Business Leader Magazine: December/January 2022 by Business Leader magazine

ISSN 2632-7155

9 772632 715003 9.75 DECEMBER/JANUARY 2022 • £9.75

www.businessleader.co.uk

THE COLOURFUL ENTREPRENEUR Holly Tucker MBE talks about her notonthehighstreet journey and plans for the future

esg debate

is 'just in time' under threat?

Business Leader investigates the supply chain crisis

Are businesses doing enough?

BRITAIN’S LEADING MAGAZINE FOR ENTREPRENEURS AND BUSINESS PROFESSIONALS

CONSISTENT PERFORMANCE

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S P R A G U E

G I B B O N S

Adver tising | Marketing | Design

CONTENTS

IN THIS EDITION 10 COVER STORY: HOLLY TUCKER MBE

Holly talks candidly about what it was like building one of the UK’s most recognisable retail businesses, and gives her views on building a personal brand, leadership, and life

14 AGENDA: SKILLS SHORTAGE

Why could the global labour shortage be a good thing? Business Leader investigates

20 FEATURE: JUST IN TIME

24 CEO IN FOCUS: ANTHONY MATCHETT

48 FAST TRACK: RAZOR

In a world where almost anything can be ordered to your front door at the touch of your fingertips, has the 'Just in Time' economy had its day?

CEO of Napster discusses how VR has influenced the music sector, and what future trends are set to dominate the industry

Business Leader talks to CoFounder and CEO of Yorkshire-based technology consultancy firm Razor about their exponential growth

29 TOP 32 ESG PIONEERS

52 FEATURE: ELECTRIC VEHICLE

Profiling the UK’s leading ESG (Environmental, Social and Governance) businesses and the senior figures that lead them

40 DEBATE: SUSTAINABILITY

52 Business Leader - Inspire • Inform • Connect

Business Leader investigates what companies can do to tackle climate change, and how they can measure and report their actions

With more electric vehicles appearing on UK roads than ever before, business leaders and CEOs discuss why they decided to make the change

62 REVIEW: FINTECH SECTOR

For our latest tech feature, we look at the fintech space to see what trends are shaping this burgeoning vertical and what the future holds

NEWS

OPEN FOR Awards ENTRY

EDITORIAL Oli Ballard - Director E: oli.ballard@businessleader.co.uk Barney Cotton - Digital Editor E: barney.cotton@businessleader.co.uk James Cook - Content Manager E: james.cook@businessleader.co.uk DESIGN/PRODUCTION Adam Whittaker - Head of Design E: adam.whittaker@businessleader.co.uk SALES Sam Clark - Head of Awards Sponsorship E: sam.clark@businessleader.co.uk Emma Filby - Head of Advertising E: emma.filby@businessleader.co.uk DIGITAL & WEB Josh Dornbrack - Head of Multimedia E: josh.dornbrack@businessleader.co.uk Gemma Crew - Social Media & Community Manager E: gemma.crew@businessleader.co.uk Joshua Phillips - Website Development E: joshua.phillips@businessleader.co.uk CIRCULATION Adrian Warburton - Circulation Manager E: adrian.warburton@businessleader.co.uk

The 2022 Scale-Up Awards are now open for entry – with businesses and entrepreneurs from across the UK sending in their applications. The Scale-Up Awards celebrate high-growth companies and the entrepreneurs that run them. It is the first and only awards to focus on the scale-up sector and the 2022 event will showcase the businesses that have navigated the tough conditions by innovating, creating jobs, achieving growth, and supporting their communities and the planet. The Awards are open to all UK-based entrepreneurs and trading businesses of every size, provided they meet the entry criteria for each category and are prepared to participate in the media publicity surrounding the Awards. Entries will be open for several months, and close on March 18 2022.

Categories at the Scale-Up Awards 2022 include; Award for ESG and Social Impact, Business Leader of the Year, Employer of the Year, Family Business of the Year, Overall Scale-Up Business Award, Scale-Up Disruptor Award, Customer Champion Award and International Business of the Year. Founder of the Scale-Up Awards, Andrew Scott, comments: "Following a difficult two years for the business world, we are excited to support and highlight the incredible achievements of the scale-up community both in the UK and around the world. Good luck to all our entrants!" If you are interested in partnering with the 2022 Scale-Up Awards, please call 020 3096 0020, visit scaleup-awards.co.uk or email sponsorship@businessleader.co.uk.

Independent judging panel includes:

ACCOUNTS Jo Meredith - Finance Manager E: joanne.meredith@businessleader.co.uk MANAGING DIRECTOR Andrew Scott - Managing Director E: andrew@businessleader.co.uk

OUR COMMITMENT

Donna O'Toole

Touker Suleyman

Naomi Timperley

Steve Malkin

Piers Linney

Manjula Lee

Matt Gubba

Caprice Bourret

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December/January 2022

NEWS

UK’s ‘impact start-ups’ raise £2bn to tackle UN’s Sustainable Development Goals UK impact tech start-ups – companies founded to build solutions to the United Nations’ Sustainable Development Goals – have raised £2bn in investment this year as technology becomes increasingly important in tackling global problems. New analysis published by Dealroom for the UK’s Digital Economy Council has shown that impact investment in the UK has increased by 127% since 2018. The UK is now home to 12 impact unicorns – companies worth over $1bn or more in value. The unicorns are Arrival (London), Octopus Energy (London), Babylon (London), ITM Power (Sheffield), Ceres Power Holdings (Horsham), Vertical Aerospace (Bristol), Compass Pathways (London), Depop (London), Ovo Energy (Bristol), Britishvolt (Blyth), Tractable (London), and BenevolentAI (Cambridge). Of these 12 companies, six of them are based outside of London, demonstrating the wide-reaching nature of the companies working in this space. In the UK, there are now nearly 900 impact start-ups and scaleups using technologies such as artificial intelligence, deep tech,

big data, and blockchain to develop next-generation solutions to take on global problems such as climate change, health and food insecurity.

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25/03/2021 09:10 3

NEWS

Amazon to stop accepting payments made with UK-issued Visa credit cards in January

Amazon has announced that it plans to stop accepting payments made with UK-issued Visa credit cards in January 2022. Payments on cards attract a range of fees including interchange fees and other transaction charges, and it is understood that Amazon’s move has not been prompted by an increase in any of the charges in particular. Regarding the decision, an Amazon spokesperson stated: “The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers. These costs should be going down over time, with technological advancements, but, instead, they continue to stay high or even rise.” In response, the British Retail Consortium said: “Retailers in the UK and the EEA now face an estimated £150m a year cost increase to accept cross-border card payments, with British retailers alone shouldering an extra £36.5m, or £100,000 every day. The research by retail payments advisory firm CMSPI, in conjunction with the British Retail Consortium (BRC) and its members, revealed the huge impact of fee changes, which have risen up to 475% in some cases.” Neil Debenham is an entrepreneur, investor and business trouble shooter who has facilitated over £50m worth of private equity and debt investment into scaling UK businesses. He shares his thoughts: “Amazon’s decision to stop accepting payments made through Visa credit cards will have been a well thought out and calculated move. Given the size of the company, Visa will certainly feel the pain due to a loss of business through the retail giant. Ultimately, Amazon’s move will force Visa to sit back and take note of its excessive fees and make adjustments for the future.”

Newly appointed female CEOs doubles YoY but only 8% of UK CEOs are women Heidrick & Struggles, the global provider of executive search and leadership advisory services, recently published their eighth annual ‘Route to the Top’ survey, which draws on an analysis of the profiles of 1,095 CEOs at the largest publicly listed companies across 24 markets including Australia, Brazil, China, Germany, Italy, Mexico, UAE, UK and the USA. According to the survey, only 8% of UK CEOs are women, however, the share of newly appointed women CEOs more than doubled to 13% around the world over the first half of this year, compared to the last six months of 2020 (6%). Although the absolute number of female leaders remains low, the trend suggests a move towards more progressive and inclusive policies inside the world’s top companies.

Compared to their direct predecessors, new CEOs are more likely to be women (13% – up from 6% last year), to be non-nationals (30%), to have cross-border experience, while 35% of CEOs have an MBA, up from just 20% previously. While only 8% of UK CEOs are women, this is a 3% increase on last year and 2% more than both the European and global average (6%). At 14%, Ireland leads the world with the highest number of female leaders atop of the corporate ladder.

Stelrad Group PLC valued at £274m following London IPO Clearwater International has advised Stelrad Group PLC, a specialist manufacturer and distributor of steel panel radiators, on its initial public offering on the London Stock Exchange (LSE) which valued the business at £274m. Stelrad is a specialist manufacturer and distributor of steel panel radiators in the UK, Europe and Turkey, selling an extensive range of standard and premium steel panel radiators, low surface temperature (LST) radiators, towel warmers, decorative steel tubular radiators, and other steel ‘column’ radiators to more than 500 customers annually. Based in Newcastle upon Tyne, Stelrad employs 1,325 employees across the business.

December/January 2022

NEWS

Google LLC wins controversial Supreme Court case

Making it Happen:

Lessons from the Frontline of Strategy Execution The choice we have isn’t between the status quo and some future state, but between two future states that are we are heading toward; we can influence and shape what the future looks like. These words are of a contributor to a new book Making it Happen: Lessons from the Frontline of Strategy Execution by Rebecca Stephens, principal consultant of strategy execution firm, Skarbek Associates. And we had better start believing them if we’re to rise from the hammer blow of the pandemic. One sure way to restore a healthy economy is to increase productivity and growth. And for this to happen, we need to become excellent at making things happen; we need to turn strategy into reality. It isn’t easy. Even before the faltering effects of the last 20 months, a majority admitted that implementing strategy is hard, and research data backs up their concerns. A PMI report that researched 3,000 project professionals from a range of industries around the globe revealed that 47% of projects were delivered late and 41% over budget. A further 13% of projects were deemed failures. Rebecca Stephens Author

Supreme Court, London

The UK's Supreme Court has rejected a claim that sought to gain billions in damages from Google LLC over alleged illegal tracking of over four million iPhone users between 2011 and 2012. The Supreme Court unanimously ruled in Google’s favour in the landmark case. The case was brought by Richard Lloyd, a former Director at Which?. The accusation alleged that Google cookies collected data on health, ethnicity, sexuality, financial circumstances, and more through Apple's Safari web browser, despite users not choosing to have their data tracked in their privacy settings. The potential fine for the global tech firm would have been one of the largest in history. Following the ruling, Lloyd commented: "We are bitterly disappointed that the Supreme Court has failed to do enough to protect the public from Google and other big tech firms who break the law. Although the court once gain recognised that our action is the only practical way that millions of British people can get access to fair redress, they've slammed the door shut on this case by ruling that everyone affected must go to court individually."

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To close the gap between strategy and execution, the book argues, we need to think creatively, and a good starting point is to look at the hard-earned experience of a diversity of talents. The above quote is that of a GP, Dr James Morrow, who strongly argues this point for his own profession: ‘Doctors should stop saying medicine is sacrosanct and adopt standardization and rigour from other disciplines,’ he says. Dr Morrow’s is one of a dozen stories in the book that inspire and offer practical tips on executing strategy from an array of very different fields: the military, civil service, education, the arts, industry, space exploration and mountaineering. The book is an essential read for every business that aims to improve its strategy execution, but also for individuals to know that with courage and commitment, an open-mind and agility, they, like the subject of this book, can make a real difference to the people and organisations they serve. ‘Making it Happen: Lessons from the Front Line of Strategy Execution’ by Rebecca Stephens is published by Bloomsbury and available at all good book shops, the Bloomsbury website or Amazon. Order here: https://linktr.ee/skarbek

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NEWS

Reality TV star and YouTube personality secure funding to expand plantbased food brand

Made in Chelsea’s Verity Bowditch and former YouTube personality Mikey Pearce have raised £1.4m in a seed round, to expand their new disruptive plant-based food brand, Clean Kitchen Club. The lead investors in the round include Clive Sharpe, ex-Chairman of Quorn, and Grace Beverley, fitness influencer and business owner. Beverley is Chief Executive of Shreddy, a fitness and recipes app, and Tala, a sustainable activewear brand, which, since launching

in 2019, has reached more than £10m worth of sales. Verity Bowditch, Co-Founder and Head of Sustainability at Clean Kitchen Club, added: “There’s a clear demand for delicious, sustainable protein alternatives. People are waking up to the impact that meat production is having on the environment and need a clear solution – one that also fits easily into their lifestyle. We provide exactly that."

Dorsey steps down as Twitter CEO Co-Founder of social media giant Twitter, Jack Dorsey, has stepped down from his role as CEO. Twitter’s Board of Directors has Parag Agrawai unanimously CEO, Twitter appointed Parag Agrawal as the new CEO and a member of the Board. Dorsey will remain a member of the Board until his term expires at the 2022 meeting of stockholders. “I’ve decided to leave Twitter because I believe the company is ready to move on from its founders. My trust in Parag as Twitter’s CEO is deep. His work over the past 10 years has been transformational. I’m deeply grateful for his skill, heart, and soul. It’s his time to lead,” said Dorsey.

Gymshark Founder Lewis Morgan invests in AYBL Women’s gymwear brand, AYBL, is set to accelerate its expansion plans following a significant investment from Gymshark Founder, Lewis Morgan. AYBL was founded in 2018 by brothers Reiss and Kristian Edgerton from the living room of their Bromsgrove home. It now ships over 400,000 orders to more than 160 countries each year, establishing a particularly strong presence in the USA, UK, Germany, Ireland, Netherlands and France. The venture marks the evolution of the AYBL Group, valued at £50m, which brings together AYBL and women’s fashion brand, Because of Alice (BOA). Morgan will take the role of Executive Chairman at the group, with aims to grow the business into the biggest e-commerce group in the UK. In his new position, Morgan will oversee company strategy and work closely with the Edgerton brothers, who will take the position of joint CEOs. Lewis Morgan said: “I’ve had a passion for the athleisure industry ever since I co-founded Gymshark in 2012. After selling my remaining stake in Gymshark last year, I’ve been eager to step back into the industry, so I’m excited to have the opportunity to play a part in the continued growth of the AYBL Group.”

(L-R) Reiss Edgerton, Lewis Morgan and Kristian Edgerton of AYBL Group

December/January 2022

NEWS

Zilch becomes fastest European 'double unicorn' following $110m Series C funding round Philip Belamant Founder & CEO, Zilch

COMMENT

NEVER, EVER, TELL CUSTOMERS THAT YOU ARE MARKET LEADER (EVEN IF YOU ARE ONE) Raw research is one of the most powerful weapons in a marketer’s armoury as it is a pulse taker, a barometer of what people think about a specific topic. In anticipation of penning this article, I wanted to see how statistics could be used to support my view that any business Paul MacKenzie-Cummins describing itself as a Managing Director, Clearly ‘market leader’ is putting their organisation in serious jeopardy. Here is what I did.

Zilch, the London-based fintech, has announced that it has closed a $110m Series C funding round, making it the fastest company in Europe to reach 'double unicorn' status, with a valuation of over $2bn. This round was led by Ventura Capital and Gauss Ventures with numerous other notable investors. Existing investors include the likes of Goldman Sachs. Following the success of its initial Series A funding round in September 2020, Zilch has leapfrogged other high-flying scale-ups to become a double unicorn in just 14 months. Philip Belamant, Founder and CEO, said: “It’s really been phenomenal to watch customers adopt our product at such significant speed. Our entire 200+ team is truly humbled and grateful for the opportunity to serve millions of customers daily and rest assured we are all working around the clock to delight them. We have been fortunate to experience such phenomenal growth over the last 14 months and today we are celebrating becoming one of Europe’s fastest unicorns. "Our unique business model, which is built on regulation and places consumer financial wellness at the heart of our operations, has created a revolution in the BNPL industry. We’re excited about this major milestone, but realise that the job is nowhere near done, and this really only marks the beginning of our growth journey as we aim to become the best way for consumers to pay for anything, anywhere."

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Using a social listening platform that enables us to monitor the frequency at which companies and keywords are mentioned online, I tracked the words ‘market leader’ in a business context over the course of three months. The results were a staggering 13,000 mentions. That is 13,000 organisations who have described themselves as market leaders on their website, social media channels, blogs, or media commentaries since August this year alone. Now, I am not an economist, but I will hazard a guess that there are fewer than 13,000 sectors in the economy. So how is it possible then, to have this many industry leaders? The answer is that it’s not. What is going on? Competition between businesses across all sectors has never been as intense and fiercely fought as it is right now. While the coronavirus put paid to many growth plans during 2020, the last six months have seen a significant ramping up of PR and marketing activity among businesses. There are two clear reasons for this. First, is the sense of urgency to get their strategic plans back on track. Second, is the need to steal a march over the competition and consolidate their market positioning as the new post-pandemic economy begins to take shape. But in their fervour to do so, many businesses are dangerously getting a little too carried away with themselves when it comes to their messaging. The job of any marketer or PR agency is to raise the profile of the business they represent and elevate its position as a go-to in their space. Businesses still believe that positioning their organisation as a ‘market leader’ provides them with a perceived elevated status that is more persuasive and compelling as a sales tactic. It is not. If you need guidance on developing your postpandemic communications strategy, get in touch.

T: 0333 207 9477

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COVER STORY

Photo's courtesy of ©Jake Baggaley

HOLLY TUCKER MBE

‘Business is far more powerful than any government could be’ Holly Tucker MBE talks openly about growing one of the UK’s leading retailers and why we all need to play our part in fixing the planet. View the interview here Holly Tucker MBE is a British entrepreneur, Sunday Times Bestselling author and cofounder of notonthehighstreet and Holly & Co. In this interview with Business Leader, Holly talks candidly about what it was like building one of the UK’s most recognisable retail businesses, and gives her views on building a personal brand, leadership, and life. HOLLY, YOU LIVED ABROAD WHEN GROWING UP – THAT MUST HAVE HELPED YOU TO BUILD CHARACTER? Yes, it did because at the age of seven we move to Holland as a family, and I lived in Antwerp (Belgium) and Amsterdam (The Netherlands). It was a colourful childhood, and all my friends were from different countries, and I’m sure I learnt some fundamental life skills because of this experience. YOU THEN WORKED IN ADVERTISING FOR YOUR FIRST JOB ROLES BEFORE SETTING UP YOUR OWN E-COMMERCE BUSINESS – NOTONTHEHIGHSTREET. WHAT MADE YOU WANT TO DO THIS AS E-COMMERCE WAS IN ITS INFANCY, AND THERE WASN’T AN ONLINE MARKETPLACE LIKE THIS IN EXISTENCE? There is a notion that naivety is a bad thing, but that’s not always the case, because it means that you run the business with no preconceptions to how it should look or appear. It was like this with notonthehighstreet and we knew there was a gap in the market and we just went for it.

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WHAT INSPIRED THE IDEA IN THE FIRST PLACE? When we built the business, it was one of the first online marketplaces in the world. This was a time when Amazon sold books and eBay sold socks. I was running fairs and physical markets at the time, and I could see how the internet could act like another town hall roof and give these businesses a new marketplace. I started to curate small businesses that were looking to meet discerning customers but were being kicked off the high street; and it just felt very, very easy to do. It felt like this should have been invented before. The fundamental idea is to give people the ability to be able to shop with fantastic small businesses. That naivety led us to having quite a rollercoaster ride in that first year, because we were trying to find people to build the technology and create this online marketplace. YOU MUST HAVE MADE SOME MISTAKES ALONG THE WAY? I clearly remember the days before we launched the business. The concept of the single basket checkout where you could check out with multiple businesses hadn't been invented. So that wasn't even in existence. I think eBay were about to launch it in America, but it hadn’t hit the market. We were telling the press that we were investing in this technology, but it was all completely new, and I remember launching the shopping site with no checkout on the first day. And yet we were in the Daily Mail with so much publicity. A week later though we built the technology that eBay hadn't even launched in America and again, it was the understanding of what the consumer needed and what the small business required that inspired us. Cont. 

COVER STORY HOW DID YOU KNOW NOT TO GIVE UP ON THIS IDEA DESPITE THE CHALLENGES AND THE UNCERTAINTY OF GOING INTO AN UNTESTED MARKET? I loved what I was doing, and I was a consumer too. If you don’t have these two things, it’s always going to be very hard to build a successful business. We just had to keep going and maybe it was that naivety again, but I wasn’t prepared to ever give up. I compare running a business to raising a child, and I would never give up on either. For us, we knew we were building an entire small business community that was desperately required and that we were changing the landscape for the better. I think that keeps you going as well. YOU HAVE BEEN CRITICAL OF THE FUNDING LANDSCAPE AND HOW IT IS NOT DIVERSE ENOUGH. CAN YOU TELL US ABOUT YOUR EXPERIENCE OF RAISING MONEY WHEN SCALING NOTONTHEHIGHSTREET? It was 16 years ago that we started raising money and I think still only 1% of venture capital money goes to women. If this is the change that people keep talking about, then goodness knows what it was really like when we were looking for funding. This is a really important point to make because there is still so much positive change that needs to happen. It certainly was an incredible journey being two women back in 2006, raising money for a shopping site because we had comments such as ‘my wife does the shopping’ and ‘I don't believe we need a crafts business on the internet’. What they didn't realise was we were going to change the face of retailing in the UK.

AND WHAT ABOUT THE ACTUAL PROCESS OF RAISING MONEY – WHAT ADVICE WOULD YOU GIVE TO BUSINESS LEADERS? I would like to put raising money on that list of stressful things alongside death, marriage, divorce or moving house. It takes it out of you, and my main advice is to seek advice and have people in your business who know the space. It has changed now for the better in that there is much more information and resources, because when I first went to my bank manager, he didn’t know what an entrepreneur was. But this change is also a challenge because there are so many funding options available too – it can be hard to navigate. I raised six rounds of funding at notonthehighstreet but I’ll be going down a different route with my current business Holly & Co.

"YOUR JOB IS TO BE THE CAPTAIN OF THE SHIP, LOOKING AT THE HORIZONS AND HAVING THE BRAVERY TO DIRECT PEOPLE INTO THE NEW LANDS THAT YOU'RE GOING TO DISCOVER. TO HELP YOU TO DO THIS, YOU MUST BRING ON PHENOMENAL PEOPLE BECAUSE YOU CAN’T DO THIS ON YOUR OWN."

I am a fan of crowdfunding because I love the idea of the community it creates and how it empowers people and investors. FROM YOUR EXPERIENCE OF GROWING THAT BUSINESS, WHAT ARE YOUR THOUGHTS ON BUILDING A LEADERSHIP TEAM AND WHEN THE FOUNDER NEEDS TO RELINQUISH CONTROL AS A BUSINESS SCALES? You can’t build your vision or the unthinkable by yourself. What I have realised over the last 20 years, is that your place is best held at the helm. You are then freed up for most of the day-to-day operations, except for the fundamentals, such as hiring, strategy and marketing. Your job is to be the captain of the ship, looking at the horizons and having the bravery to direct people into the new lands that you're going to discover. To help you to do this, you must bring on phenomenal people because you can’t do this on your own. My advice is to be aware of plausible idiots that are looking to bulk up their credentials and CV by having said they’ve worked in an entrepreneurial environment. What you need is people who are willing to stay with you on your journey and who are vested in the passion and mission of the business. Finally, I would say that ‘It's better to have a hole than an asshole’. This is a brilliant saying, because if you hire the wrong person, it might take a year to realise this and have the courage to remove them from the business and in this time, they will have caused you lots of stress.

December/January 2022

HOLLY TUCKER MBE WHEN GROWING A BUSINESS, HOW IMPORTANT IS PERSONAL BRAND AND WHAT ADVICE CAN YOU GIVE TO LEADERS AROUND THIS? In the future, the personalities behind a brand are going to be paramount. I think that we are already swamped by brands vying for our attention. Certainly, when you consider climate change and the situation we're living in today, I think that customers need to connect with people, and they need to understand that person behind the brand. I think if you're a founder or an entrepreneur, and you haven't done this, this is one of the biggest opportunities for your company. YOU MENTIONED CLIMATE CHANGE; LEADERS SURELY MUST BE CAREFUL OF ENSURING THEY DON’T JUST PAY LIP SERVICE TO IMPORTANT ISSUES? This is where honesty comes in, because we are only human beings and there is only so many hours in the day. It’s important to lay out what you're going to do, what your passions are, what good you're going to do for the world, for your consumers, for society, for our community, and make it clear that you're unable to do everything. Be authentic, honest, and humble. YOU NOW RUN HOLLY & CO AND ADVISE LOTS OF ASPIRING ENTREPRENEURS. WHAT ARE THE KEY MARKETING CHANNELS YOU ARE LOOKING TO UTILISE TO GROW THIS BUSINESS? I've gone back to basics with Holly & Co. We built the business through Instagram, and social media is important. Creating original content for our website is a key strategy too. We always ask ourselves, what would we do if Instagram went down tomorrow? What would our strategy be then? I also approach marketing from the perspective that having 1,000 true followers or 1,000 true fans or 1,000 true customers is better than having 100,000 people passing you by. For us, it's about the emotional connection we have with our customers too, because we make 33,000 decisions every single day as humans and I'm looking to build ways that we get truly into the psyche of our consumer and that just takes time because there are no silver bullets.

"I BELIEVE WE ALL HAVE THE POWER TO BUILD OUR OWN FUTURES AND WE NEED TO TAKE RESPONSIBILITY FOR WHAT IS HAPPENING IN THE WORLD."

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Fundamentally, it’s important to embrace all marketing channels and I also believe in the classics. I would also question whether social media will be here in 40 years and what it will look like if it is? YOU'RE A HAPPY, POSITIVE, AND ENTHUSIASTIC PERSON – WHAT MAKES YOU ANGRY AND UPSET? Being able to see the future and not being able to articulate it, is something that is more of a frustration for me. People who say ‘it is what it is’ do make me frustrated too because I believe we all have the power to build our own futures and we need to take responsibility for what is happening in the world; and right the wrongs that we want too. Business is far more powerful than any government could ever be. And I do believe that it is time for businesses really to put some of our issues at the forefront of their strategies, so we need to do that and not accept what is happening. MOVING ONTO ANOTHER SUBJECT – PAST RECESSIONS HAVE INSPIRED LOTS OF PEOPLE TO SET UP NEW BUSINESSES. DO YOU SEE THAT HAPPENING AGAIN? Yes, I do. 400,000 businesses were started in June this year, which is a record-breaking amount. A survey I read also stated that 39% of people in current jobs are going to quit within the next 12 months, which is not great for an employer, but suggests a start of a business revolution is happening. WHAT ADVICE WOULD YOU GIVE TO SOMEBODY LOOKING TO START A BUSINESS? There is never a good time to do it and you just must go for it. It’s all encompassing and it’s a phenomenon. You can be clever about it though – can you cut down your hours in your current role or could you work part-time initially? A FINAL THOUGHT HOLLY? Remember that we only have 29,000 days on this planet. I worked out when I was 40, I had 14,000 days left. This isn’t a dress rehearsal. It's our duty to go after whatever we visualise.

AGENDA

Why could the global labour shortages be a good thing? Media giant Andrew Neil recently returned to Question Time as a panellist and went on to describe the current global labour shortage as 'great'. Business Leader looks deeper at Neil’s comments, and explores the skills shortage and why it might be a positive thing.

With global lockdowns causing economic growth to slow, leading to job losses, the pandemic has received much of the blame for the global labour shortage. In the UK, the loss of EU workers caused by Brexit is another reason that is often cited for labour shortages, especially for the dwindling number of HGV drivers. “Brexit, I think, has caused problems in Britain because over a million EU citizens left with Covid-19, and it’s tougher for them now to get back in,” said Andrew Neil in his recent appearance on BBC's Question Time. But he later added: “Even without Brexit, we’d have major problems. “There is a global labour shortage developing now, for demographic reasons, it’s for changes in population, changes in work patterns and so on.”

“Germany has said it needed 400,000 workers immediately. The last time I checked they were still in the EU. There is a global labour shortage everywhere,” concluded Neil.

"WHILST BREXIT AND THE PANDEMIC HAVE CLEARLY PLAYED BIG ROLES IN STAFF SHORTAGES THROUGHOUT THE UK, WE NEED TO BE CAREFUL NOT TO SOLELY LAY THE BLAME AT THEIR SHOES AS THE OVERALL PICTURE FOR THE LABOUR SHORTAGES IS FAR MORE COMPLEX."

Dr. Maria Paola Rana

However, according to Professor John Bryson, the Chair in Enterprise and Economic Geography at the University of Birmingham: “It is too simple to state that there is a global labour shortage. “There is a paradox here as global unemployment remains high, but this is combined with high job vacancy rates. There are multiple reasons for this. “For example, in the West Midlands, for lower-skilled occupations there are concentrations of unemployment in some areas and then a very different geography of hard-to-fill vacancies. There is a mismatch between demand and supply. “The problem is linked to a mismatch between the structure of the local housing market and employment, combined with gaps in public transport, which make it

December/January 2022

SKILLS SHORTAGE

impossible for those unemployed to take some of these jobs. “It is important to remember that hardto-fill vacancies are a long-term problem, and it is one that I have described as representing a form of erosion of local economies from below. “Too often, the explanation for firms closing or downsizing is based on globalisation, but for many firms it may be based on an inability to recruit the right people with the right skill sets. This is not about qualifications, but people with the required skills defined as being able to complete required tasks.” NOT IMPACTING EVERY SECTOR Dr. Maria Paola Rana, an economic expert at the University of Salford Business School, also points out that the global labour shortage is not affecting every sector. “Let’s be clear, the labour shortage is not affecting all sectors and a number of sectors (e.g. professional services, programmers, web developers, etc) have been facing labour shortages even before the pandemic, due to labour market mismatch and structural changes in the economy,” says Maria.

“The pandemic has exacerbated the issue, especially in those industries that have been hardest hit by Covid-19 (i.e. hospitality and retail) and/or are known for low wages and poor working conditions (hospitality, retail, warehouse, transport/ logistics). “The increase in demand due to changes in consumers’ tastes and the reopening of the economy, together with the decrease in supply of labour from foreign-born workers returning to their countries amid the pandemic and not willing or able to return or be replaced due to postBrexit immigration rules, are factors that combined have caused the labour shortage currently experienced by the UK. “Another reason for the labour shortage is due to workers shifting to different sectors perceived as more secure in the long term, more flexible and offering better working conditions. “So, whilst Brexit and the pandemic have clearly played big roles in staff shortages throughout the UK, we need to be careful not to solely lay the blame at their shoes as the overall picture for the labour shortages is far more complex.”

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THE GLOBAL LABOUR SHORTAGE WILL DRIVE WAGES UP Perhaps the most remarkable thing that Andrew Neil said when referring to the labour shortage in his recent Question Time appearance was: “I think it’s great. Because with shortage and scarcity, wages are starting to rise again.” Whilst on the show, Neil also highlighted how labour issues in Florida have led to McDonald’s offering would-be workers $50 just to reach the interview stage, and went on to explain how wages stagnated in the first two decades of the 21st century and added that people with assets saw their wealth continue to rise. We asked Professor John Bryson and Dr. Maria Paola Rana whether Andrew Neil was correct in saying that the global labour shortage will drive wages up. John said: “Yes and no. In some sectors, there will be an increase in wages, but also in benefits. For example, a four-day working week, or new forms of flexible working.

Cont. 

FEATURE “It is important to remember that one outcome of the Black Death (1346-53) was that the reductions in the labour supply led to an increase in working conditions, but also technological innovation. “Thus, initially there might be some increase in salaries in some sectors experiencing hard to fill vacancies, but this would be followed by productivity enhancement resulting from process and technological innovation. “For example, a dramatic increase in the national minimum wage could potentially end up producing more unemployment as employers substituted workers with technology.”

SKILLS SHORTAGE working conditions, so working conditions will also need to be improved. And yes, of course this is good news.” HOW CAN BUSINESSES ADDRESS THE LABOUR SHORTAGE IN THE UK? Whilst the global labour shortage might prove to be beneficial for those who work in certain sectors and have assets, empty shelves and a shortage of HGV drivers are two problems that we have recently experienced in the UK. The Government has tried to address them by issuing temporary visas for HGV drivers and poultry workers.

“According to job recruitment website Indeed, the average pay rate in the UK has increased only by 1.3%, and according to the BoE (Bank of England) this figure is approximately 2%. On the other hand, the BoE has forecasted inflation to increase above 4% by the end of 2021 (well above the 2% target and well above the 1.3% increase in pay rate). “Additionally, the rise in wages in itself is not sufficient to stimulate the supply of labour in those sectors known for poor

Professor John Bryson says: "There is no long-term solution as the demand for skills in the labour market continually alters. “One implication is the need for a focus on lifelong learning to ensure that individuals maintain skills that are needed in the labour market. Another implication is to ensure that the schools focus on core transferable skills as well as technical/ subject knowledge.” “A core skill now is the ability to play with, and understand, data. One question to consider is: who should be responsible for developing a solution? The answer is not just government. Companies must invest in their current employees, but also engage with schools, FE colleges and universities.

Dr. Maria Paola Rana said: “There is no doubt that given the current shortage of labour supply in a number of sectors, and given the increase in demand, the wages have increased. “However, it is also true that the increase in wages are transferred to consumers, causing an increase in the general level of prices, with essentially no increase (or even decrease) in real wages and purchasing power for the majority of workers.

relevant benefits to their earnings will improve staff retention and attraction.”

“Migration is part of the solution, but only one part as migration is based on exploiting investments made by other countries in their citizens.

David McCormack CEO Hive360

However, David McCormack, CEO of Birmingham-based HR consultancy Hive360, says: “For employers in the agriculture, logistics, retail, hospitality, and construction sectors, the way to tackle the skills shortage is to make some simple changes to how they approach what they offer workers and how, which won’t impact costs or operational resources.” “Despite the devastating news, businesses are not to be given the chance of employing workers from overseas given temporary work visas to fill the skills gap, a change in thinking around how they attract and reward workers will work because adding

“One of the reasons why there is a shortage of truck drivers is that the average wage for a truck driver is only £28,000 a year,” added Andrew Neil whilst on Question Time. “That’s just about the average in earnings at the moment. “That’s not a lot of money for the job it is, long hours, takes you away from home, you don’t see your family and so on. We need to start paying people better, bigger wages!” However, Dr. Maria Paola Rana believes that more will be needed to address the labour shortages in certain sectors. “In a tight labour market and in the short term, just increasing wages and working conditions will not fix the problem. A lessening of post-Brexit immigration rules to increase the labour supply from overseas workers is required to support the hospitality, logistics and food processing sectors. “The shortage of labour is affecting the recovery of the UK economy and there is no more time to waste.” From better wages and employee benefits to lifelong education, there appears to be a lot of potential remedies for addressing the ongoing shortage of labour. But for those who are employed in sectors where a lack of staff means better wages and benefits, will they be wishing for the deficit to be addressed anytime soon? 

December/January 2022

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OPINION

Where did it all go wrong for Chinese property developer Evergrande? Salford Business School’s Dr. Maria Paola Rana shares her thoughts on the current Evergrande situation, and explains what went wrong for one of China’s biggest property developers. Founded in 1996 by Hui Ka Yan in the province of Guangzhou, Evergrande is one of China’s largest real estate developers, employing more than 200,000 employees (and indirectly sustaining more than three million jobs in related sectors), owning over 1,300 residential projects across more than 280 cities in China.

Despite being mainly known for its core activity within the residential property sector, the company’s diversified interests expand to include, among others: investment in electric cars, insurance, dairy products, beverages, a football club, theme parks, and much more. As the Chinese economy and property market boomed over the last 30 years, so did Evergrande, by playing a significant role in the transformation of many rural areas in modern cities. STRUGGLING TO PAY ITS EMPLOYEES Having funded its expansion and growth by borrowing heavily, the property giant, with more than $300bn in outstanding debt, is now finding it difficult to pay its employees, suppliers, contractors, and investors. Additionally, more than 1.6 million flats are still unfinished and yet to be delivered to home buyers that have pre-paid. After missing a key payment to foreign investors on the 23rd, 29th of September and 11th October, and warning with a statement made in September that: “There is no guarantee that the group will be able to meet its financial obligations.” It is now understood that Evergrande has made a last minute payment of $83.5m and an additional one of $47.5m, just in time to avoid default before the expiration of the 30 day-grace period. The late payments seem to corroborate the hypothesis that even if Evergrande collapses, which according to some analysts is now inevitable, the collapse will be a controlled one so that consequences for the Chinese estate market and economy (and beyond) can be restrained. SO WHAT WENT WRONG? How did Evergrande reach this point? The company has seen revenue from home sales decreasing (especially in smaller cities), and it has significantly suffered from the credit crunch due to the new regulations introduced by the Chinese Government. In fact, in the attempt to control the housing boom, tackle inequality and make real estate more affordable, and famously stating that: ‘Housing should be for living in, not for speculation’, Beijing has introduced the, socalled, ‘Three Red Lines’ rule. According to the rule, in order to access new credit, a property firm must satisfy the following three criteria: 1) The company’s proportion of assets financed via debt must not exceed 70%. 2) The company’s net debt cannot be more than its shareholders’ funds. 3) The company

December/January 2022

EVERGRANDE GROUP

must have an amount of cash (or cash equivalent) to be able to pay all its short-term debt. More specifically, if a company satisfies all of these three criteria, then the acceptable growth of debt is 15%. If only two criteria are met, then the acceptable growth of debt is 10%; if only one of the criteria is met, the permitted growth of debt is 5%; however if none of the criteria are met (which is Evergrande’s case), the permitted growth of debt is 0%. Differently from some of its competitors, Evergrande failed to address these stricter financial regulations, hence the impossibility to access new loans, proving its practice of financing expansion by debt unsustainable. IT’S NOT JUST EVERGRANDE Evergrande is not on its own, the tighter financial regulations and decrease in home sales (also due to Evergrande’s crisis) have affected other Chinese property developers, which have been recently downgraded by rating agencies such as Standard & Poor’s (S&P). These companies are the following: Fantasia, China Properties Group, Modern Land, and Sinic Holdings.

"THE LATE PAYMENTS SEEM TO CORROBORATE THE HYPOTHESIS THAT EVEN IF EVERGRANDE COLLAPSES, WHICH ACCORDING TO SOME ANALYSTS IS NOW INEVITABLE, THE COLLAPSE WILL BE A CONTROLLED ONE."

Since the housing market and related industries account for approximately 30% of China’s GDP, the collapse of a giant such as Evergrande would clearly impact the economic growth of China, however it is reasonable to assume that the collapse would be controlled and damage limited. WOULD THE WORLD ECONOMY FEEL THE COLLAPSE OF EVERGRANDE? Well, the short answer is yes. If China’s economy slows down, this will be felt by the rest of the world, considering the fact that China’s is the second largest economy in the world, and the important role it plays in international trade. However, it is also true that the pandemic has (or at least should have) prepared other economies to rely less on China (remember the initial outbreak in February 2020?). WILL THE WORLD ECONOMY FEEL THE COLLAPSE OF EVERGRANDE TO THE SAME EXTENT AS LEHMAN BROTHERS’ COLLAPSE IN 2008? The short answer, at this time, is no. Even if the transmission mechanism via international trade is still relevant, since China is a key trade partner for major economies (as the US in 2008), it is also true that the transmission mechanism via financial markets is less likely to happen considering the fact that foreign investors are not exposed to Chinese financial markets as they were to that of the US, and considering the fact that the Chinese financial system is much more controlled than the US financial market in 2008. Additionally, and this is a crucial difference, the debts of Chinese property developers are not related to financial instruments (i.e. they are not linked to derivatives, which are financial instruments whose value depends on underlying assets such as, for example, bonds). The problem with Lehman’s debt in 2008 was that, due to the complexity of financial instruments and lack of regulations, it was not clear where the toxic bonds were. 

Dr Maria Paola Rana

Evergrande sells total stake in streaming service HengTen for £200m The struggling Chinese real estate firm Evergrande has suffered its latest crisis – as it has had to sell its entire stake in streaming service HengTen for £200m. The Shenzen-based company was forced to make the sale as it continues to struggle make payments on its series of loans – and tackle its mounting debt of around £230bn. The sale represents a loss of more than $1bn from selling the

remaining 18% in the film and TV streaming firm – described as ‘The Netflix of China’. They had previously sold a 5.7% stake in the company worth around £110m, and a further 7% to Chinese tech giant Tencent in July for £200m. Evergrande announced that 20% of the deal consideration would be paid within five days of the conclusion of the deal, while the remainder would be stretched out across a two month period.

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FEATURE

HAS THE 'JUST IN TIME' ECONOMY HAD ITS DAY? We live in a world where almost anything can be ordered to your front door at the touch of your fingertips and delivered the very next day. A key methodology that companies have employed to meet consumer demands over the years, and is still used to meet these modern requirements is 'Just in Time' manufacturing. However, with supply shortages, dwindling HGV driver numbers, the pandemic and Brexit, there are real fears that the Just in Time economy has had its day. Business Leader investigates. WHAT IS JUST IN TIME (JIT) MANUFACTURING? Lean manufacturing, or Just in Time (JIT) manufacturing as it’s also known, is an inventory management system where goods are produced as they are required and is designed to increase efficiency and decrease waste. Under the system, a company only receives the raw materials they need as they are required for the production process, meaning lower inventory costs. The system was adopted by Japanese car manufacturer Toyota in the 1970s, so it is also referred to as the Toyota Production System (TPS). The success of Just in Time manufacturing depends on steady production, high-quality workmanship and no machine breakdowns.

Reliable suppliers are also essential for ensuring the materials used in the production of goods are received in time for production schedules. Otherwise, there is a risk of companies being unable to create their products. If suppliers are unreliable, a company might also have to order more materials to ensure they are available when they need them, but this goes against Just in Time manufacturing principles and means inventory costs are increased. IS IT THE END OF JUST IN TIME? In a survey by the Road Haulage Association (RHA), a private company dedicated to the interests of the road haulage industry, they estimate that the UK is currently short of more than 100,000 qualified HGV drivers. According to the Office for National Statistics (ONS), from June 2017 to June 2021, the number of HGV drivers in the UK also dropped by 53,000, from 321,000 drivers to 268,000. As a result of the HGV driver deficit, there have been widespread reports of supply shortages, including food and petrol. This raises important questions concerning whether the days of the Just in Time economy are numbered. However, Pol Sweeney, Vice President Sales EMEA Fleet at Descartes Systems, believes that with more flexible and responsive supply chains, the Just in Time economy can continue. “The fundamental drivers that created the Just in Time economy have not gone away,” says Pol. “If anything, the recent combined effects of Brexit and Covid-19 have heightened the need for flexible, dynamic, and highly responsive supply chains.

Pol Sweeney Vice President Sales EMEA Fleet Descartes Systems

“Increasing digitalisation and supply chain optimisation through the use of AI systems and techniques will be required to provide the improved responsiveness and the increased efficiency required to deal with the recent disruptions and unpredictability. “When you are dealing with a scarce, and/or expensive resource such as HGV drivers, the answer is to use them efficiently and effectively. The efficiency

December/January 2022

JUST IN TIME

gains can be baked in so that the benefit is longstanding even when, or if, things return to less disruptive conditions.” Brexit and the pandemic are regularly cited for the dwindling HGV driver numbers and the resulting supply shortages here in the UK, but the pandemic’s wrath has been felt on supply chains worldwide.

holdups, hence stalling any potential growth. Added to this we are seeing rising inflation, labour costs driving upwards and a tightening of the labour market all restricting any business growth.”

However, Douglas Grant, Director of Conister, which is part of AIM-listed Manx Financial Group, believes that the Just in Time economy is likely to change in response to the ongoing supply chain issues.

However, Geoff Burch, renowned business coach, speaker and consultant, disagrees. “If the only tool you have is a hammer, then every problem is a nail, and with Just in Time we are getting well hammered,” says Burch.

“The Just in Time economy hasn’t had its day, and in fact is likely to become more fine-tuned in response to the supply chain issues that are currently impacting the sector,” says Douglas. “However, this increased focus on business supply chains in the UK has brought to light some of the growing pressures many of our SMEs are facing on a day-to-day basis.

Douglas Grant Director Conister

“At Conister, we currently have several instances involving significant advances across many sectors, which are unable to proceed as a result of supply chain

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“In its most sensible form it has been with us for centuries, and in its raw form it dealt most excellently with perishability. You wanted a tomato, you went and picked one. An egg? Well, just lift the nearest chicken. Milk? Grab a passing cow.” Cont. 

FEATURE

“Technology is also perishable. Whilst filming a documentary for the BBC on cyber waste, I visited a technology scrapyard and was shocked by what I found. "Large companies would give new recruits a shiny new laptop and had a copious stock of them, but after a year or so…well, who wants a year-old laptop? They were in the scrapheap still in unopened boxes. “Just in Time says, go and buy the tech when and where you need it.” Geoff’s comments are particularly interesting because Just in Time manufacturing is supposed to reduce waste, but in tech, a sector where products have a notoriously short lifespan, it might be having the opposite effect. In a survey from Lloyds Bank published in 2020, almost two thirds of small and medium-sized business owners want to improve their environmental sustainability. So, as sustainability appears increasingly on company agendas, it will be interesting to see whether Just in Time manufacturing is consistent with them. SHOULD WE MOVE AWAY FROM JUST IN TIME MANUFACTURING? Whilst there is a debate regarding whether the Just in Time economy has had its day, there is no denying that we are currently experiencing major supply shortages across the world. “Indeed only in August, the Confederation of British Industry (CBI) suggested that the UK’s economy had been plunged into a supply chain crisis, with major retailers’

JUST IN TIME

stock levels at their lowest since 1983,” continues Douglas. “This comes as a result of worker shortages and transport disruption caused by Covid, Brexit and the Suez Canal blockage in March.”

"WHATEVER PRODUCT WE MAKE, WHILST JUST IN TIME WAS CLEVER, INFLATION, LOGISTICS AND DEMAND MAY SUGGEST JUST IN TIME IS ACTUALLY OUT OF TIME." Geoff Burch

As a result of the supply shortages, the construction industry could be set to experience stunted growth in the remainder of 2021 and 2022 too. According to the Construction Products Association’s (CPA) Construction Industry Forecasts for Autumn 2021, they expect construction output growth to rise for 2021 from 13.7% to 14.3%, but growth for 2022 was expected to drop from 6.3% to 4.8%. The key factor cited in this revision was that supply chain constraints are expected to hinder growth for the rest of 2021 and in 2022. So, could Just in Time manufacturing be playing a part in the supply shortages? Under Just in Time, suppliers are required to deliver small batches of materials and parts more frequently to prevent the need for factories to carry excess raw materials. It also balances and coordinates

its production lines to minimise its work in process, and ships finished goods to customers frequently in small batches. However, since the majority of the goods we consume in developed countries are produced halfway around the world, we’re not only reliant on the capacity of factories, but also on a giant global transportation and logistics network to provide us with the things we need in a timely way. So, should we move away from this system? Geoff Burch seems to think so. “I consulted with a global technology manufacturer who ran their own world on Just in Time,” continues Geoff. “The heart of their product was a computer that cost a fortune, so having stocks of those lying about made no sense, but the cases were held together with cheap plastic moulding and 27 small screws, all delivered just in time. “If there were 26 screws, the line stopped. We put huge drums full of screws and mouldings up and down the line – not Just in Time but a low cost and very satisfactory fix. “Now we really are in the eye of the storm, however; we’re seeing car production halted for a few quids worth of missing chips, ports clogged and shortages in the shops. I went to buy a German bike and enquired when I might get one. The answer I received was no stock until 2023. “Whatever product we make, whilst Just in Time was clever, inflation, logistics and demand may suggest Just in Time is actually out of time.” 

December/January 2022

INTERVIEW

JASON SMALL

Simply Different. Simply Unlimited

support as you require. Unlike most, we don’t charge our support per user, as we don’t believe in penalising businesses for growing.

Jason Small Director & Co-Founder, WestSpring IT

Business Leader spoke to Jason Small, who is Director and CoFounder of WestSpring IT, about the history of the business and its plans for the future. WHAT MADE YOU START WESTSPRING? Phil (Co-Founder) and I had both been experiencing the same frustration working for Managed Service Providers, that it was profit over people. For a service-led industry, the service being delivered was (and still can be) below par. Many providers were working very much on the basis of if something breaks, we’ll fix it. Or you have a problem that needs us to come out to fix, that will cost more. Or if you’ve already used your support credits this month, us fixing that is going to be an additional cost. We saw a gap in the market to provide IT support with a difference, where great service and a first-class client experience is at the core. In order to do this, we knew we had to use an unlimited model, and that’s when WestSpring was born.

WHY DO YOU OFFER UNLIMITED WHEN SO MANY OTHERS DON’T? Put simply, we want to act as your in-house IT team, and in order to do so, we can’t have any restraints. With no limit on how much time we can spend going to visit clients, especially in the early stages, we can really get a good understanding of your business and how you work. This translates into providing the most suitable and effective IT solutions. Every business is different, and we don’t believe in a 'one size fits all'. Whilst so many issues can be resolved remotely, sometimes it’s most effective to come onsite and fix it in person. Take a printer problem, for example, the time it takes for a client to keep testing the printer with every tweak we make can be dramatically reduced if we’re onsite doing it for you. With more traditional support models where support is paid for by the hour or onsite call outs are charged as extra, people often put off getting things fixed.

WHAT SETS WESTSPRING APART FROM THE COMPETITION? Apart from our unlimited model, it’s got to be the people. When building our team we put a great importance on personality as well as skillset, in order to maintain the WestSpring culture. Our team aren’t your typical IT team. We are real people – approachable, friendly and know how to translate techy jargon into language that makes sense to you – without being patronising. We spend a great deal of time getting to know each and every client from the moment we onboard them. It’s common sense to us, in order to be able to truly look after your business, we need to take the time to get to know how you work. But it doesn’t stop there; we regularly visit our clients, whether to discuss an upcoming IT project or (usually) just for a general catch up. Building great relationships is why we have a 100% client retention rate. With IT playing such a pivotal role in businesses nowadays, we understand the importance in delivering a reliable, approachable, first-class service. 

SO WHAT DOES YOUR UNLIMITED SUPPORT MODEL LOOK LIKE? It really is as simple as it sounds. We charge clients one flat monthly fee and we provide as much over-the-phone or onsite

For more information or to speak to a member of the team, call 0117 403 4455 or email: hello@westspring-it.co.uk | www.westspring-it.co.uk Business Leader - Inspire • Inform • Connect

CEO IN FOCUS

CEO IN FOCUS:

Anthony Matchett is the CEO of AIM-listed and iconic digital music service Napster Group, and Hipgnosis Songs (formerly MelodyVR). Matchett became CEO of Napster after he bought the firm last year. A new Napster platform will be launched in early 2022. He spoke to Business Leader about taking over the original disruptive force in the music industry, what it means to run a globally recognised brand, how VR has influenced music, and what future trends are set to dominate the industry.

WHAT ARE YOUR PLANS AS THE NEW CEO OF NAPSTER GROUP? Our vision for Napster is to create the music platform of the future, serving music fans all over the world with the broadest range of music content, available in multiple formats and across multiple connected devices. Our ability to offer high-definition music streaming, curated radio and playlisting, short form video series, long-form video such as documentaries and films, as

well as exclusive, immersive audio-visual experiences and live events will see a new era in music content consumption. CAN YOU TELL US ABOUT YOUR CAREER PRIOR TO NAPSTER GROUP? I studied audio engineering after leaving school, and then worked as a recording engineer for many years. I founded MelodyVR in 2014, after seeing early virtual reality (VR) technology whilst I was working with games industry clients. Following a

period of development, we launched the MelodyVR app in 2018 and since then have had a huge number of artists on the platform, from Liam Gallagher to John Legend to Kesha, and lots more. We have hundreds of artists from all genres. The basic vision has always been to connect artists and fans in new ways. For MelodyVR, this meant putting fans virtually ‘on the stage’ via our VR app. In late 2020, MelodyVR acquired Napster and its assets.

December/January 2022

ANTHONY MATCHETT

We started to build and create our own technology and suite of cameras to capture live shows and released the MelodyVR app in 2018, just as VR devices started to become higher quality and more costeffective. Later, we launched the MelodyVR app on iPhone and Android, as we knew that mobile users would also enjoy our content. Next, we’ll be relaunching the Napster business and a new suite of Napster platforms and apps early next year.

"WE THINK THERE IS A GREAT OPPORTUNITY TO RELAUNCH NAPSTER AS A CUTTING-EDGE, LEGAL MUSIC SERVICE, AND TO CATER TO FANS’ NEEDS THAT AREN’T CURRENTLY MET BY OTHER PLAYERS IN THE SPACE." CAN YOU TAKE US THROUGH THE REVERSE ACQUISITION OF NAPSTER BY MELODYVR? We acquired Napster for a number of reasons. Firstly, we believe that Napster is a name that is synonymous with both music and digital music. It is, for many people, where they first experienced digital music and it holds a special place in history. We think there is a great opportunity to relaunch Napster as a cutting-edge, legal music service, and to cater to fans’ needs that aren’t currently met by other players in the space. In a world where music consumption is fragmented across various platforms, yet an artist’s output exists in a multitude of formats, we know that by working with artists and our partners, we can deliver a deeper, more rounded, and immersive music experience than is currently available elsewhere. WHAT WAS THE INSPIRATION BEHIND SETTING UP MELODYVR? I was introduced to VR Tech in the US, and it just blew me away. I felt that VR would lend itself perfectly to the live music experience. Not to replace attending live events, but to offer something different and unique. Whether fans couldn’t get to gigs because of their age, the ticket price, geography, or if shows were just sold out, I felt VR could solve all of those issues.

WHAT MAKES A DISRUPTIVE COMPANY? AND HOW DOES YOUR COMPANY REFLECT THAT WITHIN THE MUSIC INDUSTRY? We believe that being disruptive is to take risks and to question the existing framework. In short, to fix something that isn’t yet widely acknowledged as broken. To be honest, the fact that we bought Napster was disruptive. No one saw it coming. For us, it is a very logical and rational acquisition as we have a very clear strategy

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as to how to execute our plan and relaunch the Napster brand. In our case, we believe that MelodyVR and Napster together deliver more value than the sum of their parts. IS THERE ADDED PRESSURE, AS A LEADER, TAKING OVER AN ICONIC NAME WITHIN AN INDUSTRY? Definitely. You get the benefit of a great legacy, but you need to live up to that legacy. You also need to ensure you don’t simply rely on legacy. We have rebuilt the Napster business and its technology from the ground up, which is vital. It was the original disruptor within the music industry and the original streaming service (with Rhapsody), but there is no doubt we still have a job to do as we relaunch. But that challenge, as a leader, is really invigorating. HOW WOULD YOU DESCRIBE YOURSELF AS A LEADER? I’m very collaborative. I always think you need people around you with different skill sets. A company is merely the sum of its strengths as a team. You need people in the team who hold the unique skillsets and experience that you don’t. You have to ensure everyone is invested in the overall vision for the company. Pretty much everyone we work with is a music fan, so they have a visceral and passionate belief in what we are striving to do, both for the artist community and the fans. WHAT HAVE BEEN THE BIGGEST CHALLENGES YOU HAVE FACED AS CEO? Clearly, the pandemic was a major challenge, but also given we ran a series of virtual shows, our user base did grow. When we started out, we had to convince artists and record companies and managers that VR would work. That took lots of time and energy, but if you look at the calibre of artists we have worked with, you can see it paid off. HOW DOES LEADING AN AIM-LISTED COMPANY COMPARE TO ONE THAT ISN’T LISTED? The main difference is that you must wear two hats: company CEO and public company CEO. For example, we have strict internal policies internally about what can and cannot be said publicly, to avoid accidentally breaching AIM rules and regulation.

Cont. 

CEO IN FOCUS

ANTHONY MATCHETT

Overall, you have a great deal of regulation, whether it be around news about the company through to how you run the business. Personally, I like the rigour that comes with being listed, but I find the ease (or lack thereof) of disclosing information sometimes challenging. We are planning to list in the US in the near future, as we said in our half year results, we think the Nasdaq is a more appropriate home for the Napster business. WHAT TRENDS DO YOU SEE HAPPENING IN THE INDUSTRY IN THE YEARS AHEAD? Hybrid live music entertainment is here to stay. Streamed shows will still be big. The creativity and production values will only get better. 2022 for live music is going to be massive – perhaps one of the biggest ever – with a significant amount of major artists touring. The pent-up demand will be significant. And of course, we will relaunch Napster. There are so many ways we want to connect with artists, whether that is visual, audio, live and a multitude of other creative routes. Both VR shows and streamed shows will certainly hold their appeal. What we are planning with Napster we think, will resonate with music fans around the globe – offering streaming, video content, and immersive VR experiences all in one place. Our content gives fans the ability to see things in real-time, or to watch them later, if they’ve missed an event. Personally, we love to relive our favourite shows and to see them again and again. 

"WE ARE PLANNING TO LIST IN THE US IN THE NEAR FUTURE, AS WE SAID IN OUR HALF YEAR RESULTS, WE THINK THE NASDAQ IS A MORE APPROPRIATE HOME FOR THE NAPSTER BUSINESS."

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December/January 2022

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APPOINTMENTS

People & Appointments Business Leader gives a rundown of recent appointments and promotions across various sectors Jonathan Akeroyd Burberry

MOBILE GAMING GIANT MINICLIP APPOINTS SAAD CHOUDRI AS NEW CHIEF EXECUTIVE OFFICER Miniclip, a global provider of mobile game titles, has announced that Saad Choudri, who has been with the business since 2011, has been appointed CEO. The move has been welcomed by senior leadership within Miniclip and its majority investors, Tencent. He has worked in numerous roles including VP of Business Affairs, Chief Commercial Officer, and most recently Chief Strategy Officer.

BRITISH FASHION BRAND BURBERRY ANNOUNCES APPOINTMENT OF NEW CEO British fashion brand Burberry has announced the appointment of Jonathan Akeroyd as CEO and Executive Director, effective April 1 2022. He is currently CEO of Milan-based Gianni Versace SpA, a position he has held since June 2016. In his tenure at Versace, Akeroyd has reorganised and accelerated growth at the iconic Italian fashion house, building on the brand’s rich creative heritage to elevate its products, communications, and the customer experience. He will succeed Marco Gobbetti as Burberry Chief Executive Officer. Gobbetti will step down from the role and leave Burberry on December 31 2021. Gerry Murphy will chair the Executive Committee from this date until Jonathan joins Burberry.

FORMER HBO EUROPE CEO AND HARRY POTTER PRODUCER JOIN ENVISION ENTERTAINMENT International premium content company Envision Entertainment has announced ex-HBO Europe CEO Linda Jensen and Harry Potter Producer David Barron are joining its executive team. The heavyweight industry appointments have been made to realise Envision’s plans to expand aggressively in the international premium content space.

XERO APPOINTS ALEX VON SCHIRMEISTER AS MANAGING DIRECTOR OF XERO UK & EMEA Xero, the global small business platform, has announced the appointment of experienced technology executive Alex von Schirmeister as Managing Director for the UK & EMEA. He brings more than 25 years of senior leadership experience to the role, having worked in e-commerce, payments, telecommunications, FMCG and consultancy. He started at Xero on December 1 2021.

NEXTBASE ANNOUNCES APPOINTMENT OF FORMER PANASONIC MD AS NEW CEO British technology brand Nextbase has appointed Simon Grantham as its new Chief Executive Officer. Having previously served as Managing Director at Panasonic UK and, prior to that, as MD at Miele for over a decade, Simon brings a wealth of experience working with leading consumer electronics brands.

ACCESS INTELLIGENCE WELCOMES LISA GILBERT AS NONEXECUTIVE DIRECTOR Access Intelligence, the technology innovator delivering Softwareas-a-Service solutions for the communications and marketing industries, have announced the appointment of Lisa Gilbert as Non-Executive Director. She is currently VP of Brand Sponsorship & Content at Kyndra, and has significant experience in the technology sector, having worked for IBM for 25 years and holding a variety of roles globally.

December/January 2022

Top 32 esg pioneers in the UK For our latest Top 32 list, we’ve profiled the UK’s leading ESG (Environmental, Social, and Governance) businesses and the senior figures that lead them. Following the fallout of COP26 and the business community’s shift to a more sustainable and sociallyconscious future, these businesses have shone through as leading the way within their respective industries.

HOW HAVE THE TOP 32 BEEN CHOSEN? We asked our readership to suggest companies and individuals that deserved to have the spotlight shined on them for what they are achieving in the ESG space. However, if you feel there are others that are deserving to be included on this list, then please email editor@businessleader.co.uk and they will be included in the digital version on www.businessleader.co.uk. This list is in no particular order.

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TOP 32

Debbie Staveley bClear Communications

ROBIN HEAP ZOUK CAPITAL

Amanda Lyne ULEMCo

Zouk Capital is a private equity and infrastructure fund manager dedicated to investing in the sustainable economy. Zouk’s investment strategy focuses on the opportunities emerging at the intersection of infrastructure, technology and sustainability that stem from some of the most pressing environmental and social challenges facing the world today. Based in London, Zouk manages approximately £1bn, including the £420m Charging Infrastructure Investment Fund (CIIF), sponsored by the UK Government and focused on the public EV charging market.

AMANDA LYNE & PAUL TURNER ULEMCO Amanda Lyne and Paul Turner formed ULEMCo in 2014. The idea behind this Liverpool-based company was to commercialise intellectual property and capability in hydrogen combustion engine technology. They convert vehicles to run on commercially available hydrogen and work with HGV and LGV fleet operators with zero-emission hydrogen vehicles. With HGV’s accounting for 18% of the UK’s greenhouse gas emissions, their work is an important landmark in the future of delivering goods sustainably.

December/January 2022

ESG PIONEERS

Roger Whittle Jigsaw24

ROGER WHITTLE JIGSAW24 Founder and CEO Whittle focuses on enriching Jigsaw24’s company culture by driving diversity, wellbeing, sustainability and community. Besides ensuring they meet ESG frameworks, he encourages every individual across the company to lead with their own passionate initiatives. This has resulted in amazing business firsts, such as partnering with a local university to create a bursary for a female computer science student, a small but real way of addressing the lack of women in tech. He also oversees the firm’s carbon reduction plan including offsetting 800 tonnes CO2e via 3,413 native trees. They also switched their HQ to 100% green energy, gaining ISO Energy and Environmental Management credentials, and setting up EV purchase schemes and charge points for staff. Jigsaw24’s goal is to achieve net zero carbon by 2025.

DEBBIE STAVELEY BCLEAR COMMUNICATIONS bClear Communications has recently gone carbon neutral, having first reduced and now offset its annual carbon emissions. The company has always held an environmentally conscious stance, emitting minimal emissions since it was founded in 2005 and through its ESG policy has been able to achieve its carbon neutral status early. Its offsetting scheme enables the Portishead-based Specialist PR agency to support safe water projects implemented throughout five districts in the Northern and Eastern regions of Uganda.

TROY WRIGLEY BEST.ENERGY For 10 years, Wrigley has been the CEO of South West based Best.Energy – driving them from a small start-up in Cornwall to a flourishing international business; with over 100 active distributors worldwide, and installed technologies producing 2.1 billion data points every day globally. The company's stated mission is to help people around the world to 'switch on to efficiency'. His commitment to spreading that message has taken Best.Energy around the world; with big brands like 7-Eleven, Wates, and McDonald's – all on their rapidly growing client list.

JOSH GILL EVERFLOW WATER After setting up the business in 2015, Gill has driven his team to work with other industry leaders to ensure fair pricing, and lobby for reform change for the water industry. Under his leadership, Everflow Water has even created software to improve quoting, billing, and the overall experience for customers. He is now on a mission to encourage other business leaders to make a difference to the environment by pledging to save water within their companies through the #100Pledges campaign.

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TOP 32

NATASHA MUDHAR THE WORLD WE WANT Mudhar is the Founder of The World We Want, an enterprise launched to accelerate the achievement of the UN’s Sustainable Development Goals, such as climate change and inequality by 2030, by uniting and galvanising change-makers, organisations, non-profits, governments, businesses, celebrities, philanthropists, and citizens to lead on collaborative impact-led strategies. She has also been a prominent speaker at key events such as The World Humanitarian Forum, UN Global Compact Uniting Business Live and UN Global Compact Target Gender Equality.

JOANNA SWASH MONEYPENNY Swash is Group CEO of Moneypenny and under her leadership the company has grown from £19m turnover to £48m and doubled employment to over 1,000 staff. From anticipating the needs of employees in the ‘new normal’, to ensuring its offices feature as many carbon-reducing features as possible, Swash is making impressive steps towards its ESG goals. The firm also works with external stakeholders to assist with levellingup across The Northern Powerhouse, and locally in Wrexham with the Welsh Government. Moneypenny was also the first business of its kind to join the Good Business Charter.

Joanna Swash Moneypenny

JAMES O’MALLEY FUSION COMMUNITY INITIATIVES A former paramedic, a military veteran and holder of two world records on Everest (from which he was lucky to escape with his life), O’Malley has built and led Fusion Community Initiatives from nothing over the last six years, despite a year in hospital and cessation of operations during the pandemic. The company works to engage corporates in the delivery of projects to communities in need. These projects act as a platform for Fusion to use their bench of experienced military leaders to coach the behaviours of high performing teams, to develop leadership skills and to connect and engage employees, building meaningful relationships quickly through worthwhile work, whilst aligning with corporate vision and values.

December/January 2022

ESG PIONEERS

SARA ROBERTS HEALTHY NIBBLES Roberts is the Founder and CEO of Healthy Nibbles. Helping the UK’s leading companies to become healthier and more sustainable, creating a destination of choice for top talent through a suite of products, services, and data to support nutritional health and wellbeing. Committed to the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose, Healthy Nibbles have secured B Corp certification, alongside 1% for the Planet, Investors in Young People, as well as delivering a number of innovative ESG initiatives.

STUART DEBAR SRL PUBLISHING Debar is the Founder and Director of the world's first climate positive publisher. SRL Publishing is an award-winning company which puts the environment before profit. The firm operates differently than the rest of the industry, as to not add to the 77+ million books a year that are printed just for a higher profit margin. SRL Publishing measure their scope 1, 2, and 3 emissions, add 15%, and offset this by supporting projects which meet the highest verification standards. They also calculate the number of trees' worth of paper that have been used for their products, add 15%, and plant.

Sara Roberts Healthy Nibbles

GUY CAMERON CAMERON HUME Chief Investment Officer and a Founder of Cameron Hume, Cameron has over 30 years’ investment management experience. Edinburgh-based Cameron Hume is a specialist ESG fixed-income investment manager. It recently won its first ESG mandate from an Australian pension fund and now has more than $1bn assets under management. The firm integrates ESG factors into all aspects of fixed-income investment though its flagship fund – and commits to building sustainable portfolios through extensive ESG data.

VINCENT BRYANT DEEPKI Deepki is the only company in Europe offering a fully populated ESG data intelligence platform to help commercial real estate investors, owners and managers improve the ESG performance of their real estate assets, and in the process enhance their value. Recently launched in the UK, the company’s SaaS platform enables clients to collect ESG data, get a comprehensive overview of their portfolio’s ESG performance, and report to key stakeholders, facilitating their transition to net zero. The platform is supported by carbon and ESG experts across the continent.

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SAM SMITH FINNCAP GROUP Strategic advisory and capital raising service finnCap Group has created a simple ESG scorecard for companies based around 15 data points, five in each of E, S, and G. Growth companies can measure their ESG performance against key policies, standards and frameworks. In addition, finnCap have also partnered with sustainability fintech leader World Wide Generation to launch a digital sustainability reporting tool for SMEs. Earlier this year, Founder and CEO Smith and her company partnered with Business Leader to promote a month of ESG-focused news and reports.

TOP 32

Bevis Watts Triodos Bank

BEVIS WATTS TRIODOS BANK Since 1980, the Bristol-based bank has had a mission to help create a society that protects and promotes quality of life and human dignity for all. Their sustainable financial products have enabled individuals and organisations across the world to use their money in ways that benefit people and the environment. For example; in 2020, the bank provided 33 million organic meals through its financial services and over 700,000 households worldwide were provided with green electricity from 561 energy projects.

GREG JACKSON OCTOPUS ENERGY Jackson is the Founder and CEO of Octopus Energy Group, the green energy tech pioneer, and certified B Corp, with over 2.4 million UK customers. The business has further operations in 11 countries and 15 million accounts licensed worldwide to its green technology platform, Kraken. All the company’s electricity comes from 100% renewable sources. In Q4 2021, Octopus raised £400m from the Al Gore Generation Fund, showcasing the rise in investment in ESG-focused companies.

STEPHEN FITZPATRICK OVO ENERGY/VERTICAL AEROSPACE

Stephen Fitzpatrick Ovo Energy/Vertical Aerospace

Founded in 2009 by Fitzpatrick, OVO is a Bristol-based firm that provides 100% renewable energy to its customers – helping towards the country’s net zero goals. A ‘unicorn’ business, OVO has also helped plant thousands of trees and created a ‘zero carbon community’ where people within the energy and tech community can discuss ideas to help towards the transition. They also run the OVO Foundation, which aims to give every child a greener, fairer world to grow up in. From installing solar panels in Kenya to constructing houses with young homeless people in the UK, they are tackling both societal and climate challenges. Fitzpatrick is also the Founder of Bristol-based Vertical Aerospace, whose revolutionary tech is decarbonising the air travel sector.

TESSA CLARKE & SAASHA CELESTIAL-ONE OLIO Fast-growing community sustainability app OLIO was founded in 2015 by Clarke and Celestial-One, and is used to give-away unwanted food and household items, for free, with the aim of reducing waste and helping people consume more locally and sustainably. The company now has more than five million users, however, following a recent £43m fundraise, OLIO is looking to further expand its presence worldwide to help tackle the annual £1bn food waste problem. OLIO has over 30,000 Food Waste Heroes, who are trained members of the community collecting and redistributing unsold or unserved food from businesses such as Pret a Manger, Tesco and Costa Coffee.

(L-R) Tessa Clarke and Saasha Celestial-One Olio

December/January 2022

ESG PIONEERS

STEPHANIE BURRAS CBE AHEAD PARTNERSHIP Ahead Partnership is a purpose-driven social enterprise that has been working with a wide range of businesses across different sizes and sectors. Over the last 15 years, the organisation has delivered social value projects that help overcome inequality, promote opportunity, and deliver positive change within society. The team is headquartered in Leeds, but operates nationally, developing and delivering innovative programmes and partnership solutions to help address specific societal needs. Its client portfolio includes international companies such as PwC, Arup, Landsec, John Lewis Partnership, First Group and Pinsent Masons.

DR GRAHAM COOLEY ITM POWER

STUART MCLACHLAN

Sheffield-based ITM Power is a clean fuel and energy storage firm that manufactures integrated hydrogen energy solutions to enhance the utilisation of renewable energy that would otherwise be wasted. This technology only uses renewable electricity and tap water to generate hydrogen gas on-site and has a product offering capable of being scaled to 100MW+ in size. Cooley leads the firm’s drive for improved air quality worldwide, the growth of renewable power generators in the energy mix, and a need to decarbonise industrial processes.

ANTHESIS GROUP Anthesis is a global sustainability professionals’ group, and one of the UK’s fastest-growing private companies and is known as the ‘sustainability activator’. From strategy to implementation, Anthesis offers unrivalled services to help businesses achieve economic and ESG goals. Since establishing in 2013, the company has made 13 acquisitions of leading sustainability firms and grown to have more than 700 experts across 40 countries, helping drive towards a net zero future. Anthesis has clients across industry sectors from corporate multinationals such as Reckitt Benckiser, Cisco, Tesco, The North Face and Target, and also supports earlystage companies through Anthesis Ventures.

ETIENNE CADESTIN LONGEVITY PARTNERS Longevity Partners provides all services required to future-proof property investment portfolios. The global ESG consultancy operates in 38 countries for more than 100 institutional investors (including BlackRock and J.P. Morgan) across all asset classes. From carbon foot-printing to climate risk and ESG strategy development and implementation, its experts provide all the tools to respond to ESG performance requirements from pension funds and asset owners. Longevity works hand-in-hand with real estate owners to position their assets for the demands of tomorrow, while improving the well-being of users and net operating income today.

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AVINASH RUGOOBUR ARRIVAL Rugoobur is the President of the London-based electric vehicle manufacturer that is aiming to create EVs at the same cost as its petrol and diesel equivalents. Last year, the firm also launched a new passenger bus designed for coronavirusera social distancing. A few months later, the firm launched on the Nasdaq, following a merger with US-based SPAC, CIIG Merger Corp – valuing the company at around $13bn – in what is one of the largest ever stock market launches by a UK tech company. With the goal of creating zero-emission cities, Arrival recently partnered with Uber to create a new era for the ride-sharing platform.

TOP 32

Maria Raga Depop

MARIA RAGA DEPOP The peer-to-peer social e-commerce company allows its 30 million users to buy and sell used items, helping to cut down on fast fashion and wastage from the industry. With offices in Manchester, Milan, Los Angeles and New York, the platform created by the London-based company is often used by celebrities to sell items, with the proceeds going to charities across the world. Targeted at the Gen Z audience, Depop has helped create many social media influencers who promote a more sustainable fashion industry. Last year, the firm was acquired by Etsy for $1.6bn.

JAMES BASDEN, NICHOLAS BEATTY & STEVEN MEERSMAN ZENOBĒ At Zenobē, their goal is to make clean power accessible to millions. They do this through its innovative use of battery storage. By making clean power as well as making transport economically and environmentally sustainable, they are driving the transition to a zero-carbon economy. Established in 2017, they are the leading owner and operator of battery storage in the UK, having raised over £300m and a 25% share of the UK’s e-bus market. With approximately 225MW of batteries in operation or construction they are supporting the National Grid with the uptake of renewable power.

ROB JOLLY & DANNAN O’MEACHAIR ONTO

Iggy Bassi Cervest

Established in 2017, Onto is an electric car subscription service that was founded by Jolly and O’Meachair to accelerate the EV revolution. The company offers a sustainable flexible, and affordable alternative to traditional car ownership, by offering EV car ownership without long-term commitment. The Warwickbased company raised $175m funding in 2021 to expand its offering and has now got over 3,000 members. This year its community saved 2.3 million kgs of C02.

IGGY BASSI

MANSOOR HAMAYUN

CERVEST

BBOXX

Cervest's AI-powered climate intelligence platform puts the power of a thousand climate scientists into the hands of decision makers across businesses, governments, insurance companies and financial markets to help them quantify, manage, and adapt to climate change at an asset-level. A Certified B Corp, Bassi’s company’s vision is to democratise access to climate intelligence through its open access platform, driving a shared responsibility to protect the world’s critical assets.

Founded over a decade ago, Bboxx designs, manufactures, and distributes decentralised energy solutions to enhance access to power throughout the world, but mostly in Africa. Co-Founder and CEO Hamayun’s goal is to solve energy poverty and unlock potential through energy access across the world. Currently 759 million people live without access to energy, with a further 840 million connected to unreliable grids – Bboxx is tackling this issue.

December/January 2022

ESG PIONEERS

Steven Meersman Zenobē

Rob Jolly Onto

Dannan O'Meachair Onto

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Mansoor Hamayun Bboxx

TOP 32

ESG PIONEERS

PETER HARRISON SCHRODERS GROUP Harrison is the CEO of investment firm, Schroders. As a global asset and wealth manager, Schroders delivers a broad range of investments designed to meet the diverse needs of institutions, intermediaries and high net worth individuals, while keeping ESG at the heart of everything they do. The business channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if they deliver for clients, they deliver for Shareholders and other stakeholders.

(L-R) Sharon Bange & Sinead Gray Kindred

SHARON BANGE & SINEAD GRAY

NORMAN WILLEMSEN

KINDRED

KEBONY

A multi-award winning ESG PR and communications consultancy, Kindred is run by Managing Directors Bange and Gray. The company helps brands and agencies connect with the rising tide of consumer awareness. As customers demand more transparency and action from companies in all industries, Kindred helps drive behaviour changes for a better society and environment. For over 20 years, the company has provided campaigns that have led to actionable, positive change in a range of industries.

Kebony is a wood modification technology company, whose vision is to reduce CO2 emissions and tropical deforestation by using its patented wood modification techniques, which produce wood in an environmentally-friendly way. This unique process is also a superior alternative to traditional wood treatment, based on impregnation with biocides (wood preservatives). They recently raised €30m to help produce sustainable materials for the residential and non-residential construction industries across Europe.

ADAM HUTTLY RED-INC Huttly has worked in office supplies for over 20 years, accumulating a wealth of knowledge, but also with growing frustration with an industry that promotes a race to the bottom; resulting in highly competitive pricing and delivery terms, at the expense of innovation, progress, and most importantly sustainable thinking. He realised that to see change, he needed to lead the way. So, he founded Red-Inc, a company that considers people and planet over profit. Created to break the mould of traditional supplier models by reversing outmoded and wasteful industry practices. Red-Inc is now a highly successful, award-winning business and the first office supplies company to be B Corp certified.

December/January 2022

THE UK’S LEADING AWARDS CELEBRATING SCALE-UP BUSINESSES

OPEN FOR ENTRY The Scale-Up Awards are free to enter, and you may enter multiple categories. Entry is open to businesses, entrepreneurs and organisations that are based in the UK and who can demonstrate ‘best in class’ business performance.

ESG and Social Impact Award

Business Leader of the Year

Customer Champion Award

Diversity Champion

E-Commerce Business Award

Employer of the Year

Family Business of the Year

International Business of the Year

Manufacturing Excellence Award

Overall Scale-Up Business Award

Scale-Up Disruptor Award

Scale-Up Entrepreneur of the Year

Sustainability Scale-Up Business of the Year

Technology Scale-Up of the Year

TO ENTER, VISIT SCALEUP-AWARDS.CO.UK Awards Partners

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DEBATE

‘Walk out of your office right now into your open plan area and tell everyone that you're going to be embarking on a journey’ The spotlight has never shone so brightly on UK business when it comes to the impact they are having on the environment. To dig deeper beyond the sweet sentiments often put out by companies around the subject, Business Leader brought together a panel of experts to debate what businesses can do to tackle climate change, and how they can measure and report their actions. How do you solve a problem like climate change? It is a big question, and one that needs to be broken down into segments, starting with how business leaders ensure the sustainability strategies they have in place have clear outcomes. Nicky Amos is the Managing Director of Chronos Sustainability, a 20-strong team of professionals that advise companies on how they can reduce their carbon footprint. She says: "The first critical step is for companies to be much more explicit about the goals and the outcomes that they are capable of delivering. It's really important to ensure that you have a consistent approach, where you can make a meaningful and lasting difference."

Nicky also says that declaring your plans privately and publicly is important too: "You can get everybody in the company behind this, but you have to sell the vision and not the process. Of course, the process is important to getting there and achieving your goals, but people don’t get inspired by the process." Manjula Lee, the Founder and CEO of World Wide Generation, believes too many businesses still aren’t putting sustainability – in particular – at the heart of their businesses, and they are risking their futures.

View the Debate here

Cont. 

December/January 2022

SUSTAINABILITY

Business Leader - Inspire • Inform • Connect

DEBATE She explains: "I feel like we have made sustainability something on the side, which it actually isn't, it's just another lens of the business. If you look at financial reporting, there is clear metrics in place for companies. The same needs to apply to sustainability because you’re de-risking your business and increasing its value if you put it on a par with financial reporting. It is no longer good enough to have this as a couple of paragraphs and a photo in the annual report – it needs to flow through the numbers. "If you're not looking at social, economic and environmental risk in the business, you can't increase value. It is as simple as that." Steve Malkin, Founder and CEO of Planet Mark, agrees and says that investors, employees, and customers want change to happen too. He says: "There are people inside every organisation that want to take action, and they are becoming frustrated by the lack of action being taken, so you’re pushing at an open door now. We also know that stakeholders, investors, and customers want to see you change as a business. So, it’s the time now for companies to make these commitments internally and externally."

Nicola Stopps, who is CEO of Simply Sustainable, elaborates on Steve’s point by saying that following these metrics is just the sign of being a well-run business. Nicola explains: "Number one, if you have a robust ESG and Net Zero strategy, it is a proxy indicator for a well-run company. Number two is that companies with strong ESG performance more than likely do better than ones which don’t manage their ESG risks. And the other point is that companies who have identified their risks – and are addressing them – are better equipped for managing unforeseen issues, such as those that will happen because of climate change; and they will not only be able to tackle them but also develop opportunities for growth."

"THERE ARE PEOPLE INSIDE EVERY ORGANISATION THAT WANT TO TAKE ACTION, AND THEY ARE BECOMING FRUSTRATED BY THE LACK OF

ISN’T ALL THIS JUST FOR THE LARGER COMPANIES? A well-trotted out argument is that having a sustainability agenda is just for larger businesses that can afford it. Nicola says it isn’t. She explains: "It doesn’t matter how big the business is because your stakeholders and customers will be expecting action from you. Most small businesses will be supplying large businesses. And the trend always goes that if you get your house in order, if you're a large business, you then look to your suppliers, so it's coming down the line. Smaller businesses also need to understand that it is a potential way of differentiating yourself and making you stick with your larger customers." Raymond Greaves, who is Head of Research at finnCap, agrees: "A good sustainability strategy tends to reflect on a well-run business, no matter the size. I think we'd all like to live on a planet which has got a decent environment, where the temperature isn't rising, and the seas are not full of plastic.

ACTION BEING TAKEN, SO YOU’RE PUSHING AT AN OPEN DOOR NOW." Steve Malkin

December/January 2022

SUSTAINABILITY "So, I think we can all easily agree that businesses of all sizes can make a difference and take responsibility. "From a governance point of view, a company that has a clear plan for being green tends to be better run too. There are still an awful lot of ESG naysayers though, and some businesses see it as a sort of rogue wing of Greenpeace or something like that, but it’s just good business."

"Typically, to succeed, you either upskill your own people or you bring in experts to advise and help you. You also need to engage your board too – if your business is structured this way. "In regard to where budget is coming from, pre-pandemic it would have been from the corporate affairs team, but this is shifting to the Director of Risk or Strategy and it’s even coming into the CEO’s office."

WHAT DOES NET ZERO MEAN? At the recent COP26 event, the global effort to reach Net Zero was discussed, but for many businesses, knowing exactly what this means can be a challenge.

HOW CAN COMPANIES TAKE PRACTICAL ACTION? One of the criticisms businesses get is that it can be too easy to write a blog or an article saying what they are doing but it’s harder to do things that make a difference.

Steve Malkin comments: "Net Zero requires you to measure and reduce and take to zero your Scope 1 and 2 emissions. This means any fuel that your company uses or burns with natural gas, diesel, or petrol, you need to take to zero and this is what they are calling Scope 1. Then anything you've got in Scope 2 you need to take to zero, and that's your electricity consumption. This is something you need to radically cut, and to do this means embracing renewable energy."

Steve Malkin explains that – like eating an elephant – it’s about doing things one bite at a time. He says: "Many SMEs want to do the right thing, but they don't know where to start, so you have to keep things pretty simple for organisations. Looking at your energy, your utilities and your waste is a very good place to start. On the social impact side, this is about employment and being involved in your community and many businesses are good at this, but it is important to measure the social impact you’re having too."

"A GOOD SUSTAINABILITY STRATEGY TENDS TO REFLECT ON A WELL-RUN BUSINESS, NO MATTER THE SIZE. I THINK WE'D ALL LIKE TO LIVE ON A PLANET WHICH HAS GOT A DECENT ENVIRONMENT." Raymond Greaves

Many leaders will also be thinking that acting is expensive, and it means hiring a consultant to help to ensure they stay on track. Nicola says that may be the case, unless you empower staff: "Studies show that 65% of institutional investors are looking at ESG ratings, so if you don’t get this right, you could be devaluing your business. So, to tackle this could mean a cost in your business, but it will be worth it.

and be held accountable? Walk out of your office right now into your open plan area and tell everyone that you're going to be embarking on a journey to make your organisation create positive impacts on society and the planet. And that you want the help of everyone in the business to do that. Get them in a room, fire them up and say we're going to go on a journey and they’re involved."

Nicky agrees that it is time to just get practical. She says: "The first thing that a company can do, and this doesn't cost any money, is to outline a very clear management commitment to ESG. A policy statement issued by a company is a clear affirmation of their understanding of the issue and how it's critical to the business. But of course, policy doesn't drive change in a company because you then need to identify clear objectives and targets." SO, WHAT ABOUT THE FACT THAT MOST UK BUSINESSES ARE SERVICE BASED AND NOT ON THE FACTORY FLOOR MAKING WIDGETS. WHAT STEPS CAN THEY TAKE? Nicola Stopps says: "For example, if you are a company which is storing or shredding secure documents, you want to be thinking about how can I digitise this? And then where is the energy coming from? And what is happening to that paper? And instead of those companies producing that paper, can I provide a digital service for them in the first place?" Steve adds: "Do you know a good way of making sure you’re going to take action

Business Leader - Inspire • Inform • Connect

On how to measure this, Steve says: "You should start to measure your business operations because you can get your arms around that very, very quickly and easily on an annual basis, and probably start with carbon emissions because it's pretty easy, to be honest. I would also get hold of utility bills and collect that data too and start to see where you can cut emissions." Quite clearly, businesses are realising they need to act, and legislation will no doubt force the hands of those that aren’t anyway; but the gap between saying what you want to do and showing you are doing it, is still too wide for many companies. It’s not just action that’s needed; it’s measurement of the action being taken.

This debate was hosted by Oli Barrett MBE and formed part of our ESG and Sustainability Month in September. See our website for more content from the month, in partnership with finnCap Group. 

FEATURE

What is a B Corp? and should you look to become one?

More and more businesses are achieving B Corp status in the UK, but what is it? And should you be looking at becoming one? Business Leader Magazine investigates. According to the B Corp website, it measures a company’s entire social and environmental performance. Businesses with B Corp Certification have, therefore, undergone and passed the strict certification process. The process also involves a B Impact Assessment, which looks at how a company’s operations and business model impacts their workers and customers, along with the community and environment. “The B Impact Assessment questionnaire is effectively your scorecard,” says Steve Butterworth, CEO of Neighbourly, one of the first B Corps.

December/January 2022

B CORP “It’s a 250-line spreadsheet. It’s not small. It’s a time sync to commit to doing it, but that’s just because they need to be thorough, so you know that anyone who is certified as a B Corp has gone the extra mile.”

Of course, the strict criteria for achieving B Corp status means that certain businesses might have to make some dramatic changes to their business model to make themselves eligible to meet the criteria, which might put some off.

B Corp Certification evaluates all aspects of a business. Those who are B Corp certified have successfully demonstrated that they have met the highest standards of social and environmental performance, public transparency and legal accountability to balance profit and purpose.

But if a business were to undergo the seemingly difficult process of becoming B Corp certified, would it be worth it?

“B Corp Certification is an attractive framework that enables brands the right starting point to balance all stakeholder interests – profit and purpose,” says Ben Black, Director at investment firm Verlinvest. “For the business I see it often act as a catalyst to attract toptalent who are seeking to work for meaningful, purpose-led brands. It helps companies clarify their mission, strategic direction and role in society, and crystallise areas of improvement. “For wider society, it ensures much higher standards than those legally required for treatment of teammembers, suppliers, and other key stakeholders.”

“The easy answer to that would be the positive impact on your brand equity,” says Steve. “If you’re a B Corp, for those who understand what it means, it’s a fantastic thing to be part of. “For employees that are looking to work for businesses that are more purposeful, then you know you’re joining one that works that way and thinks that way if it’s a B Corp. We’ve recruited people who’ve said that they really wanted to work for a B Corp. The flipside to the recruitment is that you’ve got staff retention as well.” According to Lysander: “As a global certification scheme, B Corp is a big step above the ‘business as usual’ CSR strategies. Being part of this community provides the perfect opportunity to explore and implement a better way of doing business. “There are many people across Britain who want to make a difference and to take the lead through the products and services they use. B Corps are tapping into this.

Ben Black Verlinvest

“I am the youngest for now, but as I learn from the network and community, I can improve and focus my passion, which is a key driver for why I started Leo’s Box. “We aren’t going to change the world alone, but each of us need to find a way to make a difference. B Corp is about making things achievable, which we can’t do alone.”

“The process is, rightly, quite demanding,” says Lysander Bickham, CEO of Leo’s Box, and the youngest CEO to have achieved B Corp status. “The process is very rigorous, going into the finest details, including factors such as water usage through to impact reporting and transparency – with evidence of all aspects needing to be supplied in order to secure points.” “The difficulties of achieving B Corp status ensures a higher level of trust for the accreditation, which in turn, creates value for more businesses.” WHAT ARE THE BENEFITS OF A BUSINESS UNDERGOING B CORP CERTIFICATION? According to the B Corp website, there are currently 4,152 companies across 77 countries and 153 industries with B Corp Certification, so seemingly any company that meets their strict certification criteria can become certified.

"FOR THE BUSINESS I SEE IT OFTEN ACT AS A CATALYST TO ATTRACT TOP-TALENT WHO ARE SEEKING TO WORK FOR MEANINGFUL, PURPOSE-LED BRANDS. IT HELPS COMPANIES CLARIFY THEIR MISSION, STRATEGIC DIRECTION AND ROLE IN SOCIETY, AND CRYSTALLISE AREAS OF IMPROVEMENT."

Ben Black

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Lysander Bickham Leo's Box

BETTER RETURNS FOR INVESTORS With recent reports suggesting more environmentallyfriendly firms offer better returns for investors, we were also interested to learn whether becoming B Corp Certified can help a business to attract funding and aid growth.

Ben said: “This year has seen record inflows of capital into ESG funds looking for purpose-led opportunities – nearly $2tn in total according to a report from Reuters. “So, there is a huge appetite for ethical investment opportunities and B Corp provides a rigorous framework that helps filter those for whom purpose is really central and reduces risk of ‘green-washing’.

Cont. 

FEATURE

B CORP

“More broadly, purpose is a big driver of growth and engagement in consumer brands – younger consumers, in particular, are searching more than ever for brands that reflect their values and contribute to a new style of more balanced stakeholder capitalism.

“As we have said publicly, Etsy will not seek conversion to a benefit corporation by the December 2017 deadline because converting is a complicated and untested process for existing public companies. This means that we will remain a Delaware C corporation and will relinquish our B Corp status.

“Growth opportunity, in turn, attracts talent and capital, creating the fly-wheel effect I see in many of Verlinvest’s brands, such as Who Gives a Crap, Tony’s Chocolonely and Vita Coco, that are B Corp Certified.”

“Although Etsy will no longer be a Certified B Corporation, Etsy and B Lab share a long-term vision for the role of business in society and the positive impact companies can, and should, have on the world."

“In 2019, Unilever, who own several B Corps including Ben & Jerry's, announced that their purpose-led, sustainable living brands were growing 69% faster than the rest of the business and delivering 75% of the company’s growth,” says Steve. “That’s the sort of numbers, as a CEO, that make you sit up and pay attention.”

It is important to point out that Silverman’s comments appear to be specific to corporations incorporated in the US state of Delaware. Therefore, this does not necessarily mean that all companies looking to gain B Corp Certification will need to undergo such widescale changes to their company’s structure.

“And whilst not all of them are going to be B Corps, they are sustainable brands and by association, I think they are ok to talk about.”

Regardless of the process being quite demanding, when we asked Ben Black if he believes you should look to become a B Corp business, he replied: “Yes, certainly. I have seen Verlinvest’s purpose-led brands, such as Tony’s Chocolonely (fighting to make chocolate 100% slavefree) and Who Gives a Crap (toilet-paper that builds toilets), and find it an incredibly useful tool to ensure all stakeholder interests are appropriately balanced. “Having said that, it is not for everyone – the process is time-consuming and tough, and in some-cases I see brands that prefer to dedicate more resources to their own impact organisations instead.

SO, SHOULD YOU LOOK TO BECOME A B CORP BUSINESS? Whilst there appears to be plenty of benefits to becoming B Corp Certified, the process of becoming a B Corp, or even maintaining B Corp status, is not the most straightforward. In 2017, US e-commerce company Etsy gave up its B Corp status after five years to maintain its corporate structure. When commenting on the move at the time, Etsy CEO, Josh Silverman, said: "One of the requirements of B Corp Certification for corporations incorporated in Delaware is that a company must change its corporate structure from a C Corporation to a benefit corporation.

“So, it depends on the clarity of the mission of the brand, but it is certainly a powerful force in driving the conversation about how we can all support businesses that, in turn, support wider society and benefit everyone, rather than just shareholders alone, and that’s an incredibly important conversation to be having.” Steve Butterworth concurs: “Absolutely, 100%. But the barrier will be that you’ve got to take the company with you. “Who are the blockers in the business that may prevent you from doing that? It could be an investor who insists on profit at all costs, maybe not explicitly but that might be what the undertone is.” “Is it for everyone? Of course not, but I believe the B Corp movement is currently gaining more traction than ever before.” 

December/January 2022

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FAST TRACK

THROUGH THE COMPETITION In each edition of Business Leader Magazine, we profile a UK business that is experiencing exponential growth in a feature called Fast Track. This time, we spoke to Yorkshire-based technology consultancy, Razor.

Founded in 2009, the firm has this year been recognised in the FT1000: Europe’s Fast Growing Companies list, published by the Financial Times and Statista – highlighting Razor’s exponential growth over the last few years. The list features businesses across the continent that have the highest compound annual growth rate (CAGR). In 2018, Razor reported revenues of £560,000 with 14 employees at its

Sheffield headquarters. However, in 2021, the company reported increased annual revenue to £2.5m, and 39 members of staff. Co-founder and CEO, Jamie Hinton, comments: “We don't start with supplying tech solutions, we start with helping people. As a business, we have everything from usability experts, testers, software engineers, data experts, data scientists, project managers, account managers and

December/January 2022

RAZOR

Hinton and his Co-Founder (Steve Trotter, COO) started Razor while they were both still working together in a different business: “Whilst working at another large agency, building banking software and similar platforms, it was almost like we were held back. We had our own views on how to do it better. Not only could we be the technicians, but we were involved in every aspect of running a business already. So, we understood where changes could be made and in a better way to how our previous company was running things.

“We are the Vivienne Westwood handmade suit, as opposed to the one from Next. We're going to tell you you're wrong, and we're going to tell you why. We will tell you if you don't even need us. And it seems to be working because we're not trying to be everything to everyone. My advice to businesses in this industry is don't try and please everyone, be really niche and be the best at that.” It was this attitude that has then led to Razor’s CAGR becoming one of the fastest-growing in Europe.

“Many people in our He explains: “We've position who are experts turned down big in one area – in our contracts and then a "THE PURPOSE case technicians – few years later, they've don't realise what else OF THE BUSINESS come back to us with happens in a business; something else they IS TO ACCELERATE like the sales, marketing, know we can help with relationships, finance TECHNOLOGICAL because we have built and operational that trust – and it is ADVANCES AND DIGITAL processes – there is normally for a much so much that goes on TRANSFORMATION. WE DO larger contract. This has aside from the delivery THIS TO KEEP BUSINESSES been key to the last few of new tech. However, years of our growth. we engaged in the RELEVANT – WE ARE CALLED “If you think short term other areas and had RAZOR FOR A REASON. WE success, you won’t last experience in how it all worked. As a team, we ARE AT THE CUTTING EDGE very long as a business. Our recent exponential had the range of skills to OF WHAT WE DO." growth hasn't been run a start-up and when overnight. It's taken 10 we took the leap and left years to be an overnight our day jobs, we totally success. And it's because we've done it believed in what we were doing.” the right way. We have stable growth at ‘IT’S TAKEN 10 YEARS TO BE AN a level where we can maintain our high OVERNIGHT SUCCESS’ standards. You can take the hard path Razor was in existence for nine years and it'll create a business with long term and went through two rebrands before it success. Others could take the easy path, started on its exponential growth journey. and it creates problems in the long run.”

everything in between. The purpose of the business is to accelerate technological advances and digital transformation. We do this to keep businesses relevant – we are called Razor for a reason. We are at the cutting edge of what we do.” LEARNING ON THE JOB Now in its 12th year, the company is being recognised across Europe as a fast-growing tech firm, but its beginnings were far away from the success it is now experiencing.

The digital transformation market is valued at more than $400bn, as is the global software sector. This highlights the enormous size of the industry that Razor operates in. However, despite their recent success, Hinton is aware of Razor’s current position and how it can provide a platform for future growth. He comments: “We are like David vs Goliath. Unlike our much larger competitors, we are a sharp scalpel that can quickly and professionally help transform a business. We operate in a way that is opposite to the larger firms that just say ‘yes’ to everything. If you want people to just agree with you, don't employ us. We're not the cheapest by far.

Business Leader - Inspire • Inform • Connect

KEYS TO EXPONENTIAL GROWTH As well as focusing on the niche element of their service, Razor has showcased several key tactics that have led to the firm being able to scale quickly. Primarily, when Hinton and Trotter started the business, being opposites in their approach to business led to its initial stability and created a base for the firm to grow.

Cont. 

FAST TRACK Hinton explains: “I think it's absolutely imperative to create a business with someone who has a different mindset and approach to running a business – and have a varied set of skills – no one can do everything themselves. No one is brilliant at everything, because there just simply aren't enough hours in the day to focus and do it to a high enough standard. “Sometimes I hear that co-founders need to be exactly the same to drive a business forward, but I completely disagree. If there was just two of me in this organisation, it would not have gone anywhere. “It is vital to find your polar opposite when you start a business. You get more diverse thinking, a unique perspective, and different ways of tackling a challenge.

He comments: “You start to gain momentum when you grow a business, especially when you get known for delivering within your industry. Once the ball started rolling, we thought ‘what are we scared of?’. As a business leader, if you are tentative in that moment of the growth journey, and hold back on recruitment, investment in the business, etc, you're not going to go anywhere. And we went balls in – we hired some big shots for the right job roles.

no. Give me 10 people in a room who are all programmers, there will be one person in that room who will outdo every single person – hire them and pay them well. Don't get 10 of them. Don't get nine of the others, you get lower output. That's how we have scaled our business.”

"This is something that I think many aspiring, fast-growing companies don't do, especially early on. It is also important to get rid of the people who are toxic and not the right fit for the business.

THINKING, A UNIQUE PERSPECTIVE,

BUSINESS. YOU GET MORE DIVERSE AND DIFFERENT WAYS OF TACKLING A CHALLENGE."

With regards to the future trends Razor will look to move into, Hinton comments: “The future trends I see are going to be compounded by the need to update your business to the most up-to-date technology – it's going to be automation, machine learning, artificial intelligence, VR/ AR, and how they all work with businesses across all industries.

And to have someone who you trust to challenge your decisions, yet collaborate on ideas, has also helped Razor overcome the biggest challenge for start-ups – fear.

NO FEAR Once the company was established and started to create a stable footing within the industry, Hinton learnt the best practices for keeping the business on an upward trajectory.

OPPOSITE WHEN YOU START A

FUTURE PLANS Following nine years of steady growth and overcoming the challenges facing tech start-ups – followed by its explosive scaling since 2018 – what is next for Razor?

"This means that you can both focus on the parts of running a business that you are good at. It's the synergy of those two different modes of thinking that create a successful business – it is the Ying and Yang that makes this business tick.”

“When you're on your own, that fear grows so fast, but when you've got someone else to cheer you on, or take that fear, or just to talk to, that reduces it and leads to productive discussions on the best way to proceed. Fear is ‘false evidence appearing real’ – and your cofounder challenges you on that to find the best resolution to a problem. My advice would be to have someone else with you, because the journey is far, far more fun. The journey of a business leader matters if you want to grow a successful company.”

"IT IS VITAL TO FIND YOUR POLAR

"This changes the culture massively in such a positive way – and as a result, the right people step up. People are the most important part of any business. “This creates a culture where employees know how important it is to challenge the status quo if they believe there is an alternative. I want people to challenge me, I want them to come and tell me what I'm doing wrong, and not to have any fear of negative repercussions.” In regard to employment within a scaling tech business, Hinton offered this piece of advice: “Do you always need more people when scaling a business? The answer is

“However, the trend that’s only going to get bigger is technology adoption. And if you're not already on it, you're far too late. This has been amplified by Covid-19 and the need for digital transformation.” As the world continues to accelerate to an even more tech-focused future, Hinton believes Razor are ideally placed to continue on their own growth journey. He concludes: “The future is bright. The future is big. We're taking on the world. We want to open in new locations. This whole thing of ‘the office is dead’ is nonsense. It is the human beings and interactions that make a business. That is magical. We want to continue growing by helping other organisations accelerate their journey with technology and innovation.” 

December/January 2022

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FEATURE

Which UK CEOs drive an electric vehicle? More than 175,000 electric vehicles (EVs) were registered in 2020, a 66% increase from 2019 levels and the biggest annual increase in the number of registrations. With more electric vehicles appearing on UK roads than ever before, we took some time out to speak with the UK’s EV driving CEOs about the electric vehicles they drive, and why they decided to make the change to an eco-friendlier form of transportation.

WHAT EV DO YOU DRIVE AND WHAT’S YOUR FAVOURITE PART ABOUT IT? Despite the first electric production car being built all the way back in 1884, electric vehicles have only become readily available to the average motorist in recent years. Recent innovations have meant that issues like high costs, low top speed and short driving range are no longer so prominent, which has helped their popularity to rise. There are now a variety of mass-produced all electric cars on the roads, so we asked business leaders across the UK which one they drove. Dominic Ponniah, CEO at commercial cleaning and facilities company Cleanology said: “Tesla, and my favourite part is the supercharger network on the motorways. As I am travelling more and more outside London, it’s great to be able to stop for 20 minutes on a long trip to plug in and charge whilst you grab a coffee/sandwich. It’s incredibly quick, no other car compares.”

December/January 2022

or traffic, so doing it electric makes it less hectic and more enjoyable for me.” However, a quiet drive is not the only reason why CEOs and business leaders enjoy driving electric vehicles. Ruth Shearn, Founder of full-service PR and digital marketing agency, RMS, points out that their acceleration and environmental benefits also make them highly desirable.

Steffan Brans EEVEE Mobility

Steffen Brans, CEO of EEVEE Mobility, a digital start-up that creates products and services to improve EV charging and driving, also spoke to us about the electric vehicles he has driven in addition to his current Tesla. Steffen responded: “A BMW i8. It’s not 100% electric, but I’m lucky to have had the chance to test several other EVs for a week or so, such as an Audi e-tron and a ID.4. “My favourite part about driving an EV is the sound – there is none. I find it peaceful not hearing an engine and love that, without gears, it still accelerates faster than petrol and diesel cars! I know it sounds spoilt, but I don’t like driving

She comments: “After doing lots of geeky research, I opted for a Kia e-Niro because its reviews across all aspects of performance were all positive. It was also priced sensibly. “My favourite part is its phenomenal acceleration, which is doubly satisfying as I’m also helping protect the planet.” Toby McCartney, CEO of MacRebur, a company that uses waste plastics to enhance road surfaces, agrees: “I drive the Jaguar I-PACE. I love its acceleration from zero to 60 in 4.5 seconds. You just push the accelerator and away it goes.” There are other features that, despite not being limited to electric vehicles, also make them a desirable drive.

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Sarah Hartley, Director at spare parts specialists Click Spares, says: “I have been driving a Renault Zoe GT for the past year. I chose it because it was the bestperforming EV in its price range at the time of buying it. “I love driving it. It’s very responsive, has great integration to my phone, it’s roomy and most importantly, has heated seats and steering wheel.” WHY DID YOU DECIDE TO MAKE THE CHANGE TO AN EV? One of the biggest reasons why business leaders are making the change to EVs is because of the benefits to the environment. Tamara Roberts, BMW i3 driver and CEO of winemakers Ridgeview, commented: “Climate change was a major factor. We can also charge the car on our drive and the fact that most of our mileage is frequent, short distance journeys.”

Cont. 

FEATURE Chris Ormrod, Managing Director of specialist food suppliers The Flavourworks and driver of a Mercedes EQC, also made the change for environmental reasons. He commented: “I changed because I wanted to show staff that we were serious about reducing carbon emissions, and that electric/hybrid cars are the way forward. Plus, the tax break as a company car owner is too good to ignore.” According to research from Exeter, Nijmegen and Cambridge Universities, the average ‘lifetime’ emissions from EVs are up to 70% lower than petrol cars in countries like Sweden and France (where most electricity comes from renewables and nuclear), and around 30% lower in the UK. So, if renewable energy becomes more commonplace in the UK as we look to combat climate change, the lifetime emissions of electric vehicles may reduce even further. However, there are other benefits of owning an EV, including financial ones. Ponniah commented: “It’s a combination of reasons, including inevitability now that petrol and diesel vehicles are being phased out, significant financial savings (especially in London) and, of course, it fits with our values and ethos.” Going electric also made financial sense for MacRebur CEO Toby McCartney: “I’m the CEO of an environmental company – it’s only right that I look to reduce my carbon emissions as much as possible and move away from burning fossil fuels.

DO YOU THINK THE POPULARITY OF EVS WILL CONTINUE TO GROW? IF SO, WHY? Following the release of the damning Intergovernmental Panel on Climate Change (IPCC) report in August, which confirmed that global climate policies failed, there have been calls for urgent action to reduce climate change around the world. As a result, you would assume electric vehicles are set to get more popular. However, Dominic Ponniah believes there are several barriers that have limited their popularity, although we are beginning to overcome some of them. He commented: “I think EVs will dramatically increase in popularity over the next few months and years. The autumn fuel crisis has given a further boost to EV ownership but has also brought into sharp focus the high cost of petrol and diesel fuel, as well as other natural resources, such as gas. “EVs have also been seen as the ‘preserve of the middle class’, with affordability being an issue to make them have mass market appeal. However, there is now much greater choice than ever before, with luxury options such as Porsche and BMW, to more economical options such as Kia and VW. Only a few years ago, it was a Nissan Leaf or a Tesla!”

Carl Huntley, who drives an Audi E-Tron 55 Quattro and is Chief Executive of awardwinning architectural practice Base Architects, says he has had to collect a number of different methods of payment to cope with the range of charging operators. He comments: “There are issues at public charging points. I have had to collect six different apps/charging cards to cope with the range of charging operators out there. “There are several different charging connectors, which again complicates matters, and certain charging points which have two connections will only charge one car at a time, with the second charging point only coming available when the other car using it is fully charged. “I have had to call two providers so far and ask them to reboot the charging point as the software had crashed.” Sarah Hartley also points out that the coverage for electric vehicles varies depending on where you are in the UK. When asked whether the popularity of EVs will continue to grow, she responded: “Of course it will! As long as the infrastructure is put in place to support journeys across the UK. I find some areas of the UK are not as well covered as others, and we have visited charging points only to find they are out of order on more than one occasion.

However, perhaps the biggest barrier to growing the popularity of electric vehicles is the current charging infrastructure. Almost all of the business leaders we spoke to for this piece cited it as problematic in some way.

“For the miles I do each day, it makes sense to go electric, plus it works out so much cheaper to run.”

"I CHANGED BECAUSE I WANTED TO SHOW STAFF THAT WE WERE SERIOUS ABOUT REDUCING CARBON EMISSIONS, AND THAT ELECTRIC/HYBRID CARS ARE THE WAY FORWARD. PLUS, THE TAX BREAK AS A COMPANY CAR OWNER IS TOO GOOD TO IGNORE.” Chris Ormrod

December/January 2022

“The car manufacturers also need to develop new electric models, rather than changing their existing fuel models to electric versions.”

"THE CAR MANUFACTURERS ALSO NEED TO DEVELOP NEW ELECTRIC MODELS, RATHER THAN CHANGING THEIR EXISTING FUEL MODELS TO ELECTRIC VERSIONS."

According to Ruth Shearn, people’s attitudes are also limiting their popularity. She comments: “Charging infrastructure, although getting better, still needs to be improved, while changing peoples’ attitudes is also a challenge. “Some people don’t care about the environment and will always be proud and loud petrol heads. Hopefully, as increasing numbers of ‘status’ brands enter the market, they’ll eventually change their ways!”

Sarah Hartley

But despite these potential barriers, many business leaders believe it’s just a matter of time before electric vehicles become more commonplace. Steffen Brans comments: “I’m very convinced that the popularity will grow because of the growing carbon/eco-friendly awareness. From a business point of view, there are several economic reasons to choose EVs as well as being eco-friendly. I dare you to drive electric for a week and go back – it’s so much more comfortable!” Peter Gibbons, Managing Director of fullservice advertising, marketing and design agency Sprague Gibbons, and driver of a

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Tesla Model 3 performance, agrees that electric vehicles will become more popular. He says: “The tide has turned and as the charging infrastructure advances and the battery technology improves (and the range increases), then the reasons to drive a combustion engine vehicle will dramatically decline. Added to which is the realisation that we can’t all continue to drive polluting vehicles. “The only thing holding back the sales of EVs will be the initial purchase price, but I think we’ll see prices starting to slide as the big manufacturers battle it out for market share.” Whilst there are still some hurdles to overcome to allow electric vehicles to reach maximum popularity, if the UK government is serious about tackling climate change, surely it’s only a matter of time before charging infrastructure advances and the affordability of electric vehicles improves. And once those things happen, we’d be surprised not to see more EVs surging up and down UK roads. 

FEATURE

What EVs do business leaders drive and what is their favourite part about it? James Bidwell, Co-Founder and Chairman of Re_Set: “I drive a dark blue BMW i3S. It is so well thought through and just great fun to drive. The interior is sustainably sourced with recycled panels and sustainably harvested eucalyptus around the dashboard. It also goes like smoke!” Darren Sweet, Dealer Principal at City West Commercials: “Mercedes Benz EQC – love how quiet the vehicle is when driving and the built-in technology is amazing.” Roger Proctor MBE, Chairman, Proctor + Stevenson: “I drive a Kia e-Niro. Apart from the fact that it is electric, my favourite part about is that it has a 300-mile range. And it is an ‘intelligent’, well designed car.” Sarah Hartley, Director at Click Spares: “I have been driving a Renault Zoe GT for the past year. I chose it because it was the best-performing EV in its price range at the time of buying it.” Ian Hughes, CEO at Consumer Intelligence: “I drive a Mercedes EQC and I have to say I never, ever get tired of the acceleration; it’s always there and the torque is amazing.”

"I DRIVE A KIA E-NIRO. APART FROM THE FACT THAT IT IS ELECTRIC, MY FAVOURITE PART ABOUT IS THAT IT HAS A 300-MILE RANGE. AND IT IS AN ‘INTELLIGENT’, WELL DESIGNED CAR.” Roger Proctor MBE

Sarah Hartley Click Spares

Tony Donnelly, CEO at Goodwood Corporate Mobility: “I drive a BMW i3 with a Range Extender. I like its compactness and ease to drive. Its acceleration prowess is another attribute. I have a real range of 180 miles (the car says 215), but using the facilities (heating/aircon and radio) it averages 180.” Tamara Roberts, CEO of Ridgeview: “We have a BMW i3. I love its design and that it’s fun and easy to drive.” Alan Cooper, Founder of Freestyle: “I drive a Polestar 2. I love the performance, but my favourite feature is the intelligent headlights; they keep me entertained for hours, but I’m not sure whether the surrounding road users get a bit confused.” Elizabeth Heron, CEO, OrangeDoor: “When choosing my electric car over two years ago, I needed to find something with a wow factor. The Jaguar I-PACE is that. I love its gorgeous red leather bucket seats – straight off a racing car – its panoramic roof, and of course, its speed.”

Steve Lodge The Oxygen Agency

Steve Lodge, Managing Director, The Oxygen Agency: “In our household we have the second Mitsubishi Outlander PHEV and a new Hyundai KONA, which is all electric. The Outlander is practical for trips down to the south of France and is a joy to drive. “The electric motors power the wheels and make it smooth and responsive, and its capacity for family trappings is excellent. The KONA makes a commute extremely affordable, and I'm doing 90 minutes

December/January 2022

a day. It easily provides 250 miles on a charge, so I have never been left short of juice.” Peter Gibbons, Managing Director at Sprague Gibbons: “Tesla Model 3 performance. My favourite parts are the minimal running costs, the acceleration and quietness of the vehicle.”

Toby McCartney, CEO of MacRebur: “I drive the Jaguar I-PACE. I love its acceleration from zero to 60 in four and a half seconds. You just push the accelerator and away it goes.”

Gordon MacPherson, Managing Director at The Retailer Group: “MINI in Chili Red. It’s fun to drive and economical.” Chris Ormrod, Managing Director of The Flavourworks: “It’s the Mercedes EQC. My favourite part is that it’s not a Tesla. Plus, I just love the quietness around town.”

“TESLA MODEL 3 PERFORMANCE. MY FAVOURITE PARTS ARE THE MINIMAL RUNNING COSTS, THE ACCELERATION AND QUIETNESS OF THE VEHICLE.” Peter Gibbons

Carl Huntley, Chief Executive at Base Architects: “Audi E-Tron 55 Quattro. I bought the car as it has some off-road capability and as an architect, some of our sites are difficult to access. This model has a range of between 220 and 250 miles, so I rarely need to charge at an external charging point.” Nick Broom, CEO at PVL UK Ltd: “As a self-confessed petrol head, I struggled with the concept of no noise and no engine, but a few motorway journeys and the frankly incredible acceleration of the Tesla, combined with significantly reduced running costs and emissions, made me re-consider.” Dominic Ponniah, CEO at Cleanology: “Tesla, and my favourite part is the supercharger network on the motorways. As I am travelling more and more outside London, it’s great to be able to stop for 20 minutes on a long trip to plug in and charge whilst you grab a coffee/ sandwich. It’s incredibly quick, no other car compares.” Ruth Shearn, Founder of RMS: “After doing lots of geeky research, I opted for a Kia e-Niro because its reviews across all aspects of performance were all positive. It was also priced sensibly. My favourite part is its phenomenal acceleration, which is doubly satisfying as I’m also helping protect the planet.” Steffen Brans, CEO of EEVEE Mobility: “A BMW i8. It’s not 100% electric, but I’m lucky to have had the chance to test several other EVs for a week or so, such as an Audi e-tron and a VW ID.4. My favourite part about driving an EV is the sound – there is none.”

Toby McCartney MacRebur

Tim Cullis, CFO at BPL Global: “I chose a Volkswagen ID.3 for its price and range, as well as the extras I could get within a realistic budget.” Liverpool-based property developers, Ion Development: “Our team have Jaguar and Kia. The running costs are, of course, exceptional. But also, the responsiveness, they are quick off the mark, and on a more sensible level, regenerative braking means you get rewarded for sensible driving.”

Chris Ormrod The Flavourworks

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Ruth Shearn RMS

Greg Gormley, CEO of SKOOT: “My car is the Porsche Taycan, which is an amazing vehicle. Never have any issues with range anxiety and only charge the car every four to five days.” 

FEATURE

Looking ahead to 2022 With the New Year fast approaching, Business Leader spoke to some of the UK’s leading industry figures to find out their plans for the 12 months ahead, as well as a poignant look back at a challenging 2021. With the Covid-19 pandemic still causing issues, the fallout of COP26, and a year of political uncertainty ahead – what will happen in 2022? 58

December/January 2022

LOOKING AHEAD TO 2022

Sophie Parkhouse Technical and Training Partner Albert Goodman

Dave Crew Head of Business Growth and Employer Partnership Weston College

THE PANEL Sophie Parkhouse (SP) Technical and Training Partner Albert Goodman Dave Crew (DC) Head of Business Growth and Employer Partnership Weston College Andrew Tavener (AT) Head of Marketing Descartes UK Simon Robinson (SR) Director Red Diamond Executive Headhunters Kate Lawlor (KL) Chief Executive Bruntwood SciTech Dan McLeod (DM) Commercial Manager The Boutique Workplace Company Ian Fernandes-Johnson (IFJ) Managing Director Independent Design House Nick Barthram (NB) Founder Firehaus James McQuivey (JM) Vice President and Principal Analyst Forrester

Andrew Tavener Head of Marketing Descartes UK

Simon Robinson Director Red Diamond Executive Headhunters

Kate Lawlor Chief Executive Bruntwood SciTech

COULD YOU GIVE YOUR REVIEW OF 2021 FOR YOUR BUSINESS? DC: “2021 has been a challenging yet rewarding year. Our overall aim as a business is to support others and create brighter futures, which is something that we have definitely achieved this year!

SR: “2021 has been a very strong year for Red Diamond Exec, even though the market has been turbulent. The biggest highlight was the launch of our sister company, Red Diamond Recruitment, that will focus on middle management assignments.

“When it comes to individuals, we have seen more than 30,000 successes; these range from apprentices, trainees, full-time learners and adults looking to reskill/ upskill. In a world where we are seeing record numbers of people unemployed and businesses needing higher skilled workers, we are delivering the training needed.

“With the growth that we have seen, the biggest challenge has been to keep delivering our service to the same high standards as usual, while establishing relationships with new clients.”

“We have also continued to buck the national trend on apprenticeships, recently smashing our 300 apprenticeships in 100 days target.” AT: “This year presented significant challenges and opportunities from Brexit, the Covid-19 pandemic, increased online shopping and demand for home delivery, driver shortages and environmental constraints, such as clean air zones. “The lessons for businesses of all sizes is to seek expert help and advice and plan well ahead. The companies that transitioned smoothly into post-Brexit trading did so because they put systems and process in place in 2020 before the deadline of December 31st.”

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KL: “This was a big year for Bruntwood SciTech. We kick-started the year with the acquisition of Melbourn Science Park in Cambridgeshire, expanding our network of innovation districts into the Golden Triangle, announced a new strategic partnership with innovation specialists TTP and opened No1 and No2 Circle Square in Manchester, providing 400,000 sq ft of new commercial workspace for science and technology businesses in the city. “It was also a year in which we broke ground or ‘topped out’ on some of our most significant new developments. This includes Base – a new £21m specialist hub at Manchester Science Park for businesses working in Industry 4.0, which will also include a vocational training hub for upskilling local residents to support the highly skilled work needed by the life sciences and tech sector.

FEATURE “In Birmingham, construction started on Enterprise Wharf, our new £33m, 120,000 sq ft smart-enabled home for the city’s tech and digital sector, and on the first phase of Birmingham Health Innovation campus, which will provide much-needed specialist office and lab space for innovative life science and digital healthcare companies. “We were also selected by the University of Dan McLeod Ian Fernandes-Johnson Nick Barthram James McQuivey Manchester as their JV Commercial Manager Managing Director Founder Vice President and partner for the £1.5bn The Boutique Workplace Independent Design Firehaus Principal Analyst Company House Forrester ID Manchester, which will accelerate the city’s global standing as a home to innovation DC: “In 2022, we will be looking to "It sounds stressful but it should also be comparable to locations such as San continue supporting our community, really exciting!” Francisco and Boston.” providing local people with opportunities WHAT ARE THE BIGGEST CHALLENGES WHAT ARE YOUR PLANS FOR 2022? to change careers, learn new skills and FOR THE NEXT YEAR AHEAD? SP: “In 2022, we plan to launch a new develop their professional attributes. NB: “The challenges that start-ups and five-year strategy for our business and to “We will also be delivering multiple scale-ups face won’t change dramatically increase the focus on our road towards skills bootcamps, which is part of the at the stroke of midnight, but there are Net Zero – the formal commitment for Government’s Plan for Jobs scheme, which some enduring themes for 2022. which we launched in line with COP26 in seek to provide an opportunity for people November. “You have to move on from what worked to get back into work and/or to progress for your early adopters as your business “Part of this will also see us looking to their careers, as the economy bounces scales; to grow, companies need to tap actively engage with businesses to support back from the impact of the pandemic. into a wider audience who are more their sustainability journey. This will involve “Sustainability is also a very hot topic for risk-averse and less engaged. This the expansion of our Streamline and us, and we will be seeing changes across means switching from product features Energy Carbon Reporting work, which the organisation which seek to positively to becoming known principally for the is only mandatory for large businesses impact our planet.” problem you solve. at present. However, it is a very clear framework for measuring and reporting on the use of carbon and is something which we see as being relevant to all businesses who are looking to consider their impact on the environment.”

"YOU HAVE TO MOVE ON FROM WHAT WORKED FOR YOUR EARLY ADOPTERS AS YOUR BUSINESS SCALES; TO GROW, COMPANIES NEED TO TAP INTO A WIDER AUDIENCE WHO ARE MORE RISKAVERSE AND LESS ENGAGED." Nick Barthram

AT: “To continue to support business of all sizes in the UK improve their operational efficiency, customer satisfaction and regulatory compliance in logistics and supply chain operations. The past 18 months has highlighted how important logistics and supply chain management is in all sectors. Software as a Service technology is available to help in all logistical operations from filing customs declarations to routing and scheduling of vehicles.”

“If you want to grow as a business, then you need to invest in communications. Spending on advertising shouldn’t be a sign that a brand is not working. As long as you’re working from a strong business idea, investing in brand communications will help you grow faster.

SR: “We are looking to recruit further Head Hunters for the Executive Search business and also further consultants for Red Diamond Recruitment. Once these pieces of the jigsaw are in place, we will then need administration support. We are also planning to move to a larger office, so we can accommodate further colleagues.

December/January 2022

LOOKING AHEAD TO 2022 “You also need to be competitor-aware. A unique innovation doesn’t mean a new business category. Businesses are competing on problems, not products, which means their competition is anyone who also solves that problem, no matter how they do it.” IFJ: “2022 will be challenging for the construction industry: it will be the brave, bold, forward-thinking businesses, who have looked after their cash flow, that will flourish.  “The industry needs to prepare for cost and availability of materials to worsen, with record highs in percentage increase across all requirements, companies need to start preparing now. The UK skills shortage will also continue to have an impact; wages will rise, and training staff will become paramount. “Ultimately, I think 2022 will bring more short-term thinking and we must ensure that diversity improvements don't take a backwards step. The gap between the top and bottom companies will widen even more. I think we will see record-breaking turnover and profits for certain companies. The industry's digital transformation will start to slow as business becomes increasingly cost-driven. We can expect new, large-scale projects mainly from the public sector – private companies will wait, if they can, to commit to their builds.” DM: “2020 and 2021 saw a huge change in the way people work. More people are now opting into flex space because it offers low risk to occupiers, improves wellbeing and is the only single solution for hybrid working helping businesses attract and retain talent. There has been a massive increase in the call for unique, high-quality

and specialist co-working office spaces, and this demand will only grow as we head into 2022. As competition increases to meet demand, the challenge will be ensuring offices are able to meet the needs of hybrid and remote workers and provide outstanding quality that can evolve to suit their new priorities.” DC: “Investing in skills is key to recovery, and with many industries finding that they need further assistance, one of our biggest challenges is to ensure that we are there to support these needs. “In Further Education (FE) we have seen cuts across the board in previous years, and in order for our sector to deliver the training required for the country to build back better, we will need to see an increase in funding – something which Chancellor of the Exchequer, Rishi Sunak promised recently in the spending review.” SP: “Lockdown has taught us that we can work in different ways, remotely and flexibly, but just because something is possible, doesn’t necessarily mean that we should continue to do it, or that it is the best thing for our people, our clients, the business and the environment. “Full opening of all areas of business has only been possible since the middle of the year, meaning that some industries have not yet had six months of hybrid working. The impact of this will need to be assessed with all stakeholders being considered and a balanced way then found as to how we should best continue to operate the business. “Attracting and retaining the right talent that fits our culture will be both challenging and important in 2022 as we seek to continue growing in a sustainable way.” WHAT WILL THE BUSINESS WORLD LOOK LIKE AT THE END OF NEXT YEAR? JM: “One third of companies will fail at anywhere-work and it won’t be the virus’ fault. These failures will come from leaders who claim they support hybrid work but still design meetings, job roles, and promotion opportunities around face-to-face experiences. Other failures will come from the 30% of companies who insist on a fully in-office model but find that their employees simply won’t have it. “Also, executives will see that capping growth in human employment while making investments in intelligent

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automation allows a company to solve several talent gaps at different levels and roles. Forrester predicts one bold firm will declare this strategy, shifting its future net ‘employment’ gains to software.”

"THE GAP BETWEEN THE TOP AND BOTTOM COMPANIES WILL WIDEN EVEN MORE. I THINK WE WILL SEE RECORD-BREAKING TURNOVER AND PROFITS FOR CERTAIN COMPANIES." Ian Fernandes-Johnson

DC: “With hybrid working becoming the new normal for many organisations, I think we will see employees that will want a better work/life balance, and organisations will need to meet these changing demands to not only attract staff, but also keep hold of their top talent. “We are starting to see the impact of Brexit and the pandemic on businesses in the UK – especially when it comes to supply chains, and I can see further difficulties arising, with rising costs for businesses. Businesses will need to think outside of the box to meet their targets, in a changing and challenging environment.” AT: “Companies that use the latest technology to streamline trade with the EU or maximise their delivery density from vehicles without adding new drivers will be well placed to exploit the situation as the economy ramps up after Brexit and the Covid-19 pandemic. That’s why it is so important to take the steps now and invest in technology that will make a difference. “With more focus on environmental matters, hopefully we will see businesses take their responsibilities seriously and do whatever they reasonably can to protect the world we all live in.” SR: “I believe that the business world will be very positive. We will be a further 12 months down the line from Brexit and Covid-19, so we should be in a good position to understand where we sit. Also, due to the challenges of Covid, we need to grow as an economy. This means investment from the government and the creation of jobs and careers, which is a good place for a recruitment business!” 

REVIEW

‘Fintech is no longer a subsector of financial services it is financial services’ For our latest tech feature, we look at the fintech space to see what trends are shaping this burgeoning vertical. Statista revealed in September this year that investment into businesses in the industry totalled $24.5bn in the first six months of the year. And according to professional services firm KPMG, the UK makes up 10% of the world’s fintech market. KALIFA REVIEW 2021 was a landmark year for the industry too - largely due to the impact of the Kalifa Review. Published in February, the independent report into the fintech sector

by Ron Kalifa OBE made suggestions on how to create highly-skilled jobs across the UK, boost trade, and extend the nation’s competitive edge over other leading fintech hubs. It also set out a series of proposals for how the UK can build on its existing strengths, create the right framework for continued innovation, and support UK firms to scale. Victoria Roberts, Director of Fintech Delivery Panel and Insurtech Board at Tech Nation, comments on the importance of the Review: “The Kalifa Review provides the future strategy to ensure the success of UK fintech over the next decade and beyond. The Review brought the sector

together to scope and support the next stages of fintech growth, be it across the whole of the UK, further afield through exports, increasing access to finance or welcoming global talent. It’s great to see so many of the recommendations now springing into action, such as the Financial Conduct Authority’s Scalebox and the Centre for Financial Innovation and Technology.” Stuart Harrison, Director of FinTech West, explains how the Review has changed the landscape for the wider financial services sector going forward. He comments: “Fintech, like many tech sectors, saw strong growth and growing interest this year. This was compounded by the high-profile release of the Kalifa Review. It was almost as if, from that point on, fintech became mainstream and front of mind for everyone. We have now reached the point that fintech and financial services are inseparable. A digitally transformed financial services business, without knowing its history, can look and behave like a fintech.

December/January 2022

FINTECH

Victoria Roberts Director of Fintech delivery panel & Insurtech Board Tech Nation

Stuart Harrison Director FinTech West

“Fintech is no longer a sub-sector of financial services – it is financial services. Most, if not all, financial services businesses who are not transforming risk are being left behind and will not be viable in today’s mobile banking, payments and money management world.” TRENDS AND DEVELOPMENTS There have also been other developments in the space, aside from the Review. Hannah Skingle, Senior Marketing Associate at Beauhurst, comments: “Further catalysed by the pandemic, the rush to digitisation means that financial technology is more popular among consumers, and more attractive to investors, than ever before. According to the City of London Corporation, the UK has one of the highest fintech adoption rates in the world at 71%, compared with the global average of 64%.”

"MOST, IF NOT ALL, FINANCIAL SERVICES BUSINESSES WHO ARE NOT TRANSFORMING RISK ARE BEING LEFT BEHIND AND WILL NOT BE VIABLE IN TODAY’S MOBILE BANKING, PAYMENTS AND MONEY MANAGEMENT WORLD." Stuart Harrison

Hannah Skingle Senior Marketing Associate Beauhurst

Steve Lomax COO MarketFinance

Alongside the high adoption rates within the UK business community for the latest industry developments, one of the most notable trends is the expansion of the subsectors within fintech. Financial services cuts across many areas of business – and this is no different for the technology side of the industry. Fintech has evolved to create insurtech, regtech, wealthtech, paytech, cryptocurrencies – and much more. It is these areas that have helped drive the growth of the fintech sector. Roberts explains: “There’s been some fantastic developments across challenger banks, payments and regtech in the last year, but 2021 has been the year where UK insurtech has truly thrived. In March, UK insurtechs had already raised $187m in investment, more than half of the total UK insurtech investment in 2020 and witnessed the first insurtech unicorn, Zego. The rest of the year has seen the sector go from strength to strength with new raises for Bought By Many, Tractable and Marshmallow, also projecting them to unicorn status with valuations over $1bn. "We’ve also seen increasing appetite from insurance companies to partner and work with insurtech innovators, as many of the largest institutions from Aviva to Lloyd’s to Admiral signed up to the UK’s Fintech Pledge.” When looking at why these subsectors have achieved such rapid growth over the last year, the impact of the Covid-19 pandemic

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Karim Haji EMA and UK Head of Financial Services KPMG

and the influx of digital transformation has been critical. Steve Lomax, COO at MarketFinance comments: “In terms of why there has been an increase in activity, you can look at the point that Bill Gates made in 1994 – ‘Banking is necessary, banks are not’. This seems to be increasing in relevance as customers become more demanding and advanced technology provides increasingly innovative solutions. Consumers and businesses are getting more and more comfortable obtaining access to financial products through sources other than traditional providers. “Large technology-led platform and application companies are seeing this happening and are looking to extend their solution set to their customer base. Often, they’re doing this by integrating fintech providers into their ecosystem to provide frictionless access to financial solutions from their interface or app. Additionally, we are also in the stage of market evolution where many different categories and subcategories are forming, just as happened in the evolution of the SaaS world. As these categories and sub-categories form, they present further opportunities for startups, for investment, and over time, M&A, to consolidate and/or gain additional capability at speed.”

Cont. 

REVIEW FINTECH INVESTMENT With regard to the levels of funding within the fintech sector during 2021, there has been an impressive amount of growth across the industry. Karim Haji, EMA and UK Head of Financial Services at KPMG, shares his thoughts on the current state of the global fintech industry. He comments: “2021 has been an incredibly strong year for the global fintech market. In the first half of the year, our Pulse of Fintech report found that overall fintech investment surged to a record high as investors, particularly corporates and VC investors, made big bets on market leaders in numerous jurisdictions and across almost all fintech subsectors (digital lending, digital banking, payments, insurance, wealth, capital markets etc). “Globally, fintech investment surged from $87.1bn in H2 2020 to a record $98bn in H1 2021. Significant cash available for investment, increasing diversification in hubs and sub-sectors, and strong activity across the world contributed to the record start. Fintech valuations remained very high in H1 2021 – a likely driver in the explosion of unicorn births with 163 created in the first half of the year.” Regarding the current state of the UK investment market within fintech, Skingle explains: “Investors are putting huge quantities of money into the increasingly competitive sector, with £5.05bn of growth capital deployed to fintech firms between Q1 and Q3 2021, across 241 funding rounds. This compares with £2.51bn of equity invested across 272 in the whole of 2020. In 2021 so far, 30p in every £1 invested into the UK’s private economy has been funnelled into fintech firms. “And not only is fintech the most dominant of the UK’s start-up and scale-up sectors, it’s also significantly more valuable and faster-growing than others. The median post-money valuation of fintech companies that have raised funding in 2021 stands at £17.3m, and has grown 31% from 2020.

Brexit and ongoing international uncertainty. But how has all of this impacted mergers and acquisitions within fintech? Haji comments: “Cross-border M&A deal values rose dramatically from $10.3bn in all of 2020 to $27.7bn in H1 2021 alone. Following a pandemic-driven slowdown in cross-border M&A, many incumbents and mature fintechs embraced cross-border M&A as a means to gain critical mass at a regional or global level or to expand services and capabilities.” GLOBAL COMPARISON Despite the challenges currently facing global economies and various sectors, it is clear that fintech is currently experiencing an impressive level of growth and innovation – but where does the UK sit within the global industry? Expanding on the levels of investment, Haji comments: “The UK’s reputation as a historic financial services sector and ongoing work to nurture fintechs, from testing through to listing, makes the UK a magnet for investment. The UK saw a staggering $24.5bn of investment in the first half of 2021. The UK’s total was second only to the US ($42.1bn) and over four times the level of investment seen in the UK through the entirety of 2020 ($5.9bn).

But why has the UK achieved such high levels of interest from investors? Harrison explains: “The UK has been one of the leaders, perhaps even the leader, in driving the move from legacy financial services to the adoption of fintech technology. We’re well placed to do this with strengths both in financial services and technology innovation. Critically, support from the regulator, the FCA, has been driving innovation and competition whilst maintaining high levels of trust and authority – for which it is recognised worldwide. "Although the US, perhaps unsurprisingly, leads the world in investment terms, the UK stands in second place with 2020’s investment figure being more than the combined total of the next five European countries.” CHALLENGING TIMES With the UK and London being a global hub of innovation, investment, and an increasing number of disruptive entrants to the market, the fintech sector is experiencing its highest levels of interest in its history. However, experts are warning of difficult times ahead. Skingle comments: “It’s not all sunshine and rainbows for the

"The investment total was boosted by the $14.8bn Refinitiv deal and the record volume of deals completed (283) the most since the report began. In particular, VC investment surged with fintech-focused VC investment in the UK reaching $6.2bn, more than double what we saw in H2 2020.”

"For the rest of the UK’s start-up and scaleup population, the median valuation stands at £6.6m in 2021, having grown 27% from 2020.” M&A ACTIVITY It’s clear that the level of funding within the global and national fintech industries has seen an impressive level of growth, despite the challenges presented by the pandemic,

December/January 2022

FINTECH sector. There are some warning signs in the data, with investor interest focussed increasingly on venture-stage companies, with little growth in activity at the seed stage of evolution. The seed stage of evolution represents the earliest-stage start-ups and the next generation of innovative scale-ups.

COMMENT

“Deal numbers into venture-stage fintechs increased 148% between 2015 and 2020, compared with just 51% growth at the seed stage. Without initial investment, many young fintechs will struggle to develop their offering, bring their products to market, and meet the regulatory requirements they need to get off the ground. So, this mismatch in activity between different stages of evolution may well result in a depletion in the pipeline of future fintech unicorns.” And much like other important industries, the everpresent ‘skills shortage’ will start to have an impact as fintech continues to grow. Lomax says: “The opportunities to use technology, data and insight to disrupt the traditional financial services solution providers is huge. Think about machine learning, artificial intelligence, cloud computing, cryptocurrency, mobile, blockchain, cyber security and biometrics, to name just a few. All of these can add considerable value within the fintech world. And in this environment that is growing so fast, access to the very best talent is a critical differentiator to being able to grow rapidly, innovate, deliver and stay at the very forefront of the evolution.” WHAT’S NEXT? The tech sector is advancing at an incredible velocity, with disruption and innovation throughout its various subsectors becoming an almost daily occurrence. However, there certain areas of the industry that will be having a large impact on the future of fintech – cryptocurrency, blockchain and AI. Haji comments: “The first half of 2021 saw an explosion of activity in the blockchain and crypto space. We’ll likely see this trend continue, with focus stretching across the entire digital assets ecosystem. The space will also likely see a more diverse range of investors considering investments in this area and also an increasing focus on fintech innovating in ESG/climate change.” Harrison concludes: “Fintech is so well established now that in everyone’s eyes there will be no difference from fintech and financial services. People will have multiple banking and financial facilities that are well integrated and offer slick, effective services. We shall see much greater integration with other related, ‘neighbouring’ technologies such as AI, data science, cryptocurrencies, blockchain and cybersecurity. This shall offer more choice and individually tailored solutions that are simply not possible at the moment. With the opening up of financial products being so widely available, you may also find yourself banking with businesses that currently you might not imagine as a financial services provider.”

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Dominic Bourquin Tax and Corporate Finance Partner Monahans

WHY ALL BUSINESSES NEED TO PREPARE FOR A TAX INVESTIGATION HMRC is back with a vengeance. The department knows that Covid-19 support measures were particularly open to fraudulent claims, and they intend to recoup as much as they can. You may be thinking that your business is fine. You know you were entitled to government support. Unfortunately, that may not be the case because defending an HMRC investigation can cost thousands. How much can it cost if I didn’t do anything wrong? Last year, a client of ours was approached by HMRC, demanding the business pay an additional £600,000 in VAT. The client was initially intending to pay the bill, assuming that HMRC would only request such a sum if they were entitled to do so, and not wishing to incur additional costs. However, following a discussion with us, the client decided to challenge the claim. A date was set for a tribunal to determine the outcome, but the day prior HMRC decided to withdraw their case. A happy ending, in theory, except just preparing to take on HMRC involved a bill of more than £50,000. Simply defending yourself against HMRC can run up an almighty bill even when you’ve done nothing wrong. What to do if HMRC contact you It can be daunting when HMRC get in touch – something the department uses to its advantage. Make sure you’re protected and only handing over pertinent information when you are required to do so. Equally, don’t assume that behaving perfectly legally won’t cost you! You might not get a bill from HMRC, but you could get one from your accountant. MHA Monahans Tax Investigation Service is designed to protect businesses in the event of an HMRC inquiry. For more information on the service, please get in touch on 01225 472800 or visit www.monahans.co.uk

T: 01225 472800

www.monahans.co.uk 65

ROUND-UP DEALS

The Business Leader Deal Room Business Leader highlights a selection of significant deals that have taken place in the last few months

FINANCIAL SERVICES

RETAIL The Competition and Markets Authority (CMA) has instructed high street retailer JD Sports to sell Footasylum, after its in-depth investigation identified competition concerns. Footasylum was originally purchased by JD Sports in a deal announced in April 2019. This is the first time ever that the CMA has decided to block or remedy a deal between competitors where it found that there will be no ‘substantial lessening of competition’ in relation to the acquiring business.

HEALTHCARE Thought Leaders, the US-based cannabis & CBD investment company, has announced a $13.25m acquisition of mellow, a UK-based CBD and wellness marketplace. Thought Leaders’ plans include launching mellow into the US, which remains the world’s largest market for CBD products. The move establishes Thought Leaders firmly into the markets of the UK, Europe, and Asia.

LEGAL Talbots Law has become an Employee Ownership Trust (EOT) in what will be a legal first for the West Midlands. Former CEO and main shareholder, Mary Morgan, has taken the decision to sell the majority of her shares to a newly formed Trust that will look to build on the firm’s recent growth and execute a five-year plan that could see the business reach £25m in fees.

Hampshire Trust Bank plc, the fast-growing specialist lender, has agreed to acquire 100% of Wesleyan Bank Limited from Wesleyan Assurance Society, subject to regulatory approval. The deal is expected to complete in the coming months. The combined business will be led by Matthew Wyles as Chief Executive Officer, with Tim Blackwell taking over the reins as Chief Financial Officer.

TOURISM Camptoo – the sharing economy platform that connects the owners and renters of campervans, motorhomes and touring campervans – has acquired Nordic sharing platform Out2Camp. The acquisition is a key milestone for Camptoo, reinforcing its position as one of Europe’s fastestgrowing travel companies and as one of Europe’s most popular sharing economy platforms for campervan hire.

CONSTRUCTION Arnold & Porter has advised project and cost manager Mark G. Anderson Consultants Inc. (MGAC) on its acquisition of London-based property and construction consultants Robinson Low Francis LLP. The purchase gives MGAC, which is currently managing $15bn in construction across North America, an on-the-ground transatlantic foothold in the UK where it has been conducting business over the past 20 years.

RETAIL Gymshark Director and former Chairman, Paul Richardson, has purchased the majority share in streetwear brand, HERA London, and takes the position of Executive Chairman. Under the new management structure, HERA London aims to grow into a £100m fashion label over the next three to five years with Richardson overseeing the company strategy and assisting HERA London into a new phase of its development.

December/January 2022

CORPORATE FINANCE EXPERTS

DONT MISS THIS OPPORTUNITY

To make your exit happen. The UK is currently seeing an extraordinary level of merger and acquisition activity. According to Mark-to-Market data, 3,662 M&A deals have been recorded so far this year - 66% up on the same time last year (2,206). At Shaw & Co we are seeing huge demand for good businesses from buyers with a strong appetite for investment, particularly in sectors such as technology, media and telecoms.

"YOU MUST BE CONFIDENT, ASSURED AND PATIENT ENOUGH TO DECLINE THAT FIRST OFFER." Jim Shaw, Founder & CEO, Shaw & Co

It is never too early to plan your exit and now is undoubtedly a good time to consider your options. It is also especially prudent to know how to deal with an unexpected offer. If this happens, always seek expert advice to ensure you don’t leave significant value on the table or erode any you’ve created. We specialise in business sales and our advisory and transactional support includes: • Business exit planning • Business valuation • Selling to a management team (MBO & MBI) • Selling to another business We also have a specialist debt advisory team that can help management teams raise funding to buy out existing owners.

HOW A GOOD ADVISOR ADDS VALUE TO THE M&A PROCESS

ABOUT US Shaw & Co is an award-winning, independent corporate finance specialist that helps SME owners across the UK to buy, sell, or fund the growth of a business. We have led a number of notable deals recently including the sale of Senta to Iris Software, the sale of Keep IT Simple to The Panoply Holdings PLC and GoProposal to Sage.

We add value by greatly increasing the offer clients have on the table. Here are three recent examples: • Deal 1: Offer increased by 65%. ROI on Shaw & Co fees of 16x. • Deal 2: Offer increased by 100%. ROI on Shaw & Co fees of 16.6x • Deal 3: Offer increased by 175%. ROI on Shaw & Co fees of 21x. These are deals averaging £25m in value, so we are talking about very big numbers to have left on the table if the client had mistakenly gone with that first offer! If you are starting to think about your exit plan, have a management team wanting to buy you out, or have received an offer to buy your business, please feel free to contact us to discuss your next steps.

VISIT: SHAWCORPORATEFINANCE.COM BOOK A MEETING: 0330 127 0100

Our entire approach is focused on helping you achieve your greatest ambitions. We succeed only when you do – whether raising finance, buying a business or selling one you have grown.

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IPOS

IPOs on the horizon As of the end of Q3 2021, almost 1,700 initial public offerings (IPOs) have been launched on stock exchanges around the world – with a total combined value of more than $330bn. Despite the impact of the coronavirus pandemic and the ever-growing global political instability, this total is almost double what was achieved in 2020. Companies such as Bumble, UiPath, The Honest Company, Rivian, Didi Global, Oatly, Robinhood, Coinbase and Squarespace have launched throughout the year via an IPO. Business Leader has profiled four upcoming launches that could happen in 2022.

Discord Founded in 2015, Discord is a VoIP, instant messaging and digital distribution platform used by over 150 million users around the world. The company started out in 2013 as a social gaming platform for video and mobile gaming – but over the past six years it has raised over $700m in funding and is now valued at more than $15bn. Last year, the San Francisco-based company was in talks with Microsoft over a $10bn takeover, but a deal fell through – leading to growing speculation at they will be launching an IPO in the US next year.

Klarna Over the past 16 years, Swedish fintech firm Klarna has risen to become the highest valued firm in Europe within its industry. With headquarters in Stockholm and Berlin, and more than 4,000 members of staff, the company now has a value of more than $31bn. The company’s core services focus on payment solutions for e-commerce firms across the world – primarily their Buy Now Pay Later (BNPL) facility. Klarna will likely launch their IPO in London next year, despite CEO Seb Siemiatowski trying to squash the growing speculation around its future.

iFIT Founded in 1977, the Utah-based sports and wellness tech firm is hot on the heels of its main rival Peloton and is set to launch an its IPO after years of speculation. The company was initially supposed to launch on the Nasdaq on October 5 2021 but ‘due to adverse market conditions’ they cancelled it. However, rumours are circulating that they will be looking towards the second half of 2022 to finally launch their IPO. The company has a current market value of almost $7bn and reported annual sales of more than $1.6bn earlier this year.

Impossible Foods Riding the wave of popularity that vegan brands are currently experiencing, California-based Impossible Foods has become a global brand that creates plant-based ingredients and alternatives to meat products. Founded in 2011, the company has secured over $1.5bn in funding, and should they go ahead with their IPO, they will be aiming to raise more than $500m more, giving them a market value of up to $10bn. Its products are currently sold in 20,000 stores around the world.

December/January 2022

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