Business Leader Magazine: June/July 2021 by Business Leader magazine

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THE HUNGRY UNICORN Business Leader talks to Timo Boldt about Gousto’s impressive growth

regional to global

How are businesses funding their growth plans?

digital transformation Are leaders choosing the right tech?

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CONTENTS

IN THIS EDITION 8 FEATURE INTERVIEW: TIMO BOLDT

Founder and CEO of Gousto speaks to Business Leader about their recent unicorn status

12 AGENDA: PASSPORT VACCINES

One of the most hotly-debated topics in business, government and amongst the general public

16 COMMERCIAL PROPERTY DEBATE

Industry experts assess the UK office sector, the current take-up levels, inward investment and mixed-use developments

20 FAST TRACK: HILLTOP HONEY

24 DEBATE: E-COMMERCE

48 DEBATE: FUNDING FOR GROWTH

Profiling a UK business experiencing exponential growth – this time we speak to the FMCG brand Hilltop

Business Leader explores why the argument is not just as simple as online retail versus the high street

31 TOP 32 FEMALE TECH LEADERS

Business Leader - Inspire • Inform • Connect

52 CEO IN FOCUS: ASH SCHOFIELD

Profiling 32 of the UK's leading female tech influencers, entrepreneurs and business professionals

42 FEATURE: DIGITAL TRANSFORMATION How can businesses in the UK know that the technology they are introducing is correct?

Industry leaders in the tech space give their take on how external funding will help growth ambitions

The giffgaff CEO discusses his journey in taking up the role, his leadership lessons and the importance of learning from mistakes

58 FEATURE: NON-EXEC DIRECTORS

Non-Executive Directors can be a useful soundboard for ideas and strategy – but should your business look to bring one onboard?

NEWS

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 SALES Sam Clark - Head of Awards Sponsorship E: sam.clark@businessleader.co.uk Emma Filby - Head of Advertising E: emma.filby@businessleader.co.uk DIGITAL & WEB Josh Dornbrack - Head of Multimedia E: josh.dornbrack@businessleader.co.uk Gem Crew - Social Media & Community Manager E: gemma.crew@businessleader.co.uk Melissa Shephard - Website Development E: melissa.shephard@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

Go:Tech 2022 officially underway Following the conclusion of the highlysuccessful 2021 Go:Tech Awards, this year’s event has officially begun – and entrepreneurs and businesses across the country are already sending in their entries.

For the 2022 event, there are two new categories already announced. The Healthech Business of the Year and Sustainable Tech Business of Year will be welcome additions to the UK’s leading tech awards.

With new categories and additions to the independent judging panel due to be announced in the weeks and months ahead, the Go:Tech team have outlined the event plans. Entries are open until October 1 2021, with judging taking place until the end of the year.

With more information set to be released in due course, keep up to date with the latest announcements at www. gotechawards.co.uk.

The finalists will then be announced in January 2022, and then the winners will be crowned at a live awards ceremony in April 2022.

Founder of the Go:Tech Awards Andrew Scott comments: “After an amazing 2021 Awards, I cannot wait to get started with next year’s event! We have had the UK’s leading tech businesses and personalities enter and 2022 is set to be our biggest event to date.”

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June/July 2021

NEWS

KPMG tells 16,000 staff they can leave early once a week after lockdown

UK economy to see strongest growth in over 70 years According to information released by the Bank of England (BOE), the UK economy will, this year, see its strongest growth since 1949. This will largely be down to the lifting of the remaining Covid-19 restrictions, and retail outlets opening for customers. In total, according to the BOE, the economy is expected to grow by up to 7.25% in 2021, with extra government funding being made for businesses, in order to reduce job losses across a variety of sectors. Despite the positive prediction, the news follows the sharpest drop in the economy in more than 300 years, following the outbreak of COVID-19. The economy fell more than 10% since March 2020. Interest rates will remain at a record low of 0.1%.

Global accountancy firm KPMG has told its 16,000-plus staff across the world that they can leave early one day a week as part of a move towards more flexible working after the latest lockdown. As part of the new plans, staff members will be in the office four days each fortnight, with the rest of the time at home, at remote sites, or with clients. KPMG also announced that all employees would also get an extra two-and-a-half-hours off per week in the summer if they complete their normal 35 hours of work. Jon Holt, CEO of KPMG UK, said: "We trust our people. Our new way of working will empower them and enable them to design their own working week. The pandemic has proven it's not about where you work, but how you work. We have listened to our people and designed this strategy around our staff and how they can best support our clients."

Aston Martin reports pre-tax loss of £42.2m for Q1 Luxury car maker Aston Martin reported a pre-tax loss of £42.2m for the first three months of 2021. This figure was down from £110.1m in the same period last year - in the lead up to the initial COVID-19 lockdown. Aston Martin, which secured investment from Canadian billionaire Lawrence Stroll earlier in 2020, revealed that it had sold 1,353 cars so far this year - more than double the number produced in the first three months of 2020. The company's iconic DBX model, which has been redesigned into an SUV, accounted for 55% of the sales in Q1. CEO Tobias Moers said: "I am pleased with our performance in the first three months of the year, delivering results in-line with our expectations of good growth and progress on the path to improved profitability and cash generation. We are encouraged by the growth in orders for both GT/Sport and DBX, providing good visibility."

NEWS

Amazon announces 10,000 new permanent jobs to boost the UK economy

Amazon has announced that it will create more than 10,000 new permanent jobs in 2021, taking its total UK workforce to more than 55,000 people by the end of year.

More than 6,500 new jobs will be created around the UK thanks to £1bn of new UK-India trade and investment announced by the Prime Minister Boris Johnson.

Amazon also announced that it will invest £10m over three years to train up to 5,000 employees in new skills and support the Government’s investment programme.

The package contains over £533m of new Indian investment into the UK, which is expected to create more than 6,000 jobs in vital and growing sectors such as health and technology.

This training will be offered through Amazon’s Career Choice programme, where the company pays course fees for its employees who have expressed an interest in pursuing a career outside of the company – something that will boost the skills and employability of British workers.

£200m of these deals will support lowcarbon growth.

The 10,000 new permanent jobs Amazon will create in the UK this year will include roles at its corporate offices, Amazon Web Services (AWS) and operations network. Corporate roles will be available in offices in London, Manchester, Edinburgh, and Cambridge across a wide range of fields including fashion, digital marketing, engineering, video production, software development, cloud computing, AI and machine learning, and more. Amazon’s UK Country Manager John Boumphrey said: “We’re creating thousands of good jobs across the UK from a diverse range of roles with excellent pay and benefits. We’re also delighted to be working with the British Chambers of Commerce on a pioneering approach to our Career Choice programme to provide the training, and skilled workers, needed to boost local economies right across the country.”

Boris Johnson announces £1bn of new UK-India trade and investment

Trade between the UK and India is already worth around £23bn a year, supporting more than half a million jobs. Prime Minister Boris Johnson said: "Like every aspect of the UK-India relationship, the economic links between our countries make our people stronger and safer. Each and every one of the more than 6,500 jobs we have announced today will help families and communities build back from coronavirus and boost the British and Indian economies.”

Goldman Sachs to open new office in Birmingham Global investment bank Goldman Sachs has announced that it plans on expanding its footprint in the UK by opening a new office in Birmingham - its second UK location outside of London. In a statement, the firm said it aimed to open its Midlands office by the end of Q3 this year. The statement read: "We believe Birmingham offers a number of unique advantages and the city’s proximity

to our London office will allow for easy travel between UK offices for our people to stay closely connected with other divisions and clients. Engineering will be the first division to build out in Birmingham, with a mix of hiring and employee transfers. Similar to other strategic locations, multiple areas of the firm will also leverage this opportunity and we expect to have a headcount of several hundred across a number of divisions over time."

June/July 2021

NEWS

ASDA acquires Leon Restaurants for £100m

Tesla will no longer accept Bitcoin over climate concerns

The billionaire brothers Mohsin and Zuber Issa, who recently took over supermarket giant ASDA, have announced the £100m acquisition of fast-food restaurant chain Leon Restaurant. The brothers' EG Group acquisition of Leon as a proprietary brand would add to its non-fuel operations and increase its foodservice brand portfolio, which already includes third-party brands such as KFC, Burger King and Subway. "The EG Group continues to identify innovative partnerships and acquisitions that complement our existing consumer offer and enable us to stay at the forefront of consumer trends, particularly in foodservice,” the Issa brothers said.

“Our equity investment in Leon is to strengthen our own participation in the fast-growing contemporary foodservice segment. This acquisition aligns with our commitment to being a committed foodservice operator globally, delivers financial benefit to our underlying business, and supports broader commercial strategies to be able to better realise further growth opportunities.”

Elon Musk has suspended Tesla vehicle purchases using Bitcoin due to growing climate change. The company bought more than $1.5bn of the world's most popular cryptocurrency in February – but following the announcement, environmentalists and investors have been public in their dislike for the decision. Musk said: “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”

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NEWS

Marketing Agency switches to electric

2020 named year of the start-up as a record 770,000 UK businesses created UK entrepreneurs fought back against the trials and tribulations of the pandemic last year, creating 770,000 new businesses throughout 2020, an all-time UK record. Data compiled by digital payment provider Tyl by NatWest has revealed that the number of start-up businesses grew by 30% compared to 2019, and aside from April, 50,000 new businesses were created every month in 2020. In a year of lockdown restrictions, which resulted in mass closures across the high street, new entrepreneurs turned to the digital market to set up shop. This change in approach made online and

A national PR, digital marketing and creative agency is replacing its fleet of company cars with electric and electric hybrid cars. Purplex, which has clients across Europe and the United States, has invested in 10 new EV charging points and has taken delivery of its first fleet of A-Class Mercedes A250e hybrid electric cars. mail-order businesses the most popular sector of creation in 2020. Mike Elliff, CEO of Tyl, commented: “Despite the many challenges faced by businesses, communities, and the world at large, the resilience and resourcefulness of Britain’s entrepreneurs is one of the great untold stories of the past year. With a 30% rise in business launches compared to 2019, the enterprising energy of new business owners deserves great credit. And while we all look forward to a world without lockdown restrictions, let’s hope the spirit of our agile, innovative and fearless start-up communities can endure long into the future.”

Sam Cross, Account Director commented: “While Zoom is a fantastic tool, we believe meaningful relationships must include face-to-face meetings and as UK restrictions ease, we want to be ready to go. At the same time, we have to consider the environment and so switching to electric and hybrid cars supports our existing sustainability commitments.” The company has recently added Jaguar I-Pace and Renault Zoe all-electric cars, and will have a fully electric/hybrid fleet by September. purplexmarketing.com

UK achieves strongest Q1 IPO performance in 14 years UK listings experienced a very strong start to the year with more funds raised in the opening quarter of 2021 than in any other opening quarter since 2007, and the most raised in a single quarter since 2014, according to the latest EY IPO Eye. Both the main market and AIM have built on the resurgence of activity seen in the second half of 2020, with 12 IPOs raising £5.2bn on the main market and eight IPOs raising £441m on the Alternative Investment Market (AIM). First quarter fundraising achieved a total of £5.6bn, more than half of the £9.4bn raised in the whole of 2020. Total funds raised in 2021’s first quarter were the largest of any opening quarter since the £5.8bn of new money raised in 2007, and the most raised in any quarter since the £6.9bn raised in the second quarter of 2014.

▴ Scott McCubbins Partner, EY & UK&I IPO Leader

Scott McCubbin, EY Partner and UK&I IPO Leader, comments: “The UK has had the strongest opening quarter for IPOs for 14 years, with the markets successfully weathering the effects of Brexit and bouncing back from the stall in activity caused by the onset of the pandemic a year ago. With an effective vaccine rollout underway, momentum and confidence in the UK IPO market should continue to build, but future growth may vary depending on the sector.”

June/July 2021

NEWS

Sales surge puts Pimlico Plumbers on course for £48m record year

Darktrace lists on London Stock Exchange

▸ Poppy Gustafsson CEO, Darktrace ▴ Charlie Mullins OBE CEO, Pimlico Plumbers

Cyber security firm and ‘unicorn’ business, Darktrace, has listed on the London Stock Exchange – increasing its value to more than £1.7bn.

tradition of scientific and mathematic research, so we are especially proud to be listing on the London Stock Exchange.

Listed under the ticker ‘DARK’, shares were initially priced at 250p – but soon soared to more than 350p.

"To our world-class inventors at our R&D centre in Cambridge, today is really about celebrating you.

Founded in 2013, Darktrace announced it would float on the London Stock Exchange in March 2021, following a surge in revenue to almost $200m during the pandemic.

"Not only have you created a fundamental technology that 4,700 organisations now rely on to help them tackle novel and advanced cyber threats, but you remain committed to innovation, pushing the envelope and shaping the world with your ideas. Today is just the beginning.”

CEO Poppy Gustafsson said: “Our company is deeply rooted in the UK’s

Zoopla acquires propetch firm Yourkeys Zoopla has acquired Yourkeys – a property software solution used by housebuilders. The acquisition will see 25 people from the Yourkeys team, including CEO Riccardo Iannucci-Dawson, join Zoopla and see Yourkeys join Zoopla’s suite of software products, including its next-generation Alto product. Yourkeys is proptech business and was one of the first to take the entire property sales process online. They provide buyer/seller onboarding and sales progression tools for housebuilders to help them sell new homes more efficiently than ever before. Zoopla CEO Charlie Bryant comments: “When we recently announced our vision, we made a commitment to providing our customers with the very best software and services. With the acquisition of Yourkeys, we’ve absolutely done that. Their technology and the service they offer are truly best in class, providing a smoother, better and more comprehensive experience for housebuilders.”

Business Leader - Inspire • Inform • Connect

Pimlico Plumbers, the UK’s largest independent home services company, is on course for its most successful financial year in its 42-year history, after two record successive £13m sales quarters. The central London-based company has already achieved sales of £40m in its current financial year and is forecasting achieving turnover of around £48m by 31 May 2021. Sales growth in Q1 revealed record turnover of £4.13m in January, 3.7% higher than its previous best January, followed by £4.31m in February, up 15.3%, and culminating in March, the company’s largest-value trading-month ever of £4.62m. Much of the growth can be credited to Pimlico’s strategy to maintain trading throughout the pandemic and lockdowns, with the speedy introduction of a suite of health and hygiene measures, which have kept its workforce safe and given customers peace of mind when welcoming the company’s engineers into their homes and businesses. Pimlico has also benefitted from the popularity of moderate to large home renovations, possibly as a result of customers investing in their properties rather than being able to take holidays. Charlie Mullins OBE said: “We have always thrived in challenging situations and have a team of experienced people willing to adapt quickly, which has been instrumental in the past year and represented by these record numbers.”

COVER STORY

Can Gousto continue the sales boom post-Covid? For its latest cover story feature, Business Leader spoke to Timo Boldt – the Founder and CEO at Gousto. Recently identified as a ‘unicorn’ with a billion-dollar valuation, the meal delivery business is booming, but how does he plan to keep the company relevant? And why is data the real driver for its success?

who have joined the Gousto journey. I am particularly pleased that many of our employees are also owners in the business. That gives me added belief that while we’re only scratching the surface at the moment, I know we are starting to fulfil our mission of becoming the UK’s most loved way to eat dinner. IS IT CORRECT YOU ARE FORMULATING PLANS TO FLOAT? WHAT DO YOU SEE AS THE BENEFITS TO THIS? We have no near-term plans for any form of equity event. Looking ahead, our focus is on revolutionising the grocery market and we will keep all options on the table to help us do that.

WHAT INSPIRED YOU TO SET UP THE BUSINESS? Having worked super long hours in investment banking, I realised how difficult it was to find the time to cook healthy meals from scratch that I really enjoyed eating. It also became clear how much food was being wasted by people with similarly busy lifestyles to me. I thought there must be a better way.

HOW DO YOU KEEP ON TOP OF YOUR CUSTOMER EXPECTATIONS AND CONTINUE TO DELIVER A GREAT CLICK TO DELIVERY EXPERIENCE? Our mission keeps us laser-focused on providing the best possible experience for our customers. This is only made possible by the way we invest in and harness data and technology, with a tech team of over 200 people.

I identified an opportunity which incorporated consumer trends at the time of food, convenience and online. The solution being a regular delivery service direct to people’s homes with all of the ingredients provided and already measured out, with easy-tofollow recipe cards. So, I quit my job in investment banking at the age of 26, to create Gousto.

For example, we feel we are industry leaders in automation, having built our own algorithms to automate our fulfilment centres. These maximise the speed and accuracy of picking, enabling us to offer more recipe choice than anyone else in the market and meet growing daily order volumes.

CAN YOU TELL US MORE ABOUT YOUR FUNDING JOURNEY WITH THE BUSINESS – WHAT ARE THE MOST IMPORTANT THINGS YOU’VE LEARNT ABOUT RAISING FUNDS FOR GROWTH? Looking back to our first ever fundraise, I recall how difficult my original business partner and I found it to dilute our ownership of the business. We had spent many days, weeks and months dreaming the Gousto concept up and getting the business started. However, as you realise that your idea and vision has the ability to grow into something truly significant, so our focus turned to wanting to build and realise that dream as quickly as possible, and that required additional capital. Simply put, we would not be in the position we are today without it. Since then, we have undertaken additional capital raises and I am delighted that we have so many supportive shareholders

We use data insight to offer a more personalised service for our customers, including through our artificial intelligence (AI) recommendation engine, which serves up a recommended menu unique to their individual preferences and tastes. Offering a more sustainable meal is a key part of our mission and the customer experience. We use forecasting algorithms to reliably predict supply needs, which minimise food waste in our fulfilment centres. Exact portion sizes also means next to zero waste in the home. I’m particularly proud of the team’s achievements in cutting plastic in our boxes by 50% in 2020, and we’re working towards all of Gousto’s own branded packaging to be reusable, recyclable or compostable by the end of 2022. Cont. 

June/July 2021

TIMO BOLDT

"I AM PARTICULARLY PLEASED THAT MANY OF OUR EMPLOYEES ARE ALSO OWNERS IN THE BUSINESS. THAT GIVES ME ADDED BELIEF THAT WHILE WE’RE ONLY SCRATCHING THE SURFACE AT THE MOMENT, I KNOW WE ARE STARTING TO FULFIL OUR MISSION OF BECOMING THE UK’S MOST LOVED WAY TO EAT DINNER."

Business Leader - Inspire • Inform • Connect

COVER STORY Everything we do is driven by the customer. NPS is a key business metric that we obsess about. We track it at every stage of the customer journey to remove any pain points and elevate the moments of magic that make the Gousto experience so brilliant. WHAT WOULD YOU SAY IS THE NUMBER ONE BARRIER YOU’RE FACING NOW TO ACHIEVING YOUR GROWTH PLANS? Without wishing to sound crass, I would say that it is time. We achieved some significant milestones in 2020 in terms of investing in capacity and technology to meet the accelerating demand. We doubled capacity in the year, investing in our existing fulfilment centre in Lincolnshire and adding a second automated factory in December. We plan to double capacity again by the end of 2022 to meet this demand. In addition, we made significant investment into our people, particularly within tech resource, as we doubled our total headcount from 500 to 1,000 with plans to reach 2,000 this year. So, we are investing and growing as quickly as time

TIMO BOLDT permits. That is really the only barrier we face! DO YOU FEEL YOU’LL BE ABLE TO SUSTAIN YOUR ‘LOCKDOWN’ GROWTH AND CAN YOU TELL US MORE ABOUT YOUR PLANS FOR THE NEAR FUTURE? Whilst lockdown accelerated our growth, with sales up 129% in 2020, we were growing rapidly pre-pandemic and didn’t see a drop off in sales when lockdown measures were eased during the summer and autumn in 2020. Most people across the world shopped for groceries online for the first time, and we believe they are unlikely to go back to pushing trolleys and queuing. We know they are looking for greater convenience, sustainable choices and healthier lifestyles. These aren’t trends driven by the pandemic, and Gousto is best placed to capitalise on these consumer trends which are driving grocery. To keep up with the continued demand, we’re opening two new fulfilment centres over the next couple of years in Essex and Cheshire, and we’re also doubling our workforce this year alone to 2,000 people.

YOU HAVE ACHIEVED UNICORN STATUS AND IN YOUR LAST YEAR OF TRADING PROFITABILITY - DO YOU EVER GET TIME TO CELEBRATE THESE WINS OR IS IT ALWAYS FOOT TO THE PEDAL AS AN ENTREPRENEUR? We have an incredible team of people at Gousto, and both of these achievements are a real recognition of their enormous efforts, particularly over the last few years. It’s not about me celebrating these wins, it’s about me helping the team see the value and impact of their hard work and us celebrating that together. We have some awesome Gousto traditions, such as Superday, which is a quarterly celebration of everyone's hard work. The sessions are amazing and an opportunity to reflect and celebrate achievements from the prior quarter. We've kept them going throughout lockdown and I cannot wait to get back to the office to do them in person. WHAT INSPIRES YOU TO DO WHAT YOU DO? My ultimate motivation is to have a positive impact on people’s lives. Whether that’s creating a positive culture where employees can thrive and feel supported or building a product that makes people’s lives a little easier and more joyful, whilst having a positive impact on the environment. The bigger and more successful that Gousto becomes, the more positive impact we can have. That’s my real inspiration. WHAT DO YOU FEEL IS COMING NEXT IN YOUR SPACE? Traditional grocery is being revolutionised by technology, just like other traditional supply chains have done. Think books (Amazon), music (Spotify), TV and Film (Netflix)... and this is just the beginning for our industry. The three mega trends of convenience, sustainability and health are all driving consumer demand in grocery and triggering a seismic shift in the market. Gousto is ideally placed to capitalise on this and we’re only scratching the surface of the opportunity, catering for just 0.2% of UK evening meals in 2020.

▴ (L-R) Joe Wicks with Timo Boldt

I’m incredibly excited about the journey our amazing team is embarking on, which will see our customers benefit as we fulfil our mission to become the most loved way to eat dinner. 

June/July 2021

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AGENDA

Are vaccine passports the future of business in the UK? As the UK moves towards the end of the COVID-19 pandemic, one of the most hotly-debated topics in business, government and amongst the general public, has been the proposed introduction of a ‘vaccine passport’. Should they be made official, they would potentially be used to allow people to return to ‘normal’ lives without the same level of restrictions that would be applied to those who have refused to have the vaccine or are unable to prove that they have tested negative for the virus. Business Leader spoke to some industry leaders to find out whether they should be brought in, and how they would affect companies across the UK.

Although the topic of a passport has been rumoured ever since the rollout of the vaccine began, in March, debates surrounding the proposal became front page news, after Prime Minister Boris Johnson stated its potential introduction ‘should not be totally alien to us’. Later that month, Culture Secretary Oliver Dowden stoked the flames of the debate by insisting that they would not be a permanent measure – but could still be introduced. Since then, there has been vociferous responses on both sides of the debate – but should businesses be encouraging their introduction? Adapting to a new world According to an Ipsos survey for the World Economic Forum, 78% of adult respondents, across 28 countries, believed that a version of a ‘vaccine passport’ was necessary for travel, public meetings and events. The survey of more than 21,000 people also found that 55% believed they were needed for people entering shops, restaurants and offices, with 56% and 55% of employed people being happy with the government and their employer (respectively) having access to their personal health information.

June/July 2021

VACCINE PASSPORTS However, only 40% of respondents were happy with private companies having access to health data and any potential vaccination record – with 53% saying they would be uncomfortable with them being able to access this level of information. In a part of the same study, 32% said they should be introduced for a few months; another 32% said they should be in place until the end of 2021; and only 13% saying they should be permanently introduced. With such a wide range of opinions from the public, what do business leaders think? One of the highest profile CEOs supporting the introduction of a vaccine passport is Pimlico Plumbers Founder Charlie Mullins OBE, who said: “We all know the answer is vaccine passports, but Boris and Co can’t even say the words out loud in public. The logic is clear. If vaccines are the answer, and they are, which is why the UK has doubled down on getting the population immunised, then being able to prove you are a very low COVID-19 risk must be a good thing. Vaccine passports are the way forward, and everybody knows it.

“We may get some of our freedom back by the summer, but vaccinations and yes, passports are going to be a fact of life very soon, and it’s about time our government grew a pair and publicly accepted this fact. We need to start working on vaccine passports now, so that by the time every adult has been offered a vaccine, they can be in use. If we wait, we restrict the ability of the economy to recover and place people at greater risk. “Those who have had a vaccine deserve to be able to benefit from playing their part in the UK’s fight back, those who are for good reason unable to have a vaccine deserve our protection also. And those who don’t give a damn, well it’s their choice – be part of the solution or stay at home. Undoubtedly, it’s time to say, we need vaccine passports, and we need them now!” Despite the wide range of opinions towards the introduction of a COVID-19 passport, documentation to enter countries and densely populated areas isn’t uncommon. Andrew Missingham, Co-founder of Creative Management Consultancy B+A, comments: “Yes - if you've ever travelled to Africa, you'll know how common it is to insist that entrants take correct and responsible prophylaxis (for instance, having to show a valid Yellow Fever Certificate, in many countries). If countries in the developing world insist on 'vaccine passports', they do it not only for the protection of their populations but for the protection of the traveller, therefore the world. What's different about us? What's different about COVID-19?” No matter what could be introduced by the government to help get business and people’s lives back to ‘normal’, could a vaccine passport help accelerate this? Employment Hero CEO and CoFounder, Ben Thompson, said: “Many businesses have now successfully adapted to remote work, which means they are less reliant on vaccine passports and travel. So, If the global workforce is to get 'back to business', then vaccine passports may be one of

the most viable options for businesses. Additionally, if the vaccine passport incentivises more people to take the vaccine, it is doing a huge service to the business community beyond providing more freedom to vaccinated employees.”

"IF VACCINES ARE THE ANSWER, AND THEY ARE, WHICH IS WHY THE UK HAS DOUBLED DOWN ON GETTING THE POPULATION IMMUNISED, THEN BEING ABLE TO PROVE YOU ARE A VERY LOW COVID-19 RISK MUST BE A GOOD THING. VACCINE PASSPORTS ARE THE WAY FORWARD, AND EVERYBODY KNOWS IT." Charlie Mullins OBE

Wider implications There is no law in the UK which requires mandatory vaccination. The Public Health (Control of Disease) Act 1984 devolves powers to Parliament to legislate in order to protect UK Citizens. The law enables Parliament to intervene in an emergency situation, such as the pandemic, and impose lockdowns and restrictions to protect the public, but currently, it cannot impose mandatory vaccinations. The other issue facing those pushing for the introduction is the issues that link to GDPR and data privacy laws. Felix Marx, CEO, Trūata, said: “The introduction of vaccine passports is shining a spotlight on the core principles of data protection, those of purpose limitation, data minimisation and data retention. Data should only be used for its intended purpose; only necessary data should be collected; and, once it has served its purpose, it should no longer be retained.

Cont. 

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AGENDA "It is essential that these principles are adhered to by all types of organizations. “The Italian Data Protection Authority recently issued guidance noting that vaccination data is particularly delicate, and the incorrect treatment can have very serious consequences for the fundamental rights of people. “Businesses will need to consider the full implications of taking a stance on vaccinations, not only in terms of the infrastructure that is required but also the impact on trust and staff engagement. “The findings of our global study highlight that there is a level of discomfort and division when it comes to offering up personal data for a vaccine passport. There is a demand for more transparency to build trust; the general public needs to understands how their data will be stored/used and how their privacy will be protected if governments intend to press ahead with COVID vaccination passports.” Andy Webber, technical director at web and app developers AtomicMedia, agrees: “Many people are uneasy about potential privacy risks. The government would know who you are, where you've been, and who you've been in contact with. People are very privacy conscious these days, so there is a strong argument that it will infringe on people’s freedoms. Personally, I think it could set a dangerous precedent if employees have to share their medical history with employers. It is unlikely that small businesses will force people to use it, and if it is easy to circumvent, it won't be effective.” So, with it highly unlikely that a passport will be introduced, what can be done to satisfy everyone and help businesses return safely back to the office, and the general public back to their preCOVID-19 lives.

Steve Witt, Co-Founder of The Travel Franchise, comments: “It’s probably more important to focus on testing. Just because someone has the vaccine, it doesn’t mean they are immune or can’t pass it on. You can still transfer it. So, making it mandatory is probably the wrong focus – it should be more on regular and accurate testing. Again, I think it’s more important to have regular tests done. We have to think about the protection for the many, so we need to follow the science and say, what is the right scientific approach to protect the most people.” Challenging times It is no secret that everyone has felt the impact of the virus, and with the roadmap and vaccine rollout in full effect, there are still some difficulties to confront in the months ahead. And even if a vaccine passport does become a reality – such an introduction would create its own set of challenges. Webber comments: “It should be relatively straightforward to implement from a technical perspective - but there are a lot of other factors to consider that will make or break the project, such as will people want to use it and will everyone be able to use it? “Designing something to be used by all demographics is no mean feat, and you also need to consider how easy it would be to circumvent. It will be very difficult and expensive to make it secure. People could try to hack it either by exploiting vulnerabilities in the software or (more likely) through social engineering. “There are also fears that the certificates would be discriminatory and divisive, creating inequality with

people who have chosen not to be vaccinated. Those are just some of the issues that need to be explored and any one of them could result in the app being deemed a failure. I would urge the government to consider that if at any stage it becomes clear the project isn’t viable, then knock it on the head and have the confidence to look the public in the eye and say ‘we tried something, it didn’t work, but we didn’t spend much money on it’.” One of the newest challenges that a proposed vaccine passport could create is a market for counterfeit paperwork.

"BUSINESSES WILL NEED TO CONSIDER THE FULL IMPLICATIONS OF TAKING A STANCE ON VACCINATIONS, NOT ONLY IN TERMS OF THE INFRASTRUCTURE THAT IS REQUIRED BUT ALSO THE IMPACT ON TRUST AND STAFF ENGAGEMENT." Felix Marx

Adam Schrader, Director of Operations at travel risk intelligence company Riskline, says: “Among the biggest issues that every government or organisation will face is counterfeit vaccine passports. These will seriously undermine the security and operational efficiency of the whole scheme unless they are tightly prevented.

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VACCINE PASSPORTS

“If vaccination passports are to be the key to accessing so many aspects of life when they reopen, then there is a very strong motivation for millions of people to acquire a fake passport when they haven’t yet had their jabs, either by choice or lack of opportunity. For those countries that have introduced them, a rapidly growing number of templates for fake documents are being offered on the dark web. “What will make this easier for the criminals, and more confusing and difficult for everyone who is responsible for verifying people’s documents, is that there are far too many proposed different certificates, many of them paper or card, and no imminent signs of consolidation. Standardisation of design, like there is worldwide for identity passports, is urgently needed, along with the introduction of sophisticated anti-fraud measures in the design and manufacturing. Moving away from paper documents would make counterfeiting more difficult. I can also predict long queues at airport security as staff look carefully to detect fake documents.” What is next? With a mandatory vaccine passport looking unlikely – and even if it got

approved, there are a lot of wider ramifications that could take a long time to iron out – many business owners will be wondering how best to proceed.

“BUSINESS LEADERS SHOULD BE AWARE OF THE KEY LEGALITIES AROUND THIS AND ULTIMATELY MUST DO WHAT IS IN THE BEST INTERESTS OF THEIR STAFF.” Andrew Bud

Andrew Bud, Founder & CEO, iProov, said: “The real debate has already moved on from ‘vaccine passports’ to focus on a broader and more inclusive Covid Status Credential, which includes vaccination status, results of a person’s recent tests and whether they’ve tested positive for Covid in the past. “Creating a Covid Status Credential scheme raises social, ethical, and legal issues, and it is important that the government’s review takes full account of all of them. It’s also important that any credential checks at venues should be inclusive, convenient, secure and respect people’s privacy to sustain public confidence.

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“We believe that schemes offering options for people to show their digital or paper credential and biometrically authenticate with their face, instead of presenting photo ID, will provide the best way to meet these requirements. “How Covid Status Credential schemes are introduced and the social limits for their use are matters for public debate and for politicians to decide. “What business leaders need to bear in mind is that, in Europe, we’re governed by the GDPR, which is one of the strictest data security regimes in the world. This means that it would be fundamentally illegal to prevent access to a service if someone doesn’t want to grant access to their sensitive medical history. “Business leaders should be aware of the key legalities around this and ultimately must do what is in the best interests of their staff.” 

DEBATE

‘I recall a couple of other times in history when we were meant to change but we didn’t, but this feels different’ Bright future for the UK office sector Business Leader brought together seven industry experts for a debate about the UK offices sector, and to assess current take-up levels, inward investment, and mixed-use developments. 16

DOES THE PANDEMIC REPRESENT A THREAT TO UK OFFICES? AND HOW DO YOU ASSESS THE OUTLOOK FOR THE COMMERCIAL PROPERTY SECTOR? Dr Walter Boettcher: "If you read the press, you might think so, but I do not think so. Computers were meant to do away with paper in the 1980s but office paper consumption is up by 80%. I believe the same will happen with office space.

"Some trends we are seeing though is that the pandemic has accelerated flexible leasing and back officing plans for many businesses. I would also say that the ESG and sustainability agenda has been given a shot in the arm over the last year and the sensitivities around the workplace have changed forever. "Let us not write off the sector though, as real estate is only down by -1.5%

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Creating the South West’s Best Workspaces

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THE CONTRIBUTORS

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www. interaction. uk.com

Dr Walter Boettcher Head of Research & Economics Colliers International

Tom Morris Managing Director CBRE

compared to finance, which is -2.3% and hospitality, which is down by 50%. It has been resilient and office rent collection has held up too, with 92% collected in 2020 in London and another five per cent in payment plans. Regional rates outside of London are even better, with 98% collected in 2020. "Finally, if we can get renewed confidence on the transactional side and not just the occupier side – and this will come from investor confidence – then we will also be looking at a sector moving into growth territory next year." Tom Morris: "Of course, it has been a difficult last year for the office market and the big question now is how much office space do people want? I am optimistic on this front, and whilst a new way of working will be here to stay, many companies will still require office space. Just look at Google who will now be welcoming back

60% of its workforce back into offices, for a three-day week." Hayley Blacker: "I am also optimistic and what I am seeing in the office market is that smaller to medium-sized businesses are confident about returning and their teams want to come back into an office. Yes, that’s going to change with quieter spaces, less desks and different design choices and fit outs, but it’s happening. "Corporates and larger businesses are a bit more hesitant though, and they are still deciding what they will do with their space; but I believe in the long-term, many will keep their office space. I would also end by saying that landlords are starting to look at their portfolios now. "Landlords are also looking at their portfolio and seeing how they can adapt their office space to be built better and embrace sustainability and wellbeing."

"I AM STILL SEEING LONG-TERM CONFIDENCE IN THE VIABILITY OF OFFICES AS A PHYSICAL SPACE, ALBEIT IN A DIFFERENT FORM AND WITH HYBRID-WORKING IN MIND." Toni Riddiford

Hayley Blacker Director Interaction

Toni Riddiford Head of Office & Workplace Stride Treglown

Toni Riddiford: "I am still seeing long-term confidence in the viability of offices as a physical space, albeit in a different form and with hybrid-working in mind. Workers are generally looking for a split between the office and home, but this needs to be balanced against what each business needs. "Certainly, with office space I am seeing a raising of standards and an acceptance that good is no longer good enough. Furthermore, if attendance to the office is no longer the default, then we need to find out about the space around offices too and how these can be made even better. "Mono-functional locations are likely to be challenged too and the most successful destinations will be flexible and have choice." WHAT ROLE WILL MULTI-USE AND MIXED DEVELOPMENTS PLAY IN THE FUTURE REGARDING THE OFFICE SECTOR? Sarah Trahair-Williams: "Mixed-use developments hold the keys to bigger and more successful urban centres because there is an increasing appetite from all generations to live, work and play in central areas without a car. Cont. 

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"The recent high court judgement for Sports Direct and Mecca – demanding that rents accrued must be paid – is interesting too as retailers will need to decide on whether they continue, and this could see retail assets that will need to be repurposed and this is where development opportunities lie. "Finally, I would also say that as a broader point we need to ensure we Jo Charles do not just push the Sarah Trahair-Williams Head of Sustainability Associate Director new homes agenda and Willmott Dixon Construction Cubex we need to factor in commercial property and mixed-use development space because the office is not dead and "Using local providers is also becoming there will be a requirement for office and more prevalent and questions are being retail." asked about supply chains and the performance of buildings and products. IT HAS BEEN TOUCHED ON BUT WHAT Investors are playing close attention too PRACTICAL ACTION IS BEING TAKEN and they are backing projects that meet AROUND THE SUSTAINABILITY AGENDA? certain sustainability criteria, and they are Jo Charles: "The built environment demanding more from developers." accounts for 40% of carbon emissions HOW IS INWARD INVESTMENT INTO globally and 11% of this is coming UK COMMERCIAL OFFICE SPACE from the construction of buildings and HOLDING UP? 28% from the running of the buildings. This shows what an influential role Walter: "As you would expect it has been the sector can play and to bring these down, and this is not just because of numbers down, we are now seeing COVID-19 but because of Brexit before it leaner construction methods and some too. What will be key to attracting inward construction methods even being taken investment into the commercial property offline. sector will be mixed-use developments and the build to rent sector.

"INWARD INVESTMENT WILL BE DRIVEN BY THE GROWTH OF THE REGIONS, AND THERE IS A CLEAR GOVERNMENT AGENDA TO SUPPORT AREAS THAT ARE CONSIDERED TO HAVE BEEN LEFT BEHIND TOO. " Richard Bonner

"We do not just want to overbuild residential though, and cross border investors are aware now that if there is a mixed-use development that has some residential, some office space and some retail or leisure or industrial storage – it has the capacity to mitigate risk in their investment portfolios, which makes them desirable investments. "Return on a residential and commercial real estate mix has been running on 4%-

Richard Bonner Commercial & Operations Director Arcadis

7% per year, but the volatility has been nil. Compare this to industrial volatility, which has been high, for example. Mixeduse and re-purposing of assets preserve economies of scale by clustering certain activities, which is why they are attractive for investors." Richard Bonner: "Inward investment will be driven by the growth of the regions, and there is a clear government agenda to support areas that are considered to have been left behind too. Each region must create a compelling offer though, as to why they should attract inward investment, and there needs to be a very clear plan for collaborative public and private sector investment. "The right industrial strategy is important too, to ensure businesses will invest. I also want to point out that a client of ours, called Henderson Asset Management, has just signed off on 90,000 sq ft of office space in the heart of London. This is underpinned by a strong business case for good office space and a sign of future intent." Tom Morris: "Transactions into the office market stands at £4bn for the last year, which is 30% down on the last five-year average. This is because people have

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not been able to move around and it has been hard for investors as they have not been able to travel to the UK, so this has, of course, impacted investment into the UK property sector. "There is also currently some barriers to getting deals approved by investment committees because of rent moratoriums, but this will start to unlock and the certainty that investors need will come with it."

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REGARDING RENTAL RATES, HOW HAVE THEY BEEN HOLDING UP? Tom Morris: "Better than expected as we anticipated we might see a drop in headline rents, but this has not happened across the major cities. Take up levels were of course down, with London at 55% and the South East at 30% for example as occupiers were unable to make business decisions and renewed current leases.

"TRANSACTIONS INTO THE OFFICE MARKET STANDS AT £4BN FOR THE LAST YEAR, WHICH IS 30% DOWN ON THE LAST FIVE-YEAR AVERAGE. THIS IS BECAUSE PEOPLE HAVE NOT BEEN ABLE TO MOVE AROUND AND IT HAS BEEN HARD FOR INVESTORS AS THEY HAVE NOT BEEN ABLE TO TRAVEL TO THE UK, SO THIS HAS, OF COURSE, IMPACTED INVESTMENT." Tom Morris

"This was not because of an unwillingness to move and invest, but a statement that they will not be doing so now but potentially in the future. "With cities that have constricted supply like Bristol, take up has only been down by 14%, so this has helped rents to stay steady." WHAT ARE THE MAJOR THREATS TO THE SECTOR IN THE FUTURE? Walter Boettcher: "All I am hearing and seeing is opportunity and we have been hampered from pushing these agendas, first because of Brexit and now because of the covid pandemic. But I feel that we are on the cusp of a big generational change. I recall a couple of other times in history when we were meant to change but we didn’t, but this feels different." 

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FAST-TRACK

FAST TRACK

'WE HAVE SET OURSELVES APART FROM OTHERS IN THE MARKET – AND IT SHOWS IN OUR GROWTH'

In each edition of Business Leader Magazine, we profile a UK business experiencing exponential growth in a feature called Fast Track. This time, we spoke to Welsh FMCG brand, Hilltop Honey. Founded in 2011 by Scott Davies at the age of 22, the company has grown to become the 26th fastest growing brand in the UK – and is set to have revenues of more than £16m this year. Based in Powys in mid-Wales, Davies has been the driving force behind the company’s success – however, with limited business acumen and a difficult first few years, Business Leader explored the journey the company has experienced since its origins, and how he turned it around. From bricklayer to bees After finishing school, Davies entered the world of construction and became a bricklayer. He also spent time in the local coal yards. However, after suffering a slipped disk in his spine, he was advised to no longer continue in manual labour. He said: “At the age of 21, it turned my life upside down. I was lying on my parents living room floor and at times, I couldn’t get up. I lost my way, as I couldn’t do what I had always known. I had no money, but I then started to read about bees – and then

my parents bought me a beehive, as they could see how interested in them I had become.” From this initial interest sprouted a passion to start his own business: “I also always had a desire to start my own business – but I had no idea what it was going to be or when I would have to opportunity to do it. However, with everything that had happened to me – the opportunity presented itself early on in my career. I had no other option, and there was no risk. I loved beekeeping and I saw an opportunity in the market to create a company around it. No one had really captured what bees were doing for the world. I felt I could create something special.”

"I LOVED BEEKEEPING AND I SAW AN OPPORTUNITY IN THE MARKET TO CREATE A COMPANY AROUND IT. NO ONE HAD REALLY CAPTURED WHAT BEES WERE DOING FOR THE WORLD. I FELT I COULD CREATE SOMETHING SPECIAL."

His entrepreneurial spirit and desire to create his own business meant a total career change and some help from his parents. Davies continued: “In my naivety, I said to my parents that I wanted to start my own business – it was either going to be kennelling, selling stuff on eBay/Amazon or start a honey business. I told them that I would need to have three years living at home to do this – so I treated it like university. They agreed, and I did a few half day courses with the Welsh government to learn about marketing and accounting – and from there I created a really bad business plan. “The guy who taught me on those half days helped me create a business plan and got me in contact with the local bank for a meeting. After presenting to them, they gave me £5,000 and told me I’d never sell that much honey – and that is how it all began. “From humble beginnings, through all the challenges and hardships of creating a FMCG brand, to growing a company to have 85%

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HILLTOP HONEY

bank and the Welsh Government said they were taking part in a food festival in London over three days. However, I could only afford one day.

of the market and owned by a billiondollar investment firm, we have created something special. Luckily, when I started I really had no idea what I was doing! I didn't know the hardship that lay ahead, I just made it very simple – make honey, put it in a jar and sell it. It can't be that hard!” Sticky situation For the first three years in business, the company made no money – and with that initial £5,000, Davies had to create everything from scratch, including branding, website and manufacturing the products. He did this all while keeping bees. He comments: “It was painful. I had no business acumen at all and just went for it. I immediately learned about the struggles of cashflow and how cash moves within the business. Also, when I was investing in expanding the bees, the struggle was that it would take up to two years for them to earn back the money I spent on them. By year three, we got to £200,000

turnover and profits of just £3,000 – I was wondering where all the money was going! At the time I didn’t want to give away any of my equity within the business, so when I was trying to grow the brand and make it profitable, it was incredibly challenging. We have now seen such a rapid growth of up to 300% year-on-year – but at the time, cashflow was a struggle.” Davies continued: “At the end of year three, I told my parents that I needed one more year as I felt we were so close to a turning point – this would be my ‘masters in business’. It was at this point that it really took off. We got stocked in Holland and Barrett, then Tesco followed soon after – then the whole world opened up.” Turning point It was around this time that Davies turned the business onto the path of exponential growth – and it all came about from a chance meeting at a trade show. He comments: “There was a specific day when it all changed. I had £400 in the

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"I took everything on my back, got on the train, set it up and then three girls came up to the stand hiding their lanyards. I thought they were students getting some freebies. Then after speaking to them, one of them said ‘this will really work for us’. I thought they owned a small shop, but she ended up being the Brand Manager for Holland & Barrett. "Ten months later, we had a listing that was worth the last three years turnover. Things grew from there – that was the company’s biggest turning point.” And when it came to Tesco, Davies changed the way they saw British honey: "Following the Holland & Barrett listing, I sent two jars of our honey to Tesco and asked them why, as the UK’s biggest supermarket, they didn’t stock British honey. It made no sense! "They agreed and asked me to come and speak to them. They asked if I could stock in 550 stores. At the time, we were still operating out of a small factory and hand labelling our products, but I said yes. Cont. 

FAST-TRACK "However, it wasn’t a domino effect from there, as each place where we are now stocked came with its own challenges. You need to find the best way to pitch your products to a specific company, and we have done that.” Hilltop is now also stocked in Sainsbury’s, Ocado, Amazon, Morrisons, Planet Organic, Whole Foods and Selfridges. Brexit and COVID-19 Despite the company’s rapid growth, stemming from that initial encounter with Holland & Barrett, there was no stopping the impact of the disruption UK businesses have experienced in the last two years.

HILLTOP HONEY Future trends This optimistic outlook for a post-pandemic economy will continue to position Hilltop as a market leader – however, with the everchanging behaviours of consumers and their own focus on sustainability, what are the upcoming market developments that Davies will be looking to capitalise on, and what are the company’s future plans? He said: “In 2022/23, we will be looking at developing more value-added products from honey and grow to become an exporter. The plan is to become a national and international brand – and we are ready for the trials and tribulations to come.

Davies explains: “The pandemic, along with Brexit, were a nightmare. I honestly don’t know how we coped at times. Prior to last year, we had been doubling in turnover year-on-year for four years – we were flying. We were stocked and supplying in stores, hotel chains and lots of other places, but then the pandemic caused all of that to stop.

Sustainable future The team at Hilltop have their eyes set on becoming carbon neutral by the end of 2021, and moving towards being carbon negative after that. In order to achieve this they will be scaling up to a new factory in October 2021, setting themselves up for the next phase of growth.

"However, we still managed to grow! We had a strong supply chain before the outbreak, so we could cope with the changes. I have always worked in organised chaos – which prepared me for this. Our marketing strategy had to adapt, and we ended up continuing our growth as a result of this.” But, how were the levels of impressive growth maintained? He continued: “Through our retail listings, our USP, our reputation as a supplier – but also through growing our B2B offering as well as the traditional B2C model. Our offer is better than the competition – where it is our price, quality of product, or whether it is our supply chain – we have set ourselves apart from others in the market and it shows in our growth. “As a business owner, you need to take every challenge, every knock back as a force for good and a learning opportunity – turn negatives into positives.”

"We want to move away from just the commodity of honey and expand into new areas. For example, we have just launched a lip balm into Tesco stores because of the wax angle. We are looking at creating mead and loads of other ways we can utilise honey in new areas. Recently, we launched a spicy honey, which is new to the market in the UK.”

"IN 2022/23, WE WILL BE LOOKING AT DEVELOPING MORE VALUEADDED PRODUCTS FROM HONEY AND GROW TO BECOME AN EXPORTER. THE PLAN IS TO BECOME A NATIONAL AND INTERNATIONAL BRAND – AND WE ARE READY FOR THE TRIALS AND TRIBULATIONS TO COME."

Davies concluded: "Doing business sustainably provides ways for small food companies to innovate along their supply chain, to save money and gain competitive advantage. It opens doors to new markets because larger buyers are actively seeking out suppliers that can help them meet their corporate social responsibility targets and legal obligations. "As a friend to the bees Hilltop runs their own ‘Adopt a Bee’ campaign in which consumers can learn further about the importance that bees have on the environment. The business donates 25% of the profits from this to the very deserving Honeypot Children’s charity." 

June/July 2021

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FROM CLICKS TO DROP OFF

HOW WILL E-COMMERCE RETAILERS GRASP A ONCE IN A LIFETIME OPPORTUNITY One of the unintended consequences of coronavirus has been the opportunity it has presented e-commerce retailers to take the centre of the ring and deliver another uppercut to the physical retail space. In this article, Business Leader explores why the argument is not just as simple as online retail versus the high street. The article also looks at how e-commerce retailers need to keep improving their customer journey, and asks business leaders to give their thoughts on whether an online sales tax would be a good or bad thing. Us humans are interesting creatures, and we tend to want what we cannot have. It is a bit like that with going out to buy products and services because after a year of being in ‘lockdown’ – which saw an online retail boom – fewer retail sales took place online in April than a year earlier, as non-essential stores reopened from Lockdown 3.0, new figures suggest. Some 41.5% of sales were ecommerce ones this April, down from 68.8% in April 2020, during the first lockdown, according to the latest BRC-KPMG Retail Sales Monitor for April 2021.

changed forever. Chris McShane, who is a Commercial Director a Halfords, says that the customer expectation is elevated.

This is interesting because it shows that physical retail still has a pulse, but also that it would be a safe bet to say that e-commerce could be the long-term winner, and that once consumers have had their fill of being in shops, many will drift back online again - or it is probably not that black and white and will end up a bit of both.

‘The experience is mobile now and customers shouldn’t even have to leave their home, and they can decide to have their experience or a service as mundane as a battery change wherever they like. I think it is an important point because it is about meeting the expectation whether online or in-store.

Certainly, even for traditional retailers who are now omni-channel, the picture has

He explains: "If you look at our customer experience three or four years ago, if they had a flat battery in a car for example, we might have stacked products on a shelf in 450 locations and promoted them through media and deals, but now customers expect a digital experience and journey that is contactless and knows what products they’ve had in the past and how this will fit with their future requirements.

"Amazon have set the standard for e-commerce, and we all need to meet that standard. I can get millions of products

to my home within hours. Whereas, Apple have set the standard for the physical store experience." HOW WILL E-COMMERCE CHANGE THE HIGH-STREET? Chris’ point is important as it illustrates that, depending on the service, for many brands it’s going to be a case of both physical and online offerings. It is also wrong to just frame the debate as online vs the high-street, as physical retail space was growing pre-pandemic – but just not in the traditional way.

June/July 2021

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Martin Bysh, CEO at Huboo, also feels that the high street does have a role to play. He says: "The direction of travel has been away from the high street toward online for many products, for a long while. The pandemic has accelerated this, and the genie is not going back into the bottle. "I don’t see why this needs to pose a problem for the high street, though – it may pose a problem for particular shops but there is an opportunity for others. You will go to the high street for the buzz and to socialise, and you will buy certain items,

but for convenience, you will go online to buy some products too. "I expect the high street to be full of services that you can’t buy online, like barbers, estate agents and tattooists.

champion, agrees with Martin that the high-street has a future but changes need to happen.

"You’ll also find cafés, bars, restaurants and independents; and there will also be showrooms that are loss leaders for major online retailers, which generate most of their sales through e-commerce but want to build a brand with a physical outlet."

Kate says: "High streets are currently 9-5 retail environments and many of them across the UK are in a sad state. To fix this, we need a human high street with consumers at the heart, but you are going to need radical policy changes and support from government and local authorities because at the moment it’s just not viable for many to open a shop.

Kate Hardcastle MBE, who is a tv personality and retail and small business

Cont. 

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"I believe if we’re smart about it, the high street can solve some of the UK’s biggest problems like isolation and obesity. But we need to stop thinking of it as just a place where you have shops. I also believe that multi-purpose retail units will help too. If you put two or three complimentary and not conflicting businesses together in one unit, they can really grow and thrive and share resources. “Funding and rates are part of this of course, but we also need to think about why people start micro businesses that will be on the high street, and it is often because of the work-life balance. If you are a carer, for example, you need to set your hours a different way and it is not about nine to five anymore, and we need to look at different opening hours and different experiences at our high streets." Preston Benson, who is the Founder of the Really Local Group, also believes revitalising town centre spaces is about thinking differently. He says: "We’re turning vacant units into community-led assets that are comprised of cinemas, food halls, business space and employment training – we believe this multi-purpose approach is the future and can bring back vibrancy to these spaces. You need to create spaces for people that are inclusive and accessible." HOW WILL WE PAY FOR IT ALL? This new vision to revitalise our high-street space and the clever co-existence of online and physical is an appealing one, but with the local government and government coffers squeezed, is there anything left on the magic money tree to pay for it all? Many have mooted an online sales tax. In a recent interview with Business Leader, Touker Suleyman advocated for it but said it should only apply to companies generating more than £10m online.

Martin Bysh CEO Huboo

Kate Hardcastle MBE TV personality and retail and small business champion

Martin Bysh completely disagrees with the idea. He explains: "These sorts of taxes don’t really work because what isn’t understood is how expensive it is to do business online. It is not a cheap replacement for business offline. If somebody comes into your store and buys something, you do not need to spend £4 or £5 shipping that item to them. "Many online companies don’t have a huge margin at all, and government needs to be supporting the high street and not bullying online businesses and trying to reverse inevitable change. Let us make it possible to set up small businesses and get rid of expensive rates that are ridiculous. Greedy local governments should be doing their bit. This tax shows a fundamental misunderstanding of e-commerce and where it sits in the retail picture." Preston Benson says: "The amount of funding government receive from business rates suggests that we’re going to need

"THE AMOUNT OF FUNDING GOVERNMENT RECEIVE FROM BUSINESS RATES SUGGESTS THAT WE’RE GOING TO NEED NEW FORMS OF TAXATION. PEOPLE HAVE NOT STOPPED BUYING LESS – THEY ARE BUYING DIFFERENTLY." Preston Benson

Preston Benson Founder Really Local Group

new forms of taxation. People have not stopped buying less – they are buying differently. The proliferation of warehouses from giants like Amazon popping up in industrial spaces, whilst we are losing businesses from our towns and high streets, is something to look at and it would be interesting to see the numbers for this. "I would support something that taxes the warehouses differently. There is no magic money tree, and if there are, its roots are shrivelling up. Supporting a tax on industrial growth rather than online sales tax could be an option I feel." David Young, who is the CEO at Bradfords Building Supplies, is also against an online sales tax. He says: "E-commerce is strong where we have stores, and an online tax would be a mistake. To Preston’s point, I also have warehousing and industrial space at my stores, so I’d be interested to see how that works. "Online retail is not actually profitable for us and we use it to drive football to our physical stores, so we need to be careful about how a tax like this is framed." A STICK CUSTOMER EXPERIENCE Equally as pressing an issue as new taxation for online retailers is about how

June/July 2021

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they can continue to remain relevant and meet customer expectations. The journey needs to be slicker as consumer expectations have hardened, says Pol Sweeney, who is VP Sales & Country Manager at UK & Ireland for Descartes. He explains: "In 2020, we were seeing fulfilment and e-commerce growing rapidly and operating at twice the volumes of the Christmas peak of 2019. This increase in volumes and density has thrown up challenges for online retailers and put a lens on the consumer experience, how they develop a brand and, ultimately, how they achieve an aspiration of improving deliveries and same day becoming the norm." Regarding what more online companies can do to impress consumers and build their loyalty, Kate says: "It’s all about communications and looking at what information are you giving to your customer? Also, how environmentally friendly is the packaging? It is not just about a sale but serving and building better engagement. "I see so many missed opportunities when I order online. For example, a packing slip with no information on it, or a huge package arriving with just a tiny product

David Young CEO Bradford Building Supplies

in it. If you have a message on a website saying you are ethical and then you send out packaging that is not environmentally friendly, consumer won’t engage with you for long. "If as a leader of an e-commerce business you are not getting a delivery every week of your own products, I’d be very worried and I’d be making sure I’m doing this. Too much is cut and copy and paste and lacking in customer interaction." Kate also says that Lego provide a good example of a smooth clicks to collect process that goes above and beyond. She says: "Lego’s commitment to deliver any missing piece for free is a high-ranking statement of making sure you are building consumer relationships for many years. It’s about that small attention to detail – and it’s authentic as it cuts above the advertising line."

"I SEE ARTIFICIAL INTELLIGENCE BEING USED TO SERVE CONSUMER PRODUCTS THAT ARE HIGHLY RELEVANT TO THEM, BOTH ONLINE AND IN-STORE." David Young

Pol Sweeney VP Sales & County Manager Descartes

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On how online retailers can improve their offering, Martin comments: "Firstly, this isn’t just about the bigger brands because it’s easier for smaller brands to create an amazing experience, as scale brings its own problems. Also, some people set up online businesses thinking they do not need to engage with the customer and somehow service is left behind when you close your shop – but the opposite is true. You need to work harder to gain customer loyalty. "Personal packing can make a difference too, and I don’t necessarily think that same-day delivery is the main driver as long as people know when their product is going to be delivered and it arrives at the time they’ve been told." THE ROLE OF TECHNOLOGY So, what role might technology play in the future of retail and the consumer experience? David says it is all about the customer. He says: "I see artificial intelligence being used to serve consumer products that are highly relevant to them, both online and in-store. Customer data is key too and making sure that what you put in front of your customers is relevant and personal to them." Kate has some concerns about technology in the retail space though: "There is nothing more frustrating than going into a store and seeing a huge black screen on the wall because nobody knows how to use the tech; or wearing virtual reality (VR) helmets in stores but it not leading to anything that resembles a positive customer experience. A lot of budget is being spent on technology, but it must be right and not a case of tech for tech’s sake. What is the benefit of the customer using the technology? "It’s an issue for online companies too. It’s happening too often that a website is adopting very clever technology, but you can’t find a telephone number, or you can’t get hold of somebody to talk to. Automation has to take away stress and enhance the experience – not add to it." 

INTERVIEW

‘How can any minister, no matter how experienced, be expected and be able to evolve the strategy for our smaller shops and our towns in such a short amount of time’ Business Leader spent some time with Kate Hardcastle MBE, to talk about her career and views on business and the retail sector in the UK. WHEN DID YOU FIRST REALISE YOU WANTED A LIFE IN BUSINESS? Business has always been in my life, but so has charity. And from my parents and grandparents I was living in the reality of what responsible business looked like and why there was a need. My grandparents were all in retail, and all played a role in community activities – helping sports teams, community groups and doing the right thing. My parents were heavily involved in charity work. I understood the importance of values and respect. My entrepreneurial kick comes from my life as a singer – I was fascinated by the music industry and went on to manage the bands I worked with. I was lucky enough to have some pinch yourself moments – singing on stage as a Vandella with Martha Reeves and with Candi Staton and meeting stars such as Smokey Robinson, playing in front of crowds (as a support band) of 15,00020,000 and going on tour. It was exciting, hard work and taught me so much. IT IS A TOUGH SPACE YOU ARE IN NOW AS A BUSINESS CONSULTANT. HOW IMPORTANT HAS IT BEEN TO YOU TO INVEST IN YOUR PERSONAL BRAND? I think it is important that you have values and that you live up to them as much as possible. People like to really feel they are dealing with authentic and genuine people – and so I do not think I have invested in a personal brand as such, but that I have always been myself, living those values. I have worked hard and stood for what I believe in, and hopefully that comes across when people see me on television or hear me on the radio.

I am a person that will work hard to deliver on promises, and although I may feel out of my comfort zone when certain opportunities present themselves, I try and surround myself with research and information to comfort myself. I also am prepared to work with other experts and ask for support. DO YOU FIND THAT TOO MANY BUSINESS OWNERS FORGET THE FUNDAMENTALS ABOUT PUTTING THE CUSTOMER FIRST? Unfortunately, yes, and that can occur in businesses of all sizes. It can be easy to forget about the needs of the customer when the business is undergoing change

or embracing new technology, and the work I do with businesses around the world focuses on resetting and putting the customer back at the heart of the business. An example of this would be the rush to respond to the pandemic last year, which saw many brands try to scale up and evolve processes and operations, but in some cases the service levels and support were just not there – and communication with the customer faltered. Communication is so important – and we must never undervalue the strength of really listening.

June/July 2021

KATE HARDCASTLE MBE YOU ARE PASSIONATE ABOUT RETAIL – WHAT DO YOU FEEL NEEDS TO BE DONE TO SAVE THE HIGH STREET? I’ve long campaigned for the ‘human high street’ – one that is unique to its place and truly serves the individual needs of the local community – again, it is about putting the customer first and empowering decision-making from those who actually use it. Something I see in towns and cities across the UK is a failure to get the basics right – we must start with key things like facilities, accessibility for all, safety, and cleanliness. These should then be the foundation on which to build fantastic experiences for all different user groups. Whilst those who live and breathe the local area must be empowered to make decisions, it can’t be an entirely microlevel approach – we still need a centralised commitment to delivering better places, and this must come from the very top. In my 2018 ITV Tonight report, 'End of the High Street?', I highlighted the need for greater focus from ministers on the matter. We have had 10 High Street Ministers in the last decade, one in the role for just four months, while the majority of the others fulfilled the role alongside other

responsibilities. For example, Jake Berry (6/17–2/20) was also Minister for the North. How can any minister, no matter how experienced, be expected and be able to evolve the strategy for our smaller shops, our high streets, and our towns in such a short amount of time and with other areas of policy needing their attention too? WHAT ARE THE TRAITS THAT PUT YOU OFF A BUSINESS DEAL OR ENGAGING IN BUSINESS WITH SOMEBODY? That is a very good question and after 25 years in business, I’ve encountered a few individuals I’ve had to step away from. For me it’s about how someone behaves as a person – regardless of anyone’s success in business, just as my values matter to me, I look for them too in others, and I appreciate it when they are delivered with authenticity. As a result, I have turned down some unbelievably lucrative opportunities, but I can look back and know that without a doubt, I’ve made decisions based on my own values of honesty and respect. I feel we’ve seen a huge shift in what we value in business leadership, particularly over the past 12 months and I’m pleased to see an end to the days when many business leaders, particularly in retail,

would rule in the often-glorified manner of fear, rudeness and egotistical behaviour. DOES MORE NEED TO BE DONE TO PUT BUSINESS – AND FAILURE SOMETIMES BEING OK – IN THE SCHOOL CURRICULUM OR IS IT TOO EARLY TO TALK ABOUT THAT? I think the issues of business and failure being ok are two very different issues in education. Business as a subject needs to be lived as well as taught – I learnt more in a year managing my band than in any first year at the prestigious education facilities I have also attended. In general, we need to focus on entrepreneurship, inspiring children to think differently, innovate and embrace change and measure success in different ways. Naturally, business success will come from this and an approach which celebrates constant change and adaptation will recognise that failure is inevitable but it is the learnings from it which are vital. In addition to business, I want to see changes to enhance young people’s awareness of other life skills – understanding finances, health, wellbeing, diet, the social skills required for life and work too – there is so much more that could be taught. DO YOU HAVE ANY CONCERNS FOR SOME BUSINESSES – IN THAT THEY MAY HAVE RECEIVED LOANS, HAD PAYROLL AND VAT DEFERRED AND UNLESS THEY CAN TRADE OUT OF THIS, MAY STRUGGLE WHEN IT ALL NEEDS TO BE PAID BACK FOLLOWING THE PANDEMIC? Yes, that is something that concerns me – it is not always glamourous or exciting but bootstrapping your business can be an essential skill. You must evaluate what is absolutely essential versus what can be worked around – and often it can mean living without comforts yourself, as the head of the business. Again, communication is key, helping stakeholders and others understand where you are adding the value and where you try and run in a lean way. Back in March 2020, I hosted some free workshops for small businesses, where I highlighted a ‘finance-first’ approach to navigating uncertainty and the need to plan ahead, save where possible and keep open dialogue with suppliers and creditors, with a view to thinking like an accountant. 

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APPOINTMENTS

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

MAZDA EUROPE ANNOUNCES NEW PRESIDENT AND CEO Mazda Motor Europe (MME) has announced that, effective 24th June 2021, Martijn ten Brink, currently Vice President of Sales & Customer Service at MME, will become President and CEO of MME, succeeding Yasuhiro Aoyama, who has led the European business since 2019.

NEW CEO ANNOUNCED AT PERCEPT Percept, the independent digital media quality assurance platform, has announced the appointment of Dominic Trigg as CEO. Trigg will use his extensive experience in scaling, advertising, marketing and programmatic companies to grow Percept’s business with brands and agencies. ▴ Lord Browne of Madingley

BORIS JOHNSON APPOINTS NEW HEAD OF CST The Prime Minister Boris Johnson has appointed Lord Browne of Madingley to the Council for Science and Technology (CST) as its new independent Co-Chair. The CST is the government’s highest-level advisory body on science and technology, advising on issues that cut across the full range of the government’s responsibilities.

NEW CHAIR APPOINTED AT DWP The Department for Work and Pensions has announced the appointment of Sarah Smart as the new, permanent Chair of The Pensions Regulator. Smart has been serving as the interim Chair since 1 April 2021, and is now the permanent Chair, following a recent Work and Pensions Select Committee pre-appointment hearing.

LSE FINTECH FIRM MAKE CHANGES TO SENIOR LEADERSHIP Mode, the London Stock Exchange listed fintech group, has announced that Director Ryan Moore has been appointed as the company's first Chief Executive Officer. Founder, Jonathan Rowland will remain as Chairman, working closely with Ryan to shape Mode's growth trajectory for the years ahead.

NEW GM TO DRIVE UK GROWTH FOR SIKA Global building product manufacturer Sika has appointed Tom Forsyth as General Manager, a role that will see him build on the continued growth of the company across its multiple UK markets. Based at the Welwyn Garden City, he has a breadth of experience in sales, marketing and product management.

EUROPEAN HOSPITALITY COMPANY APPOINT FIRST MD Cycas Hospitality has strengthened its leadership and hotel management expertise, following the appointment of Apurva Pratap as the company’s first Managing Director. Pratap brings nearly 25 years of hospitality and investment experience to the new role. He joins Cycas from The Student Hotel in Amsterdam, where he was responsible for the portfolio’s commercial performance.

GLOBANT APPOINTS NEW UK MD TO DRIVE NATIONAL GROWTH Globant, the digitally native technology services company, has appointed Stuart Deignan as UK Managing Director to spearhead its nationwide expansion strategy and help companies to shift to augmented organisations. He will oversee all aspects of the UK operations, including business development strategy and management of the overall client relationships.

June/July 2021

Top 32 female tech leaders For its latest Top 32 list, Business Leader has profiled the UK’s leading female tech influencers, entrepreneurs and business professionals.

HOW HAVE THE TOP 32 BEEN CHOSEN? Whether they are already established, an emerging talent or a disruptive entity, these are the individuals and their companies that are leading the sector into the future. The women on this list have been suggested by our readers, however, if you feel there are other individuals that are deserving, please email editor@businessleader.co.uk, and they will be included in the digital version at www.businessleader.co.uk. This list is in no particular order.

TOP 32 ▸ Sukhi Jutla MarketOrders

▴ Dr Jackie Mulligan Shoappy

DR JACKIE MULLIGAN SUKHI JUTLA MARKETORDERS Jutla is the co-founder of MarketOrders, an online B2B platform for the gold and diamond jewellery industry that enables independent retaillers to buy directly and seamlessly from international suppliers. She has won numerous awards for her firm’s innovative use of blockchain within the industry. In April 2018, she made global headlines by becoming the world’s first bestselling blockchain author.

SHOPAPPY Yorkshire-based ShopAppy was founded by Mulligan in 2016 after she grew concerned about how many local retailers were struggling due to the competition from the global ecommerce giants. ShopAppy.com is now a well-established, digital 'shop local' platform for high streets, town and city centres – offering ‘click & collect’ and home delivery plus additional digital functionality to support businesses during the COVID-19 crisis and beyond.

▾ Alexandra Depledge MBE Resi

ALEXANDRA DEPLEDGE MBE RESI A renowned British technology entrepreneur, Depledge is known for being the founder and CEO of Resi – as well as the former founder and CEO of Hassle.com. Resi is an online architectural platform that is disrupting the way in which UK homeowners are able to renovate and extend their homes. She has received many awards and was given her MBE in 2016 for services to the sharing economy.

June/July 2021

FEMALE TECH LEADERS

▴ Uma Rajah CapitalRise

CHRISTINE TELYAN

ABBIE MORRIS

UENI

COMPARE ETHICS

UENI is a London-based tech company that’s empowering businesses to get online and find the services and tools they need to succeed. Founded in 2014 by Harvard graduates, UENI is now made up of over 60 people working to shift the balance between independent businesses and larger franchises. UENI delivers to thousands of businesses a free, fully-built online presence that enables them to sell their products and accept bookings for their services from day one.

Compare Ethics is a verification technology firm that turns sustainability data into a tangible return on investment. Compare Ethics connects conscious shoppers with brands leading by example. The company calls out false claims and celebrates responsible business, supporting sustainable and ethical brands by verifying products and attributing scaleable ratings. Morris is Co-founder and CEO and is leading the firm’s fight against ‘greenwashing’ within retail.

UMA RAJAH

ANGELA YU

CAPITALRISE

LONDON APP BREWERY

CapitalRise offers investors access to prime residential real estate investing opportunities. With tax-free returns available through the platform's Innovative Finance ISA, these investments fund some of the finest prime real estate in London and the Home Counties. CEO and Co-Founder Rajah created the digital platform to disrupt the old way of investing in property, to give investors direct access to prime residential real estate investments in places such as Mayfair, Belgravia and Chelsea.

The London App Brewery makes learning to program fun and accessible. Yu’s firm design programming courses to learn to code and make native iOS and Android apps. Through its handson approach, students learn the structure of a mobile app and its components, key programming design patterns, as well as debugging techniques, so that they can easily expand on their knowledge and start working on own apps with confidence. She also works as a Doctor for the NHS.

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TOP 32

▴ Dr Anne-Marie Imafidon MBE Stemettes

▴ Caroline Plumb OBE Fluidly

DR ANNE-MARIE IMAFIDON MBE

CAROLINE PLUMB OBE

STEMETTES

FLUIDLY

A respected thought-leader in the tech space and trustee at the Institute for the Future of Work, Anne-Marie was awarded an MBE in 2017 for her work as a renowned champion and inspiration for women looking to find a role in the world of STEM. For eight years, she has lead the company that runs workshops, public events and incubators for girls all over the UK, introducing them to STEM role models, concepts and careers in fun, informal and relevant ways.

Fluidly was founded in 2017 by serial entrepreneur Caroline Plumb OBE, who wanted to create a solution to a problem all business owners know well – cash worries. Historically, cashflow management has been stressful, time-consuming, theoretical and expensive. Fluidly provides the only AI-powered cashflow forecast that requires no modelling whatsoever, using transaction-level detail to produce an accurate financial prediction in minutes.

CINDY ROSE OBE MICROSOFT WESTERN EUROPE Rose is President of Microsoft Western Europe. In this role, she is responsible for bringing to life Microsoft’s mission – to empower every person and every organisation to achieve more – for all of Microsoft’s customers and partners across the continent. The American-British businesswoman received her OBE in 2019 for services to the tech sector. ▴ Cindy Rose OBE Microsoft Western Europe

June/July 2021

FEMALE TECH LEADERS ▸ Jenny Griffiths MBE Snap Vision

JENNY GRIFFITHS MBE SNAP VISION A software engineer turned entrepreneur, Griffiths is the Founder of Snap Vision – a digital tool that allows consumers to buy online using visual search. Snap Vision's mission is to make product discovery easier both online and in store, by developing world-leading AI and visual search solutions. Its product family consists of visual search for mobile, web, and in-store, along with other cutting-edge experiments such as AR and chatbots. She received her MBE in 2015 for services to innovation in the digital fashion industry.

▾ Heba Bevan OBE Utterberry

CARMINA LEES ACCENTURE Lees is the UK Managing Director for Financial Services at the Fortune 500 company. As a leader at the global consulting and processing services firm, she is helping C-suite clients articulate, plan and implement their transformational agenda, integrate their technology to the business and drive greater value, including new digital business and revenue streams. The practice brings industry-specific and function-specific (cyber security, cloud, AI and blockchain) knowledge and skills to each client's specific situation.

JANE TURNER CENTTRIP Centtrip is a fintech provider of smart treasury, foreign exchange and payment solutions. Founded in 2015 by experts in FX and technology, Centtrip now processes over £1bn per year in transactions. From a single, any-device interface, customers can enjoy real-time, anytime visibility and control over multicurrency deposits, international and domestic payments, foreign exchange and multi-currency card programs.

POLLY BARNFIELD OBE MAYBE* The Maybe* platform helps businesses use social media to sell. Its unique technology collects social media data from over 3.9 million businesses from Twitter, Facebook and Instagram on a daily basis and provides engagement, insight and reporting tools that enable clients to increase their sales via social media.

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HEBA BEVAN OBE UTTERBERRY The company was founded by Heba Bevan in 2013 as a spin-out from Cambridge University. The company provides artificial-intelligent wireless smart sensor systems for infrastructure monitoring and the development of Smart City applications. Its patented technology has been used in a variety of major national infrastructure projects, including London’s Crossrail and Thames Tideway. Its customers include Network Rail, London Underground, Thames Water, Laing O’Rourke, Costain, BAM and BFK. Its tech is now exported across the world.

TOP 32

FRANCESCA CARLESI MOLO FINANCE Carlesi is the Co-founder and CEO of the first fully digital mortgage lender in the UK. The London-based fintech firm’s platform allows customers to obtain instant mortgage loan approvals via an online, 100% compliant process, which moves away from paper forms, manual review steps and the typical convoluted layers of brokers, large banks and traditional mortgage lenders.

▸ Hannah Dawson Futrli

▴ Francesca Carlesi Molo Finance

▾ Lucinda Carney Actus

June/July 2021

FEMALE TECH LEADERS

GENEVIEVE LEVEILLE AGRILEDGER Originally from Haiti, Leveille is the principal founder and CEO of AgriLedger - an agricultural-focused blockchain systems provider. With representative offices in the UK and Asia, AgriLedger seeks to revolutionise agricultural supply and value chains around the world through the use of blockchain and distributed ledger technology.

ELIZABETH VARLEY TECHHUB ▴ Cathy McCabe Proximity Insight

CATHY MCCABE PROXIMITY INSIGHT Proximity Insight develops leading Shop Floor Engagement (SFE) software for retailers with a focus on luxury verticals. The company’s store platform puts cutting-edge capabilities in the hands of sales associates to drive traffic through all physical and online channels. Although it is headquartered in London, the firm has expanded to over 20 countries around the world, and has offices in New York, Sydney and Melbourne.

Launched by Varley in 2010, TechHub was the home of London’s then fledgling technology community. It supported over 5,000 start-ups as members and was central to the growth of London as the technology capital of Europe. The firm has now helped over 750 tech firms grow across the world – and its alumni have received over $1bn in investment and been acquired by Google, Facebook, Twitter, Oracle, Microsoft amongst many others.

▾ Elizabeth Varley Tech Hub

LUCINDA CARNEY ACTUS Hertfordshire-based Actus was founded by Lucinda Carney, a Chartered Psychologist and former Head of Learning & Development at Siemens, and at Pfizer before that. After years of experiencing first-hand the challenges of making performance management meaningful, she decided to set up Actus, offering software that would overcome these challenges, supported by training and organisational development services to provide a comprehensive solution for culture change.

HANNAH DAWSON FUTRLI Brighton-based Dawson is the Founder and CEO of Futrli – an all-in-one forecasting and reporting service for small businesses and the accountants and bookkeepers who help them. With over 60,000 businesses and 1,100 advisors supported in over 130 countries, Futurli is on a mission to move the needle of the small business economy. Founded in 2014, Dawson has led the firm through its growth as an SaaS leader in the UK.

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TOP 32

TUGCE BULUT STREETBEES

▸ Dr Jacqui Taylor FlyingBinary

The global intelligence platform reveals how people behave, and why, by analysing real-life moments collected from its worldwide users on an always-on basis. Over 3.5 million users across 189 countries worldwide use the chat-style Streetbees app to share moments from their daily lives via videos, photos and text, giving as much or as little information as they like. Through its tech, Streetbees uncovers not just what they do, but also why they do it, and what drives them – and predicts what they may do next. This allows its customers to receive insights into communities anywhere in the world, helping them understand new or unfamiliar markets.

SUSANNE CHISHTI FINTECH CIRCLE Chishti is the CEO of FINTECH Circle, Europe’s first angel network focused on fintech opportunities and Founder of the FINTECH Circle Institute, an innovative learning platform offering workshops to C-level executives and online courses. FINTECH Circle is a global platform of more than 130,000 fintech entrepreneurs, investors, finance professionals, academic and government representatives, and solution providers.

▸ Susanne Chishti FinTech Circle

PRIYA LAKHANI OBE CENTURY CENTURY is a teaching and learning platform for primary and secondary schools, colleges and universities. Using learning science, artificial intelligence, machine learning, blockchain and neuroscience, CENTURY creates constantly adapting pathways for students and powerful assessment data for teachers. She is now a Non-Executive Director for the Department for Digital, Culture, Media and Sport.

DR JACQUI TAYLOR FLYINGBINARY The Essex-based deep tech firm offers cloud, data and collaboration services, including Smart City, AI, Big Data and IoT on HM Government accredited G-Cloud platforms. Globally recognised as a ‘Smart City Tsar’, and a Strategic Advisor to the Government, Taylor has been the Founder and CEO of the firm since 2009, and has been the driving force behind the company’s growth.

June/July 2021

FEMALE TECH LEADERS

MURSAL HEDAYAT MBE

MARTA KRUPINSKA

CHATTERBOX

GOOGLE FOR STARTUPS UK

From artists to academics living in refugee camps and cities around the world, Chatterbox is London’s tech platform to accelerate the socio-economic reintegration of highly skilled, yet underemployed, refugees. Its platform matches their displaced talent with exciting work opportunities online, so that they can rebuild their confidence, networks, and CVs. Chatterbox has now spread its message across the globe.

Krupinska is the Head of Google for Startups UK. The aim of the company is to level the playing field for founders of tech firms in the UK and EMEA with the best of Google's resources. They work with high-potential tech start-ups, with a particular focus on social impact tech and diverse founders.

MELISSA MORRIS LANTUM Morris is CEO and Founder of Lantum – a powerful workforce scheduling platform for the healthcare sector. Lantum saves healthcare organisations in both the NHS and in the USA millions annually by efficiently automating processes, end-toend connecting the right clinicians with the right shifts. The firm is on a mission to help save the NHS more than £1bn a year in staffing costs.

VICKY BROCK VISTALWORKS Serial tech entrepreneur Brock is the CEO and Co-founder of Vistalworks, a firm that provides its clients - including governments, police, specialist agencies, consumer protection bodies, and corporations - with tools, data feeds and intelligence that lets them focus their prevention, enforcement and protection efforts. Vistalworks is tackling the $2.2bn global illicit trade problem through its simple query tool, which checks a product or seller URL before a customer buys.

▴ Marta Krupinska Google for Startups UK

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TOP 32

JUDE OWER MBE PLAYMOB

FEMALE TECH LEADERS

▸ Poppy Gustafsson Darktrace

With offices in London and San Francisco, Playmob is the world's first 'values driven data' platform connecting the most purpose driven brands to 2.5 billion gamers globally in order to make the world a better place. Playmob is a market insights platform harnessing the power of gaming to understand what people think, feel and value over time. The tech firm works with some of the world’s biggest brands including Burberry, Dove, KFC – as well as the United Nations.

POPPY GUSTAFSSON DARKTRACE The ‘unicorn’ cyber security firm was recently guided by Gustaffson to launch its IPO on the London Stock Exchange at the start of May 2021. Using world-leading artificial intelligence and machine learning technology, Darktrace can detect sophisticated cyber threats – which legacy systems would not recognise. Headquartered in Cambridge, the company has more than 1,500 employees in over 40 countries.

ROMINA SAVOVA PENSIONBEE Savova is CEO of PensionBee, the UK's leading online pension provider she founded in 2014 to simplify pension savings in the UK, following a harrowing pension transfer experience of her own. Prior to PensionBee, she worked at Goldman Sachs, Morgan Stanley and Credit Benchmark and received an MBA from Harvard Business School.

▾ Jude Ower MBE Playmob

▸ Romina Savova PensionBee

June/July 2021

JUGGLE JOBS

Business Leader recently caught up with Romanie Thomas, Founder and CEO of Juggle Jobs – a recruitment platform that is highlighting the need for inclusivity and flexibility for senior positions. Can you tell me about your job history prior to Juggle Jobs? Prior to Juggle, I worked in executive headhunting for 10 years. I placed hundreds of business and technology leaders into companies around the world during this time, with a particular focus on all things digital. I was at La Fosse Associates for four years and part of the core leadership team. I was responsible for growing the organisation by focusing on great values and a strong collaborative culture. What is Juggle Jobs? Powered by AI, our platform connects start-ups and scale-ups with experienced, pre-vetted professionals who want to work more flexibly. We specialise in supporting small and rapidly growing businesses by connecting them to the right talent. Finding the right hire is the difference between a business succeeding or failing, and a flexible solution allows our customers to get more value for their money, and also de-risks the hiring process by allowing both parties to assess whether a candidate is the right fit. We also use AI-smart matching to speed up the hiring process - our average time to hire is one a week vs an industry average of one a month. Our mission is rooted in gender diversity we want to see women represented 50:50

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INTERVIEW

in business leadership and we believe access to flexible leadership roles for women (and men) is what will drive systemic change. What was the inspiration behind setting up the business? Having worked in executive headhunting for a number of years, I became increasingly frustrated with the lack of female representation, and especially at the executive leadership level. I was looking for a business to invest in that was committed to improving gender diversity but found that the majority were more focused on educating and raising awareness for the issue, rather than directly solving the issue. For me, flexibility was always such a natural answer to attracting and retaining women into leadership roles and there was an increasing demand for more flexibility across all departments and industries. Then, Juggle was born. I wanted to combine the mission of gender diversity (the why) with flexible working (the what). What separates you from the competition? We have a deep knowledge of the space and understand which aspects of the process to automate to drive value for customers and streamline the traditionally inefficient recruitment process. We are also a full-service solution businesses can recruit, onboard, manage and pay professionals through our platform - none of our competitors can offer all of the above. What are the company’s plans for the years ahead? Our mission is to become the number one flexible recruitment platform in the UK. We want to provide the fastest and most

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accurate recruitment matching service between companies and experienced flexible professionals. Today, the recruitment market is fragmented and there’s an opportunity for one player to unify the market, one that has flexible working and equality in its DNA. That’s us! We also want to launch a successful community and support offering to flexible professionals, ensuring users have a compelling and meaningful reason to be loyal to Juggle. In regards to the wider sector – what more needs to be done to be more inclusive? Recognising our bias. We can’t cure ‘unconscious bias’, but we can recognise it, be more aware and take steps to mitigate the risks. At Juggle, we use a gender decoder to evaluate whether job applications are using neutral language and we anonymise candidate data until the interview stage. We know we can learn better from diverse teams. One part of this is to recruit and attract candidates, and more importantly, we then need the right environment for diverse candidates to feel included. Businesses can start with simple processes, such as making sure everyone feels comfortable contributing on a team call and giving everyone the opportunity to have a voice.  For more info, visit www.juggle.jobs

FEATURE

Digital Transformation is disrupting all business sectors Business Leader unpicks the concept and looks at how necessary much of the disruption has been Many businesses and organisations in the UK have undergone some form of digital transformation in the last year – often bottling four years of change into four months, with the pandemic lighting the touchpaper for change. But how can a business know that the technology they are introducing is correct and how much are businesses actually spending on digital transformation (DT)? 42

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DIGITAL TRANSFORMATION

of Strategic Development at SS&C Technologies. She explains what DT means: “At its simplest, it is the replacement of non-digital or manual business processes with digital processes. DT is achieved by adopting specialist technologies that ‘digitalise’ operations, which in turn helps save money, improves efficiency and reduces risk; digital transformation also enables companies to work smarter, and means human staff can better focus on the more enjoyable, less mundane tasks. “It is disrupting businesses in all sectors; from investment management and food production to insurance and aviation, technology is helping create many innovative new markets and processes.”

on the market, but if your teams don’t know how best to utilise it to its potential, it’s wasted.” Hizir also definitely believes that the pandemic has accelerated the need for DT: “Whereas once it was perhaps seen as a luxury or a fad, the reality today is that those businesses that don’t digitally transform will be left behind. "The pandemic has had a devastating impact on many sectors’ revenues, and as a result, many businesses have been forced to accelerate their DT process to help increase efficiencies and reduce costs. When we talk about DT, it is a continuous, ongoing, organic effort – it isn’t a destination to reach!” Good examples of digital transformation For DT to be successful, a blend of ongoing implementation involving employees at all levels is vital. However, introducing the correct technology is obviously just as key. Paul Rhodes, Co-founder and Director of Perform Partners, explains: "Transformation is really talking about making good change stick and enabling a company to benefit from the outcome. It doesn’t matter if you are changing technology, embedding, or iterating a process. Real transformation is effective, sustainable change that leaves things better than when you started, and still provides the options to improve continuously in response to new information."

▴ Deb Hetherington Head of Innovation, Bruntwood SciTech

According to Statista, from 2020 to 2024, direct investments into digital transformation are projected to surpass $7.8tn for businesses around the world. Further research from the International Data Corporation stated that due to the pandemic, up to 65% of the world’s GDP is set to be digitalised by the end of 2022. Dr Zeynep Hizir led the digital transformation at MetLife Investment Management, and is now the Head

Deb Hetherington, Head of Innovation for Bruntwood SciTech in Leeds, gives her explanation and believes it has also become an overused term: “Digital transformation has become a buzz term, with offerings and solutions springing up all over the market. So, it’s important to understand the true meaning of the term digital transformation and how it can positively benefit your business. "For me, it is a holistic approach to the integration of technology into all areas of your business. Improving processes, procedures and systems to add value to your customers. It is also a cultural piece, in that people are probably the most important element of the transformation process. You can have the best technology

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The primary examples of DT are when a company moves away from its legacy systems to cloud-based technologies, or event embraces more advanced technologies like robotics and artificial intelligence. Martin Taylor, Deputy CEO and Cofounder of Content Guru, explains: “Enforced lockdowns across the globe forced organisations, big and small, to accelerate their digitalisation strategies at pace. One place that has seen clear benefits in moving from outdated onpremise systems to cloud technology is the contact centre industry, which previously stood defiantly as one of the last mill-style working environments.

Cont. 

FEATURE “As we entered the pandemic, research showed that only 27% of contact centres had systems in place to utilise homebased agents as part of their workforce mix. Now, whether out of choice or necessity, businesses and public sector organisations with contact centres are rolling out cloud technology at record pace.”

▴ Suhas Sainath Managing Director, J.P. Morgan Private Bank

Suhas Sainath, Managing Director at J.P. Morgan Private Bank, continues on this theme, and belives that 5G will also have a huge enabling effect for the way business is done. He said: “DT was the defining market trend of 2020. Businesses, consumers and families learned how to live in an online world, yet we are at just the beginning of a long-term shift to digital. "To understand why, consider the implications of the 5G infrastructure upgrade, just one of many transformations underway. In 2021, we expect the number of 5G smartphones purchased by consumers to double to 450 million.

"DT IS NOT A SWITCH YOU CAN FLIP OVERNIGHT. IT’S AN INTENSE AND ONGOING PROCESS WHICH, IF DONE RIGHT, CAN POSITIVELY IMPACT YOUR ENTIRE BUSINESS. " Deb Hetherington

"But, as significant as 5G is for the consumer market, the real opportunity could lie in enterprise applications. Manufacturing is expected to account for 19% of 5G-enabled revenue opportunity by 2030, the second-largest contributor behind healthcare. “Imagine a 5G-enabled factory of the not-so-distant future. Products could be designed virtually, assembled by 5G-connected, untethered and collaborative robots. Employees could use 5G-enabled augmented reality capabilities to quickly learn and execute assembly tasks. Production processes could be digitally supervised. Artificial intelligence might predict when a product needs maintenance. “The factory's output might be customised. Real-time customer order data could inform the manufacturing process. A consumer may be able to order the right colour or perfect size, and the producer might not have to charge a fee. The factory of the future could also be local. Technology could reduce the barriers imposed by labour force skill mismatches or costs.” Dr Hizir concurs: “One example of a matured technology tool that sits within a DT strategy is the use of Robotic Process Automation (RPA). RPA essentially mimics humans in completing a process. RPA is not smart and is not itself considered an artificial intelligence, but recently it has

been combined with AI to create intelligent automation (IA). Automation such as this streamlines processes and improves efficiency, enhancing both the employee and client experience whilst also reducing risk.” Re-purposing Technology is also enabling traditional brands to rethink not just how they operate but how they are perceived by their customers. Dr Gordon Fletcher of the University of Salford Business School explains: “Many traditional brands are re-blossoming through digital transformation. LEGO is one of the world's powerful brands because of its digital transformation. This transformation has been comprehensive and involved, detaching the company's operations from the iconic physical brick to encompass games and films that still retain a DIY sentiment and a feeling of 'blockiness'. "The evolution of Disney from a production company to its own network to challenge Netflix reflects how digital transformation can change the business model of a traditional company and at the same time enable consumers to engage directly with the company and as a result, cutting out the channels and cinemas in the process. “Newer and more innovative companies are pushing the possibilities for digital transformation. Most evocatively, Tesla's ability to deliver a software update is

June/July 2021

DIGITAL TRANSFORMATION the first time a car manufacturer has delivered a post-sales upgrade to all of its customers. This is a sign of a digitallymature company that is able to maintain a relationship with its customers throughout the lifetime of the product.” Implementing the right tech for your business It is clear that digital transformation is an unstoppable force that will change the business landscape, but it is vitally important to ensure the correct technology is introduced for your business to successfully scale. According to a survey by Deloitte in April, digital transformation is crucial for organisations to ‘win’ in a post-pandemic world. More than three-quarters of the leaders surveyed said their organisations' digital capabilities significantly helped them cope with the challenges triggered by the pandemic, and nearly two-thirds of respondents believed that companies that don't digitise in the next five years will be ‘doomed’.

Companies that have already embraced digital transformation performed better than lower-maturity companies during the past year, as they were about twice as likely to generate net profit margins and annual revenue growth significantly above their industry average. Hetherington comments: “DT is not a switch you can flip overnight. It’s an intense and ongoing process which, if done right, can positively impact your entire business. Not only that, it will ensure that in this entrepreneurial world where the next upstart is sat waiting to disrupt every sector out there with technology, you won’t get displaced. "I would engage with a DT consultancy that you can trust, and work with them on a partnered basis. Set the goals and timelines early on, and allow for a period of discovery. If you rush the process, or try and fit it into your normal procurement framework, the project is likely to fail. "Ongoing communication and ensuring your full team are on board, and providing feedback is also key.”

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Future role With the constant evolution of DT and so much technology available to companies, should a business look for a third party to help them adapt to the latest DT innovations? Tom Crump, Head of Sales at Sync, concludes: “Working with an IT consultant or solutions provider can help to keep things on course. The initial excitement and enthusiasm can lead to leaders wanting to rip up the rule book, implement completely new ways of working, and replace legacy systems that have been there, embedded in the company, for years. This expensive initial investment is too much of a sudden change and fails to consider the long-term nature of transformations. Further, this radical change is going to confuse and demotivate staff who were happy with the way things were. To avoid this, companies must start small, involve staff, and provide a detailed, long-term roadmap that implements fundamental change gradually – this ensures everyone is on board and the ROI on new tech systems will be a positive one.” 

ADVERTORIAL

COVID-19 and the Contact Centre:

A post-pandemic workers’ paradise? When the crashing waves of COVID-19 broke across the bows of business, organisations were impacted in ways that few had foreseen. Whilst companies in some sectors sank with all hands or trod freezing water in furlough lifejackets, others found themselves propelled forwards by a powerful storm tide.

Article by Martin Taylor, Deputy CEO and Co-Founder, Content Guru One such beneficiary has proven to be the contact centre industry. Not only did these unglamorous organisations sail smoothly through the choppy seas of lockdowns and WFH; they now find themselves charting a new and sunny course, one in which the customer experience they deliver has attained unprecedented levels of strategic importance. What is their secret? Cutting edge cloud technology, rapidly implemented, untroubled by users’ physical locations, and boasting intelligent automation of the drudge work, has enabled contact centres to cope with unprecedented volumes of demand. Contact centres have serviced millions of customers emailing about flights, web-chatting with insurers and calling healthcare helplines. As demand has risen, so has employee satisfaction, as cloud tech-enabled operators switch to remote and flexible working models. Cloud contact centre technology has helped the industry maintain and improve CSAT (customer satisfaction) scores, meaning customer loyalty for those who invested early is at an all-time high. Faced with being left behind, the rest of the contact centre armada is unsurprisingly adopting cutting-edge technology in a hurry, to close the competitive advantage gap.

Distributed working is here to stay A recent study by Stanford University found that 55% of workers want a mix of remote and office working. The benefits for employees are clear: walking the dog at lunchtime, no car parking worries and a new sense of freedom and trust. But employers are also enjoying lower facilities costs together with greater productivity and flexibility from their happy workers. This unusual synchronicity is reflected in industry analyst Gartner’s trend predictions around the idea of ‘total experience’ – the combination of multi-experience, customer experience, employee experience and user experience to transform business operations.

▴ Martin Taylor Deputy CEO & Co-Founder, Content Guru

Employee experience and customer experience are intrinsically connected – one drives the other. The UK’s largest electricity provider, UK Power Networks, used Content Guru’s storm® cloud solution to implement a hybrid working model for their contact centre, and saw absence levels come down to just 4%, an impressive feat in an industry known for absenteeism. Meanwhile, UK Power Networks’ CSAT scores actually increased during the pandemic – a testament to the power of investing in an effective distributed working solution that also serves up intelligent automation. Collaboration is key Microsoft Teams was another winner of the pandemic, emerging as the digital communication tool of choice for homeworking professionals. To optimise business operations in the new era of distributed working, the contact centre’s external communications solution needs to integrate with the organisation’s internalfacing technology, such as Teams, which is used by back-office subject matter experts. Front-office users dealing with the public can now transfer calls from Content Guru’s storm contact centre solution to back-office subject matter experts on Teams, through a fully Microsoft-accredited connector. The process works equally effectively in the opposite direction for seamless colleague collaboration. Users can furthermore dial external numbers through Teams, while live availability status displays let all colleagues see who is available at any time, cutting down on wasted call transfer attempts that leave frustrated customers waiting on hold. The storm Teams integration enables complete call and screen recording through the Teams application, ensuring no loopholes in compliance or quality management. storm VIEWTM, Content Guru’s reporting module, furthermore enables end-to-end information on all interactions, including those on Teams. The integration of Content Guru’s storm and Microsoft’s own reporting tools, including

June/July 2021

ADVERTORIAL Power BI, provides powerful analytics across an organisation’s entire IT estate.

for information about the virus. Despite extraordinary circumstances, customers still expect high levels of service, meaning a scalable cloud solution has become a necessity, not a luxury for any contact centre operator.

Businesses and public sector organisations alike can improve their all-important First Contact Resolution (FCR) by making frontoffice agents the single point of contact who can collaborate quickly to solve any query. storm provides these customer service agents with integrated collaboration tools, serving up the right information to the right agent, at the right time, during customer interactions. Content Guru’s unified contact centre agent interface, DTA®, allows employees to locate and chat with one another quickly. Live availability status shows presence on DTA across storm and Teams users alike, for a fully joined-up organisation.

"CONTENT GURU’S UNIFIED CONTACT CENTRE AGENT INTERFACE, DTA, ALLOWS EMPLOYEES TO LOCATE AND CHAT WITH ONE ANOTHER QUICKLY." Martin Taylor

Though the peak of the pandemic Preparedness is paradise may be over, organisations shouldn’t The COVID-19 pandemic demonstrated underestimate the importance of having how important scalability is for any plans in place for disaster recovery in the organisation facing unexpected increases post-pandemic world. Customers have in customer contact. The media reported become permanently more demanding, lengthy queues for people trying to contact and contact centres must be able to cope travel companies and airlines for refunds with planned and unplanned spikes in on cancelled holidays and flights, whilst calls to the NHS’s 111 phone line hit record inbound enquiries. Organisations can ai162279837311_2021050505 BL Half Page.pdf 1 04/06/2021 10:19:34 choose intelligent automation to divert numbers as a worried public scrambled

callers to another communication channel or online information. Artificially intelligent chatbots, or Machine AgentsTM, can answer FAQ-style enquiries, freeing up human staff to deal with more complex queries. storm also boasts virtually limitless cloud scalability, handling over 11,000 callers in the queue for a leading Airline whilst coping simultaneously with a 500% increase in call volumes for high-profile healthcare services. Future-gazing: Cloud comes up trumps The pandemic has presented contact centres with an unprecedented opportunity to accelerate their digital transformation and change the way they work. In the post-COVID-19 landscape, organisations must continue to evolve their oldstyle contact centres into value-driven customer engagement hubs, delivering a personalised customer experience that creates competitive advantage. Implementing cutting-edge cloud technology that enables a flexible working model, enhances employee collaboration and supports an effective disaster recovery strategy is the surest way to keep any contact centre afloat on tomorrow’s stranger tides. 

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DEBATE

What are the funding barriers facing UK tech firms? For this article Business Leader talks to funders and industry leaders in the tech space, to get their take on how they see external funding helping them with their growth ambitions. The article also looks at how different tech leaders are using funding in their business and the personal journey they’ve been on.

The last year has seen a wall of capital available for tech companies and Andy Darley, who is Head of Technology Research at FinnCap, says that tech firms have responded.

One of the major barriers that companies face when looking to scale is accessing capital to fund their growth ambitions. This is arguably more acute for tech firms investing in research and development and creating cutting edge products.

"Disruptive tech that can form the noncore elements in a business and be a solution that customers adopt on multiyear contacts are also appealing to investors. There is enthusiasm in trade, private and public side and this is making

Andy Darley Head of Technology Research finnCap

Anthony Platt Technology Advisor Caverdish

He explains: "Technology firms have responded to the unfortunate circumstances of COVID-19 and the great shock it has caused and there is an acceptance that disruption is vital and fundamental to the future of the UK. The themes we are seeing from tech firms that are gaining investment is it is about automation of the unglamorous, and anything that drives enterprise and replaces less efficient alternatives.

valuations higher as everyone is aware of the opportunities. The investor market is receptive, and if they feel their capital will participate and make a difference to a business model, and it’s not just recycling capital, businesses stand a good chance." Anthony Platt, who is a Tech Adviser at Cavendish Corporate Finance, says that on the deal side, tax policy is one of the elements driving activity in the tech sector. He says: "Capital Gains Tax changes forced people’s hands and because of this, business owners have been crystallising value and tech firms with good margins and growth have been seeing high valuations put on them." Some in the sector also argued that Brexit may impact investment into the sector, but this is something that Anthony disagrees with. He explains: "It’s totally the opposite and we’re seeing lots of international deals and activity, particularly in the cyber, health or fintech space, with an awful lot of capital coming into the UK from the US and Europe.

Jonathan Lister Parsons Chief Technology Officer PensionBee

June/July 2021

FUNDING

"Everybody is trying to do the same thing though, and there are lots of businesses looking for capital and it is global capital. We are seeing many more US investors coming to the UK market and more from Europe too." IPO One option for tech businesses that have reached a certain stage in their growth is to IPO, or float on the stock exchange as it is often known in common parlance. The background work is huge, but the rewards are too, says Jonathan Lister Parsons, who is CTO at PensionBee. He comments: "We always saw an IPO as a long-term goal for the business and it’s an opportunity to accelerate the growth of the business and allow our customers and employees to become shareholders

and share in the success of the business. Our funding journey prior to the IPO was through private market and raising through individuals and angels, but never the venture capital route. For businesses pre-IPO, I’d say that angels and private investors are a good source for funding as the government introduced some schemes, such as EIE and SEIS, which provide tax incentives for funders. This space has become an asset class in its own right."

"WE’RE SEEING LOTS OF INTERNATIONAL DEALS AND ACTIVITY, PARTICULARLY IN THE CYBER, HEALTH OR FINTECH SPACE, WITH AN AWFUL LOT OF CAPITAL COMING INTO THE UK FROM THE US AND EUROPE." Anthony Platt

PRIVATE EQUITY Jennifer Sundberg is the Co-CEO at Board Intelligence, a technology and advisory firm. When it came to funding for the business, she took the private equity route but was picky about which partner she worked with. She comments: "We were bootstrapped as a business and we have been able to self-finance our growth, but it did come to the point that we felt it’s now time to scale the business beyond the ability to do it ourselves. This kicked off a process where we went down the aisle with a suitor and we had agreed on a price, but we had a feeling in the stomach that it was not the right match. "We respect the party and there was complete integrity, but we ended up moving to a new partner. Part of this decision was based around the fact that we were offered patient capital, so there was no drop-dead date by which we needed to deliver to, which we felt was an artificial timetable and would distort our decision-making process." Cont. 

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DEBATE

Nathan Robinson is the CEO of the Leadership Network, and says that like Jennifer, a large part of the business has been self-funded. He explains: "We started in a different way, through an MBO from a private-equity-owned business, and we bought out of a division of the business. We then gained stability and built a customer base, and this financed our first part of our growth and we re-invested into research and development. I think finding market fit to fund growth is underrated. It allows you to prove there is demand for your product and self-fund before you scale. Following this, we did go out to the VC market, but we had the courage to walk away from a potential investment as we don’t feel they shared our vision." CUSTOMER FUNDING Like Nathan and Jennifer, Catherine Bennett – who is Founder and MD at Caboodle Technology – has self-funded but with an innovative twist. She explains: "We started with savings that weren’t huge, but we soon realised our largest companies like our proposition – that we would work alongside them to develop the technology and add in features they wanted, and they would fund the development. So, in part we have been funded by our clients and also introduced a recurring revenue model. "Shareholders did talk to us about raising external funding, so we looked at the private equity option, but what did we want the funds for? We are not a business that needs twenty new salespeople – it is about organic and sensible growth. We did eventually need funding, though, to exit a director and we did this through a cash flow lend."

Jennifer Sundberg Co-CEO Board Intelligence

Nathan Robinson CEO The Leadership Network

CONTROL One of the biggest things a founder can lose when receiving funding is control, creating a trade-off between fulfilling growth ambitions and taking the business to the next level and operating a much more plural structure. But undergoing an IPO can often actually mean you retain more control, than opting for a route where you receive funding in exchange for people coming in to run the business.

Catherine Bennett Founder & MD Caboodle Technology

Jonathan elaborates: "There are lots of stories about losing control and you see tech companies list with crazy share structures. But for me, this is such bad governance; it can only exist in a market where people are happy to pay crazy money and not get treated equitably as a shareholder. We are fortunate as we are only issuing ordinary shares and we do not have any special shareholders and all the management team is in the same position. I would also say though, that when you IPO and you are exposed to the level of scrutiny that comes with it, it does not make sense to want to maintain such a high-level

June/July 2021

FUNDING

of control anyway as this can only have a negative impact on your stock price." Regarding the benefits of listing, Andy Darley says: "Firstly, your customer and employees can buy into the business and, of course, you will get access to significant amounts of capital to fund further growth. What I would also say is that in this climate of ESG and business for good, listing allows employees to participate in something with purpose as you take your stakeholders on that journey through participation." A KIND OF HELL With so many funding options available to scaling companies, choosing the right one can be a minefield and equally, just going through the process is a challenge, begging the question, does it take the owners eye of the business ball having to raise funding? Jennifer Sundberg gives her take: "It was a kind of hell raising funding and I would describe fundraising as hard work; it really was torture. I was grateful to be a Co-CEO

as this allowed us to divide and conquer and I was also grateful for lockdown as I could do the deal from my desk. I would not have liked the Idea of having to get on a plane or attend dinners to attract the funding, as I have a young family. It’s an eye opener – I didn’t realise there were 150 questions about tax you needed to know as a business owner." Nathan Robinson agrees: "It’s a draining process for sure and very counterintuitive, as I’m going from selling a product to selling a business model and this is a completely new discipline."

"I THINK FINDING MARKET FIT TO FUND GROWTH IS UNDERRATED. IT ALLOWS YOU TO PROVE THERE IS DEMAND FOR YOUR PRODUCT AND SELF-FUND BEFORE YOU SCALE." Nathan Robinson

With lockdown taking away much of the face-to-face meeting, has fundraising become snappier due to lockdown, or do you lose something when not meeting potential investors? Andy Darley says: "It’s an interesting question as to whether you can automate the process of fundraising but I’m not sure you can as you need to have communication between the business and the funder. Would you want to invest or have somebody invest if you haven’t met them and gone through the tough process of questioning from both sides?"  The responses and insight were taken from a debate hosted by Oli Barrett MBE, that was part of a series from FinnCap and Business Leader, called Inside the Deal. To find out more about the series visit the event page at www.businessleader.co.uk

David Beckham invests in UK electric vehicle company Lunaz Lunaz, a tech company that upcycles and converts motor vehicles to its proprietary electric powertrain has announced an ambitious new growth phase following backing by a group of strategic investors. David Beckham is joined as an investor by the Reuben and Barclay families and Alexander Dellal. They join founding investors; Navid Mirtorabi and CJ Jones who are both entrepreneurs and investors in cleantech start-ups. Through his investment arm Beckham has successfully identified and backed fast-growth start-ups in sectors as diverse as eSports and athletic recovery products. He took a 10% stake in the company. The company established its global leadership in vehicle electrification through its work furthering the legacies of the most celebrated classic cars in history. Bringing to market the world’s first fully-electric Range Rover, Bentley, Rolls-Royce and Jaguar sports cars through its Lunaz Design brand. The company is headquartered in Silverstone, Britain's advanced automotive technology heartland. It is the fastestgrowing and now largest company by manufacturing space and employees within the Silverstone Technology Cluster. David Lorenz, Founder and CEO, Lunaz said: “Our approach will save fleet operators capital while dramatically reducing waste

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in the global drive towards de-carbonisation. This top tier investor commitment is testament to Lunaz’ path to defining the market for remanufacturing and conversion to clean-air powertrains.” Following this injection of growth capital Lunaz announced plans to grow its offering to the upcycling and electrification of industrial vehicles on a mass global scale. Lunaz will begin with industrial HGV vehicles including refuse trucks, of which 80 million currently exist in the UK, EU and USA alone.

CEO IN FOCUS

CEO IN FOCUS:

ASH SCHOFIELD Ash Schofield is the CEO of UK mobile network giffgaff, an emerging force within the industry. Schofield spoke to Business Leader about his journey to taking up the role, leadership lessons he picked up along the way, and the importance of learning from mistakes. CAN YOU EXPLAIN YOUR ROLE AT GIFFGAFF? I have been at giffgaff for the last eight years, having originally joined as the CMO. Three years ago, I became CEO. Before I joined the company, I headed up the marketing team at Tesco Mobile – a role I had for six years. I was part of the team that helped it scale. I had similar roles at BT Cellnet before that. In summary, I have

grown up in telecoms over the last 22 years. As the industry has exponentially grown, my responsibilities within it have grown, all leading me to now being CEO of giffgaff.

DID YOU ALWAYS PLAN TO BE IN THE TELECOMS SECTOR OR DID IT HAPPEN ORGANICALLY? I fell into the industry by accident! I was working for a distribution company, where I was in a role as an analyst. In that capacity, I had to use a specialist bit of software. After that company got bought out, I put my CV out to look for a new job and got an interview with a service provider company called Martin Dawes back in 1999 – and they happened to use the same bit of software. They wanted me to do a similar job for them – and that was it! Within nine months of being there, I was managing the team. BT Cellnet (now known as 02) had taken over and the market became incredibly dynamic. Hard to believe now, but not everyone had a

June/July 2021

ASH SCHOFIELD

then thrust into the boardroom telling the story of what I had found and what I thought it meant. I couldn’t help myself, and was saying ‘This is what I think we should do about it’. No question, that got me noticed – and I liked the opportunity to influence at the most senior level. That was the first taste of leadership at boardroom level. As I got more confident and established in my role, I got the feeling I wanted to do more than influence – maybe I could decide what to do next? That thought was very exciting.

"INTEGRITY IS THE BASELINE OF LEADERSHIP – THE DESIRE TO DO WHAT IS RIGHT. HOWEVER, IN ORDER TO DRIVE GROWTH YOU HAVE TO SHOW A HIGH LEVEL OF PASSION FOR WHAT THE COMPANY IS TRYING TO ACHIEVE." WHAT HAPPENED FOLLOWING THAT MEETING? WERE YOU GIVEN THE OPPORTUNITY TO TAKE ON MORE OF A LEADERSHIP ROLE? It certainly acted as a springboard to getting new roles and getting more experience. Then I went for a promotion at 02 to become a head of a department, but didn’t get it. And in some respect – it was probably the best thing that could have happened, as I then moved to Tesco Mobile.

mobile back then and smartphones didn't exist yet. It was a wonderful growth industry to be involved with.

WAS IT AT THIS POINT YOU THOUGHT YOU COULD TAKE ON SENIOR LEADERSHIP ROLES? At that point, I was more in a support role, and I learnt about the value of data, the insight it provides on growing a business. My role was to feed that through to senior management. At that time, I noticed a potentially large churn risk, six months down the line. My boss at the time said that I should come to the board and tell them all about it. So, from analysing the data, I was

It had huge potential, but had yet to scale. We were a small team when I joined in April 2007. I initially joined to look after the CRM side of the business, but soon took over other roles within marketing and advertising. Before long, I was in charge of the whole marketing side of the business. That gave me direct access to the senior leadership team in an industry which was heavily marketing-influenced, and I felt I was at the heart of it. Looking back, I've always been a bit of a collector, getting into roles, taking on more responsibility and increasing my impact. It's what I've enjoyed doing. After six successful years at Tesco Mobile, I wanted to step up – I really wanted to be on the board. It was then that I applied for a role at giffgaff, and when I got offered the

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job in 2013, it was the first time I was really sitting at the top table in a business in a senior role, rather than being a guest. I never set out with an ambition of being a CEO one day, it was more about being practical and keep developing skills in something that I really enjoy being a part of.

DOES ACQUIRING NEW SKILLS AND EMBRACING THE PASSION YOU HAD FOR THE INDUSTRY HELP WHEN IT CAME TO BECOMING A BOARD MEMBER?

Without a shadow of a doubt. I have always been ambitious, but not for the sake of status. I just like to challenge myself to be better and to keep growing. So, when the former CEO left giffgaff in 2018, I felt compelled to apply for the role. A lot of what giffgaff had become, I had a significant part of building, along with the rest of the management team. I felt my job wasn’t finished and I that I could do that as CEO. I wanted the role, and I wanted to unlock the undoubted potential the company still had to achieve.

HOW DID YOU ADAPT TO BECOMING CEO?

giffgaff was founded on the thought of ‘mutuality’ and having a unique relationship with our member-base. So, it was clear to me that we didn't need an authoritative CEO, we needed more vision and a healthy level of democracy in our decision making. This was the way to unlock the company’s undoubted potential.

HOW WOULD YOU DESCRIBE YOUR LEADERSHIP STYLE?

Integrity is the baseline of leadership – the desire to do what is right. However, in order to drive growth you have to show a high level of passion for what the company is trying to achieve. Passion and drive are infectious, and it provides a wonderful ripple effect throughout the business. It can permeate throughout the company and build a team’s mentality. I would like to think I bring some authenticity and honesty – never pretend to be something you are not. You spend a lot of time with the people you work with, so it is ok to let your guard down and to just be yourself.

Cont. 

INTERVIEW GIFFGAFF At the same time, as a leader, you need to have sharp decision-making skills. This is something a coach talked to me about when I took up the CEO role. She said, my life was going to change and that I would have a lot of decisions to make – so don’t build a backlog of decisions to make. It also helps to be a deep listener. You can sometimes approach something in the wrong way – so you need to seek out the truth. As a CEO, people sometimes tell you what they think you want to hear rather than what you need to know. To make the right decisions you need to have all available information – so I aim to seek out the truth to guide us in the right direction.

WHAT HAVE BEEN THE MAIN CHALLENGES YOU’VE FACED SINCE BECOMING CEO? On your progression into seniority, you have got to retrain yourself, in regards to where you get your ‘nourishment’ from. When you are junior or middle management, you get a lot of nourishment through doing your job. The irony is that the more you do, the more you get, but when you reach the CEO your job is to create the opportunity for others to get that nourishment.

You need to open doors to others. It is not easy to let go sometimes, but it is a good lesson to learn when taking up a senior role. The upside is that, in time, you end up getting more nourishment from unlocking the potential of those around you. We have a wonderfully diverse and talented team at giffgaff, so to help them build selfbelief and take opportunities to acheive more than they thought was possible is incredibly rewarding and in the true spiriit of giffgaff. It has been a key part of my own journey into senior management.

DOES LEARNING FROM MISTAKES ON THE JOURNEY MAKE YOU A BETTER LEADER? Absolutely – no leader has got to the position they are in without making lots of mistakes along the way. If you haven’t made mistakes, then you haven’t pushed yourself hard enough and you won’t grow as a leader. In some ways, this is why the mobile phone industry has been kind to me. When I began it was in its infancy and was seeing such growth, that everyone was making mistakes. This was a benefit to be a part of an industry growing at such a rapid rate. Learn from mistakes, then get back

on a winning streak – and that’s what has happened within the industry.

DO YOU THINK IT IS IMPORTANT FOR CEOS TO HAVE COACHES?

Every leader has to find their own path. I like to talk out what is happening and what I believe is the best way to proceed. Speaking to a coach has alway helped me get better clarity and focus on what I do next, and think about what to do next. Personally, I have found them very useful.

WHAT MAKES A BAD LEADER?

When a leader has the desire to appear strong all of the time and never let their guard down. People are always a lot more engaged if you demonstrate your leadership style through being a well-rounded human being. The true role of a leader is to create the next generation of leaders. If you go about your business Teflon-coated or with a suit of armour on all the time – it is not real, and people see that. This has never been truer than being a leader through the pandemic – this is why I have spoken to the team daily, to share what is going on with the company and myself. This hasn’t been easy for anyone.

"AS CEO, I WANT TO LEAVE A LEAVE A LEGACY WHICH I CAN BE PROUD OF – AND THERE IS STILL SO MUCH MORE WE CAN ACHIEVE AT GIFFGAFF." WHAT ARE THE FUTURE PLANS FOR GIFFGAFF?

We are very excited about how the market is shaping up with 5G on the horizon. The proposed merger between Telefonica and Virgin will stimulate the industry. So, from a giffgaff perspective there is a lot of excitement for what is to come. I feel there is still a lot we can do in our core space around mobile, but we are always on the lookout for new ways we could grow the business. As CEO, I want to leave a legacy which I can be proud of – and there is still so much more we can achieve at giffgaff. 

June/July 2021

AUDIT YOUR AUDITOR Does your auditor inspire confidence? Do they meet the highest standards? Do they see you as a name or just another number? At Albert Goodman, we take a different approach. Small enough to offer a dedicated, individual service. Big enough to give you the depth and breadth of expertise you need. So, if you’ve had your fill of audit by autopilot, talk to us.

albertgoodman.co.uk

SURVEY

WHAT ARE THE CHALLENGES FACING FAMILY-OWNED BUSINESSES? OF UE S S G S E I ES IN TH LAY L THINK E S H E P T DO XIT YOUR OF E E BR T IN AUS C R PA BE IC? W NO DEM N PA NO

2 5 %

32 YE

Paul Hake, who is a partner at Albert Goodman, gives his assessment of a recent survey that his firm sent out to over 12,000 businesses. The aim of the survey was to find out the challenges facing those running family firms.

LANIT T P U YOUECRALENEXT S? O D TO R W T E N TH NEIN TH MON 12

The pandemic has affected some sectors more than others and therefore drawing general conclusions is difficult. My experience is that businesses in some sectors such as retail – that we would have expected to be hit hard – especially those that own their premises or were able to do a sensible deal with their landlord, have often done better as a result of opening at certain key times. The rates holiday was most welcome and the government needs to press on with its review of the rating system if it wants the high street to survive and thrive. I was a little surprised that only 50% thought that this has been their most difficult period of trading. It begs the question what was most difficult for the other 50%? This could be industry specific or perhaps there are established businesses that have lived through past recessions. Responses to the survey may well have been different had it not been for the unprecedented level of government support.

69%

E NO CID E ND 19% % U 12

Just over half felt it has been good enough, 21% did not with the balance undecided. No schemes could have saved every business and I have no doubt that in general the support did what it was intended. The question now is how do we pay for it? The Chancellor, Rishi Sunak was right not to do too much in his March budget as we need to see how the economy recovers first. The proposed increase in corporation tax to 25% was disappointing and the relatively low level at which the higher rate starts. This will affect many family companies and I would like to see the lower threshold increased significantly. Brexit 52% reported that Brexit doesn’t play less part in their thinking. Without the pandemic, Brexit would undoubtedly have attracted much more media coverage and to the general public a lot of the issues affecting businesses may have gone unnoticed.

June/July 2021

FAMILY BUSINESS

T G OSADIN M HE F TR OF A T O EERNIODWNER B S E O THI LT P THE S HAFFICUU AS DI R YO SS? FO SINE BU

O AB U O T E Y EN ARNFIDXT 12 COE NE S? TH NTH MO

% 0% 0% 0 5ES 4O 1 Y

Y SA TO T UL

FIC

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DO ATTYOU FU RAC PLA INVNDINT NEN TO YOUESTMG ORW IN R B EN MOTHE NUSINT INT NTH E X E S O S? T 12S

73% YES

10% 17%

25% 52% 23%

CAN

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YES

UND

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54% T % EN M 1 N 2 VEROODES O TG G S % HABEEN INES 5 T 2 FEELHASR BUS YE

R OU EENTHE Y AS SS B BY ELY ED H V I D E T E ? W IT EC HOBUSINFECT EMIC POS F F ELY A V I AFPAND N T U GA NE

311%9% % 50

My experience is that the practicalities of doing business with Europe and Northern Ireland have hit many family businesses hard to the extent that they are questioning whether it is worth it. We need this trade for our economy to grow and as attention shifts away from the pandemic the government needs to listen to these businesses and simplify the processes.

DED

NO PINI O

YOU ORT FO S? DOSUPPOUGHYOUR ENLIKE

As we emerge from lockdown this ties in with the forecasts that our economy will recover quickly and there will undoubtedly be opportunities for forward thinking businesses to take advantage of the new normal – whatever that may be.

Overall, I took a message of optimism from the survey. In particular: •

69% plan to recruit new talent in the next 12 months

T:0330 333 5039 | E: Paul.Hake@albertgoodman.co.uk

•

73% are confident about the next 12 months

www.albertgoodman.co.uk

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FEATURE

‘Smart businesses have NonExecutive Directors’ Non-Executive Directors (NED) can be a useful soundboard for ideas and strategy – but should your business look to bring one onboard? Business Leader investigates. A NED is a member of a company’s board of directors, who is not a part of the full-time staff, or an executive member involved in the day-to-day management of the business. However, they may be involved in policymaking, the businesses’ growth plans and can offer an independent oversight of the aims and goals of the firm. They are typically brought into a business by the owners and the company shareholders to constructively challenge the decisions

made by executive directors and senior management – and often have specialist knowledge in the sector and stage of growth the company is currently in. On the benefits of bringing in a NED, Gary Ashworth, Founder and Executive Chairman of InterQuest Group comments: “It’s no secret that humans need other people to help them be the best they can be. Tennis players have coaches, racing drivers have a whole entourage of professionals fawning over them, Peloton owners take delight in people shouting at them. It all starts with the humble understanding that we entrepreneurs need help. Smart businesses have Non-Executive Directors.” Pros of an NED So on the presumption that smart businesses have NEDs, what value will they add.

June/July 2021

NEDS

Mike Townend has recently been appointed as a NED at sustainability intelligence firm, Curation Corporation Ltd. He comments: “For me, the main element is to be a sounding board, to listen and to help emphasise that a company's purpose and mission is obvious and that they have a clear strategy and route to achieving their goals. It is my role to almost ‘de-stress’ everyone and help them pull together cohesive frameworks and processes and to be a constructive challenge to their thought processes. I have in depth knowledge of how to develop and cultivate company culture and diversity of thought, as it is imperative that businesses recognise that you need diversity of thought to grow and scale." Jane Hamilton, Chair of NHS Property Services agrees with this assessment – and the current global drive for diversity can be driven by an NED. She said: “Recruiting a NED can be one of the most valuable additions you make to an organisation. Not only can the right person give you an external perspective, but they can also challenge perceived wisdom and encourage the Executive to think differently. The right choice will diversify your board, and this can result in an exciting range of new ideas.

the right thing for shareholders. It’s quite a responsibility, staking their reputation on what, in their terms, probably isn’t a life changing amount of pay." He continues: “You can hire one for anything and everything. From start-up advice to building business contacts to specific projects such as a new IT installation, flotations, acquisitions, remuneration committees, HR issues or business coaching. The list is endless. “If we had to pinpoint a time in a business’ journey where NEDs are crucial, it’s when a business is scaling. Typically, what got us here, won’t get us there. This necessitates a structural redesign where the infrastructure of the business must catch up with the sales, and you must relay the foundations for the company of tomorrow you expect to be.” And one of the biggest challenges business owners can face is securing the right investment and investment partners, in order to scale in the right way. This is also where an NED can help.

Ashworth explains: “If you’ve chosen the right person, they’ll have done what you’re trying to do before ten-times over. They’ll have had the raging successes and, more importantly, they’ll have made the mistakes and wear the scars of past disappointments so that you don’t have to. “Additionally, NEDs become actual directors of your company, so have a fiduciary responsibility to stick to the law, conform with the Companies Act and do

"SCALING REQUIRES LOTS OF STRATEGIC DECISIONS ALONG THE WAY AND THIS SHOULD BE PERFECTLY ALIGNED WITH WHAT STRONG NEDS BRING TO THE TABLE." Fran Quilty

“They can give credibility with clients, and might even add a little more discipline to the management team. Plus, of course, a well-regarded name can be used to attract top talent to the business. “Non-execs provide structure as they introduce cadence to management interactions and reflection on the business. They also offer a level of oversight that ensures that investors have some representation on the board. "They uphold the responsibilities of management and consistently remind them of their duties to investors as well as to employees and customers. They also bring credibility, which can boost external confidence in an inexperienced management team.

“A good NED should be comfortable both with challenging the status quo and showing support when it is needed. The skills and experience that they bring to a company allow them to act both as a mentor and an objective sounding board and a great addition will always show courage of conviction.” However, probably the most common and trusted reason for bringing in an NED is to have someone guide a business through challenges that are on the growth journey – especially if that person has experience it already themselves.

the CEO from doing so. NEDs can also bring experience in certain areas that may prevent mistakes from occurring, such as fundraising.

▴ Fran Quilty CEO, Conjura

Fran Quilty, CEO of ecommerce data specialist Conjura has himself brought NED’s into the business to help with their growth trajectory. He comments: “Overall, non-execs should contribute the most in the strategic direction of the business. A good non-exec helps hugely with investors. They make it easier to attract them and the board chair can also help to handle them, freeing up

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“This is often one of the key roles of a NED, especially as businesses start out. They will often have scaled businesses before and can provide priceless advice. Scaling requires lots of strategic decisions along the way and this should be perfectly aligned with what strong NEDs bring to the table.” What experience should they have? To know what to look for in an NED, it is first important to understand your goals for growth and where you lack the knowledge or experience for what is to come. Clearly, the right person should be someone who has gone through the trials and tribulations that are going to be hurdles to jump in the months and years ahead. Cont. 

FEATURE Former CEO of global ethical shoemaker, TOMS, and now NED at ethical pet food brand Lily’s Kitchen, Helen Thompson, shares her views on what they should bring to a company. She said: “NEDs will be hired for a particular set of skills and experience that will complement the needs of the company and the makeup of the other board members. It is important when hiring new NEDs that the board chair and executive leader are transparent about the strategic direction of the organisation and have a clear understanding about what skills they need to bring. I hope to be able to contribute to the next stages of Lily’s Kitchen’s plans, not only by helping to strengthen their commitment to their purpose and values, but also in the parallels I can bring from leading strong international and multi-channel consumer brands. “Once hired, they must be willing to openly share their experiences and skills to board discussions, so that the organisation can benefit from their unique contribution. They must be prepared to contribute and to express their thoughts and perspectives. An NED must also take their governance responsibilities seriously and ensure the executive leaders and board follow these responsibilities. “They must also have experience of engaging with board situations, maybe as an executive leader or from other senior positions, that enable them to conduct themselves in a way that supports positive board dynamics.”

As a company grows, it is important to have someone who will objectively look at the company and suggest some difficult changes – something those on the executive team would find hard to accept or see. Therefore, it is important to look at rotating who is in an NED role as the company evolves. Quilty comments: “The experience of the ideal non-exec depends on what the company needs at any given moment. Our first board member had a sales/marketing background with scaling experience, which was exactly what we required at that point in time. More recently, we brought in a board chair with lots of fundraising experience as that is the next hurdle for the business. “I think for an early-stage business it's helpful to create a board with both corporate and start-up experience. Too much of one or the other may introduce biases and defeat the object of having NEDs there in the first place.” Recruiting a NED After deciding to move forward with bringing in an NED, their services can only become official after a ‘Letter of Appointment’ rather than a normal employment contract. The letter must define the length of time they are to serve in the role, the weekly time commitments and the wage they will receive. According to the IoD, NED pay ranges from £38,000 to £105,000. So, when should you bring one into your business? Well, there are many elements to consider. Townsend explains: "I think each business is different and unique and NED’s will fulfil different needs at different times for companies. Having said that, probably before a company is looking to scale, when they are hoping to go into hyper growth or move faster in the scaling up process.” Before proceeding with the recruitment, there are some tips to take onboard from those who have been in this position before.

▴ Helen Thompson NED, Lily's Kitchen

Quilty comments: “It can be useful to start the relationship in an advisory capacity and if the fit is good, transition the person to a NED role. Consultants can also sometimes help businesses to identify the right people. We used Board Excellence to recruit our board chair and working through their formal process was

incredible. As experienced board members themselves, they were able to guide me on what we should look out for.” Hamilton continues: “Be bold and adventurous and look for a NED in unexpected places. Don’t recruit in your own image – diversity is essential for bringing new ideas and perspectives into a room. It is also vital that a portion of your NEDs understand and represent your customer.”

"PEOPLE ASSUME THAT NEDS ARE A TEMPORARY ADDITION TO A COMPANY, BUT THIS COULDN’T BE FURTHER FROM THE TRUTH. YOU’LL NEED A NED’S HELP FROM THE DAY YOU START A BUSINESS TO THE DAY YOU SELL IT." Gary Ashworth

However, it is clear that as the business evolve, the needs of an NED evolve with it. This is why many NEDs are only involved for a set time period, before the next stage in the company’s growth journey starts. Ashworth concludes: “People assume that NEDs are a temporary addition to a company, but this couldn’t be further from the truth. You’ll need a NED’s help from the day you start a business to the day you sell it – but it doesn’t have to, and shouldn’t, be the same NED. “The key is to keep changing the people to reflect the evolving needs of the business. Like auditors, NEDs need to be changed after a maximum of three years or they lose their independence, become too familiar and lose their objectivity, putting the success of your business at risk.” Peter Milne, from specialist recruiter Robert Walters agrees: “NED skill and experience needs to be aligned to the companies objectives. For example, if company is re-financing or going through a period of growth then the NED skills need to align to these objectives. Personality fit is a key criteria alongside experience – in addition to leadership, problem solving, analytics ability. Most importantly, NED’s must be independent thinkers and be able to challenge alongside supporting a board with its objectives.” 

June/July 2021

NEDS

How to become an NED Following a successful career in business, many entrepreneurs look at the possibility of becoming a Non-Executive Director. Business Leader spoke to recruitment specialists Moon Executive Search and Robert Walters on the subject. According to Moon, there are some key facts to consider before taking up an NED role.

•

Expectation – When offered a role, make it clear what is expected from you in terms of your time and other parameters that are a part of being a new NED. You’ll need to invest your own time and knowledge on their terms.

How does this differ for a role at a FTSE firm? Daniel O'Leary - Business Director at Robert Walters shared his views with Business Leader Magazine. The recruitment process for a NED at a FTSE business is quite a stringent process – typically the Nomination Committee and Chairman will conduct the interviews and so a business leader such as a CEO is likely not to be part of the process. Other areas they will consider when looking for a NED in the current climate are:

•

Be realistic – It is a very competitive market. You need to have an extensive portfolio for what a specific company/ sector/stage of growth needs.

•

Due diligence – You’ll need to do in-depth research for the company to understand the growth potential of the company, and what you could bring to the team.

1. There is a huge D&I focus at the moment and this will continue – especially due to the findings of the Hampton Report which highlighted a number of shortcomings across the NED world.

•

Management experience – An NED will need to be able to collaboratively work with the board, but remember that you are there to advise, rather than action change.

2. The NED often will sit on the Audit, Nomination and Remuneration Committees and as such needs to have a strong advisory background across multiple business areas.

•

Stand out from the crowd – When looking for a role, you will need to highlight what separates you from the rest. Specific knowledge? An extensive investor network? Proven success in a niche sector?

•

Market profile – Does your network know you are looking for an NED role? You will need to publicly demonstrate your knowledge of the sector and any trends within it – all while connecting with the right audience.

3. The biggest attribute of a NED is being able to put aside often previous leadership and ultimate decision making skills to become a trusted advisor to the key decision makers. This is often one of the most challenging transitions of a NED – especially if they have had overall control such as a CEO or CEO in a business.

•

Independence – A successful influencer will be able to act independently, without any conflict of interest – and to challenge leadership from an outsider’s perspective.

•

Training – The role is hyper-specialised and only reserved for highly successful individuals. However, training is needed on the best way to proceed as an NED. The IoD, ICSA and many others run training courses.

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4. The pandemic has shone a light on the need to improve the digital agenda within a business – more and more Boards are starting to consider CIO and CTO level candidates as opposed to previous CEO , CIO and CFO candidates to provide balance to the advisory team. 5. IFRS and Regulatory governance can be a big part of the NED world and candidates with this background can often be in high demand – especially for Audit Committee roles.

FEATURE

June/July 2021

NFTS

WHAT ARE NFTS? AND SHOULD YOU BE INVESTING IN THEM? In recent years, blockchain has become an increasingly popular tool for entrepreneurs, businesses, banks, and government institutions – and its most recent form that has become popular in 2021, is an NFT. But what is it? Business Leader investigates. An NFT is Non-Fungible Token – but to fully understand what means to investors, it is important to understand its roots in blockchain. Blockchain is a specific type of database or storage of data. Created in 2008, it is unique in the way it stores information. Unlike a typical database, it collects data in ‘blocks’ that are then chained onto the previous ‘block of data’. Once new data is received it creates the next step in the chain, keeping everything in chronological order. Although, in theory, it can be used to store a wide range of information, it is typically used as a ledger for transactions online. A database in its historical digital concept is a collection of data that is stored electronically on a computer system – which can be accessed, analysed, and edited by multiple users. Large databases do this with large and numerous amounts of digital storage facilities. Blockchain operates in a similar way. It collects information on blocks, then moves onto the next one – and the process continues. However, blocks have certain storage capacities and once full, a new block is needed. A database stores data in tables – blockchain stores data in blocks. Each block receives a timestamp. This means that blockchain allows digital information and transactions to be recorded and stored – but never edited. This has since been developed into cryptocurrencies, such as Bitcoin.

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HOW DOES THIS LINK TO NFTS? Non-Fungible Tokens, or NFTs as they are colloquially known are the newest trend to come out of the blockchain sphere. NFTs are one-of-a-kind digital certificates that prove ownership of a digital asset. The authenticity of such assets are verified through the blockchain mechanism, giving way to a whole new realm of digital collectables. In economic jargon, a non-fungible asset is a nontradeable asset and is considered one-of-a-kind. In essence, owning an NFT means you own an original of whatever the digital asset is. While the digital asset can be replicated many times by anyone, only the owner of the NFT for that asset is the true single owner of that asset. The authenticity of each NFT is verified by the blockchain ledger mechanism. NFTs can be any digital asset but can be broken down into six major categories: Metaverses, Art, Gaming, Sport, Collectibles and Utility. A ‘fungible’ token is an item or currency that has an equal value somewhere in the world for it. However, something that is ‘non-fungible’ means that the item has a unique value. NFTS MARKET CAP EXPERIENCED COMPOUND ANNUAL GROWTH RATE OF 187% FROM 2018-2020 Blockchain’s recent innovation is raising some eyebrows, as the value of NFTs has grown significantly over the last few years. According to data presented by Trading Platforms, the market cap of NFTs increased by 138.8% year-on-year in 2020 at a compound annual growth rate (CAGR) of 187.28% from 2018-2020. NFTS MARKET CAP REACHERS $338M NFTs are a relatively new trend in the blockchain world, with many pinpointing its origins to 2014’s Colored Coins. Since then, the digital tokens have grown in prominence, with recent eye-catching transactions worth millions of dollars.

Cont. 

FEATURE NFTS

According to a report by Nonfungible.com, the market capitalisation of NFTs has exploded in the last few years. In 2018, the market cap of NFTs was calculated at just under $41m. By 2020, that number had risen to just over $338m for a CAGR of 187.28% from 2018-2020. TOTAL REVENUE FROM NFT TRANSACTIONS IN 2020 WAS $55M Revenue from NFTs in 2020 amounted to an estimated $55m. Metaverses had the biggest share of this revenue with a total of $14.02m or 25% of the total. In terms of the number of NFT transactions, the gaming category had the largest in 2020, with almost 630,000 transactions or 47% of all NFT transactions in 2020.

GROWING NFT INTEREST HINTS AT LONGTERM ADOPTION Digital asset trading remains under the spotlight as NFTs are taking the financial sector by surprise. The record-setting $69.3m sale of Beeple’s digital artwork and the world’s first purchasable NFT house are the latest examples of the ongoing hype — but is it a trend that is going to stick around? NFTs are blockchain-based records that represent pieces of digital media like art, videos, music, games, text and more. The code within an NFT identifies the uniqueness of it as well as the history of its ownership, this way proving the item’s authenticity and putting a value on it.

Zabulis sees this as a key moment — NFTs have changed the whole concept of how some unique digital assets are sold and traded. Art is another example impacted by the NFT trend — cutting out the central platforms from the selling infrastructure, it allows artists themselves to sell their works, track sale records and always get a share of profits.

As of March 16, 2021, the largest NFT sale was for a digital art titled Beeple Everyday: The First 500 Days, which was sold for over $69m on March 11, 2021 at auction by the historic Christies Auction House. Jack Dorsey, the founder of Twitter, recently auctioned off the platform’s first-ever tweet made by himself from 2006, which reads ‘Just setting up my twttr’.

IS IT A FAD, OR ARE THEY HERE TO STAY? NFTs have become a hot commodity lately, with everyone from artists, musicians, sportspeople, and even entrepreneurs making millions trading them. Piplsay, a global consumer research platform, conducted nationwide surveys in the UK and the US this week to find out what people think of this new emerging concept: •

33% of Britons believe NFTs are just a fad, while 59% of Americans believe they will be the next big thing

•

40% of Britons think NFTs may not be safe, compared to 33% of Americans

•

49% of Britons feel celebrities should act responsibly given cryptocurrency’s contribution to global warming

"NFTS COULD ESSENTIALLY ELIMINATE SUCH PLATFORMS LIKE EBAY, FACEBOOK OR SPOTIFY, BY CREATING A DIRECT ECONOMIC RELATIONSHIP BETWEEN THE DIGITAL ASSET CREATOR AND THE BUYER." Vytautas Zabulis

NOTABLE NFT TRANSACTIONS The topic of NFTs was recently trending because of some notable transactions. Notable in their nature because of their price or for their significance.

The NFT was on the market for two weeks and sold for just under $3m on March 22, 2021.

Earlier this year, NBA Top Shot, a blockchain-based trading card system, generated over $230m in gross sales, helping to make the idea of an NFT more popular for the masses.

▴ Vytautas Zabulls CEO, H-Finance

Some might see NFTs as another bubble, predicting it’s oncoming rapture, but Vytautas Zabulis, CEO of H-Finance, a company which offers 100% regulator compliant digital asset trading for financial institutions and Fintech companies, believes NFTs have unique potential for long-term adoption. “Yes, the NFT bubble will eventually pop, but the broader impact it’ll make will remain,” stresses Zabulis. “Just like any new technology, which is changing the way we live right now or in the future—similarly what we’ve seen with other digital assets like Bitcoin—as the initial hype evaporates, the prices level out and wider adoption begins, though the process can be lengthy.”

“NFTs could essentially eliminate such platforms like eBay, Facebook or Spotify, by creating a direct economic relationship between the digital asset creator and the buyer. What we see now is just the infant stage of what could become a new trade market, eventually mingling with traditional finance. "For the time being, NFTs are a part of the decentralized finance (DeFi) movement, where an NFT could be compared to a financial instrument, since NFTs could be mortgaged, loaned, sold or bought in parts, acting as a derivative,” comments Zabulis. “We are thinking of integrating NFT trading platforms into H-Finance’s API to make it accessible for crypto trading clients. There is certainly a lot of interest and buzz in this early adoption stage.” While it is too early to really say how exactly NFTs will develop further down the line, the impact of the enthusiasm around the latest digital asset trend might be something to keep an eye on as it continues to show the versatility and adaptability of blockchain technology. 

June/July 2021

ADVERTORIAL

Tips from the top By Martin Bysh, CEO of fulfilment technology provider Huboo

My co-founder Paul and I met while we were dragging our kids to the match and we found we had a lot of mutual interests – especially entrepreneurialism. Reluctant to quit his day job running global logistics for P&G, I offered to join him and perfect the fulfilment business model. Whilst exploring the fulfilment and logistics space further, we discovered that the small business and start-up fulfilment market was uncontested and ripe for disruption. Launched in 2017, Huboo is one of the UK’s fastest growing fulfilment providers, working with more than 800 eCommerce retailers worldwide. Its unique ‘micro hub’ technology enables online retailers of all sizes to access a complete end-to-end fulfilment operation within minutes. Huboo has grown dramatically over the past few years - expanding its total UK warehouse space to 11,000sqm, and growing its team to 250 people.

What were your goals and ambitions when you first launched Huboo, and how have they changed over time? We set out to help UK retailers get their products to customers quickly and cost-effectively. Whilst we still do this today - we’re now working with businesses of all sizes and scales.

Huboo’s founder and CEO, Martin Bysh tells Business Leader what it’s like to be at the helm of a fast-growth fulfilment technology company, and shares some of his biggest learnings from two decades of entrepreneurship.

Growing a successful business comes hand in hand with growing a successful team. What is your approach to finding the best talent? Aim to create a company that talented people really want to work for. Think carefully about your culture, your company benefits and the opportunities you provide for people to grow and develop, the chances are you’ll end up attracting great people.

Huboo has been a game-changer for the fulfilment industry. How did you come up with the idea? I’m a massive nerd at heart with a keen interest in technology. However, despite having spent over 20 years in the tech industry, it wasn’t my day-job that inspired the idea. It was actually on the sidelines of an under 10s Sunday League football game!

What skills or personality traits do you think are important in business? One of the most helpful skills in business is the willingness and ability to iterate quickly. You need to move fast, be decisive, and assume that every problem is your problem. Don’t leave it to someone else. As a leader, you need to take charge and take action.

When it comes to personality traits, being able to trust your intuition is right up there. What has been your biggest business learning? Never look back, always look forward. Seek out the right funding. Bootstrapping a business is hard and you have to truly commit yourself. Funding can give you the breathing space to worry less about money and focus on driving your business forward and refining your proposition. What’s the best or worst business advice you’ve ever received? The worst advice would have to be people telling me I couldn’t or shouldn’t do something! You have to figure things out yourself Making mistakes is an inevitable part of business. How have you handled them when they’ve happened? For me, the key is moving quickly. We’ve all heard the saying ‘fail fast, learn fast’, and in my experience it really is true. We’ve always been good at pivoting and responding at speed to change, any mistakes we’ve made have always been easily solved and we’ve moved on. Because of our funding, we’ve been able to make mistakes without them having a critical impact on our finances. Getting solid investment means you can accelerate quickly whilst reducing your risk. The key is to find investors that you’re aligned with and ensure you’re all on the same page when it comes to business expectations.

For more information on the services Huboo can offer you, Call 01722 444 025 or Email info@huboo.co.uk

www.huboo.co.uk Business Leader - Inspire • Inform • Connect

ROUND-UP DEALS

The Business Leader Deal Room Business Leader highlights a selection of significant deals that have taken place in the last six months FOOD & DRINK Poké House, a fast-casual poke brand in Europe, has announced the acquisition of London-based restaurant chain Ahi Poké from BVC Group, marking its expansion in the United Kingdom. The move follows the closing of a €20m Series B funding round led by Eulero Capital, with backing from FG2 Capital and reinvestment from Milano Investment Partners Sgr (MIP Sgr).

TECHNOLOGY

AUTOMOTIVE Caterham Cars has been acquired by Japanheadquartered automotive group VT Holdings, from businessmen Tony Fernandes and Kamarudin Meranun. The company assumes custodianship of the British sportscar brand, having been the Japanese importer since 2009, where it currently sells over 120 cars annually. Caterham Cars sell to 20 markets globally with exports accounting for 60% of its annual new car sales volume.

RECRUITMENT Totaljobs and StepStone have acquired the San Francisco-based, conversational AI technology firm, Mya. With the help of Mya’s conversational AI, Totaljobs will fundamentally change the way it engages with job seekers, nurturing those relationships, and matching them to the right job opportunities.

TECHNOLOGY Zynga Inc, a global interactive entertainment firm, today announced it has entered into a definitive agreement to acquire Chartboost, a mobile programmatic advertising and monetization platform for $250m. Along with its talented team, Chartboost brings a global audience of more than 700 million monthly users and more than 90 billion monthly advertising auctions.

Okta, the independent identity provider, has aquired Auth0, an identity platform for application teams. Okta and Auth0 address a range of digital identity use cases, providing secure access and enabling everyone to safely use any technology. The transaction, valued at $6.5bn, will accelerate Okta’s growth in the $80bn identity market.

LEGAL Paul Hastings LLP, a global law firm, announced that the firm advised Madison Industries, one of the world’s largest privately held companies, as lead transaction counsel, in an agreement to acquire Nortek Air, an international provider of critical air management, thermal and HVAC solutions, in a transaction valued at $3.63bn.

RETAIL Dimepiece LA, a clothing brand recognised by celebrities and fashionistas for its fashion-forward looks, inspiring messaging and aesthetics, has been acquired by an undisclosed UK-based hedge fund in a $50m takeover deal that will see the brand re-launched in the UK.

TECHNOLOGY Meltwater B.V., a global SaaS provider of media intelligence and social analytics, has entered into an agreement to acquire Klear, an Israeli SaaS and influencer marketing firm. For the full year of 2020, Klear reached revenues of $7.6m. Excluding earn-out, Meltwater has agreed to purchase Klear for a price of 1.4 times 2020 revenue.

June/July 2021

NEWS

Job boom as firm expands The jobs market had a boost recently when a South West firm announced 200 jobs were being created in marketing, media and technology.

opportunity to learn about various roles and answer questions.

The Ascot Group has offices in London and near Bristol, and has recently acquired its third site at Worle Park Way, North Somerset – adjacent to a mainline train station, the M5 motorway and 20 minutes from Bristol international airport.

"We want people to ditch the commute and work local – it saves money, is better for the environment, reduces stress and gives people more time to spend with family and friends.”

The new base will not only provide a unique office space but will be an employee’s haven of physical and mental wellbeing, with onsite gym, café and lounge, happiness-boosting indoor ‘living wall’ and more. Over 500 people applied for roles during a three day socially-distanced recruitment event. Groups of five people were shown around the new head office, with an

Ascot Group CEO Andrew Scott said: “This was a hugely successful recruitment drive and we have seen a clear pattern of people wanting to return to an office, but dreading the commute. In a postCOVID-19 world, having workplaces that are enriching the happiness, physical and mental health of people is absolutely essential.

The company is creating jobs in media, publishing, events, web design and social media, as well as call-centre and customer services.

Jobs are available from junior to senior executive, and technical roles, and the firm hopes to attract people with features like on-site parking, bike racks and electric vehicle charging points. www.ascotgroup.co.uk

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OPINION

SAM SIMPSON

Angel portfolios - how big is big enough? In this article, Sam Simpson – Founder of Founder Catalyst – gives his views on angel investing and what the optimum portfolio is. Finding your feet in angel investing isn’t easy – you need to work out where to find potential investees, how to do due diligence, understand the complex tax regimes and find out for yourself what ‘market standard’ is for angels. I came to angel investing three years ago, following a long career in large-scale IT project management (including the dramatic collapse into administration of the company I’d worked for for 13 years), and more recently, as an entrepreneur and founder of one of the UK's fastest growing tech companies. I exited this business in 2017 and made my first angel investment in March 2018. I was lucky enough to be introduced to some very seasoned angels who helped me ‘learn the ropes’. Since then I have invested in 20 companies and made three follow on investments. Angel Folklore One of the first pieces of advice I received was to have the ‘right sized portfolio’, in order to get the best return and spread risk. But how big that portfolio should be was up for debate - some angels would say 10, others 20, others nearer 30. It became clear that my new investor friends were speaking from experience rather than drawing on any sort of evidence. I was surprised there was no science behind this fundamental facet of investment. The UK Business Angels Association (UKBAA) and British Business Bank have recently released their annual report: The UK Business Angel Market 2020, and it’s fair to say that it makes for fascinating reading. Weighing in at 43 pages, it takes some time to digest, but figure 26 jumped out to me as immediately of interest – showing investment exit multiples from 2018/19 covering 300 exits during the period.

£30K £28K £26K

£27,550

£27,400

£27,000

£26,750

£26,471

£26,333

£20,000

£15,000

£16K

£20,000

£18K

£25,000

£20K

£22,000

ROI

£22K

WHAT IS THE OPTIMAL NUMBER OF INVESTMENTS TO HAVE IN AN ANGEL PORTFOLIO?

On average, we expect a portfolio of 25 companies to return x2.7 the money invested. This rises to x2.77 if you invested in many hundreds of companies. WHAT IS THE OVERALL IMPACT OF EIS ON AN INVESTOR PORTFOLIO?

£10K 10

Number of EIS Investments in Portfolio

The outcomes provide evidence-based answers to the following questions:

WHAT RETURN CAN YOU EXPECT FROM A SUFFICIENTLY LARGE PORTFOLIO?

£24K

£12K

I wanted to use this data to dig into that ‘how big?’ question. I made some sensible assumptions about the UKBAA data, including assuming that all investments were made under the Enterprise Investment Scheme (EIS). I then ran a Monte Carlo simulation using the expected return percentages and the level of return from that outcome in order to model a real world portfolio. I ran 10,000 simulations and modelled the outcomes against various sizes of investor portfolios.

Returns start gently tailing off after 15 investments, but we consider 25 to be an ‘optimal’ portfolio size. This is higher than the actual average number of investments made by angel investors, which is 17 (according to the UKBAA report), showing that many angel investors could optimise their portfolio by increasing its size.

AVERAGE RETURN ON INVESTMENT UNDER EIS SCHEME

£14K

Sam Simpson Founder, Founder Catalyst

100

Assuming your entire investment portfolio is based upon EIS investments then the expected return jumps from x2.77 to x3.19 times. 

June/July 2021

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