KAREN WYNARD Don’t be shy and retiring
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COLIN BARRATT You can’t take it with you! Column - Page 4
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KIRKLEES BUSINESS NEWS The business NEWSpaper for Kirklees
Group boosts jobs and export sales
A VALVE manufacturer has expanded its premises and is recruiting more staff after landing a series of key contracts. Alco Valves Group, which supplies customers in the oil and gas sectors, has acquired a 14,000sq ft unit alongside its existing offices and factory at Birds Royd Lane, Brighouse, to provide dedicated space for the manufacture of large valves. The privately-owned business is also recruiting up to 20 people over the next six months to add to its 100-strong workforce at Brighouse with roles including valve fitters, quality control operatives, valve design engineers and sales and administration staff – as well as a number of apprentices. The ambitious expansion plan follows the group’s success in landing several multi-million pound contracts in the UK and overseas from major blue-chip clients, which have put Alco on course for turnover of £30m this year. The group’s standing as a world leader in the design and manufacture of high-pressure valves has also been underlined by a strong forward order book into 2014 and beyond – as well
as its ranking in 58th spot among Yorkshire’s top 100 companies. Alco, which was established in 1977, has been making standard valves and associated parts as well as bespoke valves designed to operate onshore, offshore and at extreme temperatures for more than 30 years. As well as its Brighouse operations, it has sales offices, manufacturing plants, technical support offices and warehouses in Houston, USA;, Toronto and Calgary, Canada; and in the Middle East, South East Asia and the Far East. It also has agents and distributors in more than 30 countries around the world. Exports now account for more than three-quarters of sales – with tens of thousands of Alco valves going to clients worldwide every year. The acquisition of the new unit at Brighouse has also enabled the group to expand its research and development department – with the introduction of new technologies to speed up production of prototype valve parts and carry out testing. Operations manager James Stangroom said: “The new unit is part of our organic growth. The company is expanding and it is doing very well.
Winning formula A MARKETING agency in Kirklees has taken pole position with F1 in Schools. Fantastic Media has been appointed to develop online communication platforms for the international multi-disciplinary educational initiative for students. F1 in Schools chose the award-winning agency to increase its global profile and ensure its web activity is fully integrated. The social enterprise was set up in 2000 to help change pupils’ perceptions of science, technology, engineering and maths.
● Full story - Page 5 ■ GROWING ROOM: Alco Valves Group operations manager James Stangroom (right) and colleagues at the firm’s additional premises on Birds Royd Lane, Brighouse
“The expansion is great news for the local economy and will increase the company’s capabilities further.” Group managing director Stuart Lomax said: “Our expansion and grip on international marketplaces is vitally important to the future of the business and our current and future
employees. “It is very satisfying that some of our expansion has taken place in Brighouse, our historic and spiritual home. “This is a really exciting time for our business, both here in the UK and abroad.”
Design agency lands investment funding
■ BIG DESIGNS: The Engine Room team of (back from left) design director Darren Evans with colleagues Leo Parker, Neil Herke, Mark Edwards, Mark Greenwood, Helen Boyes and (front) Nikki Taylor, Sarah Hurtley and Lesley Gulliver
INSIDE
A DESIGN and branding agency has secured a business loan to support its plans for growth. The Engine Room, based at The Creative Lofts in Huddersfield, has gained backing from Finance Yorkshire. The boost follows the recruitment of Design Council design associate Lesley Gulliver to the business – and underlines the findings of the Technology Strategy Board’s 2013-16 Creative Industries Strategy, which highlighted the importance of the sector to the UK economy. It said creative industries now employed about one in 20 of the UK workforce and were considered to be one of the sectors that could push the UK into a sustained recovery. It said accountancy firm PwC had forecast annual growth of
4.2% for the UK’s media and entertainment sector to 2016 – higher than Germany or France. The Engine Room founder and design director Darren Evans said: “Running a design company is a tough game, but we’ve managed to survive and prosper over the last couple of years by honing our focus to two key areas for our clients – differentiation and return on investment. “Our turnover has increased, our export sales have risen from 0% to 25% and our staff numbers have doubled in less than 18 months.” The Engine Room is working on a number of products for UK manufacturers. One project for a Yorkshire-based manufacturer is to be launched this month. Ms Gulliver said: “We have exciting plans for the future and
this injection from Finance Yorkshire will help us significantly. We’re clear on our vision – for us, growth isn’t just about size. We want to manage our growth to ensure we retain our high service levels, our customer focus, our creative edge and our attention to detail in terms of our clients’ business objectives. We don’t want to become arrogant or overly confident. “We just want to keep delivering world-class design projects for our clients. That way, they’ll get better at what they do, and so will we.” Ian Atkinson, of Finance Yorkshire, said: “The creative and digital sector is a key market for Finance Yorkshire and we are pleased to support the future growth plans of The Engine Room.”
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Lacking in leaders A HUDDERSFIELD management development expert has spoken out after research by Cranfield School of Management and learndirect showed that two-thirds of employers agree that weaknesses in leadership and management skills are holding back UK companies – but only one in four firms offer their employees training in these crucial skills.
● Full story - Page 4
KIRKLEES BUSINESS NEWS
national
Upbeat firms still have their worries CONFIDENCE is improving among West Yorkshire firms, says a survey today. The latest quarterly economic survey from the Lockwood-based Mid Yorkshire Chamber of Commerce showed an increase in domestic and overseas sales as well as employment for member firms across Kirklees, Wakefield and Calderdale. But while firms also have buoyant expectations for turnover and profitability, issues around access to finance and taxation continue to cause concern for many businesses. There is also “some uncertainty” over the impact of national government policy and the wider economic environment as crisis continues to threaten in both the US and the eurozone. Steven Leigh, head of policy at the chamber, said: “It is clear from the responses to this quarter’s survey that
and businesses appear to be signalling serious determination to resume a growth agenda. “This now coincides with the broader economic trends which are being reported at national level and it is encouraging that our own region’s figures are starting to herald the onset of economic recovery. “It is particularly pleasing to see that business confidence sentiments have immediately recovered from the disappointing figures which were reported last quarter – and although confidence is likely to remain fragile until there is more sustained momentum in our economic recovery, these are nonetheless encouraging ■ SENTIMENT: Steven Leigh, of the signs.” Mid Yorkshire Chamber at Lockwood Mr Leigh said there were several business concerns which the chamber optimism is returning to our region. “Domestic sales and orders, export was urging the Government to seriorders, employment, investment and ously reconsider – including access to confidence are all in positive territory finance, adding: “Whilst the high
street banks reassure Government and the business community that they are ready to lend, businesses continue to report great difficulties in accessing affordable finance. “Clearly there is a major disconnect between supply and demand and numerous Government initiatives have done little to solve the problem. “The promised ‘British Business Bank’ is taking far too long to implement and the project needs now to be designated as an absolute priority in order to provide accessible and affordable finance to businesses at the earliest opportunity.” Mr Leigh said member firms were also concerned about business rates a n d t a x at i o n , a d d i n g : “ I t i s self-defeating for the authorities to demand unsustainable, unreasonable and unaffordable taxes from business if the net effect proves to be lower tax revenues.”
Page 2 Marketing campaign PERSONAL injury law specialist First4lawyers has launched a £10m-plus marketing campaign. The company, based at Dundas Street in Huddersfield, has commissioned a 30-second TV advert from award-winning Birmingham and Leicester-based agency Big Communications. The commercial features TV presenter Andrew Castle, a familiar face in First4lawyers adverts. The advert is being screened hundreds of times a day across various TV channels. The marketing campaign, which will run for the next 12 months, also includes digital display advertising and social media activity. Chris Rodgers, head of business development at Huddersfield-based First4lawyers, said: “The commercial reflects our status as a major player, with the third largest TV spend in the personal injury sector.”
Price rises squeeze Cranswick
Rolls-Royce gets a boost Big deal
A MAJOR supplier of bacon and sausages to leading UK supermarkets has warned that profits will be flat this year due to record pig prices. Hull-based Cranswick is relying on its ongoing efficiency efforts to offset the higher pig price, which has been caused by increased retailer demand for British pigs, strong export markets and rising grain feed costs. The pork producer said operating profits for the six months to September 30 will be broadly flat, d e s p i t e u n d e r l y i n g t u r n ove r increasing by 13% due to particularly strong growth.
AIRCRAFT manufacturing giant Airbus has announced its largest ever order from a Japanese airline in a major boost for British engine maker Rolls-Royce. Japan Airlines (JAL) is buying 31 A350 wide-body jets, which have a combined list price of nearly £6bn and has agreed options for a further 25 aircraft. The planes will be equipped with Rolls’ new Trent XWB engines when they are rolled out from 2019, replacing the airline’s fleet over six years. Built in Derby – where Rolls employs about 11,000 people – the UK firm claims the engines are the
The company is likely to have prospered in the wake of the horse-meat scandal, which raised questions about the provenance of some foreign-sourced products. It also believes that the “versatility and low relative price of pork” compared to other proteins has worked in its favour. Cranswick was formed by farmers in the 1970s to produce pig feed, before expanding in the 1980s. It supplies Tesco and Sainsbury’s and recently won new orders from Marks & Spencer and Asda. Panmure Gordon cut its forecast for full-year operating profits by 6% to £50m following the update.
most efficient flying today. JAL is thought to have chosen the A350 over Boeing’s yet to be launched 777X planes, which will be powered by General Electric of the US. Airbus chief executive Fabrice Bregier said: “It fills us with pride to see a leading Japanese airline start a new chapter with us. “This highlights a very bright and flourishing future for both of us, JAL and Airbus.” The group has secured more than 750 orders for the jets to date after completing its first test flight in June.
MERGERS and acquisitions in the UK have returned to pre-recession levels, according to figures from business information group Experian. Transactions worth £122bn were completed during the third quarter of 2013 – up from £32n in the same period last year and the highest quarterly total since the second quarter of 2007. The number of deals totalled 1,043 against 1,114 last time.
SHARE PRICES NORTH AMERICAN American Express £45.58 -0.62 Gannett 1580.45 -44.76 Hess Corp £49.80 -0.02 Microsoft £20.84 -0.22 Motors Liquidation 46.63 Wal-Mart Stores £44.76 -0.50 AEROSPACE & DEFENCE Avon Rbbr 5471/2 -21/2 BAE Systems 450 -33/4 Rolls-Royce 1119 +4 AIM Brady Plc 63 -1 AUTOMOBILES & PARTS GKN 3501/8 -23/4 BANKS Barclays 2721/2 +11/4 HSBC 6723/8 -47/8 Lloyds Banking Gp 743/8 -5/8 5 Ryl Scotland 373 /8 +3/8 1 Stan Chart 1443 /2 -11/2 BEVERAGES Diageo 19541/2 +6 SABMiller £303/8 +1/4 CHEMICALS Croda £263/8 -3/8 Elementis 98 2343/4 -31/8 Johnsn Mat £28 -1/8 CONSTRUCTION & MATERIALS Balfour Beatty 274 -1 Costain 2623/4 +11/2 ELECTRICITY
Drax Gp 6711/2 -4 SSE 1448 -14 ELECTRONIC & ELECTRICAL EQUIPMENT Laird 222 -3/8 EQUITY INVESTMENT INSTRUMENTS Alliance Trust 426 -1/4 FIXED LINE TELECOM SERVICES BT Grp 347 -37/8 Cable & Wireless 403/8 +1 Comm Colt Group 120 -21/2 KCOM 901/2 -13/8 5 Talktalk Telecom 246 /8 -31/2 FOOD & DRUG RETAILERS Morrison W 2765/8 -17/8 Sainsbury 3873/4 -21/8 Tesco 362 +1/2 FOOD PRODUCERS AB Food 1905 +22 -41/2 Tate Lyle 7401/2 3 Unilever £23 /4 GAS, WATER & MULTIUTILITIES Centrica 3655/8 -3/8 National Grid 7401/2 -3 Pennon Grp 688 -2 Severn 1771 +4 United Utils 6951/2 -1/2 GENERAL FINANCIAL 3i Group 349 -21/4 ICAP 360 London StockExch 1537 -12 Man Group 801/8 -11/4 Provident Financial 1646 -4
Schroders £255/8 Schroders NV £211/2 +1/8 GENERAL INDUSTRIALS REXAM 4847/8 +3/8 Smiths Grp 1355 +1 GENERAL RETAILERS Ashley L 251/4 Carphone Whse 2441/2 +41/4 Dixons Retail 461/2 +1/8 3 Home Retail 171 /8 +3/8 Inchcape 612 -1/2 Kingfisher 368 -1 M&S 4801/4 -133/4 Mothercare 367 -10 Next £501/4 -5/8 WH Smith 8631/2 +101/2 HEALTH CARE EQUIPMENT & SERVICES Smith Nph 761 HOUSEHOLD GOODS Aga Rangemaster 1211/2 -41/2 Barrat Dev 310 -13/8 Persimmon 1067 -10 Reckitt Benckiser £433/4 +1/8 Taylor Wimpey 981/2 -15/8 INDUSTRIAL ENGINEERING IMI 1462 -8 INDUSTRIAL METALS Ferrexpo 1771/2 +13/4 INDUSTRIAL TRANSPORTATION BBA Aviation 3003/4 -43/8 LIFE INSURANCE Aviva 4225/8 +73/4
1953/8 1877/8 1176 3231/4 3511/2 MEDIA BSkyB 8771/2 D Mail Tst 7621/2 1 HIBU /8 ITV 1813/4 Johnston Press 131/4 Pearson 1240 Reed Elsevier 835 STV Group 256 Trinity Mirror 1253/4 Utd Business 708 UTV 185 WPP 1261 MINING Anglo American 14851/2 Antofagasta 8201/2 BHP Billiton 1802 Eurasian Natural 218 Res Fresnillo 9311/2 Kazakhmys 2527/8 Lonmin 3071/8 Rio Tinto £30 VEDANTA 1061 RESOURCES MOBILE TELECOM SERVICES Inmarsat 705 Vodafone Group 2183/4 NONLIFE INSURANCE Admiral Grp 1211 Lgl & Gen Old Mutual Prudential Resolution Standard Life
-1/8 +1/4 -5 +1/8 -25/8 -1/2 +3 +31/4 -3/4 +1 +3/4 -7
Local shares Carclo Marshalls National Grid Weir Gp
3961/2 1711/2 7401/2 £223/8
-1/2 +1/2 -3 -3/8
FTSE closed at
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+7 -51/2 -1 -21/2 +21/4 +18 +17/8 -53/8 -1/8 +5
+11/2 -23/4 -11
RSA Insurance Gp 1191/4 -1/8 OIL & GAS PRODUCERS BG 1169 -1 +3/8 BP 4385/8 1 Cairn Energy 260 /2 +1/4 Royal Dutch Shell £201/8 -1/8 A 1 Royal Dutch Shell £21 /8 -1/8 B Total £361/4 +1/8 Tullow Oil 1002 +1 OIL EQUIPMENT & SERVICES AMEC 1076 +4 Petrofac 1373 -7 Wood Gp(J) 7821/2 -71/2
PERSONAL GOODS Burberry Gp 1608 -20 PHARMACEUTICALS & BIOTECHNOLOGY Astrazeneca £313/4 -1/8 GlaxoSmithK XD 10 1 Shire £24 /2 REAL ESTATE Brit Land 575 -3 Hamrsn 496 -41/2 3 Intu Properties 322 /4 +7/8 Land Secs 9141/2 -6 SEGRO 3125/8 SOFTWARE ETC SERVICES Invensys 4975/8 +3/4 Sage Group 3241/4 -43/4 SUPPORT SERVICES Berendsen 888 -12 Bunzl 1322 -3 Capita 1003 -3 De La Rue 950 -6 Electrocomp 272 -47/8 Experian 1156 +1 G4S 2491/4 -33/8 Hays 1173/4 Homeserve 2567/8 +3/4 Menzies J 7881/2 -201/2 Rentokil 1073/4 -7/8 Smiths News 200 -2 1 Wolseley £31 /2 -1/8 IT HARDWARE ARM Hldgs 970 -13 Spirent Comms 1261/2 +1/4 TOBACCO
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+11/4 -1 -37 -7/8 -11/4 -14 -9 -5 -53/4 -13/4 -11/8 +11/2 +7/8 -15/8 +3/4 +1/8
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KIRKLEES BUSINESS NEWS
Seating plan a winner THERE’S few things more quintessentially British than the beautiful Chesterfield sofa. But a Honley-based family-run company is taking the recognisable brand of furniture worldwide, thanks to international partners in Sweden, Germany, the USA, Japan, and more recently, Australia. In fact, as far as career highlights go, husband and wife duo Clare and Steve Laidlaw, of Distinctive Chesterfields, cite the day they signed a franchise agreement with Japan – the first franchise – as one of their proudest moments as a company. After all, the 25-strong firm was born from extremely humble beginnings, starting life at Honley’s Enterprise Works workshop and offices back in 2007 with a modest staff of just two – Steve and his father Bob. But while the company is certainly soaring above many of its competitors for the moment – adding three more furniture brands to its Comfy Sofa Ltd portfolio and having just agreed to supply Chesterfields to this year’s X Factor contestants’ house – business hasn’t always been easy. “I think the most difficult task we faced was figuring out for the first time how to engage a new, foreign market,” says Clare, adding that there were plenty of things the young couple – Clare aged just 30 and Steve, 31 - could have done differently in the early days. “We were perhaps a little naive to the cold face of business, but the lessons we learned have enabled us to become a stronger team - both professionally and personally,” adds Steve. “We have had to make redundancies in the past when things got hard – through no fault of our own. We just went at it too fast at the beginning but we’ve certainly learned the hard way.” Now running a hugely successful apprenticeship scheme, the workshop team overseen by Clare and Steve largely consists of young workers keen to make an impression and learn a new – and often overlooked – skill. “Many people today buy imported goods, but a high volume factory struggles to replicate the attention to detail which goes in to each piece here in our workshop.” adds Clare. Steve continues: “As a company, we get a great deal out of running an
apprenticeship scheme, but it is directly proportionate to the amount of effort we put in. It’s really satisfying to see a young person grow within this environment – as a person and a craftsman. Typically, an apprentice will take around two years to complete their apprenticeship, then around another three years before they will earn the title of master upholsterer.” The team, which includes a handful of upholsters, buttoners, studders (those who hammer in the distinctive studs into the back of each Chesterfield), finishers (in charge of finishing and checking the final product) and packers is predominantly male, with two female machinists to balance out the ever-growing testosterone levels. Tom Stringer is the longest-serving workshop member. Starting as an apprentice upholsterer, he’s worked his way up and has now completed each level of the scheme, meaning he’s fully equipped to take on anyone’s job in the busy workshop. It’s certainly a thriving business, with up to 50 sofas being handcrafted from scratch each week and customers dropping in to take a look at
the products on offer before making the decision to add a piece of iconic interior design to their home. In the office, Mark Denby is in charge of UK sales calls with Ruth Olbrych doing the same over in the US. Thirty-two-year-old Greg Wood splits his time between the UK office, answering calls from Click4Beds customers or driving across the country to deliver orders, while Richard Oakley, the company accountant, keeps on top of the books. While the traditional-looking Hampton is one of Distinctive Chesterfields’ most popular standard products, Steve says the company does take on a “heap of custom projects”. These have included a 38ft electric pink Chesterfield for an Italian nightclub, a collection of
■ MUTUAL RESPECT: Steven and Clare Laidlaw, of Distinctive Chesterfields in Honley
profile
sofas made from artificial grass for Channel 4’s annual festival T4 on the Beach and a rabbit-print Magic Eye-esque design in pale blue and white. The latest? A couple of stunning red leather “Belchamp” sofas – due to be spotted in the house where this year’s X Factor contestants will spend their time between all-important rehearsals and the live shows. Of course, most people would baulk at the idea of working so closely with their partner, but not Steve and Clare – who first met as teenagers at Honley High School, getting together a year or so later and remaining a couple since. The couple married back in 2005 in Cyprus and Clare later went on to work as a childminder with Steve selling contract furniture for a year or two before taking the plunge to set up on his own. The couple agree that while they thought there’d be plenty of rows in the early days of the business, it really hasn’t turned out that way. “I think mutual respect for each other in our respective roles is key,” says Steve, “And in many respects it can help – you tend to empathise with one another when having to work late or in the more stressful times, more than if you were to work in separate organisations.” Today, along with Distinctive Chesterfields, Click4beds.co.uk and Timelessbeds.co.uk make up the couple’s furniture portfolio, with new site comfysofa.co.uk following soon. With four furniture brands on their hands and an expanding international reach, the couple have certainly got their work cut out. So what are Clare and Steve’s tips for success? “Follow your heart,” says Steve. “If you feel
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Distinctive Chesterfields Work: Furniture manufacturer Site: Long Lane, Honley Phone: 01484 663294 Email: clare@distinctive chesterfields.com Website: www.distinctive chesterfields.com passionate about something enough you will find a way to make it happen. And just go for it – always better to be a failed trier than a successful talker, I reckon!” Clare agrees, saying you should always “go with your gut instinct” where business is concerned. In five years’ time, Clare and Steve would like to see the brands gain much wider
exposure, both here and abroad. “I’d like to have seen the business grow – especially Comfy Sofa,” says Clare, “I’d love us to be a bigger version of what we are now, with more prominence. “I think he initially set out for world domination to be honest.” As far as franchises in Japan, the USA and Australia go, the company really isn’t far off.
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Grassroots support for the artificial turf A LANDSCAPING specialist has laid down the gauntlet – winning an award for a new product. Kirkburton-based Paxman Landscapes launched Grass Greener, the latest innovation in artificial turf at Harrogate Flower Show. The new product, exclusive to Paxman Landscapes, provides a full service of artificial grass, installation, maintenance and support for all customers. Director Justin Paxman said: “Grass Greener needs very little maintenance, there is no need to mow your lawn and no need for weeding, trimming, edging and feeding. Grass Greener will give you a garden that looks great all year round.” He said the exhibition stand of Grass Greener at Harrogate Flower Show had proved a success. “The first day of the show brought a positive reaction alongside a plethora of enquiries and questions. The second day brought a multitude of queries, interest and again a very positive response. “But the most exciting part was the surprising recognition from the show itself, in the shape of a silver award for standard of sundries display.”
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KIRKLEES BUSIN
It’s still all about
death and taxes HE issue of Inheritance Tax is T often regarded as a taboo subject, but careful and early
lifetime planning can significantly reduce the loss of wealth from a deceased’s estate. An individual’s estate is normally comprised of assets such as the value of their home, savings and investments assets like quoted shares as well as personal possession such as jewellery. Amounts owed by an individual at the date of their death are taken into account to determine the value of their net estate. Where an individual’s net estate exceeds the nil rate band of £325,000 (£650,000 for married couples) on death, Inheritance Tax of 40% is levied on that excess. Even with the continued lack of growth in the economy, the incidence of Inheritance Tax is no longer the domain of the very wealthy. For those with modest assets, but not significant pension income, there is often not much that can be done to mitigate theInheritance Tax cost for the next generation. If you need the assets for security of income in your retirement or to fund future care costs, you cannot also give them away to mitigate Inheritance Tax.. There a re s o m e i n s u ra n c e c o m p a ny products available to partly achieve this, but should only be used with great care and with complete understanding. Those who are less reliant on cap-
TAX TALK Colin Barratt
ital and who have already made adequate financial provision for their spouse, could make sizeable gifts during their lifetime to children or grandchildren to save tax in the future. Annual gifts of up to £3,000 per individual are completely ignored for Inheritance Tax purposes. If this exemption has not been used in the year, it can be carried forward to be used in the following year, potentially giving scope for up to £12,000 to be gifted, for married couples. Where individuals have surplus income, after taking account of all domestic expenditure, they could make annual gifts out of this surplus which could be exempt from IHT, as long as the gifts do not affect their current lifestyle. This may be of benefit to say grandparents wishing to help their grandchildren who are faced with increasing educational costs whilst at the same time helping to mitigate their own Inheritance Tax liability. This type of gift must be intended to be made on a regular basis and a good way of demonstrating this would be to set up a regular standing order payment from you to the recipient. You do not need to commit yourself for a fixed period of
time, but your intention must be to make more than one gift. Gifts made by parents to their child on the occasion of marriage are also exempt from IHT up to £5,000 per parent (£2,500 for gifts made by grandparents). Lifetime gifts in excess of these exemptions will be free of tax provided the donor survives seven years thereafter. Some measure of Inheritance Tax relief might be available where the donor survives at least three years from the date of gift. For those contemplating making sizeable gifts, the use of “nil rate discretionary trusts” during lifetime or through their wills can still play an important role. Income generated in the trust is taxed at 45%, but this income can then be distributed to particular beneficiaries, such as grandchildren, who may be able to reclaim most if not all of the tax withheld on the income they receive. Trusts are also useful where there are concerns about the ultimate destination of assets and in protecting such assets from young or inexperienced beneficiaries. Indeed, this protection is often the key reason for setting them up.
Colin Barratt is tax partner at Wheawill and Sudworth chartered accountants, Huddersfield
Leaders needing lessons
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TWO-thirds of employers agree that weaknesses in leadership and management skills are holding back UK companies. But only one in four companies offer their employees training in these crucial skills, according to research by Cranfield School of Management and learndirect. David Broadhead (pictured) , of management development centre Partners in Management, based at the Media Centre in Huddersfield, said the findings came as no surprise. Said Mr Broadhead: “According to the Office for National Statistics, nationally we are now 24% less productive than the average French or German employee and it’s maybe no slight coincidence that on average German companies spend nearly three times as much on management and leadership training as British companies do. “As we now exit the global recession, it would be tragic if the economic advantages offered by low
interest rates and falling wages were squandered by our management weaknesses, particularly in the areas of innovation and corporate entrepreneurship.” Mr Broadhead urged business leaders in Kirklees to gain the edge over their national and global competition by taking advantage of up to £750 funding still available to support appropriate management development through the Kirklees Working Smarter initiative. “There is a perception that management development is a costly
and time consuming exercise,” he said “This isn’t true and our latest seven-day course starting in October has been designed to offer a highly effective way of developing the knowledge, skills and attitudes needed in the highly challenging and competitive 21st century economic environment. “Local businesses could join this from £250 if funded too, so cost shouldn’t be an issue. It also offers optional routes through to nationally accredited qualifications as well via either the Chartered Institute of Management – for whom we are one of a select number of national centres piloting a new masters level diploma – or with the Institute of Learning and Management at Level 5, as we are proud to have just been approved as one of their centres.” Cranfield said management training should be a mandatory element at NVQ level 3 and above – and that all new government ministers and their shadows receive management training, too.
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Design
BUSINESS own senior manage consider how d their operation next week. The Engine Ro short seminar, – Not Just Your noon on Thurs offices of law f Lawrence, Rail Huddersfield. Delegates will b think about the business and h achieve greater Visit www.kirkleesbu email nikki@en
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Reckoning up for retirement income IFETIME annuities have always L been a popular choice for retirees seeking a guaranteed source
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of income for life. But according to a recent Association of British Insurers report, 43% of people don’t take any financial advice before buying an annuity and the vast majority choose a level income that will not increase in payment. However, whilst a non-escalating annuity will pay the highest level of income initially, because the income will never increase the effect of inflation could seriously erode its buying power over time. The value of money has almost halved in the last 20 years and even if the Government’s target inflation rate of 2% is met, the buying power of a level annuity bought today could easily be less than half of what it was at the outset if someone enjoys a long retirement. If we also consider that retirees spend a greater proportion of their income on things that tend to increase in price at a faster rate than inflation (for example, energy bills and food prices have both increased well beyond Consumer Price Index rates in recent years) the benefits of choosing an increasing annuity is something that needs to be given serious consideration. To help illustrate the point, if you are a 65-year-old in good health with a fund value of £500,000, you could buy a single life annuity of about £30,000 a year that won’t increase compared to a starting income of about £18,000 that would increase every year in line with inflation. Whilst on the face of it then, the much higher level annuity may look more attractive, it is not inconceivable that this income might need to be paid for at least 30 years and even if you don’t live for another 30 years you could still “make a profit” depending on what the actual rate of inflation is. For instance, if inflation was 4% every year it would take 15 years for an initial annual income of £18,000 to overtake a
FINANCIAL FOCUS Karen Wynard
non-increasing income of £30,000 pa and a total of just over 25 years for the cumulative amount of income received to outstrip the non-increasing annuity. In our experience, the vast majority of people who choose a level income when purchasing an annuity do so because they like the idea of having more to spend earlier in their retirement when they are likely to be more active, but also because they are put off by the amount of time it will take to be “in pocket”. When looking at the time it will take to be “in pocket” though, many people underestimate their life expectancy – and the wealthier you are, statistics suggest, the longer you are likely to live. Whilst, however, the risks of inflation in retirement can often be underestimated and what might seem a good level of income on the first day of your retirement could look quite paltry 20 years later, a level income may be the right answer if y o u h av e a shorter life expectancy and/or other assets to call on when inflation starts to bite. And, if you do have a medical condition or lifestyle that is likely to result in a shorter life expectancy an enhanced or impaired life annuity may be av a i l ab l e t o boost your
n seminar
Winning lawyers
ners, directors and ers will be urged to design can transform ns at a free seminar
LAW firms with offices in Huddersfield emerged among the winners in the Yorkshire Lawyer Awards. Ridley & Hall Solicitors took the title in the category for law firms with one to 10 partners at the ceremony held at New Dock Hall in Leeds. The category is one of the most fiercely-contested at the awards. Senior partner Nigel Priestley and colleagues accepted the award. The award recognises the law firm, based at Market Street in the town centre, for a number of
oom Design will run a Design Your Business ur Brand, from 10am to sday, October 17, at the firm Chadwick lway Street,
be encouraged to e role of design in their how it can help them er commercial success.
usinessweek.co.uk or ngineroomdesign.com
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successful regional and national initiatives, significant investment in client service programmes and personal development training for staff to build on its strong reputation. Makin Dixon Solicitors, which has an office at Queen Street in Huddersfield, won the award for niche family law firm – beating two other firms based in Leeds. The head of the Huddersfield office, Jennifer Stroud, joined Makin Dixon partners and colleagues at the ceremony, which was hosted by Gaynor Barnes.
income even more. The main problem though is that many individuals will consider their position today and not think much further ahead – and even those that do consider the future often underestimate their life expectancy. For example, the average life expectancy of a 65 year old is currently about 20 years but many retirees may fail to fully consider that because this is an average this will include a high proportion of less affluent people with health problems who, statistics suggest will not survive anywhere near 20 years. Statistics show that individuals with substantial pension pots are far more likely to live well beyond the “average” and if you are a couple planning your retirement there is also an increased likelihood that at least one of you will
live a long time. Either way though, where health issues are not present at the time of planning, it would probably be sensible to consider a cautious approach and assume that you (and/or your spouse) will live well into your 90s at least. Once you take a potentially longer life into account, choosing a lower starting income that will rise each year may look quite appealing. Even if you think a higher starting income that will never increase would be preferable, you should still look to have a fallback position when inflation inevitably starts to eat into the buying power of that income. There is also no reason of course why you couldn’t choose to buy a level annuity with some of your fund and an escalating one with the balance. How best to take your retirement benefits is probably one of the biggest decisions that you will make in your life and it is important to be aware that annuities are only one of the options you can consider. Making a decision without taking professional advice could lead to the wrong outcome.
Karen Wynard is director at Eastwood & Partners (Financial Services) Ltd
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KIRKLEES BUSINESS NEWS
Time to stop talking shops? A LEADING online retailer says local councils should stop trying to attract more shops to town centres. Nick Glynne, managing director of Deighton-based Buy It Direct, said a new vision for town centres was needed as more people opted to buy online, insisting: “We don’t need retail premises. We need lots of ‘sheds’ for distribution close to the motorway.” Speaking at the Great Kirklees Economic Debate, held at Kirklees College’s new Chapel Hill complex, Mr Glynne said town centres needed to “shrink” by 25% and should focus on being places of entertainment. While shopping centres would continue to survive, the high street was hit by a continual turnover of retailers – and councils were pursuing the wrong strategy in trying to bring in yet more shops. He cited soaring online sales for retailers such as John Lewis and Debenhams as proof that people were internet shopping for things they would previously have bought in-store. Mr Glynne also urged employers to “stop moaning” about a lack of skills among young people and get involved with schools and colleges to design courses, claiming: “There is a massive gap in terms of what the education system turns out and what we need.” The debate, attended by more than 100 business people, was staged by Kirklees College and Huddersfield Town Enterprise Academy. Other speakers were college principal Peter McCann; Kirklees Council chief exe c u t ive A d r i a n Ly t h g o ; Ka re n
property
■ SPEAKING UP: Facilitator Sean Jarvis (right), of Huddersfield Town, with speakers (from left) Nick Glynn, of Buy It Direct; Karen Borowski, of Revell Ward; Mark Young, of John Walton Machine Tools; Kirklees College principal Peter McCann and Kirklees Council chief executive Adrian Lythgo
Borowski, of accountancy firm Revell Ward; Mark Young, sales director of Brighouse firm John Walton Machine Tools Ltd; and Colne Valley MP Jason McCartney. The facilitator was Town commercial director Sean Jarvis. Mr McCann said: “Today’s event was a great success and a great opportunity for us to invite businesses to our fantastic new building to talk about some key issues affecting us all.”
He hailed the club’s enterprise academy, which provides a means for local businesses to get together and exchange ideas, adding: “We can work even closer with employers to make sure that we’re providing the most appropriate courses and activities for our students to progress into jobs and higher education. “In return, employers get fully trained, work-ready employees.”
CALA aims to double in size BUILDING firm CALA set out plans to double in size as it taps into the boom areas of its Scottish heartland and England’s commuter belt. The Edinburgh-based business lifted underlying profits by 37% to a record £12.5m in the year to June 30 after completing the sale of 694 homes to private buyers at an average price of £335,000. Its intention to more than double in size by 2017 follows the sale of the business in March to insurer Legal & General and private equity firm Patron. Chief executive Alan Brown said the support of two blue-chip financial backers was key to the company’s growth
ambitions, adding: “This investment has already begun to bear fruit and we are now able to develop land within our existing land bank at a faster rate while simultaneously seeking to acquire additional plots in high growth areas such as the East of Scotland and the South of England. “This in turn is allowing us to take on more staff and open more sites.” The company said the seasonal slowdown in the housing market has been less prevalent this summer with the impact of the first stage of Help to Buy and continuing improvement in the UK mortgage market boosting demand. Its average weekly sales rate since July
1 has exceeded expectations and at 0.51 private reservations per site per week is running in line with its full year target despite covering the summer holiday period. The company targets the more affluent areas of the UK. Lloyds Banking Group, which took control of CALA in a debt-for-equity swap in 2009 before selling the business this year, is continuing to support the company through a £100m five-year banking facility. CALA, which returned to profit in 2011, has a land bank of more than 10,000 owned and contracted plots with a potential gross development value in June of £3.2bn.
Saving energy’s a hot topic
University of Huddersfield 3M Buckley Innovation Centre. Huddersfield Daily Examiner
COST-CONSCIOUS companies are set to get advice on cutting their energy bills. A free event on Energy and Environment – Cost Reduction and Compliance Solutions – will be held from 4pm to 7pm next Tuesday (Oct 15) at the 3M Buckley Innovation Centre (3MBIC) as part of Kirklees Business Week activities. The EEF manufacturers’ organisation has joined forces with 3MBIC to stage the event, which will look at issues including
how to source and manager energy more efficiently in order to cut costs, how to encure environmental compliance and avoid litigation costs, and where to find funding. The event will include specialist presentations, case studies and opportunities for one-to-one discussions – as well as a chance to see the facilities available at 3MBIC to support businesses. Email ahobson@eef.org.uk
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FMB seeks more help for Green Deal THE Green Deal will fail unless the Government takes “swift and decisive” action to provide householders with an incentive to make their homes more energy efficient, it is claimed. According to a survey by the Federation of Master Builders, more than 70% of member firms think a reduced rate of VAT would be a “successful” or “highly successful” way to encourage their customers to commission energy efficiency work. Almost two-thirds of FMB members think a free energy efficiency assessment would encourage more of their customers to improve the energy efficiency of their homes. FMB chief executive Brian Berry (pictured) said: “It’s time for the Government to accept the Green Deal has not been a success. “The FMB has worked hard to promote the Green Deal to small construction firms, but until our members see a clear demand for Green Deal work and a more straightforward route to the Green Deal market, they will not engage with the scheme.” He said: “The latest Government statistics show that just over 70,000 Green Deal assessments have been undertaken to date, but only 12 Green Deal Plans are ‘live’ – demonstrating that a growing number of home owners want to improve the energy efficiency of their properties, but they aren’t interested in paying for it using Green Deal finance. “A reduction in VAT would reduce the overall cost of the work and make Green Deal finance more attractive to home owners who may be deterred by a large debt against their property.” Mr Berry said: “Our latest research also supports the Government’s own findings that just having a Green Deal assessment is enough to encourage a significant number of people install energy efficiency measures in their home, regardless of how they choose to pay for it. “Government research found that from a sample of households that had a Green Deal assessment, 81% have already, are in the process of or intend to install at least one energy efficiency home improvement. “That’s why the Government should consider offering free energy efficiency assessments alongside a reduction in VAT.”
Surveyors complete key property deals CHARTERED surveyor firm Eddisons has completed two property deals in Huddersfield. The first is the sale of 16 Acre Street in Lindley. The property, which is currently let to Hussain’s Bistro on a 15-year lease generating £15,000 a year, was sold on behalf of the Joint Fixed Charge Receivers off an asking price of £165,000. Shazad Mahmood, of Eddisons, said: “There was plenty of genuine interest in this property which went to best and final offers and reflects investor confidence in well-let stock in good locations.” A ground floor retail unit at 43 Market Street in Huddersfield town centre, which was on the market for less than six weeks, is set to reopen as a café. The property, which forms part of NU House, was let on behalf of RO Properties to a local occupier off an asking rent of £17,500 per annum. Mr Mahmood said: “The unit is in an area which enjoys high footfall and this was reflected in the number of enquiries we received. “We were able to move quickly to negotiate and complete the letting on favourable terms on behalf of our client.”
KIRKLEES BUSINESS NEWS
property
Floor show impresses Kate A KIRKLEES floorcoverings firm has helped out a charity for the homeless. Heckmondwike FB has supplying carpet tiles to Cardboard Citizens, a homelessness project in East London supported by Oscar award-winning actress Kate Winslet. The firm, rated as the UK’s leading manufacturer of fibre bonded carpet and tiles, responded to a request from CRASH, the construction and property industry's homelessness charity, to provide the floorcovering for a new purpose-built workshop and rehearsal space for homeless people in Tower Hamlets. Heckmondwike FB, based at Liversedge, supplied 130sq metres of Broadrib carpet tiles for the project, which will provide a hard-wearing solution for the busy office and consultation areas in the facility. Emma Brophy, marketing and communications manager at CRASH, said: “We have used Heckmondwike carpet on a number of similar projects in the past and found it to be ideal for busy centres like this, as it is hard-wearing and low maintenance but also looks great. “Our aim is to improve the buildings used by homeless people and Heckmondwike FB's continued support is making a huge difference in helping us to achieve this goal.” The building includes a new rehearsal space, offices and confidential interview rooms where homeless people can access information, advice and guidance. Abby Chandler, marketing manager for Heckmondwike FB, said: “We are
really pleased to be supporting CRASH and the Cardboard Citizens project. “This is a very worthwhile initiative and it is great to be able to help.” Lisa Caughey of Cardboard Citizens, said: “Our new space means that for the first time we can deliver all of our services under one accessible roof. “Our ambassador Kate Winslet, whose support also enabled this significant development to take place, was really impressed when she popped in to have a look.”
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Forty year of free advice for residents A CHARITABLE trust is celebrating 40 years of providing free property advice to people in Yorkshire who cannot afford the services of a surveyor. The Chartered Surveyors Voluntary Service (CSVS) was set up in 1973 with the support of the Royal Institution of Chartered Surveyors. The service is available to those on low income who need help in surveying related matters – including help with a landlord dispute or advice on building repairs or rent/lease disputes. Initial contact is made through the Citizens Advice Bureau, which appoints a CSVS surveyor in the relevant area. Founding member George Wilson said: “Most of the referrals we get for help or advice come from people who have been left with shoddy workmanship or paid a tradesman in full who hasn’t completed the works to the required standard. These cases are always difficult for anyone to have to deal with, but the CSVS exists to help people overcome these problems.” Gerry Fitzmaurice, estates manager for Yorkshire and the Humber at Homes and Communities Agency, who has been providing free surveying services through the CSVS for 25 years, said: “Helping those who cannot afford professional fee rates, but are very worthy of support is very satisfactory. “Over the years, I’ve provided town and country planning advice and helped residents with all kinds of home repairs, as well as provided resolutions to service charge disputes on residential flats.” The CSVS has 199 active volunteers UK-wide, but said that wasn’t enough to keep-up with a rising level of demand for free property-related advice from residents, particularly in Yorkshire.
■ COVER STORY: Heckmondwike FB has helped to enrich the lives of homeless people in East London by supplying carpet tiles to Cardboard Citizens, a project supported by Oscar award-winning actress Kate Winslet (right)
Commercial
Residential, Commercial & Industrial Surveyors, Estate Agents, Auctioneers & Property Management Consultants 1 LORD STREET, HUDDERSFIELD
To Let
3 PELLON PLACE, DYSON WOOD WAY
To Let
OLD WAKEFIELD ROAD, HUDDERSFIELD
For Sale
Ground floor shop/offices
High quality office suite
Freehold Commercial Premises
123.93sqm (1,334sqft)
190sqm (2,045sqft)
DUE TO RELOCATION
Air conditioned
Huge frontage Newly refurbished Could sub-divide EPC Rating F
STEPS INDUSTRIAL EST, HONLEY
To Let
Raised access floor
Prominent main road position
Good quality open plan accommodation
Double fronted display windows with security shutters
Private car parking
Good on-street car parking
EPC Asset Rating C
LUCK LANE, HUDDERSFIELD
To Let
Industrial unit with secure yard
Garage Premises
362.04sqm (3,897sqft)
sqft)
274.78 sqm (2,957 Good headroom
Shutter loading door
2 x inspection pits
Yard space and car parking
Loading doors
EPC Rating: G
available
Off road car parking EPC Rating: D
14 St Georges Square, Huddersfield HD1 1JF
t: 01484 530361
e: commercial@bramleys1.co.uk
350.52sqm (3,773sqft)
www.bramleys.com/commercial
EPC Asset Rating C
ST JAMES ROAD, HUDDERSFIELD
To Let
Ground Floor former studio premises 323.12sqm (3,478 sqft) Basement Storage 99.62sqm (1,072 sqft) Computer cabling 1.5 miles from Huddersfield town centre EPC Rating: D
KIRKLEES BUSINESS NEWS
Jerome Austin, Gemma Gibson, Laura Brentnall and Josh Smith
Rixonway Kitchens DEWSBURY-based Rixonway Kitchens has hired two new apprentices and offered permanent jobs to two more (all pictured above). The firm, the second-largest private sector employer in Kirklees with 462 staff, intends to employ four more apprentices over the next 12 months to add to the three apprentices it has already engaged. The new apprentices are Laura Brentnall (second right), 19, who joins from Earlsheaton Technology College and Joshua Smith (right), 18, from St John Fisher Catholic High School, Leeds. They have each been given one-year apprenticeships. Ms Brentnall is working in the administration department and Mr Smith has secured a business apprenticeship that will allow him to work across a range of departments before deciding a preference. The two apprentices to be offered permanent roles at the company have each been with Rixonway for more than a year and achieved NVQ qualifications. Gemma Gibson (second left), 20, began as an administration apprentice and has now been taken on as a contract co-ordinator, with duties including liaising with customers and the internal design team. Jerome Austin (left), 19, joined the company as a transport office apprentice and is now a purchasing planning assistant responsible for placing orders for bought-in materials.
Lunchtime network THEY’VE had breakfast – now it’s time for lunch. A business networking group is launching the first of its lunchtime meetings from noon to 2pm on Thursday at Canalside, Leeds Road. The 4Networking group already stages breakfast meetings in the town. The lunchtime meetings will be held fortnightly. At the inaugural event, Terry Cooper, chairman and development director of 4Networking, will talk to business leaders on how to improve their sales. Mr Cooper said: “Lunchtime groups are the fastest-growing part of our network right now as they are proving popular with people who just can’t get to breakfast meetings.” Email helen@theimplementer.co.uk
HD8 makes its mark A NETWORKING group for organisations in the H8 postcode area is set for its next meeting. The H8 Network event will be held from 5pm to 7pm next Tuesday at 315 Bar and Restaurant in Lepton and is listed as one of the activities being staged as part of Kirklees Business Week, which begins next Monday. The entrance fee of £10 for tickets bought in advance or £15 on the door entitles attendees to networking and a pie and peas meal. As well as informal networking, there will be a speed networking session to enable those attending to talk to almost everyone in the room. Go to http://kirkleesbusinessweek.co.uk/events/event/hd8
Movers and shakers
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Zak replies to conference call
DEWSBURY-born entrepreneur Zak Patel will feature on a panel question-and-answer session at the Kirklees Business Conference next week. Dubbed “The Kirklees Masterplan”, the Q&A session will bring together key business leaders to create a live forum where Kirklees businesses can debate what the future holds for the district from a business perspective – based on what has happened both positive and negative. Zak, 41, is billed as a “natural entrepreneur and opportunist” and heads the UK’s most successful mobile franchise, turning over in excess of £20m. He oversees 16 O2 stores and even has a call centre to service his database of customers. Further growth is on the cards and Zak admits it is this ever-changing nature of the mobile industry that keeps him hungry for more. Zak began alongside his brother and sister and launched what became a network of 12 convenience stores and newsagents aged just 23. This has now grown into a computer exchange franchise employing almost 120 people. He got into the mobile industry when his convenience stores began selling pre-pay “top up” cards and through a promotion, its first handset. This handset sold immediately and Zak realised that he would have to sell a massive amount of chocolate bars to make the same profit. This led to a string of independent mobile shops across Yorkshire, which in turn led to Zak gaining a tip off that O2 was looking to roll out the franchise
■ SUCCESS STORY: Zak Patel. who will join the Q&A panel session at the Kirklees Business Conference
model they successfully used in Germany into the UK. After a long application process, Zak was named the UK’s first O2 franchise owner. This was the turning point of his business and he opened in Leeds Merrion Centre under the name of Talk Direct Leeds Ltd. Rather than sticking with just one store, Zak saw a massively scalable business model that could replicate the success he had with the newsagents. He says: ““The key to success is to do something, perfect it and make sure that every single part of the business is running as smooth as possible and then replicate it.”
Within the next 18 months, Talk Direct expanded by opening three more O2 stores in Dewsbury, Leeds Crossgates and Bridlington. In 2012 Talk Direct grew by acquiring four more O2 Franchise stores in South Yorkshire. Within a matter of weeks, the stores under Zak’s ownership, guidance, sales philosophy and strategy had a whopping three-fold increase in turnover. Zak’s hard work ethic and team-building skills show throughout his company with all his stores performing above and beyond O2’s expectations. Zak’s stores are recognised within O2 to have the best post-pay conversion in the O2 retail estate. “The pace of growth in the industry is frightening,” he says. “What are we going to be doing next with these mobile phones? Very soon I think they’ll be controlling the whole of our lives. We’ll be paying our bills with it, switching on the electricity, starting the car up with it –.everything – and that’s the way the industry is going.” Zak puts a large part of his success down to the fact that he spends most of his time on the shop floor, not in the back office. “You have to work extremely hard and lead by example,” he says. “Your team is going to look up to you and that is the foundation of a successful business.” Kirklees Business Conference takes place at the John Smith’s Stadium on Wednesday, October 16. All delegate places are free and can be booked at www.kirkleesbusinessconference.co.uk
Podium finish for agency A MARKETING agency in Kirklees has taken pole position with F1 in Schools. Fantastic Media has been appointed to develop online communication platforms for the international multi-disciplinary educational initiative for students. F1 in Schools chose the award-winning agency to increase its global profile and ensure its web activity is fully integrated. The social enterprise, which is based in London and has a purpose-built facility in Brighouse, was established in 2000 to provide an educational experience through the appeal of Formula One – and help change pupils’ perceptions of science, technology, engineering and maths. The F1 in Schools Technology Challenge sees teams of young people aged nine to 19 design and manufacture scale model racing cars – with the ultimate aim of competing regionally, nationally and internationally for the Bernie Ecclestone F1 in Schools World Champions trophy. More than 22,000 schools in 40 countries take part in the project. Fantastic Media’s role is to help raise the profile of the challenge internationally and deliver a new UK website, which has now gone live. It will also launch a global F1 in Schools website which can be accessed by all participating countries to register for the programme.
■ FAST TRACK: Beth Saville (left), and Richard Jones (right), of Fantastic Media, with Katie Oxley and Andrew Denford, of F1 in Schools Richard Jones, operations director at Fantastic Media, said: “The F1 in Schools Technology Challenge is an incredibly exciting project that engages young people into not just Formula One but into engineering and covers subjects right across the curriculum. “We are thrilled to be working
alongside the company to increase its global reach and get even more school children involved in the challenge.” Andrew Denford, founder and chairman of F1 in Schools, said: “We’re delighted to have Fantastic on board and have high hopes for their impact on our work.”