Business Leader Magazine by Business Leader magazine

Issue 18: April - June 2017

TV icon and current affairs guru Jeremy Vine talks to BLM about all things politics and business

Manufacturing for Export Page 12

ÂŁ9.50

Where Sold

Professional Services roundtable debate - Page 20

7 up and coming food & drink brands - Page 26

businessleader.uk.com

Weston College has secured £19m of Local Enterprise Partnership funding, which has contributed to the redevelopment and modernisation of the historic Winter Gardens Pavilion, creating the Law and Professional Services Academy. On average, around 25% of businesses in the legal and professional services sectors have reported a skills shortage. The facility will specialise in delivering both traditional training routes and apprenticeships at further and higher education level in: • • • • • •

Law Accounting Financial Services Business Studies, Management and Administration Human Resources Leadership and Management

The Law and Professional Services Academy will act as a catalyst for the regeneration of Weston town centre, while also nurturing talent and addressing skills gaps across the South West.

Our new selection of courses, starting in September 2017 will include: Legal • Paralegal, Level 3 • CILEx Professional Technical Diploma, Level 3 • LLB (Hons) Law

Financial Services & Accounting • Taxation Technician, Level 4 • Professional Accounting, Level 4 • Business and Finance, AAT, Level 2 • Assistant Accountant, Level 3

If you’re paying the apprenticeship levy, you can use your allowance to pay for our new work-based training programmes!

Non-levy paying employers will only need to contribute 10% of the training costs!

Management • Leadership and Management ILM, Level 7 • Operations/Department Manager, Level 5 • Team Leader/Supervisor, Level 3 • Digital and Technology Solutions, BSc (Hons)

Contact the Business Growth Team to find out more -

01934 411 686

directorteam@weston.ac.uk

Editors Intro

Welcome to the latest edition of Business Leader

Oli Ballard Editor, Business Leader Magazine

Are you fed up of hearing about ‘Brexit’ yet?

You may well be sick of hearing about ‘Brexit’ and how it is permeating every part of our lives. But the reality is also that it is difficult to avoid the issue, especially when it is so central to the future of the economy. So, with Article 50 now triggered we canvassed business owners across the region to find out their views on this issues. You can read the feature on page 10.

Linked to Brexit is also international trade and export and on page 12 you can read a review of the South West export market and hear views on how we can trade our way to prosperity. Also in this edition is a review of the professional services sector (page 20) and a feature on manufacturing.

In this issue... Latest News

Opinion - Living in a Brexit world

Manufacturing for Export

Ones to Watch - Integrity Print

Professional Services - Review

Food & Drink - Review

Work Etiquette - Debate

Interview - Jeremy Vine

Review - Learning

Future of Employment - Debate

Business Review

Business Leader - The magazine for business and enterprise

As you may have noticed from our front cover – there is also an interview with Jeremy Vine on page 34, where he gives his own eclectic view on the business, politics and the world in general. As ever, we hope you enjoy this edition of Business Leader Magazine. If you would like to get involved or have any news you would like to share, please contact us today on 0117 325 7779 or email: editor@businessleader.uk.com

www.businessleader.uk.com

Issue 18: April - June 2017

Business Leader

Update

Meet the team Andrew Scott Managing Director

Sam Clark Business Development

E: andrew@businessleader.uk.com @AndrewScottGB

E: sam.clark@businessleader.uk.com @samclarkBLM

Oli Ballard Editor

Barney Cotton Editor

E: oli.ballard@businessleader.uk.com @Oli_BLeader

E: barney.cotton@businessleader.uk.com @Barney_BLeader

Matt Evans Operations Manager

Adam Whittaker Design & Production

E: matt.evans@businessleader.uk.com @Matt_BLeader

E: adam.whittaker@businessleader.uk.com @ARWhitt82

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Issue 18: April - June 2017

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Recruitment

TALK TO US As a Specialist Recruitment Team, working across Engineering, IT and Professional Services, we take time to build mutual relationships to connect our clients with the right candidate. Ensure you find the perfect fit, entrust your recruitment to our experienced consultants. Telephone – 0345 375 1747 Email – hello@heatrecruitment.co.uk

WORK FOR US As a rapidly growing business, we’re always looking to hear from highly motivated and driven individuals. If you’d like to kick-start or further your career in recruitment, get in touch today. Telephone – 0345 375 1747 Email – careers@heatrecruitment.co.uk

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Latest News

West to receive £52.8m economy boost

Communities Secretary Sajid Javid has announced a government cash boost of £52.8 million for the West of England to help create jobs, support businesses and encourage growth.

Burgers, dogs and beers business to open on Whiteladies Road Bristol corporate commercial law practice, Murrell Associates, has advised longstanding client HUBBOX Limited on the purchase of a new outlet in Bristol.

The funding will be distributed by the Local Enterprise Partnership which brings together the four local authorities with large and small businesses to order to identify local economic priorities and lead economic growth and job creation within the local area for the benefit of our communities. The previous £230.7million Growth Deal funding is being matched by £180m of additional investment from local partners and the private sector to create at least 6,000 jobs.

HUBBOX serves burgers, dogs & beers using locally sourced ingredients and drink, served in relaxed urban inspired interiors.

Rebecca Dixon

The business began in St. Ives and it has other restaurants across the South West in Truro, St. Austell, Plymouth and Exeter.

HUBBOX opened in Bristol this May at the former Las Iguanas restaurant on Whiteladies Road.

Food producer announces £31m investment plan A Trowbridge based food producer for the health and social care sector has announced a major investment programme. apetito will be investing £31million in its South West based, food manufacturing business resulting in job creation in the company’s Trowbridge site. apetito is a £125m food and nutrition food production company which has been operating in the UK for over 25 years. It is the largest private sector employer in Trowbridge, Wiltshire and supports over 2000 UK jobs nationwide.

Issue 18: April - June 2017

Business Leader - The magazine for business and enterprise

Interview:

Bluestone

How has Barclays supported Bluestone’s growth? Can you tell readers more about your business and its history? “Bluestone is a five-star, self-catering resort in Pembrokeshire. It’s a very beautiful county; we have Pembrokeshire Coast National Park, which is the only coastal national park in the UK. “We’re a short break destination. We have lots of all-weather facilities, including a place called Camp Smoky. We host a shindig a couple of times a week, where everybody has a barbecued supper and we have live music and everyone’s dancing on the tables at the end.” What growth has the company achieved in the last five years “We came through a very difficult time because we opened in 2008 and the recession hit very quickly after we opened and as a start-up you’re always vulnerable.

“We built another 64 amazingly high-quality lodges, as well as lots more facilities, play areas, woodland walks, zip lines and restaurants.” William McNamara – CEO

“So, we had very tough times until about 2013 when things started to pick up and since then we’ve expanded the business. We built another 64 amazingly high-quality lodges, as well as lots more facilities, play areas, woodland walks, zip lines and restaurants. We’ve also maintained yearround occupancy so the business is now in a great place.” What sets you apart from your competitors? “We’re the only coastal national park and we’re the only big facility built within a national park, so we’re surrounded by lovely coastline and blue flag beaches. “But the biggest thing that sets us apart is our staff. We have a superb, engaged, motivated, caring and welcoming team and they are great people who really care about our guests.” Can you tell readers about your average working day? “I have a philosophy here that you don’t do yourself what you can cost-effectively pay someone else to do. So, my role changes all the time. The moment I can pass on a task or a responsibility, then I do so. “I surround myself with the very best people I can find. I create thinking time for myself and I encourage my team to create thinking time.

William McNamara

“My role now is very strategic so I’m not involved but I’m very aware of the day-today and I keep a close eye on the day to day operation and delivery of excellence. But fundamentally my role is to think about the future - to plan, design and make new projects happen and to make sure the money is there to do so, in conjunction with my finance director.” How long have you been a Barclays customer and how have they helped grow/change your business? “Since mid-2013. We did the first stage of a management buyout then they took us on. They’ve been great partners in this journey. “They’ve been very supportive. They do like the sector we’re in and they understand it, which is very important. We’ve built a relationship that is important to me and I would say it is important to Barclays as well. “In return, we provide them with excellent management information and in the last 40 months we have never not delivered what we said we would deliver in the budget. We’re always very close to budget but just on the right side and if we continue to do that, their confidence in us will build and the mutual respect is very much there. They’re good people and we’ve enjoyed working with them.”

To find out more about how we can help your business success please contact Jason Llewellyn: Mobile: +44 (0) 7775 543513 Email: jason.a.llewellyn@barclays.com

www.barclays.co.uk

The views expressed in this article are the views of the author alone and do not necessarily reflect the views of the Barclays Bank PLC Group nor should they be taken as statements of policy or intent of the Barclays Bank PLC Group. The Barclays Bank PLC Group takes no responsibility for the veracity of information contained in the third party guides or articles and no warranties or undertakings of any kind, whether express or implied, regarding the accuracy or completeness of the information given. The Barclays Bank PLC Group takes no liability for the impact of any decisions made based on information contained and views expressed. Barclays is a trading name of Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register No 122702). Registered in England. Registered number is 1026167 with registered office at 1 Churchill Place, London E14 5HP. April 2017. + Please note: this is a mobile phone number and calls will be charged in accordance with your mobile tariff.

Business Leader - The magazine for business and enterprise

Issue 18: April - June 2017

Opinion

Living in a Brexit world

So, what happens now we’ve

triggered Article 50? T

heresa May has signed the letter that will formally begin the UK’s departure from the European Union. It follows the referendum which resulted in a vote to leave the EU. Ben Burston, JLL, comments on the impact Brexit will have on currency: “For many longterm investors, sterling depreciation provides an added fillip to the investment case, based on their perception that it will appreciate once there is more clarity around Brexit and its economic implications, but it is not a case of one-size-fits-all. “Private investors have responded to the depreciation more than institutions and global asset managers, and as a result they have become a more important driver of market sentiment and pricing. Despite the triggering of Article 50, as 2017 progresses we expect global funds and institutions to return their focus to the UK, in response to relatively attractive pricing and as more evidence of occupational market resilience comes to light.” Andrew Perkins, EY’s senior partner in the South West, comments: “Talking to businesses in the South West, a strong early signal in the negotiations that both sides are committed to an orderly and phased-in Brexit deal, would go some way to provide reassurances. Other items on the agenda include the lightest possible customs border to limit disruption to trade, ability to recruit staff and a stable regulatory system between the UK and EU.” Jay Risbridger, The Green Stationery Co, says: “Extra costs added by carriers in Europe for clearing documentation outside the single market and customs union would make supplying EU customers uncompetitive and we would lose most of our business.

Issue 18: April - June 2017

“If the UK wishes to restrict workers coming to this country, not abide by regulations arbitrated by the ECJ and refuses to contribute to development funds like all other EU countries then we can expect, restrictions on UK workers in the EU, regulatory barriers and tariffs to trade with EU countries in response.” Dave Blackham, Esprit Film and Television Ltd, outlines the likely implications leaving the EU will have on his business: “Increased costs, decreased contracts, huge adverse exchange rate issues. Also issues with exporting and standards, additional paperwork carnets etc for kit movement and freedom of movement to work in EU. “We are seriously looking at moving to an EU based country for all or part of the business. Ireland or Scotland if Scotland leaves the union and becomes part of the EU. If not France or Netherlands. “We are very uncertain about the prospects of importing goods from USA and Asia to

distribute to the UK and EU if we aren’t a member of single market so all plans are on hold.” An MD of a Bristol food exporter says Brexit will sound the ‘death knell’ for his business, which is 100% export to Europe. He comments: “I was in the export business before the Single Market and the Customs paperwork was burdensome. On regulatory issues, I think the UK will retain much of the EU legislation, at least in the early years, so I don’t foresee an immediate change. “No decisions have been made yet but as I work on my own and am approaching retirement age I am considering retiring once withdrawal from the EU takes effect. Prior to Brexit, I had thought I would continue with the business for several more years.” Ben Biscoe, Fairyglass Ltd, sees opportunities in Brexit for his business, but is not in favour of leaving: “I believe that leaving the customs union is a huge mistake and one that we won’t see the effects of for several

Business Leader - The magazine for business and enterprise

Opinion

Living in a Brexit world COMMENT:

How to make a success of devolution in the West of England James Durie Business West

ere are three key things that will help to make a success of devolution in the West of England:

1. Strong public engagement One of the more startling things about the Metro Mayor election - and the devolution process more generally - is how little visibility it currently has in the public eye. For many who live and work in Bristol, Bath & the West of England, the questions of exactly what a ‘metro mayor’ is and why we need one have simply not been satisfactorily answered. With such low public engagement, there is a danger that many will see a new combined authority and metro mayor as an unnecessary layer of bureaucracy.

years, by which time it will be too late to do anything about it. “We’ve been concentrating on our export market for a couple of years now but I think that most of the work we’ve done will go to waste. Our customers in Europe can purchase as easily from our competitors in Europe and the introduction of a tariff

system, even with zero tariff payment (just paperwork) means it’s far less attractive for a retailer to purchase from a UK source unless our pricing is much more competitive. We can’t lower our prices more, as we’re hit in the UK with more regulatory costs, higher business rates, and far higher import costs.”

NEWS:

Housing provider appoints new executive director Yarlington Housing Group has announced the appointment of Sam Leigh as Executive Director of Service Transformation. Sam joins Yarlington from Jardine Lloyd Thompson where she was responsible for the development of the centralised change and transformation function for all employee benefits.

Business Leader - The magazine for business and enterprise

2. Collaboration and leadership The new mayor will be entering into a complex political dynamic when elected to chair WECA. He/she will be working with the leaders of the three local authorities - one Labour (Bristol) and two Conservative (South Gloucestershire and BANES) - and so must use their skills, new powers, funds and strong mandate to broker agreements, negotiate compromises and drive progress across the city region and its local authorities. 3. A long-term approach A long-term view towards devolution is essential. Gaining devolved powers and control from central government over housing, transport, skills and strategic planning is a positive start and sets a new precedent for collaboration between key stakeholders in the region. Nevertheless, in order to take devolution to its full potential, there needs to be a clear strategy to quickly build upon the existing deal and look to how further powers and resources can be gained in the future.

Issue 18: April - June 2017

Manufacturing For Export :

Feature

How do we get more than

11% of UK businesses exporting? W

hen Dr Liam Fox MP said that Britain was ‘too fat and too lazy’ and spent ‘more time on the golf course’ than exporting he was trying to be helpful. Or so it seems reading between the lines – and sometimes the truth can hurt and his controversial comments were followed by the faux outrage that is the punctuation mark of our times. Love him or loathe him the reality is that around only 11 per cent of UK businesses export. The arguments are well worn – that we sell more to Ireland than we do to Brazil and China. But with a strong domestic market, a decimated industrial base and a vibrant creative and

knowledge economy, exporting may not have always been a priority for many UK businesses. Yes, we sell tea to China (Pukka) and many of our premium brands are loved around the world but should we sell more across the globe and do we need to – and with a devalued pound, has there ever been a better opportunity to sell our goods to the world?

“The significant depreciation in Sterling since the EU referendum has increased the competitiveness of many UK manufacturers.” Andrew Morris

Andrew Morris, founder of Alpha Portfolio Management (an investment broker), comments: “The significant depreciation in Sterling since the EU referendum has increased the competitiveness of many UK manufacturers. In theory, this should help

drive an increase in export opportunities from the UK. Exports currently contribute over £500 billion to our GDP, but only 11% of British businesses currently export, outside of the UK.” But Andrew feels that the UK may be a victim of its previous successes. He comments further: “Many UK companies were fast to react to the globalisation of international trade and the development of ‘just in time’ manufacturing and global supply chains. “This involved taking advantage of cheaper overseas labour by establishing overseas manufacturing operations, particularly in China. While this opened access to one of the fastest growing economies in the world, it meant material job losses in UK manufacturing.” He continues: “In many cases, the remaining UK operations have focused on lower volume, higher value ‘niche’ manufacturing, as well as product research and development. As a result, manufacturing which accounted for 25% of the economy in the 1970s, now represents just 10% of the economy today.” How do you increase exports? So, what is the answer to getting more businesses exporting?

Andrew Morris

Rob Vivian

Alpha Portfolio Management

Pure Comms

Issue 18: April - June 2017

Andrew says: “For the UK to be competitive, we need long-term initiates together with support from local and national Government. This needs to ensure; competitive energy supply, less red-tape, decent transport/ infrastructure and above all a well-educated and skilled workforce. Sir James Dyson recently made a telling comment when he opened a research centre in Singapore. He said ’in Singapore, 40% of all graduates are engineers and scientists. In England, it is 4%’. If we want to get exports above 11% Business Leader - The magazine for business and enterprise

Manufacturing For Export :

Feature NEWS:

in the long-term, then we must get youngsters interested in making stuff.” Manufacturing prognosis So, are manufacturers seizing the nettle and taking advantage of the weak pound or holding back due to economic uncertainty? Simon Howes, Managing Director at SWMAS Ltd said “Overall, this is an interesting time for manufacturing in the UK, filled with both risks and opportunities. 63% of firms told us that the weaker pound would benefit exports, and 83% said that it would increase the cost of bought in goods. “To benefit fully from the change in circumstances many firms will be seeking to increase the materials they source from the UK, re-establishing supply chains that have been offshored in the past few decades. Equally, they will want to develop export strategies that are sustainable well beyond the next two years, but that maximise the short-term opportunity presented by the weaker pound.” Cautious optimism It seems that cautious optimism is the word of the moment and businesses

will need to carefully weigh up the reward of a weaker pound against the risk of uncertainty. Whilst exporters are enjoying exchange rates, some importers have not fared so well. Pure Comms is a telecoms company with offices in Cornwall and Bristol and imports technology from Germany. Post-Brexit they’ve seen price rises. Rob Vivian, Managing Director of the firm has been on record saying: “Like many Telecoms companies, PureComms sells telephone systems which are often manufactured outside of the UK. In particular we sell a German manufactured system which is recognised as being one of the best on the market, offering the best functionality and flexibility for clients. However, since the vote to leave last June, monthly price increases have become the norm, with a 16-20% price increase across the product range. “Unfortunately, there is no UKmanufactured alternative available, so it’s a situation we can’t do much about."

Business Leader - The magazine for business and enterprise

SuperGroup’s success story

ver the past decade, Superdry has become one of the UK’s biggest fashion retail brand success stories. From one original store in Cheltenham it now has sales of £486.6m, a presence in 45 countries worldwide and is well on its way to meeting its ambition to become a global lifestyle brand. Owned by Cheltenham-based, SuperGroup Plc, the company is expanding quickly and that includes a global reach. The company has plans to expand further in Europe, including store openings in Germany, France, Italy and Austria and launch in China following a £9 million joint venture deal with Trendy International Group, an experienced Chinese retail operator. The Department for International Trade (DIT) has been working with the company since 2007 providing support at a strategic level as well as cultural guidance and market insight when needed.

Issue 18: April - June 2017

Manufacturing For Export :

Feature ADVICE:

How do you start exporting? By Department for International Trade

top tips for doing business in China By Richard Lowe – Chairman, West of England China Bureau 1. Prepare and plan for the long haul The key is to take a long-term approach and to plan for the long haul. It can take several years to nurture the seeds of opportunities so the priority is to have a very clear export strategy with clear goals before you even enter a new market. 2. Research and do your homework If you’re setting up shop anywhere, I’m sure you’ll agree, that it’s vital you research the landscape before expending too much effort. So, knowing the specific local market where your services or products play to your unique strengths and where there’s a genuine demand, is essential. 3. Learn from exporters and advisors Researching and talking to experienced exporters and advisors will help you decide where you should focus your energies. Exporters already working in your chosen market will have the practical know-how, whilst trade advisors will have sector and market research knowledge.

6. Talk to friends, family, and contacts Share your export plans with others. You’ll be surprised how many people have local connections or people who know people in your chosen market. 7. Develop your cultural skills Whilst it’s important to invest in cultural training before you enter a new country, there is no better way to understand the subtleties than spending time with locals. Find networking group and partners where you can cultivate your understanding. 8. Demonstrate integrity and credibility The point here is to narrow your focus in the early stages of developing your market. Stick to where you are most comfortable, credible and able to talk with key stakeholders. You can build your credibility by demonstrating know-how by holding seminars, writing articles for the local market and publishing press releases e.g. case studies.

4. Contact local trade associations It’s worth searching out local trade associations in the country you are looking to export. These associations will have local industry links, know your buyers and competitors. They can also signpost useful contacts and connections.

9. Build trusted partners and cooperation As you develop a local presence you’ll need local partners and suppliers. Therefore, it’s important to do your due diligence to ensure your brand is well represented as your reputation is on the line.

5. Allocate time, resources and budget You can burn a lot of time, effort and money if you are not careful. Be clear about how much time, resources and investment you’re going to set aside for your exports. You must also work out how you will balance domestic and international work.

10. Harness technology We use LinkedIn, WhatsApp, Skype, conference calls and preferred local social media. Send regular updates, newsletters, and articles, book regular calls and online meetings - ensure you write up and email minutes to avoid ambiguity or misinterpretations.

Issue 18: April - June 2017

Trading abroad can boost your business profile, credibility and your bottom line and if you have a product or service that is performing well at home, then there will almost certainly be a demand for it overseas. The UK accounts for just 5% of the world’s economy, so confining your business to the domestic market is overlooking a huge potential. Of course, there are many reasons why you might not be selling overseas. Maybe you don’t want to deal with the perceived hassle of regulations, paperwork and cultural barriers? You could think exporting is a risky venture in uncertain times? Or you might be interested but just don’t know where to start. But, exporting actually reduces risk by spreading it across a wider range of customers and protecting your business if the UK demand for your product or services falls. But trading internationally, if you’re being smart about it, adds more security than risk to your business. And there are many reasons to export besides profit. Operating in new markets will mean you’re more likely to be aware of emerging needs of that market and new opportunities that may arise. All of this exposure makes for a sharper UK business that’s more innovative and better able to maintain a competitive position in your sector. Exporting also enhances your business’s profile, whether for new clients at home or ones abroad.

Business Leader - The magazine for business and enterprise

IT Support

Cloud Services

Web Design

Security

Communication

Five reasons why your business needs cloud software

By Chris Pottrell - Managing Director, Nebula IT

‘Cloud software’ is a major buzzword right now. But what is it? What can it do? And how can it benefit your business? Cloud packages are web-based software platforms that allow you to store and work with your documents and data via the internet – as opposed to a computer’s hard drive or your local network. Packages such as Xero – the online accountancy software, and Microsoft Office 365 – the cloud version of Microsoft’s perennial office suite, are extremely popular due to their secure, powerful and efficient service. People who adopt them find it gives their businesses wings. Sometimes called SaaS (Software as a Service), cloud software provides numerous advantages. Here we share five of our favourites: 1. Affordability At times, IT can represent a considerable investment cost. However, a great feature of cloud software is that it has a far more

modest impact on your cash flow - given the functionality it provides. This is because it is paid for on a pay-as-you-go basis so you don’t have to deal with substantial upfront costs.

an open API. This allows you, or your IT team, to integrate it into the existing software that your business is using. This can yield major efficiencies.

2. Accessibility Cloud services such as Xero can be accessed remotely from any location. This means that you can sign in from any device and also give other people permission to view information – like your accountant, bookkeeper or an employee. It is similar with Microsoft Office 365.

5. Teamwork Microsoft Office 365 offers real-time collaboration, permitting multiple users to access and edit documents simultaneously. It also has bespoke communication and networking tools for employees. As for Xero, as we have already alluded to, your finance people can have their own access defined by the level of functionality you want them to have.

3. Security The inevitable vulnerabilities that develop over time are automatically controlled with the latest patches and updates. This helps keep your data secure and confidential. As well as cyber security, you are protected against local computer malfunction. Cloud software doesn’t rely on your hard drive or local networks. Everything is stored and backed up remotely. 4. Customisable applications Premium cloud software like Xero comes with

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If you would like to find out more about how these platforms can benefit your business, call Nebula IT on 01454 534 009.

www.nebulait.co.uk Issue 18: April - June 2017

l Manufacturing For Export :

Feature NEWS:

New SME funder launches With just seven months under their belt, Castle Business Finance is going from strength to strength, having recently moved to larger premises and provided over £2,000,000 of finance to small and medium sized businesses nationwide looking to grow and expand.

Could technology be the reason for the UK productivity gap?

esearch from Samsung Electronics has revealed time spent on technology issues could be a major contributor to the UK’s productivity gap. While small business owners are spending nearly three and a half hours on sales and close to three hours on marketing a week to drive new business, IT accounts for two hours and 47 minutes, and office management almost three hours. The UK currently ranks 7th in the G7 and 17th in the G20 for productivity per person, and spending less time on these tasks could help to close this gap. The findings – part of Samsung’s ‘More Good Days at Work’ initiative which shows small businesses how innovative technology can help their staff to have better days at work – highlight that the situation is mirrored in workers, with nine in 10 (91%) losing concentration by coming to the rescue to help colleagues with IT issues. With almost two-thirds (63%) of workers spending between 15 and 45 minutes a day helping their colleagues with these issues, businesses are losing almost four hours a week per employee. Graham Allcott, Author of “How to be a Productivity Ninja” and Founder of Think Productive comments: “We have some fantastic businesses and innovators in

Issue 18: April - June 2017

the UK SME sector, but there are still big productivity issues. “A lot of workers are distracted from the things that create impact and growth by tasks like IT issues, and we are falling behind the rest of the world as a result. While lots of these distractions might only be for 15 minutes here and there, this quickly adds up and affects overall productivity.” When it comes to the time of day that employees get most done, over four in five (81%) feel they are most productive in the morning, with 10-11am being the most productive hour (42%). It also appears that a break to refuel at lunchtime helps workers increase their motivation with the second and third most productive times being between 2pm and 3pm (32%) and 3pm and 4pm (30%). Graham Long, Vice President of Enterprise at Samsung UK & Ireland, said: “SMEs are the lifeblood of the UK economy, and it’s important that they work in the most efficient and productive way possible. “While technology is certainly a productivity enabler, it’s clear that SME owners and employees are struggling to unleash its full potential. Businesses need technology that is easy, secure and that their workers feel comfortable and familiar using.”

Specialists in providing bespoke funding solutions to SMEs, the team behind Castle has over 55 years of experience. Castle Chief Executive Jeremy Coombes is already a well-known figure in the industry with an impressive 30 year track record, having co-founded Ultimate Finance Group Plc in 2002, which he ran successfully as CEO until it was acquired in 2015, and previously having co-founded Bibby Factors (Bristol) Ltd. Jeremy explains: “Castle was born on the concept of doing good business with a personal touch. There was a broad gap in the market for a new, responsible and invigorating SME lender, led by seasoned professionals who have the flexibility to support businesses in pursuing sensible commercial opportunities. “As a private ‘boutique’ lending company, we’re less restricted and so able to look at a broad range of opportunities – and the people coming to us – on a common sense basis with an empathetic approach. Often we can provide finance where others may not be able to. We are not red-tape text book lenders – we understand the funding challenges often faced by SMEs, and we draw upon our enviable experience to create solutions.” Lending across a varied cross-section of businesses, manufacturing, wholesale and recruitment have already proved to be key sectors. For more information on Castle, visit www.castlebusinessfinance.co.uk or call 01275 390660.

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Ones to Watch:

Integrity Print

THE ONES TO WATCH SERIES IS SPONSORED BY GRANT THORNTON UK LLP One of the world's leading organisations of independent assurance, tax and advisory firms T: 0117 305 7600 | E: harry.walker@uk.gt.com | www.grantthornton.co.uk

I’m the king of my castle but nobody wants it

ark Cornford is the Managing Director of Integrity Print – a printer based on a vast site in Radstock, which is home to over 300 staff and with a turnover of £43 million. And the first thing that you notice when talking to Mark is his infectious passion and energy – something which the Welshman says has been vital in such a tough sector. Background When Mark took over as the ‘captain’ at Integrity Print in 1999 – following a career with Unilever and as a Mechanical Engineer – he had been headhunted for the role. He explains: “I was actually headhunted for two jobs – to be the captain of a print business or the second in command for a luxury boat building business in Plymouth (now Princess Yachts). I remember calling my dad and he told me to go for the job with the boat building business – it offered me an amazing lifestyle, I thought this was the life I was going to get into. But I called him a week later and told him I’d chosen the role with the printers. “Print isn’t cool and there were some people who thought I was mad. But business is cool and materials, people and process is my bread and butter. I knew I had the opportunity to own this company in the future and that had appeal.” Management buyout Mark was part of a Management Buyout (MBO) in 2008 and the company had a turnover of £60million – and he says that one of his biggest achievements at the

Issue 18: April - June 2017

businesses has been his focus on culture. “Culturally we are very strong. I don’t do toffs and non-toffs and I’m an incredibly open person but everybody knows where they stand. I also own two other businesses – A1 Security Print in Birmingham and a labels business in Cardiff called Alliance, if you go into any of them the culture is the same and it’s always about continuous improvement.” King of the castle But the success has not come without challenges; and Mark has had to battle an almost ‘existential’ crisis as the print game shift and shapes. He explains: “I’m the king of my castle but my castle is dying. I’m buying businesses not out of vanity but out of necessity as the print landscape is changing dramatically. To ensure we stay at the top of our game I’m concentrating on growth areas such as digital transactional print, labels and packaging. “The reality is that I produce more banks statements than anybody in the country but who takes a bank statement any longer? This is a fascinating business as it’s a legacy business that is going through an enormous transformation. We’re growing organically and through acquisition, so we can secure the future of this company – I’m looking for more deals going forward.” Acquisition trail Mark is also clear about what he wants when he adds a company to his portfolio.

SNAPSHOT Name: Mark Cornford Age: 45 Job Title: Managing Director, Integrity Print

“We know the strategy – we want to be the last man standing in legacy products, so we’re looking for growth areas. Take labels and packaging, in twenty years my kids will walk into Waitrose and there will still be packaging – it’s a huge market. “Online retail is also growing 12-15 per cent per annum and it is one of my biggest markets but when I bought the business we weren’t active in this space, which is why our acquisition strategy has to be about continuous improvement and growth sectors,” he says. He says he also looks for a strong culture in and if anything was to put him off it would be a business that lacked this. “I’ve always said I’d rather be small and pure instead of big and full of poison. I believe in a strong culture, so I look for this in other businesses; and if there is an unpleasant smell I have to take a view as to whether I can change it,” he explains. Future On the future Mark believes that although the carpet bombing days of direct mail have disappeared, there is a future in cleverly targeted direct mail.

Business Leader - The magazine for business and enterprise

Mark Cornford

He comments: “I wouldn’t invest in a pure direct mail house – mine is at £3.5 million and I could probably grow it to £6 million but it’s part of the mix and direct mail is certainly not dying like some people have said.” On the wider business, he says: “We’ve got to keep transforming – my security business is very successful and is niche and will be still be here in ten or twenty years, as will

labels and packaging; and transactional data will still be a big part of our world going forward. I envisage that we’ll stay around the £40 million but the mix of work will always be changing. “People talk about Brexit, the currency and the economy but all of that is easy. The challenge for me is that I’m the king of my castle but nobody wants it any longer.”

Business Leader - The magazine for business and enterprise

“I’ve always said I’d rather be small and pure instead of big and full of poison. I believe in a strong culture, so I look for this in other businesses” Mark Cornford

Issue 18: April - June 2017

Professional Services:

Review

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The Line-up Joanne Nisbett Head of HR, Osborne Clarke Jennifer Bennett HR Manager, Gregg Latchams Anna Wilson Executive Partner, Barcan & Kirby Karl Brown Senior Associate, Clarke Willmott Sam Lee Head of Recruitment, Bond Dickinson Gareth Edwards Partner, Veale Wasbrough Vizards Lucy Pope Director of Business Growth Weston College Helen George Head of Faculty Business Management & IT Weston College Jeremy Howson Tax Manager, Grant Thornton Ben Leah Director, Hayes Parsons Chris Walford Partner, Albert Goodman

Issue 18: April - June 2017

Business Leader - The magazine for business and enterprise

Professional Services:

Review

SPONSORED BY WESTON COLLEGE BUSINESS SERVICES WORKING WITH 1,400 BUSINESSES IN THE SOUTH WEST T: 01934 411 594 | E: business.enterprise.centre@weston.ac.uk | www.weston.ac.uk/employers

Can apprenticeships increase diversity in the workplace? CAN YOU TELL READERS ABOUT PROGRESS AT WESTON COLLEGE’S LAW & PROFESSIONAL SERVICES ACADEMY?

“It’s been such a success that we will be launching our first solicitor apprenticeship scheme in September.”

Lucy Pope: “The college acquired the beachside site of the Winter Gardens and we have responded to the West of England Local Enterprise Partnership’s priorities around law and professional services and meeting business needs.

WHAT HAS BEEN YOUR EXPERIENCE OF RUNNING AN APPRENTICESHIP ACADEMY?

“It will focus on law, HR, leadership, financial services and accountancy and it is due to open in September 2017. We’re keen to talk to businesses, so we can develop our curriculum accordingly.” HOW IS THE ROOM CURRENTLY RECRUITING NEW STAFF? Gareth Edwards: “The typical recruitment model is to go through the trainee route and we operate this model; and recruit two years in advance. We do also look at alternative models but we haven’t gone as far as legal apprenticeships yet but do have apprentices in business services.” Sam Lee: “We launched our first legal apprenticeship scheme in 2014 and we are now recruiting our fourth cohort of paralegal apprentices. The first scheme of this kind was launched in 2013 and we spend twelve months convincing the powers that be to do this. “The reason we did this was because we had a few staff retention issues and we also wanted to open the profession to people from backgrounds, whom may not have considered becoming a lawyer.

Ben Leah: “We started our apprenticeship academy in 2013 and this was unheard of in our industry. But we were concerned by the quality of candidate that was applying for job vacancies. The big boys in the industry were letting the side down by coasting and this resulted in getting people apply who had low skill sets but were demanding high wages.

“Another challenge is that we can train technical skills but it would be helpful if students came with more soft skills and an ability to be open minded.” Jennifer Bennett: “We have been pleasantly surprised by the calibre of apprentices that have come to us. We want to now start a legal apprenticeship as it adds to diversity and allows to us to find talent from inner city areas.” DO APPRENTICESHIPS INCREASE DIVERSITY IN THE WORKPLACE?

Anna Wilson: “It does and we work with lots of inner city schools but the issues “So, we decided to grow our own. We have is that there isn’t much knowledge about taken in two per annum from 2013 and we apprenticeships given to the teachers and expect to retain around 50 per cent each students at the schools. They don’t seem year. It’s been great for us because they to know much about push existing staff and it. Those that may challenge the status want to enter the legal quo. The environment “We launched our first profession don’t have at Hayes Parsons is one legal apprenticeship the information they where we encourage need to do so.” alternative working scheme in 2014 and methods and new ideas.” we are now recruiting Karl Brown: “I’m excited that there is now a WHAT HAVE BEEN THE our fourth cohort of recognition amongst CHALLENGES? paralegal apprentices.” professional services Ben Leah: “The firms that they need to Sam Lee challenge is actually widen the pool of their getting new potential intake. As we head recruits through the further into Brexit, there door. Insurance is seen as boring but like any is a greater need for UK PLC to make use of industry, when you get underneath the skin all of its talent. of it – it is very diverse and technical. We’re veering more toward post 18 now, rather than “It’s interesting what accountants are doing as some are forgoing the need for formal post 16 as they have more experience.

Business Leader - The magazine for business and enterprise

Issue 18: April - June 2017

Professional Services:

Review

SPONSORED BY WESTON COLLEGE BUSINESS SERVICES WORKING WITH 1,400 BUSINESSES IN THE SOUTH WEST T: 01934 411 594 | E: business.enterprise.centre@weston.ac.uk | www.weston.ac.uk/employers

“Yes, it should be made part of the curriculum from a much earlier age and not just a focus when they come to a college.” Helen George

WHAT DO MILLENNIALS SAY THEY WANT academic qualifications or embracing FROM A JOB? contextualised recruitment – which Helen George: “Initially is looking beyond a they want exposure to “Apprenticeships are an candidate’s grades different businesses and taking in their attractive proposition and to find out what circumstances. As a for us as we look it’s like to work in these B grade for a student environments. They also to shape a vibrant from an under privileged ask to sit in on meetings background may have economy. Too many and value businesses taken more effort and coming to talk to them. talented people fall by work than an A grade the wayside at that “Regarding the actual from somebody from a job – what they want privileged background.” age group – so this can is a career path with Jeremy Howson: help us, as the route to development and they “Apprenticeships are an becoming an accountant value businesses that attractive proposition for invest time in them.” is changing.” us as we look to shape Chris Walford: “On a vibrant economy. Too Jeremy Howson the flip-side it is many talented people fundamental that fall by the wayside at businesses give them that age group – so this the skills that make them easy to recruit. We can help us, as the route to becoming an used to look at graduates because they are accountant is changing.” more mature but this is changing as more WHEN RECRUITING MILLENNIALS – people aren’t going to university, so the WHAT ARE THEY LOOKING FOR FROM difference in maturity is less in an EMPLOYERS? 18-year-old.” Jennifer: “We’re very conscious of adapting our environment for future generations. We’re adult and let people do what they want online; we’re also looking at more agile and flexible working models. “Millennials want development and they want to work for an organisation that has a purpose.”

Issue 18: April - June 2017

SHOULD THESE BUSINESS SKILLS BE TAUGHT AT PRIMARY SCHOOL LEVEL? Helen George: “Yes, it should be made part of the curriculum from a much earlier age and not just a focus when they come to a college. Employability skills are embedded into every class we run and it should be the same at primary school level.

“But this requires a top down change in approach from government as schools are currently judged on education outputs and not business outputs. We say to our students that you can get a first class degree but it doesn’t mean anything unless you have the other soft skills.” HOW WILL THE ROLE OF WOMEN EVOLVE IN PROFESSIONAL SERVICES, IN THE FUTURE? Anna: “It’s happened completely by chance but 75 per cent of employees at Barcan & Kirby are female. This is becoming more the norm now; as we’re seeing more female apprentices applying and wanting to enter the legal profession.” Joannne: “The legal sector has gone from being a male dominated one to one that is now predominantly female. We have carried out some research as to why and found that it has been influenced by the .com revolution, as many men were going into different professions such as digital and technology, which meant that more females gravitated towards law and professional services courses.” HOW IS PROFESSIONAL SERVICES CHANCING IN A BROADER SENSE? Karl: “Businesses want more than just a lawyer. They are involving lawyers earlier in the process and want a partner or associate to the business that adds value. Also, the physical environment is changing massively – I remember training with a firm down in Taunton and the partners were in big offices with leather chairs. It is much more open plan now and much more inclusive. The look of law firms is changing.” 

Business Leader - The magazine for business and enterprise

News:

Disability technology specialists clinch funding Bristol-based technology company, Inclusive Media Solutions, is to further develop its products that help people with learning disabilities and other cognitive impairments following funding from the Bristol Private Equity Club.

Telecommunications company relocating Headquarters to Bristol

Based in Engine Shed, they developed AutonoMe, a support system that combines the power of video and mobile technology to help with everyday tasks.

Crowthorne Voice and Data is set to relocate its headquarters from Southwark, London to Whiteladies Road in Bristol. The company, who specialise in business communications and collaboration, have clients including Hilton, Ineos and Best Western Hotels and have been trading for over 20 years.

Users can access videos that show them tasks such as making a cup of coffee or using a washing machine through their mobile or tablet simply by scanning household items. The firm has secured £150,000 of funding to help it develop the product.

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Issue 18: April - June 2017

Food & Drink

Review

What does the future hold for the South West Food & Drink sector? By Rebecca Dixon – Murrell Associates

he long-term effects of last summer’s ‘Brexit’ vote are almost impossible to predict in terms of our relationship with the European Union but the one already visible by-product is the weakening in the pound. The falling pound creates problems for food and drink producers reliant on imported ingredients or materials but for businesses which can source more locally, it can make their products more attractive to an export market. Weak pound Likewise if the pound continues to weaken, imported food and drink becomes more expensive and so locally grown and produced products will become more attractive to consumers. Ten years ago local food and drink was seen as an ‘alternative’ product and buying it took a special effort on the part of consumers. Now local products are increasingly reaching ‘mainstream’ outlets including supermarkets, a process which may be

accelerated by Brexit. As lawyers working with several innovative food and drink businesses, we have certainly been providing commercial property and commercial advice to safeguard our clients’ interests and to mediate their relationships with the larger operators that they are working with. Artisan luxury goods In terms of artisan or luxury goods, local producers may also benefit from a bigger domestic holiday market. The weaker pound is making the UK more attractive as a holiday destination and more people may decide to take more “staycations”. This may mean more local products being included in welcome packs in local hotels or holiday lets, or as discretionary purchases by visitors. Likewise retail food and drink hubs could help producers to get their products out to the widest possible market post-Brexit. The UK’s exit from the EU may also

As lawyers working with several innovative food and drink businesses, we have certainly been providing commercial property and commercial advice to safeguard our clients’ interests and to mediate their relationships with the larger operators that they are working with.

Issue 18: April - June 2017

encourage our producers to explore markets further afield. Of course this was happening before the referendum but if the pound continues to weaken, it could accelerate. Emerging markets have been importing artisan and luxury goods from our region for some time, but the shock of Brexit may encourage more producers to look at supplying potentially lucrative markets such as the Middle East or Far East. Legal perspective The crucial thing from a legal perspective in all of this is for producers to ensure that their goods comply with national and international requirements, and that appropriate supply and distribution agreements are in place, as well as taking steps to protect their brand and intellectual property. If we are looking close to home for the way forward for our food and drink producers in the uncertain post-Brexit world, we need look no further than the development of the Foodworks SW innovation centre in Weston-super-Mare. In the years to come this exciting hub of food and drink manufacturing and expertise, based at junction 21 of the M5, will play a crucial role in enabling local producers to make the best of the opportunities presented by Brexit, both at home and abroad.

Business Leader - The magazine for business and enterprise

Food & Drink

Review

Don’t lounge about! Hard work key to success says founder of £91 million food and drink group BLM talks to Loungers founder and current Chairman Alex Reilley

o-founded in 2002 by Alex Reilley, Dave Reid and Jake Bishop (all still good friends), who had all worked in the hospitality industry since leaving education; they felt there was potential for an informal, flexible all day café-bar in suburban Bristol. They were right. After starting the business with just £30k funding, the group recently published net turnover figures of £91.8 million. With 100 Loungers or Cozy Club’s now open across the UK (at the time of writing) – what has been the secret to success? Alex comments: “Lots of people enter this industry when they haven’t had any experience of working within hospitality, thinking it will be a nice lifestyle but there are lots of moving parts to any food and drink business and starting one without experience is a recipe for disaster.

“We came up with a unique formula of coffee shop/restaurant and bar that is democratic and informal but we always drive the business to constantly evolve and innovate. It’s about being obsessed about the minute details and improving the business. People say it’s impossible to keep your eyes on the details as a business grows but I believe this just provides people with an excuse to be lazy. Our work ethic and attitude has been one of the secrets to success.”

burger out there or one that is appealing to an untapped customer base.” The five-year plan for Loungers is to grow to 200 sites, with 600 potential locations identified across the UK. Not bad for a business that came of age during the recession.

So, what advice would Alex give to would be food and drink entrepreneurs? He says: “Don’t bother unless you have experience in the sector – there are far easier ways to waste money. You must work hard – it must become your life and be a 24/7 obsession. If you want to build a burger brand for example, you must have a product that is better than every other

Business Leader - The magazine for business and enterprise

Issue 18: April - June 2017

Food & Drink

Review

7 up and coming

food and drink brands to look out for

A: 5B Oakfield Road, Bristol, BS8 2AJ T: 01174 018 049 W: squashstix.com On a mission to get more people hydrated and drinking water, Squash Stix is disrupting the market by offering small, easy to carry and hold sachets. The sachets are in fact the world’s first single portion squash in a tear and pour stick. With over 5 million already sold – get drinking!

A: 34 St Nicholas Street, Bristol, BS1 1TG T: 07530 868 019 W: kabutonoodles.com Already in a supermarket near you Kabuto tirelessly taste checked every noodle on the market to launch one that was a) perfect for the Western palate but also b) loyal to traditional Thai, Japanese and Chinese noodles. Set up by Crispin Buck, Kabuto noodles are now available across the world and the company is enjoying year on year growth.

A: The Old Sawmill, Home Farm, Barrow Gurney, BS48 3RW T: 01275 463229 W: www.lovelydrinks.co.uk Winner of 14 great taste awards, plus many others, Lovely Drinks continues to grow as a brand – developing new lines and expanding its reach nationally. With an ethical and feel-good feel to the brand, BLM believes this is a stand-out one to watch.

A: Unit 3, Cargo. Gaol Ferry Steps, Bristol BS1 6WD T: 07538 377461 W: www.lovelydrinks.co.uk Think modern day pies and you think Pieminister. But is there a new kid on the block. Lovett Pies has recently opened its first outlet at Cargo in Bristol and is also sold in many shops and restaurants across the West (including Gloucester Services). One to watch.

A: Fosters Farm, South Barrow, Yeovil, Somerset, BA22 7LN T: 01963 441 493 W: www.easybean.co.uk

Issue 18: April - June 2017

A: Aplins Farm, Monkton, Honiton EX14 9QN T: 01404 861 518 W: www.ottervalleydairy.co.uk A proud farming family that makes pretty awesome products. Committed to making gelato style ice cream, instead of mass produced, their products have won a string of awards and the business continues to grow its footprint. Can this British ice cream maker go global?

A: Unit 14-16, Brunel Court, Waterwell, Gloucester, GL2 2AL T: 01452 729 000 W: www.pulsin.co.uk The Free From, health food market is a growing one and Pulsin have nailed it. Offering protein high and free from snacks and food – Pulsin can be found in supermarkets and shops across the UK and is growing its postcodes. Cleverly, its online website allows visitors to shop by goal, diet or products. This health boosting energy food brand is going places.

Already stocked in Holland & Barratt, this small innovative company make health snack pot meals using natural ingredients. Inspired by the bean and one-pot recipes from around the world, this food & drink business is making traction in the growing but competitive health food market.

Business Leader - The magazine for business and enterprise

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To enter visit: blawards.co.uk Entries close on Friday June 30 2017 and we have assembled a team of ten independent judges who will assess your entry; and potentially visit your business. To book tickets or become a sponsor call 0117 325 7779

Top 5:

Food & Drink

BLM reviews 5 top places for a quick business lunch

THREE BROTHERS BURGERS

Part of the city’s edgy food scene, The Three Brother’s Burger restaurant is located on a picturesque boat between Queen’s Square and Castle Park, overlooking King Street. Named after the three masts aboard the ship, they provide a relaxed setting and cheaper alternative to other lunch locations, yet still deliver on quality burgers and offer an extensive range of craft beers and ciders.

AQUILA

With an open kitchen to create a sense of culinary drama, Aquila is a modern Italian restaurant located a short distance from the harbourside and city centre.

The £5 lunch deal offers a simple classic burger and fries that can be ready in minutes and is available seven days a week until 5pm.

General manager Cinzia Porcedda comments: “We run our business lunch from 12pm to 3pm and it includes seven dishes, each available for £6.95. We have four different pasta dishes and 3 different pizzas.

GLASSBOAT

The Glassboat was salvaged from the River Severn 30 years ago and offers stunning views of the floating harbour and Bristol Bridge. Originally intended as a floating botanical garden, the restaurant now offers a classic French menu served alongside a carefully chosen selection of wine. The ‘Prix Fixe’ set menu offers two courses for £12 and three for £15 from Monday to Saturday.

“At the end of the meal the chef and manager come out and kiss and thank the customer because they are so happy to have them.”

PIGSTY

Known as the “Home of the hog” – Pigsty, as you may have guessed, provides customers with an array of pork delights. The restaurant evolved from an argument between three brothers – a rugby player, a ship broker and a cabinet maker over their favourite pork sausage. The only way they could resolve the issue was to create their own menu. Greg Rhodes, General Manager summarised their £6 lunch option: “The PLT Sarnie is a great option for lunch during the week.”

MUD DOCK

Mud Dock is a quirky bike shop and café converted from a red-brick harbourside warehouse offering a rooftop view of the city. Its business lunch menu offers various British and multi-national dishes for less than £15. All meals are prepared daily using fresh and locally sourced ingredients. Anna Trejner, café manager said: “We’ve been an independent part of the harbourside for 23 years with the same owners. We offer a large outside space overlooking the water and we get a lot of people sitting outside on sunny days.”

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Issue 18: April - June 2017

Business Leader - The magazine for business and enterprise

Debate:

Work Etiquette

Is it acceptable to drink at work? Or is the lunchtime pint dead in the water? By Emma Slattery

s it acceptable to drink alcohol in work hours any longer? Are the days of the lunchtime pint dead in the water? BLM went to find out more. This year, Lloyd’s of London announced a ban on staff drinking alcohol between 9am and 5pm. If staff break this rule, they could be sacked for gross misconduct. However, this does not apply to insurance brokers and underwriters in the same building. This begs the question; is it acceptable to drink during working hours any longer? A Think Tank report last year found that 40% of British employees believe drinking is an important part of their work culture. The same report found that half of young employees think that by not joining in with work drinking, they can’t fit in socially with their colleagues. In the finance sector, daytime drinking has long been a run-of-the-mill occurrence with deals often being struck over a couple of pints. There is the suggestion by some that the pub or bar is where the majority of deals are done. An insider at Lloyd’s told the Financial Times: “There is still a short hours and long lunch culture in some places and there are stories of brokers sitting in pubs handing out contracts like Jabba the Hutt.”

Yes

Tim Davies, Head Colliers International’s Bristol office, explains that in commercial property, having a few drinks can help to build relationship. He comments: “Meeting for lunch during working hours and drinking a beer or two is an accepted part of our business way of life”. There is the expectation that socialising and networking are an integral part of building a career. Tim comments: “I can remember when I first started working in commercial property, being hauled in by the senior partner to explain my expenses. He castigated me for not spending enough, as in his view it indicated that I wasn’t doing enough to get out and meet other young surveyors. These meetings are not just about socialising – they are about developing relationships and creating opportunities.” However, Tim believes that the long lunches of old are declining with people more aware of health issues and drink driving.

Under the influence Paul Brown, CEO at Mail Handling International, questions why we find people making important decisions

Business Leader - The magazine for business and enterprise

when under the influence of alcohol more acceptable than those operating machinery. He comments: “I guess the fundamental question is; when is work working? Are you being paid for good judgement, mental or physical performance? Do we want our pensions to be invested by a stock broker or fund manager who has a blinding hangover or is drunk or high? “Is there some unacceptable elitism that says ‘office professionals’ can drink and ‘warehouse staff cannot’? It is outdated to think that you can smoke at your desk, be racist or sexist in the workplace. Drinking at work is no longer commercially and culturally acceptable.” Paul still notes that events such as conferences and awards dinners build relationships and are not the place for an alcohol ban. However, these are also not where important negotiations should take place. Issue 18: April - June 2017

Deals: Review

What deals have been happening across the region? Oscar Mayer Ltd:

1PM:

Chard-based maker of ready meals, Oscar Mayer Ltd has been bought by German private equity firm Deutsche Beteiligungs AG (DBAG). With revenues of more than £250m and 2650 staff across four sites in England and Wales – Oscar Mayer produces more than three million chilled prepared meals and snacks a week.

Asset finance specialists 1pm have bought Bell Finance, a firm which provides Caterham-branded finance for kit cars, in a deal worth £3.4m. Based in Bath, this new acquisition provides funding for business-critical equipment such as machinery for construction, recycling and manufacturing.

My Action Replay:

ZPG:

Bristol tech company, My Action Replay has been purchased by New Zealand based business CricHQ. The move is part of their plan to make video capture and sharing more accessible to local clubs, schools and academies.

A Frome-based software developer, Expert Agent, has been acquired by property website giants, ZPG. They provide cloud-based software for day-to-day management of inventory, marketing and communications for estate and letting agents.

Spirax-Sarco:

Kellaway Building Supplies:

Cheltenham-headquartered engineering group Spirax-Sarco has agreed a £160m deal for German manufacturer Gestra AG. Based in Bremen, Gestra specialise in industrial boiler control systems and the production and design of valves and control systems for steam and fluid process control.

Bristol’s largest independent builders merchant, Kellaway Building Supplies has acquired Wiltshire firm, Marlborough Building Supplies. The move extends Kellaway’s operations in the Swindon area, although Marlborough will continue providing building supplies and products to large contractors, builders and DIY enthusiasts.

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Issue 18: April - June 2017

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News

Bristol entrepreneurs honoured at House of Commons 20 entrepreneurs from Bristol celebrated being included within the SET squared top 50 entrepreneurs at the House of Commons recently.

New incubator programme looking for emerging brands PepsiCo today announced an open call for entrepreneurs to take part in the PepsiCo Nutrition Greenhouse, a collaborative incubator programme designed to nurture the growth of emerging nutrition, health and wellness brands. The new programme focuses on products aimed at European consumers and seeks to identify up to eight breakthrough brands in the nutrition space. The selected companies will receive funds as well as the opportunity to partner PepsiCo. Entrepreneurs whose brands deliver sales of €2m or less are invited to find out more about the programme and apply at www.nutritiongreenhouse.com by May 15 2017. The chosen companies will receive a €25,000 grant and entry into the 6-month incubator programme with in-person and virtual events and one winning company will be awarded a €100,000 prize to continue its expansion.

The entrepreneurs were named on an exclusive list selected from over 1,000 entrepreneurs who have been supported by SETsquared during the last 15 years. Gareth Williams, entrepreneur at start-up YellowDog, said: “I’m delighted to be named as one of the top 50 SET squared entrepreneurs and to be included as part of such an illustrious group.”

Peter Boucher becomes CEO of Excalibur After almost two decades at Excalibur Communications, James Phipps has become Executive Chairman, with Peter Boucher (left) now stepping up as CEO of the progressive communications and IT provider. “With Excalibur ready for rapid growth, now is the time for Peter and the excellent management team we have in place to drive the business forward,” said James.

Snooker distributor targets U.S. expansion BCE Distributors, the global supplier of Riley Snooker tables and cues, has secured a £750,000 finance facility from Secure Trust Bank Commercial Finance as it looks to expand its presence in the US market. Established since 1976, the Bristol-based supplier has grown to serve an extensive client base including high profile brands such as Argos and Sports Direct. Having achieved a turnover of £4m in its latest financial results, the business aims to increase revenues by a further £1m within the next two years.

Issue 18: April - June 2017

Business Leader - The magazine for business and enterprise

Business Lending: Advertorial

How Peer-to-Peer (P2P) is helping business growth in the South West

eer-to-peer may still be seen by some as a new funding source, about which they are perhaps under-informed, but there are many out there in the South West who are in the know. These companies are benefitting from access to a funding stream that not only plugs many of the gaps left by diminished bank lending, but can also provide borrowers with a genuinely astute funding option; based on turnaround times, repeat borrowing frequency, and the use of innovative data analysis, alongside human interaction, to assess loan suitability. The South West region has provided a steady uptake of loans, with businesses across the region accessing peer-to-peer funding for a wide variety of reasons. The ThinCats business lending platform has processed loans for companies across the South West, including a manufacturing facility in the Tewkesbury area, which used a P2P loan for working capital to allow expansion into new markets; a mobile network operator in the M5 corridor, which accessed a loan for equipment purchase to develop new contracts; a restaurant chain, which drew down the loan in order to open new branches in and around Bristol; and an agricultural research facility in Gloucestershire, which secured funding for supporting stock holding and growth. A Cheltenham based construction and development company were the first property development loan listed on the ThinCats platform in 2013, and since then the company has had 6 more loans, funding a variety of property based projects, from convenience store developments to

a local estate of 10 houses, all within the Gloucestershire area. The region blossoms despite the tightening purse strings of the standard lenders; one Somerset based borrower, who was initially sceptical of the alternative finance industry, was forced to investigate other revenue streams after the bank’s appetite to lend decreased. Since 2015 the borrower has amassed a total of £10 million of P2P loans, which have been used to fund an incredibly successful array of business procurement, expansion and property development across the region. These investments have not only secured the longevity of existing local businesses, but have created new companies, taken on a significant number of employees, trained apprentices, and boosted the business potential of the supplier network across the board. Indeed one such business, an estate in rural Somerset, increased staffing levels from 5 to over 160, upped the contractors on their books from 5 to 38, took on an extra 11 apprentices and boosted their annual local expenditure from around £300,000 to £1.5million. John Sharpe, ThinCats Business Development Manager for the South West, has been out and about in the region, talking to SMEs, intermediaries and brokers, and has gained a real flavour of the needs and wants

of those looking for funding. Currently, he is talking to intermediaries in the area about loans ranging from £150k to £1.5million, for projects as diverse as rebranding, renovation, business acquisition and company expansion, and industries covering retail, manufacturing, engineering, maintenance and community development. John says, “An overriding factor for many is that the drawdown times are generally days rather than months, and there isn’t the need to wait the 12 months between loans that many banks would demand. This means that businesses have been able to exploit opportunities quickly and effectively, and companies have come back to the platform, repeatedly in some cases, to take advantage of business opportunities as they arise, avoiding long decision making processes that can be prohibitive to growth.”

John Sharpe Business Development Manager

For more information contact John Sharpe on: 07759 933 361 or email: john.sharpe@thincats.com

www.thincats.com Business Leader - The magazine for business and enterprise

Issue 18: April - June 2017

Interview:

Jeremy Vine

Pick up a pencil and put a cross on a bit of paper – it’s not too much to ask I think.

Jeremy Vine talks to BLM about all things politics and business. Can you tell readers about your background? “I love politics – I am fascinated by politics! I also love the radio – I always wanted a job in one or the other and I ended up with a job in both. So, my main job really is presenting my show on Radio 2, previously the Jimmy Young show and it’s now the Jeremy Vine show!” You’ve interviewed and met lots of famous people – what traits do you admire in a business leader? “Some people when they speak, they inspire me. I listened to Digby Jones speak a while back and I am not aligned with his politics - but he was amazingly positive about the future of this country. I don’t really relate to moaning – I want people to inspire me. I feel jealous of business leaders as I am very conscious I am not one – I particularly

admire entrepreneurs and those who have started from nothing, have got an idea and driven it.”

Moving on to politics, were you surprised by Theresa May’s decision to call a snap election? “I was surprised as I believed Theresa May when she said she wasn’t going to do it – so I’ve just cancelled a holiday as I’ll be covering the election. So yes, very surprised – it reminded me of the incident in the Rose Garden in the 90s when John Major called a news conference and announced he was “Brexit is the biggest resigning the leadership story of our lives so far! of the Conservative We’ve had six great party although not the prime ministership, so elections in the last eight it was just one of those years – the first Obama, things that when they call for a microphone then Trump, and in the either in the Rose UK we had Scotland and Garden or Downing Brexit and then we had Street, you know it’s going to be big. the 2010/2015 General “I’ve been surprised a bit too often recently, which is not a good thing for a journalist.”

Elections.”

Why do you think she has done it now? “The answer to that is two things – firstly she can see that Labour is in severe difficulties and secondly, we underestimate the power of the mandate – it is really big for her – the power of her having and being able to say, “I was elected PM” – she is currently in 10 Downing Street as a result of an awkward mess inside the Conservative party and nothing to do with the voters and she wants to be there because they voted for her as Prime Minister. 34

Issue 18: April - June 2017

Regarding politics and your job as a journalist – do you find it hard to stay impartial sometimes? “I always think a journalist can have values but not views. So, a value is ‘I hate litter’ a view is ‘hospitals are too dirty’. It’s a very fine dividing line and I am not a big political person in the sense of having a party I vote for or anything like that so for me it suits me anyway. It is a small price to pay for the best job in the world.” Elections can be volatile, leading to uncertain times both before and after the results. Could this perhaps spark a reversal in the Brexit process? “No I don’t think so because Labour is signed up to Brexit. The Conservatives have obviously signed up to it. You would only get a genuine reversal of Brexit if you had Lib Dems form a majority government after the election, which is not likely at this stage. They are the only national party that is pledging to reverse Brexit.” Do you think there will be the availability to vote electronically in the near future? “It’s just so open to fraud that’s the trouble. So-called younger voters need to learn to use their legs like older people do and go down and vote – it’s not that difficult. Pick up a pencil and put a cross on a bit of paper – it’s not too much to ask I think.”

Business Leader - The magazine for business and enterprise

Interview:

Jeremy Vine HOW TO

How can your business adapt to millennials? Chris Atkinson Elysian Training

Recently a video by author and speaker Simon Sinek went viral on social media. The hot topic was about millennials (people born after 1984) in the workplace. This is a profoundly important discussion because by 2025, millennials will make up 75% of the global workforce. Unless organisations adapt to the requirements of millennials we will increasingly see the core engines of our organisation’s failing, through cultural collapse. This group of people have characteristics we desperately need in our workplaces right now. They include: • High levels of education • Flexible thinking • Passion These are all qualities organisations have traditionally invested heavily to develop and yet they come as standard with our new workforce. So what can leaders do to better engage this group of people?

What is the most exiting election you have covered? “Brexit is the biggest story of our lives so far! We’ve had six great elections in the last eight years – the first Obama, then Trump, and in the UK we had Scotland and Brexit and then we had the 2010/2015 General Elections.” If you were Prime Minister for one day what would you do? “I would bring in a law that when you press the button on a bus it would play the opening to a Beatles song instead of just a beeping noise. I think there is too

much beeping going on in our society. Trucks beep when they reverse – if I take my seatbelt off for a second in the back of a cab it beeps at me. I am sick of being beeped at. So, I want to replace beeps on buses with opening to Beatles songs.” What would you say is the secret to success in business or life generally? “If I knew that I would be in business. I would say integrity is the key thing. I speak as a non-business person looking in. People who are what they seem to be go much further – you know what you’re dealing with.”

Business Leader - The magazine for business and enterprise

Care about the person more than the function – for years organisations have equated people to a ‘resource’. Simply put millennials will not tolerate being treated as machinery. Managers must learn to adapt their style for each person. Give clearly defined outcomes but not step by step instructions – this generation do not want to be mindless automatons, they want to learn and discover their own ways of working. Always connect to greater purpose – there is nothing more disheartening for a millennial than to feel what they are doing is pointless. They are mentally wired to connect to a sense of purpose, what contribution am I making to the world? Why does what I do matter? Issue 18: April - June 2017

Debate:

Gender Pay Gap

Why will millennial men earn more than women?

here is a ‘gap’ between the amount that men and women receive in employer pensions contributions, which if left unaddressed could result in a shortfall of £47,000 by the end of a woman’s working life, according to the inaugural Zurich Workplace Savings Barometer. Last year, on average, men under the age of 35 received £217 more in employer pension contributions than females of the same age. Furthermore, between 2013 and 2016, men have benefitted from pension contributions of 7.8% of salary each year from their employers compared with 7.0% for women. This difference comes on top of the gender pay gap and meant that the value of

the employer pension contribution was £3,495 for men and £2,489 for women – a difference of over £1,000 over the four year period. With wage growth taken into account, this difference could amount to a shortfall for women of £46,689 by the end of a working life. The analysis of over 250,000 pension plans, breaking down by age, gender, employee and member contributions alongside income, is one of the largest ever studies of workplace savings.

but this difference in the contributions that they receive from their employer presents a serious – and growing – problem. “The ‘triple effect’ of smaller salaries, career breaks for women and lower contribution rates needs to be addressed: we can’t ignore a £47,000 shortfall. “Workplace engagement and guidance has a central role to play in helping women make the most of their saving potential while they are working full time, but it is now crucial that greater focus is placed on ensuring that this gap is not allowed to grow any further.”

Rose St Louis of Zurich Insurance, comments: “The impact of the gender pay gap on women’s pension pots is no secret,

www.businessleader.uk.com @BLeaderNews

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In July this year Business Leader Magazine will be launching a national print magazine and brand new website. The national edition will be in addition to the already successful South West Business Leader Magazine.

Subscribe now to receive your copy: • UK’s first national business launch in years • Connect your brand with the country’s top entrepreneurs and businesses owners • Authoritative national business news and features • Subscribe to daily national business newscast straight to your inbox

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Issue 18: April - June 2017

Business Leader - The magazine for business and enterprise

News:

West manufacturers call for a focused industrial strategy

he government’s industrial strategy must systematically tackle the UK’s long-term structural weaknesses with a bold, focused and specific set of policy measures. But manufacturers in the South West believe it can only be achieved if government sets itself measurable goals and ensures a policy framework which forms the basis of future fiscal statements. The call was made by EEF, the manufacturers’ organisation in its submission to the government’s consultation on Industrial Strategy which closed today. According to EEF, the challenges of unbalanced growth and weak productivity are longstanding and undisputed. As such, government strategy should be bolder in its ambition to tackle three priority outcomes – reducing the productivity gap with G7 competitors, increasing the contribution to GDP growth from net trade and raising the UK’s innovation performance from follower to leader.

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Issue 18: April - June 2017

Review: Learning

Are these the biggest business disasters ever? What are some of the biggest business fails – and what can we learn from them?

s any seasoned business owner knows, business is not just about the successes but the failures too. Here we look at 10 business mistakes and lessons we can learn from them.

George Bell - Excite Excite CEO George Bell missed the opportunity of a lifetime when he passed on an acquisition deal for a company that would go on to become one of the most successful in history.

Gerald Ratner Former CEO, Ratners Group Businessman Gerald Ratner’s speech is so infamous in the corporate world such blunders are sometimes called ‘doing a Ratner’.

Online service provider Excite dominated the internet search engine world in the 90s, achieving revenues in excess of $150m in 1998. Around that time, the new kid on the block Google was also making a name for itself in tech circles.

During a speech addressing a conference of the Institution of Directors at the Royal Albert Hall, Gerald made a few less than favourable comments about his business, the Ratners Group’s products.

Excite was given the opportunity to purchase Google in 1999 for $1m. George Bell rejected the offer, even after the price was knocked down to $750,000.

These included calling the cheaply priced decanters and glasses ‘total crap’ and saying that some of the earrings were ‘cheaper than an M&S prawn sandwich but probably wouldn’t last as long’. After the speech, consumers boycotted the business and the value of the Ratners Group plummeted by around £500 million, which very nearly resulted in the firm’s collapse. Lesson: Gerald Ratner defended his words, saying they were not meant to be taken seriously but it’s a strong lesson in choosing your words carefully. Edwin Drake First American to successfully drill for oil While his pioneering work led to the growth of the multi-billion-pound oil industry, Edwin Drake died an impoverished man while others made their fortunes from his invention. 38

Issue 18: April - June 2017

Today Google is worth around $365 billion.

In the early 1800s, extracting oil was a slow and tedious process. But, after being hired by an oil company in 1858 to investigate an oil spring, train conductor Edwin Drake devised an ingenious pipe-and-drill system that dug down to the oil without contaminating it.

Lesson: Although this is a real kick oneself moment, the lesson here is to acknowledge your failures but let go of the regrets and other negative feelings attached to them.

However, Edwin had poor business acumen and didn’t patent his invention. He was soon eclipsed by quicker businessmen, eventually losing all of his savings in oil speculation.

NASA When it comes to scientific calculations, there is no margin for error, something NASA discovered when a simple error gone undetected resulted in a major malfunction.

Lesson: Edwin’s failure is a reminder to never underestimate the competition or the value of common business sense.

In 1999, a Mars orbiter that Lockheed Martin designed for NASA was lost in space due to a simple error where the engineers

Business Leader - The magazine for business and enterprise

Review: Learning

at Lockheed used imperial measurements while the NASA team used metric. The mismatch led to a formation on the $125 million craft malfunctioning and the probe being lost. Throughout the design process, there were numerous occasions where the error should have been caught but wasn’t. Lesson: If you want to avoid a miscommunication mishap, get multiple people to check all information coming from your company for mistakes or ambiguity. Kodak By resting on its laurels, Kodak not only sabotaged its chances to gain success in a new market, it made its own market obsolete. Though most people today associate Kodak with film, the business filed a patent for one of the first digital cameras in 1977. However, executives at the company saw the new technology as a threat to its existing products and as the business was making so much money on film, they decided to sit on the new developments. When the market switched to digital, Kodak was left playing catch-up, unable to make strong gains against other manufacturers who had been producing digitals for years. Lesson: It never pays to be stagnant in business. Taking risks are key to successfully growing a business and remaining flexible in your market.

Thomas Midgely Jr – General Motors In a bid to prove the product he manufactured was safe, Thomas Midgely Jr instead found himself a victim of one of the worst PR stunts in history. In the 1920s Thomas discovered that the addition of Tetraethyl lead to gasoline prevented “knocking” in internal combustion engines. The company named the substance “Ethyl” and soon began production. However, many employees at the manufacturing plant began to suffer from lead poisoning. At a press conference, Thomas poured some Ethyl on his hands and inhaled it for 60 seconds to prove the substance was safe. He was later diagnosed with lead poisoning. Lesson: This one is a lesson in transparency to both your customers and employees. Being honest – no matter how hard the truth – is always the best route to take. Anthony Noto – Twitter Anthony Noto’s blunder was made that much worse by the fact that the Twitter faux pas was made by one of its own employees. In a Tweet that was later deleted, Twitter CFO Anthony sent a private message as a public Tweet, which appeared to discuss a potential acquisition.

like Twitter, where information like this could impact stock and violate Regulation Fair Disclosure. It also highlighted some of the user experience flaws the social media platform had. Lesson: Twitter mistakes are a dime a dozen, but could be avoided by implementing a social media policy in the workplace and adequate training for employees. JP Morgan Chase What was expected to be a simple Q&A soon turned sour when Twitter users launched a tirade of abuse at JP Morgan. In 2013, JP Morgan sent a Tweet informing the world they would be on hand to answer questions for one hour using the #AskJPM hashtag. More than two-thirds of the 80,000 Tweets using the hashtag were negative, including sarcastic jibes such as ‘What’s it like working with Mexican drug cartels. Do they tip?’. JP Morgan later issued a Tweet to cancel the Q&A, saying it was a bad idea and time to go back to the drawing board. Lesson: It’s important to address legitimate customer concerns but public forums can be unpredictable and no serious issue can really be addressed in 140 characters or less. 

It was a big mistake for a public company

Business Leader - The magazine for business and enterprise

Issue 18: April - June 2017

Advertorial

How to set your exhibition stand KPI’s By Paul Runacres, Clip Exhibition & Display

he 16,000 strong survey carried out at the end of 2016, confirmed that exhibitions are a vital part of people’s business growth and marketing activities; almost 85% of people questioned stated that they attend up to 10 exhibitions per year. It’s vital that if you’re one of those 85% of businesses in the SW who will be exhibiting this year, that you understand how to set and measure KPI’s for your exhibition campaigns. Paul Runacres, Head of Sales & Marketing at Clip Exhibition and Display explains the importance of setting and measuring effective KPI’s for your exhibition activities. “The very first step is to understand why you are looking to attend a specific exhibition. • “We always go.” • “We can’t not go.” • “Our competitors go, so we have to be there.” If variations of the above are the reasons you give for attending an exhibition then I’m afraid you shouldn’t be going. Simple as that. From the Head of Sales & Marketing at an exhibition company, that may sound like a strange thing to hear but it’s true. To give yourself the best chance of making an exhibition really work for you, you need to have clear, measurable objectives from attending the event. If your objectives are to generate new business enquiries then setting the KPI’s is easy enough but you still need to make sure that these KPI’s are followed right through to give a tangible return on investment. For example, setting a target of 100 business cards, or scanned visitor badges per day is the first stage of the lead generation process but if these never move through the sales process to become quotes and ultimately clients then the number of contact details you collect is immaterial. Use your sales conversion rates to work backwards and set your KPI’s. If you want to generate £50k of profit from the exhibition then work out how much turnover that equates to. Then use

Issue 18: April - June 2017

“To give yourself the best chance of making an exhibition really work for you, you need to have clear, measurable objectives from attending the event.” your quote conversion rate to calculate what value of quotes you need to generate. Finally apply your average quote value to establish how many leads you need to be generating per member of staff on the stand each day. All of this will be vital later down the line when you come to write your stand brief, book the number of staff on the stand and also help you focus on the type of products to promote at the show. Another common KPI when attending an exhibition is to build brand awareness. A lot of people claim that this is an intangible and impossible to measure but that’s just

not the case. Brand awareness can easily be measured by a simple questionnaire or interactive game on the stand, or alternatively, cross reference your website visitors pre, during and post show, to see how many extra people have accessed your website having come into contact with you at the show. You can then calculate the number of new visitors needed on your website to hit the required level of new opportunities or quote/order values to help measure direct ROI at your exhibition. There are many reasons for attending an exhibition, far too many to cover in this short article, but the key is to be absolutely clear on your reason for attending. Once you know the reason, ensure that all elements of the stand layout, staffing and products on display tie in with it and pick some simple and direct KPI’s to help you measure your ROI from the exhibition. In the next edition, we cover how to write an exhibition stand brief.

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Issue 18: April - June 2017

Future of Employment:

Debate

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Reality vs ideology is flexible working really the future for businesses? WHAT WILL THE FUTURE OF WORK LOOK LIKE IN THE UK? Samantha Castle: “We’re seeing a move to a more flexible working structure amongst businesses. For employers, this means they can provide a service ‘out of hours’, as this is something that customers expect. “It is also good for employees, as they can work around their own life. It is dependent on the person of course, but technology is evolving to allow this to happen.” Rob Vivian: “I don’t agree entirely with the concept of agile working as having a team is important because everybody brings different skills in; and having people out of the office can negatively impact on projects you’re trying to work on. “Creating a strong culture in your business requires everybody being there – so I have a slightly jaundiced view on flexible working. Another fear I have is that employees may be pushed towards flexible working not because it’s right for the employee but because it is a cost saving measure. The overheads of offices are significant, so if you can drive that cost into somebody’s house then it’s better for the employer.” Antony Wild: “It’s important to define ‘flexible’ working, as it can mean hot-desking but you are still in the office. “But I also agree with Rob – teamworking is important to us too. But flexible working will be part of the mix in the future and some candidates have an expectation of this.” Martin Parish: “We are moving to a model of 42

Issue 18: April - June 2017

more agile working at AON and have recently moved five thousand people in London to this model. You need to consider each person and whether it will work for them. I do have a concern around the sharing of knowledge if you go completely agile. “Also – if you’re moving everybody out of an office, into their homes it may not be conducive to good working practice if they are working from a one bedroom flat and have a desk and a chair but nowhere to put it.” Ken Simpson: “Regarding hot-desking, the feedback I often get is that it can be a pain to have to adjust your computer and chair every time you come to a new desk.” James Durie: “The breadth and depth of our economy in the South West is staggering and so diverse. Flexible working isn’t going to be right for every sector – take manufacturing for example. But in other sectors I do think it’s the future. Obviously, people need to come together to spark ideas off each other but they don’t need to be sat at a desk all day, every day. “At the heart of this is the challenge to making everybody more productive and technology such as iPhones is central to solving this; and aiding flexible working. But the question is – when do you turn your phone off? ” Sam Holliday: “I’m more productive from home, as you don’t have conversations in the kitchen about the football results at the weekend, but if I was in London, in a one bedroom flat then maybe not.

“I’d also add that coffee shops aren’t always conducive to sensitive business calls. And finally, I left home at 6.30am this morning and there is nothing productive about commuting. If you can channel the time spent in the car to working at home, there must be something in that. “I’ve also noticed that the culture in London is the best of both worlds – Monday and Friday people work from home and Tuesday, Wednesday and Thursday they work in the office.” Jeremy Howson: “For us, we’re going through the shift to agile working now. I don’t have a desk – I work from home, service stations and business parks. This is the way I feel the service industry is going and for millennials, it is second nature. ” Mel Beeby-Clarke: “For me, flexible working shouldn’t be a benefit anymore – but a given. It’s also about outputs – surely employees should be judged on the work they do and not whether it is done at home, in a coffee shop or on a mountain! “Too many employers are behind the times on this issue.” Ross Bennett: “One size doesn’t fit all and agile working sounds fantastic but there is an issue around change management. Also, if you’re working alone you can be making the same mistake repeatedly, without somebody picking it up. Training and development is also a key driver for staff; and if you’re working remotely you may not be benefitting from this as much as you can.”

 Business Leader - The magazine for business and enterprise

Future of Employment:

Debate

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The Line-up Ross Bennett Sales Manager, Heat Recruitment Samantha Castle Senior Associate, Barcan & Kirby Sarah Fox-Clinch Managing Director, Fox Davidson Ken Simpson Business Relationship Manager Bristol Pound Rob Vivian CEO, Pure Comms Stephen Bashford Head of Economic Development North Somerset Jeremy Howson Tax Manager, Grant Thornton Nicky Williams Head of Skills, Business West Mel Beeby-Clarke Director, Ambitious Sam Holliday Development Manager Federation of Small Businesses (FSB) James Durie Director of Bristol Chamber of Commerce & Initiative Business West Antony Wild Operations and Projects Director Harmsen Tilly Shane Martin Parish Area Director, AON Employee Benefits Business Leader - The magazine for business and enterprise

Issue 18: April - June 2017

Future of Employment:

Sarah Fox-Clinch: “For me, I like the banter of the office and when I had my first child I couldn’t take maternity, so I had three months working from home. In this time, my knowledge plummeted and I found it a very lonely experience. When I came back it took me a month to get back up to speed.”

Debate

Potentially Brexit could be an opportunity to up-skill the UK population.” WHAT PROGRESS IS BEING MADE ON THE GENDER PAY GAP?

Sarah Fox-Clinch: “It is unbelievable to me that it still happens and we don’t have one in our business. Your pay is per your role and HOW WILL THE UK LEAVING THE EU AFFECT your achievements within it. Also, I don’t know THE FUTURE OF THE WORKPLACE? if it’s access to opportunity either. I work in a very male dominated industry and whenever Sam Holliday: “This is relevant at every level we put a job advert out applications for – for example Pret A Manger recently had a administration roles come from women and job advertised that had only one application when we put a job out out of the 50, that was for sales person, males British. Lots of people apply. That’s not us in the UK that are EU “Job descriptions are engineering this.” nationals feel they may have to leave or might important and studies Nicky Williams: “It’s want to leave; and if they also about where have shown that the do – we’ll have a real you go in and out of tone of language has an problem. employment – I’ve impact on how many previously had a “When you walk down the situation where I left high street in some towns women apply for the work and have gone there are job notices in role. Words matter and back into the role but each shop window. It’s this is something that have been put on a all well and good living in lower wage than a male nice places with theatres needs to be addressed.” colleague. We really and culture but if people Nicky Williams need to address this as aren’t willing to do the it only takes a couple of jobs, there is an issue. 44

Issue 18: April - June 2017

“It is unbelievable to me that it still happens and we don’t have one in our business. Your pay is per your role and your achievements within it.” Sarah Fox-Clinch months to re-acquire the knowledge. “Job descriptions are important too and studies have shown that the tone of language has an impact on how many women apply for the role. Words matter and this is something that needs to be addressed.” Rob Vivian: “We have experience of employees taking maternity leave and the biggest challenge can be organising them to come back as there can be pressure from home sometimes, where the partner may not want them to come back in the same role. “It’s often tough to agree on the role the employee will come back to; and sometimes as a business owner you feel you aren’t able to discuss this. It’s a complex issue, as inevitably a business will change over a nine to twelve month period and the employee will come back to a different environment."

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Finance/Investment

Is past performance a useful guide for future returns? By Kenton Price, Kellands (Bristol) Limited

When it comes to investing in funds, looking at past performance data is very alluring and is the starting point for many. Because of this, despite the required disclaimer at the bottom of every piece of investment marketing material, stating that past performance is not a guide to future returns, most investors find it difficult not to rely on it.

Despite the ubiquitous compliance disclaimer, it is clear that past performance can be a very helpful tool in the investment selection process. However, it is not a divining rod and should be used with caution - and in the correct way. And it should not be the only selection criteria. For example, as in the recruitment process, a fund manager’s track record is instructive and past performance can be used to assess fund managers. You can check to see how they have performed against their benchmarks. If they consistently beat them, then it would seem reasonable to expect similar outperformance in future. Drilling down further, you can get to understand a manager’s approach as well as the types of conditions in which he or she is likely to outperform. You also need to evaluate whether a strong performance will continue when market conditions change. Further, you need to assess whether underperformance is due to a manager losing his mojo, or whether it is simply due to the fund’s strategy.

The temptation for many is to select funds based on past performance data because it is easy to understand - unlike much of the other financial criteria and research available to supposedly help investors choose. Certainly, when looking at your investment options, it is more important to examine current trends, rather than past ones. It is how to do that - and make an informed decision - that can be more difficult. So what should you do about past performance data?

IT’S GOOD TO TALK:

It is not easy, however. As an example, perhaps the most famous fund manager of them all is the contrarian Neil Woodford, once of Invesco Perpetual and now running Woodford Investment Management. He avoided technology stocks like the plague during the dot com bubble in the late 1990s and allegedly nearly lost his job in the process. Yet he was proved right long-term. Selecting his funds going forward would have seemed a bold decision at the time. The same can be said of sectors, where past performance could well cause a few moments of unease. For example, Lipper IM shows that Emerging Markets were the

best performing sector for two consecutive years in 2009-10 but then became the worst performing sector in 2011. In 2015, it was again the worst performing sector but jumped to be the best again in 2016. Obviously, investments should be made for the long-term but this level of volatility could cause palpitations. It shows once again the benefits of diversification. In summary, despite the disclaimer, past performance is still a useful guide in assessing the effectiveness of a fund manager and his/her strategy. However, it needs to be put into context: • What risks did the fund manager take to achieve that return? • What do the pattern of returns say about a fund manager’s investment style? • Can the numbers be reconciled with the fund’s stated investment approach? • How has the fund performed during sharp rallies and market downturns? • How great have the divergence of returns been when compared with the benchmark and its peers? This is where expert financial advice comes in.

www.kelland-bristol.com

To discuss your situation and the options available to you, please contact Kellands on 0117 900 4000– we look forward to hearing from you.

Kellands (Bristol) Limited, Quays Office Park, Conference Avenue, Portishead, Bristol, BS20 7LZ is regulated by the Financial Conduct Authority.

Issue 18: April - June 2017

Business Leader - The magazine for business and enterprise

www.btc.ac.uk

APPRENTICESHIPS - WHAT THEY MEAN TO YOU Bridgwater & Taunton College works with employers, industry specialists, community organisations and awarding bodies to develop and deliver innovative, accredited and bespoke training programmes required by business. Apprenticeships, and the new Standards have been developed and written by employer groups, ensuring they are highly relevant to individual industries and sectors, across a range of levels up to Degree Apprenticeships.

Matt Tudor, Director of Business Development & Marketing

March 2017 saw National Apprenticeship Week in its tenth year, designed to celebrate the positive impact Apprenticeships and Traineeships have on individuals, businesses and the economy.

order to upskill or retrain for the benefit of your business.

With a generation of young people deterred from Higher Education due to high fees, Apprenticeships Apprenticeship are attracting highly reforms needn’t motivated, talented cost your people who are business more. looking to earn a Let Bridgwater & living whilst they are Taunton College learning, and who can help to drive your show you how! business forward.

Bridgwater & Taunton College is one of the largest Apprenticeship providers in the South West, New and the Business Apprenticeship Development team is highly experienced Standards – in the development Apprenticeship and delivery of programmes Apprenticeship written by solutions, as well employers for as being highly employers! knowledgeable in the new reforms and how they might affect your business.

Apprentices don’t have to be new to your business; they can be existing members of staff who undertake an Apprenticeship in

To discuss anything about Apprenticeships, contact the Bridgwater & Taunton College Business Development team.

However, the face of Apprenticeships is changing. The introduction of the Levy and new Standards in Every company April 2017 means large or small, every company, large should have or small, should have developed a developed a strategy to utilise the Levy strategy. or the government funding available, and to capitalise on the new reforms to their business advantage. The aim of the Levy is to increase UK employers’ commitment to and investment in

Apprentices who have benefited from a partnership between Bridgwater & Taunton College and Wessex Water.

Bridgwater & Taunton College, Bath Road, Bridgwater, TA6 4PZ 01278 655111 business@bridgwater.ac.uk

Business:

Review

Nine things we now know (and what they mean for you and your business) ‘BREXIT’ MIGHT NOT BE AS BAD WE THINK... Prior to the vote last June 23rd, George Osborne and David Cameron stressed that should we vote leave the economy would crash within weeks; and we would need to have an emergency budget. Not the case at all and the opposite has happened – with the economy experiencing growth. DONALD TRUMP MIGHT NOT BE AS BAD AS WE THINK... OK, he probably will be - and his idea of diplomacy is a joke - but the fact that he is currently finding it difficult to push his policies through may temper his more extreme elements. Or it may not. But pragmatism tells us that in light of our new position in the world, his desire to set up a trade deal with the UK may be a positive thing. JEREMY CORBY IS AS BAD AS WE THINK What is most dangerous about Corbyn is his total lack of leadership and ability to provide meaningful opposition to the current government. He commands no respect from the majority of his party and in the wider world, beyond his membership following. His poll ratings are shot to bits and he is behind on every issue and argument – but something tells us he won’t throw in the towel. UK IPO MARKET IS LOOKING STRONG... The UK IPO market will accelerate towards the end of 2017 – according to EY. Could be worse; and another positive statistic following Brexit. More activity means more velocity in the economy and more jobs. CONTINUED DEPRECIATION OF THE POUND GOOD FOR WOULD BE EXPORTERS What was it Liam Fox said about exporting, golf and Friday afternoons? Well, with only 11% of UK businesses exporting, the continued low value of the pound presents the other 89 per cent with an opportunity for some of them to start exporting. BRISTOL IS NOW THE UK’S BEST PLACE TO LIVE First it was Liverpool, then it was Manchester but now it is Bristol. The city 48

Issue 18: April - June 2017

was recently voted as the best place to live in the UK. Good news for landlords but also good news for businesses, investors and wealth creators. HOLLAND WENT FOR THE SAFE OPTION Following ‘Brexit’ some commentators said that the European Union would fall like a pack of cards. Well, with elections all across the continent in 2017 it is a possibility. But it hasn’t started that way with Dutch voters going for Mark Rutte (safe pair of hands) instead of the popular Geert Wilders (Holland’s answer to Trump and virulently anti-EU). UK COMMERCIAL PROPERTY SECTOR REMAINS STRONG Commercial property agents like to reveal statistics – industrial market this, office market that, residential up, inward

investment down. And the latest batch from Savills make for good reading. According to Savills latest Regional Office Market Spotlight, take-up in the UK regions (excluding London) surpassed the long term average of 9.1 million sq ft (845,417 sq m), hitting 9.6 million sq ft (891,869 sq m) in 2016, despite ongoing political uncertainty. GETTING SACKED MIGHT BE THE BEST THING THAT HAPPENED TO YOU Nice feel-good story form the founder of Virgin Wines who ‘had no idea he was going to be sacked’ until… he was. But fear not, this entrepreneur got straight back on his feet and set up a now successful business. You just never know what is around the corner. 

Business Leader - The magazine for business and enterprise

Extending Jordans services to Asia Jordans (Hong Kong) Limited Gateway to Asia

Jordans Corporate Law: a legal team built around you A bespoke legal service that gives you just the right amount of legal support. Whether you are a professional seeking assurance and an expert eye in a specialist area or a company looking for direct and understandable advice and assistance, you can count on a flexible service, informed options and, most importantly, price certainty. • Corporate compliance and governance • Directors’ training • Shareholder agreements • Mergers, acquisitions and disposals • Group re-organisations including capital reductions and demergers To find out more about how we can help, contact: Debbie Farman on 0117 918 1221 Email: DFarman@jordanscorporatelaw.com Or Simon Bates on 0117 918 1210 Email: SBates@jordanscorporatelaw.com Authorised and regulated by the Solicitors Regulation Authority. No. 605152

Championing Engineering and Manufacturing in the South West Headquartered in North Somerset since 2005, Hunter Selection has grown to become one of the country’s leading recruitment consultancies. Focused on Engineering, Manufacturing and Technical roles we have forged a reputation for results and customer satisfaction in a highly competitive sector. Bringing a level of service normally associated with executive selection, we offer a ‘fee on success only’ approach to the recruitment of skilled professionals with the assurance of a 100% guarantee for every placement. Our teams of experienced consultants strive to make the recruitment process a transparent and efficient one, with the aim of becoming a valued and trusted extension of your own organisation. We offer full selection support to all our clients. This can include, but is not limited to: advice on job specifications, salary surveys, market information, interview training, employment law and process management. Our interview suites at Leigh Court, on the outskirts of Bristol, are available should clients wish to take advantage of the privacy and uninterrupted focus that this facility allows.

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