FTSE 100
DAVID BROADHEAD Management matters
-22.35 5567.96
Full inter view - Page 3
KAREN WYNARD Public sector pensions Column - Page 4
An EXAMINER publication
KIRKLEES BUSINESS NEWS The business NEWSpaper for Kirklees
Confidence key to making progress
■ SUPPORT: Heather Jackson, founder of the Women’s Business Forum
WOMEN are failing to push themselves forward for top roles in the boardrooms of Britain, according to a shock survey. Lack of confidence – rather than family commitments – is the main stumbling block preventing women from progressing in the workplace, according to the survey. The survey of more than 500 women from the corporate world showed that shortage of confidence was cited by two-thirds as the most important factor in holding them back. That is in stark contrast to the widely-held view that raising children is the principal barrier to career succession. Attendees at the Women’s Business Forum, which is organised by Holmfirth-based businesswoman Heather Jackson, were asked to rate five attributes that could potentially hold women back in the workplace.
While confidence is seen as a key issue, nearly two-thirds of respondents stated capability as the least significant issue. The second most significant factor restricting women’s progression is a shortage of support. A third of those questioned claimed this was holding them back in the corporate world – closely followed by a lack of contacts. The findings are consistent with latest pay statistics between men and women showing that while the pay gap has narrowed slightly, a significant inconsistency still exists. Heather said: “These figures clearly demonstrate that women feel a lack of confidence, plus, to a lesser extent support and contacts are the main reasons they often fall behind their male counterparts on the corporate ladder. “A lack of confidence for women is perfectly demonstrated in their
inability to often negotiate a remuneration package which reflects their true worth. “Even though the gender gap has fallen below 10% for the first time, the disparity is still significant as the latest figures have shown. “It is absolutely vital that maximising the untapped capability of the female workforce is achieved by offering them the support they need through effective networking and mentoring.” Earlier this year, the Women’s Business Forum held its annual conference, where an international line-up of speakers addressed 600 business people. A clear message from the conference was the important role in economic growth this issue has to play. The organisation works with over 4,000 women across the UK to develop female board level talent.
Rise in prices fuels more cost-cutting by firms INFLATION is piling on the pressure for Kirklees companies, a survey has revealed. Figures from Royal Bank of Scotland show that one in four companies has seen fuel costs soar by more than 10% in the past 12 months – twice the current Consumer Price Index inflation rate. More than one in four has also seen the price of raw materials exceed the current 5% CPI rate of inflation.
The survey found that increased costs have made firms more determined to make cuts. Achieving savings was seen as the most important commercial priority for 2012 with two-thirds of businesses polled saying they were looking to cut back. But only 14% were looking to cut back on staff numbers. Peter Russell, head of manufacturing sector for RBS Corporate & Insti-
tutional Banking, said: “There is little or no respite from increased energy costs for many medium-sized businesses. “These are core costs which have a direct impact on price competitiveness. “Whilst commodity prices have eased back of late, businesses remain focused on how to tackle mounting energy costs. “In these difficult times, it is proving
much harder to pass on these costs to their customers, leaving profit margins under significant pressure.” The survey of more than 200 senior executives found other costs – often seen as non-core – had fallen in real terms. Research and development costs have increased by an average of just 2.4%, advertising and marketing by 2.8% and legal costs by 3.3% – all well below the headline rate of inflation.
INSIDE Housing milestone A HOUSING association working in Kirklees has marked the completion of its 100th new affordable home. Jephson Homes Housing Association, which has its northern office at Elland, recognised the milestone with the handover of three properties at Moorbrook Drive, Holmfirth.
● Full story - Page 6
The most trusted news brand in the business
examiner.co.uk
2 0 , D e c e m b e r, 2 0 1 1
Training accolade A CLECKHEATON firm has won an award for staff training. Bluefin Insurance Services in Cleckheaton took the Training Initiative of the Year category at the Insurance Times Awards 2011 in London.
● Full story - Page 8
Solicitors for business inYorkshire www.chadwicklawrence.co.uk Huddersfield | Wakefield | Halifax | Leeds
KIRKLEES BUSINESS NEWS
national
Page 2
Chancellor backs shake-up of banks
■ BENEFIT: George Osborne said bank reforms were vital
BANKS will be required to “ring-fence” their retail operations from risk-taking arms and to hold increased levels of capital to protect the UK from a repeat of the crash of 2008, Chancellor George Osborne has announced. Accepting key recommendations of the Vickers Report into banking reform, Mr Osborne said the changes will cost the industry £3.5bn to £8bn a year and lead to a cut in GDP of £0.8bn to £1.8bn. But he told MPs the costs would be “far outweighed” by the benefit to the economy of avoiding future financial crises, which he said would reach £9.5bn a year on “modest” assumptions. Under the reforms, the deposits and overdrafts of ordinary consumers and small businesses will be handled only by “ring-fenced” banks, which will be barred from getting involved in risky investment activities.
The retail banks will have their own boards and be legally and operationally independent from the rest of their corporate groups, with limits on the amounts they can lend to the rest of the group. Larger retail banks will be required to hold equity capital of at least 10% – some 3% higher than the level proposed by the international Basel III agreement – to act as a “cushion” to help them withstand losses. There will be a minimum requirement for the loss-absorbing capacity of big banks of at least 17%. And there will be changes by September, 2013, to enable individuals and small businesses to switch banks within seven days – with all direct debit and credit arrangements going with them for no extra cost. Mr Osborne told the Commons that the largely state-owned RBS bank will
Yell agrees deal with its lenders YELLOW Pages owner Yell has agreed a new deal with lenders on its £2.6bn debt mountain. The group plans to reinvent itself online as its traditional print directories business becomes increasingly obsolete. But the company was in danger of breaching its banking covenants in coming years. Shares rose by almost 10% after it said it has agreed a deal with “an overwhelming majority of lenders” that will give it more headroom, helping to secure its future and buying time to implement its plans. The agreement with lenders was also seen as an approval of its new
strategy to grow online, which includes developing an “emarketplace” designed to allow consumers to find its customers more easily. Its plans also involve selling services to local businesses registered on its site, including web design, loyalty schemes, marketing initiatives and computer software to help them do their accounting. Chief financial officer Tony Bates said: “We are pleased that with this decision lenders have strongly endorsed our new strategy and have given the group additional freedom to carry out its transformation programme.”
Stopping the music
make further “significant” reductions in its investment activities, scaling back riskier activities to become “a stronger, safer bank, able to maintain lending to businesses and consumers”. Mr Osborne promised legislation by 2015 to put the changes into law – with banks required to erect ring-fences “as soon as practically possible” after this date and to implement the changes relating to loss-absorbency by the end of 2019. In a document also signed by Business Secretary Vince Cable, Mr Osborne said the changes amounted to “the most far-reaching reforms of British banking in our modern history”. The Chancellor told MPs: “Our objective is to make sure what happened in Britain never happens again, that taxpayers are protected and that customers get a better service.”
Labour costs dent Ocado THERE was further misery for Ocado’s share price – after the online grocer admitted it needed additional labour to cope with the Christmas rush. Shares in Ocado closed 17% lower, off 12p at 59.2p – more than 60% lower than the flotation value in July, 2010 – after it said production problems at its distribution centre in Hatfield, Hertfordshire, would hit full-year profits. The group was forced to hire more staff to maintain deliveries while work to boost capacity at the centre was completed. But it reassured that additional
labour should be phased out. Ocado said underlying earnings would now be between £27.5m and £28.5m for the year to November, which is below City forecasts and previous expectations. However, Ocado reported a stronger trading performance after a 16.7% increase in gross sales to £643m and high service levels, with 98.3% of items delivered exactly as ordered and 92.3% of orders delivered on time or early. The City had forecast full-year earnings of £34m compared to £22.1m last year. But analysts said the “one-off ” costs will fall away next year.
STRUGGLING retailer HMV said it was looking to sell its live music division as it bids to bolster its finances after it nearly doubled half-year losses. The group, which recently sold bookseller Waterstone’s, said it was placing HMV Live, which runs 13 venues and a number of festivals including Lovebox in London and Global Gathering near Stratford-upon-Avon, under strategic review which may lead to its sale. Elsewhere, HMV, which owns 252 stores in the UK, including one at Kingsgate in Huddersfield, said its shift in focus to technology products – which has seen 144 stores refitted – was paying off with like-for-like sales of headphones, speakerdocks and tablet computers up by 144%. But the company revealed a bottom-line pre-tax loss of £45.7m in the 26 weeks to October 29, compared to £27.4m last year. Like-for-like retail sales fell by 13.2% in the seven weeks to December 17. Shares in HMV fell by nearly 10% after the results were published. Looking ahead, the group – which has already announced he closure of 60 stores – warned the economic and trading environment created “material uncertainties” which may cast doubt over its future, while directors continued to engage in talks with its lenders.
SHARE PRICES NORTH AMERICAN American Express £29.88 -0.30 Gannett 820.19 -11.59 Hess Corp £34.51 -0.45 Microsoft 1660.01 -13.84 Motors Liquidation 48.28 Wal-Mart Stores £37.29 -0.22 AEROSPACE & DEFENCE Avon Rbbr 305 +10 BAE Systems 2695/8 -23/4 Rolls-Royce 715 -9 AIM Brady Plc 76 +11/2 Dawson Intl 13/8 Man Brnze 32 AUTOMOBILES & PARTS GKN 1701/4 -13/4 BANKS Barclays 166 -51/2 HSBC 4781/4 -21/2 1 Lloyds Banking Gp 23 /2 -1 Ryl Scotland 193/8 -5/8 Stan Chart 13511/2 -12 BEVERAGES Diageo 1354 +1 SABMiller £213/4 +1/4 CHEMICALS Croda 1747 +11 Elementis 98 1291/4 -3/4 Johnsn Mat 1761 -7 CONSTRUCTION & MATERIALS Balfour Beatty 2481/2 +31/2 Costain 1851/2 -91/4 ELECTRICITY
Drax Gp 536 +9 Intl Power 321 +11/4 SSE 1245 -9 ELECTRONIC & ELECTRICAL EQUIPMENT Laird 144 -3 EQUITY INVESTMENT INSTRUMENTS Alliance Trust 331 -3 FIXED LINE TELECOM SERVICES BT Grp 187 -27/8 Cable & Wireless 381/4 -1/8 Comm 3 Cable & Wireless 15 /4 -1/2 Wwide 3 Colt Group 89 /4 -21/8 KCOM 67 -1 Talktalk Telecom 1353/4 FOOD & DRUG RETAILERS Morrison W 3161/2 +3/4 Sainsbury 2881/4 +1/2 Tesco 3837/8 +1 FOOD PRODUCERS AB Food 1100 +13 Tate Lyle 678 +61/2 Unilever £21 +1/4 GAS, WATER & MULTIUTILITIES Centrica 2827/8 -7/8 National Grid 6071/2 -6 Pennon Grp 693 -1/2 Severn 1465 United Utils 590 -2 GENERAL FINANCIAL 3i Group 1667/8 -21/4 ICAP 3273/4 -7 London StockExch 777 +1 Man Group 1233/4 -33/4
Provident Financial 9371/2 +20 Schroders 1250 -21 Schroders NV 1015 -10 GENERAL INDUSTRIALS Cooksn Grp 4753/8 +21/8 REXAM 3381/2 -21/4 Smiths Grp 8811/2 -81/2 GENERAL RETAILERS Ashley L 191/2 +3/4 Carphone Whse 300 -3 Dixons Retail 93/4 -1/4 Home Retail 80 -11/8 Inchcape 285 +3/8 Kingfisher 2391/4 +3/4 5 M&S 307 /8 -1/8 Mothercare 1583/4 +3/8 Next £261/8 +1/8 WH Smith 5041/2 -3 HEALTH CARE EQUIPMENT & SERVICES Smith Nph 576 +1 HOUSEHOLD GOODS Aga Rangemaster 69 Barrat Dev 89 -35/8 Persimmon 4461/4 -137/8 Reckitt Benckiser £317/8 +3/8 Taylor Wimpey 351/4 -1/4 INDUSTRIAL ENGINEERING Charter 927 -5 IMI 714 -101/2 INDUSTRIAL METALS Ferrexpo 2543/8 -21/4 INDUSTRIAL TRANSPORTATION BBA Aviation 177 -23/4 LIFE INSURANCE
2847/8 981/4 1253/4 608 2447/8 1953/4 MEDIA BSkyB 709 D Mail Tst 378 ITV 61 Johnston Press 51/8 Pearson 1145 Reed Elsevier 4993/4 STV Group 851/4 Trinity Mirror 483/4 Utd Business 448 UTV 96 WPP 639 Yell Group 53/4 MINING Anglo American £223/4 Antofagasta 1150 BHP Billiton 18161/2 Eurasian Natural 608 Res Fresnillo 1514 Kazakhmys 851 Lonmin 941 Rio Tinto £301/4 VEDANTA 1046 RESOURCES Xstrata 9563/4 MOBILE TELECOM SERVICES Inmarsat 3973/4 Vodafone Group 1741/2 NONLIFE INSURANCE Admiral Grp 800 Aviva Lgl & Gen Old Mutual Prudential Resolution Standard Life
-5/8 -13/8 -1/4 -11/2 -11/8 -1 -7 -7/8 -7/8 +1/8 +3 -43/4 -13/4 +3/4 -131/4 +1 -4
1
- /4 -22 -27 -14 -39 -23 -51/2 -3/8 -39 -131/4 +7/8
-2
Local shares Carclo Marshalls National Grid Weir Gp
3003/4 88 6071/2 1918
+53/4 +11/2 -6 -23
FTSE closed at
5364.99 Down 22.35 RSA Insurance Gp 997/8 +1/4 OIL & GAS PRODUCERS BG 1314 -61/2 BP 4375/8 -81/8 1 Cairn Energy 259 /8 -31/4 Royal Dutch Shell A £225/8 -1/8 3 Royal Dutch Shell B £23 /8 -1/8 Total £305/8 -1/4 Tullow Oil 1299 -30 OIL EQUIPMENT & SERVICES AMEC 865 -121/2 Petrofac 1409 -11 1 Wood Gp(J) 620 /2 -11 PERSONAL GOODS Burberry Gp 1151 +13 PHARMACEUTICALS & BIOTECHNOLOGY Astrazeneca £291/2 +3/8 GlaxoSmithK XD 7
£211/2 +3/8 REAL ESTATE Brit Land 4501/4 -43/8 Captl Shop Cent 2917/8 +3/4 1 Hamrsn 345 /4 -41/4 Land Secs 612 -11/2 SEGRO 195 -11/4 SOFTWARE ETC SERVICES Invensys 1981/2 +11/2 Logica 59 -3/4 Misys 2231/4 -21/4 5 Sage Group 284 /8 +11/8 SUPPORT SERVICES Berendsen 4261/8 +21/8 Bunzl 843 -8 1 Capita 619 /2 -41/2 1 De La Rue 905 /2 +151/2 Electrocomp 1873/4 -13/8 Experian 835 +51/2 1 G4S 257 /8 -3/4 Hays 607/8 -1/4 Homeserve 2837/8 -33/8 Menzies J 525 +19 Rentokil 593/8 +1/4 Smiths News 771/2 -1/2 Wolseley 1935 -13 IT HARDWARE ARM Hldgs 5551/2 +5 Psion 471/2 -13/4 Spirent Comms 1061/2 -1/4 TOBACCO Br Am Tob £293/4 +1/8 Imperial Tobacco £231/2 +1/4 LEISURE & HOTELS Bwin.Party Digital 1313/8 -5/8 Shire
Carnival Compass Grp easyJet Enterprise Inns FirstGroup Go-Ahead Gp Greene King Intercontl Htls Intl Cons Airlines Gp Ladbrokes Mitchells & Butlers Natl Express Rank Org Stagecoach Group TUI Travel Whitbread
£213/8 5861/2 3815/8 311/4 3233/4 1317 4661/4 1082 1415/8
-1/8 +3 +2 +3/4 +1/4 -23 +15/8 +15 -13/8
1231/8 2331/4 2161/4 1251/4 2641/2 1535/8 1529
+23/8 +33/4 +7/8 +11/4 -11/4 -3/4 -9
FTSE 100
INDEX 5364.99
-22.35
FTSE 250
INDEX 9748.44
-54.73
TOURIST RATES Tourists going abroad can expect the following rates for sterling: Australia...................... 1.48 dollars Bangladesh................. 112.55 taka Brazil.............................. 2.56 reals Canada....................... 1.53 dollars China ............................. 8.78 yuan Czech Republic ...... 27.67 korunas Denmark....................... 8.42 krone Euro............................... 1.14 euro Hong Kong................ 11.45 dollars Hungary................... 325.05 forints India.......................... 72.33 rupees Japan........................... 114.89 yen Mexico ....................... 19.14 pesos New Zealand .............. 1.90 dollars Norway ......................... 8.83 krone Pakistan.................. 130.97 rupees Philippines ................. 58.36 pesos South Africa................. 12.16 rand South Korea.............. 1586.00 won Sri Lanka ................ 166.52 rupees Sweden....................... 10.27 krona Switzerland.................. 1.38 francs Taiwan ...................... 41.11 dollars Turkey....................... 2.75 new lira USA ............................ 1.48 dollars
KIRKLEES BUSINESS NEWS David Broadhead is all for a return to Victorian values – at least when it comes to revitalising Britain’s entrepreneurial spirit. His Christmas present wish list includes steeplejack Fred Dibnah’s book Victorian Heroes. Says David: “The Brunels and the Telfords had belief, ambition and endeavour to built these fantastic railways, bridges and ships. “We live in a ‘can’t do’ society where we seem to look for reasons not to do something. We have ‘me too’ businesses that simply copy others instead of trying to be innovative. Businesses need to be looking ahead, looking over the horizon instead of staring at their bootlaces.” By accident or design, David seems to have been at the cutting edge throughout his career. He grew up in Dalton and after passing his 11-plus went to King James Grammar School. “I was always fascinated by cars and motorbikes and engines,” he says. “I wanted to be involved in designing racing cars, but I never achieved that particular ambition.” Instead, David took a degree in design engineering at Huddersfield Polytechnic. Sponsored by David Brown Gears, his final year project was the design a twin layshaft waggon gearbox – only for the company to pull out of that product sector. It is the type of gearbox manufacturers like Volkswagen fit into their cars. At David Brown, he got involved in gearbox design and development for the British Army’s Challenger 2 tank. Says David: “It was immensely satisfying – in my early to mid-20s – to be designing these big test facilities and helping to get a 60-ton battle working!” Undertaking management training during those early years at the company introduced David to “people, rather than bits of metal”. He says: “I learned about how things interact, how to make things work and how to think ahead.” David was then promoted to lead a project to design and build transmissions for rocket launch vehicles. The Lockwood-based company won orders worth many millions of pounds for the transmission units in the UK and Europe. “It was wonderful to build a team, developing people, see them flourish and achieve things they thought they could not achieve,” says David. However, he soon experienced the “downside” of management when the 1990s recession struck. After running David Brown’s fabrications business at Penistone, he was given the unhappy task of closing a number of the company’s operations and cutting jobs. “It was very challenging,” he says. “My experience had been about improving and developing – building things. It made me thing about what’s important
profile
Page 3
Lead from the front David left the company in 1993 to set up his own consultancy, helping firms find more efficient and effective ways to work through better management. He also began lecturing part-time at Huddersfield University’s business school, working with mature students on their MBA qualifications. He set up Partners in Management in 1999, initially delivering the university’s courses on a franchise basis across the UK and in countries such as Poland and Greece as well as running session at a training facility in Armitage Bridge. He used “action learning” techniques – working with groups of six or seven to talk through problems and combine academic and practical ideas to help their organisations improve. Says David: “My philosophy is that I don’t believe I can teach anyone anything – but they can learn a lot from me! It is about facilitating learning through my experiences.” David worked with public and private sector
■ VALUES: David Broadhead says Britain needs ambition and belief
organisations – recognising that the same management-related issues apply in both. David also began developing a new concept – bringing together a group of senior managers and leaders from a variety of organisations to meet and debate “the big issues” for the UK economy. Its quarterly deliberations have proved remarkably prescient. Back in 2009, for instance, forum members were already discounting hopes of an early recovery from the credit crunch. Earlier this year, they warned that UK manufacturing would struggle to exploit any opportunities provided by world economic growth and advantageous exchange rates – while arguing that the public sector had not yet seen the cuts necessary to balance the economy. They also warned against over-ambitious economic growth projections and the need to find new sources of finance for firms to invest. Partly as a result of the forum’s early forecasts, Partners in Management also developed its RIDFEAR self-coaching model to help people facing challenges such as redundancy to develop self-belief, find the skills and qualifications needed to thrive in an uncertain business environment. “We realised that the country was heading for a so-called decade of austerity,” said David. “We could see that coming in 2008 with the combination of debt and the inflationary pressures caused by rising demand from emerging
David Broadhead Role: Owner-manager Age: 54 Family: Son Alistair, 20, and daughter Helen, 13 Holidays: South of France Car: Jaguar X-Type First job: Petrol pump attendant at Almondbury garage Best thing about job: Seeing people develop and go on to have success Worst thing about job: Necessary administration Business tip: Believe in yourself and never give up
“We knew we were faced with difficult times and that we would have to develop better leadership and management skills – and that we would have to be innovative.” Says David: “A lot of traditional management education focuses on knowledge – teaching and testing. But a key aspect of being a manager is personal development, knowing yourself and others and growing and developing as an individual. “One of the things we have designed into our programmes is to get people to think about themselves, their abilities, their achievements, their attitudes and their experiences.”
David, an ambassador for the Chartered Management Institute, is looking forward to 2012. His goals for next year also hark back to its early ambitions surrounding fast cars!. “I spend a lot of time reading and writing on my area of expertise and I exercise by going to the gym,” he says. “But I also have a couple of Triumph Spitfires and several motorbikes in various states of disrepair. “It is the 50th anniversary of the Triumph Spitfire next year and I want at least one of them to be in working order for that!”
Partners in Management Work: Accredited management development Site: Media Centre, Huddersfield Phone: 07957 325336 Email: david@ partnersinmanagement,co,uk Web: www.partners inmanagement. co.uk
HENRYK ZIENTEK
On the board with Faced with an unexpected tax bill? New rules now enable HMRC to collect up to £3,000 of tax using your PAYE tax code. HMRC have previously only been allowed to adjust PAYE tax codes to accommodate underpayments of less than £2,000. If you wish to take advantage a request will need to be made to HMRC in advance of 31 December 2011 for 2010/11 returns – so hurry!! This is potentially good news for anyone who has a tax liability of less than £3,000 – not only does it give an opportunity to postpone paying tax to a future period, but the liability is repaid on a monthly basis interest free.
Lesley Sutton Tax Director 01484 538 351
theboard@revellward.co.uk Twitter@RevellWard
www.revellward.co.uk
local
Page 4
Companies get chance to shine KIRKLEES businesses offering student or graduate internships have a few more weeks to enter the National Council for Work Experience Awards 2012. The deadline to enter the awards has been extended to Friday, January 6, 2012, to take into account the busy festive period. Organisations from all sectors can enter one or more of the 12 categories available at www.work-experience.org/awards. Entry is simple, with just four questions covering, why a work experience scheme is outstanding, its goals and objectives, and support and assessment. Mike Hill, chief executive of the Higher Education Careers Services Unit, which operates the NCWE, said: “We’re delighted to announce Dr Paul Redmond as the main speaker at this year’s awards ceremony. “As one of the country’s leading experts on the graduate labour market, Paul is sure to prove popular with the crowd of around 200 people who are dedicated to helping raise internship standards. “All shortlisted companies are given a free place at our awards, which are always a glittering affair and offer an excellent opportunity to network.” Winners will be announced at an awards ceremony in London on Tuesday, March 20, 2012.
LOOKING TO BUY OR SELL A BUSINESS? Use our knowledge and experience to guide you through the process: ➢
Valuation advice
➢
Negotiating the deal
➢
Raising finance
➢
Due diligence
➢
Tax mitigation ideas
➢
Getting the job done Our independent and partner-driven approach ensures clients receive advice they can rely on and trust. To discuss your plans in confidence please conatct David Butterworth
W&S
Wheawill & Sudworth Experience you can count on
P: 01484 423691
E:david.butterworth@wheawills.co.uk W: www.wheawills.co.uk
Independent financial planning services for companies and individuals Eastwood & Partners (Financial Services) Ltd
Pennine House, Lowfields Close, Lowfields Business Park, Elland HX5 9DA 01422 377737 www.eastwoodfinancial.co.uk Authorised and Regulated by the Financial Services Authority
KIRKLEES BUSIN
Public sector pension plan S you may have seen on A the television and read in the newspapers, public sector
pension schemes are currently the subject of calls for radical reform, largely because of the increasing cost to the public purse of funding these schemes. There are seven main schemes currently being reviewed: the Armed forces, Civil service, Fire service, Local government, NHS, Police and Teachers schemes. These schemes vary widely in terms of the contribution rates and benefits payable, although the most common feature that they all share is the fact that they all currently offer an annual pension benefit linked to the member’s number of year’s service and final salary at retirement. All these schemes have also been subject to some significant changes already in recent years, most notably: ● An increase in retirement ages (in some cases, like the Police, to tie in with the new minimum age of 55, and in others to move the normal pension age from 60 to 65) ● Changes to the schemes benefit structure (such as the rate at which the pension is accrued on a year by year basis) ● Some schemes introducing different contribution rates depending on how much the member earns. Analysis by the Independent Public Service Pensions Commission, however, has found that the current final salary structure of these schemes unfairly favours higher earners, even where there are tiered contribution rates in place. This is because higher earners are likely to benefit from increasing income as they progress through their careers, whereas lower earners are much less likely to experience such increases. So what are the proposed changes? The Coalition Government set up the Independent Public Sector Pensions Commission to look at reforms to public sector pensions that would be ‘’fair but affordable’’ and the Commission’s report, published in March, 2011, contained 27 recommendations, with the key ones being: ● For future service, all public sector schemes should move to a “career average revalued earnings” (CARE) basis as soon as possible, with revaluation in line with average earnings. The net effect of moving from a “final salary” to a “career average revalued earnings” basis is likely to mean a lower figure (for most people) on which
FINANCIAL FOCUS Karen Wynard
future pension entitlement will be calculated ● With exceptions for certain schemes, the Scheme’s Normal Retirement Age (NRA) should be linked to the State Pension Age (which will rise to 66 in 2020) ● Contribution rates should be on a tiered basis, increasing with earnings – effectively meaning that contributions overall will be at a higher level than they are currently (the Government has estimated an overall average increase of 3.2% pa) ● There should be a cost ceiling on the tax payer’s contribution to public sector pensions, with changes to the scheme needing to b e m a d e i f t h at c e i l i n g i s breached. The Government is now proposing that approximately one million public sector workers who are due to retire in the 10 years from April 1, 2012, will no longer have to move to a CARE basis for their future accrual or have a later NRA – although they will still have to contribute more if they earn over £15,000 a year and they will remain impacted by the change in the inflation measure used for increasing pensions in payment from the (higher) retail price index to the (lower) consumer price index. In addition, it has been proposed that contribution increases will not be spread uniformly, with those earning under £15,000 a year, or serving in the armed forces, seeing no increase at-all and those earning between £15,000 and £18,000 having any increase capped at 1.5% a year. The bad news for the highest earners though is that they could see a 6% increase by 2015, and if this applies to the NHS scheme, some members could end up having to pay a 14.5% contribution each year. What have been the reactions to the proposals? It is perhaps unsurprising that there has been considerable opposition to the changes, given that the ‘triple whammy’ blow will involve higher contribution rates, later retirement ages and lower benefits especially now increases to public sector pensions in payment will use
the (lower) CPI, rather than the RPI, as the inflation measure. And, the fact that these changes are being proposed to happen all at once – rather than staggered over time – probably doesn’t help matters much either. It mustn’t be forgotten though that even if the changes are implemented as proposed, public sector schemes will remain among the most generous available and will still represent very good value for member contributions. So what are the implications if you are a member of one of the schemes affected? If you are a higher earner faced with significantly increased contributions to pay, you may be considering whether you should opt out of the scheme. However, given the inflation linked guaranteed benefits you would be giving up and how much it would cost to replace them if contributions were made to a money purchase scheme instead, any decision to opt-out of the scheme will almost certainly result in you losing out at retirement. Given that the difference between a “career average” salary pension and a “final salary” pension can be significant for higher earners, you may wish to seek advice regarding how best to make up a possible shortfall in your expected pension at retirement. For example, a scheme member averaging salary increases of 2% a year above inflation with 40 years’ service in a career average scheme could expect to receive around 30% less as a pension than on a “final salary” basis. It is impossible to quantify in advance the precise impact on any individual cases, but subject to affordability there will probably be a strong case for making additional pension contributions to help reduce any potential shortfall. If you can afford to make them, the merits of paying into an ‘in-house’ additional voluntary contribution scheme would need to be compared against the merits of paying into an individual personal pension or stakeholder instead – an area that we will be more than happy to provide guidance on.
Karen Wynard is head of corporate services at Eastwood & Partners (Financial Services) Ltd
■ CASH CALL: Stephen Hall, tax partner for Deloitte in West Yorkshire
Search for cash may get easier
MUCH-NEEDED new money could soon become available to start-up and small businesses in Kirklees, has emerged. Business advice firm Deloitte is urging ambitious small companie and start-ups struggling to get finance from traditional sources to look to private investors for funding. Deloitte said the Seed Enterprise Investment Scheme, which is included in the Government’s draf Finance Bill 2012, will make it mor attractive for business angels and investors to support early-stage small firms. SEIS will provide income tax relief of 50% of the investment to individuals investing up to £100,000 in qualifying companies and is expected to prove attractive to business angels. In the first year, there will also be capital gains tax relief to kick-star the scheme, allowing individuals with gains, to exempt those gains from tax by reinvesting in a qualifying company. This could potentially offer tax relief up to 78%. SEIS will be available from April 6 2012, and will run alongside the existing Enterprise Investment Scheme. It is expected to cost the treasury £50m. Tax partner Stephen Hall said: “Since the credit crunch we’ve seen more business angels comin forward and providing finance to companies who haven’t been able to get funding through traditional routes. “A lot of successful entrepreneurs are happy to invest – they’ve taken risks in the past to get to where they are today and they’re happy t do so again for the right opportunity.” But he said: “With increased competition for their money, Ange are getting more demanding so it important for entrepreneurs to demonstrate a professional approach to their pitches.”
NESS NEWS
local
Page 5 Deirdre gets fired up over business move
ISA provide a saving grace TAX TALK Colin Barratt
ITH interest rates at an all time W low and inflation remaining at around 5% it is difficult for savers to
e
sh r!
d ps , it
es
to
aft re d
ef
s ve
rt
s
get any meaningful return on their savings, but the use of tax-efficient investment can help. Individual Savings Accounts (ISAs) have been around for some time and provide tax-free income and growth while within this investment. There are two types of ISA: cash ISAs and stocks and shares ISAs. In each tax year you can put money into one of each. Cash ISAs may be suitable for short-term savings, so that you can get at your money easily. Stocks and shares ISAs may be appropriate if you can afford to leave your money untouched for longer than, say, five years. However, your investment may go down in value as well as up and there are no guarantees that you will make a profit. To open an ISA you have to be aged 16 or over if the ISA is a cash ISA or 18 or over if the ISA is a stocks and shares ISA. You also have to be resident and ordinarily resident in the UK for tax purposes. For the current tax year a saver can invest a maximum of £10,680 into ISAs. The subscription limits will increase to £11,280 from April 6, 2012. For cash only ISA’s the limits are one half or £5,340 for the current year rising to £5,640 from April 6, 2012. Recently, the government has introduced a Junior ISA.which is available to all children aged under 18 who did not qualify for a Child Trust Fund. They offer a similar investment portfolio and tax benefits as the adult ISA although the annual contributions are restricted to £3,600. New Child Trust Funds ceased to be available for children born on or after January 1, 2011, although existing accounts
remain in place and can be added to by parents and family members. The maximum annual contribution has been increased to £3,600 to keep in line with the Junior ISA. No further Government contributions will be made to any account For both these investments, no withdrawals can be made until the child reaches 18 but they offer the possibility of parents, grandparents, other family members and friends saving towards the child’s future educational costs. Although not currently on sale NS&I Index-linked Savings Certificates are an excellent tax-free vehicle as your investment will grow in spending power each year, whatever happens to the cost of living. That’s because they ensure the value of your savings is guaranteed to grow ahead of inflation as measured by the Retail Price Index (RPI), when held for at least a year. In the past, a maximum of £15,000 per individual could have been invested in each issue of Savings Certificates (£30,000 for married couples). On a typical 0.5% indexed linked with RPI at say 5% a return on a £15,000 investment would yield in year one £825. For a 20% or 40% taxpayer having a similar investment in a bank account, they would have to get an interest rate of 6.875% or 9.17% respectively to get the same after tax return. Watch out for the next issue of National Savings Certificates done in March or April – but don’t tell everyone!
Colin Barratt is tax partner at Wheawill and Sudworth chartered accountants, Huddersfield
6,
e
ng
e
s en to
els is
‘Growing’ legal practices positive about prospects LAW firms achieved strong growth during the second quarter of the year, a new survey has revealed. Figures from accountancy firm Deloitte show that the UK’s top 100 law firms boosted fee income by almost 10% during the quarter, but noted “sharp variability” between the performances of individual firms. The increase in fee income is more than double the 4% rise seen in the previous quarter. Higher revenues were driven by an average increase in the number of fee earners and average fees per fee earner, which rose by 3.9% and 5.7% respectively. Some firms suffered a decline in revenues, while others saw fee income increase by more than 20%. The survey showed that law firms are looking forward to continued growth throughout 2012 – with forecasts for a 6.2% increase in fee income for the year to April, 2012.
■ SPEAKER: Deirdre Bounds is backing young entrepreneurs
A NEW website has been launched to get young people “fired up” about starting in business. The new interactive Wildlife website – www.wildfirehub.com – is packed with tips and advice ranging from what to consider when setting up a home office, competitions and inspirational case studies through to the opportunity to put questions online to young business people and experienced advisers. Guest speaker at the launch event was entrepreneur Deirdre Bounds, who told how she started up a business from a bedsit in Leeds and turned it into the world’s biggest gap year travel company before selling it to a FTSE 100 company for an eight-figure sum in just 10 years. Deirdre encouraged youngsters in the audience to visit the website and experience for themselves the help and support available. She said: “I am really passionate about Wildfire which is new, fresh and dynamic. I truly believe it is massively important to have the right skills to start a business.”
It’s time you got more from your accountant Thinking… outside the books
added value services include… Tailored programme to maximise profitability Tailored tax efficient solutions
Regular updates & support to help your business FREE use of our facilities for your meeting Support all day, every day
Call Freephone: 0800 32 32 03 and quote KBN /1211 to give us the chance to help you achieve your goals, or contact us through our website at:-
www.walker-sutcliffe.co.uk
property
KIRKLEES BUSINESS NEWS
Page 6
Plumbing into apprenticeships A MAJOR plumbing and heating supply business is backing apprenticeships. Builders’ merchant group Wolseley UK has taken on 25 apprentices in its Plumb Center business, which includes branches in Huddersfield, Brighouse and Dewsbury. It has hired the young trainees through its customer service apprenticeship programme with help from national training provider Intraining. Frank Clayton, operations training manager, said Wolseley decided to take the apprenticeship route because it wanted to employ young, enthusiastic people who could be trained and educated the Wolseley way. He said: “The apprenticeship programme has given us the opportunity to bring people in with the right attitude, who are willing to learn and train with us. We believe this is very much the model for successful employment. “The apprentices are developing skills that benefit not only themselves, but also the business. “They work at ground level, receiving deliveries of goods and talking to customers. They are developing an excellent understanding of customer service and what the business needs and I know they will do good things for us.” Said Mr Clayton: “We are simply developing our talent with a view that in five years’ time these young people will be in senior positions in the company, making decisions and perhaps taking charge.” Wolseley UK decided to develop an apprenticeship programmes during the economic downturn as part of its preparations for the future – believing that high quality staff deliver great customer service, which in turn generates greater profits. Andy Hall, Intraining’s national apprenticeship hub manager, said Wolseley UK was testament to how well apprenticeships could work.
■ HOME, SWEET HOME: Diana Dickinson (left), of Jephson, with (from left) resident Julie Quinn; Rachael Rothery, of Jephson; and James Hinchliffe, of Kirkless Council
Housing group hits 100! A HOUSING association working in Kirklees has marked the completion of its 100th new affordable home. Jephson Homes Housing Association, which has its northern office at Elland, recognised the milestone with the handover of three properties at Moorbrook Drive, Holmfirth. Its milestone follows the completion of new homes in Skipton, Sutton-in-Craven, Doncaster, Halifax and Holmfirth during 2011. Jephson expects to have completed about 130 new homes by the end of the year. Clr David Sheard, Lead Cabinet Member for Investment and Housing at Kirklees
Council, said: “We’ve worked hard to secure these new affordable homes in a difficult economic climate. “It shows that by working in partnership, we can continue to deliver affordable housing and stimulate building when the development industry has slowed down. “We look forward to working with Jephson and other partners to deliver more affordable homes in Kirklees.” Jephson’s northern regional director Stuart Shore said: “We are delighted to have completed our 100th home this year. “This has been made possible by the sup-
port that we have received from our local authority partners and from the Homes and Communities Agency, which has part-funded the majority of the new homes. “The severe housing shortage has been in the national headlines in recent weeks and the homes we have provided will make a tremendous difference to people in the communities where the new homes have been provided. “We worked very closely with Kirklees council to provide the new homes at Holmfirth and we are very grateful for this support, without which the new homes would not have been possible.”
Building expert wins top accreditation
■ CHUFFED: Bill Butcher, of Green Building Store
A COLNE Valley firm is celebrating further success in the field of environmental construction. Bill Butcher, a director of Golcar-based Green Building Store has just been approved by the Passivhaus Institut in Germany as a certified European Passive House Consultant. Mr Butcher applied for the accreditation having already gained experience as a practitioner – designing and delivered the pioneering Denby Dale Passivhaus project, the UK's first certified cavity wall Passivhaus. Bill was project leader on the scheme, which was completed in 2010 and which was built by Green Building Store’s construction division, Green Building Company. Passivhaus design, which originated in the 1990s in
Germany, can create buildings which use 90% less energy for space heating than standard UK buildings. Based on the principle that reducing heating loss to the minimum is the most cost-effective way of creating a low-carbon building, Passivhaus design relies on a simple ”tea cosy” effect maximising the use of super insulation and stringent airtightness. By combining this with passive solar gain and mechanical ventilation and heat recovery systems, Passivhaus design can create healthy and comfortable buildings that require minimal heating. Mr Butcher and the Green Building Store also developed many original design details to combine the Passivhaus system with standard British cavity wall construction and building
materials. Said Mr Butcher: “I am very chuffed to receive the status of Certified Passive House Consultant – a badge which I will wear with honour! “The certification recognises the technical expertise and knowledge which I and my colleagues at Green Building Store have acquired over the last three years due to the steep learning curve that was the Denby Dale Passivhaus. I’m looking forward to advising on and constructing many more.” Green Building Store and Green Building Company are running a free workshop on Passivhaus and low-energy “retrofits” on Wednesday, February 8, at Slaithwaite Civic Hall. The workshop, which runs from 7pm to 9pm, will be led by Mr Butcher and co-director Chris Herring.
property
KIRKLEES BUSINESS NEWS Slowdown hits logistics market LEASING activity in the Yorkshire logistics property market has been virtually stagnant since the start of this year – with greatly reduced occupier take-up, according to new research. The study by property agency Jones Lang LaSalle blamed weakening consumer confidence for the decline in take-up of depots and distribution centres – affecting demand for space from retailers. Richard Harris, director for Jones Lang LaSalle’s national industrial and logistics team, said: “This reduction in demand is causing lengthening empty periods in the available stock and increasing holding costs for landlords. “The increase in holding costs, because of empty building rates, security, maintenance and insurance, means that landlords are willing to offer greater rental incentives to attract occupiers. “In the few deals to have been completed since January on new and secondary logistics properties, headline rents have generally held up and in agreeing terms in this way, landlords can protect their investment value and tenants can maximise any incentive package.” The study, which looked at the market for units of 100,000sq ft and above, said Yorkshire accounted for 4% of UK top-grade floorspace take-up and 17% of availability during the third quarter of the year. Mr Harris said that the level of supply in Yorkshire and Humber was sufficient to meet short-term demand and that it was likely there would be no speculative development for the foreseeable future until logistics space requirements increase. He said: “While the overall number of retailers active in the market has fallen, a number of leading food and non-food retailers have ‘live’ requirements for distribution centres in the UK which could come to the North. “These reflect a range of factors including store expansion, growth in internet sales and the re-design of distribution networks.”
Page 7
Garden building a winner for Ben A COMPANY providing “green” garden buildings has landed a top design award. Huddersfield-based Pod Space took the trophy for best innovative design at the Northern Design Awards for its Eco Pod product, which boasts impressive environmental credentials. The award was presented to Pod Space founder Ben Lord at a ceremony staged at the Lowry Hotel in Manchester and hosted by television architect George Clarke. Judges included Sir Terence Conran, Wayne Hemingway and Diamuid Gavin. Pod Space designs garden buildings constructed like Scandinavian houses with a timber frame and timber cladding. The Eco Pod also features steel clad roof panels and colour matched folding sliding doors. Said Ben: “We are delighted to have this design acknowledged for its innovation and we are pleased that we can offer a unique building to the market for customers seeking a garden room that is not only a high quality build, but also a beautiful and individual design.” Ben, an architecture graduate, set up Pod Space to revamp the idea of prefabricated buildings by creating a selection of stylish, eco-friendly ‘pods’ to help people extend their homes. Ben, of Scammonden, came up with the idea after watching his friend build prefabricated buildings. The company spotted a gap in the market for high specification, quality garden buildings for year-round use – as an extension to the family home or use as a home office. Said Ben: “The company’s focus is very
■ OUTBUILDINGS: Ben Lord, of Podspace Ltd, with one of his designs and (below left and right) views of previous garden building projects carried out by the firm
much on providing ecologically sound additional living space for everyone to enjoy. “As much, there is a range of products to suit all budgets, from the Micro Pod to the Eco
Pod.” The company has now established a national reputation, having featured in the national press and design magazines.
Property auctions are a hit in 2011 PROPERTY agency Eddisons generated sales exceeding £8.2m at its final property auction of 2011. The agency, which has offices in Huddersfield, said that 106 of the 147 lots which came under the hammer at the two-day sale in Leeds and Manchester were sold. The successful sales included a vacant hot food takeaway with self-contained two-bedroom accommodation in Lindley. The property on West Street was offered at a guide price of £75,000 plus and sold for £132,000. Meanwhile, a vacant three bedroom detached dormer bungalow in Waterloo sold for £108,000 off a guide price of £85,000 plus. Tony Webber of Eddisons said the firm’s eight two-day auctions during 2011 had realised just under £67m, adding: “Despite the financial gloom and doom, buyers were out in force and showed a willingness to spend on a range of stock which they perceived as offering good value for money or which gave a healthy return on investment.”
£1m for new-look trade counters TRADE specialists Plumbfix and Electricfix have invested a further £1m in the development of their trade-only counters across the UK. Two hundred of the fastest selling, everyday trade essentials are now available at the front of the counters, allowing customers to purchase the tools and products they need quickly and
easily. The new-look trade only counters, include one at Leeds Road Trade Park in Huddersfield. Branch manager Michelle Rodriguez said: “After listening to the feedback we received from registered tradesmen, we’ve invested in the format of our Plumbfix and Electricfix counters to enhance the overall shopping
experience. “Our specialist trade customers are extremely loyal to the Plumbfix and Electricfix brands. Over the past year, they not only increased in numbers, but many are now spending more with us on a monthly basis so it is vital that we respond to their needs.” The business recently celebrated a record week, with
year-on-year sales up by 50%. It has completed the refit at 95 of its counters and will be rolling out the refurbishment to the remaining 25 counters over the next few months. The £1m investment comes after parent company Screwfix announced the creation of 40 new trade counters and 1,000 new jobs nationwide.
KIRKLEES BUSINESS NEWS
Movers and shakers
Page 8
Clear winner of monthly award Staff training honour for Cleckheaton firm A CLECKHEATON company has won an award for staff training. Bluefin Insurance Services in Cleckheaton took the Training Initiative of the Year category at the Insurance Times Awards 2011 in London’s Battersea Park. The company which has offices at West 26 Business Park and at 40 other locations across the UK, triumphed over some of the biggest names in insurance to scoop the award which recognises investment in personal learning and development. Bluefin human resources director Andy Parsons (above, right) is pictured receiving the award from event host Vernon Kay. Bluefin employs 1,600 people nationwide and operates a wide range of training programmes, including apprenticeships and leadership skills. It also
supports study towards professional qualifications for its workforce. The company recently achieved Chartered Broker status under the auspices of the Chartered Insurance Institute. The annual awards programme celebrates exceptional achievement in insurance across 23 categories. The ceremony attended by 1,400 guests. Mr Parsons said: “Customers choose their insurance broker on the quality of service they provide, so it’s important that we have professional, knowledgeable and helpful staff if we are to thrive in a competitive environment. “We find that our investment in training pays dividends in growing our business, motivating and retaining employees and keeping our customers satisfied.”
A SECURITY business set up by a former police officer is the latest winner of a monthly business award. Clear Image MMS Ltd, founded in 1997 by former West Yorkshire detective sergeant, was named Business of the Month in the competition run by Huddersfield law firm Eaton Smith in conjunction with the Mid Yorkshire Chamber of Commerce and Business Link. Founder Neil Smith and colleagues Michelle Atkinson and Paul Morley received the framed certificate from Eaton Smith partner Steven Pollitt at a ceremony at the law firm’s High Street offices. Clear Image has evolved to offer a complete range of electronic security services. The company provides monitoring, maintenance and security solutions to a wide range of businesses and organisations – from stately homes to shopping centres. Despite expansion overseas, the company has maintained a permanent presence in Kirklees and counts many Yorkshire organisations among its clients – including Huddersfield University, Kirklees Council and the Nostell Estate. Its commitment extends to its role as employer – generating a variety of job opportunities in the Kirklees area, and contributing to improving the skills of its own employees through the Clear Image Academy. The company has a strong commitment to the local community in which it operates, using local services and suppliers where possible and backing the Forget Me
■ HIGH SECURITY: Steven Pollitt (centre), of Eaton Smith, presents the award to Michelle Atkinson (third right), Neil Smith (second right) and Paul Morley (right), of Clear Image, with (from left) Russell Briggs, of Barclays Bank; Jennifer Davies, of Revell Ward; and Philippa Coultish, of Business Link
Not Children’s Hospice in Huddersfield and U Can Shine, a motivational coaching programme for children in Holmfirth. Mr Smith, group managing director, said: “We’re delighted to have been recognised with this award. “Our team works very hard to drive innovation and deliver good customer service, and this helps to acknowledge their
Steve back in the swim
Robin Litten
Leeds Building Society A WEST Yorkshire building society has made a key appointment. Robin Litten (pictured) joins Leeds Building Society, the UK’s fifth-biggest mutual, as finance director. He joins the board, which now consists of three executive directors and eight non-executive directors under the leadership of chairman Robin Smith. Mr Litten, 48, is a qualified accountant and has a degree in business studies. He has spent his career in retail and financial services and will join the society in January after a successful period as chief commercial officer for Skipton Building Society. His previous roles include deputy finance director at Barclaycard, finance director at Barclays Private Banking, group finance director and later chief executive at Scarborough Building Society.
■ POOL WINNER: Jeremy Garside (left), managing partner of Chadwick Lawrence, with swimmer Steve Parry (centre) and Gareth Davies, managing director of KSDL SWIMMING Olympic medal winner Steve Parry made a splash as guest speaker when Kirklees Stadium Development Ltd held its Christmas partners forum, co-hosted by its legal partners Chadwick Lawrence. The forum was held in the newly refurbished BTR UK suite at the Galpharm Stadium and was attended by the stadium’s partners and local businesses, who came together for the networking event. Steve Parry gave a motivational talk about his career and explained
how the skills he learnt in training apply to business – such as the importance of setting goals and working towards them. He also told some funny anecdotes about meeting the Queen and his first reporting assignment with the BBC when he got mistaken for Michael Phelps and was then a massive hit on YouTube. Steve was captain of the Great Britain swimming team at the Athens Olympics, where he won a bronze medal.
efforts. “As a growing company we’re very proud to be flying the flag for Yorkshire, right across the UK.” The Business of the Month Award is open to firms in Calderdale, Kirklees and Wakefield. Contact Ian Greenwood at Eaton Smith on 01484 821389.
Jade Andrews
Code Blue Technologies CODE Blue Technologies, based at Old Leeds Road in Huddersfield, has appointed post graduate Jade Andrews as customer services manager. Jade (pictured), 20, who hails from Halifax, is a graduate of Calderdale College where she gained a degree in 3D architecture and interior design. An accomplished database designer, she has completed several retail merchandise projects with stores in Huddersfield and Halifax, including the RSPCA and Harvey’s, where she helped to redesign and modernise the store and window displays. She joined Code Blue Media in September last year as an administrator after finishing her degree and was promoted to marketing assistant. She has now progressed to managing Code Blue Technologies’ customer service. Code Blue Technologies is an IT specialist company that offers bespoke database solutions along with extensive IT supply and support maintenance packages. Sectors served include small retailers such as florists and beauticians through to international rescue organisations and passenger transport.