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KIRKLEES BUSINESS NEWS The business NEWSpaper for Kirklees
Fabrications firm reaps the benefits
A COMPANY celebrating 40 years of success has ambitious plans for the future. Salamander Fabrications, based at Slaithwaite, has expanded its premises and invested in new equipment to help it respond more quickly to customer needs. And it is forecasting “an extremely busy” 2013 with more projects in the pipeline to streamline its operations. The company, founded in 1973 by Huddersfield-born Brian Haskell, started in a modest way with just three employees working from premises not much bigger than a modern double garage. Its first contract was to supply a mobile canteen to Derbyshire police. The firm continued to supply catering equipment – mainly mobile canteens and fish and chip ranges. In 1983, Salamander became the first company in the UK to buy an automatic indexing punch capable of punching different profiles out of sheet metal up to 6mm in thickness. Today the firm employs 35 people with a wide variety of skills, including skilled welders, CNC machine operators, 3D CAD designers, technical sales, electro-mechanical assemblers and powder coating paint sprayers who all have a wealth of shop floor
■ WORK PATTERN: David McStrafick, general manager of Salamander Fabrications, holds a sheet metal profile produced by the firm’s new laser cutting machine
experience. Following the death of Brian Haskell, the company has been restructured. His son Michael is now managing director and has put a management team in place to drive the company forward. Salamander now subcontracts for a wide variety of industries, including
automotive, rail, agricultural, construction, banking, shopfitting, vending equipment, catering equipment and street furniture. Recent investment includes a 900sq metres shopfloor extension to house a new high tech laser cutting machine. The machine allows very accurate cutting of a range of metals with
unprecedented output. It also has an automatic loading system which enables it to run for up to eight hours unaided. The investment means Salamander can react very quickly to customers’ requirements – from initial concept and design to the final product being delivered to the door. The investment has given the company extra capacity in the profiling of metals and brought an increase in the volume of work to all areas of the business – leading the firm to recruit more shopfloor and office staff. Salamander is aiming for continued growth over the next five years to secure current jobs and create new ones. Mr Haskell said: “We will continue to work with our current customers, delivering quality products on time, but also look to expand our customer base by showing what a great service Salamander fabrications can offer. “The next year is going to be extremely busy for us as a business with lots of internal projects to streamline the way in which we work, ensuring that we can provide our customers old and new with an unrivalled one stop shop for all sheet metal requirements.”
Co-operation is key for Yorkshire’s high-fliers A COACHING service aiming to help Kirklees firms become the best says co-operation will be the name of the game for forward-thinking businesses this year. GrowthAccelerator, the Government-backed initiative that helps businesses fulfil their growth potential, surveyed 500 business people across the UK – and found that working with like-minded peers and investing in staff training topped the ways they plan to pursue growth in 2013. Among Yorkshire firms polled, 29% said their biggest “enabler” of growth to date has been advice and coaching while half think they’ll grow by up to
20% next year. More than a third of Yorkshire businesses list launching new products as their number one ambition for 2013 while a third say their biggest piece of advice to others is not to be scared of diversifying or innovating to launch something new. The national findings show that the owners behind the UK’s fastest-growing businesses are confident in their business models – with 86% predicting they’ll grow by up to 20% next year. They are also investing money rather than cutting corners in a bid to help their staff and businesses achieve their potential.
When asked what their biggest business ambition was for 2013, most said they wanted to grow their workforce – with staff training coming out on top when asked how they’d spend additional resources. They also said that if they could give aspiring high growth businesses one piece of advice, it would be “to continue investing in staff even when money is tight”. Simon Littlewood, of GrowthAccelerator, said: “In prioritising investment in staff training next year, fast-growing businesses are showing they have faith in the strength of their business models.
“The impact of the recession has hit hard for many companies and we know from the businesses we work with every day that there is nonetheless huge ambition and drive among the UK’s business owners. “The GrowthAccelerator service is all about providing the tools, access to individuals who can help and support that businesses need to achieve this potential for growth.” Also high on the list of activities fundamental to growth was forming partnerships and networks, and working collaboratively with like-minded businesses and organisations.
INSIDE Party planner A LUXURY themed children’s party venue has won a monthly award after its founder impressed judges with her passion and business acumen. Party Dreamz, set up in 2008 by mother-of-two Susan Adams and based at Milnsbridge, was named Business of the Month in the award scheme run by Huddersfield law firm Eaton Smith in conjunction with the Mid Yorkshire Chamber of Commerce and UKTI.
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Digital print prize A PUBLISHING firm in Huddersfield beat off strong competition to land a national print award. Digital printer, bookbinder and presentation packaging company Dunn and Mills Group was named Digital Printer Magazine Book Printer of the Year Award 2012 at a gala luncheon London’s Marriott Hotel for its entry, a hardback featuring the work of Wakefield-based artist Les Packham.
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KIRKLEES BUSINESS NEWS
national
Lack of Christmas cheer at Morrisons SUPERMARKET chain Morrisons admitted that its Christmas sales were below par – after feeling the heat from rivals in a “highly promotional” market. The UK’s fourth-biggest grocer, which employs about 130,000 staff at 455 stores in the UK – including ones at Waterloo and Meltham in Huddersfield – reported a 2.5% decline in like-for-like sales for the six weeks to December 30. Morrisons labelled the performance as disappointing. Despite the latest drop in sales, which follows a 2.1% decline in the previous quarter, Morrisons said it remained on track to meet profit expectations. Analysts believe Bradford-based Morrisons has struggled to compete because of its lack of a grocery delivery service and its small number of convenience stores. Competition in the sector over the Christmas period has been as fierce as ever, with the big players focused on
promotional deals and money-off coupons. Tesco sharpened its performance after a disastrous 2011 and is likely to show a modest return to like-for-like sales growth later this week, while Sainsbury’s will also be up by about 1% in sales figures on Wednesday. Morrisons has also been squeezed by further strong growth from discounters Aldi and Lidl. Morrisons said: “The environment over the Christmas period has continued to be challenging with hard-pressed consumers increasingly ■ POINT OF SALE: Morrisons has shopping to a budget and ‘vouchering’ been squeezed by its major rivals and a prominent feature of a highly promo- discounters such as Aldi and Lidl tional market.” However, the company admitted it Talent and Ant & Dec’s Saturday Night has not done enough to advertise its Takeaway in a bid to promote the promotions and communicate its chain’s fresh food credentials. A move into online shopping is points of difference. Chief executive Dalton Philips expected later this year, while the comrecently announced an advertising deal pany hopes to have 70 convenience with TV presenters Ant and Dec and stores by the end of 2013. sponsorship of hit shows Britain’s Got Mr Philips praised staff for achieving
good availability of produce and high standards of service during the festive peak period. However, he added: “In a difficult market our sales performance was lower than anticipated, but we have a strong business and significant opportunities to advance our strategy.” Analysts noted that profit forecasts for Morrisons were already coming down in the City before the disappointing update. Seymour Pierce stockbrokers responded by knocking another £10m from its forecast for the year to the end of January, taking the figure to £880m – and has cut the 2014 figure by 8% to £850m. Its retail analyst Freddie George said the sales fall came despite softer comparatives with a year earlier. He added: “With catch-up investment needed in convenience and online, we expect Morrisons to continue to underperform the industry in the year ahead.”
‘Shadow’ over firms’ prospects
Online boost for retailer
MANUFACTURERS are more upbeat about the UK’s economic prospects this year – although the potential for a world slowdown continues to “cast a shadow” over industry, according to a new study. A survey of more than 100 firms by employers’ body the EEF showed that business leaders feared eurozone markets would offer few growth opportunities in 2013. About a third of those polled said they expected economic conditions to improve, although one in four predicted a further deterioration. Andy Tuscher, Yorkshire region
HOUSE of Fraser rode the wave of shoppers logging on over the festive period as it reported its “best ever” Christmas performance. The department store retailer, which has a store at Kingsgate in Huddersfield, lifted sales by 6.3% in the six weeks to January 5. Online revenues rose by 48% in the period as increasing numbers of customers used their mobile phones and tablets to shop on the internet. The group, which has 60 department stores, said it sold 45,000 pairs of shoes and 40,000 handbags a week
director for the EEF, said: “The past year has been a challenging one for UK manufacturers, but as they look to 2013 there is still growth potential in their businesses. “The increases in investment in innovation in recent years will bear fruit as companies see opportunities from new product development and, the commercialisation of new technology. “Moreover these effor ts will provide a platform for UK exporters to compete in faster growing markets and support efforts to diversify into new supply chains.”
in the period, up 19% and 16% respectively. House of Fraser, which has 7,300 staff plus 11,000 concession employees, said online sales exceeded any individual store after the relaunch of its website and the opening of “click and collect” stores in Aberdeen and Liverpool. Despite the increase, chairman Don McCarthy said: “There is no doubt 2012 was a challenging year in retail and it remains difficult to predict when economic conditions and consumer sentiment will improve.”
Page 2 New car sales rise MORE than 2m new cars were sold in the UK last year – an increase of 5.3% on 2011 and the highest since 2008, according to the Society of Motor Manufacturers and Traders. The Ford Fiesta was the best-selling car of 2012, with more than 109,000 models bought, followed by the Vauxhall Corsa (89,434), Ford Focus (83,115) and Vauxhall Astra (63,023). Last year’s healthy sales figures followed a 12.9% increase in private demand for new cars. Despite the strong performance of the motor industry, the new car market was 14.9% below the pre-recession level of 2.4m sales in 2007. Diesel cars took a record 50.8% market share, with sales of just over a million compared with 978,000 petrol vehicles. Sales of alternative fuel vehicles, such as electric, increased by 9.4% to almost 28,000 – , a market share of 1.4%, which is a new high.
Better for New Look FASHION chain New Look reported a 3.7% rise in like-for-like UK sales for the 14 weeks to December 29. The retailer, which has a store at Kinsgate in Huddersfield, also said gross margin was “significantly ahead” of last year due to better stock management, lower markdown and promotional activity.
SHARE PRICES NORTH AMERICAN American Express £37.13 +0.06 Gannett 1177.48 +7.15 Hess Corp £34.59 +0.37 Microsoft 1662.52 -0.31 Motors Liquidation 46.64 Wal-Mart Stores £42.43 -0.52 AEROSPACE & DEFENCE Avon Rbbr 398 +6 BAE Systems 3501/4 -23/8 Rolls-Royce 9041/2 -131/2 AIM Brady Plc 93 -21/2 AUTOMOBILES & PARTS GKN 2343/4 -11/4 BANKS Barclays 2871/4 +101/2 HSBC 6661/4 -13/8 1 Lloyds Banking Gp 50 /2 +5/8 7 Ryl Scotland 333 /8 +1/8 Stan Chart 16221/2 -11 BEVERAGES Diageo 1813 -111/2 SABMiller £287/8 -1/4 CHEMICALS Croda £235/8 Elementis 98 2301/4 +1/4 Johnsn Mat £233/8 CONSTRUCTION & MATERIALS Balfour Beatty 290 +13/4 Costain 252 +13/4 ELECTRICITY
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KIRKLEES BUSINESS NEWS WHEN Grazyna Bylinka came to Huddersfield from her native Poland in 2004, she spoke barely a word of English. Now the 34-year-old, who came to this country to improve her career prospects, is a chatty, successful businesswoman and a well-known face at local networking meetings. Grazyna, who is known as Grace to her English friends, runs her own business promoting and selling Swedish cosmetics and skincare by Oriflame from her home at Birchencliffe. She is one of the company’s most successful traders in Britain, turning over £500,000 a year and leading 10 nationwide teams comprising about 500 people. She first sold Oriflame products to her friends when she was a student at Warsaw University. She resumed the link-up after coming to Britain by becoming a consultant in 2007 to make a bit of extra cash alongside her full-time job. She rose quickly through the ranks and in 2009 became a regional manager – a job title referring to her level of seniority, not geographical responsibilities. She has built her teams through talking to people, networking, referrals and recruitment and manages them via social media and webinars as well as face-to-face meetings. As well as being responsible for the sales and growth of her team, she sells Oriflame products across West Yorkshire via online orders, stands at local events and networking meetings. Grazyna is a prominent member of the Ladies 4 Networking group, which meets in Milnsbridge, but also attends networking events in Huddersfield, Brighouse and Halifax. Grazyna studied tourism management at university, but discovered that her graduation certificate was not enough to get her a job. She decided to come to Britain to get work experience. “I got an ‘open ticket’ to stay for a year, thinking I could always go back home if I was not happy,” she says. “That first year was the hardest because I had no family here, no contacts and very little English, but I decided to stay a bit longer!”. Grazyna initially worked as a waitress at Casa Mia and the Radisson in Leeds before becoming hospitality assistant at KPMG – and renewing her Oriflame connection. “I knew the brand and the products and I saw an opportunity to earn some extra money,” she says. “I realised there was an opportunity to run a business when I invited other people to join – and my team grew enough for
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Page 3 Grazyna Bylinka
Leading lady’s happy to talk! me to give up my full-time job in catering and become self-employed. “I have managers based in Batley, Leeds and Doncaster, but I have a team of 500 people all over the UK. One of my main aims for 2013 is to look for additional managers for the team.” Says Grazyna: “I am a big believer in personal contacts, helping people in the team and developing their skills.
■ SCENT OF SUCCESS: Grazyna Bylinka, known as Grace, is regional manager with skincare and cosmetics company Oriflame
“When I joined, I never thought I was going to be a manager – but people helped me on the way. “Ninety per cent of the people in the team are mothers or students, people wanting to earn extra money to supplement their income. “They like the products, they use the products and they sell them among family and friends. And, yes, the majority of the team members are ladies.” Grazyna stresses that her job – and that of her team – is to “promote” the products rather than giving it the “hard sell”. She says: “It is a well-established brand established in Sweden by two brothers who are still in charge of the company. “It has been going for 45 years and started in the UK in the 1970. I joined at a fantastic time, four years ago when the company was being relaunched across the UK. “I am passionate about the products and I have never had any regrets about joining. I can be working from home or visiting team members, having a meeting with one of my managers or out delivering orders.” While Grazyna has big plans for her business in
2013, she has other reasons to look forward to next year – an August wedding and a honeymoon in Australia. She’s engaged to Christopher, who she describes as her gorgeous Yorkshire lad. Much of her spare time is spent organising things for the big day. Meanwhile, there are contacts to make and networking events to attend. Says Grazyna: “When I joined the networking group I couldn’t believe there were so many businesswomen out there, so many friendly faces and people happy to help. “After being a member for a few months, it felt like going to lunch with friends. It isn’t hard work or the ‘hard sell’ – it’s building relationships. “I learned a lot – how to present, how to talk to people – and it helped me become more confident to talk about myself and what I do. “Attending networking events is an investment. You always get this big buzz from the meetings and there are so many useful businesses who
can provide services you need.” Grazyna’s talents also extend to sewing – a skill she acquired over several years. She jokes that if things don’t work out, she has sewing to fall back on as a career. And she adds: “I went to a party and found I was wearing the same dress as another girl, which felt awful. Next time, I will make my own dress!”
Role: Regional manager Age: 34 Family: Engaged to Christopher Holidays: We are planning our honeymoon in Australia Car: Ford Focus First job: Working in a cafe as a student in Poland Best thing about job: The flexibility and independence Worst thing about job: I can’ think of anything I don’t like about my job! Business tip: Believe in yourself and what you are doing
Oriflame Work: Skincare and cosmetics Site: Huddersfield Employees: 500 independent consultants across the UK Phone: 07900 643520 Email: grace.ori @gmail.com Web: www.swedish cosmetics.co.uk
HENRYK ZIENTEK
Who will be the next Business of the Month? If you are proud of what your business has achieved; why not tell us about your success story and you could be a winner of our prestigious award. For further details please contact: Ian Greenwood, Eaton Smith Solicitors, 14 High Street, Huddersfield HD1 2HA T: 01484 821389 E: iangreenwood@eatonsmith.co.uk Business Of The Month Awards - Rewarding Success Since 1995
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Change of date A NETWORKING group has changed its name – for one month only. The First Friday Club becomes the Second Friday Club when it meets this Friday from 12.30pm to 1.30pm at The Vox Bar in Wood Street, Huddersfield. The change comes because many business people were not back at their desks last Friday following the Christmas break. The meetings, which are organised by Huddersfield accountancy firm Revell Ward, provide an informal venue for local business people to meet and chat without the pressure of generating leads. For details, email enquiries@revellward.co.uk
KIRKLEES BUSIN
Starbucks aren’t really bad guys THE BUSINESS BATTLEAXE Amanda Vigar
HE big brands – eBay, Google T and Apple – are notorious tax avoiders who should be hauled
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over the coals by HMRC, right? Starbucks, for example, has been forced to pay £20m to the tax man over the next two years due to alleged tax avoidance. Should other big multi-national companies now be hounded until they pay up? Well, that’s a big resounding “no” from me! With an international economy, people are able to move their money across tax boundaries quite freely and legally. And they are allowed to take advantage of the system they operate in. Any curb on this free movement may well deter major international companies from trading in the UK. That said, there need to be checks and balances in place to prevent abuse. Hence, the civilised world has introduced rules on transfer pricing to
ensure that profits aren’t moved around just to save tax. There has to be a commercial reason for it. While I’m certainly not arguing for an end to taxation, we have to face the fact that high levels of taxation will prevent some kinds of economic activity from happening. We also have to look wider than just what corporation tax they pay. There’s VAT, National Insurance, landfill tax and customs duties, to name but a few. We also have to remember that the average Starbucks on the street corner is a franchise – i.e. not owned by the Starbucks ogres, but by small businesses that are paying corporation tax – assuming they make profits. So, rather than whining that the big corporations are getting away with
murder by not paying “enough tax” into UK coffers, why don’t we instead breathe a sigh of relief that these big, hugely successful, companies are operating here at all? They invest in our country as they do business here, recruit from our workforce and sell goods and services to us that we actually want. So, what’s the point of casting them as the bad guys? Well, there’s no point at all. Where Starbucks leads, by making a token (to them!) £20m tax payment – really, a brilliantly timed PR exercise – I doubt that many other companies will follow. That’s good news for our economy, as those businesses are more likely to stick with us and invest in UK PLC.
Amanda Vigar is managing partner at Holmfirth-based accountants V&A Bell Brown LLP
Company wins print award for book of watercolours A PUBLISHING company in Huddersfield beat off strong competition to land a national print award. Digital printer, bookbinder and presentation packaging company Dunn and Mills Group was named Digital Printer Magazine Book Printer of the Year Award 2012 at a gala luncheon London’s Marriott Hotel. The company, which employs more than 80 staff and has annual sales of almost £3m was recognised for its entry, Yorkshire in Watercolour, a dust-jacketed hardback book featuring the work of Wakefield-based artist Les Packham. The book, consisting of 128 colour pages showing some of the artists’ best-known works, was published, designed, printed and bound by the Dunn and Mills Group, which is based at Red Doles Lane, Deighton. The award was presented to group director and co-owner Jeremy Mills by a representative of award sponsor Delphax at the event and host ex-footballer Kevin Keegan. Said Mr Mills: “In recent years, we have become one of the leading digital printers, bookbinders and presentation
Golf firm up online
A GOLF equipment supplier based in Huddersfield has revealed record online sales in the build-up to Christmas. Direct Golf UK, based at Leeds Road, posted a 58% increase in online sales during compared with the s 2011. The firm’s we and customer servi out more than 5,500 during their busiest year. Chairman John And Class AA PGA Profe “While Christmas is busiest time of the y have exceeded all e The company sent o million emails as pa Christmas promotio drive sales and buc retail trend.
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■ WINNER: Jeremy Mills (second left), director and publisher of the Dunn and Mills Group, with (from left) Kevin Keegan; Steve Hubbard, general manager for EMEA, Delphax, and Lindsey Pearson packaging companies in the country and this major win cements our growing reputation in the industry. “This Award is recognition of the skills and expertise of our dedicated
staff in very difficult economic circumstances which have seen us invest prudently in new technology and equipment at our main Huddersfield site.”
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Cut costs, not service levels SMALL firms across could save themselves almost £576m a year by taking simple steps to cut costs – without hitting service or staff, according to new research. Despite rising fuel and energy costs, a quarter of all Yorkshire’s small and medium-sized enterprises a d m i t t e d t o rev i ew i n g t h e i r day-to-day costs only once in a calendar year in the survey conducted by Yorkshire Bank. The same SMEs admitted they could probably be getting a better deal if they tried – but lack of time or misplaced loyalty to their current suppliers meant they were unlikely to do so. And almost a quarter of them admitted to never regularly reviewing the costs for their largest areas of expenditure. Electricity and gas prices have risen by 69% and 87% respectively since 2005 – and the Government predicts prices will rise a further 26% by 2020 compared to today’s prices. The average price of motor fuel has risen 44% in the last seven years. More than 25% of businesses said that – excluding salaries – materials and supplies represented the most significant cost for them last year. Fuel, IT, rent and energy bills were also significant and – together with materials – represented about half of all SME expenditure. Yorkshire Bank has introduced a series of measures to help businesses grow by lowering some of their costs – introducing fee-free lending for growing businesses and a new switching package with free day-to-day banking for businesses with an annual turnover up to £2m. Alan Young, Yorkshire Bank regional director, said: “Keeping a watchful eye on overheads is crucial to ensure business growth and profitability. “With difficult trading conditions it can be easy to lose sight of some of the simpler ways of helping your business, but regularly reviewing
costs should be top of the to-do list for any SME owner or manager.” Last year, Yorkshire SMEs that reviewed their regular costs saved an average of £6,940 by adopting straightforward measures such as i m p l e m e n t i n g e n e rg y - s av i n g policies or moving to a paperless office – cost-savings that could be ploughed back into the business in the form of new jobs. Mr Young said: “Yorkshire and Humber small businesses are facing daily cost increases. Energy bills alone have risen by more than three quarters. “Even relatively simple measures, such as making sure computers are switched off at night, rather than left on standby all go towards bringing costs down.” The Carbon Trust suggests the cost of keeping a single computer and monitor on each year is £50. By switching it off out-of-hours this is reduced to £15 – a 70% saving. A report by the Department for Business, Innovation and Skills predicted that SMEs sticking to a business plan were more likely to succeed, suggesting that SME owners who plan and regularly review their outgoings would be more likely to grow their business. Said Mr Young: “By concentrating on reducing the costs of the basics such as energy and fuel, Yorkshire and Humber SMEs can free-up the maximum amount of cash to be used elsewhere supporting their growth. And because these are simple steps, they are not time-consuming. It need be no more than a couple of hours once a month or even quarter. “Our research shows that there are significant savings to be made without a huge amount of effort. “And all of these savings avoid cutting quality, service or wage bills, leaving money to be invested back in to the business, which in some cases is going to be tens of thousands of pounds.”
Bosses return to school MANUFACTURING firms in Kirklees and Calderdale will get the low-down on working with schools at an event next month. Calderdale and Kirklees Manufacturing Alliance is urging member firms to attend a Business/Schools Increase Collaboration event to be held from 4pm to 6pm on Thursday, February 7, at the John Smith’s Stadium. Headteachers, business co-ordinators and a number of pupils will attend the event in the
stadium’s Revell Ward Suite. Company bosses, training and personnel managers as well as young employees from industry are invited to attend. A spokesman for CKMA said: “Where schools are collaborating with businesses we are able to produce more informed, work-ready young employees and ultimately get more young people into employment. For more details, email Sue.Weston@kirklees.gov.uk
■ COST ANALYSIS: Alan Young, of Yorkshire Bank, says firms can make savings in areas like energy and fuel
Coaching counts survey reveals BUSINESS coaching helps organisations get the best from their senior personnel by improving performance and reducing costs, a survey has suggested. Respondents to the survey, which was conducted by Huddersfield businesswoman and independent researcher Judith Cork (pictured), also believed that coaching was more effective than traditional learning and development methods. Said Judith: “When it comes to investing in people and performance, are today’s leaders really getting the best results from their limited budgets? From this survey, coaching really seems to fit the bill and deliver results.” Change management topped the agenda as the main people-management challenge in the research commissioned by Beehive Coaching and Leadership Development Ltd. Eight out of 10 respondents said coaching could address their top people-management issues – from the day-to-day “nightmare employee” to the strategic merging of organisations. The survey showed coaching had been performance-enhancing with improved personal effectiveness, behaviour change and morale and motivation just some of the areas cited.
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KIRKLEES BUSINESS NEWS
Olympic effort is needed for 2013 KIRKLEES firms going into 2013 can learn lessons from the success of last summer’s Olympics, says a financial expert. Alex McWhirter, chief executive of funding body Finance Yorkshire, said: “The success of this summer’s London 2012 Olympic and Paralympic Games demonstrated that planning and investing in the future is a massively worthwhile exercise. “I think that all businesses – ours included – can learn from the Olympic achievement.” Mr McWhirter said: “Looking back over the last 12 months, we have had a very busy and constructive year. By the end of September, we had provided investment to our 200th SME. By November, we had invested more than £30m in SMEs in Yorkshire and Humber. “And we’ve now taken the amount of funding provided to businesses to more than £32.5m. We’ve achieved all of this in just over two years, which is rewarding and demonstrates that we are making a difference.” Said Mr McWhirter: “We said at the beginning of 2012 that the key for us was to increase our investment rate and I am pleased to say we have managed to do that despite
the difficult economic conditions. “A total of 280 investments have been completed, creating and safeguarding more than 5,190 jobs and generated a private sector leverage of more than £56m.” Looking ahead, he said: “We have already put in place a significant level of groundwork to ensure our activity leads to increased momentum in providing investment for SMEs. “We will continue to provide the most appropriate investment package to companies that we work with and this will be our mantra for 2013. However, confidence in the market is the key element for success. If this is lacking, owner-managers will be reluctant to develop and expand their businesses, reducing the possibility of further growth in the long-term.” Said Mr McWhirter: “There are numerous sources of finance available to owner managers, but this landscape of funding lacks cohesion and faced with such confusion, they tend to approach the likes of banks and friends to secure finance. This must change in order for the UK economy to grow.” “If we achieve these, it will lead to sustainable economic growth and prosperity across Yorkshire and Humber.”
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Chamber says firms will cope THE vast majority of employers will be able to cope when major changes to the way they send PAYE returns to the taxman come into effect, says a Huddersfield-based business group. From April, bosses will have to send PAYE returns electronically to HM Revenue and Customs each time they pay their employees as part of routine payroll processes. The returns will include details of all employees’ pay, tax and deductions. The new system – called Real Time Information – process will replace sending a separate return at the end of the year. PAYE is the way that HMRC collects Income Tax and National Insurance Contributions. Currently, employers have to deduct this from their employees' wages and pay HMRC either monthly or quarterly. Under RTI, an electronic return will have to be made to HMRC “on or before” the date a payment is made to an employee. If the return is not made on time, the employer is potentially liable to penalties. HMRC said employers should visit website hmrc.gov.uk/rti for full information about the new RTI system, including how to prepare, payroll software options and hints and tips to help avoid some common pitfalls. HMRC said employers may have to talk to their payroll software provider about acquiring new or updated payroll software – and they would need to start checking and updating employee information, adding: “It’s vital that the information employers have about their employees is accurate and up to date.”
■ FEW PROBLEMS: Steven Leigh, head of policy at the Mid Yorkshire Chamber of Commerce
Steven Leigh, head of policy for the Lockwood-based Mid Yorkshire Chamber of Commerce, said the new system would pose few problems for companies already using specialist software or the services of an accountant to handle payroll. He said: “The only businesses likely to be affected are those that aren’t online in any way or are dealing manually with payroll paper records. Those companies would be better advised to automate their processes. You cannot run a business in the modern world without computer links.”
He said HMRC was “very serious” about introducing the new system, adding: “In the long-term, RTI could bring savings.” Ruth Owen, HMRC director general for personal tax, said: “To avoid a last minute rush, it’s vital employers act now. “Employers will need to send their first return – called a Full Payment Submission or FPS – for salary or wage payments made to employees on or after April 6. If they have 250 or more employees, they will have to send an Employer Alignment Submission before the first FPS. “Although reporting PAYE in real time will be straightforward for most, some preparation is needed. There is more to it than simply buying or updating software – although this is key. “Employers may need to add employees such as casuals or those below the Lower Earnings Limit to their payroll system and must think about their payroll practices to make sure that they work for real-time reporting.” The RTI pilot was launched last April with just 10 employers. Since then, the pilot has expanded three times. By March 31, 2013, HMRC expects PAYE records for about 6m people to be reported in real time. HMRC said reporting PAYE in real time would allow it to receive information on employees’ earnings, tax and National Insurance Contributions as they are paid, rather than at the end of the year. RTI would make it easier for employers to administer PAYE and would make tax more accurate.
Confidence ‘stagnates’ as economy fails to improve CONFIDENCE has stagnated among many local firms – as the economic outlook fails to pick up, according to a survey today. The latest quarterly survey from the Lockwood-based Mid Yorkshire Chamber of Commerce showed no improvement in confidence among member firms during the final three months of 2012 – as UK and overseas markets remained “volatile”. UK sales and orders were static – although the findings do not cover the Christmas period when sales normally show an increase – while companies’ took a backward step when it came to recruitment and investment intentions. Steven Leigh, head of policy at the chamber – which draws its members from Kirklees, Calderdale and Wakefield – said: “It is to be hoped that latent demand, lost during the recession, will continue to unblock during the year ahead. “However, domestic and overseas markets remain volatile and it is becoming increasingly disappointing that we have still not yet seen any
consistent upwards trends.” He said any increase in investment this year would depend on the right conditions. Access to finance remained an obstacle to investment and growth – underlining the need for the Government to set up its British Business Bank at the earliest opportunity to help viable and fast-growing companies to gain access to affordable capital. Manufacturers cited exchange rates and inflation as the major worries facing them while inflation, competition and taxation were the main concerns for service sector firms. Expectations for profits and turnover improved marginally during the quarter, but not enough to increase confidence. Mr Leigh said: “We are yet to see from the coalition any convincing and persuasive vision for growth in the UK – as government policies continue to tinker around the edges with an unsettling degree of inconsistency. “Successfully realised policies are frequently tied up in bureaucracy and
take an age to come into force. “This is frustrating for business and it is not good enough if we are to be successful in promoting our economic recovery.” He added: “As we begin the New Year there is some evidence of cautious optimism about our economic future. “However, business success will hinge on many external factors, including more favourable policy conditions, a reduction in inflationary pressures, increased consumer demand and greater support for exporting companies. “Our chamber will continue to lobby Government on behalf of the business community in our region, seeking sound policy decisions to support growth. “In particular, we will continue to call for more investment in skills and infrastructure, a solution to the problems with access to finance, a renewed effort to tackle red tape and further support for exporters.”
KIRKLEES BUSINESS NEWS
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EU proposals may hit housing market INFORMED DEVELOPMENT
Martin Thompson ■ MILL WORKERS: Senior account executive Andrew Templeton (left) with Eastwood Partners directors Lucy Hodgson and Tony Crabtree
Insurance broker opens new office in West Yorks AN independent insurance broker with offices in Huddersfield has opened a new branch in Halifax. Eastwood and Partners Ltd has taken space at Dean Clough Mills. The new site is being managed by senior account executive Andrew Templeton. The office will complement the services offered by the firm’s premises at Northumberland Street in Huddersfield and Chapeltown, Sheffield, as well as its financial services company Eastwood and Partners (Financial Services) Ltd and Trinity Financial Advisers Ltd, which provide independent financial advice from offices in Lowfields, Elland. The group now employs more than 90 people offering bespoke Insurance solutions, risk management and financial
services to business and individuals. John Eastwood, managing director of the Eastwood and Partners Group, said “We have been considering opportunities to open an office in Halifax for some time and we are delighted that Andrew Templeton has joined the team. “Andrew brings with him a great deal of experience in the insurance broking industry and is well known to many in and around the Halifax area.” Said Mr Eastwood: “Whilst we act for individuals and companies nationally and internationally, the core of our clients is based locally and we are delighted to have offices in the town of Halifax and to employ staff who demonstrate and nurture their strong links with the Calderdale business community.”
Carter Jonas adds two to its rural property division A PROPERTY agency with offices in Slaithwaite has made two appointments to its rural division in Yorkshire. Laura Graham (pictured, top) joins Carter Jonas as a graduate surveyor following three years at the Royal Agricultural University. In her role at the firm, she will help to manage private clients’ estates which include both residential and rural properties, including lettings, managing existing tenancies and property management. Gillian Wilsher (also pictured) joins Carter Jonas from Harper Adams University as an assistant trainee rural surveyor. Wakefield-born Ms Wisher will help the team with its wide ranging rural professional work and rural lettings. Andrew Fallows, partner at Carter Jonas, said: “We always look to take on the best and brightest graduates to bolster our rural offering. Laura and Gillian will make excellent additions to the team.”
HE European Union has T issued a consultation document that could lead to VAT
being charged on all new homes in the UK – a move that would see the average price of a new home increase by £48,000 from £238,000 to £286,000. The consultation, which required replies to be lodged by January 4, 2013, proposes to harmonise rates across Europe. Currently, the UK has an exemption which means that new homes and self-builds are zero-rated for VAT purposes. Richard Jones, of the Residential Landlords Association, said: “The EU Commission is wanting to put an end to the UK’s right to zero-rate VAT on a wide range of items including
new-build housing. “Both owner occupiers and private landlords would be badly hit if this were to happen. “The consultation launched by the Commission has the potential to cause catastrophic damage to the housing market in the UK and we hope any such moves will be firmly resisted by the UK Government.” An increase of this size would clearly see more people being priced out of the UK housing market and cause serious issues for the building industry. Around 130,000 homes were built in the UK last year which is low and any increase in prices would only exacerbate the current housing crisis. John Stewart, of the Home Builders Federation, said: “In the midst of a
housing crisis, with a desperately fragile UK housing market and historically low house-building rates, any threat to the zero rating of VAT on new-build homes would be catastrophic. “It is vital that the Government joins with industry to combat any VAT imposition.” Whilst it appears that the UK Government is minded to reject EU proposals, industry analysts highlight that the EU’s move to standardise VAT rates on new-build homes was always only ever a matter of time. The consultation ran until last Friday. Its conclusions would have to be approved by the UK Government to become law which in itself could spark an interesting debate in Parliament.
Martin Thompson is a partner in Commercial Property at Armitage Sykes in Huddersfield
VAT cut tops 2013 wish-list A CUT in VAT for housing renovation and repair work is at the top of the New Year’s wish-list for most small and medium-sized construction companies. Almost three-quarters of member firms polled in a major survey by the Federation of Master Builders said VAT was an issue they wanted the Government to address. Building regulations, planning and finance were also listed as priority issues by over half the businesses surveyed. FMB chief executive Brian Berry said: “It comes as no surprise that construction SMEs want this targeted reduction in VAT. Most are still struggling with falling workloads and competition
from the informal economy. “This is about creating a level playing field and reducing the number of individuals and businesses that rely on avoiding VAT. “It is also about boosting growth in the economy by
making it easier for homeowners and landlords to commission the work they need doing on their properties. “Independent research has shown that the Government will quickly make up the initial loss of tax revenue owing to the growth in demand for housing repair and maintenance work.” Mr Berry said: “This is why the FMB has responded to an EU consultation on reduced VAT rates urging European lawmakers to keep the option open for the UK Government to cut VAT on housing repair work. “The EU must focus on helping Europe’s economy to grow and not take away existing flexibilities in the
tax system.” He said reduced VAT rates would also encourage more people to introduce measures in their homes to reduce household energy bills and cut CO2 emissions. Such measures already amounted to a quarter of all work undertaken in the UK housing repair and improvement market. Said Mr Berry: “Many European states, including the UK, levy a reduced rate of VAT on the energy consumers use, so it would be perverse for the EU to forbid its member states to discount the rate of VAT on work to help save energy, such as installing energy efficient glazing, new boilers or insulation.”
Poundland backs campaign HIGH street heavyweight Poundland is backing calls for the Government to scrap its planned postponement of the business rates revaluation. The discount retailer, which has stores in Huddersfield and Dewsbury, is backing Colliers International’s campaign to reverse the decision by signing an online Government petition. Poundland, which operates about
300 stores across the UK, including 17 in Yorkshire, and employs about 10,000 people, said the decision to postpone the 2015 revaluation until 2017 was “reckless” given the current decline of the retail market and would only serve to continue the injustice of businesses paying inflated business rates in a depressed climate. The retailer said it would also lead to more casualties on the high street,
following the collapse of household names such as Clintons, Peacocks, JJB Sports and Comet. National portfolio manager Ben Wall said: “It is difficult to understand the logic behind the decision to delay the rating revaluation as it will impact many retailers who are already struggling and facing financial hardship.”
KIRKLEES BUSINESS NEWS
■ VAN MAN: Kit manager Andy Brook at the wheel of the van with (from left) Town captain Peter Clarke, manager Simon Grayson and Roger Peel, of Northern Commercials
Dealership kits out Town’s kit manager A VAN and truck dealership is helping drive Huddersfield Town’s profile forward. Brighouse-based Northern Commercials has provided a striking new sponsored van for the club’s kit manager, Andrew Brook. Mr Brook was joined by Town manager Simon Grayson and captain Peter Clarke to take delivery of the new Iveco Daily van from Northern Commercials managing director Roger Peel at the Canalside sports complex. The van features full-length pictures of Town goalkeeper Alex Smithies and skipper Clarke down the sides as well as a picture of Adam Clayton on the rear – the player Northern Commercials sponsors in the 2012/13 season. The club’s logo also feature prominently on the van. Town commercial manager Tracy Nelson said: “Northern Commercials has been a long-time supporter of the club and this is a further extension of the fantastic relationship we have. “We’re proud to carry their logo on the back of our home shirt this season and now we can showcase our partnership on a daily basis with this terrific, fully branded van.” Mr Peel said: “It’s great for Northern Commercials to be involved with the football club. “We’re always looking for ways to interact with other local businesses and the community as a whole and working alongside Huddersfield Town helps us to do this.”
Khadim Hussain & Mark Fenwick
First Bus TWO bus managers are swapping jobs. Khadim Hussain, long-serving operations manager for First in Bradford, has been appointed operations manager for Halifax, Huddersfield and Todmorden. Mr Hussain (right, top) has worked for First at its Bowling Back Lane depot for 14 years in traffic planning, commercial and operational roles. Before that he worked for other local bus companies. Taking his old job at Bradford is Mark Fenwick, the current operations manager for First in Halifax, Huddersfield and Todmorden. Mr Fenwick (also pictured) has worked for First for more than 23 years, starting as an engineering apprentice before moving to work in operations as a driver, supervisor, staff manager and operations manager. His service has seen him work in depots in Halifax, Huddersfield and Hunslet Park.
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It’s still good to talk, says Brad BREAKFAST clubs and lunch-time networking events are still the most effective marketing tools for businesses, it is claimed. “In an age of constant emails, sales pitches, status updates and advertisements, cultivating personal relationships to make a business stand out from the rest, is a resolution worth making for any new start up,” said Brad Burton, managing director of 4Networking. Brad, a popular speaker at this year’s Kirklees Business Conference in Huddersfield, said: “Starting up a new business can be so isolating and it was only when I was delivering pizzas to keep mine afloat, that I realised just how important other people were to its success. “I began asking others in the same position if they felt like they needed other people and when they all said ‘yes’ it quickly became clear that if I was to get things off the ground, two things were essential – people and appointments. “Discovering that was the turning point for me and was when I created 4Networking. There are still so many people, though, who dismiss it and don’t realise that in not doing it, they’re probably the biggest obstacle to their own business’ success.” Brad said networking events could help boost the bottom line. He said: “Breakfast clubs and networking events are essentially like a place of work, where you can have face-to-face meetings with people who it could sometimes take months to make an appointment
■ TALKING POINT: Brad Burton says networking remains the best way to market your business
with, circumventing cold calling, direct mailing and telemarketing. It gets your foot in the door and puts a face to the name. “They facilitate the most effective marketing tool available to any business - word of mouth referrals. People always prefer a trusted recommendation and face-to-face
meetings at networking events allow you to establish if you like each other. If you don’t, it’s not going anywhere, but if you do, that’s a lead.” Said Brad: “Expanding an existing network of acquaintances and customers creates, builds and nurtures relationships gaining your business, and you, credibility and trust. When people already come personally recommended, it saves time having to seek them out and is a much better guarantee of quality. “Networking not only allows you to establish business contacts, but to also learn the dynamics within your industry, develop knowledge resources and seek new career opportunities, all whilst getting ‘plugged in’ to your community. “It’s the most productive, proficient and enduring way to build relationships and in serving as a resource to help others succeed, you’re also leveraging your own business and raising its profile.” Said Brad: “My first impression of running a business initially was private number plates, big fish tanks and spinning leather chairs – but after being £25,000 in debt, I know the reality of a small or start up business is very different. “It can be depressing and tough and there’s a fine line between success and failure, and that’s why having access to a network of people all in the same boat is so crucial. Everyone is valuable to everyone else – and putting a value on people before business will always set you apart from your competitor.”
Let’s get this party started! A LUXURY themed children’s party venue has won a monthly award after its founder impressed judges with her passion and business acumen. Party Dreamz, based at Milnsbridge, was named Business of the Month in the award scheme run by Huddersfield law firm Eaton Smith in conjunction with the Mid Yorkshire Chamber of Commerce and UKTI. In 2008, following the birth of her second child, the company’s director Susan Adams identified a big gap in the market for a high quality children’s party venue. With no experience of business and after much research, self-education and hard work to secure finance, she acquired and refurbished a suitable property and opened for business in July, 2010. The venue attracts customers from across West Yorkshire and offers hassle-free children and teen parties in three private themed party rooms. The parties combine role play and fantasy with exciting party games, craft activities, music and dancing. All staff and entertainers are experienced, fully trained and CRB checked to provide a safe
■ DREAM TEAM: Deborah Melluish (centre), presents the award to Susan Adams (second right) and Jade McDonald (right), of Party Dreamz, with (from left) Kate Booth, of Eaton Smith; Sherryl Driver, of Lloyds TSB; and Annie Bradley, of UKTI and happy environment. The judges were impressed by the passion that Mrs Adams has for her business and the drive and dedication she showed in making it a successful venture.
They were also impressed that she had secured funding both from Lloyds TSB and Business Link and had diversified to work with Kirklees Council’s School Resource Service to develop the venue
as an interactive learning resource which schools can visit to enhance the learning experience of their pupils by bringing the curriculum to life. It was also noted that Mrs Adams has contributed to the local business community by creating links with other suppliers in relation to celebration cakes and photography services as well as providing employment and fundraising for the Forget Me Not Children’s Hospice. Said Susan: “My husband, Morris and I have worked really hard over the past few years to create an innovative party experience that will change parents’ perceptions and expectations of children’s parties.” She added: “I believe that this award makes us the only award winning children and teen party venue in Huddersfield and that is an achievement we are truly proud of.” The Business of the Month Award is open to firms across Kirklees, Calderdale and Wakefield. Contact Ian Greenwood at Eaton Smith on 01484 821389