £
AVAILABLE TO S/HOLDER NET OF TAX £
NET ASSETS £
SCENARIO A.
Relief is not available or the shareholders are (or are likely to become) basic rate tax payers.
EFFECTIVE TAX RATE %
Licensed Insolvency Practitioners Hadfield House Hadfield Street Northwich Cheshire CW9 5LU
Tel: 01606 814610
Email: lsb@ganleyburt.co.uk
Ganley Burt are Licensed Insolvency Practitioners based in Northwich and work throughout Cheshire and Merseyside. We can trace our origins back to 1987 when insolvency licensing was first introduced
We are a small but vastly experienced team and provide a full range of services dealing with both personal and corporate insolvencies. Our particular experience is with small and medium sized, owner managed, businesses. We can help with: • • •
Maximising realisations from solvent companies Guidance for directors and creditors of distressed companies Advice for directors facing disqualification proceedings or actions brought by a Liquidator or Trustee in Bankruptcy
If you would like further information on any of the above matters or specific advice in a particular situation then please contact Laurence Burt FCA on 01606 814610 or lsb@ganleyburt.co.uk
www.ganleyburt.co.uk
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4R BUSINESS
RECOVERY
4R WANT TO GIVE YOU A HAND If you have clients or customers who are dealing with solvency problems, poor liquidity, HMRC debts, trade debts, commercial rent arrears, or facing winding up petitions or pressure from creditors then 4R can help. 4R offer a FREE resource to support and manage your customers problems on your behalf. As a bonus, for any client you refer to 4R we will pay you a marketing referral fee.
At 4R we go the extra mile offering a holisitc approach to business rescue. We support businesses and help them deal with the causes of insolvency and liquidity problems, protecting the business and its directors and putting them on a secure, sustainable and rewarding road to business recovery.
If you have clients with solvency and debt problems refer to them us and become part
Call us FREE today on
of the 4R Affiliate Programme
0800 902 01 23 www.4rbusinessrecovery.co.uk
The changing the face of business with the mobile revolution The last few years has shown a dramatic shift in people accessing online information via their mobile devices, in fact recent statistics suggest that almost 80% of people now make online searches whilst they are away from their office or home. So why is mobile becoming so popular? It’s fair to say that we live in an era where people feel busier than ever before, rushing around from task to task in an attempt to achieve their daily objectives, however it’s also probably fair to say that we do all have periods throughout the day where spare time does appear, usually when we least expect it, for example, waiting for a train, waiting to go into a meeting etc. This is a major reason why mobile devices have proven so popular as the user can access information at a time that suits them, wherever they are. As mobile phone use increases, so does the importance of mobile engagement. Unlike print marketing, which is limited in its engagement
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potential, mobile marketing presents a whole new world for marketers. You can build websites, apps and many other digital products that really engage your audience, building up a brand and improving customer loyalty. Here are some of the major benefits of participating in mobile engagement. Immediate Results According to recent studies, using mobile marketing presents faster results than print marketing. This is because customers feel engaged, and an engaged customer is much more willing to buy! At the same time, if the campaign fails, you can easily look at the data and find out why it failed, making it easier to test new marketing initiatives. For further information regarding the benefits of mobile technology for your organisation call Crosby Associates Limited, official publishers of Chartered One Magazine on 0845 643 5551, or email at digital@crosbyassociates.co.uk or visit our website www.crosbyassociates.co.uk.
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How to Boost Fees and Income with the Changing Business Rescue Landscape in the North West Kevin Pritchard from 4R Business Recovery talks about RTI or Real Time Information requirements and how they represent an opportunity for accountancy professionals to earn fee income from business rescue referral.
agreement gives the company time to improve cash flow. Liquidation and administration both result in the winding up of the business, but in many cases the assets can be transferred to a new ‘phoenix’ company, which is free from debt.
From the 6th April 2013 we are all aware of the need for clients operating PAYE schemes in the UK to start reporting PAYE information to HM Revenue and Customs in real time.
Although getting the business protected in a company voluntary arrangement or pre pack administration is important, it is only the beginning of the recovery process. Insolvency is a symptom, not the disease, so we need to support companies in identifying the real cause of failure. This requires tapping into additional support beyond financial controls like cost management and overhead reduction strategies. Directors often need advice on customer acquisition, digital marketing strategies, and how to access new markets and joint ventures.
Clearly this provides an opportunity for accountants to earn some additional marginal fees, but I want to discuss a bigger opportunity. The new legislation means accountancy firms can benefit by building strong relationships with business rescue and turnaround companies. The implementation of RTI will drive a significant change in the solvency status of the clients of many accountants and bookkeepers. Companies who are struggling to manage their creditors by deferring PAYE payments until year end will no longer get the opportunity to RPTPP or “Rob Peter to pay Paul”. The deferral of tax liabilities to manage cash flow pressure has only been possible in the past because HMRC relied on a paper system of reporting. This system was inefficient as it often failed to detect undeclared employees and arrears of PAYE and NI until late in the financial year.RTI will give HMRC the ability to track employee status and PAYE debt month on month and this will result in an increase in debt recovery measures, such as statutory demands. Given the need of Her Majesties Government for significant tax revenue at present, I have no doubt this will also mean an increase in winding up petitions and winding up orders. To make matters worse, the changes will likely have more impact in the North of England, as businesses in the area are already under more pressure than those in the South.
Business rescue is a highly technical area, with specialist knowledge and skills required in terms of insolvency law, company law, turnaround strategies and new sources of funding. However, I would argue that the new business turnaround landscape requires additional support and help for struggling businesses, and it makes sense for some of this support to come from accountancy firms. 4r Business Recovery can support you to deliver this support and even white label our service under your brand.
Offering insolvency advice and helping clients implement a business rescue and turnaround strategy is an opportunity for accountancy professionals to help clients manage the implications of RTI on their cash flow and understand their options should a solvency or liquidity problem threaten the health, sustainability or even survival of the business. Recovery action by HMRC is a real threat, but accountants can help their clients avoid walking possession orders, distraint, winding up petitions and winding up orders. The business should be restructured to ensure its future success.
With RTI putting additional pressure on many companies, accountancy professionals can benefit by improving their knowledge of insolvency and business turnaround.
Some of the options for restructuring insolvent businesses include company voluntary arrangements, creditor’s voluntary liquidation and pre-pack administration. A Company Voluntary Arrangement (CVA) is one of the best recovery options as it is a court backed agreement with creditors which lays out new payment terms for any money owed. Up to 80% of the debt can be written off, and the
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4R offers a fresh, holistic approach, based on the the four Rs of Rescue, Restructure, Recovery and Reward. Our specialist team of insolvency professionals will find the best rescue strategy for the company in question, whether it be liquidation and phoenix advice, a company voluntary arrangement, pre pack administration, or even informal ‘time to pay’ arrangements. We then work with the client to provide a free sustainability audit which ensures the business has the best chance of operating profitability.
We work with a number of accountancy firms and run regular training sessions in the form of breakfast and lunch seminars. You could also earn additional income by becoming an affiliate and referring clients to us. If you are interested in being notified about upcoming training seminars, please email enquiries@4rbusinessrecovery.co.uk or call 0800 902 0123. For details or our affiliate programme, please email Kevin Pritchard at kevinpritchard@4rbusinessrecovery.co.uk or call 0800 902 0123.
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Mann Island Finance - Vehicle Finance Specialists Liverpool based Mann Island Finance was established in 1991and is the largest independent asset funding broker in the UK. With 130 staff and a national network of Business Development Managers, we’re able to meet all your finance requirements. We broker the asset funding facilities of 20 lenders, underwriting half a billion pounds in proposals, pay out almost £200 million in balances and finance around 13,000 cars per year.
Why Use A Broker? Mi Finance has facilities for most types of tangible asset finance. Whether it’s a car, commercial vehicle or plant and machinery we can usually help. In these ‘Credit Crunch’ times, a diversity of products and the ability to spread borrowing across several lenders is an advantage. Our products include: • Hire Purchase, Contract Hire, Lease Purchase, Personal Contract Purchase, Leasing, Fixed & Variable Rates, Car & Van Rental Whether it’s a one-stop need for vehicle supply and finance, or simply a finance quotation for merchandise you have sourced – give us a call on 0870 850 1596.
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Bored Meetings by Andy Bounds Seven simple ways to stop tedious meetings ruining your week
Andy Bounds is a Liverpoolbased ACA and past president of Liverpool Chartered Accountants Students Association (LCASA). He is also internationally known as a best-selling author and here he tells us about his latest just published book...
Once a Chartered Accountant and accounting lecturer, Andy now advises some of the world’s largest companies on how to communicate and sell more impactfully. He is also a best selling author and his new book The Snowball Effect (Communication Techniques to Make You Unstoppable) has been described by Dragons Den’s James Caan as: “A toolbox of powerful techniques that will help anyone communicate more powerfully, effectively and confidently than ever before.” The book is available on Amazon, and we recommend you buy it, although we are, of course, rather biased, and on a point of declaring an interest in Andy’s book, our own editor Martyn Best has also been credited in the book with an endorsement of Andy and the Snowball Effect. In the following article, Andy has adapted one element of his new book especially for our Society and gives us some tips on how to deal with Bored, sorry, Board Meetings. I have only two problems with meetings: 1. 2.
Finding time to host all my fascinating ones; and Having to attend everyone else’s rubbish ones
Research by Epson found that inefficient meetings cost the UK economy £26billion per year, and it seems we waste an average of nearly three hours every week because of inefficiencies in meetings. What a criminal waste of an accountant’s chargeable time.
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Here are seven ways to transform your meetings – both internal and with clients – so you get more done, more quickly, and with minimal waste.
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Chartered One | Issue 4 | Spring 2013
#1 It’s what you cause, not what you cover A meeting is supposed to cause something. That’s the point of it. So, don’t start by thinking what your agenda should be. Instead, focus first on what you want to happen after it (e.g. an action, greater alignment, etc). Then, work backwards to decide what the agenda should cover, who should attend and the time you need.
#2 Think pit stop, not sandwich break Meetings should be like pit stops: fast, efficient and everyone having a reason for being there. However, most – especially internal ones – are like compulsory sandwich breaks: stodgy, bloating, and containing ingredients you hate. Change your “sandwich break meetings” to pit stops. Or stop having them.
#3 Have fewer attendees When two people meet, they only need one agreement: A must agree with B. When four people meet, they need six agreements – AB, AC, AD, BC, BD and CD. When eight people meet, it’s 28 agreements (don’t worry – I won’t list them). So, invite fewer people. And definitely don’t invite people who can’t contribute/don’t care. If you don’t limit attendees, you’re deciding by committee. And that just never works.
#4 Have fewer topics
You know the meetings that always drag on; so shake things up. Change something – the venue, your agenda, the chairperson, who sits where… anything. After all, making a mistake once isn’t a mistake; it’s learning. But make the same mistake more than once, and it becomes insanity!
#6 Shorten those meetings Ten colleagues meeting for thirty minutes doesn’t take thirty minutes. It absorbs five manhours of time. Was the agenda really worth that investment of chargeable time? Allocate the time you need. If you can discuss everything in 7 minutes, diarise your meeting for 7 minutes. Don’t assume it’s going to last 30 or 60 minutes, because that fits neatly in your Outlook diary. Even better, say it will last ‘a maximum’ of a time. Let’s face it, if you say it’ll last 20 minutes, it will. But ‘a maximum of 20 minutes’ means people expect it to be less, so, it often is.
#7 Don’t have ‘Update Meetings’ Update meetings take too long, achieve too little and are deathly dull. So make them shorter, and/or less often. Even better, unless it will cause big problems, just stop having them. And always remember… The personalities and politics involved with meetings mean you can’t always do all seven of these. But you can always do more than none. Everyone – especially you – will be glad you did.
Strip out every agenda item you could progress outside the meeting – things you could do on your own, in a 121, by email etc. This might moc.kcbecoming otSnepOvery rotshort; ceV.wwwThis article has been adapted from the result in your meetings Snowball Effect (Communication Techniques but, hey, who’s complaining? to Make You Unstoppable)- available from Amazon, WH Smith and other good bookstores. #5 Be interesting If you think your meetings might be boring, they are.
BEST SELLING BOOK ON AMAZON ON DAY OF PUBLICATION 25
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Wirral Town Group You Can Take An Accountant Out Of The Office... but then what do you do with them? Jan McDermott and Cathy French explain …
One dark, cold, night in December, a group of accountants from the Wirral left the comfort of their own office (or the pub) to visit the Peerless Brewing Company in Birkenhead (a bit like a pub). This may sound like some scary outline for the latest Tarentino Oscar-candidate, but it was in fact the third outing of the newly formed Wirral Town Group, and led by its “founders” Past Presidents Jan McDermott and Andrew Lovelady and current Deputy President Paul Cochrane and a strong cohort of Peninsula based members they
discovered liquidity has many forms. Peerless is an independent microbrewery specialising in creating fresh, craft-brewed beers by combining traditional brewing techniques and fine ingredients with a modern tang. Steve Briscoe and his wife Rose founded Peerless in 2009, and came up with the brewery’s name “over a beer with friends”, inspired by a piece of Wirral’s history. Birkenhead Brewing Company Limited was founded in 1865 by the amalgamation of two family-run businesses. In 1962 it merged with Threlfalls Chester Limited, and was
then taken over by Whitbread, finally closing in the late 1960s. Its strapline was ‘Peerless Ales and Stouts’. The nod to a proud, local brewing heritage taken together with the meaning of the word itself – outstanding, matchless – proved an attractive combination. In keeping with the name
Peerless beers are already winning prestigious awards. Storr, a pale, cask pilsner, was voted Best Beer of Merseyside at the 2012 Liverpool CAMRA beer festival Peerless beers are already winning prestigious awards. Storr, a pale, cask pilsner, was voted Best Beer of Merseyside at the 2012 Liverpool CAMRA beer festival, while the bottled Jinja Ninja, brewed with root ginger, chillies and lemons, won SIBA National Champion Speciality Beer in 2011 – not bad for a “tweaked home brew recipe!”
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Rose and Steve Briscoe - Peerless Brewing Company
Steve and Rose took immense pleasure in guiding the group through the range of their beers and all were treated to the delights of Red Rocks, a strong, ruby beer named after
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Chartered One | Issue 4 | Spring 2013
the sandstone outcrop at the north-western tip of Wirral, and Hilbre Gold, a hoppy,golden ale that takes its name from the small island nature reserve at the mouth of the Dee Estuary together with Dark Arts, Triple Blond and the suitably named Full Whack. Rose provided a hearty hot supper which went well with all the beers.
barrel. However VAT is charged on the dutyinclusive amount and the micro-brewing process is very labour-intensive. “With duty, VAT, and PAYE, the annual tax-take is roughly £40,000 per employee.” All fascinating insights, and a great night was certainly had by all and more information can be found at www.peerlessbrewing.co.uk
The tour of the brewery by Steve was as you can imagine focussed on questions around beer duty, capital investment, and other financial aspects of the micro-brewing business. The brewery currently produces 1,500 bbl (brewers’ barrel litres) per annum, comfortably below the microbrewery threshold of 5,000 bbl meaning duty is at the reduced rate of £15 instead of the standard £30 per
Lord Mayor of London Visit
If you are interested in further LSCA events being held on the Wirral, for members working or living on the Wirral, then please contact Alex.Pilkington@icaew.com or look out for details of our events arriving in your inbox.
Lord Mayor was the guest of honour. The lunch provided an opportunity for local high profile business leaders to brief the Lord Mayor on our successes. Paul commented:
On 10th January 2013 the Lord Mayor of the City of London visited Liverpool to meet with representatives of the city’s business and professional community and just to be clear the Lord Mayor of the City of London is Alderman Roger Gifford not Boris Johnson! The Lord Mayor is elected for one year and is unpaid and non-party political. His key responsibility is to promote the City of London and the broader UK as one of the world’s leading international centres for financial and professional services and he spends some 90 days abroad, making some 700 speeches, in this exceptionally demanding role.
“The Lord Mayor could not fail to be impressed by the success stories he heard, first hand, from our local business leaders and I am sure that he gained a real insight into the depth of professional services support for businesses within the Liverpool City region. The Lord Mayor will also take away with him the genuine sense of anticipation and enthusiasm for the International Festival for Business 2014, to be held in Liverpool”.
The visit, organised by Professional Liverpool, assisted by Liverpool Vision, was an opportunity mreal oc.strengths kcotSneofpthe OrLiverpool otceV.www to showcase the City Region, and ensure that the Lord Mayor takes these messages across the UK and abroad. Paul Christian, President of the Liverpool Society of Chartered Accountants, attended a special lunch held at the offices of DWF, at which The
Paul Christian with John Hall of Professional Liverpool and the Lord Mayor of London
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Merchant Taylors’ Boys’ School Pupils Named as Monthly Regional Winners in National Investment Competition dealing and investing in the stock market. The competition is also aimed at improving financial literacy and understanding of financial risk. Nearly 40,000 students are taking part in this year’s competition.
A team of four students from Merchant Taylors’ Boys’ School have been named as monthly regional winners in a national investment competition. The team are now through to the final of ifs School of Finance’s Student Investor Challenge, which will take place next month. If they make it through this regional final, they will then compete in the national final, where the prize is an allexpenses paid educational trip to New York and £2,000 for their school. The competition is free to enter and provides teams with £100,000 of virtual money to buy and sell shares in FTSE 100 companies. This opportunity allows the teams of students aged from 14 to 19 years old the opportunity to experience the dynamic world of share
The boys’ team, ‘Quantative Pleasing’, increased their share portfolio by nearly £17,000 in December, outperforming the FTSE 100 during that time. The team includes Year 12 pupils Nick Lawson from Birkdale, Kieran Morris from Whiston, Dhananjay Pulya from Ince Blundell and Colin Chen from Waterloo. Steven Kay, Head of Economics at Merchant Taylors’ Boys’ School, said, “The ifs School of Finance competition stimulates debate and teamwork with our economics students. Many go on to university to study business and economics and then pursue a successful career in financial services.” Rod McKee, Vice Principal of ifs said, “This competition gives students the opportunity to gain first-hand experience of making investment decisions, which will benefit them throughout their lives when making financial choices. It also introduces them to core concepts such as risk, reward and diversification. This is a real achievement and many congratulations go to the team from Merchant Taylors’ Boys’ School.”
“The ifs School of Finance competition stimulates debate and teamwork with our economics students.”
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ICAEW BASE Game Merchant Taylors does ‘ the business’ FIND US ON FACEBOOK For further information about BASE please visit www.icaew.com/base or www.facebook.com/ icaewbase
Merchant Taylors’ School has won the Merseyside heat of the ICAEW BASE competition with students from St Edward’s College coming a close second. Students from Crosby beat off competition from eight other local teams to be crowned the 2013 Merseyside BASE Winners. The event is one of twenty-six regional heats taking place across the UK. The winners of each competition will go on to compete in the national final, which takes place in Birmingham on Thursday 27th June 2013. The ICAEW’s Business Accounting and Skills Education (BASE) competition, now in its fifth year, offers participants an insight into a career as an ICAEW Chartered Accountant. Aimed at 16-18 year olds BASE links schools, students and employers together in a bid to increase awareness of the profession and to develop desirable skills in the future workforce. Assuming the role of chartered accountants, the students had just two hours to analyse, discuss and decide on the next business steps of a fictional organisation, before
presenting their ideas to a panel of businesses professionals. Paul Christian, President of the Liverpool Society of Chartered Accountants, said: “The calibre of entrants was extremely high this year. The judges were especially impressed with the level of business acumen the students showed, which if applied to careers in accountancy, will bode incredibly well for the future of the profession. The team from Merchant Taylors’ School were very worthy winners and I’m sure they will do Merseyside proud in the national final”. The winners of the national BASE competition will each receive £500 in addition to being invited to a winners’ day & lunch at Chartered Accountants Hall in London where they will participate in a professional employability skills workshop. The national runners-up will each receive £100 and a professional employability skills workshop for their school.
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St Edward’s College students came a close second
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Annual Dinners
Another Successful Annual Dinner
Steve ibson,
nd Smith a
hristian
Paul C
Les G (LtoR)
Paul C
hristian
with his
family
Regarded as one of the key business dinners events of the year, the Liverpool Society’s Annual Dinner did not fail to live up to it’s reputation. Returning to the Crowne Plaza on its traditional “first Friday after the fourth Thursday in November” please don’t ask how this originated, but if anyone does know, there’s a special prize - our President hosted yet another glittering occasion. We were honoured with the presence of Mark Spofforth, the ICAEW President, and many distinguished guests. Riveting entertainment was provided by Steve Smith, Olympic
medallist from the 1996 Atlanta games, and the still current British High Jump record holder who regaled the guests with the story and motivating factors behind his successful career and his Olympic medal. Further entertainment was provided by Les Gibson, and whilst of a more mixed variety, some laughter did ensue. A full dining hall had a thoroughly enjoyable evening, and in traditional style, Saturday morning saw its conclusion.
www.VectorOpenStock.com We were honoured with the presence of Mark Spofforth, the ICAEW President, and many distinguished guests. (LtoR) Mark Spofforth with Paul Christian
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CharteredOne | Issue 4 | Spring 2013
Southport Branch Annual Dinner
The guests, from left to right are: Andrew Gerrard, Chairman Elect, Isle of Man Society of Chartered Accountants Robin Dillamore, Chairman, Chester and North Wales Society of Chartered Accountants, Ronnie Fell, Chair, Chartered Institute of Taxation Merseyside Branch, Ian Wright, Chairman, Southport Branch of the Liverpool Society of Chartered Accountants Wendy Tyson, President of the Southport and Ormskirk Law Society, Jamie Sutherland, Guest Speaker Paul Cochrane, Deputy President, Liverpool Society of Chartered Accountants
Chairman, Ian Wright welcomed guests to the Southport Branch Annual Dinner on Friday 8th March at Hesketh Golf Club which is the oldest in Southport, founded in 1885, and is part links/part parkland and sits beside a nationally renowned nature reserve.
Jamie is a headline act on the comedy circuit, working for some of the country’s finest clubs including Sheffield Last Laugh, Jongleurs and Comedy Central. Jamie also provides pre-match entertainment at premiership clubs Stoke City and Wigan Athletic.
After a well-attended dinner, entertainment was provided by comedian Jamie Sutherland.
Chester and North Wales
Society Dinner The Chairman of the Chester & North Wales Society of Chartered Accountants, Robin Dillamore, welcomed guests to the Society’s Annual Dinner on Friday 1st March at the Chester Grosvenor Hotel. The dinner aptly held on St David’s Day was a superb evening with fine food, good company and great entertainment from guest speaker, Welsh comedian, Rod Woodward.
(LtoR) LRobin Dillamore with Rod Woodward
All three speeches were interesting and entertaining. The first two were delivered by the Society Chair Robin Dillamore and the Institute Vice-President Arthur Bailey. It was fitting, of course that the main speaker should be Welsh and Rod Woodward, recent overall winner of the BBC TV series Funny Business, and who has performed on a national tour with Paddy ‘the bouncer’ McGuinness from Peter Kay’s Phoenix Nights and Max & Paddy’s Road To Nowhere, produced more than a few rounds of laughter.
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Robin with his many distinguished guests.
He spoke for over half an hour and elicited the comments “was hilarious and received well by all.” “And as for Rod, he was brilliant!”
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CharteredOne | Issue 4 | Spring 2013
Beer Tasting - A Joint Event with Liverpool Law Society Report by Paul Christian
On 13th February 2013 a joint event was held between two of Liverpool’s oldest professional bodies, the Liverpool Society of Chartered Accountants and the Liverpool Law Society. I am delighted to be able to report that the event was a great success – the website declared it ‘Sold Out’ and the willingness of our two memberships to come together at events such as this bodes well for future events.
The evening involved tasting and critiquing a number of different real ales including, bitter, IPA, mild, stout and porter and the atmosphere was fantastic. My personal interest in real ale goes back many years and I have to confess to doing some homebrew when I was about 16 – I bought the Ken Shales book “Brewing Better Beers” which contained some wonderful recipes such as Yultide Ale and my favourite Double Daphne. I am not sure what the ABV was but I’m sure it must have been around 10%!
Paul Christian, Paul Cochrane and John Nolan
It was great to be back in the Ship & Mitre, a pub well known to those of us who have done the full Dale Street Crawl in our Student days (in my case long ago student days) – and it was certainly a fitting place to hold a real ale tasting. It was Liverpool & District CAMRA Pub of The Year in 2009.
Special thanks go to the President of the Liverpool Law Society, Alistair Fletcher and his team who worked hard to bring this event together and we look forward to the next joint event to be held during the summer!
Golf Society plans exciting year Glyn Pike, our erstwhile and everdependable Golf Secretary has compiled another compelling programme of golf for the Society this year. Date
Following last year’s successful calendar with the highlight being the Centenary playing of the Annual Trophy at Birkdale, nobly won by Mike Hadden (long-standing Society player, and former Birkdale captain), we have another full listing of games, and all Cost members are very much welcome to £70 attend.
Event
Venue
Roses
Ormskirk
Annual Trophy
Ormskirk
£70
27th June
Inter Society
Ringway
£45 (tbc)
18th July
Birmingham
Haydock
£45
23rd August
Law Society
Grange Park
£40
9th May
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21st May
For full details and to book, please email: Glyn Pike at glyn.pike1@virginmedia.com
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Chartered One | Issue 4 | Spring 2013
CALLING ALL VOTERS! Elections will shortly be taking place in respect of the Society’s representative on the ICAEW Council. Our Society has two members on Council – Marion Hodgkiss and John Tiernay – and John is retiring by rotation. After two sessions as one of our representatives, John has put himself forward for a third term, and the other candidates nominated for the position are John Malthouse, and our Past President Mike Sale. The notional date for each election is Tuesday 7 May 2013, and the elected term of the successful candidates will begin at the conclusion of the ICAEW Annual Meeting in 2013 (which is Tuesday 4 June), in accordance with Principal Bye-law 35(b). During 2010, the ICAEW Council agreed some changes to UK constituencies to reduce the total number of elected Council members from the UK, and Liverpool’s representation reduced from three to two, with the retirement of Andrew Lovelady after good service on behalf of the Society.
member, with a minimum of one member per constituency. The elected term of the successful candidates in all constituencies will be until the ICAEW Annual Meeting in 2017, in accordance with Principal Bye-law 35(c). You will shortly be receiving a notice of the vote and I would urge you to actively participate in order that the Society does give a proper endorsement to the right candidate.
These changes recognised both ICAEW’s growing international membership and the continuing importance of the UK. They provide for a ratio for elected constituencies of 2,000 members per elected
The notional date for each election is Tuesday 7 May 2013
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Chartered One | Issue 4 | Spring 2013
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Asset Finance Feature
Alternative FOREWORD
Chartered One | Issue 4 | Spring 2013
finance on the rise
Martyn Best investigates the appetite and availaibilty of asset based lending, or invoice discounting/factoring as it is perhaps more widely known. Whether we are looking for suitable funding for our own business, or practice, or on behalf of clients, it seems that the availability of traditional forms of funding has rarely been as challenging as it is now. Banks may appear to be unwilling or unlikely to lend, and with liquidity very much in the headlines where should we turn? One answer may be to look at asset-based lending (ABL) but is such alternative funding suited to M&A and development of your growth or is it still lending, and expensive lending at that, of last resort? About 2,000 UK companies tapped into the ABL market for the first time in 2012, joining close to 42,000 small and medium-sized companies who now regularly raise working capital via the market. A raft of household names including luxury carmaker Jaguar Land Rover; Speedy Hire, the construction equipment provider; and G&J Greenall, the gin maker, part-finance their businesses through ABL. When it comes to M&A, the management of Bond Street jeweller Mappin & Webb recently raised £20m through Burdale Financial, a subsidiary of US commercial finance giant Wells Fargo, to fund a buy-out, and UK shoe retailer Jones the Bootmaker used a £10m ABL facility to part-fund a management buy-in. According to figures from the Asset Based Finance Association (ABFA), lenders advanced £15.4bn against invoices and other assets in the first quarter of 2012 – an increase of 4% on the same period the previous year. The industry trade body estimates that the total turnover of companies using asset-based finance over the period jumped 6% to £59.2bn. The latest bleak figures from the Bank of England show that total net lending to UK businesses fell £1bn in the Q2 2012, having plunged £9.6bn in the first three months of the year – the biggest quarterly drop since Q3 2009; and recent statistics in bank lending do not seem to be showing any significant trend away from that dismal picture. In that context, the ABL growth rate may seem benign for a sector that traditionally performs well in the face of recession.
Much may therefore be expected of the ABL sector in the coming months, and nowhere is this weight of expectation more sharply honed than in the use of ABL to finance M&A. One ABL arranger, who wished to remain anonymous, quipped: “ABL used to be a swear word in the M&A community. Now it’s in every pitch that our debt advisory people make.” So what has changed to alter their attitude, other than the fact that traditional leverage is not available? “Without a doubt, M&A represents a very strong driver for future growth in the ABL arena, both in the UK and Europe,” says Neil Jones, director of ABL services at PwC. In the current lending climate, credit committees will be looking for at least some form of invoice financing. According to ABFA, there is a further £7.5bn available to UK businesses through ABL.
Fuel for M&A
Fuelling this expectation is a conviction that private equity houses will embrace asset-based lending facilities, breaking the frustrating lending deadlock that is a significant part of the reason why the M&A market has been kept in check. “I’ve always wanted to get to the point where private equity houses started off by negotiating how much ABL financing they could put into an M&A transaction, then working back from there how much equity they might need to top up a deal,” says Patrick Wilkins, director in ABN Amro’s Commercial Finance unit. “For a growing number of firms, we are indeed at that point – ABL has worked very well for them and the outlook is very encouraging.”
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Jonathan Gregory, partner at Mobeus Equity Partners, says the mid-market firm has used ABL
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on roughly half of its transactions over the last two years: “We use ABL where we can, because it is relatively predictable in terms of quantum and it rarely has the tight covenants based on profit and cash performance seen in more traditional lending. It is often a relatively cheap source of finance given the competitive nature of the industry.” Mobeus primarily uses ABL to cover working capital, but has also used an element of such available financing to fund the acquisition price. On one side sits a vast pool of potential turnaround opportunities in the midmarket that are making only nominal profits and would fail to service their debts were interest rates not at record lows. On the other lurks a growing pack of deal-hungry private equity houses, desperate to put under-invested funds to work. And hanging over everyone is an uncertain economic outlook and the nagging suspicion that the eurozone crisis will get worse before it gets better.
Encouraging signs
John Nelson, a commercial leader in the commercial finance arm at GE Capital, says transactions involving ABL that might have taken three months in 2007 are now taking from six to 12 months to complete. But he says there are encouraging signs from private equity firms: “We are seeing a fundamental shift in the way financial buyers behave. If they get wind of a deal, they are prepared to put cash on the table to close a transaction to avoid execution risk. As soon as the deal is completed, they look to refinance, typically through the ABL market.” Some lenders offer ‘Comprehensive ABL’ on a basket of assets. In reality, this seems little more than a marketing creation. Most commercial finance houses will consider pretty much anything as long as it is unencumbered and retains a liquidation value. One exception is the construction sector, where invoices may be subject to clawback claims should the company either slip behind schedule or be required to undertake remedial works. A comprehensive approach can prove highly efficient. Rupert Rawcliffe, an ABL specialist and head of south-east England lead advisory for Grant Thornton, says a client recently borrowed just shy of five times the amount of money it was offered under an overdraft facility, simply by rolling plant and machinery and stock into an extended asset-based structure. I’ve also had personal experience in the social housing sector where an invoice discounting facility which grew in line with turnover helped fund significant growth, without which the company would not have succeeded.
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Benchmarks
Covenants in ABL term sheets tend to be less onerous than those for other senior lending facilities, focusing less on financial benchmarks and more on the make-up of the sales ledger. “A lender will obviously want to see covenants covering interest cover, gearing and free cash within the business, but because the borrower only needs to meet interest charges and not repay any principle, the trigger points tend to be higher than in other senior debt structures,” Rawcliffe explains. The reality, adds Martin Cooper, head of large corporates at Lloyds TSB Commercial Finance, is that the lender is going to be more interested in a company’s debt turn, or its credit control process. “If a borrower normally waits on average 45 days to get paid and that suddenly jumps to 55 days, something has changed. Maybe there is a problem with the product or there has been a shift in the mix of customers.” Lenders will also limit the total amount of invoices to any one customer to between 5% and 10%. This can be problematic in acquisitions, where a bidder is targeting a company precisely because of its expertise in a niche manufacturing market. A key component in M&A financings is the headroom that lenders require to be built into a deal. Essentially, this is a rainy-day contingency – a 10-15% buffer which the borrower will put in place over and above the maximum working capital requirements of the business over a 12-month period. “If you’re doing an ABL-funded acquisition, it can be very difficult to get an absolute number on which to base the facility until the day the transaction closes because stock and invoices are going to be in a constant state of flux”, explains Cooper. “Headroom is important because it ensures that there are enough invoices out there in circulation to generate sufficient cash to finance the acquisition.”
Necessity or expense?
ABL providers typically charge an interest margin, or discount margin, of 2-3% over base and a 1-2% arrangement fee. They will also charge a service fee of perhaps 1.5-3%, pegged to the total amount of the facility, (including headroom). Comparisons with other types of M&A financing are tricky, but as a rough rule of thumb, a company is likely to pay a 4% interest margin and a 4% arrangement fee on a traditional term loan. One of the many paradoxes pervading the credit market these days is that the discipline ABL facilities instil on borrowers encourages them to draw down less cash, even though lenders are keen to advance more. According to Lloyds TSB’s Cooper, the result is that borrowers are drawing down as little as 42% of the lines available to them. And here is why banks see a private equity-led boom in M&A activity as a crucial growth driver.
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Chartered One | Issue 4 | Spring 2013
ABL pros
ABL cons
• Should generate more cash against assets than any other form of lending.
• Customers still have a limited understanding of the mechanics of the ABL market, resulting in reticence in accessing it.
• Attractive to growth companies because funding tracks sales, and so avoids the need to constantly renegotiate financing lines. • Costly administration processes such as credit control can be outsourced. • Funding is contingent on inherent strength of sales rather the state of the balance sheet, making it available even to loss-making businesses.
• Some industry sectors – notably construction - can attract a significant risk premium. • Companies with shrinking order books would see their ABL funding diminish. • Administrating the facility can be onerous.
• Personal guarantees and other forms of additional security are rarely required.
So, clearly ABL is here, and in a world bedevilled by onerous capital requirements, shrinking bank balance sheets and an uncertain economic outlook, invoice financing is going to be a vital and credible means of financing the growth that UK business need.
This article was produced with the help of the ICAEW Corporate Finance faculty, and my thanks to Richard Irving and Shaun Beaney who presented their findings in Corporate Financier September 2012.
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The role of an Insolvency Practitioner … what is it worth? Lee Manning, R3, the insolvency trade body President R3 welcomes the review of Insolvency Practitioners (IPs) fees announced by the Government in December but is confident the work done by IPs represents value for money. A natural consequence of a period of recession and low growth is increased creditor frustration towards the insolvency process. However, this frustration is inextricably tied to the statutory order of priority and the fact that creditors are owed money, which they view in stark contrast to the office holder who is well paid for dealing with insolvency. Therefore it is only natural for creditors to take an interest in the fees earned by professionals dealing with the insolvent business. Creditors have the power to approve the basis of fees charged by the IP. Determining fees often involves taking a number of factors into account, including the value of the property or assets realised, the time taken to carry out myriad tasks and their perception of the practitioner’s effectiveness. Secured creditors are typically financially astute and often have prior experience of an insolvency process. This leaves them in a better position to determine whether the fees they are asked to approve offers values for money. Conventionally unsecured creditors are asked to approve an IP’s fees periodically through correspondence, if a sufficient number of them believe them to be excessive then the ultimate sanction is to oblige the IP to apply to court to have his fees ‘taxed’ – very much a last resort and is most often settled by negotiation. IPs work carries a cost which is comparable to other similarly qualified professionals such as lawyers and accountants, and of course an IP’s expertise comes at a price. It is important to note the average age of an IP reaching their professional standard and receiving their practicing certificate is 33, arguably the highest age of any profession. The benefit of this expertise
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in cases of insolvency is that businesses are saved and jobs preserved wherever they can be - and, where they cannot be, that creditors get the greatest returns possible from the situation. To ensure that lenders are willing to lend, they need to be confident that a professional will be in place to act as a guardian of their money in the event of insolvency. It is the job of IPs to ensure that lenders can be sure of good and prompt returns. Without this confidence, Lenders may be discouraged from lending, with detrimental impacts on entrepreneurship in the UK. The UK currently has a sound and balanced insolvency regime that is well regarded internationally, World Bank data June 2012 states that the UK’s ‘resolving insolvency ranking’ is the 8th best in the world - better than the US, France and Germany’s recovery rates. Therefore a good insolvency regime is worth the costs to ensure speedy and substantial returns. The OFT addressed concerns over fees when it examined them in 2010 and concluded in their own words that the insolvency industry is ‘an important lubricant to an efficient economy’ and works well in the ‘majority of cases’. IPs are exposed to significant financial and personal risk during the course of their work, with many costs being driven by regulation and statutory compliance. The establishment of a single complaints gateway, which has been proposed by the Government, will still not remedy perceived unsecured creditor frustration at IPs or the insolvency process - because this frustration is inextricably tied to the statutory order of priority. However we do welcome increased transparency and confidence in the system from creditors, without damaging what is a world leading insolvency regime.
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CharteredOne | Issue 4 | Spring 2013
At Finance For Business we are interested in building up a long term relationship with customers and suppliers and not just focusing on a ‘one-off’ transaction. We aim to provide a range of financial products that are tailored to each individual customer’s needs. We will provide a fast and effective service which will provide competitive solutions for Asset Finance and Cash-Flow Finance. Finance For Business act as a professional intermediary between the Finance House and our customer to make sure that the information provided satisfies the Finance House criteria and allows the customer to obtain a competitive deal to their satisfaction. Our experience allows us to speak directly to the funders who can provide solutions to meet our customer’s needs. We believe our knowledge is invaluable and avoids a lot of time wasting.
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We seek to support a variety of commercial sectors, from ‘new start’ and developing businesses to PLCs, funding a diverse portfolio of assets from cars and commercial vehicles through to plant and equipment. Through our panel of funding partners we look to provide you with a comprehensive choice of products and services including asset finance, invoice finance, commercial mortgages and re-financing packages. Contact us today for an initial consultation.
T: 07795 662245 E: jeff@ffbuk.com Visit our website for more information www.ffbuk.com
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Don’t leave your clients without a funding solution in 2013
• Specialist contractual finance
Fairway Business Finance sources and provides cash flow and working capital facilities for companies throughout the UK
We provide facilities for clients with turnover ranging from 75K to £50 million, and our ability to use any funder means we can successfully tailor each client’s needs and requirements to the most appropriate funder for them.
We are a long established Commercial Finance specialist, and we work in partnership with Accountants and Banks throughout the UK. As an independent business, we have access to every Invoice Finance company in the UK, and we regularly source the following facilities for clients: • Confidential Invoice Discounting • Factoring - selective, or full debtor book • Construction Finance
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• Trade Finance - Import Finance, Export Finance, Stock Finance
Most of our clients are referred to us by UK Banks, who are keen to retain their client, but are unable to provide additional facilities to support growth, debtor funding and assist credit control For a confidential, no cost discussion with you or your client, please contact: Patrick Murphy - 07748 408971 fbfinance@btinternet.com
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Financial Solutions for commerce - raising finance to benefit clients We have been established in Merseyside for 26 years and are recognised as one of the UKs largest Invoice Finance & Factoring Brokers. Established by Dick Appleby in 1987 to broker Invoice finance deals into market place. Although many Factoring Companies say they can do everything - they cannot. Our in depth knowledge of the market is such that we can speak to several funders to negotiate the best rates for clients but more importantly which funder will fit with clients better. For example the larger Company that just wants Cashflow assistance that’s usually a Confidential Invoice facility
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where as a smaller company may need credit control and help with collections, this is usually a factoring facility requirement. For both requirements we know exactly who would be best placed to fund the deal. We now have offices in Leeds, Manchester and Scotland and we are hopefully opening in Birmingham area later this year. For further information please contact us on the below details: Richard Appleby : Mobile: 07976 796552 Dick Appleby : Mobile: 07976 279711 www.factoringfinance.co.uk
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CCDR offers a wide range of services to our clients from debt recovery to credit control. With over 70 years of experience working with clients across a full spectrum of industries, We are constantly developing our products and services to meet an ever changing industry; it is with this in Mind that we have now launched Corporate Credit Management (CCM). The division was formed on the back of market research which pointed out the fact that accountants specifically, are overlooking a commercially viable revenue stream. Clients are crying out for credit control and other account recovery requirements, however most accountants do not have the resources to offer a credit management facility. We spent the last year developing a new credit management structured website for accountants which incorporates a varied back office system; we believe this will assist accountants with their own client retention, client acquisition and more importantly increasing revenue. The website software allows clients to log on to view accounts they have placed, it allows their debtors to log on make payments and promises of payments and it provides a full analysis of how each account is progressing. The back end recovery is performed by CCDR essentially creating a white label credit management division for accounts. The reality is that with just a handful of clients this system would pay for itself and then start to generate its own fees, as well as providing clients with an extra service which would help with client retention and acquiring new clients.
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“When operating a business there are many obstacles that have to be overcome but none are perhaps quite so daunting as financial difficulties, in view of the potentially fatal consequences of not dealing with them swiftly and efficiently. It is for this reason that it is absolutely imperative that businesses seek specialist advice at the very earliest opportunity they can when financial difficulties first appear on the horizon. DTM Legal are able to offer specialist advisers in this area, including a dual-qualified solicitor and insolvency practitioner, Richard Thomas. A client’s business deserves to be given the very best opportunity to survive should it face financial difficulties and this can only happen where advice is taken from professionals who take the time to understand the business and apply their specialist knowledge to the specific commercial context of that particular business. At DTM Legal we always ensure that we take the time to fully understand our clients’ businesses before we will provide any legal advice so that the advice can actually be applied practically to the circumstances ensuring it has maximum benefit for the particular business. The primary aim of any business facing financial difficulties has to be to avoid any formal insolvency procedure and DTM
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Legal always works with its clients to achieve that aim, if at all possible, and we call upon our extensive network of other professional service providers to try and achieve that for our clients. However, if a formal insolvency procedure has to be pursued then we can provide a clear path through the considerable complexities associated with the different procedures. This is a complex area with different procedures having different consequences ranging from Company Voluntary Arrangements through Administration to Liquidation. It should also be remembered that there are potential personal consequences for directors of companies that do enter into formal insolvency procedures and DTM Legal can provide sensible, commercial advice to those directors to ensure that they do not take steps that unnecessarily create difficulties for them in any ensuing insolvency procedure. This is extremely important as there are criminal offences that can very easily be committed inadvertently and there is obviously the possibility of Director Disqualification Proceedings for those who fall below the standards expected of company directors these days. For further information on these very important issues please contact Richard Thomas at our Chester office.”
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Asset Finance
Watts On Offer….
We are currently operating in a financial world where the prevailing mindset is governed by words such as ‘credit crunch’…’rationalisation’…’recession’…’administration’… .’liquidation’….and other equally negative terms. As the recent increase in levels of advances in asset finance demonstrate this mindset can be overcome by providing the lenders with good quality, well structured and detailed finance applications. There are 3 key ‘housekeeping’ rules detailed below that will ensure your application has the best possible chance of success –
A Range of Lenders Free Advice A Quick Response
Affordability - self-certification of income/turnover /profit has gone. Affordability has to be proven by means of accounts, management information and bank statements. If there are any issues with the above documentation it is essential to provide a suitable explanation at the outset in order to enable the underwriter to have a clear picture from the start. The worst thing that can happen is for an underwriter to ‘find something’ that hasn’t been declared as it will almost certainly jepoardise the application Credit Status - ensure that you are on the voters roll. This applies to individuals and company directors as all are searched, even if it is a limited company applying for finance. Avoid missed or late payments on any credit facility. Deposit – yes you will need one. Commitment is the ‘cornerstone of underwriting’….if you have invested in it you are far more likely to fight to keep it!
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Finance can be arranged on all core assets…new and used You can refinance your existing assets… You can choose from the following finance options…. Hire Purchase – when you want to own the asset outright, this is the most traditional form of asset finance. Interest charges can be based either on a fixed or variable rate. The finance term can be structured to suit and a residual (balloon) payment can be introduced to lower the monthly finance repayment. Finance Lease – the finance company effectively owns the asset and it is rented to you over a predetermined period of time. At the end of the agreed finance period, you typically have three options - retain the use of the asset by paying – sell the asset to a third party – or return the asset to the finance company. Operational Lease – allows you to enjoy the usage of a vehicle or piece of equipment without incurring some of the risks of ownership such as depreciation. Commercial Loans – commercial loans are available for certain assets considered by many finance institutions to be ‘Non Core Assets’ - e.g. computer software, IT cabling, mezzanine floors, building improvements.
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Bathgate Leasing – Asset finance with a personal touch We are not your standard asset finance provider – for us, the traditional values and behaviours associated with high quality personal service and a genuine appreciation of our customers’ needs are of primary importance. This may buck the current trend towards on-line and arms length transactions…but we feel that the mix of a bit of old fashioned service and truly up to date finance solutions is the best way to do business. Whilst a lot of the deals we write are for the replacement, refurbishment or upgrade of equipment, we feel that we often contribute most when working on deals that are not quite so straightforward. At times of expansion, diversification, or even recovery, funding can be difficult to find and this is where we can help getting to know you,
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your business and your plans. Building these relationships is vitally important to us. There are many benefits to using asset finance, such as improved cash flow and tax advantages. So… if you are looking to purchase any kind of equipment for your business, come to us and we will be happy to discuss your requirements, and to see if we can help. Ideally this would involve a face-to-face meeting, as we believe that understanding your business and the people behind it is key to a successful relationship. To find out more about Bathgate Leasing Ltd and how we can help your business, please visit our website: www.bathgateleasing.co.uk You can also contact us by calling Gordon Andrews or Esther Rigby on 0151 625 7323, or emailing info@bathgateleasing.co.uk
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Founded in 1991 by husband and wife team Maurice and Hilary Craft, Regency Factors plc still prides itself on lending to the needs of clients and has built up a reputation of providing a first class personal and professional approach. The ethos of having a short line of communication to decision makers has remained unchanged throughout the years. Whilst always adapting its facilities to keep up with the current trends in business, Regency Factors offers a range of solutions to meet the needs of its clients. As with our Invoice Finance Facilities our Trade Finance Facilities are flexible and transparent and thus we are able to provide clients with a solution to fund their business through the entire trade cycle. International Trade has always been regarded as the “risk” element within the trade cycle, but our Trade Finance team help clients with the associated paperwork to reduce some of the
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risk element, and also this benefits any client in having the ability of being funded from the beginning to the end. With our Trade Finance team’s in-depth knowledge it allows us to tailor the solutions of our client’s needs. This can be from arranging Letters of Credit to suppliers, to a complete confidential service of Purchase Finance. In brief our solutions to SME’s are as follows: • Invoice Finance • Trade Finance • Purchase Finance • EFG • Asset Finance Please contact Lynne on the details below for further information: T: 0161-280-4030 E: lynnew@regencyfactors.com
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Store First – Smart storage for accountants -
New Liverpool centre now open Safe, secure and affordable document storage has come to Liverpool! The brand new Store First storage centre is now open in Speke. The centre, which is part of the Estuary Banks development, has brought new jobs to the area and given domestic and business customers a great value and ultra convenient place to store their belongings. With “storepods” of all shapes and sizes, you’re guaranteed to find the ideal solution for your needs. Store First, which operates centres all over the North West, says it is delighted to bring its storage offering to the people of Merseyside. Store First operations director Stuart Laverty said: “Speke is a thriving area which has seen significant developments over the last few years and we’re thrilled to be branching out to this exciting part of the North West. Store First – the facts Store First offers safe and secure document storage for accountants across the North West. With a free pick up service, free wifi and 24/7 access, more and more firms are choosing to archive confidential files with Store First Liverpool.
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Like all of our storage centres, Store First Liverpool has free parking, flexible long and short-term leases, boxes and packaging available in-store as well as boardroom and canteen facilities for business customers – so if you find yourself in need of some extra space to meet clients you can take advantage of our contemporary, spacious meeting rooms too. Stuart Laverty, operations director at Store First said: “We are the specialists when it comes to safe document storage for accountants, solicitors and other office-based businesses that find themselves overrun by files and struggling to find the space to stash everything confidentially and maintain a happy office environment. “We offer fantastic value for money, the quick access we know accountants need and – crucially – the sophisticated security systems that give employers the peace of mind that their sensitive data is in safe hands.” For more information, visit www.storefirst.com
As a special opening offer “storepods” are available for as little as £1 for the first four weeks. For more details, visit www.storefirst.com, email liverpool@storefirst.com or call 0800 84 99 777 or 0151 341 7777.
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Wednesday 24 April 2013 Port Sunlight Village, Wirral
The ICAEW North West Region is pleased to host an event exclusively for retired ICAEW members and their spouses/partners at the Port Sunlight Village. The late 19th Century village was built by William Hesketh Lever (later Viscount Leverhulme) to house his soap factory workers at Lever Brothers which eventually turned into the global giant Unilever. Lever was a philanthropist with a passion for art and architecture and Port Sunlight is an enduring testament to the achievements of this remarkable man. The village is set in 130 acres of what can only be described as beautifully maintained parkland with a mature treescape. Nearly every building in the village is Grade II listed and two sections of the landscape are included in the English Heritage Register of Parks and Gardens of Special Historic Interest. Lever employed over 30 different architects in the building of the village and the result is an intoxicating mix of architectural styles enhanced by the parkland setting giving tranquil scenes of great beauty. Members and their guests will start the day with tea and coffee and a tour of the museum, which will then be followed by a guided walking tour of the village, and the day will conclude with a light lunch. 11.00 11.15 12.00 12.45 14.00
Arrive for tea/coffee served in ‘Tea’ at Port Sunlight (above the Museum) Tour of the Museum Guided walking tour of Port Sunlight Village Light Lunch served at ‘Tea’ at Port Sunlight Depart
A small fee of £12.50 per person is required to secure your place(s). Cheques to be made payable to LSCA. If you are interested in attending please complete the form below and return with your payment by Friday 12 April 2013
_____________________________________________________________________________ I would like to attend the seminar on 24 April 2013 (Event Code DLIVCOR240413) Name: ............................................................................ .............................................................................. ........................................................................................ .............................................................................. E-mail: ....................................................................................... Tel: ........................................................... Address: ....................................................................................................................................................... ........................................................................................ .............................................................................. ........................................................................................ .............................................................................. Postcode: .................................................................................................... ................................................. ICAEW Membership No. www.VectorOpenStock.com RETURN TO: Regions Central Events, PO Box 6083, Milton Keynes MK10 1PG Tel: +44 (0)1 908 248 179 Fax: +44 (0)1908 248 053
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Why take years to get those important qualifications?...
We can help!
Who are we?
Neil Fuller Associates Ltd is a CIPS Centre of Excellence and has been delivering courses on the Wirral for 15 years. Our tutors are all fully qualified professionals with many years experience in procurement and course delivery. We pride ourselves on the quality of our courses and the service we provide to our students and for CIPS. Your success is our success April 2013 – July 2013 Level 4 weekday and weekend Modules for examination in May
Venue
Purchasing Contexts Measuring Purchasing Performance
Wirral Liverpool
Modules for examination in July
Venue
Sourcing in Procurement Context of Procurement
Wirral Liverpool
May Work Based Assessment
Venue
Level 4 & Level 5
Wirral
Where are we? Wirral Centre - Burleydam, Childer Thornton, South Wirral CH66 1QW Our established training venue on the Wirral is based in Childer Thornton. This has easy access from all areas in the North West, Cheshire and North Wales by car and rail. There is a Premiere Inn and free parking on site.
Level 5 weekday and weekend Modules for examination in May
Venue
Sustainable Procurement Management in the Purchasing Function
Wirral Liverpool
Modules for examination in July
Venue
Management in Procurement Category Management
Wirral Liverpool
Liverpool Centre - One, Old Hall
NEW Street, Liverpool L3 9HG
We are delighted to announce the opening of our new city centre training venue in the heart of the business community in Liverpool. Leave the car at home. Travel by train and the venue is a 5 minute walk from Liverpool Moorfields underground station.
Level 6 weekday and weekend Modules for examination in May
Venue
September 2013 - July 2014
Supply Chain Management in Practice Leading & Influencing Legal Aspects
Liverpool weekday / Wirral weekend Wirral Liverpool
Modules for examination in July
Venue
Programme & Project Management
Wirral
A full timetable of study scheduled toward the CIPS examinations sessions offered five times through the year. Allowing students to complete a level and move up to the next level within the year. Students will have a final opportunity to re-sit any exams from the old scheme in the November exam series.
All May and July examinations will be held at our centre on the Wirral
Please apply to the address below to receive a copy of our 2013/2014 brochure as soon as it is available
Training & Consultancy - Our success is your success We offer a wide range of training and consultancy opportunities tailored to your company’s requirements • One and two day training courses are offered at our Wirral venue throughout the year. Our most popular courses are: • Improving Negotiation Skills • Improving Buyer Performance • Contract and Commercial Law • An Introduction to Purchasing and Supply • We will come to you to deliver In house training courses in all aspects of procurement specifically designed to meet your needs • Consultancy and Train the Trainer • We work in conjunction with you to implement the smooth running of procurement in the workplace including best practice and sustainability • Our client base is from both the Public and Private Sector and includes prestigious car manufacturers, NHS, The Fire Service and Utility Companies 5 Woodslee Cottages, Spital Road, Bromborough, Wirral CH62 2BJ Tel: 0151 334 1366 | Fax 0870 052 7721 | Email: neil@nfassociates.demon.co.uk | www.neilfuller.com
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www.VectorOpenStock.com
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LIVERPOOL TOWN GROUP Following the successful launch of a Wirral Town Group last year, the Committee of your Society have been asked if there is any appetite for the revival of a “Liverpool Town Group”. Our sister “branches”, Southport and Chester & North Wales have demonstrated that there is very good interest for more focussed groups of our members to meet up, and so on 17th April at the Racquet Club, Chapel Street (6pm), John Malthouse will kindly host an inaugural meeting to establish the level of interest in a Liverpool Town Group.
This will be a relatively short session to discuss how the group might work in the future, what topics would be of interest to those attending and what the format should be. Drinks will be provided at this inaugural meeting (but no promises for future meetings) and there will be an agenda with a proposed finished time of 7.00 p.m. at the latest. If you are interested, could you please email John (john@malthouse.com) so that he can gauge numbers and be ready to welcome you.
www.VectorOpenStock.com
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