Business Leader Magazine: October/November 2022

northern powerhouse dominates e-commerce after flotation

LATEST NEWS

INTERVIEW:

OLIVER

EDITORIAL

Oli Ballard - Director

E: oli.ballard@businessleader.co.uk

James Cook - Digital Editor

E: james.cook@businessleader.co.uk

Serena Haththotuwa - Digital Editor

E: serena.haththotuwa@businessleader.co.uk

DESIGN/PRODUCTION

Adam Whittaker - Head of Design

E: adam.whittaker@businessleader.co.uk

SALES

Emma Filby - Head of Advertising

E: emma.filby@businessleader.co.uk

Sam Clark - Head of Awards Sponsorship

E: sam.clark@businessleader.co.uk

DIGITAL & WEB

Josh Dornbrack - Head of Multimedia

E: josh.dornbrack@businessleader.co.uk

Gemma Crew - Social Media & Community Manager

E: gemma.crew@businessleader.co.uk

Rosie Coad - Marketing Executive

E: rosie.coad@businessleader.co.uk

Joshua Phillips - Website Development

E: joshua.phillips@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

OUR COMMITMENT

Business Leader Magazine is committed to a zero carbon future and supports the World Land Trust by using recyclable paper wrap rather than plastic polywrapping. Carbon-balanced PEFC® certified paper, which is sourced from responsible forestry, is produced in an environmentally-friendly way to offset our CO2 emissions.

LETTER FROM THE EDITOR

With political uncertainty, the loss of the UK’s monarch, and swirling talk of an impending recession, UK businesses have proven their resilience this summer. However, Q4 brings a fresh opportunity for the country’s business leaders to shine.

In this edition of Business Leader magazine, we bring you our exclusive interview with musicMagpie founder Steve Oliver. We discuss the process of listing, committing to sustainability and much more. We look at new-age HR policies and their long-term place in the world of work. We also take a deep dive into wargaming – how it could improve your business – and the sportwashing industry.

It’s been an exciting few months at Business Leader HQ. We partnered with Oracle Netsuite to focus on business growth, providing tips on future-proofing and scaling with ease. Head over to our website for more information. We also welcomed over 600 business leaders, entrepreneurs, and VIPs to Ashton Gate in Bristol for our annual South West Business Leader Awards. It was a fantastic night, hosted by comedian Patrick Kielty, and celebrating the South West’s leading businesspeople and entrepreneurs.

Now focus turns to our networking event of the year. On November 3rd, we’ll take over the Tobacco Dock in London for our annual Scale-Up Awards ceremony. Hosted by Russell Kane, we look forward to welcoming global business leaders, leading VCs and angel investors. Rumours are that there might even be a few Dragons in attendance... Tickets are still available, and we look forward to welcoming you all on the night.

Oli Ballard Director

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EV CHARGING FIRM ENTICES MUSK INTO ENVIRONMENTAL CONVERSATION

When Elon Musk announced his arrival in their home county for an energy conference, Easee, the smart EV Charger company, turned their small hometown of 7,000 inhabitants in Western Norway, Jørpeland, into Musk City.

In a film developed together with local production partners, Easee created an alternative reality of a Musk City – fully equipped with failing rockets, Dogecoin as currency, farting cars and their very own (not a) flame thrower.

With this campaign, Easee aims to get Elon Musk and the founders of Easee in the same room to discuss the acceleration of the green transition.

Jonas Helmikstøl, Easee Chief Caretaker, said: “We believe that it is possible to change the world for the better and that we can help accelerate electrification of our planet. But we aren’t naïve enough to think that it can be done alone. We thought that a coffee with the person who redefined e-mobility could be a good start.”

LONDON RANKED THE BEST CITY FOR ECO-CONSCIOUS COMPANIES

The UK’s capital city has officially been crowned the best city for eco-conscious companies in the UK, according to a recent study by comparison website, NerdWallet. NerdWallet looked at several variables and crunched the figures to reveal which city is best for business owners and employees who want to make a positive impact on the planet.

London scored highly thanks to its high number of EV charging points, a robust congestion charge, a high number of renewable electricity sources, and

a high percentage of offices with EPCs of A-C or registered carbon neutral.

The second city, Birmingham, came in second spot, scoring highly with a high number of tube and tram stops per 100,000 people, and the second highest number of renewable electricity sources in the works.

Scotland’s most populous city, Glasgow, rounded off the top three thanks to a park and ride system, and a good number of cycle routes and renewable energy sources close-by.

NEW STUDY REVEALS THE WORLD’S MOST POPULAR E-COMMERCE SITES

A new study by broadband experts Uswitch, which analysed data from the last three months on the market intelligence platform, SimilarWeb Pro, revealed the news and shopping websites that receive the most traffic globally, and which ones are the most visited in different countries around the world. Amazon.com was revealed as the website that receives more traffic than any other shopping site in the world, boasting nearly 2.4bn visits each month. ebay.com took second place thanks to 761.1m monthly, and amazon.co.jp, which sees over 589m visits each month, took third.

MERSEYSIDE AND NORTH WALES REVEALED AS THE UK REGIONS PAYING THE MOST FOR ENERGY

As the UK continues living through the ongoing cost of living crisis, research undertaken by UltraLEDs has revealed the regions that are paying the most for their energy in the UK.

By analysing ONS and UK government data, the lighting supplier highlighted residents living in Merseyside and North Wales were paying the most for gas and electricity in 2021, spending around £116 per month. However, it was households in the East Midlands that spent the least at £108 per month.

The top 10 regions paying the most for gas and electricity per month in 2022 are:

• Merseyside & North Wales (£116)

• South West (£116)

• North Scotland (£115)

• South Wales (£114)

• London (£114)

• South East (£114)

• Southern (£113)

• South Scotland (£112)

• West Midlands: (£111)

• East Midlands (£108)

The research also revealed the top 10 most energy-efficient regions across the UK.

Surprisingly, it was London that topped the list of the most energy-efficient regions, as twofifths (42%) of homeowners scored A-C on the EPC scale.

Residents in the South East came in at a close second, with 41% of homes scoring a rating of A-C. While residents of Yorkshire proved to be one of the least energy-efficient regions, with just over a third (34%) of homeowners scoring an EPC rating between A and C.

BECOME A MENTOR TO HELP A SMALL BUSINESS WITH THEIR GROWTH PLANS

The Help to Grow: Management Course was designed to support small business leaders by providing them with leadership training and access to one-to-one mentoring from an experienced volunteer business mentor.

Benefits of becoming a mentor include access to fully funded Institute of Leadership & Management (ILM) qualification up to level 7, access to qualified content and networking and an opportunity

to truly give back by using lived experiences to help another business leader to grow.

Volunteer mentors can be anyone with a minimum of five years’ experience working in a business at a senior level. The time commitment for a mentor is 10 hours over a period of 12 weeks.

You can sign-up as a volunteer mentor today: bit.ly/HelptoGrowMentorSignup

BORROW A BOAT LAUNCHES IN FRANCE

Borrow A Boat, a boat rental and yacht charter marketplace, will further diversify its global offering by launching into France, one of the world’s most renowned sailing hotspots.

Founded in 2016, Borrow A Boat has access to 45,000 boats in 65+ countries and is on a mission to make boating more accessible, affordable, flexible and inclusive for all.

The announcement of the launch into the French market follows a series of successes for the

business, including a recent crowdfund raise.

Founder and CEO of Borrow A Boat, Matt Ovenden says: “Along with our planned IPO, we felt a launch into France – one of the most popular boating destinations in the world – was the natural next step.”

WHAT IS THE BIGGEST POST-PANDEMIC WORKPLACE ATTRACTION?

New research published by Aviva, the UK workplace pension provider, found more workers surveyed said they were attracted to their current role for the work-life balance (41%) than the salary (36%).

This is a switch in rankings compared to 2019, before the pandemic, when more workers said they were attracted to the salary (41.02%), closely followed by work-life balance in second place (40.97%).

Laura Stewart-Smith, Head of Client Engagement at Aviva: “Before the pandemic, it would have been difficult to imagine a time when employees would pick a role for the work-life balance over the salary. The pandemic seems to have shone a light on the importance of being able to juggle family-life, exercise-life, dog-life – whatever the lifestyle – with work-life.

“Getting this balance right for employees and employers is a tricky one but if successfully achieved it can often mean a happier and more productive workplace.”

LSE RANKED THE TOP UNIVERSITY FOR LANDING A JOB AT A BIG FOUR ACCOUNTANCY FIRM

London School of Economics and Political Science (LSE) ranks as the best university for landing a role at a Big Four Accounting Firm according to a new analysis of LinkedIn data.

Online trading platform and broker CMC Markets analysed LinkedIn data for the Big Four Accounting Firms - PricewaterhouseCoopers, Deloitte, EY and KPMG - to see where their current employees most attended university.

The analysis looked at the UK’s top 60 universities and the figures were also calculated as a proportion of each university’s enrolment size, based on student enrolment for the 2020/21 academic year according to the Higher Education Statistics Agency.

Following the LSE was Cambridge University, with 15.4% of its enrolment size currently employed at a Big Four firm. Next was Oxford Brookes University with 13.2%, Durham University placed fourth with 13.1% and in fifth was the University of Lancaster with 9.9%.

BIFF BANG POW THRIVING TWO YEARS AFTER SECURING LIFELINE TAX RELIEF FUNDS

An Oxfordshire-based business is flying high two years after securing lifeline tax relief funds courtesy of a Midlands accountancy firm.

Prime Accountants Group, which has offices in Birmingham, Solihull and Coventry, assisted the Covid-hit firm Biff Bang Pow with securing Research and Development (R&D) reliefs of up to £50,000, a cornerstone in saving the business from closure at the height of the pandemic.

The well-established design and development agency was struggling due to the domino effects of Covid-19, and with revenues plummeting, owner David Burke said the business was in need of financial support to ensure it would survive the unprecedented industry and economic downfall.

Morgan Davies, Director at Prime, said the firm was determined to help as many businesses as possible during the trying times of the pandemic and was ecstatic their efforts had been successful once again.

What the FX?!

How it feels when fluctuating exchange rates erode your profits.

Your invoices run like clockwork. As an exporter, when you billed your international clients in US dollars you would have factored in the 20% margin you needed to meet annual projections.

But when they settled 30 days later, the dollar had weakened against the pound, and all of a sudden you’re under delivering revenue. Ouch.

Was there something you could have done? In short, yes. Exporters and importers can plan ahead to mitigate the impact of fluctuating exchange rates, and we can help. We have over 20 years’ experience in foreign exchange and our OFXperts are here to help.

Everyone loves a smart game plan

OFX specialises in helping SMEs get on top of their currency risk management. And it’s much easier than you think. We asked our OFXpert Jake, what key things businesses should consider if they trade overseas:

1. Do you have fl exibility in your pricing?

Depending on your business you may or may not have the ability to price dynamically throughout the year. Many businesses don’t.

If the exchange rate changes between the time you committed to buy and when you come to pay suppliers, you could be paying more or less in your home currency. Equally, if you have overseas customers the revenue you generate throughout the year for the same contract could fluctuate.

Businesses who need to keep prices low to stay competitive could be disadvantaged if they have to pass increased FX costs to their customers.

2. Proceed with certainty

Jake, OFXpert since 2012

Contract.

If you need to secure a fixed margin for your business there is a way you can take the sting out of moving exchange rates. Consider using a Forward Contract. You can lock in a rate for a period of time to help protect your profits.

Securing an exchange rate when you finalise your annual budgets will give you more certainty over FX costs and help you achieve a healthy margin.

It can be a good idea to fix the rate when the currency market is in your favour. Back in July, when GBPUSD was at a 2-year low, FX savvy exporters were locking in their currency requirement

for the rest of the year so they could benefit from a stronger US dollar for longer. If you’ve fixed the rate, you could miss out if it improves later, but you’ll be protected from any adverse moves. That’s one headache gone.

3.  Use FX to price competitively

Price is a competitive advantage for many of our clients. Let’s say you sell holidays to Spain. Locking in a great rate of exchange for supplier payments can mean that your travel agency can afford to lower prices

while achieving the same margin. And ultimately sell more holidays.

It’s important to remember exchange rates can move in your favour, and if you’ve committed to a Forward Contract, you need to fulfil it even if that happens. Some clients lock in a portion of their currency requirement and buy their remaining currency on the ‘spot’ or ‘on the day’ market. It means if exchange rates move in your favour you can still take advantage. And perhaps this is a benefit you can pass to your clients. Win-win.

OFXpert

Don’t isolate FX from budget setting

You may work with a fixed rate of exchange when setting budgets. Rates will fluctuate throughout the year. We can help you work towards your target rate using a combination of products.

Don’t leave FX to chance

You can help protect your cash flow from sudden currency fluctuations with an effective, pre-emptive hedging strategy. Our OFXperts can help you tailor a strategy for your business.

Don’t do the heavy lifting

We stay on top of global markets 24/7. So you can focus on your business, not exchange rates.

EMMA BUNTON’S ECOFRIENDLY NAPPY BRAND BECOMES B CORP CERTIFIED

WHAT PERCENTAGE OF BRITS CHECK

THEIR WORK EMAILS WHEN UNWELL?

Three-quarters of UK employees check their work emails from their personal devices at least once a day when sick from work (76%), and even when attending an appointment at the doctors or dentists (76%), new research has found.

The research, conducted by the experts at iCompario, surveyed 2,000 UK employees around the pressure they feel under to be contactable outside of working hours, and how easily they can ‘switch off’ during their time off.

Kerry Fawcett, Digital Director at iCompario said: “These findings have highlighted the need for

employers to make sure they’re giving staff the freedom to be able to switch off outside of work. The pandemic changed the way many businesses operate meaning that accessing emails and instant messages on your personal device became common place with the increase in remote working.

“Whilst our study offers fresh data on attitudes toward the right to switch off debate, it’s also telling the amount of time it takes workers to switch off. It’s incumbent on managers to work with their employees to ensure that there isn’t a risk of burnout through being unable to relax after work.”

Sustainable nappy brand Kit & Kin recently announced it has been awarded the highly coveted B Corp Certification.

B Lab’s B Corp Certification is exclusively awarded to businesses that meet only the highest standards of performance, accountability, and transparency in practices such as employee wellbeing, environmental sustainability, and charitable efforts.

Emma Bunton, Co-founder of Kit & Kin said: “This is without a doubt one of my proudest Kit & Kin moments! Since the very beginning, we wanted to create a brand that helps to make the world a better place, putting environmental and social responsibility at its core – which is why this validation means so much to us. It’s an honour to be a part of the global B Corp movement, and together we can continue to make a real difference.”

11% DECLINE IN TOWN CENTRE FOOTFALL AS COST-OF-LIVING CRISIS HITS

Place Informatics, the provider of footfall and location visitor behaviour data monitoring in the UK, has published the UK BID Footfall Indices Report to highlight how Business Improvement District (BID) towns have been performing during 2022 compared to non-BID towns.

According to the new report, in March 2022 when Covid-19 restrictions started to be removed, footfall in BID town centres was down 11%, compared to the same time in 2019.

The extensive report went on to show that May 2022 delivered the strongest recovery against 2019 with a 10% decline. However, figures in July dropped to 12% which can be attributed in part to the extreme heatwave in the third week of the month, train strikes and potentially the impact of the cost-of-living crisis.

Simon Tombs Managing Partner Monahans

At the heart of what you do

Monahans prides itself on being a local firm with international reach. We stay true to our commitment of being a trusted partner to our clients, helping them achieve their ambitions.

TAKING CONTROL OF THE CONTROLLABLES

Periods of increased uncertainty can leave us feeling overwhelming. Unpredictability, however, is part of running of a business and taking command of the parts you can control will ensure you stay in the driving seat.

Information is crucial Keeping abreast of up-to-date and comprehensive information will give you a better idea of which parts of your business may be more vulnerable to fluctuation. This will also help you make calculated decisions, in line with your business objectives, about what you don’t know, grounded in what you do know. Look at how your business has adapted to previous situations, examine your margins, consider the price increases that you know are coming and build this intelligence into your short- and long-term goals. Enrich your forecasts with certainty Projections are living things, so must adapt as the climate changes and be kept relevant by the constant reviewing of variables. If you know that an upcoming price change or new legislation is likely to impact your operationality, build this knowledge into your forecasts. Incorporating these changes into your planning will ensure that you are not caught off guard and that your decisions are backed by a greater level of certainty.

Gaining industry context

The support of business advisors can be invaluable in providing insights into the wider industry, to support your own information and gauge if you are on the right track. This information, such as how others are tackling shrinking margins, can provide context to equate your figures against and be an invaluable sounding board against which you can shape your business decisions.

We know that the next few months are going to a worrisome time for some, if not most. If you ever need support, at Monahans our doors are always open: www.monahans.co.uk

APPLE SHIFTS PRODUCTION TO INDIA AS CHINA-US TENSIONS RISE

Apple has announced that they have started manufacturing the iPhone 14 in India, as the tech giant begins to shift production away from China.

The majority of Apple phones are made in China, but Apple has moved some of its production away from the country as tensions rise between the US and China.

With China imposing several lockdowns in order to contain the outbreak of Covid-19, there have also been major disruptions caused to businesses.

In a statement, Apple said: “The new iPhone 14 line-up introduces groundbreaking new technologies and important safety capabilities. We’re excited to be manufacturing iPhone 14 in India.”

Analysts at JP Morgan expect Apple to move around 5% of iPhone production to India this year, with a quarter of all iPhone production moving there by 2025.

NEW RESEARCH FINDS UK WORKERS ARE OUT OF POCKET BY £51BN IN EXPENSES

EVERY YEAR

UK workers are out-of-pocket by £51.2bn in expenses every year according to new research from Pleo, a business spend solution for companies of 1-500 employees.

Almost 6.9 million of Britain’s workers use their own money upfront for business purposes, forking out £135.22 per transaction four to five times a month on average (55 times a year). This equates to a huge £7,437 bill in average annual out-of-pocket work expenses per employee.

The impact of these employer outgoings has been found to have regular negative ramifications on the individual’s personal budget. With 43% of workers saying they’ve previously been unable to meet a personal financial obligation, such as paying for bills, rent and groceries, due to waiting on repayments from their employer. While four percent say this happens regularly.

MIKE ASHLEY SET TO STEP DOWN FROM THE FRASERS GROUP BOARD

The Frasers Group has announced that its Founder, Mike Ashley will step down from its Board of Directors.

Frasers, who Ashley founded in 1982, said that Mr. Ashley would not be standing for re-election as a Director, and would leave the Board next month. However, the retail group said he will provide the company with £100m worth of funding and would continue

to be available to the board and management for advice “when called upon”.

Ashley, who is also the Founder and owner of Sports Direct, passed over the running of the group to his son-in-law, Micheal Murray in May this year.

Despite stepping down from the Board, Ashley will remain the group’s controlling shareholder with a stake of nearly 70%.

ONECOM COMPLETES SECOND ACQUISITION OF THE YEAR WITH PURCHASE OF SOLUTION IP COMMUNICATIONS

Onecom, the business communications technology and cloud communications specialist, has acquired Solution IP Communications Ltd, a Gamma Platinum Partner, in its second acquisition in 2022. The transaction brings Solution IP’s Bristol-based teams and in excess of 400 customers into the Onecom Group family.

Martin Flick, Onecom Group CEO, said: “As we continue to grow, supported by LDC, we are delighted to welcome the Solution IP team and customers to Onecom in a move that further supports our mission to build on and extend our geographic presence and customer reach by acquiring strong businesses that share our culture, values and ethos.”

Founded in 2002 and headquartered in Whiteley, Hampshire, Onecom employs over 600 people in offices around the UK and counts Vodafone, Mitel, Samsung, Apple, Microsoft, Gamma and Five9 among others as its strategic partners.

UNDERINVESTMENT IN ‘FRONTLINE’ MANAGERS WILL LEAD TO A MENTAL HEALTH CRISIS

According to a recent WorkNest poll, 79% of employers and HR professionals have not provided line managers with training to support employees with their mental health and wellbeing. This is despite 93% of employers being aware of their mental health and wellbeing responsibilities.

38% of employers and HR professionals also admitted to not taking steps to combat employees’ loneliness and isolation when working from home.

While 42% of employers and HR professionals have implemented measures to combat loneliness and isolation, only 12% of those that have not implemented such measures said they were planning to tackle it.

Rob Evans, Senior HR Consultant at WorkNest, commented: “It is worrying that a large majority of employers have not provided training to line managers to support employee mental health and training. For managers, learning to deal with and address any wellbeing issues in staff is vital to creating a well-supported team.”

RECYCLING LIVES LAUNCHES THE UK’S FIRST ELECTRIC SKIP TRUCKS

Waste recycling specialist Recycling Lives has announced the arrival of the UK’s first 100% electric skip transporter trucks, at its 15-acre Recycling Park in Preston.

The two 19-tonne E-Tech DZE trucks were designed and developed in collaboration with Renault Trucks and mark the start of Recycling Lives’ journey in decarbonising the company’s entire fleet. The trucks have capacity to complete a full day’s work on a single charge with zero tailpipe emissions and low traffic noise.

Powered by a 265kWh battery, each truck is equipped with a 22kW onboard AC charger and is compatible with DC fast charging up to 150kW.

Gerry Marshall, CEO of Recycling Lives explained: “This transition to electric skip trucks is just another example of our commitment to environmental innovation.”

the empire builder that started in a garage

When you talk to Steve Oliver, the Founder and CEO of musicMagpie, you can see, hear and feel how the upbringing he received from his parents and the links they built between the business they ran and the community they serve, has influenced him. Operating with a sense of purpose and duty, we met with him at his office to talk about his business that really is a ‘northern powerhouse’, his recent IPO and his views on a whole host of topics.

the interview here

CAN YOU TELL US MORE ABOUT YOUR BACKGROUND AND UPBRINGING?

I am Stockport born and bred and had a very happy, middle-class upbringing. My father ran the local post office in Heaton Mersey, and I worked behind the counter from an early age, learning about retail and dealing with people.

I was blessed to have a close family around me, from an early age.

YOUR FATHER OWNING A POST OFFICE MUST HAVE HAD AN INFLUENCE ON YOU?

Yes, it did because I had direct experience of seeing commerce happening and learning those raw skills. What has always stuck with me too is that mum and dad weren’t just sub-postmasters – they were heads of their community, and they went above and beyond to care for people and help them where they could.

DO YOU FEEL TIME IS REPEATING ITSELF AND YOU’RE A COMMUNITY-DRIVEN BUSINESSMAN NOW?

My father left a good and well-paid job, where he was working for early pioneers of computer hardware. He was able to travel a lot with this job too, but he wanted to be self-employed, and he wanted to run his own business.

From an early age too, I wanted to be an employer rather than an employee and follow in his footsteps. I have recently become Chair of the Stockport Economic Alliance

and I want to do what I can for the community I serve.

MOVING ONTO MUSICMAGPIE, THE BUSINESS HAD THIRTY SHOPS INITIALLY, BUT YOU TOOK THE BRAVE DECISION TO CLOSE THESE AND GO FULLY ONLINE. COULD YOU TELL US ABOUT THIS?

This was a tough decision because we had over 200 colleagues involved in these stores and many of them were friends of mine, and at the time our Head of Retail was an early founder of the business. Emotionally, it was very hard but commercially it was the correct decision.

We had carried out a significant channel analysis and it pains me to say it, but you could see how challenged the High Street was and the business costs were going one way whilst revenue was going another.

“BUSINESS IS ABOUT MAKING THE TOUGH DECISIONS, BUT WE WERE VERY SEASONAL. WE WOULD GET TO JANUARY AND IT WOULD BE VERY TOUGH. WE SHARED WITH EVERYBODY WHAT WE WERE SEEING, AND EVERYBODY COULD SEE WHAT WAS NEEDED.”

HOW LONG DID IT TAKE TO MAKE THE DECISION?

The devil is in the detail, and it is all about the numbers, but we could see the direction of travel about one year before we made the final call. There was a period of consultation too and the decision was very considered.

Business is about making the tough decisions, but we were very seasonal. We would get to January and it would be very tough. We shared with everybody what we were seeing, and everybody could see what was needed.

MOVING FORWARD, CAN YOU TELL US WHY YOU FELT AN INITIAL PUBLIC OFFERING (IPO) WAS THE RIGHT THING FOR THE BUSINESS?

There were a few driving factors behind this, including my personal desire to do it. I

don’t like the phrase but, in the pandemic, there were business winners and losers. The dynamic it created accelerated people shopping online and we also really woke up to the fact that we were a recycling business too.

Our digital and sustainable strategies both required capital and we wanted to accelerate our rental model, which gives us a better overall return and stickier relationship with the consumer.

Research also showed that 50% of consumers had heard of us, which meant that 50% hadn’t, so we also wanted to invest more heavily into marketing. There were lots of good business reasons, but I also wanted to go ahead with this due to being able to deliver shareholder returns because as a founder, you have a responsibility to back those that have backed you in the past.

CAN YOU TELL ME MORE ABOUT YOUR PERSONAL REASONS FOR UNDERTAKING THE IPO?

I’m privileged to have achieved lots in my business life around mergers and acquisitions, private equity, management buyouts and growing the business, but I had always wanted to be part of the IPO process.

I spoke to many people, and everybody told me not to do it, which made me want to do it even more and become a public CEO.

WHAT IS YOUR ADVICE TO ANYBODY CONSIDERING AN IPO?

What I will say before giving some advice is that the IPO I went through was all done completely virtually, so I don’t know how that compares to one that is carried out in person. I should imagine it is easier to do it through a screen as you cut out much of the travel, but I would counter that by saying that those moments on trains and in taxis between meetings do give you some respite.

One thing I can tell you too is that it is one of the most intensely exhausting experiences I have been through; and my first piece of advice is to have a good internal team and communicate clearly with them. The team were made aware of what was going to happen and how much time it would take.

You need a good leadership team, who can run the business whilst you focus on the IPO. A business will struggle when it is going through any type of fundraising unless you have a good team that can keep the company on the right track. Secondly, get a good external team around you and make sure you get on with these people both on a professional level and one where you will enjoy working with them.

YOU HAVE SPOKEN A LOT ABOUT MUSICMAGPIE’S COMMITMENT TO SUSTAINABILITY – WHERE DOES THIS PASSION COME FROM?

I have three children and I want them to grow up in a better world, and if you can’t see that we are facing some serious challenges when it comes to our climate, then there is something wrong with you.

I want for musicMagpie to play its part, and refurbishing iPhones instead of getting rid of them can save around 50,000 tonnes of carbon each year. This matters to us and it matters to our customers too. When we started the business, it was about price and service, but consumers are now looking to work with businesses that have a purpose and are acting on issues such as climate change.

DO YOU FEEL THE ROLE YOU PLAY IS INSIGNIFICANT THOUGH - IF RUSSIA, CHINA, THE USA, BRAZIL AND INDIA DON’T ACT, FOR EXAMPLE?

I believe this is a lazy approach to take because we all need to try if we are going to solve this problem. One million perfect environmentalists won’t solve this, but one billion imperfect people can. We can’t look at other countries and conclude that our own contribution doesn’t matter. If everybody did this, we would get nowhere.

“I WANT FOR MUSICMAGPIE TO PLAY ITS PART, AND REFURBISHING IPHONES INSTEAD OF GETTING RID OF THEM CAN SAVE AROUND 50,000 TONNES OF CARBON EACH YEAR. THIS MATTERS TO US AND IT MATTERS TO OUR CUSTOMERS TOO.”

WHAT IS THE NEXT BIG CHALLENGE THAT YOU WANT TO UNDERTAKE?

I am nearing the end of the musicMagpie book that I will one day write, but what I want to do next is make a success of being a public CEO. I am genuinely more excited now than I ever have been. We have a clear strategy and I want to deliver on this and make it a success. The business is on the up and our ambition is to be multicategory and multi-territory, and we want to continue to adapt our relationship with the consumer and deal with other product categories.

REVENUES HAVE DIPPED RECENTLY –CAN YOU TELL US WHY?

The business plateaued about five years ago at a £70m revenue because at this time we pivoted the business and introduced new technology. We also spent a lot of time moving people off Amazon and other sites into our own store. This was an important structural change, which then allowed us to grow quickly to a turnover of £150m.

However, in the last year, we have had a lot of focus on the bottom line because as the saying goes, sales are vanity and profits are sanity. This meant more of a focus on recurring revenue, which cannibalises our short-term revenue but will benefit our EBITDA in the longer term.

MOVING ONTO THE SUBJECT OF SKILLS, ARE YOU ABLE TO ATTRACT THE TALENT YOU NEED BEING BASED IN STOCKPORT?

Attracting talent has not been an issue for us. There is the train station right next to our office, which gets you into Manchester in seven minutes. The new way of working has helped us too because we can get development and digital skills from further afield and if they can get into the office once or twice a week, then that is great.

WHAT IS YOUR VIEW ON WORKING IN THE OFFICE OR REMOTELY?

I’m a bit of a dinosaur and I grew up working hard in the office, trying to impress the boss. I worry for young people who work remotely 100% of the time as they are not going to learn many important skills that you require in life and that you learn from being in the office with people.

Having said that, I support hybrid working and we have had a flexible approach to work for many years. I worry more broadly though about how young people are going

to be able to become the CEOs of the future and understand how to build culture and personality if they are only connecting with leaders on Zoom for twenty minutes a week.

every part of business to football, and two great leaders are Pep Guardiola and Jurgen Klopp. They are decent people, and they bring people with them.

WHAT WOULD BE YOUR FINAL WORD FOR ANYBODY THAT IS IN BUSINESS AND READING THIS?

I had a young lady that worked here but she left to set up her own craft business and I spoke to her recently and she said to me: “It is hard, isn’t it?”

YOU MENTIONED LEADERSHIP THERE - DO YOU BELIEVE THE COMMAND-ANDCONTROL STYLE OF LEADERSHIP IS DYING OUT? WILL WE SEE ANOTHER SIR ALEX FERGUSON?

There were parts of Sir Alex Ferguson’s character where he was a bully and I worked for a couple of CEOs that had that edge to their game. It’s never been a style I have admired. People can mistake being nice for softness, but you can be nice to people and treat them with respect and it doesn’t mean you can’t make the difficult decisions and be successful.

Leadership is changing and the oldfashioned controlling approach won’t survive because you need to motivate people in different ways. You can compare

It really is hard. You’ve got to work so hard and even that isn’t sometimes enough. I see a lot of young founders who have a good idea, get some funding and they think they have cracked it, but you need so much more.

Do not underestimate the importance of hard work. You must make sacrifices. I was answering customer emails at 1am in the morning and messaging Royal Mail at 3am in the morning. Of course, you need a slice of luck, and you need good people around you, but hard work is the key ingredient that is underestimated by many.

It is tough out there now and there is also nothing wrong with surviving and keeping the business going. If it doesn’t end well, you need to dust yourself down and get on with it. You can’t sulk and moan, but you must learn your lesson and go again. 

“I AM GENUINELY MORE EXCITED NOW THAN I EVER HAVE BEEN. WE HAVE A CLEAR STRATEGY AND I WANT TO DELIVER ON THIS AND MAKE IT A SUCCESS.”

is liz truss up to the task?

This article is written for Business Leader by former MP, businessman and author, Simon Danzcuk.

Sat in a swish hotel in Tbilisi, Georgia, I’m looking out on a smart, modern and historical city steeped in bright autumn sunshine. The place is being regenerated at breakneck speed.

Georgia has all the right attributes for supporting and encouraging business. Its location is perfect for bringing together both Europe and Asia, its infrastructure and connectivity are good and getting even better, and it has a stable government and institutions which encourage entrepreneurship.

It has faced challenges in the recent past, not least Russia’s invasion of two of its regions in 2008, and the Ukraine-Russian war has cast a shadow over the country. But this has not deterred Georgia from becoming a leading nation in this part of the world. They have overcome instability to create a business environment which now sees major international investment, a growing economy, positive inward migration and a booming property market.

On a wide range of international indicators, Georgia is a place to do business.

This then raised questions about stability in the UK and whether we are retaining our global appeal as a country where business is done successfully.

In many ways, we take our stability for granted. We expect our lives and businesses to go on as normal, not to be affected too adversely by outside factors.

This is because we do not face a direct threat from other nations, but we also have an array of well-established institutions which encourage and enable stability.

For all their faults, our free press, judiciary, monarchy, Houses of Parliament, enforcement agencies, financial institutions, and government agencies, all provide checks and balances which encourage economic, social and political stability.

However, we’ve also just been through Brexit, which is still not resolved, and now we’ve seen a change in Prime Minister and the passing of our Queen. These factors could have a bigger impact on our standing in the business world than one might first expect.

Whilst we can look to Commonwealth countries, the Americas, Asia, and Eastern Europe for new markets, it remains that a large proportion of our trade is done within the European Union. A failure to resolve the border issues around Northern Ireland, and the potential for that to affect our Brexit settlement with the EU, could have a damaging impact on trade relations and our broader economy.

This is why the change in Prime Minister is so crucial. Truss is a far more serious politician than Boris, who was more about style than substance. Having been

Foreign Secretary and International Trade Secretary, she looks much more capable of reaching a tough but fair settlement with the EU, one which benefits the UK.

Truss also appears to be someone who is going to make things happen and push through the changes our country desperately needs. Take her position on a windfall tax on energy companies as an example. Whilst Labour have said they would apply the tax to the energy firms retrospectively, Truss has ruled this out.

Ignoring all the nonsense about Truss having done this because she once worked for an energy company, it actually makes economic sense. It assures international investors and the business community that the UK is not a place where regulation and taxation are applied after the fact. Companies, of any size, want to know what government is planning in the future, not what it might do to profits after they’ve been generated, or distributed.

This type of approach creates greater stability for the UK on international markets, and combined with her desire to cut Corporation Tax, should stimulate economic growth.

Turning then to the awfully sad loss of Queen Elizabeth II, we now see Charles III as head of state.

It is wrong to see the Queen, or King, as simply a ceremonial role. It plays a critical part in how our country is perceived and performs. The Queen, more than probably anyone during the last century, helped instil a national and international view that the UK is a stable and strong country. She always stayed out of politics and helped tremendously in developing a renewed and reinvigorated Commonwealth.

“WHILST WE CAN LOOK TO COMMONWEALTH COUNTRIES, THE AMERICAS, ASIA, AND EASTERN EUROPE FOR NEW MARKETS, IT REMAINS THAT A LARGE PROPORTION OF OUR TRADE IS DONE WITHIN THE EUROPEAN UNION.”

Charles will need to do more in avoiding political comment - his recent intervention on the Rwanda immigration plan being a case in point. It’s not for the monarch to express opinions on their government’s policies.

Nevertheless, he will bring a refreshed approach to the role. His interest in architecture, climate change, and youthbusiness issues make him ideal to be a 21st-century monarch. He already takes regular private soundings from Privy Council members (a small formal body of advisors drawn from politics, the clergy, senior civil servants,

and judiciary), and has headed up the last couple of Commonwealth Heads of Government Meetings (CHOGM). He is actually extremely popular within Commonwealth countries.

If the UK is to retain its position in the world, maintain its economic status, remain a place where it’s easy to do business, and cooperate with countries like Georgia, then it needs strong leadership more than ever. Charles III and Liz Truss could be the leaders for our time.

1-YEAR

what your customers are buying isn’t necessarily what you’re selling!

Peter Cross has spent 30 years looking after customers. Most recently as Customer Experience Director for John Lewis and Waitrose and before that he ran Britain’s first shopper marketing consultancy with Mary Portas for ten years, building better customer experiences and fighting for the rights of consumers. He’s worked with some of the best-known brands in the world and is now a speaker and consultant.

Here, he writes for Business Leader about the enduring importance of customer service.

Whilst customer expectation and shopping habits have changed beyond recognition, what customers actually want hasn’t changed as much as you’d think – sell me what you promised, treat me with respect and ultimately make my life a bit easier, quicker, safer or happier.

You see, customer needs remain relatively constant and change far slower than markets or technology, and I believe that a big part of understanding what customers want from your business is to take one step back from what they are buying to why they are buying it.

It’s only natural to be proud as punch of your products or a little smug about your particular technical capabilities. But most customers invariably don’t buy a product, technology, or a service, they buy a solution to a problem or a feeling. In my experience, most women who buy a new dress don’t actually need one, they primarily want to feel as confident as they possibly can for an upcoming event or key life moment (and yes, it’s the same for men by the way, in case you were wondering.)

Customers who buy a gift are focused on ensuring the gift looks thoughtful and well chosen. All the evenings we tap away on social media aren’t driven by technology, but by the core and eternal human need for connection, belonging and, dare I say, validation.

YOU BUY EXPERIENCES

When we buy a holiday, we are doing so hoping for a guarantee of relaxation or a promise of adrenaline, a good seat on the plane, a room with a view or an extraordinary culinary adventure. Yet, why is it that the travel industry rarely promises much more than a booking? And, as we’ll all recall from the wretched summer of 2022, even that wasn’t always guaranteed.

Once you know why they want to buy, knowing how your customers want to buy is the next piece of the jigsaw. They are likely to value consistency, one of my golden rules for customer service, because frankly it lets them get on with their lives and breeds trust and long-term advocacy for the service provider.

They’ll probably put a high price on convenience and will potentially pay more for the privilege, take away their guilt so they can enjoy more of what they love, or appeal to their hopes and values for society and the planet. And now, more than ever in recent memory, know that value remains the mother of all motivators across most generations, nations and income brackets. In short, what customers are buying isn’t necessarily what you’re selling.

Knowing your customers’ higher motivations, ensuring that everyone at every touchpoint in your business makes

decisions with these in mind and being honest when you’ve fallen short is, in my view, a sure-fire way to put the customer at the heart of all you do.

By the way, knowing your customers’ higher needs and motivations means getting better at anticipating what they might need in the future. This is clearly not unhelpful.

HOW IMPORTANT IS CONSISTENCY?

Whilst we’re here, there’s one more thing that customers are buying from you that isn’t always as high up the pecking order as it might be: a consistent level of service. In a world of seamless “phygital” customer experiences, it’s easy to dismiss the whole idea of customer service as a bit old fashioned. This, in my view, would be a major mistake.

The UK Customer Service Institute reports that complaints are at their highest since 2019 and are still snowballing. I know the pandemic hasn’t helped. Retailers and service companies have never had it so tough. Just delivering the basics hasn’t been easy and front-line workers across our high streets and public services have weathered some of the stiffest challenges in a generation. But if I hear one more pre-recorded message asking me to “please bear with us during these difficult times”, I may do something I’ll regret.

Even before the pandemic, serving customers consistently, on time and on budget had become harder. Game-changing efficiency from the online shopping giants means that most of us now have zero tolerance for digital inconvenience. Faced with the sheer scale and cost of the digital revolution, many companies have had to trim down or eradicate much of their human contact. “Self-serve retail” has its place when all you want is convenience and you know that a company’s systems are so joined up, you can transact without thinking. But, as we know, this isn’t always the case.

It’s the little things that wind consumers up. Having to contact a company multiple times for the same reason. Having to repeat the same information to multiple employees or through multiple channels. Being left on hold with some of the worst music known to man.

Some might say that in the rush to capitalise on online migration, some companies have lost sight of the customer and their core needs altogether. The truth is that human contact does cost more than a chatbot, but most people trust human contact more than they trust automated systems, particularly if things go wrong.

Customer centricity is something every CEO or business leader aspires to, but for many it remains elusive. Talking to your customers directly rather than through high-level surveys isn’t a bad start, but truly taking the time to explore their higher needs and doubling down on service is an exercise you won’t regret.

RECESSIONS: TOUGH TO NAVIGATE BUT A CHANCE FOR OPPORTUNITY?

In August, the Office for National Statistics (ONS) announced that UK GDP had dropped by 0.1% in the second quarter of 2022, meaning the UK is just one quarter of contracted growth away from falling into a recession. Many economists are predicting this will happen by the end of the year, but how concerned should businesses be about a potential recession? We investigate.

CAN RECESSIONS BE A GOOD THING?

Recessions are undoubtedly a difficult time for many. Generally typified as a period where consumer spending is lower, less spending means less capital for businesses, which often leads to job cuts as businesses try to balance the books.

For example, after the Great Recession in 2008, the quarterly UK unemployment rate hit 8.4% by the end of 2011, its highest level since 1995.

Hundreds of thousands of businesses also went under during the Covid-19 recession. According to the ONS, from the first quarter of 2020 to the third quarter of 2021, there were more than 650,000 business deaths in the UK.

However, the same recessionary period was also a time of business creation. HMRC data shows that nearly 726,000 new businesses were created in 2020, compared to 636,000 in 2019. Plus, more new businesses were created during March 2021 than in any other month since records began in 1989.

According to Bjorn Reynolds, the CEO of Safeguard Global, recessions are an opportunity for existing businesses to come up with new ideas too.

He comments: “The last few years have offered various opportunities to rethink how we as leaders approach our businesses. Not only in terms of how we manage our workforce, but also how we determine what other areas of our business we’re running on autopilot and how we manage them – are we still doing things because ‘this has always been done this way’, and is this an opportunity for

business leaders to re-examine the value of ‘how it's always been done’ and adjust to the shifts in business present today?

“THE LAST FEW YEARS HAVE OFFERED VARIOUS OPPORTUNITIES TO RE-THINK HOW WE AS LEADERS APPROACH OUR BUSINESSES. ”

Bjorn

“Recessions can also be viewed as a similar opportunity for leaders to ask these kinds of questions. Perhaps it’s an opportunity to consider if there are more efficient or smarter ways to meet the same goals with different resources – whether that’s people, budget, or technology. And reflecting if we are empowering our teams to approach the work in different (but just as productive) ways that accomplish their objectives.”

AN OPPORTUNITY FOR CHANGE Iain Seers, the CEO of RightSpend concurs that recessions are a chance for businesses to change their focus.

He says: “Recessions are never nice, but it sharpens the mind. It can force a brand to focus on what’s important and what's not. In terms of marketing, it is the one time that people get real, and they actually say ‘that's great, but is that going to increase our market share? Is that going to extend our brand's reach?’

“It's the one time when they look at every last detail. That's also when innovation comes into play. In the past, it is times like this that I've seen brands and agencies really change the status quo.

“If you think back to previous times, such as the 2008 recession, you saw a move to in-house agencies, a move that I think is where we saw some good efficiencies. Technology, and particularly data, now help with efficiency and innovation. For example, there is a lot more opportunity for central content creation and transcreation since 2008. We don't have to create something new every time, for every single campaign.”

According to Michael Richards, Managing Director at alan. agency: “Recessions are truly painful, but they are a recurring part of the economic cycle and can also kickstart change, disrupt the status quo, and sort the wheat from the chaff.”

He continues: “The advertising and agency space (where we operate) is an oversupplied market, so inefficient and badly managed agencies will fail first and fail fast when clients either pull back on spend or the market contracts. This is bad news for the poor performers, but the result will be that the survivors (and hopefully thrivers) will be lean, efficient and best-in-class and show a real passion

and hunger for creating standout work and spectacular client service.”

Like Michael, Maureen Corish, Managing Director of Pumpkin PR, acknowledges the negative consequences of recessions but focuses on their ability to create change.

She says: “The former boss of GE Jack Welch said, ‘never miss out on an opportunity like a good recession’ - GE itself being founded during the Great Depression. But the true answer is it depends.

“Recessions are devastating if you are facing job losses, rising costs and spiralling anxieties about your home. But they are an inevitable part of the economic cycle and, in the long run, can be a catalyst for change – from improved checks and balances in, say, the banking sector post-2008 to innovative new launches and forcing well-run businesses to rise to the top, even if that might mean leaner, more-efficient versions of their former selves.”

It’s not just the world’s biggest companies who have survived a recession or two either.

According to Michael Richards, who has survived a few recessions, focus is the key to survival.

He continues: “Managing fixed costs well, focusing on what you're best at, not chasing shiny things which are tangential and distracting, and being flexible while embracing the reality. It’s important to make hay when the sun shines, but it’s also important to keep a real focus on costs, processes and planning to make sure that you are in the strongest place possible to successfully navigate the next recession, which will inevitably come.”

But Maureen Corish has consistently noticed one key thing during recessions.

She comments: “As a very young child, I didn’t understand why people were so upset about a three-day week. I thought it was a nice holiday and didn’t realise they weren’t getting paid. I graduated into a recession and have worked through more than I care to remember. Each had a different complexion, but one consistent characteristic: the importance of good leadership.

Michael Richards

“I’ve seen the good, the bad and the ugly when it comes to leaders and now I’m at the helm of a business, I believe transparency is key. Be focused on costs, planning, process and clients, and be transparent with your team. A business is only as good as it’s people and keeping that sense of team through honesty, and transparency is fundamental.”

SURVIVING A RECESSION

Despite the opportunity to refine existing business practices, if we do enter a recession as many economists are predicting, many businesses will be fearful over whether they can survive a period of economic decline, especially so soon after Covid-19.

However, it’s important to remember that some of the world’s biggest companies were founded during a recession. This includes Microsoft, Airbnb, IBM, Sage and Poundland. US investment bank Morgan Stanley was even founded during the Great Depression, meaning they have not only survived what is arguably the worst-ever period of economic decline, but they’ve also managed to successfully navigate every recession since.

Bjorn Reynolds believes certain business models can thrive during recessions and points to his own company as an example of this.

“The truth is some businesses thrive in a recession because they’re in the business of helping other companies accomplish more with limited resources,” he says.

“

We started Safeguard Global in 2008, but what we were offering multinationals was a means to streamline their business and save on some of the functions that had historically required a lot of overhead to maintain - like processing global payroll. Outsourcing brought cost-savings for those companies, and it provided us with an opportunity to start and grow our business.”

“RECESSIONS ARE TRULY PAINFUL, BUT THEY ARE A RECURRING PART OF THE ECONOMIC CYCLE AND CAN ALSO KICK-START CHANGE, DISRUPT THE STATUS QUO, AND SORT THE WHEAT FROM THE CHAFF.”

THE KEY TO SURVIVAL?

So, if we do enter a recession like many economists are predicting, what is the best way to get through it?

According to Bjorn, getting through the recession relies on two things: “How much capital you have and how you’re managing it determines your success. While a lot of companies will reduce spending across the board and then look at ‘how do I withstand 12-24 months of depleted revenue?’, this approach results in some knee-jerk responses that may not best serve companies in the long term.

“Instead, you need to manage the leading indicators to understand the impact a recession, or impending recession, will have on your organisation and your plan for the year. This way you better understand what levers you can pull to incrementally make changes, allowing you to reserve where possible. This also helps avoid putting your organisation in a situation where you may need to make

dramatic cuts in your ability to fulfil your strategic goals.

“For us, we pared back on our growth targets and changed some of our internal project spend allocation. This allowed us to keep our cash reserves and our EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) healthy. It’s really about rethinking how you plan to move forward - again, what if you take advantage of some of the opportunities that a global workforce or emerging technologies will allow to drive greater efficiencies?

“For example, if you’re planning to hire new roles, really consider if you need them in your home country – or if that’s just how the role has always been done before because that’s where an office is located. Can your organisation hire skilled workers from the global talent pool while still paying a fair salary for employees in that country? If the answer is yes that seems like a win-win!”

For Maureen Corish, businesses must be laser-like on costs.

She continues: “Being lean doesn’t mean being substandard. Focus on the now but also on the future. Be considered but don’t vacillate. Your team needs a leader who explains what is happening now and the roadmap to navigate it but who can also paint a vision for the future.

Anyone can be a great leader when times are good, but your true mettle shines when times are tough.”

However, Iain Seers says it’s important to look at your business in a practical manner.

He comments: “I'm super positive, and I always say ‘thrive to survive’ through a recession. I would say to people, you can do these things: look at every last detail of your business, look at all areas of your expenditure, look for the innovation, look for things you can do differently, you could thrive at this time.

Maureen Corish

“BEING LEAN

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“I would say from a more practical viewpoint, it's time to look at your business. It's time to see what works and what doesn't. Marketing is one of the biggest indirect spends for most businesses, so it’s definitely time to look at ways to make that work harder for you.”

But even if we do fall into recession, Iain offers some positive words of wisdom to bear in mind.

“They define a recession as two consecutive quarters of negative economic growth. If your cup is half full, that’s only two consecutive quarters. It's not the end of the world and history has proved many come out of a recession stronger. So, I would say, the best thing people can do is stay positive. It's a fine line between being in a recession and then coming out of a recession, and marketing plays a key role in this.” 

HOW DO EMPLOYERS PROTECT THEIR TRANS AND GENDER-FLUID EMPLOYEES?

When Liz Truss was Minister for Women and Equalities, a year before she campaigned to become Prime Minister, one of her key initiatives was to ‘motivate employers to make improvements to workplace practices and culture’.

Her ambition was to push employers to do more to prevent sexual harassment at work, although she never actually brought forward any new legislation on this while in post.

Employers are already required by law to take reasonable steps to prevent harassment related to “protected characteristics” including sex, sexual orientation and gender reassignment. But as society continues to evolve, and understanding and acceptance of gender fluidity grows, so employment law and employers must adapt to keep pace.

David Ludlow Business Employement Partner

I first dealt with a case of then called “gender reassignment” in 2002 when the law required employees claiming discrimination to show they were undergoing a medical process. In 2010, the Equality Act extended protection to a person planning to undergo, undergoing or who had undergone a process to physiologically reassign their sex.

Now, there is much better recognition that non-binary and gender-fluid people, as opposed to individuals transitioning from one sex to another, need protection as well. Progress is positive but, as society’s definition of inclusivity broadens, employers are left with more to think about when it comes to protecting their employees and ensuring policies are as inclusive as they need to be.

What should employers do to ensure they are protecting all of their employees and complying with the law?

1. Ensure diversity, anti-discrimination and equal opportunities policies are up-to-date.

2. Familiarise employees with the different types of discrimination such as ‘harassment’, ‘direct’ and ‘indirect discrimination’ and ‘victimisation’.

3. Consult trans and gender-fluid employees when creating inclusivity policies.

4. Consider sensible toilet and washing facility arrangements.

5. Take effective action if problems arise.

Adding even more complexity are the often-competing rights of freedom of religion and belief and the risks of discriminating against those who invoke their right to refuse to serve/or provide services to someone based on their beliefs.

This is an ever-evolving landscape that businesses must stay on top of, ensuring inclusivity policies keep up with the speed of societal change.

To find out more, contact david.ludlow@moorebarlow.com

“THEY DEFINE A RECESSION AS TWO CONSECUTIVE QUARTERS OF NEGATIVE ECONOMIC GROWTH. IF YOUR CUP IS HALF FULL, THAT’S ONLY TWO CONSECUTIVE QUARTERS. IT’S NOT THE END OF THE WORLD AND HISTORY HAS PROVED MANY COME OUT OF A RECESSION STRONGER.”

Iain Seers

finding purpose: life after the c-suite

by geoff lawrence, managing director, vistage uk

As a former CEO or leader planning your exit, you’ve logged a lifetime of experiences and successes, challenges and opportunities. It’s no doubt that all of the pressures of being ‘chief decisionmaker’ have made you a better person and stronger leader. It’s helped sharpen your skills and deepen your wisdom.

The question now is: What will you do with all of that hard-won knowledge? Is it time to hang it up — or do you still feel pulled to stay in the game? Are you thinking about consulting? Volunteering? Or maybe taking time to smell the roses and spend more time with your loved ones?

If you’re in the position of being able to choose what you want to do, rather than what you need to do, the number of options available to you may be overwhelming. Begin by taking the necessary step to start planning your exit. Remember to take things slow, exiting a business takes time and

there’s plenty of ground to cover including finding a successor and communicating the news to clients, employees and suppliers. You ultimately want to feel confident that you’re leaving the business in the best possible position.

Deciding on your next steps is the really tricky part. Sometimes making the right choice for you will require a lot of selfreflection. Like many things in your working life, asking the right questions can make the right decision easier, and the next stage in your life more enjoyable. So don’t be afraid to mull over these questions to help to get to the answers you need:

• After working so hard for so many years, what do I want the next phase of my life to look like?

• What would give me a greater sense of meaning, purpose and fulfillment?

• What do I have to give back?

• How can I leverage my decades of experience, knowledge and acquired wisdom?

By seeking clarity on what’s really important, you have a chance to make your next journey your most fulfilling one yet— the capstone of your career or your personal legacy.

WWW.VISTAGE.CO.UK

top 32 companies formed during a recession

With the UK economy contracting in the second quarter of 2022 and many predicting it will shrink again by the end of the year, we decided to focus our latest Top 32 list on the top companies that were formed during a recession.

HOW HAVE THE TOP 32 BEEN CHOSEN?

We asked our readership to suggest companies that were founded during any previous recession and provide evidence of the company’s achievements since then.

However, if you feel there are others that deserve to be included on this list, please email editor@businessleader.co.uk and they will be included in the digital version on businessleader.co.uk.

This list is in no particular order.

Shantanu Narayen President & CEO Adobe

sports illustrated

ROSS LEVINSOHN

PUBLISHING

Launched at the tail-end of the Recession of 1953, Sports Illustrated is a US sports publication that was the first magazine with a circulation of over one million to win the National Magazine Award for General Excellence Twice.

Formerly a weekly print-only magazine, it has evolved over the years into an entire brand ecosystem extending into content and media, hospitality and tourism, betting, fashion and apparel, and live events. According to the latest reports from Comscore, The Sports Illustrated Media Group reached more than 92 million unique views in January 2022.

crcc asia

EDWARD PITCHER

EMPLOYMENT

CRCC Asia was founded during the Great Recession (the economic downturn from 2007 to 2009) to provide students with work experience programs in Asia, directly addressing the lack of available graduate jobs in the UK and the willingness of UK students and graduates to seek work experience abroad, particularly in the fastest-growing economies in Asia.

Many universities and institutions, such as The British Council, have leapt on CRCC’s offering and the company has facilitated over 10,000 work placements in Asia since they were founded.

adobe

SHANTANU NARAYEN TECHNOLOGY

Starting life in John Warnock’s garage, computer software giant Adobe was founded as Adobe Systems Incorporated one month after the US recession in the early 1980s came to an end. The company has since grown to become a household name in its industry. Its flagship products include Adobe Photoshop, Adobe Illustrator, and Adobe Reader, and they all helped the company to revenues of nearly $16bn a year. As of 2022, the company has more than 26,000 employees around the world.

the federation of small businesses

JULIE LILLEY

NOT-FOR-PROFIT

Set up in 1974, due to the impact of the mid1970s recessions and the Government deciding to levy National Insurance on the self-employed, the Federation of Small Businesses (FSB) started out as a trade union to protect the rights of self-employed workers. However, they later expanded to cover small business owners and added free legal advice, workplace pensions, late payment chasing and a range of other services to protect its members.

Julie Lilley Chief Executive

Fast forward to today and the FSB has 160,000 members that it protects as the UK looks to be entering another recessionary period.

The Federation of Small Businesses

general motors

MARY BARRA

MANUFACTURING

Founded during the Panic of 1907, a period which began with the New York Stock Exchange falling nearly 50% from its peak the previous year, General Motors is the largest automaker in the United States and previously, the world. With manufacturing facilities in eight countries and 157,000 employees worldwide, the automotive manufacturer famous for brands like Chevrolet, Buick, GMC and Cadillac generates more than £127bn in revenue per year.

essentialise workplace wellbeing

/ TECHNOLOGY/HEALTHCARE

Essentialise Workplace Wellbeing was launched at the start of the Covid-19 pandemic to bring data-driven wellbeing strategy and engaging, evidence-based training to an exciting but intangible industry. Based in Preston and operating across the UK, their clients include PwC, Anytime Fitness and ACC Liverpool, and they are now expanding with several new US-based clients. They have also recently developed a suite of VR training and inclusive experiences.

They are a Black, disabled-led success story, working to revolutionise the wellbeing industry and are on target to achieve 112% year-on-year revenue growth.

yuup

DOMINIC MILLS

TECHNOLOGY

Bristol-based Yuup is an online marketplace that helps individuals and enterprises create, promote and host experiences, and helps customers find original things to do and gift in their local community.

Since being founded in 2020 during the Covid-19 recession, Yuup has expanded to Bath and Birmingham, helped over 300 small independent businesses start or expand experience-based income streams, and enabled 32,000 local people to enjoy new experiences in their local communities.

pura

ABI & GUY FENNELL

RETAIL

Founded by parents Guy and Abi Fennell during the Covid-19 recession, Pura is an eco-friendly baby care business set up with a mission to create products that don’t cost the earth or cause it harm.

Its products include high-quality, eco-friendly baby wipes and nappies. Pura has also worked with the Woodland Trust, The Hygiene Bank and NappiCycle, which have helped the company to become one of the world’s first carbon-neutral baby brands with pending B Corp status.

Mary Barra

CEO

General Motors

Abi & Guy Fennell Founders Pura

Martin Woolley CEO

What’s Possible Group

what’s possible group

MARTIN WOOLLEY

MARKETING

What’s Possible Group formed during Covid-19 to offer diverse marketing solutions to dynamic growth brands navigating an altered market landscape. The group achieved record financial performance in 2021, growing EBITDA to £5.1m and delivering a 53% increase in gross profit of £18.8m.

Since its inception, the Group has also achieved an employee pride score of 8.13 out of 10 and was listed in Campaign’s Best Places to Work, and is currently on track to achieve the highly coveted B Corp Certification.

slack technologies

STEWART BUTTERFIELD

TECHNOLOGY

Slack Technologies was first founded as Tiny Speck in San Francisco during the Great Recession. However, after Tiny Speck’s first product, MMORPG game Glitch, was closed in November 2012, real-time collaboration app and platform Slack was launched, and the company has never looked back. Slack went public in 2019 and was acquired by Salesforce for $27.7bn in 2021. The company also has more than 169,000 customers and daily active users in more than 150 countries.

wilko

JEROME SAINT-MARC

RETAIL

Founded in Leicester at the height of the Great Depression (the worst financial crisis the world has ever seen), household essentials and homeware store Wilko has since become a staple of the British high street. By the start of WWII, Wilko had nine stores, and today, they have more than 400 across the UK. Selling over 200,000 products, more than 14,000 of which are Wilkobranded, the retail giant turned over £1.28bn in the most recent financial year and has more than 500,000 followers on Instagram.

cooper associates

SAMANTHA JACKSON

FINANCIAL SERVICES

Financial services business Cooper Associates Group was founded during the 2008 recession. Providing bespoke mortgage and protection advice at its launch, Cooper Associates has subsequently added wealth management and accountancy divisions, allowing it to provide a holistic and award-winning service to its clients.

The company has offices located throughout the South West, with further plans for expansion in 2023. With a fuss-free approach and no minimum asset requirements, Cooper Associates continues to go from strength to strength.

Stewart Butterfield Co-Founder & CEO Slack Technologies

synergy cloud

JEREMY HYAMS

TECHNOLOGY

Self-funded insurtech firm Synergy Cloud was launched during lockdown despite the founding teams never meeting. This SaaS claims management platform rewrites the way claims are processed and transforms existing antiquated methodologies, providing an end-to-end solution for all aspects of claims management.

Since going live in January 2021, Synergy has expanded its data and technology offering with the purchase of a majority stake in weather data provider WeatherNet, and struck up a partnership with the AA, who now uses Synergy to manage all household claims in-house.

petshop.co.uk

RETAIL

PetShop.co.uk is a direct-delivery, online-only pet food and supplies store. Started in 2010 after Founder Adam Taylor was made redundant during the 2008 recession, the business has enjoyed six successive years of 50% year-onyear growth, registering £20m in turnover over 2021.

Committing to a cloud-based supply chain from day one, with Oracle NetSuite coordinating supply and accommodating demand, PetShop was not caught out by the scramble for e-commerce or logistical solutions. This gave the business the confidence to treble staffing from 30 to 100, providing the manpower to capitalise on a captive audience.

poundland

TREVOR MASTERS

RETAIL

British variety store Poundland was founded in April 1990 with a starting capital of just £50,000 and an office in Sedgley, just before the UK went into recession. Known for selling most of its items for £1, which includes clearance items and proprietary brands, an estimated seven million customers shopped in Poundland every week in 2016. Earlier this year, they opened their biggest ever retail store, which is around three times the size of an average Poundland store.

Adam Taylor Co-Founder & CEO Petshop.co.uk

ADAM TAYLOR

Jeremy Hyams Executive Chair Synergy Cloud

groupon

KEDAR DESHPANDE

RETAIL

Groupon, the e-commerce marketplace that connects subscribers with local merchants, was launched in Chicago in the middle of the 2008 financial crisis. With the focus of the company being on group buying to save money, you could say that Groupon was the perfect idea for the economic backdrop of the time. Growing staff numbers from a few dozen to more than 350 in just a year and a half, Groupon’s IPO in 2011 was the biggest by an internet company since Google in 2004.

seventravel

ANGELEE RATHOR

TOURISM

Launched in January 2022, positive-impact luxury travel company SevenTravel was masterminded during the Covid-19 pandemic. Specialising in tailor-made milestone trips that expand travellers’ worlds through unique adventures and authentic experiences across the globe, SevenTravel has a bold vision to redefine travel for the better. They’re on a mission to be Net Zero by 2035 and have partnered with ecollective to make this happen in line with the agreed level by the Science-Based Target Initiative.

airbnb

BRIAN CHESKY

TECHNOLOGY

The global community of hosts and travellers, Airbnb, is an online marketplace for lodging. Primarily providing homestays for holidays and tourist activities. The company was founded in August 2008, at the height of the Great Recession, when Brian Chesky and Joe Gebbia had the idea of renting out an air mattress in their San Francisco living room.

Today, Airbnb, which is viewed as a competitive threat to the hotel industry, has more than 6,000 employees and generates revenues of just under $6bn a year.

jd sports

KATH SMITH

RETAIL

Starting out as a single shop in Bury during the early 1980s recession, sports-fashion retailer JD Sports is one of the biggest names in British retail today. A constituent of the FTSE 100, the fashion giant employs more than 35,000 people, generates more than £6bn a year in revenue and operates 951 stores around the world. The self-proclaimed “undisputed king of trainers”, JD Sports stocks a wealth of leading sporting goods brands.

Kedar Deshpande CEO Groupon

Brian Chesky Co-Founder & CEO Airbnb

Kath Smith Interim CEO JD Sports

Angelee Rathor Managing Director SevenTravel

revlon

DEBRA PERELMAN

COSMETICS

Founded in 1932 during the Great Depression, cosmetics company Revlon created the world’s first pigment-based red nail polish. Known as Cherries in the Snow, the popularity of this product allowed Revlon to greatly expand its product line and become the second-largest cosmetics producer in the US by 1945. Fast forward to today and Revlon products are sold in 150 countries around the world, and it generates revenues of just under $2.1bn a year.

whatsapp WILL CATHCART

TECHNOLOGY

Founded at the tail-end of the Great Recession in 2009, the freeware, cross-platform instant messaging service began life as a way to provide statuses for people in your address book. However, the transition to a messaging service began after users began to ping each other jokey statuses. Such was the extraordinary growth of the platform, it was acquired by Facebook for an estimated $19.3bn in 2014, and as of February 2020, WhatsApp has more than two billion users across the world.

Will Cathcart Head of WhatsApp

Mark Hoplamazian President & CEO

Hyatt Hotels Corporation

hyatt hotels corporation

MARK HOPLAMAZIAN

HOSPITALITY

US multinational hospitality company Hyatt was founded two months into the Recession of 1958, when entrepreneur Jay Pritzker purchased the first Hyatt House motel. Despite having to endure a slump in business activity and travel when starting out, Pritzker was able to open two more hotels before the decade was over. Today, the Hyatt hospitality empire consists of more than 1,100 hotels and all-inclusive properties, which are spread across 69 countries in six continents.

sage group STEVE HARE

TECHNOLOGY

Software specialist Sage was founded during the early 80s recession, with the aim of developing estimating and accounts software tailored to small businesses. Today, their simple and easy-to-use payroll, HR, and finance software is used by more than six million customers, with the company generating more than £1.8bn in revenue last year. The Newcastle-headquartered firm also has offices in 23 countries and employs nearly 12,000 people around the world.

morgan stanley

JAMES P. GORMAN

FINANCIAL SERVICES

Morgan Stanley was founded in 1935 after the Glass-Steagall Act required commercial and investment banking businesses to split into separate entities. Deciding to focus on the investment side of things, the company span off from J.P. Morgan & Co and managed to achieve a 24% market share in its first year of operation. One of the largest corporations in the US by total revenue, the financial services giant has offices in more than 41 countries and employs over 75,000 people across the globe.

microtalk

PAUL HAVEL

TECHNOLOGY

Founded just one month before the global economic downturn that devastated world financial markets in 2008, Microtalk is a unified communications company that thousands of business customers rely on for their voice and internet. Despite a challenging year in 2019, the company’s wholesale arm took off, allowing revenues to soar from £1.2m to £4m in just 12 months, with further growth on the horizon. The company has completed three acquisitions so far in 2022, which includes MetPlus Telecom, a business and consumer-focused brand.

graze

JOANNA ALLEN

FOOD & DRINK

When Graze was founded during the 2008 Great Recession, it started life as a subscription delivery service for healthy food and snacks. Offering over 200 snack combinations, Graze has since launched an online shop, expanded into thousands of retailers and even into the US. Graze featured on the Sunday Times Fast Track 100 in 2015 and was acquired by consumer goods giant Unilever in 2019, cementing its position as a global healthy snack powerhouse.

source pr

LOUIS HILL

PUBLIC RELATIONS

Source PR is an award-winning PR and social media agency. Founded in 2008, amid a turbulent economic landscape, the company provides high-quality consultancy advice and campaigns at a fraction of the price of larger agencies. Operated by experienced PR professionals, Source has grown consistently and boasts some of the highest client retention rates in the sector.

pets at home

LYSSA MCGOWAN

RETAIL

Anthony Preston opened his first pet supplies store in Chester in 1991 during the early 1990s recession. Eight years later and Pets at Home had acquired Petsmart UK along with its 140 stores, and in 2007, opened its 200th store in Barnstaple. Today, there are 457 Pets at Home stores in the UK, although the company also operates veterinary surgeries and grooming salons, which all contribute to revenues of more than £1.1bn a year.

redwood technologies group

SEAN & MARTIN TAYLOR

TECHNOLOGY

The Redwood Technologies Group delivers communications technology, software, and services to hundreds of the world’s largest organizations. Founded during the early 1990s recession by brothers Sean and Martin Taylor, by the end of the decade, the Group had deployed its own hardware and software on every inhabited continent.

In 2005, the founders took their technology to the cloud with the founding of Content Guru, and today both companies are renowned for providing cutting-edge cloud technology to power customer engagement for large enterprises across all major sectors.

walr

LEWIS REEVES

TECHNOLOGY

Founded by industry experts Lewis Reeves and Patrick Fraser, Walr was set up during the Covid-19 recession to offer researchers an unrivalled data creation platform - designed to be the only solution they’ll ever need.

In less than two years, the company has grown its employee numbers to 70 and successfully acquired research tech firm QuenchTec, allowing it to offer the research industry seamless data creation drawing on an audience of millions, accompanied by on-point data visualisation.

Lyssa McGowan CEO Pets At Home

teachers insurance and annuity association of america

THASUNDA BROWN DUCKETT

FINANCIAL SERVICES

Founded in 1918, the same year that the US experienced a brief recession post-World War I, the Teachers Insurance and Annuity Association of America was founded as a fully funded system of pensions for professions. Today, it is a leading financial services organisation in the academic, research, medical, cultural and governmental fields, serving more than five million active and retired employees. The Fortune 100 non-profit organisation manages combined assets of more than $1tn (£919m) in more than 50 countries.

Lisa Kerford Managing Director Aptus Utilities

aptus utilities

LISA KERFORD

CONSTRUCTION

Aptus Utilities delivers gas, water, electric, streetlighting and vehicle-charging infrastructure for developers nationwide. The company formed following the 2008 recession, to answer a critical need for a streamlined multi-utility solution that would expedite building processes for construction clients. The company has set an industry standard with its pioneering model and, with over 400 employees, six depots/offices and an enhanced portfolio of services, is strongly positioned to achieve its growth targets.

Thasunda Brown Duckett President & CEO Teachers Insurance and Annuity Association of America

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leader in focus

OFX UK AND EUROPE sarah webb

Sarah Webb has held executive roles at Barclays, Barclaycard, and American Express. Now, she is the President at OFX UK and Europe, where she is responsible for all commercial growth in the region. OFX is a foreign exchange and payments company headquartered in Sydney. We speak to Sarah about her experience as a woman in fintech, how she maintains a balance between work and rest, and how she’s overcome some of the biggest challenges in her career.

WHAT MOTIVATED YOU TO WORK IN FINTECH? DID YOU HAVE ANY ROLE MODELS GROWING UP THAT INSPIRED YOU?

I didn’t imagine myself being in payments for 20 years, but I’m very happy I have been. My first job was at American Express in my early 20s and then I worked from a temp position to a senior role over 10/12 years.

I was very lucky to have people that I worked with who were male and female role models. I knew very inspirational leaders whom I aspired to emulate throughout my career in how they grew the business, but also how they have a positive impact on the people around them.

HAVE THERE BEEN ANY BARRIERS YOU HAVE FACED AS A WOMAN IN THIS INDUSTRY?

Absolutely. Given how long I’ve been in the industry, it would be strange for me to say I haven’t. The world was a very different place 25 years ago. I think at that time there was maybe a conscious bias against women, but now you have more of an unconscious bias.

But it’s certainly getting better and a part of the reason why I joined OFX is how strong its gender diversity is – 60% of the Board and 50% of the

executive team are women. It’s the most diverse leadership team I’ve been in, and I believe that diversity generally leads to a more profitable business – I’ve certainly started to see that take shape over the past three and a half years.

I don’t feel like any unconscious bias is purposeful, or anyone is trying to hold you back. I think it’s part of a wider problem of getting pigeonholed into back-office strategic and product-oriented roles. There’s nothing wrong with these roles, but if you’re trying to get onto the next step of your career, it’s not great. In the past, women hadn’t always been seen in commercial leadership roles and the negotiation side of the business, but there is a shift taking place.

WHAT ARE THE CHARACTERISTICS YOU TRY TO CULTIVATE WITHIN YOUR LEADERSHIP?

I’ve learned to be much more open as a person and a lot more extroverted than I would be in my personal life. This is the only real way to build trust and get to know people in your team. You spend so much time at work that it’s important to get to know the people you work with and understand what makes them ‘tick’.

LEADER IN FOCUS

For me, when you’re a leader, it’s not about you, it’s about the team and the business. I am effectively there to serve and get the best out of the people around me, and that takes building trust and authenticity within your team.

I also think it’s important to be present, which sounds very basic, but I think you need to start at the basics. There’s nothing worse than someone who multitasks whilst speaking to you – one of my previous managers used to read his emails and answer them during my one-to-ones and it drove me crazy. They were a really good leader, but it was this one quality that undermined their entire leadership capability.

WHAT WOULD YOU LIKE TO LEAVE AS YOUR LEGACY? HAVE YOU THOUGHT ABOUT THIS MUCH?

Definitely. OFX isn’t particularly well known in the UK. We’re an Australian-headquartered money transfer business. We were essentially born on the northern shores of Sydney in a garage by two founders who decided to build the capability online and find out the latest exchange rates across different currency corridors. Providing this transparency proved to be very much in demand and the natural next step was to enable businesses and individuals to move money across borders. We have since processed £113bn in transfers.

I joined OFX over three and half years ago to lead the EMEA business and my goal was to take on the UK business and expand our footprint into Europe, where I am looking to grow the business five times in the next five years.

WOULD YOU DESCRIBE YOURSELF AS A LEADER WHO ENABLES OTHERS TO DO THEIR BEST WORK?

That’s certainly what I aspire to be as a leader. I think that a company’s success is driven by its people. From my perspective, it starts from that initial interview. I want to put the candidate at ease because I want to see them at their best.

But this isn’t something I’ve always done. In my early days as a leader, my manager advised me to throw in a few left-field questions, which does let you understand how the candidate thinks under pressure. But the downside is that you put them under unnatural pressure, and this isn’t the reality of the average working day. As a leader, I believe in creating an environment where people can thrive.

HOW DO YOU SET BOUNDARIES BETWEEN WORK AND REST?

It’s really about discipline and managing yourself, which is hard especially if you’re invested in your work and your career. You must be diligent with managing yourself and knowing when too much is too much. I’m someone who likes a good eight hours of sleep a night – I’m pretty disciplined about that. It’s also about the quality of time you have with your family and being able to pursue any personal interests you have.

It’s normal to have a bit of ‘creep’ and let things get a little bit too much – but in those instances, I always pull back and reset. I always try and rebalance my schedule at various stages to get more discipline and structure into my week. Sometimes you have too much work, but then it’s your choice to say you’ve got too

“FOR ME, WHEN YOU’RE A LEADER, IT’S NOT ABOUT YOU, IT’S ABOUT THE TEAM AND THE BUSINESS. I AM EFFECTIVELY THERE TO SERVE AND GET THE BEST OUT OF THE PEOPLE AROUND ME, AND THAT TAKES BUILDING TRUST AND AUTHENTICITY WITHIN YOUR TEAM.”

much and push back or reprioritise what needs doing right away and what can wait. Then, if there’s still too much, you have to bring in extra help.

IS THERE ANYTHING WITHIN YOUR OWN LEADERSHIP STYLE YOU THINK CAN BE IMPROVED?

As a leader, you’re always learning and the environment you’re operating in is always changing. This environment has changed significantly in the last two years because of the pandemic. You’ve got some people working from home and some in the office. This hybrid way of working has meant I’ve had to develop ways to connect with team members in a fashion that suits everyone.

You want to stay connected with your team for several reasons – you want to keep them motivated, inspired and connected to what the company’s purpose is. You also want to make sure they’re still developing and not disadvantaged from not physically being in the office. But it’s also just important to connect with your team so you know how they are really feeling.

Pre-pandemic, you would pick up things by being in the office. You would overhear conversations or pick up on any atmosphere. You could sit by someone’s desk or have a fiveminute conversation when you’re making coffee. Now, there are fewer natural ways of tapping into the organisation and that’s a challenge for leadership, including myself.

WHAT HAS BEEN THE BIGGEST CHALLENGE YOU’VE FACED IN YOUR CAREER?

We’ve all got our own pandemic story and the biggest challenge in my career to date was acquiring our e-money license in Ireland. Due to Brexit, it was important that we obtained a license to continue operating in Europe – we had a number of customers that we did not want to let down and we also have a huge growth agenda for growing the business on the continent. Under normal circumstances, this is a rigorous application process that takes effort from across the organisation and requires you to work closely with the regulator.

We were in the midst of the application when the pandemic happened, which made the job of setting up our Irish business and hiring a new team in Ireland as part of the e-money license application process, much more challenging. I was under an enormous amount of pressure because the scenario of not getting an approved license wasn’t an option. I still remember the exact date we secured the license – 16th December 2020 – and how this established a great platform for growing the business in Europe.

It’s great to be tested - I learned a lot about how to manage myself as a leader through times of enormous uncertainty.

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“THAT’S CERTAINLY WHAT I ASPIRE TO BE AS A LEADER. I THINK THAT A COMPANY’S SUCCESS IS DRIVEN BY ITS PEOPLE. FROM MY PERSPECTIVE, IT STARTS FROM THAT INITIAL INTERVIEW.”

deal room

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

PROPERTY

TLT’s corporate team has advised the owners and management of specialist property, security and maintenance provider Veritas Property Management on its sale to Synova Capital-backed, Orbis Protect. The acquisition will bring both companies together in the hope of achieving their shared long-term strategic vision of growth by developing their service offering and substantially increasing resources.

MANUFACTURING

Maker&Son, the British furniture brand founded by father and son duo, Alex Willcock and Felix Conran in 2018, completed the sale of the business to Manchester-founded business group, Inc & Co in a multi-million-pound deal. The fast-growing brand, which is part of a design dynasty, having been founded by the third generation of the Conran family, is responsible for making some of the world’s most sustainable luxury sofas and beds.

HEALTHCARE

TELUS Corporation recently announced the completion of the previously disclosed acquisition by way of a plan of arrangement of LifeWorks Inc. a provider of digital and in-person solutions that support the total wellbeing of individuals, for £1.5bn. TELUS Health is now positioned to support corporate clients across more than 160 countries, covering more than 50m lives and growing worldwide.

FEATURED DEAL

RETAIL

Asda has struck a deal with Co-op to purchase its petrol forecourt business in a deal worth up to £600m. The deal will see Asda acquire 129 petrol forecourts, which the Co-op says represents 5% of its total real estate. Asda will reportedly pay £438m in cash and take on responsibility for Co-op’s lease payments, which total about £162m, although the actual figure will be confirmed upon completion of the sale.

EDUCATION

Educational resources supplier Findel has acquired the trade and assets of online Scandinavian nursery décor, furniture and baby toys brand Scandibørn for an undisclosed sum. The Hyde-headquartered company will use its ownership of Scandibørn to further expand its early years offering, which is a key element of the company’s future growth plans.

TECHNOLOGY

Babble, the Cloud Comms, Contact, Cyber & Mobile technology business, has announced the acquisition of Salisburybased Berry Telecom Limited and Cavendish Communications Group Limited, based out of Newhaven. This takes Babble to 21 acquisitions since 2019, with nine in 2021 and six so far in 2022. This stellar record reaffirms Babble’s status as the UK’s most acquisitive technology company, as recognised by ICON Corporate Finance.

FINANCE

Isosceles Finance, the providers of FD, Commercial Accounting and HR services to rapidly growing and ambitious businesses, have announced they have joined the Dains’ Group of businesses. Dains is a firm of chartered accountants and business advisers specialising in advising growing and owner-managed businesses. They are backed by Horizon Capital, a private equity investor specialising in technology and service businesses.

Thinking

It’s a huge decision to sell your business – and only those who have built, grown and then sold companies know how it really feels. These entrepreneurs are also uniquely placed to offer straight-talking advice on the multiple challenges of a potentially life-changing transaction.

Step forward the Fellows network – a group of 200+ former clients of corporate finance advisor BCMS, who have all successfully sold companies with us. Here four BCMS Fellows share their top tips for other entrepreneurs considering their succession plans and exit strategies.

Marc Wileman sold his educational events business Sublime Science to a Private Equity investor. For Marc, the biggest challenge for a fast-growing business is about “balancing growing and running the business alongside the learning curve and everything that goes into a sale transaction”.

“There are so many moving parts and variables that can make things very stressful,” says Marc. “But focusing on what you can control is the best thing to lower that stress a little and give the best possible outcome. You need the right help and support to make it happen. This is why having the right advisor is so important.”

For Mike Bailey, who sold his precision engineering company with BCMS, early preparation is key. “We had a plan and a clean business structure and were well prepared, particularly for due diligence stages. Getting your business in order before you start makes the sale journey run more smoothly.”

While every business sale transaction has complexities, Mike looks back on that time as “the most exciting part of my business career. It was when I achieved my ultimate goal”.

Niche businesses often hold appeal for major acquirers, as Fiona Roberts discovered during the sale of her specialist life sciences business. “What surprised me was who was interested in us. We had meetings with some large well-known companies. This was very unexpected, and such a positive experience. For me, the fact that we had BCMS leading us through was paramount. It took away many stresses and strains and even made the business sale experience enjoyable!”

Darren Cairns – whose software and support services business Intrinsys sold to a listed Swedish buyer – is absolutely clear on his number one piece of advice: “Never think of selling your business yourself. You would never think of selling your house by ringing your friends and asking them if they wanted to buy it. So why do you think you can sell your own business?”

A good advisor will add value – and competition for your business – as Darren explains: “The fee to engage a corporate finance advisor like BCMS might discourage you initially, but it is insignificant compared to the extra value you will receive in selling your business with their input and expertise. You don’t know all the companies that might be interested. To get the best value you need a competitive process, and BCMS ensures this happens.”

Interviews: Niamh Carpenter

THE ART OF NEGOTIATION

WHEN SELLING YOUR BUSINESS

Most business owners will think about exiting at some point in their company’s life cycle, as it’s rare for a business to remain in the same hands for its whole journey. ‘How I can negotiate the best deal?’ and ‘when should I start to engage with advisers?’ are just two questions you may have if you are looking to sell your business. For this feature, we spoke to two seasoned dealmakers to give you an in-depth overview of everything you need to know about the subject.

Andrew Jeffs is a Partner of finnCap Cavendish, and he says that selling your business is a huge decision and the reasons for doing so can vary.

He explains: “As a business owner, you may choose to sell your company for a variety of reasons. It might be that retirement beckons, the value of the business has reached a high, you may feel it is time for a change in growth trajectory under new management, perhaps you desire to pursue other ventures, or that too much of your wealth is tied up in the one asset. Either way, selling a business, built with passion over many years, is an enormous decision.

“It’s a decision which, for the sake of the family finances, needs a successful conclusion, and it’s a decision that comes

beginner mistakes can prove costly. Knowing when to bring in help is crucial.”

TIMING IT RIGHT

Andrew also points out a crucial factor when it comes to maximising value: “Timing is everything when it comes to selling your business. Always remembering the maxim that the time to sell a business is when you don’t have to, you want to ensure the company is in the best position possible at the time of sale, and that the market conditions are right, to maximise its value. An M&A adviser will be skilled in making this assessment.”

Andrew says an adviser will also help by having the right connections to find the most suitable buyer, bringing market knowledge of what buyer’s value to craft the best investment case and knowing what makes or breaks a sale, potential weaknesses of the deal, and pitfalls to be avoided.

They can also negotiate with prospective buyers on your behalf, maintaining momentum to avoid ‘deal fatigue’. And the preparation of key data, relevant marketing materials and financial documentation is all produced and handled by your adviser, as well as conducting in-depth reviews of your business to determine areas which may need attention.

FINDING A FIT

Business leaders will be all too aware of what their product or service offers to customers, but knowing the full scope of the strategic value your business offers to a potential buyer can be a different thing altogether.

Andrew explains: “The adviser’s job is to be constantly building relationships with acquisitive companies, nurturing connections within different regions and sectors, so that when the right opportunity arises, they can draw up a shortlist of the best-fit buyers, ideally from different segments of the market, and set up a competitive bidding process.”

SHARING ENOUGH INFORMATION BUT NOT TOO MUCH

Knowing when to release information, and how much, is an art form. For example, it’s not unlikely that your potential buyers are also competitors but holding too much information about yourself back can inhibit value creation.

An adviser can be very specific in recommending the correct level of information you need to disclose, ensuring value is maintained while still protecting your intellectual property (IP) and business practices.

NEGOTIATE ON YOUR BEHALF

Finally, according to Andrew, your adviser will be instrumental in professionally negotiating the best terms for a deal, maximising value at every touchpoint.

He continues: “The appointment of an adviser adds weight and credibility to your investment case, showing you are serious about your ambitions. Frequently, you will be working with the purchaser for a period after the sale and you don’t want to sour this future relationship. It is often up to the adviser to take the hard line in negotiations.

“It’s inevitable that at certain points of the deal, your M&A adviser will be the most frequently called number on your phone. Invest in the relationship as you would any other – it takes time to get on the same wavelength – and don’t ignore the importance of chemistry.

“THE MOST IMPORTANT THING TO REMEMBER IS THAT IT IS VITAL YOU SEEK THE ADVICE OF AN EXPERIENCED CORPORATE FINANCE ADVISOR AS SOON AS YOU START TO EVEN CONSIDER SELLING YOUR BUSINESS.”

Rob Starr

“As selling a business is such a big decision, you don’t want to cut corners and jeopardise your years of hard work. Ensure you have the strongest and most experienced team on your side.”

Rob Starr is Head of M&A at Shaw & Co and a prolific mergers and acquisitions adviser. On how a business leader can best negotiate a deal, he says: “The most important thing to remember is that it is vital you seek the advice of an experienced corporate finance advisor as soon as you start to even

consider selling your business. It is likely you will leave a considerable amount of value on the table if you simply take the first offer without having sought proper advice. Like a good game of chess, you must be able to think four or five, or more moves ahead, which is where a qualified corporate finance advisor will prove to be invaluable.

“The reality is that each deal, business, and owner are different, and securing a sale can be complex and hard work. Understanding where your value lies and how this will fit your buyer’s value drivers - while putting in place the right process - are key to securing attractive offers and putting you in a strong negotiating position.

“When negotiating, the most important aspect is preparation; consider what is important/not so important for both you and your buyer, and make sure that you are never rushed into making key decisions. One final important aspect is the human emotions that are often attached around a business sale or acquisition. This is where the advisor can step in to provide a rational assessment of any offers or new proposals that have been made while focusing on the key terms that really matter to the deal.”

EVILLE & JONES ACQUIRES VORENTA

Eville & Jones has completed the acquisition of the Vorenta Group, which includes HallMark Vetirinary and Compliance Services, and Meat and Livestock Commercial Services Ltd (MLCSL).

Under the expanded Eville & Jones Group umbrella, the acquisition will accelerate E&J’s growth, and expand operations into Scotland.

Group CEO, Charles Hartwell said: “Vorenta and E&J are natural partners with shared ambitions and values. This merger accelerates our growth plans and enables us to expand our service offering to both our existing and future customers whilst providing opportunities for our people.”

David Peace, Chair of Vorenta said: “Both E&J and Vorenta have built a reputation for delivering quality, value-adding solutions to the food industry. As part of the expanded E&J group, we will be able to focus our resources to reach and serve more customers and give our people a wider spectrum of opportunity.”

YOUR M&A QUESTIONS ANSWERED

Following on from our ‘Selling your Business’ feature, we spoke to Simon Glover, Senior Manager at specialist M&A advisors BCMS, who answered some of the most frequently asked questions from our audience.

HOW CAN YOU NEGOTIATE THE BEST DEAL?

Many private company owners are experienced and highly successful entrepreneurs with a strong track record of negotiating business deals themselves. However, the act of selling a business brings with it very different rules of engagement, along with a set of financial, legal, and commercial issues which are typically very technical in nature. Navigating these complex areas requires specialist skills and experience, and a lack of familiarity and understanding can frequently cause a deal to fail.

Regarding deal price and terms, the best deal is usually negotiated by having multiple credible bidders for the business, allowing an adviser to create a competitive bidding environment which sees price maximised, and terms optimised. It then comes down to the skill, experience and judgement of the adviser, knowing how hard to push individual bidders without eroding goodwill.

WHEN SHOULD YOU ENGAGE WITH AN ADVISER?

In short, the earlier the better. It could be that a business owner is several years away from an eventual sale, but by engaging with a specialist M&A adviser as early as possible, a business owner has time to shape the business and position it ideally for a sale. Practical examples of this might include building out the senior management team, reducing dependence on one or several large accounts, focusing on building recurring revenue streams, or introducing service offerings which buyers value more highly. To this end, it can frequently be the case at BCMS that our first interaction with a business owner comes as many as two to three years before they press the button on the sale of their business.

HOW MUCH KNOWLEDGE SHOULD YOU HAVE GOING INTO THE DEAL?

Clearly, it’s an advantage to have a broad understanding of the mechanics of a company sale, but the key is really to know

when to lean on specialist practitioners for advice. In BCMS’ case, this will be specialist M&A advice, but it could also involve other Professional Services providers such as lawyers, accountants, or commercial due diligence practitioners. These specialists will apply their knowledge to matters which can sound daunting. For example, calculating normalised working capital, or introducing suitable limitations on seller liabilities from warranties as part of the Share Purchase Agreement.

It is important to also bear in mind that for a company sale to be completed, that company needs to continue trading strongly during the period of the sale exercise. We would much rather the owners of the business concentrate on this than involve themselves too much in deal minutiae.

WHAT IS IT LIKE TO GO THROUGH A DEAL?

This really depends upon how the sale exercise runs. If the company continues to trade strongly, and the adviser succeeds in attracting multiple bids from credible acquirers, then many of our clients comment on how much they enjoyed the sale exercise. However, if the deal hits obstacles – for example, a period of poor trading, or a company owner chooses to engage with a single, inexperienced acquirer –then it can be a very frustrating experience for all parties.

HOW CAN YOU BECOME BETTER AT NEGOTIATION?

As with any skill, this can be improved through training, coaching and practice, but it is important to remember that a business owner will need to remain focused on the trading performance of their business during the sale exercise for the sale to be completed. We would therefore strongly recommend that business owners talk to a specialist M&A advisor who can help them to maximise value by drawing upon their expertise in deal negotiation. And when talking to potential advisers, be sure to question them on their track record of selling businesses. Ideally, they will be able to point to former clients willing to recommend their services to

people & appointments

Business Leader gives a rundown of recent appointments and promotions across various sectors.

covid test provider innova appoints robert kasprzak as ceo

Innova Medical Group, the developer and distributor of rapid diagnostic tests and other medical devices, has announced the appointment of Robert A. Kasprzak as Chief Executive Officer. Kasprzak, a co-founder of Innova, has served as Chief Legal Officer since Innova’s inception in 2020 and played a pivotal role in driving commercial growth and expanding investments into disruptive healthcare technologies.

kelley fray takes over as chief operating officer at orbis education and care

Orbis Education and Care, a provider of specialist schools and homes that support children and adults with complex needs associated with autism, has appointed Kelley Fray as its new Chief Operating Officer. Previously Managing Director at the Salutem Group, Fray brings with her more than two decades of experience working in the care and SEND sector.

new chief operating officer appointed at shieldpay

Shieldpay, a company in secure digital payments, has announced the appointment of Sophie Condie as Chief Operating Officer. In her role, Sophie will continue her work transforming Shieldpay’s day-to-day operations, driving efficiencies and improving performance across the business as it continues to scale and grow.

ciff appoints new director

CIFF has appointed a new Director, Sofie Dolva, who assumes the responsibility of operating and developing the fair, brand collaborations and new areas of business. Launched in 1993, CIFF has grown to become a fixture on the international fashion calendar as the longest-running fashion trade event in Northern Europe.

restech firm walr promotes yaron brenman to chief information officer

Walr, the ResTech company behind the data creation platform, recently announced the appointment of Yaron Brenman as CIO. With more than 20 years in the insights industry, Yaron began his career at Confirmit (now Forsta), before moving into numerous leadership roles at other well-regarded research firms.

id-pal announces appointment of dpo to board of directors

ID-Pal, a global identity verification provider, has announced the appointment of Sinead McDonald, the company’s Data Protection Officer, to the Board of Directors. McDonald will play a critical part in ensuring ID-Pal sustains its reputation for providing businesses with a simple, secure and compliant way to verify the identity and address of customers in any jurisdiction or language.

BUYING, FUNDING & SELLING

We Make it Happen!

BUSINESS FUNDING - DEBT & EQUITY

If these uncertain times have presented an opportunity for organic growth and you need funding, our expertise spans debt, equity and everything in between.

Put simply, our advisory service builds funder confidence in you and your business. We present your growth strategy to the right funders, in the right way and negotiate the best terms for you, giving you the best chance of unlocking your growth potential. Here’s how we can fund your growth ambitions:

• Business acquisition financing

• Growth funding

• Management Buy-in & Management Buyout financing

BUYING A BUSINESS - ACCELERATE GROWTH

Whether it’s to become an owner, strengthen your market position or to expand your existing portfolio, our M&A experts help individuals and management teams to buy a business at the right price, on the right terms, and with the right funding in place. Here’s how we can help accelerate your growth:

• Acquisitions

• Management Buy-in (MBI) & Management Buyout (MBO)

• Business mergers

SELLING A BUSINESS - MAKE YOUR LIFE’S WORK COUNT

When it’s time to sell the business you’ve grown, our ‘sellside’ advisory services help owners sell to the right buyers, at the right price, and on the right terms whilst maximising and protecting the value you have created. Here’s how we can help you sell your business:

• Developing your business exit strategy

• Business valuations

• Business sales (Trade, Private Equity, MBO & EOT)

• Pre-sale tax planning advice

SUBSTANTIAL 8-FIGURE DEBT & EQUITY FUNDING FOR CATSCI

“Shaw & Co very effectively ran first our debt raise and then subsequently our equity deal – recognising and addressing our needs extremely competently throughout both processes. Our faith in Shaw & Co’s expertise to deliver these transactions to completion was vital as it allowed us to maintain focus on ensuring the performance of the business met the expectations of our shareholders and investors.” Dr Simon Tyler, Chief Commercial Officer at CatSci Ltd

helping you achieve your greatest

We succeed only when you do – whether raising finance, buying a business or selling one you have grown.

£26M TRADE SALE OF KEEP IT SIMPLE TO THE PANOPLY HOLDINGS PLC

“I would enthusiastically recommend Shaw & Co to anyone looking to go through the same process we just completed.” Grant Harris, Founder & CEO at Keep IT Simple Ltd

TO BUY OR NOT TO BUY?

A thriving property market stimulates a prosperous economy. Land in England and Wales is valued at approximately £8tn, and with over £260bn worth of property transacted annually, it is one of the largest property markets worldwide.

England’s housing market is currently in a state of flux. On the surface the outlook appears gloomy, with spiralling energy prices and paralyzing inflation, combined with the strong possibility of a recession. Despite cost-of-living pressures, will property prices keep rising? House prices have shot up, but there are initial indications of a slowdown.

Experts predict that the UK property market boom might have had its day. Prices may fall over the next two years as interest rates continue to rise and the cost-of-living crisis could cause a house price correction. Indeed, the Bank of England (BoE) has predicted that house price growth will slow down later this year, with mortgage providers likely to decrease or curb lending as the economy continues to struggle.

The base interest rate is increasing - most recently by 0.5 percentage points in early August, the greatest individual increase in almost three decades (27 years), as it tries to reduce rising inflation. The BoE is set to continue raising interest rates, which will, in turn, wield a cooling influence on the market if this feeds through to mortgage rates, which have already risen significantly in recent months.

The latest house price data published on GOV.UK by HM Land Registry for June 2022 shows that UK average house prices increased by 7.8% over the year to June 2022, down from 12.8% in May 2022. The average UK house price was £286,000 in June 2022, which is £20,000 higher than this time last year, according to the ONS UK House Price Index: June 2022.

MORTGAGE AFFORDABILITY:

With increases in house prices coinciding with the arrival of an intense cost-of-living crisis, it is inevitable that affordability is taking a hit. Mortgage affordability has fallen to its lowest level in 2022, as the number of lenders offering high loan-tovalue mortgages diminishes.

Data from the latest Mortgage Broker Tools Affordability Index reveals that the minimum average loan size offered by mortgage lenders fell to just over £136,000 in July, down from £150,000 in January.

However, the BoE revealed that mortgage approvals rose in July – a clear sign that future borrowing is going nowhere fast.

THE LATEST HOUSE PRICE DATA

PUBLISHED ON GOV.UK BY HM LAND REGISTRY FOR JUNE 2022 SHOWS THAT UK AVERAGE HOUSE

PRICES INCREASED BY 7.8% OVER THE YEAR TO JUNE 2022, DOWN FROM 12.8% IN MAY 2022.

Richard Donnell, Zoopla’s Executive Director, explains that mortgage rates are rising but the housing market is more resilient thanks to additional controls introduced following the global financial crisis.

“A high proportion of today’s mortgagees are on fixed-rate loans and stress-tested to see if they can afford a rate of up to 7%, meaning people should be able to continue to afford their mortgages,” he concludes.

However, increases in property prices have made it challenging for first-time buyers to get a foot on that tenuous initial rung of the property ladder. Additionally, Help to Buy, the condemned program that allowed home purchases with a deposit of just 5% and provided lenders with a Government guarantee on part of the borrowings, ends next year.

While the market is overheated, first-time buyers are most likely to feel the squeeze next year, according to Aneisha Beveridge, Head of Research at Hamptons International

She says: “They face a triple hit due to rising rents and inflation, which limits their ability to save, alongside higher mortgage rates which impact how much they can afford to borrow.”

First-time buyer numbers may well retreat to 2013/14 levels next year.

While acknowledging that double-digit inflation amid rising interest rates will limit how much buyers can afford to spend on their homes, Beveridge remains optimistic.

“54% of homeowners in England own their property outright and so won’t be directly affected by rising mortgage costs. And demand remains resilient in the wake of Covid, which should support prices in the coming months. Overall, we expect prices to remain flat across Great Britain in 2023,” she says.

IS BUY-TO-LET STILL WORTH IT?

Landlords can still earn substantial rental income, though possibly less than previous years. The Government have announced extensive rental reforms which include measures to encourage pet ownership and the scrapping of Section 21 evictions, which allow landlords to give notice to tenants at the end of a fixed term, or during a rolling periodic tenancy.

The Renters Reform Bill has been described as the ‘biggest shake-up in the private rented sector in 30 years’. With a new Prime Minister and a reshuffle at the Department of Levelling Up, Housing and Communities, some of the measures may be watered down to favour landlords.

The BoE has raised the base interest rate to 2.25%. This could lead to more expensive

mortgage repayments for landlords on a variable buy-to-let mortgage. Hamptons projects that the base rate is likely to peak at around 2.5% in early 2023, before dropping slightly towards the end of the year or early in 2024.

There is certainly a reduction in the supply of private rented stock as people exit the buy-to-let market. There are numerous reasons for this decline.

Landlords’ profits have taken a hit because of changes to tax laws. Property price growth has slowed in recent years, making buying-to-let riskier than it has been in the past. Changes to mortgage interest relief,

a surcharge on stamp duty for second homes and the continuing introduction of regulatory legislation have added extra complexities and cost. Whilst rates are increasing, prices are rising, and there certainly is plenty of uncertainty going forward. Despite this, property investment is still a viable long-term wealth generator and there is still much for landlords to capitalise on in the rental market.

Even so, the attraction of buy-to-let is waning due to a series of tax changes. Donnell explains that landlords continue to enter the market, but higher mortgage rates and more regulation and tax changes

“FIRST TIME BUYERS FACE A TRIPLE HIT DUE TO RISING RENTS AND INFLATION, WHICH LIMITS THEIR ABILITY TO SAVE, ALONGSIDE HIGHER MORTGAGE RATES WHICH IMPACT HOW MUCH THEY CAN AFFORD TO BORROW.”

Aneisha Beveridge

are leading a growing number to reevaluate their portfolios and look to sell homes that are expensive to run or offer large capital gains, using this money to pay down debt or re-invest in new homes.

“New landlords are focusing on higher yielding markets and investing for long-term rental growth rather than house price growth,” he adds.

Mortgage interest relief changes, the scrapping of the ‘wear and tear’ allowance and the introduction of the 3% stamp duty surcharge have hit landlords’ profits over the past few years.

THE IMPACT OF NEGATIVE GROWTH:

The cost-of-living crisis will unavoidably put a dampener on the growth seen in recent years. Average UK house prices fell by 0.1% between June and July, according to mortgage provider Halifax. While the drop is small - and annual house price inflation is still close to 12% - it is the first fall in a year and may mark an important change in direction.

Record petrol and energy prices, rising inflation and tax hikes point to most households having less disposable income to spend on buying houses. Despite Government support with energy costs, businesses risk bankruptcy because of escalating energy bills, pushing up unemployment, causing further economic hardship.

However, the property market remains buoyant for now; more homes were sold in the UK in July than in any other month in 2022, according to data from the Treasury. The prospect of increasing pressure on

households’ finances caused by the costof-living crisis is causing growth to fall. There was a dip in the number of mortgage approvals in June, which is a tentative sign of a slowdown, but this is yet to be reflected in house prices.

Timothy Douglas, Head of Policy and Campaigns, PropertyMark comments: “Homeowners should be aware that future changes are also being looked at for them, such as through targets for mortgage lenders as well as providers offering preferential rates for those with higher energy performance ratings.

He continues: “It’s inevitable that the costof-living crisis and wider economic climate will make buyers and sellers more cautious with their cash. However, our latest housing market report highlights a continued appetite from homeowners and a rise in properties coming to the market, so any impact of this is yet to be seen.”

Nevertheless, the impact may well be on its way. Firstly, as inflation continues to rise, goods and services are more expensive compared to a year ago. Secondly, strained budgets translate to fewer people being able to save enough to buy. Also, interest rates, at their highest level since 2008, are expected to continue to rise as the BoE tries to get a handle on soaring inflation. These factors combined, and prolonged, could eventually dent confidence in the housing market.

With borrowing becoming more expensive, the number of buyers could also fall. Likewise, if a recession hits, the number of sellers could drop as people become more

risk averse. After two remarkably buoyant years, sparked by the suspension of Stamp Duty and the lack of new build homes, a swell in the value of homes throughout the UK is likely to plateau. Like the saying goes, all good things must come to an end.

“A combination of the weaker economy, with output set to contract until early 2023 and household finances under particular pressure, and further rises in interest rates will bring a sharp slowdown in the housing market. There is enough momentum currently to keep house prices growing until late this year, but thereafter we expect falls with a cumulative 7% correction over two years as policy rates rise to 3%. Transactions are also likely to plummet in 2023-4”, says Andrew Burrell, Chief Property Economist, Capital Economics

The property industry has a substantial wish list when it comes to what new PM Liz Truss could do to enhance the sector. Interest rates are expected to continue to increase, pushing up the cost of borrowing for mortgage-holders, while the private rented sector also needs to be tackled. Though a monumental crash seems improbable, the squeeze on household finances because of the cost-of-living crisis means a slowdown in house price growth is likely as the year goes on.

“House price growth currently stands at 8.3% nationally as strong demand and healthy volumes of new sales agreed in the first half of the year continue to support the headline rate of growth. Our analysis suggests 4% is a key level for mortgage rates and we would expect to see zero annual house price growth if it increases above this level. If rates increase further, modest house price falls will be a likely consequence as demand is squeezed and we see more of a buyers’ market”, concludes Donnell. Meanwhile, cash buyers are likely to move to the front of the queue.

“In the coming year, we think many downsizers will opt to cash in on their properties and move to smaller, more energy-efficient homes,” adds Beveridge.

Experts anticipate that UK house prices will remain relatively solid. Still, the growth rate is forecast to slow as high interest rates, an anticipated recession and rising energy bills will stifle buyers’ appetite. Even with the best forecasts, most detailed predictions and knowledgeable expert hypotheses, there are a lot of ifs, buts and maybes. Only time will tell.

“IT’S INEVITABLE THAT THE COST-OF-LIVING CRISIS AND WIDER ECONOMIC CLIMATE WILL MAKE BUYERS AND SELLERS MORE CAUTIOUS WITH THEIR CASH.”

Timothy Douglas

EASY (BATHROOMS) DOES IT

In each edition of Business Leader magazine, we profile a UK business that is experiencing exponential growth in a feature called Fast Track. This time, we spoke to Easy Bathrooms, the one-stopshop for stylish and affordable bathroom products.

Founded in 2012, the Birstallheadquartered firm has grown its revenue by more than a third year-on-year (YoY), and increased sales by 34%. So far in 2022, Easy Bathrooms has opened 20 new stores, created 82 new roles, a 14% increase YoY, and made 65 internal promotions, with a view to promote more once their Easy Academy is fully launched.

LETTING THE SHOWROOMS DO THE TALKING

In the competitive world of bathroom retail, learning how to distinguish yourself from the competition is key to getting ahead and disrupting the more established names. In the case of Easy Bathrooms, choosing who to compete with has also been an important part of their success.

Lee Reed, Head of Marketing for Easy Bathrooms, comments: “We do sell online, but that is not our focus. We’re not here to compete with the online companies. We sell our products at a reasonable price, and you can come to a store and see, touch and feel them for yourself. And if someone wants that experience and a helping hand to go with it, we’re the place to go for that.”

Reed also says that most of their online sales are likely to have occurred because of someone coming into their stores. So, what is it about an Easy Bathroom store that patrons find so enticing?

Reed continues: “You’ve probably got 50 big displays in each store and within them you’ve got everything that you want in your bathroom, including a fully tiled floor from top to bottom. With more displays to see, our customers can come here for inspiration and look at our brochure to explore all the different choices available to them and see all the technical information that they’d want to know.

“Our store staff will also use the brochures as their Bible to help them best serve our customers, but our sales strategy relies on using that touch and feel to inspire. If you can get a customer to fall in love with the products, you don’t need to be pushy on sales. Our sales staff allow the customers to browse but remain on-hand to help with any technical elements, so customers can learn whether the products they’re after would work in their bathroom. That is where we win business.”

EQUIPPING FOR A MASS STORE ROLLOUT

Like many fast-growing companies, funding has also helped Easy Bathrooms on their growth journey. Reed says that Lloyds Bank lent them £30m in December in 2021 to assist with the store rollout and help the company move into a new warehouse.

“OUR STORE STAFF WILL ALSO USE THE BROCHURES AS THEIR BIBLE TO HELP THEM BEST SERVE OUR CUSTOMERS, BUT OUR SALES STRATEGY RELIES ON USING THAT TOUCH AND FEEL TO INSPIRE.”

Lee Reed

But what good are new stores without the staff to fill them? Reed says Easy Bathrooms is opening a couple of stores every 10 days, so how have they been able to recruit the people they need and retain their existing staff?

Reed says: “We offer competitive wages and we do listen to staff quite a lot. There isn’t much staff turnover at the head office as most of them enjoy the job and working for us. I would say that’s down to the environment, the culture and the enjoyment of the job.

“However, we are finding it difficult to find new staff because the talent pool is so small. I’m not sure if that’s a result of Brexit or anything else, but there seems to be a smaller pool of people. As hybrid working is still around, recruiting the people we need for the online side of the business is also more difficult because we’re now having to compete with companies in the South and elsewhere in the country.”

However, Easy Bathrooms plans to mitigate these ongoing recruitment difficulties by training the staff they need instead.

Reed continues: “We’re just launching our Easy Academy, where people within the company can progress and learn new skills, allowing them to go from a Sales Consultant to Assistant Manager, Showroom Manager and so on.

“Because we’re opening so many new stores and those manager positions are opening up, they will already know the business and be properly trained when a new store is fully up and running.”

KEEPING UP WITH THE GROWTH

Although growing fast might seem like a good dilemma for a business to have, it means more staff, more stores and more of everything else to deal with. According to Reed, it is keeping up with this fast growth that has proved the biggest challenge.

He comments: “The MD, Craig Waddington is the one that is really driving everything, to the extent that he’s out on the road looking for new sites at the same time he’s opening new stores and sitting with me to go through marketing, sales and work on new products. Because of Covid, we’ve

been restricted on new products, but we recently launched our 2022 brochures containing 836 new products, the largest amount we’ve ever added. Launching those is down to just me, Craig and the Purchasing Manager, so the difficulty really is trying to keep up.”

With in-store purchases forming the bulk of their business, when the pandemic forced Easy Bathrooms to shut their doors, they also experienced a drop in sales. Fortunately, however, their multi-faceted business model helped to keep them afloat.

“WHEN RETAIL OPENED AGAIN, WE ALSO HAD A BIGGER JUMP THAN WE NORMALLY WOULD HAVE, SO THIS HELPED US TO TAKE BACK A LOT OF THE SALES THAT WOULD HAVE BEEN LOST DURING THE PANDEMIC.”

Lee Reed

Reed continues: “We had to close all the stores for the first and third lockdowns. We were able to keep them open for a bit during the second lockdown but then had to close them again. We lost about £6m because of this, but we would have lost a lot more had it not been for the online side of the business.

“Although we’re not online heavy, we do sell via the website, and we also have a trade arm, Cubico Bathrooms, who started selling to resellers during this time. We have online retailers that sell our products as well. When retail opened again, we also had a bigger jump than we normally would have, so this helped us to take back a lot of the sales that would have been lost during the pandemic.”

FUTURE PLANS

Despite already opening 20 stores in 2022, Easy Bathrooms has no plans of stopping there. According to Reed, Managing Director Craig Waddington wants to open another 60 before thinking of slowing down, with the ambition to have an Easy Bathrooms store within a 15–20-minute drive of most major towns and cities in the UK.

But that’s not all. There’s the launch of their Easy Academy and Reed says they are planning to roll out their own fleet of vans too.

He concludes: “We’ve got about 30 vans now and another 50 on order, and these range from the smaller transits that do the last mile to the bigger ones that are going to start shuttling up and down the country. The reason we’re doing that is because it’s getting harder to rely on external couriers, so if we have our own fleet, we can reduce damages, remove the number of touch points and ultimately, improve the overall customer experience.”

Cont. 

WARGAMING: PREPARING YOUR BUSINESS FOR UNCERTAINTY

The pandemic had varied effects on society and the economy. Most businesses still embody changes introduced over the pandemic and now many workers demand flexible work as a minimum requirement. The pandemic also had the effect of putting a shock through our global economy, causing product shortages and supply chain issues. This coupled with the war in Ukraine and energy crisis has set the scene for a recession.

Economists have been keeping a watchful eye on the rate of inflation and for the first time in 40 years, it reached double-digits after hitting 10.1% in July. The unprecedented nature of the pandemic taught businesses how to adapt quickly in times of uncertainty. Now, the economic climate poses another obstacle for companies to navigate. But what if businesses could be prepared for any unprecedented event and strengthen their firm whilst doing so?

Wargaming is a series of exercises that immerses a business in an imitation risk environment to improve decision-making and prepare for uncertain times. It is an adaptation of the military’s simulating of moves and countermoves in a war.

WHY IS WARGAMING BENEFICIAL?

Wargaming helps develop crisis management in a business and enables you to predict and pre-empt challenges in times of uncertainty. It’s a preventative measure that’s beneficial because it helps businesses identify their weaknesses, understand the environment they exist in and make the necessary behaviour changes needed to survive.

Most importantly, wargaming is risk-free, meaning it can allow you to recognise threats and test out responses without them impacting your business negatively.

Mike Vincent, Senior Partner at Monitor Deloitte, feels part of what makes wargaming beneficial is its lack of risk. He says: “I was struck by the comment made by General Field Marshall Helmuth von Moltke that no plan survives the first collision with the enemy.

“There is a small and growing adoption of wargaming techniques in organisations to develop crisis management capabilities, such as dealing with civil emergencies (like Covid). The idea being that war games can be used to evaluate strategies, explore scenarios and reveal unexpected weaknesses in a "safe" environment.”

Wargaming can also have a long-lasting and meaningful impact on your business because it can influence the perceptions and behaviours of your team members. But that’s not all.

Sarah Ulrich, Wargaming Lead at PA Consulting, says: “Business wargaming gives participants the chance to see the potential consequences of their decisions. Through either role play or real resistant interactive external environments, business leaders can get inside the heads of their customers, patients, competitors, regulators, or media. This fresh perspective means they can get inside-out and outside-in points of view. This is particularly helpful in flushing out unknowns, unintended consequences, biases and false assumptions.

“Business wargaming is a game changer for leaders. Not only can it test the content of a decision or plan, but it can also transform behaviour. It gives business leaders a proven method to experience potential futures and have a practical and robust plan on how to move forward. It enables leaders to see what might be coming around the corner and how that might impact their business and employees.”

HOW CAN I INCORPORATE WARGAMING INTO MY BUSINESS?

Wargaming can be done at any point and doesn’t have to cost much money or time. Ultimately, it’s worth it because your business could end up avoiding a scenario that costs a lot more.

“Many major corporations conduct war games when they have important decisions to make because it’s cheaper to conduct a war game to help develop a winning strategy vs going out into the market with a strategy or plan that will fail,” says Arjan Singh, Managing Director at CorporateWarGames.com

When incorporating wargames into your business, it’s important to think about future scenarios both within your firm and the external world. It’s helpful to think about how consumers and the market might react and how your clients might be impacted by these events.

“Identify major upcoming events - whether it’s a product launch or a new competitor coming into the market and then conduct a game to help plan for these situations. Think about what you will do and how the competition will behave,” continues Singh. However, wargaming doesn’t have to only occur in the runup to a crisis. Because wargaming has the potential to identify weaknesses in a business, it can lead to you making improvements imminently. Also, because we have shifted from a sporadic scattering of major events to a ‘crisis as usual’ environment where businesses are dealing with the impact of the pandemic, Brexit, the war in Ukraine, an energy crisis and inflation, this requires a shift in preparedness where wargaming is always embedded into an organisation’s processes.

Chris Paton, Founder and Managing Director at Quirk Solutions, says it’s good for wargaming to always be implemented into a business but to not get too attached to a game plan. He comments: “I think that all organisations should be wargaming because it’s a way they can enhance their business. The mistake that some organisations make is presuming they have to wait until their game plan is extremely polished, but then become emotionally attached to it and when you show them it won’t necessarily work, they hate you for it.

“For example, in gaming for the recession, you can bring in clients and tell them what you think you might deliver and get a real reaction from them as part of that game. By doing this, you’re enhancing those social connections between you and the different parts of your business ecosystem.”

“THERE IS A SMALL AND GROWING ADOPTION OF WARGAMING TECHNIQUES IN ORGANISATIONS TO DEVELOP CRISIS MANAGEMENT CAPABILITIES, SUCH AS DEALING WITH CIVIL EMERGENCIES (LIKE COVID).”

Mike Vincent

HOW TO WARGAME IN PREPARATION FOR A RECESSION

It might seem difficult to know what scenarios to come up with when you devise your first wargaming exercises, but Paton says the most important thing is to build a set of scenarios to imagine and questions to ask yourself about what you would do if it did happen.

Paton provides an example: “If you were going to lose a client because they’ve shut down due to the recession, you should be asking yourselves: “What would we do if this happened?” and “What could we do to pre-empt this?” These discussions can draw out ideas of how you can approach challenges.”

When wargaming for a recession, it’s essential to anticipate the actions of rivals in your industry. Recessions are largely negative, but they have the power to weed out weak businesses, lessening competition and refining the number of firms in one sector. Wargaming allows you to effectively compete with other companies during a period of crisis and ensures you aren’t one of the businesses getting weeded out.

Vincent says: “To be successful, companies need to consider the responses of others, as well as their own actions. Corporate wargaming simulates the exchanges between key players in the market, thus allowing companies to systematically plot how rivals will react. War gaming is centred on three elements: the company plans and execution, competitor plans and actions, and the “uncontrollables”

“Wargaming won’t help you predict whether a recession will happen, but it can help you test whether it’s better to decrease prices, simplify the product portfolio, or restructure the supply chain in a recessionary period in the face of the actions and reactions of your competitors (and other ecosystem partners).”

It’s important to be specific in the scenarios you create and consider the absolute best- and worst-case scenarios. Ulrich feels running specific resilience wargaming exercises can make your business ‘downturn proof’.

She says: “Business leaders can use business wargaming to prepare for an upcoming downturn by testing their

downturn readiness contingency plans against a set of differing scenarios, ranging, for example, from downturn scenario A (good conditions) to B (reasonable worst case) and C (extreme worst case). This enables leaders to run a downturn readiness testing programme powered by wargaming for each impacted area, so the team is prepared no matter what might happen.

“Wargaming can also provide major downturn support for any key decisions a business has on the horizon, such as a new acquisition, new talent strategy, new product launch or a major digital transformation. Leaders can run a business war game on a specific decision challenge to help make a more informed and confident decision.

“BUSINESS LEADERS CAN USE BUSINESS WARGAMING TO PREPARE FOR AN UPCOMING DOWNTURN BY TESTING THEIR DOWNTURN READINESS CONTINGENCY PLANS AGAINST A SET OF DIFFERING SCENARIOS.”

Sarah Ulrich

“In a downturn, resilience wargaming - running specific resilience wargaming exercises focused on key possible downturn scenarios – can help leaders ensure their plans are “downturn proof”. It shows which areas of the business the downturn would impact most and means leaders can prepare their business and teams ahead of time.”

Arjan Singh

Singh highlights the importance of war gaming scenarios that seem unlikely. He says: “Think about multiple recession scenarios - worst case, best case and in between - and develop your company’s and your competition’s strategy for each of those. This will help you prepare for the worst and best cases.

“For example, in 2017 one scenario we played out for the travel industry was what would you do if demand decreases 90-95%? We saw this in 2020 with the Covid pandemic. There was a lot of pushback that would never happen, but once companies started building a response, they realised it was a very dire situation and had to drastically change their strategy to compete.”

John Horn, Professor of Practice in Economics at Olin Business School, Washington University in St. Louis feels it’s necessary to consider government actions when wargaming for a recession. He says: “You can also simulate government responses to the recession (e.g., expanded spending or looser monetary policy) and see how that affects the choices of you and your competitors and partners. War games will provide the opportunity to understand which of the strategies you might take has a better chance of maintaining the performance of your business in the face of the external challenges and others’ actions.”

Government actions have every part to play in a business’s response to an economic crisis. For example, the government could introduce fiscal policies aimed at increasing household spending or provide energy and financial support to firms. All these factors would impact your business, clients or customers in a crisis and should be incorporated into your war games.

Wargaming is effective for a myriad of reasons. It allows you to identify your business’s weaknesses and strengths, consider best and worst-case scenarios in a crisis and make meaningful changes in your business – all without the risk of damaging your company. As we go further into a time of economic downturn, it now becomes crucial to equip your business with the tools to withstand anything in the face of an economic warzone. Wargaming can help you to do that.

KWASI KWARTENG ANNOUNCES FIRST MINI BUDGET, ESTIMATED TO COST THE TREASURY £37BN

New Chancellor Kwasi Kwarteng has delivered his first mini xbudget, announcing a variety of tax-cutting measures that will cost the Treasury around £37bn in 2023-24.

The measures announced by the new Chancellor included:

• Scrapping the proposed rise in corporation tax from 19% to 25%.

• Stamp duty will also be cut, so no stamp duty will be paid on the first £250,000 of a property, and for first-time buyers, the threshold will be £425,000.

• The National Insurance rise, which began in April, will be reversed in November.

• The top rate of income tax (45% for earnings over £150,000) will also be scrapped. From April next year, the basic rate will also be reduced to 19%.

• The cap on banker’s bonuses will also be lifted

• Tax reliefs for venture capital trusts

• From April next year, the amount companies can raise through Seed Enterprise Investment Schemes will rise from £150,000 to £250,000, and the annual investor limit will be doubled to £200,000. The gross asset limit will rise to £350,000, and the age limit extended from two to three years.

• Plans to create up to 40 new ‘investment zones’ in England,

• The IR35 reform will be repealed from April next year.

“THINK ABOUT MULTIPLE RECESSION SCENARIOSWORST CASE, BEST CASE AND IN BETWEEN - AND DEVELOP YOUR COMPANY’S AND YOUR COMPETITION’S STRATEGY FOR EACH OF THOSE.”

Chris Paton is a former Royal Marines Lieutenant Colonel and Founder of Quirk Solutions, a consultancy that supports businesses to improve their culture, performance and effectiveness. With over 18 years in the military and 10 years helping businesses, Chris shares his top leadership characteristics, the power of wargaming in preparation for catastrophe, and why listening with fascination is a crucial leadership skill.

A CONVERSATION WITH chris paton: why military wargaming prepares your business for uncertainty

CAN YOU TELL US A BIT ABOUT YOUR PATH TO FOUNDING AND BECOMING THE MD OF QUIRK SOLUTIONS – WHAT DOES THAT JOURNEY LOOK LIKE?

It was mostly accidental! I was working with the Royal Marines and hadn’t really anticipated leaving if I’m honest. My friend asked my opinion on a Harvard Business Review (HBR) article and in a bit of a rant, I wrote a response. He really liked it and sent it to HBR, and it was published. This raised a degree of interest in some of the things I thought about and believed in.

Simultaneously, one of my good friends contacted me and told me about a start-up they had invested in but didn’t have a strategy for. They offered me equal equity if I produced the business strategy for it and acted as the operations lead for running the business. But then three days before I was due to leave the Royal Marines, one of the individuals ran off with everyone’s money, but most importantly everyone’s time.

I had slaved away for two years to produce this business plan and then suddenly, I had no money to pay my mortgage. So instead, I approached businesses that had asked me to do talks and contacted me off the back of the HBR article and asked them if they would be interested in me carrying out consultancy. Fortunately, they said yes. I then worked like hell to get to where I am now, so in a way it was a good thing that failure happened because consultancy was the best thing for me and the way I like to live my life. Even though it was traumatic at the time, I often regard it as one of the best things to have happened to me.

WHAT WAS YOUR EXPERIENCE IN THE MILITARY LIKE?

It was incredible. I did 18 years in the military and across that time there were conflicts all over the world. I found myself in a lot of different conflict zones, such as Afghanistan and the Balkans, and in a lot of different roles. I went from doing specialist work with two other people to running the plans for 6,500 people in Helmand Province.

I learned a lot about myself, different styles of leadership, and how to dial up and dial down my approach so that when the opportunity presents itself, you give your team as much latitude as possible. If I’m

Listen to the interview here

trying to pull together a strategy for getting over 10,000 people out of Afghanistan and 20,000 shipping containers worth of equipment over a two-year time frame, I can’t be on top of every decision. Pushing that authority down is really important. But if you’re hiding in a bush in the middle of a conflict, the decisionmaking is a lot more immediate. I had to work with different people, different languages, different cultures, and people from different nationalities. Drawing out a diverse set of skills from a variety of people is what I really enjoyed.

WHAT WOULD YOU SAY IS THE MOST IMPORTANT CHARACTERISTIC OF A GREAT LEADER?

Empathy is key for me. Having a genuine connection with all of the team and trying to help team members perform at their very best is important. My view is to bring very great people into the organisation and then get out of their way. If someone is struggling with something emotionally, procedurally, or with a process, whatever it is, a great leader should wonder how they can enable that person to succeed.

Patience and tolerance are also very important in any leadership role. People are always going to get things wrong but rarely do people deliberately try and sabotage something. They’ve genuinely made what they felt was the best decision at the time with the information they had available to them.

Anyone that makes a mistake feels it deeply, especially if it was their own mistake. As a leader, you don’t need to come down on them hard because they’re already feeling it. What a leader needs to do is help pick them back up and learn from the mistake because they’re already beating themselves up about it. Listening with fascination is also important. Listening to what people are saying, and what they aren’t saying, is important. You pick up on the nuances in what people are saying. We live in a complex world and the only way you solve complex problems is with an engaged and reliable team and using the diversity of thinking within that team.

AS A LEADER, IS IT IMPORTANT TO ADMIT AND ACKNOWLEDGE THAT YOUR TEAM MIGHT KNOW MORE THAN YOU?

Absolutely, that vulnerability and authenticity are key to success. As leaders, you don’t know everything about everything. Fortunately, that façade that is starting to drop. If you turned to me ten years ago and told me I had to get 11,000 people out of Afghanistan, it would be utterly insane for me to turn around and say: “Yes, of course, I know exactly how to do that.”

So, being authentic and asking the rest of your team how to do something is really important. That authenticity and vulnerability don’t just create better ideas, but it creates better outcomes because people see that you’re willing to share something of yourself and share the fact that you need their support, and that creates a stronger bond.

I think it’s important to understand that you might need to dial up and dial down your leadership according to the situation. If there is something unexpected like a pandemic, or a massive disrupter comes into the market, at this point leaders should start to take a grip and manage more directly. It would be unfair to ask team members what to do. So, I don’t think leaders should be afraid to micromanage but just be on the detail about when to do this.

BUSINESS LEADERS ACROSS THE NATION ARE PREPARING FOR A RECESSION, DEALING WITH DISRUPTED SUPPLY CHAINS, AND RECOVERING FROM THE PANDEMIC. WHAT ADVICE WOULD YOU GIVE TO BUSINESSES ABOUT NAVIGATING AND PREPARING FOR THESE ISSUES?

I think uncertainty and volatility are two of the most difficult things for organisations to deal with. People feel uncomfortable when they don’t know what’s going to happen in the future and this can impact how much people enjoy being at work too. Gaming is one of the easiest ways for a business to approach uncertainty.

This technique essentially creates a safe space for people to contribute and try to work out what might happen in the future. The best way to start is to imagine a scenario with different potential outcomes. For example, if you were going to lose a client because they’ve shut down due to the recession, you should be asking yourselves: “What would we do if this happened?” and “What could we do to pre-empt this?” These discussions can draw out ideas of how you can approach challenges.

EVEN IF A BUSINESSPERSON SPENDS A LONG TIME GAMING AND IT DOESN’T WORK OUT, IS IT STILL TIME WELL SPENT?

There’s a misconception that gaming takes a lot of time and effort. It doesn’t have to. We recently did some work for a very large German automotive manufacturer and took them through the launch of a new vehicle. We ran through a game for only two hours and yet they ended up with around 34 actions

they needed to take to improve their result. These don’t have to be long, drawn-out events that take place over a number of days with people coming in from all over the world.

BECAUSE SOCIETY IS ALWAYS CHANGING, IS GAMING A GOOD THING FOR BUSINESSES TO IMPLEMENT INTO THEIR BUSINESS ANYWAY?

Yes – I’m a big fan of gaming. Gaming has always been a powerful aspect of the military. You religiously game a plan every time you step out of the door to make sure it’s fit for purpose. I think that all organisations should be doing this because it’s a way they can enhance their business.

The mistake that some organisations make is presuming they have to wait until their game plan is extremely polished, but then they become emotionally attached to it. So, when you show them it won’t necessarily work, they hate you for it.

For example, in gaming for the recession, you can bring in clients and tell them what you think you might deliver and get a real reaction from them as part of that game. By doing this, you’re enhancing those social connections between you and the different parts of your business ecosystem.

THIS IS PROACTIVE ACCOUNTANCY & FOR PEOPLE LIKE ME IT’S A GODSEND.

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THE RISE OF SOFT POWER: CAN SPORTSWASHING EVER BE A GOOD THING?

Sports events have typically been seen as a unique opportunity for the world to unite, but a string of recent sporting events involving countries with less than stellar human rights records have seen the line between commercial sense and morality come into question. In this three-part series, we explore the implications of sportswashing, whether it can ever be a positive thing and whether morality should stay well away from sports.

“GIVE THEM BREAD AND CIRCUSES AND THEY WILL NEVER REVOLT.”

Juvenal, Satire X

Coined by Roman poet Juvenal, these words paint a story – the ability of Roman emperors to divert the attention of the public from government wrongdoings with festivals, gladiator games and chariot races. Essentially, those in power can appease and distract the masses by satisfying their basic needs for food and entertainment – bread and circuses.

2022 has seen a number of significant sporting events. The winter Olympics in Beijing, boxing matches and LIV GOLF tournament in Saudi Arabia, and the FIFA World Cup in Qatar have all drawn the attention of audiences from across the globe. However, this attention hasn’t always been positive and just as Juvenal did, audiences have

criticised the governments of these countries for distracting the public from their wrongdoings through an act dubbed ‘sportswashing’.

Sportswashing is a term used to describe countries utilising sports events to polish their reputation, leverage power in the global community and legitimise wrongdoings – giving awareness to possible human rights violations including the repression of press, genocide and laws that restrict women and LGBTQ people.

But when did sport become so politicised? Why are nation-states using sporting events as a means of yielding global power and can it ever be a good thing?

SPORTS AS A FORM OF SOFT POWER

The phrase ‘soft power’ was created by Joseph Nye in 1990 to describe the non-coercive power of states to appear attractive to the rest of the world. If the currency of hard power is military and payment, the currency of soft power is culture, food, events and foreign policy.

Soft power is a way for countries to exercise influence politically and globally, without needing to declare war. For this reason, sports events have been an opportunity for countries with a negative reputation to win the world over. Although the benefits of soft power may seem abstract, they shouldn’t be denied –having soft power can lead to more global influence and diplomacy.

meritocracy, and camaraderie in sports tap into a human desire to win and be a part of a community.

Because people feel so passionately about sport, this has often meant that despite finding out about the accusations thrown at hosting countries, fans and sports people turn a blind eye to these potential crimes – further legitimising the regime of a country. As a result, sports fans and spectators open themselves up to being mobilised to further a political agenda.

Paul Michael Brannagan, Co-author of Qatar and the 2022 FIFA World Cup: Politics, Controversy, Change feels that states are attracted to sports events partly for the audience they receive. He told Business Leader: “If soft power is about attracting, then you first need to grab the attention of those you seek to attract.

the first time. As the then FIFA President Sepp Blatter announced Qatar as the tournament’s hosts, the world watched and considered what this unprecedented event would look like.

Qatar’s heat posed concerns about whether the event could be held during its usual summertime period, and the event was later moved to November. Two months later, Blatter resigned from his position as FIFA President and executives at the international governing body for football were exposed for having a long history of corruption, whereby executives accepted bribes for votes.

The fall of FIFA triggered an awareness amongst fans, and spectators became conscious of corruption in sport and the geopolitical significance of these events.

Sports and politics are inextricably linked as a result. FIFA Presidents rub shoulders with dictators and Saudi governments own entire golf associations. This often leads to a sporting environment riddled with corruption and bribery.

THE PSYCHOLOGY OF SPORT Sport is universal and emotional. Beyond language and culture, sporting events are understood by everyone and the

“If you look at the types of options that are available to state leaders, there are very few things in the world that can compete with either a FIFA World Cup or Olympic Games when it comes to grabbing the attention of global audiences. We regularly see television audiences for these events in the billions. So, in essence, for their hosts, sports events can be seen as unrivalled ‘stages’ through which states can introduce and educate global audiences on what they’re all about.”

THE FALL OF FIFA – THE BEGINNING OF THE END

On December the 2nd 2010, FIFA announced the 2022 World Cup would be hosted in the Middle East for

Giorgio Cafiero, the CEO of Gulf State Analytics, a Washington DC-based geopolitical risk consultancy, describes the importance of winning this bid for Qatar. He said: “This 2022 World Cup will be extremely important to Doha’s ability to use the sports sector to connect with and appeal to diverse audiences in regions all over the world.

“It is important to note that for many years the Qataris have been using this sector to build up their national brand, yet this year’s historic event provides a truly unique opportunity for the Gulf Arab country to boost its soft power influence across the globe.

“THIS 2022 WORLD CUP WILL BE EXTREMELY IMPORTANT TO DOHA’S ABILITY TO USE THE SPORTS SECTOR TO CONNECT WITH AND APPEAL TO DIVERSE AUDIENCES IN REGIONS ALL OVER THE WORLD.”

Giorgio Cafiero

“If the 2022 World Cup is a success, Doha will be in a stronger position to establish their country as even more of a special hub for global sports in the years and decades to come.”

CAN SPORTSWASHING BE A GOOD THING?

Despite the obvious negative aspects of sportswashing, some argue it has a positive element. It brings the crimes of an autocratic country to the forefront of global awareness and allows an opportunity for pressure to be put on repressive governments to correct themselves.

Brannagan says: “Sports events become tools through which global media networks and non-governmental organisations can pressure states into change, change that is oriented towards social good. While sports events offer states and cities opportunities, so too do they offer various non-states actors the opportunity to ‘shame’ states into domestic action and change.”

For example, Qatar has been shrouded in controversy since its bid win, particularly because more than 6,500 migrant workers have died during construction associated with the World Cup since 2010, exposing the lack of human and workers’ rights in the country.

Qatar also criminalises same-sex marriage and has been accused of restricting freedom of speech and allowing forced labour – all adding to the criticism of it as a host. With the World Cup approaching in November, many spectators feel conflicted about whether they should watch the games, feeling it tacitly consents to Qatar’s misconducts.

Earlier this year, China was also accused of sportswashing when the country hosted the winter Olympics in Beijing. This is because the Chinese government has been accused of attempting to take over Hong Kong and Taiwan, and for the suppression of Uyghur Muslims.

But the most recent country to be accused of trying to distract the public from its wrongdoings is Saudi Arabia. The Public Investment Fund of Saudi Arabia has funded Formula 1, Newcastle United, and notably the LIV GOLF tour.

LIV GOLF is the Saudi-backed rival to the popular PGA Tour. In the PGA Tour, a non-profit organisation, no payment

is guaranteed for players, so golfers predominantly make money through playing well and obtaining corporate sponsorships. Unlike the PGA Tour, LIV GOLF offers players seven-figure deals, making it difficult for them to resist even when they know about atrocities committed by the Saudi government.

Through the tour gaining popularity, Saudi Arabia’s own track record of potential human rights violations has come into the light. A 2021 report by the US State Department on human rights in Saudi Arabia claims that violations in the country consist of forced disappearances, torture by government agents, torture for nonviolent offenses, and discrimination of women. Famously, the country has been accused of the assassination of dissident journalist Jamal Khashoggi in 2018.

WHO SHOULD THE RESPONSIBILITY BE PUT ON?

But who is responsible for pressuring autocratic governments? Should fans be the ones to boycott events, or should it be sports people themselves?

Professional golfers including Phil Mickelson, Dustin Johnson, Lee Westwood, Sergio Garcia and Ian Poulter have all been criticised for joining the LIV GOLF tournament. However, they have justified their transition as being a positive career move.

When asked about Saudi atrocities, Johnson famously exclaimed: “I’m not a politician. I play golf,” and said: “We know they killed Khashoggi and have a horrible record on human rights.” But the tour was a “once-in-a-lifetime opportunity.”

But many fans have criticised the players, who already have success and wealth, for joining the league and turning a blind eye to Saudi’s potential misconducts.

The recent Anthony Joshua fight in Saudi Arabia also brought into question the moral legitimacy of sports people accepting Saudi money. The fighters and promoters were scrutinised over accepting Saudi Arabia’s bid to host the fight and Joshua was urged by spectators to speak out about human rights abuses in the region.

Eddie Hearn, Joshua’s promoter, defended Saudi Arabia, saying that a large amount of funding can elevate a sport. He said: “Our government could learn a lot from the way Saudi Arabia has invested in the grassroots of boxing there. It’s up over 300% participation in amateur boxing clubs since the Ruiz fight.

“SPORTS EVENTS BECOME TOOLS THROUGH WHICH GLOBAL MEDIA NETWORKS AND NON-GOVERNMENTAL ORGANISATIONS CAN PRESSURE STATES INTO CHANGE, CHANGE THAT IS ORIENTED TOWARDS SOCIAL GOOD.”

Paul Michael Brannagan

“There’s a genuine interest in the sport. These people have delivered it before. These are people that are passionate about boxing.”

Despite some spectators criticising the LIV GOLF players for accepting Saudi money in spite of being wealthy and successful, some have also defended the ability of someone like Joshua to accept a large paycheck.

“OUR GOVERNMENT COULD LEARN

A LOT FROM THE WAY SAUDI ARABIA HAS INVESTED IN THE GRASSROOTS OF BOXING THERE. IT’S UP OVER 300% PARTICIPATION IN AMATEUR BOXING CLUBS SINCE THE RUIZ FIGHT.”

He says: “Boxing is the hardest sport of them all and many fighters only get in the ring once or twice a year and the money they have to spend on their training camps can reach astronomical sums. You can understand why promoters like Eddie Hearn are taking advantage of the vast sums of money available in places like Saudi Arabia, so he can reward his clients more handsomely.

“Joshua, Fury and the elite boxers aside, it’s a tough sport to make money in for the rank and file so the opportunity to get on an undercard in Saudi Arabia for a boxer will hold a lot of weight. Many are from underprivileged backgrounds too and if you look at a risk, reward scenario boxing is unique as it’s the only sport you can legally get killed in. Are we going to begrudge them fighting in a countrywhich yes is unpalatable in many ways and in an ideal world we’d all change parts of if we could - where they can have their lives transformed?”

them to demand their own government puts pressure on countries committing wrongdoing. This has been particularly apparent in the run-up to the upcoming World Cup where many spectators have decided to boycott the event.

Alternatively, the responsibility should be put on governments, rather than sports people or fans, to put pressure on regimes. This is because sporting events are unique in their ability to attract viewers from across the globe and achieve unparalleled viewership, and so they have subsequently become politicised as a form of soft power. From this perspective, it is up to those who know the most about foreign policy to manage relations with tyrannical governments and confront them effectively.

Oli Ballard, Editor-in-Chief at Business Leader, believes there is an argument unique to boxing that makes Saudi Arabia particularly appealing.

Fans also feel a sense of responsibility to challenge these countries once they find out what they have been accused of, which impacts the way they engage with that country and may cause

In the next article about sportswashing, we will explore whether morality should be left out of sports altogether, if society has become overly moralistic and theorise when morality became a part of the industry, triggered by Colin Kaepernick ‘taking the knee’.

Eddie Hearn

NEW-AGE HR POLICIES: HELP OR HOAX?

In the world of work, employee expectations regularly change, often in accordance with wider changes in society. As a result of these new expectations, employers are reevaluating the way their business operates, introducing new HR policies to help satisfy their existing staff and appeal to prospective talent. In this article, we take a closer look at several new-age HR policies to determine whether they are a help or hoax.

LADBIBLE LEADING THE WAY?

Following the overruling of Roe V Wade, which has led to several US states restricting or banning abortion procedures, digital publisher LADbible Group introduced a policy that entitled their employees to 10 days off paid for an abortion. Applying to all full-time and part-time permanent and

healthcare in relation to an abortion if the procedures are banned or restricted in the place the employee lives.

Many will agree that this seems an excellent way to support staff. However, Donna Gibb, Director of HR Consultancy at WorkNest highlights several considerations for employers before introducing such a policy in their own workplace.

She says: “Each company must carefully consider enhanced rights to time off with pay before introducing them, ensuring they align with the organisation’s broader HR policies, values and culture.

“In designing policies, organisations must consider the different communities within their workforce. Overcoming prejudice and changing entrenched negative attitudes can be difficult; implementing carefully considered employment policies and practices will be critical to promoting an inclusive and diverse workforce which, in turn, will enhance employer brand and aid in the recruitment and retention of

Richard Freke, the Managing Director of Bristol-based HR and recruitment consultancy H2R Selection, also offers a

“I think all companies could offer this to employees, but there are several things to consider. Firstly, is this just for women, or can men take time off to attend appointments or deal with this on an emotional level?

Not all abortions are people’s choices, some can be linked to medical reasons, which is something

else to be aware of. Another thought is what about time off for men/women if they have a miscarriage. This should be part of the policy too.”

THE RISK OF DISCRIMINATION

Freke also believes that all HR policies should be inclusive to all employees, easy to understand and accessible. However, if a policy supports people going through an abortion, is there a risk of it being considered discriminatory against groups of people that are against these procedures, such as Jehovah’s Witnesses?

“Yes, I think there is,” says Freke. “Any HR policy needs to be backed up in the wider company culture. So, if a company wants to add a specific policy for abortion, it should openly acknowledge that members of staff may have differing views and all views are allowed. It should also acknowledge that each person should be respected for their personal values. So, it comes down to company culture being inclusive and respectful of individual views, rather than a single HR policy.”

In the event that an employer is accused of discrimination, this could lead to a tribunal and the payout of damages to those who’ve been discriminated against. According to Citizens Advice, employers could end up paying out up to £49,300 in compensation for injuries to people’s feelings.

So, how can employers avoid potentially discriminating against staff members when introducing new HR policies?

Gibb explains: “When introducing or reviewing HR policies, it is essential for an organisation to assess what already exists and to benchmark against other businesses in their sector or industry and location. Consult with staff directly, or through an established consultative forum - steering groups or working parties will ensure views can be shared. Training and

coaching managers will aid in effectively implementing the new policy, ensuring they have the skills, capability and confidence to manage their teams in line with HR policies. The introduction of a continuous review programme will ensure that policies are complementary, flexible, practical, enforceable and remain relevant.”

HYBRID WORK IN HR POLICIES

Another HR policy that is increasingly prominent in workplaces is hybrid working, a trend that has become more popular since Covid-19 forced many people to work from home.

According to data from the Office for National Statistics (ONS), more than 8 in 10 who had to work from home during the coronavirus pandemic said they planned to hybrid work when asked about their future plans in February 2022. Since then, the proportion of workers hybrid working has risen from 13% to 24% in May 2022. After guidance to work from home was lifted in Spring 2022, 38% of working adults also reported having worked from home at some point over the last seven days.

Employers have also responded to the increased demand for hybrid working.

According to research from CIPD, the professional body for HR experts, before the pandemic, 65% of employers either did not offer regular working from home at all or offered it to 10% or less of their workforce. However, they are expecting this figure to fall to 37% as more employers embrace hybrid working policies. In a separate survey of more than 1,000 senior decision makers, the CIPD also found that 78% of employers now allow hybrid working through either a formal or informal arrangement.

With this increased demand, Gibb says employers should prioritise implementing a flexible/hybrid policy or bringing an existing one up-to-date.

She continues: “With many people not returning to being office-based full time following lockdowns, it’s important for employers to put in writing what the hybrid working policy is, so everyone is clear. There is a lot to cover in them too, from managing remote workers’ employee performance to updating your fuel and expenses clauses that will be outdated if they only relate to business travel from the office.”

to ensuring a positive work environment, supporting employee experience, influencing positive workplace relationships and driving performance. During these times, when employers compete for the right talent in the market, HR policies can make a critical difference to an employer’s brand.”

IS ANYTHING MISSING?

There are, however, important steps to take when introducing or changing such a policy according to Gibbs.

She explains: “It will be imperative any new or change in policy is clearly communicated to ensure understanding across the business; managers and employees must fully understand their responsibilities and company expectations. Training and support to line managers will be critical in bringing HR policies to life, ensuring managers have a clear understanding and capability.

“HR policies must be tailored to an organisation’s purpose, vision and values. They should understand the communities the organisation operates in and align with the workplace culture. This will be critical

Employers clearly have lots to think about when it comes to their HR policies, but are there any areas that are not receiving enough attention?

Freke says the menopause is the key policy many companies are currently adding to HR policies. However, most firms still do not have one. A YouGov poll of 1,025 HR professionals published in March 2022 found that 72% of firms did not have a menopause policy.

This figure is especially concerning for employers considering the number of women that are thinking about quitting due to lack of support with menopausal symptoms.

“WHEN INTRODUCING OR REVIEWING HR POLICIES, IT IS ESSENTIAL FOR AN ORGANISATION TO ASSESS WHAT ALREADY EXISTS AND TO BENCHMARK AGAINST OTHER BUSINESSES IN THEIR SECTOR OR INDUSTRY AND LOCATION.”

Donna Gibb

Hannah Copeland

Hannah Copeland, HR Business Partner at WorkNest, encourages employers to bring a menopause policy into the workplace and offers some advice when doing so.

She says: “While it’s not a legal requirement, it is best practice. It’s estimated that 10% of women have left the workplace due to menopause. Employers must recognise that women over the age of 50 are the fastest-growing segment of

the workforce and most will go through the menopause transition during their working lives. The menopause can have a dramatic effect on an employee’s

“Policies should include information on what menopause is, encourage staff to be open about it and clearly highlight available support. To support women at work, consider what reasonable adjustments can be put in place for those affected by the menopause and ensure risk assessments consider the needs of those experiencing the menopause. Openly discuss it too to help reduce stigma. You must also ensure your policy and support extends to individuals that identify as transmasculine or non-binary but are still susceptible to menopause symptoms.”

HR policies can be a great way for employers to improve working conditions for staff and if you look after them, chances are they’ll look after you. Successful implementation of such policies will require considerable due diligence on the employer’s part, but it will be worth it in the long run for those who choose to do so. 

The UK Net Employment Outlook has fallen to +25% for Q4, a decline of eight percentage points on Q3, and a decrease of six percentage points yearon-year according to the latest ManpowerGroup Employment Outlook Survey (MEOS).

The survey is based on responses from 2,030 UK employers and asks if they intend to hire additional workers, maintain current headcount, or reduce the size of their workforce in the coming quarter (October to December 2022).

The Banking, Finance, Insurance, and Real Estate sector leads the pack with a Net Employment Outlook of +40%, a decline of nine percentage points on Q3 and nine percentage points year on year.

Employers in London report an Outlook of +28% for Q4, a decline of 13 percentage points since last quarter. In Q1, the data showed that London was the region least likely for employers to ask employees to work in the office full-time.

uk hiring outlook remains strong but drops slightly going into final quarter of the year

THE RISE OF RANSOMWARE: PROTECTING INDUSTRIAL ORGANISATIONS FROM THE THREAT

BY ANTHONY ATKINS – SALES DIRECTOR, UK & AFRICA

In the last few years, ransomware evolved from a threat that very few CEOs had heard of, into one that dominates their cybersecurity fears, with business leaders now understanding that once the malware gets on to their systems, they have almost no control over what will happen to their data next.

Ransomware occurs when an attacker gains access to an organisation’s network and then encrypts its data and holds it hostage until a ransom demand is paid. The threat has been behind some of the most prolific attacks in history and each has demonstrated its destructive and damaging effects.

When it comes to targets, criminals typically look for businesses that cannot function without access to their data and systems as this provides a greater chance of pay out, but it also places industrial organisations at the top of the target list. Industrial organisations are businesses that control critical services like gas, water, energy and manufacturing, and when ransomware enters their domains, it can impact the supply of essential services into society.

In the last few months, attacks on industrial organisations in Europe have soared, with Oiltanking Deutschland, Encevo Group and Gestore dei Servizi Energetici all getting hit. Furthermore, recent research from Dragos revealed that in Q2 2022, 37 percent of industrial ransomware attack victims were based in Europe, while only 29 percent were located in the US.

One of the reasons for this increase is because criminals understand industrial networks are highly insecure, yet they typically hold and process highly

critical data and systems. One of the biggest security challenges is around the modernisation of plants where Operational Technology (OT) is now being routinely connected to IT equipment without security, which means it can be accessed by almost anyone on the internet.

In response to this increased threat, industrial organisations must prioritise their defences against ransomware now. But, where do they begin?

1. Increase OT network visibility Having consistent visibility is the most important foundation of industrial cybersecurity because you can’t protect what you can’t see. Ensuring security teams have visibility across all connected devices, spanning across IT, OT, IoT and mobile devices, so they can be secured is critical.

2. Patch what can be patched, segment what can’t be patched Attackers frequently exploit unpatched vulnerabilities to infect systems with ransomware, so maintaining a regular patch management strategy is vital. Keep IT systems up to date with patches and apply patches to OT, where possible. If a mission critical system is too old to be patched, segment it from other areas of the network to prevent criminals gaining access through the device and travelling across the network. Also use network segmentation to isolate an industrial organisation’s ‘crown jewels’ from other less critical areas of the network – this is critical in preventing lateral movement attacks.

3. Boost incident response capabilities

Understanding weaknesses and taking steps to minimise them through incident response training is a critical element in ransomware defences. Carry out tabletop and fire drill exercises where responses to incidents are rehearsed so organisations have a clear understanding of what they stand to lose, and how they can minimise their losses.

4. Nurture a security conscious culture Encouraging a strong security culture, where staff are trained on the dangers of threats and attacker techniques is vital. Given that the majority of ransomware attacks occur as a result of poor security hygiene or staff accidentally clicking on malicious links, it is important to train staff to be on guard for suspicious emails and to rely on them as your first line of defence.

The threat posed by ransomware continues to grow and European industrial organisations are facing more attacks today than ever before. Prioritising defences is therefore essential.

However, by focusing on patching, visibility, segmentation and employee awareness, industrial organisations can improve their resilience against ransomware.

RETAILERS: SUSTAINABILITY IS NOT A CHALLENGE, IT’S AN OPPORTUNITY

The environment is becoming an increasingly important issue to consumers. So, what are retailers doing to address sustainability? Not that much, according to consumers. Research conducted on Descartes’ behalf revealed that only 38% of consumers thought that most retailers were doing a good job using sustainable delivery practices.

Despite this low rating, we wanted to know if consumers are really making purchasing decisions based upon the sustainable practices of retailers and will the importance of sustainability on buyer behaviour increase in the future? Does sustainability importance change by age group and country? Is sustainability a challenge or opportunity for retailers?

Chris Jones, EVP, Descartes analyses the results of the survey of 8,013 consumers across 9 countries in Europe, the US and Canada and addresses these important questions.

PURCHASING DECISION-MAKING

Helping the environment is an important issue for consumers, but do their purchasing decisions support that sentiment? While only 39% of respondents regularly or always make purchasing decisions based upon the company’s or product’s environmental impact, only 11% never made a purchasing decision based upon sustainability criteria.

Consumer Environment Sentiment Survey

HOW DOES YOUR AGE GROUP COMPARE?

Feel retailers do a good job using sustainable delivery practices

Make purchasing decisions based upon product or company environmental impact

Interested in having retailers recommend the most environmentally friendly delivery option

The two product categories causing consumers to think twice about the environmental impact of online buying and home delivery were grocery (35%) and clothing and footwear (35%). Consumers cited grocery (52%) and clothing & footwear (45%) as the top product categories for store pickup, as opposed to home delivery, if they thought it would help the environment. The implicit challenge for ecommerce pure-plays in those markets is that they need to show that their home delivery approach is as environmentally friendly, if not more, than “bricks and mortar” competitors to maintain or grow their business.

However, consumers also indicated that they would buy more grocery (40%) and clothing & footwear (39%) from companies that demonstrated their supply chains were more sustainable than the competition. These numbers point to a significant opportunity to take market share based upon demonstrated supply chain sustainability efforts.

In addition, half (50%) of consumer respondents were quite/very interested in an environmentally-friendly delivery method, with three of the top four answers involving combining orders or having the seller recommend the most sustainable delivery option.

Eco-friendly delivery options present a significant opportunity for retailers as they are more cost-effective than traditional

deliveries because they drive delivery density. They combine increased customer satisfaction related to sustainability efforts with a positive impact to the bottom line.

CONVENIENCE AND SUSTAINABILITY

Companies that do a good job getting themselves branded as environmentally friendly stand a better chance of achieving more profitable home delivery operations. A significant number of consumers (54%) indicated they would be willing to accept longer lead times from an environmentally friendly company. Longer lead times provide more options to improve the efficiency of the delivery which almost always results in a lower carbon footprint. In addition, 20% of respondents indicated they would pay more for a delivery from an environmentally friendly company. This may not sound like a lot, but the experience of companies that offer premium delivery pricing says that it represents millions in incremental revenue.

Consumers still rate convenience (40%) more important than environmental impact (23%). However, there was a large group (37%) that said that convenience and environmental impact were equal. Looking at it in aggregate, 60% of consumers have environmental importance expectations for their home deliveries. The “Holy Grail” will be online retailers that can provide convenience and show greater sustainability.

Consumers are looking for not only more eco-friendly home delivery strategies, they also plan to raise their expectations for the vehicles that deliver them. While expectations are much lower today (20% quite/very important) about retailers or their delivery agents employing electric vehicles, the number rises dramatically in 5 years to 53% (quite/very important). In addition, whatever method retailers use to get their deliveries to homes, consumers will be expecting to understand the carbon footprint of their delivery. Today this expectation is somewhat nascent at 23% quite/very important, but rises to 51% quite/ very important in 5 years.

CONCLUSION

Consumers don’t believe that most retailers are doing a good job with their home delivery sustainability efforts. Given that ecommerce purchases and sustainability expectations are going to rise, now is the time for retailers and to improve home delivery and sustainability efforts. Rather than viewing sustainability as just another challenge, retailers need to see it for the huge opportunity that sustainability presents. Consumers intend to buy more from retailers that are perceived to be more sustainable. Many are willing to take delivery options that are more economic to the retailer and even pay more for the product or delivery service.

The biggest challenge to retailers is to abandon the monolithic approaches to home delivery that don’t take advantage of opportunities with more sustainable delivery. Consumers will expect sustainable delivery options – and this will grow over time. Not all consumers will care, but the numbers that do can represent a great opportunity to improve bottom line performance and do the right thing for the environment.

ipos on the horizon

With interest rates and inflation on the rise, and instability across global markets, there have been fewer IPOs coming to market in 2022. Global IPO issuance reached five-year lows in the second quarter of 2022, totalling $36.6bn, which is more than 70% down on Q2 2021 issuance. However, with 72 IPOs raising $14.1bn, China accounted for 38% of the total issuance. The UAE also saw significant activity, accounting for 24% of second quarter issuance. There were just six IPOs on the London Stock Exchange, raising £192m, although £150m of this total came via the IPO of Financials Acquisition Corp. We profile four upcoming IPOs that could happen by the end of 2022.

lead real estate co.

Back in August of this year, Lead Real Estate Co., a Tokyobased developer of luxury residential properties, filed with the U.S. Securities and Exchange Commission for an initial public offering of two million shares at an expected price of $12 to $15 apiece. Although no date has been confirmed for the IPO, at the $13.50 midpoint of that range, Lead said it expects net proceeds of about $22.4m, or roughly $26.2m if the underwriters exercise their option to buy an additional 300,000 ADSs.

ant group

Originally called Alipay, Ant Group is a Chinese online payment group founded by Jack Ma, the Founder of Alibaba. Previously set to list in November 2020 in what would have been the largest IPO launch in history with a market cap of $315bn, regulatory issues meant the IPO was suspended by the Shanghai Stock Exchange. Earlier this year news emerged that the online payment giant was undergoing restructuring to make it more compliant with Chinese regulation, although a date for an IPO is yet to be confirmed.

chime

US fintech firm Chime was founded in 2012 and offers a range of banking services through its banking partners. Having initially aimed for an IPO in March of this year, which would have had a valuation of between $35bn and $45bn, Chime announced before the IPO date that it was to be put on hold as they shifted focus to developing new services. To date, there is nothing confirmed about the IPO, but some speculators are expecting an announcement once markets settle down.

porsche

Founded in 1931, German luxury car maker Porsche announced that it would be assessing the feasibility of an IPO earlier this year. Although no date has been confirmed, this could be one of the biggest IPOs in German stock market history, with analysts estimating a market cap of around €90bn if it goes public. Some speculators have said that it could take place in the last quarter of the year, but the war in Ukraine and current market uncertainty might mean the listing is delayed.

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