Global Business Insight Volume 5, Issue 3

GLOBAL B U S I N E S S

MARCH EDITION NO. 05 • 2018

•

F I N A N C E

B U S I N E S S

•

S E C T O R

N E W S

I N S I G H T

JASON GOLDBERG

CAREY OLSEN

REACHES CENTURY MILESTONE Offshore law firm Carey Olsen now advises 100 London Stock Exchange listed clients.

E.ON AND RWE SET TO TRANSFORM EUROPEAN ENERGY SECTOR

THE TOP 6 UK SECTORS FOR INVESTMENT

WWW.GBUSINESSINSIGHT.COM

From a small business run in the back of a garage to a hugely profitable company with a turnover of almost £10 million.

BREXIT

IT IS TIME TO MAKE A DECISION

We continue to talk about how we are entering a period of significant change and uncertainty.

POTENTIAL MEETING

between Donald Trump and Kim Jong Un.

2

Magazine Tempate

3

09 12 16 22 28 38 55

convenient future

In store as CO-OP dials-up pay in aisle technology.

personal data for reward points

Over 50% of UK consumers will share personal data for reward points.

20

a third of job hunters have lied on their cv With 96% admitting they’d do it again.

brexit, is it time to make a decision

We continue to talk about how we are entering a period of significant change and uncertainty.

personal finance should be taught in schools Personal finance should be included as a standalone subject in UK schools.

jason goldberg Director of the UK’s longest-standing spa booking agency, spaseekers.com

60 76 86

uk progress on opportunities for women

New research shows that the UK is not making progress fast enough to improve female economic empowerment in the workplace.

international solar alliance sumit in delhi

WELCOME

M A R CISSUEH

The member states of ISA are proposing to invest 1,000 billion dollars in solar energy by 2030.

independent retail and leisure in britain As multiple stores like New Look, Maplin and Toys ‘R’ Us close at a rapid pace, we look to independent stores as saviours.

world’s first whisky cryptocurrency

WWW.GBUSINESSINSIGHT.COM

Thousands of prospective investors have enquired about world’s first blockchain-based whisky investment.

park place technologies

FOLLOW US @ GBUSINESSINSIGHT

Acquires Ireland-based Origina Technology Service’s hardware maintenance business.

34

80

e.on and rwe

The transformational asset deal set out by German utilities E.ON and RWE should reassure investors and creditors by creating two less complex companies.

carey olsen

Now advises 100 London Stock Exchanges listed clients.

56 ISSUE 04 | 04

TO THE

CONTENTS

potential meeting

Between Donald Trump and Kim Jong Un.

ISSUE 04 | 05

BUSINESS

FREEMARKETFX JOINS SAXO PAYMENTS BANKING CIRCLE Freemarket, the disruptive FX and payment platform for SMEs, has joined Saxo Payments Banking Circle to enhance its proposition for its international clients who sell through Marketplaces like Amazon.

MIXED LEVEL OF ACTIVITY IN DUBAI OFFICE MARKET INDICATES HEALTHY OUTLOOK FOR SECTOR SAYS CLUTTONS While the level of office market activity remains mixed throughout Dubai, Cluttons’ Spring Office Market Bulletin indicates growing maturing and a healthy outlook for the sector. As occupiers continue to ‘rightsize’ to suit their business needs, against the backdrop of rising inflation and global economic factors, office rents have continued to moderate, according to leading international real estate consultancy, Cluttons.

The report shows that headline rents in the city’s top tier free zones have remained largely steady, bar one or two low quality buildings. Away from prime Grade A buildings, which remain well let and in high demand, landlords are demonstrating greater flexibility and are largely receptive to rent reductions at renewal.

By joining Banking Circle, and utilising the Banking Circle Marketplaces proposition, freemarket will be able to provide its clients with local International Bank Account Number accounts which will enable them to make and receive international payments more quickly and at lower cost.

Freemarket has set out to challenge the status quo in foreign exchange and cross border payments, by creating a unique matching process to offer more transparency over rates and fees. And, by joining the Banking Circle, it is tackling another barrier in cross border transactions.

“To us, a big part of providing a better customer experience is the ability to offer cross border payments without the high cost and slow transfer times traditionally associated with international payments. Our partnership with Saxo Payments Banking Circle allows us to extend our industry leading 0.2% rate to those trading on online Marketplaces.” explained James Allum, Chief Commercial Officer, freemarket.

Anders la Cour, co-founder and Chief Executive Officer of Saxo Payments Banking Circle added: “Banking Circle Marketplaces provides a solution to help those trading on online Marketplaces to transact across borders without the need for multiple banking relationships. Through FinTechs like freemarket, sellers using Marketplaces can now trade internationally without the traditional cost and time implications.”

Faisal Durrani, Head of Research at Cluttons said: “Global economic factors continue to have a direct impact on the real estate market in the UAE. In the office market, upper limit headline rents have been affected, with occupiers either sitting tight, regearing leases, or continuing to consolidate operations. In fact, 5 of our 24 submarkets registered minor downward adjustments during the final quarter of last year, with the weakness persisting into 2018. It is our view that this will continue for the remainder of the year with rents set to fall AED 5 psf to AED 20 psf.

However, core free zones are likely to buck this trend, with rents holding steady.”

Cluttons’ latest report also indicates that while overall conditions may seem flat, landlords are not yet at the stage where large discounts and extensive incentives need to be offered.

Paula Walshe, Director of International Corporate Client Services at Cluttons said: “So far, the introduction of VAT has not had any real impact on landlord behaviour but we are monitoring this closely. While absorbing the 5% VAT costs does not appear to have been considered yet, this may well emerge as an option should rental weakness linger into 2019.”

Cluttons is also monitoring the rise of co-working and serviced office providers. The evolving definition of an office, along with the rise of remote working, is fuelling this trend globally.

Walshe continued: “Landlords in Dubai can perhaps learn from this trend in order to generate more interest in vacant stock, although with work visa quotas still linked to the amount of space let, organisations operating with an ‘agile working’ policy may still need to let more space than they need.”

The partnership between Saxo Banking Circle & freemarketFX now empowers online marketplace sellers to simplify the process of managing their international marketplace revenue & maximise the amount of earnings they repatriate back to their business.

ISSUE 05 | 06

ISSUE 05 | 07

INSIGHT

BUSINESS

CONVENIENT FUTURE IN STORE AS CO-OP DIALS-UP PAY IN AISLE TECHNOLOGY

The old adage that the UK is a nation of shopkeepers could soon ring true as the Co-op today, Wednesday, 7 March, unveils a convenient future where customers can check-out their own purchases on their phone, without visiting a till.

Time-pressed shoppers will soon be able to pay in the aisle and avoid visiting a till all together as they use their own phone to purchase goods at the Co-op with an innovative App built with Mastercard’s secure digital payments expertise.

The shop, scan and go initiative is being trialled at the Co-op’s store located at the retailer’s support centre in Manchester, with a wider roll-out beginning as early as this summer which is expected to include a further trial at the Co-op’s store located in the UK HQ of Microsoft.

The innovative move, which harnesses the latest technology, allows customers to scan products on their own device as they walk around the store - known as a “frictionless shopping experience”. When they have finished shopping, the amount they owe will then be deducted from their account with a single click.

The community retailer is seeing the number of cash transactions in its stores rapidly reduce in favour of alternative payment methods. Cash transactions have dropped by more than one fifth over the last five years, with a 15% reduction in the last 18 months alone.

Matthew Speight, Director of Retail Support at the Co-op, said: “It is a challenging market place for retailers, and the Co-op is responding positively. Our ambition is to harness technology to deliver the shopping experience that our diverse customer-base requires – when, where and how they need it. “It is all about consumer choices and convenience. We listen to our Members and customers and we are investing in our stores, people, prices, products and technology. We recognise there are many communities where customers pop in to their local Co-op and enjoy a friendly chat – it is all part of the service. Whereas for others, perhaps with a train to catch or on a school run, every second can count as consumers seek increased convenience.”

“Technology is bringing unprecedented change to retailing right before our eyes, however the challenge for all of us who play a part in the retail experience is meeting the needs of all consumers who are moving at different speeds in the adoption of technology.” said Elliott Goldenberg, head of digital payments at Mastercard UK. “With the Co-op we are bringing our online and mobile capability – Masterpass - into the physical store, and offering consumers who want a fast and frictionless buying experience, a secure and reliable way to pay. By scanning products using Co-op’s mobile app, shoppers can checkout using payment card details securely stored within Masterpass, and leave the store, with both the Co-op and them knowing they have paid.”

The technology also links information from a customer’s Co-op Membership account – telling shoppers how much they have saved and, how much the Co-op will donate to local good causes following the transaction. Members receive a 5% reward when they buy own brand products and services, with the Co-op donating a further 1% to good causes – last year the community retailer shared £20M with around 8,000 community groups. Earlier this year the Co-op unveiled plans to open 100 new food stores in 2018.It also announced a £50M price investment programme to cut the cost of everyday essentials including fruit, vegetables, bread, fresh meat and ready meals, as well as household brand names.

ISSUE 05 | 09

INSIGHT

BUSINESS

INSIGHT

Together, these cultural icons — Mikkel Hansen, Andreas Helgstrand, Shaka Loveless, Jens-Peter Brask and other seed investors — have invested around $1 million in the rapidly growing Artland app. Brask feels that Artland is a new and handy tool to promote and discover a new generation of talented artists.

RAPIDLY GROWING ART APP RECEIVES FUNDING FROM ART HEAVYWEIGHTS AND SPORTS STARS Artland, a platform dedicated to connecting art collectors and galleries worldwide, which was founded by Danish brothers Mattis and Jeppe Curth, has just announced a successful round of funding.

“The younger artists set the agenda; they are our new stars,” says Jens-Peter Brask.

“The dead artists don’t need the money, so I want to support the new talented artists. Artland gives me a platform and a community where I can spread the news about these new artists. And, in my job as a curator, I can also learn from other people’s collections and find art pieces nobody knew were out there.”

Artland co-founder and CEO Mattis Curth emphasizes that this new funding will help Artland scale its business and to further grow the current base of tens of thousands of collectors and galleries all over the world “This round of funding is great news for Artland,” Curth says. “This new team will be a key factor in securing the continued expansion of the Artland community. It’s all about investing in the product so we can keep on building something that users love.”

The Artland app is a professional network for collectors and galleries. It allows users to create profiles, upload photos of their collections and connect with like-minded art lovers and, potentially, art buyers. Art lovers both experienced and new to collecting can simply create a profile and browse, making art more accessible to all.

“We are in a period where the art world is ripe for transformation. The art world has been slow to adapt to new technologies, and now we see the huge need for it,” says Curth. “The most important thing for us right now is that we continue our high growth — and this active investor group is fully supporting our vision and bringing in strong competencies.”

Artland is available on Apple App Store and Google Play Store.

The new investors include one of the world’s most famous handball players, Mikkel Hansen; Olympic dressage champion Andreas Helgstrand; musician and songwriter Shaka Loveless; and Airhelp founder Nicolas Michaelsen and early investor in Airhelp Poul Oddershede.

They join art curator Jens-Peter Brask and other early-stage seed investors in Artland.

One of the new investors, Mikkel Hansen, is fascinated by the idea of creating an art community that has the potential to make the art world more open, especially for newcomers.

“I have often wondered why the art world seems to be so complicated — especially if you’re a newcomer who wants to buy an art piece, it’s a challenge to find information about the artist, the price range and so forth,” says Hansen. “I hope Artland will help the art world become more transparent and available to both new and seasoned art collectors.”

ISSUE 05 | 10

ISSUE 05 | 11

BUSINESS

OVER 50% OF UK CONSUMERS

WILL SHARE PERSONAL DATA FOR REWARD POINTS

• UK consumers (60%) are most uncomfortable with sharing their personal data on messaging platforms.

• UK consumers (36%) are least uncomfortable with sharing their personal data on fitness trackers.

• Reward points (54%) is the incentive that consumers would be most willing to share their personal data for.

INSIGHT

However, the research also revealed that there are moments when UK consumers would be willing to exchange their personal data. OnBuy found that customers would most do so for reward points at 54%. Closely behind was financial incentives/cash rewards, which 53% of UK consumers would be willing to trade their personal data for.

Contrastingly, personalised rewards or recommendations is the incentive that UK consumers would be least enthusiastic about exchanging their personal data for at only 16%.

Personalised rewards or recommendations ranking last was very surprising, seeing as many companies want to primarily utilise personal data to give their customers a more tailored experience in accordance to their needs and wants. Fascinatingly, despite the European Union’s general data protection regulation on the horizon (25th May 2018), 61% of UK consumers believe they will inevitably be giving data to more companies for the foreseeable future.

Barry Jones, an IT Consultant commented: “With the European Union’s general data protection regulation (GDPR) imminent, data is truly entering a new era. Whilst companies have been quick to harness personal data from the wide adoption of the web, social media and smart devices by mass consumers - GDPR is providing an urgency for companies to have a firmer grip on any data they handle as well as provide greater protection for consumers privacy rights”.

Cas Paton, Managing Director of OnBuy.com commented: “With multiple organisations suffering from high-profile breaches, data now more than ever is a major consideration for consumers. As consumers comprehend what their data can reveal about them, organisations have a key role in alivating any concerns they may have.

All organisations should store consumer data safely and use it only when they truly feel it will improve the experience as well as the interaction with their brand. This research certainly shows that there are certain incentives which will entice UK consumers more than others to share their personal data but when organisations use incentives – they must do so responsibly and with a clear purpose”.

We live in a highly connected society, where consumers have a plethora of devices at their disposal. Every time consumers use their smartphones, tablets and computers to engage in activities online (shopping, banking, entertainment, social media etc), they are either consciously or subconsciously increasing their digital/data footprint.

As consumers share more about their location, what they are doing at specific moments in time and what interests them – they are enabling brands to capture more information about their customers. Yet as they do so, statistics by the ‘Information Commissioner’s Office’ show that only in 1 in 5 UK consumers have trust or confidence in how companies store and use their personal data. These findings are further echoed by ‘Callcredit UK’, who found that 60% of consumers want brands to be more transparent as to how their data is being used.

Interested in data, OnBuy.com analysed findings from Mindshare, who surveyed more than 6,000 people from across the UK to better understand their attitudes towards sharing personal data.

OnBuy.com found that 60% of UK consumers would be most uncomfortable sharing their private conversations from the messaging platforms they are active on. Thereafter, a consumer’s search history from their web browser was the next most citied source of data that consumers would refrain from wanting to sharing at 51%.

In contrast to what customers would feel most uncomfortable with sharing, OnBuy found that consumers would be least uncomfortable with sharing their personal data on fitness trackers at 36%. Just ranked slightly above by 1%, 37% of UK consumers would feel apprehensive sharing data on their mood.

ISSUE 05 | 12

ISSUE 05 | 13

BUSINESS

INSIGHT

DATA EXPERTS TESTIMONY TO ESTABLISH LINK BETWEEN FINANCIAL DATA AND UNDERSTANDING SOCIETY

Business advisory firm Deloitte has invited top data scientists and fintech entrepreneurs from around the country to compete in its 2018 Datathon. The event, ‘financial services for good’, is an intensive 24-hour competition which will focus on how financial data can be used to help address some of the biggest challenges facing society today.

Following the success of last year’s event, this year’s Datathon will capitalise on the growing availability of consumer data through new regulations including open banking and PSD2. Its objective is to establish a meaningful link between financial services data and trends in other areas that underpin social wellbeing.

Hosted in Deloitte’s Greenhouse facility in Edinburgh, the Datathon will run from mid-day on March 19th to mid-day on March 20th at which point participants will present their concepts to a panel of judges including Kent Mackenzie, director, head of risk analytics & fintech, Deloitte; Loral Quinn, co-founder and CEO, Sustainably; Phil Grady, CEO, Castlight Financial and Bijna Dasani Katira, head of business architecture and innovation, Lloyds Banking Group.

The participants, who come from a diverse range of experience and backgrounds, are handpicked by Deloitte from industry, academia and beyond. They will compete to solve challenges and create their novel concepts in a fast-paced environment, testing their ability to analyse data and develop concepts under pressure. Judges will base their decision on the quality and distinction of the concepts, the use of visualisations, and the feasibility and impact each idea. There will be prizes for the Most Innovative Idea, Deepest Insight from the data, and Overall Winner, including a mentoring session with the CEO from Castlight Financial.

Kent Mackenzie, panellist and director at Deloitte in Edinburgh, said: “This year, we have seen significant growth in both the size and availability of data due to open banking and PSD2. It has created a real opportunity for analysts to generate new insights and to understand the potential benefits deep data analysis can offer society. Data now has the power to deliver beyond commercial advantages and to have a tangential, positive impact onpeople’s lives. The challenge we are giving to participants of the Datathon is entirely novel as this level of access to data hasn’t been so readily available before.

The variety and depth of experience of the participant’s means we are going to be presented with concepts that could potentially be developed further and help solve some real-world problems for people across society as a whole.”

Several leading industry figures will also offer their take on the industry, with speakers including Phil Grady, CEO of Castlight Financial; Nick Sherrard of Market Gravity; Bijna Dasani, head of architecture and innovation, Lloyds Banking Group; and Professor Georgios Panos, Glasgow University.

While comparable to hackathons, Datathons are intensive workshops in which researchers turn information into knowledge by querying datasets to extract information related to a specific question or topic, rather than designs apps or software. Deloitte’s Datathon is a fringe event at DataFest18, the festival of data innovation. The week-long festival takes place across Scotland from 19th to 23rd March 2018, with support from the Data Lab.

The Data Lab CEO, Gillian Docherty, said: “It’s brilliant to be able to extend the DataFest reach to so many sectors, including financial services, allowing us to promote the benefits of data-driven problem solving further than ever before. The sheer number of events taking place showcases Scotland’s place as a burgeoning centre for data on a global scale. DataFest18 is all about collaboration. We believe that interaction between different industry sectors and disciplines, academics, data practitioners, students, public sector, and business specialists is a key element towards data driveninnovation.”

ISSUE 05 | 14

BUSINESS

INSIGHT

A THIRD OF JOB HUNTERS HAVE LIED ON THEIR CV,

WITH 96% ADMITTING THEY’D DO IT AGAIN. Most job hunters are no strangers to slight exaggeration on their CVs. Whilst it is always good to be selfpromotional when looking for new employment, there is a difference between stretching the truth and telling an outright lie.

Yet, a recent survey by job site Adzuna.co.uk has revealed that as many as a third of job hunters are doing just that. Adzuna.co.uk conducted a survey of 3,587 participants either in, or looking for, employment. When asked if they had lied on their CV, a whopping 37%, or just over a third, admitted to doing so at some stage in their professional career. Of those that had lied on their CV, 83% said they still got the job, with 43% stating that their lie directly contributed to them bagging the role.

But did they ever get found out? According to 83% of candidates who lied on their CV, their fib was never discovered by their boss or co-worker. Which is perhaps why 96% of CV liars said they would do it again (with 37% revealing they would be prepared to tell a “big lie” to get their dream job).

However, not all CV discrepancies are there to maliciously hoodwink hiring managers. Most of the time survey respondents just wanted to “inflate the truth”. Yet, according to Risk Advisory, there has been a rise in university degree falsification, whereby a company (a “degree mill”) supplies candidates with false degrees from universities that do not exist.

So, what does your average CV fibber look like? According to the results, they are usually male (58%), aged between 25 to 34 years old (34%), and looking for a job in Marketing or Advertising (17%). Other sectors where candidates were more likely to inflate the truth were: Retail (14%), Finance (12%) and Law (12%).

One survey respondent expressed the opinion that it is almost expected to lie on one’s CV, stating “if a white lie gets you to an interview, there’s no harm done. Employers know CVs are rarely completely true”. Whether they expect it or not, 48% of HR professionals admit to not always checking an employee’s qualifications, and only 62% believe you should check references, (according to AXELOS, governmentally-run specialists in professional best practices).

“I was a fake reference for a friend” one participant told Adzuna.co.uk. “The company rang me up and I pretended I was her manager, told them what a great worker she was, what responsibilities she had. She got the job and they were none the wiser!”

According to Adzuna.co.uk’s survey, most people fib about: their skillset, e.g. being proficient in Excel (43%), their work experience (39%) and then their education (35%). One respondent stated: “I only told a very small lie about my punctuality. I don’t think it’s worth risking not getting the job by telling huge lies”.

But what about the job seekers that do get busted?

Adzuna.co.uk spoke to business owners and hiring managers about some of their experiences.

Ruth Sparkes, Director at Education Marketing company EMPRA said “My colleague and I were interviewing for a new PR account manager and this candidate was really pushing home her fabulous contacts with ITV - I asked her for examples of work she’d done, stories she’d placed - she listed three - all three were our actual clients and I had personally placed those stories [...] I got up from my chair and opened the office door for her, I asked her to ensure the front door was closed behind her.”

David Vallance, Head of content at car leasing company LeaseFetcher told us: “In all our job ads, we’ve had one non-negotiable requirement — must be interested in cars. I was amazed at how many people claimed to have a lifelong love of all things motoring on their CV or covering letter only to discover they hadn’t the foggiest idea in their interview!”

Doug Monro, Co-Founder of Adzuna.co.uk, has stated that candidates should never lie on their CVs “It is best to find the right angle for your experience; dig deep and think about relevant tasks that you might not have realised you had. Tailor your skills and experience to fit the role you are applying for, because putting something that isn’t true on your CV might get you the interview- but it won’t get you the job”.

ISSUE 05 | 16

ISSUE 05 | 17

BUSINESS

SIXTH FORMER QUIZZES CITY BOSS ON WHAT STUDENTS WANT FROM BUSINESS

INSIGHT

Shenice Osisioma, sixth form student at the City of London Academy (Southwark), added: “The stigma around alternatives to traditional forms of education needs to change. Business can give better examples of what alternative qualifications they will accept - and schools need to actively inform students of this at a younger age - not just when the time comes to actually make a decision. Numerous students have expressed concerns that the grades they were predicted would not be enough to make them appeal to businesses, but that they had no other skills or qualities to make up for this. There must be something else they can do to give them an advantage in appealing to businesses, but they have no clue what that is.”

The top tips to getting into business from a City boss to today’s youth: • Get the right attitude to work: show initiative, work hard and go the extra mile. It will be noted and appreciated. Ask questions – you won’t be expected to know everything but by asking you show interest and willingness to learn.

• Adopt strong social media etiquette: Employers check social media profiles – and what a person chooses to display online publicly says a lot about them. Candidates should use social media as an opportunity to stand out in a positive way and showcase your personality. Update social media profiles with relevant skills, use multimedia to supplement your CV, and interact with business social media accounts.

• Get meaningful work experience: Make sure it’s relevant and serves your needs. Choose what you enjoy most, speak to people who are already in the positions you’re aspiring to and ask them how they got there. Write a killer application - do your research, don’t use a template and make it a showcase for your achievements and aspirations.

A positive attitude, work experience and the right social media presence are key when it comes to getting a good job in business according to a top City boss. Sixth form student Shenice Osisioma quizzed Lloyd’s of London Chairman Bruce Carnegie-Brown at a City education dinner on what firms are looking for when recruiting, and she told him what students want from business.

The Chairman of the London Insurance Market gave his advice to the next generation of workers as he was questioned by the aspiring law student on what employers are really looking for in today’s fast-paced business world. Shenice, from the City of London Academy (Southwark), told the Lloyd’s chief that schools do not have enough understanding about business when it comes to knowing what young people need to do to appeal to firms and get a top job. Speaking for her generation, Shenice said young people need more clarity from both schools and businesses on what work experience is available and how to get it. She said firms need to do more to show what qualifications they regard highly - and what they don’t - and which non-academic skills are really valued in the workplace.

Carnegie-Brown said changing methods of recruitment, including through social media, are now key for employers and an important platform for candidates to get right. The exchange was held last night at the City of London Corporation’s Education Board Dinner. The City Corporation sponsors 10 academies across the capital and last year the Sutton Trust named it as the UK’s best academy sponsor for empowering pupils from disadvantaged backgrounds to perform above the national average.

Henry Colthurst, Chairman of the City of London Corporation’s Education Board, said: “Schools and businesses need to have strong relationships so young people can enjoy the best opportunities for their future. This debate underlines the reason why schools and business need to understand each other better, and that if they can bridge that gap, then young people can benefit. Together we aim to make sure that young Londoners have access to the information, advice and experiences that will help them to progress into fulfilling careers.”

ISSUE 05 | 18

ISSUE 05 | 19

BUSINESS

jason goldberg

DIRECTOR OF THE UK’S LONGEST-STANDING SPA BOOKING AGENCY, SPASEEKERS.COM

Jason Goldberg was propelled in to the spa industry when his family launched the UK’s first spa booking agency in 1989.

From a small business run in the back of a garage to a hugely profitable company with a turnover of almost £10 million, SpaSeekers.Com is the country’s longest-standing spa booking agency and showcases the most comprehensive selection of award-winning UK spas and packages. Established in July 1989 trading as ‘Healthy Venues’, the brand was founded to make spa breaks more accessible to a mass consumer audience. This new customer-base would call for advice on the best-suited venues and receive a selection of brochures of their top suggestions.

As business boomed, the company invested in advertising and ‘Healthy Venues’ launched their website with the birth of the digital age in the mid-nineties. It was at this time that Jason also launched ‘The Beauty Therapist Bible’, a nationwide magazine allowing spa venues to advertise their vacancies, which he later sold to ‘Professional Beauty’ for a healthy profit allowing him to focus on the growth of ‘Healthy Venues’.

As countless upmarket hotels started to realise the development of the spa market, they began investing in their own facilities by building spa and leisure amenities. In the space of just a few years, the ‘Healthy Venues’ portfolio grew to over 250 spa venues and Jason’s fearless determination saw him taking over the family business and re-branding the company to become SpaSeekers.Com in November 2003. It also found him moving into property where he invested in commercial offices giving the freedom for the company to grow and move, which today operates from a £1.2 million office, with plenty of space for additional expansion.

Despite a family tragedy in 2004, Jason continued to pursue his dream and submerged himself into the business, forming a solid online digital strategy and increasing the team whilst investing into both the website and CRM systems. 2015/16 saw the market share begin to snowball and today the SpaSeeker.Com turnover has grown from £2.5 million in 2014 to almost £10 million – it also has around 500 spa venues currently listed on their website. 2018 is set to be another big and unprecedented year for Jason and his award-winning company who are proud to offer a free booking service, best price guarantee and exclusive spa deals. These exceptional offers continue to place them as the leading supplier of UK spa experiences.

Jason also forecasts an exciting future with an abundance of exciting business ventures up his sleeve for both SpaSeekers.Com and his growing property portfolio.

ISSUE 05 | 20

ISSUE 05 | 21

INSIGHT

BUSINESS

BREXIT IT IS TIME TO MAKE A DECISION AND PROVIDE CLARITY

If a business was faced with this challenge it would first look at all its big cost centres and make sure it was getting value for money. This may involve cutting back in certain areas or looking at the business pricing structure to see if this allowed it to deliver a good service but also was enough to allow it to invest back in the business. Why do we not take a serious non-partisan review of the NHS, the biggest budget item for us? This should include whether money is being spent on service delivery rather than layers of management. We also should not be afraid to say that with the changing population make up there may be certain areas or certain categories of people who would have to pay something for receiving such services. Or, be bold and say that those who subscribe for private cover can get a tax break, making such cover more affordable and reducing the pressure and cost of the NHS thereby focusing more on providing a service to those who really need it and have no alternatives.

We also keep hearing of how there is big shortfall in productivity without really understanding what this means and the impact it has. Simply put this is the gap between developed countries when measuring the value of output per worker or output per hour. Education and skills training is clearly central to closing this gap. Philip Hammond commented last September that improving the productivity gap in the north of the country was at the very heart of the government’s economic policy as we prepare for Brexit. Yet we continue to tinker at the edges with our education system rather than fully addressing the skills needed by our future workforce. In order to stop falling even further behind other countries, we must undertake a review of the education system that is not driven by politics or ideology. Another area where one could argue we need to spend a lot more money but this needs to be combined with a full review of the system.

The uncertainty delays investment and spending which in turn impacts our economic prosperity.

Whether we remain within the Customs Union or not, no solution will be perfect. The urgency for business is for the Government to make a decision and provide clarity.

NILESH SHAH CEO BLICK ROTHENBERG

While Britain waits for the Chancellor’s Spring Statement, we continue to talk about how we are entering a period of significant change and uncertainty.

This is because there has been a failure on the part of government that, faced with the momentous decision to leave the European Union 18 months ago, we are no closer to knowing what our future economic relationship with the EU will be like.

ISSUE 05 | 22

There is then taxation, the other part of the Chancellor’s equation. The answer to questions of improving services is not always to increase spending. Government, like a well-run business, needs to drive efficiency and be ruthless in measuring value for money. This certainly does not mean making the vulnerable in society even worse off but actually making sure that they in particular receive the help they need in a well targeted manner rather than grandiose projects that do not achieve anything but provide a good sound bite. It is well documented that lower taxes provide motivation to business and individuals to work harder and invest more and also reduces the temptation to avoid tax. A growing economy makes it much easier to incur expenditure without increasing taxes. The government needs to make some tough but quick decisions around Brexit and start focusing on what the economy needs for the new environment it finds itself in.

There is a need for a significant shift in the way that our governments look at running the country.

Successive governments make decisions based on political ideology rather than what is the right thing to do for the long term. It does not have to be a choice between looking after business interests or looking after the interests of the more vulnerable in our society. Successful businesses do not have a conflict between making profit and looking after the people who are instrumental in allowing it to achieve that profit.

The perfect example at present is the perceived conflict between maintaining fiscal prudence, or austerity as it seems to have come to be known, and the need to provide for our future growth.

ISSUE 05 | 23

INSIGHT

BUSINESS

INSIGHT

LEASED IN THE EAST RENTS IN THE EAST MIDLANDS ARE RISING THREE TIMES FASTER THAN UK AVERAGE Residential rents in the East Midlands grew by 2.24% in the 12 months to February, the fastest rise of any UK region and more than three times the UK average of 0.69%, according to the latest Landbay Rental Index, powered

by MIAC.

The East Midlands has seen the fastest pace of rental grow4th out of all UK regions for the past 11 months. At a county level, Leicester (3.42%) and Nottingham (3.30%) have experienced the most substantial rental growth in the region, both outstripping UK inflation which currently stands at 3%. There is a lot of variation in rental growth within property sizes in the East Midlands. For example, in Leicester rental growth is driven by 1-bed and 3-bed properties, with rents for these properties increasing by 4.03% and 5.01% respectively. In contrast, a 2-bed property grew by just 1.41% year on year, pointing to a glut of 2-beds in Leicester. The region with the second fastest pace of rental growth is the East of England, where rents grew by more than twice the UK average (1.58%). Within the region, Peterborough (2.99%) and Cambridgeshire (2.24%) both saw considerable growth, while in Luton rents fell by -0.13%, having been among the fastest growing counties at this point last year (4.83%).

Even with the rapid growth, renting remains more affordable in both the East Midlands (£626) and East of England (£910) than the average across the UK. The average UK rent now stands at £1,199 per month, a 0.69% increase on this time last year. London rents remain, on average, 2.5 times greater than those across the rest of the UK (£1,878 vs £761), while rents in the South East (£1,053) also well surpass the average.

John Goodall, CEO and founder of Landbay said: “Much like Britain’s weather, rental growth was heavily impacted by the East in February. With its more affordable rents, the East is seemingly becoming an increasingly attractive buyto-let region and as a result greater competition is driving up rents. As London rents remain unsustainably high this comes as little surprise, suggesting that many are moving further afield to reduce their rent burden while they save for a house of their own. At a national level, an uplift in rents has been on the cards for a while and is likely to continue into 2018.The Prime Minister has this week vowed to get tough with property developers who sit on planning permissions, but if we truly want to control rental and house price growth we need to build more homes, not just plan them. Areas in the East Midlands and East of England, such as Leicester and Nottingham, where rental growth is reaching particularly unsustainable levels, should be the prioritised focus for the government, developers and landlords.”

ISSUE 05 | 25

BUSINESS

JAPAN INVESTS IN THE MOST SUCCESSFUL STARTUP IN THE REGION

NEW RAKUTEN AQUAFADAS OFFICE OPENING Rakuten Aquafadas, expert in digital publishing, interactive content and apps creation, part of the Rakuten Group, has moved to a new premises in Montpellier. The new office has been named Rakuten Crimson House Montpellier on 2nd March and is located in Parc Club Millenaire.

Rakuten Aquafadas has been founded 12 years ago and is one of the most successful startups of the region. It has commenced creating desktop apps then lead with digitisation of comic books and press. And today it helps enterprises with their digital and mobile comms journey through innovative apps and content software. Currently it’s the biggest Research & Development business unit of Rakuten Europe. It has been previously based in Cap Omega and then MIBI - the startups incubators.

Today, the new chapter has been marked by a move to an open workspace designed to become a place where people and ideas thrive following the philosophy of all “Rakuten Crimson House” offices across the world. .

Yasufumi Hirai, Executive Vice Président, CIO & CISO Rakuten Group, President of Rakuten Aquafadas: “Adjustable desks without dividers, open meeting spaces, a video conference system that lets us interact with colleagues around the world as if we’re all in the same room all empowering spontaneous collaboration. This is our vision of the cutting-edge work environment come to life and the Montpellier office deserves the prestigious internal label of Rakuten Crimson House.”

The freshly renovated office has been designed to improve daily work experience and wellbeing of all the employees. It has been painted crimson colour, decorated with the FC Barcelona jerseys and a new wall art created by one of the oldest Aquafadas’ employees: Julien Besnard. This new colourful poster shows the history of Aquafadas, the company’s official mascot nutty fish Aqua as well as the japanese and french flags and other landmarks from Tokyo and Montpellier. All of these symbols reflect the Rakuten’s culture, its new partnerships and the link between Japan and France that Rakuten Crimson House Montpellier represents.

The naming ceremony took place in the presence of all the Rakuten Aquafadas employees and the Rakuten Group senior management including the president Yasufumi Hirai, Executive Vice Président, CIO & CISO Rakuten Group; Ken Okamoto, Rakuten General Manager of SSED; Rohit Dewan, Rakuten CTO Technology division, Tsubasa Shiraishi, Rakuten Office Manager and Olivier Alluis, Rakuten Aquafadas CEO. The proud moment has also been attended by the region representatives: Isabelle Prevot, Director, BIC Montpellier; Pierre Deniset, President, FrenchSouth.Digital and Hussein Bourgi, Representative of the President of Occitanie Region, Carole Delga.

Pierre Deniset, FrenchSouth.Digital President: “FrenchSouth.digital represents 200 companies in the regional digital sector. Rakuten’s installation in Montpellier is an important signal for us and builds on the existing partnership with Japan. The story of Rakuten and Aquafadas strengthens these links and opens up many possibilities for development.“ Hussein Bourgi, Occitanie Regional representative: “Today we’re celebrating success of a Montpellier start-up that throughout the years achieved international recognition. Rakuten Aquafadas is a precursor when it comes to the Occitanie Region efforts to develop closer relations with Japan. Since 2017 business leaders and academics have been pursuing researching and prospecting in this market.”

Olivier Alluis, Rakuten Aquafadas CEO: “We’re pleased to see the region representatives joining us for such a significant moment. We’re proud to take the name Rakuten Crimson House Montpellier - the fourth Crimson House in the world after Japan, USA and Singapore. This is a sign of Rakuten’s trust in our innovative technology and their will to build a long-term vision, leveraging the entrepreneurship dynamics in southern Europe. From our new office, we want to be a bridge between Japan and France, two very strong and complementary cultures.“

ISSUE 05 | 26

ISSUE 05 | 27

INSIGHT

FINANCE

PERSONAL FINANCE SHOULD BE TAUGHT AS A STANDALONE SUBJECT IN SCHOOLS

Personal finance should be included as a standalone subject in UK schools, affirms the boss of one of the world’s largest independent financial services organisations.

Nigel Green, founder and CEO of deVere Group, is speaking out days after the leader of the Church of England, the Archbishop of Canterbury, said that learning about finances is as important as learning about sex and relationships.

The Archbishop, Justin Welby, said: “Research has shown that habits and attitudes to money are already being formed at the age of seven.” He added, “We would like to see financial education receive parity with sex and relationships education.” Mr Green states: “I fully support the view that we need greater and more robust personal finance education in schools. Currently, financial education is not a standalone subject, but is instead included within other subjects, such as mathematics. It’s a step in the right direction, does not go nearly far enough. It should be a defined subject, alongside more traditional subjects such as English and science.”

He continues: “Financial literacy is a fundamental life skill for successfully participating in modern society, yet it is consistently overlooked or not given the credence it deserves. Today’s world is increasingly complex and children need to be taught how to manage their own financial futures by learning how to budget, make sensible decisions for everyday matters, how to effectively save, how to avoid taking on unnecessary and/or avoidable debt, how to analyse and compare financial products, and make provision for their healthcare and old age. Contributing to the complexities are monumental technological advances, economic shifts and developments in transactions and communications.”

He goes on to add: “Low levels of financial literacy can have a far-reaching impact on individuals, their families and wider society. Indeed, it was one of the factors that many experts believe help exacerbate the global financial crisis that began in 2008.

It is also often connected to greater reliance on state support, and lower standards of living.

The deVere CEO concludes: “Financial literacy can equip young people with the confidence, skills and know-how to obtain future financial freedom for themselves and their families – and this is why we should all support the growing calls for personal finance to be a standalone subject in schools.”

ISSUE 05 | 28

FINANCE

NEW GUERNSEY FINANCE APPOINTMENT IN HONG KONG TO SUPPORT ISLAND’S GROWTH IN ASIA

OPEN BANKING TO BOOST UK ECONOMY BY 1BN

A dedicated Guernsey presence in Hong Kong over the past 15 months has paid dividends for Guernsey Finance and has been strengthened by a new appointment.

The promotional agency for the island’s finance industry opened an office in Hong Kong at the end of 2016, linking up with the regulator, the Guernsey Financial Services Commission. The presence in Hong Kong has supported the development of the agency’s ongoing work in China, which began more than 10 years ago.

“We have been aiming to increase awareness of Guernsey as an option for the full range of financial services,” said Kate Clouston, Deputy Chief Executive at Guernsey Finance, who is a regular visitor to Asia.

“Our presence in Hong Kong has given us more visibility to the Hong Kong network of intermediaries and has better informed them about the opportunity to work with Guernsey service providers. The GFSC has received more than 100 technical inquiries across all sectors over the past 15 months and it has certainly been helpful to have their presence to support our work.”

“Our work in China is well-established and we continue to look for opportunities coming directly from the Chinese mainland, while recognising that Hong Kong is considered a gateway to China and that a significant amount of China-related business comes through there.”

Jacob Cherry, the GFSC’s Senior Regulatory Advisor in Hong Kong, gave a high-level summary of market developments since Q1 2017. “Asian corporates are beginning to appreciate Guernsey’s providence as a specialist centre of excellence that is joined-up and nimble enough that cross-sectoral collaboration within the finance industry is common,” he said.

“There is developing interest from various sectors in the quality tailored financial solutions for which Guernsey is known.Hong Kong introducers have observed that market demand for more sophisticated financial solutions continues to grow slowly but surely among Asian private clients. Guernsey’s bespoke offering of services contrasts with the commoditised products that Asian clients are more accustomed to, which reinforces the necessity for Guernsey stakeholders to continue to proactively build trust in these markets.”

ISSUE 05 | 30

Guernsey Finance has also employed a new permanent representative in Hong Kong. Dorothy Kwok has eight years’ experience in the trust and corporate services industry, most recently with a company which was bought by global trust business Equiom, which also has a Guernsey office. Her work with Equiom and another Jersey-based trust company brought her into contact with Channel Islands structures and she spent time working in Jersey.

Fully-qualified with the Society of Trust and Estate Practitioners, Miss Kwok is looking forward to promoting Guernsey in her home market. “Guernsey’s financial services are well respected in Hong Kong,” she said. “I am looking forward to playing my part in ensuring that our offering is known more widely, and that Guernsey is recognised for its expertise.”

Miss Clouston will lead Guernsey industry delegations to Hong Kong and China in April, September and November this year.

“My main aims will be to increase our contact with trust and private client intermediaries, to build stronger relationships with fund managers and to build on the progress we have made with our insurance offering to date in the region,” she said. “There is opportunity for everyone in Asia and we are looking at all sectors, and Dorothy’s trust background and fiduciary network will be especially helpful.”

ISSUE 05 | 31

FINANCE

INVESTOR APPETITE FOR REAL ASSETS REMAINS STRONG INTO 2018, BUT THE FOCUS HAS SHIFTED AWAY FROM RAISING ALLOCATIONS AND TOWARDS DIVERSIFICATION WITHIN THE SECTOR

Strong investor appetite for both traditional and niche real assets continues into 2018, with high demand for infrastructure, real estate, agriculture, timberland, renewable energy and more among bfinance’s asset owner clients.

While the post-GFC phase was marked by diversification towards real assets, the recent period has seen greater emphasis on diversification within real assets. This has been encouraged by the increasing popularity of more holistic portfolio design, as opposed to segregated asset classes for real estate and other sectors, among asset owners globally.

As a result, demand for the more niche sectors such as agriculture and timberland has increased substantially during the past three years. Within real estate and infrastructure, what was niche is now mainstream, with infrastructure funds tapping into sectors that would not previously have been included such as energy storage or data centres. In addition, more asset managers are today offering diversified real asset strategies that wrap multiple asset classes into one mandate. The heart of these changes is a mindset that is less focused on labels and prioritises core characteristics, such as inflation sensitivity, diversification from equity and yield. Yet investors should take great care: these characteristics are not hard-wired to real assets. At this late stage in the investment cycle, where increased tensions are observed between target characteristics such as yield and diversification, a diversified real asset portfolio can prove beneficial in theory, but implementation is the critical challenge.

The rise of the real asset portfolio In recent years, the concept of the ‘real asset,’ tangible asset’ or ‘inflation-sensitive’ portfolio has become increasingly popular within the global asset owner community. Once an approach predominantly used by certain North American and Australian institutional investors, the use of a real assets allocation in portfolio design is now becoming an increasingly widespread global practice, even gaining traction among European and UK pension funds. This trend has been encouraged by the shift towards infrastructure, which can be grouped with real estate to create a bedrock for a portfolio founded on core characteristics rather than labels. With the late stage of the cycle compressing returns in traditional sectors, tensions are increasing between certain target characteristics such as returns and diversification, and investors creeping towards the value- add end of the spectrum in real estate and infrastructure can become more sensitive to cyclical risks. Diversified real asset portfolios can theoretically outperform in this environment, with recent research demonstrating that they have outperformed standalone infrastructure, real estate or agriculture portfolios at times of low market returns, but only if implemented effectively. Investors and their advisors should remember that the main objective is not to have a resilient real asset portfolio but a resilient total portfolio.

Asset owners are not the only ones shifting towards real asset units. Many asset managers have now established real asset divisions in a bid to take advantage of industry trends. Given the organisational overhauls involved when managers have built, bought or branded these teams, investors should pay close attention to issues such as staff turnover, integration and leadership when evaluating and selecting managers.

Strong investor appetite for niche real assets The post-global financial crisis (GFC) phase was marked by diversification towards real assets, however later years have seen increased investor appetite for diversification within real assets. bfinance has seen increased demand for agriculture, timberland, renewable energy infrastructure and real asset debt. Attractive traits are available to varying degrees in the different sub-sectors, as illustrated in a detailed table summarising strengths and weaknesses, and so a combination can prove potentially beneficial. Investors may consider real assets in terms of four quadrants traditionally used for real estate – unlisted and listed, debt and equity.

ISSUE 05 | 32

Although some vehemently argue against the inclusion of listed infrastructure and REITS in real asset portfolios (#fakeinfra), bfinance cautions against blanket statements and reminds readers that, while listed real assets can be strongly correlated with equities, certain parts of the unlisted real asset universe are also correlated, while other characteristics should be considered.

Multi real asset strategies A new theme is currently emerging, wherein increasing numbers of asset managers are developing multi- real-asset capability, delivering several real asset types under one mandate. Diversified real asset mandates may be viewed as the logical next step with both asset owners and asset managers taking a more holistic organisational approach to this sector. According to manager searches for Diversified Real Asset mandates conducted by bfinance in 2017-18, there are three different structures available for investors to consider, including pooled funds, wrappers of managers’ in-house products and classic fund-of-funds.

Each of these structures holds different advantages and disadvantages in terms of cost, alignment of interest and customisation. Among investors, the single mandate for a range of niche real assets is more popular than the mandate integrating traditional real assets (e.g. real estate and infrastructure), though there is appetite across the spectrum. These mandates have necessitated broad, fresh approaches to the market, with few “off-the-peg” solutions advertised.

Differing needs Where clients are relatively new to real assets, the team encourages them to start with more traditional property and infrastructure, but with an eye to building potential exposure to other sectors over the long term. For institutions that are highly advanced in their approaches due to a long experience with different genres of real asset investment, including some of the firm’s Australian and Canadian clients, the main priority has been building complementary niche exposures around the traditional strategies. Yet generalisations should always be treated with caution: investors’ needs and expectations from real asset investments vary widely, even for institutions of the same type and size in the same country with an equivalent level of experience.

Peter Hobbs, Managing Director, Private Markets at bfinance, commented: “Today’s investment climate has, in theory, strengthened the case for a more diversified real asset portfolio. The late stage of the cycle has compressed returns in traditional sectors, and also increased the tensions between certain key traits, such as “returns” and “diversification vs. stocks.

With investors creeping towards “value-add” end of the spectrum in infrastructure and real estate, for example, they may also increase sensitivity to cyclical risks.

“Over the past year, bfinance has observed multiple managers and consultants advocating a diversified real assets approach, for a variety of reasons including product marketing, but many of these arguments overlook the challenges of implementation. It is also critical to remember the main objective: the end investor’s priority should not be to create a resilient real asset bucket but a resilient total portfolio. Diversification is not valuable if its results can be mirrored by adding stocks or bonds to the mix: that’s where inter-asset class diversification should come into play.”

Kathryn Saklatvala, Director of Investment Content at bfinance, commented: “Ten years ago it would have been hard to name a Head of Real Assets at a major asset management firm. Today the role is a common one and the supporting M&A trend continues in force. Meanwhile, integrated real asset portfolios are also increasingly popular among pension funds and other asset owners globally, supporting greater diversification into niche sub-sectors. Yet, with a trend of this magnitude sweeping the industry, the fallout can be complex and challenging. Supposed diversification does not necessarily deliver a more welldiversified portfolio. Supposed real asset investments do not necessarily deliver the desirable characteristics associated with this space. At the end of the day, ‘real assets’ is only a label: what’s inside the tin is what matters.”

ISSUE 05 | 33

FINANCE

CAREY OLSEN REACHES CENTURY MILESTONE FOR LONDON STOCK EXCHANGE CLIENTS Offshore law firm Carey Olsen now advises 100 London Stock Exchange listed clients.

The latest edition of the Corporate Advisers Ranking Guide reveals that not only does Carey Olsen rank fourth globally for the number of companies and funds it advises on the LSE, but that its 100 clients is more than double the number of the next nearest offshore law firm.

Ben Morgan, head of Carey Olsen’s corporate and finance group in Guernsey, said: “Reaching such a milestone underlines the very strong reputation Carey Olsen has forged for itself over recent years and cements our position as the go-to offshore law firm for London Stock Exchange listings. We boast one of the largest offshore corporate teams and that provides us with the necessary depth and expertise required to cater for our increasing market share.”

Retaining its position of fourth from the previous quarter, Carey Olsen sits behind only onshore law firms Slaughter and May, Herbert Smith Freehills and Pinsent Masons in the rankings.

The two LSE listings which took Carey Olsen to the 100 mark were US loan specialist Marble Point Loan Financing and its admission to trading on the Specialist Fund Segment of the LSE’s Main Market, and Tufton Oceanic Assets Limited, a Guernsey registered fund, which also trades on the SFS and invests in a diversified portfolio of commercial sea-going vessels.

The Corporate Advisers Ranking Guide also confirmed that Carey Olsen has maintained its longstanding position as the leading offshore legal adviser for AIM-listed clients, advising a total of 31 clients with a combined market cap of £5.8billion.

SHIFTING SANDS

HOW BANK MANAGERS HAVE JOINED THE ALTERNATIVE FINANCE BOOM

Banking has changed beyond all recognition over the last decade, following the Crash. Many high streets are now without a traditional bank as, according to The Times, some 802 branches closed in 2017 alone – a figure that seems certain to accelerate this year. The statistics continue to stack up: a 2016 report from the Federation of Small Businesses estimated that 1,500 previously banked towns had become branchless; banks are compensating for the loss of these branches by increasingly channeling customers down digital routes.

While numerous small businesses are embracing the shift to digital services, with 94% of SMEs using internet banking, there is still huge value in being able to have a face-to-face conversation. This is particularly true when businesses are making important decisions about the future and are looking to raise finance. Raw, online data may be universally accessible, but an online app cannot back up the figures with years of finance knowledge, no matter how sophisticated the software. The loss of bank managers from many high streets has also seen the disappearance of the experience needed to quantify the different types of funding needed to take an SME to the next stage of its development. The relationships, and the businesses that rely on them, are being lost. The figures back this up; a recent report from Close Brothers, the merchant-banking group, showed that some 12% of lenders didn’t understand the sector and a further one in ten don’t have the necessary knowledge or understanding of borrower’s individual needs. Hardly surprising, then, that the same report says that only a fifth of SMEs believe bank’s advice always meets their needs.

Data mining is an invaluable tool, and algorithms produce data on a scale never seen before; but there is certainly more to lending than producing endless data – and it involves a human being becoming embedded in a borrowers’ business, nosing around the factory floor, getting to know the different personalities and the management team, and ultimately coming up with a bespoke financial package that will meet the ambitions of that company. The good news is that many of the most experienced bankers have moved into the alternative finance sector. These experienced lenders have switched their knowledge and experience to more agile organisations operating in the alternative funding and commercial finance sectors. This creates the perfect environment for finance-hungry SMEs who can take advantage of a range of funders offering personal and professional services with great local and industry knowledge - all without the overhead costs and bureaucracy of the traditional lenders.

ThinCats’ Origination team is made up of many a seasoned ex-banker, with an average of 20 years’ experience across the team.

Their personal experiences reflect the trend: Andrew Tapsell, Business Originator, South coast, said: “From the networking and professional groups that I’ve been to in recent weeks, the absence of any bank representatives has been increasingly noted by the accountants and advisors. Businesses that I have spoken to say that they have approached their bank for finance and are either told that the bank doesn’t have appetite in the sector, or they don’t hear back at all.”

Alison Whistance, Business Originator, Wales & M4 corridor: “I have seen a lot of change over recent years; with local bank manager autonomy stripped away, many companies struggle to access funding to grow and evolve. With advancing technology and changing buying habits, it is imperative to adapt and invest quickly, but traditional methods of lending seem increasingly restricted. The alternative lending market continues to grow and is playing a vital role supporting UK SMEs.” Former bank managers have also found alternative employment at accountancy practices and corporate finance advisors who work in partnership with alternative finance providers, ensuring a virtuous circle of knowledge throughout a lending deal that SMEs are more than happy to tap into. This shift towards alternative finance means that SME owners can now access flexible funding that reflects the specific needs of their business. Deals can be considered on their own merits, and different types of security can be considered to provide collateral. For lenders providing secured loans this doesn’t necessarily have to mean physical assets, as stable and diverse cashflow can also be valuable.

ISSUE 05 | 34

ISSUE 05 | 35

FINANCE

SUSTAINABLE FINANCE PLAN NEEDS TO BE PRACTICAL AND FLEXIBLE, SAYS INVEST EUROPE

DIGITAL RENAISSANCE AT THE HEART OF FUTURE WEALTH MANAGEMENT SUCCESS

Private equity is well-placed to support the European Commission’s sustainable finance plan announced today, but any further measures need to take into account the diversity of the industry, says Invest Europe.

Today, the European Commission announced its Sustainable Finance plan, following January’s report from the High-Level Expert Group. Among other recommendations, the plan outlines that institutional investors and asset managers must explicitly integrate material environmental, social and governance factors and long-term sustainability into their fiduciary duties.

“The EU’s goal of transitioning to a sustainable economy is important and private equity is well-positioned to support it,” says Michael Collins, CEO of Invest Europe, the association representing European private equity. “In order to create a truly sustainable finance landscape, the Commission’s plan needs to reflect the industry’s diversity and take a pragmatic approach.” The plan’s following points are particularly important for private equity, according to Invest Europe: Clarification of institutional investors’ and asset managers’ duties “The target audience for the Commission’s new proposal is, rightly, broad but private equity investors and fund managers vary in size and have different investment models. For this reason, any legislation needs to leave sufficient flexibility on how to implement sustainable finance procedures in practice,” said Collins.

The asset class’s active stewardship and long-term investment horizons means many fund managers are already focused on ESG matters, both in their due diligence before choosing to invest and in their day-to-day management of the companies they back.

Objectway, the leading supplier of digital solutions in the global wealth management industry, has called for wealth managers around the world to grasp the mettle and enter a period of digital renaissance at its third international customer conference in Rome.

Objectway has been a major contributor to the increased rate of digital innovation throughout wealth management services worldwide and believes its adoption to date has enabled firms to move from ‘infant’ to ‘growth’ phases faster than everyone expected. However, the company anticipates that this process will only accelerate and the clear future wealth winners will be those that continually introduce new solutions to their practices.

Luigi Marciano, Founder and CEO of Objectway, said: “Are we now in another new era of what everyone calls digital disruption or actually one of digital renaissance? The renaissance of the 14th Century put ‘humans to the core’ and changed forever our way of seeing the world. Now the mass drive and thirst for rapid knowledge, new experiences and interaction between humans and technology provides a tremendous opportunity of a ‘digital renaissance’ to really put ‘digital to the core’. Too many business people and companies look at breakout trends as threats when they should be viewed as innovation challenges. It’s true, as in the fourteenth century, these cannot be fixed easily and soon but that’s exactly why they’re good targets for innovation. Digital innovation is at the core of our successful wealth platforms today. The digital solutions being adopted by the major players throughout the world are driving universal enhancements in customer relationships, experiences, awareness, involvement and security. It has enabled the challenges of increased regulation to be incorporated more easily into business models as well as the important payback of capital expenditure forerunning increased profitability. However we must continually seek to learn, invent and drive more newer and better solutions. If we want our companies to continuously be industry leaders, we must have the bravery and the energy to cross the gate and enter the digital renaissance”.

Invest Europe’s industry professional standards and reporting guidelines support the Commission’s aims. Outlining how investors and fund managers can consider sustainability as part of the investment-decision making process, the professional standards integrate ESG considerations throughout and encourage transparency on how this is done.

Potential revision of the prudential requirements for banks and insurance companies Incorporating sustainability into banks and insurers’ prudential requirements is laudable, but could be difficult to achieve in practice.

“While it is important to consider ESG issues in all investment decisions, it remains unclear whether the risk calibration methodology in Solvency II or CRD is a suitable route to encourage this,” said Collins.

Taxonomy The search for criteria against which to judge ESG factors could be a challenging exercise. Asset owner support will also be essential as they are the ultimate source of capital.

“Any taxonomy for sustainable assets needs to be based on existing widely accepted standards and definitions. It must be unambiguous, practical and adaptable as understanding of sustainability issues develops,” said Collins.

According to a recent survey commissioned by Invest Europe, 74% of global investors rate Europe as the world’s strongest region for commitment to sustainability and the environment. The same percentage said that sustainability is an important issue in their investment decision-making.

Climate change is an area of focus this year for Invest Europe’s Responsible Investment Roundtable.

ISSUE 05 | 36

Luigi marciano, founder and ceo of objectway

MICHAEL COLLINS CEO OF INVEST EUROPE

ISSUE 05 | 37

INVESTMENT

THOUSANDS FLOOD TO INVEST IN WORLD’S FIRST WHISKY CRYPTOCURRENCY.

Thousands of prospective investors have enquired about the world’s first blockchain-based whisky investment fund after a successful launch, with an initial coin offering (ICO) going live today.

DELIVERING WORLD’S LOWEST latency cryptocurrency exchange platform

Investors have been offered the chance to own a share of the £40 million portfolio of world-class scotch via CaskCoin, a new cryptocurrency launched in Scotland. The CaskCoin portfolio is comprised of a range of casks, including some of the most sought after old and rare single malts, which are aged between 21 and 50 years old in cask.

Each coin will be backed by physical ownership of a share of every cask in the CaskCoin portfolio, stored in bonded warehouses in Scotland, opening the portfolio to global investors. Since the CaskCoin website was launched, there has been over 1,000 enquiries and a growing number of potential investors requesting to be registered or ‘whitelisted’, according to CaskCoin’s operation director and project lead.

Ricky Christie, said: “The global interest in this offering is very exciting. We truly believe that we are creating a paradigm shift in the industry. With CaskCoin, we are marrying hundreds of years of tradition with cutting-edge technology to provide a unique opportunity to invest in one of the most sought-after whisky portfolios in the world. Whisky has a rich history as a store of value and a medium of exchange, and we are building upon this idea with the help of the blockchain and our new CaskCoin cryptocurrency. Scotch is the most recognised and popular spirit in the world and has proven to be a robust and tangible investment that has consistently outperformed others in the marketplace. CaskCoin is the first time that our industry has been opened to a global investor base.”

The whisky will be managed through to bottling using blockchain technology, with CaskCoin holders voting on the best time to bottle, sell and reinvest in the portfolio. Alongside its range of old and rare single malts, the CaskCoin portfolio also includes a broad selection of single malts, from all the recognised regions of distilling in Scotland, aged from five to 20 years. Blended malts, single grains and blended scotch whisky complete the portfolio, all from notable distilleries and reserved exclusively for blending purposes.

CaskCoin’s initial coin offering (ICO) will look to raise more than £40 million between today and March 30th, with a total of 5.2 million ERC-20 tokens made available at a cost of £8.15 each. The minimum investment is £30,000, with payment in bitcoin or ether. Token bonuses are available for investors who buy CaskCoin in the first ten days of the sale. Following the conclusion of the ICO, CaskCoin tokens will be publicly tradeable on a number of exchanges, with details to follow later in the year.

HIRANDER MISRA

CEO OF GMEX GROUP AND CHAIRMAN GMEX TECHNOLOGIES

GMEX Technologies, a wholly owned subsidiary of GMEX Group and a provider of multi-asset exchange trading and post trade technology delivered through a partnership driven approach, is delighted to announce that the Blockchain Board of Derivatives will be the latest Exchange to implement GMEX Fusion, a unique integrated centralised and distributed exchange platform solution.

As one of a new breed of cryptocurrency derivatives exchanges, BBOD is looking to attract multiple diverse participants and provide market-leading liquidity by providing a venue where futures and swaps on Ether and Ethereum-based tokens can be traded. BBOD is partnering with GMEX to deliver a technology solution aimed to attract both retail investors and deliver the scale and functionality to meet the needs of the institutional marketplace. This is a significantly differentiated offering compared to the current crypto trading ecosystems who traditionally suffer from fundamental issues including the lack of basic controls and redundancy, which leads to frequent flash crashes and system downtime. GMEX Fusion was chosen as the preferred trading platform by BBOD following extensive stress and performance testing and has been proven to support significantly higher volumes and matching speeds than other market solutions in addition to advanced crypto asset support.

Hubert Olszewski, Director of Business Development & Communications at BBOD commented, “We have been working with GMEX to create the world’s fastest crypto order matching engine for cryptocurrency traders, empowering them to hedge their positions against price volatility.” He added, “Having a partner who has previously implemented trading solutions and services, and delivers support for both traditional and crypto exchanges, ensures that the project is well on track for launch in June.”

GMEX Fusion, launched in January, has been specifically designed to support the latest technology and business challenges impacting crypto exchanges, traditional exchanges and emerging markets. In collaboration with clients, GMEX Fusion was built for professional traders in an industry where standards exist and need to be integrated with including FIX protocol. Catering for colocation, market surveillance, redundancy and increasingly, where uptime is critical, addressing the need for centralised and distributed technology to be implemented together. The project to implement Fusion at BBOD includes integration with Mobile Trading Partner’s GUI, APIs and post trade application. BBOD introduces the world’s only non-custodial smart contract wallet system for leverage trading allowing traders’ funds to remain under their personal control on the blockchain. As a result, the trader’s crypto-funds never leaves their pocket.

Hirander Misra, CEO of GMEX Group and Chairman GMEX Technologies commented, “We are delivering an advanced exchange trading platform to BBOD with full crypto asset support and blockchain integration to trade Ethereum derivatives with a combination of ultra-fast order matching and security of funds.” He added, “We are looking forward to working with them to support this new unique cryptocurrency derivatives Exchange.”

ISSUE 05 | 38

ISSUE 05 | 39

INVESTMENT

THE TOP 6 UK SECTORS FOR FOREIGN DIRECT INVESTMENT

VENTURE FINANCING INVESTMENTS IN THE SOFTWARE SEGMENT IS RECEIVING THE HIGHEST ATTENTION IN THE JAPANESE ENTERPRISE MARKET, SAYS GLOBALDATA

It has been reported by GOV as per the report UK FDI Investment, Trends and Analysis: 2018 that growth in the value of foreign direct investment positions held in the UK by overseas investors (FDI liabilities) exceeded that of UK FDI positions held abroad (FDI assets) in 2016.

This resulted in the UK’s net FDI position falling from £50.8 billion in 2015 to £12.5 billion by 2016, the lowest net position since comparable records began in 1997.Inspired, Turnerlittle.com took time to consider the projects and jobs created

by FDI in the UK, identifying the 6 sectors benefitting from this type of investment the most. Figures from the Inward Investment Results 2016-17 report released by the Department for International Trade, declare total FDI projects in the UK rose by 2% in 2016-17, from 2,213 (2015-16) to 2,265. This comprises projects by “existing investors” in the UK (1,212) and projects by “new to the UK” investors (1,053.)

Types of foreign direct investment taking place include New Investments – up by 9%, Expansions – down by - 5% and Mergers and Acquisitions (including Joint Ventures) – down by -6% in 2016-17. Further, the USA remains the UK’s largest source of inward investment; providing 557 projects, followed by the rest of Europe, Middle East and Africa (261) and China and Hong Kong – with 160. However, the increase in total FDI projects is not mirrored in total jobs, with roles suffering a -7% fall from 115,974 (2015-16) to 107,898 in 2016-17.

New roles decreasing from 82,650 (2015-16) to 75,226 in 2016-17. In a table created by Turner Little, it is evident where projects are feeding a healthy workforce by comparing total projects and total new jobs in regions across the UK. Turnerlittle.com found that excluding London, the South East (217), West Midlands (151) and the North West (147) hold the highest number of foreign direct investment projects. This equates to 5,432 new jobs in the South East, 6,570 new jobs in the West Midlands and 6,501 new roles in the North West, 2016-17.

Proving FDI to be a real asset in the UK. In terms of industry, Turnerlittle.com found the UK’s Software and Computer Services sector to be number one for FDI, with 418 projects in 2016-17. This total is followed by the Financial Services industry (217) and Business and Consumer Services (211.)

Closing the top six sectors benefitting from foreign direct investment the most are Environment, Infrastructure and Transportation, with 184 FDI projects in the UK, Creative Media (151) and Advanced Engineering and Supply Chain – with a total 146. The top three sectors with the least FDI projects are Chemicals and Agriculture (50), Extraction Industries (49) and Aerospace (47.)

In 2017, venture financing investments in the software segment constituted 46% of the total deal value in the Japanese enterprise market, according to GlobalData, a leading data and analytics company. On the other hand, 38% of the total number of VF deals in the country was in the software segment.

According to Maruti Patnaik, Analyst at GlobalData: “VF investments in the software segment is largely in the customer relationship management (CRM) domain, as enterprises’ ICT investments are driven by the objective of increasing efficiency at their customer service end-points owing to the highly competitive Japanese enterprise market”. VF investments in the IT service segment constitute 38% of the total deal value in 2017. The IT service segment investments are primarily focused on consumer facing enterprises, such as online lending, social networking, online media publishing, e-commerce, and online dating, among others. As Japanese technological advancements are on the forefront of global market, VF companies are investing in Japanese technology enterprises in order to expand their operations and achieve business growth.

Maruti added: “Apart from the traditional segments of software, hardware, and IT services, venture capitalist are investing in mobility-based financial smartphone applications and mobile communication application companies in Japan”.

In addition, venture financing companies are also funding Japanese start-ups engaged in wearables and smart products domain, as they have the potential to disrupt the market dynamics. Going forward, venture capitalists are going to target mobile technology start-ups that are developing consumer oriented applications for real-world use.

ISSUE 05 | 40

ISSUE 05 | 41

INVESTMENT

EFAMA WARNS

A LEGISLATIVE PROPOSAL AT THIS STAGE CAN ACT AS AN ADDITIONAL BARRIER RATHER THAN FACILITATING CROSS BORDER FUND DISTRIBUTION

Today, the Commission is proposing changes that include both the AIFM and UCITS Directives, which are the main pillars of the legislative framework for investment funds. Facilitating cross-border distribution of investment funds in Europe and seeking further ways to deepen the Single Market for investment funds is a goal that EFAMA welcomes. As shown by the important rise of cross-border funds in Europe over the last decade, investment funds are probably one of the best examples to date of a generally well-functioning EU single market in the area of financial services. Yet there is significant room for improvement and further efforts need to be made in order to tackle remaining barriers for the cross-border distribution of investment funds.

However, EFAMA does not believe that adding further regulatory requirements via a legislative review at this stage is the most appropriate means to address existing hurdles to the cross-border distribution of funds.

efama looks forward to continuing the discussion during the

Instead of adding new rules to the existing complex structure, EFAMA considers that the main priority should be to further consolidate and clarify the existing rules and processes.

This would also be in line with the CMU goal of allowing professional and retail investors having access to a larger and more diversified choice of investment opportunities.

Peter De Proft, EFAMA Director General, commented: “The main barriers to the crossborder distribution of funds, as identified by asset managers and investors, are the lack of clarity and transparency of existing rules, along with additional layers of regulatory requirements imposed at national level. [Today’s] proposal unfortunately adds yet a new layer of rules. EFAMA would strongly support practical solutions at the level of ESMA. These will enhance supervisory convergence and legal certainty on the basis of a common understanding among national regulators and can be developed and implemented within a much shorter period of time than a legislative proposal.”

legislative phase.

The European asset management industry has been discussing with the European Commission and European and national regulators over the last two years on ways to appropriately tackle those barriers and has proposed a concrete list of actions to be taken in the short and the longer term, which can be effective in further integrating the EU Single Market for investment funds.

ISSUE 05 | 43

M&A WATCH

ITALMATCH CHEMICALS GROUP acquires the chinese jiayou chemichal, active in the antiscalant phosphonate component business, from ecolab inc.

Italmatch Chemicals, a global specialty chemical group leader in the production and marketing of performance additives for water & process treatment, oil & gas, industrial lubricants and plastics, acquired the Chinese Jiayou Chemical, active in the antiscalant phosphonate business, from Ecolab Inc., the global leader in water, hygiene and energy technologies and services.

More in detail, the deal includes: the acquisition of the entire antiscalant business and assets relating to phosphonate production and sales carried out by Jiayou Chemical Co. (formerly part of Jianghai), located in the Changzhou area (China).

This transaction allows Italmatch Chemicals to strengthen its presence in the Asia Pacific Region with a new plant specialized in production of phosphonates antiscalant. The new site complements the other dedicated plants located in North America and Europe, and makes Italmatch and its brand Dequest the global leader in this business, thanks to its regional presence in the world.

Sergio Iorio, CEO of Italmatch Chemicals Group, stated: “After closing 2017 with important acquisitions in North and Latin America, we are happy to begin 2018 with a very significant agreement for Italmatch Chemicals in Asia Pacific. Through this acquisition, Italmatch Chemicals achieves a global presence and a global market leadership in phosphonates, thanks to a new manufacturing presence in China. Today, China represents a fast-growing market - especially in industrial water and process water treatment – characterized by higher quality and high environmental standards, in line with the Central Government’s objectives to elevate environmental standards of chemical companies, which are fully aligned with Italmatch Chemical’s strategic objectives in the Asia Pacific region. In addition, the manufacturing footprint expansion gained through this transaction strengthens Italmatch Chemical’s ability to supply its largest global customers.”

Maurizio Turci, CFO, Corporate Affairs and HR Director of Italmatch Chemicals Group said: “We have believed and invested in China ahead of the curve in the early 2000s and intend to continue investing here in the future, thanks to the excellent relations with the local financial authorities. We have developed a high-quality growth model in this country, combining industrial corporate practices and respect for local communities, as a means for transforming short-term efforts with sustainable and effective longterm company solutions for expansion in China.”

ISSUE 05 | 44

ISSUE 05 | 45

46

Magazine Tempate

47

M&A WATCH

EOLFI AND ACS-COBRA CONCESIONES ARE COLLABORATING ON A PROJECT FOR COMMERCIAL FLOATING WINDFARMS IN TAIWAN EOLFI, the French pioneer of floating wind farms, and ACS-Cobra Concesiones from Spain have entered into a partnership to ensure and expedite the development of commercial floating windfarm projects in Taiwan. As part of this, Cobra Concesiones has obtained a stake that in the long term will make it the majority shareholder in Eolfi Greater China, a subsidiary of EOLFI. Founded in 2004, EOLFI has headquarters in France and Taiwan. It is a former subsidiary of the Veolia Environment group. The new crossborder partnership comprises a portfolio of four commercial floating windfarms with a total capacity of 2 GW, which is equivalent to around 300 floating turbines. EOLFI relied on Drooms for the implementation of the project so that due diligence process stakeholders were able to view transaction-relevant documentation securely.

From the very start of the project, Antoine Ecochard, CFO at EOLFI France, had been looking for a reliable, ergonomic solution that needed to meet several criteria. First, all documents relating to assets possessed by EOLFI or EOLFI’s Taiwanese subsidiary, Eolfi Greater China, had to be collated in one central, secure location. Second, the documents had to be viewable for potential European and especially Spanish investors.

Antoine Ecochard comments: “Drooms met our strict selection criteria for this cross-border transaction perfectly: an ergonomic, intuitive virtual data room that allows users and project administrators to access documents immediately. The multilingual technical and commercial team were available throughout the entire transaction, so Drooms offers real added value as a service provider.”

Alexandre Grellier, CEO at Drooms, said: “We are particularly proud to have supported this transaction led by EOLFI. Floating windfarms represent a new, promising technology that can contribute a great deal to ecological transformation. They also have the potential to revolutionise the way we generate energy today.”

About EOLFI EOLFI is an independent, mid-sized company founded in 2004 that specialises in developing and generating renewable electricity such as solar, photovoltaic or wind energy. The company focuses on serving communities, industrial companies and investors. As a global operator, EOLFI covers all stages of the value-added chain: project development, financing, construction and operation. EOLFI has mainly concentrated on development activities since 2008, with French and Taiwanese solar and wind projects on land and from 2012 onwards also in the sea.

About Drooms Drooms, the leading provider of Virtual Data Rooms in Europe, allows companies controlled access to confidential corporate data across company boundaries and specialises in providing tailored solutions for the entire value chain and lifecycle management of assets. Confidential business processes such as commercial real estate sales, mergers and acquisitions, non-performing loans transactions and board communications are handled securely, transparently and efficiently by Drooms.

ISSUE 05 | 49

ALEXANDRE GRELLIER CEO AT DROOMS

M&A WATCH

EOS INVESTMENT MANAGEMENT ACQUIRES ATEX

A SUCCESSFUL MULTI-NATIONAL MANUFACTURING COMPANY

EOS Investment Management confirms the acquisition of Atex, the third deal in close succession. Atex is the latest company to be added to EOS IM’s portfolio, which is currently primarily invested into the real economy in Italy due to its competitive privately owned companies, with good profitability, a solid financial structure and high growth potential.

EOS IM has acquired a majority stake in the company. Atex is a multi-national company with a manufacturing presence in both Italy and United States. It is a leader in the production and sale of non-woven fabrics.

Founded in 1993, Atex’s headquarters is located in the north of Italy, and boasts a high value added production facility, utilising a specialist polymer extrusion process. In 2000, after achieving commercial success abroad, Atex built a cutting-edge production plant in Gainesville (Georgia, USA), which has now become Atex Inc. In 2016, Atex had a turnover of about 50 million euro, with strong operating margins (14% Ebitda) and a solid financial position. EOS IM’s acquisition will enable Atex to further develop its ambitious yet pragmatic new industrial strategy, which entails both the enhancing of the key senior team resources and the strengthening of production plants in order to penetrate new market niches. The plan is also to widen the Atex offering through new acquisitions, always under the hallmark of identifying talent, flexibility and quality, which are part of Atex’s historical DNA. This acquisition follows the recent purchase by EOS IM of Eurofiere, a market leading company focused on the design and creation of high quality exhibition stands, through professional engineering, architectural, technological standards, and temporary stores & shops, showroom and interior designs. The transaction also follows the add-on acquisition by an existing portfolio company, Poplast, which specialises in the packaging market. Poplast has in only 12 months achieved a +40% in income and operational margin. Moreover, EOS IM is about to conclude a fourth acquisition of a high potential growth company.

Ciro Mongillo, Founder and CEO of EOS IM, says: “This industrial partnership has a special value! The Atex management team and shareholders will make a significant investment alongside EOS IM in the development project. This is a key part of EOS IM’s culture and approach, whereby it makes deals and establishes partners with converging objectives. The purpose is to pursue a measured financial and strong industrial growth strategy, which is sustainable and profitable for all our investors.”

Marco Giuseppini, Head of Private Equity at EOS, concludes: “Atex represents an example of Italian excellence, which is able to express a high development potential and is ready to further penetrate opportunities on the international market”.

Intesa Sanpaolo, also through its Branch in New York, acted as a lending bank for the transaction. While Banca IMI (Intesa Sanpaolo Group) acted as Mandated Lead Arranger, Bookrunner and Agent. EOS IM has been assisted by the Banking team at McDermott Will & Emery for legal aspects and for fiscal aspects related to Atex Inc. Ludovici Piccone & Partners law firm has assisted EOS IM for the fiscal due diligence of Atex SpA, while EY Transaction Advisory Services and KPMG have acted as advisors respectively for the accounting due diligence and the ESG due diligence. The commercial/ strategic due diligence has been carried out with the support of Roland Berger. Intesa Sanpaolo Group has been supported, for the legal aspects related to the transaction, by Gatti, Pavesi, Bianchi and by the American firm Sheppard Mullin Richter & Hampton LLP.

Max Castellani, Luca Di Benedetto and Mario Di Benedetto, the Group’s senior management, comment “We are very satisfied with this important achievement, because EOS IM is the ideal partner to pursue not only a financial path, but also strong industrial growth. Atex has all the credentials to gain the leadership in the sector of non-woven fabrics on an international scale.”

ISSUE 05 | 50

ISSUE 05 | 51

M&A WATCH

NEW VENTURE TO CATALYZE NEXT GENERATION OF PROMISING ALTERNATIVES MANAGERS The Alaska Permanent Fund Corporation, the Public Institution for Social Security of Kuwait, RPMI Railpen and Wafra, a leading manager of private equity and alternative investments, today announced that they have established a new entity called Capital Constellation.

Constellation will provide catalytic investment capital to next generation private equity and alternatives managers and will be advised by Wafra. Combined, the founders will initially commit $700 million to the venture and Constellation is expected to deploy over $1.5 billion in the next five years. Constellation will bring together the expertise and capital base of three of the world’s premier institutional investors, spanning Europe, North America, and the Middle East. Constellation leverages Wafra’s existing capabilities to form partnerships with promising investment teams who demonstrate the investment and operational expertise required to generate strong investment performance and business growth.

Constellation’s mission is to assist talented alternative investment managers in breaking through the challenges of initial fundraising, specifically by providing strategic and operational support and an aligned, substantial and long-term capital base. In return, Constellation’s unique structure is designed to generate consistent, long-term value for its members’ pensioners and citizens.

“We are thrilled to bring together three of the world’s premier institutional investors to establish Constellation,” said Russell Valdez, Senior Managing Director of Wafra and a founding Board member of Constellation. “We believe this innovative investment platform will be a key resource for investment managers as they launch and build the next generation of successful and enduring private equity, real estate and other alternative investment franchises.”

“We are pleased to create a platform that leverages our shared competitive advantages of stability, long-term orientation, and scale. Constellation adds a unique source of value to our portfolio that will help us continue to deliver substantial and lasting value to the State of Alaska,” added Steve Moseley, Head of Private Equity and Special Opportunities at APFC and a founding Board member of Constellation.

“Combining forces with leading institutional investors through Wafra will enable us to find future stars in the investment space. Looking for long-term partnerships should be a key to our success,” stated Meshal Al-Othman, Chief Investment Officer of PIFSS. Paul Bishop, Railpen Investment Director and a founding Board member of Constellation, said: “We believe Constellation provides us unmatched access to the next generation of successful alternatives managers, and will be a source of long-term returns that will help us achieve our mission to pay members’ pensions securely, affordably and sustainably. We think the historical outperformance of first-time funds is meaningful, as is the participation Constellation receives in GP economics.”

“We are honored to be selected to advise this innovative joint venture and investment program,” said Fawaz Al-Mubaraki, Chief Executive Officer and Chief Investment Officer of Wafra. “Investing in partnerships is central to Wafra’s mission. I envision the Constellation platform as a symbiotic strategic partnership not only among asset owners seeking access to an outperforming asset class but also among next generation alternative investment firms and their clients.”

In conjunction with the formation of the joint venture, Constellation today announced its first strategic partnership with Astra Capital Management LLC, a private equity manager specializing in growth buyouts in the communications and technology services industries. Astra’s founders have over 100 years of industry, investment and operating experience in the communications and technology industries, and have previously worked at leading institutions with long histories of successful investing in the sector. Constellation has committed $100 million to Astra and will work closely with their leadership to support Astra’s mission and growth.

“We are excited to partner with Constellation as we begin our next phase of growth,” said Mark Johnson, Co-Founder and Managing Partner of Astra.Astra Co-Founders William Kennard and Kevin Beebe added that “Constellation’s expertise and broad reach will provide a great resource to our fund and portfolio companies.”

A Leicestershire optometrist has undergone a management buy-out after landing a funding deal from Ashby de la Zouch alternative finance specialists ThinCats.

THINCATS PROVIDES CLEAR VISION FOR MBO

Twelve years after buying a partnership share in Edmonds & Slatter, Tim Cole, a dispensing optician and Saggar Hirani have bought out the shareholding of Karyn Slatter, who had been looking to exit the business, using funding sourced from ThinCats.

ThinCats head of credit Simon Brook said: “This sort of business is superb from a credit perspective. People will keep going back to the same optician, generating regular cash flow. E&S, which offers a higher quality of service, does not seem to have been impacted by competition from the likes of Specsavers. It’s a nice deal.”

Banks don’t necessarily take the same view, says Simon. He added: “The asset cover ratio needed for the MBO was 20-times – not something high street lenders are comfortable with. Tim and Saagar initially approached the business’ bank, which first offered them less than they required and subsequently dropped the offer further. Another bank offered them significantly less so that didn’t work either, as the vendor wanted the full amount up front. Things took a turn for the better when the firm’s accountant contacted East Midlands-based brokers, Reservoir Finance.”

Stuart Milton from the Reservoir Finance said: “Most businesses really don’t seem to be aware of ways of raising capital other than through high street lenders.”

Reservoir, however, did. The broker contacted ThinCats and another alternative lender. Stuart said: “Within a couple of days of contacting ThinCats, we had an agreement in principle for the facility.” The local ThinCats business development manager, Matthew Lawrence, met the management, saw the premises and labs, spoke to his credit committee and was able to quickly agree the full sum. “It’s the speed of the process and the understanding of the business that made the borrowers decide to go with ThinCats,” said Stuart: “A large part of it was Matthew’s availability to meet the management.” After the MBO, the business will be run through a limited company, with Tim Cole and Saagar Hirani as joint owners.

Tim said: “We’re delighted to have found ThinCats through Reservoir Finance. From the first meeting with Matthew Lawrence it seemed clear that they had an appetite to lend and would structure a bespoke loan to meet our needs, rather than provide something off the shelf. Part way through the process it became clear that it would be easier to pay Karyn in full on day one and after quick consideration they were able to lift their offer by 20% to suit. This enabled us to fully focus on running the business from day one.”

“We are delighted that our first strategic relationship will be with Astra, a firm with the talent to ascend to great heights,” said Daniel Adamson, Managing Director of Wafra and President of Constellation. “We have already begun supporting Astra as a strategic partner across three continents, working closely with Mark, Bill, Kevin, Todd, Matt and the rest of their investment partners to help them realize their long-term goals.”

ISSUE 05 | 52

ISSUE 05 | 53

M&A WATCH

GIDE ADVISES

WENDEL ON THE SALE OF ITS INTEREST IN SAHAM

PARK PLACE TECHNOLOGIES ACQUIRES

IRELAND-BASED ORIGINA TECHNOLOGY SERVICES’ HARDWARE MAINTENANCE BUSINESS

Gide’s Casablanca office assisted Wendel on the sale of its equity interest in the holding company of the Saham group for USD 155 M (EUR 125 M).

This transaction took place alongside the sale by Saham group of its insurance division to South Africa-based Sanlam, the leading financial services provider in Africa, for more than USD 1bn. It is subject to the completion of the transaction between the Saham Group and Sanlam, which should occur in the second half of 2018.

Park Place Technologies announced today it has completed the acquisition of Origina Technology Services, the Ireland-based hardware maintenance business of Origina, headquartered in Dublin.

Through this acquisition, Park Place Technologies positions itself as the largest third-party maintenance provider in Ireland. As a result, Park Place Technologies will increase its ability to service its client portfolio in the region, further enhancing its European presence and expanding the company’s depth of IBM expertise in Ireland.

Wendel will also get an earn-out, with a portion of the capital gains on any disposal of the remaining businesses of Saham Group (Customer relationship centers, Real estate, Healthcare and Education) that would take place in the next 24 months for a consideration exceeding certain pre- defined thresholds.

“As an independent provider of maintenance for data centre assets, Origina Technology Services has distinguished itself as a leader in the hardware maintenance category in Ireland,” said Ed Kenty, Chairman and CEO of Park Place Technologies. “Origina Technology Services’ technical expertise and customercentric approach has enabled the business to achieve tremendous success and rapid growth in data centre maintenance services.” Chris Adams, President and COO of Park Place Technologies, said, “Origina Technology Services’ growth in hardware maintenance is a reflection of the company’s investment in this area of their business and their excellent sales organisation, which complements our own talented team. We are excited to integrate Origina Technology Services into Park Place Technologies’ hardware maintenance business as we enhance our on-the-ground capabilities, offering faster service to customers in Ireland and beyond.”

Wendel invested EUR 100M in the holding company in 2013 for 13.3% of its share capital, to finance Saham’s African growth and diversification.Gide Casablanca assisted Wendel with a team led by partner Simon Auquier, and Chloé Joachim de Larivière.Allen & Overy (Casablanca office) assisted the purchaser.

About Gide Gide is a premier international law firm and the first to have originated in France. Founded in Paris in 1920, the firm now operates from 14 offices throughout the world. It has 600 lawyers, drawn from 35 different nationalities. Gide offers some of the most respected specialists in each of the various sectors of national and international finance and business law. Present in Casablanca since 2003, Gide is one of the very first business law firms to have set up in Morocco. Since the union of its practices with Cuatrecasas, in November 2014, Gide Cuatrecasas Casablanca is today one of the few law firms in Morocco to be able to offer legal assistance covering all fields of Moroccan and international business and finance law.

ISSUE 05 | 54

“Origina Technology Services has successfully harnessed the power of the collective support ecosystem to evolve from its origins as an IBM Business Partner and become an independent provider,” said Tomás O’Leary, CEO, Origina. “As our hardware maintenance business integrates with that of Park Place Technologies, our customers will benefit from Park Place’s scalability, products, services and support, including the company’s recently launched ParkView® service. Throughout this integration, Origina Technology Services’ customers will continue to receive value-based and cost-effective services, along with tailored support, further enhancing the overall customer experience.”

ISSUE 05 | 55

GLOBAL MARKETS

HUSSEIN SAYED, COMMENTS ON THE POTENTIAL MEETING BETWEEN DONALD TRUMP AND KIM JONG UN. President Trump agreeing to meet the North Korean leader Kim Jong Un pleasantly surprised the markets on Thursday. Just a couple of months ago, the two leaders were in in a rather childish spat over whose nuclear button was bigger and hurled insults at each other, at every opportunity. Now, they are about to make history, not only with a possible reconciliation, but also because this would be the first ever meeting between a U.S. president and a North Korean leader. Investors are hopeful that there will finally be a diplomatic breakthrough.

Although relations between the U.S. and North Korea were not a major market concern, an improvement will still boost appetite, particularly in South Korean stocks. The KOSPI is the best performing Asian stock index today rising as much as 2%, before easing to 1% higher. The safe haven Yen declined early Friday, falling to its lowest level in a week against the U.S. dollar.

As expected, Bank of Japan kept monetary policy unchanged, holding overnight interest rates at -0.1% and capping 10-year bond yields at about 0%.

Trump signs tariffs on steel and aluminium Trump’s tariffs are no longer just a threat, they’re now official.

The President followed through on his promises yesterday, and signed two orders that implement tariffs on imported steel and aluminium. The good news was that Canada and Mexico were exempted. Commodity prices fell in Asia with iron ore leading the losers and declining more than 5%. This has limited Asian stock appreciation as miners were dragged lower. But overall, most major indices are higher for the day. If market participants feared a trade war, reactions would have been very different to what we saw today. Commodity prices should have been sharply lower, investors would have sold their high yielding assets and run for the safety of treasuries, gold and the Yen. Given the limited market reaction to Trump’s tariffs, investors seem to believe that Trump’s actions won’t drive a full-blown trade war. However, nothing should be taken for granted, and we will have to wait for the official response from the E.U. and China. Draghi comments weigh on the Euro Mario Draghi’s words had a stronger impact than the ECB’s statement, which finally dropped the line that talked about the possibility of increasing the asset purchase program, if the economic outlook deteriorated. The slightly hawkish ECB statement sent EURUSD to 1.2446, but the currency pair took a U-turn after Draghi started speaking.

Mr. Draghi said interest rates will remain at their present levels for an extended period of time and well past the horizon of net asset purchases, suggesting that interest rate differentials between the ECB and the Fed will remain high for a prolonged period of time. The ECB also lowered their 2019 inflation forecast and warned that underlying inflation remains subdued, which is another factor affecting the single currency.

HUSSEIN SAYED CHIEF MARKET STRATEGIST AT FXTM

ISSUE 05 | 56

M&A WATCH

PCI PHARMA SERVICES ANNOUNCES INTENT TO ACQUIRE AUSTRALIA-BASED PHARMACEUTICAL PACKAGING PROFESSIONALS Leading pharmaceutical outsourcing services provider PCI Pharma Services has announced its intent to acquire Australiabased Pharmaceutical Packaging Professionals. The acquisition of PPP, a leading provider of clinical trial manufacturing, packaging, storage and distribution services, establishes a presence for PCI in Australia, viewed as pivotal to continued growth and expansion in the Asia Pacific region. Australia is one of the leading countries for Phase 1 studies globally, and with this acquisition, PPP’s Phase I offering also enables PCI to better support customers from early phases of clinical development through to commercial launch.

Located in Melbourne, Victoria, Australia, PPP is a recognized leader in clinical trial supply with a comprehensive suite of support services including early clinical phase sterile and non-sterile drug manufacture of investigational medicines, packaging and labeling services for investigational products, as well as logistical services including storage and distribution to global investigational sites. PPP’s expertise supports projects across a range of temperature conditions including controlled room temperature, 2-8˚C, -20˚C, and -80˚C environments, which expands PCI’s existing capabilities in storing, packaging, and shipping Cold Chain products. Experiencing significant demand for its services, PPP is currently undertaking a facility expansion and upgrade to add additional storage and distribution services, labeling and packaging rooms, Grade D manufacturing as well as sterile-fill manufacturing capabilities for Phase II clinical studies.

PPP’s suite of services complements PCI’s expansive global portfolio of clinical and commercial services, including clinical and commercial scale drug manufacturing, packaging and labeling of clinical trial medicines, global logistical services to investigational sites and commercial contract packaging services. PPP’s strong market presence with Phase I units as well as the company’s geographic reach and experience working with U.S., European, and Asia Pacific customers in countries including China, Korea, Vietnam, Sri Lanka, Taiwan, Malaysia, Thailand and New Zealand, will allow PCI to continue to grow its capabilities in the region.

“The addition of PPP is significant for our continued global expansion” stated Bill Mitchell, President and CEO of PCI Pharma Services. “The Asia-Pacific region, including Australia, is a very attractive and growing segment in the clinical trials market. Our customers continue to seek new markets both for execution of their clinical studies as well as partners that can support them through the supply chain.” The addition of PPP will mark PCI’s fifth acquisition outside of the U.S. in five years, which underscores PCI’s continued commitment to growth and geographic expansion. “This opportunity is part of our next logical phase of geographic expansion and enables us to support our customers in their long term global growth strategies. Additionally, PPP’s highly experienced management team has a strong track record in the clinical trials marketplace and we are excited to welcome them to PCI.”

PPP’s founder and CEO, Craig Rogers stated “We look forward to joining PCI given its market leading presence and believe PPP’s Phase I offering and Asia Pacific location provides for a powerful combination and strong synergies. I am excited for my new role as Senior Vice President of PCI Asia Pacific and supporting our customers in this expanding region.”

In October of this past year, PCI announced the acquisition of pharmaceutical and healthcare contract packaging services provider Millmount Healthcare, based in Dublin, Ireland, and located in the European Union. The move added four Dublin based facilities to PCI’s global supply network and provided a continued growth platform for PCI’s expansion, furthering its commitment to be the partner of choice to meet the global market needs of its customers in delivering lifesaving medicines to patients around the world.

In addition to global acquisitions, PCI has been actively investing in its core business through a number of key investments and site expansions. PCI announced Cold Chain and Ultra Cold Chain expansions at its U.S. based Philadelphia and Rockford locations in support of temperature controlled packaging, storage and distribution. PCI has also undertaken site expansions of its Tredegar and Bridgend facilities in the United Kingdom. New packaging lines have been installed in its commercial packaging business, as well industry leading expansion of its global capacity in Serialization and Anticounterfeiting technologies. These investments support the recent US DSCSA and EU FMD regulations, as well as advancing Serialization requirements in emerging market regions such as China, South Korea, Turkey, Brazil and others.

PCI, headquartered in Philadelphia, PA, is principally owned (on behalf of its clients) by Partners Group, with partner investors Thomas H. Lee Partners and Frazier Healthcare Partners. Lazard Middle Market LLC acted as the exclusive financial adviser to PCI for this transaction. Johnson, Winter & Slattery and Goodwin Procter LLP acted as legal counsel to PCI for this transaction. PCI engaged global professional services firm Alvarez & Marsal to provide due diligence services.

ISSUE 05 | 58

ISSUE 05 | 59

BUSINESS

UK PROGRESS ON OPPORTUNITIES for women in the workplace slows

Closing the gender pay gap in the UK could boost women’s wages by £90bn per annum, increasing women’s incomes on average by £6,300 per woman per year.

Identifying causes of and remedies for the gender pay gap To identify long-term solutions to end pay disparity, PwC economists identified the underlying common key drivers of the gender pay gap across all OECD countries. The results show larger government spending on family benefits significantly pushes down the gender pay gap, which suggests that greater availability of affordable childcare could improve female participation in the workforce by helping parents, especially mothers, return to work. Countries with a larger share of employers who are female also tend to have smaller pay gaps, which suggests that having more female entrepreneurs and women in decision-making positions increases the likelihood of promoting gender equality policies.

This implies more support to promote female entrepreneurship, such as improving access to finance for female-run businesses, mentoring programmes etc. could help foster gender equality, with positive impacts on the pay gap.

The research shows that a one percentage point increase in the proportion of female business owners, with more than one employee, is associated with a .53 percentage point decline in the gender pay gap.

The occupational segregation of women, particularly in lowpaid services sectors, is associated with higher pay gaps.

Many women often have to combine work with ongoing caring commitments, which necessitates part-time or flexible working.

However, their opportunities are constrained by the lack of flexible or part-time roles available for senior and higher-skilled jobs, which exacerbates the pay gap.

New PwC research shows that the UK is not making progress fast enough to improve female economic empowerment in the workplace. Despite improvements since 2000, these gains have been outpaced by other countries’ efforts. In particular, slow progress in closing the gender pay gap, coupled with a persistent low share of females in full-time employment, has put the brakes on the UK making bigger strides towards gender equality in the workplace.

The latest Women in Work Index finds the UK has fallen slightly from 14th to 15th place in a ranking of 33 OECD countries based on five key indicators of female economic empowerment. Although labour market conditions for women improved, the UK was outpaced by better performance from OECD countries such as Poland, which made significant gains in reducing female unemployment. Over the longer-term since 2000, the UK’s position has improved from 17th place and CEO OF HONCHO it compares well to other G7 economies, being second only to Canada. The Nordic countries continue to lead the Index with Iceland, Sweden and Norway rated as the top three countries for opportunities for women in the workplace.

GAVIN SEWELL

Advances in closing the gender pay gap varies across UK regions. Northern Ireland has led the way in closing its gender pay gap since 2000, reducing it from 22% to 6%, the lowest in the country. This has been driven by the share of women working in public administration, a sector with relatively high pay and a relatively low pay gap. In contrast, London has made the slowest progress, only managing a 3% reduction in its pay gap from 22% in 2000 to 19% in 2017. The capital’s pay gap increased in 2017, up from 17% in 2016 due to a rise in the gender pay gap in low paying sectors in the region.

The research found that financial services, and agriculture and forestry sectors have seen the biggest improvements in their gender pay gap over the past year, although financial services still has the highest overall gap. The pay gap has increased in accomodation and food services, administrative and support services, mining and education sectors.

Yong Jing Teow, economist at PwC, said: “Disparities in average pay for men and women exist across all regions of the UK. While great progress is being made in some areas, sustained business action is needed to ensure that these gains continue. We need to ensure we’re implementing long-term solutions, not just quick fixes, to close the pay gap for good.” Closing the gender pay gap in the UK could boost women’s wages by £90bn per annum, increasing women’s incomes on average by £6,300 per woman per year.

ISSUE 05 | 60

Businesses can play a role in improving female representation at senior levels by making flexible work opportunities more widely available and taking active steps to build a pipeline of female leaders.

Laura Hinton, executive board member and head of people at PwC, said: “Our research shows that there are common and persistent factors that contribute to the gender pay gap in all countries. Despite the push for organisations to publish their gender pay gaps in the UK, progress will be slow until businesses start addressing the complex underlying reasons. Merely reporting numbers without concrete action won’t change anything.

“Action needs to focus on bringing more women through to higherpaying and higher-skilled roles, such as those in the technology sector, providing greater flexibility so that part-time working isn’t the default option, and encouraging more men to take up shared parental leave, so that it’s not always women who take extended breaks from the workplace. The success of these business-led actions could be enhanced by policy levers that support women to have a greater participation in the workforce - such as shared parental leave incentives and better availability of affordable childcare.”

ISSUE 05 | 61

INSIGHT

SECTOR WATCH: TECHNOLOGY

LIVINGSTONE STRENGTHENS LONDON TEAM WITH FOUR NEW HIRES

Livingstone has announced the appointment of Jake Stacy, Joe Barnett, Niamh Buckley and Jo Charles at its London office, as it invests further to grow its team.

Jake Stacy joins Livingstone’s Media & Technology team as an Associate. After graduating from the University of Adelaide in 2012, Jake qualified as a Chartered Accountant at Deloitte. During this time, Jake worked in the M&A team, providing advice to midmarket clients across a range of sectors. Jake joined Livingstone

JAKE STACY

in November 2017 after relocating to London from Australia.

Joe Barnett qualified as a Chartered Accountant at EY in 2017.

During his time at EY, he worked in the Transaction Advisory Services department, advising clients on over twenty transactions across a variety of sectors. Joe joined Livingstone in October 2017 with a focus on the Media & Technology sector. Niamh Buckley qualified as a Chartered Accountant with Deloitte, where she worked in the Restructuring Services team.

During her time at Deloitte, she also completed a nine month secondment at Wells Fargo Capital Finance. Niamh joined

JOE BARNETT

Livingstone January in 2018, focusing primarily on the Business Services sector.

After graduating from the University of Nottingham, Jo Charles qualified as a Chartered Accountant with KPMG. He worked in the Corporate Finance team, advising clients on business valuation issues, and in the M&A Integration team, providing strategic integration and synergy realisation support. Jo joined Livingstone in February 2018 and is focusing on the Media & Technology sector.

Patrick Groarke, Partner at Livingstone comments: “In such a

NIAMH BUCKLEY

competitive market for young but experienced M&A talent, we are delighted to have been able to attract such an impressively capable group of individuals. We remain dedicated as a firm to developing talent up through the organisation, delivering the highest levels of hands-on technical support for clients as we advise on more complex transactions.”

JO CHARLES ISSUE 05 | 62

SECTOR WATCH: TECHNOLOGY

IRIDIUM CERTUS DISTRIBUTION EXPANDS ENABLES GLOBALLY ‘CONNECTED VEHICLES’, ASSETS AND TEAMS

Unlike geostationary networks with limited global reach and bulky terminals, the unique architecture of the Iridium® constellation, featuring 66 interconnected low-earth-orbit satellites, enables global coverage and creation of costeffective, highly mobile, small-form-factor antennas and terminals. This results in improved access, particularly when in rugged terrain such as mountainous regions, and makes satellite communication services a viable option for new markets and geographies.

With the addition of these six service providers, 12 companies to date have signed on to provide land-mobile-related industries with Iridium Certus service. Previously, six companies were announced, including Applied Satellite Technology Limited, Arion Communication Co. Ltd, Kaigai Communication Corporation, MVS USA Inc., Network Innovations and Spacenet. Iridium plans to announce additional service providers in the coming weeks. Iridium Certus is enabled by the Iridium NEXT satellite constellation, which is in the process of replacing the original Iridium network. To date, there have been four successful Iridium NEXT launches, deploying more than half of the new constellation. Four additional launches are planned for 2018.

Iridium Communications Inc. today announced the next wave of Iridium Certus service providers selected to deliver this next-generation satellite broadband solution for land-mobile applications. This group of six world-class service providers includes, Globalsat, IEC Telecom, Marlink, McQ, Pivotel and Tesam Argentina S.A.Together, these companies further expand the footprint for Iridium Certus land-mobile services.

The introduction of Iridium Certus and the new Thales MissionLINKTM terminal is a game-changer for off-the-grid public safety, utility, oil and gas, military and non-government organization applications. Adoption of this technology will create the first truly globally ‘connected vehicles,’ allowing drivers and their passengers to be more productive on-the-move. The solution offers a seamless broadband connectivity experience that can be configured to automatically switch between Iridium Certus or local cellular infrastructure.

This ensures the most cost-effective option is in use regardless of deployed environmental conditions or location worldwide. As a result, organizations are empowered to maintain capabilities like real-time vehicle tracking and immediate transmission of telematics information, while supporting internet, phone and email requirements.

Already undergoing live testing, the Thales MissionLink terminal will debut at speeds of 352 kbps, later upgradable to 704 kbps through a firmware update. Brian Aziz, director of Satcom Solutions for Thales Defense & Security shared, “The network performance results that we’ve confirmed through our testing have surpassed our expectations including achievement of 352 kbps data speeds and clarity of Iridium’s high-quality voice calling. Starting this month, we will transition to field customer trials and commence high-rate production of our terminals in order to meet the demand of orders that we have already received.”

Aziz continued, “The level of engagement from Iridium’s service providers has been tremendous, and we anticipate Iridium’s certification of the Thales MissionLink terminal next month as we continue to make progress towards commercial introduction in mid-2018.”

ISSUE 05 | 64

ISSUE 05 | 65

SECTOR WATCH: TECHNOLOGY

NIGEL GREEN FOUNDER AND CEO OF DEVERE GROUP

In the last few days, South Korea’s Finance Supervisory Service has signalled the government’s co-operation in plans for selfregulation; the Swiss Financial Market Supervisory Authority has announced it is to treat some cryptocurrency offerings as securities; the Securities and Exchange Commission of Zambia has issued a public notice on cryptocurrencies; and Spain is reportedly drafting legislation that will help attract cryptocurrency and blockchain companies to the country.

CRYPTOCURRENCY REGULATION IS NECESSARY AND MUST BE WELCOMED Cryptocurrency regulation is necessary, on its way, and the vital work being done by many international financial watchdogs and lawmakers must be championed, says the boss of one of the world’s largest independent financial services organisations. The comments from Nigel Green, the founder and CEO of deVere Group, come on the day the UK’s Treasury

Mr Green observes: “Governments and financial regulators around the world are increasingly focusing their attention on cryptocurrencies. Their vital work to warn investors of potential risks, to crackdown on criminal activity, and to potentially establish regulations must be championed. Since the launch of Bitcoin in 2009, digital currencies have been operating in a regulatory vacuum.

However, I hope and believe that this is soon to change as international financial watchdogs respond to the growing interest in, and popularity of, cryptocurrencies. To my mind, there is no question that regulation is necessary and is on its way. It is clearly an area in which there is an enormous need for a robust international regulatory framework and strict ongoing supervision.”

He continues: “One of the best ways to address the regulatory issues is via the exchanges. Nearly all foreign exchange transactions go through banks or currency houses and this is what needs to happen with cryptocurrencies. When flows run through regulated exchanges, it will be much easier to tackle potential wrongdoing, such as money laundering, and make sure tax is paid. For this to happen, banks will need to open accounts for exchanges, which is why they must be regulated.”

The deVere CEO concludes: “Robust regulation that is devised, implemented and enforced by international financial regulators will mean further protection for the growing number of people using cryptocurrencies, the less likely it will be that criminals will use these digital payment methods, the less potential risk there will be for the disruption of global financial stability, and the more potential opportunities there will be for higher economic growth and activity in those countries which introduce it.”

Committee launches an inquiry into cryptocurrencies to investigate their benefits and risks and to assess how the new technology could be regulated.

ISSUE 05 | 66

ISSUE 05 | 67

SECTOR WATCH: TECHNOLOGY

EIGHT ADVISORY EXPANDS UK BUSINESS IN RESPONSE TO HIGH DEMAND FOR TRANSACTION SUPPORT Eight Advisory, a leading financial and operational consultancy firm specialising in transactions, restructuring and transformation, has seen significant growth in UK activity in 2017 with the London office advising on 16 successfully completed transactions during the year.

These transactions include both corporate client transactions, such as preparing the vendor due diligence for L’Oreal on the sale of The Body Shop to Natura Cosmetics, or advising Sodexo on the acquisition of Prestige Nursing & Care; and private equity clients such as preparing the vendor due diligence for Blackstone on the sale of Alliance Automotive to Genuine Parts Company. Eight Advisory was set up in France in 2009 to address a growing demand from company executives, shareholders, private equity funds, banks and potential investors for dedicated independent financial and operational advice around transactions, restructuring and business transformation decisions. Since its creation by eight former Big Four partners, Eight Advisory has grown to over 30 partners and 300 staff with offices in Paris, Lyon, Nantes and London. Further European expansion will follow in 2018.

Eight Advisory has also set up an international alliance, Eight International, bringing together like-minded independent business advisory firms in France, UK, Spain, Italy, The Netherlands, Poland, Russia and India.

Eight Advisory UK is headed by Justin Welstead, founding partner of Eight Advisory France, and Ben Norris, both Partners in the firm.

Justin Welstead, Managing Partner, Eight Advisory UK said: “We are thrilled that Eight Advisory continues on its growth trajectory in the UK in only our second year. Our excellent client portfolio and high profile transactions are testament to the hard work of the team and the high quality of service we can offer our clients. We have ambitious plans both in the UK and globally to be one of the world’s leading business advisory firms. Despite uncertainty around the EU Referendum, we have already seen greater demand from our clients for advisers who can respond to all their financial and strategic challenges around the world. Through the Eight International alliance, we combine financial and/or operational skills tailored to each situation, coupled with a perfect knowledge of the local market specifics, while maintaining the entrepreneurial spirit and the level of excellence that characterizes each of our alliance’s firms.”

JUSTIN WELSTEAD

MANAGING PARTNER AT EIGHT ADVISORY UK

ISSUE 05 | 68

70

Magazine Tempate

71

SECTOR WATCH: TECHNOLOGY

THE ALCOSABER NEW INSTANT RESULTS BREATHALYSER FOR BUSINESSES

suzannah robin

alcohol and drug safety expert at alcodigital

In 2014 councils across the UK piloted an on-the-door breathalyser scheme to help reduce binge-drinking and tackle violence at night-time venues. As a result, some areas recorded a reduction of up to 32% in violent crime.

Pubs and clubs have continued with the initiative, with many landlords and club owners citing the tests as helping to reduce arguments and confrontations with door staff after they’ve refused entry.

With the scheme receiving such positive backing, alcohol safety and training specialist AlcoDigital, which works with dozens of companies across the UK addressing their alcohol and drug testing procedures and policies, has launched a new instant results easy-read breathalyser to the business market called the AlcoSaber. The AlcoSaber (£295 + VAT each) is a simple to use, innovative breathalyser and the newest design concept in alcohol testing for companies looking to carry out quick and simple screening that delivers instant results.

The absence of a mouthpiece makes the AlcoSaber ideal for testing individuals in quick succession and provides a low maintenance, cost-effective solution for companies requiring a rapid and immediate screening process.

ISSUE 05 | 72

Not only is it ideal for rapid response testing of potential patrons at pubs and clubs, it can also be used by other businesses to check employees as they arrive at work. Those being tested by the AlcoSaber simply blow into the air hole on top and a LED light will clearly display a red for positive or green for negative in seconds. The AlcoSaber is the only breathalyser of this type to feature a digital display reading indicating the level of alcohol detected.

Suzannah Robin, who has been an alcohol and drug safety expert at AlcoDigital for over 14 years, said: “Safety is a huge concern for all businesses. The success of the on-the-door breathalyser trials carried out at pubs and clubs across the UK demonstrate the difference a change in policy can make to the wellbeing of not just staff and customers, but whole communities. The new AlcoSaber is the ideal device for instant, accurate screening that provides clear, easy-to-read results.”

ISSUE 05 | 73

SECTOR WATCH: ENERGY

MASTERCARD AND M-KOPA SOLAR PARTNER TO LIGHT UP HOMES AND BUSINESSES IN AFRICA

AT MOBILE WORLD CONGRESS, MASTERCARD AND M-KOPA TODAY ANNOUNCED a partnership that will provide Africans living without electricity a simple way to light up their homes and businesses.

M-KOPA, which already provides affordable, safe and clean energy to 3 million people in East Africa, will pilot Mastercard’s Quick Response payment technology in Uganda to extend the reach of its pioneering pay-as-you-go solar program.

Masterpass QR, an open and interoperable technology will create a new payment channel for M-KOPA’s pay-as-you-go customers outside for Kenya. The network of mobile network operators and banks using Masterpass QR will help M-KOPA to scale and grow across Africa without requiring additional technology investments. Masterpass QR is currently available in Ghana, Kenya, Nigeria, Rwanda, Tanzania and Uganda.

“We may take for granted our ability to produce light with the simple flick of a switch. But for many around the world, simple things like having electricity can be life changing,” said Kiki Del Valle, senior vice president, Commerce for Every Device, Mastercard. “By using our digital payment capabilities, we want to make it easy for people to access reliable and regular sources of energy and become more economically resilient – earn a livelihood by working from home, keep shops and businesses open for longer and study after dark.”

An estimated 16 percent of the world’s population — 1.2 billion people — have little or no access to electricity. In SubSaharan Africa alone, 625 million people lack access to electricity, relying on bio and fossil fuels such as wood, charcoal and kerosene.

Solar is an independent way for people to power homes and businesses but requires a large, one-time investment. With pay-as-you-go financing, M-KOPA customers purchase a solar home system on credit and make small daily payments using mobile money for less than what they previously spent on hazardous, kerosene lamps. Customers will now be able to make daily payments or top up the solar accounts easily by either scanning a Quick Response code from their smartphone or by entering the merchant ID associated with the QR code into their feature phone.

After making successive payments towards their solar system for roughly a year, customers build creditworthiness and can purchase other products, such solar-powered televisions, energy-efficient cook stoves and smartphones on a similar payment scheme.

“We’ve proven that the pay-as-you-go solar model works in East Africa, but the off-grid market in Africa is tremendous. Our partnership with Mastercard provides the roadway for more solar services and infrastructure across the continent,” said Nick Hughes, co-founder and chief product officer, M-KOPA Solar. “QR technology holds great opportunity to extend the range of payment channels for customers and represents a step-change in our mutual goal to light up homes and businesses in Africa.”

Following a successful pilot, Mastercard and M-KOPA plan to extend the program across East Africa. Mastercard will also work with mobile network operators to extend this model to other utilities like water and gas in developing markets across the world. This digital service innovation will open up new business opportunities for telecommunication companies and mobile network operators and evolve their business model beyond providing airtime and data services.

ISSUE 05 | 75

SECTOR WATCH: ENERGY

ARMOR TAKES UP A LEADING ROLE AT THE INAUGURAL

INTERNATIONAL SOLAR ALLIANCE SUMMIT IN DELHI

A response tailored to the needs of countries with “high solar potential” The 121 countries concerned by the Solar Alliance, all located between the tropics of Cancer and Capricorn, are mostly developing economies. They require low cost energy solutions adapted to local contexts and, if possible, which are independent from the distribution monopolies of the large local or national energy companies.

Multiple pilot projects conducted by ARMOR in Africa and the Middle East have already confirmed the ability of the company’s solar products to meet these requirements. In Africa and Palestine, ARMOR has established a partnership with Electriciens Sans Frontières to provide schoolchildren with kits combining a low-consumption lamp with an ultra-resistant solar charger, incorporating the ASCA© film. It is a project that supports both education and social life within the community, which ARMOR is in the process of testing in different forms in Mali and Niger, in partnership with Orange Labs.

“Print big films for a small footprint” The ASCA© film is the product of a low carbon process and is 100% recyclable: features likely to attract the attention of participants at the International Solar Alliance summit. It is the objective of ARMOR to reduce the environmental footprint of its industrial production down to an absolute minimum, in the interests of society as a whole. ‘‘We print big films for a small footprint”,summarises Hubert de Boisredon, who also stresses the absence of silicon and rare metals during the production of the films, in addition to an energy payback time 2 or 3 times fasterthan with traditional panels. The challenge is significant in the current climate context, as we are talking about nothing less than the future of our planet.

Three months after the One Planet Summit, the inaugural International Solar Alliance summit, launched by India and France during COP21, provides a tangible response to the concerns expressed

by Emmanuel Macron in very direct terms: ‘‘We are in the process of losing the climate battle.’’

On Sunday 11 March, alongside the French president and numerous other heads of state, ARMOR will be one of the handful of French companies present in Delhi to take up the challenge set by the ISA of placing solar energy within everyone’s reach. Hubert de Boisredon, Chairman & CEO of ARMOR, will be promoting the benefits of the company’s photovoltaic innovation, ASCA©: a disruptive technology for winning the climate battle.

Armor is the global market leader in the coating of Thermal Transfer ribbons for printing on packaging and barcode labels, the European market leader in the production of inkjet cartridges and France’s largest seller of remanufactured laser cartridges. This specialist in print consumables and coated films for the renewable energies market is proud to promote its business model focussing on innovation, industrial hi-tech expertise and the personal development of its employees. With total revenue of €256m in 2017, ARMOR spends €13m each year in France on R&D. Its 1,850 employees are distributed over 25 industrial and logistics sites on all five continents, of which 750 are based in France.

ASCA©, an industrial solution offering a rapid emergency response Achieving carbon neutrality by 2050 is a vital imperative: 12,000 million tonnes of oil equivalent must be reduced to zero in less than 12,000 days! The challenge requires the allocation of significant resources. The designer and manufacturer of the ultra-thin and flexible photovoltaic film ASCA©, ARMOR, already has fully operational facilities able to produce 1 million m2, supported by the industrial know-how to deploy its solution on the large scale. “We are ready for a genuine Marshall Plan in the solar field!”, states Hubert de Boisredon. The company has already invested €60m in renewables in order to design and produce its photovoltaic modules.

“The member states of ISA are proposing to invest 1,000 billion dollars in solar energy by 2030. ARMOR’s contribution would be to create a world-leading French sector in the field of organic photovoltaic films. This would be possible with a public-private co-investment of €100m – a small sum given the stakes for the planet”,concludes the CEO of ARMOR.

ISSUE 05 | 76

ISSUE 05 | 77

SECTOR WATCH: ENERGY

social infrastructure

- ofgem/ofwat reviews

The outlined tougher new regulatory frameworks for both the UK energy and water sectors mean that regulatory risk should be an increasing consideration for investors in INPP and HICL. A lack of transparency on cash flow assumptions makes it difficult to determine the degree to which the carrying valuations of certain regulated assets could be affected.

New frameworks: Ofgem yesterday set out its proposals for a new regulatory framework (RIIO-2) from 2021, which is expected to result in lower allowable returns for energy network companies. A (real) cost of equity range of between 3% and 5% has been indicated, while Ofgem is also considering refining its cost of debt indexation approach and shortening the length of the price control from eight to five years. The proposals therefore indicate a tougher stance by the regulator, focusing on delivering savings to consumers. They also follow similar proposals by Ofwat for the 2019 price review of water companies.

proserv enters into restructuring agreement Energy services company Proserv has entered into a restructuring agreement with its principal lenders which will strengthen the long term financial structure of the company.

The agreement will result in up to $50 million of fresh capital being injected in to the business and will see existing lenders Oaktree Capital Management and KKR become majority shareholders. US private equity investor Riverstone Holdings LLC, formerly the principal shareholder of Proserv, will maintain a minority share in the company. Under the terms of the agreement, Proserv will emerge substantially debt free with sufficient liquidity to deliver its strategic plan.

David Lamont, Proserv CEO, said: “We have committed investors who see an extremely positive future for Proserv and I’m delighted that we are moving ahead with a restructuring agreement that will enable us to focus on building our business. There is a more positive outlook in the energy sector this year which is already apparent in our results with more than $15 million of contracts secured this year to date and an even more positive global sales pipeline.”

“I would like to thank all of our dedicated employees as well as our customers, suppliers and business partners for their support throughout this process. We look forward to completing this milestone in our journey and building on these relationships for many years to come.” Proserv is a technologydriven company providing products, services and bespoke solutions to clients across the drilling, production and decommissioning market sectors. Operating worldwide through 22 operating centres across 12 countries, Proserv is headquartered in Aberdeen, Scotland.

ISSUE 05 | 78

INPP/HICL: Our focus here is understandably on the regulated assets held within the social infrastructure funds. Specifically, INPP’s holding in gas distribution network Cadent, and HICL’s holding in Affinity Water, remaining cognisant that OFTOs are not subject to price reviews. While over recent months the buyers of social infrastructure funds have had a sharp fixation on political and counterparty risk, regulatory risk may now also deserve due consideration.

A lack of transparency: The diversification of INPP and HICL away from core PPP projects, towards, among other things, regulated assets has often been treated with scepticism. Although we have seen evidence of both the accretion in returns (i.e. higher discount rates) and inflation-linkage stemming from the investments in regulated assets, we have little visibility over the long-term cash flow assumptions that drive their carrying valuations. HICL uses 100 years of cash flows to value Affinity Water, whereas INPP models the next seven, eight-year long regulatory periods for Cadent, each likely incorporating relatively complex assumptions regarding regulatory WACCs, financing costs, opex and capex. As we have highlighted before, we feel there is an issue over transparency here, as the disclosures offered by these funds have failed to evolve to reflect the changing composition of their portfolios.

De-rating of UK listed utilities: The lack of insight into the cash flow assumptions means we are faced with the problem of determining if the tougher stance on allowable returns will have an impact on the carrying valuations of these assets. Where we do have sufficient visibility however is on the valuation of listed utilities. Over the last year, the UK utility sector appears to have de-rated to trading at little over 1x RAB (Regulatory Asset Base). In comparison, the Affinity Water and Cadent acquisitions were completed at 1.4x and 1.5x RAB respectively. Therefore, if certain cash flow assumptions have been used to justify these multiples to book, the recent de-rating of listed utilities raises the question of whether these cash flows are now too high, particularly in the context of the above reviews.

Write-downs? HICL has already indicated it expects PR19 will lead to a reduction in the Affinity Water valuation as at 31/03/18. This was described as non-material, so less than 1% of NAV, although Affinity Water’s size within the overall portfolio entails the reduction could be equivalent to as much as 10% of its carrying valuation. Regarding Cadent, at the time of its acquisition from National Grid we could see the business had generated nominal base returns (before incentives) on equity of 10%. The RIIO-2 returns outlined by Ofgem (once adding expected inflation) are c.30% below this level. We also note the option held by INPP and its fellow consortium members to acquire a further 14% of Cadent is on ‘broadly equivalent financial terms’ to the original purchase. As a result, whether or not these rights are exercised in 2019 could be a useful indicator.

ISSUE 05 | 79

Magazine Tempate

79

SECTOR WATCH: ENERGY

EUROPEAN UTILITIES FROM DEMERGERS TO M&A: E.ON AND RWE SET TO TRANSFORM EUROPEAN ENERGY SECTOR

2018 might become new record year in utility transactions in Europe As pointed out in Scope’s utilities sector outlook 2018, Scope believes the European utilities have put a long period pressure on credit quality behind them after a series of operational restructurings, helped by the rebound of commodity prices and less turbulent political and regulatory headwinds s (i.e. on capacity markets or CO2 emission trading). Following depressing years of business contraction and demergers, major European utilities appear to be in an expansion mode again. Balance sheets have been ‘cleaned’ and financing remains comparatively cheap.

With the E.ON-Innogy-RWE deal which is implies an overall deal volume of around EUR 20bn, the European utility market may be geared for a new record after the USD 50.3bn (~EUR 44.6bn) reached in 2017.

The transformational asset deal set out by German utilities E.ON and RWE should reassure investors and creditors by creating two less complex companies which would also be more resistant to foreign takeover.

“Expect more deal-making to come in the European power sector,” says Scope Ratings director Sebastian Zank. “This deal could lead to a new transaction record in 2018 in the European utility landscape.” On 11 March E.ON SE and RWE AG launched a complex asset deal on the 76.8% share package of Innogy SE held by RWE. Moreover, E.ON will has launched a voluntary public takeover offer to the shareholders of Innogy for EUR 40 per share. Assuming the deal gets regulatory approval, E.ON will become a power utility with a strong focus on regulated grids, while RWE will concentrate on power generation with a fully diversified generation portfolio.

From Scope Ratings’ perspective, the proposed deal is important for two main reasons: • The breakup of Innogy with the allocation of different utility assets to E.ON and RWE will simplify the two utilities’ corporate structures, thereby making it easier for investors and creditors to assess the corporates’ value and creditworthiness.

• Secondly, the deal will reduce the risk of further intrusion by foreign companies into Germany’s power sector after a number of recent transactions: 20% in 50Hertz to be acquired by Chinese State Grid Corporation of China or 47% in Uniper [rated BBB+/Stable by Scope] acquired by Fortum. The two new larger entities which will integrate Innogy’s current market cap of around EUR 19bn would be more difficult to be acquired by foreign investors such as Engie, Enel or Iberdrola.

ISSUE 05 | 80

ISSUE 05 | 81

SECTOR WATCH: ENGINEERING

OP MECHANICAL & ELECTRICAL ENGINEERING CONSULTANCY ACCREDITED FOR CYBER SECURITY

BUILDING Services Design has been recognised by a government and industry-backed scheme for its commitment to preventing cyber attacks. The national firm – which has offices across the UK, from Manchester to London – has achieved national Cyber Essentials Plus accreditation, preparing the firm for new data regulations coming into place on 25 May. As an industry and government certified scheme, it recognises that BSD has all of the appropriate measures in place to minimise the risk of cyber attacks and has demonstrated that it is taking necessary measures to protect its own – and its clients – data. “This is another accreditation to our excellent security and we’re delighted to have been recognised for our continued efforts in safeguarding information and protecting our customers’ confidentiality,” said David Featherstone, director at BSD. “With new GDPR coming into place in May we’re taking all the necessary steps to make sure we’re prepared, working towards having all of the appropriate processes in place.

“Customer details are a valuable asset to cyber criminals and we’ve seen large organisations experience serious issues recently with regards to personal information getting into the wrong hands – showing how important it is to maintain high levels of cyber security.

We’re committed to maintaining safe systems whereby these details are adequately protected.”

There are five technical controls required to come under the Cyber Essentials scheme: firewalls; secure configuration; user access control; malware protection and patch management.

“Public sector frameworks place great importance on this high level of cyber security – having been operating as part of Scape, LGSS as well as acting as part of council and education frameworks for a number of years so we fully understand and appreciate its importance when it comes to working for public sector clients.”

“As a company, we have been operating across the country for more than 25 years, ensuring we adapt and maintain up-to-date systems, processes and ways of working. “I’d also like to thank New Vision Computing for all of its support in achieving this accreditation – the team have done a fantastic job and we couldn’t have done it without them,” continued David.

ISSUE 05 | 82

SECTOR WATCH: CONSTRUCTION

western building system off to a flying start in Wales

Specialist construction company, Western Building Systems has clinched their first contract award under the Welsh Procurement Alliance’s £1bn modular buildings framework.

The procurement framework is available to public sector organisations in Wales and forms one of the WPA Construction, Extension and Refurbishment portfolios. Western will be responsible for the off-site manufacture and on-site construction of a brand, new, state-of-the-art modular building that will become the new hub for the ‘Flying Start programme’ in Penyrheol, Caerphilly.

The Flying start programme forms part of a wider Welsh Government funded initiative available in targeted areas to provide support to families with a child under four years old. The programme promotes language, cognitive, social and emotional skills, physical development and early identification of high needs in families. The new purpose-built centre will consist of large childcare space with plenty of room for the children to interact and play, hygiene facilities designed specifically for young children as well as regular bathrooms, storage, a kitchen, office and large meeting room.

Neil Barker from WPA commented: “We are delighted to see the WPA framework in action, helping to build relationships between quality modular suppliers and public sector bodies. Frameworks like this help make the procurement process much more streamlined, resulting in public sector bodies getting construction projects off to a start much quicker – a benefit for the supplier, client and the wider community making use of services once in place.”

The hub will host a wide range of classes and workshops, provide health support and guidance, parenting groups as well as free part-time childcare.

Western Building Systems will be responsible for:

• • • •

Demolishing structures currently on site Designing and constructing new foundation’s drainage External works and fencing Design, manufacture, delivery and installation of the brand new centre

ISSUE 05 | 84

Magazine Tempate

85

SECTOR WATCH: RETAIL & LEISURE

INDEPENDENT RETAIL AND LEISURE OUTLETS SOAR IN BRITAIN

Independents, on the other hand, grew everywhere except in the East (-19 independent closures) and South West (-29 independent closures.) Closing at a much lower rate than multiples across the UK. The North West (230 independent openings), West Midlands (194 independent openings) and Scotland (114 independent openings) saw extraordinary growth in their independent store markets.

Further, Barbers, Beauty Salons, Cafes and Tearooms, Convenience Stores and Tobacconists/Vaping Shops are classifications succeeding the change, per The Retail and Leisure Trends Report by LDC. In contrast, Public Houses and Inns, Clothes - Women, Newsagents, Bookmakers and Shoe Shops are suffering vast closures.

Store Vacancy, 2017 OnBuy.com considered retail and leisure vacancy rates by region, since the end of 2016, and found that only three regions have seen an increase: Greater London (up +0.1%), the South West (up +0.1%) and Yorkshire and the Humber – with the biggest increase of +0.6%.

The best, and doubtless welcome decrease was in the North West, which improved by -0.2%.

Indeed, regions that currently hold the highest rate of vacancy include the North West (15.1%), the North East (14.8%) and Yorkshire and the Humber (14.5%.) Alternately, the East of England (10%), South East (9.9%) and Greater London (7.5%) hold the lowest rate of vacancy.

• North West – 15.1% • North East – 14.8% • Yorkshire and the Humber – 14.5% • West Midlands – 14.2% • East Midlands – 12.1% • South West – 10.1% • East of England – 10% • South East – 9.9% • Greater London – 7.5%

As multiple stores like New Look, Maplin and Toys ‘R’ Us close at a rapid pace, we look to independent stores as saviours. Often, independent goods have an unrivalled quality and the service is intimate, offering a retail experience that is memorable and tailored to the customer.

Cas Paton, managing director of Onbuy.com comments: “In the grand scheme of things, vacancy rates are low. The fact that only three regions have seen an increase in vacancies is positive and we must focus on this. Otherwise, we risk consistent, unobliging news of multiple closures obscuring our vision and progress to develop the retail world. It is sad to see well-loved, British companies closing– but we must move with the times. Keen business men and women have their eye on vacant spaces across the country and we must support our local independents, bricks-and-mortar businesses. It’s the only way for retail to survive.”

Inspired by the rise of independent stores, British marketplace OnBuy.com considered retail and leisure multiple and independent openings and closures in 2017. Taking time to study where multiple stores have declined in comparison to areas independent stores are opening.

It was found multiple (chain) store closures have been seen in every region – except Yorkshire and the Humber with a rise of 11 openings. The steepest falls were seen in the West Midlands (-143 multiple closures), Greater London (-92 multiple closures) and the East of England (-86 multiple closures.)

ISSUE 05 | 86

ISSUE 05 | 87

SECTOR WATCH: LEISURE & CONSUMER

MID-MARKET ADVISORY FIRM CLEARWATER INTERNATIONAL WELCOMES RICHARD O’DONNELL TO THE BUSINESS AS PARTNER IN THE UK. Richard was previously European Head of Leisure & Consumer M&A at Canaccord Genuity, and prior to this was a Partner at Spayne Lindsay & Co. Richard has worked on deals involving a number of high profile brands including Leon Restaurants, Goal’s Soccer Centres and Fever-Tree.

Richard will be predominantly based in Clearwater International’s London office and will continue to focus on the consumer sector.

Richard O’Donnell commented: “I’m delighted to join the team at Clearwater International. The Partners and wider team have created an established market leading advisory practice with a proven track record of delivering outstanding client outcomes across a broad range of international markets. The business has a strong presence in the consumer sector and I’m excited to be working with the team to extend this further still.”

Phil Burns, UK Managing Director, Clearwater International commented: “We’re delighted to have Richard join our team. He brings a wealth of knowledge and experience and no doubt will bolster our activity in the consumer sector.

Richard has worked with some great brands and his expertise and skills complement the Clearwater approach of delivering great outcomes for our clients. We look forward to seeing the opportunities he’ll bring to the business.”

RICHARD O’DONNELL

ISSUE 05 | 89