JP MORGAN Fresh star t for 2012
RACHEL FOSTER Home for Christmas!
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KIRKLEES BUSINESS NEWS The business NEWSpaper for Kirklees
Funding boost for creative company A NEW enterprise which supports creative decision-making has received crucial financial support to help the company get off the ground. Veracitix, based at the Media Centre in Huddersfield, is the brainchild of serial entrepreneurs Ian Pringle and David Graninetti. The company is developing a new online platform technology to help businesses from a variety of sectors turn their ideas into a reality. Initially targeting sales and marketing professionals, the technology will be used on PCs, laptops, tablets and smart phones. A prototype has been created and Veracitix will be working with key development partners to get the service to market. To support the development of the company Finance Yorkshire has provided a seedcorn investment. Veracitix will use the funding to support the recruitment of a senior management team. Mr Pringle said: “The funding from Finance Yorkshire will help us get the
company rolling. It will enable us to recruit key people such as a chairman, business development director and chief operating officer, before we pursue another round of funding into the company. “We are a very early stage business and we are currently working on getting the prototype into a position where we can take it to market. “We are aiming for this to be the middle of 2012, so the support from Finance Yorkshire has come at a crucial stage.” Graham Davies, investment manager from Finance Yorkshire, said: “Both Ian and David have a successful history in technology innovation and have established a number of start-up companies in this sector. They know the process involved in creating a successful fledgling company and we are pleased to support their development with this finance deal. “As they are a new start-up with a high growth potential, Veracitix fitted the exact profile we are looking to invest in from Finance Yorkshire’s
He said: “Local businesses must submit their tax returns by January 31 or face a fixed penalty of £100 – even if they have no tax to pay or have paid the tax they owe. “If they’re three months late, an additional £10 a day penalty will apply, up to a maximum of £900.
Firm hits high point A LAW firm has ended 2011 in style – with a clutch of awards. Ramsdens, with offices in Huddersfield, Halifax, Holmfirth, Slaithwaite, Elland, Dewsbury and Mirfield, was named Best Commercial Litigation, Commercial Property and Employment Law Firm of the Year for the North East in the Dealmakers Annual Awards.
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■ SUPPORT: Veracitix directors (from left) David Graninetti, Ian Pringle and Juliann Tilley with Graham Davies, of Finance Yorkshire
Seedcorn Fund. We see this being the start of big things for the business.” Finance Yorkshire helps a range of small and medium-sized firms to meet
their funding requirements for growth and development through seedcorn, loan and equity linked investments, ranging from £15,000 to £2m.
After six months, a further £300 or 5% of the tax due will be imposed, whichever is the higher figure. After 12 months a further £300 or 5% penalty applies and in very serious cases, this could even be 100% of the tax. “Missing the deadline means you needlessly lose a significant
amount of your hard-earned income to the taxman.” Mr Brook, whose business is based at Lockwood Road, said: “Christmas and New Year can be a hectic time for small businesses in the district, but we’re urging local businesses to start tackling the returns now and enjoy peace of mind.”
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Time to make a New Year’s resolution BUSINESSES should make an early New Year’s resolution to avoid hefty fines, said a local tax specialist. Small firms across Kirklees should ensure they complete their self assessment tax returns now, said Nick Brook, who runs Lockwood-based TaxAssist Accountants.
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HUDDERSFIELD marketing specialist The Sharp Agency took a coveted silver award in the category for Best Consumer Direct Mail Campaign at the 2011 Direct Marketing Awards in London. ■ ALERT: Nick Brook
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Solicitors for business inYorkshire www.chadwicklawrence.co.uk Huddersfield | Wakefield | Halifax | Leeds
KIRKLEES BUSINESS NEWS
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Happy returns for Dragon’s Den duo! A KIRKLEES couple are preparing to make their return to hit BBC2 show Dragons’ Den this week after securing an investment of £80,000 earlier this year. Liz and Alan Colleran, owners of Raskelf, the Dewsbury-based memory foam product specialist, will feature on Dragons’ Den: The Hilary Devey Story at 8pm on Thursday. Hilary invested in the business back in the summer after being impressed with Liz and Alan’s pitch for their award-winning Duvalay product, a zip-up memory foam mattress and duvet combo aimed at the caravan and motor home sector. The special show focuses on Hilary’s rise to Dragons’ Den stardom and catches up with some of the entrepreneurs that she backed in the last series. Liz and Alan where filmed attending a meeting with Hilary at Virgin Atlantic’s headquarters in Crawley to discuss potential business opportunities. The visit also involved a video conference with Sir Richard Branson. Commenting on the forthcoming appearance, Liz said: “2011 has been an amazing year for Raskelf and being invited back on to Dragons’ Den is the perfect way to end it. “Since our initial appearance, we have been working alongside Hilary and her team to look at new ways of increasing our presence in the market and making Raskelf and Duvalay household names. “As this new show demonstrates, Hilary has certainly created new opportunities for us and we are ■ COMFORT ZONE: Liz and Alan Colleran, of Dewsbury7-based Raskelf Memory Foam Ltd looking forward to what 2012 holds for our styles before perfecting the Raskelf Portable Memory caravans and the home. business.” Early in 2005, the company took the ingenious step Foam mattress topper. Liz and Alan began their search for a suitable The business, which began in the front room of of coupling the portable memory foam toppers with “mattress topper” back in 2003 – after enduring years of back pain trying to get a comfortable night’s sleep their home, now occupies premises at Staincliffe a shaped duvet to create the Duvalay, for which the Mills in Dewsbury and variations on the mattress company now owns the patent. while caravanning. They tried numerous materials, thicknesses and topper have been developed for use in boats, motor
AIM listings set to increase THE number of companies listed on the Alternative Investment Market is set to increase in the first half of 2012 – for the first time since 2007, according to analysis by business advice firm Deloitte. The significant shake-out of companies from the market over recent years appears to be nearing completion as the level of de-listings has reached a six year low in 2011. Rob Seldon, capital markets partner at Deloitte in Yorkshire, said: “Since the number of
companies on AIM peaked at 1,694 at the end of 2007, we have seen an almost non-stop decline in numbers to 1,150 companies listed as at 30 November, 2011 – a reduction of about one third. “Over this time, listed companies have departed the market in droves, either voluntarily, if they don’t perceive ongoing value in their listed status, or involuntarily, generally due to their financial circumstances in these difficult economic times. “However, to the end of
November 2011 the total number of de-listings was just 131. This is a fall of 55% compared with the peak recorded in 2009, when 293 companies delisted from the market, and is the lowest level of de-listings since 2005” Mr Seldon said the nature of AIM meant there was significant “churn” as companies joined during an expansion phase, used AIM to build their profile and access growth capital, then left to join the FTSE listings or were taken over by a larger
player in the same industry. He said: “For several years, a common refrain of AIM commentators has been that there are too many companies of dubious quality on the market. This has been perceived as the consequence of the AIM boom between 2005 and 2007 when a number of unsuitable companies completed listings. However, we believe that natural churn since then means that AIM is effectively much changed now and should be looked at afresh.”
■ GROWTH: Rob Seldon, capital markets partner at Deloitte
Combat crime during the holidays KIRKLEES businesses have been warned about the increased risk of crime during the festive season. Bluefin Insurance, which has offices in Cleckheaton, said businesses were at their most at his time of year – when many offices are empty or when there are increased stock levels and extra cash on the premises. A spokesman said: “Crime during the holiday season can have a devastating impact on a business and its employees.
“With many offices left empty for a full week over the Christmas break, premises become prime targets for criminals. “It may seem like common sense, but we are urging all businesses to take sensible precautions when leaving their premises unmanned as well as checking that they have the appropriate insurance cover should an incident occur.” The spokesman said firms should invest in lights which can be left on a
timer to avoid the office looking unmanned; check the CCTV camera is functioning and switched on to capture images of any intruders; ensure the last person to leave the premises before the holiday checks all windows, doors and sensors; appoint trusted staff members to be additional key holders over the holiday in case an incident occurs when the main key holder is unavailable; and have someone local call in at the office a over the Christmas week to ensure no
problems have arisen. Said the spokesman: “Another cause of winter problems for businesses can be the effects of bad weather when premises are left unmanned over the Christmas period. Burst pipes can be a major headache and cause extensive damage. “Businesses can minimise the risk of frozen or burst pipes using simple preventative measures such as lagging pipes with protective foam or using a timed central heating system.”
Page 2 Difficulties mount for digital and design DIGITAL and design agencies are facing the fallout of the UK’s faltering economic recovery, according to a survey today. The Design Industry Voices survey of almost 500 agency staff paints a picture of the squeeze being experienced by small firms in the private sector as public sector budget cuts begin to bite and economic confidence fails to recover. It found that 85% of firms have clients who expect more work from agencies for less money, 71% say clients more work in pitches for free and(82%) say client budgets have been reduced. More than half of agencies have cut permanent staff numbers and are making more use of freelancers while more than two-fifths are making greater use of unpaid interns. The survey by business transformation specialist Fairley & Associates also showed that 58% of staff working for design and digital agencies intend to change job in the next 12 months while more than a third have been with their agency less than a year. People working in digital and design agencies say they are feeling the brunt of the long, slow recovery. Fewer than one in five respondents consider that their agency is performing “very well” in terms of helping employees to manage stress, rewarding people for extra effort or providing “appropriate” workloads. Rachel Fairley, lead author of the new research and managing director of Fairley & Associates, said: “Digital and design agencies appear to be running on empty. “Clients expect more work for less money to make up for budget cuts. Staff have disengaged – they are overworked, undervalued, and fed up of poor leadership. More of them than ever intend to change job within twelve months with far-reaching consequences in this uncertain economic climate.”
KIRKLEES BUSINESS NEWS
profile
Rachel Foster
Life on the home front LIFE on the home front is fine for Rachel Foster. The owner of Hunters Huddersfield estate agency says business is brisk – despite the general economic slump and the impact that has had on the housing market. With 16 years experience in the property field, Rachel has seen several peaks and troughs and agrees that the industry is under pressure. But she says: “The market has been quite stable for the past few years – and there is still a market out there. “As long as vendors price their properties correctly and people have the motivation, sales can be achieved. “Where the vendor is unable to reduce the asking price because of the price they face paying on their next property, we have been able to agree a lot of sales by negotiating chains, both up and down.” Rachel agrees: “The first-time buyer market is tough – which is why our lettings business is booming at the moment. “Potential first-time buyers who cannot get a mortgage are seeking to rent. “Our problem is that there aren’t enough landlords out there. Property lettings go so quickly.” Rachel says: “People are worried about job security. People are selling and moving into rented properties rather than committing themselves to a mortgage. But there is a shortage of property.” Rachel believes more effort should be made to get derelict, run-down or secondhand properties back into good condition with government funding to provide affordable housing – rather than looking to build on green space. Meanwhile, Hunters is enjoying “steady business”. She says: “You will get the one-off property where 20 people want to buy and there are areas of Huddersfield which are always popular, such
as Edgerton, Lindley, Shepley and Holme Valley. “Most of our business does come through recommendation. People come back to us time and again. “That’s nice because it means that although business is tough, you know you must be doing something right! “It helps that I have a fantastic team, who have been with me for years and are incredibly loyal and hardworking.” Rachel adds: “I am genuinely looking forward to the new year, which I expect to be another year of steady business.” Rachel, who grew up in Hopton, has been an estate agent for the past 16 years. She insists that she got into the profession “by accident” but adds: “I have never regretted it and I have never looked back. I thoroughly enjoy my work – even in the current climate!” She attended Castle Hall School and Mirfield High School, but admits that during her school days she did not know what career to pursue. She began work in sales and
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Role: Owner Age: 38 Family: Daughter Ashleigh, 16, and son Matthew, 15 Holidays: Barbados, Florida and ski-ing in the French Alps Car: Audi A5 convertible First job: Office administrator for a firm of solicitors Best thing about job: I find that helping people is very rewarding Worst thing about job: Long hours Business tip: Do what you say you are going to do and keep your customers’ interests at heart
marketing, working firstly for textile firm J H Walker before switching from a traditional industry to the cutting-edge world of IT. She got a job with a local estate agency through the advice of a friend and began working part-time as a negotiator before progressing to take exams in aspects of the business such as valuation and law. For some years, Rachel worked for an agency in Mirfield, covering that office and a branch office in Heckmondwike. “I loved the work,” she says. “I loved meeting people and being able genuinely to help them. “Moving house is so stressful and people can get very emotional about it. I try to look at the needs of the vendors and the buyers. They are never just a house number to me. Everyone is different. “Once I got a taste for it, my ambition was to have my own business.” A member of the National Association of Estate Agents, Rachel owns Hunters Huddersfield, with offices at John
■ ENJOYING HER WORK: Rachel Foster, who owns estate agency Hunters Huddersfield, says she’s never regretted joining the industry
William Street, under a franchise system which provides support for her and her team in areas such as marketing and IT. The agency has also undergone a rebrand in recent weeks. It follows Hunters’ acquisition of Countrywide Franchising Ltd, which traded as Bairstow Eves Estate Agents – a deal which makes Hunters the single largest independent estate agency franchise operator with a network of over 190 branches. The re-brand also brings all the new operations under the Hunters umbrella, with company branding and technology systems put into place. Hunters was founded in 1992 in York and boasts interior designer Linda Barker as an ambassador for the brand. The support offered under the franchise system means Rachel can get on with focusing on her main task – buying and selling houses. “Running my own business is everything I expected it to be,” she says. “I thoroughly enjoy coming to work. I am lucky in that respect, Not everyone goes to work enjoying what they do.” Rachel works six days a week and admits to being “pretty much a workaholic”. As a result, she says: “I make the most of my spare time. I like running and I like socialising and spending time with family and friends. I’m also heavily into modern art. I buy a few pieces and I enjoy visiting galleries. “I like walking – there’s some lovely countryside around Hopton. “I also managed to do the Three Peaks twice in one year – once for charity. I didn’t do any training particularly. “I’d like to do the London Marathon, but that would demand lots of training and I don’t have the time at the moment!”
HENRYK ZIENTEK
Hunters Huddersfield Work: Estate agency Site: John William Street, Huddersfield Phone: 01484 513777 Email: huddersfield @huntersnet.co.uk Web: www.huntersnet. co.uk
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SME directors ‘no better off’ DIRECTORS of small and medium-sized firms in the UK are no better off – and in some cases poorer – than they were five years ago. The surprising financial position of directors of SMEs – and the difference compared with the much-hyped FTSE 100 sector – is revealed in a survey of more than 3,200 jobs. The research, Directors’ Rewards, has been carried out by business information, software and services specialist Croner. It shows that the average 2011 annual pay for directors of small companies with a turnover below £5m a year has fallen by £5,000 from the level of £87,500 five years ago. In the past 12 months alone, their average pay has fallen by 15% – or over £14,000 – taking their total pay package to £82,500. In 2010 it was £96,568. Directors of larger organisations with a turnover of between £50m and £500m score marginally better with an increase of 2% over the past 12 months in average annual salaries to £174,287. Heads of medium-sized organisations with a turnover of between £5m and £50m fared best last year, although with a still modest 3% increase, taking their package to £128,699. Vivienne Copeland, of Croner, said: “Despite recent reports that FTSE 100 bosses have seen a 49% increase in their pay, our research clearly reveals this is not the case for the majority of directors in British boardrooms. “The average pay of all FTSE 350 directors more than doubled between 2000 and 2010. The financial position of people running small businesses is therefore a far cry from their much larger corporate counterparts.”
New look for firm’s website AN accountancy firm in Huddersfield has a whole new look online. Simpson Wood, with offices in Market Street, has launched a new website. Following months of planning and development, the new site aims to reflect the firm's current approach and help online visitors find relevant information quickly. The site also provides details of case studies and testimonials from clients. The company also has its own LinkedIn page with a Facebook page and a Blog to be launched in the near future. Danny McAllister who managed the relaunch, said: “We wanted to be able to cater for the increasing numbers of our clients and contacts who use digital media as their main method of communication. We also felt the site needed a makeover to reflect the kind of firm we are and the services we provide.”
KIRKLEES BUSIN
Conference call to firms KIRKLEES business leaders have been invited to attend a major conference – and join calls for the government to use its spring Budget to spur industrial-led growth. Local manufacturers are being urged to drive home the message when Chancellor George Osborne is speaker at the EEF National Manufacturing Conference in London on March 6. Business Secretary Vince Cable and Opposition leader Ed Miliband are also confirmed as keynote conference speakers. EEF chief executive Terry Scuoler said: “The timing of the conference, just ahead of the Budget, is absolutely critical. “It will be a powerful rally call to government to place manufacturing at the heart of its strategy for growth and to present a visionary Budget that bolsters economic recovery through bold measures to support industrial expansion and international trade. “Our conference theme is ‘Competitiveness in the Global Economy’ and it will be a rare opportunity for the country’s manufacturing leaders to gather together to challenge political decision makers on the issues that matter most, share best prac-
■ CHALLENGE: Terry Scuoler, chief executive of the EEF manufacturing group
tice, stimulate debate, solve problems, and gain industry insights and connections.” Delegates will debate issues such as UK manufacturing competitiveness, government policies to pro-
mote growth and support manufacturing and key areas such as tax, skills, regulation and energy. Go to www.manufacturing conference.co.uk
Late pay action needed A GROUP of business organisations have joined together to urge the Government to tackle the growing problem of late payment – in order to help small firms survive, grow and drive economic recovery. The industry bodies, including those representing UK-based suppliers, have written to Business Minister Mark Prisk demanding a plan of action to address late payment, which hits small firms’ cash flow. The group, which is supporting the Government’s new ‘Finance Fitness’ campaign, believes any plan to encourage better payment practices should ensure the EU Late Payment Directive – making 30-day payment terms mandatory in the absence of any specified or agreed payment terms – is brought forward to 2012 as originally stated. The group, led by the Forum of Private Business, also calls for a clampdown on large companies taking “prompt payment discounts” and imposing retrospective changes to payment terms and conditions that are not contractually agreed. The measures should also pledge to continue with the UK’s public sector 10-day and five-day payment initiatives and ensure they are
■ DEMAND: Business Minister Mark Prisk faces calls for measures to tackle late payment embraced by more local public sector bodies across the country and that prompt public sector payment is passed on down the supply chain. The group is calling for a strengthening of the Prompt Payment Code, including requesting businesses to sign up to the Code
and wants the Government to consider ways of making it an “opt out” rather than an “opt in” arrangement. It also wants rules to require FTSE companies to report more detailed information on their payment times. A spokesman for the Forum of Private Business said: “Under the principle of more open data, we should work towards a culture of more transparency and standardisation of financial information for firms and financial organisations, including credit rating agencies, in order to help small businesses better establish their creditworthiness and properly assess the payment credentials of companies with which they consider trading.” A survey by credit reference agency Graydon UK shows that 76% of respondents believe the Government is not doing enough to protect UK businesses from late payment. This is despite 51% reporting that the problem has become worse during the past year, 45% that it could threaten their ability to invest in their businesses and 20% that it could stop them trading.
Law firm caps a brilliant year
A LAW firm in Huddersfield has ended 2011 in style – with a clutch of awards. Ramsdens was named Best Commercial Litigation, Commercial Property and Employment Law Firm of the Year for North East England in the Dealmakers Annual Awards. The awards recognise a select number of leading professional firms for their individual areas of specialisation, within their geographical location. These awards recognise those organisations and advisors that have performed to exceptional levels during the most difficult period the global economy has experienced for decades. Paul Joyce (pictured), managing partner, said: “2011 has been a strong year for Ramsdens in a ver challenging legal and business market. “Our performance has gone from strength to strength in recent year and I’d like to thank our clients an staff for their contribution to our shared success.” Greg Dolan, head of commercial a Ramsdens, said: “We are delighte to have won this award and to be recognised as one of the leading firms in the North East. “We have a strong progressive team at Ramsdens committed to providing our clients with an outstanding responsive service an pragmatic, business focused advi aimed at securing our clients objectives as efficiently as possible. It is testament to that commitment that the team has be recognised in this way.” Ramsdens, which is based at Edgerton and has offices in Huddersfield, Halifax, Holmfirth, Slaithwaite, Elland, Dewsbury and Mirfield, has already been named Law Firm of the Year in the category for 11 to 30 partners at t Yorkshire Lawyers Awards and wa listed as a recommended firm in seven practice areas in the Legal 500.
Big boost for overseas sales
SMALL firms have made inroads into exporting, latest figures revea Average export turnover for small businesses rose by 42% between the second and third quarters of 2011, said The Cashflow Baromete a quarterly report from invoice an asset-based lender Venture Finance. Further export data suggests that the number of overseas customer has increased by 17% since the second quarter and has risen by 40% since the third quarter of 201
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Marketing resolutions PEOPLE. RESULTS. VALUE. THE KEY TO MARKETING SUCCESS JP Morgan MALL businesses often leave S marketing planning to the last minute and then are left scrambling to
attract customers when times are tough. The temptation is to just make it through 2011, have a Christmas break and think about 2012 later. But for most small businesses thinking about how they spend their marketing budget early will prevent costly errors in judgement. Here are my top hints about where you should be spending your budget in 2012: ● Make sure it can be measured or forget it. If you can’t measure it then don’t bother. You need to ensure you know what the return will be on your investment every time. Coupon deals seem like a good idea especially if you are a small business desperately trying to draw in new customers, but these deals are often very costly mistakes. They can tie up your stock or staff in a promotion that rarely results in repeat customers. Think carefully and plan ● Online presence is essential. More of us are looking online to buy or review things before we buy. Ensuring you have an online presence that is integrated is important. It is more than a
well functioning website. A website is the hub of your communication, but an online presence where your customers are is essential. If your customers are on Facebook then you need a presence there. If they are more of a LinkedIn crowd then go there. Wherever you decide to invest you need to commit to updating and providing information that will generate leads ● Map out the customer lifecycle of your ideal client or customer. By spending some time really thinking about your ideal customer and the problems that you solve for them you can make better decisions about where to spend your marketing budget. Every touch point with your customer is an opportunity. How can you be more useful to your customers? How can you provide some information to your customers to show you care and serve them better? This is money well spent ● Get some good marketing advice. If you are running your small business it is likely you already have some good ideas about what works to attract customers. Some of the best money spent should be on getting the right advice to plan your 2012 strategy so that you know it is based on sound reasoning.
JP Morgan is a senior account manager at Fantastic Media
Driving to a record A HUDDERSFIELD car dealer has reported another record-breaking year. Longley Park Motors, based at Paddock, has celebrated its 30th anniversary with its best-ever year for used car sales in 2011 – following record sales for new car sales in 2009 and 2010. John Waite, managing director of the KIA dealership, said a combination of stylish models and industry-leading warranty had given customers confidence to buy. He said: “What has made our new cars so popular with local drivers for the past three years is now proving an irresistible offer on our pre-owned cars too. “In 1981 when the business started, motoring and standards of manufacturing were a world apart from what they are now. “We could not have dreamed of the quality, technology and reliability we now offer. “Thirty years ago we set out to make buying a car both a satisfying and comfortable experience – and as long as I am in charge that will never change.”
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Fears over non-payment putting firms off exporting FEAR of not getting paid for goods and services is the biggest barrier to exporting, a survey had revealed. However the study by NatWest and RBS shows that 28% of non-exporting firms in Yorkshire and the North East are confident that their products and services would sell abroad. The Eurozone crisis hasn’t stopped businesses looking at Asia and emerging markets as attractive options – with 43% in Yorkshire and the North East claiming they see opportunities in these regions. But 52% of all UK businesses surveyed claim they are ill-informed of funds available to support export. NatWest and RBS are providing a free half-day consultation to advise exporters on various forms of payments available to them to successfully trade overseas. The event – Export 360 – will provide
a comprehensive review of their business and assessment of their day-to-day international arrangements. Experts will provide bespoke analysis of banking operations and offer solutions that could help maximise exporting potential. Aidene Walsh, head of UK Global Transaction Services at RBS, said: “Despite economic uncertainty, businesses are still hungry to trade overseas and 65% of them feel it is vital to economic recovery. “The lack of tools and knowledge are clearly a hindrance and we are here to help them to take a leap into the exporting market.” Companies can sign up to Export 360 by visiting www.natwest.com/export360 or www.rbs.co.uk/export360
Brussels popular with business fliers WEST Yorkshire’s major airport is celebrating 10 years of flying to Brussels. Executive from Leeds Bradford Airport joined colleagues at bmi Regional to mark the achievement. Since the launch of the route in November, 2001, more than 280,000 customers flown on the route. Steven Griffiths, business director at bmi
Regional, said, “I am very proud that we have served Brussels with our unique and stylish service for 10 years. “These two great cities are both important business and tourism centres and following our recent events held in both Leeds and Brussels it is great to see that the route is still as popular as ever.”
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KIRKLEES BUSINESS NEWS
Retail plans ‘still on hold’ SHOPPING centre development remains on hold, despite “encouraging noises” in the market, says a report. The newly-released Shopping Centre Development Pipeline from Colliers International, says that more than 34.2m sq ft of new shopping centre floorspace is planned – but only 1.4m sq ft is under construction. Land Securities is behind the UK’s largest live construction project, the £350m Trinity Leeds scheme, which is scheduled to open in spring 2013, providing 1m sq ft of retail and leisure. In 2011, 2.45m sq ft of shopping centre floorspace was completed. However, the total development pipeline has fallen by only 256,200 sq ft since October 2010. This drop of 0.7% is the lowest annual decline in the total shopping centre development pipeline in over five years and is the result of an increase in the amount of floorspace being added to the pipeline by way of new retail proposals or previously mothballed developments re-entering the fray. The report said: “Although it is positive news that many of these schemes are now being dusted down and reviewed, it is clear that it will be many years before these schemes actually come to fruition, if at all. “In total, only 4% of the shopping centre pipeline is classified as ‘under construction’. The majority – 53% – of new schemes are at the permission stage and a further 43% are yet to apply for or secure planning consent, meaning they are some way off execution.” Sarah Banfield, associate director at Colliers International, said: “Despite developers’ insistence that schemes are going ahead, in reality much of this floorspace is effectively still on hold until the finances can be agreed. “And even where funding is in place, in many instances there is now the issue of expired planning consents and CPOs (compulsory purchase orders) to overcome and the need to redesign proposals before schemes can get under way.”
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Consultant adds power to retailer
AN energy consultancy has teamed up with a leading retailer to help it improve energy efficiency at its eight UK stores. Brighouse-based Orchard Energy is working with furniture company Barker and Stonehouse. Rising overheads have prompted the retailer to look at a range of measures, including meter downgrading, forward purchasing of energy and microgeneration. Vince Lithgo, operations manager at Barker and Stonehouse, said the efficiency drive was designed to counteract the rising cost of business overheads, particularly energy bills. “Businesses aren’t immune from the rising energy costs that are hitting domestic users at the moment and we’re determined to find ways to reduce the impact without passing the cost on to our customers,” he said. The independent family-run firm has been working with Orchard Energy to streamline energy contract renewals at each site and negotiate with suppliers. “The measures are helping us manage costs and protect our budgets from gas and electricity price fluctuations in what is currently a very volatile energy market,” said Mr Lithgo. “We are now working with Orchard on other efficiency measures, including meter downgrading and as a business we’re looking into green alternatives such as solar power.” Peter Bicchiri, of Orchard Energy, said multiple site retailers often spent too much on energy simply by having the wrong
■ LIGHT WORK: Peter Bicchiri, left, of Orchard Energy, with Vince Lithgo, operations manager at Barker and Stonehouse, which has drafted in the energy consultancy to help tackle rising overheads
size of meter fitted. “Retail sites commonly have half-hourly metres which are bigger and more expensive than they need,” he said.
“We’ve already completed meter downgrades at some Barker and Stonehouse sites and at others we have been able to cap gas meters to keep down costs.”
Spending cuts hit building firms ALMOST 90% of UK construction firms expect public spending cuts to act as a drag on operating conditions, according to employers’ body the CBI. The first CBI/Speedy Services national construction survey also showed that two-thirds of building sector firms see the UK’s planning system as an obstacle to business, while four out of 10 have seen a worsening in the availability of finance over the past year. However, it said the Chancellor’s autumn statement contained encouraging news for the sector, including details of the Funded Construction Pipeline and infrastructure spending. The CBI said the survey portrayed a sector well-placed to boost skills and create jobs – with more than three-quarters of firms planning to maintain or increase spending
levels on training and investment in apprentices in the coming year. Of the 635 construction leaders who took part, 40% said the availability of finance had deteriorated in the past 12 months, 52% reported no change, and only 8% said they had seen an improvement – resulting in a negative balance of minus 32%. Firms expect credit conditions to deteriorate further in the next 12 months, with a negative balance of minus 20%. Over the next five years, 86% of firms expect public spending cuts to have a significant or very significant impact on their business while 24% expect business to decline in 2012. While 42% predict growth, the vast majority of them anticipate growth will be weak. The UK’s planning system is seen as a barrier to their operations by nearly two-thirds
of survey respondents. Asked about the most significant barriers to house building in particular in the past year, half of respondents identified mortgage availability with 17% blaming consumer confidence, 14% business finance and 10% planning. Dr Neil Bentley, CBI deputy director-general, said: “Construction firms are facing tough operating conditions and they are clear about what can be done to give the sector a boost. Firms want certainty and they need guaranteed infrastructure spending to deliver it. “Now the sector has grounds for optimism. The Chancellor’s autumn statement outlined the Construction Pipeline and increased the Government’s commitment to housing, and spending on roads, rail, energy and other crucial infrastructure.”
Knight Frank completes ‘very positive’ year PROPERTY consultancy Knight Frank has advised on office acquisitions totalling 260,000 sq ft in Yorkshire during 2011. Key deals included stockbrokers Redmayne Bentley moving into Bond Court, Leeds; TP Orthodontics buying their premises in Fountain Court, Morley; and wealth advisers Towry relocating to Highcross’ Toronto Square in central Leeds. Others included South Yorkshire Police
Authority moving to Carbrook in Meadowhall in Sheffield; Plusnet moving to The Balance in Sheffield; and Black Solicitors taking space in Town Centre House in Leeds. Ed Harrowsmith, of Knight Frank, said: “This has been a very positive year for both our office agency teams in Yorkshire. “We have been involved in some very significant deals, completed in challenging conditions for the property industry.
“All underline that deals can be done provided the price, the premises and the location are right.” The agency said headline rents were expected to see limited growth over the next 12 months. Incentive levels were expected to continue to harden – putting upward pressure on net effective rents as tenants compete against each other for increasingly limited Grade A stock.
KIRKLEES BUSINESS NEWS
2011 review
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Banks, shops and the euro in a year of crisis HE meltdown in the eurozone T was felt by households and businesses across Britain as
the nation faced up to what Bank of England governor Sir Mervyn King called the most serious financial crisis “since the 1930s, if not ever”. Here is a look back at a dramatic year in which turmoil returned to financial markets. ● January – Retailers were braced for a New Year hangover after VAT rose from 17.5% to 20% under the Chancellor’s austerity measures. Shoppers flocked to the high street to make the most of the sales and last-minute purchases ahead of the increase. Dixons, HMV and Next reported lacklustre sales for the festive period, although there were better performances from Marks & Spencer, Sainsbury’s and Morrisons. Barclays chief executive Bob Diamond pledged to show restraint over banker pay, but told MPs that big bonuses were here to stay if the sector was to succeed. ● February – Britain’s pharmaceutical industry was dealt a major blow after drugs giant Pfizer announced the closure of its leading UK research centre at Sandwich, Kent. The UK’s biggest energy supplier unveiled a record profit haul just weeks after it hiked bills amid the coldest winter in 100 years. BP suffered its first annual loss in nearly two decades after revealing that the Gulf of Mexico oil spill will cost it more than £25.2bn. The energy giant recorded a full-year loss of £3.1bn, but chief executive Bob Dudley said the embattled firm would resume quarterly dividend payments after they were suspended in the summer. ● March – Damage caused by Japan’s massive earthquake and tsunami sparked fears of a major slowdown in the world’s third largest economy, triggering a slump for shares worldwide. London’s FTSE 100 Index fell for six sessions in a row to its lowest level in four months. The UK’s gas and electricity suppliers were accused by energy watchdog Ofgem of failing “to play it straight” with consumers. Ofgem said for the first time it had evidence the “big six” firms had hiked bills in response to rising costs faster than they reduced them when expenses fell. Thousands of John Lewis partners celebrated a bonus windfall worth nearly two months’ pay after the employee-owned firm announced a 20% rise in pre-tax profits to £367.9m. ● April – UK banking giants should protect their retail arms from risky investment banking and put more capital aside to prevent future taxpayer bail-outs, the Independent Commission on Banking said in its interim report.
■ MAIN EVENTS: Barclays chief executive Bob Diamond (left), Lloyds Banking Group chief Antonio Horta-Osorio (centre) and Chancellor George Osborne were among key figures during a turbulent year for business
As well as calling for retail business to be ring-fenced from so-called “casino” banking to protect savers and borrowers in the event of a future crisis, Lloyds Banking Group should also go further to address competition concerns and sell off more than the 600 branches it has currently agreed with Europe. Banks were under pressure to settle payment protection insurance mis-selling claims after a High Court ruling left them with a potential £4.5bn compensation bill. Marks & Spencer announced plans to return to France, a decade after it pulled out of the country. The retailer will launch a website in France and open a three-storey outlet on the Champs Elysees in Paris. ● May – Mothercare dealt a fresh blow to the UK high street as it unveiled plans to close 110 outlets and focus on out-of-town superstores. Russian billionaire Alexander Mamut vowed to secure a “dynamic future” for Waterstone’s after striking a £53m deal to buy the book shop from ailing HMV. BP’s hopes of making the Arctic a key part of its recovery plan were dealt a major blow by the failure of a share swap and exploration deal with Russian oil group Rosneft. ● June – The Government came under pressure to help end uncertainty over the future of thousands of elderly residents and staff at Britain’s largest care homes group Southern Cross. Lloyds Banking Group unveiled plans to slash a further 15,000 jobs by 2014 in a bid to save £1.5bn a year. The huge round of job cuts was unveiled by new chief executive Antonio Horta-Osorio as part of his s t rat e g i c rev i ew fo r t h e t a xpayer-backed lender. Veteran bookmaker Fred Done secured horseracing’s ultimate prize
by agreeing a £265m deal to buy the Tote from the Government. ● July – Rupert Murdoch’s News Corporation withdrew its bid for satellite broadcaster BSkyB in the wake of the phone-hacking scandal. The owner of 39% of BSkyB said continuing with the deal would be too difficult in the climate, but that it planned to remain a long-term shareholder. British manufacturing suffered a major blow when the last UK train-making company Bombardier announced more than 1,400 job losses after failing to secure a multi million-pound order for 1,200 new train carriages as part of the £6bn Thameslink main line rail project. Airport operator BAA was told it must sell two of its UK airports after a ruling by the Competition Commission was upheld.
● August – Banking giant HSBC said it would cut up to 30,000 jobs over the next two years in a cull set to impact more than 10% of its workforce. The efficiency drive, which will save the bank up to £2.1bn a year, was the latest within an industry battling to cope with reduced levels of activity. L o n d o n’s F T S E 1 0 0 I n d ex tumbled some 10% in two weeks amid panic that the eurozone will be crushed under the weight of its debts and the US will lead the world back into recession. Cambridge-based A technology company Autonomy, set up in 1996, agreed to be taken over by Hewlett-Packard in a £7.1bn deal. ● September – The Government vowed to ban the payment of referral fees in personal injury cases in a bid to tackle rising insurance costs.
■ LOOKING AHEAD: BP chief executive Bob Dudley, who said the embattled oil giant had reached a “definite turning point” following last year’s Gulf of Mexico disaster
Hundreds of pounds can sometimes be paid out as lawyers claim the cost of referral fees back from the defendant or their insurance company if they are successful. Radical plans to ensure taxpayers are no longer on the hook for banking failures were hailed by George Osborne as a “decisive moment” in the drive to overhaul Britain’s beleaguered banks. he shake-up of the sector includes ring-fencing banks’ high street divisions to protect them from riskier investment arms and setting aside more cash to cushion the blow of potential losses or future financial crises. Retailer JD Sports Fashion revealed that £700,000 of stock was looted after 16 stores in London, Nottingham, Manchester and Birmingham were hit by disorder in August, with six in London suffering “very significant thefts”. ● October – Sir Mervyn King said the Bank of England’s surprise move to pump £75bn into the UK economy was the right thing to do as the country faced “the most serious financial crisis” ever seen. BP said the story of North Sea oil still had a “long way to run” after the company received the go-ahead for a major £4.5bn project. Energy companies were hit by a new storm over prices after it was claimed their average profit per customer had jumped to £125 a year. ● November – Taxpayers were sitting on a potential £400m loss after Northern Rock was sold to Sir Richard Branson’s Virgin Money. The tycoon vowed to challenge the industry’s “big five” after agreeing the £747m deal for the business. Shares in holidays giant Thomas Cook plunged after it admitted dire trading had forced it back to its banks for more financial help. Taxpayer-backed Lloyds Banking Group was thrown into chaos when chief executive Antonio Horta-Osorioits boss took an unexpected leave of absence due to illness. ● December – Royal Bank of Scotland was brought to its knees by “multiple poor decisions” and its £50bn “gamble” on buying Dutch bank ABN Amro, a long-awaited Financial Services Authority report said. HSBC was handed a record City fine after a mis-selling scandal involving nearly 3,000 vulnerable elderly customers living in care. Lloyds Banking Group named the Co-operative as its preferred choice to buy the 632 branches it is selling under European competition rules. The sale update came as Lloyds said chief executive Antonio Horta-Osorio would return to his job on January 9.
KIRKLEES BUSINESS NEWS
Nick Donovan
FTPE TRAIN operator First TransPennine Express has appointed Nick Donovan as the company’s new managing director. Mr Donovan (pictured), 48, succeeds Vernon Barker, who was appointed as managing director of First Group’s rail division in September. Having joined the company as new trains project director, Mr Donovan has worked for FTPE since the start of its franchise in 2004. In this role he successfully managed the introduction of a new 51-strong fleet of Class 185 diesel trains to the trans-Pennine route, which links Huddersfield and Dewsbury with cities across the north. Most recently, Mr Donovan has been the company’s engineering director, managing relationships with train maintenance suppliers, leading on environmental initiatives to reduce fuel consumption and carbon emissions and running some of the country's most reliable trains. He said: “I am delighted to be given this opportunity to take on the role and to build on the tremendous successes that have been achieved. “There are a range of infrastructure projects upcoming and we are working closely with the Government to increase capacity and provide more carriages by 2014. “My aim is to lead FTPE’s already successful team through these great opportunities and provide an even better service to our customers.” Mr Donovan joined British Rail as an engineering management trainee in 1981. He worked in project development and tendering in the UK, Australia and Taiwan, working for Alstom from 1997 and joined First Group in 2001.
Movers and shakers
Bedtime story is a bestseller! A MARKETING agency in Huddersfield has written the latest chapter in a success story that began just two years ago. The Sharp Agency, based at the Media Centre, Northumberland Street, took a coveted silver award in the category for Best Consumer Direct Mail Campaign at the 2011 Direct Marketing Awards in London. Sharp, one of only a handful of northern agencies to figure in the awards, was recognised for an innovative summer campaign run for Best Western Hotels – which was targeted to achieve a 10% rise in bookings, but actually delivered a four-fold increase. Mandi Taylor, a partner at Sharp, said the two-month campaign took “stories” as its theme – based on the individuality of every Best Western hotel and how each had its own story to tell. A number of authors were commissioned to write short stories featuring hotels and their finished work was turned into a book featuring a bookmark offering a discount for people booking at Best Western hotels. The two-month campaign also involved Twitter – with the hotel’s followers invited to contribute towards a “chain” story. Said Mandi: “Not many northern agencies were represented at the awards. Many of the awards went to agencies that have been long-established and have large numbers of staff, so it was tremendous for us – an agency less than two years old with 12 people – to win an award.”
■ VOLUME SALES: Partners of the Media Centre-based Sharp Design Agency (left to right front) Richard Sharp, Darlene Sharp and Mandy Taylor with the DMA 2011 Silver Award and staff (left to right) Reece Watt, Zac Chetwynd, Emma Marsh, Katie Holmes, Alice Buckley and Ian Dean
Hotel opens its doors
David Colclough & Neil Inskip
Business Growth Fund BUSINESS Growth Fund – established to help Britain's fast-growing smaller and medium-sized businesses – has appointed David Colclough as investment director and Neil Inskip as investment manager to expand its presence in the North of England and Northern Ireland. Mr Colclough and Mr Inskip join regional director Andy Gregory, based in Manchester. Their appointment brings the BGF team to 50 people, working from six regional offices across the UK. Mr Colclough was formerly a director with 3i with responsibility for the Manchester office and has more than 13 years experience of investing in SMEs across the northern region. Mr Inskip was an investment manager at ANZ Private Equity in Sydney, and was previously with PriceWaterhouseCoopers. BGF, launched in May, has a long-term objective of offering equity investment to up to 40 businesses a year once fully established. It makes long-term equity investments to fund a requirement for working capital, strategic acquisitions, sales and marketing, exports or product development.
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■ CIVIC GUEST: Clr Eric Firth, Mayor of Kirklees, cuts the ribbon to officially open the new Travelodge at Leeds Road, Huddersfield, with hotel manager Greg Merrill (right) and staff members KIRKLEES Mayor Clr Eric Firth cut the ribbon to open the second Travelodge hotel in Huddersfield. The new 62-room hotel at Spindlegate, Leeds Road, represents a £2.2m investment and has created 13 new jobs. The new hotel has been built using local Yorkstone to ensure it’s in keeping with its surroundings. Local contractors and manufacturers were used to build the hotel – which went up in record time of just 27 weeks in order to meet demand for Christmas
trading. The hotel is one of seven new Travelodge hotels to be opened in the run up to Christmas – together creating 150 jobs and representing almost £30m investment. The Huddersfield hotel team of 13 have all been hired via the local Job Centre Plus with the exception of manager Greg Merrill. Clr Firth said: “At a time of such financial doom and gloom, it is very encouraging to see a business like Travelodge investing in Huddersfield.
They wear it well A CLOTHING supply firm is putting its shirt on Huddersfield Town. Wakefield-based Xamax Clothing is the latest firm to partner the Galpharm Stadium club. The company, which specialises in casual wear, work wear and sportswear, has worked closely with the Club for the past two years, supplying several lines of clothing sold in Town’s shops as well as one-off shirts, such as the “Pedal for Pounds 2” cycle top. Xamax Clothing now becomes title sponsor of Town’s “Club Partnership” scheme. Xamax business development manager Mark Rogers said: “The Xamax team is delighted to join forces as a partner with such a high profile club.”
New year event IT’S just about the first business get-together of the New Year. Informal networking group The FIrst Friday Club will stage its first meeting of 2012 between 12.30pm and 1.30pm on Friday, January 6, at The Head of Steam pub in St George’s Square, Huddersfield. The event enables town centre business people to get together without the pressure of providing leads and referrals to discuss areas of mutual interest. For details contact accountancy firm Revell Ward by emailing enquiries@revellward.co.uk