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THE London market struggled to make headway yesterday after banks and mining stocks slid on renewed fears about the strength of the global recovery. The FTSE 100 Index had made strong gains in recent days, having pushed above the 6,000 mark for the first time in more than a month after Greece agreed to austerity measures. But the blue-chip index gained just 6.5 points after factory orders in the US came in lower than expected and China warned that inflation pressures remain high.
Typhoo Tea turns up the heat on its rivals by Alex Turner
LDP BUSINESS STAFF
alex.turner@liverpool.com
TYPHOO Tea is looking for a fresh blend of high-profile marketing activity to boost sales by £10m this year. The Wirral company said it is already “running way ahead” of its forecasts as it enters its second quarter. It is embarking on a series of “major initiatives” that it believes will deliver significant growth in the current financial year. Typhoo launched its two-year sponsorship of Super League club St Helens RLFC and power boat racing cham-
MARKET REPORT: PAGE 15
inside
Firm plans for growth after £30m MBO
pionship P1 SuperStock at the Albert Dock in Liverpool yesterday. While the water was choppy, it has been smooth sailing for Typhoo so far this year, as it outperforms its ambitious plans to grow revenues by 15%. The tea firm increased sales 5% in the year to March, to £71m, building on 8% growth in 2010. Typhoo chief executive Keith Packer is targeting turnover of £100m by 2015, which will require compound annual growth of 9% over the next four years. The Moreton-based manufacturer will be launching a product next month which it expects “will be a step change” for the company and it will return to television screens this autumn with an advertising campaign.
Typhoo is also changing the shade of red it uses in its packaging, returning to its traditional, brighter red rather than the current maroon. “It’s all part of our overall marketing mix,” said Mr Packer. “Typhoo has ambitious plans for 2011-12 targeting 15% growth this year and the sports sponsorship deals will help us with that. We recognise that we want to get further recognition for Typhoo. That’s why we have gone with both opportunities. “We have recognised that the opportunity for us in rugby league is with our core market, and a high proportion of women go to watch it. The sport has also got a high coverage in terms of people who watch it on television.”
Exports currently account for 5% of the business, and are also enjoying growth, while Mr Packer was partly attracted to the St Helens sponsorship deal because of its television exposure overseas in countries including Australia and New Zealand. While the rugby league and powerboating competitions are mainly broadcast on satellite television, Typhoo will be raising its profile on terrestrial television as well with a series of advertisements starting in September or October. Typhoo, which employs 280 staff, was part of food giant Premier Foods until it was bought by India’s Apeejay Surrendra Group, in 2005.
■ TRADING Gossip: Page 16
Airport traffic remains strong
Liverpool John Lennon Airport has seen a marked improvement in passenger levels in the first six months of the year Photo: PAUL HEAPS/ ph230211airport-11
THE buyout team at Haydock’s Intrinsic Technology has got investment to back a sales push. PAGE 2
LIVERPOOL John Lennon Airport (JLA) has enjoyed its busiest first half of the year since 2008 as passenger levels continue to improve. Last month, 492,780 people used JLA, up 5%, taking its year-to-date total to 2.53m. That is more than 150,000 higher than a year ago, and the best since Liverpool’s year as European Capital of Culture. JLA’s management attributed the rise to strong growth on some routes and higher load factors. Factors including the late Easter and the Royal Wedding bank holiday, which also spread out school holidays, contributed to a bumper April, while May and June also saw totals of around 490,000 passengers.
Profits up ST MODWEN sees housing demand grow though office market remains quiet. PAGE 4
Funding hope BID to clinch a funding lifeline for Liverpool’s Sirolli projects for entrepreneurs. PAGE 5
Two sectors POLL shows St Helens manufacturers are upbeat, but service sector still downbeat. PAGE 7
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Ineos agrees plastics venture GERMAN chemicals group BASF expects to receive 600m euros from a styrenic-plastics joint venture it is setting up with British rival Ineos. BASF agreed in November to transfer parts of its styrenics business into a joint venture named Styrolution with Ineos, after a more than two-year search for a buyer or partner. The cash payment will be made once the venture is set up by the end of this year and will compensate BASF for contributing assets that were more valuable than the 50% shareholding it will own in Styrolution, a spokeswoman for the venture said. The businesses to be folded into Styrolution posted combined sales of 6.4bn euros last year and profits of 407m euros. BASF’s first quarter sales rose a sixth to 1.8bn euros while profits almost doubled to 174m euros, putting Styrolution on track to beat its 2010 results. Styrenics are used for phone casings and food packaging.
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£30m MBO is Intrinsic to hi-tech firm’s expansion by Alex Turner
LDP BUSINESS STAFF
alex.turner@liverpool.com
A HAYDOCK technology firm’s £30m management buy-out is expected to lay the platform for significant growth. Intrinsic Technology’s founder and majority shareholder, Allan Gauld, has been bought out in a deal led by chief executive Mike Mason and backed by private equity firm RJD Partners. The company, which provides ICT and unified communications solutions and managed services, was set up in 1999. It grew slowly at first because of Mr Gauld’s insistence on remaining as debt-free as possible, but enjoyed strong growth once it had established itself after five years. He has been seeking investment for the last two years to enable the company to make a step change from turning over £25m to aiming for annual sales of £100m. As part of that process, Mike Mason was brought in to the company after previously advising Mr Gauld, who owns about threequarters of Intrinsic’s share capital, on his options for the company. Mr Mason was acting as a consultant after a 20-year career in IT and communications businesses which had seen him involved in several buy-outs and acquisitions. But he admitted to getting “bored of advising people what they should be doing and not being responsible for the execution of those plans.” Mr Mason said: “Having worked in the business team for nearly two years, I’m delighted to now take the business forward to the next stage in its strategic plan, along with the current management team and existing teams beneath them.
“Intrinsic has developed an excellent reputation for high quality and responsive customer service. “We aim to build on this by taking advantage of both the organic growth and acquisition opportunities presented in a dynamic but fragmented market. RJD are experienced investors in the IT services sector and fully share our ambitious vision.” Frank Bulman, partner at RJD Partners, is excited about the potential of the St Helens firm. He said: “Mike Mason has a proven track record of creating transformational ICT solutions, delivered and underpinned by strong service organisations. “We are delighted to have the opportunity to back him in leading a highly motivated and impressive management team and workforce, in the buyout of Intrinsic. “The company is an innovative, leading player in an attractive market with excellent growth potential and we look forward to working with the team to fully exploit this.” The company believes that the recession has focused organisations, whether operating in the public or private sector, on the need to increase productivity from their assets. That includes both their people and their premises and Intrinsic’s cloud computing and unified communications solutions are, they believe, well placed to add value. Adam Jarvis, sales and marketing director at Intrinsic Technology, added: “Ultimately, this transaction will further facilitate our growth to deliver a simplified client experience with better purchasing power across a greater number of vendors, giving our clients better choice at better prices.”
Mike Mason – led the buy-out of Intrinsic Technology founder and majority shareholder Allan Gauld
Service sector performance up
Offer agreed
BRITAIN’S service sector performed better than expected in June, but growth was still not strong enough to generate jobs, a purchasing managers’ survey showed yesterday. The Markit/CIPS headline services PMI index nudged up
PEARSON, the owner of Penguin books and the Financial Times, said its £113m offer for vocational awards body Education Development International was accepted by investors holding more than 90% of the company’s shares. It can now begin to issue compulsory purchase orders for the remaining 6% of shares in the Coventry-based firm.
to 53.9 last month from a three-month low of 53.8 in May. That was above the 53.5 that economists had forecast, and gave a boost to the pound. But it remains below its long-run average, and Markit
said Britain’s economy was likely to have expanded by 0.3% over the second quarter at best. “It was a relief that it wasn’t weaker, but that’s not to say it’s a particularly great outcome,” said Alan Clarke, economist at Scotia Capital.
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2020 vision for recruitment firm MD focused on growth GPW Recruitment managing director Mark Parish – I am very hands-on, there’s nothing I won’t do Picture: JAMES MALONEY/ jm040711ldpbiz-6
Alex Turner meets MARK PARISH, MD of GPW Recruitment A SLIGHT astigmatism, caused by a sports injury, prevented Mark Parish from fulfilling his dream of becoming a fighter pilot, so instead he focused on becoming a top gun in recruitment. Fourteen years after leaving university and joining St Helens-based GPW Recruitment as a trainee, he is plotting for its turnover to soar from £20m to £200m by 2020. “Our plan to get to £200m is a 10-year plan,” said Parish. “We still have nine years left. Can we achieve that? I think that’s a realistic forecast to work with.” He says that, although the company is already in the top 1% of the country’s 15,000 agencies based on turnover, GPW’s growth can be swift and significant. “It’s a £25bn industry and we are doing £20m,” he said. “We are only just scratching the surface.” The recession put the brakes on the company’s growth – it added nearly £5m turnover in the year to October, 2008, to take it above £21m before the jobs market ground to a halt – but GPW remained profitable despite the downturn. Parish said: “In the last two years, with the recession we have plateaued, while a lot of companies have gone backwards. “We have performed very well indeed, but I think that’s only because we have put the time and effort in. We have had a good couple of years, but it’s been a hard slog.
“Things have started to recover across the board, and we are starting to do really well again. “In 2007-08, our consultants had a ratio of 10 calls to one sale. At its worst, to get a deal it got to about 100 calls. “The economy is recovering and the ratio is getting better. It’s back down to about 20 calls for each success. “The harder you work and the more focus you have, the more you will get out of it. “If the consultants keep it up with the pace and the attitude that they have, they will rocket ahead.” Parish, who admits to sometimes working “excessive hours”, was quickly bitten by the recruitment bug when he chose to join GPW Recruitment after graduating with a degree in business studies from Liverpool John Moores University. He had worked for Boots for five years through university, and had also completed a year in industry with Marks & Spencer as part of his degree course, which saw him take responsibility for up to 150 staff. But even those experiences didn’t prepare him for the hothouse envir-
q&a Age: 38 Lives: St Helens Highest educational qualification: A degree in business studies from LJMU Proudest achievement in business: Gaining membership to the Engineering Construction Industry Association, which was key to winning a £2m deal Biggest regret: I don’t have any regrets, that’s quite a nice thing to be able to say Unfulfilled ambition: To drive a Formula 1 car around a track
onment of recruitment: “When I first started, I thought I had worked hard before, but, after the first two weeks in this industry, I was shattered,” he said. “But I enjoyed it, which made it worthwhile. “Within two weeks, I was making a substantial amount of money for the business. Within a couple of months, I had won a huge contract worth £2m. The rest is history.” He added: “There were five of us when I worked in the business. It was at that point I realised I was good at what I did and I saw the potential to grow. “Within 12 months, I was taking responsibility for other people in the business. I took on my first official management title a couple of years on. “I am always of the opinion that you need to earn your stripes.” Although Parish has known only one place of employment for 14 years, he has no regrets about shunning offers from other recruitment companies earlier in his career. “When you know what you are doing and you have the right strategy, there’s no need to go elsewhere,” he said. “It’s not all about the money. It’s about the success and being proud of what we are achieving. “We have got a great reputation in the marketplace.” GPW has three core divisions – technical and design, manufacturing and engineering, and construction – while it is looking to develop its office personnel division, which he says “has the potential to be the biggest in our company”. Parish became managing director two years ago when Graham Worsley, son of the founder Gilbert Peter Worsley, became chairman after nearly 20 years running the company.
“I am very hands on, there’s nothing I won’t do,” he said. “I will roll my sleeves up and help them out. We create a culture of teamwork. “If you can show that to your staff, they will have respect for you. We are all like that.” He acknowledges that it is “difficult” to avoid getting dragged into the day-to-day operations of the business, but accepts it as a necessary response to the tough conditions of the last couple of years. “I do struggle with that because of the size we are,” he said. “I deal with that by doing more hours. “Put simply, that means some of my private life gets lost in translation sometimes. “I just put whatever hours in I need to get things moving. You don’t get anywhere without hard work. “I don’t struggle to differentiate between working in the business and on the business. It’s just about time. “We are in a position to recruit extra people, and when we do that I will create more time for me and other staff. It has been all hands-on deck.” Working long hours is sustainable for Parish while the successes keep on coming. That was the case when GPW gained membership to the Engineering Construction Industry Association – an achievement which Parish ranks as his proudest. It put GPW into a very select group of about 15 agencies and enabled it to seek lucrative contracts. He said: “I handled that project myself. It was very political and I had to lobby a lot of people. It allowed us to gain access to a big project and opened us up to the nuclear sector, which is going to go boom over the next few years. “It’s a very detailed and complic-
ated process. I had a window of four weeks to complete it, to secure a contract worth £2m for us. “I worked 24/7 on it, we achieved it and won the project. “We achieved what we achieved because we are good at what we do. It’s going to be huge for us going forward.” Parish is a big fan of business bible How to Win Friends and Influence People, by Dale Carnegie, and says he reads it “every two or three months”. He said: “It’s a really interesting book and it gives you all of the tools to communicate with people. “It’s made me a much, much better manager as a result. “I’m down to earth but very ambitious. I am aware of my own limitations, I do learn from my mistakes.” His ambitions, for himself and for GPW, don’t include a change of location any time soon. Parish, who is working just one mile from where he went to school at Cowley High, has lost his adolescent indifference to St Helens and is now keen to extol the virtues of his home town. He said: “When I went to university, I always said I would never stay in St Helens, but I am quite passionate about the town now. “I am very proud GPW is a local company, I’m proud of our town. “It would be nice to be recognised as a St Helens-based company that has really achieved something. “I have got such pride in what we do as a company. “It’s not me, it’s the staff, they are doing the hard work. It’s about having pride in what you have got around you. “I would like us to achieve the goals we have set out for the staff, so they feel the benefits as well.”
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Wednesday, July 6, 2011
LDP business .co.uk private business Increased volumes brew up profits
THOMAS HARDY continued to brew strong profits in an “excellent” year for the Burtonwood brewer. It saw turnover rise 9% to £40.4m in the year to September, 2010 – maintaining growth which has seen sales increase £17m in the last three years. Pre-tax profits rose sharply, from £640,000 to £1.73m, which the company said was caused by “increasing volumes and good cost control”. In accounts just filed at Companies House, the directors said: “Building on the previous year’s growth, production volumes continued to increase in both brewing, up 6%, and bottling, up 5%.” Thomas Hardy has a brewery and bottling plant at Burtonwood, near Warrington, and, in October, 2009, it bought the freehold of a Kendal bottling and packaging plant, which it already operated. At Burtonwood, the company produces beer and other alcoholic drinks for eight companies, including Heineken UK. It employs nearly 50 of its 135 employees at Burtonwood, which contributed £24.4m of the group’s turnover and generated £670,000 pre-tax profit. The directors said their forecast “places the group in a good position to meet any prospective tough economic challenge”. They added: “The prospects for the coming year continue to look promising and the group is expected to trade profitably.” Emoluments for the three directors – Peter Ward, Rae Ward and Neil Voss – totalled £1.25m, with the highest-paid receiving £858,000. Mr Ward founded the company in 1997, and in 1998 formed a joint venture company with Burtonwood Brewery to manage the company’s brewing operations. It bought the plant in 2005, while the pubs business is now part of Marston’s. ALEX TURNER
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Developer aims to exploit increased market activity by Neil Hodgson
LDP STAFF
neil.hodgson@liverpool.com
DEVELOPER St Modwen posted a 40% rise in pre-tax profits for the six months to May 31. They jumped from £26.7m to £37.4m, while revenues improved from £58.3m last time to £61.3m this year. The group, which operates a regional base in Warrington, said it has also seen increased demand in the residential housing market, although the industrial and regional office sectors remain slow. Property valuations increased by £25m and a 2% improvement in net rental income realised £17.8m, compared with £17.4m in 2010. Since the end of its financial year, the group has also signed a deal to develop office and production facilities for communications group Siemens, in Lincoln. St Modwen chairman Bill Oliver said: “We have achieved very strong results for the first half of the year in markets that continue to present challenges. “We are also seeing an increase in demand for developable residential land and we continue to progress our residential development programme both in-house and through joint ventures.” He added: “Over the past two years, we have focused heavily on site preparation, remediation and securing planning permissions, putting us in the highly competitive position of being able to offer ‘ready to develop’ sites to potential occupiers or investors. “Increasingly, we are now turning our attention to growing our development pipeline. This will be achieved both by bringing forward new developments from our existing landbank and through the acquisition of new opportunities.” One project to be brought forward,
A computer-generated image of the Venture Fields development, by St Modwen, in Widnes, which is now almost fully let and will open later this year next year, is the £150m Project Jennifer scheme, on Great Homer Street, which will regenerate a deprived area of north Liverpool and create 1,100 jobs. The development is finally set to start after a land dispute between supermarket giants Tesco and Sainsbury’s was settled.
And North West director Michelle Taylor outlined more progress across the region: “We’ve continued to make great strides forward in the North West, including completing the £2.8m sale of 20,000 sq ft of retail units that we developed at Connah’s Quay. “Venture Fields, our highly success-
ful leisure scheme at the Widnes Waterfront, is almost fully let. The scheme will be completed on time and on budget and will welcome its first visitors this year.” Housing firm Jones Homes also took five more acres at the former Vulcan Works site, in Newton-le-Willows.
Price cuts squeeze margins at home shopping giant N Brown
Comiclegendto visitTheHeath
CATALOGUE and online shopping group N Brown warned aggressive promotional discounting had cut into profit margins – but said sales remained buoyant. The group, which also owns Simply Be and High & Mighty, said price-cutting was necessary to help drive revenue – which increased 1.6% on a like-for-like basis in the 18 weeks to July 2. The push to pull in customers, which N Brown said was in line with the rest of the sector, saw gross margins dip by 0.2% in the period, but total group revenue was up 5.1%. The retail sector has suffered in recent weeks as consumers
COMEDY legend Ken Dodd will bring his special brand of humour to an exciting community open day at The Heath Business and Technical Park in Runcorn. The much-loved Liverpool comic is sure to raise more than a few titters when he welcomes charities and voluntary groups to The Heath’s inaugural Community Open Day, on Tuesday, July 19. The event will showcase the business park’s facilities and strengthen ties to local residents and groups. It will be a family affair for the comedian, whose nephew, John Lewis, is managing director of SOG, the owner and operator of the park which is home to more than 150 separate organisations employing a total workforce in excess of 1,700 people. The Heath’s restaurant and event facilities have just undergone a £250,000 refurbishment. Mr Lewis said: “This will be a fun day and there’ll be a lot of laughter – especially with my zany uncle around.”
rein in their spending as the cost of living soars and wage growth remains muted. N Brown said menswear and footwear is growing strongly while ladieswear is down – a trend consistent with the same period last year. High inflation is hitting its core ladieswear ranges, while clothing at the higher price points is doing well. In its brand portfolio, Jacamo, Marisota and Simply Be all performed strongly. N Brown said international sales for Simply Be in Germany and the USA were rising in line with expectations. Simply Be, which sells fashionable clothes for plus-size
women, is also moving onto the high street for the first time. The Daily Post revealed last month that N Brown had chosen Liverpool One as the site of its first store, while another is planned for Manchester. The group wants to increase its online marketing activities – as online sales now account for 47% of the total, up from 41% last year. Matthew McEachran, retail sector analyst at Singer Capital, said: “The niche nature of the business, positive demographic, customer trends and the increasing sales shift online remain key positives to the investment case.”
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Wednesday, July 6, 2011
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Bramall bases future on values of its 80-year past BUILDING firm Bramall Construction has celebrated its 80th anniversary. The Speke-based company, which has offices across England and Wales, was launched in 1931 by George Bramall and Dick Ogden, near Rotherham, and now employs more than 950 staff, has a turnover of £225m, and is part of the Keepmoat Group of companies. North West managing director Dave Prescott said: “Over the past 30 years, we have grown to become one of the largest providers of new and refurbished homes and educational faculties in the North West. “While I am sure the business has changed substantially over the past eight decades, I believe the family values and culture that made the business a success then, are still the key ingredient to our success today.” The company has a proud history in Liverpool, including an award-winning housing project in Walton to install solar panels and new heating systems that has led to a 74% reduction in carbon emissions per property each year.
Looking back . . . an archive photograph of a Bramall and Ogden board meeting which took place in 1972
Bid to find new Sirolli funding by Neil Hodgson
LDP BUSINESS STAFF
neil.hodgson@liverpool.com
MOVES to clinch a funding lifeline for Liverpool’s Sirolli projects have begun. They centre on establishing a Community Development Finance Institute (CDFI) to attract investment for the entrepreneurs of the future. The Sirolli projects were introduced to Liverpool in 1996 when acclaimed Italian business guru Dr Ernesto Sirolli followed up on visits two years previously to establish three schemes aimed at developing grass roots entrepreneurs. The Sirolli model encourages communities to shape their own future by pooling resources to help create new businesses that contribute to the area’s regeneration as they grow. Each institute is spearheaded by a “business facilitator” aided by a board of local people, including existing small businesses who can pass on valuable advice. Enable North covers North Liverpool, Dream High focuses on the East of the city
and Waves looks after central and South Liverpool. But their funding runs out with the ending of Stepclever next March. So Enable North chairman Mark Rea, 29, has suggested a CDFI to generate new investment. He explained: “CDFIs have been around since 1999 but, because of the Objective 1 money, Liverpool has never needed one before.” CDFIs attract community investment tax relief, so an investor giving, for example, £1,000 for five years would get 5% tax relief over the period and their money back. Mr Rea said: “We’re hoping to be able to add a little bit more as a bonus to involve more people, so low earners could consider it as an investment.” He said the proposal was just at the “baby steps” stage, but he wants to involve organisations like regeneration agency Liverpool Vision, the city council, Liverpool Chamber of Commerce and the Federation of Small Businesses: “We want to work in partnership with these people and say, we want you as a partner. We want to be collaborative.”
BBC to film city housing auction THE BBC television series, Homes Under the Hammer, is to film Sutton Kersh’s property auction next Tuesday at the Marriott Hotel, Queen Square, Liverpool city centre. The auction house will offer 78 properties at the event. Included in the catalogue are 35 vacant residential properties and 25 residential investment opportunities. For every property that is sold at the auction, Sutton Kersh will donate £50 to Marie Curie Cancer Care in support of its Blooming Great Tea Party Campaign. Cathy Holt, auction manager at Sutton Kersh said: “Interest has been high pre-auction, with lots of viewings being booked and offers being received.”
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Dr Ernesto Sirolli He added: “We need to grasp this with both hands and do it properly.” CDFIs can provide funds from £500 to £50,000 for start-up businesses, overseen by the current community panels that assess the business risk in new ventures. Mr Rea hopes his proposals could move a step closer to reality when the Community Development Finance Association comes to Liverpool this September to stage its annual conference at the Crowne Plaza Hotel.
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Wednesday, July 6, 2011
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Gatwick shortlisting adds shine to Morgan Sindall by Neil Hodgson LDP STAFF
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THE positive start to its year has continued for construction and fit-out group Morgan Sindall, it confirmed in a trading update for the six months to June 30. The group, which has a regional construction office on Liverpool’s Wavertree Technology Park, an affordable housing operation in its Lovell offices in Birkenhead, and design functions in Warrington, said it is on track to meet full year targets and its forward order book is in line with the start of the year. Contracts in its Merseyside portfolio include work on the £110m English Cities fund development at St Paul’s Square, in Liverpool’s business district. The statement said construction and infrastructure is trading as expected, although margins are tight due to increased competition. The affordable housing operation continues to see opportunities in the mixed tenure, new build social housing, and planned and response maintenance markets. And the group also reported a slight improvement in the open market housing sector, despite sales remaining constrained by a lack of available mortgage finance. Revenues in the fit-out division are ahead of the previous year, and the group said it is well placed for an anticipated recovery in the market from 2012. The urban regeneration team has been selected by Warrington council as its development partner on the council’s £130m Bridge Street scheme. And while the group’s cash position of £44m is lower than the same period in 2010, it is still above expectations. The statement said: “Overall, we have had a positive first half of 2011 and, with our track record in growth sectors, broad sector spread and depth of capabilities, we remain well positioned to face the challenges ahead and to benefit from opportunities as
The third phase of work at the £110m English Cities fund St Paul's Square development, in the centre of Liverpool, involved Morgan Sindall's Muse division they arise.” One such opportunity is a foothold on the billion-pound revamp of Gatwick Airport after it made a shortlist of firms appointed for the work yesterday. It is one of 10 building contractors that will compete for the various parts of the £1.2bn project, which will include upgraded terminal facilities, new aircraft piers, new baggage systems and new retail, security and immigration areas.
Morgan is already carrying out work at Gatwick for owner Global Infrastructure building the £50m North Terminal extension. Stephen Scard, head of Morgan Sindall’s aviation arm, said the group was already doing work on a number of UK airports, including building the new control tower at Birmingham and the North Terminal at Gatwick. Liverpool stockbroker Panmure Gordon recommended the construc-
tion firm’s stock as a “buy” after the trading update. Analyst Andy Brown welcomed the latest snapshot of progress for the group, saying: “Trading remains in line with expectations. “There are signs of improving volumes, although pricing remains competitive. “Its order book has been maintained and (the) financial position is healthy. With an attractive valuation, we stay positive.”
Burberry faces revolt on pay
Councils ‘stuck in dark ages’ over turbine applications
LUXURY fashion house Burberry faces a potential revolt over “excessive” executive pay after a lobby group urged its members to vote against the company’s remuneration plans. PIRC, which advises big-hitting pension funds and asset managers, said the total rewards for executives in the past year and the proposed awards for the coming year are excessive. It pointed towards a one-off share payment worth nearly £5.8m made last year to chief executive Angela Ahrendts, which was equivalent to nearly six times her base salary of £990,000. PIRC has recommended that shareholders vote against the remuneration report at its annual meeting on July 14. It says the highest targets under its share plan were not challenging enough. No specific targets are disclosed for the annual bonus scheme and awards are made at the discretion of the remuneration committee, it adds.
A MERSEYSIDE environmental consultant says local authorities are dragging their feet over the mounting number of planning applications for small scale wind turbines. David Hunt, director of Bootle’s Eco Environments, said the introduction of the Government’s Feed-in-Tariff scheme in April last year was intended to hasten the number of homeowners and businesses considering installing turbines. But Mr Hunt says it failed to deliver the expected results because local authorities have allowed a “massive logjam of applications” to build
up. He said: “The biggest problem is the total lack of a consistent approach from councils across the UK. “There are a handful of councils who have a strong green agenda and are happy to support Government initiatives, but the majority are still stuck in the dark ages. “While it is good that the Government is seemingly supporting the green economy, support is no longer enough. The Prime Minister now needs to ensure its words are backed up by the strongest possible actions to ensure its policies are being implemented effectively and
consistently on the ground. We have a number of customers whose applications for small-scale wind turbines are stuck in planning and we know of hundreds more across the UK in a similar position.” One leading small wind turbine manufacturer, Scotland-based Proven Energy, successfully lobbied their constituency MP Michael McCann who raised the issue at Prime Minister’s Questions. David Cameron said he would instruct the Business Department to meet the company as soon as possible to discuss the issue.
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VAT man clamps down on dodgers A CLAMPDOWN on tax dodgers was launched yesterday as traders who have failed to register to pay VAT were given a chance to come forward. Small businesses such as builders may not have realised their turnover was above the threshold of £73,000, while others could have been avoiding paying the tax, HM Revenue and Customs said. More than 40,000 letters will be sent out over the next few weeks offering those who have not registered the chance to come forward before September 30 and avoid a maximum penalty. HMRC said where traders have to pay a penalty on undeclared tax other than VAT, this will be lower than the customary penalty of up to 100% charged to those who fall outside the opportunity. HMRC warned it would investigate all those who fail to come forward before September 30, and substantial penalties or even criminal prosecution could follow. Mike Wells, HMRC’s director of risk and intelligence, said: “Our campaigns are designed to ensure tax is paid so that the money is available to spend on public services used by everyone. “The aim is to make it easy for individuals and businesses to contact us, make a full disclosure of their income and face a reduced penalty on any tax owed. To use the VAT initiative, people and businesses must register with HMRC by September 30 to notify that they plan to make a voluntary VAT disclosure.
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LDP business .co.uk
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LIVERPOOL’S INVESTMENT SPECIALISTS
IN ASSOCIATION WITH
The high street is taking a buffeting as storms rage all around
Matt Johnson ARE we seeing the green shoots of recovery, or is the vista ahead just a barren and arid landscape? The view of the economic land-
scape from our high streets remains mixed. At one end, or more accurately slightly out of town, are the major, successful supermarkets. Their strength continues to lie in their enormous resource and resilience. Whether they are liked or disliked, these major players continue to weather the economic storm. And, lest we forget, it’s a storm still raging. Some of the big rocks may have stopped rolling into the economic pond, and the ripples may be fewer and further apart. But, every so often, another major shockwave strikes.
The latest to hit the UK retail sector is close to home, too – the demise of Liverpool-based TJ Hughes. Accounts of the last couple of weeks at this once strong and proud brand were relayed in some of the weekend business supplements. TJ Hughes’s owners are themselves a company specialising in saving ailing firms, and had stepped in last March to take on the discount retailer. As a result, 57 stores and 4,000 staff are facing bleak uncertainty. Equally stark is the message com-
ing from other parts of the high street. Fashion outlet Jane Norman has also gone under. Carpetright is closing 50 stores. Thorntons the confectioners are reviewing their options, as is multibrand owner Arcadia. Habitat and Homeform sank two weeks ago. Hundreds, possibly thousands, more jobs are at risk. Wreaking this havoc is what some analysts describe as a collapse in consumer confidence. Too much uncertainty is curbing too many people’s shopping habits. On top of this, many stores are hav-
‘We are seeing a collapse in consumer confidence’
ing to cope with rising rents, costlier imported goods and higher VAT. The way to a brighter future for retailers lies largely in the success that can be achieved in every other sector of the economy. The high street can’t operate in isolation from the rest of the economy. Firms investing and creating new jobs, generating more income for individuals to return to the high streets with a spring in their step and money in the bank, will make the difference that’s required. ■ MATT JOHNSON is chief executive of Mando Group
Confidence low as service sector sees orders decline by Neil Hodgson LDP STAFF
neil.hodgson@liverpool.com
A TALE of two sectors has emerged in the latest quarterly economy survey conducted by St Helens Chamber of Commerce. Second quarter figures reveal that the local manufacturing sector remains robust, while service sector industries continue to report worrying trends. After a dip in the first quarter, the most recent survey results show that confidence is on the rise among manufacturers, with orders both home and abroad up on the previous quarter. Investment plans and employment levels are also both looking positive with almost half of all local manufacturers attempting to recruit. However, the picture is looking less positive in the service sector, as a decline in sales and orders has undermined confidence. Domestic markets are slowing as public sector cuts and higher VAT rates dampen demand. A number of service sector businesses are also reporting difficulties caused by the number of working days lost in April through public holidays. Employment growth in the sector improved slightly with a quarter of respondents attempting to recruit. But the outlook on job creation into the next quarter looks less positive. A worrying trend reported by both sectors, which the chamber said it is working hard with businesses to try and overcome, is an increase in skills shortages. This has led to a noticeable increase in recruitment difficulties for both sectors. Service sector firms found recruiting professional managerial staff a problem, while the number of manufacturing companies facing difficulties in recruiting skilled technical staff has doubled since last quarter. Chamber director of enterprise, Sara Williams, said: “As we enter the second half of 2011, the UK economy still faces some significant challenges, and St Helens is no exception. “Despite this, many local companies are doing well and continue to create jobs for local people. Manufacturing companies have performed particularly well this quarter, but we are concerned about the lack of any sustained
We are urging the monetary policy committee to hold its nerve on interest rates – Sara Williams, director of enterprise development at St Helens Chamber of Commerce growth in the service sector.” She added: “With UK inflation more than double its 2% target and likely to increase further in the next few months, the chamber network is calling on the MPC (monetary policy com-
mittee) to hold its nerve on interest rates, for the next few months at least. “The Government must implement policies to support growth and empower businesses to invest, export and create jobs.”
The latest quarterly economic survey was compiled from responses from 168 members between May 23 and June 13, including 37 from manufacturing companies, and 131 from firms operating in the service sector.
Help for small oil and gas fields BRITAIN will boost tax support for North Sea oil and gas companies to help firms operating in smaller, less profitable fields, softening an earlier tax increase that had prompted warnings about the future of the nation’s energy supply. The Treasury said yesterday it would raise the annual rate of the Ring Fence Expenditure Supplement to 10% from 6%. It also said it would continue to consult companies on finding new categories of field allowance. The move follows the Government’s surprise tax increase on North Sea output in last March’s Budget, which had led the industry to warn that investment in Britain’s oil and gas would suffer, increasing imports and driving UK jobs abroad. Oil firms cautiously welcomed the move. Norway’s Statoil said it would resume preparatory North Sea work suspended in the wake of the tax rise, while a UK trade group called it “constructive” and shares of smaller North Sea-focused firms rose. “They’re alleviating some of the damaging effects of the tax increase, and we could see more of this as the companies lobby the government. It is really letting companies increase the value of their tax loss position if they’re not profitable,” said Sanjeev Bahl, analyst at Numis. The Government earlier this year announced an increase in a tax on North Sea oil and gas producers to 32% from 20% to offset fuel duty cuts.
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Wednesday, July 6, 2011
LDP business .co.uk Bill Gleeson City in danger of missing out in knowledge game GIVEN the emphasis that has been placed on identifying the sectors that offer the region the best prospects for economic growth in the years ahead, together with all the European money that has been expended on economic development in recent years, its amazing that some people still feel the knowledge economy sector has not yet received sufficient support. But, as our adjacent feature highlights, The Mersey Partnership knowledge economy report states that the region suffers from a “severe shortage of incubation space” and a “complete lack of grow-on space” for businesses in this sector. It also appears that Liverpool Vision chief executive Max Steinberg concurs with this view, despite the plans for the new Mersey Biocampus linking the University of Liverpool with the Royal Liverpool University Hospital. One concern is the number of firms that have been incubated at the Merseybio incubator, but which have had to move outside the region once they have started to grow. When you hear about the numerous breakthroughs in gene science and regenerative medicine, you can’t help but be struck by the obvious potential of the life sciences sector to make a huge contribution to the region’s economy in the future. The sector will contribute ever more output to the nation’s economy. That means Merseyside must keep pace with other regions by having the right facilities ready and waiting for the scientists that will work there. Foresight is definitely preferable to hindsight. A key characteristic of the life sciences sector that poses a big challenge is its rapid pace of change and development. There is so much discovery emerging at such a rate of knots that only those
who have thought ahead will thrive. ONE of the most promising economic developments under consideration in the past decade has been the redevelopment of the former United States Air Force base at Burtonwood. This huge 500-acre site, which sits alongside a former RAF airbase, offers huge potential for development. Its location close to the junction of the M62 and M6 makes it a prime opportunity. It’s also just minutes from Liverpool and Manchester, with their airports, docks and busy business districts. Known as Omega, this was the commercial property scheme they all feared. Liverpool and Manchester councils objected to the development on the grounds that it would damage their economies. Yet Omega never really got off the drawing board. There is now a suggestion that Warrington Borough Council is hoping to secure Enterprise Zone status for the area. That has to be a great idea. Warrington has been very successful as a location for business over the decades. Enterprise Zone status would add to the weight of the argument in favour of the development, and could be the vital ingredient that encourages its investors and the banks to press ahead with the plans. The Omega project was once mooted to provide up to 25,000 jobs over 25 years and would include offices, manufacturing, distribution, hotels, leisure, education and health facilities. To become an Enterprise Zone, it will have to demonstrate value for money, an ability to deliver growth and jobs, and “robust” implementation plans. Omega can certainly do all of these things already. It would also benefit the wider region, creating jobs far beyond Warrington.
Big news for c Can Liverpool incubate a new generation of innovative pharmaceutical firms? Alistair Houghton reports
WHEN it comes to growing Merseyside’s pharmaceuticals sector, it seems small really could be beautiful. The “life sciences” sector has long been tipped for growth by regeneration officials, who believe it could create thousands of skilled jobs. The region already plays host to some of the biggest names in the pharmaceuticals world, from Novartis to Eli Lilly. But, according to the team at ambitious Liverpool pharmaceuticals firm RedX, it will be small companies that will drive the sector’s growth in years to come. RedX, based at MerseyBIO, specialises in developing new drugs based on existing compounds, rather than using the traditional “big pharma” model of developing drugs from scratch. That means it can get drugs to market more quickly, without the lengthy testing procedure needed to develop new drugs. RedX has big ambitions. Its chief executive, Dr Neil Murray, said: “The hope is that we will become a cornerstone of the biotechnology sector in Liverpool and the North West.” It aims to do that through its plans, unveiled in the Daily Post last month, for a £39m “centre of excellence” to develop cancer treatments. RedX has applied for £5.9m of Regional Growth Fund cash, which will in turn unlock £33m of private investment. The centre could, says Dr Murray, employ as many as 250 people when it opens in five years’ time. Initially, the project will be based at Liverpool Science Park, but in time it will move to the proposed BioCampus set to be built at the new Royal Liverpool Hospital. RedX would be the first company to sign up to the BioCampus – which health bosses hope will house many more small firms developing and marketing many new drugs. Speaking last year, Royal Liverpool chief executive Tony Bell said: “The BioCampus should enable Liverpool to carry out some of the best research in the world, it will put us right up there.” The BioCampus is designed for small firms that have the potential to grow into medium ones. That, says Dr Murray, is crucial to the long-term health of Liverpool’s pharmaceutical sector. He said: “The BioCampus is about organically growing companies of about 200 or 300 people that can give critical mass to the biosciences sector in the city.” Last month, RedX joined a 2Bio conference in Liverpool that debated the issues facing the pharmaceutical sector. Speakers, including private equity veteran Jon Moulton, agreed that small firms needed to step into the gap left by “big pharma” as those giant firms were now developing fewer drugs. Dr Murray said: “There are three primary issues with the big pharma model. “Firstly, their ability to develop their own drugs – they can’t bring their drugs quickly enough to the market to meet
An artist’s impression of the planned BioCampus for the Royal Liverpool Hospital site. The BioCampus is the grey group of buildings on the left, with the new Royal on the right
their needs. Then there is their funding model, in terms of the investment of money in developing a drug versus the risks involved versus the revenue made in return. “That drives them to a decision like, for example, they will only bring through drugs that will generate over $1bn in sales. Therefore, they will cut programmes that will only bring $500m of sales. “It sounds crazy, but I understand where that comes from. “The third thing is the skills gap. There’s a significant lack of people at a technician level.” RedX is based at MerseyBIO, the Crown Street innovation centre that today houses nine innovative life sciences firms. Geoff Wainwright, director of MerseyBIO’s owner 2Bio, agrees that small firms are vital to the future of Merseyside’s pharmaceutical sector. He said: “The pharmaceutical industry is producing less and less products. The cost of producing them isn’t going down. “The understanding that we now have of medicine is so much more sophisticated than even five years ago, let alone 20 years ago when some of these blockbuster drugs were conceived. The world is changing and it’s hard for large organisations to adapt at that pace.
‘Great chance for SMEs to step into breach’
“It’s a great opportunity for companies like RedX to step into the breach, and to help supply new products for the future.” One of the key issues for the sector, as identified in The Mersey Partnership’s report into the city region’s knowledge economy, is lack of laboratory space. The report says, for example, that several companies from MerseyBIO have gone on to greater success – but that “lack of grow-on space in the area has contributed to 16 companies moving away from the city region.” And the report later states that, for the sector to grow, regeneration bodies will need to “tackle the severe shortage of incubation space” and “tackle the complete lack of grow-on space.” Several developments in the region could help solve that problem. As well as the BioCampus, the University of Liverpool is also developing new laboratories, while there have also been proposals to create an Innovation Park at Clatterbridge, Wirral. The region boasts a skilled workforce of pharmaceutical researchers but, in common with the rest of the UK, has a lack of lab technicians. Mr Wainwright said he was now working with Liverpool’s universities on plans to train more such technicians. The region also boasts a new source of finance for life science firms in the form of the new North West Fund. A £25m pot
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Wednesday, July 6, 2011 IN ASSOCIATION WITH
the big feature
LIVERPOOL’S INVESTMENT SPECIALISTS
city’s ‘small pharma’
Jon Moulton – says there are investors willing to pump money into small pharmaceuticals firms
Biomedical firms flock to £25m funding pot has been set aside for the sector. Speaking at the 2Bio conference last month, RedX chairman Pete Jackson explained that his firm had been attracted to Liverpool from Bradford by three factors. “Firstly, the infrastructure,” he said. “There was a lab ready-built that we could move into. “Secondly, there was a pool of people that could do the jobs we wanted. We recruited some great people from the university at post-doctoral level, and are in the process of attracting people from elsewhere in the UK. “But probably the key that unlocked the whole thing was the availability of finance. In one room we could meet people who gave us a grant. “At Merseybio, that was relatively easy for us. We started with two people and went up to four. “What’s got to happen now is the same level of infrastructure, people and finance has to be in place for us to go up to 250 people. “That’s available in places like Singapore. The city has to be competitive for people to come here.” The conference also debated how the small firms that could change the face of the pharmaceuticals sector are becoming increasingly attractive to investors. Jon Moulton, one of the UK’s
best-known venture capitalists, today leads private equity firm Better Capital. He told the delegates at Liverpool Science Park that small firms were well-placed to compete against the dinosaurs of the industry who were no longer innovating. Those innovative firms would, he said, prove attractive to private investors. “There are opportunities galore to innovate in low-cost areas,” he said. “Small pharma has the opportunity to be nimble, lower-cost, innovative and to make money out of it. “There’s definitely money out there to finance these companies. “It doesn’t have to be handouts from the Government.” Mr Moulton was backed by Savvas Neophytou, an analyst with Liverpool broker Panmure Gordon. “If you make your companies attractive enough to outside investors, we’ll find them,” he said. People like Jon Moulton, Mr Neophytou said, need to be encouraged to invest in Liverpool. He said: “Let’s give the world a success story and more will follow.” Max Steinberg, chief executive of Liverpool Vision, said the city should offer a “coherent package” of support to pharmaceutical firms, including support to
‘Show a success story and more will follow’
help them find premises. The biocampus and the Apex centre being built by the University of Liverpool could also, he says, help seed the bio-science firms of the future. Liverpool should also, he said, shout about its record as a “science and learning city”, while organisations in the sector should work together to ensure they do not duplicate each other’s work. And, he said, pharmaceutical firms in Liverpool should build on expanding links with China, where demand for pharmaceuticals is increasing. He said “The city has some advantages, but if it doesn’t develop these Chinese links it could miss out substantially.” Mr Jackson, of RedX, is clear that the pharmaceuticals sector could, with the right support, become a key part of Liverpool’s economy. He said: “If Liverpool wants to end up with vibrant industries, we are an industry based on intellectual property and the human skills base. “It’s a really good business area for Liverpool to push for. “It needs people, facilities, decent buildings, university support. “They’re all in the land of the feasible. “It’s important that Liverpool gets things like this, or Liverpool will slide steadily downwards. “ It needs a council that’s constructive. It needs all the help it can get.”
THE head of the North West Fund says there has been “enormous interest” in the £25m funding pot earmarked for biomedical firms. Avente Medical Products Ltd, which is in the process of relocating to Liverpool, and Daresbury-based TopCat Research have each secured £50,000 pathfinder investments from the £25m North West Fund for Biomedical. The fund is run by Spark Impact, and is part of the overall £185m fund provided by the European Investment Bank and the European Regional Development Fund (ERDF). Aventé Medical Products plans to develop a range of single-use medical devices and the funding will be used on intellectual property protection, a market survey and finalising product design. TopCat Research is developing cost-effective test procedures for the pharmaceutical, environmental and food markets which measure the presence or concentration of a sub-
stance in solutions. The investment will be used to take its first diagnostic kit from development to prototype stage. SPARK Impact has already received over 100 applications for funding. Andy Leach, chief executive officer of North West Business Finance, said: “I’m delighted that The North West Fund for Biomedical is officially out of the blocks with two exciting investment opportunities. “We have been enthused by the quality and variety of the biomedical companies applying to the North West Fund.” David Malpass, director of the European programme at the ERDF, said: “The North West is one of a handful of globally recognised bioscience communities, as well as being Europe’s biggest biomanufacturing region. “Congratulations to Aventé and Topcat Research on their recent investments, which will go towards growing the sector further.”
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LDP business .co.uk briefing Travelex sells business payments arm FOREIGN exchange firm Travelex has announced the sale of Travelex Global Business Payments to Western Union for £606m. The proceeds of the sale will be used to fund Travelex’s strategy of focusing on its retail customers and wholesale banknotes business across the world.
Galliford Try in upbeat update CONSTRUCTION group Galliford Try said the number of homes it sold increased 27% to 2,170 in the year to the end of June, while the average price of its private sales increased 10% to £227,000. In a trading update ahead of its full-year results, it said the non-housebuilding part of the business had put in a resilient performance in difficult markets.
Oil record TULLOW Oil said it expects to post record revenues of £653m for the first half of 2011, and described its performance as excellent. It said production from its Jubilee field, off the coast of Ghana, has been ramping up steadily and will see its output increase by 50% over the next month.
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Hard work the essence in serving the community by Neil Hodgson
LDP BUSINESS STAFF
neil.hodgson@liverpool.com
“HAVE you got any of those little loaves that you had in yesterday,” enquired the elderly shopper, with a hint of hope in his voice, but probably already anticipating the worst. “No,” replied the assistant. “Sorry, we sold out.” Then he added: “But, how many do you want? If you can hang on, we can make some more.” This was customer service – with bells on. And it is just part of the offer that makes Omar’s Continental Store, in Toxteth, the successful community resource he has developed since stepping behind a counter almost 13 years ago. Situated on the junction of Upper Stanhope Street and Berkley Street, in the shadow of the Rialto centre, on the site of the former Rialto ballroom destroyed in the Toxteth riots 30 years ago, Omar’s boasts its own in-store bakery, as well as a delicatessen and a specialist halal meats counter overseen by 31-year-old owner Omar Elmi. But things could have been so much different for Granby Street-born Omar, had his father, Adam, and eldest brother, Abdi, not decided to start up their small fruit and veg retail business in Berkley Street in 1998. Omar had studied mechanics and was planning to go to university to study business for a Business Information Technology degree. He explained: “The family set this up but didn’t have anyone to run it, so I came in.” He was willing to lend a hand on a temporary basis before heading off to university, but he admitted that once he got behind the counter he was well and truly bitten by the retail bug and he soon got a taste for the business. “To start with, I was just working on the till and on the floor.” But, after three months running the small store, he realised that he wanted to make a go of it – so he bought out his father and brother and took over the venture in his own right. By September, 1998, he had moved the shop the short distance to its current location and, he says, has been serving the community for almost 13 years. Once in full control of the shop, he began to diversify and develop his store into the cosmopolitan operation it has become today. He studied and honed his skills as a halal butcher, establishing his Makkah Halal butchers in the rear of the store that provides a range of halal meats and poultry. Omar said: “I get the finest meat from North Wales and we do all the Continental goods as well, like herbs, spices, rice and fish. “We stock a whole range of olive oil and olives for different types of cooking and we have Mediterranean ingredients as well as West Indian, Caribbean and African.” He referred to Raggas, a popular Caribbean-style restaurant on Smithdown Road and which recently opened a second operation in Lark Lane , saying: “We do all the ingredients that
Omar Elmi has created a thriving business on the site of the former Rialto ballroom, which was destroyed in the Toxteth riots 30 years ago Picture: JAMES MALONEY/ jm300611ldpbiz-6
The aftermath of the riots, in Toxteth, in July, 1981, with the Rialto on the right and the NatWest bank on the left somewhere like Raggas would be using in their menus.” He said: “Halal meat is our biggest seller and separates us from other retailers. “There is a lot of preparation work for halal meats, but we are very strong on hygiene and wrapping. “It takes time and effort, but, like they say, people buy with their eyes, so the preparation is everything.” And, completely oblivious of the earlier exchange between the elderly customer and his helpful assistant, added: “Customer service is also a big factor.” These two USPs, he believes, have served to establish Omar’s as a suc-
cessful Toxteth trader. He revealed: “When we started in 1998, we probably carried about £2,000 of stock. Today we carry about £15,000-worth.” Turnover has reached about £300,000 and is growing, which gives Omar the confidence to plan for the future, with more stores on the horizon. “Our aim in the next 13 months is to open a Halal superstore in this area. “We have two or three locations in mind at the moment, and we are just sorting out the small details.” Regeneration agency Liverpool Vision is advising Omar on his business plans. Open seven days a week, he believes in optimising his resources and says demand warrants his ambi-
tious expansion plans: “People come to us from as far away as North Wales and Cheshire.” And, he says, providing he gets it right for Liverpool, there’s no reason why he couldn’t expect to replicate the model farther afield: “If we could get two strong superstores in Liverpool, we could then look at Manchester and look at having a superstore there. “It is getting the first one off the ground, though. “We have done the business plan and we are identifying properties now. Liverpool Vision are helping guide us in the right direction.” And, despite the parlous economic situation and a dearth of banking finance, he reckons his expansion strategy would impress even the most cautious of bank managers. “I believe the way the business is going at the moment, and with the business plan, I would hope for a positive feedback from the banks.” He has no regrets about missing out on university: “This has been a big eye-opener for me. People go to university, but the way the economy is going, I could have gone to university and been out of a job now.” He said his family are happy for his success, but added: “In another way, they’re probably thinking they should have stayed in the business. “But it is all down to hard work and determination.”
■ TOXTETH riots 30 years on – Main paper: Pages 12-13
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Wednesday, July 6, 2011
LDP business .co.uk Nuclear deal for AMEC ENGINEERING firm Amec has been awarded a contract with Cheshire-based Urenco UK. No value was given for the three-year deal, but Amec said it was a “major contract”. Urenco, which supplies uranium to nuclear power plants, is based in Capenhurst, near Chester. Clive White, vicepresident of AMEC’s nuclear business, said: “This is a very important contract for a major player in the UK nuclear industry and will help develop our position as a leading provider at the front end of the nuclear cycle, to complement our strong position in reactor support and clean up. “In addition to bringing our renowned and established nuclear expertise to bear in this contract, we will also be able to call upon the full range of capabilities throughout AMEC to ensure we give a world-class service.”
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LIVERPOOL’S INVESTMENT SPECIALISTS
Housebuilder pins hopes on resilient UK demand by Alistair Houghton LDP BUSINESS STAFF
alistair.houghton@liverpool.com
Persimmon Homes' Nightingale Walk development, in Ormskirk
HOUSEBUILDER Persimmon has reported healthy visitor numbers and resilient demand, despite recent surveys suggesting the housing market is weak everywhere except London. The York-based group, whose brands include Charles Church and Westbury, said demand for new properties sped up through the spring selling season to lift orders above this time last year. Private sales reservations since April have been 6% higher than last year, and the forward sales order book is now £725m, compared with first-half turnover of £715m. Persimmon sold fewer houses than the comparable period, at 4,439 compared to 4,657, though it expects to reverse this over the rest of the year as volumes pick up. Selling prices are also expected to increase over the rest of 2011 from £162,000 in the first half, which was almost 4% lower than last year, as more sales of larger, detached houses come through.
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Even though Persimmon describes the market as stable, it said output was still being held back by constrained mortgage lending, despite a greater number of higher loan-to-value products now available. The group received £35m of funding from the Government under the FirstBuy scheme, where the housebuilder and the state stump up the deposit between them, the largest allocation given to a housebuilder under the scheme. It was launched because mortgage lenders have demanded bigger deposits, which is making it harder for first-time buyers to get on the property ladder. Persimmon, which operates from 25 regional offices, also bought an additional 7,500 plots over the period, which included 800 plots at Gatwick and 200 at Whinmoor, in Leeds, with the two sites expected to generate “superior returns”. Net borrowing at the end of the first half fell to just £15m, down from £122m, despite the additional land buying, while underlying profit margins for the first half rose 1% on last year, to 9%.
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Wednesday, July 6, 2011
LDP business .co.uk
location
LIVERPOOL’S INVESTMENT SPECIALISTS
IN ASSOCIATION WITH
We must bring on the next generation of construction workers
view point
by Alan Robson, MD of Innov8 Safety Solutions IN THE last few months, we have witnessed something of a blitzkrieg of headlines, statistics and bold plans about our region’s future. We have heard about the Superport and its £1.8bn worth of infra-
structure projects which aim to transform Merseyside into a gateway of international stature. These include the creation of a £200m in-river container berth at Seaforth that would be able to handle the world’s largest cargo ships. Another part of the plan is the recently announced 1.4m sq ft expansion of Stobart’s container handling site, at Widnes. Meanwhile, the recently published Mersey Ports Master Plan is forecasting that trade passing through the Port of Liverpool and the Manchester Ship Canal will grow by 70% over the next two decades. If your head is not spinning yet from these projections, then how about this. The Mersey Partnership
further believes that the region’s airport, roads, logistics, and port could see 21,000 new jobs by 2020, and 30,000 by 2030. The £200m post-Panamax container facility at the Port of Liverpool could create 3,000 jobs. The £600m Mersey Gateway bridge, meanwhile, could create 4,600 jobs. Time to take a deep breath. Readers running businesses balancing tight budgets will know that optimism and grand plans only count for so much. The market is brutally honest. As a small construction industry business on Merseyside, we are
enormously excited about working on these projects and the wealth and job creation opportunities they will create for our region. Our concern is that we desperately need to train local people in the skills these projects require. Failure to have a skills base locally will mean we cannot fulfil the potential of these plans. We therefore must ensure that we focus on teaching apprentices and existing staff the skills they will need for these projects across the trades. Colleges such as the Maritime and Engineering College North West, in Birkenhead, have a key role to play and need Government invest-
‘Optimism and grand plans only count for so much’
ment and support. So, too, do schools, who must grasp the gravity of the opportunities here at a time when job prospects for young people are so poor. We need to bring on the next generation of workers, inspire them and give them the skills they need. I fear, however, that too many schools are too removed for the commercial reality of what our economy needs. This needs to change. Employers and small businesses, meanwhile, require resources and support from Government to train our staff and apprentices. If this is the future, we cannot afford to drop the ball by being ill-prepared. The plans are clear – we must deliver them. Our future depends on it.
Tyre firm takes St Helens site PROPERTY Alliance Group has secured a new tenant at its Abbotsfield Industrial Estate, in St Helens. Titan Distribution, which supplies specialist tyres, wheels and rims for off-road vehicles in Europe and Africa, has agreed a fiveyear lease of Unit 4 at the estate. Existing tenants at Abbotsfield include EFG Matthews and Rutland Veterinary Surgery. Andrew Lynn, of Property Alliance
Group, said: “Abbotsfield has been a successful development for us, attracting high-calibre occupiers ahead of and since our refurbishment programme was carried out. “With its superb location, good yard space and our flexibility to alter the units according to requirements, the estate provides an ideal proposition for distribution firms looking to expand or expose their presence in the region.”
BUSINESS to BUSINESS Commercial Premises INDUSTRIAL UNITS To Let. South L’pool 500 to 4000 sqft, monthly tenancy, competitive rents. From £50pw Tel: 0151 427 5051 BURTON BELL L17 Retail Shop with storerooms with flat over. Large yard & warehouse, freehold, vacant £385,000. Tel: 0151 427 9653
COMMERCIAL UNIT/WORKSHOP Rainhill to let £65pw, £750sq ft 0161 980 1912 UNITS TO LET 5,000−15,000 sqft. Initial Rent free period. 0151 486 0004
This space could be working for you. For details telephone
0151 227 2000 DAILY POST
Commercial Property On the instructions of Dermot Power and Tracey Pye of BDO
FOR SALE
Legat Owen will be marketing the development site in Chester for Re:Co Properties
‘Gateway’ opportunity goes on the market by Tony McDonough
LDP DEPUTY BUSINESS EDITOR
tony.mcdonough@liverpool.com
RE:CO PROPERTIES has instructed Legat Owen to offer a “gateway” development opportunity to the market at a prominent site in Chester. The site occupies a location
fronting New Crane Street and Sealand Road, one of the principal arterial routes into the city centre. The opportunity forms part of the Old Port redevelopment which also incorporates Elan Homes’ residential apartment scheme and new stables for Chester’s historic Roodee racecourse.
The site, which extends to 0.85 acres, has previously had planning permission granted for a five-storey, 53,000 sq ft office development. Stephen Wade, director of Legat Owen, said: “This is a superb opportunity to secure a gateway location alongside Chester’s famous Roodee racecourse.
“The site has potential for a wide range of uses, and we will be delighted to discuss individual requirements on a bespoke basis. “Our clients, Re:Co, have an enviable track record in the provision of turnkey property solutions, and are able to offer completed buildings on either freehold or leasehold terms.”
Warehouse & Storage Land Everite Road, Widnes, WA8 8PT • • • • • •
GIA 2,113.70 sq m (22,752 sq ft) Site Area 1.77 hectares (4.38 acres) £950,000 (subject to contract) Large Secure Surfaced Yard Suitable for Waste Management/Scrap or Haulage Yard/Open Storage uses Suitable for sub-division
Contact Rory Dillon or David Murray rory.dillon@sandersonweatherall.com
0161 259 7000 sandersonweatherall.com
Martial arts centre to open on Wirral estate A MARTIAL arts centre is to open in July at the Old Hall Estate, in Bromborough, Wirral. Richard Saunders, a fifth degree black belt, will open the Taekwondo Academy at the site after agreeing a deal for a 3,327
sq ft unit. Mr Saunders, who is the academy’s chief instructor, said: “We are calling it a centre of excellence because we have high hopes for our new base where students will be able to improve their skills.
“It also provides the space we need to host seminars and courses and bring many more senior taekwondo practitioners here. “We are passionate about the sport and we want to get more people
involved – whether for self defence or fitness reasons – and to raise standards.” The Old Hall Estate has warehouse and industrial units from 3,369 sq ft to 10,504 sq ft currently available to let.
Owner London and Cambridge Properties is one of the UK’s largest private owners of industrial, retail and office property to let. Its total commercial property portfolio runs to more than 14m sq ft.
13
Wednesday, July 6, 2011
ZONEFIRST lets its OWN land, offices, commercial and industrial property. If you are looking to down-size, move premises or indeed start up your new business, contact us for details on what we have available
LIGHT INDUSTRIAL UNITS
258 BROOK STREET, BIRKENHEAD (ex Wirral Engineering) 16,500 SQ FT UNIT £2.00 PER SQ FT PA High Bay Factory Units Overhead cranes, Fume Extraction System, Large Capacity Compressed Air System. Good loading and general access. 3 phase electricity, fully alarmed, Roller Shutters. Includes Office Complex, Secure Car Parking, Toilets, Canteen. Further storage land available if required. Ready for immediate occupation 304 CLEVELAND ST, BIRKENHEAD 1,100 SQ FT UNIT £125 PER WEEK Newly Refurbished Unit. 700 SQ FT UNIT £100 PER WEEK Brand New Unit. Roller Shutter, Ample Car Parking. Part of a small development of newly built industrial units. Fenced, gated, secure. Good road side location. 2 LIVINGSTONE STREET, BIRKENHEAD 500 SQ FT UNIT £78.00 PER WEEK PLUS VAT Brand New Unit Part of a small, secure Industrial Park. Roller Shutter, Car Parking. Fenced, gated. Good road side location on corner with Corporation Road.
OFFICES 1A HAMILTON STREET, BIRKENHEAD 2,600 SQ FT ENTIRE BUILDING RENT £20K PA Ex-Bank Building with Basement, Ground floor and First Floor. Recently refurbished and re-decorated. Wood Flooring, Air conditioned. Very light and airy overlooking the Liverpool Waterfront. Good parking nearby.
LAND 344 CLEVELAND STREET, BIRKENHEAD CH41 8EG STORAGE LAND RENT £POA Large, Hand Standing, Secure, fenced and gated. Good road side location with excellent Transport Links. Easy access to Docks, Mersey Tunnels and M53. All Utilities on site CORPORATION RD BIRKENHEAD, CH41 RENT £POA Storage Land fenced and gated. Dockside location
RETAIL CAPITOL BUILDINGS, LISCARD SHOP UNIT RENT £POA Undergoing major refurbishment. Very busy location right at the front of Capitol Buildings near to Tesco. 1 remaining. 10 SEAVIEW ROAD, LISCARD/WALLASEY SHOP UNIT RENT £170 PER WEEK Newly refurbished to a high standard. Very busy location. Viewing highly recommended.
Any individual site can be let on flexible terms to suit your needs No deposit, no hidden service charges, no agent fees. Simple, straight forward solutions so you can get on with your business. Tel: 0151 666 1555 Email:info@zonefirst.co.uk www.zonefirst.co.uk
14
Wednesday, July 6, 2011
LDP business .co.uk Aerospace & Defence
Avon Rbbr
109
324
305
-412
36978 29434 BAE Systems 31778 73612 51958 Chemring
-118
63412
-4
21214
38512
26134
Meggitt
38414
-114
665
552
Rolls-Royce
653 xd
+5
18714
+114
Automobiles & Parts
Law Debenture 379
+12
287
252
19414 Scot Am
23658
25912
-314 -1012
62458xd -238
7814 1012 Ireland
1018
-34
7758 4338 Lloyds Banking4834
-118
5218 3518 Ryl Scotland
3914
+18
1959 1519 Stan Chart
1660
Cble&W Wwide 4778 xd
-18
45
1308
+3
39312xd
-6
1306
+9
2314 1841 SABMiller
2314
+24
395
33414xd
+4
Tesco
40614xd
+2
Thorntons
56
-3
Elementis
2119 1525 Johnsn Mat
44058 378 112
2015xd
+7
Index 3909.09 ▲ 26.07 Balfour Beatty
31612xd
265
190
Costain
218
-3
152812 105338 CRH
134738 -2378 1399
73
35
12412 85
+15
Low Bonar
73
Marshalls
11012xd +214
Cranswick
+3212 +2
Premier Foods 1914
40918 Tate Lyle
+58
2034
Mondi
+9
Index 6039.40 ▲ 21.83
88812
25418 3i 664
1062 574
742
29218xd +412
Close Bros
795 49338
-538 +3
49814
-138
44858 30514 Intl Power
319
-134
1417
+15
138
74
Aga Rngmstr 11314
+2
119
70
Barratt Dev
11558
-1
Bellway
72412xd
+1
75312 511
12814 McBride
4314 2214 Taylor Wimpey 3814
85312 53812 Charter
831
+212
41414
-138
1119 65712 IMI
1119
+41
116
10712
+12
1258 478
Coral Prod
11
6
Cosalt
3
293
12534 Smith DS
Rexam
39414
+212
265
+638
1210
440
Domino Ptg
686
101
Laird
204
+38
333
18712 Morgn Cru
32334xd -114
959
275
Oxford Inst
959
+612
377
180
Volex Gp
33734
-412
Equity Inv Instruments Index 6173.75 ▲ 2.15
2514 1214 Ashley L
1912 xd
+114 +58
2812 1134 Dixons Retail 1614
+12
777
734
-212
525
370 xd
+14
31618 21114 Resolution
29814
+558
24412 15918 Home Retail
165 xd
-34
24434 18238 Standard Life 21514
+34
-1
28718 19812 Kingfisher
267
High
96 1812
Low
Index 4527.35 ▲ 14.34 44578
13514xd
50112 Prudential
Media
+58
845
69312 BSkyB
42712 32914 M & S
376 xd +914
850
42018xd+1534
59412 43438 D Mail Tst
+338
2339 1868 Next
2339xd +36
9312 4914 ITV
-12
2959 1724 Signet Jwlrs 523
39814 WH Smith
2946
-13
500
+8
4514 Adv Medical 312 AEA Technology
75 3 12
Var 5Day
High
-12
479
-18
+214
1671 1017 Kazakhmys
1384
-11
885
573
Land Secs
885 xd +412
1983 1374 Lonmin
1437
-14
33114 26212 SEGRO
4712 3005 Rio Tinto
4478
5514 3234 UK Coal
37
1741
+2
60
-78
-3
196114
+58
Low
32214 easyJet 72312 JD Sports Fashion
-14
1005
+112
14212
1112
1251 92
241 Albany Inv Tst 84712 AMEC 2012 Anglesey Mining
270 xd
Oil & Gas Producers
1207
Price
36658
JJB Sports
1109 xd
-1
+61
36
1534 Johnson Serv
3434
-58
+118
5814
-4
+714
578
396 Nichols
54712
-514
+712
23458 Balfour Beatty
3912
2914 Beale
607
501 Compass Gp
31612 xd
+212 +1534
3634
+1 2
+12
607 xd
+ 12
+512
14612 50 1257
95 NWF
14612
+7
+17
2112 Park Gp
46
- 14
-12
80312 Rathbone
1150
+12
+80
126212
478 Coral Prod 98212
Dee Valley
11
-38
1230
+1212
-5
139
9712 Redrow
12812
+318
+612
14312
+1
+514
12018
RSA Insurance
13778
36134 Berendsen
548
67412 Bunzl
79112xd
+1 +11
54912 De La Rue
-2
+11
29478 20534 Electrocmps
27334xd
-5 8
819
589
811 xd
+5
1493 1108 Tullow Oil
1301
+48
291
23734 G4S
28434
Oil Equipment & Services
452
32112 Hyder Cons
425
-1258
Index 25854.04 ▼ 31.89
339
18312 Interserve
339
+834
42
2
2037 1258
548
-512
63112
1475
550
34
Prem Farnell
8414 Rentokil
3412 Sportech
2514 Telme Gp
3012 xd
3812
1914 Speedy Hire
37
Ultima
1688 Unilever
Utd Utils
32214 easyJet
2440
Var 5Day
-12
-18
+ 34
+1
- 14
-1
- 14
1 38
2034
60912
xd
+12
36658
+38
Enterprise Inns 6614
-114
35412
+212
+212
+434
-3
-112
+46
+17
-
1846.00
0.32
-
327.70
1.66
Income Plus
-
205.40
4.24
Japan
-
230.00
0.51
Jpan Spec Sits
-
136.10
0.10
Spec Sits
-
2013.00
0.01
Sth East Asia
-
771.90
0.01
GARTMORE FUND MANAGERS
Euro Sel Opps Income Pratical Inv
-
932.35
1.03
-
213.26
3.83
-162.02
173.46 4.27
GUARDIAN
-
Intercontl Htls 1304
+4
Pacific Acc
-259.32
272.96
-
21278 Intl Cons Airlns 25834
+34
Property Bonds
-2010.83 2094.61
-
15514
+118
11718 92
10614
+38
28438 Mitchells&Btlrs 31912
+112
Marston’s
9038 5818 Punch Taverns 73 153
9834 Rank Gp
335
21414
14934 +2
26178
+18 -134
27178 190
TUI Travel
22714
1887 1368 Whitbread
-3
32814
-3 4
126212 98212 Dee Valley
1230
-5 -12
71012
+512
1517 1250 Severn
1493xd
63112 53812 Utd Utils
60912xd -112
-3
AIM Index 877.54 ▲ 6.94 API Gp
2812
13
4
Armour Gp
414
158
1
Crimson Tide 138
214
112
Dawson Intl
178
838
478
Eckoh
778
14212 1112 JJB Sports
21
+12 -5 8
86
3034 Man Brnze
4712
+1
12
4
1018
550
35712 Portmeirion P 49212
+638 +112
6114 16
-212
Redhall Gp
69
-12
Scapa Gp
5912
+14
108
67
Uniq
7718
513
Young A
66334xd -114
-3 8
0.99
272.30 3.02
63.75
3.20
223.50 3.09
134.30
3.84
HENDERSON HORIZON FUND
European Smllr Cos A -
1067.60
- 53.85 -
-
56.26 4.50
464.70
2.82
HILL SAMUEL UNIT TST MGRS
Capital
-322.87
335.79 1.10
European
-
848.90
0.70
Far East
-
564.10
1.80
Inc & Gwth
-
206.50
3.30
International
-
436.10
0.40
North Amer Acc
-
485.80
0.10
INVESCO FUND MANAGERS
-
225.13
0.37
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 Low Funds
High
Price
Var
Consols
£90932
£761132 Cons 4% .................£7734
£582732
Swallowfield
99
-
Sing ASEAN
1534 Johnson Serv 3434
249
Monthly Inc
-1 4
36
Metalrax
-
UK Equity Inc A
34618 30338 Centrica
107.60
-223.50
Gilt & Fixed
Sterling Bd Unit Tst
Index 4742.49 ▼ 6.68
3714 914
-
-272.30
+14
1639xd
Pennon Gp
Balanced
Gilt & FI
Restaurant Gp 30278
26812 16034 Stagecoach
HSBC INVESTMENT FUNDS (UK)
British
20434 12534 Thomas Cook 13234
685
American Gwth & Inc
-1
50612
15514 12234 Ladbrokes
-12
-
542.65
1435 982
-134
617.80
-515.52
Holidaybreak 290
33018
3012 xd
-
-1029.03 1083.19
240
7938
Amer Spec Sits
International Acc
360
142
Yield
-5
Greene King
-1 8
Offer
Price Gross
Index-Linked Acc
398
17312 55
9534
Price
+12
518
285
Bid
Terms
FIDELITY INVESTMENT SERVS
-25
Compass Gp 607 xd
£50 Cons 212% ................ £53
Conversions
£8134 £108716
£ ABROAD
3934
3234 UK Coal
54712
Smiths News 8814
12012 79
Price
1914 Speedy Hire
53812
Menzies J
34634 17734 Northgate
114 -9
Experian
▲ 0.65%
Low
78
378
30834 215
37134 +1034
479
+12
+178
34
21
17434
Ashtead Gp
2250
+38 +1334
+314
1992
20778 77
45418
High
+60
1992 1346 Aggreko
2336 1603 Ryl D Shell B
32012 PZ Cussons
501
-1 8
77112
Var 5Day
+1 2
312
939
409
+60
AEA Tech
+12
1484 75812 Burberry Gp
980 xd
1812 312
40514
+2
up 7.96
Index 4655.16 ▲ 16.65
Cairn Energy
+5
607
71012 560
72212 +1312
Index 23461.19 ▲ 17.47
3153 2037 Carnival
-3 8
79412 63512 Capita
Personal Goods
Index 4845.49 ▲ 2.55
28938
23138 Sage
801
-1
+3
63212 48758 National Grid 614 xd
-312
1109xd
2146
Travel & Leisure
+34
145112 +1212
35034 Premier Oil
2231 1784 Imperial Tob
+26
13558
14714 10134 Logica
45938
535
2813
+134
BP
49314 366
2813 2166 Br Am Tob
10134
Kewill
509
362
Tobacco Index 32096.64 ▲ 226.22
32534xd -138
85
156412 100312 BG
5514 35714
+1
+58
123
Support Services
1668
+12
36414 23014 Invensys
302
1754 1409 Admiral Grp
7434
Utilities
6312 3212 Emblaze
563
-8 -14
Index 762.09 ▼ 0.53
-1
1915 1271 Autonomy
-5
59012 50512 Reed Elsevier 575
Software & Comp Servs
-5812
196058 139358 Marsh McL
46812xd +34
1207 88112 Pearson
-314
Index 3792.93 ▲ 28.77
4634 28712
-5
31534
Mobile Telecoms
75612 54212 Inmarsat
7358
DAILY POST REGIONAL INDEX 1240.68 Price
+2
1251 84712 AMEC
62712 38112 Mothercare
47214xd -258
445 xd
Index 4429.65 ▲ 10.75
-118
Edin US Trkr Tst65212
Gt Portland
Index 8542.47 ▲ 0.53
12012
14012 11214 Br Assets
49214 38812 Edin Invst
289
+18
47778 33318 Aviva
+34
66012 538
BBA Aviation 22078
12334 8034 Lgl & Gen
+60
153
445
14312 12018 RSA Insurance 13778
+1
980 xd
15734 10234 Dunedin Sml
+5
2187
Debenhams
41878
+7
486
62912 443
Brit Land
+6
53118 46658 Glencore Intl
-1312
60112 23 xd
361 35314 28718 Big Yellow Gp 32112xd
-5
2187 1128 Weir Gp
Index 2660.45 ▼ 13.01
+58
-1
Index 1664.07 ▲ 12.35
Industrial Transportation
42
62812
Nonlife Insurance
+2
3112 Vernalis
2919 2263 Daejan Hldgs 2770
2043xd +16
3712
316612 +1612
134812 1111 GlaxoSmthKln 1347xd +312
-4
245912
28058 ARM Hldgs 1934 BATM
41258 31114 FirstGroup
1400
Fresnillo
18234 14178 Vodafone Gp 16614xd +114
28712xd
2414 Renold
Brown (N) Gp 26734xd +578
1005 72312 JD Sports
Candover Inv 588
+4
2063 1478 Spirax Srco
-112
42538 25314 Inchcape
555
MS Intl
+4
31114 221
34814 Halfords
+11
1435
Life Insurance
-58
18212 Dunedin IncGth 22434
Fenner
4312 Molins
24034 175
38934
777
38114
7738 56
7012 xd
3126
1634 82312 Antofagasta
651
10234 7134 Psion
Cancel Fund
28
1592 1073 Go-Ahead Gp 1579
3385 280112 AstraZeneca
UNIT TRUSTS
Tech Hardware & Equip
Pharma & Biotechnology
Real Estate
3437 2254 Anglo Amer
-2
12234 64
50
+14
45
-2
39038 30478 Alliance
228
Bodycote
+7
6655 4425 Randgold Res 5155
Index 7861.47 ▲ 84.12
Index 1729.02 ▲ 23.16 705
-58
Industrial Engineering
39734 189
134 xd +334
+7
2075
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.
Index 9681.52 ▲ 33.28
786 xd
1018
16014 11414 Spirent Comms 15018
Index 1958.11
+318
12812
41558 198
400
F
Index 26237.60 ▼ 142.34
139
+16
+7
UTV
263112 1767 BHP Billiton
+12
697
106
1682 990
1612
Index 3343.48 ▲ 23.34
151
+90
1150
General Retailers
204
142
1257 80312 Rathbone
General Industrials
Utd Business 55912
3648 3015 Reckitt Benck 3578 9712 Redrow
+112
Mining
1922 1192 Schroders
265
T
4214
502
Index 6926.21 ▲ 131.24
-12
278
W
12812
725
84612 62912 WPP
97712
Index 3424.13 ▲ 10.61 -1512
+12
1033 72812 Provident
1429 1079 Smiths Gp
Electronic & Electrical
67212
Household Goods
-12
London Stk Ex 1062
53712 Smith Nph
6934 STV Group
168
12414 4034 Trinity Mirror
Index 3790.22 ▲ 3.08
31212 119
50312 35358 Drax Gp
T
Jul 5, 2011
Health Care Equip & Serv
192
General Financial
340
M
FTSE-Rebased
Jan 5, 2011
-3
654
3139.39 ▲ 0.14%
Those securities which have increased in value since the previous close are shown in bold type.
Share price (pence)
63412xd +212
Forestry & Paper
386
Jun 27- Jul 1
PERSIMMON
382 xd +738
72412 40612 Cooksn Gp
Index 8784.54 ▲ 78.75
Jun 20 - Jun 24
450
-8
729 xd
2037 1688 Unilever
+612
Electricity
1417 1108 Scot&Sthrn
870
485
380
1078xd
57012 38014 ICAP +212
1418 918
Kier Group
AB Foods
47712 Carrs Mill
3518 16 656
+34
Construction & Materials
June 13 - Jun 17
415
Index 5382.73 ▼ 5.06 1182 940
+57
17834
23458
56
Food Producers
654
2042
35714
32214 Sainsbury
Index 7044.47 ▲ 96.94
Index 7822.32 ▲ 95.86
5655
520 +278
FT ALL-SHARE up 4.45
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
SPOTLIGHT
30038
5805.00 ▲ 0.14%
KEY
FTSE-100
2261 1223 Wolseley
Index 772.11 ▼ 7.52
20 DAY MOVING AVERAGE up 7.97
5750
78 xd +112
30814 26234 Morrison W
Chemicals
17834 66
KCOM
42478 33934 Dairy Crest
1306 1050 Diageo
2042 1069 Croda
5940
Food & Drug Retailers
90712 724
Index 10093.32 ▲ 81.40
Britvic
+358 -12
875
Beverages
518
6035
5845
20418
6024.03 ▲ 0.11%
FT-SE 100 INDEX up 6.49
Travis & P
1127 747
Closing Indices
FTSE 100 INDEX
20-Day Moving Average
6138 3712 Cble&W Comm 4012 xd
+214
73078 60118 HSBC
36412
+12
Index 4771.43 ▲ 32.78
87512 61012 Bco Santander 722
1395 1035 Barr (AG)
52712
20418 13058 BT Gp
Banks
23714 Barclays
-214
Index 2458.30 ▲ 34.86
7812 44
Index 4453.58 ▼ 26.51 344
24334
42618 Witan
528
90
Index 5531.86 ▲ 51.43 23718 12114 GKN
+334
379
Keep track of all the major share moves of the day with our live FTSE ticker at www.ldpbusiness.co.uk
-38
32334 21512 Hend Smllr Cos 322
Fixed Line Telecoms
24758 19214 Cobham
18758 11114 Senior
32412
32478 26334 Forgn & C
Index 3398.36 ▲ 4.06
LondonStockMarketatClose
£69 Cnv 312%.................£7212 £10018 Cnv 9% 11 ............£10018
-132
Treasury
Country
Currency
Tourist
Buy
Sell
Australia
dollars
1.42
1.501
1.506
£61
£50 Tr 212% ................. £531516
£116332 £1071516 Tr 9% 12............. £1071516
Canada
dollars
1.47
1.545
1.547
Denmark
krone
7.85
8.287
8.297
£107
European Union
euro
1.06
1.111
1.112
£121516
Japan
yen
123.67
130.460
130.560
£114332 £109532 Tr 5% 14................£11118
New Zealand
dollars
1.80
1.940
1.945
£111932 £105732 Tr 734% 12-15........£10614
Norway
krone
8.17
8.608
8.609
Poland
zlotys
3.83
4.381
4.389
Sweden
krona
9.58
10.068
10.078
Switzerland
francs
1.29
1.359
1.360
Turkey
new lira
2.45
2.608
2.618
War
United States
dollars
1.53
1.608
1.609
£8334
£334116
£1021516 Tr 5% 12............. £1021516 £11512 Tr 8% 13................£11512
£30414 Tr 212% IL 16 .........£33138
+18
+2932
£142316 £1322132 Tr 834% 17 .............£13558
+14
£147132 £1332732 Tr 8% 21............. £1393132
+38
£6712 War Ln 312%......... £712932
-4116
Last night, the pound was worth: $1.6084 (down 0.0006) ......... 1.1117 euros (up 0.0036 ) ......... 130.7900 yen (up 0.67)..........Its trade weighted index was 78.10 (up 0.40) Metals in $ per troy ounce: Gold 1510 (up 15) ............................. Silver 34.76 (up 0.66) ............................. Platinum 1731 (up 9) ............................. UK base lending rate 0.5%
15
Wednesday, July 6, 2011
LDP business .co.uk London market THE London market struggled to make headway yesterday, after banks and mining stocks slid on renewed fears about the strength of the global economic recovery. The FTSE 100 Index had made strong gains in recent days, having pushed above the 6,000 mark for the first time in more than a month, after Greece agreed to tough austerity measures, making it seem likely it would avoid a debt default. But the blue-chip index gained just 6.5 points yesterday, closing at 6,024, after factory orders in the US came in lower than expected and China’s central bank warned that inflation pressures remain high. This caused commodity prices to slide, which impacted on mining shares. The market was also held back by a lacklustre start on Wall Street, which reopened after the July 4 break. The pound was up against the euro at 1.11 after disappointing eurozone service sector data. Capital Shopping Centres was among the fallers after investment bank Credit Suisse downgraded the company to underperform from neutral. The Trafford Centre owner fell 1.2p to 400.5p. Outside the top flight, Persimmon dropped 0.3p, to 491.4p, despite reporting resilient demand and healthy visitor numbers in its most recent trading update. The biggest Footsie risers were Tullow Oil, up 48p at 1301p, IMI, ahead 41p at 1119p, Reckitt Benckiser, up 90p at 3578p, and Marks & Spencer, ahead 9.2p, at 376p. The biggest fallers were Intertek, down 53p at 1910p, Lloyds Banking Group, off 1.1p at 48.8p, Arm Holdings, down 8p at 601.5p, and Rio Tinto, off 58.5p, at 4478p.
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
market comment
Hotairand inflated positions causeUS breakdown
YOU would never know it from all the hot air rising out of Washington, but President Barack Obama and Congressional Republicans could easily reach a deal to raise the debt limit and avoid an early August default. Before talks hit a brick wall last weekend, negotiators were tantalisingly close to a $2 trillion-plus budget deal that would enable Congress to sign off on further borrowing, sides are closer to a deal than it might according to Democratic and Repubappear. lican sources. In talks led by Vice President Joe Since then, things have not looked Biden, negotiators had agreed to good. Obama compared Republicans to reduce discretionary spending, which lazy schoolchildren, and Democrats covers everything from space accused them of deliberately exploration to pollution consabotaging the economy. trol, by between $900bn and Republicans have not shied $1.7 trillion over 10 years. away from salty language, Republicans resisted cuts to either. military and other security “Washington is addicted to spending sought by Demospending, and the addict-incrats, but Senator Charles chief is the president,” RepubSchumer, a Democrat known Email us with lican Senator Jim DeMint as a hard-nosed partisan, said your views at said on the Senate floor on on Thursday he thought a letters@ Thursday. dailypost.co.uk, compromise was possible in Analysts worry lawmakers or write to us this area. PO Box 48, Old may be painting themselves The two sides had also tentHall Street, into a corner. atively agreed on cuts to a Liverpool “In order to get out of this wide range of benefit proL69 3EB mess, they’re going to have to grammes, such as farm subeat some of their words,” said sidies, student aid and Federal Joe Minarik, a former budget official employee retirement plans – a total of in the Clinton administration. roughly $200bn, according to DemoThe Treasury Department has crats. warned the country will face default if Democrats have hammered their Congress does not lift the $14.3 trillion conservative opponents over a Repubdebt ceiling by August 2. lican proposal to scale back the MediThat could push the country back care programme for future retirees, into recession and up-end financial but the budget talks have yielded some markets across the globe. consensus in this area as well. From a dollar standpoint, the two Democrats say the deal could save
What do you think?
President Barack Obama and Vice-President Joe Biden face a tough month as they seek to strike a budget deal Picture: MORRY GASH roughly $200bn through structural changes to health programmes like Medicare and Medicaid, the healthcare programme for the poor and handicapped, that don’t scale back benefits. Both sides have also taken a look at changing the inflation index, which could slow the growth of benefit payments and tax exemptions. That could yield $300bn. The lowered spending levels would reduce the amount the Government spends on interest payments. That could yield a further $400bn or so in
savings, according to a back-of-the envelope calculation. That adds up to at least $2 trillion in cuts – roughly enough to ensure that Congress would not have to revisit the politically toxic issue before the November, 2012, elections. The main sticking point is tax increases. Republicans leaders have said they’re off the table, and Democrats no longer expect to get the increase in income-tax rates for wealthy households that they had initially sought.
For all the latest local and national business news online, log on to www.ldpbusiness.co.uk
business diary Wednesday, July 6 Knowsley Chamber of Commerce’s After Hours networking event is being hosted by O’Connell & Squelch, Stanley Grange, L34 4AR. Networking will take place over canapés, cocktails and drinks. It costs
£15+VAT for members and £20+VAT for non-members. For more details, see www.knowsleychamber.org.uk/events.aspx Thursday, July 7 JellyLiverpool is for people to get together to work in a different environment from
their usual one, whether it be freelancers, homeworkers or just people who want a change of scenery. You can visit for the day or just drop in for an hour. It is at Leaf Bar & Café, Bold Street, from 9am to 5pm. For details, see openlabs.org.uk/jelly/ or call Allison Cordner on 0151 231 4777. Wednesday, July 13
Phil Blything, from Glow New Media, will be outlining a range of methods that can be used to increase traffic to websites, including how to raise a site’s search ranking and how to use social media, as well as advice about the content of websites. The Knowsley Chamber event is being held at The Village Hotel,
Whiston. It costs £12+VAT for members and £18+VAT for non-members. To book, visit www.knowsley chamber.org.uk/ events.aspx Friday, July 15 The monthly Daresbury Science and Innovation Campus business breakfast network event brings together around 100 people working for
hi-tech companies, entrepreneurs, universities and support organisations. The breakfast is at Daresbury Innovation Centre, starting from 8am. For more details, see www.daresbury sic.co.uk/events Friday, July 15 A one-hour seminar on improving email management techniques is part of Liverpool
Chamber of Commerce’s latest 60 really useful minutes series. The session will go through a series of simple hints and tips on how best to manage email. It begins at 9am and is free for Liverpool Chamber members and £5 for non-members. To book, visit www.liverpool chamber.org.uk/ events.html
16
Wednesday, July 6, 2011
LDP business .co.uk trading gossip ■
ANY good comedian worth their salt wants to be topical, and Liverpool comic and Radio Merseyside presenter Sean Styles was bang on the money with his routine at last week’s Venmore office opening. The affable Evertonian led the congratulations for commercial property firm Venmore on their new Dale Street site, in a week marred by the latest high street casualties of the coalition Government’s austerity drive. Reading a selection of goodwill messages to Venmore he said: “The best of luck, from Jane Norman and TJ Hughes – so we’re off to a good start there, then.” However, Sean didn’t reckon to the witty riposte of Venmore chief executive Rob Farnham, who was just as droll in his thank you speech to the comic. Rob intoned: “We are a Liverpool institution – one that has been around for longer than some of Sean Styles’s jokes.” Touché!
■
DISPUTES involving tea have occasionally resulted in some minor skirmishes that have had major consequences. But Boston, 1773, may soon be replaced by St
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
the back page
Library work is far from an off-the-shelf project
working day
Steven Gerard, 37, is project leader for Shepherd Construction, the main contractor delivering the £50m refurbishment and redevelopment of Liverpool’s Central Library. He lives in Sefton with his fiancée, Stacy, and their two children 5.30am: Leave home after kissing my kids as they continue sleeping. 6am: Head to the gym for a wake-up workout. 7am: Drive into work in the city centre, where we’re in the first phases of the redevelopment of the Central Library, a hugely complex project that requires intricate project management. Liverpool has always been an important location for Shepherd, and we are currently constructing a number of other projects across the city. 7.30am: I begin making calls to the team for progress updates. 8am: Greet the office team and review the day ahead.
Helens, 2012, which is brewing up to be the latest battleground for tea supremacy. Yesterday’s announcement that Typhoo Tea is to sponsor St Helens RLFC puts them on a collision course with the Super League’s club most famous fan. For comedian Johnny Vegas, above, has featured in adverts as Al, alongside his sidekick Monkey, promoting PG Tips. Typhoo Tea’s chief executive, Keith Packer, is unfazed by the challenge, and is looking forward to playing his ace card – Typhoo will be providing the tea to St Helens’s new stadium next season. “That’s the moment I want to catch,” he said. “Johnny Vegas drinking Typhoo.”
10am: Host the Workforce Consultation meeting down on site. This is an excellent opportunity to communicate directly to the workforce on safety issues and plan out the programme of work for the weeks ahead. We currently have 80 people working on site, which will rise to 180 in the future as construction progresses, and working safely is of paramount importance to us. 11am: I take a tour of the project to review the safety and general progress with my own eyes, rather than through reports issued to me. Through experience, you know when a site is being run well, and my team is doing us proud, particularly as there are numerous challenges that arise during the restoration process. 12pm: Attend a lunch meeting with our local apprentice supply chain partner to review our plans to bring more apprentices into the industry and look at the opportunities that may arise during the library’s redevelopment. 1pm: Head back to the office and catch
I like to review safety and general progress with my own eyes – Steven Gerard is leading Shepherd Construction’s work on the Liverpool Central Library refurbishment up on emails from the client and consultant team. I always try and block out 30 minutes each day for this as the emails are plentiful. 1.30pm: Take a call from our marketing team to discuss our community engagement programme. We are partnering with John Moores University on aspects of their curriculum and also supporting the Claire House Children’s Hospice. 2pm: Step into another meeting to discuss the procurement of the many works packages that we need to put in place on the project as construction
progresses. This is an extremely busy time and a complex process as we need to ensure the right packages are procured that will deliver the project on time and within budget. 3.30pm: I have a quick catch-up meeting with Joyce Little, head of libraries for Liverpool City Council to review progress. Joyce has over 30 years’ experience with the library services and any time spent with her is invaluable, due to her knowledge of the building. 4pm: Do some work on the upcoming programming constraints with our
senior planner to ensure that we are aligned and know how we’re planning to overcome the challenges. 6.30pm: Leave the office and head home for some quality family time, having tea and putting the kids to bed. 8pm: I’m not one for TV and find that I switch off better spending an hour getting some practice at the local golf driving range. 9.30pm: Chill out with Stacy and talk about each other’s days before getting a good night’s sleep ahead of another busy day.