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5803.13 ▲ 29.67 LONDON’S blue-chip index closed higher yesterday as banks and retailers gained after a bright start on Wall Street. The FTSE 100 Index added 29.7 to 5803.1, having gathered momentum in the afternoon as it followed US markets upwards, with mining shares also benefiting from improved investor sentiment. The pound dipped against the euro to 1.13 on market talk that a solution to Greece’s debt problem might be found after politicians warned about the dangers of a default.
Profits propel Park’s shares to 12-year high by Alex Turner
LDP BUSINESS STAFF
alex.turner@liverpool.com
VOUCHER and gift card provider Park Group saw its share price reach its highest point for more than a decade after it unveiled another strong set of annual results. The Alternative Investment Market-listed (AIM) firm has more than doubled in value in the last 12 months. Yesterday, it peaked at 47.95p – its highest level since the DJ Spuddles fiasco, when Park incurred huge losses launching a flavoured frozen chip brand in the late 1990s. It closed at 46.55p last night, up 5% for the day.
MARKET REPORT: PAGE 15
AIM investors have backed the group’s consistent and profitable growth as well as its product launches, led by pre-paid card Flexecash – which is the result of three years’ development and £3m investment. The Birkenhead group trumpeted the successful launch and significant potential of that product, as it hailed what it hopes will turn out to have been “one of the most important” in its 44-year history. Park’s group managing director Chris Houghton said: “Flexecash has opened up quite a few new opportunities, right from extending the Christmas savings business, to online, and in the corporate markets.The card has made a contribution to profit already.”
Revenues grew 6% to £279.9m in the year to March, building on previous strong growth which has seen turnover increase by more than £50m in the last three years. Pre-tax profits also increased to a high of £7.0m for the five years since the group recorded a hefty pre-tax loss in its 2006 financial year. Mr Houghton highlighted Park’s “progressive dividend policy”, which has resulted in proposing a total dividend for the year of 1.7p, up 29%. The group’s growth has seen Park add 35 “highly-skilled staff ” in its technology and IT departments in Wirral. Park Group made its name as a Christmas hamper business but it has shifted the focus of its business onto
vouchers for corporate clients and the Christmas savings markets. Park’s sales are split 60-40 between consumer and corporate markets. Its consumer sales, which increased 8%, include Christmas saving and online sales direct to consumers, while its corporate sales are focused on companies running incentive and reward schemes. It was a busy year for Park, which acquired Dublin-based Celtic Hampers and Family Hampers for £800,000 last October. It said the integration of the business is now “virtually complete”. In February, Park Group paid nearly £6m to buy its head office site, having sold a secondary site for £1.8m in 2010.
■ BILL GLEESON: Page 8
Maritime venture floats hotel bid
inside
Port grows market share in first quarter THE Port of Liverpool continues to make headway in choppy waters, as it increased its market share in the first quarter of the year. PAGE 2
Forecast up CARPHONE Warehouse has raised earnings predictions for its European arm in the current financial year, and reported strong progress at its US division PAGE 4
Tesco warning SUPERMARKET giant Tesco reported an improving trend in UK sales but warned that high fuel costs continue to divert customer spending. PAGE 5
A computer-generated image of a Seatel, which allows renewable energy firms to base staff close to their work
BUSINESS EDITOR: BILL GLEESON 0151 472 2319
DEPUTY BUSINESS EDITOR: TONY McDONOUGH 0151 330 4918
BUSINESS REPORTER: NEIL HODGSON 0151 472 2451
BUSINESS REPORTER: ALISTAIR HOUGHTON 0151 472 2449
BUSINESS REPORTER: ALEX TURNER 0151 472 2321
A FLOATING accommodation firm has been launched by city-based Sanderson Maritime. The Seatel venture targets the offshore renewable energy sector, such as wind farms, and allows contractors to base staff on floating platforms of up to 70 bedrooms close to their operations rather than coastal sites which involve a round trip of up to four hours. Sanderson has formed a joint venture with global marine services specialists Svitzer UK, a subsidiary of the AP Moller-Maersk Group which has its UK headquarters in Liverpool. Sanderson managing director Julian Sanderson said: “As the renewable sector develops, there is more demand for more tailored accommodation.”
BUSINESS REPORTER: PETER ELSON 0151 472 2502
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Extra jobs at Simarco as freight load rises FREIGHT handler Simarco saw a 25% increase in individual consignments to 1,938 in the last year. Simarco, which opened its Liverpool office in 2007, increased staff to handle the extra work. Simarco’s managing director, Simon Reed, said: “The last year has reinforced the commercial and geographical advantages which our office in the city represents. “We have also seen a rise in the number of companies recognising that site as something of a national leader in its ability to handle all their Customs’ paperwork.” He added that the performance allowed Simarco to take advantage of the continued strong showing of the Port of Liverpool. “In the Port of Liverpool, I’m glad to say that we have a great partner – one which is efficient and generally not affected by the sort of bad weather which can close other UK ports, causing delays freight firms and their customers can well do without,” said Mr Reed.
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Liverpool overtakes Forth in battle for market share by Alex Turner
LDP BUSINESS STAFF
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THE Port of Liverpool continues to make headway in choppy waters, as it increased its market share in the first quarter of the year. For the first time in nearly five years, it overtook Forth, in Scotland, in terms of tonnage handle, to rise to sixth busiest port by tonnage moved. Official figures from the Department for Transport showed that Liverpool enjoyed its best market share for tonnage since quarterly records began in 2000 for the period January-March. In handling 7.72m tonnes, it captured 6.2% of the UK market. It also showed a huge increase of 25% on the first quarter of 2010, which was badly affected by the closure of Stanlow. However, it was still 3% above 2009 levels, which was double the growth seen at all UK ports in that period. Gary Hodgson, managing director of Peel Ports Mersey, welcomed the underlying trend that the data highlighted. He said: “It should be noted that any comparison with Q1 2010 should take into account the closure at Stanlow during that period; however, even when stripping out this effect, the trend is still positive – as demonstrated by our share of the UK market.” Freight trade is also measured by a second factor – the number of units handled. Liverpool saw a 5% reduction on the first quarter of 2010, down 12,000 to 247,000 units. Mr Hodgson attributed this drop, and more, to a single factor. “In terms of unitised traffic, our net reduction is reflective of the loss of the DFDS Dublin service at the end of January from Twelve Quays,” he said. “This masks an underlying volume improvement on all other RORO [roll-on, roll-off] routes and continued growth in the container terminal.” DFDS had operated 12 sailings a
Gary Hodgson, managing director of Peel Ports Mersey – welcomed the positive trend Photo: COLIN LANE/ tmcl070611peel-5
week on its Birkenhead-Dublin route but blamed “considerable overcapacity” in the market when it pulled the route at the start of the year. Its difficulties were indicative of the ongoing problems in the maritime sector, with trade remaining well below pre-recession levels across UK ports. Mr Hodgson added: “Overall, current trading conditions remain difficult, with a general lack of confidence in the market as a whole. This
can be seen with tonnages throughout the UK remaining stable but subdued, especially on Irish Sea routes. “From the Port of Liverpool’s perspective, the fact that we have seen growth in our market share helps to provide us with cautious optimism, and that demonstrating the value that Liverpool adds to the total supply chain is winning us new business.” The Port of Liverpool’s owner, Peel Ports, has ambitious long-term plans
for its maritime portfolio, which also includes the Manchester Ship Canal. It is looking to invest £500m in the next 20 years in a move it forecasts will see the volume of trade passing through the port and Ship Canal increase by 70% by 2030. Its plans include developing land that currently forms the Seaforth Nature Reserve, a Site of Special Scientific Interest and home to thousands of sea birds.
■ BILL GLEESON: Page 8
Public consultation on port plans gets under way THE first in a series of public consultation events about Peel Ports’ plans to further develop the Port of Liverpool and Manchester Ship Canal is being held today. Senior managers from Peel Ports will be at Liverpool’s
Crowne Plaza hotel ,at Princes Dock, from 3.30pm-7.30pm, to discuss the plan and answer questions. There will then be eight further events across the North West. Peel recently launched its Mersey Ports Master Plan,
which sets out its 20-year vision for growth and future developments. Gary Hodgson, managing director of Peel Ports Mersey, said: “These local events are very important. “All written views given
will be carefully considered and will help to shape the final version of the master plan.” Future events are: June 16 at Stobart Stadium Halton, Widnes; June 21 at Crosby Civic Hall; June 23 at Pyramid
Arts Centre, Warrington; July 5 at Wallasey Town Hall; July 7 at Boat Museum, Ellesmere Port; July 12 at Eastham Lodge Golf Club; July 14 at Digital World Centre, Salford Quays; and July 21 at Bootle Town Hall.
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Keen eye for style and detail the key to success for salon chain
Voodou founder and managing director, Rob Webb, opened his first shop in Anfield 35 years ago with a £1,000 loan from his uncle
Tony McDonough meets ROB WEBB, MD of Voodou IT WAS once said that Liverpool had a pub on every corner. That could now be accurately changed to a hair salon on ever corner. According to Rob Webb, managing director and founder of the Liverpool-based Voodou chain, there are actually more than 800 salons across Merseyside. When you add to that the multitude of mobile stylists working in people’s homes with very few overheads, you begin to get an understanding of how competitive a market place this is. That Webb, 53, can quote that figure from the top of his head is no surprise. Aided by his financial controller and right-hand woman, Christine Valiant, he has a firm handle on the details, probably one of the key drivers of his success so far. Voodou has five outlets across the city – two in Bold Street, one of which is just for men; one in Button Street; West Derby Road; in Tuebrook; and Breck Road, in Anfield. It also has a concession based within the city’s Topman store. In the last year, the company has also opened a hairdressing and barbering training academy. In total, the business employs 90 people. Bold Street is Voodou’s headquarters, but it is at the Breck Road salon where it all began 35 years ago. “I left All Saints School in Anfield at 16 with no qualifications,” said
Webb. “I was no great academic. I went straight into hairdressing and when I was 18 I borrowed £1,000 from my uncle and opened the shop in Breck Road. “Within a year I had opened the second store which when I look back now was probably pretty crazy – but it worked. “Now, 35 years on, I am shoulder to shoulder with industry leaders. Quite simply, it is all about hard work. “I do work long hours. Our car park here closes at 5.30pm and we all have to leave, but I will take work home with me and I always have a pad by the bed for any ideas that come to me.” Attention to detail seems to be key to Webb’s approach to running the business – even the Big Issue seller outside the main shop in Bold Street appeared to be perfectly coiffed. “From a hairdressing point of view, we aim to make people feel great about themselves,” he said. “Proper training is important – that is all about the nuts and bolts –
q&a Age: 53 Highest educational qualification: Indentured hair stylist Biggest achievement in business: Global business award that we won in 2006 and held for two years Biggest regret: Regrets are a waste of time Best advice received: Love what you do and you will never have to work another day in your life Main unfulfilled ambition: I am always about today
but behind the skilled stylist is the individual with a personality. “That is important because we try to match a client up to a stylist with whom they will feel comfortable. “For example, if a 70-year-old lady comes in then we may not match her up with a young trainee, as they may not have much to talk about. “Retail sales come from good consultation. You cannot give a client something they don’t want or need. “It is all about finding out what the client’s needs are.” Webb says one of the biggest changes in the industry in recent years has been the effect of celebrity culture. And he adds that it is now as important as ever for stylists to be aware of ever-changing trends and fashions. He said: “From day one, when we take a trainee on, what we want from them is some kind of idea about fashion and clothes – that is fundamental. “As a business, we spend a lot of time looking at what is appearing on the catwalks around the world. “Celebrity culture is now huge. The other day we had Chloe, from the TV show, The Only Way is Essex. “It was great that she chose us and she put it out on Twitter that she was here – we had a load of people arrive here within a short space of time, including the paparazzi.” That particular event, said Webb, demonstrated the power of new media and Voodou has not been slow to appreciate this. “Facebook is massive for us “ he added. “Five years ago, we realised that new media was something we were going to need to get our heads around. We now have more than
9,500 followers on our Facebook page and we have some research which suggests that could be more than any other salon in the world. “However, we are careful about selling directly to our Facebook friends. We use it for soft selling – giving out special offers, for example. “We also get 11,000 unique visitors on our website every month, which is pretty good going.” Voodou’s new media presence is a key part of Webb’s wider strategy of being able to pinpoint precisely his target markets. Both he and Christine spend a lot of time analysing the profile of their clientele. He said: “ We know that 39% of our customers are students. That is a rise, as the last few years it has been around 30%. “So we know that around September time we can expect to see people who have left home to come to university for the first time wanting to have green hair. “We keep on top of the figures telling us exactly who is coming in because it is ever-changing.” Webb admits that, in common with many other salon operators, Voodou has not been immune to the negative economic environment. “Probably for the first time since I opened 35 years ago, we are not seeing year-on-year growth. “Clients have not stopped coming in but where in the past they might come in once every three weeks, now it might be once every four or five weeks. Thanks to Christine, we have a lot of breakdowns that we can analyse. “We have key performance indicators and we measure how many clients a stylist will see in one day and
what they do for each client. “For example, a stylist in the barber’s shop might do 12 clients in one day while a stylist with just female clients might do six. “However, we know that on average ladies spend more than men and come in more often so that can even itself out. “The next thing for us is online booking. We have been looking at it for a long time – we think it would particularly appeal to male clients.” Voodou also has a loyalty scheme. Those joining are known as “disciples” which starts off with a “getting to know you” promotion. Webb said: “The first time you come in you pay full price, the second time it is 25% off and the third time it is 50% off. “Then you become a disciple and enter our loyalty scheme and with your loyalty card every eighth haircut is free. We have other partners in the scheme – the restaurant Gusto, for example. “We now have a database of 30,000 people. But we don’t bombard them with emails. We send something out once every three months – they don’t get bombed.” Voodou has won a string of awards over the years, including a global award in 2006 that it held for two years. Webb’s instinct is to keep on expanding but he says Christine helps him to keep his focus. “The future is to carry on doing what we do best – we are in the business of making people feel great. “We have the capacity to expand within the existing salons. If it was left to me, I would open 10 more salons, but luckily Christine keeps my feet on the ground.”
■ TRADING Gossip: Page 16
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Wednesday, June 15, 2011
LDP business .co.uk Altrad Group acquires NSG UK THE French-based Altrad Group has acquired 100% of shares in NSG UK, the Deeside-headquartered scaffolding company, for an undisclosed sum. Mike Carr, NSG managing director, will remain in charge of the UK operation, which has 320 employees and an annual turnover of £20m. NSG UK offers scaffolding services, access solutions, thermal insulation, industrial cleaning and painting. The Altrad Group acquired NSG UK as it has identified the business as a platform to expand its services across the country. This acquisition forms part of a bigger plan to provide the UK market with services and products from Altrad, who specialise in the manufacturing and sales of scaffolding, cement mixers and wheelbarrows, together with providing additional services in the scaffolding sector. This will bring the total of Altrad companies up to 54, with the majority being located in Europe. Mr Carr said: “We are delighted with this acquisition and to become part of the Altrad Group. This will enhance NSG UK’s core service offering to clients across the UK in a variety of sectors such as social housing, oil and gas, rail, marine and nuclear. “We will be in a position to release further details of our future business plans in due course.”
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Carphone Warehouse set to ring up better profits by Neil Hodgson
LDP BUSINESS STAFF
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CARPHONE Warehouse has raised earnings predictions for its European arm in the current financial year, and reported strong progress at its US division. The group was formed after last year’s demerger from broadband operator Talk Talk and comprises a 50% share in US electricals retailer Best Buy, a 47.5% stake inVirgin Mobile France, and its own expanding UK Carphone Warehouse (CPW) stores division, Wireless World. Group earnings before interest and tax (Ebit) for the year to March 31 rose 67%, to £63.3m. On a pre-tax profit basis, it made £67.2m, compared with £218.4m, but this reflects the investment in rolling out its Best Buy UK and Europe chains, including a “Big Box” superstore in Aintree, and post-demerger costs. CPW Europe grew its Ebit revenues by 18%, to £134.6m, due to the increasing penetration of smartphones. It said its 106 Wireless World stores were also excited about the “everexpanding” range of tablet devices coming to the market, with forecasts for the size of this market increasing all the time. Best Buy Mobile US had an “outstanding year”, the group said. Despite the US boasting more than 280m mobile phone accounts, CPW said, surprisingly, the US consumer has lacked a decent retail offer of choice and impartiality. CPW has installed a Best Buy Mobile store-within-a-store in all of Best Buy’s 1,101 Big Box locations, which has resulted in clinching a 5% share of the mobile market compared with 1% when the venture began in 2006, and a 28% increase in connections of more than 7m. This increased Best Buy Europe’s
Aintree’s Best Buy Big Box, which combines mobile phone retail with a vast range of electrical goods share of profits by 111% to £97.9m. However, the group is evaluating the roll-out of its Best Buy Europe operation after losses rose from £21m previously, to £62m. Virgin Mobile France recorded an “extremely successful year”, turning
around a loss before interest and tax of £22.2m to an Ebit profit of £20.6m. Looking ahead, the group said it expects CPW Europe to make an Ebit profit of between £135m to £150m in the current financial year, depending on the Christmas trading period.
CPW chief executive Roger Taylor said: “This has been a year of considerable success for the group, during which our businesses have made impressive progress. “The group is well positioned to maintain this momentum.”
Legal firm expansion plan aims to meet needs of Mersey clients
Confidence is growing in NW
ONE of the North West’s fastest growing specialist commercial law firms, DTM Legal, has opened new offices in Merseyside. The expansion, which sees the firm open a new office in Century House, a landmark building in St Helens, bucks the economic trend and underlines the firm’s commitment to businesses in Cheshire and Merseyside. The new offices will enable DTM to better serve new and existing businesses in the region. Julie Mogan, partner at DTM Legal, said: “St Helens has a strong commercial heritage and presents a great opportun-
COMPANIES across the North West are reporting business and profit growth despite uncertain economic times, claims a report. According to a survey conducted by North West financial recruiter Howarth Morris, 64% of participants have recorded profit growth in recent months and more than 71% are confident of growth through 2011. The Howarth Morris How’s the Market report invited 30 finance and HR personnel in the North West to share detailed business information and also their opinions. The study revealed that a third of those surveyed were more confident on the state of the economy now than 12 months ago. Also, 68% believed there would either be an upturn in the region’s economic performance in 2011 or believed it would remain stable. Howarth Morris director, Sean Morris, said: “While confidence is most certainly returning, there are still challenges ahead.”
ity for us as a regional office. We have served clients in the area for a number of years and we are really excited about having a local base from which we can both support clients and continue to grow our own business.” Since the launch of DTM Legal in 2008, the firm managed to double its size in its first year, increasing the number of staff from 19 to 37 and won a Best Business Start Up award in 2009. The firm added: “DTM is itself run by entrepreneurs who have set up and run businesses in their own right. “This allows us to bring our own commerciality to the legal
advice that we provide.” DTM has worked with a large variety of companies, including Calder Industrial Materials and Corbett Sports. “We have had the need for legal advice and given instruction to DTM, on a whole range of issues in the normal course of our business,” said Martin Henderson, finance director of Calder. Michael Corbett, managing director of Corbett Sports, said “Corbetts were initially referred to DTM, with whom we developed a professional working relationship and found them to be thorough and timely in their work, which was completed within our deadlines.”
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New Home Bargains store to open in St John’s Centre LIVERPOOL-BASED budget retailer Home Bargains has spent £500,000 on a new store in the city’s St John’s shopping centre. The store, which opens on Saturday, will see the creation of 30 jobs. The discount retailer currently operates more than 30 other stores in Merseyside.
Despite the tough economic climate, Home Bargains is planning to open more than 50 new stores across the UK in the next 12 months. TJ Morris, which owns and operates the chain, has acquired 30 former Woolworths outlets, most of which are already open for trading. Joe Morris, operations dir-
ector at Home Bargains, said: “Home Bargains is excited to be opening this new store in Liverpool, building further on our success across the North West. “St John’s Centre will be a great location for us. “We’re thrilled to be in a position to offer local people even more top-branded goods
at exceptionally low prices,” he added. With more than 250 stores across the UK and over 2m customers per week, Home Bargains is one of the country’s most popular discount retailers, stocking many different brands and offering a large variety of goods. TJ Morris was established
over 30 years ago by Tom Morris, with its first store in Old Swan, Liverpool. The company’s outlets are located throughout the North, Midlands, Scotland and Northern Ireland. It employs approximately 7,000 staff and operates out of a huge distribution complex in north Liverpool.
Brokers back city store as ‘model’ of Tesco appeal by Neil Hodgson
LDP BUSINESS STAFF
neil.hodgson@liverpool.com
SUPERMARKET giant Tesco reported an improving trend in UK sales, but warned that high fuel costs continue to divert customer spending from the tills. The UK’s largest supermarket posted a 0.1% drop in same-store sales excluding fuel and VAT in the 13 weeks to May 28, up from a 0.7% fall in the previous quarter. Total UK sales including fuel and VAT were up 7%. Food sales performed well, with meat, fish and poultry recording good UK growth, but this was overshadowed by declines and weak demand in non-food areas, Tesco said. The company’s fast-growing Asian business continued to offset weak domestic demand, posting 3.2% like-for-like sales growth, driven by a strong show in Thailand. Total group sales, including fuel, were up 7.8%. Supermarkets and the wider retail sector in the UK have been hit by a squeeze on consumer spending as high inflation couples with muted wage growth, while the average cost of a litre of unleaded petrol rose to 137.21p in May. Tesco said that UK customers have to “direct some of their spending to petrol at the expense of their normal shopping” which remains a drag on underlying growth. However, the company said the UK business continues to grow faster than
the industry as a whole, as new stores help offset weak demand in general merchandise. Liverpool-born chief executive Philip Clarke, who took up the role in March this year from Sir Terry Leahy, said: “Uncertainties remain but, with early encouraging signs of better performance emerging in both the UK and the US, I am confident that this start will provide the platform for another year of growth.” One of the group’s newest stores is a Tesco Extra on Park Road, Toxteth, which opened last month, creating 300 jobs, and was the subject of a site visit by retail analysts from the Liverpool office of stockbroker Shore Capital. Liverpool director and head of research Clive Black said: “We have to say that, to our minds, Tesco has done a marvellous job in helping to revitalise and bolster the reputation of an at times troubled district with the opening of this store. “Of course, there will be negative commercial implications for some traders from the Tesco opening, that is the laws of the retail jungle, but this was also a neighbourhood with little immediate choice for shoppers, especially those without a car.” He added: “The store also shows life in Tesco, extolling its greatest trait of ‘broad appeal’, virtually everyone and anyone can shop and be largely satisfied at Tesco. “We assert that Tesco’s broad spectrum of shareholders should take heart from Toxteth.”
Mood of company heads improves BUSINESS confidence is improving across the region, according to the Institute of Chartered Accountants England and Wales. Its latest monitor shows a confidence index among company directors of 11.2, compared with 4.4 last quarter after dropping from 18.9 in the third quarter of 2010 due to fears over the impact of public sector cuts. The latest North West findings revealed an improvement in all
Martyn Best 14 financial performance indicators, and growth is expected to continue this year. Average numbers of employees are up 1.1% compared with a year ago, but job losses remain a concern. Average basic salaries have also increased by 1.5% over the year, although wage increases are still lagging behind the rate of inflation. Martyn Best, President of the Liverpool Society of Chartered Accountants, said: “This quarter’s monitor shows that growth and certainty are returning to the North West economy.”
LDP CREATIVE The new Tesco Extra store, in Park Road, Toxteth, which came under the scrutiny of analysts at the Liverpool office of Shore Capital
Meeting for Mersey landlords
QVC donation
THE Merseyside Property Landlord Support Group is holding a free meeting on Thursday, June 23, for all “accidental, amateur, and buy-to-let landlords”. Group head Richard Globe says the event, starting at 7pm
STAFF at the Knowsley-based site of TV shopping channel QVC raised more than £14,000 for the Merseyside Retired Greyhound Trust. The Trust was chosen by staff as one of their four charities for the year, after being inspired by the efforts of the team of volunteers dedicated to the rescue, welfare and re-homing of the greyhounds.
in the first floor function suite of the Queens Royal Hotel, in New Brighton, is of “vital importance”. It will cover a number of issues affecting residential property letting and the industry.
news
Further details can be obtained from Mr Globe, himself an experienced landlord with more than 40 years in the sector, by calling 0151 639 6253 up to 10pm Monday to Friday, or by emailing globe.richard22@gmail.com
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Business awards draw near IT IS still possible to be at the 2011 Liverpool Daily Post Regional Business Awards – but you must be quick. Nearly 500 business people from across Merseyside and Cheshire will be at the 20th annual awards, which are being held at Liverpool’s Anglican Cathedral next Thursday, June 23. There are 10 awards which will recognise the achieve-
ments in the last 12 months of businesses big and small, start-ups and long-established firms. The full shortlist can be read online at www.regionalbusiness awards.co.uk John Timpson, the chairman of shoe repair and key-cutting chain Timpson, will be the event’s keynote speaker, while the night will be compered by journalist-turned-celebrity
dancer John Sergeant. Mr Sergeant has previously worked as a politics reporter for the BBC and ITN, and famously withdrew from the 2008 Strictly Come Dancing after a storm of protests about his success in the competition. ■ TO BOOK places at this year’s event, please call 0151 472 2422. Single places cost £95 plus VAT. A table of ten is £950, plus VAT.
ADVERTORIAL
Exporting to aid recovery Awards could provide a much-needed fillip for applicants – Redrow founder and entrepreneur champion Steve Morgan
By Leigh Taylor
AREA DIREcTOR fOR LLOyDs TsB cOmmERcIAL In ThE nORTh WEsT
Evidence from a number of leading business organisations* points to overseas demand fuelling growth for firms that choose to export. Yet a survey commissioned by Lloyds TSB Commercial suggested that only a quarter (24 per cent) of British SMEs are involved in the export market. There is clearly an opportunity for the right firms but research is key to assessing how suited your company is for exporting to established or emerging markets. Those wishing to explore new territories should conduct extensive market analysis, make use of available guidance from bodies such as UKTI, and ensure they have the appropriate funding in place to support growth. Thorough planning is crucial and it’s important for firms to consider the wider impact of international expansion, such as additional pressure on resources and cash flow. While it’s important to take a cautious approach when entering new markets, it’s also vital that businesses don’t let perceived barriers stop them from exploring the potential opportunities that exist in other countries. A recent study estimated that as a manufacturing heartland, the North West contributed almost £25 billion to exports of just over £70 billion from the UK in 2010, a rise of six per cent on the previous year. UK Trade and Investment North West, which carried out the exporting research earlier this year, highlights that key sectors for growth in the region include advanced engineering, manufacturing, chemicals, materials and food and drink. Economically, now is a good time to consider exporting. Favourable exchange rates and growing markets in foreign economies offer an opening for UK firms with a unique and competitive product or service. Weak domestic demand is also encouraging more businesses to look abroad for growth opportunities. In Lloyds TSB’s last Business in Britain
Picture: PAUL HEAPS
Morgan on enterprise trail again by Neil Hodgson
LDP BUSINESS STAFF
neil.hodgson@liverpool.com
Thorough planning is crucial to exporting success report, over half (54 per cent) of North West companies questioned said weaker home markets pose the greatest threat to their business over the first six months of 2011. However, it’s worth remembering exporters are exposed to less risk if the country they enter has an investment protection and promotion agreement with the UK, whereas territories that suffer from political instability, a poor infrastructure and a high crime rate can be risky options. Whether it’s the convenience of a foreign currency account because you’re already exporting or a short term currency loan to help you get started, Lloyds TSB Commercial can offer access to locally-based international specialists who can
guide you and make overseas trading as simple as possible. For more information about how Lloyds TSB can help you explore new overseas markets, please contact your Relationship Manager or visit www. lloydstsbbusiness.com/exporting Lloyds TSB Commercial is a trading name of Lloyds TSB Bank plc and Lloyds TSB Scotland plc and serves customers with an annual turnover of up to £15M. Authorised and regulated by the Financial Services Authority. Lending is subject to status. * May 2011 CBI quarterly SME Trends Survey says 23 per cent of firms said export orders were up. The ONS says exports grew 11.7 per cent.
THE fifth Morgan Foundation Entrepreneur Awards will launch next week, with an extra category aimed at young entrepreneurs with a new business idea. Seven categories carry prize money worth £115,000 to winners and runners-up, including £5,000 for the new category. Winners also receive mentoring and professional services to help them develop their businesses. Other categories include awards for new businesses and for entrepreneurial charities and social enterprises. Awards founder, and Liverpool-born entrepreneur, Steve Morgan, said: “Unlike many others, these awards offer substantial cash prizes, so the winners and runners-up get more than just a pat on the back, they get a capital injection that can make a real difference to their businesses. “Previous winners and runners-up have said that winning has helped them in many ways: from a much-needed capital injection into their business to improving staff morale.”
He said that with Government cutbacks beginning to bite in the charitable and social enterprise sectors, the awards could prove to be a much-needed fillip for some applicants: “Such organisations need all the encouragement they can get.” The awards will be launched on June 22 and are free to enter. The closing date for online entries is September 2, and the winners and runners-up will be announced at the Carden Park Hotel on November 10. Mr Morgan, who founded Ewloe-based housebuilder Redrow in 1975, with a £5,000 loan from his father, was himself named “entrepreneur of the year” at the 2011 PROPS Awards in London. One of the property industry’s most prestigious events, now in its 20th year, the awards have raised almost £7m for the children’s charity, Variety Club. Neil Sinclair, co-founder and cochairman of the PROPS, said: “Steve Morgan was the unanimous choice of the judging panel. He is a true entrepreneur.” ■ FULL details about how to enter the Morgan Foundation awards are available at www.mf-awards.co.uk
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Shrewd businesses are beginning to see benefits of social media
Matt Johnson ONLINE search engines and social media sites have been influencing our communications tools for years,
while their impact in the economic field has been more of a slow burn. The direct impact which social media can have within a business is still largely unknown. While social media sites such as Facebook, Youtube and Twitter are firmly cemented as a means of sharing and communicating online, their reach has yet to gain a firm footing in a wider business context. However, with approximately 90m daily searches performed on Google, more 190m tweets sent per day, and over 500m active Facebook users, there is no doubt that these sites command a large and powerful user base.
With such an immense scope, the economic effect they could have is surely a vital tool for businesses in all sectors. And businesses from all sectors are beginning to recognise and harness that user power. The current quarterly bulletin from the Bank of England shows that they are using Google search trends to help form their view on the economy – theorising that what those 90m people are searching for provides a valuable indicator as to, for example, current trends in the jobs and hous-
ing markets. Elsewhere, a recent report shows a 6.6% cut in Coca-Cola’s advertising budget in favour of focusing more on their social media strategy. And social media platform BzzAgent has recently been acquired by retail giant Tesco. BzzAgent encourages its volunteers to review real products via their online accounts, generating buzz and so influencing buyer behaviour. The data that these bzzagents can provide, as to what consumers are looking for, is invaluable to retailers,
‘Business
owners must think about the audience’
and Tesco’s purchase will allow them to connect social media and product marketing in a way that will net them real results. As it is clear that social media is playing an increasing role in influencing what we purchase and how, with messages – positive or negative – able to spread across social networks like wildfire. As with any marketing strategy, business owners and marketers must think through who your audience is and what you are trying to influence them to do. ■ MATT JOHNSON is chief executive of Mando Group
Sweden bestows top honour on Rathbones man AN INVESTMENT manager at Rathbone Brothers, in Liverpool, has been awarded a knighthood by the Swedish government in recognition of his role as an Honorary Swedish Consul. James Hedley promotes Sweden on behalf of the Swedish Consulate in Liverpool. He was informed by King Carl XVI Gustaf that he would be bestowed as Knight 1st Class, the Royal Order of the Polar Star. The award to Mr Hedley was made at a special ceremony at the Rathbone headquarters in the Port of Liverpool Building. He was presented with the award by the Ambassador for Sweden, Her Excellency Nicola Clase. The event was attended by consuls and their representatives from North West consulates such as Denmark, Norway, Pakistan, Italy and Chile, plus friends, family and colleagues of Mr Hedley. While the Swedish embassy is located in London, there are 17 consulates located across the UK. The Liverpool Consulate covers the north west of England and North Wales.
The Ambassador for Sweden, Her Excellency Nicola Clase, with Rathbones’ James Hedley, at the ceremony
Fuel cell technology firm raises £6m for field trials by John Spofforth
LDP CORRESPONDENT business@liverpool.com
ACAL Energy has announced the completion of its current fund-raising round, having secured a total investment of £6.1m. The round was led by CT Investment Partners (CTIP) and included contributions from several new and existing investors. The funds will be used to develop the company’s first stationary power product, which will be field tested later this year at Slovay Interox’s site, and to accelerate the development of key
aspects of its technology for automotive applications. Fuel cells are a highly efficient and clean energy production technology capable of replacing combustion engines in a wide variety of applications. ACAL’s technology should make fuel cells more cost effective and reliable than ever before. Dr SB Cha, chief executive officer of ACAL Energy, said: “We are very grateful for the support given to ACAL Energy by our existing and new investors. “During arguably the most difficult fund-raising climate in recent history for start-up companies, we have
exceeded our fund raising target for this round, and in total have raised nearly £10m since December, 2008. “With this very strong level of support, our technology has moved rapidly from concept to demonstration and we will be entering into field demonstration later this year. “We remain very confident that fuel cells using ACAL Energy’s technology will become a significant part of the clean energy generation landscape.” The total investment amount includes £3.5m agreed last year. New investors I2BF, North West Fund for Energy and Environmental, and Parkwalk Advisors join existing investors
Carbon Trust Investments (CTIL), Solvay SA, Porton Capital, Sumitomo Corporation and a large Japanese car company. The investment amount also includes £1m from the Carbon Trust’s Polymer Fuel Cell Challenge, which selected ACAL Energy for investment as one of the most important new fuel cell technologies for automotive applications. Jonathan Bryers, partner at CT Investment Partners, said: “ACAL Energy’s ground-breaking technology represents a real opportunity to unlock the commercial potential of fuel cells.”
UK house prices fall 1.1% in April HOUSE prices dropped by 1.1% in April, as estate agents struggled to sell just one property a week, figures showed yesterday. The property market failed to benefit from its traditional spring bounce this year as the run of bank holiday weekends hit activity levels, while concerns about the economy and the ongoing problems in the mortgage market also affected demand. The Royal Institution of Chartered Surveyors said estate agents sold an average of just 14.7 properties in the three months to the end of May, the equivalent of only one sale a week and the lowest level since the start of the year. They also continued to report falling house prices, as potential buyers stayed away from the market, but more homes were put up for sale. The fragile state of the property market was further highlighted by figures from Communities and Local Government, showing house prices dropped by 1.1% during April. The latest slide left the average UK home costing £204,439, nearly £4,000 down on the start of the year and 0.3% less than 12 months earlier – the first time annual house price inflation has been negative since October, 2009. House prices were lower in nine of the UK’s 12 regions than they were a year ago, with Northern Ireland continuing to register the steepest falls at 15.2%, followed by the North East at 4% and West Midlands at 3.8%.
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LDP business .co.uk Bill Gleeson Park Group back in favour after troubled decade PARK Group appears to have had a bit of a return to favour with the stock market in recent months. The share price of Peter Johnson’s alternative investment market quoted company closed last night at 46.5p. That’s double the price it was this time last year, which surely is cheering up Mr Johnson no end. He is by far the biggest share owner in the company. It is a marked change in fortunes for the entrepreneur. Ten years ago, it appeared he could do nothing right. He owned Everton Football Club but was hated by the fans for selling Duncan Ferguson at the behest of the bank. His investment in bulky parcels firm Nightfreight was diminishing in value as City investors deserted it. Meanwhile, his other big investment, Park Group, was about to embark on its ill-fated foray into the flavoured potato chip market. Things got so bad, he was forced to return from tax exile in Jersey to take back control of the reins of the business, but still Park struggled to make a worthwhile profit for a number of years yet. Now, however, those bad days seem to be over. Park has seen a strong rise in its Christmas savings business and has clearly got over the ramifications of the collapse of Farepak. This improvement in fortunes should be no surprise. Peter Johnson is clearly a canny entrepreneur who built up Park from scratch in the first place. While it may have taken a few wrong turns along the way, its focus now on financial services like savings vouchers has put it on a steadier track than in the past. It may even be that the current economic climate has encouraged more people to save for Christmas using Park Group’s services. It shouldn’t be forgotten, however, that the principal reason wealthy entrepreneurs move to a
tax haven like Jersey is to save tax on the sale proceeds of their businesses. The various troubles of the past decade, though, got in the way of any hoped- for disposal, and Mr Johnson’s retirement plans. Perhaps the improvement in Park’s share price will induce the Birkenhead entrepreneur to try again for a sale. AS OUR story on Page 2 of today’s LDP Business reveals, the Port of Liverpool appears to be gaining ground on its rivals. The Peel Ports-owned operation has leapfrogged over Forth Ports to claim sixth spot in the Department of Transport’s latest quarterly ranking of Britain’s largest ports. It’s a close-run thing, but nevertheless the figures indicate an improvement in Liverpool’s share of UK maritime trade. It’s very hard to put a finger on the cause of Liverpool’s improvement, other than to say there has been a gradual increase in general trade levels. There is no obvious single explanation for it, other than the fact that Liverpool’s English hinterland is significantly larger than Forth’s natural market place in Scotland. Liverpool’s rise also seems to defy the ongoing economic troubles in recession-hit Ireland, one of its biggest trading partners. It is, of course, Peel’s stated intention that the Port of Liverpool should gain more market share and move up the rankings to third or fourth place over the next decade or two, creating thousands of new jobs in the process. It’s a big and laudable ambition that would serve both the company and the region well, if it were achieved. Clearly, the DoT’s figures suggest that a start has been made and things are moving in the right direction. Hopefully this rising trend will continue.
Views from th Our latest LDP Business debate focuses on Liverpool city centre’s retail sector. TONY McDONOUGH reports
LIVERPOOL One has transformed the city centre as a leisure and retail destination since it opened in 2008, but work needs to be done in other areas. That was one of a number of key issues raised by the panel during the latest LDP Business debate on the city’s retail sector, sponsored by Liverpool City Central Business Improvement District (BID). The debate was chaired by Daily Post business editor Bill Gleeson and on the panel were Chris Bliss, estates director at Liverpool One, Ged Gibbons, chief executive of BID, Cllr Malcolm Kennedy, the city council’s executive member for regeneration and transport, and Dick Mawdsley, owner of retail chain Utility. Mr Mawdsley’s stores sell up-market homewares and gifts from two locations in the city centre – Liverpool One and Bold Street. He agreed that the opening of Liverpool One had been transformational for the city, but said more work needed to be done to ensure other parts of the retail core did not suffer as a result. He said: “I am a retail surveyor by training and I am aware of the impact of a major city centre development. “We predicted that after Liverpool One opened there would be a fall-off in trade in Bold Street. “The centre of gravity has shifted and how people shop is different now. “We have probably lost 30% of our turnover at the Bold Street store since 2007. We knew that would happen. We went in to Liverpool One ourselves because we knew it was an opportunity we could not afford to pass up. “Bold Street is struggling to find an identity once again and is becoming a cafe location. It could be an up-market and independent retailer-based street – an opportunity is being missed. “The city council baffles me because they won’t take action against those who rip out Victorian fronts and put up signs they don’t have permission for.” Cllr Kennedy acknowledged that the city council could do more to help places like Bold Street. He said: “In the past, the planning department has taken too long. It has acted as a gatekeeper rather than an enabler. We have tried to address that and politicians need to stand up and say ‘we are going to do something’.” Ged Gibbons said Liverpool needed to better identify its strengths across the city centre and step up its marketing efforts. He added: “Liverpool has unique selling points – Bold Street does not just have character, it has characters. “Students carry on coming back to visit Bold Street long after they have left the city. We have got to get a bit cuter in terms of marketing our unique selling points.” Mr Gibbons said the £200m Central Village retail and leisure scheme which incorporated the former Lewis’s department store would provide a major boost for that part of the city centre. “Central Village is a huge opportunity. It is on the main corridor coming from south Liverpool. “Liverpool is one of the safest cities in
The debate panel, from left, Chris Bliss, Ged Gibbons, Bill Gleeson, Cllr Malcom the UK and it is about building on that.” The panel also discussed the situation at the up-market shopping mall, Metquarter, in Whitechapel. In the last few weeks, the Daily Post has reported that Metquarter has lost a number of high-profile retailers and that 11 of its 48 units were vacant. Chris Bliss insisted Metquarter remained in a strong position despite the loss of tenants, some of whom have gone to Liverpool One. He said: “Footfall is not the be-all and end-all for Metquarter. The conversion-to-spend there is very good. It is qualitative rather than quantitative.” He also pointed out that plans by US retailer Forever 21 to open a large outlet on the corner of Whitechapel and Church Street would provide a boost to Metquarter. “The new shop in Whitechapel will strengthen Metquarter’s offer enormously,” he added. Mr Gibbons agreed, saying: “Forever 21 will take out a very ugly element and totally regenerate it. We can create the right environment, but it is up to the
‘A need to be cuter when marketing our USPs’
retailers to offer the proposition.” The panel agreed that, despite the tough economic environment, Liverpool was continuing to see ever-greater numbers of visitors flocking to the city centre. Mr Gibbons said: “We have strategically-placed footfall cameras across the city centre – they are our most important performance indicator. “The first six months of 2010 saw an additional 500,000 people coming into the city centre. We have not just maintained our position but we have improved it. Of course, footfall does not necessarily lead to ringing tills. “With the introduction of Liverpool One and the Echo Arena and BT Convention Centre, Liverpool has added to its critical mass to such an extent that what has been added is bigger than a town centre.” Chris Bliss agreed, saying that people in Merseyside and Cheshire who for several years had been shopping in places like the Trafford Centre, were now returning to Liverpool. He said: “People have come back to their own city centre. There has been a major jump in tourism in the last couple of years. “We do need to market the city centre –
9
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the big feature
LIVERPOOL’S INVESTMENT SPECIALISTS
he shop floor
private business
Growhow enjoys partial recovery
Bold Street – part of the City Central BID area
BID levy helps to make city retail core ‘clean and green’
m Kennedy and Dick Mawdsley
Picture: GARETH JONES/ grj010611business-1
not just the retail but the whole offer. Saturday mornings can start slow but unlike in the past when people would come in, do their shopping and then go home, people now stay for the whole day. “It is a trip – a day out. However, there is still a huge chunk of people to win over.” Cllr Kennedy added that there was an opportunity to widen Liverpool’s catchment area to attract even more people into the city centre. “Marketing the city has to be a joint effort between the local authority and private business,” he said. “The previous director of regeneration at the city council said the people we need to attract are those in the Cheshire countryside. “Liverpool has been transformed into a city centre that anyone can shop in. People are coming in from elsewhere and the animation provided by BID is great because it means people are being entertained while they shop.” Mr Mawdsley also agreed that Liverpool was not only attracting greater numbers of people, but also a more diverse
range of shoppers and visitors. He added that this had had a measurable impact on his own trade. He said: “Traditionally, our customer base was the more affluent areas of Merseyside and now that spread is much wider. In particular, we are seeing more people coming in from North Wales.” The panel did talk about areas where there was room for improvement. Mr Mawdsley talked about how litter was still a major problem in the city centre, and Mr Bliss said more work needed to be done to improve standards of customer service. “Number one is improvement in customer service,” he said. “We need to invest in the training of staff from people working in the shops and in the street and managers. We all need to interact with each other. “That is why we launched Academy One. We want people to choose retail as a career – not just something they do because they can’t get another career.”
‘A major jump in tourism in the last two years’
● THE LDP Business retail debate is available from 12 noon today. Log onto www.ldpbusiness.co.uk
THE Liverpool City Central Business Improvement District (BID) covers Liverpool city centre’s core retail area, excluding Liverpool One. Areas covered are Queen Square, Elliot Street, Great Charlotte Street, Ranelagh Street, Church Street and Lord Street, the Cavern Quarter, Whitechapel and Bold Street. Around 650 businesses are included in the BID, and each pays a levy on top of their business rates to fund it. In return, BID provides enhanced services including extra street cleaners, “child safe” shopping zones, dedicated security officers patrolling the area and an annual programme of events. During the debate, BID chief executive Ged Gibbons explained how the initiative had been hugely beneficial to the city centre. He said: “Our business plan was very simple – create a clean, green, safe and animated environment. “I places like Bold Street, I think the BID has been transformational.
“We work with the police and a lot of what we do is invisible. People feel very safe in Liverpool now. “All the cleaning that takes place overnight on Fridays and Saturdays would not happen without the BID. “We have made sure the environment is clean.” Utility owner Dick Mawdsley, who operates two outlets in Bold Street, claims being a BID member costs him “a couple of thousand pounds a year per store” and says the regular cleaning is the main benefit. However, he identified a wider cultural issue in the city centre – litter. “That is a major bugbear and I don’t think we have cracked it yet,” he said. “There is a mind-set among some people that they can just dump their litter in the street. “I don’t know if this is just an issue for Liverpool – I think it is a matter of civic pride.” Traders in Liverpool One get similar services to that offered by the BID, and that is funded through the service charges paid to Grosvenor.
REVENUES at Cheshire-based Growhow UK Group enjoyed a sizeable bounce last year, but remained well below 2008 levels. The fertiliser and process chemicals manufacturer added £76.8m to its top line in 2010, recording a turnover of £392.5m, but still far below the near-£600m sales recorded a year earlier. It was a similar story for profitability. Despite doubling pre-tax profits, to £78.9m, it was still more than 40% below 2008. In accounts filed at Companies House, Growhow’s directors said they “are confident regarding the future outlook of the business”. They added: “The business forecasts show continuing strong profitability and healthy cash flows. The base case assumptions used include a continuing strong demand for fertilisers, and movements in gas prices being absorbed by increases in selling prices. “Various raw materials efficiency measures are projected from quarter two as a result of the implementation of a number of capital expenditure programmes targeted on energy efficiency.” Manufacturing has been taking place at Ince since 1965, where today Growhow employs around two-thirds of its 560 staff. The remainder are based at its manufacturing facility in Billingham, Cleveland. Growhow is jointly owned by CF Industries and Yara International. It is the latest incarnation of a tangled history. Yara was previously Kemira, which itself had bought UKF Fertilisers – an early brand for the Ince operation. CF Industries bought Terra Industries in April, 2010, after a proposed merger between Yara and Terra was set aside. ALEX TURNER
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LDP business .co.uk briefing Capita wins Zurich deal extension ZURICH Financial Services has extended its UK outsourcing arrangement with Capita by a further 11 years, and signed a new contract for its European division to run for 15 years. Capita will earn revenues of £570m over the length of the contracts, with 400 Zurich staff transferring to the outsource group.
Brewer toasts rise in sales KENT-BASED brewer Shepherd Neame has got a timely weather boost, with beer volumes in the 48 weeks to May 28 up by 3.6% Managed pub sales were also up by 7.7% and income per tenanted pub came in at 0.6% higher.
GSK buy-out GLAXOSMITHKLINE has agreed to buy out the outstanding 51% in its Chinese flu vaccine joint venture Shenzhen GSK-Neptunus Biologicals for a total cash consideration of £24m. GSK will become the sole owner if it gets Chinese regulatory approval.
Deal denial SWISS commodities giant Glencore played down recent market talk it may bid for either ENRC or Xstrata as the recently listed firm reported first quarter revenues rose by 39% to £27.1bn. Net income rose 47%, to £798bn.
BUSINESS to BUSINESS Business For Sales NORTH WEST base Hygiene Supply company for sale, suit 2 person team, specializing in care homes and schools, lots of potential, great opportunity. Call 07887 755882 for details.
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UK plc urged to emulate successful family model by Neil Hodgson
LDP BUSINESS STAFF
neil.hodgson@liverpool.com
THE successful “family formula” can be applied to the wider business spectrum, a national conference in Liverpool heard. The Institute for Family Businesses (IFB) staged its 10th annual conference, and its first in Liverpool, at the BT Convention Centre, and its theme of good stewardship was recommended by almost 200 leaders of UK family firms. Family-owned firms account for two-thirds of the total 4.5m private sector enterprises in the UK economy, and more than 40% of private sector employment, providing jobs to 9.5m people. Family businesses also generate more than 30% of UK GDP, with in excess of £1 trillion of turnover – the IFB’s 208 members alone generate £40bn in turnover. And the organisation, which boasts among its members local firms such as Bibby Group, Edward Billington & Son and Grosvenor – the developer behind the city’s £1bn Liverpool One retail scheme – believes the wider business world can learn from the values that maintain family businesses through generations of growth and success. It argues that the stability of a family business is in stark contrast to the “short-term investment horizons of the capital markets”. And it says family-run firms are often a breeding ground for entrepreneurial talent and start-ups, as well as encouraging gender diversity with more women in senior positions than non-family firms. The IFB also claims that family firms, before anyone had ever dreamed of the Big Society, are committed to social responsibility and philanthropy, often being rooted in their local areas for generations. A new report by the IFB and thinktank Tomorrow’s Company, focusing on family business stewardship and highlighting exemplars such as Grosvenor, was the focus of its annual conference last Thursday and Friday. IFB chairman Ross Warburton, a fifth-generation member of the Bolton bakery group, said in his opening address: “UK businesses have been through a challenging period in the past few years, but those businesses that have been properly led and managed are emerging stronger into the future. “Many of those are strong family businesses that have continued to build their capital, whether that be family, people or financial.” He went on: “The past few years has put certain models of ownership back in the spotlight – listen to Vince Cable and private equity ownership of care homes. “Perhaps it is time for the wider community to recognise that our model has much to commend it, especially when the principles of good stewardship are followed.” The IFB report states that among the characteristics of good stewardship are clear purpose, lasting values, a responsible approach to funding investment, and a commitment to long-lasting employee and stakeholder relationships, all supported by stable
Ross Warburton addresses delegates at the 10th IFB conference, held for the first time in Liverpool
Picture: PAUL HEAPS/ ph090611conference-8
RS Clare chairman Ian Meadows – backs the family business model Picture: GAVIN TRAFFORD/ gav130710cpssfreedom-1 leadership. The four principles of good stewardship, the report claims, are: setting the course; driving performance; sensing and shaping the landscape; and planting for the future. And, it highlights the stewardship of four different types of capital which a successful business needs to accumulate to develop and pass on through the generations. These comprise: ■ Family capital, which is an attachment to their business that goes beyond a financial relationship; ■ People capital, or the strength of knowledge, skills, behaviours, energy, loyalty and commitment which exist within the non-family members of a family business; ■ Financial capital, defined by
prudence combined with a sense of financial responsibility towards future generations which can be manifested in dividend restraint or ambitious investment timescales rarely envisaged by other forms of business; ■ Social capital – the trust and reciprocity invested in relationships that generate a deep and enduring link between the business and all those around it, to the mutual advantage of all concerned. The report says: “The values passed down through the generations shape the attitude of owners to their stewardship of the assets of the business. “This can have a viral effect on the people who work in the business.” It goes on to suggest that such a
culture can be extended to the point that employees, themselves, become stewards. The IFB report says: “This is reinforced in some family businesses by the policy of recruiting managers from within, on the basis that they have been socialised into the values. “In some instances, the term family business not only denotes a company owned and or managed by a family, but also one in which several generations of the same family serve as employees.” IFB director-general Grant Gordon said in his address to the conference: “There is clear evidence that employees rank family firms as better places to work overall. “The best family businesses are adept at creating a win-win environment for employees and owners, engaging everyone behind a shared sense of purpose.” Ian Meadows, head of Liverpool’s oldest family-owned manufacturing firm, RS Clare, supports the IFB’s views. He said: “I don’t believe in a family business being a honey pot for the family. “You have to be really objective. “It is a business and has to be run as such. “But, having said that, in creating a family business, there’s a great opportunity for more employees to feel that they are part of the family business.”
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Southern Cross landlords want to ‘share the pain’ THE landlords of care homes operator Southern Cross have thrown the stricken company a lifeline by saying they are prepared to make significant financial concessions to the company. But the Southern Cross Landlords’ Committee also said it wanted the Government and the company’s lenders to share the financial
pain in helping to rescue the company. The committee, which represents the 80 landlords of the group’s 752 care homes, announced it had put together an outline proposal that it hopes will help ensure the company’s survival. Darlington-based Southern Cross, the UK’s largest care home operator, with 31,000 eld-
erly residents, has been struggling under a £202m annual rent burden as its own income falls, with public sector customers making cutbacks. Some of its homes are in Merseyside and Cheshire. It recently announced it would cut its rent payments by an average of 30% over the next four months to buy it some breathing space.
It is understood that the proposals drawn up at a meeting of the landlords effectively say they would be prepared to take some kind of long-term rent cut on the condition that the Government and the banks “share the pain” by writing off some of the money they are owed by the company. Southern Cross’s main lenders are Barclays and tax-
Avis deal poised to seal Euro reunion
payer-backed Lloyds Banking Group, which are understood to be owed about £40m between them. The taxman is reported to be owed £20m by the company. The proposals will also allow landlords who want to take their care homes back from Southern Cross to run the homes themselves or find other users.
CAR hire giant Avis Budget is to buy its European counterpart in a £636m deal that reunites the two businesses after 25 years. The swoop for Avis Europe, which operates the Avis and Budget brands in the UK, as well as Europe, Africa and the Middle East, already has the support of Avis Europe’s major shareholder, Belgium-based motoring group D’Ieteren. Avis Europe separated from Avis in 1986 and tripled in value over the following three years before reverting to private ownership under D’Ieteren, General Motors and Avis. It floated on the London Stock Exchange for the second time in 1997, with D’Ieteren remaining a major shareholder. Avis Budget said the proposed deal reunited the global operation of the Avis and Budget brands, and increased the opportunities for targeting emerging markets such as India and China. Chairman and chief executive Ronald Nelson said: “This transaction represents an outstanding opportunity for Avis Budget, and the acquisition of a business that we have long sought to own.” In 1946, Warren Avis opened the world’s first airport car rental location in Detroit.
Inflation ‘still shortofitspeak’ by Philip Whiterow
LDP CORRESPONDENT business@liverpool.com
THE rising cost of essential household items was laid bare yesterday, after figures showed inflation remained at a 2½-year high last month. While the Consumer Prices Index (CPI) stayed at 4.5% in May – the highest level since October, 2008, according to the Office for National Statistics (ONS) – the figures contained big rises in food and alcohol, which were only offset by a sharp fall in air fares as the Easter effect unwound. A whole range of foodstuffs saw sharp price rises, with meat up by 5.1% over the past year, fish by 11.4%, bread and cereals up by 5.8%, mineral waters, juices and soft drinks by 10.3% and chocolate, confectionery and jams by 7.5%. Alcohol, tobacco and the cost of eating out and staying in a hotel rose at a record pace while petrol prices at the pump were also at record levels. Economists said that the picture was likely to get worse on inflation before it got better, adding that these figures largely represented a pause for breath before CPI starts to rise again towards 5% in the autumn. That is when a new round of energy price hikes is forecast to come in, to add to the pressure evident in food and drink. Scottish Power has already increased its gas tariffs by an average of 19% from August 1, with electricity going up by 10% on the same date, broadly in line with an earlier warning from Bank of England governor Sir Mervyn King that domestic energy prices could go up by between 10% and 15% this year. He also said that inflation would hit 5% by the autumn, but after yesterday’s CPI figures
there are predictions prices may be rising even faster by then. Jonathan Loynes, an economist at Capital Economics, expects further rises in food prices and hikes in gas and electricity bills “to take the headline inflation rate above 5%, and perhaps even above 5.5% by late summer”. However, he thinks inflation will fall back sharply next year as the impact of January’s rise in VAT to 20% falls away, meaning the Bank should hold its nerve by not raising interest rates. So far, the Bank has resisted pressure to curb inflation – keeping interest rates at a record low of 0.5% – as wages growth has remained subdued. In its latest quarterly bulletin, it reported few signs that inflation expectations have affected price or wage-setting behaviour. But Simon Hayes, of Barclays Capital, says if inflation does rise much beyond 5%, “the MPC’s (Bank of England’s Monetary Policy Committee) resolve will be tested again”. The figures also added to concerns that, as the cost of many essential items continued to soar, it was the poorest sections of the community that are bearing the brunt. A survey by the Institute of Fiscal Studies (IFS) found that pensioners and people on benefits had faced double the rate of inflation of those in work in recent years, because of the disproportionately higher amount of their income that was spent on energy and food. The IFS said the poorest fifth of households had seen the costs of goods and services rise by 4.3% per year between 2008 and 2010, compared to a 2.7% rise for the richest fifth. IFS research scientist Peter Lovell said, “Over the past few years, relative price changes have tended to hit poorer and older households harder.”
TUC warns of lengthy period of unemployment in the North THE UK’s employment rate might not return to pre-recession levels for another five years, and far longer in some parts of the country, the TUC warned today. The union organisation said employment rates in the north of England had fallen over the past year, despite a rise of 0.5% over the UK as a whole. The gap in employment levels between the best and worst performing regions had widened to almost 10%, with
75% of working age adults in work in the South East, compared with 65.5% in the North East. More than 400,000 new jobs had been created in the past year but these were not enough to bring the labour market back to its former health soon, said the TUC. The report, published ahead of the latest unemployment figures today, warned that the Government’s public spending cuts and falling consumer and business confid-
ence could lead to the jobs recovery going into reverse. TUC general secretary Brendan Barber said: “While recent employment figures have been better than expected, the UK labour market is still very fragile and a long way off the level of jobs we had before the recession. “New jobs are not being distributed evenly across the country, with employment conditions across northern England actually getting worse in the last 12 months.”
Alcohol prices have soared along with other products
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To book call Steam Packet Holidays on 01624 645777 WWW.STEAMPACKETHOLIDAYS.COM
Valid until 31st July 2011, terms and conditions apply. Prices are based on two adults sharing a twin/double room. Offers are subject to availability and cannot be combined with any other offer.
12
Wednesday, June 15, 2011
LDP business .co.uk
location
LIVERPOOL’S INVESTMENT SPECIALISTS
IN ASSOCIATION WITH
Freeing up commercial land for housing could boost regeneration
view point
by Nigel Ward, technical manager at Run Services
GOVERNMENT and local authorities are coming under increasing pressure to allow developers to build residential schemes on land allocated for employment use.
Kersh to boost appeal SUTTON Kersh will donate £50 for every property that is sold at its July 12 Liverpool property auction to Marie Curie Cancer Care, in support of the Blooming Great Tea Party campaign. The charity that provides care for terminally ill patients and their families in their homes and in hospices is running the national campaign between June 12 and July 12. Last year, Marie Curie ran a similar campaign and raised enough money to fund 30,200 hours of care with every £20 raised funding one hour of nursing care. Kersh director James Kersh said: “We are delighted to be able to support such a fantastic and worthwhile cause. “Sadly, these days, it is incredibly rare for anyone to not know someone that has had cancer, or that has someone close to them that is suffering.”
BUSINESS to BUSINESS Industrial Property UNITS TO LET Bootle Area 5,000−15,000 sqft. Flexible terms 0151 486 0004
A few years ago, local authorities mapped out areas of land dedicated to be an area of employment but, because of the recession, many areas of land throughout Merseyside have not been developed and this could be used for residential rather than commercial schemes. Housing development schemes are vital to the region’s recovery and by freeing up land destined for commercial use it could kick-start regeneration for areas that need it. Obviously, not all land allocated for commercial use would suit residential developments but there are certainly plots in the city and the outlying areas which would be per-
fect for housing schemes. While I do think this initiative could help start things moving in terms of economic regeneration, I also think that this alone will have little impact without the banks being more supportive both to businesses and to potential homebuyers. The current situation is that developers aren’t keen to take on big regeneration projects when there is no market out there. This stands for both the residential and commercial sectors. Demand from the commercial sec-
tors for new schemes is at an all-time low. There isn’t a host of new businesses coming through wanting premises, and established firms are more concerned with cutting costs than relocating to new office space. On the residential side, there is a social demand for properties. In 2010, new-build housing numbers fell by 13% on 2009 figures. This is the lowest number of homes, just 102,570, being completed since 1923, and at a time when the country is experiencing an acute shortage of new homes.
‘Until lending returns, market is limited’
Household formation projections indicate that 232,000 new homes need to be built every year to 2030 to meet demand. However, the simple matter is that people can’t get mortgages and can’t afford to get on the property ladder. Until the mortgage market returns to a reasonable level of lending again, we are left with a limited market. The Government is expected to review the potential changes to the planning system in the autumn, but, unless the banks start throwing their own weight behind the economy, freeing up lending, no initiative is going to have a huge impact.
LettingsboomasBirchwood championssmallertenants by Tony McDonough
LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com
MORE than 24,000 sq ft of space has been let at MEPC Birchwood Park, in Warrington, in the first five months of 2011, with small deals dominating. The secured 19 deals totalled 24,104 sq ft. Almost 8,000 sq ft was let to new tenants with existing occupiers accounting for the rest. New occupants included stationery distribution firm Antallis Printall, recruitment and financial consultancy FSR Group and insurance services outfit Nationwide Claims Solutions. All 10 new tenants agreed deals of 2,000 sq ft or less. MEPC says it is continuing to nurture this market, claiming a strong track record of facilitating on-site growth by initially smaller occupiers. Trade-ups by four existing tenants are included in the deals. Optimise Internet expanded from 184 to 495 sq ft premises in Thomson House, while Nuclear Technologies increased its presence at Chadwick House and Hydrosave UK and Skillray Transport Services UK also traded-up. The average deal size of 1,269 sq ft during the period reflects the trend highlighted in the latest Warrington Annual Property Review, which pointed to a preponderance of small deals. MEPC Birchwood Park’s head of leasing, Jonathan Black, said: “The park has for a long time encouraged occupation by new and small businesses, and our work with them to support on-site growth continues to be rewarded, as they expand. “Yes, like all the other business parks we welcome and target large enquiries, and will continue to pursue these with determination and success
Chadwick House, one of the properties located at MEPC Birchwood Park, in Warrington to grow the park. But we have developed our offer to allow us to play the long game as well, drawing in entrepreneurial businesses and helping them to flourish.
“As many businesses remain cautious in the face of continuing national economic uncertainty, delaying relocations until they believe they have reason to feel more bullish, we are
pleased that the smaller organisational sector, that we have for so long championed, continues to operate with optimism both in the park and across the Warrington area.”
Commercial Premises LARGE SHOP & OFFICES, FORECOURT PARKING Main Rd Maghull. Roller shutter security, well decorated, low rent. Suit accountants/ solicitor etc. Also shop offices and warehouse suitable for furniture sales etc. TEL 01695 423489
INDUSTRIAL UNITS To Let. South L’pool 500 to 4000 sqft, monthly tenancy, competitive rents. From £50pw Tel: 0151 427 5051
COMMERCIAL UNIT/WORKSHOP Rainhill to let £65pw, £750sq ft 0161 980 1912
First-quarter market activity has risen in UK, says DTZ LETTING activity in the UK industrial market increased 800,000 sq ft to 6.9m sq ft in the first quarter of 2011, according to DTZ Research’s Property Times UK Industrial report, which covers the market for
properties over 50,000 sq ft. Despite the increase in activity, overall take-up was down from the 7.3m sq ft seen in the first quarter of 2010. The report revealed that retailers and manufacturers
dominated the take-up of industrial space during the quarter, accounting for over 90% of all activity. The report also stated that the total availability of industrial space fell to 182m sq ft at
the end of the quarter while Grade A stock continued to fall, reflecting the continuing absence of new supply. Secondary grade space saw the largest reduction during the quarter, falling by around
6m sq ft, largely due to the lack of availability of Grade A buildings. The trend for consolidated distribution hubs witnessed in 2010 continued, especially in the North West.
13
Wednesday, June 15, 2011
LDP business .co.uk
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
Hi-tech firms sign up for space at Daresbury SIC A NUMBER of tenants have signed up for space at Daresbury Science and Innovation Campus (DSIC). Among the latest arrivals at the Cheshire facility are web-based software provider Terrabase, cloud computing solutions provider OCF, and Centum Electronics. Flintloque Management Systems, which supports medical device companies to secure international management system standards, has also located on campus alongside Tomorrow’s Medicines, the creator of a web platform providing access for patients to novel clinical trials and Hue Touch, which provides mobile architectures. Completing the line-up at the site is Natural Energy Resources, a provider of bespoke renewable energy technologies to smaller businesses, UbooGo Systems, a mobile commerce technology provider that aggregates small and medium-sized brands under one mobile application, and I-Group, which provides solutions to public and private sector organisations based on Microsoft Sharepoint technology.
From left: David Ashworth, of Flintloque; Mark Tinsley, of Centum; and Tony Harris, of Terrabase, at Daresbury
Eateries sign up at Central by Tony McDonough
LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com
ANOTHER two restaurant operators have signed up for space in Liverpool city centre's £200m Central Village scheme. Pan-Asian restaurant Cosmo and Handmade Burger Co are the latest operators to choose Central Village as the location for their first Liverpool outlets. Cosmo will occupy 14,000 sq ft on the upper plaza level in the refurbished Lewis's building, which will also see the unused upper floors brought back to life as 80,000 sq ft of offices and a 125-bed Adagio apartment-hotel. The restaurant combines live cooking-theatre with fresh produce, and will be the first of the chain’s already 13-strong restaurant portfolio to open in the north of England. Handmade Burger Co will occupy 3,272 sq ft in the Central Village Boardwalk building, which will overlook Newington Square. The 120-seat restaurant, which will include outdoor seating on the boardwalk, will be Handmade Burger Co’s 13th in the UK. Ian Jones, director at Merepark, the developer responsible for Central Village, said: “This is the latest in a string of operators to sign up to Central Village and shows the scheme as an attractive proposition, capable of bringing new restaurant and leisure brands into the city.” The deals follow recent lettings to Frankie & Benny’s and Chiquito, as well as Odeon, for its second cinema in the city. Central Village will extend the city’s retail and leisure core with three hotels, offices,
Ian Jones, director at Merepark – several operators are signing up for Central Village retail outlets, restaurants, bars, cafes, a public car park, residential buildings, six cinema screens and landscaped public space, including a boardwalk and water feature. When complete, the scheme will transform six acres of land behind Liverpool Central Station, Renshaw Street and Bold Street. Savills advised Merepark on Cosmo and CBRE advised on Handmade Burger Co, who were represented by Burley Browne.
location
Council CPO aids Langtree TAMESIDE Council has resolved to use its compulsory purchase powers to acquire land to support Merseyside-based Langtree’s plans for a retail-led, mixed-use scheme in Denton. The redevelopment, Denton Retail Park formerly known as Crown Point East, comprises 165,000 sq ft retail and commercial space. The scheme will create public open space and infrastructure, including a link road between Ashton Road and Edward Street. Langtree also intends to submit a planning application for a scheme comprising up to 67 family dwellings on an adjacent site. Stephen Barnes, development director at Langtree said: “We are delighted that Tameside Council has made the CPO.”
OFFICES S,M,L,XL OFFICES@DOWNING.COM
14
Wednesday, June 15, 2011
LDP business .co.uk Aerospace & Defence
31712 25138 Forgn & C
Index 3273.56 ▲ 35.41 10112 Avon Rbbr
31312
-412
36978 29434 BAE Systems 31518
+158
320
31114
+214
32334 21314 Hend SmlCos 31658
+78
37238 27314 Law Debnture 36778
+238
24434xd +258
18614 Scot Am
252 528
40978 Witan
50612
+2
73612 51958 Chemring
659
+4
24758
21418
+12
Fixed Line Telecoms
35778
+6
Index 2428.70 ▲ 48.50
612 xd
+11
15834
+114
19214
Cobham
38078 26134 Meggitt 535
665
Rolls-Royce
15912 11114 Senior
Automobiles & Parts Index 4945.01 ▲ 107.55 21112
23718 10914 GKN
+458
-12
92
4658 Cble&W Wwd 5012 xd
+12
7812
4312
25538 Barclays
87512
61012
Bco
7712
30814 26114 Morrison W
26412xd +414
Santander 69512
+1712
31714 Sainsbury
32634xd +14
44058
37712
40714xd
+18
112
6014 Thorntons
6012
+14
Tesco
-14
7634 1058 Ireland
1112
+12
Food Producers
Banking4812
+78
Index 5242.87 ▲ 7.75
5218 3758 Ryl Scotland
4112
+1
1959 1525 Stan Chart
1574
+21
Lloyds
Beverages Index 9665.60 ▼ 80.98 1395 1035 Barr (AG) 518
36412 Britvic
1349
-11
40634xd
-38
1301 1033 Diageo
1260
-11
2306 1827 SABMiller
2187
-18
1182 940
Croda
16934 5834 Elementis 2119 1460 Johnsn Mat
1916 158
Cranswick
76212
+212
42478 33934 Dairy Crest
39314
-38
3518
16
656
40918 Tate Lyle
+1
35714 22934 Balfour Beatty 31034xd +318 Costain
172812 103418 CRH
6434
34
22912
-212
128718 +2434
1418 88612 Kier Group Low Bonar
12412 7834 Marshalls
-12
645
-5
1945xd
+8
Forestry & Paper
36758 Mondi
609
+5
General Financial Index 5867.35 ▲ 93.99
CARPHONE WHSE
25418 3i
88812 664
27378
Close Bros
+514
778
+512
468
+634
57012
38014
ICAP
990
544
London Stk Ex 96812 +1912 +9
1033 72812 Provident
98312xd
1257 76212 Rathbone
1134
+2
1922 1154 Schroders
1586
+60
+13
6434
+34
General Industrials
114 xd
+34
Index 3124.19 ▲ 10.99
Health Care Equip & Serv
742
53712 Smith Nph
Index 8504.57 ▼ 61.74 47678
-338
44858 29578 Intl Power
31438xd +238
1410 1108 Scot&Sthrn
1374
-10
656
1258 478
Coral Prod
1114
638
Cosalt
314
314
400
29038 Rexam
226
116
Smith DS
1429 1043 Smiths Gp
Electronic & Electrical
38638
+114
21614
+118
1129
433
Domino Ptg
179
9834 Laird
65312
-10
136
+58
333
17912 Morgn Cru
30634xd +334
800
27014 Oxford Inst
800
+1812
377
152
335
+15
Volex Gp
14012 105
Br Assets
221
7738 53
Brown (N) Gp 272
+58
2812 1134 Dixons Retail 1734 34814 Halfords
414
23718
15634
-1
49214 37214 Edin Invst
48414
+214
66012 53012 Edin US TrkTst 61512
+12
1912 28712 1251 92 35714 3912 59812 1258
Low
2885 1724 Signet Jwlrs 523
39814 WH Smith
Price
312 AEA Technology 241 Albany Inv Tst AMEC
2012 Anglesey Mining 22934 Balfour Beatty 29 Beale 501 Compass Gp 478 Coral Prod
76 xd 312
Var 5Day
-314 -14
-614 -12
27512 1114 xd
+7
+5
3153 2037 Carnival
Compass Gp 59212
59812 501 479
32214 easyJet
12234
7334
+12
35514
+14
Enterprise Inns 75
41258 31114 FirstGroup
+114
329
1504 1042 Go-Ahead Gp 1492
+24
50212 39218 Greene King
+534
360
491
240
Holidaybreak 28114
1435 982
Intercontl Htls 1190
21278 Intl Cons Airlns 23234
285
15214 12234 Ladbrokes
149
11718 9038 Marston’s
101 xd
53118 500
Glencore Intl
500
-2338
+12
1671 965
Kazakhmys
1282
+47
1463
-13
1983 1355 Lonmin
Industrial Engineering
6655 4425 Randgold Res 4728
Index 7320.92 ▲ 97.31 39734 185
Bodycote
85312 567
Charter
36458
-538
75012
+12
39178 19214 Fenner
38778 +1514
1112 65712 IMI
1031
+20
11034
+112
4312 Molins
45
MS Intl
270
Renold
23
-412
3718
1907xd +10
2056 1024 Weir Gp
2056
+25
Industrial Transportation Index 2544.62 ▲ 16.09 BBA Aviation 20834
43214
+834
11638
+218
48914 Prudential
72012
+5
31618 21114 Resolution
30934
777
24434 173
+678
Standard Life 207
-314 +214
Media
762
UK Coal
835
1964 1271 Autonomy
1785
+19
6112 3012 Emblaze
6114
+14
36414 23014 Invensys
30534
123
101
14714 10134 Logica
132
302
28778xd +334
Inmarsat
Pearson
Low
98212 Dee Valley 32214 easyJet
1005
683 JD Sports Fashion
14212
1112
JJB Sports
31034 xd
+318
+418
578
378 Nichols
135
8912 NWF
47
2012 Park Gp 76212 Rathbone
Price
Nonlife Insurance Index 1668.88 ▲ 4.10 1754 1390 Admiral Grp
1717xd
187818 136438 Marsh McL
184814 +2334
14312
13638
11778
RSA Insurance
1366
30278 BP
509
AEA Tech
1935 1346 Aggreko
+1912 +3
Bunzl
22
+1 +112
-334 -1314
3714 914
API Gp
3238
13
4
Armour Gp
414
Cape
552
567
+10
158
1
Crimson Tide 138
1301
14212 1112 JJB Sports
819
578
80012 +1512
36
1534 Johnson Serv 35
291
23734 G4S
28314
-134
86
3034 Man Brnze
49
Index 25434.87 ▲ 403.46
452
28534 Hyder Cons
40358
+858
12
4
1012
14312
11778 RSA Insurance
+1
7938 67
-14
685
12014 13638 3214
4634
3512
3512
42
2514 Telme Gp
4112
5514
3234 UK Coal
4034
Smiths News 9134 xd
Ultima
99
510
-18
-1
Redhall Gp
Swallowfield
Var 5Day
-34 +58
+314 -1
55
-1
5914
+1
- 14 -114
-234 +1
+214
+234
1 12
+12
-1
47
+212
+234
2000
1688 Unilever
1945 xd
+8
-35
1134
+2
-59
63112
520 Utd Utils
606
+112
-2
410.00
0.40
444.40
0.10
INVESCO FUND MANAGERS Sing ASEAN
-
213.29
0.39
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: DAYS PUBLISHED UNIT TRUST MANAGERS A to Com ................................................... Tuesday F to Inv....................................................Wednesday JP to Pru...................................................Thursday Roy to T .........................................................Friday
FUNDS Low Funds
£90932
Price
Var
£761132 Cons 4% .................£7734 £50 Cons 212% ................ £54
£582732
99
Uniq
7512
-3 8
Conversions
Young A
65412xd
-1 4
£8134 £10878
£69 Cnv 312%.................£7212 £10058 Cnv 9% 11 ............£10058
-132
£50 Tr 212% ....................£5418
+218
Treasury
Country
Currency
Tourist
Buy
Sell
dollars
1.46
1.531
1.536
dollars
-
Consols
Australia Canada
0.70
-
High
Portmeirion P 495
801.50
North Amer Acc
+18
£ ABROAD
134
78
5914 1512 Scapa Gp
9578
1914 Speedy Hire
2
17312 55
142
34
Sportech
493 xd +312 32214
355
27812xd +212
Price
9712 Redrow
550
30834 21014 Prem Farnell
▲ 0.30%
Low
Metalrax
30734 +1934
-2
-
International
-1 4
22
+17
High
+112
Index 872.53 ▼ 0.05
Oil Equipment & Services
12012 79
+10 -8612
1.80
1493 99112 Tullow Oil
12134 8414 Rentokil
319.20 1.10
3.30
+58
+21
-306.92
544.10
286
+112
2.82
203.70
29478 20534 Electrocmps
1320
453.80
HILL SAMUEL UNIT TST MGRS
-
215512xd+1512
37478
-
-
56.60 4.50
-
2336 1554 Ryl D Shll B
31778 PZ Cussons
1034.20
- 54.17
Inc & Gwth
178
Index 21336.71 ▲ 275.21
European Smllr Cos A -
Far East
20014
+14
3.94
606
Utd Utils
8
Menzies J
130.80
63112 520
Eckoh
340
-
HENDERSON HORIZON FUND
-2
Dawson Intl
34634 15214 Northgate
Monthly Inc
3.30
224.80 3.07
1453
434
550
64.08
-224.80
1517 1216 Severn
112
Personal Goods
-
Gilt & Fixed
1.01
263.00 3.13
European
838
30734 18312 Interserve
104.80
-263.00
Capital
214
+7
-
Balanced
-1
-5
1114xd
HSBC INVESTMENT FUNDS (UK)
-12
+1312
Experian
171.32 4.32
665
54512 Pennon Gp
787
54912 De La Rue
-160.07 GUARDIAN
UK Equity Inc A
National Grid 594 xd
754
+634
Pratical Inv
Sterling Bd Unit Tst
979
41978
409
-512
1527xd +16
79912 63512 Capita
Cairn Energy
29234 Premier Oil
3.95
+78
Index 4626.31 ▲ 6.82
-1 4
765 xd
658
+14
AIM
783
1.08
206.89
Gilt & FI
675
-5
893.41
-
-5 8
+438
492
-
Income
British
+218
21114
1887 1361 Whitbread
Euro Sel Opps
+12
124712
51912 36014 Berendsen
0.01
-
63212 485
-38
728.30
-
126212 98212 Dee Valley
+37
-
258.53
-112
1911
Sth East Asia
-2004.85 2088.39
+478
312
0.10 0.01
-245.60
326 xd +134
182
Ashtead Gp
1365 73912 Burberry Gp
91312 xd
55912
1912 312
243
TUI Travel
Index 4633.45 ▲ 52.92
20778 77
44012xd
24934 16034 Stagecoach
47934 +1014
49314 366 535
139
-1
22234 Sage
+3
Var 5Day
+14
Kewill
+4
124712
35
+58
85
130.70 1955.00
Pacific Acc
34618 29234 Centrica
Support Services
+2
Oil & Gas Producers
+278
up 3.67
35514
+3
18234 13612 Vodafone Gp 16034xd +12
+112
1175
1175 864
59012 49014 Reed Elsevier 542
594
-
Property Bonds
Utilities
Index 3676.16 ▲ 12.77 575
444 xd +658 6814
27178 190
Mobile Telecoms
1251 80512 AMEC D Mail Tst
+238
Index 752.10 ▲ 10.31
Index 4261.67 ▲ 30.59 69312 BSkyB
32118
Software & Comp Servs
156412 1002 BG
12334 7558 Lgl & Gen
20512 13418 Thomas Cook 13614
+214
Index 8200.73 ▲ 73.37
47778 30534 Aviva
+212
4034
+114
Index 4410.96 ▲ 42.02
83712
5514
Jpan Spec Sits Spec Sits
+10
+138
15112
43634xd
+3812
3234
Mitchells&Btlrs 32612
Land Secs
4144
0.53
-14
Punch Taverns 73
Gt Portland
4712 288012 Rio Tinto
-78
2063 1346 Spirax Srco
-22
274
848
33114 25014 SEGRO
+2
221.70
+218
44214 281 545
-
+778
20814 Restaurant Gp 29834xd +212
Redrow
4.37
Japan
-
9434 Rank Gp
4314 2214 Taylor Wimpey 3658
1.73
199.50
-
335
-34
315.50
-
543.61
153
12014
-
Income Plus
1028.40
+27
9712
Gwth & Inc
-516.43
+312
589
0.32
-976.98
Brit Land
361
2919 2251 Daejan Hldgs 2812
583.00 1733.00
International Acc
60412 429
Fresnillo
-
Index-Linked Acc
+614
-1
+4
+2
Yield
Amer Spec Sits
+134
+30
-214
Antofagasta
Index 1958.11
Offer
Price Gross
GARTMORE FUND MANAGERS
2238xd -16
2310
+30
1257
Travel & Leisure
1377
+234
Price
American
Index 4618.63 ▲ 38.80
1682 950
1534 Johnson Serv
1114
-46
263112 168412 BHP Billiton
36
+112
-27
2010
136
-614
+12
266312
2231 1784 Imperial Tob
McBride
114
+134
59212
-134
Real Estate
Index 24528.06 ▲ 46.32
+14
+5
39
274512 2091 Br Am Tob
192
5934
37
Vernalis
31
Index 30298.98 ▼ 414.37
9038 58
+358
479
50
Mining
+39
Tobacco
-434
2620
High
3385
134812 1095 GlaxoSmthKln 1288xd
+134
35314 28718 Big Yellow Gp 320 xd
47478
126212
+1
16014 10758 Spirent Coms 15078
+42
DAILY POST REGIONAL INDEX 1218.59
43 Adv Medical
80512
2326 1868 Next
129 xd
746 xd +912
-1 8
1257
9312 4814 ITV
15734 10234 Dunedin Sml
Mothercare
UTV
84612 61412 WPP
312912
8958
1634 761
2240xd +21
62712 382
106
151
280112 AstraZeneca
2414
3437 2254 Anglo Amer
59412 433
42712 32714 M & S
Index 9364.26 ▲ 69.87
1934 BATM
10234 7134 Psion
72712xd +14
849
-514 +118
Pharma & Biotechnology
28
Bellway
40134xd +334
Candover Inv 563 DunedinIncGth 21912
-2 +14
Bid
Terms
+212
75312 511
36818xd +634
555
130 4212
57712
290212
27434xd +614
172
STV Group
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.
27012 ARM Hldgs
11058
28718 19812 Kingfisher
134 xd
Those securities which have increased in value since the previous close are shown in bold type.
Cancel Fund
FIDELITY INVESTMENT SERVS 651
Aga Rngmstr 11338
91312xd +10
777
High
+134
17434xd +814
3031.97 ▲ 0.54%
UNIT TRUSTS
Index 749.84 ▲ 3.08
Barratt Dev
JD Sports
1005 683
F
+28
74
Inchcape
37338xd +38 +1
+38
39134
T
+21
1941
70
38934xd
228
96
6918 xd +112
FT ALL-SHARE up 16.25
48334 Utd Business 54912
725
Life Insurance +14
Debenhams
W
2261 1223 Wolseley
1044
138
24034 175
2214
24412 16512 Home Retail
Index 6050.11 ▲ 19.62 29312 Alliance
31114
550
Equity Inv Instruments
385
2514 1214 Ashley L
T
3214
Travis & P
119
Index 1720.72 ▲ 30.33 705
+5
Index 6620.79 ▲ 28.42
+4
General Retailers
Index 3226.13 ▲ 19.95
65512
Household Goods
116 +612
66
168
12414 4214 Trinity Mirror
Index 3704.13 ▲ 22.98
27712 115 72412 36738 Cooksn Gp
M
Jun 14, 2011
Dec 14, 2010
139 340
Jun 06 - Jun 10
FTSE-Rebased
3648 3015 Reckitt Benck 3429
1306
Electricity
48814 35358 Drax Gp
Premier Foods 28
2000 1688 Unilever
-18
1993xd
May 30 - Jun 03
390
-3
90712 735
+2
Index 3865.52 ▲ 41.25
190
1065xd
84414 +1214
630
Construction & Materials
265
AB Foods
5875.40 ▼ 0.05%
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
420
330
Index 6559.76 ▲ 53.86
Index 7515.68 ▲ 15.52
May 23 - May 27
1914 Speedy Hire
1127 709
Tech Hardware & Equip
KEY
5700
360
84414 47712 Carrs Mill
Chemicals
1962 971
-58
5803.13 ▲ 0.51%
20 DAY MOVING AVERAGE down 2.89
5785
SPOTLIGHT
395
616 xd
4678
FTSE-100
450 Share price (pence)
29514xd
73078 59614 HSBC
7758
20-Day Moving Average
-12
Index 4755.51 ▼ 0.72
Index 4397.36 ▲ 32.19
FT-SE 100 INDEX up 29.67
6040 5955
34
Closing Indices
FTSE 100 INDEX
Food & Drug Retailers
Banks
344
+518
6138 3938 Cble&W Com 3938 xd
KCOM
Keep track of all the major share moves of the day with our live FTSE ticker at www.ldpbusiness.co.uk
5870
20038
20178 12614 BT Gp
LondonStockMarketatClose
1.52
1.586
1.588
£61 £11614
£10858 Tr 9% 12.................. £109
-116 -132
Denmark
krone
8.07
8.441
8.451
£107316 £103532 Tr 5% 12.............. £103532
European Union
euro
1.09
1.132
1.133
£121516 £1152532 Tr 8% 13................£11578
Japan
yen
125.53
131.810
131.910
£114332 £109532 Tr 5% 14.............. £111732
New Zealand
dollars
1.87
2.000
2.005
£1112332 £105732 Tr 734% 12-15........£10614
Norway
krone
8.47
8.838
8.839
Poland
zlotys
3.92
4.452
4.460
Sweden
krona
9.88
10.336
10.346
Switzerland
francs
1.31
1.384
1.385
Turkey
new lira
2.41
2.593
2.603
War
United States
dollars
1.57
1.638
1.639
£8334
-132
£3323132 £30414 Tr 212% IL 16 ...... £3323132
+38
17 .......... £1351516
-732
21................£14038
-1332
£6712 War Ln 312%............£7612
+3516
£142316
£1322132
£147132
£1332732
Tr
834%
Tr 8%
Last night, the pound was worth: $1.6387 (up 0.0079)......... 1.1323 euros (down 0.0019)......... 125.53 yen (up 1.20)......... Its trade weighted index was 79.40 (unchanged) Metals in $ per troy ounce: Gold 1526.25 (down 3).......................Silver 35.51 (down 1.87).......................Platinum 1815 (down 14) ...................... UK base lending rate 0.5%
15
Wednesday, June 15, 2011
LDP business .co.uk London market LONDON’S blue-chip index closed higher yesterday, as banks and retailers gained after a bright start on Wall Street. The FTSE 100 Index added 29.7 to 5803.1, having gathered momentum in the afternoon as it followed US markets upwards, with mining shares also benefiting from improved investor sentiment. The Dow Jones Industrial Average was up more than 1%, after US retail sales figures came in slightly better than expected and US producer prices eased. The pound dipped a touch against the euro to 1.13 on market talk that a solution to Greece’s debt problem might be found, after a number of politicians warned about the dangers of a default. Sterling rose against the US dollar. It was a poor day for commodities powerhouse Glencore, which sank to the bottom of the blue-chip index after it used its maiden results to dismiss reports of major takeover plans. The group’s chief executive, Ivan Glasenberg, told reporters the company was not “actively considering” a bid for mining group ENRC, sending shares down over 4% or 23.4p to 500p. Tesco perked up despite same-store sales declines, excluding VAT and fuel, of 0.1%, which was slightly below market expectations. The biggest FTSE 100 risers were ITV, up 2.85p to 68.2p, Schroders, ahead 60p at 1586p, Kazakhmys, up 47p at 1282p and International Consolidated Airlines, ahead 7.9p, at 232.7p. The biggest fallers were Glencore, down 23.4p at 500p, Xstrata, off 41p at 1,293p, Imperial Tobacco, down 46p at 2010p and ENRC, off 15p, at 761.5p.
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
market comment
Thetime mayberight forsovereign fundsto re-emerge
ALTHOUGH having existed for decades, sovereign wealth funds (SWF) only really came to prominence during the height of the credit crunch, following a series of high-profile investments in a collapsing financial sector. Total assets under management held by these funds was estimated to be $4.2 trillion at the end of 2010, but their profile as investors is much less substantial than their firepower. build up of global economic imbalThe majority of SWF assets – about ances between the developed and 60% – are managed by countries fundeveloping world. ded by commodity exports, such as the Secondly, there is clearly scope for UAE and Norway. China has the them to assist in stabilising capital largest accumulated assets under manmarkets at a time when agement between its numerous credit markets remain subfunds, totalling more than $1 dued and governments and trillion. central banks move towards Unsurprisingly, activity by tightening fiscal and monetfunds of this type fell sharply ary policy. during the depths of the credit Thirdly, as an investment crunch, as the rescue of partner, they are also attractdomestic economies took preive, given that they generally Email us with cedence over foreign investhave a longer-term investyour views at ment. letters@ ment horizon compared to a However, on the back of dailypost.co.uk, typical institutional investor recent strong growth in the or write to us and boast secure, debt-free PO Box 48, Old developing world and rising balance sheets. Hall Street, commodity prices, SWF activNevertheless, there is perLiverpool ity appears to be picking up haps a limit to the level of L69 3EB once again, with the IMF reliance that can be placed expecting total assets under on these funds to support finmanagement to more than double over ancial markets going forward. the next five years. The total assets held by SWF are For example, one of the biggest deals dwarfed by those of global pension and last year was the $2.2bn purchase of mutual funds combined, by a factor of Harrods by the Qatar Investment approximately 14 times. In addition, Authority. the majority of emerging economies Increasing financial market particwhich operate such institutions have ipation from these funds could bring expensive domestic challenges which several notable benefits. need to be addressed. Firstly, SWF can help to address the
What do you think?
Harrods was bought last year by the Qatar Investment Authority for $2.2bn – one of the biggest deals of the year For example, infrastructure spending and the development of social security systems is likely to prove a costly task in a number of these countries. Political instability and a reliance on volatile commodity exports also requires a large proportion of surplus funds to be held back for insurance purposes – for example, Saudi Arabia recently announced a spending programme of over $120bn in an attempt to contain social unrest. The re-emergence of SWF, particularly at a time when domestic policymakers are preparing to leave the
party, should be viewed as a positive development for financial markets, potentially helping to provide greater liquidity and stability to a broad range of asset markets. Although the total assets held by SWF are currently fairly small in relative terms, with the world’s centre of economic gravity continuing its shift towards the developing world, they should have plenty of investment ammunition in future years. Peter Tasou, Senior research analyst, Investec
For twice-daily FTSE updates from Investec, log on to www.ldpbusiness.co.uk
business diary Thursday, June 16 Entrepreneurs are invited to an event aimed at helping them learn new ways to grow their businesses. Mike Southon will give a keynote presentation offering advice and tips to business owners. It is at the BT Convention
Centre from 8.45am-11.30am. For details, see www.ph-creative.com/ liverpool-invite.aspx Thursday, June 16 Kirwans Solicitors’ Mums in Business networking event is at Hard Day’s Night Hotel, North John
Street, from 12pm-2pm. The speakers are Suzanne Bradshaw, from accountants McEwan Wallace, and Claire Currie, of Kirwans, who will be speaking on the theme “protecting your most prized possessions”. To book your free place, contact Lisa Alty on 0151 703 1918 or email lalty@kirwanssolicitors.co.uk. Friday, June 17
The monthly Daresbury Science and Innovation Campus Business breakfast network event brings together around 100 people working for hi-tech companies. The breakfast is at Daresbury Innovation Centre, starting from 8am. For more details, see www.daresbury sic.co.uk/events Friday, June 17
Liverpool Chamber of Commerce is holding a briefing with Louise Ellman, MP for Riverside and chairperson of the Transport Select Committee. The event will take place at Liverpool Chamber from 12:30-2pm. To book, visit www.liverpool chamber.org.uk or call 0151 227 1234. Thursday, June 23 A free breakfast sem-
inar, Routes to growth – how access to capital can drive your business forward, will be hosted by Hill Dickinson, Mazars, XCAP Securities and YFM Equity Partners in association with the London Stock Exchange. It is at Hill Dickinson’s Liverpool office, at No 1 St Paul’s Square, from 8am9.15am. To book a
place, email lauren.taylor@ 247comms.co.uk. Friday, June 24 The Northwest Traffic Commissioner, Beverley Bell, will be answering questions at the St Helens Transport Forum. It is from 10.30am-12pm, at St Helens Chamber. For more details, see www.sthelens chamber.com/events
16
Wednesday, June 15, 2011
LDP business .co.uk trading gossip ■
THIS week’s LDP Business profile subject, Voodou founder and managing director, Rob Webb, insists the choice of name for his business wasn’t an attempt to scare people. The Anfield-born businessman, below, acknowledges that Voodou is seen by most people as a dark and mysterious art with evil connotations. However, he insists that true followers of the Voodou religion are actually peace-loving, and that it is all about spirituality. Clearly Rob likes to be a little edgy, though, with the Bold Street salon featuring a large skull and crossbones up on the wall.
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
the back page
Caffeine kicks vital for restaurant operator
working day
Jaf Siddiqi is the operations director at Viva Brazil, the restaurant which opened in Castle Street last September. Jaf, 30, lives in Manchester. This is his working day:
6.30am: Time to get up. I have a shower, iron my shirt and check my emails before I head out the door.
Luckily, Trading Gossip isn’t that easily spooked. Despite his success in business and the fact he is clearly a very bright guy, Rob is very modest about his own academic achievements. In the section in the Profile which lists the subject’s highest educational qualification, Rob did enquire whether he could cite his school swimming certificate. We put our foot down and insisted he list his professional stylist qualification.
LDP CREATIVE FOR the latest news from the creative sector
www. ldpcreative. co.uk
7.30am: I get in the car and begin the 50-minute journey from my apartment in Manchester to Viva Brazil’s head office in Liverpool. I rarely listen to the radio on my way to work, as I like to use this time to organise my thoughts and prioritise for the day ahead. It’s the only time during the day where I am alone for more than 10 minutes. 8.30am: I grab my first double espresso macchiato – I drink up to eight of these a day – before heading to my office to go through all my morning emails, post and invoices. 9.45am: I check through Viva Brazil’s comment cards from the previous day. This is the best way to learn how the business is performing operationally. Great to see we have received another 26 cards, all with glowing feedback about the food, atmosphere and service. 10am: First meeting of the day with wine suppliers from London. This is our first peek at the complete collection of Brazilian Miolo wines, which are the latest addition to our wine list. This now boasts over 95 different wines, all individually selected by ourselves. I never considered myself to be much of a wine person before, but I have certainly developed a taste for fine wines and definitely have my preferences. 11.30am: Today we have an induction for our newest recruits in Liverpool. All our new starters have a company induction in their first two weeks of working for us. For me, this is a crucial part of their employment and I always relish the opportunity to let them know exactly who we are, what we stand for and what is expected of them. While the inductions usually last up to three hours, I always lead the first 40 minutes before handing over to Viva Brazil’s manageress, Sadie.
A key part of Jaf Siddiqi’s day is staff communication, from new recruits to his management team Picture: ANDREW TEEBAY
12.30pm: I grab a quick bite to eat in the restaurant, resisting the daily temptation to chomp through the 15 different meats, before meeting with John, our designer, to finalise the presentation of our new cocktail list which is being introduced. 2pm: Another meeting, this time with the management team at Viva Brazil. We discuss the business on the books, any staffing and operational issues, promotions and have a general catchup. I also take this time to give praise where due and discuss areas where we
need to improve. It is important to keep the team motivated and make sure they are happy and fully focused in their roles.
I like to take this time to talk to the staff on duty and provide and give them the opportunity to address me directly with any questions or issues they might have.
3.30pm: Time for another macchiato. I sit down to review the critical path for the opening of our Glasgow restaurant. It is crucial that we are organised and take every minor detail into account to ensure we deliver on schedule.
6pm: Back to the office to round up the day’s business. I also draft our newsletter and take time out to go through and update our social media pages on Facebook and Twitter.
5.30pm: I head to the restaurant floor and check everything is running smoothly prior to the evening’s business.
7.30pm: I get in to the car and start my journey home, this time with the radio on. And for dinner – I think I’ll stay off the steak until tomorrow.