Global Business Insight Volume 5, Issue 1

GLOBAL B U S I N E S S

JANUARY EDITION NO. 03 • 2018

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F I N A N C E

B U S I N E S S

CALIFORNIA SET TO LOSE THE MOST MONEY TO

CYBERCRIME IN 2018

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S E C T O R

N E W S

I N S I G H T

2018

REASONS TO BE CHEERFUL

Stock markets reached record highs in 2017 as the second longest bull market in history continued

The study compares data from the FBI’s Internet Crime Report and the Insurance Information Institute.

SYNECTICS DRIVING THE TRANSITION TO SMART TRANSPORT NETWORKS

WILL THE US FIND SUPPORT THIS WEEK?

WWW.GBUSINESSINSIGHT.COM

interview

DR. STEPHEN BRESLIN GLASGOW SCIENCE CENTRE TO SHOW HOW SCIENCE WILL SHAPE OUR FUTURE

WHAT MAKES A GREAT

Brainstorming Session

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Magazine Tempate

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04 10 16 24 31 37 48

property market outlook

Villa rents in Sharjah have continued to buck the wider trend of retreating rents.

what makes a great brainstorming session Many people assume that a brainstorming session is about developing a great idea.

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residential mobility in london Unlocking Migration Patterns.

why social media should be your business top priority Only 57.6% of small businesses use social media.

sterling, dollar and gold in focus

Sterling bears entered the scene on Friday after British retail sales tumbled sharply in December.

WELCOME

DR. STEPHEN BRESLIN

Glasgow Science Centre has revealed that, in partnership with the Scottish Funding...

54 66 90

carrefour announces

A strategic partnership with showroomprive and acquires a c.17% stake in the company.

california

JANUARY ISSUE

Set to lose the most money to cybercrime in 2018.

the uk’s global

Bioscience cluster in 2017.

funding boost promotes flexible working at hub26

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A luxury serviced office complex. Hub 26, is being developed in West Yorkshire.

the uk m&a market / first quarter 2018

FOLLOW US @ GBUSINESSINSIGHT

Strong 2017 UK M&A Market outturn belies predictions of a downturn in activity Post-Brexit vote.

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bringing home into the office More than 44% of the UK people prefer to work from home rather than head into the office.

carbon markets

Carbon Markets in 2017 Regaining value

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TO THE

CONTENTS

2018

Reasons to be Cheerful

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BUSINESS

PROPERTY MARKET OUTLOOK

downward pressure on residential rents set to persist Sharjah’s residential rental market is set to face further pressures from rising stock, which is helping to cement the tenants’ market that took hold three years ago.

Many landlords are however still reluctant to adjust advertised rents downwards due to concerns about alienating existing tenants.

However, with tenants increasingly seeking out new and energy ef cient buildings, re ecting household nancial pressures stemming from the first of vJanuary introduction of VAT, rising utility bills as subsidies continue to be phased out and rising in ation levels, we feel landlords will need to drop rents, particularly in older buildings, to sustain demand.

VILLA RENTS IN SHARJAH

With a sudden turnaround in economic growth, or residential demand unlikely during 2018, we expect rents will continue to moderate, with apartments likely to see corrections of 5% to 7% this year, while villa rents are expected to experience growth of between 1% to 2%.

have continued to buck the wider tend of retreating rents in the residential market. During Q4 2017, villa rents rose by 1.7%, taking the rate of growth during 2017 to 0.4%. Over the last two years, Sharjah’s villa market has grown in both pro le and popularity as the emirate’s real estate market repositions itself with new and affordable options that are helping to retain its appeal and attractiveness amongst those households that have been priced out of Dubai, or are seeking a more family oriented

sharjah property market in numbers

-6.9%

fall in residential rents in 2017

STAGNANT OFFICE RENTS

lifestyle.

Communities such as Al Zahia have, as a result, been a runaway success and with most major new shopping mall developments in Sharjah anchoring these new lifestyle destinations, the future of community living in Sharjah appears relatively buoyant, especially when compared to many other property segments in the UAE. By contrast, apartments registered a steep decline of 13.6% in rents during Q4 2017, leaving rents 10.6% down on 2016, on average. Abu Shagara topped the list of weakest performers, with rents retreating by an average of 15.1% during 2017. This market has been evolving ever since the used car showroom dealerships vacated the area at the end of 2015.

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1.7%

rise in residential villa rents in q4 2017

In the of ce market, rents have continued to stagnate, with no rise in advertised headline rates in any of the markets we monitor. Prime areas of Al Majaz continue to command the highest rents in the city at an average of AED 68 psf. While the stability in rents may suggest that demand levels are healthy, vacancies are rising across the board and the supply pipeline appears to be strengthening, with new schemes such as Sharjah Publishing City, Sharjah Media City and Aljada all set to inject fresh supply into an already saturated market over the next few years. further concern stems from VAT, which will take commercial occupier liabilities to 14% of the agreed annual rent: 5% for VAT, a 4% Municipality Tax and 5% commission fee. These factors together suggest a subdued outlook for of ce rents, with a fall in rates of between AED 5-10 psf more than likely during 2018.

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INSIGHT

BUSINESS

BRINGING HOME INTO THE OFFICE

“WORKING FROM HOME”.

THESE THREE LITTLE WORDS SEEM TO RESONATE WITH THE AVERAGE BRITISH WORKER AS STRONGLY AS “CUP OF TEA” OR “DRESS DOWN FRIDAY”.

44% of the UK people prefer to work from home rather than head into the office

According to a recent survey, more than 44% of the UK people prefer to work from home rather than head into the office and as much as employers sympathise with this preference, it isn’t always practical. To combat this, companies should work towards turning their office into somewhere employees actually want to visit. This can be achieved by taking inspiration from the home and bringing these themes into the workplace.

Below, Businesses Energy Comparison site Love Energy Savings have looked at the steps employees and employers can take to make their office feel a little bit more like home.

Desk decorations The more time you spend in an office, the more you think of home; which is why experienced staff typically deck out their desks with personal items reminiscent of their household.

Every office desk can be an extension of an employee’s home – as if it has been picked up and physically moved to the workplace. Staff should be encouraged to prop up pictures, add memorabilia, and even use their own personal equipment to make their workspace their own.

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Kicking the dress code One of the major deterrents for office-based work is stuffy, corporate clothing. Some people feel far more comfortable and confident in casualwear – which can facilitate productivity and creativity. As such, many companies are kicking dress codes to the kerb. The one snag is that hoodies and tracksuit bottoms aren’t exactly appropriate if you’re meeting an important client. A good way to get around this is to make clear the attire expected in a client meeting and the attire expected for the basic day to day.

Favourite foods A real pleasure of home working is the ability to cook whatever you like, whenever you like. There’s no need to worry about what the boss might say.

You can snack to your heart’s content!

Lots of offices are relaxing on the food front nowadays – realising that letting staff eat their favourite foods at their desks is a small price to pay for higher productivity. More companies are also investing in superior kitchen equipment to facilitate the storage and cooking of tasty, healthy, morale-boosting, productivity-fuelling meals.

Flexitime and freedom Being forced to sit in the same chair until a specific time instils a prison-like mentality in employees. At home, though, they can pick and choose hours.

Offering flexible working hours can make the workplace seem all-the-more appealing. It provides staff with an element of control over when they start/finish – which in turn can boost motivation and overall job satisfaction.

Homely surroundings The days of dreary grey office cubicles are almost behind us – but a lot of workplaces still aren’t all that comfortable for staff.

To transform the office into a place that employees actually want to travel to, a business must invest in comfortable furniture and décor. Sofas in a chill-out zone, plants speckled around the room, colourful wallpaper… All of the above contribute to a homely sort of space that people enjoy working in. Ultimately, there are three defining attributes for an engaging office: familiarity, inspiration and comfort. People love working from home because these are in abundance. By bringing home into the office, a company can boost employees’ happiness and productivity.

And that’s exactly what we’ve done right here at Love Energy Savings. Take a look at our Careers page to learn all about why our company is such a fantastic place to work.

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INSIGHT

BUSINESS

INSIGHT

HORRIBLE BOSSES 1 in 10 People Have Imagined Killing Their Boss

As the UK workforce returns to the office on a post-Christmas comedown, Expert Market, a leading B2B online comparison site, has released new research revealing what we really think of our bosses. The report aims to shed some light on why so many of us start off the new year desperately on the hunt for a new job - and the results are alarming to say the least.

The study, which was facilitated by independent survey company, Vivatic, quizzed 2,200 people about their relationship with their managers to determine the industries with the best and worst bosses.

Murder on the Construction Office Floor Shockingly, the report found that one in 10 people have gone so far as to imagine murdering their boss. Construction workers emerged as having the worst relationship with their line managers with nearly a quarter admitting to murderous thoughts (22%), followed closely by those working in the media industry (15%). Overall, the report found that more than half of respondents (52%) said that they hate their job specifically because of their boss. In fact, one in five workers said that they would actually turn down a pay rise in favour of firing their manager and it’s because people think their boss is not fit for purpose. The majority of those asked (73%) believe that they could do their boss’ job far better than them, particularly those in the energy and entertainment industries; 86% and 81%, respectively. Retail workers were the most negative about their jobs with nearly a third saying they hate their jobs. They were closely followed by more than a quarter (27%) of construction workers and 25% of those working in the public sector.

Workin’ 9 to....?

All in all, more than a third of people admitted that they dread going to work every day and nearly 60% said they felt pressure to catch up on tasks during non-work hours. A fifth of people even admitted to working four to six hours extra every week for free, with one in ten working seven to nine hours extra with no additional pay, suggesting that employees are being overworked and underpaid for their efforts.

Disappointing interpersonal relationships with bosses were further highlighted when respondents were quizzed on day-to-day interactions with their seniors. Nearly a quarter of respondents (23%) said they would ignore their boss in the street, nearly double (41%) say they avoid their boss at work events and nearly half (45%) say they would classify their boss as a control freak.

Hannah Whitfield, who headed up this research for Expert Market comments: “The average cost of hiring a new employee in the UK has been calculated at a whopping £25,181, and rises each year. Employees are said to leave bosses, not companies - so our survey paints a rather bleak picture for certain industries. If ‘horrible bosses’ don’t up their game, they could end up costing their companies thousands in hiring costs.

Investment in employee engagement is a prudent way to combat tension in the workplace. At Expert Market we’ve proven that encouraging strong working relationships and promoting a healthy work life balance makes our teams more productive, so businesses should take note!”

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BUSINESS

WHAT MAKES A GREAT

INSIGHT

BRAINSTORMING SESSION

Many people assume that a brainstorming session is about developing a great idea that will change everything. But the most effective way to brainstorm is actually to think of as many ideas as possible, regardless of how good they are. For once, it is about quantity, not quality.

Nick Pollitt, Managing Director of office furniture provider DBI Furniture Solutions, has put together some of the best ways to ensure your brainstorming sessions are fun and productive.

THE PEOPLE NUMBERS The first rule of a brilliant brainstorming session is the number of people you have in the room. Too small, and you might not get the number of ideas you want. Too many, and you could lose control of the meeting.

Follow Jeff Bezo’s pizza rule. At Amazon HQ, no brainstorming session has more people than two pizzas can feed (between 5-8 people). Bezo swears by this rule, and you should too.

THE PEOPLE FACTOR Numbers are one thing, but diversity is another. A brainstorming group of the same people from the same background and similar Hexperience will produce no new ideas.

However, when you invite new people in from different areas of the business, their fresh perspectives will make a huge difference in the quality and variety of thoughts that appear on the ideas board.

PRE-MEETING PLANNING If you want to get the best out of your brainstorming meeting, plan it well in advance, giving context and goals. You’ve probably noticed, but spontaneous meetings do not always deliver the best results.

That’s because your team has not had time to process the goals of the task, or prepare their initial thoughts before going in. It’s essential that you give your team time to prepare.

If you do, your brainstorming session will go much smoother and better ideas will be developed.

WE ALL NEED BAD IDEAS It may sound strange to say that you need bad ideas, but you do.

Everyone has bad ideas, and that’s a good thing. Creating an environment where bad ideas are expressed, means you get more ideas out in the open. Remember, brainstorming is about quantity, not quality.

Once all of the good, mediocre and truly terrible ideas are out on the table, it’s time to break and build. A good idea never comes out perfect first time, it needs shaping. Turn that list of bad ideas into amazing ideas through discussion and collaboration.

ROSS CHAPMAN

WORDSTORMING A constant discussion with no break can make a brainstorming session stale. Try playing word games to break out of those traditional mindsets and develop fresher ideas.

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A wordstorm begins with you writing down one word related to the topic and then brainstorming more words related to that first word. It can include the function of the word, its aesthetics, how it is used and any metaphors or similes related to it.

Put your new words into groups based on how they are all related to each other. From there, brainstorm ideas from each of those new groups, and if you find yourself stuck in a rut again, repeat the process with one of your new words. A whole new range of ideas should come to the surface.

THE RIGHT ENVIRONMENT

CREATE A MOOD BOARD

One of the key factors of an effective brainstorming session is the environment it’s held in. Creative thinking is impossible in an uncomfortable meeting room with little audio/visual inspiration, and meetings in this kind of situation are almost always fruitless.

If you need a way to inject new energy into your session, consider adding some colour by creating a mood board. Combining imagery and colour using a visual-spatial arrangement helps to inspire emotions and feelings, sparking fresh ideas and improving information recall. A mood board is a random collection of words, images and textures related to a topic and is similar to a mind map. You can create a physical mood board, or you can use tools like Pinterest to create a digital one.

Updating and upgrading your office is one of the best investments you can make when it comes to unleashing your team’s true potential.

DOODLE IT Sunni Brown, the author of The Doodle Revolution, said: “When the mind starts to engage with visual language, you get the neurological access that you don’t have when you’re in linguistic mode.” Another way of breaking out of the traditional mindsets that dog brainstorming sessions is to doodle your way to the answers. Brown gives two suggestions in her book. The first is to take an object and break it down into its smallest parts.Take a car for example. You might draw the wheels, body shape, gear stick, badge. By visualising all of the elements of the object and the environment it lives in, it will help you view the object in a fresh way. As an alternative, you can take two unrelated items that may connect to your topic or theme and break them down into their separate parts. Once you’ve done this, combine their parts to make something new and random. Your creation may be strange, but it should aid you in finding new angles for your topic.

Gives these techniques a try and see if they improve your brainstorming sessions. You may have your own methods that you prefer, what works for you, it’s always a great idea to experiment.

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BUSINESS

2018

REASONS TO BE CHEERFUL

Stock markets reached record highs in 2017 as the second longest bull market in history continued. This strong equity performance was generated in spite of another year of global political uncertainty and rises in interest rates in the US and the UK. Can this positive environment for stock markets continue? Liontrust fund managers highlight data, trends and analysis that provide reason for investor optimism in 2018.

INSIGHT

HIGHEST EUROPEAN

EPS GROWTH IN SEVEN YEARS It looks like 2018 will be the year when the European economic recovery really becomes established. Having lagged the US and UK (in aggregate) for so long, the longawaited recovery has finally arrived this year, and seems likely to be reinforced in 2018. As this chart shows, 2017 experienced the highest earnings growth rate for seven years as analyst forecasts proved far less susceptible to the serial downgrades which had characterised the previous few years.

The eurozone has faced two huge, almost existential, crises in the last decade: first the Great Financial Crisis, and then the Eurozone Crisis, which was a development of the former, but not suffered by the rest of the world.

olly russ fund manager

TIGHTENING LABOUR MARKET IS A SIGN OF ECONOMIC STRENGTH

john husselbee

The chart demonstrates the increasing recruitment difficulties in 2017 for the 700+ UK businesses that take part in the Bank of England survey. Why is this a cause for cheer? The tightening of the labour market is consistent with economists’ estimates of a UK economy operating at full capacity and bodes well for pay growth. UK unemployment dropped to 4.3% in October 2017 (data which were released in December 2017), the lowest level since the mid-1970s. Pay growth will soften the present squeeze on real earnings and would also imply that the deflationary pressures of the last decade are ebbing, economic conditions are normalising and interest rates and bond yields will push higher.

jamie clark fund manager

head of multi-asset

Bull markets do not simply die of old age

ATTRACTIVE

ASIAN VALUATIONS Bears are increasingly talking about complacency and markets running out of steam but we continue to believe there could be plenty left in the tank. This comes down to a question of duration versus magnitude: concerns are growing that since we are nine years into a bull market and the economic recovery has taken longer than the typical five or six years, we must be late in the cycle. We would dismiss the idea that bull markets can simply die of old age; it is the magnitude of the growth that is important rather than the length of the run.

One example from recent history proves this point: the so-called 1990s bull run actually stretched for 12 years, from 1987 to 1999, during which the FTSE 100 rose close to 340%. In the current post- 2009 run, the index is up around 90% so no one can claim we are in a situation without precedent, at least when it comes to rising markets.

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A global environment of muted inflation with low but stable growth should allow Asian equities to continue to perform well given their attractive valuations. The MSCI Asia ex-Japan Index trades on a price/earnings ratio of 13.2x based on Bloomberg’s consensus analyst estimate, which compares very favourably with other regions: the US is on 18.9x and Europe 14.9x. Within Asia’s attractive average valuation, however, there is substantial variation by country, sector and stock. So while South Korea looks cheap given the progress it is making in reforming its corporate culture, Australia and

mark williams fund manager

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BUSINESS

DR. STEPHEN BRESLIN

GLASGOW SCIENCE CENTRE TO SHOW HOW SCIENCE WILL SHAPE OUR FUTURE Glasgow Science Centre has revealed that, in partnership with the Scottish Government sponsored Scottish Funding Council, it is on course to deliver its latest interactive exhibition which will focus on innovation.

Idea #59 will inspire the next generation of innovators, engineers and scientists by exploring AI, Big Data, Robotics, Advanced Manufacturing, Precision Medicine, and the “Internet of Things’.

While aiming to engage wider society on how new technology will impact future generations, the exhibition will be expertly crafted so that it is fun and engaging for people of all ages.

Last summer, the Scottish Government outlined proposals to help the advanced manufacturing, energy and financial technology sectors, to give additional support for graduate entrepreneurs and to help companies to access finance. In addition, it was announced that research and development support from Scottish Government enterprise agencies was to increase almost 70 per cent - from £22m to £37m per year over three years.

GSC will work alongside Scotland’s Innovation Centres to develop the exhibition content and educational and public programme. The eight Innovation Centres, funded by the Scottish Funding Council, aim to help businesses increase the pace of innovation and, in turn, help both the Scottish economy and people’s health. For Idea #59, GSC will be working alongside the Centre of excellence for Sensor and Imaging Systems, Construction Scotland, Digital Health and Care Institute, Stratified Medicine, Industrial Biotechnology Innovation Centre, Oil & Gas Innovation Centre, Scottish Aquaculture Innovation Centre and The Data Lab. A group of experts from academia and industry will provide advice, guidance and direction for the new exhibition. Members include representatives from the Innovation Centres, University of Strathclyde’s Advanced Forming Research Centre, Fraunhofer Scotland, Technology Scotland and Engineering Scotland.

Almost 70,000 schoolchildren visit Glasgow Science Centre annually and the exhibition, housed on the second floor, will be a focal point of the Centre’s education programme and act as a powerful engagement tool to help inform young people of the wide range and rewarding careers available within the sector. Over its five-year life span it is estimated Idea #59 could draw in around two million people. Dr Stephen Breslin, Chief Executive of Glasgow Science Centre, said: “Over the next five years, as AI and machine learning become ingrained in all forms of technology they will deliver exciting new opportunities. Big Data, AI and the Internet of Things, will create new services and breakthroughs in science, as the merging of human intelligence and the digital world gathers pace to transform the global economy. The constant flow of new digital tools will reshape every aspect of the professional realm and society in the future. Scotland, being at the forefront of much of the world’s most exciting research and development, is a particularly fertile ground for high-tech careers. With Idea #59 we aim to bring together some of the most exciting research and development partners to inspire the next generation of innovators.”

Minister for Further Education, Higher Education and Science, Shirley-Anne Somerville, said: “Scotland was forged on innovation and we must aspire to be the inventor and the manufacturer of the digital, high tech and low carbon innovations that will shape the lives of our children and grandchildren. “It is this Government’s ambition to make Scotland a STEM Nation and it is my hope that Idea #59 will inspire the next generation of Scotland’s innovators, encouraging them to develop the skills needed for the jobs of the future.

We are a forward looking, innovative nation and this exhibition is a fantastic opportunity to showcase the ground-breaking work of Scotland’s innovation centres.”

Commenting on the partnership, Dr Stuart Fancey, Director of Research and Innovation at the Scottish Funding Council, said: “The innovation that science and engineering bring are central to our modern world. The great work in Scotland’s universities, colleges and Innovation Centres to make new ideas reality has a growing impact on our lives in areas such as developing more energy efficient homes and the use of Big Data to improve cancer care, amongst many others. Commenting on the partnership, Dr Stuart Fancey, Director of Research and Innovation at the Scottish Funding Council, said: “The innovation that science and engineering bring are central to our modern world. The great work in Scotland’s universities, colleges and Innovation Centres to make new ideas reality has a growing impact on our lives in areas such as developing more energy efficient homes and the use of Big Data to improve cancer care, amongst many others. “Partnering with Glasgow Science Centre to showcase the innovation in Scotland today is a great way for SFC to help young people learn about the exciting science and engineering jobs those innovations will bring in the Scotland of tomorrow.”

The exhibition will showcase the cuttingedge work carried out by Scotland’s eight Innovation Centres. So far £250K in funding has been raised and now GSC is calling on businesses to come on board as partners to help raise the remaining £750K to bring the exhibition to life.

The project will also act as a conduit to help realise the Scottish Government’s aims around increasing innovation in Scotland.

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INSIGHT

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BUSINESS

RESIDENTIAL MOBILITY IN LONDON Unlocking Migration Patterns

Lower relative prices can be found towards east London, in submarkets such as Greenwich, Canada Water and Wapping.

Generally, a trend can be seen with higher prices on the north side of the Thames, where the Accessibility Index is usually higher than locations south of the river. Meanwhile, submarkets in the south west, such as Nine Elms, Clapham and Vauxhall, have a lower Accessibility Index score, with a relative house price of up to twice our median London house price, hinting perhaps at a higher level of attractiveness.

HOUSE PRICE TO NET ANNUAL INCOME RATIO

The third variable, house price to net annual income ratio, follows a similar trend to that of relative median house price where Cluttons’ Central London South East region has the lowest ratio (5 to 10 for most submarkets). A key trend resulting from mapping house price to net annual income ratios is the clear formation of four concentric bands, radiating outward from Knightsbridge, with the ratios decreasing rapidly as the distance from this prime Central London submarket increases.

Clearly the higher entry level price points in prime Central London locations and associated lack of supply are a barrier for many aspiring homeowners. This largely insurmountable nancial barrier then has the effect of driving households further a eld, to locations that are perceived to be more affordable. The density of employment opportunities in the centre of the city, coupled with a lack of available dwellings, results in the daily commuting patterns from the periphery of the city into the centre that are observed in London and indeed all other major cities in the world.

WORKERS’ DISTRIBUTION (OR SOCIO-ECONOMIC STATUS)

The fourth and nal variable explored is the National Statistics – Socio Economic Classification. Respondents to the Census are categorised according to their job and employment status and the relative distributions of people in each NS-SEC group are examined for each submarket area. While employment and income are related and we would expect areas with higher proportions of people in the highest NS- SEC class to have higher average incomes in general, this will not always hold for all areas; average incomes can mask signi cant local variations. In addition, just because an individual has a high income, it cannot be assumed that they are in a strong nancial position to allow them to purchase a home. Similarly, if a household holds a low NS-SEC rating, that does not necessarily preclude them from home ownership; there are always alternative nancial options with which to acquire a home.

CONNECTIVITY (OR ACCESSIBILITY)

In order to better understand the level of connectivity across London, an Accessibility Index has been developed. The Accessibility Index, for this study, is de ned as the density of London Underground stations in each of our residential submarkets. The higher the index value, the more accessible a submarket is.

Though this index has its limitations – clearly Tube travel is only one aspect of transport accessibility and will not be as relevant for some population groups as others – it gives some indication of the connectivity of each submarket.

Any impact this may have on the push or pull factor of a submarket is further examined through the spatial interaction modelling undertaken as part of the study, which is discussed below.

The Accessibility Index shows The City as having the highest level of accessibility at 4.3. To an extent, this is expected given the high concentration of businesses in this submarket that bene t from the extensive London Underground network, allowing for a high number of commuters to access the area easily. Covent Garden, St. James’s, Fitzrovia and Mayfair follow with an index of 3.0 to 4.0. Again, these relatively high index scores are for reasons similar to that of The City.

Furthermore, many lower income groups were able to afford to purchase housing in London 20 years ago when income to house price ratios were more favourable, and so now, on the proverbial property ladder, are sometimes in a stronger position to purchase another property than many on higher incomes. The map showing the percentage of the population in NS-SEC 1 (higher managerial and professional occupations) reveals high values across London compared to other lower categories.

The highest percentage can be found in The City which suggests that the demographic of the population here is largely driven by the nancial industry and the importance of proximity to work for those in this top tier NS-SEC category. It is worth noting that The City has one of the lowest concentrations of residential accommodation in Central London and so those that reside here are likely to have paid a premium for the privilege and will most likely have a clear reason for the selection of this location for habitation. East London submarkets follow the same trend as house price to net annual income ratio, with the lowest percentage of the population with NS-SEC 1 employment at an average of 10% to 15% of the population. Unusually, Blackheath, on the most eastern side of London, shows a higher percentage of NS-SEC 1 than its neighbours.

POPULATION DENSITY

The second variable used is population density, calculated as population per square kilometre and has been based on ONS Census data from 2011. The lowest densities are found to be in The City and Richmond. This is expected as much of Richmond consists of open green spaces and The City consists mostly of commercial of ce space, with a limited residential offering.

Many of the northern London submarkets, apart from Hampstead, show high population density. Maida Vale, Notting Hill and Earls Court form a northern corridor with over 16,000 people per square kilometre. These submarkets also have a higher Accessibility Index compared to surrounding areas. A high Accessibility Index does not always correspond with a high population density as shown by submarkets in prime Central London such as Mayfair and Covent Garden. This trend suggests that although accessibility is a desirable attribute, there are other factors at play within each submarket which lead to increased densities of population and higher residential property prices.

With the exception of Belgravia, much of prime Central London has a low population density. Knightsbridge, Kensington, South Kensington and Chelsea, for example, all have median house prices that are at least three to four times higher than our median London house price of £977,000, which excludes prime Central London.

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INSIGHT

BUSINESS

RESIDENTIAL MOBILITY IN LONDON London’s Most Desirable Submarkets

What this suggests in essence is that 2011 migration ows will be unlikely to look hugely different from 2001, or 2021 for that matter. This is another potential area for future research – comparing the 2001 Census with the 2011 Census to assess the extent to which we might be able to predict migration ow changes over time. Running this model has helped to prove that house prices do indeed have a direct and profound impact on the attractiveness of a submarket for residential habitation.

CONCLUDING THOUGHTS

London is a complex world-class city which provides its residents with a clear choice of residential occupation through outright ownership, or renting; however, house prices are a clear barrier to many. High levels of accessibility in submarkets that surround prime Central London have helped to support high population densities.

This has been bolstered by households moving closer to work, foregoing home ownership aspirations for the most part and relying on renting instead for what is perceived to be an easier commute. Clearly affordability issues in core locations are also a barrier to home ownership for many aspirational households.

Higher house prices at destination submarkets have been shown to depress residential migration ows until we take account of social structure. Once we do this, then it becomes clear that people generally will be encouraged into areas with higher prices, which are often also perceived to be higher quality areas. However, areas with high proportions of the highest socio-economic status discourage residential mobility in general – perhaps indicating that these areas have signi cantly higher property prices, which act as a barrier to everyone else attempting to gain access to the property ladder in these locations.

When house prices are high, relative to income, then this discourages in- migration as well as out-migration. The mechanism for discouraging in-migration is clear, but the fact that it discourages out-migration is interesting and arguably indicative of some people with lower incomes who jumped onto the ladder earlier when it was more affordable and are now either less willing, or less able to cash in on the capital appreciation of their property. This study has given Cluttons a clear indication of the level that impact variables such as population density, socio-economic status and house prices have on the attractiveness of its 47 London submarkets.

SPATIAL INTERACTION MODELLING

It is clear that each of the above variables has a varying degree of in uence on the attractiveness, or emissivity of a submarket for residential migrants. In order to ascertain the in uence of the above variables on residential mobility ows between our 47 submarkets, we use spatial interaction models to explore the impact of these variables (including Cluttons’ residential property price performance data) on migration data from the 2011 Census. Two separate and distinct spatial interaction modelling sets were run to determine the level of attractiveness of Cluttons’ 47 residential submarkets. Both model sets were used to determine the submarkets most likely to produce residential migrants (production constrained spatial interaction modelling) as well as those most likely to attract residential migrants (attraction constrained spatial interaction modelling).

The attraction constrained model fixes (constrains) the flows predicted by the model to the observed volumes of migrants arriving at destinations and looks at the effects of other variables on where these migrants came from. The production constrained model does the opposite and fixes (constrains) the model estimates to the known number of migrants leaving origins and looks at the effects of other variables on their arrival destinations. In doing this, we are able to examine the relative effects of the different variables on the migration ows that are observed. The models run in this analysis were based on total flows of migrants (anyone who recorded a different permanent residence from their current one in the year prior to the 2011 Census). While modelling total flows allows us in some ways to be more confident of the relationships that emerge due to the weight of numbers, we lose much in terms of nuance. For a more detailed analysis, this work should be followed up by examining the flows of individuals in different socio-economic groups as they will exhibit very different flow patterns and be affected by very different forces than those in the higher socio-economic groups; an exercise we plan to undertake as a next phase of this research. The modelling has yielded some obvious and also surprising results – although as with any modelling exercise with only a handful of explanatory variables, we should be cautious with our interpretations where additional less obvious factors, may cloud interpretations. These models have however given Cluttons an insight into the in uence each of the above chosen variables has on inward and outward residential migration around London and have paved the way for a number of future extensions of this unique analysis.

HOUSE PRICE GROWTH IS BOTH A PULL AND PUSH FACTOR

The first model, which utilises Cluttons’ residential property performance data for London, was run to explore London migration flows at a submarket level to determine the impact of house prices on the attractiveness of a submarket. This model, in effect, served as a control, to help demonstrate the in uence of house price growth on residential migration. The model gives us a static picture of the attractiveness, or emissivity of Cluttons’ London submarkets. n the various studies of internal migration in the UK over the years, while the migration ows of people go up and down, where they move from and to does not change a huge amount in general. However, when we are looking at relatively large areas, like Cluttons’ London submarkets, then much of the variation in smaller areas is smoothed out.

ISSUE 03 | 18

INSIGHT

ISSUE 03 | 19

BUSINESS

INSIGHT

OVER %50 OF BUSINESSES INCREASED THEIR CYBER SECURITY BUDGET LAST YEAR AMID ATTACKS In an age of technology, cyber-attacks are becoming more prevalent, more frequent and more threatening than ever before. Now that the majority of institutions, particularly in the financial sector, are opting to transform their operations via new digital channels, automation and other advanced technologies, the dangers to companies are significantly heightened.

As a result, Turnerlittle.com sought to find out how cyber security threats have increased in recent years, and what companies are, and should, be doing to prevent cyberattacks.

With the sudden increase in the frequency and scope of cyber-attacks around the world, new and impending regulations, have already prompted some of the financial sector’s biggest names to review their cyber security plans. In a recent Ernst & Young report, Turner Little found that more than half of respondents (53%) say their cyber security budget has increased over the last year.

CYBER SECURITY IS BECOMING A NR 1 PRIORITY In 2018, many companies understand that cyber security is a major risk, perhaps even the number one priority; particularly for technology-heavy companies. Cyber risks are constantly changing and are difficult to keep up with, which can be destructive. Unfortunately, no business can completely protect itself from a cyber-attack, but they can implement plans and strategies to help prevent breaches from occurring.

For many companies, customer data is paramount, with a staggering 65% of businesses citing customer personal and identifiable information as the most valuable asset to protect, while 36% cited customer passwords.

Turnerlittle.com found that these were followed by: Company financial information – 19.5% • Corporate strategic plans – 18.4% • Senior executive/board member personal information – 15.1% • Information exchanged during M&A activities – 11.5% • Patented intellectual property (IP) – 10.1% • R&D information – 9.6% • Non-patented IP – 8.3% • Supplier/vendor identifiable information – 4.2%. Turnerlittle.com found, at present, there is a shortage of individuals with the skills and know- how to deal with cyber security threats in business. Turner Little’s analysis of EY’s report can reveal that at all levels, there is a lack of training regarding how cyber risk should be handled in dayto-day business life. Companies must increase cyber security awareness training, whilst instilling an understanding of how cyber risks can impact different roles and individual projects, as well as harming overall businesses (e.g. impacting corporate reputation, business acquisition and client retention).

ISSUE 03 | 20

Analysing a 2017 report by Gov.uk, Turnerlittle.com found that, over the last 12 months, some businesses are trying to offer cyber security training, either internally or externally. Although, from the report, Turner Little concluded that training must be more accessible.

The following companies pursuing cyber security training: • Small firms - 25% • Medium firms - 43% • Large firms - 63% • Within finance/insurance - 49% • Within info/communications/ utilities - 41%.

Of these companies, the employees who attend the training courses varies. Unsurprisingly, IT staff had the highest attendance (79%), followed by directors or senior management staff (59%), staff members whose job role includes information security or governance (47%) and other staff who aren’t cyber security or IT specialists (29%).

Turner Little found that cyber security can be expensive for companies; particularly those that are deemed “small”.

According to Gov.uk, the mean spend on cyber security of all businesses in the UK is £4,590, and for large businesses, the mean spend reaches a staggering £387,000.

However, it is worth it in the long run, as Turner Little found that the average cost of breaches to all businesses in the UK reached £1,570 in the last 12 months – and £19,600 for large firms.

BUSINESS

INSIGHT

CAN REGIONAL BANKS ACROSS APAC STOP MARKET DATA COSTS FROM SPIRALLING OUT OF CONTROL ?

For many financial institutions, in a world inundated with so many new rules fundamentally changing how the global banking system operates, it can be hard to keep up to speed with everything.

Different regulations, of a course, affect different banks from all parts of the world in a variety of different ways.

ALMOST HALF OF UK SMES

SPEND OVER 10 DAYS A YEAR REMOVING WASTE

And while the big multinationals in established markets such as Europe are currently fixated with the race to be ready for MiFID II, other banks scattered across other corners of the globe have other regulatory concerns. The fundamental review of the trading book (FRTB), a more prescriptive version of its BCBS 239 predecessor, is one of the biggest compliance challenges facing regional banks in APAC. This is because, unlike the U.S or Europe where it is easy to access liquidity, the market is highly fragmented with multiple smaller jurisdictions all at differing levels of maturity.

Leading national recycling and waste management provider, Biffa has revealed that almost half of SMEs in the UK are wasting over 10 days a year removing emergency waste items from their premises.

Traditionally, banks often start by building a base in Singapore, before then rolling out across the rest of the region. But as these firms start increasing their footprint, it becomes much harder to consolidate a full trail of market data which is needed to meet strict FRTB requirements. This problem is exacerbated by the fact that a number of regional banks are trying to handle FRTB data requirements by relying on managed feeds from their trading software. This approach has led to market data costs getting completely out of hand.

Banks will have multiple different data requests going out to the likes of Bloomberg and Reuters, and due to the complex risk scenarios, which will need to be run under FRTB, certain banks could find themselves in a situation where they are repeating requests for data.

All because they do not have the processes in place to reuse what they have already requested.

With each unscheduled incident taking up to seven working hours on average to handle for 44.5 per cent of businesses, UK SMEs are missing out on vital working time and inhibiting economic growth and productivity. The results mean that, for a business dealing with emergency waste on an average monthly basis, more than half are likely to lose up to 84 working hours a year – the equivalent of 10.5 working days – dealing with this problem. This time can easily result in business losses of thousands of pounds per annum.

To tackle this issue, Biffa has launched the new 321 Gone service under the OneCall family following customer feedback asking the firm to deal with smaller quantities of unplanned waste quickly and responsibly. The new service allows small waste items to be collected, separated, and disposed of, with all recyclable items being put to better use - a reassurance to retailers that they are doing their part to positively impact the environment.

Whether it’s broken furniture, unwanted items, or redundant fixtures, there are times when all SMEs are tasked with removing bulky, infrequent waste items and might not have enough waste or space to warrant hiring a skip. This can result in a build of items on premises, reducing productivity and increasing the risk of accidents in the workplace.

With all FRTB scenarios, a vast amount of market data is going to be needed on a daily basis. And if there is not an optimised process to minimise market data costs, then things can start getting out of hand pretty quickly.

The risk engine providers are being told by clients that the market data problem is one of the digest challenges they face. The truth is that if they stick to the same old processes, market data costs are going to explode.

Jeff Anderson, managing director of Industrial & Commercial at Biffa, said: “Retailers often have a clear strategy for maintaining daily waste, but one-off items that need to be removed can be more difficult. While skips may be a suitable solution for many types of refurbishment work, it’s the less frequent, bulky items that are too small to warrant the cost of a skip and therefore require a more agile and flexible solution. With a range of waste disposal solutions available, many businesses are turning to Biffa’s 321 Gone service to provide a rapid, reliable service in the safe knowledge that unwanted waste will be recycled or disposed of in an auditable and sustainable way.”

Biffa’s new 321 Gone service is available to remove up to three items of bulky, unwanted waste from sites

With this problem in mind, how should regional banks go about trying to better manage, control and optimise their market data costs ahead of FRTB coming into force?

The answer is governance and data management tools need to be more sophisticated than ever before to meet FRTB requirements. After all, FRTB is far

By Tim Versteeg, Chief Sales Officer APAC at NeoXam

more prescriptive than BCBS 239 in terms of what a firm needs to do with its market data.

within five working days and costs just £99.

ISSUE 03 | 22

ISSUE 03 | 23

BUSINESS

social

TRANSPORT

media

AND STORAGE

WHY SOCIAL MEDIA SHOULD BE YOUR BUSINESS’ TOP PRIORITY IN 2018

WITH

an estimated new social media user every 15 seconds, there has never been a better time to turn your business’ social media strategy up a notch in 2018. Company formation experts, Turnerlittle.com, have examined Office of National Statistics data on social media usage amongst British enterprises, as well as considering the main reasons why getting social with your businesses should be your New Year’s Resolution.

According to ONS statistics, only 60% of businesses are using social media.

However, those who use a professional blog provide an even bleaker number at a mere 42% running a blog for their business.

INSIGHT

INDEED

there has been a very small increase in businesses entering the blogosphere since 2016, a mere 12.9%, despite the myriad of benefits this can bring, including aiding your SEO efforts, driving traffic to your site and even establishing yourself as an authoritative figure in your business’ industry. Although small businesses would benefit the most from blogging, Turnerlittle.com revealed that only 38.9% were doing so, compared to 80.4% of companies with over a thousand employees.

HUnsurprisingly, the Information and Communications sector blogged the most, with 67.6% of companies stating that they have a blog.

ISSUE 03 | 24

ONLY 57.6% OF SMALL BUSINESSES USE SOCIAL MEDIA

sectors blogged the least according to the study at only 21.7%. The Retail sector, although better at blogging overall, has seen the smallest increase in this activity since 2013 at a tiny +1.6%. In Britain, on average, only 60% of businesses have a social media presence. However, for small businesses this statistic is even lower, standing at 57.6%. Compare this to enterprises with more than one thousand employees, where 90.3% use social media. Even fewer small businesses link or reference their social media pages on their website, as only 49.5% do so.

Research has revealed that 1 in 5 small businesses will not be investing in social media in 2018. Yet, according to the ONS report, most businesses, across various sectors, cited that they mainly use social media to ‘develop the business’ image or market products’ (23.2% stated this). The second most common reason was to ‘obtain or respond to customers’ opinions, reviews, and questions’.

THESE

ARE TWO VITAL

3 in 10 users find supporting their

favourite brands on social media important.

ISSUE 03 | 25

reasons to be present on social networks, especially when you consider that 77% of Twitter uses stated that they feel more positive about a brand when their tweet has been replied to.

A social presence is equally important when seeking new prospective customers. A whopping 39% of social media users believe that finding out about products and services is an important reason for using a social network. Indeed, when questioned, 13% of social media users said they had clicked an advertisement within the last 30 days.

BUSINESS

BATM ADVANCED

T

COMMUNICATIONS LIMITED

he upcoming EU General Data Protection Regulation has received a good deal of press attention in recent months.

There is a consensus that many businesses will struggle to meet the challenge of GDPR in time for its implementation in May. It was with this in mind that we undertook this major study encompassing businesses large and small across the largest EU economies.

The results reveal an even more alarming picture of GDPR readiness, or lack thereof, than has been reported. Companies have piles of data. Although large enterprises are likely to receive the greatest number of enquiries,

the problem is common across companies of all sizes. According to the ndings from our research a large proportion of companies – 60% – are not GDPR ready.

Our report nds that it will take days, not hours, to rigorously search all databases and collect all relevant data in order to be GDPR compliant. In the absence of a technological solution, businesses will need to hire in some cases many employees on a full time basis just to handle the volume of data enquiries. What is most striking to us, however, is that many businesses appear to be sleepwalking towards a GDPR abyss.

The nes that can be levied for non-compliance will be potentially terminal to some businesses and even the largest companies

and certainly their shareholders - will feel a signi cant impact. A huge number of companies simply don’t understand the dangers of non-compliance, with a large proportion stating that there would be no, or limited, impact both from a nancial penalty and brand reputation perspective.

With almost half of the businesses we spoke to admitting that they were concerned about their ability to be GDPR compliant, there is clearly a lot of work that needs to be done in the next few months. At a bare minimum we believe that 24% of EU businesses should be classed as being seriously “at risk”, with a further 36% being “challenged” in terms of meeting GDPR obligations.

At the heart of the problem is the di culty of locating the data across multiple, often messy, databases. Manually searching will be fraught with error and lead to risk of non-compliance. We think that entity resolution is the only way to discover who is who in companies’ data. Without a means to perform a single smart subject search, we envisage many businesses will not be able to comply within the 30-day obligation stipulated by GDPR. In short, companies are holding a compliance timebomb which only a searchable index can diffuse.

BATM Awarded Follow-On Cyber Security Contract by a Government Defense Department BATM Advanced Communications Limited (LSE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, is pleased to announce that its Networking and Cyber division (“the Division”) has been awarded a significant contract to supply a cyber communication technology solution to a Government defense department. This contract is the fourth such contract awarded to BATM by a national government and is worth approximately $4m over the next 12 months.

BATM was awarded the new contract following the successful deployment of the Division’s solution previously and expects to commence delivery of the contract in Q2 2018 with completion by year-end 2018. The Group anticipates receiving follow-on orders after the completion of this contract.

FINDING THE MISSING LINK IN GDPR COMPLIANCE

60% OF BUSINESSES ARE NOT “GDPR READY”.

THESE ARE THE “GDPR AT RISK” AND “GDPR CHALLENGED” GROUPS REVEALED IN THE RESEARCH.

DR. ZVI MAROM “We look forward to reporting the successful completion of other ongoing proof-of-concept trials taking place currently.”

Dr Zvi Marom, Chief Executive Officer of BATM, said: “We are delighted to have been awarded a contract following the successful deployment of our solution by a national defense department.

Interest in our cyber technologies’ abilities to detect and investigate suspicious network activity and cyber threats continues to increase as governments and their defense agencies seek to prevent potential cyber attacks on their infrastructure and important institutions as well as to secure their communications.”

Locating information on individuals, which could be strewn across many disconnected databases, is vitally important. Entity resolution is the missing link in GDPR compliance. This is why Senzing has undertaken this study.

ISSUE 03 | 26

INSIGHT

ISSUE 03 | 27

BUSINESS

INSIGHT

FIXED INCOME MARKETS TO DOMINATE FX & EQUITIES MOVES The outstanding performance for equities which sent many major indices to record highs may have just paused.

Asian stocks were trading broadly lower on Thursday after Wall Street notched its first daily decline in 2018. It was neither economic data nor earnings that prompted the declines, but rather the selloff in U.S. Treasuries which sent 10-year yields to a 10-month high. The jump in government yields was triggered by reports that China is recommending slowing or halting the accumulation of Treasuries. Although China has reduced U.S. debt holding in the past, we haven’t seen an announcement of this nature. However, China’s foreign exchange regulator stated on Thursday that the report could be based on erroneous information.

So far, it seems that the news from China is politically driven and an indirect message to President Trump who is contemplating trade sanctions against China as a response to the massive trade deficit. Given that the U.S. is poised to boost its debt in 2018 to fund the deficit widened by tax reforms, the result of China selling off a considerable share of its Treasury holdings, would likely precipitate the beginning of a bond bear market.

Treasuries steadied in Asia trade and 10 year yields declined six basis points from highs of 2.60%. Whether we’ll see another test of this critical level will likely depend on tomorrow’s U.S. CPI report.

If the data surprises to the upside, market participants will have to adjust their expectations of Fed tightening. Although interest rate projections have so far impacted only the short end of the yield curve, inflation expectations will drive the longer end, thus, the inflation report tomorrow should be of great importance. With the Cboe’s VIX trading below 10, investors seem unfased about the spike in yields. However, another sharp spike in interest rates will bring equity valuations into question which may trigger a long-awaited correction in stocks.

Although higher long-term yields ought to be good news for the U.S. dollar, this is only true when they are moving for good reasons, such as economic expansion and the return of inflation. If news breaks that China slows or halts the purchase of Treasuries, expect the dollar to continue selling off, particularly against the Yen. It’s a sad day for the Crypto world. Bitcoin, Ethereum, and Ripple all fell double digits on Thursday. After the Legendary investor Warren Buffett warned that cryptocurrencies would come to a bad ending, South Korea’s justice minister said the government was

By hussein sayed Chief Market Strategist at FXTM

working on a bill to ban cryptocurrency trading. If the bill is passed by the country’s parliament, expect to see further selloff as more regulators are likely to join the clampdown on digital currencies.

ISSUE 03 | 29

FINANCE

THC

THINCATS

£12M FUNDING

T

hinCats as a brand new corporate identity and website, as well as a completely new look and focus to echo and enhance the developments within the company.

Damon Walford, CDO at ThinCats, said: “With considerable funding to deploy, ThinCats Origination has blossomed into a full team of experienced, finance-smart experts. This has brought about a number of new, key partnerships with brokers and introducers across many regions, introducing a great variety of opportunities and avenues for SMEs to access the funding necessary to grow and develop.”

tspecialist, hinCats, the alternative finance is set to achieve new levels of growth over the next 12 months after celebrating a stellar 2017, which saw it break records, achieve full FCA regulation, treble the Monitoring, Securities and Origination teams, and undergo a full rebranding programme.

The culmination of a year’s hard work delivered a record month in December, with a just over £12m of funding listed on the ThinCats platform, which followed the biggest-ever ThinCats-listed loan of £6.7m to the Chelsea Yacht & Boat Company at the end of September.This was all delivered after a phenomenal year of development and growth – demonstrated by a three-fold increase in the Origination team, now covering the length and breadth of the UK, and a significant increase in internal credit, securities and monitoring, improving deal flow and execution.

Further milestones in 2017 included the conclusion of a £200m funding programme for UK SMEs, alongside institutional investors including Waterfall Asset Management, and made £100m available to manufacturing businesses across the UK, in association with Hennik Edge, a networked advisory team for companies operating in the sector.

Reaching these latest milestones in the final quarter of 2017, ThinCats also undertook a total rebrand in December last year reflecting the evolution of the business.

Sterling bears entered the scene on Friday after British retail sales tumbled sharply in December.

U.K. retail sales slumped -1.5% in December as the unsavoury combination of rising inflation and tepid wage growth sapped consumers’ spending power.

With wage growth consistently lagging behind inflation and putting the squeeze on household incomes, concerns are likely to heighten over the sustainability of Britain’s consumer-driven economic growth. It is becoming clear that Sterling’s appreciation this month had nothing to do with a change of sentiment towards the U.K. economy but rather ongoing

LUKMAN OTUNUGA RESEARCH ANALYST AT FXTM

DAMON WALFORD CDO AT THINCATS

Damon added: “It has been quite a year, and we go into 2018 with a very full pipeline, new partners, relationships developing throughout the UK, and high hopes for another successful year for all.”

ISSUE 03 | 30

Dollar weakness and market optimism over a soft Brexit.

With political conflict at home still a recurrent theme, and weak economic fundamentals eroding investor appetite for Sterling, the GBPUSD’s upside potential could be limited. From a technical standpoint, the GBPUSD continues to follow a bullish trend on the daily charts.

The breakout above 1.3850, could pave a way higher back towards 1.3920 and 1.4000, respectively. Alternatively, a breakdown below 1.3850, has the ability to trigger a decline back to 1.3700.

STERLING DOLLAR AND GOLD IN FOCUS Dollar sulks near three year low

Commodity spotlight – Gold

The Dollar was pummelled and pounded by investors on Friday thanks to growing fears of a possible U.S. government shutdown. Sentiment remains bearish towards the Dollar with further downside on the cards, as political uncertainty in the United States weighs heavily on the currency.

From a technical standpoint, the Dollar Index is heavily bearish on the daily charts. There have been consistently lower lows and lower highs while prices trade comfortably below the 50 Simple Moving Average. The 91.00 has acted as a minor resistance this week with some support found around 90.30. An intraday breakdown below 90.30 could invite a decline towards 90.00.

Gold found support on Friday in the form of Dollar weakness and market anxiety over a potential U.S. government shutdown.

With the Dollar struggling to gain ground and at the mercy of political uncertainty in Washington, the yellow metal is likely to remain buoyed.

Taking a look at the technical picture, Gold continues to fulfil the prerequisites of a bullish trend as there have been consistently higher highs and higher lows. There is a possibility that a new higher low has been created at $1324.15 and as such could provide a foundation for bulls to elevate prices back towards $1340. A decisive breakout and weekly close above $1340 could pave a path towards $1360.

ISSUE 03 | 31

FINANCE

WILL THE U.S. DOLLAR FIND SUPPORT THIS WEEK?

surrounding the infrastructure bill, trade tensions, and border wall funding. So expect some volatility as he speaks.

The Federal Reserve is expected to leave policy unchanged when it announces the rate decision on Wednesday. Given this is the last meeting Chaired by Janet Yellen, I don’t expect much out of it. However, any tweaks in the statement may be slightly hawkish given that inflation expectations has risen to its highest levels since 2014.

If neither of these two events support the dollar, Friday’s jobs report will be given a chance to do so. After a disappointing figure in December, markets are anticipating 175,000 non-farm payrolls have been added in January. Moreover, since the return of inflation is becoming a hot topic, wage growth will be under the traders’ microscope once again. This is where we might see a surprise- driven by increased bonuses following the tax reforms.

The U.S. dollar’s worst start in 21 years has reminded many investors of trade wars, particularly after U.S. Treasury Secretary Mnuchin commented about the benefits of a weaker dollar and the decision by President Trump to impose tariffs on imported solar panels and washing machines.

However, these aren’t the only factors that have contributed to the dollar’s weakness.

Traders across the globe are highly anticipating the end of stimulus from major central banks, including the BoJ and ECB. This has been reflected in sovereign and corporate bond markets where yields on more than $800 billion of debt moved into positive territory.

The rise in U.S. bonds yields are doing little to support the greenback, simply because yields elsewhere are also moving higher, but if spreads continue to widen, the dollar should begin attracting some inflows.

The week ahead will be a busy one, and focus will remain on the U.S. dollar. Mr. Trump will deliver his first State of the Union address to Congress on Tuesday.

Although he is highly likely to declare a victory over the tax overhaul, and how his actions boosted the American economy and stock returns, investors will be focused on any details

HUSSEIN SAYED

ISSUE 03 | 33

CHIEF Market Strategist at FXTM

FXTM

HUSSEIN SAYED

FINANCE

INNOVATIVE FINANCE ISA - P2P UNCOVERED

JOHN WILLIAM GUNN Executive Chairman and Founder SynerGIS Bonds With the average classic Cash ISA offering interest rates as low as the British weather is cold, it is no wonder that the roll out of the Innovative Finance ISA is causing quite a stir. The P2P sector has exploded, with a combined £11,867,622,207 historically lent by the industry. With promises of returns eclipsing 20%, one cannot be blamed for wanting to find out more.

So how does it work? How achievable are these returns in the long run? Most importantly, how safe is your money?

First off – P2P lending is inherently risky and inexorably tied to the cyclical boom and bust of modern day economies, and thus the performance of loans which make up your returns will fluctuate. Will your investment withstand a recession? In the pipeline for the coming years is the economic effects of Brexit – one does not need to be reminded how this may affect small UK businesses. To even the most sophisticated investor, the premise of a Cash ISA conveys a sense of security and longevity with regards to the security of your capital. In stark contrast, The Innovative Finance ISA is a whole other animal: its main downfall being the absence of participation in the Financial Services Compensation Scheme, which protects banks and building society deposits up to £85,000. £50,000 is afforded to investment products in the event that the vendor of the product becomes insolvent. The Financial Conduct Authority are currently mulling over a £35,000 increase in this investment protection cover, bringing it in line with standard deposit protection. This is bad news for the Innovative Finance ISA providers and the P2P lending sector in general, making their product relatively less attractive – your capital is entirely at risk.

The next issue is undoubtedly the existence of a provisional fund. A high percentage of loans go wrong. 2011 saw ‘Prosper’, an American P2P lender, with a mere 64.19% loan completion rate – think of a provisional fund as an insurance fund against bad debt.

How big is this fund? How often is it dipped into? In behavioural economic terms, the existence of this fund creates what we call ‘moral hazard’. It induces reckless behaviour on the part of the investor due to the perception of insurance against any loss of funds, unconditionally. Unfortunately, the deployment of these ‘rescue funds’ is not guaranteed and is used at the discretion of the P2P provider. It is always important to undertake due diligence of the Innovative Finance ISA provider, and what kind of companies they lend to, and upon what conditions. Talks are ongoing to make the industry more transparent, with firms potentially having to disclose default rates.

ISSUE 03 | 34

Perhaps the most astonishing problem in the P2P lending market (among investors with even a moderate tolerance level, and among advocates of credible underwriting for that matter) is the absence of security tied to the loan. ‘Unsecured’ lending is commonplace within the industry and offers no redemption of any asset should the borrower default on their loan. In turn, more pressure is applied to the provisional fund in which a limited and dwindling amount of ‘get out of jail’ money sits.

The automated bidding process that reconciles lenders with borrowers can lead to diversification issues.

There is no mechanism to determine what industry, sector and beta of company the loans go to for your individual investment. Noted, you can often Hchoose the level of risk that you expose yourself to, but this is seen by a mere 3% difference in expected return, with no concrete difference in lending portfolio available to the investor to see, and therefore make an educated decision.

Finally, to sell your loan in secondary markets, there needs to be a buyer – who will likely acquire the loan at a discount to face value – resulting in a marginal loss. Not to mention fees present on platforms. These factors can all erode the returns and in some circumstances, your initial capital deposit. Remember: this can’t be filled up again until the next tax year if it has reached the £20,000 threshold.

It is inevitable that P2P will suffer during an economic downturn: Zopa default rates did rise from 0.18% in 2006 to 5.10% in 2008.

ISSUE 03 | 35

INVESTMENT

NATIXIS

INVESTMENT MANAGERS ACQUIRES STAKE IN AIRBORNE CAPITAL

NATIXIS

FUNDING BOOST PROMOTES FLEXIBLE WORKING AT HUB 26

JEAN RABY

CEO of Natixis Investment Managers, said:

“Airborne Capital combines an experienced management team, a strong track record and a unique model to investing in real assets in the fast growing commercial aviation sector. We look forward to partnering with Airborne as they continue their ambitious growth. As demand for alternative and real asset classes grows, we will continue to invest in the ability to bring our clients the best solutions available.”

N

atixis Investment Managers, one of the world’s largest asset management firms and the asset management arm of French bank Group BPCE, has acquired a minority stake in specialist aircraft lease and asset management firm Airborne Capital. The stake was acquired for an undisclosed sum from the existing shareholders, comprising Airborne’s founding management team and FEXCO, Ireland’s largest privately owned financial services company.

The deal provides Airborne with access to a worldwide asset management platform which will help to accelerate its plans to grow the business to have aircraft assets under management of over $5bn within the first 5 years of operations. The transaction enables Natixis Investment Managers to continue to expand its expertise in alternative investments, specifically real assets.

A LUXURY SERVICED OFFICE COMPLEX, Hub 26, is being developed in West Yorkshire thanks to a funding boost from NatWest. Just next to the M62, the family-run, 27,000 sq. ft. development offers flexible office accommodation, which is linked to major transport routes and local airports for commuters. The funding from NatWest has enabled its owners to further expand the Hub 26 site, creating a members’ lounge and a fully-equipped fitness centre opening in January 2018. As well as creating a collaborative and modern working environment for businesses in the area, Hub 26 has generated 10 new jobs for the local community. More jobs are expected to be created as the family increases its site portfolio.

Simon Winterburn, Relationship Manager at NatWest, said: “It’s an exciting time for Hub 26. With people spending a lot of their time at work, tenants are looking for office accommodation that promotes a healthy work-life balance. This is reflected in Hub 26’s latest development project.

“The luxury offices are a true example of a new era of work space, and we wish the Potticary family continued success with their latest business venture.”

Airborne was launched in November 2017 by a management team with over 100 years of combined experience in aviation finance, including with Natixis, one of the leading banks in aviation financing, where Ramki Sundaram, CEO of Airborne Capital, was previously Global Head of Aviation. The company’s strategy is to assist capital providers looking to invest in an emerging asset class in an environment where the aviation industry is set for rapid growth in fleet size, and traditional sources of bank finance are reducing.

Airborne invests in aircraft as an asset class across a number of investment strategies with the aim to generate stable, long-term, non-correlated returns.

RAMKI SUNDARAM CEO OF AIRBORNE CAPITAL “We are delighted to welcome Natixis Investment Managers as a shareholder in Airborne Capital. It is a strong sign of confidence in our strategy to gain the support of a top international asset manager and will help accelerate our growth plans. We see opportunities to work closely with them on structuring future deals.”

The asset class is mobile and global by nature, and the two primary investment themes feature either the pursuit of stable long-term returns with high yield underpinned by contracted cashflows or the pursuit of a higher return strategy based on opportunistic investments driven by market dislocations.

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Daniel Potticary, Managing Director of Hub 26

“HUB 26

is a unique, flexible and dynamic office environment, perfect for housing a range of companies, from start-ups to sole businesses and larger organisations. “Thanks to the commitment from NatWest, Hub 26 is able provide facilities which meet the lifestyle needs of our tenants and the changing way in which people do business. We look forward to welcoming new and existing tenants to the lounge area and fitness centre in the new year.”

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INVESTMENT

IN

LIGHT OF RECENT

developments in cryptocurrency and the rise of blockchain as a powerful force in the world of online investments, ArtMarketGuru have released an industry report focused on blockchain in relation to the art market.

As the world’s leading software platform for digital assets, blockchain offers buyers the opportunity to conduct transactions with no intermediary, and greatly impacts the digital economy. Recently stated as one of the fastest growing skill categories by CNBC, understanding blockchain technology is fast becoming a valuable and soughtafter asset in business as more and more transactions begin to

FREDERIC DE SENARCLENS FOUNDER OF ARTMARKETGURU

ISSUE 03 | 39

the world of cryptocurrency. With developments occurring each day in this emerging technology, this report is perfect for those seeking to understand what blockchain is all about In relation to the art market, blockchain has several important functions, promising to revolutionise the world of art buying and helping to make it as operationally transparent as any other sector.�

AND PROTECT INVESTMENTS IN ART THROUGH BLOCKCHAIN TECHNOLOGY

move into a digital sphere.

The report provides investors the information they need to understand the basics of blockchain technology, how it applies to areas where the technology intersects art markets, and the issues to deliberate when considering investment. How to Make and Protect Investments in Art through Blockchain Technology identifies main due diligence points for each application of blockchain on the art market, providing information on how the technology will impact art sales, authentication, transport and insurance, amongst other considerations. This expert industry report is the perfect companion for investors and art market players seeking to understand the basics of this evolving technology, available at a price of $349.

Blockchai technology has proved to be a powerful force in

HOW TO MAKE

M&A WATCH: TBC

GATTAI, MINOLI, AGOSTINELLI & PARTNERS AND DENTONS ADVISE ON MONVISO SALE FROM PM & PARTNERS TO Céréa PARTENAIRE.

PM & Partners SGR announces the sale of Monviso S.r.l, a leading manufacturer of gourmet and healthy bread substitutes. PM & Partners invested in Monviso in 2012. After strengthening the company’s operations and management, including the appointment of Alessandro Manfredi Cusmano as CEO in 2013, the company has grown organically through the expansion of its product range and presence abroad, as well as through the acquisition of Biscotteria Tonon S.p.A. in 2015. PM & Partners sold its controlling stake in Monviso (approx. 96%), while executives disposed of the remaining stake, to Altabread S.r.L., a company controlled by French private equity firm Céréa Partenaire through its fund Cerea Capital II Italia and by funds managed by Capzanine. Alessandro Manfredi Cusmano will remain as chief executive officer of the company, while Marco Visentin will be the chief financial officer. Monviso’s management will retain a 5% stake in Altabread alongside Céréa Partenaire Founded in 1936, Monviso is a Piedmont-based company operating four plants in Torino, Asti, Pavia and Verona. Under the Monviso brand, the company produces different product ranges, such as Breakfast (which includes the renowned Biscotto Salute), Wellbeing (low-salt products and Io Sono rusks), Organic, Snack and Pastry.

Gattai, Minoli, Agostinelli & Partners acted as legal advisor to PM & Partners, with a team composed by partner Sebastiano Cassani, senior associate Guido Cavaliere and associate Roberto Garrone for the corporate profiles; and by partner Marco Leonardi and associates Federico Tropeano and Cristina Cupolo on the banking profiles.

Vitale & Co. acted as financial advisor to the sellers with a team composed by Alberto Gennarini, Valentina Salari and Raffaele Ciccarelli.

Emanuela Pettenò of PwC carried out the vendor due diligence.

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GAVIN SEWELL

Dentons acted as legal advisor to Céréa Partenaire, with a team composed by partner Alessandro Dubini, managing counsel Filippo Frabasile and trainee Marco Martinelli on the corporate side; by partner Alessandro Fosco Fagotto, senior associate Edoardo Galeotti and associate Tommaso Zanirato on the banking profiles; while partner Andrea Fiorelli and associate Matteo Chinaglia on the tax matters.

CEO OF HONCHO

Gitti and Partners advised the funds managed by Capzanine with a team composed by partner Vincenzo Giannantonio, senior associates Cristina Cavedon and Giacomo Pansolli, and associate Francesco Mirizzi. Funds managed by Céréa Partenaire and Capzanine partially financed the transaction by means of a mezzanine loan. Gitti and Partners assisted the funds with a team comprising partner Vincenzo Giannantonio, counsel Daniele Cusumano, senior associate Filippo Rota, associate Gloria Manunza and junior associate Francesca Annibale.

Grant Thornton and Long Term Partners respectively carried out the financial and business due diligences. Andrea Pagliara and Adriano Adriani of Brera Financial Advisory were the financial advisors to the buyers. Simmons & Simmons advised the pool of banks involved in the transaction, composed by Crédit Agricole Italy (arranger and agent bank) and Banca Nazionale del Lavoro, with a team composed by partner Davide d’Affronto, supervising associate Ilaria Griffo, and associates Alma Migliorini and Vanessa Malena. Giovannella Condò of Milano Notai handled the notarial aspects of the deal.

Founded in November 2012, Gattai Minoli Agostinelli & Partners is a law firm specialising in Corporate and M&A, Banking & Finance, Tax, Restructuring, Real Estate, Employment, Intellectual Property and Dispute Resolution. With a team of over 80 lawyers – 20 of whom are partners – the Firm boasts a leading position in the private equity and corporate finance sectors.

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M&A WATCH: TBC

TECH.CO ACQUIRED BY PUBLISHING TECH COMPANY

MVF ONE OF THE UK’S FASTEST growing customer generation businesses, has announced the acquisition of US technology news brand, Tech.co.

It was reported this week that a record number of UK businesses were the target of international buyout in 2017, MVF bucks this trend with continued growth and another substantial acquisition.

Founded in the US in 2006, Tech.co has transformed from a community-building ‘Tech Cocktail’ event to an influential media brand with millions of readers around the world. MVF presently operates a suite of global publishing sites, using expert articles and informative reviews to connect active customers with businesses all over the world. The purchase follows MVF’s acquisition of UK business site startups.co.uk in February 2017, and is part of the company’s ambitious growth plans as it aims to expand its global reach by acquiring high authority digital brands.

MICHAEL TEIXEIRA

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MVF CEO Michael Teixeira “Tech.co is the perfect addition to our portfolio - it is a respected publishing site with an established reputation for providing tech news to an engaged community. We believe we can grow the brand’s audience by further investing in great content and useful resources for global readers while applying our unique Hlead generation platform and cross-channel digital marketing expertise.”

Tech.co cofounder Frank Gruber commented “We are incredibly proud of the brand we have created over the last decade, growing it from a community event series to one of the world’s leading tech publishers.”

M&A WATCH: TBC Alston Elliot is partnering with some of the leading technology providers in the sector to maximise its position in this new market.

Inflexion’s in-house digital expertise will support management in its development of next-generation software to improve the quality of its services as well as to futureproof the business.

JAN 2018

The Inflexion international team will aid the continued international growth. The Inflexion deal team comprised of Andrew Mainwaring, Richard Wootten and Robin Senivassen, Andrew and Richard will join the board upon completion. Andrew Vaughan has been named Chairman of Alston Elliot. This investment was made by affiliated funds advised by Inflexion Private Equity Partners LLP.

INFLEXION Inflexion Private Equity is pleased to announce it has completed the buyout of Alston Elliot, a leading provider of premium datadriven graphics solutions for live sports broadcasts.

Alston Elliot was founded in 1992, initially to provide computerised graphics to the BBC for its coverage of test cricket and World Snooker events. Today the business employs more than 100 people across its offices in London, Johannesburg, New Delhi and Melbourne with clients including Sky, BT, ESPN, Fox, Star, SuperSport and the BBC. The business is led by CEO Nick Baily, who has 27 years’ experience in the TV sports broadcast industry.

Sport is widely considered to be the last live TV event as many other programmes have moved to catch-up streaming services, and this makes it uniquely appealing to broadcasters and advertisers. As a result, broadcasters are competing fiercely for rights over prime sports content. Additionally they are broadening coverage in women’s sport, “lower league” exposure and new activities to fill the expanding airtime, much of which requires the support of Alston Elliot’s services to enhance the action. New technologies are powering the rapid growth of sports viewing “on-the-move” through mobile devices creating a fresh channel for datadriven sports graphics.

NICK BAILY CEO OF ALSTON ELLIOT

“We are delighted to have found the right partner with whom to embark on our next phase of growth.

Inflexion’s digital expertise and global reach will be invaluable as we continue to develop our business.”

ACQUIRES ALSTON ELLIOT

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ALSTON ELLIOT TIM SMALLBONE HEAD OF ENTERPRISE FUND We are excited to be working with such an experienced management team in a dynamic market segment. Alston Elliot has built a high quality offering and an enviable reputation with some of the world’s leading broadcasters.

We look forward to working with the team to help broaden the service offering, expand into other sports and build the international business.”

Alston Elliot (AE) is globally recognised as one of the world’s leading providers of television sports graphics and data solutions to broadcasters and governing bodies. Its head office is located in the UK with thriving subsidiary companies in South Africa, India and Australia. AE is the current, official graphics supplier to Rugby World

Cup, all ICC cricket events, BCCI’s international and domestic cricket, including the IPL, the Ashes, the Big Bash and Europe’s premier international rugby tournament, the Natwest 6 Nations.

It has long standing working relationships with many of the world’s most eminent broadcasters including Sky, BT, BBC, ITV, Fox, SuperSport, Star TV and Channel Nine, delivering services across a range of sports including football, rugby, cricket, tennis, snooker, darts, hockey and kabaddi. AE offers a complete, turnkey solution to its clients from graphic conception and design, to bespoke software applications and data collection, pundit driven analysis systems, striking augmented reality content, sports news packages, hardware and engineering support and dedicated project management.

Its frontline delivery is achieved using experienced and highly skilled sports specialist graphics operators.

INFLEXION is a UK mid-market private equity firm, investing in high growth, entrepreneurial businesses with ambitious management teams and working in partnership with them to accelerate growth. Inflexion’s flexible approach allows it to back both majority and minority investments, typically investing £10m to £150m of equity in each deal.

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M&A WATCH: TBC

PROFIT MARGINS BACK TO PRE-CRISIS LEVELS GERMAN CORPORATE SECTOR RUNS DOWN SURPLUS Latest data shows the ECB’s preferred macro measure of profit margins in the euro area (the gross operating surplus of non-financial corporations to the gross value added of non-financial corporations) rising to 41.4% in Q3 2017 from 41% in Q2 (see first chart). This is the highest figure recorded since Q3 2008 when following the onset of the first euro area downturn (GDP went on to fall again between 2011 and the first quarter of 2013) profit margins were coming under increasing pressure. Profit margins at a macro level are now back to their levels of 2005 and 2006, when the euro area was also surprising on the upside (GDP growth Y-o-Y went to hit 3.8% in Q4 2006). Moreover, Q3 2017’s figure of 41.4% compares with the 40.6% average figure recorded between 1999 Q1 and 2007 Q4. In particular, profit margins are already significantly higher than in 1999 and 2000 when euro area growth was effectively booming (GDP growth Y-o-Y peaked at 4.5% in Q2 2000 in the middle of the Dot-com bubble).

The other encouraging trend is what has been seen with the German corporate sector financial surplus. This was 2.6% of German GDP in Q2 2017, but fell by a full percentage point in Q3 to 1.6%. Economics 101 tells a story of a financial system that recycles the excess savings of the household sector over to non-financial corporates who then invest for future growth. A growing corporate sector deficit can also be financed by foreign capital inflows, but normally there is a limit to how far these imbalances can develop, particularly if the household sector also swings into large deficit. One of the issues with the euro area recovery to date is that it has been occurring against the backdrop of a German corporate sector, in particular, that was running a very large surplus, something that really shouldn’t be happening at this stage of the German economic cycle.

The counterpart of this large German corporate sector surplus was, along with a large household sector surplus and a government budget surplus, an outsized current account surplus and record low German bund yields. If this trend is now starting to go into reverse this is an encouraging signal for the euro area recovery more generally, especially if the German corporate sector swings into deficit.

W

hen it comes to France, its non-financial corporate sector has been in deficit (2% of GDP in Q3 2017). And, with Italy where the recovery is still in its early days and the downturn was so severe and so prolonged, improving corporate cashflow may first go into balance sheet repair (see first chart), further increasing the importance of Germany for taking the recovery to a new level. A breakdown also reveals the surplus of the corporate sectors of the Netherlands and Finland (see second chart). It is also no coincidence that the countries with structurally large corporate sector surpluses also have Central Banks with large TARGET-2 claims on the rest of the Eurosystem, all wrapped up with historically low interest rates.

One of the defining features of the euro area prior to the financial crisis was how large some of those imbalances became, with investors and policy makers continuing to miss-price the growing risks of recessions and default, even though the data was freely available for those that looked. Of the larger economies, Spain was the most obvious example of this, where a prolonged recession became more and more inevitable the bigger the corporate sector deficit became. It peaked at 9.4% of GDP in Q3 2008, the largest figure we have seen for a larger more developed economy. Late in the day perhaps there is now much more focus on theses imbalances, but for an economy like Germany its corporate sector should be running a deficit of between 2-3% of GDP, not a surplus of 1.6%, albeit down from a peak of 4.4% in Q2 2016. And, what of the household sector? As a general rule, the household sector of the euro area is always in large surplus, in contrast to what we find for periods for economies like the UK and US. But, again this finding is biased by Germany. Exclude Germany from the picture and the household sector of the rest of the euro area was running a deficit for much of the period between 2005 and 2008, again heavily distorted by economies like Spain (see first two charts below). However, it also true that there remains a relationship between the household saving ratio and trends in the euro area labour and housing markets (see final chart). Latest figures may suggest that German house prices grew by only 3.6% in the year to Q3 2017 (precisely the same figure as the German unemployment rate) compared to 4.1% for the euro area overall, but clearly an improving trend is underway. As confidence in the recovery builds, so the EZ household saving ratio (put at 12% in Q3 2017) could also decline significantly.

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ABLYNX

•ABLX BB•

AGREED ACQUISITION

BY SANOFI FOR €45/SHARE

The Boards of Sanofi and Ablynx have both unanimously approved a €45/share ($56/ADS) cash acquisition, for a €3.9bn equity value, representing c.110% premium to the early-Jan stock price prior to Novo going public with its bids.

Recall our potential takeout NPV was €49/$60 per share/ADS factoring-in possible positive newsflow this year and €7/share platform value, hence we view the agreed bid to be fair and doubt counteroffers will emerge.

Agreed deal with Sanofi: Both Boards unanimously approved the €45/share cash acquisition of Ablynx

by Sanofi (SAN FP, €73, Hold) for an equity value of €3.9bn. Recall in December-January Ablynx’s Board rebuffed cash bids of €26.75/share and up to €30.5/ share from Novo Nordisk (NOVOB DC, DKK348, Hold) declining to enter into talks. This was justifiable, in our view, given our higher basecase standalone NPV. The €45/share agreed price from Sanofi is shy of our €49/$60 potential takeout NPV but seems reasonable given entirely in cash with no CVRs triggered by pipeline news. To derive our takeout value we adjusted the €31/$38 standalone NPV by: (1) synergies for commercialising capla (+€6/ share); (2) upsides from Phase II success for voba in lupus and ALX-0171 in RSV this year (+ €4.5/share); and (3) platform value based on a conservative just 5% of >€10.6bn milestones from existing deals (+€7/share).

We doubt counteroffers will emerge This is the second acquisition by Sanofi this month in Orphan diseases and haematology, hot on the heels of Bioverativ (BIVV, $103, Hold) for $11.6bn. Ablynx’s lead product caplacizumab for rare blood disorder acquired thrombotic thrombocytopenic purpura (aTTP) should complement this franchise, in our view. Sanofi management also states it intends to maintain and support the Ablynx facility in Ghent, Belgium, and has other R&D programmes in RSV suggesting interest in anti-RSV NanoBody ALX-0171.

Given these synergies and the agreed nature of the deal, we do not expect counterbids from rivals.

Capla is a potential game-changer Caplacizumab significantly curtails costly plasma exchange, a risky procedure, reduces the risk of exacerbations, and protects organ damage, providing a window for physicians to resolve the underlying disease acquired TTP. We expect EU approval during 3Q18E, with FDA filing shortly for 1H19E US launch. We envisage highly profitable $500m WW peak sales from 70% penetration, assuming it is widely adopted as a standard-of-care, for a €24/share NPV at 100% probability.

Pipeline has significant optionality ALX-0171 Phase IIb RSV results are anticipated 2H18E and this asset remains fully-owned by Ablynx. Phase II results for vobarilizumab in systemic lupus erythematosus are expected 1H18E, triggering an opt-in decision by AbbVie (ABBV, $123, Buy), which would also include the arthritis indication. Focus partnered programmes include two Nanobody drugs from the I-O collaboration with Merck (MRK, $62, Hold) likely to enter the clinic this year.

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M&A WATCH: TBC

THE UK M&A MARKET FIRST QUARTER 2018

UK DOMESTIC DEFENSIVE MERGERS SET TO CONTINUE With the recent softening of the UK economy, together with uncertainty caused by Brexit and heightened corporate vulnerability to foreign takeovers, 2017 saw a significant number of large defensively focused mergers in the UK. In 2017, there were 523 transactions worth £53.8bn between UK-based companies, which is a 75% jump in value versus 2016 (£30.6bn). In particular, domestic acquirers in industries under cyclical or structural pressures (e.g. consumer retail, financial services, real estate and engineering) are participating in significant UK-based consolidation. Examples from last year include the £11bn merger between Standard Life and Aberdeen Asset Management, Wood Group’s £2.2bn all-share offer for Amec, Tesco’s £3.7bn acquisition of Booker, Hammerson’s £3.4bn offer for Intu and GVC’s up to £4.0bn offer for Ladbrokes Coral.

Since the UK voted to leave the EU, consumer confidence has been hit as disposable incomes have been eroded by higher inflation and depressed wage growth. In the Q4 example of GVC-Ladbrokes, the firms were also facing political uncertainty as the industry awaits the outcome of the government’s review into fixed-odds betting terminals. From a valuation perspective, GVC was able to bridge the uncertainty of the review through a contingent value right (CVR) structure – providing an element of contingent consideration. Whilst relatively rare in a UK PLC context, the transaction is a good example of how the CVR mechanism can be used to bridge valuation gaps. More broadly, it does seem as though UK high street retail is in long-term decline as consumers shift their shopping and gambling online. This was no doubt a key driver of the Hammerson-Intu transaction announced in Q4 where there are fears that traditional bricks and mortar retailers could continue to be impacted

by Amazon and other online rivals. We expect these factors to persist in 2018 in the lead up to Brexit and to drive further UK defensive mergers.

2017 US TAX REFORM SHOULD FAVOURABLY IMPACT US CORPORATE M&A APPETITE WHICH COULD ADD TO ROBUST USUK M&A DEAL FLOW In our view The Tax Cut and Jobs Act of 2017 will have a favourable impact on M&A deal activity amongst US corporates.

Specifically, the resulting increase in US profits, coupled with the “deemed repatriation” of profits back to the US, should create additional dry powder for investments, including acquisitions. And with more money available for deals, acquisition multiples paid by US acquirers could expand further in the near-term. In addition, there is an expectation that tax reform will lead to increased US economic growth, which should lead to enhanced confidence in the executive suite and corporate boards, further strengthening M&A activity. In our view this backdrop should be additive to the robust US-UK M&A deal flow seen in 2017.

The reduction in the US corporate rate to 21% should increase after-tax cash flow for US corporates, resulting in higher cash balances, driving up company values and the prices acquirers should be willing to pay in an M&A transaction.

JEFFERIES MERGERS & ACQUISITIONS Whilst a lack of visibility on the UK outlook post-Brexit may have stalled some potential deals, overall the UK M&A market has been extremely healthy.

There are several factors behind this outcome.

Overseas companies have taken advantage of Sterling’s weakness and the pace of inbound M&A has remained robust (£70.3bn of transactions across 255 deals(1) in 2017).

STRONG 2017 UK M&A MARKET OUTTURN BELIES PREDICTIONS OF A DOWNTURN IN ACTIVITY POST-BREXIT VOTE In the period immediately following the UK’s vote to leave the EU in June 2016 there were fears from some quarters that the vote would lead to a significant decline in UK M&A activity and investment. However, the full year outturn figures for 2017 show a resilient UK M&A market with total UK M&A deal value reaching £195.2bn across 1,071 transactions.

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Despite Sterling’s weakness, UK companies have also continued to undertake outbound M&A at a healthy pace, particularly into the US, as we highlighted in our update during Q3. The domestic UK-to-UK M&A market has also been robust, with multiple large-sized defensive consolidations forming a significant part. We discuss the drivers of the defensive merger trend in more detail below.

While there will be offsets to the lower rate, including limiting deductibility of interest expense, other factors, such as the immediate expensing of certain qualified property, will accelerate tax benefits on capital investments (albeit at a lower tax rate), further adding to cash balances. We expect that US companies benefitting from the new tax regime will use some of those funds to accelerate growth through acquisitions, including outbound deals. Admittedly, M&A by US companies outside their home country has already been a significant use of offshore trapped cash for a number of years (i.e. invest rather than repatriate to the US and pay tax) although we still feel that the overall benefits of the recent tax changes may provide the final impetus for some US companies to pull the trigger on incremental outbound M&A. Of course, the US tax changes also have implications for inbound M&A. Perhaps somewhat surprisingly given the £/$ fx rate, in 2017 UK firms spent a total of US$109bn acquiring US companies, up 272% from 2016 (US$29.3bn). All else being equal, the tax reforms also make US businesses more attractive to UK acquirers.

SHAREHOLDER ACTIVISM NOW IN THE MAINSTREAM IN THE UK – UK CORPORATES INCREASINGLY LOOKING TO PRE- EMPTIVELY BOLSTER DEFENCES AGAINST ACTIVISTS 2017 was perhaps the year that shareholder activism really entered the mainstream corporate consciousness in the UK. Activist funds historically grew up in the US but have increasingly targeted European public companies in the last few years. In the UK, 2017 saw one of the most prominent global activists, Elliot, target both Smith & Nephew and BHP Billiton. For a number of weeks in Q4, the financial press was also filled with TCI’s attack on the London Stock Exchange itself in relation to the departure of the CEO. In Europe overall in 2017, there were 42 public activist situations involving target companies with >€1bn market cap (and many smaller situations) compared to only 16 such situations in 2014. A key reason for the uptick in activity is that activist funds have generally performed very well relative to other asset classes – it was recently reported that TCI made 28.2% in 2017 for example. As with all asset classes, historical success leads to ever greater fund inflows so we expect activist activity to continue to increase. We have found that activism is increasingly on the radar of UK corporates as a result, even before there is any sign of activism around a particular company. Whilst historically boards and defence pitches have focused on unsolicited offers, our defence work with clients is now equally addressing the risk of activism (and indeed, Jefferies has a strong track record of understanding activist behavior by US funds).

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M&A WATCH: TBC

M&A WATCH: TBC

EXPERIENTIAL EVENTS AGENCY CLIVE JOINS FIRST

ASCENTIAL PLC ACQUIRES CLAVIS INSIGHT

FIRST, a leading global events and experiential agency operating from offices in London, New York, Los Angeles and Singapore, today announced the purchase of Clive, an experiential live events agency based in London and Dublin.

The terms of the agreement were not disclosed.

By joining forces with Clive in the UK, eighteen months after the successful integration of the Barkley Kalpak Agency in the USA, FIRST has continued with its strategy to add a diversity of exceptional talent and enhance core delivery capabilities to meet the needs of their client portfolio.

“We are really excited about the Clive team joining FIRST - they totally complement our existing capabilities, particularly in the area of experiential marketing and live leading edge events,” said Peter Godfrey, Chairman of FIRST. “Clive has a unique creative culture, a talented team, and a passion for delivering fresh, inspired experiences worldwide for its clients. We share similar values, and are clear that our clients and our people are at the heart of our respective businesses.”

PETER GODFREY CHAIRMAN OF FIRST

FIRST, founded as an events agency in London in 1996, specialises in the design and delivery of high-quality, live events for some of the world’s most iconic companies. Clive helps brands to ‘Communicate: Live’, engaging internal and external audiences through creative live events and digital communication solutions. The agency, established in London in 2010, expanded to Dublin in 2017 and works with some of the world’s biggest brands.

“We have great synergy with FIRST,” said Nick Robinson, Managing Director of Clive. “They have a complementary client base, great people, real ambition, and similar values. This exciting joining together of our teams gives us the opportunity to become part of a global event group. We will leverage local expertise and knowledge in the US and Asia, gain access to infrastructure and processes that we need to support our continued growth, and work with some of the industry’s strongest talent.”

The acquisition increases FIRST’s total workforce to approximately 250 employees worldwide, of which approximately 100 are based in London.

DUNCAN PAINTER

CHIEF EXECUTIVE OFFICER OF ASCENTIAL PLC Clavis Insight, a leading eCommerce insight provider for product manufacturers, announced its acquisition by Ascential plc, an international, business-to-business Information Company. Ascential is listed on the London Stock Exchange and is a FTSE 250 company. Clavis Insight will form a part of Ascential’s Information Services division alongside One Click Retail. One Click Retail, based in the US, provides accurate sales and share estimates at SKU level to help major brands optimize their eCommerce activities, particularly on Amazon. The integration of the two businesses will create an enormous opportunity to provide customers with one of the most comprehensive, accurate and actionable eCommerce insights and analytics solutions across online retailer sites worldwide.

Garry Moroney, Founder and CEO of Clavis Insight, said: “We look forward to joining Ascential and integrating with One Click Retail to deliver the gold standard in eCommerce action-ready insights and performance measurement for product manufacturers. Working with tier one brands around the world, Clavis has grown into a global leader and I am confident that combining the expertise of One Click Retail, and Ascential’s other leading products, will further extend our comprehensive solutions and value proposition for this industry.”

Duncan Painter, Chief Executive Officer of Ascential plc, said: “We are delighted to welcome Clavis Insight and the team to Ascential. By combining the Clavis and One Click Retail product offerings, we are creating a leading eCommerce insights platform globally, with products and services, which are at the forefront of the industry.

Clavis and One Click Retail are both high-growth, globally scalable businesses and we look forward to creating a new, accurate, comprehensive and actionable product, which is greater than the sum of its parts. We are very much looking forward to being able to further support our global customers to assist them in accelerating further their growth.”

Spencer Millerberg, Founder of One Click Retail, said: “We are delighted that Ascential has been able to acquire Clavis Insight. The combination of One Click Retail with Clavis to create a leading eCommerce Insights platform is exactly what our customers have been asking for. It’s a beautiful match.”

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M&A WATCH: TBC

M&A WATCH: TBC

CALERO SOFTWARE ACQUIRES NETHERLANDS BASED A&B GROEP

C

alero Software, LLC a leading provider of Communications Lifecycle Management software and managed services including Telecom Expense Management, Managed Mobility Services and Usage Management, announced today that it has acquired A&B Groep.

RON RIJKENBERG

CO-FOUNDER AND CEO OF A&B GROEP

CHRIS JURASEK

PRESIDENT & CEO OF CALERO SOFTWARE

A&B Groep is a leading provider of Telecom Expense Management solutions throughout the EMEA region and is headquartered in the Netherlands. The acquisition was completed on January 1, 2018. Financial terms were not disclosed.

Premier Logic is the go-to digital transformation company for enterprises that need to fast track their new product ideas. The company has an impressive track record of helping enterprises quickly envision, prototype and launch digital solutions with the end user in mind to accomplish the desired business outcome.

“I am thrilled to welcome the customers and employees of A&B Groep into the Calero family,” commented Chris Jurasek, President & CEO of Calero Software. “A&B Groep expands Calero’s technical, customer service and commercial operations in Europe, and significantly deepens Calero’s local knowledge and presence in more than 30 countries and across more than 100 additional telecom providers. Together, Calero and A&B Groep offer the industry’s most robust and cohesive set of tools and solutions globally. This acquisition represents Calero’s commitment to global investment for our clients and prospects.”

Ron Rijkenberg, co-founder and CEO of A&B Groep and now a Managing Director for Calero added, “Since day one, A&B Groep’s mission has been to become the most trusted provider for telecom expense management services in the EMEA region.

As part of Calero we have accelerated achievement of that goal and joined forces with a partner who truly shares our values of integrity, innovation and high-quality service. I am excited to be partnering with Chris Jurasek, Calero’s management team and Riverside Partners and look forward to my role in leading the combined company’s EMEA operations. Our customers will benefit greatly from our increased resources, complementary TEM solutions and accelerated investment in innovation as part of Calero.

At the same time, A&B Groep’s clients should absolutely continue to expect the same high level of satisfaction, local knowledge, employees and focus on data privacy and security that they have come to expect from us.”

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Michelle Noon, General Partner at Riverside Partners added, “Our investment thesis for Calero anticipated significant growth, both organic and through selective strategic acquisitions, to build the global TEM leader. With a strong year of organic growth in 2017 and the acquisition of A&B Groep, Calero is well on its way to achieving those objectives. A&B Groep stood out to us for its growth-oriented leadership team, high customer satisfaction and deep local knowledge. The acquisition of A&B Groep by Calero provides the foundation for our continued investment in the region. Furthermore, A&B Groep’s talented team and complementary technology capabilities will integrate seamlessly into Calero, enhancing Calero’s position as the market’s first truly integrated global solution.”

“We are delighted to welcome Ron Rijkenberg, Cees Wiedijk and the entire A&B Groep team to Calero,” said Steven F. Kaplan, General Partner at Riverside and Chairman of the Board of Calero. “A&B Groep’s impressive customer base will benefit from the Company’s continued local presence and A&B Groep’s Roosendaal office will now become the EMEA headquarters for Calero. We expect both Calero’s US customers and A&B Groep’s European customers to benefit from the acquisition. We look forward to continuing to invest behind Calero.”

Since its founding in 1999, A&B Groep has combined its significant local expertise, independent and objective analysis and its global reach to enable clients to more effectively manage their increasingly complex telecommunications spend. A&B Groep’s GTEM Solutions include a robust mobility management platform that spans across devices, users, applications, documents and expenses. Additionally, across wireline, wireless and data networks, GTEM Solutions provide valuable financial and usage reporting to its end-users.

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M&A WATCH: TBC

M&A WATCH: TBC

EQT MID MARKET ACQUIRES MANAGED IT SERVICES PROVIDER CANDIDATOR

This partnership is part of the two groups’ strategy of developing a leading omni-channel offering, and will notably cover such aspects as commercial, marketing, logistics and data.

CARREFOUR ANNOUNCES A STRATEGIC PARTNERSHIP WITH SHOWROOMPRIVÉ AND ACQUIRES A C.17% STAKE IN THE COMPANY Thierry Petit and David Dayan, Co-Founders of Showroomprivé, added: “We are pleased with this partnership with Carrefour. It allows us to enter a new stage after the agreement with Conforama, in partnership with one of the world’s leading retailers. It allows us to continue building our omnichannel offering and opens up unprecedented opportunities.”

Carrefour’s equity investment in Showroomprivé will take the form of an off-market acquisition of the block of shares owned by Conforama at price of 13.5 euros per share, for a total amount of c. 79 million euros.

ALEXANDRE BOMPARD CEO OF CARREFOUR

An additional payment will be made by Carrefour to Conforama should Carrefour launch a takeover bid for Showroomprivé within eighteen months of the completion of the transaction. This additional payment will be equal to the difference between the offer price per share made by Carrefour and the acquisition price (13.5 euros), multiplied by the number of shares sold by Conforama.

Alexandre Bompard, CEO of Carrefour, declared: “This partnership is a new step in the acceleration of our digital strategy, in an omni-channel approach. It also allows Carrefour to enter the online private sales market and strengthen its offering. I am convinced of the quality of Showroomprivé’s management and the strong potential resulting from the operational cooperation between our two groups.”

Upon completion of the transaction, Carrefour will replace Conforama in the current shareholders’ agreement between the founders of Showroomprivé and Conforama, under an agreement whose main terms are identical to the existing pact between the founders and Conforama / Steinhoff. The founders will retain 27.17% of the capital and 40.42% of the voting rights. Carrefour will hold 16.86% of the capital and 13.67% of the voting rights.

This transaction is subject to the obtaining of a waiver by the Autorité des Marchés Financiers exempting Carrefour from the obligation of launching

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The EQT Mid Market Europe fund today announced that it has entered an agreement to acquire Candidator Holding AB from the private investment company Sobro and minority owners.

Established in 1997, Candidator is a managed IT services provider with capabilities for full IT outsourcing, providing its clients with mainly contractually recurring services, including cloud, hosting and application management. The Company has approximately 300 employees in Sweden and Norway with annual sales of around EUR 45 million. Candidator has managed to build strong customer relationships within the SME segment by combining customer focus with high quality IT solutions.

EQT Mid Market will support the continued development of Candidator’s growth strategy while strengthening its platform and developing its service offering, both organically and through acquisitions.

The Company is expected to benefit from strong underlying secular trends, including increased share of IT outsourcing and growing cloud adoption.

JOHAN DETTEL PARTNER AT EQT

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Market, White & Case as legal advisor, Bain as commercial consultant and KPMG as finance and tax advisor. All parties have agreed to not disclose the transaction value.

In order to seal this partnership, Carrefour will acquire c. 17% of the share capital of Showroomprivé from Conforama, a subsidiary of the Steinhoff group.

“We are excited about welcoming EQT as our new majority owner. Candidator is entering the next stage of growth in the Nordic managed IT services market and EQT will enable us to continue to develop our platform as well as future-proof our customercentric service offering. Working together with EQT will empower us to build a leading Nordic managed IT services group”, says Johan de Verdier, CEO of Candidator.

arrefour, one of the global leaders in food retail, and Showroomprivé, Europe’s secondlargest online private sales player, announced today the signing of a strategic agreement.

HDR Partners served as M&A advisor to EQT Mid

C

“EQT has monitored the Swedish managed IT services market for a long time and identified Candidator as an attractive platform to drive the consolidation.

We are impressed by Candidator’s strong financial performance and industry-leading customer satisfaction, successfully built by the founders and management. EQT’s expertise within the TMT and Services sectors, coupled with a strong network of Industrial Advisors will support Candidator’s further growth and development”, says Johan Dettel, Partner at EQT Partners, Investment Advisor to EQT Mid Market.

M&A WATCH: TBC

M&A WATCH: TBC

GREAT-WEST LIFECO SUBSIDIARY CANADA LIFE GROUP COMPLETES ACQUISITION OF RETIREMENT ADVANTAGE

revetas capital and cerberus capital

management announce acquisition of bucharest hotel portfolio

PAUL MAHON Great-West Lifeco Inc. has announced that its European subsidiary The Canada Life Group (U.K.) Limited has completed the previously-announced acquisition of financial services provider Retirement Advantage.

Terms of the transaction were not disclosed.

“This transaction strengthens Canada Life’s scale and capabilities in the growing United Kingdom retirement income market, and further strengthens Canada Life’s position as a leading insurer in the U.K.,” said Paul Mahon, President and Chief Executive Officer, Great-West Lifeco.

PRESIDENT AND CHIEF EXECUTIVE OFFICER

The transaction is expected to be earnings accretive, although it is not expected to have a material impact on Great-West Lifeco’s financial results.

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Revetas Capital Advisors LLP and Cerberus Capital Management, L.P. and its affiliates today announced the acquisition of Project Nemo, a leading hotel complex with approximately 86,000 sqm of gross leasable area in a prime location in Bucharest, Romania. The complex includes the Radisson Blu and Park Inn hotels, featuring a total of 697 guest rooms operated by the Rezidor Hotel Group, as well as approximately 7,500 sqm of prime retail space anchored by high-end tenants such as Burberry and Hugo Boss.

The acquisition aligns with both Revetas and Cerberus’ strategies of identifying quality real estate properties and applying investment and operational expertise to make them even more valuable. The investment in Project Nemo is further supported by the portfolio’s existing leadership position within the growing Romanian market — the Radisson Blu and Park Inn are widely recognized as the best hotels in Bucharest within their category.

Commenting on today’s announcement, Eric Assimakopoulos, Managing Partner at Revetas, said, “Project Nemo is one of the most compelling hospitality and retail assets in the CEE region. As the fastest growing economy in the EU, Romania offers tremendous upside potential. We look forward to increasing the value of these properties in partnership with Cerberus.”

Lee Millstein, Global Head of Real Estate at Cerberus, said, “Together with Revetas, we see a strong opportunity to apply our collective real estate asset management expertise to the Project Nemo portfolio. These properties are well poised to benefit from a number of macro trends driving economic growth in Romania. We are excited to bring long-term capital and operational expertise to help the portfolio and its tenants succeed.”

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M&A WATCH: TBC

M&A WATCH: TBC

MARS PETCARE ACQUISITION OF GENOSCOPER

TO ACCELERATE DISCOVERY OF GENETIC HEALTH MARKERS FOR COMPANION ANIMALS Dynamic partnership is longstanding, with duo newly launching WISDOM PANEL™ Health Mars Petcare acquired Genoscoper Laboratories, a specialist in molecular diagnostics for companion animals. The acquisition will accelerate the pace of discoveries in genetics, to form the basis for future practical applications in enabling precision healthcare for pets. Mars Petcare’s genetic testing unit Wisdom Health is a pioneer in this field with its market leading breed detection test WISDOM PANEL. Finland-based Genoscoper, in close partnership with University of Helsinki, created the genetic health testing platform MyDogDNA. Since 2015, Genoscoper and Wisdom Health have partnered to discover new genetic health markers for companion animals and have recently launched a new product for dogs, WISDOM PANEL™ Health, combining breed ancestry with detection of potential inherited health conditions.

“Our world-class genetics research is focused on helping pet owners and veterinarians improve the health of pets with tools that define their genetic predispositions for health and disease. Ultimately this will enable targeted and preventive veterinary care with pets getting individualized nutrition, exercise and treatment,” said Leonid Sudakov, President, Connected Solutions, Mars Petcare. “This is a critical time in the development of genetic testing for pets, which we believe is poised to expand dramatically as breeders, veterinarians and pet owners increasingly understand its benefits, exactly as it is currently happening for humans.”

VEDANTA LIMITED: ACQUISITION OF DEBT CONTROLLING EQUITY STAKE IN AVANSTRATE BY A WHOLLY OWNED SUBSIDIARY OF VEDANTA LIMITED The Board of Directors of Vedanta Limited’s wholly owned subsidiary, Cairn India holdings Limited, have approved an investment of c.US$158 million (the Acquisition) in Japanese manufacturer for LCD glass substrate, AvanStrate Inc. (ASI), currently majority owned by the Carlyle Group.

The transaction consists of three elements: • An acquisition of c.US$151 million in existing ASI debt with face value of c.US$299 million from banks; • An acquisition of just over 51% of the equity stake of ASI for a nominal consideration from the Carlyle Group; and • Extension of a c.US$7million loan to ASI. Through a combination of these elements, this transaction provides both strategic control and attractive returns to CIHL. Completion of the Acquisition is conditional on consents being obtained from ASI’s existing lenders and is expected to occur prior to 31 December 2017.

“Through Genoscoper’s strong research expertise in companion animal genomics, we developed a unique concept that brings top level academic discoveries into practice enabling even further advances; not only scientifically speaking, but for the benefit of entire animal populations,” said Professor Hannes Lohi, Chairman of Genoscoper and leader of the University of Helsinki canine genetics research group. “Our long-term vision has been to adopt the biggest advances in canine genetics research to improve animal welfare, and that exactly is where I see this partnership leading.”

The acquisition was finalized on 27 December 2017, and the companies will manage the transition over the course of 2018.

A few of the benefits of genetic testing include: • Genetic tests can detect which animals might be carriers for specific diseases, so breeders can avoid mating them with another carrier.

• Genetic testing can also identify mixed-breed dogs at risk for developing a genetic condition that may otherwise go undiagnosed; allowing the owner to be counselled as to how to best manage the condition.

WISDOM PANEL™ canine DNA tests can also provide details about a dog’s breed ancestry fulfilling many owners’ curiosities about their dog’s heritage, but it may be especially revealing for dogs who work with the emergency services or as support animals. There is also a new test, OPTIMAL SELECTION™ Feline, developed by Wisdom Health and Genoscoper for cat breeders to identify more than 40 genetically associated conditions, over 20 traits, and genetic diversity information which can help identify potential mates through genetic compatibility.

ASI is a leading global manufacturer of glass substrates for small and medium sized high resolution thin film transistor liquid crystal display (TFT LCD) panels, which are used in screens for devices including smartphones, satellite navigation systems in vehicles, cameras, flat screen televisions, tablets and laptop personal computers. Glass substrate is made of silicon and metallic oxides, including aluminium oxides. Further to Vedanta’s focus on providing basic materials for the development of India and other emerging markets, this transaction provides optionality to the growing market of materials for technology applications. ASI is particularly focused on supplying glass substrate to small and medium sized TFT LCD panels, used in many mobile devices, and India has significant market potential for such devices. ASI was founded in Japan, where its corporate headquarters and research and development function are also based. ASI also has operations in Korea and Taiwan. Hideki Horiuchi is the CEO of ASI. The company employs around 710 people and in the financial year ended 31 March 2017 the company had revenues of c.US$169million, EBITDA of c.US$75million and gross assets of c.US$625million. The consolidated net profit of ASI for the financial year ended 31 March 2017 was c.US$1.4 million, which on a proportionate basis, for the c.51% equity stake being acquired, would imply an attributable net profit of c.US$0.7 million.

NOMURA has acted as the financial advisor to CIHL on this transaction.

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M&A WATCH: TBC

M&A WATCH: TBC

PRIORITY SOFTWARE

EXPANDS OFFERING TO SMALL BUSINESSES, ACQUIRES US-BASED ACCLIVITY Purchase of New Jersey-based ‘AccountEdge’ business accounting software developer and services provider strengthens small business offering and brings 75,000 customers.

Priority Software Ltd., a leading provider of business management solutions, today announced the expansion of its global operations with the recent acquisition of Acclivity, a New Jersey-based software developer. Best known for their award-winning AccountEdge software, powerful small business accounting for the Mac and Windows desktop, privately-held Acclivity develops and supports a range of small business accounting solutions for the company’s 75,000+ customers from various market sectors. As part of Priority’s continued global expansion, the new acquisition of Acclivity follows the company’s purchase of Israel-based Monitin Information Systems ERP activity earlier this year and prior, the establishment of Priority Software U.S. in 2016, following the purchase of US-based ERP consulting and services firm, Performa Apps.

ANDRES RICHTER PRIORITY CEO

Priority Software empowers companies and organizations of all sizes by providing the most comprehensive, flexible and affordable ERP solutions on the market today. Available both on premise and as SaaS, Priority is targeted to the SME market to offer an alternative to the complex, costly traditional ERP systems from giant vendors. Acclivity services small businesses in a variety of industries, with a product suite that includes AccountEdge Basic, AccountEdge Pro, Checkout POS and Rerun, a recurring billing solution. Optional add-on modules include AccountEdge Connect, Payroll, Credit Card Processing, Web Pay, Shopify Connector and more.

“As we welcome Acclivity, its employees and customers, into Priority’s group of companies, we believe that their expertise in small business accounting solutions will greatly contribute towards expanding our product offering,” said Andres Richter, Priority CEO. “We are united by a common business culture and the desire to deliver quality solutions that serve customers’ real needs. There is a great synergy between our two companies and the acquisition now makes Priority a contender in the small business accounting software market in North America, enhancing the company’s future growth and performance from both lines of business. Acclivity brings in excellent products and an established consumer base of over 75,000 satisfied customers.”

“We’ve found a partner in Priority who both values our existing AccountEdge products and customers, while recognizing the opportunity for Priority’s solutions in the U.S., especially with the growing search for robust cloud solutions,” commented Tom Nash, Acclivity Co-founder. “We’re excited by what’s ahead.”

“This acquisition is simply a win-win for both companies and customers,” added Scott Davisson, Acclivity Co-founder.

“AccountEdge customers continue to receive our undivided attention, while Priority’s powerful portfolio of products are incorporated into the lineup as a potential next step for those AccountEdge businesses who need more, as well as a viable option for U.S. businesses of all sizes and industries.”

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SECURITAS ACQUIRES SECURITY SOLUTIONS COMPANY IN GERMANY

Securitas has acquired all shares in the security solutions company Süddeutsche Bewachung in Germany. Enterprise value is estimated to MSEK 80 (MEUR 8.2).

Süddeutsche Bewachung has annual sales of approximately MSEK 95 (MEUR 9.6) and 300 employees.

The company offers on-site, mobile and remote guarding in the Rhein-Neckar area in the south-west of Germany, with headquarter located in Mannheim. The company has a very solid customer portfolio, comprising many customer segments.

With this acquisition, Securitas strengthens its position in this area of Germany.

The acquisition is consolidated in Securitas as of January 2, 2018.

WEATHERFORD COMPLETES SALE OF U.S. HYDRAULIC FRACTURING BUSINESS TO SCHLUMBERGER FOR $430 MILLION IN CASH Weatherford International plc (NYSE: WFT) has announced it has sold its U.S. pressure pumping and pump-down perforating assets to a subsidiary of Schlumberger Limited for $430million in cash.

The parties agreed to revised deal terms that reflect an asset sale, as compared to the previously announced OneStimSMjoint venture. As part of this transaction, Schlumberger will take ownership of Weatherford’s U.S. pressure pumping and pumpdown perforating related facilities and supplier and customer contracts. Additionally, approximately 100 Weatherford employees associated with the pressure pumping and pumpdown perforating businesses will transfer to Schlumberger.

Weatherford will retain the entirety of its leading multistage completions portfolio, manufacturing capability and supply chain and will continue to participate in the growing completions markets in both Canada and the U.S. as well as globally. Weatherford will use the proceeds from the sale to reduce outstanding indebtedness.

“The closing of this transaction represents another step on our path toward building a solid and strong company and unlocking the potential that exists within Weatherford,” stated Mark A. McCollum, President and Chief Executive Officer of Weatherford. “Although not as originally anticipated, this transaction delivers cash proceeds that enable our Company to begin the deleveraging process and, coupled with our transformation plans, will lead to a leaner organization with lower debt and significantly higher profit margins. In addition, retaining 100 percent of our leading land-based multistage Completions business allows for significant upside potential for Weatherford.”

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M&A WATCH: TBC

M&A WATCH: TBC

SAPIENS EXPANDS ITS DIGITAL DIVISION

Sapiens International Corporation, (NASDAQ) and (TASE: SPNS), a leading global provider of software solutions for the insurance industry, with a growing presence in the financial services sector, announced today that it has expanded its digital division’s capabilities through the acquisition of KnowledgePrice.com, a technology specialist with expertise in digital insurance services and consulting.

Based in Riga, Latvia, privately-held KnowledgePrice employs about 50 digital insurance technology experts and is a provider of services to leading insurance providers in Europe. KnowledgePrice has extensive expertise and long-term experience with open technologies, agile methodologies and best practices surrounding digital insurance, which will equip Sapiens’ customers with complete digital solutions. KnowledgePrice will serve as a center for excellence for digital engagement services. Its experts will join Sapiens’ Digital Division, which focuses on digital and business intelligence services and solutions, including portal and digital distribution offerings to customers worldwide. The expanded Digital Division will create innovative offerings and provide full support during customers’ digital journeys. Sapiens offers a complete Digital Suite that includes an advanced analytics solution, a portal for consumers and agents, personalized video capabilities, a customer engagement platform, and cloud offerings and services.

“In a fast-changing world where insurers and vendors must continuously evolve, integrated digital capabilities are key,” said Roni Al-Dor, Sapiens president and CEO. “We recently created a new digital division to provide our clients with the most relevant, customer-centric digital technologies. The addition of KnowledgePrice’s experts will enable us to better help our customers fully embrace digital transformation.” “Sapiens’ strategic investment in digital capabilities enhances our footprint in this market by seamlessly integrating digital customer services with the underlying administration software, creating a unique proposition for end users,” added Roni Al-Dor. “Our new Digital Division and the KnowledgePrice acquisition will enable insurers to select a best-of-breed or fully integrated approach to affordably scale their digital initiatives.”

TIGERWIT ACQUIRES UK BASED FCA REGULATED RETAIL BROKER MERCOR INDEX LTD

TigerWit is pleased to announce that it has acquired Mercor Index, the UK based and FCA regulated broker set up by industry veteran Simon Denham. The purchase of Mercor Index marks TigerWit’s first acquisition of another complementary business and means a highly significant entry into the UK market with the acquisition of a fully authorised and regulated FCA entity. Mercor Index is the exclusive provider of the TimeToTrade platform in the UK. “We are very excited about formally entering the UK market with the acquisition of Mercor Index and look forward to working with the team to grow their existing business and establish TigerWit as a leader in retail broking not only in the UK, but globally. The team’s wealth of experience in the online trading industry will assist us in expanding our operations and services, as well as most importantly, providing our clients with the option of trading under a FCA regulated provider,” said Summer Xu, Founder of TigerWit Group.

The TimeToTrade platform offers retail investors the ability to invest directly in physical stocks and shares, as well as trading in global financial markets such as indices, FX and commodities via CFDs. TimeToTrade provides an industry leading technical trading environment which allows clients to simply create and automate their trading activity. With the platform’s ‘Strategy Builder’ clients can back-test and then forward-test trading strategies via a demo trading account before implementing them into the live markets. These strategies can be tested and executed without the requirement of programming any complex coding languages.

Simon Denham, founder of Mercor Index said, “This is an exciting moment for both TimeToTrade and TigerWit. In the past few years we have built a significant database of traders that use our platform with its fully integrated alerting, strategy builder and chart trading functions. With TigerWit’s expertise we will be able to pool our technical knowhow and industry knowledge to provide clients with the best tools and a safe trading environment.”

The acquisition, whose primary goal is to expand Sapiens’ resources and knowledge base, is not significant to Sapiens’ revenue or profits.

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M&A WATCH: TBC

SILTBUSTER PROCESS SOLUTIONS JOIN THE SELWOOD GROUP

Strategic move creates the leader in complete water handling and treatment solutions.

Workdry International Ltd, the ultimate holding company of Selwood Ltd, has acquired parts of the renowned water treatment specialist Siltbuster Group, in a strategic move to consolidate its position as the UK’s leading complete water handling provider.

Based in Hampshire, Selwood has a network of 21 pump rental branches around the UK. When combined, Siltbuster and Siltbuster Process Solutions are the UK’s number one solutions provider for on-site water treatment, wet waste processing and the prevention of waterborne pollution. Together they deliver an unrivalled range of rapidly deployable solutions for silt management and prevention, control and treatment of water contamination.

THE SILTBUSTER

Siltbuster CEO Dr Richard Coulton, who will continue to lead the Siltbuster businesses, said:

BUSINESSES WILL REMAIN based in Monmouth, Wales, with their 60 employees continuing to work across the UK. The two management teams will now work closely to drive the growth of their water treatment services, and enhance their combined service offerings to the water, environmental and construction industries.

Chris Garrett, Selwood CEO said: “This is a major strategic acquisition for Selwood, broadening our offering to the industries we work with and further reinforcing our position as the country’s leading pump rental solutions provider. The Siltbuster businesses are an excellent complement to Selwood’s existing products and service offering. Selwood and Siltbuster are both renowned for exceptional water handling capabilities and, importantly, share a common culture and business ethos based on product quality, innovation and outstanding customer service.”

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“Siltbuster was built on innovation, and in our discussions with Selwood it became clear that Selwood shares our passion for developing and providing innovative full service solutions. We are proud to have become the UK’s leader in this sector and are very excited about building on this position with the benefit of Selwood’s scale, reputation and expertise.”

The acquisition of Siltbuster aligns with Selwood’s strategy of providing a single point of contact solution for pumping and water treatment requirements, backed by its 400-strong team of specialists, comprehensive fleet and branch network. It also enables Siltbuster’s teams to offer Selwood’s pump rental products and expertise alongside its water treatment services.

Selwood is the UK’s number one pump rental solutions provider, a global leader in pump manufacture and sales and a renowned supplier of plant and construction equipment for hire and sale.

SECTOR WATCH: TECHNOLOGY

CALIFORNIA SET TO LOSE THE MOST MONEY TO CYBERCRIME IN 2018 New research by Website Builder Expert, the leading online resource for creating and launching your website, has revealed the states which are set to lose the most money to cybercrime in 2018.

The study compares data from the FBI’s Internet Crime Report and the Insurance Information Institute to reveal the states with the most to lose from cybercrime in the coming year, including the states whose individual citizens are at most financial risk.

California is set to lose over $329 million to cybercrime this year, over $189 million more than the second worst state, New York, and as much as the bottom 36 states combined. Despite the Golden State being home to one of the world’s most innovative tech hubs, Silicon Valley, it appears that there is still much work to do to protect Californian citizens from illegal activity online.

Though New Yorkers are not in the worst position in terms of statewide losses, individual citizens in the Big Apple have the most money stolen from them when they are targeted - around $7,150 per reported attack.

NEW YORKERS

CALIFORNIA

CYBERCRIME

have the most money stolen per reported attact $7,149v.

set to lose the most money to cybercrime, over $329 million this year.

is most prevalent in Michigan, with over 201 cases per 100,000 people.

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In terms of the prevalence of cybercrime, those in Michigan are most at risk with over 201 reports of illegal online activity per 100,000 people. At the other end of the spectrum, Hawaiians are the least at risk with only 55 reports per 100,000 people. The research also shows that cybercrime in Florida is increasing at the highest rate of all the 50 states. With violations increasing at an average of 1,421 each year, the Sunshine State has fallen far behind its peers in thwarting these attacks, which in turn are costing Florida’s economy an extra $4.27 million each year.

On a brighter note, the study shows that cybersecurity measures in Arizona are working. Statewide complaints have been reduced by more than 3 per 100,000 people - the biggest reduction of all the states in the study.

TOM WATTS WHO HEADED UP THIS RESEARCH FOR WEBSITE BUILDER EXPERT COMMENTS:

“This research shows just how widespread the issue of cybercrime is and how increasingly vulnerable US citizens are becoming online.

However, knowing is half the battle and this report should hopefully increase awareness and encourage more people to think more carefully about their day-to-day online security.”

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SECTOR WATCH: TECHNOLOGY

ADGM AND BAHRAIN ECONOMIC DEVELOPMENT BOARD SIGN REGION’S FIRS MENA FINTECH AGREEMENT Abu Dhabi Global Market, the International Financial Centre in Abu Dhabi, and the Bahrain Economic Development Board have entered into a FinTech cooperation agreement, marking a significant first in the MENA region.

Signed between two of the leading MENA Fintech hubs, the agreement represents a leap forward in promoting the region as a connected and collaborative environment for Fintech to thrive in. It provides a framework for information sharing, and for facilitating the movement of start-ups, knowledge, and talent between the two jurisdictions. With the new partnership, Bahrain EDB and ADGM will explore initiatives to promote economic growth in financial services through the adoption of new technology, and highlight MENA’s strengths in the FinTech sector.

“We are excited to witness the first FinTech MoU between two MENA jurisdictions,” said Richard Teng, Chief Executive Office, Financial Services Regulatory Authority of ADGM. “Together, we advocate and see the MENA region as a continuous whole and look to leverage each other’s strengths to anchor a vibrant Fintech ecosystem. From our close discussions with the Economic Development Board of Bahrain, and especially at the first Regional Regulators’ FinTech Roundtable recently in Abu Dhabi, it is clear we value the importance of collaboration and mutual support in any relevant manner. I look forward to continuing to work closely with our partner in building a more connected, collaborative network among our fellow regulators in the MENA region to cater to the rapid pace of FinTech growth here.”

The agreement will allow for a closer collaboration on the exchange of information on trends, services and products, leading to a closer relationship in the development of Islamic finance and Fintech initiatives across the region. Professional and academic knowledge transfer, accelerator programs and the mutual promotion of the development of relevant technologies such as digital payments and blockchain are fundamental to the growth of these sectors. Fintech startups will have the ability to access information from each respective jurisdiction through one common point of contact.

“We have seen exciting momentum in FinTech in Bahrain and across the region over the last year,” said David Parker, Executive Director – Financial Services at Bahrain EDB. “The FinTech sector has witnessed approximately US $50 billion in investment globally, but the MENA region has received only about 1% of that. In Bahrain, we recognise that there is great potential for growth in this sector and we are capitalising on this by creating the right ecosystem. This MoU marks another inspiring moment in our regional development.

In Bahrain, an ongoing series of legal and regulatory reforms are supporting easy access to a wide range of new opportunities, including a Fintech sandbox and support for both conventional and Shari’a-compliant crowdfunding. We look forward to this agreement leading to the rapid development of even more initiatives across the region.”

As an IFC and FinTech hub, ADGM has reached significant milestones and established strategic partnerships to bolster the regional Fintech ecosystem, supporting the safe development of Fintech both in the region and globally. The EDB partnership further enhances ADGM’s Fintech collaboration hubs that currently stretch across Asia, Australia, Europe and North America.

ROSS CHAPMAN

This agreement comes as the region looks to establish itself as a centre of FinTech excellence, and follows a number of recent supportive measures in Bahrain.

Underpinned by the establishment of a new Amazon Web Services (AWS) Region based in Bahrain, key activities include the establishment of a new regulatory sandbox, the launch of a national e-wallet and the development of the MENA region’s largest FinTech hub, which is set to open in the first quarter 2018.

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SECTOR WATCH: TECHNOLOGY

WILL READ FOUNDER AND CEO WE KNOW GREAT IDEAS ARE JUST THE BEGINNING; THEY ARE NOTHING WITHOUT THE TOOLS TO MAKE THEM A REALITY. OUR IDEA BEER AND COFFEE ARE REPRESENTATIVE OF THIS PROCESS: BEER FOR THE IDEA AND COFFEE FOR THE EXECUTION

THE BEER

TECH FIRM LAUNCHES IDEA BEER TO GET CREATIVE JUICES FLOWING A London-based tech company are hoping to inspire creativity in the workplace and innovation in the sector by launching their own limited edition ‘Idea Beer’. Sideways 6 is a Shoreditch-based tech firm helping large organisations to collect, manage and act on employee ideas, insight and feedback. Often called ‘idea management’ or ‘innovation management’, the aim is simple: to help its clients build better companies with more engaged employees and happier customers. As a

was brewed by the Sideways 6 team at London Beer Labs, and labelled back in the tech company’s office, with a humorous label urging consumers to ‘Innovate Responsibly’. The limited production run will be offered to clients and partners in the hope it will get their creative juices – and not just the beer – flowing.

Will Read, founder and CEO of the tech company, said: “Creating our own Sideways 6 ‘Idea Beer’ is a light-hearted way for us to show that as a company we stand for innovation in all its forms.” Producing their own-brand beer is not just a bit of fun; there is some science behind it, too. Along with endorsements of alcohol’s creative potential from famous authors such as Ernest Hemingway, F. Scott Fitzgerald and Tennessee Williams, numerous studies have found clear links between alcohol consumption and improved creativity*, something Will is keen to highlight.

Will said, “Our ‘Idea Beer’ isn’t just a gimmick. The science linking higher levels of creativity with moderate alcohol consumption shows that great ideas sometimes come from the least expected places – and that is what Sideways 6 is all about.”The innovative company are also now in the process of developing their own coffee, in light of further studies linking the caffeine beverage to improved work quality and performance.

company all about ideas and innovation, they are launching their ‘Idea Beer’ to promote creativity in the workplace.

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SECTOR WATCH: TECHNOLOGY

MAJOR TRENDS IN CRYPTOCURRENCIES

IN THE YEAR AHEAD Continued high volatility The financial markets believe that introducing Futures on Bitcoin, and perhaps other assets, will reduce volatility of the market and individual assets. We reject that hypothesis for the time being. We are witnessing the rise of a new digital asset class that operates 24/7/365 across every single market in the world while needing increasingly less centralized brokers or service providers.

While there are valid comparisons to be made with other asset classes, such as precious metals which saw reduced volatility after the introduction of futures and other financial products, this asset class is unique because it is digital first and benefits from the infrastructure built during the rise of the internet. We expect to see massive increases in the implied market caps of various cryptocurrencies in the short term, particularly those operating on privacy & decentralized exchanges. However, in late 2018 and early 2019, we expect a flight of capital away from speculative ICO investments with teams who have failed to execute on their roadmap and towards major currencies or assets, including Bitcoin.

Central banks beginning to make use of blockchain technology Central Banks in politically unstable regions and/or emerging economies will begin to buy Bitcoin directly. We have already begun to see this in Africa and Europe, including Ghana and Bulgaria, and we think this trend will accelerate. We expect that major central banks, such as the Bank of England, will release public roadmaps for incorporating blockchain technology into their monetary policy management. We do not believe major central banks will invest directly into Bitcoin and other deflationary assets in 2018.

APEX TOKEN FUND Early cryptocurrency believers have been financially and socially rewarded for taking a risk on early investments.

As those investors look to diversify their holdings and reduce active trading, in part due to increased regulatory scrutiny and tax enforcement, they will be focusing on passive, cash generating investments, such as governance tokens which reward holders, and mining operation investments diversified across various Proof of Stake currencies.

ARI NAZIR

MANAGING PARTNER AND CIO

MAJOR TRENDS IN CRYPTOCURRENCIES IN THE YEAR AHEAD Last year, we invested early on in the rise of blockchain protocols, including Ethereum, and in the Initial Coin Offerings or Tokens generated atop these protocols, such as various Ethereum-based ICOs. This year, we are bullish on privacy protocols and tokens, decentralized exchanges, and passive cryptocurrency investments, including assets linked to governance and mining projects.

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As governments around the world increase legal and financial regulations surrounding emerging digital asset classes, we expect a shift of early investor capital towards tokens that enable private transactions between businesses and individuals, such as Monero and ZCash. We remain cautiously optimistic about other ICO platforms, such as Stellar, that improve current ICO platform concerns, such as transaction scalability concerns and transaction cost reduction.

Crypto currencies to watch• Decentralize Exchange tokens: 0x, Kyber, & Bitshares • Privacy tokens: Monero, ZCash, ZCoin, & Komodo.

Cryptocurrency flows We expect to see the continued launch of cryptocurrencies through regulated ICOs and token generation events.

We predict increased institutional investment into the infrastructure surrounding cryptocurrencies, such as wallet and security services. We think Family Offices will continue to allocate capital to the space through allocations in specialized funds to purchase cryptocurrencies and equity investments. However, major institutions, such as pension funds, will remain reticent to invest directly into Cryptocurrencies. The velocity of fiat originated capital into cryptocurrency markets is a challenging calculation for a number of reasons. We shall continue to see capital flow through retail investors and venture projects, and in 2018 we will see more capital from institutional investors. One proxy that may be used to understand this velocity is to inspect the average monthly volume of the cryptocurrency exchange ShapeShift. In March of 2017, when the entire cryptocurrency market place was about $24.1 billion it was reported that ShapeShift was exchanging roughly $30.26 million per month. The market cap today is $829.6 billion. Suffice to say, much much more capital is being traded than ever before.

Key risks We expect there to be increased regulatory action against legally ambiguous Initial Coin Offerings and perhaps even team members. There are a number of projects which raised excessive funding at irresponsible implied market cap prices (not a valuation) on legally questionable grounds. Frankly, we encourage a regulatory crackdown, in particular increased scrutiny on irresponsible and fraudulent ICOs and greater focus on cases against unregistered persons acting as agents, brokers, and investment professionals in the cryptocurrency space. Increased regulatory scrutiny against fraudulent actions and behaviours will remove the bad actors and social stigma from the cryptocurrency space as well as increase the long term health of what we think will be one of the greatest technological innovations of this generation.

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SECTOR WATCH: TECHNOLOGY

KAREN PRICE OBE

CHIEF EXECUTIVE OF THE TECH PARTNERSHIP

THE TECH PARTNERSHIP AND LLOYDS BANKING GROUP TAKE THE LEAD IN SETTING THE UK UP FOR DIGITAL SUCCESS

“We are thrilled to be co- chairing this consultation process. Together, we have convened a formidable leadership group of employers, government officials, training providers and industry experts to develop and review this new framework and to ultimately ensure that all individuals in the UK can safely participate in and contribute to the digital world of today and the future, at both home and work.”

LEIGH SMYTH

GROUP TRANSFORMATION CULTURE AND CAPABILITY AT LLOYDS BANKING GROUP “With 11.5 million UK adults currently without basic digital skills, it is imperative that we build a single view of UK capability so all partners and practitioners can work together to provide consistent support to help people with the right skills and understanding. This new framework, developed in collaboration with cross sector organisations in tandem with insight, face to face local support and training will enable essential progress at a national and local level”.

WHY IS THE TECH PARTNERSHIP INVOLVED?

The Tech Partnership took on the Basic Digital Skills framework in 2017. The Get Digital basic digital skills framework shows a standard of what citizens and organisations need to achieve to participate fully in the digital world, and how to get there. It was created in 2015 by Go ON UK, working with a wide range of partners from academia, the public, private and not-for-profit sectors. In addition to the framework, Tech Partnership also collaborate with Lloyds Banking Group on a regional heat-map which allows users to attain a local level view of their postcode’s basic digital skills, connectivity levels and other inclusion metrics.

WHY IS LLOYDS BANKING GROUP INVOLVED?

Launched in 2014, Lloyds Banking Group’s Helping Britain Prosper Plan set out seven public commitments supported by 26 individual metrics, designed to address some of the biggest issues facing Britain. In March 2017, the Group updated its Helping Britain Prosper Plan to be more streamlined and focus on how the Group can best help Britain through supporting People, Businesses and Communities across the UK. Regarding Basic Digital Skills, Lloyds Banking Group have worked with Go On UK, DotEveryone and The Tech Partnership over the last 5 years as the lead evaluation partner on research and reports including the Business Digital Index, Consumer Digital Index and the distinct Basic Digital Skills annual measures. In order to action the insight, the Group set up the UK’s largest network of Digital Champions – 25,000 – who pledge to help at least 2 individuals a year with their digital skills. Lloyds Banking Group also work in partnership with the Good Things Foundation on 100 UK Online Centres, and run Digital Workshops for small businesses and charities in partnership with leading tech companies such as Google.

anne milton The Tech Partnership and Lloyds Banking Group have announced they are leading a consultation that will improve the way that the UK measures the Basic Digital Skills required for adults to thrive in a digital world. The final framework created will be used to shape the Government’s Digital Skills Entitlement programme, which will make training in basic digital skills free for adults in the UK lacking relevant qualifications.

Anne Milton, Minister of State for Skills and Apprenticeships said, “I welcome this consultation. The ‘Get Digital’ Basic Skills framework has brought consensus on the digital skills adults need for life and work, and will form the foundation of our new basic digital skills standards.”

Increasing the digital skills of adults across the country will help more people access the numerous benefits of being online. Research from the Lloyds Bank Consumer Digital Index highlights that having Basic Digital Skills can save individuals an average of £744 a year, and provide them with easier access to work and education. The consultation invites everyone with an interest in this important agenda to give their thoughts on the level of digital skills needed for today and the future. It is an update of a framework initially developed by Go ON UK, remodeled to reflect the significant changes in technology that have taken place since it was created.

The Tech Partnership and Lloyds Banking Group have convened a steering group featuring a wide range of organisations, to ensure that all sectors of industry, academia, government and education are shaping the outputs to transform the UK’s digital skills capabilities.

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SECTOR WATCH: TECHNOLOGY

AFRICA DATA CENTRES South Africa Data Centre (SADC) Johannesburg and SADC Cape Town will support rising demand for cloud-based services in Southern Africa

Africa Data Centres, part of the leading pan-African telecoms group Liquid Telecom, has today launched newly-expanded data centres facilities in Johannesburg and Cape Town, South Africa. The state-of-the-art, carrier-neutral SADC Johannesburg and SADC Cape Town will provide leading cloud service providers, carriers and enterprises with additional rack space and colocation services to meet the rising demand for cloud-based services in Southern Africa.

Africa Data Centres has more than doubled the size of its existing South Africa-based facilities, which are built to Tier III standards and were acquired as part of Liquid Telecom’s ZAR 6.55 billion deal for Neotel in February 2017.

Following completion of the first phase of expansion, SADC Johannesburg now offers over 3000 square metres of secured space for data servers served through a total power capacity of 7MW, while SADC Cape Town provides

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onnected by the fibre routes of many major carriers, the facilities also host internet exchanges independently operated by INX-ZA. Through a partnership with INX-ZA, the Johannesburg Internet Exchange (JINX) has been expanded to SADC Johannesburg, while the Cape Town Internet Exchange (CINX) has been extended to SADC Cape Town, enabling connected members in any site to peer quickly and cost effectively with members in other data centres.

SADC Johannesburg and SADC Cape Town, along with partner locations East Africa Data Centre (EADC), Nairobi, and Central Africa Data Centre (CADC) are Africa’s largest and most diverse set of carrier grade, highly interconnected purposebuilt data centre facilities. They are interconnected by multiple networks

1800 square metres of secured rack space with 5.5MW of power. Further stages of expansion are planned for SADC Johannesburg and SADC Cape Town as Africa Data Centres aims to increase space at the facilities by five-fold over the next five years. The newly expanded SADC facilities were officially opened by the South African Minister for Telecommunications and Postal Services, Dr Siyabonga Cyprian Cwele, at an exclusive launch event at SADC Johannesburg. ADC Johannesburg and SADC Cape Town are already home to nearly 100 customers, including global, regional and local telecoms operators, ISPs, cloud service providers and large enterprises.

including Liquid Telecom’s awardwinning fibre network, which provides regional and international reach for customers. This allows businesses hosting data and cloud in Africa to have control and flexibility of where to host and back-up their data with geographic diversity.

“As moving to cloud-based solutions becomes more commonplace, businesses across Africa require more carrier-neutral, open-access data centre space for their businesscritical data and applications,” said Nic Rudnick, Group CEO, Liquid Telecom. “Through continuous investment in Africa Data Centres, we are providing the foundations for leading enterprises and cloud providers to come and build their digital future in Africa.”

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SECTOR WATCH: ENERGY

CARBON MARKETS IN 2017 REGAINING VALUE Traded Value Increase by 22% to €41 Billion

REFORM OF EU ETS AGREED, NEW RULES TIGHTENING

The largest regional carbon markets with few exceptions increased in value year-on-year from a low point in 2016.

After a year of decreasing prices and policy uncertainty, 2017 proved to be the opposite with long term policy decisions and higher prices for most regional markets. It was a year with widespread review and reform processes for the regional carbon markets. As more certainty emerged on the framework post 2020, most prices rose in the second half of the year, and with a modest increase in traded volume of 5 percent, the value rose by 22% to over €41 billion.

The stir over the United States commitment to the Paris Agreement attracted massive negative response from the rest of the world still committed to the Agreement and has worked as a smokescreen from what has happened on the ground over the last year.

THE MARKET BALANCE UP TO 2030

The result is a tighter system with an enhanced mechanisms to retain excess allowances when the market is oversupplied, which has led us to expect a steady price increase towards 2030. As all predictions, it’s highly uncertain – and a main source of uncertainty is the development of power sector emissions. Power production from coal has been receding in Europe over the last few years, and the trend continues.

UK coal emissions dropped sharply in 2016, and last year German coal power emissions decreased signi cantly as well, by more than 7 percent. On top of this many European countries made explicit commitments to phase out their coal power production within the next decade or so. We also saw several large nancial players divesting from coal the sector, a signal that some investment is now going in other directions.

That said, Poland, Europe’s second largest consumer of coal increased its coal demand last year. With only formal steps remaining of the ETS reform process we do not expect large changes from the policy side in 2018, although the question of Brexit in 2019 remains. Relevant to the carbon market for the impact on future emissions (and demand for EUAs), the nal leg of negotiations between the European Parliament and the Council on renewable energy and energy ef ciency is expected to start within the next month or so. The negligible market of CERs – the units issued under the UN-led Clean Development Mechanism (CDM) is struggling with little demand. The market continued its demise as prices dropped to level of the issuance fee, around €0.2/t, and only 21 Mt traded in 2017.

The long-standing beacon of emissions trading, the European trading scheme, saw prices come back over €8/t, the highest level in almost two years and a stronger comeback than the general bullish trend of the energy complex. The price increase in Europe is due to a basket of bullish factors, and upheld by last autumn’s process nalisation of the rules for the European carbon market for the years 2021-2030.

The result gives market participants a welcome con rmation that the supply-demand balance will tighten towards 2030. The European Commission rst presented a draft for the revision of the EU ETS directive in July 2015. Since then there has been a tug of war between different countries and factions in the European Parliament on the details of the package.

NORTH AMERICA – AT LEAST TWO SIDES TO THE STORY

Federal and regional climate policy making were at odds in the U.S. in 2017. With a new administration in Washington started the dismantling of the Clean Power Plan regulation, aimed at reducing emissions from power plants as well as the intention to leave the Paris Agreement as soon as possible. The regional trading schemes seem unaffected by these initiatives though. Including Ontario, which linked up to the WCI from January 2018, the traded volume is up 86 percent year on year, while the value is up 80 percent since last year. The RGGI on the east coast, which could also expand its scope shortly, increased the traded volume with 7 percent last year while the turnover was down 25 percent on lower prices. Overall in the U.S regional carbon markets, the volume was up 75 percent and the value was up 84 percent in the U.S. last year. Most important to the Californian market however was the court ruling stating that the auctioning of allowances does not constitute a tax, as well as the extension of the carbon market through 2030 with decreasing allocation levels. These were substantial decisions in favour of the WCI, which now appears much stronger than it did one year ago. With new incentives in Canada, Quebec and Ontario might be joined by other provinces in linking up to the scheme in the future.

Canada is one to watch out for as each province is given a choice between setting up some kind of market scheme or comply with Canada

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is one

a gradually increasing carbon tax. Mexico also launched a market simulation late 2017, and could be another candidate for linking up with California at some point. In New Zealand the volume grew to 76 Mt last year, while the value increased 12 percent to €870 million. After a slow start to 2017 trading increased before the compliance deadline. For 2016, entities only had to cover half of their compliance obligation, a number that will increase to two-thirds for 2017 emissions. In October the new Prime Minister con rmed that the NZ ETS would remain in place. Volume and value increase after that, and prices went as high as NZ$21/t late December. New Zealand is one of the more vocal supporters of international carbon trading under Article 6 of the Paris Agreement, and much of their 2030 ambition is conditional upon international trading being available. Kazakhstan suspended its emission trading scheme two years ago, and but in 2017 the government re-launched the scheme introducing new rules to reduce oversupply of allowances. The approved allocation plan covers 225 entities with a cap of 162 million tonnes per year. The trading platform is ready, with test trading in December 2017.

• The International Transportation Loophole Pressure has been increasing both on the International Civil Aviation Organization and the International Maritime Organization to come up with a satisfactory plan to reduce emissions from international transportation.

International transport is signi cant as it make up around 5 percent of world emissions, but are not covered by the Paris Agreement, and ICAO in 2016 decided to set up a scheme that allows for offsetting from 2020, and the next step is the release of eligibility criteria for these credits.

Shipping is lagging behind and will likely only have a nal plan by 2023. If developments on in the ICAO and IMO-led measures are not deemed satisfactory, EU will reconsider inclusion of international aviation, and in light of the recent reform, also maritime sector emission for by the EU ETS. • In a Nutshell 2017 saw much bearish climate policy news, especially from the U.S., most notably Trump’s decision to withdraw from the Paris Agreement. A closer look into the details of the world’s carbon markets show that both in terms of trading volume and value 2017 shows an increase compared to the year before.

Still, the value is a lot lower than it was when prices in the EU ETS were double of what they are today. Carbon trading is spreading. Schemes are expanding. There are regions setting up carbon taxes, but for the majority of countries and regions considering carbon pricing tools, emissions trading is the preferred alternative. The most important take-aways from 2017 are that China announced the world’s largest emission trading scheme and that both the EU ETS and WCI have gotten more long- term regulatory certainty. In addition, especially in Europe, several countries have announced when they plan to phase-out coal red power. While good for the climate, this will mean less demand for EUAs, and hence put a bearish pressure on EUA prices. Globally, the price on solar and wind is decreasing approaching parity with fossil fuels. Still, emissions are on the rise and after a few years with stable emissions, China again seems to have increased emissions. That emissions are covered by an emission trading system is no guarantee that emissions will decrease. That all rely on political ambition and 2018 will provide a chance to examine the ambition of different countries in the facilitative dialogue that will take place under the UNFCCC.

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SECTOR WATCH: ENERGY

CHIEU CAO CO-FOUNDER AT PERKBOX OUR OBJECTIVE HERE AT PERKBOX IS TO PROVIDE NOT ONLY LUXURY PERKS TO OUR USERS, BUT TO ALSO HELP THEM AND THEIR FAMILIES WITH THEIR EVERYDAY NEEDS. NO ONE CAN DENY THAT THE COST OF LIVING IN THE UK IS EXPENSIVE. BUT LOOKING AT UTILITY BILLS, THERE CAN BE A HUGE DIFFERENCE DEPENDING ON WHICH PROVIDER YOU GO WITH. OVER THE LAST COUPLE OF YEARS, WE’VE BUILT UP A FANTASTIC COMMUNITY OF MEMBERS. NOW, WE ARE LOOKING TO HARNESS THE POWER OF THE GROUP TO BRING OUR USERS SOMETHING THEY OTHERWISE WOULDN’T HAVE ACCESS TO. ULTIMATELY, THIS IS ANOTHER POWERFUL WAY TO ATTRACT THE BEST PEOPLE AND CREATE GREATER LOYALTY, LEADING TO HIGH-PERFORMANCE AND IMPROVED RETENTION.

OFGEM

PERKBOX LAUNCHES ‘BIG PERKBOX ENERGY SWITCH’ CAMPAIGN TO HELP COMBAT RISING UK ENERGY PRICES Perkbox, UK’s fastest growing employee benefits platform, has partnered with iChoosr, the collective switching expert to launch a new collective energy switch campaign in an attempt to offer further value for money to users at a time when cost of living is at an all time high and consumers are often out of pocket due to extortionate energy bills. The campaign, called the ‘Big Perkbox Energy Switch’, provides all Perkbox customers and umbrella companies with the chance to harness the collective buying power of the Perkbox community, securing fantastic energy tariffs for everyone whilst taking the stress and

figures show that 57% of households - representing around 13 million people - are on a standard variable rate tariff. If consumers are not in a fixed contract, they are likely to be on their suppliers’ standard variable tariff. These are often the most expensive. This campaign is part of Perkbox’s continued effort to integrate into the day-to-day lives of its users, moving beyond the usual discounts and benefits and helping them save on the necessity services where people financially suffer the most.

To participate, all users need to do is redeem the benefit on the Perkbox platform before the 12th of February. They will then be asked for minimal information about their energy consumption and the rest is handled by iChoosr. Registration is free, without obligation and takes less than five minutes.

George Frost, iChoosr UK Country Manager comments: “Collective switching works at its best when trusted brands appeal to their audiences so we are excited to see how the Perkbox community responds. It provides a safe and easy route for people who would not otherwise switch, enabling them to make an informed decision.”

confusion out of changing providers in what is often a confusing and complex energy market.

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SECTOR WATCH: ENGINEERING

SECTOR WATCH: ENERGY

CENSIS

RENFREWSHIRE TACKLES FUEL POVERTY WITH IOT TECHNOLOGY

CENSIS

GLOBAL ENGINEERING

DAVID AMOS

Head of Policy and Commissioning at Renfrewshire Council, commented:

A

n internet of things initiative underway in Renfrewshire is helping to tackle fuel poverty in social housing and could save local authorities millions of pounds on property management and repair bills.

Working with Renfrewshire Council, smart asset management company, iOpt Assets, has been detecting temperature, humidity, and carbon dioxide levels at 50 social homes around Paisley over the course of the of the project. The pilot scheme, which has been running since July 2016, is monitoring a range of property types, including high rises, cottages, and terraced housing.

Capturing this data in near real time is allowing the local authority to identify anomalies in housing and take preventative action to protect tenants and its property assets. Consistently high humidity and low temperatures, for example, could indicate a tenant is living in fuel poverty; while high carbon dioxide levels suggest there might be a problem with ventilation and air quality.

The data from the sensors installed in the homes is currently transferred over Wi-Fi, but will move onto Renfrewshire’s Low Power Wide Area Network (LPWAN), using LoRaWAN™ technology – also known as a LoRa™ network. The IoT network was deployed last year by a consortium of organisations, including CENSIS, the Scottish Innovation Centre for Sensor and Imaging Systems; Stream Technologies; and Boston Networks.

So far, the project has helped the local authority to spot a number of potential issues at its properties, including homes that have impending damp, tenants who needed help with their heating system, and several occupants living in fuel poverty. All of the residents at the properties being monitored have opted into the project.

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“The health of our tenants is of paramount concern. iOpt Assets’ easy to install technology gives us the ability to spot problems they have with energy or any issues with their housing that might affect their health. It will also help us take preventative action, where necessary, to protect, manage, or even improve our homes – from damp and moisture detection, to issues with air quality. The Council is working with partners to create an environment in Renfrewshire that supports the testing and deployment of innovative Internet of Things technology and we were delighted to have facilitated this successful test with iOpt Assets.”

By the end of the year, iOpt Assets hopes to have rolled out the sensing technology to 2,000 homes in Scotland, spread across a variety of local authorities and housing associations.

The Renfrewshire project has delivered an estimated 600% return on investment to the council, by preventing costs that would have arisen from damage to properties over the next two years. iOpt Assets is also going through a funding round to secure investment for the development of low-cost, battery-powered sensors with a five-year life, supported by a robust IT and data management system that can handle all the data from hundreds of thousands of homes. The company will work with CENSIS, as one of the winners of the CENSIS through its IoT Explorer accelerator programme, aiming to install the technology in up to 400,000 rented homes over the next six years. Dane Ralston, Director at iOpt Assets, said: “The results of the project have proven the business case for this service – it’s delivering significant returns by allowing the council to predict issues and be proactive with maintenance, which is invariably more cost effective than having to deal with them after the fact. It also reduces the need for regular property visits and administration, while also leading to reduced premiums in large property portfolios. “The potential market is huge – figures from the Chartered Institute of Housing suggest there are 3.9 million local authority and housing association homes let at a social rent in England alone.

When you look internationally, the possibilities become even vaster – all sorts of organisations, such as Stena Line’s 24,000-strong portfolio in Sweden, own a broad range of residential property assets that could benefit from smart monitoring.”

and technology TV platform launches first of its kind video search functionality, allowing users to jump to specific content within videos ET.tv has launched Engineering Video Intelligence, a powerful, new video transcript search function, which allows users to keyword search within its entire video database to find exact and relevant timestamped content at the click of a button. The online platform, run by the Institution of Engineering and Technology (IET), is one of the largest dedicated engineering and technology video databases in the world and includes

Industry news, technical and regulatory updates, expert insight and interviews, as well as EngTalks and lectures.

The new functionality takes away hours of trawling through video content to find specific extracts and will be highly beneficial to practising engineers, technologists, academics and researchers who want to find accurate content quickly. The search functionality also enables users to navigate to individual words or phrases within the video whilst the video is playing and will recommend related videos from the database based on search results.

Mark Reynard, Head of IET.tv, said: “Finding what you are looking for in a single 30 minute video can be hard enough, but with over 2,500 videos in our recent collection it can be quite difficult for our users to get to the relevant information they need. Most websites utilise keyword search to direct a user to the videos that may match but the user then has to watch the whole video to find the part they really wanted. The IET has taken this to the next level using EVI. The database searches for the word or phrase in every transcript and returns search results based on the number of instances the word or phrase is used. The user can open the video and see the transcript with their search terms highlighted. Clicking these highlighted words will enable the user to jump to the exact point in the video, making it easier to find the information they are looking for.We have also added a great new function for saving clips of videos and playlists, allowing users to come back and easily find and share their favourite or most important video sections. This will be a useful feature for communities and academics who may want to share a particular video or part of a video with their group or class.”

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mark reynard

SECTOR WATCH: CONSTRUCTION

WHAT WILL 2018 HAVE IN STORE

FOR THE CONSTRUCTION INDUSTRY Reaching the government target of building 300,000 new homes next year will depend on how many schemes are designed to lend money to people who can’t afford to borrow it rather than government policy on affordable homes, or the new City and Metro Mayors building a few council houses here and there.

It looks like the crash of 2008 is long forgotten and we may be building our debt pile ready for the next one.

“The London property bubble continues to float and will do so throughout 2018 as long as the Conservatives cling to power. I have heard from a very good source that the foreign investors, who buy London property for their retirement pot, are far more worried about the damage Jeremy Corbyn and Labour could wreak on the economy than they are about Brexit. And the banks are setting up satellite offices in the EU rather than moving lock, stock and barrel, so no shortage of potential purchasers to buy up the flats around the fringes.

“Offsite construction is the new buzz for policy makers and commentators who seem to think we have never tried it before, or this time it will work much better and be more efficient – and maybe they are right, we will have to wait and see, but I doubt 2018 will see a huge shift mostly because the cash-flow system does not work for heavy factory based outlay, and consumers are sceptical.

At the moment, the company is being propped up by government contracts but surely this can’t spoil my predictions again and continue into 2019 – I foresee an end to Carillion’s long and painful death by June 2018. “As predicted last year, the cost of materials will continue to rise through 2018, the oil price, demand and poor old Brexit being blamed as the main drivers.

“This time last year, I projected that subcontractor rates would climb by 3% and in fact they went up by 3.8%, which is above inflation.

IAN ANFIELD MANAGING DIRECTOR FOR LEADING CONSTRUCTION AUDIT AND CONTRACT PROVIDER, HUDSON CONTRACT COMMENTS ON HIS PREDICTIONS FOR THE INDUSTRY IN 2018.

“This time last year, I shared my thoughts on what would dominate the construction agenda in 2017. Some of the observations I made, such as Brexit being linked to skills shortages, were fairly safe, while others, like losing one of the major contractors due to decreased investor confidence, were a little more risky.

“Unfortunately, I imagine Brexit will continue to be blamed for every ill running through 2018, and Carillion limps on despite being morally and financially bankrupt.

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“Payment terms should be top of the agenda but with the government’s Construction Leadership Council dominated by major contractors and the consulting engineers who work with them, nothing significant will change in 2018. “The most disappointing part of reading back through last year’s predictions was seeing the hopeful words around ending the CITB levy. Despite the CITB being the most toxic brand in construction – hated by those who are forced to pay a levy under the threat of legal action and who get no help with training in return – the government seem to like them and look set to give them another 3 years to ‘reform’.

“In 2018, Hudson clients will continue to create their own success despite government policy rather than because of it, and the freelance builders who sell their services under Hudson will crack on and continue to out-perform the rest of the economy in terms of income.”

Therefore, unlike the rest of the UK workforce, if you believe government figures, on average, self-employed construction workers are better off now than they were 12 months ago. Let’s hope it carries on and go for a prediction of another 4% next year taking the average earnings to £870 per week.

“As expected, the government has made lots of noise about penalties for land banking and relaxing planning laws, but ultimately the house builders will continue to build at a pace that minimises their risks and maximises their profits.

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SECTOR WATCH: CONSTRUCTION

local SUBCONTRACTORS REQUIRED TO BUILD NEW HOMES IN LOCAL COMMUNITY

In keeping with government plans to construct a vast number of new homes across the Oxford-Cambridge corridor, housebuilder Hill is kicking off 2018 with work on two new residential developments in the South East commuter region.

Barton Park residential development outside Oxford City Centre and the Grade Zone apartment in Hemel Hempstead are expected to create a large number of job opportunities for local suppliers and subcontractors.

The award-winning housebuilder is looking for construction subcontractors and suppliers in Oxford and Hemel Hempstead and the surrounding areas to attend a supplier engagement event being held in partnership with Constructionline on Tuesday 23rd January from 8.30am – 1.00pm.

Hill is particularly interested in meeting subcontractors working in the fields of carpentry, brickwork, metalwork, drylining, ceramic tiling, floor finishes, mechanical, electrical, painting and decorating, and structural frame.

Kim Wayman, Supply Chain Coordinator at Hill, commented: “We pride ourselves on developing homes of distinction built on design excellence, quality building practices and respect for the local environment. Engaging with local subcontractors and building up our regional supply chains is a crucial part of how we deliver these objectives. We look forward to welcoming a large range of construction SMEs to the event where representatives from Hill will be available to advise and answer any questions on the Barton Park and Grade Zone projects as well as others in the region.”

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Magazine Tempate

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SECTOR WATCH: PHARMA

THE UK’S GLOBAL BIOSCIENCE CLUSTER IN 2017 John Hodgson Executive Editor, Informa This second BIA/Informa report on the performance of biopharma sector within the United Kingdom comes at a crucial time for the industry worldwide.

The £85m tranche of venture capital raised by gene therapy company Orchard Therapeutics in December falls just outside the cut-o for this report (30 November) but it is a timely reminder that both healthcare options and the means for their delivery can change rapidly. This is the second year in which Informa has supplied data to underpin this report. While two points on a graph do not constitute a trend, the benefit of applying consistent definitions year-on-year, cluster-to-cluster is that signs of alteration in the overall picture can be detected early. In 2017, there was plenty to see. On a stand-alone basis, the investment picture for the biopharma sector in the UK remains robust. Equity investments in UK bioscience firms remain at high (although not record) levels. But the profile of that investment has changed.

Venture capital, for instance, has migrated upstream, a sign of market maturity, perhaps, allowing some companies founded only a few years ago to attract substantial growth capital. In parallel, however, the amount of money committed in venture capital A rounds has halved since 2016. The picture has changed, too, for UK companies in public equity markets. UK biotechnology company IPOs raised more than twice as much money in 2017 than in 2016, but 90% of last year’s cash came through Nasdaq rather than through LSE or AIM. AIM remains a solid source of follow-on finance for listed bioscience companies, unlike the LSE Main Market where investors found virtually no new money for biotech (and pharma) companies in 2017. However, London institutional investors did commit over £500m to several early- and latestage vehicles specialising in equity or debt investments in biopharma.

Two messages from the financial markets seem apparent. One is that some UK biopharma companies can readily compete for flows of international finance. The other is that UK investors continue to appreciate the potential of biopharma but currently prefer to explore it through vehicles that operate internationally rather than locally. Brexit brings uncertainty, at the moment principally about what it will bring. Until more is resolved, this environment raises investor risk one extra rung. That may explain why those in the UK who are keen on biopharma are looking for ways of making their money work globally.

In the capital markets, across the Main Market and AIM, it was a quiet year with only 6 IPOs in the sector raising an aggregate of £260m, down from the previous year. However, the secondary fundraising market was reasonably strong with 43 transactions raising over £2.4bn (up from £1.2bn in the prior year). It was an active year for M&A and several notable transactions were completed, including Clinigen’s acquisition of Quantum Pharma, Horizon Discovery’s acquisition of Dharmacon, and IP Group’s o er for Touchstone Innovations. With regards to sector performance, the FTSE 100 Pharma & Biotech index returned -2.1% for the year compared to the FTSE 250 Pharma & Biotech returning 6.3% over the year. In the U.S, the S&P 500 Pharma, Biotech & Life Sciences index returned 17% for the year, and the Nasdaq Biotech Index returned 21.6%.

The private fundraising market for healthcare companies remained active. Our view is that the trend for earlier stage companies to stay private for longer looks set to continue, as the IPO market was subdued, and UK healthcare companies raised over £900m in the private markets in 2017. We expect that the private fundraising environment will remain strong as global investors and new sources of capital from outside the existing sector investors look to the UK for investment opportunities across innovative life sciences and technology companies.

Looking ahead, despite some caution due to current high market levels and Brexit looming, there remains good opportunities for investors within both the private and listed healthcare sector and, as a result, investment and M&A opportunities should continue to drive activity into 2018.

Venture capital funding Although it is positive to see seed funding up this year, the bulk of venture capital money is aimed at later stage and more established biotech companies, which shows the continuing maturing of the sector. The total venture capital investment in the UK sector to November was £515m. This is down on the totals for 2016 and 2015 (£681m and £795m, respectively) although much higher than the annual totals between 2012 and 2014.

Sarah Haywood CEO, MedCity

The UK is in a good place in Europe with strong levels of funding. 2017 marked a return to a more usual financing pattern that relies on the public markets – 2015, 2014 and 2013 all had greater numbers for public rather than private fundraising.

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The UK’s life sciences and wider healthcare sector continues to be an exciting sector for investors, with 2017 delivering several notable transactions and fundraisings.

Furthermore, December brought a £85m B round from gene therapy specialist Orchard Therapeutics and an £8m A round from Biosceptre International, boosting the 2017 total to a respectable £608m. Unfortunately, these were a er the data cut-o point for this report so aren’t reflected in the charts. In our previous report, we had noted the apparent dependence of late-stage UK venture capital investment on the involvement of funds associated with Neil Woodford. In 2017, the value of venture rounds in which Woodford invested declined to about a third of their 2016 value (£115m in 2017 versus £309m in 2016). However, this did not impact late-stage venture investments unduly as other investors stepped into the breach, most notably corporate venture groups such as the Novartis Venture Fund, Johnson & Johnson Development, Amgen Ventures and Vertex Ventures.

OVERALL TRENDS FOR 2017

It’s very positive to see that both IPO and follow-on financing were stronger than last year and this shows that the uncertainty around Brexit has not had a detrimental impact on the public markets for biotech. This year’s strong public market figures may also have been bolstered by 2016’s venture capital fundraisings. The progression to the public markets could show that the sector in the UK continues to mature as companies move through the funding cycle.

Clare Terlouw Managing Director, Corporate Broking & Advisory, Numis Securities Ltd

john hodgson

Seed funding into UK biotech has more than doubled on the year before, and this is not surprising, as innovative earlystage companies are presenting major opportunities for investors, particularly in digital health, genomics, and cell and gene therapy. Research by the UK Business Angels Association (UKBAA) shows that healthcare is in the top five sectors for angel investment and we have built a strong community of investors through our Angels in MedCity programme, helping 18 companies to raise £14m over the past three years. We are increasingly seeing co-investment between a wide range of sources including grant bodies such as Innovate UK, angel syndicates, loan finance, venture capital and crowdfunding; amplified last year by Europe’s first dedicated Life Sciences crowdfunding platform, Capital Cell, expanding into the UK market. Investment into university spinouts reached record levels in 2017. It was great to see many spinouts

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SECTOR WATCH: PHARMA

from universities raising seed funding this year, including University of Oxford spinout, SpyBiotech, who secured £4m to develop a molecular superglue for rapid development of vaccines for a range of diseases.

We were pleased to see support for the sector in the Government’s Industrial Strategy, as well as further EIS incentives in the Budget, as it has been the existence and extension of this scheme that has encouraged angels to keep investing through turbulent economic conditions.

Gregg Sando CEO, Cell Medica Cell Medica is committed to transforming patients’ lives through developing the significant therapeutic potential of cellular immunotherapy for the treatment of cancer.

In 2017 Cell Medica closed a £60m series C investment round with participation from existing investors IP Group, funds managed by Invesco Perpetual, and funds managed by Woodford Investment Management. This investment has allowed Cell Medica to continue to develop and invest in its proprietary technology platforms including its CAR-NKT platform, being developed in collaboration with Baylor College of Medicine and University of North Carolina, and its Dominant TCR technology being developed with University College London.

Cell Medica’s di erentiated approach to chimeric antigen receptor (CAR) technology utilises NKT cells (a subset of T cells) engineered to express IL-15 to maintain cytotoxic function within the immunosuppressive environment. Cell Medica’s CAR platform pipeline includes an o -the-shelf allogenic product aimed at CD19 B cell lymphomas. In the field of engineered TCRs, Cell Medica’s Dominant TCR platform technology, developed at University College London, improves the potency of TCR-modified T cells while maintaining the safety profile. In 2017 we also saw moves in government policy that have the potential to significantly impact the pool of long-term finance for the sector. In the Autumn Budget, the Chancellor announced the outcome of the Patient Capital Review, which will deliver a £20bn package to support investment in innovative companies over the next 10 years. The Review was launched by Chancellor Phillip Hammond a year ago and has been looking at how to increase access to finance, and especially long-term investment, for innovative growing companies.

Daniel Mahony Partner, Polar Capital LLP

Alice Hu Wagner Managing Director, Strategy, Economics and Business Development, The British Business Bank Patient capital – long-term finance for high-growth innovative scale-ups seeking to become established companies with global clout – is particularly critical to the life science sector, where development life cycles can be complex and last years. November 2017’s Autumn Budget announced a number of new interventions targeted at increasing the availability of this type of finance.

British Business Bank’s funding was increased by £2.5bn, with much of this going towards a ‘British Patient Capital’ entity, launching in 2018. This entity will incubate an expanded VC Catalyst programme that will invest on a commercial basis into UK venture and growth capital, alongside private investors. Importantly, fund managers operating in the UK can apply to the existing VC Catalyst programme today. Our venture capital interventions have historically supported the life sciences sector, and we would expect further commitments to be made to life sciences-focused funds and businesses.

We always welcome further approaches from interested and qualified managers. We also intend making investments into a small number of large scale, private sector managed funds-of-funds to catalyse patient investment into high potential businesses. In due course, this and the private capital leveraged in should also become available to promising innovative companies, including those in the life sciences sector. The British Business Bank is the UK government’s business development bank. It makes finance markets work more effectively for smaller businesses, enabling them to prosper, grow and help boost the economy.

Venture capital raised - rest of europe and usa The European venture capital picture was skewed by a large fundraising by Swiss company Roivant raising $1.1bn.

Roivant acts as a vehicle for investing in its wholly-owned pharma subsidiaries and also in third party biotechnology companies such as Portola and Arbutus Biopharma. Without this raising the venture capital picture across Europe remains much the same with around 30% of European venture capital going to the UK – however the inclusion of Roivant drops the UK share down to 20%. Excluding the Roivant deal, the UK is still third globally and this supports the BIA’s vision for the UK to be the third global biotech cluster.

public markets

The HM Treasury’s response to the “Patient Capital Review”, led by Sir Damon Buffini, and the “Financing Growth in Innovative Firms” consultation has positive ramifications for the UK life sciences industry.

HM Treasury has agreed that there are barriers to investment in high growth innovative companies – especially for pension funds. As a result, the Pensions Regulator will clarify guidance on how pension fund trustees can invest in assets with long-term investment horizons. Moreover, the Prudential Regulatory Authority may issue new guidance on how fund Trustees should interpret the Prudent Person Rule, which governs how the assets of a pension fund can be invested.

With over £2 trillion in UK pension funds, even a small allocation to high growth industries, such as life sciences, could have a tremendous impact on the supply of capital to innovative companies. The second major announcement, which was announced in the recent budget, is HM Treasury’s plan to establish a new subsidiary of the British Business Bank to become a leading UK-based investor in patient capital across the UK. The subsidiary will be capitalised with £2.5bn and plans to co-invest alongside private investors to unlock £7.5bn of new investment into innovative companies. These two initiatives should create a supply of capital to both early-stage and scale-up companies over the next few years.

2017 was a return to form for the public markets, with excellent results for biotech companies from across the UK. Two UK companies launched on AIM, raising £19.5m between them, whilst three opted to IPO on Nasdaq raising £214.9m. The two case studies below highlight how floating on the public markets can help to transform an organisation’s plans for the future.

The listings on Nasdaq show global demand for UK business technology and innovation, yet many of the companies on this year’s IPO list wouldn’t exist without the strength of UK based venture capital and support for the early part of their development. The vibrancy of the UK ecosystem can be seen in the amount of UK based technology and innovation that has spread across the world and this will be even more important as UK companies look to compete in a post-Brexit environment. Destiny pharma’s innovative AIM launch and Chinese investment strategy may prove to be a pathfinder for an alternative scale up strategy and shows that the UK can look both east and west for funding.

The life sciences sector will need to make its case and compete for this capital with other innovative industries.

Nevertheless, we view this as a significant positive for the sector – capital will be available for bioscience companies with a compelling business case.

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Hugh S. Griffith Founder and Chief Executive Officer, NuCana plc

Alex Shaw Senior Account Manager, Instinctif Partners

NuCana® is a clinical-stage biopharmaceutical company focused on significantly improving treatment outcomes for cancer patients by applying our ProTide technology to transform some of the most widely prescribed chemotherapy agents, nucleoside analogs, into more effective and safer medicines.

To date, banking research on companies has provided an effective route to reach fund managers. MiFID II will change this landscape dramatically in 2018, as fund managers will now have to explicitly pay for research.

Consequently, there’s a belief MiFID II may cause a drop of up to 75% in trading commissions, focusing research priorities on larger stocks.

While these conventional agents remain part of the standard of care for the treatment of many solid tumours, their e icacy is limited by cancer cell resistance mechanisms and they are o en poorly tolerated. Utilising our proprietary technology, we are developing new medicines, ProTides, designed to overcome key cancer resistance mechanisms and generate much higher concentrations of anti-cancer metabolites in cancer cells. Our most advanced ProTide candidates, Acelarin® and NUC-3373, are new chemical entities derived from the nucleoside analogs gemcitabine and 5-fluorouracil, respectively, two widely used chemotherapy agents. Acelarin is currently being evaluated in three clinical studies for patients with ovarian cancer, biliary cancer or pancreatic cancer. NUC-3373 is currently in a Phase I study for the potential treatment of a wide range of advanced solid tumours.

In October 2017, NuCana completed a successful IPO raising approximately $114m and listing its shares on NASDAQ under the ticker symbol “NCNA”.

Jan-Anders Karlsson CEO, Verona Pharma plc At Verona Pharma, our vision is to become a leader in developing and commercialising innovative treatments to improve the health and quality of life of the millions of people affected by chronic respiratory diseases.

To help achieve this, in April 2017, we listed on the NASDAQ market raising c.$90m as part of a Global O ering. This was a transformational event for Verona Pharma and allows us to advance our lead candidate, RPL554, a first-in-class, inhaled, drug in clinical development for COPD and other respiratory diseases, through a Phase 2b clinical trial in COPD patients, and to fund additional Phase 2 studies in COPD and cystic fibrosis. The NASDAQ listing was a natural evolution in the company’s corporate strategy to focus on the US market, which is the largest market for the treatment of COPD and other respiratory diseases. It has also given Verona Pharma access to a larger pool of investors who have a deep understanding of the healthcare market. Not only did the listing allow Verona Pharma to raise significant financial capital, it also enabled us to build our profile in the global biotech sector, and increase awareness of the potential of RPL554 in addressing a gap in the market for novel treatments for respiratory diseases.

public markets The European market for life science IPOs was generally quiet in 2017 with two major exceptions, in Switzerland and Sweden. In Switzerland, the acquisition of Actelion by Johnson & Johnson for $30bn in June 2017 returned a huge amount of cash to Swiss investors, some of which was almost instantly recycled into Idorsia Ltd, a 600-person publicly quoted spin-o encompassing Actelion’s drug discovery operations and early-stage clinical development assets.

With the additional of substantial loan capital from J&J, Idorsia’s IPO was worth around £825m.

In Sweden, part of the stimulus for a plethora of new biopharma IPOs in 2017 was Mylan’s $8bn acquisition of Meda in 2016. Sweden enjoyed a buoyant IPO market across all sectors in 2016 and 2017. In 2017, life sciences became the dominant sector with 11 IPOs taking place together worth around £200m. The largest of these were neurology firm BioArctic AB and cancer concern Oncopeptides AB each of which raised around £60m.

Despite new sources of funding on the horizon for 2018 and most importantly increased access to patient capital – there is a significant challenge that overshadows 2018 funding, the second iteration of the Markets in Financial Instruments Directive legislation, which kicked in on 3 January 2018. The case study on the next page provides more information on how this could have an impact on sector funding.

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It’s all a question of economics A broker usually takes half of all trading in a ‘house’ stock in the SME sector, leaving a significantly smaller opportunity for others. A non-house stock, according to Hardman research, requires £30,000 in commission per year to maintain.

At today’s commission rates for any stock, there is no commercial case for non-house coverage below £200m market capitalisation. If the 75% trading commission reduction is also taken into account, the outlook is bleaker still. The threshold figure of £200m gets pushed up to £500m for a Main Market business before non-house coverage becomes viable; for AIM, the figure is even higher at £700m. What’s the impact for smaller listed biotech and medtech companies?

If corporate research becomes scarcer, these companies are going to have to work much harder to promote themselves to investors. The key will be clear corporate messaging through the right channels. Communicating will be more important than ever before.

Follow on financing on the London Markets and Nasdaq UK financial markets are still a strong source of follow on finance for UK biotechnology companies. Horizon Discovery raised £80m on AIM in August, wound care company Tissue Regenix raised £40m also in August while Abzena raised £25m in April.

AIM investors appear to be attracted to companies like Abzena, Horizon Discovery, and Abcam that have a significant immediate income streams from supply research and development markets. AIM also attracted non-UK companies as a launch venue. Hong Kong based pharmaceutical developer Hutchison China Meditech was the primary overseas beneficiary raising £114m in placings, with Faron Pharmaceuticals and Maxcyte adding another £30m between them.

UK company Verona Pharma raised £70m added through a combination of a Nasdaq IPO of American Depository Shares and smaller placements of its ordinary shares on AIM. UK companies have also continued to attract follow-on investment on overseas exchanges in 2017: AdaptImmune, Oxford Immunotec Global and Summit Therapeutics raised $120m (£90m) between them in secondary o erings on Nasdaq in 2017. The total of secondary public equity finance raised by UK-based biopharmaceutical companies was £452m to November 2017.

Another interesting point from the public markets in 2017 was that Main Market investors have been keen to invest indirectly in biotech, through vehicles that fund the biopharma sector, including private companies. For instance, latestage life science investment vehicle Arix Bioscience plc raised £113m on London Stock Exchange’s Main Market in February 2017. Over 60% of the capital it raised came from Woodford funds and Woodford clients. Arix has made 11 investments so far, two of them in UK- based companies – Autolus and Verona Pharma – as well as investing in French, Irish and US firms.

Biopharma Credit plc is an investor in late-stage life science companies that raised £606m on London Stock Exchange’s Main Market in March and added a further £110m ($150m) in December. It provides “debt capital for the life sciences industry” and thus far has o ered loan facilities of up to $700m (£525m) to two commercial-stage US companies, Tesaro and Lexicon. We take a further look at debt financing later on in this report. In June, IP Group raised £200m on London Stock Exchange’s Main Market for its investment work with early stage university spin-outs. It subsequently merged with Touchstone Innovations, formerly AIM-quoted Imperial Innovation Group, in e ect consolidating UK spinout activity. In 2016 Touchstone Innovations extended its spin-out reach from Imperial College to Oxford and Cambridge Universities. In parallel with the 2017 fundraising, IP Group also expanded its operational remit from its base in the UK to encompass a group of nine universities in Australia and New Zealand.

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Debt financing

James Clark Head of Tech and Lifesciences, Primary Markets, London Stock Exchange

We are starting to see some companies accessing debt financing and as we move into 2018 we have seen Mereo Biopharma using this source of finance. On 7 August the Group finalised a new £20m debt facility with Silicon Valley Bank and Kreos. Currently this is not a widely used source of finance in the UK but as companies grow in size and become more sophisticated the option of using debt financing may become more attractive and we will continue to monitor trends in this area.

Bringing breakthrough science and innovative technology to the market is not only critical for long term public health but also the creation of new high quality jobs and economic growth across the UK. It has become increasingly clear that London Stock Exchange Group, through its Main Market and international growth market, AIM, occupy a unique place in the global public markets for funding life sciences companies.

pipeline

Through London’s markets, life sciences companies have access to a unique financial services ecosystem: deep, liquid pools of multicurrency investor capital; robust, transparent and trusted markets and blue chip investors who want to invest in these businesses for the long term.

UK innovation remains strong. British companies have the greatest number of products in both preclinical and clinical pipelines in Europe. Some of the strength of this pipeline can be attributed to the significant amount of funding that the UK invests in early stage and translational science and reflects the quality of our universities. The data for 2017 shows a greatly increased level of preclinical activity across all the European nations. This reflects the extension of the Pharma Projects database to include those companies which only have preclinical projects; previously the database recorded preclinical projects associated with companies that also had clinical-stage programmes.

London’s markets support life sciences companies throughout their growth journeys, not only at IPO, allowing them to raise follow on capital during the course of their public lives. And with the growing need for medicines across the world, we are excited to see innovation taking place across the sector.

London’s markets have welcomed a number of UK listed vehicles that are investing in the development of global life sciences companies.

David Cox Healthcare Specialist Sales, Panmure Gordon

james clark Partnering and deal making The theme of maturing UK companies continues when we look at the figures for M&A activity for 2017 as we saw Horizon acquiring Dharmacon from GE. We also saw some promising biotechs being acquired by the big players. Puridify span out of University College London in 2013 and their revolutionary bioprocessing platform purification technology, FibroSelect caught the eye of major player GE who acquired the company in November.

Although not a biotech acquisition – a merger that will change the funding landscape in the UK in 2018 was that of IP Group and Touchstone Innovations. The merger first kicked o in July 2017, a er IP Group raised £184m on the London Stock Exchange. The deal was given the go-head by Competition and Markets Authority in October and brought together two of the UK leading university spin-out bodies. The deal was worth £490m based on the relative value of the two companies’ shares.

2018 is set to be a very busy year for UK life science companies. In biopharma there are a number of important readouts, many of them late-stage, that could potentially transform valuations in UK healthcare. Couple this with the fundamental long-term trends of ageing populations, rising global healthcare spending and an improving regulatory environment, as the FDA takes a more pragmatic approach to approvals, the potential for outperformance continues to be favourable – even in the context of the UK quoted sector having nearly doubled in value over the past 18 months Most of the significant events for UK biotech are currently anticipated in the first 6 months of this year, including approvals, Phase III readouts, and licensing deals. Key events include the highly anticipated Phase III result from Faron for its treatment of ARDS (acute respiratory distress syndrome). Another imminent high profile readout is the interim (24 week) data from Summit Therapeutics’ Phase II PhaseOut Duchene Muscular Dystrophy due in Q1. Both Faron and Summit could bring game changing, first-in-class treatments to their respective indications, each having the potential to be a blockbuster. Looking back, 2017 saw both Novartis and Kite get first approvals in CAR-T therapy for haematological tumours. This year will see AIM-listed MaxCyte initiate its own CAR-T trial addressing solid tumours with a rapidly accelerated non-viral transfection technique to genetically modify T-cells into powerful targeted anti-cancer agents.

There is much more to talk about than can be highlighted here, but 2018 is set to be a stellar year for UK biopharma.

Dr Darrin Disley Chief Executive Officer, Horizon The life sciences are in the midst of a period of rapid change. Researchers and drug developers are increasingly pursuing a more precise approach for their programmes, using the wealth of genetic information now available to drive development of lower-cost genetically-targeted medicines that promise to deliver more personalised treatments for common and rare diseases.

Horizon addresses this opportunity through its catalogue of over 23,000 cell lines that reflect the genetic disease of real patients, generated by the world’s broadest gene editing platform. This was further bolstered in August 2017 by the acquisition of Dharmacon from General Electric for $85m, adding gene modulation to Horizon’s platform, creating a world leader in the building, engineering, and modulation of cells able to provide comprehensive support for genomic research.

The integration process is proceeding smoothly and there are already significant operational, commercial and financial synergies between the two organisations being realised, supporting the enlarged Group’s e orts to accelerate revenue growth and margin expansion as the Horizon drives towards profitability. To fund the acquisition, Horizon completed an over-subscribed placing, raising gross proceeds of £80m from UK investors and a significant number of specialist US healthcare investors, which now make up c.27% of Horizon’s register.

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SECTOR WATCH: TRANSPORT

SECTOR WATCH: MANUFACTURING

DRIVING THE TRANSITION TO SMART TRANSPORT NETWORKS

ROADSHOW TAKES DRÄGER ACROSS MIDDLE EAST

G

lobal surveillance solutions specialist Synectics has published a white paper to help transport operators gear up forT an increasingly urbanised future.

With estimates suggesting that 70% of the world’s population will be living in towns and cities in just three years’ time the free resource aims to help operators handle and secure ever-increasing urban flows, and implement significant safety improvements, towards the goal of a Smart Transport Network.

IAIN STRINGER DIVISIONAL DIRECTOR MOBILE SYSTEMS

The Synectics white paper – entitled ‘Smart Transport Networks: Integration, Interoperability and IoT’ ? looks at how evolving surveillance, data management, and edge-device technologies can be used to unify disparate technologies and systems, to create Smart Transport Networks, meet Smart City objectives and deliver connected services to customers.

The paper helps operators make the most of current data, surveillance and safety assets by providing practical advice about integrating both IP and analogue technologies, particularly

those responsible for the operation of bus, rail, and light rail transport networks.

It also illustrates potential customer improvements by taking the reader on a fully-connected passenger journey, highlighting where converged technology can play an important role such as sending alerts to an individual’s phone if their luggage is unexpectedly moved.

“Transport is perhaps the most critical of all urban services given the imperative need to maintain the flow of people and goods. As our transport systems get busier, technology frameworks that unify systems and technologies are providing live, 360-degree oversight of journeys, as well as a platform to communicate more effectively with passengers and third-party operators.”

INTERNATIONAL

MANUFACTURER OF MEDICAL AND SAFETY TECHNOLOGY HITS THE ROAD WITH LEADING

This will be the first time that Dräger will be leveraging a roadshow tour in the Middle East, and Koen Paredis, Managing Director MEA at Dräger explained the rationale: “Customer intimacy has long been one of Dräger’s key strengths.

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“With EMS’s expert knowledge and experience of roadshows in the GCC market, we’re confident we have found the right partner to support us in this new initiative.”

International manufacturer of medical and safety technology, Dräger, will be showcasing its leading protection and detection solutions on a roadshow across the Middle East to get face-to-face with customers.

Global roadshow expert, Event Marketing Solutions, will manage the tour, taking the 50sqm mobile showroom to 21 cities across five countries, providing Dräger with the platform to go beyond the trade show floor and reach its target markets directly.

As well as managing the scheduling and operation of the tour, EMS has provided further support to German-based manufacturer in the form of bespoke truck design and fit-out, tailored specifically to Dräger’s products, helping them meet the needs of customers across the Middle East.

Visitors to the mobile showroom will have first-hand experience of over 60 of Dräger’s market leading products, as well as the chance to join thoughtprovoking workshop sessions that will provide innovative solutions for the daily challenges faced by customers. The truck will be split between five different areas; prevention, occupational health and safety, hazardous substances, emergency escape and rescue, and firefighting.

This roadshow allows us to strengthen that intimacy by going the extra mile and bringing safety solutions directly to our customers.

With an office in central Dubai and a decade of experience in roadshow management across the Middle East, EMS has established itself as the go-to consultant for European and US companies moving into the market. go-to consultant for European and US companies moving into the market.

“Since opening our Dubai office in 2013, we’ve seen a substantial shift in the number of global companies increasing their attention to the GCC. As the only roadshow agency based in the Middle East, we’ve built up an unrivalled level of expertise in the culture, logistics and key contacts required to run successful campaigns that tap into that all-important face-to-face communication.”

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Cassie Kendrew, general manager at EMS’s Dubai office, added: “The Middle East is in the midst of an industrial revolution, and with that comes a greater need for industrial manufacturing and occupational safety measures. It’s a perfect time for Dräger to adjust their marketing activities to focus on meeting directly with their customers across the region.