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5989.99 ▲ 51.12 THE FTSE 100 Index pushed ahead yesterday as hopes of a second EU bail-out for Greece lifted confidence and offset gloom from the US. European officials said a review of Greece’s position was likely to conclude over the next 24 to 48 hours, while European finance ministers were reported as saying they wanted to avoid a complete restructuring of the country’s debt. The FTSE 100 Index closed 51 points ahead, at 5989.9, as investors returned from the bank holiday weekends.
Liverpool firms vote to invest £3m in BID EXCLUSIVE by Alex Turner LDP BUSINESS STAFF
alex.turner@liverpool.com
THE chief executive of the newly-created Commercial District Business Improvement District (BID) has said “the hard work starts now” after winning the approval of the city’s business community. Paul Rice will today begin a five-year term that will see him oversee investment of £3m in the area, which will fund events, marketing and capital improvements. It will become only the third commercial district BID in the country. He said: “We are delighted that we have managed to get the message
MARKET REPORT: PAGE 15
across to businesses that, even in tough economic times, this small investment is worth making for the short to medium term benefit of the area. “It’s an important step along the journey – we have been going for five years already. This puts us on a firm financial footing and means we can raise our game in terms of what we can do. The hard work starts now.” The BID replaces the Liverpool Commercial District Partnership (LCDP), which Mr Rice also led, after it gained 60% of votes cast – 173 out of 289 – and 70% of the aggregate rateable value of those voting. It required a simple majority on both measurements in the ballot, which was managed by the Electoral Reform Society.
All businesses with a rateable value of £10,000 or more will be charged a levy equivalent to 1% of rateable value. Smaller companies, who were not balloted, will not be charged the levy. The annual revenues raised cannot be used to fund statutory council services, but only “to add value to businesses in the area through additional services or activity beyond the remit of the public sector”. The BID’s annual business plan has £125,000 allocated to capital projects – which is expected to be mostly matched by public sector funding – with a further £50,000 on events. £60,000 will be spent on operations while marketing will get £70,000. Its overheads are budgeted at
£150,000, with the balance going on inward investment support, transport and access, and contingency. “We are not going to run out and splash the cash,” said Mr Rice. “We have got a few things, like hanging baskets, that people will notice soon. But we will be looking to invite businesses to events to see what their requirements are. We have got the top line figures in the business plan, but we want to talk to businesses about what will really make a difference to them.” The Commerical District BID will form part of the Liverpool BID Company, joining City Central BID which has covered the retail heart of the city
CONTINUED ON PAGE 2
It’s a free year for fledgling company
inside
Eatonfield suspends its shares CHESHIRE property group Eatonfield yesterday suspended its shares on the Alternative Investment Market after it depleted its working capital funding. PAGE 2
A FLEDGLING management consultancy has been handed a step up the entrepreneurial ladder, after securing a year’s free serviced office space at The Heath Business and Technical Park, in Runcorn. MWM Consultancy, which is run by homebased Mark Worsfold, was selected from entrants in a competition organised by the business park’s owner and operator, SOG. Mr Worsfold, who set up MWM 18 months ago, offers a broad range of project and strategic management services. He said: “I am thrilled and excited to have won this competition. I have been using the excellent facilities at The Heath, but it will be brilliant for my business to have a physical presence here.”
Secured move LIVERPOOL postal operator Secured Mail has secured private equity backing following the exit of previous investor, Aquarius Equity Partners. PAGE 5
Direct hit HOME shopping giant Shop Direct says it is now the UK’s thirdbiggest internet retailer, after hitting a key sales target. PAGE 6
Mark Worsfold, from MWM Consultancy, with Lesley Lunt, from the owner of The Heath, SOG Ltd
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BID to be part of wider city plan CONTINUED FROM PAGE 1 since 2005. It will share a board of directors, which will be beefed up by some appointments, although the commercial district already has representation in the form of Liverpool Chamber of Commerce chief executive Jack Stopforth and Liverpool Vision chief executive Max Steinberg. The BID area boundaries are formed by King Edward Street and Leeds Street in the north, Pall Mall, Moorfields and Stanley Street in the east, Lord Street and James Street in the south, and New Quay and The Strand in the west. It borders City Central BID and Liverpool One and Mr Rice believes linkages between the organisations will be important to enable the city to be “joined up” better than it has been. He became chief executive when LCDP was formed in 2006, moving from his role running Manchester’s Piccadilly Partnership. The organisation was backed by developers Albany, Downing and Bruntwood, who remain involved through regional director David Guest, who was chairman of the partnership.
■ BILL GLEESON: Page 8
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Eatonfield suspends AIM shares after sale collapse by Alex Turner
LDP BUSINESS STAFF
alex.turner@liverpool.com
BELEAGUERED property group Eatonfield yesterday suspended its shares on the Alternative Investment Market (AIM), after it depleted its working capital funding. It is the latest move by the Tarporley firm that has been in dire straits for more than two years as asset values fell and cash evaporated. Three weeks ago, the company updated the markets on its funding situation, saying that while it continued to defer payment of amounts due to certain of its senior lenders and trade creditors, it expected the exchange of contracts for the sale of sites in Wales was “imminent”. That would have enabled Eatonfield to access a £250,000 working capital facility supplied by Royal Bank of Scotland. But, last Tuesday, it announced the sale to Trilandium had fallen through, with Eatonfield’s directors forced to meet with its lenders to seek an alternative source of funding “that may present a viable way forward for Eatonfield”. That led to yesterday’s announcement, which said that although those discussions were ongoing, it was not in a position to continue trading on AIM. In a statement to the stock market, the company said: “As these discussions will extend beyond the end of May, 2011, representing the date by which Eatonfield’s working capital funding becomes fully depleted, the group has requested that trading in its shares on AIM be suspended with immediate effect pending clarification of the group’s financial position.” Eatonfield’s shares have been trading at below 1p for nearly a year and were at 0.16p when they were suspended, giving a market capitalisation value of just £705,000. The company’s value plummeted during 2008, from 150p to 5p, after the
Eatonfield chief executive Rob Lloyd – struggling to generate cash since the credit crunch market was alarmed by funding gaps and the state of the property market. Its financial position has deteriorated since then, and it has been flirting with administration for the last year as losses continue. Eatonfield made a £2.4m pre-tax loss for the six months to December, 2010,
following a £15.4m pre-tax annual loss. Net debt had risen to £26.9m at the end of 2010. Eatonfield was founded in 1998 by chief executive Rob Lloyd, who also owns a separate horseracing yard, Rob Lloyd Racing. The company floated in November, 2006, at 125p, which valued
the company at £28.75m. Mr Lloyd came to prominence in 2009 after visiting Belfast as part of the Channel 4 programme, The Secret Millionaire. Last year he fronted a consortium that sought to buy then-Premier League club Portsmouth FC, although it was ultimately unsuccessful.
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Import company opens new Wirral distribution centre A COMPANY with established trade links to the manufacturing heartland of China has opened a new warehouse and distribution centre at Bromborough, Wirral. Importers and wholesaler Empire Supplies is looking to
grow its business from a 3,421 sq ft unit at The Old Hall Estate, which is owned and managed by London and Cambridge Properties (LCP). It works on behalf of clients to source and import products ranging from household and
garden furniture to bathroom and kitchen equipment and commercial catering equipment from China. The new base will enable it to show what it can provide as well as storing and distributing goods.
Robert Kelly, who set up the company with Paul Smith, is based in China’s Guangzhou province where Empire Supplies has an office and warehouse. Managing director Paul explained: “We can source
pretty much anything. Our expertise, our links with reliable suppliers and our understanding of Chinese culture means we can help businesses here to get the goods they need at the right price.”
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profile
Full steam ahead for the sheet metal ship that is easier to turn
Managing director Eoghan McTiernan is overseeing strong growth at HQC, boosted by the company’s strong export base
Alex Turner meets EOGHAN McTIERNAN, MD of HQC, in Haydock HAYDOCK Industrial Estate is not one of those modern out-of-town hubs of commerce, with water features and rolling lawns. But the much-sought-after green shoots of the economy are reaching for the sun in two units near where the improbably-named North Florida Road leads on to Bahama Road. Inside the factory of sheet metal manufacturer HQC, managing director Eoghan McTiernan is proud of his company’s small, but important, role in bringing the global recovery to the UK. He said: “If you just take us as a microcosm, we have added 16 people – we have grown about 30% in terms of people. We are doing our bit for private industry. You add up all those little bits, it’s the SMEs that will drive a lot of it.” The growth enjoyed by HQC originates further afield, in long-standing relationships with multi-national firms operating in far-flung markets. “A large proportion of our growth this year has been with existing clients. They are all international companies – when people in Germany, France, wherever, start coming out of recession, they do, too,” he said. “We did 25% year-on-year growth last year to this, and we are aiming for 25% growth this year.” The growth has come at an exciting time for the company, which is marking its 25th birthday. Earlier this year, McTiernan led a management buyout (MBO) of the firm,
along with finance director Sheila Bowden and operations director Peter O’Neale. The deal saw managing director Keith Parkes and investor Merseyside Special Investment Fund (MSIF) exit the business seven years after a previous MBO, when McTiernan had first arrived in Haydock. “We need to be able to assure all the investors that we can do it, so it is fantastic to be able to grow during the MBO,” he said. “Companies like this do MBOs every seven years or so – I won’t be here for 30 years, I will be here for, say, 10. We generally breed the MBO teams from within. The only thing that really changes is the investors.” McTiernan is focused on growing the company – and its value – quickly, although he recognises it needs to run quite quickly, just to keep pace with competition from the Far East. He said: “With MBOs in small companies like this, you only realise the value at the end. You may be able to pay dividends along the way, but generally you realise it at the end. “We have got pretty good plans to
q&a Age: 52 Lives: Nantwich, Cheshire Highest educational qualification: Science degree, National University of Ireland Biggest achievement in business: This one – the management buyout and running HQC Biggest regret: None, I am a positive person Best advice received: Persevere – if you believe in it, keep going after it, keep knocking on the door
expand what we have here and double the business in five years, that will bring its own benefits for everyone. We have been growing at 25% so it’s not unachievable. “The biggest issue we have is low-cost countries stealing our business. For every one we win, we lose one. “We have now got a partner in China, that helps us keep the business especially when you get to a certain volume.” The decision to work with, rather than in competition against, a Chinese manufacturer, formed part of HQC’s low-cost strategy, which was developed after the company lost a hugely-important customer. “The client was building, say, 100 pieces a month,” said McTiernan. “We helped them and set it all up here. “After a couple of years, they got a big contract and it was up to 300 a week. Then the business got taken off us to China. “With it went all the other stuff – that customer had been 70% of our business, now it’s 0.5%. “We decided to hang on to the business we needed to offer something whether it’s a partner so we hang on to it all.” The partnership makes their offer competitive, but he recognises that they can still face a tough fight to keep hold of the high-volume work. “My next problem is this one,” he said, indicating another piece of shaped and sculpted metal. “It was 100 a month and now it’s 100 a week. But coming with it is all his other metalwork and we, possibly, will lose that. “At this stage, we can offer them a Chinese alternative, so at least we have something to offer, and if we don’t lose that main piece we won’t
lose the rest of it.” In the long-term, McTiernan does expect the balance to shift back slightly as Chinese growth becomes inhibited by demands from customers and workers. He said: “Everyone is saying work is coming back from China. They have had to raise wages, raise conditions. It will raise costs, it helps us more, there will be jobs coming back to the UK.” High standards are at the heart of HQC’s proposition, which is encapsulated in its corporate tagline “adding value through engineering”. He said: “Because of our clients being blue-chip clients, they drive us higher and higher in terms of compliance, accreditation, engineering, HR standards, health and safety standards. “They do it for themselves because a lot of them are doing work for Government bodies and they expect us to do the same. “That gives us a leg up because we are then compliant and a lot of our competitors aren’t. “You hang on to their coat tails. If this customer is growing, just go with them. They will introduce you to other parts of their business; for example, Siemens in the UK introduced us to their German operation.” The company doesn’t have a sales presence overseas, but it still exports 40% of what it manufactures, with intra-company referrals being a key part of that. “We just get sales by reference because of our excellence. Jonny or Gunther will say ‘these are the guys you need’,” he added. “It’s because we provide them with such a good service. When they have a new design, we make the samples. We are very close to their engineering teams, so we are the first port of
Photo: GARETH JONES / grj270511business-2
call. People always come back again, again and again because we are the ones that help them out.” McTiernan is evangelical about the importance of personal relationships, which is the result of a career spent in sales. After university, he started as a shop assistant “selling calculators and computers, like the ZX81”, before running Texas Instruments’ technology centre in Dublin. He jumped from retail to trade, selling semi-conductors before moving into contract manufacturing, which saw him headhunted to become HQC’s sales director in 2004. Customer service, and dogged determination, are two key elements to McTiernan’s approach. “It’s perseverance. When you want to get a client, you persevere – we have won business by just being persistent. “Customer service is a people thing. It’s got nothing to do with the products or the machines.” Trust, at the heart of the relationship, comes from good communication with customers. He added: “I have always looked to manage the perception of the clients, they have the feeling they are being looked after. “That can involve an investment in the customer, although it might only cost you a very small amount. “That’s the beauty of smaller companies – I have come from big corporates – the beauty here is that one or two people can make those decisions. Our ship is much easier to turn. “Here we can make decisions very, very quickly. That’s why we win all the time against the big boys when it needs a quick turnaround. “That’s what I really enjoy, this part of it.”
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LDP business .co.uk private business
Sales remain stable at Chums
HOME shopping firm Chums consolidated previous sales increases last year during a solid year’s trading. The Knowsley-based firm saw turnover edge up 0.3% to £27.9m in 2010, which followed increases of 13% and 10% in the previous two years. Pre-tax profits were much higher, up £1.82m to £1.95m. However, because of the substantial payments to directors the company’s profitability is better measured by stripping out bonuses. Directors’ remuneration last year was £700,000, down from £2.4m. In accounts filed at Companies House, managing director Graham Rubin said: “The final results for the year are significantly influenced by the level of remuneration paid to the directors in the form of bonuses. Profit on ordinary activities before taxation and bonuses stood at £2.7m.” That compared with £2.8m in 2009 and £3.2m in the previous year, reflecting competition within its sector. Cash balances remain strong, at £3.7m at the year end, while shareholders’ funds rose to £1.78m. Chums employs about 160 staff and is based at a 60,000 sq ft unit at the Knowsley Business Park. Annual rent of £245,000 was paid to the Graham Rubin Pension Scheme. Mr Rubin developed the mail order business 30 years ago after many years’ experience in the manufacture of trousers. Starting by selling men’s trousers direct to the public by off-thepage direct response advertisements in national newspapers and magazines, he also sold through a catalogue of his own using the ever-increasing database of customers he recruited. Chums now sells online through its own website. ALEX TURNER
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Excitement builds for 2011 Business Awards by Alex Turner
LDP BUSINESS STAFF
alex.turner@liverpool.com
ANTICIPATION is building ahead of the 2011 Regional Business Awards later this month. The glittering event, now in its 20th year, is being held at Liverpool’s Anglican Cathedral on Thursday, June 23. It will bring together 500 business people from Merseyside and Cheshire to celebrate the region’s success stories. There is still chance for you to be there as well, with some tables still available. Places cost £95+VAT with a table of 10 just £950+VAT. To book, call the Daily Post events team on 0151 472 2422. The keynote speaker is the chairman of shoe repair and key-cutting chain Timpson, John Timpson. He has run the firm since 1983, and has seen it grow into a £125m-turnover business. Today, the Timpson chain has more than 800 branches nationwide. The event’s host will be journalist John Sergeant, who began his career with the Liverpool Daily Post. There are 10 awards which enable businesses big and small, start-ups and long-established firms to be recognised for their achievements in the last 12 months. The Small Business award is between Chester-based mobile phone market company Txtlocal, Wavertree Technology Park hi-technology security systems firm, Human Recognition Systems and Knowsley-based cement mixer manufacturer, Nurock. Shortlisted for the Medium Business award are Hooton-based web marketing firm Click Consult, jewellery chain Boodles and stock market-quoted information technology firm, GB Group. Competing for the Liverpool John Moores University Knowledge Business of the Year Award are AIMES
Liverpool’s Anglican Cathedral is the venue again for the Liverpool Daily Post Regional Business Awards, which take place later this month Picture: GARETH JONES/ grj270510business-13 Grid Services, Human Recognition Systems and MerseyBIO firm Redx Pharm. The Jaguar Land Rover Corporate Social Responsibility award pits together construction firm Balfour Beatty Capital, housing association Riverside and health benefits mutual, Medicash. Investment of the Year will be selected from dairy products firm Danone,
Halewood carmaker Jaguar LandRover, and Speke-based discount retailer, B&M Retail. Liverpool Chamber of Commerce Exporter of the Year Award is a choice between Skelmersdale-based Hotter Comfort Concept Shoes and sugar firm Real Good Food Company. Shortlisted for the United Utilities Green Award are plant hire firm Speedy Hire, packaging firm Weir &
Carmichael and renewable energy firm, Eco Environments. The KPMG Business of the Year will be fought out between logistics group Stobart, vouchers and gift card firm Park Group, and Hotter Comfort Concept. Two awards will be announced on the night without a shortlist – the 02 Judges Choice Award and the DLA Piper Business Person of The Year.
Southern Cross to pay less rent to landlords as crisis deepens
Glen Dimplex in BBC deal
CARE home provider Southern Cross, which is responsible for looking after some 31,000 residents, will underpay its rent from today as it battles to find a long-term solution to its financial crisis. The owner of about 750 care homes including several in Merseyside and Cheshire, will pay nearly a third less rent than it is obliged to for the next four months. The cut – which is effectively a loan from its landlords – will be repaid when it is able to do so. The company, which is struggling with a £230m annual rental bill, also has until the end of the four-month period to
MERSEYSIDE cooking appliance brand Belling has announced exclusive sponsorship deals with the BBC as it approaches its centenary anniversary next year. The firm, which was established in the UK in 1912, is to become the exclusive kitchen appliance supplier to three BBC Good Food Shows, as well as MasterChef Live, as it gears up to a year of celebrations to mark its 100th anniversary. The brand, owned by Prescot-based Glen Dimplex, is looking to cement its market leading position and will be supplying products exclusively to the four BBC events, including all kitchen demonstration theatres. Chefs including James Martin, Rachel Allen and Mary Berry will use its induction cookers at the shows, while MasterChef ’s John Torode and Gregg Wallace – as well as this year’s winner, Tim Anderson – will re-create dishes on the company’s appliances.
agree a deal with its lending banks. Southern Cross recently warned it was in a “critical financial condition” as it unveiled a £311m loss in the six months to March 31. As Southern Cross struggles with rising rent bills, it is also facing declining local authority fees as fewer councils placed residents with the company. Local authority admissions declined by 15% in the first half of its financial year, though there were more NHS referrals and private patients. Councils and the NHS account for 70% of the company’s patients. Darlington-based Southern consequently saw revenues
drop 3% to £464m in the first half, as overall occupancy declined by 3% to just under 87%. The ongoing negotiations include a potential longer-term rent cut and disposals. Some landlords, particularly those which are care home operators themselves, could choose to take back some of Southern’s homes. It has also been reported that up to 200 homes could close with patients moved to other premises. The Association of Directors of Adult Social Services over the weekend moved to reassure residents and their relatives that it would help Southern Cross get back on its feet.
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Rensburg changes name to Investec LIVERPOOL wealth management firm Rensburg Sheppards has changed its name to Investec Wealth & Investment. The firm, which operates out of The Plaza office building, in Old Hall Street, was acquired by South African-based Investec last year. Jonathan Wragg, UK chief executive of Investec Wealth & Investment, said: “The name Investec Wealth
& Investment will be synonymous with the enduring values and modern methods that have allowed our business to thrive over many years. “In addition, the change of brand also presents us with new opportunities to grow, as part of a FTSE 100 group that is committed to developing our business. “After working in association with Investec for several years, we are proud to
be adopting their name.” Rensburg Sheppards has a distinguished history in Liverpool stretching back to 1873, when it was able to trace its roots back to the Liverpool Stock Exchange. In 2005, Rensburg bought Leeds-based Carr Sheppards Crosthwaite from Investec, having decided to turn down an approach by fellow Liverpool wealth management group Rathbone Brothers.
In return, Investec took a 47.7% stake in the newly formed Rensburg Sheppards, before completing a takeover last year in a deal worth £412m. Jon Seal, head of the Liverpool office, said: “We’ve been a constant presence in the city of Liverpool since 1873 and our rebrand to Investec Wealth and Investment marks a new and very exciting chapter in our story.”
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Confidence in your cash flow Secured Mail managing director Mark Bigley – we have grown to become one of the largest postal providers in the country Picture: GAVIN TRAFFORD
Next Wave of backing for city postal firm by Tony McDonough
LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com
LIVERPOOL postal operator Secured Mail has secured fresh private equity backing following the exit of previous investor, Aquarius Equity Partners. Aquarius, run by entrepreneur Steve Sealey, invested £1.6m in the business in 2008, taking a 50% stake. At the time, Secured Mail was running out of cash and the investment proved to be a lifeline. Now Next Wave Partners has bought out the Aquarius stake for an undisclosed sum, and the firm is now looking at an expansion drive. Established in 2006, Secured Mail processes millions of letters every night and is predicting a turnover of around £50m this year. Operating across the UK with well-known household brands among its clients, Secured Mail is one the UK’s largest postal busi-
nesses. Managing director Mark Bigley said: “We have grown to become one of the largest postal providers in the country, as a result of our excellent quality of service and attention of detail. “Setting the business up in Liverpool, Secured Mail has a national reach with sites in London and a recently opened mail hub in Warrington. “Further expansion is planned over the next 12 months. “The investment received from Next Wave will allow us to bring the next phase of our vision to life and support the growth we intend to achieve.” PKF and Hill Dickinson advised Secured Mail on the deal. Mazars and Stevens and Bolton advised Next Wave. Next Wave partner Stephen Walls said: “Secured Mail has achieved phenomenal growth. “As a growth capital investor, we see a real opportunity to partner and support the management team.”
By Leigh Taylor
AREA DIRECTOR fOR LLOyDs TsB COmmERCIAL In ThE nORTh WEsT
Unpredictable cash flow can be one of the most common barriers to growth. As raw material and product costs fluctuate and you strive to get paid on time by suppliers, confidence that you have access to funds is crucial to maintaining stability and achieving future success in your business. As well as approving eight out of 10 requests for loans and overdrafts*, Lloyds TSB Commercial also has a number of solutions designed to ease cashflow pressures and keep your finances fluid. Manufacturing – which still contributes an estimated £20 billion a year to the North West economy – is a sector where businesses simply cannot afford to see cash flow run dry. One option used by businesses facing this issue is factoring, or invoice discounting, which allows you to secure funds against the value of invoices – ideal when you know you have orders in the pipeline but need funding to pay for production. In many cases you can receive up to 90 per cent of the value of your invoices within 24 hours of raising them. A significant help when many customers are stretching payment terms to the limit. For businesses which have a solid base and have invested in infrastructure designed to help them compete and grow, asset finance may help. Offered by Lloyds TSB Commercial Finance – capital is released by borrowing against the value of your fixed assets, such as property and equipment. Of course, not all businesses own their premises or have the same tangible assets as manufacturers. The tourism sector, for example, boosts the North West economy by around £9 billion a year, much of it seasonal. This seasonality creates cash flow peaks and troughs, meaning that while significant costs such as marketing may need to be paid for in the ‘off season’, the bulk of income arrives in the peak holiday seasons, creating gaps in finances which firms have to bridge.
managing stock levels and cash flow can be key to success When this kind of cash flow gap appears there is a different option for smaller amounts, where businesses might have a credit/debit facility with minimum monthly takings of £3,500. Companies in this position can take advantage of Lloyds TSB Cardnet’s partnership with Merchant Cash Express, offering a business finance advance which gives smaller organisations access to an injection of cash when they need it most, without the need for additional security or approvals. However strong your cash flow feels now, you can never fully anticipate every issue which might disrupt it. Having a plan for which option suits you best if you do experience a shortfall can save valuable time and help you focus on keeping your business on track.
For more information about how Lloyds TSB can work with you and your business, please contact your Relationship Manager or visit www. supportingbusiness.co.uk/lloyds To find out about factoring or invoice discounting visit www.ltsbcf.co.uk Any property given as security which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. All lending is subject to a satisfactory credit assessment. Lloyds TSB Commercial is a trading name of Lloyds TSB Bank plc and Lloyds TSB Scotland plc and serves customers with an annual turnover of up to £15M. Authorised and regulated by the Financial Services Authority. We subscribe to The Lending Code; copies of the Code can be obtained from www. lendingstandardsboard.org.uk
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Consultancy opens in capital CHESHIRE-BASED executive search consultancy Warren Partners has opened a London office, the latest stage in its growth plans. The consultancy has also boosted its 35-strong team with the addition of new director Iain Brockbank, its third senior appointment in six months. Iain will be based in the London office in Pall Mall. His career includes forming
and growing a rail recruitment division within a national recruiter. As a partner with an international boutique, he headed up an industry leading engineering, transport and infrastructure practice. He specialises in senior executive and board level appointments, with a client base including FTSE 100 players and rapid growth SMEs. Mr Brockbank said: “Join-
ing a highly-regarded consultancy like Warren Partners is an exciting opportunity, and I’m looking forward to working with colleagues who have a refreshingly different approach to meeting the needs of clients and candidates.” Managing director Vicky Lawton added: ”Iain will be a great asset to the business, and we are delighted to welcome him on board.”
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Retailer hits its online target
Mark Newton-Jones, chief executive of Littlewoods owner Shop Direct – we’ve seen a large transformation in the group
by Alistair Houghton LDP BUSINESS STAFF
alistair.houghton@liverpool.com
HOME shopping giant Shop Direct says it is now the UK’s third-biggest internet retailer, after hitting its target of selling more than 70% of goods online. Chief executive Mark Newton-Jones said the chain’s online success meant only Amazon and Tesco were bigger online than his Speke-based group. Shop Direct traces its history back to the Liverpool-based Littlewoods chain of department stores. Today, the chain sells online and through catalogues, and owns brands including Littlewoods, Very.co.uk and Woolworths. Mr Newton-Jones said: “We’ve seen a large transformation in the group. It’s gone from being stores and catalogues to catalogue and internet. Now the internet has taken over. “Some 70% of our sales are online now. We’re an internet-led business.
“We’re the third-largest internet and remote shopping business in the UK. Amazon is number one, Tesco is number two, and we are at number three. “In sterling value, online sales are 67% of our turnover, but some 72% of the units we sell are online.” Mr Newton-Jones said the days of catalogues were not over yet. “Customers still tell us they want catalogues,” he said. “They want leaflets. We’ll continue to provide them for as long as they want. “But the predominant ordering method is now online. Many customers who have the catalogues would rather order on the website.” Mr Newton-Jones said the £1.67bn-turnover business was performing well, but that the wider retail market remained “erratic”, with customers nervous about public sector cuts and the state of the economy. He said Shop Direct’s Isme brand, launched last year and aimed at the “fashion-conscious mature customer”, was performing strongly.
Firm’s warning for directors MERSEYSIDE accountancy firm Mitchell Charlesworth says new insolvency figures are a “wake-up call” to nonexecutive directors to be aware of their responsibilities if their company becomes insolvent. Figures from the Insolvency Service show more compan-
ies were wound up in the first quarter of 2011 in England and Wales than in the previous three months, and during the same period a year ago. The number of compulsory and voluntary liquidations rose by 3.7%, to 4,121, between January and March, 2011, compared with the three
months prior. This figure was also 2.1% higher than 2010. Mitchell Charlesworth’s head of corporate recovery and insolvency, Jeremy Oddie, said: “There are still many thousands of businesses out there that are showing signs of distress.”
■ TRADING Gossip: P16
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LDP business .co.uk
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The beautiful game of football can tarnish the image of sponsors
Matt Johnson I WAS glued to the television last week when Barcelona demonstrated that they were the equivalent of a whole league better than any other
club in Europe. They are a real credit to the game. But all is not well in football, especially not at FIFA. We are seeing timely reminders of the value multinational companies place on the integrity of their brands as the row over the governance of world football reaches a new intensity. Businesses of every shape and size build brands and awareness as part of their successful development. And it’s an area of business where some pretty basic ground rules apply. Firstly, it’s important to establish brand identity and a sense of related values that go some way towards creating in customers’ minds, or those
of potential customers, a sense of how that company sees itself and the way it goes about its business. The bigger the business, generally, the bigger the resources available and allocated to this type of activity. By good measure, this also tends to apply to the value the firm puts on its brand identity and brand values. So when a catastrophic oil spill engulfed a substantial area of US waters, BP found itself in an intense and unwelcome spotlight. What we saw in the FIFA row yesterday was two global brands seeking
to retain some control in a situation that poses a major threat. When Coca-Cola and Adidas joined the fray, they did so with a very clear requirement to protect their brands and their images. As long-term and major financial sponsors associated with football all over the world know, perhaps better than any of the national football associations affiliated to FIFA, the risks that are being run are substantial. By joining the fray and presenting their position so clearly, each of these
‘Brands seeking to retain some control’
firms is seeking to retain some control over the situation – and protect individual brands. Theirs is a very high-profile, high-stakes game, and their response to it reflects their need to limit damage. It’s being played out around the world – but the issues they are facing apply to businesses of every size whether they are in domestic or international markets. For them, it’s a beautiful business rather than a beautiful game. ■ MATT JOHNSON is chief executive of Mando Group
■ BILL GLEESON: Page 8
Clarke has basic pay cut as Sir Terry pockets £12m by Bill Gleeson
LDP BUSINESS EDITOR bill.gleeson@liverpool.com
TESCO, the world’s third-biggest retailer, is simplifying its boardroom pay scheme and cutting the base salary of its Liverpool-born chief executive Phil Clarke as it seeks to end rows with shareholders over how it pays its leaders. The supermarket chain, which saw 47% of shareholders either vote against or abstain in a vote over executive pay last July, said yesterday it expected the new pay scheme would deliver broadly the same level of rewards as before. However, it said the scheme was simpler and, particularly in the case of the chief executive’s package, more focused on performance-related elements than fixed payments. Mr Clarke will receive a base salary of £1.1m, down from the £1.4m received by his predecessor Sir Terry Leahy, who retired in March. Chairman David Reid said: “We have designed a new structure which is simpler and more collegiate, with clear strategic financial targets, delivering broadly the same levels of remuneration as before, but in a better way, and more aligned with the interests of our shareholders.” Under the new scheme, four long-term incentive plans with five separate measures will be replaced by a single plan with two performance measures – return on capital employed and earnings per share. The number of performance measures for the annual bonus will also be cut from over 20 to seven, while all executives – including the chief executive – will participate in the same plan. Executive share options will be replaced by performance share awards, expected to be of a comparable value. Tesco published the new plan alongside its annual report, which showed Sir Terry left the business with a total of £12m from pay, awards and cashing in share options. His pay package fell to £4.2m in the year to February from £5.2m the year before, due in part to fewer share awards, but he cashed in £5.2m of share options, some of which he had held for around 10 years, and received
Practice expands with new recruit ■ ACCOUNTANCY practice Woods Squared, based in Birkenhead’s Hamilton Square, has appointed Shelley Hughes as client manager. Ms Hughes, 27, started her career ten years ago at Morris & Co, where she spent five years before she moved to Hall Livesey Brown, in Wrexham. She gained her Association of Chartered Certified Accountants (ACCA) qualification in 2010.
Shelley Hughes Woods Squared founder Alan Woods said: “We have continued to grow in 2011 by winning new business.”
Tesco chief executive Phil Clarke – will receive a base salary of £1.1m this year a further £2.6m from long-term and executive incentive schemes. Mr Clarke, who was head of Tesco’s Asian and European businesses during the group’s last financial year, saw his pay package fall to £2.3m from
£2.7m, also due to fewer share awards. He could make a maximum equivalent of about £7m during this financial year if he meets all the performance objectives set for him, though much of that would be paid in shares which he
would not be able to cash in for several years. Opposition to last year’s executive pay plan was focused on a big bonus paid to Tim Mason, the head of Tesco’s loss-making US business.
■ MARKETING and communications agency Kenyon Fraser has recruited Anna Beaumont to its PR team. Ms Beaumont joins the agency from her former position as head of public relations at Wirral-based agency, ICE, where she managed communications contracts for a number of government projects and worked with clients including the Department of Health. She will now take on senior accounts within the commercial team at Liverpool-based Kenyon Fraser.
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LDP business .co.uk Bill Gleeson Can Barcelona’s ethos be made to work in business? BARCELONA’S dominance of the EuropeanChampions’ League Final was obvious. You don’t need to be an Alan Hansen or Alan Shearer to spot that they outplayed Manchester United for most of the game and that they will probably continue to dominate the tournament for the next five years. It set me thinking. Is there something about the ethos of the club that business could learn from? Barcelona has a tradition of developing its own youthful talent, rather than relying purely on big spending in the transfer market. It has, to date, refused to take money for shirt sponsorship and, as Saturday night’s game showed, it has developed a strong team spirit. Manchester United, in contrast, is hampered by the fact that it is owned by people who regard it as a private equity investment, with its footballing traditions subsumed into a business ethos. Perhaps it’s inevitable that they were second best. Whether it’s football, newspapers, legal services, restaurants, car manufacturers or a hundred other things, a genuine ethos of excellence may be the surest way to business success. TWO-THIRDS of young people in Britain without their own home believe they have no chance of ever buying a house. This finding, contained in the results of a survey by Halifax, reflects concerns about the size of deposit that has to be saved first and the perceived probability that applications for mortgages from young people will be rejected by banks and building societies. It is true that anybody buying a house today currently needs to save a 10% deposit before a lender will even look at them. Personally, though, I don’t think saving for the 10% deposit is the biggest single obstacle. Surely the real problem
is the size of the mortgage needed to fund the remaining 90% of the house purchase? Using traditional lending criteria, most halfdecent houses are beyond the means of most people, even those who have saved a 10% deposit. What the Halifax’s survey fails to address is the profound structural distortion in the British housing market that, even in this era of slow growth, keeps prices high. High house prices are not a good thing, whatever the newspapers try to tell you. They are socially destructive, depriving millions of people of the chance to fulfil ordinary ambitions, such as housing their own family. This country must address the constraints on house supply. We need to build more homes. WHEN asked yesterday about how money raised from additional rates levied on businesses in Liverpool’s new commercial Business Improvement District would be spent, Paul Rice, chief executive of the newly formed Commercial District BID, said there would be more hanging baskets. Old Hall Street, St Paul’s Square, Dale Street and Castle Street have already had substantial sums spent on their paving stones, road surfaces and street furniture in recent years. In the case of Old Hall Street, it’s been redeveloped twice over. The street now has beautiful, brick-effect pedestrian crossings. I hope nobody is planning to dig it all up and start doing it all over again. The city’s other BID area, the retail core around Church Street, has been popular with most businesses. The extra security it provides is an obvious benefit. I’m not so sure the office district stands to gain as much. Surely many of the services the BID will provide should be provided by the city council anyway?
Another side t Can a neglected area of Liverpool become a ‘creative biosphere’? Alistair Houghton reports
IT’S hard not to warm to a project that proudly hails itself as a “bonfire of old-school regeneration mantras”. And that’s how the latest manifesto for Liverpool’s Baltic Triangle area was launched to a crowd of creatives eager to hear how the overlooked semi-industrial landscape could be transformed into a creative “biosphere” to rival Salford’s MediaCity. A group of businesspeople who already work in the Triangle have joined forces to write a manifesto for the area. They believe it has the potential to become a buzzing hub for the creative and digital sector, and could become a Merseyside equivalent to London’s Shoreditch or New York’s Meatpacking District. The Baltic Triangle stretches from Wapping to Parliament Street, Park Road and St James Street. Several creative enterprises have already set up in the area. The Elevator Studios complex, in Parliament Street, for example, houses dozens of creative firms from designers to video game developers. Meanwhile, plans have been unveiled for the second phase of Baltic Creative, the public sector-backed initiative to transform disused warehouse space into homes for small firms. The manifesto’s creators want the Baltic Triangle to become a “creative biosphere”. They want to see the area filled with creative and digital firms, large and small, all working with each other. But, for it to become a real attraction for visitors, it needs more businesses to invest there. There may be many exciting businesses operating behind the scenes, but at street level the area still has many derelict sites and few obvious attractions for visitors. Those behind the manifesto believe it needs more shops, bars or restaurants to open at street level, filling some of the gaps in the landscape and making it a more welcoming place. Miles Falkingham, director of architecture practice Union North, is one of the team behind the manifesto. For the area’s regeneration to succeed, Falkingham believes, then it needs to be led by the private sector and by the creative firms that will define the Baltic Triangle’s identity. He describes the Baltic approach as: “A bonfire of old-school regeneration mantras; a celebration of everything marginal, curious and inspired; a private sector led, bottom-up, grassroots, networking, matchmaking and freewheelin’ revolutionary manifesto for change.” For Falkingham, the strategy for the area is simple – get the creative companies in first, by offering them high-quality yet low-cost space, and regeneration will happen organically. “Fill the area with people and the rest will follow,” he said. “Fill the area with creative, industrious and pioneering people and the rest will follow sooner.” The manifesto team includes Chris Lee, of fashion firm Microbrands One, and Tim Speed, one of the brothers behind the £2m-plus Elevator Studios complex, in Parliament Street.
Liverpool’s Baltic Triangle, viewed from the roof of Elevator Studios. The warehouses in the centre are part of the Baltic Creative complex
Lee came up with the biosphere concept, inspired by the changes he has seen in the Shoreditch, Hoxton and Spitalfields areas of London. Those East London areas were some of London’s forgotten districts, but have been reborn as trendy areas housing shops, restaurants, artists and creatives. Lee, whose company owns the Slazenger Heritage brand, is passionate about the Baltic Triangle. “People say Liverpool One is the jewel in the crown of Liverpool,” he said. “I would say the Baltic Triangle is the jewel in the crown.” His ideas for the area include “pop-up cafes” serving the area, a range of “easy-in, easy-out” workshops for fledgling firms, and for Blundell Street to become home to restaurants, bars and cafes. “Some people say it’s not happening,” he said. “Well, I’m very sorry, but it’s already happening.” Not too far away from Liverpool, in Salford Quays, Peel is investing hundreds of millions of pounds in developing a creative campus of its own. The MediaCity complex, whose first phase is nearing completion, will house five BBC departments and ITV’s Manchester operations. It will house thousands of workers, and is sure to attract many more media companies to Greater Manchester. The Baltic Triangle project is on an altogether smaller scale. But Mersey-
‘Area is the jewel in the crown of Liverpool’
side’s creative and digital firms are themselves generally small or micro firms. The city’s regeneration bodies believe the creative sector is key to Merseyside’s future. Liverpool may not have a MediaCity but, they believe, it still needs its own creative quarter where those small enterprises can feel at home. And so Liverpool Vision is among the backers of Baltic Creative, the community interest company that has converted warehouse space in Jordan Street into space for creative firms. The company is about to embark on its second phase of warehouse conversion, designed by Falkingham’s Union North. “It’s not good enough to deliver some white boxes in a conventional format and expect people to arrive there from other parts of the city,” said Falkingham. “We need to find solutions that are unique to the Baltic.” The dividing walls between the existing tin sheds will come down -– “We keep the roof on, smiled Falkingham, “it might be useful” – and then smaller buildings will be put inside. He said: “It’s a simple aesthetic – almost glorified garden sheds all the way through.” Baltic Creative manager Mark Lawler sees his complex as a campus where firms can work together as envisaged in Lee’s biosphere. Lawler said: “It will be a creative campus with a variety of different types of building and spaces, occupied by different types of creative business. We might have an architect next to a model maker next to an interior designer, and so on.
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LIVERPOOL’S INVESTMENT SPECIALISTS
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to the Baltic Triangle
Tim Speed, co-founder of Elevator Studios
John Stone has moved Shiverpool to the Baltic Triangle
Karen and Christopher Moss, of Gecko Design “The sector will benefit from these close links. We cannot stipulate that businesses work together, but we can create the environment for them to do it” Just across the road from Baltic Creative, the Elevator Studios complex stands as living proof that the creative biosphere idea can work. Tim and Paul Speed, who ran the original Elevator recording studios in the city centre, have converted a block of four Victorian warehouses in Parliament Street into a warren of offices and rehearsal spaces. As well as housing bands including The Wombats, Elevator is home to design agencies such as Milky Tea and several of the young video games firms that have sprung up in the wake of job losses at Sony and Bizarre Creations, including Setgo Games. Building work is continuing on Elevator. This week, a bar will open downstairs to replace Leaf tea shop, which closed several weeks ago. Meanwhile, a store, called Baltic Chandlers, will be opened in the basement to sell anything from office stationery to guitar strings for the musicians who rehearse above. Speed is proud that his privately-funded project has become a cornerstone of the Baltic Triangle community. And he is also proud that several of his tenants have started collaborating with each other to win contracts and grow their businesses.
“These were key warehouses,” he said. “They would have been full of exotic goods, and things like tobacco, cotton, and coffee. Now they’re full of ideas. We’ve brought them back into operation in a really interesting way. “What we provide is an excellent and a cheap space. It’s a creative space. “I’m finding that while music is still important to us, games are now, too. It’s interesting that we’re becoming a hub for the games industry. “It’s a catalyst for the regeneration of this area. And it’s commercially driven – we’ve never had grants.” There is one fear, however, that haunts many of the people backing the Baltic initiative – the fear that the area could become a victim of its own success. It seems hard today to imagine The Beatles – and booze-soaked Mathew Street – as a creative quarter. But that is what it became in the late 1970s as artists and musicians turned it from a derelict and forgotten corner of the city into a hub of creative activity – including the music scene around its most famous venue, Eric’s. But that fame soon attracted developers keen to cash in on the transformed street Jayne Casey, the artistic director for the European Capital of Culture opening event in 2008 and one of the best-known figures on Liverpool’s music scene, is a board member at Baltic Creative.
‘These buildings are now full of ideas’
Casey, who sang with punk band Big in Japan, told last week’s launch of the Baltic manifesto: “We had a fantastic time. It was our street. “Then developers moved in because of the profile of the street. Rents went up. “The culture changed. We all moved on.” The same, said Casey, happened with the area now known as the Ropewalks. When Cream opened, followed by Baa Bar, it saved the area from demolition and brought it back to life. But, again, the developers moved in soon afterwards. She said: “It’s always been a bugbear that artists go and create an area, but developers create the rewards.” For Casey, the Baltic Triangle was the obvious next stop for the city’s creatives. And she is particularly pleased that Baltic Creative will plough its profits back into the area. “We know our rent is supporting the future of the city,” she said. “It’s supporting this area. That’s so much more satisfying than paying your rent to some business guy. “This area has got so much potential.” Back at Baltic Creative, Mark Lawler is convinced that the Baltic Triangle is on the up – and believes that will boost the economy of the whole city. “There’s a lot to be excited about,” he said. “Our second phase will be great. But it’s not just that – there are other projects happening here as well. “Two or three years down the line, we’ll see it as a place which is more obviously supporting the growth of the creative and digital sectors.”
Baltic tenants tap into area’s creative network THE Baltic Triangle regeneration plan is all about bringing new life into the area – and Shiverpool could bring some of its ghosts back to life this Halloween. Shiverpool, which runs popular ghost tours of Liverpool, moved into the Baltic Creative complex earlier this year. Director John Stone now loves the area so much, he is considering creating a Baltic Triangle Halloween festival. He said: “We’re exploring the possibility of putting on a large-scale event that would be supported by the network of businesses here. “We moved here because the whole area seemed like it was coming alive, and it’s just down the road from Liverpool One and the Albert Dock. “It made sense to be near the other creative businesses here.” Shiverpool uses nearby units as rehearsal space. Mr Stone has also talked to Elevator tenants about creating apps and music for Shiverpool. He said: “There are lots
of creative businesses we can utilise, and lots of developments taking place that we would never have known about had we not been here.” Gecko Design, run by husband and wife team Karen and Christopher Moss, will move into Baltic Creative on Friday. Gecko was founded a year ago to offer creative services from web deign and hosting to branding and signage. Ms Moss, who currently works from home in Bootle, believes being based near the Baltic Triangle’s other creative firms will boost her business. She said: “There are so many people around there, and so many connections to be made. Everywhere seems to be buzzing. “It just seems creative. There’s so many arty people round there. We want to be able to bounce off other creative people. “Hopefully, this move into Baltic Creative will be a step up for us and we can get a bigger office when the new building is complete.”
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LDP business .co.uk briefing Serco buys Indian firm for £385m SUPPORT services firm Serco is to acquire Mumbai-based outsourcing firm Intelenet, whose customers include Barclays, State Bank of India, Travelport and Aircel, for up to £385m. Intelenet, which employs 32,000 people, has an order book of around £500m for the next five years and generates three-quarters of its revenues from international customers.
Torotrak in Volvo tie-up GEARBOX designer Torotrak revealed it is working with Swedish car marker Volvo to pilot a new energyefficient braking system. The Leyland, Lancashire-based company said its continuously variable transmission technology will be used in the Volvo project.
Solid steel RENOLD, the Manchester-based maker of industrial chains, said it had built a “solid platform” after reporting 19% growth in full-year revenues to £191m and an order book 13% stronger than at the start of the year. It posted underlying profits of £1.4m, against a previous loss of £8.1m.
Toys deal FILM and TV producer Entertainment One said it plans to develop a range of toys based on the popular Peppa Pig cartoon for the US market, after signing a deal with toy maker Fisher-Price.
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It’s Yuletide all year round for festive Liverpool firm by Neil Hodgson
LDP BUSINESS STAFF
neil.hodgson@liverpool.com
JUST off Liverpool’s Old Hall Street the crisp, white snow lay thick and even and the boughs of the towering Christmas tree groaned under the weight of dazzling decorations. Meanwhile, the nearby business district basked in early summer sunshine, oblivious to the winter wonderland in Edmund Street’s Nations House. Sarah and Nick Bolton had worked their magic once more to showcase their Christmas Decorators business, which was created in the exclusive US ski resort of Aspen, Colorado, and is now developing into a fast-expanding franchise. What began as a distraction for Sarah, 37, while Nick, 38, ran his snowboarding business, is now a £500,000 turnover venture. Back in 1994, Nick had worked behind bars “throwing bottles around” but was desperate to do something he enjoyed before “getting into the rat race”. He was one of the first snowboarders in the UK and decided to teach the fast-emerging sport to beginners. So, thinking big, he headed for Aspen, the winter playground of the rich and famous, where anyone who is anyone in Hollywood has a home. “A couple of mates were going to be my business partners, but when it came to the crunch and getting on the plane they backed out. So I thought, ‘sod you all, I’ll do it on my own’,” he said. He rented an eight-bedroom lodge and in the first year three UK TV crews had flown out to feature his Rocky Mountain Snowboard Tours. “Back then, one in 100 people on the slopes were snowboarders, now it’s more like 50:50,” he added. By then, his girlfriend, Sarah, had quit her primary school teacher job and joined him. He said: “Sarah hates snow and skiing and wanted to do something on her own, so she started decorating some of the lodges we ran. “We have both always loved Christmas and she made sure our lodges and restaurant looked really festive at Christmas time. People asked us who did the lodges.” Sarah had always had a passion for design, and had done an art degree and interior design in Birmingham. She said: “I was a teacher, but was also the art and display coordinator in the school.” The turning point came one Christmas when a local celeb’s pipes burst and she decamped to a nearby hotel. Sarah and Nick offered to decorate her suite and did such a good job that platinum-selling songstress Mariah Carey stayed for three weeks, even though plumbers had finished their repairs. Word spread around Aspen’s showbiz community and the following year Sarah and Nick were decorating for the likes of Goldie Hawn and Kurt Russell, Kevin Costner and Jack Nicholson. But, after 12 years in Aspen, their first youngster was approaching school age. Nick said: “We had to decide where he was going to school, so we decided that with mine and
Nick and Sarah Bolton, at their Christmas in May showroom, in Liverpool
Nick Bolton with Father Christmas, at the Nations House HQ Code: at090511cxmas-2
Sarah’s mum and dad missing their grandkids, we would return to Woolton. It was 2005 and we were at a loose end and thought, let’s see if the Brits go for this.” They started Christmas Decorators from their living room floor as a “hobby business” and word soon spread around the local footballer fraternity. “We decorated for Wayne and Coleen Rooney, and Phil and Julie Neville,” said Nick. Then, X-Factor judge Sharon Osborne got in touch and Sarah and Nick had broken into the UK showbiz circuit. Sarah said: “Sharon’s was the big one. It was all traditional and lights and lots of outdoor work. It was great.”
It also led to an introduction to Elton John, who had seen their work at the Osbornes’ place. Nick said: “Sarah doesn’t get starstruck, but she was quite giddy when she rang me from the front path of Elton John’s house.” She added: “I was like a kid in a candy shop at Elton’s. They said they would bear us in mind this year.” After a successful first year in the UK, the couple have now extended the business model to include commercial clients, with Liverpool’s Hard Day’s Night Hotel among the first. Nick said: “They contacted us and said they wanted New York in Liverpool for Christmas.” Another prestigious commission
Pictures: ANDREW TEEBAY/ at090511cxmas-1
cemented their standing in the UK hotels sector after they were asked to dress the entrance to London’s famous Claridge’s hotel. Nick said: “That was probably our most exciting commercial client. Everything we do is tasteful. We don’t do inflatable Santas.” Their special touch is now so popular that the couple are recruiting franchisees. Nick explained: “The problem for us was one day we would be in Edinburgh and the next in London, and you can’t run a business like that. That’s why I believe franchising is the way forward. “When it comes to decorating, it is all local staff, and if there’s a problem we can be there in 10 minutes.” The first franchisee was recruited in Eastbourne, Sussex, in 2007, and now there are 16, with another 10 lined up. Nick said: “We have to give them training in two weeks that we learned in 10 years. The franchisees keep us busy all year round because it is important that every franchise is able to deliver the same quality that we do.” Development of the franchisee network will be measured, with 20 in place by the end of the year, but ultimately the couple have identified 54 potential UK territories. Nick said: “Christmas doesn’t just happen. I have spent the past four weeks in May in back-to-back meetings with hotels, restaurants, estate management companies and our franchisees.”
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LDP business .co.uk
LIVERPOOL’S INVESTMENT SPECIALISTS
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Mixed picture for Japan in wake of March tsunami JAPAN’S unemployment rate in April rose for the first time in six months, while the nation’s industrial production rebounded weakly from a record drop, following March’s earthquake and tsunami. But output was seen picking up strongly in May and June as carmakers and other manufacturers get back on line.
The jobless rate edged up to 4.7% from 4.6% in March due to job losses in the retail and wholesale sectors, the Ministry of Internal Affairs and Communications said. The number of workers in those sectors dropped in April by 390,000 from a year earlier. “A lot of part-time workers in the wholesale and retail sectors lost their jobs due to
weak demand following the March tsunami,” said Hiroshi Watanabe, economist at the Daiwa Institute of Research. The number of workers in the hotel and restaurant businesses in April also fell by 30,000 from a year earlier, underscoring a plunge in tourism demand following the March disasters and an ongoing crisis at a
tsunami-crippled nuclear power plant. Japan’s industrial production – a key barometer of economic health – inched up 1.0% in April, from the previous month, after plunging a record 15.5% in March amid supply disruptions in the wake of the disasters. The earthquake and tsunami killed more than
24,000 people and destroyed hundreds of factories in Japan’s coastal north east, forcing manufacturers such as Toyota and Sony to suspend production. The disasters sent Japan’s economy into a recession, and Moody’s Investors Service warned it could downgrade Japan’s sovereign ratings due to faltering economic growth.
Doughnuts giant reveals plan to expand across UK by Jamie Grierson
LDP CORRESPONDENT
business@liverpool.com
DOUGHNUT chain Krispy Kreme is to double its number of UK stores over the next five years, as the country’s swelling demand for sweet treats continues. The company, which produced more than 50mdoughnuts for UK customers in the year to January, aims to open 10 stores a year. The plans will see total stores across the country double from 47 to nearly 100 by 2016. Krispy Kreme – which first came to the UK in October, 2003, through a concession in Harrods department store – will open its next store in Leeds in July. The expansion plans came as Krispy Kreme – which also has a presence in more than 200 Tesco stores – reported a 1.4% increase in like-for-like sales and total sales of £33.4m, compared to £29.7m the previous year. In the last year, the UK company opened six new stores in the UK, including Bristol, Cardiff and Liverpool, and 50 cabinets in Tesco. Krispy Kreme makes doughnuts overnight in so-called “factory stores”, which are based in out-of-town centres and distributes to smaller shops situated in high foot-fall areas, such as shopping centres and major transport hubs. Rob Hunt, joint managing director of Krispy Kreme UK, said: “We are excited about growing into new UK markets and are confident in our expansion plans. “Krispy Kreme is a brand that consumers are passionate about, and our store openings speak for themselves with customers queuing overnight to be the first through the doors.” Krispy Kreme was founded in 1937 in North Carolina, in the US, where the parent company is still based.
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Pressure grows on mobile producer MOBILE phone giant Nokia was under further pressure yesterday as it revealed it was struggling to beat off competition from rivals like iPhone producer Apple. The Finland-based firm – which last month announced 700 job cuts in the UK – said it now expects sales for devices and services to be “substantially below” its previous expectations. The company had hoped for net sales of between £5.3bn to £5.8bn between April and June. Nokia – which blamed its slump in sales on “competitive dynamics” and “pricing tactics by certain competitors” – is close to losing its crown as the world’s largest mobile phone maker to Apple. But other companies in the top-end smartphone market, such as Research in Motion’s Blackberry, and pressure from software such as Google’s Android, are also hitting the Helsinki-based firm. Nokia said operating margins in the second quarter will also be substantially below expectations of 6% to 9%, due to lower than previously expected net sales. In the full-year, the company said it was no longer “appropriate to provide annual targets for 2011”. Nokia said it is taking immediate action to address the issues that are affecting its devices.
LDP CREATIVE Krispy Kreme is aiming to double its number of outlets in the UK over the next five years
Great Western cleaners to strike
Pace move
WORKERS who clean First Great Western Trains are to stage two 24-hour strikes in a row over pay. Members of the Rail, Maritime and Transport union employed by con-
SET-TOP box maker Pace has turned to former Royal Mail chairman Allan Leighton to help turn around its ailing fortunes. Mr Leighton, who is also currently deputy chairman of Selfridges, will take over from current chairman Mike McTighe in the summer.
tract firm Mitie will walk out from 6am on Friday and on June 10 and at the same time on June 10. RMT general secretary Bob Crow said: “While company share-
holders have seen dividends increase by 15.4% off the backs of their workforce, our cleaner members on Mitie’s First Great Western contract have been offered at the very most
pathetic 1% this year – a massive kick in the teeth for staff already fighting to exist on low rates of pay. It’s that insulting approach that has led to this strike action.”
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LDP business .co.uk
LIVERPOOL’S INVESTMENT SPECIALISTS
IN ASSOCIATION WITH
location
Property developers ignore restrictive covenants at their peril
view point
by Janice Weatherly, partner at law firm Weightmans
A RECENT case has highlighted the potency of restrictive covenants and their ability to scupper development if they aren’t dealt with. In George Wimpey, Bristol and
Gloucestershire Housing Association, both the national housebuilder and the housing association applied to the Land Tribunal to have a restrictive covenant discharged which prevented buildings being built on their land. They wanted the covenant to be discharged on the grounds set out in Section 84(1) of the Law of Property Act 1925, that it impedes some reasonable use of the land and either does not secure any practical benefit of substantial value or advantage or is contrary to public interest and money would be adequate compensation to those disadvantaged. Wimpey Homes owned the land and transferred two small pieces to
Firm wins deal at university NORTH West architectural practice Cassidy and Ashton has been contracted to deliver two projects at the University of Liverpool’s Sydney Jones Library. The firm will design a Muslim prayer room and a postgraduate and academic study area at the complex in the university’s South Campus, in Oxford Street. The first project will see a currently vacant 320 sq m area of the library transformed into a prayer room, with separate male and female sections, storage room and a washing facility. Cassidy and Ashton will also draw up plans to convert the Senate Drum building – where the university senate previously met – into a quiet reading and study area for postgraduate students and academics. The 1,000 sq m building will be open plan and will feature curtained walls and a single entrance to minimise noise. Director at Cassidy and Ashton, David Owen, said: “We are delighted to be continuing our working relationship with the University of Liverpool, for whom we have previously designed the Equine Hospital, Confucius Centre and refurbishment of the Harold Cohen Library.”
the housing association. The local authority granted planning permission for the development in 2006 and Wimpey began works in 2007. Objectors to the development, benefiting from the covenant, instructed solicitors to ask the developers to cease work. Wimpey continued work on site. In January, 2008, a claim was brought against Wimpey Homes claiming the benefit of the restriction and seeking an injunction. The claim was stayed until Wimpey Homes and the Housing Associations application to the Land
Tribunal was resolved, during which time building continued onsite. The tribunal agreed the proposed use of the land was reasonable, and that the covenant impeded their use of the land. However, it stated that the benefit of the covenant to the objectors was of substantial value in respect of the value of their houses, their outlook and the potential for increased flooding due to any development. On this basis, it ruled that the applicants had not established the ground required to have the covenant discharged. This decision is important since
‘The works carried out were not due to ignorance’
Trust offering serviced offices in Knowsley by Tony McDonough
LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com
BUSINESS to BUSINESS Commercial Property
For Sale On behalf of the LPA Receivers
Former NurSiNg Home / DevelopmeNt opportuNity 4 lorNe roaD oXtoN BirkeNHeaD For further information contact Hannah Quinn or robert Deacon
Industrial Property UNITS TO LET Bootle Area 5,000−15,000 sqft. Flexible terms 0151 486 0004
Commercial Premises INDUSTRIAL UNITS To Let. South L’pool 500 to 4000 sqft, monthly tenancy, competitive rents. From £50pw Tel: 0151 427 5051
This space could be working for you. For details telephone
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even if the applicants had proved their ground, the covenant would still not have been modified or discharged. The tribunal stated that the works already carried out by Wimpey was not due to ignorance but as a strategy to force the development, despite the objections of local residents benefiting from the covenant. It is easy for developers to forget that those who have the benefit of restrictive covenants can cause them no end of headaches and, as such, their objections should be dealt with before works begin. The tribunal stated it is not inclined to reward parties who deliberately flout their legal obligations.
Knowsley Industrial Park is one of the biggest of its kind in Europe Picture: ANDREW TEEBAY/ at190511cindustrial-5
SERVICED offices are available for the first time at Knowsley Industrial Park, near Kirkby. Knowsley Development Trust (KDT) has launched the development at its North Mersey Business Centre operation, in Woodward Road. The furnished offices – from 130 sq ft to 200 sq ft – are designed for up to two or four people and come complete with personalised telephone number, broadband and a reception service. Tenants also benefit from 24-hour access and free parking. KDT says a major advantage for occupiers is the availability of free on-site business support. Over the last 21 years, the organisation has advised over 2,000 businesses who have gone on to create more than 5,000 jobs. As well as the serviced offices, KDT has also introduced a “virtual office product” at the centre. This includes a registered postal address at the Earl of Derby Complex, mail redirection, personalised telephone number, phone answering and a reception service. A range of meeting rooms are also available for hire and shared office space can be rented on a hot desk basis as required. KDT chief executive Steve Dumbell said: “Our aim in launching these products for micro companies is to be able to cater for businesses at every stage in their development. “It will now be feasible for a new entrepreneur to start here with a virtual office, move on to a serviced office and then in time rent one of our larger suites as they expand.” North Mersey Business Centre is currently home to around 100 companies employing more than 750 people. The success of the scheme has resulted in KDT winning a string of major awards, most notably the prestigious Queen’s Award.
13
Wednesday, June 1, 2011
LDP business .co.uk
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
Fundraising boost as Age Concern opens new stores PROPERTY agency Smith and Sons has secured a double letting for Age Concern Wirral. The organisation has signed a lease for a 1,000 sq ft unit at 8-10 Church Road in Bebington. The store will be used to raise funds for the organisation through the re-sale of charitable donations. Wirral’s last Lord Mayor, Cllr Alan Jennings, attended the official opening as one of his final official mayoral duties. A second store also opened at Allport Lane, in Bromborough, with local actor and comedian, Ricky Tomlinson, declaring the facility officially open. The former Ethel Austin store extends to 2,897 sq ft and again will be used as a fundraising venture. The lettings mark the charity’s commitment to local expansion, as well as a bid to increase fundraising through the sale of secondhand clothing and other household items. Simon Guest, of Smith and Sons, said: “Age Concern Wirral is an expanding organisation that we continue to work closely with.”
From left, Malcolm Mottershead, Age Concern; Cllr Alan Jennings and wife, Cathy; Simon Guest, of Smith and Sons; and Age Concern Wirral Trustee, George Rennie
Kersh auction raises £2.3m by Tony McDonough
LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com
SUTTON Kersh’s latest Liverpool property auction generated sales of more than £2.3m. It was “standing room only” at the event at the Hilton Hotel, in Liverpool city centre. High pre-auction activity resulted in 13 properties from the catalogue of 63 being sold prior to the sale. A further 20 sold in the room and seven more sales completed afterwards, and the firm expects more deals to be brokered over coming weeks. The best-performing lots of the day were the former Lambeth Hotel, in Smith Street, in Walton, which sold for three times its guide price, and a vacant residential property in Southport Road, in Bootle, that sold for £40,000 over guide price. The former Lambeth Hotel made local headlines when it was set alight in an act of vandalism in 2008. The three-storey property, still fire-damaged, was highlighted as a development opportunity and was guided at £25,000. Following a “fierce” bidding war between an anonymous proxy bidder and a telephone bidder, the property eventually sold for £75,500. A three-bedroom semi-detached vacant house in Southport Road, in Bootle, had previously been for sale on the high street for £74,950 prior to be auctioned. Guided at £50-55,000 in the catalogue. a competitive bidding war in the room resulted in the property selling for £90,500 – over £40,000
location
Riverside secures charity RIVERSIDE Park has welcomed its second charity to Bromborough Business Park. Crossroads Care Cheshire West, Wirral & Shropshire, a charity that cares for carers throughout Wirral, Cheshire and Shropshire, has moved into 4,300 sq ft unit. A spokesman for Riverside Park said: “It is another great addition to the tenant profile that we have secured our second charity. Clearly, other forward thinking charities who want modern accommodation, with ease of access, are welcome.” Donna Baxter, finance manager at Crossroads, added: “When we decided to move, Riverside Park was top of our list. They have been so helpful in organising a smooth transition and we are delighted with the quality and space.”
LIVERPOOL CITYOFFICES
200-100,000SQFT Cathy Holt, of Sutton Kersh above guide price and £15,000 over its high street value. Wavertree Town Hall was also up for grabs. Offered as lot two, the historic building sold in the room for its guide price of £100,000. Cathy Holt, auction manager at Sutton Kersh, said: “We are pleased with the result. The auction was well-attended and to sell 20 out of 50 properties in the room is a good result in current market conditions. “Further sales are currently in negotiation, and we hope to push over the 65% success mark.”
OFFICES@DOWNING.COM
14
Wednesday, June 1, 2011
LDP business .co.uk Aerospace & Defence
66012 53012 EdinUSTrkrTst 63612xd 31712 25138 Forgn & C
Index 3395.25 ▲ 22.25 320
100
Avon Rbbr
320
+3
36978 29434 BAE Systems 33014xd
-12
73612 51958 Chemring
66512
24758
22658xd
+34
38078 26134 Meggitt
36634
+6
665
636 xd
+6
19214
535
Cobham
RllsRyceHld
15912 11114 Senior
+912
155 xd +334
317
32334 21214 HendSmllrCos 31938
+638
37238 27314 Law Debenture 37238
+278
252
18614 Scot Am
248
+38
528
40978 Witan
516
+4
Fixed Line Telecoms
20178 12558 BT Gp
219
+234
344
25538 Barclays
27658xd +138
Bco Santander 720
+27
73078 59614 HSBC
63434xd +414
76
1218
1578 Ireland
30814 25734 Morrison W
30358xd -214
395
34558xd +238 419 xd
112
6738
4258
+38
1959 1525 Stan Chart
1628
+23
1182 940
42478
1360xd
+5
AB Foods
33934
2000 1688 Unilever
2306 1827 SABMiller
224912
+24
3121.07 ▲ 0.85%
F
Those securities which have increased in value since the previous close are shown in bold type.
May 31, 2011
Dec 1, 2010
s............ dealing suspended xd.............price ex-dividend xs ......... price ex-scrip issue xr ........ price ex-rights issue xc ..... ex-capital distribution xa................................ ex-all £......price value in £ sterling
To assist in the analysis of the market two figures are given for each sector. Firstly an index (set at 100 on January 1 1992) to give a comparison in the performance of various market sectors. Secondly an indication of the percentage change in the price of all the securities within a sector since the previous close.
-14
742
53712
Smith Nph
677
Household Goods
+1312
168
66
Pharma & Biotechnology
135 4634
+112
725
48334 Utd Business 580
-11
151
106
UTV
130 xd
84612 61412 WPP
Index 6653.41 ▲ 76.49
1971xd +31
STV Group
12414 4514 Trinity Mirror
-34
757
+912
3385
134812 1095 GlaxoSmthKln 1320xd 31
Vernalis
4012
88812
664
79812
+4
57012 38014 ICAP
48414
+114
990
98012
-912
544
Close Bros
London Stk Ex
977 xd +612
1257 76212 Rathbone
1209
1922 1154 Schroders
1638
94
821
230
115
MS Intl
21612
18234 13518 Vodafone Gp 169
23
Renold
29038 Rexam 108
400 xd +738
Smith DS
211
-58
1236
+16
2514 1214 Ashley L
1678
Oxford Inst
76212
2812 1134 Dixons Retail 1958
Volex Gp
35514 +3114
7434
34814 Halfords
40034
+218 +58 +34 +558
39314xd +118 950 xd
28718 19812 Kingfisher
+1
43678
11718xd +138
777
48914 Prudential
73712
+4
31158
+118
39878
+3
849
-12
59412 433
146
+134
2885 1724 Signet Jwlrs
2805
+314
523
48512xd -258
+14
56312 BSkyB D Mail Tst
9312 4814 ITV 1171 864
241 Albany Inv Tst
1251
786 AMEC
92
2012 Anglesey Mining 22934 Balfour Beatty 29 Beale 501 Compass Gp 478 Coral Prod
Price
Var 5Day
High
+14
126212
418
479
276
+12
-112
1158 xd
+4
7112 32178 xd
Pearson
1114
Low
89712 Dee Valley 32214 easyJet
96412
683 JD Sports Fashion
-4
170
+612 +1412
3512
1534 Johnson Serv
+334
56212
370 Nichols
37 591
-1 2
33814
-112
1504 1042 Go-Ahead Gp 1437
-13
240
1435 982
48918
+318
Holidaybreak 27434
+134
Intercontl Htls 1295xd +18
21278 Intl Cons Airlns 23612
+78
15214 12234 Ladbrokes
14858xd +134
11718 9038 Marston’s
107
-
916.86
1.11
-
216.58
3.54
Pratical Inv
-505.01
531.59
-
International Acc
-1024.32 1078.23
-
Pacific Acc
-254.35
267.74
-
Property Bonds
-2001.75 2085.16
-
HSBC INVESTMENT FUNDS (UK)
+5
+17
JJB Sports
12112
8312 NWF
46
1934 Park Gp
1257
1142
76212 Rathbone
Price
+17 +2
302
29014xd +312
22234 Sage
1912 334
AEA Tech
+53
20778 77
18234
+2
51912 36014 Berendsen
48418
-238
76612xd +10
Ashtead Gp
+834
800
+24
Experian
28578 23734 G4S
18312 Interserve
Personal Goods Index 21488.59 ▲ 521.39 1365 72312 Burberry Gp
1319
409
364
High
139
+2
+18
14312
950 xd
+49
+45
34
2314
+1
-3
3334
-18
+14
Hyder Cons
+29
11714 RSA Insurance
63112 520
622
-2
Utd Utils
+212
291 xd
-4
2858 758
API Gp
2858
1334 414
414
564
Cape
52734xd
134
1
Crimson Tide 138
214
112
Dawson Intl
2
838
434
Eckoh
818
170
1112 JJB Sports
2314
+1 -1 8
86
3034 Man Brnze
52
12
4
Metalrax
1112
Portmeirion P
48712
-5 -1 2
55
Redhall Gp
293 xd
54
13
Scapa Gp
54
12012 79 34
13014
9834
Smiths News 98 xd
1914 Speedy Hire
3212
+5 +34
+914
3512 1534 Johnson Serv 3334
142
355
106
Swallowfield
Var 5Day
+558
106 xd
-4
7938 67
Uniq
7814
-3 4
670
Young A
66612 +3434
-3 8
1914 Speedy Hire
3212
-34
+14
4634
3534
Sportech
4038
-38
- 58
42
2514 Telme Gp
4014
5514
3234 UK Coal
4012
- 14 +2
+112
12112
+212
+612
46
+1
+5
2000
1688 Unilever
1971 xd
+31
+26
1209
+7
+45
63112
520 Utd Utils
622
-2
+712
138
457.60
2.83
-313.86
326.42 1.10
European
-
813.20
0.70
Far East
-
557.30
1.80
Inc & Gwth
-
209.30
3.30
International
-
422.90
0.40
North Amer Acc
-
464.40
0.10
Sing ASEAN
-
217.18
0.38
In order to give a greater range of Unit Trust information, covering a larger number of trusts, the list of funds changes each day as follows: UNIT TRUST MANAGERS DAYS PUBLISHED A to Com ................................................... Tuesday F to Inv....................................................Wednesday JP to Pru...................................................Thursday Roy to T .........................................................Friday
FUNDS High
Low Funds
Price
Var
Consols
£761132 Cons 4% .................£7734
£582732
£50 Cons 212% ..............£5334
Conversions
£8134
£69 Cnv 312%.................£7212 -132
Treasury
Currency
Tourist
Buy
Sell
Australia
dollars
1.46
1.540
1.545
dollars
-
56.61 4.50
£109316 £1003132 Cnv 9% 11 ......... £1003132
Country
Canada
3.68
HILL SAMUEL UNIT TST MGRS
£90932
£ ABROAD
+214
1058.60
- 54.19 -
Capital
+78
+14
510
133.80
INVESCO FUND MANAGERS
Armour Gp
328
-114
+414
19012
30834 21014 Prem Farnell
+338
Ultima
-3
34634 15214 Northgate
+138
78
1514
6812
Price
9712 Redrow
1517 1216 Severn
17312
▲ 1.30%
Low
28578xd +434 36412
675
550
33734 Menzies J
12134 8414 Rentokil
+1038
Pennon Gp
51012xd-2212
550
13712 xd
2
-212
29334
578
245
Var 5Day
822
819
299
29158 PZ Cussons
736
+1212
29478 20534 Electrocmps
+4
527
UK Equity Inc A
-15 +612
Index 890.78 ▲ 14.27
1867
2199xd +53
1158xd
124712
418
1867 1313 Aggreko
452
AMEC
126212 89712 Dee Valley
AIM
47634 +1334
+19
31818xd +114
3.40
224.50 3.08
HENDERSON HORIZON FUND
Sterling Bd Unit Tst
34618 27714 Centrica
Index 4682.40 ▲ 83.87
Index 25776.31 ▲ 103.21
-15 +3712
+29 +2514
675
Oil Equipment & Services
363
56212
+34
Capita
up 16.01
124712
138
+718
-
0.99
270.80 3.04
63.98
-224.50
European Smllr Cos A -
Utilities Index 4713.29 ▲ 26.04
14714 10134 Logica
54912 De La Rue
1347
+7
63212 48414 National Grid 626
810
Tullow Oil
1631xd
-1 2
984
1493
+3 4
9712
44114
99112
235
30934
Bunzl
2336 1554 Ryl D Shell B
TUI Travel
12612 85
63512
28212 Premier Oil
27178 190
36414 23014 Invensys
658
535
Monthly Inc
+458
107.20
-
+234
Thomas Cook 15038
+1
-
-270.80
Gilt & Fixed
20618 145
1887 1344 Whitbread
Balanced British
-3 4
1797
783
-114
Stagecoach
+418
174.03 4.25
Index-Linked Acc
23712
5338
Kewill
-1 2
153
1975 1271 Autonomy
-4
Cairn Energy
Punch Taverns 7078
6112 3012 Emblaze
140612
49314 366
9038 58
+338
-162.60 GUARDIAN
-1 4
Mitchells&Btlrs 31814
Index 753.27 ▲ 5.17
46838xd +834
30278 BP
32434
274
+7
Software & Comp Servs
156412 1002 BG
+112
59012 47138 Reed Elsevier 551
1112
+418
-212 +112
71
DAILY POST REGIONAL INDEX 1247.64 7934 xd
832 45314
Land Secs
509
1251 786
43712
39814 WH Smith
Oil & Gas Producers
Index 4270.14 ▲ 31.54
62712 382
49214
Standard Life 20978xd +78
Media
+49
2270xd +17
+618
31134 21114 Resolution 24434 173
-414
Index 8495.77 ▲ 150.87
12334 7558 Lgl & Gen
42712 32714 M & S
2326 1868 Next
186612
BBA Aviation 21834xd +114
47778 30534 Aviva
28718xd +314
Mothercare
1723xd +36
1872 125118 Marsh McL
14312 11714 RSA Insurance 13712xd +138
Index 4486.73 ▲ 39.08
-278
414
JD Sports
Index 2645.13 ▲ 46.15
545
-114
Support Services
1754 1307 Admiral Grp
Life Insurance
215 xd
23718 Inchcape
Industrial Transportation
24034 175
25038 18812 Home Retail
96412 683
Weir Gp
+12 -12
400
151
28712
603 xd
1995xd +11
256
334 AEA Technology
Inmarsat
1995 894
377
4112 Adv Medical
575
334
774
1258
4312 Molins
Cosalt
Debenhams
594
108
338
Brown (N) Gp 29118
3912
+7
638
7738 53
35714
1038
IMI
Index 3859.53 ▼ 9.87
Index 1679.50 ▲ 17.02
31114 221
1912
1112 642
Mobile Telecoms
Nonlife Insurance
13734xd +38
Low
-138
+4
316 xd +818
High
+512
38814
-314
17312 Morgn Cru
96
780
39178 18634 Fenner
3634
9834 Laird
10214 Dunedin Sml
Charter
+112
1993
333
49214 37214 Edin Invst
85312 567
37834
2063 1346 Spirax Srco
179
146
39734 18212 Bodycote
45
Index 1818.09 ▲ 15.20
17118 Dundn IncGth 222
Index 7381.23 ▲ 38.45
1458
1114
General Retailers
228
Industrial Engineering
Fresnillo
68712xd +10
Index 3269.30 ▲ 37.08
+1
4314 2214 Taylor Wimpey 3678
1682
Coral Prod
Electronic & Electrical
-1514
13014
1258 478
1429 1018 Smiths Gp
138
9712
89712
72412 36738 Cooksn Gp
226
Br Assets
+6
Index 3299.58 ▲ 45.17
1378
57412 Candover Inv 57412
+7
General Industrials
1378 1062 Scot&Sthrn
777
+1
1033 72812 Provident
31878xd +218
14012 105
Enterprise Inns 7858
Euro Sel Opps Income
+914
28814
44858 28958 Intl Power
+114
+2
Gilt & FI
+2
38234
363
16034
4012
29312 Alliance
12234 77
+5
24678
5514 3234 UK Coal
385
32214 easyJet
GARTMORE FUND MANAGERS
+2
+48
-22
Index 6123.57 ▲ 40.02
479
2441xd
Compass Gp 591
20814 Restaurant Gp 29638xd +138
4245
Equity Inv Instruments
501
9434 Rank Gp
25418 3i
550
3153 2037 Carnival 594
335
5015xd +86
+4
0.01
153
4712 288012 Rio Tinto
-1212
762.90
+612
6655 4425 Randgld Res
668
-
-124
33114 25014 SEGRO
Domino Ptg
Sth East Asia
59712
Brit Land
+28
385
0.01
Index 4732.30 ▲ 32.50
2919 2220 Daejan Hldgs 2726
1600
705
1997.00
60412 429
1983 1355 Lonmin
+12
129.10
-
+13
832
+358
-
Spec Sits
2403
44158
46514
0.10
Jpan Spec Sits
Travel & Leisure
263112 168412 BHP Billiton
832
Drax Gp
0.53
-14
44158 28012 Gt Portland
46934 333
4.22
222.40
154 xd
+18
Electricity
206.20
-
McBride
114
+738
Index 8501.39 ▲ 73.07
-
196
340
-134
Income Plus Japan
35314 28438 Big Yellow Gp 34114
+38
53118
11514
+6
1.66
3030
1314
12412 7834 Marshalls
2176
327.00
1329xd +17
Antofagasta
Glencore Intl
+134
2231 1784 Imperial Tob
-
1634 761
Kazakhmys
6114
+2
Gwth & Inc
3437 2254 Anglo Amer
1671 965
6312 2834 Low Bonar
2722
0.32
+5
53118 514
-22
274512 2091 Br Am Tob
610.90 1817.00
743 xd
+38
1281
Index 31474.37 ▲ 41.55
361
Yield
-
Bellway
Redrow
1418 88612 Kier Group
Tobacco
285
Offer
Price Gross
-
75312 511
+712
61112
Index 1958.11
139
133018 +1534
+134
Real Estate
Index 25716.48 ▲ 107.12
-1
2119
Costain
+3
Price
American
+78
2119 1460 Johnsn Mat
190
Spirent Comms
Bid
Terms
Amer Spec Sits
11338
+214
265
+14
Barratt Dev
Index 6062.31 ▲ 41.17
171058 102312 CRH
+114
15418
Aga Rngmstr 11814xd
15814xd +158
22912
9114
16014
70
16934 5834 Elementis
35714 22934 Balfour Beatty 32178xd +334
10234 7134 Psion 10412
Cancel
FIDELITY INVESTMENT SERVS
74
+45
Index 3945.85 ▲ 22.50
2512
119
3648 3015 Reckitt Benck 3437
Construction & Materials
57212
138
61412 36758 Mondi
+94
25514 ARM Hldgs 1934 BATM
Index 6586.69 ▲ 80.79
General Financial
Croda
651
Forestry & Paper
1947xd +44
1947 971
+28
317712
UNIT TRUSTS Fund
28
360 280112 AstraZeneca
-2
Tech Hardware & Equip
50212 37614 Greene King
Index 9568.82 ▲ 54.33
50
Mining
1075xd
2058xd +67
41258 31114 FirstGroup
+12
Dairy Crest
+12
T
PACE
-112
1294
W
160
38818
1301 1033 Diageo
T
205
Index 3800.99 ▼ 5.77
Tate Lyle
M
FTSE-Rebased
Health Care Equip & Serv
62012
May 23 - May 27
Share price (pence)
+24
Premier Foods 3214
Chemicals
May 16 - May 20
-1612
+312
Index 7796.81 ▲ 254.06
May 9 - May 13
SPOTLIGHT
70
775
3518 16 40918
5820
115
5930.75 ▼ 0.08%
KEY FTSE-100
Travis & P
2261 1223 Wolseley
Index 756.49 ▲ 1.93
FT ALL-SHARE up 26.45
5875
250
5989.99 ▲ 0.86%
20 DAY MOVING AVERAGE down 4.64
5985
75912
43638
36412 Britvic
20-Day Moving Average
Cranswick
62812
518
+3 +178
1077
47712 Carrs Mill
90712 735
Index 9938.90 ▲ 97.57
Thorntons
Index 5301.31 ▲ 75.74
775
Beverages
65
Food Producers
-34
5218 3758 Ryl Scotland
31714 Sainsbury
44058 37712 Tesco
-4
7758 4934 Lloyds Bnking 52
1395 1000 Barr (AG)
-14
Index 4905.07 ▲ 27.22
Index 4561.15 ▲ 26.34
FT-SE 100 INDEX up 51.12
6040
+12
7312
Food & Drug Retailers
Banks
87512 610
+38
4658 Cble&WWwide 4958
7312 4312 KCOM 23718 10914 GKN
FTSE 100 INDEX
5930
+338
20034
1127 709
Closing Indices
Index 2440.86 ▲ 33.88
92
Index 5120.36 ▲ 65.46
Keep track of all the major share moves of the day with our live FTSE ticker at www.ldpbusiness.co.uk
-1 +258
6278 4238 Cble&WComm 4514
Automobiles & Parts
LondonStockMarketatClose
1.53
1.592
1.594
£61 £11734
£50 Tr 212% ................. £553132 £10858 Tr 9% 12................£10914
+58
£107932 £1031132 Tr 5% 12............. £1031132
-132
Denmark
krone
8.16
8.524
European Union
euro
1.10
1.144
1.145
£121516 £1152532 Tr 8% 13.............. £116116
-332
Japan
yen
128.35
133.730
133.830
£114332 £109532 Tr 5% 14............. £1101316
-116
£1112932 £105732 Tr 734% 12-15........£10614
8.534
New Zealand
dollars
1.86
1.996
2.001
Norway
krone
8.49
8.856
8.857
Poland
zlotys
4.01
4.515
4.524
Sweden
krona
9.75
10.159
10.169
Switzerland
francs
1.34
1.402
1.403
£32838
£30414 Tr 212% IL 16 ...... £3281132
£142316
£1322132
£147132
£1332732
Turkey
new lira
2.48
2.623
2.633
War
United States
dollars
1.58
1.644
1.644
£8334
Tr
834%
-132
17 ............... £136
-116
£140132
-18
£6712 War Ln 312%.............. £77
-114
Tr 8% 21..............
Last night the pound was worth: $1.6440 (down 0.0013) ....... 1.1441 euros (down 0.0087) ........128.35 yen (up 1.73)........ Its trade weighted index was 80.20 (down 0.40) Metals in $ per troy ounce: Gold 1518.50 (down 7.75)........................Silver 36.95 (down 0.22) ....................... Platinum 1779 (up 5) ....................... UK base lending rate 0.5%
15
Wednesday, June 1, 2011
LDP business .co.uk London market THE FTSE 100 Index pushed ahead yesterday as hopes of a second EU bail-out for Greece lifted confidence and offset gloom from the US. European officials said a review of Greece’s position was likely to conclude over the next 24 to 48 hours, while European finance ministers were reported as saying they wanted to avoid a complete restructuring of the country’s debt. The FTSE 100 Index closed 51 points ahead, at 5989.9, as investors returned from the bank holiday weekends. The gains came despite Chicago PMI figures in the US showing a drop in manufacturing activity in May, while an index of US consumer confidence fell to its lowest reading for six months. The pound was down against the euro at 1.14, as the single currency strengthened in wake of the Greek developments. Sterling was also down against the dollar at 1.64. Building supplies firm Wolseley was one of the top performers, amid expectations that it will put three UK divisions up for sale, including Build Center. The company, which is due to post a trading update today, rose 3%, or 67p, to 2058p. Trading and mining firm Glencore posted gains despite Japanese broker Nomura sticking a “reduce” verdict on its shares. The biggest Footsie risers were Johnson Matthey, up 94p at 2119p, Serco, ahead 19.5p at 577p, Fresnillo, up 48p at 1458p and Wolseley, ahead 67p, at 2058p. The biggest Footsie fallers were Lloyds Banking Group, down 0.7p at 52p, Eurasian Natural Resources, off 10p at 845.5p, Wood Group, down 5.5p at 628.5p and Vedanta Resources, off 17p, at 2152p.
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
market comment
Prospects foroiland miningfirms remain uncertain
YOU would think with petrol pump prices as high as they are, there is little scope for concern about the oil industry – but, actually, the sector is not having it all its own way. Recently, the industry has seen one controversy arise just as another has been settled. In January, BP announced a deal to help Rosneft, the Russian oil company, explore the Russian Arctic for oil and ject in Mongolia, in an area with no gas. This angered the local partners in infrastructure, run by a government TNK-BP, the British firm’s existing with no experience in dealing with joint venture in Russia. Discussions resource projects, and where they will between BP and its TNK-BP partners have to mine far underground (rather have become extremely acrimonious, than the cheaper “open cast” and an injunction has been method). issued to hold up the deal. This has meant that comIn contrast, Tullow Oil has modity exploration costs are just reached a settlement with rising with no end in sight, the Ugandan government to while at the same time the finalise the purchase of assets certainty of benefiting fully from Heritage Oil. from any resulting profit This was agreed about 12 stream is falling. Email us with months ago, but was held up Industry analysts estimate your views at by a demand for capital gains that the exploration and develletters@ tax to be paid by Heritage. dailypost.co.uk, opment costs of a new oil field The eventual settlement or write to us have risen by about six times PO Box 48, Old involved Tullow underwriting over the last 15 years or so. Hall Street, the disputed balance of the tax There is a risk that governLiverpool bill, potentially adding to the ments may change the rules L69 3EB cost of acquisition. on how those profits are split, The point of relating these even once the investment is stories is to illustrate the increasing made and profitable production is difficulty of finding natural resources achieved, with Venezuela being a parin remote geographies or environticularly egregious example. ments that are potentially hostile physThis could be perceived as “bad” for ically, politically or socially. This commodity shares. However, as long as applies both to the oil industry and demand outstrips supply, these extra also to mining companies. Rio Tinto costs will be passed on to the ultimate recently bought a majority stake in consumer by the resources companies. Oyu Tolgoi (apparently pronounced This is currently still the situation, “Oi-you Tall-goy”), a large copper probut the end of commodity cycles is
What do you think?
Precious commodity: oil firms are being forced to drill in increasingly difficult places to keep the world in petrol Picture: DANNY LAWSON often written in the actions of the companies. Up until 2007, the resource companies were unusually disciplined in their spending on new projects. Early tendencies to increase capital investment were stifled by the credit crunch. As a consequence, new supply has been limited. However, now that confidence in the medium-term outlook has returned, product prices have risen and cash is flowing through the door and, as a result, mining and oil companies have decided to start spending again.
Resource companies’ share prices are currently looking statistically cheap when compared to their recent history, but any sense of opportunity may be an illusion, as the cost base is rising and the risks are slowly increasing. The party may not be over yet, and may not be for the next two or three years, but it may be prudent to watch for the band playing its encores and stay a little closer to the exit door. Jim McCabe, Senior Equity Analyst, Investec
For twice-daily FTSE updates from Rensburg Sheppards, log on to www.ldpbusiness.co.uk
business diary Wednesday, June 1 A networking event for people in the charity and voluntary sector has been organised by Liverpool Chamber of Commerce and Liverpool Charity and Voluntary Services. The free event, from 5.30pm-7.30pm, is being
held at Barclays Corporate’s office at 20 Chapel Street, and the bank will provide some insights into aspects of charity funding and finance. To book, call 0151 227 1234. Thursday, June 2 Merseyside’s self-proclaimed “geek com-
munity” will be gathering once again for the next Ignite Liverpool event. Ignite sees presenters given five minutes to talk about their passions. For information, visit www.igniteliverpool.defnetmedia.com Tuesday, June 7 QVC’s general manager James Keegan and its training and development consultant Jenny
Proctor will present a two-hour course outlining the QVC approach to the customer experience. The Knowsley Chamber of Commerce event is free to members and £12 for non-members. It starts at 4pm and is at QVC, South Boundary Road, Knowsley Industrial Park. To book, visit www.knowsleychamber.org/events.php
Wednesday, June 8 Bruntwood chairman Michael Oglesby is the keynote speaker at the summer philanthropy lunch. It costs £20 for Liverpool Chamber members and £30 for non-memebrs and is at Radisson Blu, Old Hall Street. It is from 12pm-2.15pm – to book, call 0151 227 1234. Thursday, June 9 The latest Fish! net-
working event is taking place from 5.30pm-8pm at Italian Club, Bold Street. E-mail joel@ ubiquitypr.co.uk for more details. Thursday, June 9 A UK Trade and Investment roadshow on Financing the Future: Export Credits Guarantee is being held at Daresbury Laboratory. It will explain more about new ECGD
products that were announced in the recent white paper Trade and Investment for Growth, and how they can help all businesses, particularly SMEs, to export with confidence. The free event is from 1.30pm- 4pm. For more details, call 01925 400194 or email harrysavage.ukti @nwda.co.uk
16
Wednesday, June 1, 2011
LDP business .co.uk trading gossip ■
ACCOUNTANTS can be conscious of the perception that their work is considered quite dull. That can lead to trying to over-compensate, adding glamour where there is none. Take the latest missive from Mitchell Charlesworth, who have issued a “wake-up call” to non-executive directors. We get some fascinating tips, including that NEDs, as the non-executives are apparently called, should “take the ‘Jack Russell’ approach”. Trading Gossip wondered if this meant keeping wicket in a shabby hat and droopy moustache, below, but apparently it has something to do with dogs instead. Still on the animal theme, we are also told that “this T-Rex of a
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
the back page
Ensuring city’s tennis tournament is a smash
working day
Hazel Walker is business development manager of Northern Vision, organisers of the forthcoming Liverpool International Tennis Tournament. This is her working day. 7am: I wake up. Typically this is the time when I get a chance to survey world news, weather, sport and a bit of celebrity gossip before working life for the day begins. I’m lucky today as my son, Finn, has woken up late.
recession still has plenty of life left in it”. For the avoidance of doubt, it wasn’t us that put Mitchell Charlesworth and dinosaurs in the same sentence.
■
THE question for a long time has been what is the outlook for Rensburg Sheppards after the wealth management firm was taken over by global giant Investec. But it turns out not enough attention was paid to the Outlook of the Microsoft variety. Yesterday, as the systems were switched over, staff were unable to access their e-mails for more than an hour while a gremlin was sorted out, Let’s hope it’s not an omen.
LDP CREATIVE FOR the latest news from the creative sector
www. ldpcreative. co.uk
8am: The last 12 months have been spent on helping to drive the business from our city centre office, and I’m keen to get there a little earlier today. Just spoken with Liverpool One, who have invited Northern Vision to deliver children’s tennis lessons on Chavasse Park during half-term with Barry Cowan on hand to help. 9am: I’ve been sifting through my emails for the past half an hour, but this is thankfully because it’s a Monday. I get less through the week as our enquiries come more via the phone, our website and direct marketing tools and all the contacts we make. I’ve got lots of enquiries about Mansour Bahrami, the world-renowned tennis trickster and fans’ favourite from previous years. 9.15am: I’m attending a meeting with Brabners Chaffe Street, one of the first corporate sponsors to take up sponsorship with us in what is our tenth year. I’ve then got calls with the people who look after Martina Navratilova, Virginia Wade and Alan Mills, all attending this year’s tournament. 10.30am: Back in the office and we’ve just sorted the consignment of tickets ready to be hand delivered to sponsors and partners with just over two weeks to go until the tournament begins. 11am: Just had an email through about our tennis outreach programme with Liverpool City Council who have been fantastic supporters of the Tournament. This will start later this month working in parks, leisure centres and in private clubs to develop and enhance existing tennis programmes, as well as set-up new initiatives, working with clubs to get the very best out of players.
Hazel Walker – liaises with sponsors and organisations to ensure this month’s event runs smoothly Picture: COLIN LANE/ cl300109dreamjob-3
11.30am: I’ve now got a run of appointments with four of our many sponsors, partners and supporters namely Hilton Hotel Liverpool, Core Design, Grosvenor and Wild Thang. 2.30pm: I’m going to spend half an hour out of the business to freshen my mind for the busy afternoon ahead and grab some food at the same time. Just reading coverage online over a sandwich of Fernando Gonzalez, ranked fifth in the world, Martina Hingis, Richard Krajicek, and Greg Rusedski and their glowing praise for the Tournament.
3pm: Just had a quick call with Everton FC and Widnes Vikings to firm up arrangements for their involvement in the tennis workshop programme for schools during June. The team and I are spending the next hour and a half sorting the latest list of demands for hospitality over the four-day tournament. 4.30pm: I’m now with Anders Borg, founder and organiser of the tournament, discussing a wide range of positive news including the latest uptake on a new venture for the Tournament this year, a retail marquee.
5.30pm: My last meeting of the day is with Mark Blankstone, of Blankstone Opticians, who has been driving the retail marquee idea. It’s almost fully booked. 6.30pm: Just time for a quick call with Stephanie from The Dressing Room, whose clothes and models will form part of the fashion show at the Tournament. 7pm: South Liverpool isn’t too far away, so looking forward to dinner soon and seeing my family – but, of course, not in that order.