COLIN BARRATT
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HUDDERSFIELD EXAMINER TUESDAY, FEBRUARY 25, 2014
Death and taxes Column - Page 4
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KAREN WYNARD Recognise your rights Column - Page 5
An EXAMINER publication
KIRKLEES BUSINESS NEWS The business NEWSpaper for Kirklees
By HENRYK ZIENTEK Business Reporter henryk.zientek@examiner.co.uk
COLNE Valley-based family firm, Daval Furniture is heading to Birmingham to attend one of the UK’s largest gathering of the world’s most exciting kitchen, bedroom and bathroom brands. The Daval team is attending the forthcoming kbb Live Exhibition, which takes place from March 2 to 5 at the NEC Birmingham. The event will showcase more than 300 outstanding brands, their bestsellers and exciting new innovative products. Exhibitors include well-known household names such as AEG and many major publications from within the industry. Slaithwaite-based Daval, which celebrates 35 years of trading this year, has a strong reputation for the design and manufacture of fitted furniture. It has invested continuously in development and technology to help keep the business at the forefront of its industry – rivalling the likes of its German competitors and prospering through the recession. Daval will showcase its bestsellers – the Oakley Kitchen and Como Bedroom, as well as launching its brand new handle-less kitchen, Spa Fields, a new generation of kitchen using the latest syn-
■■ Simon Bodsworth, marketing and development manager at furniture firm Daval
chronised wood grains which provide a colour and texture never seen before. Marketing and development manager Simon Bodsworth said this would be the first exhibition Daval has attended as an exhibitor. He said: “It will no doubt prove to be a fantastic experience which will showcase our handcrafted products to attendees from around the world. “We have been preparing for the exhibition for a number of months. This has involved designing a complete exhibi-
tion stand from scratch, modifying our kitchen and bedrooms to fit within the stand and planning logistics for the event. “We are looking forward to showcasing our bespoke furniture at the event and putting Yorkshire manufacturing on the map.” Daval came to prominence a few years ago with its groundbreaking Option-I technology, which propelled the company to the forefront of its field as individual, flexible, design-led specialists –
offering a made-to-measure approach which has proved popular with consumers and independent retailers. Option-I is a software system that handles all aspects of a customer’s order – from placing the order to packaging and dispatching the finished product. The system also allows customers to specify a much wider range of colours, styles and finishes when they select the company’s fitted bedrooms, kitchens and bathrooms. This has resulted in a carefully managed strategy that allows for individual care for different dealers, including tailored product, service and marketing support. Daval was founded by Simon’s father David, who is managing director. The business, which was initially built on recommendations, is owned and managed by the Bodsworth family with all furniture designed and built in the company’s state-of-the-art 100,000 sq ft factory at Slaithwaite. Daval has no plans to slow down as the UK economic recovery picks up. David said: “Many UK manufacturers have experienced tough times throughout a number of recessions. “As a family business we are proud to have survived these challenging periods and we believe this pays testament to our team ethos and pure determination. “We are looking forward to 2014 and are confident that Daval will still be around in another 35 years’ time!”
Businessman Graham Leslie is charity’s new champion A prominent businessmen has been appointed patron of a Brighouse-based charity. Prof Graham Leslie, founder of pharmaceuticals firm Galpharm International Ltd, has pledged his support to the Yorkshire Kidney Research Fund. Graham grew Galpharnm into the largest privately-owned store brand pharmaceutical company in Europe. He was also responsible for making one of the world’s most commonly used painkillers, Ibuprofen, available as an “over the counter” medicine – a move which continues to save the NHS about £300m a year. He was also instrumental in the development of Huddersfield’s first 25,000-seater stadium – now the John Smith’s Stadium – ,
which Galpharm sponsored for many years. During the recession, Graham helped several companies overcome their financial difficulties and transform themselves into profitable businesses, resulting in his being awarded an honorary doctorate of business administration at Huddersfield University. He became resident professor of enterprise and entrepreneurship at the university and is involved in its 3M Buckley Innovation Centre, which assists dynamic business growth and encourages collaborations through the university’s key research centres. Graham already supports a number of charities. Commenting on his latest
appointment, he said: “I am delighted to become patron of the Yorkshire Kidney Research Fund and to support the work they are achieving to ensure essential research on kidney disease. The charity has helped researchers to produce internationally renowned results and I am proud to be involved with such an organisation.” Pat Gardner, acting chair of the Yorkshire Kidney Research Fund, said: “We are grateful that Graham has agreed to become patron. We are very privileged to have the support of such an eminent entrepreneur, philanthropist and mentor and we look forward to working with him.” The charity is now encouraging people to stage fundraising events to mark World Kidney Day on March 13.
Second success A DESIGN company in Huddersfield has completed an awards double. The Engine Room, based at the Media Centre in Northumberland Street, was presented with its second consecutive Design Effectiveness Award in London. The trophy was awarded for the 2012 rebrand for national budget gym chain Xercise4Less. The project, which contributed to an increase in turnover of 120% in just six months, supported Xercise4Less in positioning its brand alongside supermarket giant Tesco in a recent deal which saw the award-winning chain open its first gym within a Tesco store.
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BAFTA winner Holmfirth design company Lightbulb took a bow for its role in this year’s BAFTAs. The company was behind the creation of the online voting platform used by thousands of producers and directors to submit and vote on all categories of the awards, which were presented in London. David Henzell, of Lightbulb, said: “BFTA asked for a major refresh of the look and feel of the site – and they turned straight to us. We were honoured and thrilled.”
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TUESDAY, FEBRUARY 25, 2014 HUDDERSFIELD EXAMINER
KIRKLEES BUSINESS NEWS
national
Bank chief handed £8m wage as profits improve BANKING giant HSBC racked up profits of nearly £14 bn after a year in which its chief executive was handed a pay package worth more than £8 m. The pay-out for Stuart Gulliver and the bank’s revelation that 239 staff received more than £1m last year risked stoking anger over bank bonuses. In addition, HSBC outlined measures that will see it sidestep new EU rules on bank bonuses by offering senior staff fixed pay allowances. In the case of Mr Gulliver, his base salary will remain at £1.25m, but he will receive a fixed pay allowance of £1.7m, to be awarded in shares on a quarterly basis. It will not be tied directly to performance and so would not count as a bonus under new European rules preventing bankers from being paid bonuses worth more than two times their salary. The controversial new rules from Brussels came into effect in January, meaning that 2013 was the last year in which big bonuses could be paid. Mr Gulliver’s previous pay scheme offered an annual bonus worth up to three times his salary, plus a longerterm share award that pays out as much as six times salary.
■■ HSBC is “leaner and simpler” following a three-year turnaround plan
Chancellor George Osborne has filed a formal complaint against Brussels over the plans amid fears their introduction will drive up fixed salaries and increase the risk to financial stability. Other banks, including RBS, are expected to announce how they plan to tackle the Brussels rules in annual reports later in the spring.
But with HSBC also announcing its bonus pool for staff rose by 6% to £2.3bn last year, TUC general secretary Frances O’Grady said the results were “yet another example of soaraway boardroom greed”. She added: “It would be great if banks put the same effort into lending to small businesses and investing in infrastructure as they do to getting
Chief quits after alert on earnings THE boss of under-pressure retailer Mothercare has resigned after less than two years in the role. Simon Calver’s exit as chief executive with immediate effect comes six weeks after the company issued a profits warning due to poor Christmas trading in the UK. Mr Calver was a surprise choice to run the baby products retailer in April 2012 after seven years at the helm of internet movie rental firm LoveFilm. He has overseen a major store reduction programme, but the company, which includes the Early Learning Centre, has struggled to revive profitability in the face of fierce competition from supermarkets and online retailers. Mothercare, which has a store at Great Northern Retail Park and an Early Learniong Centre at New Street in Hudersfield, gave no reason for Mr Calver’s resignation, but stressed that there has been no change in the company’s trading position or strategy. The rest of Mothercare’s executive team will take on the running of the business while the search for Mr Calver’s replacement takes place. Chairman Alan Parker said Mr Calver had made progress in implementing the company’s turnaround programme and his e-commerce expertise had enabled Mothercare to accelerate its development as a multi-channel retailer in the UK. Mothercare had a strong executive management team, he said.
round EU rules on boardroom bonuses.” Shares in HSBC slumped by more than 4% after its profits of £13.6bn rose 9% on a year ago, but came in below City expectations. The banking group, which has more than 250,000 staff, said it was now “leaner and simpler” as a result of a three-year turnaround plan, which was launched by Mr Gulliver after he took the helm in 2011. Initiatives included the sale of 63 non-core businesses and a 41,000 reduction in its full-time headcount from 295,000 at the start of 2011. However, he admitted that HSBC had not met all of its targets in 2013, with its cost efficiency ratio of 59.6% and return on equity of 9.2% both outside its target ranges, – in part due to continuing customer compensation costs in the UK. Underlying profits were higher in three out of its four global businesses, with the exception of Latin America where trading was affected by slower economic growth and inflationary pressures. HSBC said it expected more “choppy markets” this year as adjustments are made to changing economic circumstances.
Retailers embark on merger talks TUC demands ‘recovery for all’ Dixons Retail Group, which owns PC World and Currys, is in talks with Carphone Warehouse about a possible merger. The electricals retailer said the discussions are at an early stage and that no decisions have been made about how a tie-up might be structured. Both companies are valued at about £1.8 bn on the London stock market after shares in
Dixons rose by 5% and Carphone Warehouse shares were up by 3% during early trading. Carphone was founded in 1989 by Charles Dunstone, who still owns 23% of the company. It has more than 2,000 stores across Europe, including ones at King Street and Wakefield Road in Huddersfield. The business was recently boosted by a major deal to open
FEW workers are feeling the benefit of the economic recovery – with just one in 50 saying they are better off, according to the TUC. The union organisation has repeated its warning that recovery is unsustainable unless workers get a decent pay rise and see their living standards improve. Assistant general secretary
60 Samsung-branded stores across Europe, including a third on UK high streets. Dixons has more than 500 stores across the UK and Ireland, predominantly in out-oftown retail parks. They include stores at Great Northern Retail Park and the Kingsgate Centre in Huddersfield. There is also a sizeable store estate in northern Europe.
Paul Nowak said: “We must ensure we have a recovery for all, that doesn’t leave working people struggling to make ends meet as energy and transport costs continue to spiral. “What the patchy recovery has done is shine a light on the uneven distribution of reward in the UK. “In the first three days of
the year, chief executives of top companies earn what their workers can expect to receive during the whole of 2014.” He said Britain’s “low pay epidemic” should be tackled, adding: “We need a recovery that lifts the living standards of all workers, regardless of where they live or which sector they work in.”
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HUDDERSFIELD EXAMINER TUESDAY, FEBRUARY 25, 2014
KIRKLEES BUSINESS NEWS
profile
There’s no time to take a nap! THERE’s no way that Jonathan Warren is resting on his laurels. The director of Milnsbridgebased online bed retailer Time4Sleep is wide awake when it comes to further building up the business he launched in 2006. The company, which employs eight people at Colneside Business Park, is on track to meet its ambitious 2014 growth targets, having boosted year-on-year first quarter revenue by 60%. The firm, which specialises in high quality bed frames, divans and mattresses, aims to achieve annual revenue of £4m by the end of its 2014 financial year in October – 33% higher or £1m up on the figure for 2013. That will continue a positive trend for the company which has seen turnover increase in all but one of its seven years. First-year revenues totalled £350,000. Turnover in year eight was £3.2m. Jonathan launched the company in response to the boom in online shopping. Now the company plans to meet its ambitious targets by expanding its product portfolio with new ranges, reducing delivery times further, boosting its team and increasing marketing investment in the brand. Sourced from trusted suppliers around the world, the Time4Sleep range provides customers with savings of up to 40% on high street prices. Jonathan says: “We’re delighted to have had such a great start to our financial year, following seven years of rapid growth. “It’s an exciting time for the business and we’re extremely confident of hitting our biggest ever annual revenue target this year. “We created Time4Sleep when the market for buying furniture online was still in its infancy, but had a clear strategy in place from day one. “The aim back then was simply to source bed frames directly from overseas manufacturers in order to provide quality products to British consumers at the cheapest possible price. “The online retail environ-
ment is extremely fast-paced and so the key to long-term success is to continually evolve and respond to the latest market challenges and changing customer needs.” Jonathan grew up in Beaumont Park and attended Moor End High School and Greenhead College before gaining a business degree at Manchester University. “I was always fascinated by business,” he says. “I did a four-year sandwich degree, which included a oneyear placement with a wallpaper manufacturer. “I have always been interested in home-related businesses. “Later, I went into marketing for Shaw Carpets and was there five or six years. “The company went into administration. Carpet manufacturing in the UK was a dying industry and faced competition from Belgian imports.” Jonathan went to work for Dorlex Beds in Halifax, where he was also involved in marketing. “I really enjoyed being in a manufacturing environment,” he says, “I like to see things being made.” But he says: “I had 12 years in employment working in highly competitive industries and I never really felt I had that much job security,”
Jonathan Warren
In his early 30s, Jonathan took the plunge to set up his own online business. He says: “At the time, I had come into some money, I had the experience and the internet was starting to take over. “People were getting used to buying books or booking holidays online. The only thing holding me back was myself - and a fear of the unknown. “I had met my partner Vicky, who became my wife. She had a good position, which provided a safety net, so I could afford to take a little bit of a risk.” The business model proved a success - importing bed frames from trusted manufacturers in the Far East and selling direct to cut out the wholesale margin and remain competitive on price. “We work in a traditional industry which is slow to adapt,” says Jonathan. “Because we have our own supply network, we can react more quickly to changes in trends in the market.” Time4Sleep started out in a 12,000sq ft unit at Albion Works on Manchester Road. Jonathan recalls: “We had oneand-a-half containers of beds and a showroom with space for seven or eight divided from the warehouse by a curtain.” The company later moved to
■■ Jonathan Warren (front) with members of his team at Time4Sleep
Leeds Road, where it expanded further before moving to its present site three-and-a-half years ago. Now it has 43,000sq ft of warehousing and 5,00sq ft for its offices and showroom. Its stylish beds and bedroom furniture include ones sourced from China, Malaysia, Indonesia and Vietnam. Ninety per cent of what Time4Sleep sell is exclusive to the company. “We invest massively in marketing. We have always invested heavily on search engine optimisation and we have had very good rankings. “That investment has been one of the keys to our success. “We have grown throughout the recession as the internet has grown – and we are fortunate to be in a growing sector. “We deliver anywhere in the mainland UK with the vast majority of our orders coming from customers in the London area. Perghaps the south east is a little more affluent!” Says Jonathan: “In the past two years, there has been more changes in our industry than in the previous five years. “It has become more competitive and more aggressive in terms of price, but it is increasingly all about trust in the brand. “There are a lot of big players in the market backed by venture capital businesses who are prepared to lose money to gain market share in the long run. A lot of companies have had t“o adapt their business model.” But Jonathan adds: “We have no aspirations beyond the bedroom furniture market, which is huge. We will always focus on what we know.” At home in Barkisland, Jonathan’s time is fully committed to wife Vicky and children Olivia, five, and four-year-old Louise. “I have always enjoyed swimming and I used to do a lot of wind surfing and sailing,” says Jonathan. “I also enjoy mountain biking and when the girls are a bit older we’ll be able to do that together.”
Role: Director Age: 40 Car: BMW Family: Married to Vicky with daughters Olivia, five, and Louise, four Holidays: I love the food and the scenery in Croatia, but I have travelled to lots of places, including South Africa, Thailand, Vietnam, India and America First job: My first job was delivering the Weekly News, but I’ve also worked at Dixon’s ice cream parlour, Superdrug, in a builder’s yard and in pubs Best thing about the job? I really enjoy developing products and bringing them to market Worst thing about the job? The administration that goes with running a business Business tip: Work hard and stay focused on customers and colleagues
Time4Sleep Work: National online retailer of beds, mattresses and bedroom furniture with a Huddersfield-based showroom Site: Milnsbridge Phone: 01484 500560 Email: info@time4sleep.co.uk Web: www. time4sleep.co.uk
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TUESDAY, FEBRUARY 25, 2014 HUDDERSFIELD EXAMINER
local
Time to honour the top trainers Current apprentices and employers across Kirklees are being encouraged to enter the 2014 National Apprenticeship Awards. The Awards, which are run by the National Apprenticeship Service, aim to recognise the “the best of the best” at regional and national level. Nick Wilson, Yorkshire and Humberside deputy director for the Skills Funding Agency, said: “The National Apprenticeship Awards recognise the success of employers in growing their own talent and developing a motivated, skilled and qualifies workforce. “They also recognise the crucial role skills play in helping individuals develop fulfilling careers. “Entering is a real opportunity for employers and individuals to gain the recognition they richly deserve for building the national skills base.” The awards are now in their 11th year. Last year, regional Yorkshire and Humberside winner Gordons LLP was named Newcomer Employer of the Year. Also among the winners was Bradford hair salon owner Helen Roe, who was named Apprenticeship Champion of the Year in the regional awards ceremony. For the fourth year running, the very best employer category entries will also have the additional bonus of featuring in the annual Top 100 Apprenticeship Employers list, which is produced by the National Apprenticeship Service in partnership with City & Guilds. The 2014 list will be announced at the prestigious National Apprenticeship Awards ceremony in November. Apprentice categories for the 2014 awards are: Intermediate Apprentice of the Year, Advanced Apprentice of the Year, Higher Apprentice of the Year and City & Guilds Apprenticeship Champion of the Year. The employer categories are: Small Employer of the Year, Medium Employer of the Year, Large Employer of the Year, Macro Employer of the Year, Newcomer – Small to Medium sized employers, Newcomer – Large employers. Entries close on Friday, March 28. Visit www.apprenticeships.org.uk
Canada presents export potential KIRKLEES companies involved in fabricating, welding, metal forming and finishing have been urged to explore export opportunities in North America by attending a major exhibition. Holmfirth-based company Alfran is organising a visit to FABTECH, which takes place from March 17 to 20 in Toronto, Canada. The trip is being supported by UK Trade and Industry in Yorkshire and Humber. Jo Lavan, of Alfran, said: “The Economist Intelligence Unit considers Canada the best country in the G7 in which to do business over the next five years and it is the first country in the G20 to create a tarifffree zone for industrial manufacturers. “Canada is also a world leader in injection and blow moulding, hydroforming, ferrous and non-ferrous casting, powder metal coating and fabrication to name but a few. “Ontario is North America’s largest automotive manufacturing jurisdiction, the aerospace manufacturing sector is growing, more than 1,000 firms are involved in medical devices and Canada has the world’s second-largest proven reserves of oil and is the third largest producer of natural gas.” She said: “Toronto is Canada’s financial and business capital. The city’s economy comprises 11% of Canada’s GDP and has 11 key sectors which work together to keep the city relatively resilient to economic downturns. “Rated as one of the top five global cities with economic clout and one of the top five cities for economic potential and infrastructure, Toronto is a dynamic, diverse, rising city that provides the ideal business environment for companies looking for a competitive edge.” For detauils, emailjoanna@alfran.co.uk
KIRKLEES BUS
Time to tackle the ’taboo’ of taxation IN the past, Inheritance Tax (IHT) was considered to be the domain of the very wealthy, but with increasing property prices and the stagnant IHT threshold, the incidence of this tax is becoming more common. An individual’s estate normally comprises 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, IHT of 40% is levied on that excess. This nil-rate band will now continue to apply until April 5, 2018. Those who are less reliant on capital for security in retirement or to fund future care costs and where adequate financial provision for their spouse has already been made, 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 IHT 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. Gifts made by parents to their child on the occasion of marriage are also
■■ Tony Jones, manage branch of Handelsbank
TAX TALK Colin Barratt exempt from IHT up to £5,000 per parent (£2,500 for gifts made by grandparents). Lifetime gifts to individuals in excess of such exemptions will be free of tax provided the donor survives seven years thereafter. Some measure of IHT relief might be available where the donor survives at least three years from the date of gift. For those who are contemplating making more substantial gifts, but may have concerns about the ultimate destination of assets or wish to protect assets from young or inexperienced beneficiaries, the use of nil rate discretionary trusts” during lifetime or through their wills can play an important role. Indeed such asset protection afforded by trusts is often the key reason for setting them up. Individuals transferring property into trust during lifetime in excess of £325,000 will generally suffer an IHT charge of 20% on that excess. IHT may also be payable by the trust
on each 10-year anniversary of when it was set up at the rate of 6% on the excess above £325,000. But up to that threshold there is no liability. Gifting assets other than cash to individuals may crystallise a Capital Gains Tax (CGT) liability. That liability can be avoided if the asset is made to a trust. So gifts into trust can avoid CGT and IHT (up to £325,000) and will protect assets for the individuals who can benefit. Trusts pay income tax at the top rate but income can be channelled to any beneficiary to use up the Personal Allowance and lower tax bands of children or grandchildren to minimise the overall tax bill. Although the issue of IHT is often considered to be a taboo subject, careful and early lifetime planning can help mitigate the loss of wealth from a deceased’s estate and the use of trusts can also play an important role in tax mitigation and in protecting hardearned assets.
Colin Barratt is tax partner at Wheawill and Sudworth chartered accountants, Huddersfield
Bank bo busines
Handelsbanken successful year of gro relationships with loc The 142-year-old branch at Bradley in H a 17% rise in lending during the fourth qua pared with the same p Business lendng wa while lending to pers ers rose by 29% to £ deposits increased by to £4.95bn. The Huddersfield b a team of eight experi of 171 British branch branches which open The bank said its lo tomer satisfaction, p cost efficiency had rated top for satisfact last five years in an survey of British bank ness customers by EP Tony Jones, manag branch, said: “Hand local bank built on cl traditional values. “We aim to provid level of service and l ered by our truly lo other banks aim for b
Businesses find out about buying power Making More than 200 people attended a business networking event in Kirklees. Huddersfield Town Enterprise Academy (HTEA) and Kirklees College organised Buy Kirklees at the college’s Huddersfield centre to look at how the public and private sectors are making procurement more accessible to local and small businesses. The event also provided a chance for businesses to network with each other as everyone was encouraged to keep spending in the local area and boost the economy. A panel, hosted by Huddersfield Town commercial manager Tracy Nelson, included Nichola Cooke, procurement strategy and advice manager at Kirklees Council; Chris Chambers, owner of Spring Partners Ltd; John Thompson, head of procurement at Huddersfield University; Jason Taylor, commercial manager of Kirklees College; and Stuart Stocks, senior business man-
of netw
■■ Speakers at the Buy Kirklees event held at Kirklees College’s new Huddersfield centre
ager from Barclays. There was also a presentation from Tom Attah, training consultant for Microsoft. Jason said he was delighted to see so many local organisations support the event. “The panel gave a true and honest insight into procurement in Kirklees and offered the watching organisations some clear goals and actions on how they can get involved with some of the leading bodies in Kirklees,”
he said. Tracy said: “Our HTEA events continue to grow in stature and in attendance and we were delighted that so many businesses supported this event. “The initial feedback we received was excellent and we will continue to work with the local business community to put on future events and discussions around topics that will appeal to them and genu-
inely can help their business move forward.” Commenting on the event, attendee Carl Sykes, community and business relations manager for chemical firm Syngenta, said: “The word ‘value’ was used many times today. “I think most would agree there is value in connecting people like this.” Ben Mitchell, of CBC Computer Systems, said: “It was very informative.”
Networking is all But how do you get th morning and lunchtim Dr Martin Haigh, of titde7, will deliver a N terclass when the Mi of Commerce stages session next Tuesday The event takes p March 4 at the cham Lockwood Park in Hu The aim is to help confidence to help p effective networkers. The session will cov inating doubts and working, asking the r nise a business o relationships with ot dent about aking follo All attendees will pocket guide and a n let. Dr Haigh is an a specialising in perso team building with n tional clients.
5
HUDDERSFIELD EXAMINER TUESDAY, FEBRUARY 25, 2014
SINESS NEWS
er of the Huddersfield ken at Bradley
oosts ss loans
has credited another owth to its deepening cal branch customers. bank, which has a Huddersfield, reported g to British customers arter of last year comperiod in 2012. as up by 13% to £8.68bn sonal banking custom£3.58bn. UK customer y 60% over the period
branch, which is run by ienced bankers, is one hes – including 28 new ned during 2013. ong-term focus on cusprudent banking and seen Handelsbanken tion and loyalty for the n independent annual ks’ personal and busiPSI Rating. ger of the Huddersfield delsbanken is a solid lose relationships and
de a consistently high long term value delivocal approach which but may not deliver.”
local
Exploding the financial myths for co-habitees It is a fact that, over recent years, the number of unmarried couples in the UK has been steadily increasing. According to the Office for National Statistics (ONS) around 5.9m people were co-habiting in 2012. This figure has doubled since 1996 and it is predicted this will rise to one in four couples by 2031. Perhaps unsurprisingly, however, there is a common misconception regarding the rights and legal the payment of “dependents pensions” to a partner on the status of co-habiting couples. In fact 58% of respondents death of a scheme member, this is subject to individual to the British Social Attitudes Survey in 2006 thought that scheme rules. unmarried couples who live together for some time probSome schemes may not have adopted this wider definiably or definitely had a “common law marriage” which tion and may still make reference to a “spouse’s pension” gave them the same legal rights as married couples. which would mean an unmarried partner would not qualUnfortunately, the reality is that unmarried couples ify. It is therefore important to check individual scheme simply do not attain similar rights, regardless of how long rules. they may have been co-habiting. This means such indiWith the exception of any jointly owned policies, the viduals need to plan their finances more carefully than proceeds of life policies you hold would be paid to your those who are married or in a civil partnership. estate on death and distributed either under the terms of Whilst it is important for everyone to make a Will, this your Will or the intestacy rules. is absolutely essential for unmarried couples. Without Following on from the earlier point made, where you a Will your estate would be distributed according to the don’t currently have a Will it is worth considering placing rules of intestacy and, whilst these rules make provisions life policies in a suitable trust to ensure that your partner for spouses and civil partners, they don’t recognise un- can benefit from the proceeds. married partners. In reality this could mean your partner Inheritance tax (IHT) is a major problem for unmarried would get nothing with your estate passing to your blood couples with substantial assets. This is because, whilst relatives in a strict order of priority. transfers between married couples and civil partners are Whether you are a member of an employer’s pension exempt from IHT, there is no such exemption for unmarscheme or have a personal pension plan it is important to ried individuals. This means that anything left to an uncomplete an “expression of wishes” form so the trustees married partner over and above the “nil rate band” (curof the scheme are aware of who you would like them to rently £325,000 for tax year 2013/14) would be subject to pay any pension death benefits. Whilst trustees ultimately IHT at 40%. have discretion over who receives any benefits, without a In addition, since October 2007, whilst it is possible to nomination there is a risk that their decision may not re- transfer any unused “nil rate band” from a late spouse or flect your wishes. civil partner to the second spouse or civil partner this does Care should also be taken in respect of any pensions already in payment because, alKaren Wynard is at Eastwood Financial Services Ltd though HM Revenue & Customs rules permit
FINANCIAL FOCUS Karen Wynard
g more Entrepreneur Richard warms to a new role
working
part of doing business. he most from all those me get-togethers? f Brighouse-based LatNetworking Skills Masid Yorkshire Chamber its 60 Useful Minutes y. place from 8.30am on mber’s headquarters at uddersfield. dispel fears and build people become more
ver areas such as elimconcerns about netright questions, recogopportunity, building thers and being confiow-up action. receive a free handy networking tips book-
award-winning trainer onal development and national and interna-
A FORMER chief executive of a steel manufacturing firm is cleaning up with his latest business venture. Richard Greenwood, 61, set up oven cleaning service Ovenu West Yorkshire four years ago and has recently cleaned his 5,000th oven. It’s a change of direction for Richard, who built up the steel company he bought in 1985 to such an extent that it carried a £4m price tag when he sold it in 2004. Since then, he has run his own steel trading business, which has taken him around the world on business. Now he has added to his activities with the Ovenu franchise, which he acquired when the previous franchisee emigrated to Australia. While it may seem odd for someone who had been the chief executive of a thriving business to be cleaning ovens, Richard says: “I saw it as a great opportunity. I already knew the product and the brand because I had been using them for two or three years.” Richard’s wife Trish is a member of the team, which also includes Alex Robertson, Matthew Pimperton and Jimmy Bell. Ovenu provides an environmentally-friendly oven cleaning service to residential properties and businesses, such as letting agents, private landlords and local schools across West Yorkshire including Huddersfield, Halifax, Leeds, Bradford and Wakefield. Richard, whose many outside interests include being chairman of governors for a local school, said: “Ovenu provides an environmentally-friendly oven cleaning service . “We specialise in cleaning Agas as well as single and double ovens and we try to attract the higher end of the business.” Commenting on his decision to take up the granchise, he said: “I wanted to focus on building a business which had a
■■ Richard Greenwood (centre) and Ovenu team members
strong record, even in tough economic times.” Looking to the future, Richard said: “I an looiing to expand the business. “I said when I took it that eventually I wanted it to be a 10-site operation. I have five at the moment, so I am half way there. It’s not about the money. What mtivates me is seeing how far i can take this business. I used to work 50 or 60 hours a week and at the age of 63 I have as much ambition as someone in their 20s.” Richard’s growing Ovenu business is part of a UK-wide franchise operation made up of more than 100 UK franchisees. And his enthusiasm for being in business isn’t restricted to cleaning ovens. Richard is also one of the owners of a beauty salon at Salterhebble, Halifax.
not apply to unmarried couples. So, for example, let’s say an unmarried individual with total assets of £250,000 leaves their entire estate to their partner. Whilst there would be no IHT due on this transfer, the unused nil rate band of £75,000 could not be used by the survivor’s executors when ascertaining any IHT due on the survivor’s subsequent death. The current rates of Capital Gains Tax (CGT) are 18% for basic-rate taxpayers and 28% for higher rate taxpayers. Where capital gains exceed the annual CGT exemption, spouses and civil partners are able to reduce their tax bill because they are able to first transfer ownership of the asset to the party paying CGT at the lower rate without creating a tax liability. Unfortunately, unmarried couples do not benefit from this exemption, so any transfers of assets between them – even as a gift – could trigger a liability to CGT on the transferor. Bereavement allowance is payable to recently widowed spouses and civil partners, but cohabitees are not entitled to this benefit. Where a husband, wife or civil partner dies and their surviving spouse/civil partner is over 45 but under state pension age the survivor may be entitled to bereavement allowance. This benefit is paid for 52 weeks after death, the amount depending on how much NI contributions the deceased had paid in their lifetime and the survivor’s age. Maximum weekly payments are £32.49 for a 45 year-old, rising to £108.30 for those between 55 and state pension age. As you can see there are a number of additional financial planning issues to consider for co-habiting individuals compared to married couples. It is therefore important for such individuals to arrange their affairs as efficiently as possible to take advantage of the tax allowances and thresholds available and also to prevent any unwelcome consequences should the worst happen.
Support for manufacturers SOURCES of support for manufacturers will be the focus for a meeting of the Calderdale and Kirklees Manufacturing Alliance
this week. The meeting will start at 5pm on Thursday at the Briar Court Hotel, Halifax Road, Birchencliffe.
Independent financial planning services for companies and individuals Eastwood 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 Conduct Authority
6
TUESDAY, FEBRUARY 25, 2014 HUDDERSFIELD EXAMINER
KIRKLEES BUSINESS NEWS
news
And the winner is... design firm Lightbulb THE stars have trodden the red carpet and gone home clutching their shiny awards. Now it’s time for Holmfirth design company Lightbulb to take a bow for its role in this year’s BAFTAs. The company was behind the creation of the online voting platform used by thousands of producers and directors to submit and vote on all categories of the awards, which were presented in London. David Henzell, of Lightbulb, said: “A lovely client of ours, Huddersfieldbased Brighter Connections, has handled the coding for the voting system for a couple of years now. BAFTA asked for a major refresh of the look and feel of the site – and they turned straight to us. “Over the past few years, we’ve developed complex projects for the likes of Marriott, Novotel and The National Trust, so when we were asked to work with BAFTA, we were honoured and thrilled in equal measures.” Said David: “Our input was to craft the user interface of the site, helping to guide users through the submission and voting process. This involved the design of a suite of icons and a ‘road map’ of how visitors should progress
through the site. “After months of work, it’s always fantastic when we get great feedback.” David Lortal, the online awards officer at BAFTA, praised Lightbulb’s work, saying at the time: “We all really like the designs. They are really clean and modern and think they will look great on the site.” David said: “In many respects, working on this project for BAFTA has been the pinnacle of our achievements to date. “We’ve created web designs for hotels across Europe and Scandinavia, but working for such a highly prestigious organisation as BAFTA, on home soil, is just amazing.” Lightbulb Brand Design was formed in Holmfirth in 2006 by managing partners David and Sophie Henzell – not forgetting much-loved studio dog, Fred. With backgrounds in the largest design and advertising agency outside London and design studios in New York, David and Sophie decided to pool their experience and set up their own brand-focused design and web consultancy. Since then, they have gone on to work with some of the UK’s most respected brands.
■■ David Henzell, of design company Lightbulb, with his homemade BAFTA
Players drop by
■■ Ashley Barrowclough (second left) with players Leroy Cudjoe, Jermaine McGillvery and Michael Lawrence
An accountancy firm in Holmfirth has scored with Rugby League stars at Huddersfield Giants. Balance Accountants has been providing a financial health check for several of the club’s players as the Super League season gets into full swing. Proprietor Ashley Barrowclough met with players Leroy Cudjoe, Jermaine McGillvery and Michael Lawrence. He said: “Three of the players dropped into
Balance Accountants for a quick financial checkup to ensure that their financial wellbeing is in the same prime condition as their physical fitness! “Balance Accountants act for a number of Superleague players from clubs on both sides of the Pennines, but we’re big Huddersfield Giants fans and are always especially pleased to see our favourite Giants stars calling into the office.”
Companies ‘must make most of new positive trend’ SMALL firms in Kirklees need to “grow with the times” according to a tax specialist. Nick Brook, of Lockwood-based TaxAssist Accountants, said news that the UK economy is growing at the fastest rate since 2007 would help to bolster business confidence. The Office for National Statistics said the UK economy grew by 1.9% in 2013 and by 0.7% in the fourth quarter
of last year. Mr Brook said: “There’s definitely a light at the end of the tunnel for local small businesses, but after years of being conservative and making cut backs, small businesses need to look to grow with the times. “The Chancellor has given small businesses a helping hand by capping business rates and freezing fuel duty rises and business owners we’ve been
speaking to are now looking carefully at the challenges and opportunities for growth.” Mr Brook said he was advising local entrepreneurs on the financial planning and reporting tools they need to access finance in order to sustain and grow their business and has put together some top tips. To have the best chance of success, firms should work with their advisers
to produce a clear business plan and cashflow forecast backed up by reliable evidence and a good demonstration of skills. Said Mr Brook: “Banks will expect to take some form of security and see at least 30% of your own money injected into the proposal - if you do not have security available, enquire about the Enterprise Finance Guarantee Scheme.”
Kirklees firms can be top of the class BUSINESSES across Kirklees are being uged to sign up to a nationwide programme overseen by Prince Charles to help young people gain the right skills to enter the job market. Business Class, run by the charity Business in the Community (BITC), has been designed to bring together companies and schools in some of the UK’s most deprived areas. The aim of the initiative is for businesses to support schools in both the classroom and at management level by providing their corporate expertise, mentoring pupils, supplying volunteers and creating inspirational experiences for students. To date, Huddersfield-based paving stone supplier Marshalls plc, which also has operations in Elland and Brighouse, has partnered with Almondbury High School and Specialist Language College. Mary-Jo Daly, assistant head teacher of curriculum at Almondbury High School, said: “It is vitally important that we prepare students for the real world of work. “To do this, we need businesses to actively engage in schools, raise aspirations and help students understand and focus on what is needed to get a job and keep it. Business class provides that focus.” Chris Harrop, Group Marketing Director at Marshalls, plc said: “I am delighted that we are now partnered with Almondbury High School – the first Business Class partnership in Huddersfield. “We’re already working with business studies students on a module about our company.” Liz Needleman, area director of BITC England East, said: “Research highlights that 30% of UK employers attribute lack of skills in the workforce to difficulties when filling entry-level vacancies. “The programme enables young people to acquire the skills employers need and provides a framework for powerful strategic collaborations between schools and local businesses.” Business Class is a government-endorsed programme, created and run by BITC which provides a systematic framework for businesses to support young people facing social disadvantage by forming long-term partnerships with schools. There are currently 340 Business Class partnerships across the UK and the aim is to build 500 partnerships by 2015 which will have a positive impact on the lives of over 75,000 young people. To find out more contact Julie Cullen at Julie.cullen@bitc.org. uk or call 0113 2058200
7
HUDDERSFIELD EXAMINER TUESDAY, FEBRUARY 25, 2014
KIRKLEES BUSINESS NEWS
Maintenance move boosts employment A CONSTRUCTION company is reaping the rewards for making an astute move to counter the worst effects of the recessinon. Huddersfield-based specialist commercial glazing contractor Dortech set up Dortech Maintenance in 2012 to work directly with building owners, property managers, builders and refurbishment contractors to provide a high-class commercial glazing maintenance service. The move came at a time when the recession claimed a number of high-perofile casualties among sub-contractors in the construction industry. Dortech’s directors recognised the likely longevity of the recession and the impact it would have on volumes and margins. The aim was to utilise core skills developed over 20 years of trading – but lessen the reliance on the new build construction market. Since then, the Dortech Maintenance team has been involved in projects ranging in location from Edinburgh to Swindon with values from £250 to £250,000 – with the division receiving positive customer feedback and repeat business. Dortech, based at Fieldhouse Business Park, Old Fieldhouse Lane, has invested in the maintenance division to provide new vehicles, uniforms, tools, training
“We have spent a lot of time selecting and training the very best individuals for this venture – people who care about what they are doing, communicate well and put the needs of our customers first.” Dortech Maintenance recorded turnover exceeding £750,000 in 2013 and expects this to double during 2014. Further plans for growth and
investment are being developed by the management team which will lead to further employment opportunities for local people during the year. The division also expects further growth from Dortech’s online retail business, Dortech Direct, which has now grown to be one of the largest online glazing consumables suppliers in the UK.
‘Novel’ marketing suite puts focus on future A COMPANY making furniture panels and components is marking 100 years of history in style. Elland-based Decorative Panels commissioned Leeds-based exhibition display specialist Sharman Shaw to design and furnish a twostorey office space at the Lowfields site to create a novel marketing suite. Sharman Shaw designed an innovative and interactive lower floor to be used for hospitality and as a meeting space with a dedicated “walk through” heritage area, conveying the family business’ 100-year history. Sharman Shaw has previously designed and built exhibition stands for Decorative Panels, which moved to Elland from Huddersfield more than two years ago after securing £10m of investment to set up a state-of-the-art manufacturing facility at Lowfields Business Park. The firm also spent £3.5m on new equipment. The company is now one of the largest pressed panel, foil laminators and component suppliers in
Seminar focuses on housing issues PROPERTY experts got together to debate the realities of residential development in Yorkshire. A year on from Prime Minister David Cameron’s call for more homes to be built, real estate services firm DTZ in partnership with Walker Morris and the Homes and Communities Agency hosted a seminar in Leeds to examine residential development viability in the Yorkshire region. The seminar reported on market conditions, the latest practice of viability in the planning process, the legal implications of changes in planning legislation and the public sector tools available to assist the delivery of residential development.
The event was attended by 40 professionals who heard the latest thinking on various topics. Presentations from DTZ’s Philip Roebuck and Jenny Purple focused on the residential market context and how the market for residential land is changing in Yorkshire while Stephen Miles, discussed viability in planning - the principles, applications and lessons. Chris Slater and James Garbett, of Walker Morris, gave a legal perspective on Community Infrastructure Levy (CIL) while Chris Kwasniewski, from the Homes and Communities Agency, explained its evolving role in supporting residential development.
Chartered status brings its rewards
■■ Dortech Maintenance is growing from strength to strength
and employment opportunities. Four new posts have been created in the company for maintenance engineers – one of whom is former Huddersfield Giants Rugby League star Paul Reilly Jnr who is due to start with the company this month. Dortech Maintenance manager Mark Weavill said: “It’s very much about people and having the right attitude.
property
the UK. It also has a furniture business on Teeside supplying flat pack furniture in large volume to high street retailers. Simon Jones, senior project director at Sharman Shaw, said: “This project has been incredible to work on, especially using the client’s own materials in everything we constructed in order to showcase the versatility and wide range of uses their products have and display them in a compelling and interesting way.” Decorative Panels traces its origins to 1907. Over the years, it evolved from a cabinetmaker and coffin manufacturer to a group with five factories operating in the furniture and allied industries. The group bought the former Carrington Wire factory at Lowfields Business Park, Elland, in January, 2011, and refurbished the 175,000sq ft factory to provide a production facility for its components business, which were previously operating from smaller ■■ Images depicting the new hospitality and meeting area at the Lowpremises in Oakes and Long- fields, Elland, premises of Decorative panels wood.
Chartered property professionals across the North earn an average of £47,833 a year – £11,930 more than their unqualified counterparts, according to new research from the Royal Institution of Chartered Surveyors and Macdonald & Company. With overall average annual earnings in the UK coming in at £27,000 last year, those operating in the property sector are paid significantly more for the service they provide. The survey found chartered property professionals were paid an average of £47,833 compared with £35,903 – or a premium of nearly 25%. On a national level, the average salary for a chartered property professional registered at £53,047, a pre-
mium of more than £8,000 on their non-qualified counterparts. London topped the table at an average £65,618. while Northern Ireland was last at £40,240. There are many ways to become a chartered property professional with RICS. Many enter the profession via a university degree and some who already work in the industry can also apply for membership. Jennifer Welch, RICS regional director in the North and Midlands, said: “Given the economic climate we’ve been operating under for such a long time, it’s extremely positive to see that those who get ahead in property by becoming chartered and putting their advanced expertise into practice are well rewarded.”
Free workshops stress need for safety working at heights FREE workshops covering safety issues when working at height have been organised for builders, roofers and scaffolding contractors. Astra Training Group, headed by Honley-based director Mick Aston, will stage the workshops from 7.30am to 12.30pm on Tuesday, March 4, at its training centre at Junction 38 Business Park in Barnsley. The event will look at the latest information regarding training and
industry best practices while working at height, new guidance for the scaffolding industry, the recently-released low level access product standard and information on courses. A short workshop will look at how to organise training and the grants and funding available to help support companies in their training needs. The event is supported by the CITB and the South Yorkshire Construction Training Group.
8
TUESDAY, FEBRUARY 25, 2014 HUDDERSFIELD EXAMINER
KIRKLEES BUSINESS NEWS Adam Critchley
New challenge
movers and shakers
Design team lands a second accolade By HENRYK ZIENTEK Business Reporter henryk.zientek@examiner.co.uk
D E W S B U R Y- b a sed healthcare furniture manufacturer Shackletons has expanded its customer service department by appointing Adam Critchley as a lead project manager. Using his previous career in IT systems management, Mr Critchley (pictured) will be responsible for the smooth running of the company’s large customer contracts to ensure that delivery and installation expectations are met. He said: “I’m really pleased to be joining Shackletons and look forward to working on fresh challenges within
this rapidly expanding company.” Jason Bloom, national sales manager, said: “Meeting the expectations of our customer requirements is paramount. We’re looking forward to working with Adam to further our service excellence and first class customer experience.” Shackletons, which has its head office and trade showroom at Weavibng Lane in Dewsbury and a retail showroom in Batley, is billed as the UK’s leading design and manufacturer of specialist contract furniture for the healthcare sector.
Food and drink FORMER Huddersfield town centre manager Cathy Burger is bringing her expertise as an events organiser to a new level. Cathy (pictured), who helped turn the Huddersfield Food and Drink Festival from a 10-stall market to the largest event of its kind in the north – attracting more than 150,000 visitors in 2013 – has formed events consultancy Food Festivals Ltd. The consultancy now works with public and private sector clients to deliver successful events – managing everything from health and safety to road closures, site logistics to publicity and marketing. As town centre manager in Huddersfield, she was involved in various events and initiatives such as the Festival of Light food and drink market, plant sales, the refreshment area at the Mumford and Sons music concert, actor Patrick Stewart’s attendance at the Huddersfield’s Christmas lights switch-on and the Dis-
A DESIGN company in Huddersfield has completed an awards double. The Engine Room, based at the Media Centre in Northumberland Street, was presented with its second consecutive Design Effectiveness Award in London. The trophy was awarded for the 2012 rebrand for national budget gym chain Xercise4Less. The project, which contributed to an increase in turnover of 120% in just six months, supported Xercise4Less in positioning its brand alongside supermarket giant Tesco in a recent deal which saw the award-winning chain open its first gym within a Tesco store. Jon Wright, chief executive officer at Xercise4Less said, “We didn’t anticipate the new brand making an impact so quickly. “Our new membership sign-ups grew on an average of 70% within the first year of rolling out the new brand and we are now projecting for over 100 clubs to be open across the UK by 2016.” The trophy was presented to Mr Wright and the Engine Room team at the annual Design Effectiveness Awards, hosted by the Design Business Association (DBA) and held at the Tobacco Dock in London The DBA is the trade association for design in the UK that builds the bridge between designers and businesses. The awards use commercial data as key judging criteria and aim to set the gold standard for commercial success within the design industry. The ceremony, hosted by BBC Radio 4’s Simon Jack, saw hundreds of the top design heads from across the world that came together to celebrate these impacts, recognising award-winning projects from a range of successful sectors across the UK.
■■ The Engine Room team join Jon Wright, of Xercise4Less, at the Design Effectiveness Awards
The Engine Room, which has won three new client contacts and already taken on an additional two staff in 2014, saw a significant growth during 2012-2013. Darren Evans, design director said, “The Design Effectiveness Awards really is a benchmark for us now. “We want to give our clients more than just good design; we want to give them great design, which delivers real results that can be clearly measured. “Xercise4Less hase shot to success with a brand which clearly communicates to the
consumer and finally gives them a real positioning in the market.” As aresult of the strong brand bringing the gym chain to life, it has been referred to as “The People’s Gym” – a tag that has stuck and is continuing to help differentiate the brand in a very competitive market. Other award-winning projects at the event includes ones for major brands Gressingham Foods, Ocado and Marks & Spencer. The Engine Room Design won its first Design Effectives Award in 2013 for a rebrand for a local accountancy firm.
Meet a company in total control! cover Huddersfield initiative. In addition to full event management, Cathy also works with clients on a consultancy basis, offering advice and guidance in the early planning stages of an event. She said: “Food and drink festivals have really become a passion for me and it is great to not only see local businesses benefit, but the vibrancy and vitality that it brings into an area can have a huge impact. I’m looking forward to working with other businesses and local authorities to put a food and drink festival firmly on their yearly events calendar!”
A CONTROL systems specialist has become the second winner of a new award. Elland-based Control House is the latest recipient of the Shooting Star award run by Huddersfield Town in tandem with club partner Total Dilapidations Services. Each month, Town commercial director Sean Jarvis, TDS managing director Chris Lee and Town manager Mark Robins, select a business that is making a difference in the area to receive the accolade. The award judges visited Control House to present the award to directors Paul and Claire Summerskill. As well as the award, the couple receive tickets for the prestigious Spring Partners Suite for a forthcoming Town match. The award comes on the back of a great month for Control House, which was awarded investment
■■ Huddersfield Town manager Mark Robins (right) presents the Shooting Star award to Paul Summerskill, of Control House, with (from left) Sean Jarvis, Claire Summerskill, Andrew Ward and Chris Lee
from Finance Yorkshire. Control House, which is celebrating its 10th year, beat stiff competition from a number of shortlisted companies to land the
Shooting Star award. Mark also presented two matchday tickets to Control House employee and Town fan Ayrton Brown as a reward for his hard work.
Sean said: “The Shooting Star award has been set up to recognise excellence in business throughout our area and Control House has enjoyed a fantastic end to 2013, gaining significant investment from Finance Yorkshire. “That investment came about thanks to the result of their hard work and will be great for job creation and new business opportunities for the company.” Christopher said: “Once again, December’s winner has epitomised the Shooting Star award. Control House’s growth in a difficult market from a cellar in Halifax to supplying control gear for Airbus and the London Olympics is an amazing story. Their commitment to both clients and members of staff make them truly just recipients of the award. “Control House have generated an envious team spirit which is a clear part of their success and we wish them all the best.”