SW Business Leader Magazine: July - August 2020 by Business Leader magazine

9 -1 e' ID id V u O G 'C rk 1 r o e2 ou W g e to pa Se ck on a B

South West

July - August 2020

Back to the future Barry Hearn talks about why the basics of business are more important than ever

COVID-19: UK goes back to work Page 21

CEO in Focus: Heather Mills Page 38

Regional Review: Bristol Page 56

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IN THIS ISSUE

10 34 24

Contents

BUSINESS LEADER VISION: INSPIRE

INFORM

CONNECT

IN THIS EDITION

COVID-19 GUIDE

LEADERSHIP

24 Feature: Future of Work Osborne Clarke talk about the furlough scheme and what it means for the UK’s business leaders and their staff

38 Interview: CEO in Focus Meet the entrepreneur who led the vegan revolution before it rose to the prominence it is today

Latest News Breaking business news from around the region

10 Cover Story: Barry Hearn Business Leader sat down with Barry to discuss why the basics of business are more important than ever 14 Fast-Track: Evergen We investigate the story of Evergen Solar, the fastest-growing solar and battery company in the UK

FINANCE 16 Report: Business Funding What is happening to the funding landscape? And what can business owners use to fund growth and acquisitions?

Business Leader - Inspire • Inform • Connect

26 Feature: Business Response Business leaders share their thoughts on what it's been like to run a company in the last few months 30 Survey: Business and Brexit What necessary steps have businesses taken to ensure cash flow resilence?

PROPERTY 34 Report: Commercial Property What will happen to all those empty buildings if we all stay working from home?

42 Top 32 Business Heroes Highlighting businesses and their leaders who have gone above and beyond for their staff, community and wider UK during the COVID-19 crisis

TECHNOLOGY 52 Report: Cyber Security How are businesses embracing remote working with cyber attacks on the rise?

REGIONAL REVIEW 56 Feature: Bristol A city in the grip of existential change – Business Leader finds out what the future holds for Bristol

LATEST NEWS

ENTER NOW: Business Leader Awards receiving record number of entries Inspire • Inform • Connect EDITORIAL Oli Ballard - Editor E: oli.ballard@businessleader.co.uk Barney Cotton - Digital Editor E: barney.cotton@businessleader.co.uk DESIGN/PRODUCTION Adam Whittaker - Senior Designer E: adam.whittaker@businessleader.co.uk Melissa Larkin - Website Development E: melissa.larkin@businessleader.co.uk Ben Matthews - Digital Communications E: ben.matthews@businessleader.co.uk SALES Sam Clark - Business Development Manager E: sam.clark@businessleader.co.uk Emma Filby - Business Development Manager E: emma.filby@businessleader.co.uk CIRCULATION Adrian Warburton - Circulation Manager E: adrian.warburton@businessleader.co.uk ACCOUNTS Jo Meredith - Finance Manager E: joanne.meredith@businessleader.co.uk MANAGING DIRECTOR Andrew Scott - Managing Director E: andrew@businessleader.co.uk

The South West Business Leader Awards are open for entry – and already some of the South West’s business elite have put their names forward for this prestigious event. With entries open until August 14th, there is still time to send in your entry. The Awards are the region’s most well-respected celebration of success and its September event is now a permanent fixture in the diaries of business leaders, entrepreneurs, and professionals across the South West. To ensure the event continues – but respects the current situation – a new schedule and timeline of milestones has been launched.

No part of Business Leader Magazine may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior written consent of the editor. Business Leader Magazine will make every effort to return picture material, but this is at the owner’s risk. Due to the nature of the print process, images can be subject to colour variation of up to 15%, therefore Business Leader Magazine cannot be held responsible for such variations.

If you would like to get involved or have any news you would like to share, please contact us on 020 3096 0020 or email: editor@businessleader.co.uk. Follow us on social media

BLA’s independent judging panel will analyse the entries ‘virtually’ or in person, where safe to do so, in August and September. Following this, the finalists will be announced in October – and the winners will be revealed in November. In February/March 2021, the finalists, winners and sponsors will come together for a celebration dinner. Founder of the Business Leader Awards, Andrew Scott, comments:

 Sponsor Paul Falvey of BDO with winner of the Business Leader of the Year award, Nick Sturge and Host Michael Portillo

“Our awards have become the mustattend business event of the year in the South West. However, with the impact of COVID-19, we have had to adjust the way we do things this year. “I encourage all companies and entrepreneurs to send in their entries for this years’ event, to highlight the strength of the region as we move through these tough and unprecedented times together.”

If you have any questions, or would like to speak to the Business Leader team about our limited sponsorship opportunities, please call 0117 325 779 or email editor@businessleader.co.uk. July - August 2020

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LATEST NEWS

£70m investment deal major vote of confidence for Bristol Cubex has secured a major investment deal for its sustainable landmark office building at Finzels Reach, as construction works get into full swing. The deal is a positive boost for the city, considering the challenges the UK is facing due to the COVID-19 pandemic. Tesco Pension Investment have paid nearly £70m in a forward funding deal with Cubex and its initial funding partner, Fiera Real Estate. Construction works are now well underway, with the building currently scheduled for completion in spring 2022.

CGI of Halo office building on former fire station site at Finzels Reach, Bristol City Centre

Peter Walford, Director at Cubex, comments: "This is a very significant office investment deal for Bristol, particularly in the current economic climate, and reflects not only the quality of the building we are developing but the strength of interest from the property sector in the city."

Helmet firm secures £6.7m funding package

A Gloucester business which sells its snow sports and motorcycle helmets to customers across the world, has secured a £6.7m finance facility from HSBC UK to expand its growing product range. Ruroc, which created the world’s first full face snow sports helmet in 2011, is using the funding to launch a number of new products to support its 2020-21 performance targets. James Shepherd, Head of Corporate Banking South West, HSBC UK, commented: “Since we started working with Ruroc again in autumn 2019, we’ve seen the business go from strengthto-strength, despite current economic uncertainty. The company’s solid financial history and growing revenues have put it in a very strong position to meet rising demand and launch new products into new markets at the same time.” 4

Barclays provides for South West men’s fashion retailer Barclays has provided funding to support one of the largest independent men’s fashion retailers in the UK, based in the South West, through the government-backed Coronavirus Business Interruption Loan Scheme (CBILS). Established in 1979 with the launch of its first store in Swindon, John Anthony [Swindon] Ltd, has since added four additional retail outlets at prime locations in Bath, Bristol,

Bournemouth and Southampton. Mark Brewer, Director at John Anthony, said: “Barclays has supported us over recent times even before COVID-19 hit, by helping us to shape and move the company forward. The CBLIS funding will provide a lifeline in what are very uncertain times and to plan ahead for when the lockdown restrictions are eased and consumers can once again shop on the high street.” July - August 2020

LATEST NEWS Andy Rogers, Co-founder, Amdaris

Wiltshire IT firm announces strategic merger A Wiltshire IT company has completed a strategic merger with an IT firm in Bristol, after securing a six-figure finance facility from HSBC UK, in a deal that was concluded at the height of lockdown. MDS Technologies, which designs, builds, and manages cloud infrastructures, platforms, and IT solutions, predominantly for large public sector clients, has used the funding to acquire Bristol IT Company, which provides IT services for the private SME market. The HSBC UK funding will also be used to create highly-skilled jobs for

the regional economy over the coming months and years. Simon Jacobs, Managing Director of MDS Technologies, said: “Having identified Bristol IT Company as the ideal business with which to increase the breadth and depth of services and capability available to our existing and future customer bases, all parties were excited to drive the deal through to a successful completion.” The merger was supported by Clarke Willmott, RSM, Temple Bright and Milsted Langdon.

Stress-test your business model with this online, interactive Innovation Workout. Forward-looking business leaders and founders are preparing for a new, post-pandemic, global environment for innovation. Join them and join SETsquared, the Global no. 1 business accelerator, to get your business fit for innovation, and ready for growth.

Business Leader - Inspire • Inform • Connect

Amdaris receives £6m investment to support growth strategy BGF has invested £6m in Bristol-based Amdaris, a software developer and digital transformation specialist, to support its organic and acquisitive growth strategy. Headquartered in Finzels Reach, Amdaris is one of the UK’s fastest-growing technology companies, employing more than 200 developers averaging 40% revenue growth per annum over the past three years to £7.2m.

INNOVATION WORKOUT  FREE TO ATTEND  Designed for digital innovation businesses  Delivered by expert mentors - online  Dates: 27, 28 & 31 July (half days)  Additional dates throughout 2020

LATEST NEWS

Oak Furnitureland secures pre-packed administration deal National retailer Oak Furnitureland has become the latest struggling firm within the sector to feel the force of the coronavirus-enforced lockdown. The company is set to be sold through a pre-packed administration deal as a result.

Chip receives record £2.6m crowdfund despite current crisis

The chain is set to be acquired for an undisclosed fee by Davidson Kempner Capital Management, a hedge fund, as part of a fast-track insolvency process handled by international accountancy firm, Deloitte.

Chip, an app that automatically saves up money for you, has announced that 4,240 people have crowdfunded £2,575,096 to fuel the firm's future growth.

Founded in 2010, Oak Furnitureland now operates 105 showrooms across the UK and employs over 1,500 people.

Working with Exeter-based Crowdcube, the private round exceeded its £1m target within hours, making it the largest equity crowdfund to be completed in the UK since the lockdown started.

It is believed that Davidson Kempner Capital Management will be reviewing the business, which could lead to store closures and job losses.

The funds will be used to further accelerate Chip’s growth, including the launch of an FSCS protected savings account through a partner bank, with one of the highest savings rates on the market.

The Swindon-based company was founded by entrepreneur Jason Bannister, who was Oak Furnitureland's biggest shareholder, however he will have no involvement in the deal or the company's future plans.

Simon Rabin, CEO and Founder of Chip, said: “We've seen unprecedented growth during these difficult times, which demonstrates that Chip is incredibly useful for putting money aside for safety net and emergency funds. Off the back of this growth, we wanted to share the opportunity with our investor community, and have been overwhelmed by their response.”

UWE launches £1m Digital Innovation Fund to help SMEs In response to COVID-19, the University of the West of England (UWE Bristol) has launched a Digital Innovation Fund to help small and medium-sized enterprises (SMEs) to innovate during these turbulent times. The scheme, funded by the European Regional Development Fund (ERDF), offers £1m of grants to businesses based in the West of England.

Martin Boddy, Pro Vice-Chancellor for Research and Enterprise at UWE, Bristol

Businesses in any sector wanting to use digital innovation to address new challenges that have arisen from COVID-19 have until July 8th to access the grants

worth between £10,000 and £40,000 to fund 35% of project costs. Applicants must be SMEs and based in Bristol, Bath & North East Somerset, North Somerset or South Gloucestershire. Pro Vice Chancellor for Research and Enterprise Professor Martin Boddy comments: "We are delighted to open UWE Bristol’s Digital Innovation Fund, £1m of grant funding to support businesses in the West of England to address new challenges caused by COVID-19.”

July - August 2020

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LATEST NEWS

Multipanel UK secures £9m from HSBC UK The UK’s first and only manufacturer of aluminium composite panels (ACPs) has secured a £9m finance facility from HSBC UK to diversify its product range, move into new markets and safeguard the future of the business amid the coronavirus crisis. Multipanel UK, which is based in Exeter and typically makes ACPs for industries such as sign making, exhibition stand design and architecture, has used the funding to make changes to its core product to meet demand from other

industries for screen materials that can be used in shops, offices and leisure facilities. Andrew Cock, Chairman of Multipanel UK, said: “We’ve been working with HSBC UK for the last 13 years and in that time the team has really got under the skin of the business to fully understand our, often complex, funding requirements. The mutual respect we have for each other meant that when coronavirus hit, both parties were able to move without hesitation.”

The UK-based start-up has developed a disruptive platform that enables genetic testing of biological samples in any setting, at any time, with real-time access to results on its dedicated cloudbased software platform. The solution has applications in the medical, veterinary and agrofood industries and has recently been updated to detect COVID-19 pathogens. 8

Buymie, a same-day grocery delivery company, has today announced the injection of a £5.2m in new funding new investments into its business, to take its total capital raised this year to over £7.2m. This latest investment round was led by a new investor into the business – Wheatsheaf Group, the food and agriculture investment arm of the Grosvenor Estate. Follow-on investments were also committed from existing backers, including: Act Venture Capital, Sure Valley Ventures, Haatch Ventures, and HBAN. Other notable investors include Keith Weed, former Chief Marketing and Communications Officer for Unilever, and Scott Weavers Wright, former Managing Director of Morrisons.com.

TLT completes Series A funding round for biotech start-up Hyris TLT has completed a Series A funding round for biotech start-up Hyris, to help it achieve its ambition to be a global leader in mobile genetic analysis.

Buymie raises £5.2m funding to drive UK expansion

Buymie has just launched in the UK, marking the start-up’s first expansion outside Ireland. The service is initially available in the Bristol metropolitan area, in partnership with The Co-op and other UK retailers. The round was led by Astanor Ventures, with participation from a strategic pool of Italian investors. Stefano Lo Priore, Hyris’ Founder and CEO, said: “We are on a mission to disrupt the market and create a healthier, more trusted food system. "We are excited to join forces with Astanor and grateful to TLT for their support in getting this across the line.” Cross Border Growth Capital assisted Hyris as financial advisor in the fundraising process.

Devan Hughes, CEO and Co-founder of Buymie, added: “This funding round will help Buymie achieve our goal of becoming the leading same-day grocery delivery provider across the UK and Ireland. More and more customers are frustrated by the long waiting times offered by conventional grocery delivery services and delighted with our solution that can deliver groceries in as little as one hour. The success of our Lidl partnership has demonstrated just how much appetite there is for our service, and how important seamless delivery is to retailers’ reputations. They have been a fantastic partner for Buymie.” July - August 2020

LATEST NEWS

DBLX hires former Amazon and bet365 Chief

Rovco signs multi-millionpound subsea contract with CWind

HR-tech company DBLX has hired former Amazon and bet365 head, Dan Macklin, as Chief Technical Officer (CTO).

Bristol-based Rovco, an offshore energy provider of ROV and hydrographic services, has been awarded a long-term contract by CWind for subsea work on the East Anglia ONE offshore wind project. The Rovco team, managed by CWind, will carry out a campaign of subsea inspection and survey work on all subsea structures, informing the maintenance of the wind turbine and substation foundations. The multi-million-pound project will utilise a combined DPII vessel and CTV solution, alongside a Work Class ROV. Brian Allen, CEO and Founder of Rovco, said: “This multi-year framework is further proof that we are leading the way in providing modern services to the offshore energy industry. Being awarded a project of this size and scale by CWind is a testament to our hard work and dedication to technology creation and delivery.”

Dan Macklin (pictured) was part of the senior team at Amazon Web Services, and before that he was Head of Applied Innovation at Lloyds Bank and Head of R&D at bet365. DBLX have hired him to accelerate its innovation and delivery strategy. Macklin said: “I’m absolutely delighted to be joining MCG and DBLX, a company that really wants to do things differently and disrupt the HR-tech industry. I have a passion for building products that help people and teams grow, so am looking forward to bringing some large-tech capabilities to a smaller company that is a pioneer in this space. I have craved a move like this for some time and can’t wait to get started."

Get set for the new normal. Lockdown has meant limbo for many businesses. Marketing has been on hold. But with restrictions beginning to ease, it’s time to start planning for what comes next.

What better time to get creative, come up with new ideas to make your budget work harder and reach audiences in new ways. It’s also a perfect time to review and audit what’s gone before, identifying areas of opportunity. SG provides flexible marketing support to ambitious, forwardthinking SMEs who recognise that smart marketing is the key to success in the post-lockdown economy. Call us on 0117 933 0956, email hello@spraguegibbons.co.uk or visit www.spraguegibbons.co.uk

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Business Leader - Inspire • Inform • Connect

GROWTH

COVER STORY

July - August 2020

BARRY HEARN

'IT’S TOUGH TO BEAT ME' BARRY HEARN TALKS TO BUSINESS LEADER ABOUT INSPIRATION, LUCK AND THE KEYS TO SUCCESS

arry Hearn is the Founder of Matchroom Sport and one of the most recognisable people in the world of business and sport. Here he talks about the price you need to pay for success, and gives some home truths about leadership and business in the UK.

CAN YOU TELL US ABOUT WHAT LIFE WAS LIKE FOR YOU GROWING UP? It is no secret that I came from a very working-class background. My father was a bus driver and my mother was a cleaner; and I enjoyed a very happy upbringing, as children do not want for anything they do not have. But as I grew older, I started to see what other people had and it did not make me envious, it made me become ambitious. My mum always pushed me on and wanted me to do better too; and when I was twelve years old, she told me that I was going to be a chartered accountant. I asked her ‘what do they do?’ and she said ‘I don’t know but the man whose house I clean told me that you never see a poor one'. At that time though I wanted to play sport at a high level, but I did – as she foresaw – become an accountant and qualified when I was 20 years old. WHAT WAS YOUR EARLY BUSINESS CAREER LIKE? I became a Fellow at 25 years old and joined a very good firm, and one day I was overseeing an audit and I told this business that they needed to hire a Finance Director. They agreed and offered me the job, and I joined in 1973. I was the Financial Director of an investment company and after a string of business failures I bought a series of snooker halls for the company, which turned out to be a sharp investment as the sport was just taking off. It was pure luck to find it and around 1975/76 a tall, ginger, skinny kid walked in to one of the snooker halls – and it was Steve Davis. Following this, I bought a stake in this business for a small amount of money and then sold it in 1982. Following the sale, I formed Matchroom Sports.

Cont.  Business Leader - Inspire • Inform • Connect

COVER STORY WHAT WAS YOUR AMBITION AT THIS POINT? Well, I had sold my previous business for a lot of money and for me, at that point, it was about managing a few snooker players and having some fun. I also thought about retiring, but after six weeks of fishing I got bored and I needed to exercise my brain! To do this, I set up Matchroom Sport and focused heavily on promoting snooker and its players. Then in 1987, I became involved in boxing. MATCHROOM SPORT IS ONE OF THE MOST SUCCESSFUL COMPANIES IN THE UK. IN DEVELOPING THE BUSINESS, WHAT WERE THE MAIN CHALLENGES YOU FACED? The world then didn’t exist in the same way it does today, as you only had the BBC and ITV that were interested in sport – you were lucky to get 15 minutes coverage, let along 15 hours!

Barry Hearn with son Eddie at the Carl Froch vs George Groves fight, Wembley Stadium

I HAD SPENT TIME IN THE UNITED STATES AND LOOKED AT ESPN AND THOUGHT WOW, IT WOULDN’T BE LONG BEFORE THIS CAME TO THE UK, SO I WAS CREATING EVENTS IN PREPARATION FOR THIS HAPPENING." Barry Hearn at the Pokerstars Masters launch

I had spent time in the United States and looked at ESPN and thought 'wow', it wouldn’t be long before this came to the UK. So, I was creating events in preparation for this happening, but I overstretched myself by doing this. I was two years ahead of my time, but when a sports-based TV channel came to the UK they would need content and programmes. I was preparing for this, but in doing so I nearly went bankrupt. When I a determined about something though, I take it all the way down the road, and I continued to create content because it put me in pole position for when Sky and others launched. IN YOUR OPINION – WHAT ARE THE KEY TRAITS YOU NEED TO BE SUCCESSFUL? Common sense. I always ask myself about anything I am creating – would I buy this myself? Secondly, I would say work ethic – you need to have a good one.

I WOULD ALSO SAY THAT THE IDEA OF GIVING VALUE TO PEOPLE AND EXPECTING VALUE BACK IS ALSO KEY; AND YOU MUST MAKE SACRIFICES IN YOUR LIFE TO ACHIEVE GREATNESS AND SUCCESS."

July - August 2020

BARRY HEARN My biggest asset is my ability to work whatever hours are necessary. If the product you have is good enough, then your relentless work ethic will pay off. I would also say that the idea of giving value to people and expecting value back is also key; and you must make sacrifices in your life to achieve greatness and success. HOW DID YOU DEAL WITH PEOPLE TELLING YOU NOT TO DO THINGS, OR THAT THEY WILL NOT WORK? I just do not listen to anybody. Or I listen to people and then I do what I want. People are always envious and critical, but you must also listen to younger people who have new and exciting ideas. Listen and learn, but also be prepared to ignore because there are people who fail in life who want to give you opinions. So, I think – if you are right, why haven’t you got the big house? HOW HAVE YOU TAKEN ADVANTAGE OF THE LUCK AFFORDED TO YOU? It’s tough to beat me and it helps if the man upstairs rolls you the odd sweety now and again! For me it was Steve Davis walking in the snooker hall or Sky coming across the hill like a cavalry to save me. Looking at several key times in my career, and I have had some luck, but it’s about making sure that when you’ve had that luck that you maximise it. That you grasp the opportunity and give it everything. You can never be complacent in life and you can never settle for what you have – whether that be a nice house or because you’ve earned your first million pounds. HOW HAVE YOU REACTED TO THE COVID-19 CRISIS? It’s been unbelievable and you can compare it to a world war, as it’s something that changes everything. What you have to do is take stock and then be creative. You must start seeing how you can work in a new environment that we have not come across before. It’s very easy to sit at home and say I’m furloughed and I have enough money, but you need to keep innovating and demanding things from yourself. It is a two-way street, as all of our staff will get 100% of their wages throughout this time but they need to also work hard in return. You find out about yourself in times like these, and I find it motivating. It is about Business Leader - Inspire • Inform • Connect

Barry Hearn attending the PDC Awards

adapting and realising that you might not make as much money as you did before, for a while, but if you can make something – it’s better than nothing. COVID-19 has thrown a curve ball at a level I’ve never seen before. I’m not frightened though, as it will shape us as people.

LISTEN AND LEARN, BUT ALSO BE PREPARED TO IGNORE BECAUSE THERE ARE PEOPLE WHO FAIL IN LIFE WHO WANT TO GIVE YOU OPINIONS. SO, I THINK – IF YOU ARE RIGHT, WHY HAVEN’T YOU GOT THE BIG HOUSE?"

DO YOU THINK SOME BUSINESSES ARE TREATING THE SITUATION AS AN EXCUSE FOR POOR MANAGEMENT? Yes, I think there are many that won’t survive and there are lessons to learn from this. We, as a company, have always been very Victorian and we are savers. Working class people are always looking for somebody to take away what we’ve got. There are many companies where I’m asking – where is the money? Where are your reserves? Why are you in so much trouble? What happens if….? – this is one of the most important questions in business. What happens if the world ends tomorrow? Well, that won’t matter as we’re done for. What happens if the world just stops? Well,

that’s COVID-19 and too many businesses were sleepwalking into it. DO YOU THINK THERE IS A CULTURE IN THE UK OF ‘CASHING IN’ TOO EARLY? Too many people in business have a mentality of let’s get money out as quick as possible and let’s borrow as much money as we can to reward ourselves, without having any focus on creating reserves for a rainy day. And what do these people do now? They go to government crying because they may go bust, because they have not run a proper business. People are going to run out of cash in weeks – not months – and I find that fundamentally flawed in a business plan. The people you employ are your biggest asset and they need to be protected. Nobody wants to stand up and say 'I’ve not run this business very well', but so many business leaders should be ashamed of themselves as the money has gone out in massive dividends or huge director salaries. I believe in success being rewarded, but not at the expense of running a proper business. Lots of companies will also use this time as an excuse to cut their labour force and the furlough scheme has deferred what will be very high unemployment levels. We need to learn from this, as complacency is a killer in business and in life, and people should pay the price for failure. You should be looking at trading your way out of this crisis, not bailing your way out.  13

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FAST-TRACK

FAST TRACK

CREATING A BRIGHTER FUTURE FOR BRITAIN

n each edition of Business Leader Magazine, we profile a business that is currently experiencing exponential growth in a feature called Business Leader Magazine Fast-Track. For this edition, we feature Evergen Solar, the country’s fastest-growing solar and battery company.

Over the last few decades, business leaders have become increasingly aware of the impact they are having on the environment. This has led to a plethora of new ‘green’ energy companies, innovative technologies and a slow move away from the dependence on oil and natural gas. Maidenhead-based Evergen Solar was founded in 2011 by Sukhbir Sidhu – a highly successful tech-focused entrepreneur – and his son Ricky has managed the business since 2015; expanding into air purification technology, as well as adding to its solar panel offerings. As a result, the business has experienced a 143% increase in turnover in the last three years, to almost hit the £10m mark and over 25 members of staff. So, how have they achieved this astronomical level of growth? All suns blazing According to Statista, at the end of 2019 Britain has the cumulative solar power capacity of 13,616 MW – placing it the seventh highest in the world. A decade earlier, that figure was just 27 MW. This growth has undoubtedly helped the business. Ricky comments: “When I set up Evergen, the biggest threat to humanity was GHG emissions (greenhouse gasses) and energy was the biggest contributor. 14

So, we made it our mission to reduce energy consumption in the built environment. We started out installing rooftop solar on homes and have gone on to installing solar batteries and energy management systems on commercial properties and public sector buildings. “There are two sides to the business. ‘ENERGY’ – this involves installing systems to generate or save energy in buildings. And ‘Air Hygiene and Sanitization’ – this is a technology-led endeavour which began in 2016 and the company spends around 2% of revenue in R&D. Today, we provide solutions for protection against COVID-19.” How to achieve exponential growth? With such a crowded and emerging marketplace, it has made the company’s progress impressive – considering the rise in turnover. However, the growth trajectory has been the result of long-term work and planning. One of the main contributing factors has been the change in position the UK government has had towards the sector. Ricky said: “Since 2009 the UK solar industry has been driven by Feed In Tariff. From 2015 this was gradually reduced to zero on April 1 2019. This has caused significant consolidation in the industry, with thousands of companies going bust or getting out of solar. “Evergen has continued to grow for a number of reasons. Whilst most others within the industry have retracted, we have continued to invest in our business, and we have seen the results of our funding – and so have our customers. “In 2013, we started installing on commercial and public sector properties and this diversification has helped. Then, since 2015, we have been working with builders and developers. It can take 18-24 months for the project to complete, but

when the developer moves on to a new project, they stay with us. “Our ‘service excellence’ approach has paid off, as we are getting more referrals.” And by leading the industry and creating an image of providing an elite service, Evergen have managed to eliminate the competition – and increase the number of customers they can supply. As more companies get out of solar, the competition has reduced for the firm, which has led to them diversifying their portfolio. Ricky said: “We have diversified into other areas like energy storage and this has accelerated our growth. Since 2018, we have been investing in developing new energy models and in 2019 invested 1.8% of our revenues in R&D. This is a huge investment for a small private company, but it provides growth and resilience. “We are launching our new ‘social energy’ platform this year and will become the first and only ‘vertically integrated’ energy supplier in UK. We expect our growth to continue. “In the end its about ROI – we have been able to demonstrate 7-8% return on investment on our solar and battery installation. Very few investments available today can offer this level of return at little to no risk.” Shining bright in the solar sector It is clear to see that a strong focus on customer satisfaction has been a key to success for Evergen. Ricky talks more about this: “Our focus has always been the customer experience. We demand 100% customer sign off on every installation. "This is the only way that we can consistently improve our business and we have seen the benefits of that. July - August 2020

EVERGEN

SINCE 2018, WE HAVE BEEN INVESTING IN DEVELOPING NEW ENERGY MODELS AND IN 2019 INVESTED 1.8% OF OUR REVENUES IN R&D. THIS IS A HUGE INVESTMENT FOR A SMALL PRIVATE COMPANY, BUT IT PROVIDES GROWTH AND RESILIENCE." Ricky Sidhu (L-R) Ricky & Sukhbir Sidhu

“Evergen is accredited under the MCS (Microgeneration Certification Scheme) – this is a compliance scheme very similar in scope to ISO9001. We are regulated under the FCA, accredited under the HIES scheme, and have a 5* rating with FEEFO. All this compliance and scrutiny adds to the workload but has given the company tremendous kudos and integrity.” Overcoming challenges Despite the success the company has had, there have been tough times where Evergen have had to adapt to an ever-evolving market. Ricky comments: “The biggest challenges have been managing the turbulence in consumer demand, which for years w as driven by sudden changes in government legislation around the Feed in Tariff. The pressure it puts on resources, cashflow, recruitment, stock and logistics is incredible. For example, last year, the installations carried out dropped by 96% in April when compared to the previous month. “As a business you have to control your expenses to help get through difficult times when sales are down and out of your Business Leader - Inspire • Inform • Connect

Members of the Evergen team

control. The only thing you can then control is your expenses, so working lean is what worked for us.”

"However, post COVID-19, we expect the decision to invest in solar will be driven even more by ROI.

And with more uncertainty facing the world of business and energy – caused by the COVID-19 pandemic – there may yet be the biggest challenge on the horizon. However, Ricky believes that both the company and wider industry will have an increased focus post-lockdown.

“The demand and uptake for solar and battery technology will only ever increase in terms of general trend, as costs of regular energy sources continue to rise. It’s more a matter of timing than anything else, when will the market get back to the new ‘norm’.

He said: “Whilst more and more people are aware and concerned about the environment, this is not a priority when investing in a solar/battery system.

"I believe there is a great opportunity, and with new technologies being developed and deployed around grid share/peer-to-peer energy trading – it is a very exciting market to be involved in.”  15

FINANCE REPORT

NAVIGATING

THE FUNDING MAZE

usiness Leader talked to founders and sector leaders about what is happening to the funding landscape and what levers business owners can use to fund growth, rescue and acquisition in the coming months.

It may have escaped the attention of many but during lockdown London’s junior market, AIM, celebrated its 25th anniversary. Many are arguing that now more than ever, this institution can play a vital role in helping the UK economy to recover from the battering it is taking due to the pandemic. But how are businesses really finding the funding landscape? Especially, considering the proliferation of options that have become available to them in the last few years. Government support in this area, although well intentioned, isn’t always helping as Sam Smith, CEO of finnCap, explains: “To be fair to the UK government, ministers have of course helped provide funding through a variety of mechanisms to companies who need it during the 16

pandemic. However, the fact remains that accessing such low interest loans, under CBILS, has been difficult for many businesses. Indeed, one recent survey found that 53% of coronavirus emergency business loan applications had been turned down. “In addition, despite noble intentions, the government’s £500m 'Future Fund' loan scheme risks exacerbating existing inequalities. That’s because the way the Fund is structured favours companies already backed by venture capital, which the evidence shows disproportionately support those founded by men in London and the South East.” The business perspective You could split the types of funding businesses are looking for between rescue and growth – those looking to survive and those looking to build. One company that falls into the latter category is Callaly, and its CEO and Co-founder is Thang Vo-Ta. He says that raising funds in the past few months has been extremely challenging: "Raising funds in the past few months has been extremely challenging to say the least. Before this unprecedented period we’d July - August 2020

BUSINESS FUNDING

Sam Smith CEO, finnCap Group plc

been able to raise about £8m without any VC funding, but the private investor/angel networks completely vanished overnight between March and May. “This is understandable, given the priorities of non-professional investors. All loanbased government support has been either too small to make a difference or unavailable to a company at our stage, not to mention the applications and process being worse than visiting multiple dentists on consecutive days. "We also have the added pressures of being an innovative start-up with significant and regular capital demands on R&D and manufacturing machinery, plus operating and marketing costs from fulfilling orders.” Thang continues: “We were therefore faced with a decision of whether to dramatically pull back spend to extend our runway until the climate improved, or continue through a difficult period. We chose the latter, opting to ‘trade’ our way out of the challenging environment and in fact to take advantage of the reduced customer acquisition and marketing costs – as well as our products and service being in high demand during lockdown.” On what action he took to resolve the issue, Thang says: “Like most start-ups, the first place we went to raise capital was our Business Leader - Inspire • Inform • Connect

Thang Vo-Ta CEO & Co-founder, Callaly

existing shareholders. However, this has only been successful with the help of hard evidence that we’ve been able to trade during the pandemic, and with a strong and viable plan. “The second part of fundraising has been to launch an equity crowdfunding campaign. As a community-focused B Corp, giving our community a chance to own a piece of Callaly has always felt like a natural next step. “Meeting a new, diverse set of investors on Crowdcube also appealed to us, and we knew that 10 fellow B Corps (including Finisterre, Pip & Nut and Mindful Chef) have successfully raised more than £20m on Crowdcube over the years. Crowdfunding therefore made great sense as a platform to accelerate our fundraising plans.” Borrowing levels to rise Thang’s story shows the level of flexibility and ingenuity businesses are showing during this period to remain innovative and on track for growth; with crowdfunding and equity release clearly still an option that is in play. But what about debt and borrowing for businesses? Tim Boag is the Group Managing Director for Business Finance At Aldermore and his firm recently carried out a study which

Tim Boag Group Managing Director, Aldermore

looked at anticipated debt borrowing levels for companies. He explains: “Our latest research reveals that the UK’s small and medium-sized enterprises (SMEs) expect to borrow £48.3bn to support their business, following the COVID-19 outbreak. “More than three in five (61%) SMEs anticipate borrowing nearly £65,000 in the following 12 months after the outbreak. Speedy access to funding (23%), higher levels of funding (17%) and a simple application process (17%) are viewed as needed by SMEs to navigate the months following the outbreak. “Helping SMEs recover following the pandemic will be crucial to the economic future of the UK. As our research has shown, SME income has been hit hard by COVID-19 with many having borrowed funds in order to survive, and with some expecting to continue to do so in the year ahead.” Funding mergers and acquisitions It seems that recovery and survival is a core theme for businesses, with raising funds playing a big part in that, meaning that many companies involved in the funding game are busier than ever.

Cont.  17

REPORT

BUSINESS FUNDING But how is the sector being impacted during this period? Andrew Rutherford, who is Commercial Director of Arbuthnot Commercial ABL, comments: “Refinancing of clearing bank facilities seems to be a theme, where businesses have had loans declined and are keen to seek a smaller, more nimble and supportive lender. “Being able to use remote desktop surveys and valuations has meant we have not grinded to a halt under the UK government’s lockdown, when it comes to the issue of site audits or valuations. With the gradual easing of lockdown, we have seen our valuers returning on site, of course, subject to the appropriate precautions being taken.

Stuart Andrews Managing Director, finnCap Group plc

Stuart Andrews, Managing Director of finnCap, comments: “finnCap deals in public market equities as well as public and private market mergers and acquisitions (M&A) and funding across the capital spectrum. In response to the pandemic, public companies have been raising money either to shore up balance sheets or to be able to take advantage of opportunities that arise. In general terms, the pandemic has prompted a huge amount of interest in public market equity fundraising – we are busier in this area than we have been for quite some time. “While we have completed some M&A transactions, a lot have been put on hold and we expect that to continue until uncertainty over the future shape of the economy becomes clear. Overall, strangely, I would say that the COVID-19 pandemic has been a positive for us so far. Whether that turns out to be true in the longer-term remains to be seen.” On what businesses are telling Andrews at the moment, and the trends he’s seeing, he says that is all can all be summed up by one word – uncertainty. He says: “Across the board, whether a company is currently doing well or has been hit hard by COVID-19, they are all uncertain about what the future holds. Lockdowns and the scale of government intervention represent a historic experiment, and 18

Andrew Rutherford Commercial Director, Arbuthnot Latham

ASSET-BASED LENDING REALLY DOES PROVIDE MORE CERTAINTY OF FUNDING, IT ALLOWS BUSINESSES TO UNLOCK THE VALUE TIED UP IN ASSETS LIKE DEBTORS, STOCK AND MACHINERY, AND PROVIDES FUNDS QUICKLY.” Andrew Rutherford

we simply do not fully know what has happened to our economies, markets and global supply chains, despite what some may claim. Until the economic scaffolding of public money has been withdrawn, say, it is not possible to justify a strong view about future trends or outcomes. “Again, some companies are raising money now to give them a buffer to survive future shocks. But others are putting off corporate activity, adding cash to the balance sheet and lowering spending, though that tends not to be a successful long-term strategy for any corporate.” Asset-based Lending One funding lever that was experiencing growth before the crisis was Asset-based lending (ABL). With this funding stream beginning to consider intellectual property and ideas as assets – evolving it away from providing funding against traditional assets such as machinery and equipment.

“Since June, we have witnessed an increase in enquiries, which is very encouraging. Businesses are taking a longer-term view when it comes to securing facilities from lenders, and increasingly turning to assetbased lenders to fulfil these needs. These facilities will allow them, when the time is right, to rebuild and deliver future growth.” On how businesses can utilise this form of funding going forward, Rutherford comments: “Adapting to new situations and business models can put strain on businesses’ balance sheets. Invoice Discounting, which is part of an ABL package, is an incredible facility to have now more than ever. Every time you raise a new invoice for goods or services provided, funding is made available against that invoice the very same day. We typically provide 85% against the value of the invoice, which gives the business immediate working capital to pay salaries, suppliers, and overheads. “Asset-based lending really does provide more certainty of funding – it allows businesses to unlock the value tied up in assets like debtors, stock and machinery, and provides funds quickly. The introduction of the government-backed Coronavirus Business Interruption Loan Scheme (CBILS) means that asset-based lending facilities are more attractive than ever. “We have approved our first CBILS loan to an existing client, which has been a textbook process and fits in with exactly what CBILS was designed to help with - a strong business negatively impacted by the pandemic, but now opening up for business with its strongest order book ever.”  July - August 2020

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T: 0203 146 1323

COVID-19 SPECIAL: THE UK ECONOMY GETS BACK TO WORK

What has it been like running a business in the last few months? Page 26

Planning to return to work in a new era Page 32

Property Report: What will happen to all the empty offices? Page 34

www.businessleader.co.uk

COVID-19

COVID-19 SPECIAL: THE UK ECONOMY GETS BACK TO WORK IN THIS EDITION 24 Feature: Future of Work Osborne Clarke talk about the furlough scheme and what it means for the UKâ&#x20AC;&#x2122;s business leaders and their staff 26 Feature: Business Response Business leaders share their thoughts on what it's been like to run a company in the last few months 30 Survey: Business and Brexit What necessary steps have businesses taken to ensure cash flow resilence? 32 Advertorial: Back to the Future Looking at the key issues to consider for businesses returning to work: How to redefine what you do and the practical steps you need to take?

GET A COPY OF BUSINESS LEADER MAGAZINE SENT TO YOUR HOME With many people now working from home, our circulation team is working hard to make sure that our readers donâ&#x20AC;&#x2122;t miss out on receiving their copies of Business Leader Magazine.

To have your copy sent to a new address, please email editor@businessleader.co.uk or call 020 3096 0020

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July - August 2020

ADVERTORIAL

IS YOUR BUSINESS READY FOR LIFE AFTER COVID-19? How has your business strategy changed as a result of the pandemic? Within the space of just a few months, the world has been radically altered by a global public health crisis whose effects are being felt in every region and almost every sector. In many cases, long established ways of doing business are no longer viable, and few commentators expect a return to business as usual. Business owners are re-evaluating their future plans in light of this new reality, and those who respond quickly and intelligently will be best placed to thrive in the years ahead. Those who don’t risk being left behind by more agile competitors. Andrew Killick, corporate finance partner at PKF Francis Clark, said: “COVID-19 has had such a profound impact on our economy that few businesses will emerge from this crisis looking exactly as they did at the start of 2020. “The impact of the pandemic is different for every business. At one end of the spectrum, some are having to adapt and scale up to capitalise on new opportunities, while at the other end many have suffered major disruption and significant financial damage. “Now is the time to step back, consider the bigger picture and ask yourself some fundamental questions about the future of your business.” PKF Francis Clark has brought together experts from across the firm to launch a new Covid Business Review service. The aim is to help business owners to refocus or restart their operations as we enter a new era. Key components of a Covid Business Review include: • A comprehensive assessment of your existing assets – including intellectual property, skills and connections, as well as physical assets • Analysis of how your marketplace is changing

Andrew Killick Corporate Finance Partner

• A fundamental review of how your assets and skillsets could be used to exploit emerging opportunities • Setting out your options, including potential routes to market and financial projections • Recommendations and actions Refocus For some companies, the impacts of COVID-19 are likely to prove temporary but will still be felt for an extended period of time. Andrew added: “We are working with business owners to help them understand how their market has changed since the pandemic, so they are fit for the future. “The first step is understanding where your business is right now, before exploring how your physical and non-physical assets can be used profitably going forward. This could be as simple as a pub or hotel turning underused outdoor space into a venue for sociallydistanced events. “Our ethos of shared ambition means all our energy and expertise is focused on helping our clients to succeed.”

Lucinda Coleman Business Recovery Partner

Restart For businesses which are more financially troubled as a result of COVID-19, an objective analysis of the situation and potential routes forward can be the key to survival. This is particularly important as the withdrawal of government support schemes, coupled with creditor overhang from the crisis period, puts strain on cash flows. In some cases, directors will need carefully to consider their duties. Lucinda Coleman, business recovery partner at PKF Francis Clark, said: “The earlier you seek advice, the more options you are likely to have. By being involved at an early stage, we can often find creative alternatives to a formal insolvency process to keep a business trading, enhance its opportunities and safeguard employment. “Often this will involve working with all the stakeholders to find common interest in the future success of the business.” PKF Francis Clark has a wealth of experience in supporting businesses in a wide range of sectors to review their strategy and find the best way forward in uncertain times.

For more information, please visit pkf-francisclark.co.uk/covid-business-review Business Leader - Inspire • Inform • Connect

FEATURE

MILLIONS OF UK EMPLOYEES SET TO RETURN TO WORK WHAT NEXT FOR UK BUSINESSES AS FURLOUGH SCHEME REACHES ITS LAST STAGES?

ith the furlough scheme reaching its later stages, we spoke to two employment experts – Anna Elliott and Julian Hemming from international law firm Osborne Clarke – to look at what this will mean for the UK’s business leaders and their staff.

THE FURLOUGH SCHEME WILL BE REMEMBERED FOR YEARS TO COME AS A NOBLE INTERVENTION BY GOVERNMENT, BUT TO WHAT EXTENT HAS IT MASKED FUTURE UNEMPLOYMENT FIGURES? Anna Elliott: "The UK scheme has been rightly lauded as it is helping employers to retain staff, but there is still a high risk if companies do not recover, in some instances, it has provided a temporary band aid. "But you have to say that, overall, it has been a positive measure, as it has allowed businesses to take stock and look after many staff during this difficult time. "It started in March and was initially due to run until the end of May, and it was then extended again until the end of June and now again until the end of October, with government support set to be phased out from August. • From November 1, employers will need to pay 100% of the cost and that will be the telling time for many businesses, although the Chancellor's announcement on July 8 of a new 'job retention bonus' of £1,000 to be paid for each furloughed employee brought back to work, and where they continue to be employed as of January 31 2021, will help. The employee must be paid at least £520 on average each month from the end of the Coronavirus Job Retention Scheme (CJRS) through to January 31. Further details will be announced by the end of July. 24

WHEN LOOKING AT RETURNING TO WORK, WHAT ARE THE KEY CHALLENGES THAT EMPLOYERS NEED TO CONSIDER? Julian Hemming: "Many employers are looking at bringing people back from furlough and they are looking at doing so in a staged way. ‘Who do we need back and when do we need them?’, is a common question being asked. "Businesses need to consider if their environment is ready and they still need to consider that employees need to work from home if possible. This applies to furloughed staff too – as returning to work may not mean that they are coming back into the office. "Considering this – are they set up to work from home? What did you say to them when you furloughed them? Did you say that you will bring them back on seven days’ notice, for example? "If you haven’t put any timetable in place you need to have an individual consultation with them, as their circumstances might not be right for coming back. They might be shielding, for example." Anna Elliott: "Health and safety legislation needs to underpin everything about bringing employees back into work. You will need to consult with employees and undergo health and risk assessments to find out if they can work from home, or in an office environment. "If you’re bringing people back into the office, it will be worth considering staggering start and finish times and rotas. "Important to all of this is employee engagement. You can ensure best practice here by talking with employees throughout the process and being aware of the unique environment that is facing everybody."

how you want to be viewed as an employer. There is an expectation from staff around being open and transparent. Good employee relations and communications will be critical to maintain culture. "There are lots of things employers are doing to stay in touch with their staff, ranging from pastoral support as well as more fun and collaborative things; and these both help to build culture. "Having employee forums to share ideas to say what is working and what’s not is also a good thing to do." Julian Hemming: "During this time there is an underlying stress and it is important for employers to recognise that and be extra sensitive to employee issues that might arise. It is also important to ensure your management team is trained adequately as we’re facing new challenges. "HR departments needs to really step up, as there is a chance for people to feel excluded if you do not and that can be a downward spiral." THE CEO OF TWITTER, JACK DORSEY, MADE A PUBLIC STATEMENT THAT ALL STAFF COULD WORK FROM HOME FOREVER NOW. DO YOU THINK MANY MORE BUSINESSES WILL FOLLOW? Julian Hemming: "For us and our clients, it is a mixed bag. For some businesses, working from home won’t be possible. A manufacturing business, for instance, will need its employees to be in the factory that makes the goods, but what we’re seeing with office-based companies is a consideration of who can work from home and a new thinking around what that will look like.

HOW CAN YOU RETAIN CULTURE THROUGH REMOTE WORKING AND WHEN YOU COME BACK INTO AN OFFICE?

"Other clients are recognising that this may not be an option as their employees don’t have the right environment to work from home in; they might be sharing a flat or have a number of scenarios in their lives that make this impossible.

Anna Elliott: "It is important to think about

"I would also say that most people are July - August 2020

FUTURE OF WORK

Julian Hemming Partner, Osborne Clark

missing those little interactions that we used to have every day that we did not really think about in the past - on the stairs or by the coffee machine - building that spirit of a business still needs to happen in the workplace. Many businesses are heavily invested in real estate too, so this needs to be considered. "I think lots of people still like that separation between work and home." WHEN MAKING STAFF REDUNDANT, IS THERE ANYTHING THAT BUSINESSES NEED TO CONSIDER THAT MAY BE NEW OR UNIQUE TO THE CRISIS? Anna Elliott: "Normal employment laws apply, and you need to still show you have a fair reason for dismissal and have gone through a fair and due process. The current climate will be temporary, so you need to think about the long-term and ask yourself – do you have robust reasons that you cannot support the employee? "Leaders must also remember employees that have two or more years’ service have the reason to not be unfairly dismissed. Business Leader - Inspire • Inform • Connect

"Entitlements around statutory redundancy still also remain and there has also been confusion around using furlough to pay employees their redundancy pay. "I would advise employers look at this because HMRC has also put a structure in place now where it can claw back the money that has been used improperly. "Voluntary and early retirement and extended holiday are options to retain talent, but also protect the business and its costs during this time; and should be looked at before redundancies are made." Julian Hemming: "For me, it is not just about picking on the furloughed people if you are making redundancies. You need to look at your whole workforce and consider what is the best thing for the business and its employees." WHAT IS THE REDUCED THRESHOLD FOR EMPLOYEE CONSULTATIONS AND WHY IS IT IMPORTANT? Julian Hemming: "It is under the radar of many businesses, but the government is

Anna Elliott Partner, Osborne Clark

keen that employees inform and consult with their employees. If you do not have a mechanism to consult and inform with your employees, you should really think about putting one in place. "On April 6 this year, the government reduced the threshold required for employees to set up consultation arrangements. It used to be 10% but now it is just 2% of the workforce that is required to force a consultation. "Those arrangements can be requested in businesses between 15 and 2,000 employees. The question for business leaders is; do you want to have an employee consultation imposed on you due to legal requirements, or do you want to put in place your own arrangements? "It is much better to put something in place that fits your business and arrangements and shows you’re taking a lead on the subject."  Visit Osborne Clarke's website to find out more about its employment advice. www.osborneclarke.com 25

FEATURE

‘COVID-19 HAS GIVEN US ALL A ONCE-IN-A-LIFETIME OPPORTUNITY TO

STOP, REFLECT, THINK, AND REINVENT OURSELVES’

– BUSINESS LEADERS SHARE THEIR HONEST THOUGHTS ON WHAT IT’S BEEN LIKE TO RUN A COMPANY IN THE LAST FEW MONTHS

o find out what it is really like to run a business through a global pandemic and what pressure really means, we spoke to three leaders in different sectors to hear their views.

On how Bratley has found the furlough scheme, he comments: “Since April 1st we have had 200 employees on furlough and 60 working. This core team has been busy, and they really are committed to the business. We have mothballed the office, vehicles, and all non-core expense. We also innovated rapidly.

To start off the conversation, we wanted to find out how businesses first heard about the pandemic and how did they immediately react?

“Keeping in touch with and supporting the furlough team has been a constant worry for me and we moved from a monthly to weekly town hall meeting for the whole company to keep in touch. We have also sent out gift boxes, discount vouchers, set up a hardship fund and have supported numerous volunteering activities that our furlough team are involved in.”

Bruce Bratley, Founder of the First Mile, comments: “At the start we were probably slightly ahead of others and, to an extent, saw the pandemic coming. We knew it would hit us hard because our customers are office, retail and leisure and so we moved very quickly to conserve cash, renewed an overdraft facility with Barclays and started to plan for the worst. By the time it became clear we would be going into lockdown, we were pretty well prepared and had already put many employees at risk of redundancy to save the business, but then luckily furlough was announced.”

Bratley also says that the business has seen an 80% reduction in volumes, but essential retail is still trading throughout the period and that his business is still in contact with its ‘dormant’ customers and discussing with them how they plan to come back. On how he has diversified and innovated, he says: “We realised early on that we could help if we changed our model rapidly. The most flexible capability we had was

our delivery fleet and we quickly put this to work delivering food, medical equipment and PPE for charities and the NHS to ensure supplies got to the front line. This first three weeks of lockdown was very busy and we filled a vital supply-chain failure. “We delivered tens of thousands of donations and essential supplies to hospitals and homes all over London and I am very proud of the team and how they responded and worked incredibly hard. “After the initial period of volunteering and paid work to supply the frontline, we started to see that a number of supply chains were failing, and we launched services quickly to solve these issues, such as household waste collections; initiatives around recycling; fruit and vegetable deliveries and we worked with a company called Delphis to supply ethical cleaning and recycling packs.” Richard Eagleton is the CEO of McQueens Flowers Ltd and he says the pandemic has given him a once in a lifetime chance to reflect on his business and life. On how he has responded, he says: “With excitement, energy and a determination

July - August 2020

BUSINESS RESPONSE

Bruce Bratley Founder, First Mile

Richard Eagleton CEO, McQueens Flowers

KEEPING IN TOUCH WITH AND SUPPORTING THE FURLOUGH TEAM HAS BEEN A CONSTANT WORRY FOR ME AND WE MOVED FROM A MONTHLY TO WEEKLY TOWN HALL FOR THE WHOLE COMPANY TO KEEP IN TOUCH TO HEAR HOW WE ARE DOING." Bruce Bratley

to book a window seat on the 'Pandemic Teleporter' and travel to a new world, however unfamiliar and uncertain that might be.

“Of course, my initial reaction to rapidly unfolding events was a mixture of panic, disbelief and confusion, but we took swift and decisive action to cut costs, furlough 95% of our workforce and conserve cash as I watched our sales plummet to zero and our strategic and business plans in the shredder. “But COVID-19 has given us all a oncein-a-lifetime opportunity to stop, reflect, think, and reinvent ourselves. If Friday 20th March felt like the sky had fallen in, by Monday 23rd I had resolved to have our own ‘Madonna moment’ and reinvent the business – determined to take

Julie Chen Co-founder, The Cheeky Panda

that teleporter to a new world. I didn’t see it as a time to ‘wait and see’ - feeling sure that those who did would, sadly, be left behind. “A day or two after lockdown, I was asked by a member of my senior team how we should respond to the pandemic. My answer was, and how I have tried to respond since, is to be kind – it costs nothing and always returns the favour; keep an eye on the horizon and stop worrying about the things you can’t control.” Cont. 

Business Leader - Inspire • Inform • Connect

FEATURE In regard to how the pandemic has directly affected his business, Richard comments: “We're an international luxury floral design brand with teams in London, New York and Seoul. Previously, 95% of our sales came from supplying fresh weekly flowers to five-star hotels, such as Claridge's and highend restaurants, and from weddings and corporate events – all of whom cancelled over a period of a little more than a week. "Add to that the dozens of cancelled bookings for vocational courses run by our flower schools in London and Seoul, there was a moment when I thought things couldn’t get any worse. “The first parts of our business to be disrupted were our teams in South Korea and New York, which gave me a pretty good sense of what was about to hit us all so hard in the UK. Even so, because the team in London is so much larger, the intensity and speed of activity required to stabilise the UK business certainly took its toll on the team. That means that a large part of my job has been to bring the team together in a virtual world, stay connected, and start thinking about the future and planning our return. “What had always been a very small part of our business, online retail sales suddenly became our only source of revenue – requiring some deft footwork to scale up and secure a robust and reliable supply chain of the right quality flowers. Although still relatively small, retaining an online sales presence throughout has proved reassuring and encouraging to both my furloughed team and our regular B2B customers who will need us again in the future.”

BUSINESS RESPONSE For many businesses, the pandemic has meant shifting business models and looking at new revenue streams. It has been no different for Eagleton. He explains: “Historically, the business had not embraced DIY flower arranging at home or e-learning, but within a couple of weeks of lockdown, we’d introduced a luxury flower subscription service that enables people to have flowers delivered weekly, fortnightly or four-weekly that they then arrange for themselves at home, accompanied each week by an inspirational ‘how to’ video.

“I discovered MS Forms and found a well-structured anonymous survey of the team extremely helpful in formulating an action plan to make a significant amount of professional and non-professional training available to them. What I hadn't expected was that a large group of highly talented creatives would put Excel training right at the top of the wish list.” Julie Chen is the Co-founder of The Cheeky Panda and says that her business has actually grown during the last few months.

She explains: “As our products (toilet paper and antibacterial wipes in particular) are in high demand, the business went through high growth during the pandemic. Our turnover increased to £1.2m monthly from £350,000 monthly. We also onboarded a new supermarket in Tesco, as well as one of the biggest distributors THE ONLY CHALLENGE in the USA.” WE’RE FACING IS THAT WE

“The service brings together our Flower School and retail businesses in a way they haven’t been before, and it is helping us to reach a new audience of keen amateur florists.” Eagleton also says that the mental health of his team has been one of the biggest challenges during this time.

NEED TO HIRE MORE PEOPLE TO SUPPORT THE BUSINESS GROWTH, AND IT'S NOT EASY TO HIRE PEOPLE DURING THIS TIME."

He says: “Aside from the universal and obvious challenge of conserving cash, by far the greatest challenge for me has been to understand and find ways to boost the mental health and wellbeing of the team who are furloughed. We're a creative business, and even on a good day it's something of a delicate ecosystem, and the challenges of being stuck at home with few if any outlets for their creativity, along with the separation from close working colleagues, has hit many of them very hard.

Interestingly, Chen also says that one of the main challenges her business has faced has been that it needs more people to aid its growth.

Chen comments: “The only challenge we’re facing is that we need to hire more people to support the business growth, and it's not easy to hire people during this time. We hired a lady to work in operations before the office shut down but, unfortunately, she has not been able to start her job in the office, where we pride ourselves on having a fun and collaborative culture. Working from home without other colleagues around to support her proved to be difficult, as she left after a couple of weeks. Julie Chen

“Our business is growing very fast and there is huge demand for our products. Our employees are often very busy, and each person might have to do two or three people’s work. To improve efficiency, I have started hiring online freelancers and outsourced some work, such as data entry and order processing to keep the core team focused on important stuff.” 

July - August 2020

SURVEY

Necessary steps for Business to ensure cash-flow resilience WOULD YOU SAY YOUR BUSINESS HAS BEEN NEGATIVELY IMPACTED BY THE COVID-19 PANDEMIC?

5.6% TOO EARLY TO TELL

12.5% NO

81.9% SAID YES

HAVE YOU IMPLEMENTED NEW COST REDUCTION MEASURES IN YOUR BUSINESS DUE TO COVID-19?

66.8% YES

here have been few moments in modern history that have tested the strength and resolve of business like this year. Following years of trade disputes such as Brexit, USA vs China, and the global shutdown triggered by coronavirus â&#x20AC;&#x201C; companies have been shaken to the core. This includes those with solid foundations.

Phil Mowat UK Country Director, Expense Reduction Analysis

Expense Reduction Analysts (ERA) have been helping businesses consolidate their expenses and refine their supply chains for many years and have been at the forefront of the latest pandemic, assisting clients in streamlining through this period of incredible uncertainty.

33.2% NO

A recent study conducted by the team has unearthed the measures that business leaders are taking at this time, as companies prepare themselves for what could be an increasingly challenging period. Unsurprisingly, over 80% of respondents stated that they had been negatively impacted by COVID-19; 12.5% said that they hadnâ&#x20AC;&#x2122;t. With uncertain demand, many companies have initiated protectionist strategies to pull them through this period. Over one-third of respondents said that their business had implemented cost reduction procedures as a result of the pandemic, while a further 8% stated that they plan to do so. July - August 2020

BUSINESS & BREXIT

TO PRESERVE CASH FLOW, WILL YOU BE PAUSING ANY NEW PLANNED HIRES?

WILL YOU BE LOOKING TO CUT BACK ON MARKETING SPEND IN THE NEXT YEAR?

YES

18.7% NO

43.75%

YES

81.3%

TO PRESERVE CASH FLOW, HAVE YOU CUT BACK SPENDING ON CERTAIN AREAS IN THE BUSINESS?

120 100 80 60 40 20 0

31.25% YES

68.75% NO

62.5% SEE BREXIT AS A THREAT

37.5% SEE BREXIT AS AN OPPORTUNITY

Demand is only one part of the issue, however. An arguably more pressing matter at this time for businesses has been cash flow, with expenses largely outstripping revenues and additional funding. Professional support in extraordinary times It’s clear that the consensus amongst business owners is that cost optimisation is more critical now than ever before. However, it’s vital that the right steps are taken to ensure an effective cost strategy is not only implemented but succeeds. Business Leader - Inspire • Inform • Connect

43.75% NOT APPLICABLE

94% ID YES SA

CONSIDERING THE GLOBAL PANDEMIC, DO YOU SEE BREXIT AS A THREAT OR OPPORTUNITY TO YOUR BUSINESS?

WOULD YOU SAY YOU ARE STILL BEING PAID BY THE MAJORITY OF YOUR CUSTOMERS?

12.5% NO HAVE YOU APPLIED FOR ANY ADDITIONAL FUNDING TO HELP WITH CASH FLOW?

43.75% YES

According to the survey, less than half of companies that have started costreduction measures say that they’ve achieved success. Despite the evident importance placed on this, 75% of respondents say that they would not consider hiring external help in these circumstances. This reluctance for professional services could be costly for businesses if they fail to reach optimisation targets, and the demand doesn’t return as hoped. Expense Reduction Analysts are professionals in cost optimisation, with

56.25% NO

specialists working in a vast range of areas and industries. With their support, you can make sure that you save as much money as possible through effective, long-term supply chain refinement.

For more information, visit www.expensereduction.com or email info@expensereduction.com

COVID-19

BACK TO THE FUTURE Planning to return to work in a new era

he last few months will have taught you much about yourself, your business and staff. Now is the time to reflect and use what you have learned, to facilitate the processes needed to help you through recovery. This should involve reviewing business plans, understanding how to adapt to the ‘new normal’ and managing the re-entry into the workplace for your employees.

This article looks at the key issues to consider for businesses returning to work: How to redefine what you do and the practical steps you need to take to get back to what you do best. MOVING FORWARD TO SUCCESS Matt Dunham of Dunham Dean Advisory and former council member of R3, The Association of Business Recovery Professionals, works with businesses adapting to change. He believes that firms should not be afraid to adapt their strategic model to flourish within the ‘new’ environment. He comments: “The winners will be those who come out thinking ‘how can I make the most of these challenges for my customers, staff and the business’, while you risk being left behind by thinking ‘Let’s get back to doing what we did before’.” Dunham recommends asking key questions, such as: • What does your product or service do for your customers? • What’s changed about their needs? • What’s changed in the way customers purchase from you? • How did you adapt during lockdown and what stands out? • Did you develop an online model and can that continue to work? 32

John Clarke Head of Sales, Wesleyan Bank

• Has the relationship with existing customers become closer, as you continued to meet their needs? • Were new customers attracted and what do you need to do to keep them? • Did you find certain skills were lacking within the team? • Is there a need for some staff training? Use these questions to revisit your business plan. The answers will help to create the vision and ambition for change. REDEFINING YOUR BUSINESS As you move the business forward, there are several key areas which impact on your plan: Suppliers • Review your contract’s terms and conditions. Do they need to be amended to meet the needs of your new plan? • Consider a supplier-led Plan B, investigating potential alternative suppliers as a way to protect your business and bring cost savings.

• Start an open dialogue with them, to establish whether they have staffing issues or raw material supply problems which could cause delays and impact you and your customers. Processes and systems Review your processes and systems to consider what changes could make you more operationally and financially efficient? • Being adaptable has been the prerequisite of operating in the pandemic. How can that mindset be used going forward? • Ask those who worked through the lockdown what they have done differently and whether it works better. Review their response and see if it has a place in the business. • Consult customers – what do they think? Are the new ways of working what they anticipated or need? • If changes are made, always check they are delivering the expected results - consider undertaking a ‘mystery shopper’ test. July - August 2020

ADVERTORIAL

The market • The market has changed. Understand what has changed and how your plans match the new expectations. •

Communicate with customers. Explain that you are open for business, communicate any new plans to give them confidence and reassurance.

•

Ask for feedback about your customers’ experiences of working with you during the lockdown, what worked and what did not.

•

Find out how their needs have changed and highlight that you can accommodate those. Above all, remind them about your ‘USPs’ and the added value you offer. Update your marketing strategy and think about how you can use PR and social media channels to tell your story to your target markets.

CONSIDERATIONS WHEN OPENING Depending on your sector, you may have had some employees in the workplace during lockdown with others working from home, while some may have been furloughed. The easing of lockdown means that, where necessary, you can bring staff back to the workplace. This must be done on a safety-first approach, carrying out risk assessments to address the physical, mental and emotional well-being of employees. With staff transitioning back into the workplace, among the aspects to consider are: • Deep-cleaning before re-opening the office. • Operate a clear desk policy to ensure a thorough clean. • Limit the number of people in the office at one time. • Stagger start and finishing times to avoid crowding.

we are all about you

• Encourage staff to use private cars, bikes or walk to work to minimise the use of public transport. • Move desks and workstations to keep separation of two metres between colleagues and, where necessary, install sneeze screens between team members. • Consider installing thermal sensors on the entrances to the premises. • Install the necessary protective screens between team members. • Establish a one-way system around the office to encourage social distancing. • Have rules about where food and drink can be consumed in the workplace. • If you are in a multi-tenanted building, speak to the landlord/management company about the arrangements in communal areas. • Increase cleaning regimes, especially around kitchen and toilet areas. • Introduce sanitising stations in various locations around the office, as well as ensuring a good supply of soap. Where possible, provide paper towels in handwashing areas to avoid use of hand dryers. • Provide PPE, such as gloves and masks, with advice on the correct usage. • Restrict the number of visitors coming to the office. GETTING UP AND RUNNING As part of returning to the workplace, it is important to discuss your plans with employees as well as listening to their concerns. For those who have continued to work, you may have found that certain employees are more suited to a different role from the one they currently have. If so, have a discussion about whether they would be happy to change. You may also find that some employees may not be able to attend the workplace due to shielding themselves or family members – find out if this is the case.

For those you decide can come off furlough, you need to send a ‘recall letter’ followed by a ‘return to work’ conversation. This should address any concerns, check that they are fit to restart and also offer reassurance that preparations have made the workplace safe to return. On their first morning back, hold an induction session about the changes and plans for the business going forward, providing feedback from customers and suppliers. This will help them feel part of the business again. It may be beneficial to appoint an office ‘ambassador’ who is responsible for answering questions or concerns, to ease the transition back into the workplace. Every couple of days, undertake a review with your teams to ensure the new protocols are working. Continue thinking about your employees’ mental health and well-being. Those who remain furloughed or working from home may find it difficult to feel part of the team. Make it a priority to have at least one conversation or contact call a week to enquire about how they feel. PLANNING FOR THE NEW FUTURE With the right preparations, you will be in the strongest possible position to navigate the ‘new normal’ which exists post-lockdown to get your business up and running quickly. Wesleyan Bank is here to support you and realises that with the disruptions you have faced that you may need some help. We have launched ‘back to work’ loans which can be used to spread the cost of the investment you need to make in items like protective screens, sanitising stations and other health and safety equipment, as well as any necessary technology. Wesleyan Bank acts as a broker and a lender. 

TO ENQUIRE ABOUT THESE LOANS: BANKCOMMERCIALSALES@WESLEYAN.CO.UK 0800 980 9348 (MONDAY TO FRIDAY 8:30AM - 5:30PM)

Depending on the circumstances and where required by law, loans will be regulated by the Financial Conduct Authority and the Consumer Credit Act. Wesleyan Bank Ltd (Registered in England and Wales No. 2839202) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register No.165116). Wesleyan Bank Ltd is wholly owned by Wesleyan Assurance Society which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Incorporated in England and Wales by Private Act of Parliament (No. ZC145). Registered office for all of the above Group companies is: Colmore Circus, Birmingham, B4 6AR. VAT number 487282114. Telephone: 0345 351 2352. Calls may be recorded to help us provide, monitor and improve our services to you.

Business Leader - Inspire • Inform • Connect

PROPERTY REPORT

THE OFFICE MARKET REPORT

WHAT WILL HAPPEN TO ALL THOSE BIG EMPTY BUILDINGS IF WE ALL STAY WORKING FROM HOME?

ith many businesses now operating a remote working model, what happens if they decide to stick with this approach? And what will happen to some of the prime real estate across UK cities?

Will it sit vacant or could it be used to help growing businesses find space? Business Leader Magazine spoke to two property experts to try and find out about this and how the office market is being affected by COVID-19 pandemic. Paul Williams, a Director at Avison Young, comments: “Understandably, companies of all shapes and sizes are reviewing their office space needs in the light of the coronavirus pandemic and the lockdowns, which many countries have imposed in response. Phrases such as ‘socialdistancing’ have entered our vocabulary, and we are all now dedicated Zoomers, gaining intriguing ‘through the keyhole’ style insights into the homes of our colleagues and peers. “Business leaders such as Jes Staley, the Chief Executive of Barclays, and James Gorman, the Chief Executive of Morgan Stanley, have both expressed a view that their real estate needs are likely to be significantly down-scaled in the future, as home-working and a dispersed office network potentially take the place of the large corporate headquarters offices of today. “When the lockdown is relaxed, we are likely to see changes to both our working practices, as well as adjustments to our 34

workplaces. This may include continued remote working, or a partial return to the workplace incorporating modified schedules or shift working. There will likely be a general desire to avoid crowded public transport, so, in the short-term, commuting by car, motorbike or bicycle is likely to increase. Some people will avoid their previous commute by working from suburban or branch offices outside city centres or utilising local flexible/serviced office providers.”

easy to do in the short term as they will be tied into leases with fixed expiry dates or breakpoints. Over time however, we could see a percentage of the office stock coming to the market and, as always, the speed with which this is absorbed by other occupiers will depend on factors such as location and quality – with the better specified and located buildings likely to be snapped up by companies who may have previously struggled to find space in prime locations.

Williams continues: “At least temporarily, office occupation densities will be reduced, initially managed by seating policy and behaviour rather than more expensive desk reconfiguration. Video calls will continue to replace many meetings and most business travel.

“Avison Young research for the Big 9 quarterly report on the regional office market suggests that the strong fundamentals in many of the markets will likely provide an element of resilience during and after the current pandemic.

“In the long term, despite the comments from Barclays and Morgan Stanley, we don’t necessarily foresee a wholesale reduction in the amount of workspace occupied by most businesses. Homeworking is only a viable option for a small proportion of workers, and for many people the lack of normal social interaction is one of the main things they have missed about working in an office environment.

"Vacancy rates are currently at historic low levels, and half of the current stock under construction in the Big 9 markets is pre-let." Cont. 

“It can be harder to maintain morale and team spirit when people are working remotely. In addition, junior members of staff will miss out on the one-to-one training which is vital to learning the soft skills which most roles require, in addition to technical knowledge and competence.” On the implications of some businesses deciding to down-size, Williams comments: “If some organisations do decide to downsize their office footprint, this may not be July - August 2020

COMMERCIAL PROPERTY

Paul Williams Director, Avison Young

Business Leader - Inspire • Inform • Connect

John Bryce Director, KWB

REPORT

COMMERCIAL PROPERTY

Williams continues: “Whilst many occupiers may seek to reduce the headcount in their offices by introducing increased agile working and some form of rota system, any drop in the number of desks occupied will be offset at least in part by the need to maintain greater social distancing, and people are likely to be wary of hot-desking at least until the pandemic is over.” On expected growth or decline in the serviced office sector, going forward, Williams says: “We expect to see further growth in the serviced office sector, as companies seek to manage and flex their office requirements going forward, and as a means to lease vacant space if there is a down-sizing as some large corporates seek to reshape their office portfolio, in light of changing work patterns. “Smart organisations, smart buildings and smart cities that can effectively harness data and technology to monitor, manage and minimise the risks for individuals will be at a clear advantage, and we can expect to see an explosion of innovation in these areas over the coming months.”

WE EXPECT TO SEE FURTHER GROWTH IN THE SERVICED OFFICE SECTOR, AS COMPANIES SEEK TO MANAGE AND FLEX THEIR OFFICE REQUIREMENTS GOING FORWARD, AND AS A MEANS TO LEASE VACANT SPACE IF THERE IS A DOWN-SIZING" Paul Williams

To find out about how the office markets are being affected by COVID-19, Business Leader Magazine also spoke to John Bryce, a Director and Co-founder of Birmingham’s largest independent property agency, KWB. A close observer of Birmingham’s property scene, he has dismissed predictions that

urban office markets will be changed forever by the COVID-19 pandemic. Some pundits believe transformation lies ahead, and that the ‘new normal’ will be unlike anything previously seen, as occupiers switch to remote working in their droves. But Bryce disagrees: “I’ve been working in this industry for 40 years, and it’s certainly not the first occasion when the market has been brought to its knee. But however much economic damage is wrought in the short-term, I don’t believe the fundamentals will have changed once lockdown fully ends “Inevitably, very few people are inquiring about office space and existing tenants are seeking to renegotiate their lease terms and conditions, and, of course, the serviced office sector has been very badly hit. “We’ve already seen the market leaders, WeWork, sue Japan’s SoftBank for pulling out of a $3bn (£2.3bn) deal to take full control of its business, and others in that sector are having ‘conversations’ with their landlords for either deferrals or holidays for rent and service charges.” Bryce thinks that as business models evolve during lockdown, some tenants in traditional office space are likely to dedicate their meeting rooms and conference suites to office use to achieve better social distancing. “Serviced operators could then also benefit from letting out their meeting rooms on an hourly basis, to these traditional office users whilst their own meeting rooms are out of action." Although the KWB team has become avid users of Zoom and other video-conferencing apps during lockdown, Bryce does not expect that remote working will replace traditional office environments when the crisis ends. He comments: “There’s no doubt that some companies looking to reduce their overheads, because their finances have

been crippled during lockdown, will, in future, make greater use of technology, and that some of their employees will continue working from home. “Equally, we’ve seen times when home working has been particularly in vogue, but then the appeal of working in a traditional office resurfaces. “To me, an office provides a collaborative environment, and helps organisations and employers deliver a sense of unity and purpose, which is inevitably missing from a home office. “We will certainly see occupiers in traditional office space seeking increased flexibility in their leases, allowing them to reduce their overheads more quickly in the event of future recessions, and landlords can expect to see lease break demands to be more frequent. “Naturally, they will want to resist such changes, as it will affect the investment value of their properties, but if they want to compete with the serviced office world, then more flexibility is something they will need to swallow.” After the crisis, Bryce accepts that demand will tumble for serviced offices in the short-term, as potential occupiers rebuild their finances, but is convinced that the sector’s ability to supply quality space and ICT, on short-term leases, will see it steadily recover. He concludes: “I suspect too that the serviced office sector will attract tenants from traditional space, especially if landlords are unwilling to accept occupiers’ needs for greater flexibility. “Across the piece though, and regretfully some businesses will fail to survive, I see changes ahead for our office markets, but certainly neither the catastrophe, nor the cataclysmic changes, which some are forecasting.” 

July - August 2020

ADVERTORIAL

How great IT support can aid business recovery Jason Small is the Co-founder of WestSpring IT, a Bristol-based managed service provider. Business Leader Magazine sat down with Jason and asked how having great IT support can help businesses now looking at recovery. We are all now looking at getting back to normal, this can mean different things to different businesses depending on your industry. But no matter what you do, one thing is for certain, technology has played a huge role in businesses surviving this pandemic. COVID-19 burst onto the scene and tore down day-to-day business, forcing us to leave our offices and begin working remotely. Was your provider able to switch you effectively? Did they respond quickly? Were they helpful in getting your team online? Here at WestSpring IT, our support team was able to set up all our clients with cloud

telephony. Your provider should have made this process as seamless as possible. Afterall, you had enough to deal with during those first lockdown weeks – chasing IT support shouldn't have been one of them.

While in lockdown our support teams began scanning for ways to save our clients’ money. For example, we were removing licences that were no longer required and streamlining their services.

How secure is your team? Unfortunately, this period has invited an unprecedented amount of cybercriminals to attack business vulnerabilities. Phishing scams and imitation tactics have wreaked havoc on businesses throughout this period. Has your provider offered you and your team advice to avoid this? For example, we send our clients mock email scams to train their teams on what to avoid. Finally, is your team connecting to your network via a secure VPN? If not, your business files could be at risk.

Our philosophy here at WestSpring IT is to become part of our client's team. By really getting to know our them, we have been able to react effectively and help them through this pandemic. Nothing should ever be too much trouble.

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LEADERSHIP INTERVIEW

CEO IN FOCUS:

HEATHER MILLS

eather Mills is an entrepreneur that led the vegan revolution before it rose to the prominence that it is today. Through her roles as the leader for VBites, VBites Ventures, Be At One and V Omega – all principal firms within the sector – she has blazed a trail for many to follow. Mills talks to Business Leader Magazine about the rise of her companies, the explosion of the vegan movement and what the future holds for her.

CAN YOU TELL ME ABOUT YOUR VEGAN JOURNEY? When I lost my leg in 1993, I became vegan purely because I had an infection for five months that was not healing properly. A friend of mine suggested I changed to become a vegan as the infection was taking more and more of my leg. I hadn’t even heard of veganism, but I was willing to try anything. I was in West Palm Beach in Florida, and I went to a vegan shop – they provided organic vegetable juicing and similar things – and being a traditional Geordie who grew up on sausages and pies, I thought it was awful! Five months of strong antibiotics in the hospital hadn’t worked, but the raw vegan diet healed me in two weeks. 38

WHY DID YOU START VBITES? I stayed raw vegan for health reasons for two years, but I was fed up of going out to restaurants and only being able to have a salad, and I really missed the taste of dairy, meat and fish – and I didn’t want to put that back in my diet.

see the vegan Buddhists that had made meat alternatives. I found that a lot of the factories were cross contaminated with vegetarian and animal products – and still labelling them as vegan. Being fascinated now with nutrition, I decided to take a degree and started to talk with McDonald’s about introducing plant-based products. The CEO at the time said I was crazy, but the two below him were very much behind it, so told me to come back in a few years when they were in charge.

At home I started making my own vegan burgers out of lentils, mushrooms and oats. I then studied more about vegan food. Following this, I travelled to Taiwan to

I worked on replicating plant-based versions of McDonalds’ products, like for like, so we could offer vegan chicken nuggets, burgers, milkshakes to vegans and those with dietary

The media were fascinated as they didn’t understand how that had worked, so I wrote a book about veganism and went on GMTV to convince people that veganism was the future. However, everyone laughed at me.

July - August 2020

CEO IN FOCUS industry being slow on the uptake of vegan products – and knowing they would have issues such as cross contamination – I knew we could offer 100% vegan-friendly facilities and they could not. They waited until they had a larger percentage of their income from vegan products before investing into its infrastructure that we already had in place. HOW DID BREXIT IMPACT THE BUSINESS? When it was announced, many of the larger multinational food companies left the country, meaning that I could pick up their manufacturing sites at a reasonable price and turn them into plant-based facilities. This meant that I could then control the market.

government/bank support as other countries do. Unlike in America, the UK currently views veganism as a trend – they need to understand that it is a movement. However, a lot of the ideas have come from the UK. The Beyond Meat burger has an IPO value of c.£9.5bn – but that was an old recipe of mine from the mid-1990s! But as no one in the UK was interested, it didn’t take off like it has in the USA. However, views are changing, and we are at the forefront of that.

HAS BEING AHEAD OF THE MOVEMENT MEANT YOU HAVE BEEN IN A POSITION TO CONTINUALLY DOMINATE THE MARKET? Yes, it has – but more through already So, I went to many dairy companies and told knowing the trials and tribulations that affect them that we could replicate their products. this industry – as we have already gone One large Norwegian company, worth through what many start£1.8bn, jumped at the chance, up companies are currently and because of that, they were MANY OF experiencing. Unlike ourselves, first to market. As a result, they THE PRODUCTS most of the companies within ended up selling more of their the industry are small startvegan alternatives than their NOWADAYS THAT ups. dairy products! That proved that YOU SEE IN THE if it tasted as good, was popular, This is why I set up an angel/ AISLES OF THE had better animal welfare, and venture investment firm to SUPERMARKETS it was more environmentallyhelp these companies, called friendly – we were on to COME FROM OUR VBites Ventures. This is where something. Ever since that OWN IP FROM THE I personally invest in start-up moment, we kept on scaling up ventures within the vegan LAST 26 YEARS OF the business. movement. Many of them have BEING INVOLVED IN products that we have already We now supply vegan THIS INDUSTRY." made and sold – but I am alternatives for many of more interested in the people the food industries leading behind the companies, and I am excited manufacturers, restaurants and takeaways. about what we can do together. The idea is to Many of the products nowadays that you see have these small companies being mentored in the aisles of the supermarkets come from by myself and our team on distribution, our own IP from the last 26 years of being manufacturing, as well as procurement. involved in this industry.

requirements, like lactose intolerance. We were ready to launch in the early 2000s, but then I went through a horrific media divorce, so we had to shelve the idea as everyone wanted to talk about that, rather than the business. My business partner and I then went separate ways. He went off to set up vegan cafes and not manufacturing like I did. I wanted to do this, as I did not want to be like McDonald’s and rely on a third party. I wanted to be able to supply to the consumer and control the supply chain. AS THE LEADER OF THE INDUSTRY – WHAT OPPORTUNITIES DID YOU SEE? Due to many of the large players within the Business Leader - Inspire • Inform • Connect

OTHER THAN BEING FIRST TO MARKET, WHAT SETS VBITES APART FROM THE COMPETITION? What is great about VBites is that we have been pioneering this for many years – way before anyone else in the UK – so no one has caught up with us yet. You might have someone who can make an ‘OK’ burger, but is not the same level of product or the same level of technology that we use. For example, we make salmon out of algae. For every 2.5 tonnes you grow, you reduce the level of C02 in the atmosphere by 1.5 tonnes. So, with the support of the government and the banks, we could become the world’s largest plant-based manufacturing facility. We are already on scale, but not on products, as we do not get the same level of

Before the movement gathered pace, there was no competition – now we are leading them and through VBites Ventures we are now seeing a lot more innovation with the technology used, and the resulting products. HOW DO YOU ENSURE YOUR TEAM STAY AHEAD OF THE COMPETITION? Number one – make sure your price points are correct. However, the most important factor is to embrace innovation. We are always innovating and creating new products. For example, in the 1990s, I started with soy protein, then went on to use pea, oat, mushroom, and we are now into algae proteins.

Cont.  39

INTERVIEW

CEO IN FOCUS

Having led market and established ourselves as an innovative company, we have now become a trusted supplier in the supply chain and regularly export to 24 countries around the world. We have also constantly looked at expanding our range. Many within the industry have become dependent on a single product or ingredient – and that has never been us. Innovation drives business forward in the food service sector. As a company, we are like IBM – we have always been ahead. That was until Apple came along – we must make sure that we are the ‘Apple’ of the industry and take the vegan movement into the future. WHAT HAVE BEEN SOME OF YOUR BIGGEST MISTAKES? WHAT DID YOU LEARN? Some of my biggest mistakes were believing that everyone does business like me! I learnt that the hard way. I invested in a lot of people who just wasted it, but I also invested in people that really worked hard and were proud to achieve their goals. I have carried this over now into building my team. I have had to learn to be tough in the business world, as I am very soft in my personal life. I used to be soft across both and that doesn’t work.

Having worked in warzones and difficult scenarios, I have an ability to work well under extreme pressure. That has definitely helped me in my career. In those scenarios, some people wait for a few days to deal with it – that doesn’t work. Reacting quickly to a crisis is crucial for a business. Therefore, building a team that share that ethos is just as vital. 

MANY WITHIN THE INDUSTRY HAVE BECOME DEPENDENT ON A SINGLE PRODUCT OR INGREDIENT – AND THAT HAS NEVER BEEN US. INNOVATION DRIVES BUSINESS FORWARD IN THE FOOD SERVICE SECTOR."

Three Joes acquire The Stable Pizza Group Three Joes, the sourdough pizza and craft beer restaurant chain, has acquired the fourteen strong ‘The Stable’ pizza chain (turnover £14.6m) from Fullers for an undisclosed sum. The acquisition sees the company expand its geographical spread into the South West, Wales and the Midlands. Tim Hall, Chief Executive and Co-founder of Three Joes said: “We’ve been huge fans of The Stable since we launched Three Joes in 2017 and this acquisition represents a significant step forward for us. The Stable is five times our size and whilst we are all operating in uncertain times, we are confident the business has a strong future ahead. “With sites located in harbours, beach fronts and market squares in the South West and on the coast, the opportunity to add these beautiful sites to our estate was too good to be true. We believe these are the ideal locations to expand Three Joes into whilst the country recovers from COVID-19 and people choose to take holidays at home in the UK.”

July - August 2020

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TOP 32

‘BUSINESS HEROES’ OF COVID-19

he world of business has been decimated by the impact of the coronavirus, which has affected all sectors and companies of all sizes. However, in times like these, there are often beaming lights of inspiration that people can get behind to help us get through this. As a result, Business Leader Magazine has highlighted 32 businesses – and their leaders – who have gone above and beyond for their staff, community and the wider UK. The heroes selected were suggested by our readers. We are aware that there are hundreds of examples of great leadership though these troubling times, and we encourage you to send in your nominations through for the online version of this list – available at www.businessleader.co.uk. The list is in no particular order.

ROD NEALE

CIRCULAR COMPUTING Neale’s firm remanufacture laptops from HP, Lenovo and Dell, with a focus on sustainable IT. Their products were highly sought after due to the requirement of many businesses needing to work remotely. Neale took a decision to help those in need, not for profit or recognition but because the firm was in a position to help the community. They donated laptops to care homes across Surrey, Hampshire, Dorset, Isle of Wight and West Sussex with the sole intention of enabling disabled, vulnerable and the elderly residents to be able to speak with their loved ones through Skype.

SUE TURNER QUARTET COMMUNITY FOUNDATION As Chief Executive of Quartet, Turner led her team to raised more than £1.2m to support West of England charitable organisations through the pandemic. The firm is at the forefront of drawing up the £30m 'Recovery Plan' for the social sector, which creates

£200bn of social value to the UK annually – or 10% of UK GDP according to the Bank of England’s Chief Economist Andy Haldane. Turner’s company is working closely with business organisations to reframe business/charity relationships to give more targeted support in the future.

STEVE OLIVER MUSICMAGPIE Supported by a surge in demand for musicMagpie’s refurbished consumer tech products, as people looked to work, stay connected and be entertained from home, Oliver put a fundraising scheme in place whereby the business would donate £1 for every single item of consumer tech it purchases from its customers, as well as donating £1 for each refurbished tech item sold on its online store, to the NHS Charities Together Scheme. The scheme is on target to hit £250k. Oliver and his staff donated over 200 tablets to health authorities across the UK, including 25 to Stepping Hill hospital in Stockport, where musicMagpie is based. July - August 2020

BUSINESS HEROES workers during the pandemic. They reworked their entire operation to create PPE for front-line workers. Using their Zund cutter and sewing facilities, they have been able to create masks, hand sanitising stations, social distancing POS and much more. They have donated thousands of pieces of equipment across the North and thousands of pounds in charity donations.

AMY KINGTON COMMUNITY OF PURPOSE The Bristol-based company created a new programme, ‘Board Games for Bored Kids’, which delivers games and food to some of the city’s most disadvantaged children. The city has 13,500 children on Free School Meals, which includes 70% of children living in South Bristol. COP has worked hard to ensure they have food parcels and vouchers, so they’re not going hungry. But they are also very likely to be stuck at home with no access to a garden, to the internet or with any games to play – so COP also provide games for those most in need.

Katie Cavanna Re4orm

KATIE CAVANNA

NATHAN SWINSON-BULLOUGH IMAGECO Imageco are specialists in all aspects of wide format print; creating signage, exhibitions, retail POS and graphics. The firm has risen to the challenge of coronavirus and used their innovation to design and create products to assist Business Leader - Inspire • Inform • Connect

JOHN NEWCOMB BUILDERS’ MERCHANT FEDERATION The Builders’ Merchants Federation represents 710 members nationwide, with combined sales of £32bn – a sizeable part of the UK economy. Despite the scope and scale of the industry he represents, Newcomb was able to act quickly and make a positive impact to support his network during the crisis. He led a team whose work included; a co-ordinated, national response to PPE donation; the development of safe site operating procedures to safely help get Britain building again; and daily liaison with government, through the Construction Leadership Council (CLC), to construct plans to help the industry through the pandemic.

PAUL JENNINGS

RE4ORM Cavanna established the community interest company last year to provide a mobile community centre in Torbay, Devon. She had been awarded lottery funding to buy UB40’s old tour bus and renovate it into a mobile kitchen and library service which would service vulnerable and isolated members of the community. She recognised that Re4orm needed to act quickly to provide the areas depleted tourism industry with a lifeline – and with food. She raised £10,000 to provide meals and food parcels to those most in need across Torbay.

John Newcomb Builders' Merchant Federation

NORTH P&I CLUB

Richard Falconer - Co-Wheels

RICHARD FALCONER CO-WHEELS During the COVID-19 outbreak, national car share scheme Co-wheels Car Club launched a 50% discount to help those leading the fight against Coronavirus get to work and carry out essential volunteering safely. With the frequency of public transport having been reduced to combat the outbreak of the virus, it can be difficult for key workers to commute, with less services running and safe social distancing often not possible. This discounted service is available to all NHS care staff, including doctors, nurses, and paramedics, as well as front line carers and NHS volunteers, who can access vehicles in over 60 locations around the UK.

Newcastle-based shipping and marine insurer, North P&I Club, has lent its support to a number of local and international charities, drawing attention to the welfare of seafarers during the pandemic. As shipping is a vital part of the international supply chain keeping our shelves stocked, many crews remain at sea, unable to see their loved ones, until restrictions ease. The club has ringfenced £40,000 of its North 150 Fund for maritime charities, including the Sailors’ Society to provide mental health resources for struggling seafarers and their families during this difficult time.

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TOP 32

Professor Cara Aitchison Cardiff Metropolitan University Keith Brownhill Dextra Group

John Vincent Leon Restaurants

JAMES KINSELLA BLUETREE GROUP Yorkshire-based printing company Bluetree Group, owner of InstantPrint.co.uk and Route1Print.co.uk, has been manufacturing type IIR-medical grade face masks and the UK’s first mask subscription service. Following a call from the World Health Organisation in March for the industry to help increase face mask production by 40%, Bluetree Group decided to diversify its manufacturing capabilities to help with the response to COVID-19. The business has converted its 45,000 sq ft facility into a surgical face mask factory. This facility will be capable of producing 1.4 million masks per week. Bluetree Group will also be donating a year’s supply of face masks to Bluebell Wood, a local hospice.

ANNA BLACKBURN BEAVERBROOKS THE JEWELLERS Despite many online retailers continuing trading throughout the crisis, Beaverbrooks took the decision to close its stores and warehouse operations ahead of the government announcement, to protect its colleagues, their families and the wider community. The company has been instrumental in connecting with its people 44

Anna Blackburn - Beaverbrooks the Jewellers

through digital platforms, encouraging them to use their time for volunteering and helping others to support local communities and those fighting on the front line of the crisis. Each week, Beaverbrooks is giving away £100 gift cards to customers who are doing good in their local communities as part of its Hearts of Gold initiative – to reward ordinary people doing extra-ordinary things.

ANDREW BARNETT FLITETRACK FliteTrak designs, manufactures and supplies intelligent health monitoring systems across multiple sectors, including aerospace, rail, health, marine, sanitation and agriculture. But since the start of the pandemic, Barnett put things on hold to make face shields for essential workers. He designed and prototyped the shields before printing them on 3D printers. He bought more 3D printers to increase capacity and his increased capacity to make about 25 visors a day to a total of 15,000 face shields – all for free or at cost/not-forprofit price. They have gone to GP surgeries, care workers, and other key workers.

KEITH BROWNHILL DEXTRA GROUP Brownhill and his staff at the Dorset-based firm have provided over 600 visors to GP’s, local nurses, carers, care homes and safety glasses from company stocks for all that wanted them. They have provided receptionist screens and doors to enable local GP practices to continue to take blood tests and carry out important work. Brownhill has registered as an ‘OLIO’ food hero, where he collects unsold food from the local Tesco each Friday and Saturday night at about 8.30pm, to then take that food home, and load up to the OLIO app, where people can request that food and collect it.

PROFESSOR CARA AITCHISON CARDIFF METROPOLITAN UNIVERSITY Led by Professor Aitchison, Cardiff Metropolitan University has delivered a programme of measures with all decision making based on the importance of safeguarding the health and wellbeing of staff, students and the wider community. Aitchison committed to putting people first, she took the decision to close campuses and to move all teaching online a week before the lockdown measures in Wales began, back in March. July - August 2020

BUSINESS HEROES She also approved the use of spaces on Cardiff Metropolitan’s campus for a pilot Blood Bank donation centre, proving so successful it has returned to the site six times to date and been rolled out as a model across Wales.

sanitisers - fortunately, with 95% of their range being bar soap, buyers turned to them to help out.

EMMA HEATHCOTE-JAMES

Paul and Natalie Sutherland set up MechFS over 11 years ago and now have four UK offices and two German offices. They are extremely active in their local community and, as a business, MechFS is involved in many charities and local organisations in the area. As soon as the coronavirus pandemic began, they wanted to help the local community. After hearing that the NHS staff at Doncaster Royal Infirmary were struggling for meals onsite during their shifts, they reached out to a local catering company and organised and fully funded the food truck to be located at DRI for three weeks across April and May to feed the staff. Over the three weeks the truck served over 8000 meals.

LITTLE SOAP COMPANY In the early stage of the lockdown, there was mass panic buying and supermarket shelves were bare of soaps. As a result, the firm’s organic and natural soap has seen a huge rise in sales. They delivered a three month supply into Asda in two weeks – showing the increased demand. Many soap brands on the shelves are made abroad, exacerbating the challenges. Manufacturing in the UK and being totally in charge of its entire supply chain allowed it to fill the gap needed by the wider country. Then, a few weeks on, there was a global bottle and closure shortage with all manufacturing having been diverted for

PAUL AND NATALIE SUTHERLAND MECHFS

JOHN VINCENT LEON RESTAURANTS

Emma Heathcote-James Little Soap Company

LEON increased its NHS discount from 15% to 50% in early March. Then, on 27th March, FeedNHS was launched by Vincent, the LEON CEO and Co-founder, as well as actors Damian Lewis, Helen McCrory, and Matt Lucas, who helped get the message out there about why this cause would make a difference to the heroic work of hospital and healthcare staff during the crisis. FeedNHS has now been providing meals to hospitals for many weeks and has delivered up to 13,000 meals a day to 38 hospitals. In total, over £1.4m has been raised and 460,000 meals have been served.

MOHAMMED PATEL VAPE DINNER LADY

This vaping company switched its production focus to making hand sanitiser and joined forces with the National Care Association (NCA), to provide essential PPE to some of the UK’s most vulnerable frontline workers. They repurposed their production line at their manufacturing base in Blackburn and created 24 new jobs, in order to help meet unprecedented demand from key workers during and beyond the coronavirus pandemic. The firm initially donated 10,000 individual-use hand sanitisers to frontline care workers working within care homes in the National Care Association network.

STEVE BEESLEY WIDD SIGNS Beesley is the Workshop Manager at St. Helens-based Widd Signs – a national signage manufacturer. He has led his team to produce thousands of face masks for frontline NHS staff and care workers. Supporting the St Helens COVID Mask Makers Group – a 100-strong group of local volunteers who are drawing on their combined skills and expertise to create and provide face masks to frontline NHS staff and care workers in the North West and further afield. To date, over 3,500 masks and 700 headbands have been created and distributed.

CRISTINA NESTARES ADMIRAL Nestares is the CEO of insurance firm Admiral. The firm has a strong commitment to supporting the local community in South Wales where the company is based, and this has intensified during the current crisis. They helped provide support to young homeless men, women and children suffering from domestic abuse, through a donation of £25,000 to Wales' leading homeless charity, Llamau. Admiral has raised more than £32,000 for the Intensive Care Society by taking part in a stay at home half marathon challenge. Admiral were one of the first major UK motor insurers to offer its customers partial refunds and waived any motoring claims excess fees for NHS or emergency service workers.

Cristina Nestares Admiral

Business Leader - Inspire • Inform • Connect

Mohammed Patel - Vape Dinner Lady

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TOP 32 Sukhendu Pal Funding London

FRED GARZONI & IMRE BERGER IMOPHORON Co-founders of the Bristol-based business have developed their capabilities to produce potential vaccines to counter the ongoing COVID-19 pandemic. The biotech company Imophoron – which is based in the Unit DX Incubator – has produced multiple COVID-19 vaccine candidates, based on its novel vaccine platform, within weeks of the virus sequence being made available. Imophoron has joined the University of Bristol’s COVID-19 Emergency Research Group, and is leading on vaccine development. The test for the first candidate is ongoing.

MARTIN THURLEY LINIAR (HL PLASTICS) Thurley made the tough decision to close down his facilities for the safety of the 500 plus workforce, when many others in the manufacturing industry were undecided. As well as working to make sure his staff were safe and well, he ensured suppliers were paid and communicated with, both to keep their reputation intact and to ensure a reliable supply of raw materials once reopened.

Fred Garzoni & Imre Berger Imophoron

Exhibition and Conference Centre (ECC) on UWE Bristol’s Frenchay campus into a 300bed temporary hospital, to provide hundreds of extra beds if local services need them during the peak of coronavirus pandemic. The NHS Nightingale Hospital was fully operational and treating patients from April 2020 and followed the creation of similar temporary hospitals in London, Manchester and Birmingham. The hospital is run by nurses, doctors, managers and other staff from different NHS organisations across the South West. It serves as a support hospital for people all across the region.

SUKHENDU PAL & STEVE GARNETT FUNDING LONDON

During the crisis, he has also donated thousands to local NHS trusts, the Derby and Burton Hospital Charities, the Derby Branch of Age UK, as well as agreeing to manufacture and fit new French doors in a local care home, enabling them to create a ‘pub garden’ for relatives to safely visit.

As the pandemic is destroying start-ups and young companies in the capital, Funding London’s lead mentor, Pal, is fighting on the frontline, saving them from bankruptcies and helping them plan for their recoveries. The crisis has created the opportunity for Funding London’s lead mentor, Garnett, to provide direction, meaning and support to their portfolio of 150 young companies when they need it the most. In addition, Steve has made generous contributions to his local hospital during this difficult time.

PROFESSOR STEVE SMITH

ROGER SCARLETT-SMITH

UWE

THORNTON & ROSS

Vice-Chancellor at the University of the West of England (UWE Bristol), Steve West, was instrumental in helping convert the

Under the leadership of Executive VP Scarlett-Smith, Thornton & Ross (T&R), part of the STADA Group, has donated

over 100,000 free samples to healthcare professionals throughout the UK from two of its leading skincare ranges – Cetraben and Zeroderma – both of which help to minimise the discomfort of irritated skin caused by prolonged use of facemasks, frequent hand washing and sanitising. As a leading prescription emollient company, Yorkshirebased T&R will continue to support NHS frontline heroes with free samples as they work around the clock to care for patients during the coronavirus pandemic. They have also donated 14,000 bottles of its disinfectant Zoflora, to help staff at local hospitals eliminate bacteria and viruses on door handles and cars before driving home.

RONNIE DECKER GLOBUS INDUSTRIES Like many manufacturers and businesses during this pandemic, Globus Industries has pivoted from its usual day-to-day business to now supplying the NHS with much needed PPE equipment. After discussions with various contacts and suppliers, Globus owner Decker reached out to the NHS to offer the PPE equipment that they were crying out for. Two planes loaded with N95 3 ply masks and KN95 face masks arrived at Heathrow, all having been ‘Splash Tested’ by SGS and an independent UK verifier to meet all EU required standards. These were then sent directly to NHS Daventry Central to be immediately dispatched to frontline workers. July - August 2020

BUSINESS HEROES MALCOM HALL MBE

MATT ISHERWOOD

Source Control Masks is the trading name of Mansfield-based industrial supplies business Hall-Fast. The business normally exports to over 100 countries, however, in light of the outbreak, it has refocused efforts to support and increase UK supplies of face coverings for the British public. With the assistance of DIT advisers, the business is working to secure thousands of face coverings from Asia. The company has sold over 8,000 so far and has said its aim is to keep the UK public safe, whilst ensuring medical PPE is reserved for healthcare workers. The business is donating £1 for every face covering sold online to the Sherwood Forest Hospitals NHS Foundation Trust, their local NHS trust, and has raised £2,160 so far. Hall-Fast previously donated excess PPE stock to the value of £2,000 to their local NHS back in March as lockdown restrictions began.

Pathfindr, the asset tracking and IoT tech specialist, has developed a wearable personal safety device to assist workplaces in meeting social distancing protocols. The Safe Distancing Assistant has successfully undergone testing with several large UK manufacturers and is now being launched more widely as a training and enforcement device for safe personal distancing in the workplace, including factories, warehouses, logistics hubs and construction sites.

HALL-FAST

ROXANA MOHAMMADIAN-MOLINA BLEND NETWORK Blend Network completed its two largest ever deals during the pandemic, highlighting its commitment to supporting SME property developers who are building more affordable homes to sustain the UK’s national and regional housebuilding effort. The largest loan, worth £2.25m, was funded in four days. Meanwhile, its second largest loan, £1.95m, was funded in two days. The story behind Blend Network’s action was the realisation that COVID-19 was likely to inflict an unprecedented damage to the UK’s housing market. As a result, Blend Network decided not only to remain committed to continuing to support SME property developers, but to step-up its lending efforts to the businesses that needed it.

BILL MAYNE

PATHFINDR

The lightweight devices use ultra-wideband, low power technology to scan for nearby colleagues, providing a full 360-degree field of detection. The devices then emit a short audible alarm or vibration when wearers move within two meters of one another. The device aims to help safely continue essential operations, while also providing peace of mind to staff when it comes to their own safety.

JAMES WATT BREWDOG In just two weeks during the early stages of the coronavirus-enforced lockdown, BrewDog went from not knowing anything about hand sanitiser to becoming a fully approved supplier to the NHS. The unicorn

business, known for its range of IPAs and beers, made over 100,000 units of its own hand sanitser – all for free. The firm received numrous requests from other businesses looking for more information on their process and how they make the sanitiser. They then shared their plans with any firm looking to join the fight against the virus.

AMY WORDSWORTH GOOD BUBBLE A new brand of antibacterial hand gel – Palm – has been launched by the Founder of children’s bath time range, Good Bubble, in response to the increasing demand for hand sanitisers caused by the global coronavirus pandemic. Palm is a hypoallergenic, moisturising, antibacterial hand gel, with over 60% alcohol content that kills 99.99% of bacteria while it cleans, freshens, and protects the hands. The range comes from Amy Wordsworth, who featured on Dragons Den in 2014 and received the backing of Deborah Meaden. As customers closed their doors due to the pandemic, demand for Good Bubble reduced. At the same time there was a huge demand for hand sanitisers so, as they already had the components in stock and an effective formulation ready, they decided to diversify and help the community. 

Amy Wordsworth - Good Bubble

Roxana Mohammadian-Molina Blend Network

MSS GROUP At Llamau – a Cardiff-based charity – their mission is to end homelessness for women and young people in Wales. They decided not to close any of their services during COVID-19. MSS group contacted BITC looking to donate PPE equipment for local Charities. Llamau received 300 litres of hand sanitiser from MSS Group and 400 litres of disinfectant to help those in need. Mayne and the MSS Group donated £10,000 to help the charity during the crisis. Business Leader - Inspire • Inform • Connect

Professor Steve West UWE

DEBATE

GLOBAL #1 UNIVERSITY BUSINESS INCUBATOR HELPING GROWING COMPANIES ACCESS R&D FUNDING, INVESTMENT AND TALENT SCALEUP@SETSQUARED.CO.UK | SETSQUARED.CO.UK/PROGRAMME/SCALE-UP-PROGRAMME

WHAT WILL THE CAR OF THE FUTURE LOOK LIKE? The car of the future is electrified, autonomous, shared and connected – welcome to the age of revolutionary change in the automotive industry.

o explore what the future holds for the concept of the car and how innovation is driving change, Business Leader Magazine and SETsquared, the global number one business incubator and enterprise partnership, gathered together a select group of academics, technology experts and scale-up business leaders for an in-depth roundtable debate.

In many ways, the acceleration of technological change in the automotive industry is being directed by environmental concerns. There is pressure to create a sustainable future with a transport system that creates no emissions and helps reduce congestion. In the UK, the Government has proposed new plans to ban the sale of petrol and diesel cars from 2035, and directives like these are quickening the evolution of cars powered by electricity. For this to happen, a widespread infrastructure for electrification needs to be

in place. During the debate, Dan Martin of Elmtronics, the UK’s largest independent supplier and installer of electric car chargers, explained the current situation: He comments: “We're starting to see a lot of private investment for electric charging points and we’re now over that tipping point, which was based on when electric cars (EVs) became a viable model. We’re now seeing a lot more EVs on the roads, hence why there’s now a growing number of charging stations available across the UK. “This means you can drive from London July - August 2020

FUTURE OF THE CAR

GLOBAL #1 UNIVERSITY BUSINESS INCUBATOR HELPING GROWING COMPANIES ACCESS R&D FUNDING, INVESTMENT AND TALENT SCALEUP@SETSQUARED.CO.UK | SETSQUARED.CO.UK/PROGRAMME/SCALE-UP-PROGRAMME to Newcastle in the very near future with complete confidence that you're not going to run out of charge and get stuck anywhere. Trust in the electric infrastructure is certainly growing, we're starting to see higher uptake from businesses operating with commercial fleets, as part of their commitment to sustainability. “There’s still a lot of technological development needed but there's increasing investment into charging technology and without the charging, electric and autonomous vehicles aren't going to work.” There is another form of electrification being developed which is built into our highway infrastructure. Professor Liana Cipcigan from Cardiff University is involved in the advancement of wireless dynamic charging on the road, in partnership with the National Grid: She comments: “We’re working on decarbonising transport through electrification to create a transport hub, as part of an EPSRC Network+ project. It’s a whole system approach, with interconnected infrastructures requiring different transport sectors working together, including road, rail and aerospace. It’s difficult to solve the challenges involved with decarbonisation without forming integrated solutions.” John Barker from Simply Do Ideas supports greater collaboration to solve the infrastructure challenge. He says: “The prevalence of autonomous vehicles is reliant on the development of other supporting technologies and that’s everything from advanced battery technology, electrification through wireless charging and dynamic grid systems and the 5G network to run their connectivity. “Collaborative solutions need to be found by joined-up thinking among diverse innovators working together digitally to drive interoperability, rather than leaving it to hopefully fit together like a jigsaw. I think this is a concern but also an opportunity for the industry.” Auroskanda Vepari from IPFT Fuels is Business Leader - Inspire • Inform • Connect

involved with the convergence of the utility sector and automotive technology in a project to develop dynamic grid charging:

regarding human lives while on the road. William Hartley, Director of Asirius and an independent automotive consultant, said:

His thoughts are as follows: “It’s a really interesting time. The supply chains involved have never interacted with each other and they think very differently, but they’re now coming in contact and working together in a way they’ve never done before. We’re focusing on efficiency and how to bring enhanced integration. The utility sector is a very low margin business so we think efficiency will be the big driver.”

“The legislation for autonomous vehicles needs to be defined so that the software can be optimised for what’s acceptable in different scenarios. I think there’s a reticence about being the first government to decide; instead they want to wait for someone else to do it first and see what happens before jumping on the bandwagon – which isn’t necessarily the best way to fill the world with autonomous cars! If you’re the first, you get the kudos of being first but if you’re first and it goes awry, you’ll always be the one who got it wrong.”

Regarding the future of the car, there is also a view that the innovation is evolving faster than the policy to oversee it. “The UK is certainly near the front of vehicle-to-grid technology, but the regulations and incentives need to catch-up so the technology and the policy can be married together,” said Russell Fenner from Hanger 19, which provides a chargepoint back office and supporting hardware and software solutions for EV and smart city markets.

THE UK IS CERTAINLY NEAR THE FRONT OF VEHICLE-TO-GRID TECHNOLOGY, BUT THE REGULATIONS AND INCENTIVES NEED TO CATCH-UP SO THE TECHNOLOGY AND THE POLICY CAN BE MARRIED TOGETHER" Russell Fenner

“The ability to accelerate the technology needs to go in line with the regulations. We could really steam along and have perfect solutions in autonomy or vehicle-to-grid, but if the regulations make the business case harder, it’s trickier to get the extra investment because those people want to see that they’re going to get ROI before they support the technology.” Regulation is a strong theme with regard to the safety of driverless cars. This is a well-documented ethical debate about autonomous vehicles (AVs) ‘playing God’ and how they will make valued judgements

There is the race to get the charging infrastructure in place and we need governance for it and also for how AVs are going to behave, and this is a key part of convincing people that they are safe. The need to change mindsets is happening now. Many car manufacturers have massively invested in hybrids and electric cars, but there is a concern that the British public are not snapping them up. “Leonardo DiCaprio bought a hybrid Toyota Prius in the 2000s and it made news headlines; everyone said he was an environmentalist saving the world,” said William Hartley. “These days people are not perceived as geeks if they buy an electric car, they’re instead seen as leaders and revolutionaries who’re interested in driving exciting cars made by cutting-edge brands like Tesla. But people are still not willing to compromise on the convenience of petrol. Consumers are savvy enough to realise that going electric gives them performance, it’s clean, green and efficient BUT you can’t charge it in 5 minutes at a petrol station. This need for convenience is driving forward innovation for rapid-charging systems and advanced battery technology.

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DEBATE

GLOBAL #1 UNIVERSITY BUSINESS INCUBATOR HELPING GROWING COMPANIES ACCESS R&D FUNDING, INVESTMENT AND TALENT SCALEUP@SETSQUARED.CO.UK | SETSQUARED.CO.UK/PROGRAMME/SCALE-UP-PROGRAMME “The engine is no longer what sells a vehicle; the powertrain is just the inconvenience that happens to push the vehicle forward. The vehicle is really just a means to transport people in a way that they want to be transported, with an experience that they want to feel, and so the powertrain needs to become invisible in terms of size, cost, inefficiency and so on. “The future is about the transportation experience. The mentality behind how a car is used needs to change; how to get people away from driving their car in the morning, driving it in the evening and the car just sitting in a car park all day and their driveway at night. Once there’s progression, you can then apply the driverless vehicles and the car sharing schemes to the world,” said William Hartley. Car AI technology has also become more prevalent. Haptic alerts play a role in driver assistance and that kind of safety-inspired technology is becoming integral inside all new cars. Level 3 autonomous cars are already on sale, whereby the driver starts the journey and then takes their hands off the controls and relaxes into a more passenger experience. Ralf Kernchen from Accelogress, a UX Design coding business involved in transport software, said: “I think progress with AI technology and its adoption isn’t as far ahead as hoped. As a result, the industry is concentrating on autonomous driving functions that people are more familiar with, like the autopilot from Tesla which introduces assistive auto driving for safety and convenience, and these interim measures will help smooth the transition to autonomy.”

Ultraleap is developing advanced cabin technology and is very much at the forefront of what is being developed for the car of the future. Charlie Alexander is from Ultraleap: He says: “Why would you buy a Porsche when you can't drive it? The question we're posing to the premium automotive brands is how do you plan to differentiate yourself and enrich the travel experience? An obvious way is through providing richer media systems in the rear of the vehicle, where the passenger could interact with a 3D interactive film or receive video conferencing or engage with a 3D object where they can reach out, hold it, feel it and interact with it. “There’s a huge advantage to being able to operate objects in midair, not by holding a wand or a joystick but actually by reaching out and holding an object which you can then feel, using our haptics technology, and then rotate and engage with it in the same way that you might in virtual reality. We can add associated technologies like holographic screens and augmented reality to create a truly connected experience.”

Today’s emerging share-centric transportation heralded by Uber is poised to alter vehicle ownership economics forever. Some reports estimate there will be more than 11 million shared driverless vehicles operating on the roads globally by 2030, serving an average of 64 users per shared vehicle. Ralf Kernchen from Accelogress has been researching how to further support this future shared economy by designing solutions that make public transport more efficient: He says: “Public transport is the most sustainable way to travel. What we’ve been working on is how to help people get out of their car and onto public transport. For us this is developing apps that interconnect different modes of transport to provide real-time travel information, so people can plan their journey better and have a seamless user experience.” At the heart of all of this development is the drive for zero-emissions – but what technology can be developed in the meantime to act as a bridge between combustion engines and electrification? Parvez Akhtar from the Institute of Advanced Automotive Propulsion Systems (IAAPS) at the University of Bath has extensive knowledge of vehicle development: “Right now, I’d like to see a semi-autonomy for conventional fossil fuel-powered vehicles that essentially controls the car’s ability to achieve better fuel economy and therefore less pollution. This would be another step in the right direction for zero-emissions and full Level 5 autonomy, which I can’t see coming within the next five years.”

WHY WOULD YOU BUY A PORSCHE WHEN YOU CAN'T DRIVE IT? THE QUESTION WE'RE POSING TO THE PREMIUM AUTOMOTIVE BRANDS IS HOW DO YOU PLAN TO DIFFERENTIATE YOURSELF AND ENRICH THE TRAVEL EXPERIENCE?" Charles Alexander

July - August 2020

FUTURE OF THE CAR

GLOBAL #1 UNIVERSITY BUSINESS INCUBATOR HELPING GROWING COMPANIES ACCESS R&D FUNDING, INVESTMENT AND TALENT SCALEUP@SETSQUARED.CO.UK | SETSQUARED.CO.UK/PROGRAMME/SCALE-UP-PROGRAMME “The reality is there’s a ton of regulatory issues on the ground, let alone in the air, and other hurdles to overcome relating to battery power, noise, certification and autonomy. But what we do with racing is a starting point; it’s a test bed and an opportunity to see this form of mobility in action. "Formula E racing has progressed the technology behind electric cars, boosted public awareness and pushed electric car performance into a state of acceptance.

RIGHT NOW, I’D LIKE TO SEE A SEMI-AUTONOMY FOR CONVENTIONAL FOSSIL FUEL-POWERED VEHICLES THAT ESSENTIALLY CONTROLS THE CAR’S ABILITY TO ACHIEVE BETTER FUEL ECONOMY AND THEREFORE LESS POLLUTION." Parvez Akhtar

Another way technology is supporting sustainable transportation is through reducing the impact of fleets on the environment. Florian Wagner from Clean Cold Power is developing refrigeration that is powered by air – without fossil fuels or air pollution: He explains: “Refrigerated fleet operators have a substantial impact on the environment and there’s no ready-made solution that is affordable and practical to replace the use of diesel-powered refrigeration. “Our refrigeration units are powered by sustainable nitrogen from the air and not only do they reduce emissions, they’re also quieter, reach cold temperatures faster, and have more precise cooling control than conventional systems. “We’re offering our technology to supermarket chains and food producers and we also see our solution being used as air conditioning on buses and other forms of transportation,” said Florian Wagner. So far, we have focused at ground-level but there is a whole future for the car in the sky. Jack Withinshaw from Airspeeder, the Business Leader - Inspire • Inform • Connect

world’s first electric flying car racing series, explains how the future of mobility can be forged through motorsport:

FLYING CARS IS SOMETHING THAT WAS PROMISED FOR 2020 BUT THEY’RE ON THE HORIZON. WE EXPECT IT TO BE A $1.5 TRILLION INDUSTRY BY 2035 AND THERE’S A LOT OF INVESTMENT BEING PUSHED INTO THIS SECTOR" Jack Withinshaw

He says: “Flying cars is something that was promised for 2020 but they’re on the horizon. We expect it to be a $1.5 trillion industry by 2035 and there’s a lot of investment being pushed into this sector. Uber is leading the way and the early application is likely to be flying taxis. Toyota has invested about $600m into designing their flying autos and Daimler and Hyundai have also entered the sector. Those brands view their design as being about mobility rather than automotive.

“Through racing we can advance our mobility technology and ensure that after a few years, it is at its best state for public use.” IN SUMMARY Many challenges lie ahead for the automotive industry – technological, industrial and legislative – but its transformation is well on the way and there is much opportunity for those able to support the transition. SETsquared is establishing a network of ambitious companies in the automotive industry who want to scale-up and raise investment for their R&D. Colin Stakem, Sector Lead for Advanced Manufacturing from the SETSquared Scale-Up Programme: “The Scale-up Programme is a partnership between the universities of Bath, Bristol, Cardiff, Exeter, Southampton and Surrey and it offers funded support to help develop collaborative R&D bids. It starts with a series of one-day innovation workshops to enable SMEs to further enhance their business model and establish relationships with our university partners. “The Scale-Up Programme is linked to an investor network and we have an online platform of investors, which forges links to individual projects. Throughout the year, we organise investor showcase events to give innovative SMEs the opportunity to meet and pitch to investors. This is further supported through a series of focused networking opportunities at industry events with leading speakers." 

TECHNOLOGY

FEATURE

CYBER ATTACKS ON THE RISE AS BUSINESSES EMBRACE REMOTE WORKING

n industry that already moves at breakneck speeds of innovation and counter adaptability to new threats – COVID-19 has brought fresh threats and opportunities to the cyber security sector. Business Leader spoke to some of the UK’s leading authorities on the matter, to find out how the nation has coped, and what the future holds for the safety of businesses.

When it comes down to analysing what is needed to run a successful company in the modern world – having the latest and most secure cyber protection in place has become crucial for today’s business leader. Following the outbreak of the COVID-19 pandemic, and its devastating impact on businesses around the world, is now the time to take stock of whether your business’ security is up to date? Morten Brøgger, CEO of international secure collaboration platform Wire, comments: “Cyber threats are a global problem that are set to cost the global economy $6tn (£4.7tn) by 2021. That’s immense, even before you consider the impact of a post-COVID-19 recession, which will undoubtedly result in an increase in financial crimes (including cybercrime). In light of this, it’s important that companies are using the right tools to proactively protect their important company data against cyber threats.” Companies of all sizes and sectors are affected by cyber threats each day. In 52

the UK alone, SMEs suffer 10,000 cyberattacks daily. WHAT THREATS ARE MOST PREVALENT RIGHT NOW? With the onset of COVID-19 affecting all industries, and with technology advancing at a faster rate than any point in history – cyber threats have increased to worrying levels for business owners. Founder and CEO of Cybsafe, Oz Alashe MBE, comments: “Our own analysis of data from the Information Commissioner's Office shows that phishing dominates the UK cyber threat landscape, accounting for 45% of all reported data breaches. “Phishing is so popular because it's easy. If I can convince you to give me your credentials, then that’s it. There's nothing more that I need.” Further analysis from Wire shows that a staggering 97% of employees are unable to spot a phishing email. At a time where the focus of leaders and management will be on other areas of a business, this highlights how easy it can be on the wrong side of a cyber breach. And it isn’t just phishing scams that a business needs to prepare for.

THE 400% INCREASE IN ATTACKS DURING THE FIRST MONTH OF THE COVID-19 PANDEMIC TYPICALLY DEMONSTRATES HOW HACKERS TAKE ADVANTAGE OF A CHAOTIC SITUATION.” Andrew Clarke

The extent of cyber security threats has increased – and the nature of cyber-attacks are constantly evolving. According to a recent survey conducted in March 2020 by the Department of Digital, Culture, Media & Sport, almost half of UK businesses (46%) and a quarter of charities (26%) report having experienced cyber security breaches or attacks in the last 12 months. There has been a fall in recent years in businesses experiencing attacks caused by viruses or other malware – but among companies who experienced cyber incidents in the last year, 86% of those were phishing attacks, up from 72% in 2017. Guy Lloyd, Director of Cysure, said: “Phishing attacks where employees are tricked into opening an email, attachment or link to a rogue website and then encouraged to provide sensitive information, remain the most prevalent cyber security risk. Google announced that during April 2020, it prevented 100 million phishing emails daily from reaching their targets. More recently, they have seen 18 million daily malware and phishing emails related to COVID-19.” COVID-19 has increased the level of threat towards cloud services within companies in the UK by 630% - further putting credence to how opportune cybercriminals are, and how adaptable a business must be to counter this. Andrew Clarke, Chief Strategy Officer of Assured Cyber Protection, comments: “As technologies advance at an extraordinary rate, the cyber security landscape changes and cyber adversaries exploit the vulnerabilities caused by confusion or poor management. July - August 2020

CYBER SECURITY

OUR OWN ANALYSIS OF DATA FROM THE INFORMATION COMMISSIONER'S OFFICE SHOWS THAT PHISHING DOMINATES THE UK CYBER THREAT LANDSCAPE, ACCOUNTING FOR 45% OF ALL REPORTED DATA BREACHES.” Oz Alashe MBE

"Hackers change their MO to adapt to the changing situation – if they do it faster than their targets then they may prevail. Because of the rate of advance, the level of cyber risk has dramatically increased. The 400% increase in attacks during the first month of the COVID-19 pandemic typically demonstrates how hackers take advantage of a chaotic situation.” However, before any business looks to prevent an attack happening, it is worth considering how the cybercriminal has evolved in recent years. Russell Henderson, Director at TruStack, comments: “Cyber espionage and attack are big business generating a serious amount of money, either in terms of ransoms, reputational or direct costs to businesses. Highly-skilled people operate on both sides of the battle. It is predicted Business Leader - Inspire • Inform • Connect

globally that companies will spend in excess of $137bn (£108bn) in 2020 to protect against cyber threats. However, whilst there are varying estimates and predictions of the global cost of cyber-attacks on businesses in 2020, the highly regarded technology research company Gartner predict it will be around $3.9tn (£3tn). “Cyber-attacks are no longer just from individuals sitting in bedrooms – today businesses operate as ‘hackers for hire’, state and political sponsored cyber-attacks shape global economies and political landscapes. The skills behind the attacks are increasing, the rewards for those committing the tasks are increasing, either in monetary terms or notoriety and the uses for the data that is stolen are increasing.” ISSUES WITH REMOTE WORKING COVID-19 has forced many businesses to

have their workforce continue with their jobs from home – but does that create further troubles for firms? And more opportunities for hackers? Tom Draper, Associate Director, Technology and Cyber Practice at global insurance firm Gallagher, explains: “With much of the UK workforce currently working from home, organisations of all sizes have seen a marked increase in phishing attacks, in particular with cyber criminals exploiting the pandemic to try and trick victims into opening infected attachments and links, or to enter their credentials via email. The emails can be very deceptive and may appear to be sent from a trusted source or familiar brand – often asking recipients to open a link to a new company policy related to the COVID-19 pandemic. Cont.  53

FEATURE “Additionally, the increase in videoconferencing, remote access, and virtual private network (VPN) services in the home are also expanding the attack surface that cyber criminals can exploit to gain entry into a corporate network.” WHY HAS THE THREAT INCREASED? Alashe continues: “Remote working does make it more likely that you will fall victim to an attack. To understand why, we need to understand a bit about human psychology. Our environments influence our behaviours - what scientists might call ‘schema theory’. Schemas influence our behaviours in all areas of life. For example, we shout at football games, but we whisper in libraries. We dress to impress in offices, but we dress casually when we’re at home. For the most part, schemas are extremely useful. “In the context of cyber security, our usual schemas at home often aren’t appropriate for keeping our employers and the data that we’re handling safe. For instance, we might instinctively use personal devices when working from home. Similarly, we might take phone calls without disabling our Google Assistants, or we might forego software updates that would otherwise be automatic. The cyber security conscientiousness that comes more naturally to people in the office, often feels unnatural when we’re at home. And that can be dangerous.” And this is why the phishing scams have risen to such prominence over the last few months – along with malware attacks (this is where cybercriminals install malicious software on someone else's device without their knowledge to gain access to personal information or to damage the device). Patrick Burgess, the Technical Director at Nutbourne, comments: “In the wake of the coronavirus, around 20% of the global workforce has been working from home. That, in turn, has seen a spike in the number of phishing attacks and malware attacks, placing organisations over the world at greater risk of a data breach. “Most commonly, these attacks are coming in the form of COVID-19 themed text 54

CYBER SECURITY IN THE WAKE OF THE CORONAVIRUS, AROUND 20% OF THE GLOBAL WORKFORCE HAS BEEN WORKING FROM HOME. THAT IN TURN HAS SEEN A SPIKE IN THE NUMBER OF PHISHING ATTACKS AND MALWARE ATTACKS, PLACING ORGANISATIONS OVER THE WORLD AT GREATER RISK OF A DATA BREACH.” Patrick Burgess

messages or emails. These contain a fake link that, if accessed, installs malware on your system or steals your credentials. The types found and detected have been designed to specifically access banking details or financial information. “Malware is an opportunistic form of attack and works best when people don’t have good systems to repel it. People are working from home, many at fairly short notice, and the new systems aren’t well set up.” PROTECTING YOUR BUSINESS Even without the additional challenge of COVID-19, and its impact on the way company’s IT systems and securities operate – it is clear to see that firms must adapt to this new world, and have certain plans in place to protect the business and its staff. Brøgger comments: “The commitment to security has to start from the top level of leadership. The CTO and CISO must be aware of both their company’s specific needs, as well as of the latest tools in the

market to meet those needs. In addition, the CEO must also be on board with the decision to lead with security. If security is an afterthought, it will never be implemented properly, and the business will inevitably suffer as a result. Trouble is, 40% of employees believe that their CEO undervalues cybersecurity and our own recent survey found that 83% of UK business decision-makers fail to prioritise security when it comes to remote working. These findings serve as a stark reminder that leaders must take cybersecurity more seriously.” In order to protect the business, there are several simple steps that should be adhered to by all employees, at all levels. Draper continues: “Best cyber security practices - such as ensuring employees have strong passwords in place, conducting regular systems and antivirus and antispyware software updates, providing firewall security for internet connections, and turning on multiple-factor authentication - can significantly reduce the risk of a cyber-attack, although can’t remove it completely. “Because the risk cannot be completely eradicated, companies will leave themselves exposed to financial and reputational damage if they don’t have cyber insurance in place, in the event they fall victim to a cyber-attack. That’s where the role of a specialist cyber insurance broker comes in – helping organisations to identify, mitigate and respond to any risk of financial loss, disruption or regulatory exposure, in the event that their digital systems or data become compromised, paralysed or attacked.”  July - August 2020

INTERVIEW

LEADING THE EVOLUTION OF THE CYBER INSURANCE MARKET FOR SMEs

usiness Leader recently spoke to Freddy Knight – the Innovation Director for one of the UK’s leading cyber insurance providers, Optimum Speciality Risks (OSR) – to discuss how his innovative company is disrupting the industry, and helping businesses prepare themselves against future risks. CAN YOU TELL US ABOUT OSR? OSR was founded in 2018 and rebranded and relaunched in 2019, following my arrival as Innovation Director to launch our SME product, Optimum Cyber Plus. Optimum Cyber Plus is a unique insurance offering and was created to help make the premium cyber insurance and cyber security solutions bought by large, corporate organisations accessible to local insurance brokers and their SME clients. Until its release in 2019, small business owners in the UK had to choose between two realities; Pay hefty premiums for comprehensive cyber insurance solutions that, in most cases, were totally out of proportion to the rest of their insurance/ risk management spend, or pay a more reasonable premium for a budget solution which, in the majority of cases, were lacking in appropriate coverage, response services and risk management capabilities. Our policies start at £75 and provide a combined, partner led insurance and risk management package worth in excess of £3,000. All of our policyholders are provided access to a suite of complimentary risk management aides, including a onehour consultation with one of the UK’s leading GDPR consultancy practices, GDPR123; online employee awareness training modules covering cyber-crime, data protection and cyber security; a free vulnerability scan from KryptoKloud and two days free consultancy to resolve any issues highlighted; access to a Cyber Essentials Certification and Management from Berea

Business Leader - Inspire • Inform • Connect

(Cyber AMI); and ten licences for Firewall and Backup Solutions via Avast Business Pro Plus. AS A RESULT, WERE YOU RECENTLY A FINALIST FOR A PRESTIGIOUS AWARD? That’s right, we were shortlisted for Cyber Newcomer of the Year at the Advisen Cyber Risk Awards 2020 in New York. There were some amazing businesses in our category and to have the work we are doing acknowledged, on a stage like that, made us all immensely proud. WHAT MEASURES SHOULD BUSINESSES HAVE IN PLACE TO PROTECT AGAINST CYBER THREATS? There are a million and one different approaches that an organisation can take to manage their cyber risk, but for SME businesses, putting the following measures/services in place will stand them in great stead; employee awareness training modules; quality antivirus solutions including offsite data back-ups; and a comprehensive cyber insurance program, including risk management support It’s important to remember, however, that cyber security is continuous and business owners shouldn’t rest on their laurels if they have already implemented these suggestions. Threat actors only need to be successful once to cause disruption, whereas a business’s defences need to be successful every time. WHAT CYBER SECURITY RISKS ARE MOST PREVALENT RIGHT NOW? Whilst not a specific attack or threat, I think that businesses need to be aware of one factor more than any other when it comes to cyber security, and that is their resilience and ability to continue to operate following a cyber event. Increasingly, from our own cyber insurance claims data, we have seen the mishandling of a cyber event become responsible for some substantial losses, so it is essential to ensure your organisation has access to a proper incident response service.

Freddy Knight - Innovation Director

HOW ARE CYBER-ATTACKS BECOMING MORE SOPHISTICATED? Phishing attempts are becoming more and more sophisticated by the day, and many experts see this trend continuing through 2020 and beyond. More businesses provide training on matters of cyber security now than ever before and the criminals know this. They are forever advancing their techniques in line with technology innovations like AI, machine learning and, I imagine in the not too distant future, quantum computing too. HOW CAN YOU TRAIN STAFF TO BE AWARE OF THE THREAT OF CYBER SECURITY? OSR policyholders automatically receive access to an online suite of training modules to educate their employees on subjects like email and password security, virus and malware protocols, phishing, social engineering and remote working. Combining an insurance policy with an employee training platform is just one way in which we are helping to change that cyber insurance narrative, from one of fear to one of education and understanding. 

Call: +44 (0) 203 675 0910 www.optimumsr.co.uk

REGIONAL REVIEW

A city in the grip of existential change â&#x20AC;&#x201C; Business Leader finds out what the future holds for Bristol

s Bristol grapples both with the onslaught of the pandemic and questions around its identity following the toppling of the statue of Edwards Colston, Business Leader brought together a group of company owners and city leaders to discuss how the city is reacting and its prospects for the future.

THE LAST FEW MONTHS HAVE BEEN UNPRECEDENTED â&#x20AC;&#x201C; WHAT HAVE BEEN THE MOST VIVID MOMENTS FOR YOU? James Woollam: "There have been a few, and each a reminder of the one-off nature of what we are living through. Looking out of the office window in central Bristol and seeing no cars or people in the early days, when I was in to check the post (we were identified as an essential business), was a really stark reminder of how significant the effect of lockdown was. 56

"The daily Zoom calls we have with the staff, seeing them remain upbeat and cheerful whilst making video calls a normal part of our daily routine. And on a personal note, my partner sending a picture of herself in full PPE including face shield whilst working in the ICU of Southmead Hospital really brought things home." Tim Bowles: "During the first week of lockdown, I worked with teams across the West of England Combined Authority (WECA) to contact hundreds of local businesses

on behalf of the NHS, to call for Personal Protective Equipment (PPE) donations. "Over 125 local organisations pledged their support, with tens of thousands of masks, gloves aprons and hand sanitiser being offered to the NHS for free. "Looking back, everybody involved in coordinating or donating to the effort should feel very proud of their rapid response, and how effectively they were able to adjust to remote working to make it happen." July - August 2020

BRISTOL

James Woollam MD, Hayes Parsons Insurance Brokers

Tim Bowles Metro Mayor for the West of England

"As a working mother, what has been encouraging from this situation is our ability to work from home productively. Flexible working and balancing work and family life is important to many and the last few months have shown it something we all have to, and can, do." Lee Bignell: "The onset of COVID-19 saw some huge changes for everyone uncertainty, the rapid slowing of work flow, the onset of furlough, the daily need to watch the government updates, the working safely with daily changes in policy and advice to essential projects and works basically everyday felt like Sunday, so there were big adjustments for all of us. "Having time to do good was a huge positive for us too – we teamed up with the Bristol Food Union to support the local community, which has seen me dropping hot meals and food packages to those in need all over the city every Friday using our fleet of vans."

Rachael Sherratt: "Probably walking down my local shopping street and seeing it empty when lockdown first happened. "It felt eerie, to have a space that is usually thriving be suddenly so quiet. "It also shocked me how wide the road is, when you take off parked cars either side of it. It made me realise that if we can reduce reliance on car ownership, we can open-up Bristol so much more for the people who inhabit it. Business Leader - Inspire • Inform • Connect

James Durie: "Well, I think the first three weeks of lockdown were, for me, the most vivid. I remember a sense of bewilderment tinged with a degree of fear, which I think we were all feeling a bit between lockdown on March 23 and through into April, on both a personal and business level, as things felt they had been turned upside down in a way and a rate of speed no one seemed to have expected. "As lockdown measures came into effect (and trying to digest the implications of announcement after announcement from government) there was the worry over simple but important things like whether

Lee Bignell CEO, Mobius Works

or not home broadband and our own IT systems and internal processes would stand up for our own 200 staff to be able to work from home, as well as, of course, for all our members for what was an unknown period of time ahead. More fundamentally, would the healthcare and food supply and distribution systems be able to cope and pivot to most people operating from home." HOW HAS YOUR BUSINESS BEEN AFFECTED? James Woollam: "People are looking for clear guidance on the insurance implications of the virus and on risk management for both lockdown and opening back up, with a myriad of different opinions and sometimes dubious 'facts' around, and so we have never been busier; but it is a different type of busy to normal. "We realised early on that we needed to communicate with our clients more than ever, and so we built a portal filled with guidance, have provided over a dozen different webinars to different organisations and worked hard to speak personally with every client as often as possible. It has been busy, but I am proud of what we have achieved, and I hope it has made a real difference to our clients."

Cont.  57

REGIONAL REVIEW

Rachael Sherratt Associate, JLL & Founder of Women in Property South West

Lee Bignell: "We have been incredibly lucky. Although we have seen some work paused, we've also seen a massive upturn in enquiries during lockdown from various new sectors which is exciting. As a business we are agile and work in many sectors, so we are in a very fortunate position that we've been able to be quite reactive and switch up our focus based on what our clients need. "With many of our clients facing a new challenge, with the introduction of social distancing and increased cleaning requirements, we've created a new range of services to help businesses implement Perspex screening, repurpose unused space for extra seating and ensure all of their appliances are cleaned and serviced ready for reopening."

MANY BUSINESSES LIKE OURS HAVE REALISED THAT WORKING REMOTELY ON A LARGE SCALE CAN BE EFFECTIVE. IT’S LIKELY THAT THIS WILL BE A CATALYST FOR MORE FLEXIBLE AND AGILE WORKING AND ONE THAT WE’RE READY TO EMBRACE.” Rachel Sherratt

HOW DO YOU SEE THE FUTURE FOR YOUR BUSINESS AND THE CITY OF BRISTOL? James Woollam: "The effect on our turnover is so far relatively muted, but we believe this could change as the government withdraws support to companies later in the year. Our business will make permanent changes: more working from work and flexible working for our staff, more communication through digital methods, and generally more of a digital journey for clients - yesterday we launched our first fully online product, for example. "Bristol is in a good place to take advantage of some of the likely consumer changes, with booming creative and technology industries. I believe people will also realise that companies that have looked after their staff in this period, are proudly independent and have strong values, are worth supporting more than ever, and so both my company and Bristol generally can benefit from this trend." IN YOUR OPINION WHAT WILL BE THE LASTING IMPACT OF THE PANDEMIC ON THE CITY? Rachel Sherratt: "I think we will see businesses adapt – some quicker than others – to the changing scenario and look very different in the coming years.

James Durie Director, Bristol Initiative Business West

"Many businesses like ours have realised that working remotely on a large scale can be effective. It’s likely that this will be a catalyst for more flexible and agile working and one that we’re ready to embrace. The lockdown period has, however, also shown us the need and desire for physical interaction. The office is still going to be a place colleagues will come together in creative hubs and to form ideas. "There are also opportunities – we have seen a rise in industrial and logistics enquires for example. On a practical level I think we will see local communities grow, cycling become more popular and wellbeing become a key priority. With public anxiety on the use of buses and trains, Bristol will need to continue its investment in cycling infrastructure – and we are well placed to capitalise on that, as Bristol has the highest percentage of cycling commuters for any regional city." WHAT IS GOING TO NEED TO HAPPEN IN YOUR OPINION, TO ENSURE A SUCCESSFUL RECOVERY FOR THE CITY? Rachel Sherratt: "For a start, we need to engage all corners of our city into the strategy. There is no roadmap for the situation we find ourselves in now and it is an opportunity for us all to come out of this more diverse, sustainable and stronger. "The big story is the systemic changes the COVID-19 crisis will bring in the lowcarbon economy. We must not forget our commitments to meet the UN Sustainable Development Goals and the One City plan, and ensure we rebuild a Bristol that July - August 2020

BRISTOL can unlock opportunities and is more resilient in the longer-term. There is a huge opportunity to reimagine how the city can become more resilient – how it can support economic recovery and accelerate action."

the different parts of the business and employer community to look out and after each other, through weekly One City Zoom meetings and now to start to look and plan for the challenges ahead."

HOW HAVE BRISTOL LEADERS REACTED TO THE SITUATION FROM YOUR VANTAGE POINT?

Tim Bowles: "We are all facing unique challenges at an unprecedented scale; our cities’ public transport services are under immense financial strain due to collapsed passenger numbers and revenues, something which will continue for as long as social distancing regulations are in place. We have also seen a real challenge with the economic impact of lockdown on local employers and residents.

James Durie: "It has been truly inspiring to see how resilient we are as a business community but also as a city community when something like this hits you, it tests every facet of how we live and work. "Some truly remarkable individuals, such as Andy Street, Sue Turner and James Freeman – to name just three – who I believe stepped up to the plate to help do what they felt they, and the organisations they help run, could do to support and protect key workers and some of the most vulnerable people in our society. "But also, to see the Gold Command across the public health, police, councils and other agencies swing into action with rigour, professionalism and some very steady hands. I think it has brought together all

"I’m working closely with the other Combined Authority Mayors across England and we have regular conversations with Ministers, including the Prime Minister and Chancellor. Devolution – and the fact we work so closely with our councils - means that we can take the decisions that are best for the West of England, considering the variety of local circumstances, rather than having a ‘one size fits all’ approach given to us from Whitehall."

WHAT ARE BUSINESSES TELLING YOU ARE THE MAIN CHALLENGES THEY ARE FACING? James Durie: "In April, we conducted a survey of a thousand businesses and only 16% of them said they would be able to survive if lockdown lasts six months or more. "Three months in, it is becoming increasingly clear that a continued blanket lockdown isn’t sustainable. The question of how we slowly take the lid off and ease lockdown measures is a difficult one to answer, but there needs to be a really difficult balance between protecting lives and livelihoods, whilst avoiding another spike of course. "Then there is the human dimension that businesses are grappling with. How to keep the workforce engaged and healthy whilst everyone is working from home? Are we doing enough to promote positive mental health and wellbeing? Things like that.

Cont. 

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Business Leader - Inspire • Inform • Connect

REGIONAL REVIEW

BRISTOL

crisis, so it is absolutely right that we’ve been able to act quickly to protect it and lay the foundations for an even stronger bounce back.

"Lots of businesses are also thinking positively about the future, despite many challenges they face – looking at how they operate more sustainably, for example." WHAT ACTION HAS YOUR OFFICE TAKEN TO SUPPORT BUSINESSES AND WHAT FUNDS ARE AVAILABLE? Tim Bowles: "We’ve stepped up our business support since March; thanks to devolution we’ve been able provide

support for businesses beyond central government’s offerings, in a way which best suits our region’s needs. "We’ve changed some of our current programmes – for example, our Creative Scale Up initiative has shifted focus from expansion and scaling up to supporting creative sector businesses around survival and resilience. The West of England’s creative sector was thriving before this

"We’ve launched new programmes where we could see an immediate need – for example, Trading Better Online to help small businesses enhance their web presence by adopting new technology. We’ll soon be launching a new fund to support innovation and we will be helping businesses support employees with their mental health too. Much of this support is available through the Combined Authority’s West of England Growth Hub, which I’ve recently expanded. "Because I know that this is a worrying time for many residents whose jobs face an uncertain future, I’ve also expanded our Future Bright career coaching programme to cover residents who have seen their jobs affected by the pandemic." 

SETsquared Bristol named hottest accelerator in Europe SETsquared Bristol fought off stiff competition to win the title of being Europe's top accelerator, beating 11 companies in the long list including London and international-based Founders Factory and Entrepreneur First. The University of Bristol led incubator, based at Engine Shed, supports the growth of technology-based businesses, helping them move from initial ideas into commercial viability. The Europas is the only independent awards to recognise the European tech start-up scene. Set up by online publisher TechCrunch in 2009, it has spotted some of Europe’s most innovative and successful start-ups, including Spotify, TransferWise, 60

SoundCloud and Babylon Health. Steve Edwards, SETsquared Bristol Centre Director, said: “Bristol is now rightfully recognised on a par with other big tech areas like London, and this is because of its culture and expertise, from high-tech businesses and incubators, to the student, academic and research talent emerging from the University of Bristol and beyond.” The title of Hottest Accelerator in Europe continues SETsquared Bristol’s ongoing success, having maintained its worldleading position of global number one university business incubator by UBI Global since 2015 as part of the SETsquared Partnership.

Steve Edwards Director, SETsquared Bristol Centre

July - August 2020

s -19 rie VID go CO ard te EW Aw Ca ur N ero 15 g o ss H in ne ud si cl u In B

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