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FTSE-100
5695.3 ▼ 80
JAPAN’S escalating nuclear crisis sent world stock markets tumbling yesterday as panicked investors headed for the exit. The FTSE 100 Index dropped 3% at one stage before recovering some early session losses to close 80 points lower at 5695.3. Shareholders fretted over the potential threat to economic recovery and to manufacturing supply chains. Meanwhile, on Wall Street, the Dow Jones Index closed down 137.74 points, or 1.1 %, at 11,855.42. The S&P fell 14.52 points to 1,281.87.
MARKET REPORT: PAGE 13
Port trade increases to hit five-year high EXCLUSIVE by Alex Turner LDP BUSINESS STAFF
alex.turner@liverpool.com
THE Port of Liverpool enjoyed its busiest quarter for five years as it continues to win market share. Figures published by the Department for Transport showed Liverpool handled 8.79m tonnes in the last three months of 2010 – 19% higher than a year earlier and the largest volume since the final quarter of 2005. The busy end to the year resulted in a marginal increase in the port’s annual figures, up 0.3% to 30.04m tonnes. Outward trade rose 11%, to 8.33m tonnes, but inward trade was down 3% to 21.71m.
However, a worldwide slump in shipping in 2009 had hit the Port of Liverpool, which recorded its first sub-30m tonnes total since 1999. The slight year-on-year growth ended four consecutive years of falling volumes – which follows the trend for UK ports as a whole. Although trade through Liverpool last year remained 7% below the levels achieved before the recession hit – and 11% below the 2005 peak of 33.8m tonnes – the port has increased its market share in each of the last three years. That was achieved despite being affected by several factors, including Shell’s planned shutdown of its Stanlow plant at the start of 2010 and a
drop in coal volumes during the summer. Liverpool handled 1.13m units last year, an increase of 10% and the second highest figure in a decade. Unitised trade creates activity as it is moved around the dock estate, although these units can be partially empty and so the rise isn’t necessarily reflected in the tonnage figures. Gary Hodgson, managing director of Port of Liverpool owner Peel Ports Mersey, said: “The underlying trends for the fourth quarter of 2010 are positive for the Port of Liverpool and this can be seen by our growth in market share for both our overall tonnage and our unitised traffic, both of which are at the highest for 10 years.
“Our performance in the fourth quarter of 2010 is part driven by seasonal, one-off cargoes and timing issues with the recovery of coal and oil volumes from earlier in the year. “However, even stripping these out the underlying performance is still showing a positive trend. “The new volumes coming through Liverpool are a testament to our continued strategy to add value to the supply chain through our service offering.” Liverpool maintained its position as the UK’s seventh busiest port in 2010. The UK’s nine major ports account for nearly 70% of UK port trade and saw a 1.3% increase in tonnage during the year – up 4.2m tonnes to 336m.
Alehouse venture backed by bank
inside
Growth plans for private banking team BARCLAYS WEALTH to double the size of its Liverpool team after seeing increasing client confidence. PAGE 2
Swede success CHESHIRE technology firm Arena Instrumentation is to open its first overseas base. PAGE 4
Raise a glass WIRRAL brewery wins investment to help it break into the national market. PAGE 5
Driving ahead LAND ROVER sales continue to drive recovery at Tata Motors Group. PAGE 6
Steve Slater from the Hub Alehouse in Liverpool, right, with Rob Grace from Royal Bank of Scotland
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
BUSINESS partners Mark Friend and Steve Slater have opened a new gastropub inside one of Liverpool’s most famous buildings after securing funding from the Royal Bank of Scotland (RBS). The duo, who already own three French Bistros in Liverpool city centre, have invested more than £250,000 to launch the Hub Alehouse & Kitchen inside the Casartelli Building in Hanover Street. The interior of the Grade-II listed building has been transformed into a light, open plan space which is capable of accommodating up to 160 customers. The Hub’s menu is inspired by traditional British pub fare, while the bar features several cask ales. The venture has led to the creation of 38 new jobs.
BUSINESS REPORTER: PETER ELSON 0151 472 2502
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New year joy for Liverpool hoteliers HOTELS across Liverpool enjoyed a happy new year, according to the latest sector figures. Although room rates fell 3.7% from £64.93 last January to £62.51 this year, room occupancy rose 10.7% to 59.4% which, overall, meant a rooms yield increase of 6.5% to £37.13. Chester enjoyed a similar improvement, with a 1.8% room rate decrease to £59.34 offset by an 18.1% jump in occupancy to 55.8% and a rooms yield of £33.11, a 16% increase on January 2010. Manchester saw declines in room rate, occupancy and rooms yield, according to the PKF Hotel Consultancy Services report. PKF partner Jane Jackson said: “January is often a slow month following the Christmas rush and occupancy figures usually run at a lower percentage rate.” But she said, despite the Government’s austerity drive and public sector cuts, events such as the Royal Wedding will provide a boost as visitors look to explore the rest of the UK.
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Barclays Wealth expands city private banking team by Neil Hodgson
LDP BUSINESS STAFF
neil.hodgson@liverpool.com
BARCLAYS plans to double its quota of private bankers in Liverpool to 10 over the next three years after seeing confidence among clients return. It had clients in Liverpool but until June 2008 had managed them from Manchester. But in June 2008 Barclays Wealth established a Liverpool office in Chapel Street, covering the Wirral and Liverpool up to the Scottish borders. Area manager Steve Thompson said the timing of its entry into the city was “interesting” as global economic markets went into meltdown. But he said they managed to tough it out, earning kudos with customers, and have seen client numbers double, with assets under management now exceeding £350m and growing. He said: “We opened two years ago and we have grown our client books significantly during that time and now the demand is there for us to hire.” The office headcount is currently 12, including five private bankers, and he added: “Our plans are to increase the number of client-facing bankers.” Expansion is also driven by a shift in client profiles. He revealed: “A lot of business we had was family, traditional money, passed through the generations. “But more and more we are doing things with entrepreneurs, sports and media people.” He said they also attracted clients by “being there” for them during the recession. “When the crisis hit we were visible to clients,” he added. “There were some who were hiding behind their desk, their language, not mine. So we got a lot of kudos from clients, particularly those who were dual-banked.” The recession focused the minds of his staff and he admitted: “We had six months that were all about protection of assets that were there.
Steve Thompson, area director private banking for Barclays Wealth in its Chapel Street Liverpool base “The vast majority of our clients have not lost money with us.” After interest rates tumbled to a historic new low he said clients were eager for alternatives. “Cash was earning so little we were able to come up with some clever ideas for clients, with various degrees of risk. “People were starting to come out after about nine months looking for something different than cash. People
are now more optimistic, to varying degrees.” Manufacturing is proving popular and last year clients developed a taste for government bonds, plus equities. “We are still in that position, but are now going a bit more overweight on equities, with bonds as an insurance. “If you take a longer-term view shares are interesting if mergers and acquisitions start to take off again.” His banking team look more at sec-
tors, or geographical angles, but the bank also gauges the emotional make-up of investors through its ‘financial personal assessment’. Mr Thompson explained: “The composure between two people could be quite different. If markets drop 30%, how quick would they be on the phone to us? “It has taught some people some things they didn’t know about themselves.”
Food testing firm on the move
Leader speaks
AN international food allergen firm has moved into The Heath Business and Technical Park. The six-strong team at Romer Labs UK, part of an Australian firm, has moved from Abergele, North Wales to
LIVERPOOL CITY COUNCIL leader Cllr Joe Anderson will be among the speakers at a Chinese trade event this month. Beyond Shanghai, at Liverpool’s Hilton Hotel on March 30, will explore business opportunities across China following the city’s six-month presence at the 2010 Shanghai World Expo.
Runcorn to continue its testing. Romer Labs UK chief operating officer Dr Jacqueline Coutts said: “We are incredibly busy and the company’s move to The Heath comes at the right time as our team of
six is about to grow to meet the demands. “Not only does it have the space we need for our expansion plans, it gives us the chance to be a part of The Heath’s innovative science community.”
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Entrepreneur’s eureka moment sets legal eagle soaring away Mark Ellis has undergone the transition from law to business
Alex Turner meets MARK ELLIS, chairman of Ellis Whittam in Chester ENTREPRENEURS invariably have to take a risk when they go it alone, to step outside of their comfort zone. But it isn’t often that their comfort zone is quite as comfortable as the one Mark Ellis left. In his mid-30s he was head of employment law and equity partner at North West commercial solicitors Aaron and Partners, earning what he described as “a really good income”. But it wasn’t what he wanted. “I wasn’t happy,” he said. “You have got to ask yourself ‘why are you doing it?’ It’s one life. I had to do something about it, I had to leave. It has been incredibly hard work. “The work and graft and blood, sweat and tears – you have to be passionate about it. “I gave up my equity partnership, re-mortgaged everything I had, and borrowed as much money as I could – and set up the business.” This wasn’t the first time he had made a difficult, unattractive career decision. The Calday Grammar pupil had graduated from Coventry with a law degree – despite “hating every moment of it” – but after just one week at Chester Law College, he was bored and quit. “I went to London, got on a post-graduate course, marketing, export marketing and French – I had the time of my life,” said Ellis. “It was fresh, real and business. “As part of the course we set up and ran our own market research company. “We had phenomenal success, we ended up making quite a lot of profit, which the college was quite embar-
rassed about, and we persuaded the college to pay us a dividend.” He started work at a marketing consultancy in Bath, spending two years putting together marketing plans for a range of firms, including a law firm. But, spurred on by seeing his contemporaries qualifying and doing well, he decided he wanted to have a qualification. He returned to Chester, “with a different mindset”, passed his law exams and began his career as a trainee solicitor – but did not suppress his entrepreneurial leanings. “When I was a trainee, I set up and ran a beauty product and treatment business, called O-lys,” he said. “I had met a guy who run a photography business and a girl who ran a beauty practice, who had what seemed to be a unique treatment using light therapy. “I would work there at lunch and after work, and at weekends I would go to beauty shows and man the stand. “It was a super experience. I ended up selling my shares when an investor bought the business. I don’t think there were many trainee soli-
q&a Age: 44 Lives: Farndon, Chester Highest educational qualification: Law degree and a postgraduate qualification in marketing Biggest achievement in business: Building the business, having the dream and then taking the risk and seeing it pay off Biggest regret: No regrets, everything that I haven’t enjoyed or has caused a problem has shaped me Best advice received: If you have got a dream, go for it
citors doing that at the time.” Ellis still had a “burning desire” to be an entrepreneur and continued to cast around for the right opportunity, the right idea, which saw him create a website selling unusual gifts. He said: “I thought that men are terrible at buying presents but women love getting them. This was in the middle of the dotcom revolution. I set up stuff4her.com – I built the site and sourced product. “The aim was to get funding and grow very quickly and provide unique gifts for men to give women, and to reverse the proposition as well. “But no sooner had I completed the website we had the crash so I did not press ahead with that idea.” He remained restless, frustrated by the slow pace of change in the legal sector and still on the lookout for his entrepreneurial break. Sat at the top of Beeston Castle, he had his eureka moment. “I thought ‘my business is law’. The key to success is not to necessarily come up with something brand new but simply to take something and do it much better. “I had seen businesses like Peninsula and Citation start targeting my clients in the law firm with their proposition of ‘let’s fix the fee and cover the risk’. Charging an hourly rate meant that no business could budget for my services. “The proposition seemed like a good one. The problem was that the current providers were not delivering a good quality service. “I decided to create a business support business that deals with regulatory compliance for business but crucially delivers quality, quality, quality. That’s how it started and how we differentiate ourselves.” Ellis Whittam – he used the surname of one of his first employees to
give the company the sound of a professional firm – began operating from a loft conversion in central Chester, before moving first to a larger loft conversion, then to its current home in the old Home Farm on the Grosvenor Estate in Aldford. The firm provides a range of employment law, HR, health and safety and related business support services, with Ellis describing the proposition as “certainty of cost and total support and peace of mind”. He added: “The regulatory compliance sector is probably one of the fastest-growing sectors in the UK. “There are many players in this marketplace now. We are not reinventing the wheel – but we are focusing on quality and our aim is to be the UK’s quality provider of fixed fee support services. “We have grown to a business which supports about 12,000 organisations with about 1,500 retained clients. “What we have seen over the last few years has been a flight to quality. People have been more concerned about getting a quality service that’s practical. They are looking for fair value, not necessarily the cheapest.” Ellis Whittam’s fast growth has seen it win business all over the country and its client portfolio includes Toni & Guy, Aston Martin and the businesses of TV Dragon Peter Jones. Its growth has been uninhibited by the recession which meant that by the end of 2009 the business had reached a crossroads. He said: “I sat down and thought ‘what do I do with this business?’. Although I am entrepreneurial, I’m a solicitor by training.” Ellis brought in Deven Thakrar, an experienced senior executive at businesses including Hays and RAC, and went through a strategic exercise.
The result was Mr Thakrar became chief executive to drive forward a strategy of exponential growth. “In the last year we have put a full operating board in place and we are thinking and planning like a business that is two or three times our size,” said Ellis. “We have invested this year in infrastructure, capital expenditure, IT, premises and people, so we have the base in place to take advantage of the market opportunities that exist.” He remains committed to the key tenets of his business idea – a quality service delivered by happy staff. “For me, right from the outset, the key was about creating a very happy work environment,” he said. “I had been inspired by Richard Branson’s autobiography – he said the most important asset you can have is the people who work for your business. I have never forgotten that. “If the people are genuinely happy and engaged, they will deliver inspirational service. If we do that, we will stand out in the market.” Keeping his 100-strong workforce content – in the last staff survey 93% said they were happy or very happy, a score which was only beaten by the number of clients who said they would recommend the firm to another business – is done through a range of measures, from pensions and healthcare to staff parties and providing quality coffee and a proper machine to make it with. But the camaraderie can have a downside, with Ellis still licking his wounds from being knocked out of the company’s table football competition. Perhaps he was distracted by the view out of the window in the activity room that lets you look across the Cheshire countryside. You see, it’s a different kind of comfort zone these days.
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LDP business .co.uk Run wins contracts worth £325,000 A LIVERPOOL regeneration firm has won two contracts worth a total of £325,000. Run Services will be carrying out external redevelopment to Campus House university accommodation in Bradford and building an extension to Yew Tree Primary School in Tameside. Managing director Anthony Woods said: “We have worked with a number of schools recently, and having another one in our portfolio represents a key growth area for us.” Run Services has started work on Campus House by refurbishing the outside of the building and adding a new roof, windows and doors. The work on Yew Tree Primary includes building an extension to the atrium.
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Airport makes light work of runway improvements
The upgraded approach lights recently installed at Liverpool John Lennon airport in a £600,000 investment
LIVERPOOL John Lennon Airport has recently delivered a £12m upgrade of passenger and security services. But the airport has also been investing behind the scenes to improve services for its airline customers and has just completed the £600,000 upgrade of approach lighting on Runway 27 at the eastern end of the airfield which is essential for the safe and efficient arrival of aircraft both during the day and the night. About 230 lights have been installed on 142 poles to replace those fitted some 20 years ago, during a five month project. The approach lights mean that appropriate aircraft can continue to land in weather conditions associated with poor visibility. Marcus Scrafton, head of development for Peel Airports, said: “The previous approach lights had just about reached the end of their life, so it was important that we replaced these landing aids. “We expect to see these new lights helping our airline customers land at Liverpool for the next 20 years.”
Arena expands into Sweden
To let
new build industrial units 6,775 – 12,091 sq ft Knowsley L33 7XN
by Tony McDonough
LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com
The Alchemy development is transforming bare land into one of the region’s shining commercial schemes. 93,107 sq ft have already been built with future phases to include design and build warehousing up to 300,000 sq ft together with a potential hotel and leisure related scheme. Units benefit from the following specifications - Contemporary design - Fully fitted first floor offices including carpeting, lighting and central heating
- Heating and lighting to warehouse - Planning for B1, B2 and B8 uses
www.langtreegroupplc.co.uk/alchemy
01925 273000 www.langtreegroupplc.co.uk
CHESHIRE technology management firm Arena Instrumentation is to open its first overseas base in Sweden. The Ellesmere Port business claims to be the UK’s largest independent calibration and maintenance service provider. The Swedish operation, to be based near Malmo, is due to be up and running by the end of the year. Arena has has identified the region as a promising source of new business opportunities as well as having a rich supply of potential staff among its highly-qualified population. Directors have confirmed the location is ideal for the company’s first outpost on the European mainland and have given the go-ahead for the first stage of an international expansion programme. “These are exciting times for Arena,” said managing director David Dawe. “We are convinced a presence in Sweden will present the company with some significant new opportunities for further growth. “Extensive market research tells us that there are a large number of Swedish businesses operating in sectors in which we have a wealth of experience, who could potentially become our clients. “Our expertise in calibration, laboratory equipment maintenance, technical support and asset management will be of interest to potential clients among the R&D, pharmaceutical and healthcare companies that operate in and around Malmo.
Arena managing director David Dawe “The plan is to establish a base, staff it with local resource including highly-qualified technicians and engineers and offer the comprehensive and cost-effective service that we have developed here in the UK over more than two decades.” The company has been taking advice from the UK Trade and Investment Northwest (UKTI) who have advised on Arena’s expansion plans, added Mr Dawe, whose £3.5m turnover business employs 65 full time staff in offices in Cheshire, Loughborough and Gloucester. UKTI Trade Advisor Mike Connor said: “We are really excited about working closely with Arena and are confident of success.”
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TR&DE initiative looks for international potential A PROGRAMME to help small hi-tech firms access global markets is being launched today. TR&DE – Targeting R&D for Export – is being supported by UK Trade & Investment with international markets providing key opportunities for new technologies. UKTI is working with Grant
Thornton and Enterprise Ventures to deliver a range of tailored support. That will include a commercial assessment of each company’s investment in research and development, help with formulating an action plan to secure new business and advice on issues such as financial requirements and how
to protect intellectual property. They will work alongside a UKTI international trade adviser to support the companies in developing and implementing an export action plan. David Booth, international trade adviser for UKTI North West, said: “We are looking
for North West companies that have invested in developing new products and services so that we can help them make the most of their commercial opportunities. “The TR&DE programme aims to fast track SME companies into making the most of their opportunities at home and overseas.”
The programme runs until March 2013 and is open to North West SMEs who are claiming, or are eligible to claim, HRMC R&D tax credits. Each participating company will receive up to 18 hours of specialist advice free of charge and access to £3000 matched funding to be used in the delivery of the agreed action plan.
Investment sets up sales drive at Peerless Brewery by Neil Hodgson
LDP BUSINESS STAFF
neil.hodgson@liverpool.com
FRESH investment in Birkenhead’s Peerless Brewing Company will deliver 40% more production capacity and allow it to break into the national wholesale market. The Pool Street business is also recruiting a sales manager to ensure profits flow from its expansion plans. Funding support from Wirral council and help from Barclays Bank and the Manufacturing Advisory Service (MAS) provided £25,000 of capital which has been invested in 220 new ale casks and cask washing equipment to support its sales push. Production is expected to increase to about 140 nine gallon casks each week and the 220 extra casks will allow the brewer to target clients further afield, as they will take longer to be returned. Alongside financial help, Wirral Council provided business support through its Invest Wirral team which worked closely with the company in helping to develop a business plan and growth strategy. The latest expansion follows other investments during 2010 in recruiting two new staff, including a trainee brewer, which was supported through Wirral council’s apprenticeship scheme. Peerless supplies national pub outlets across the North West and, since its launch in 2009, has seen turnover surge 30% ahead of its business plan. The award -inning brewer is preparing to expand its sales base after a recent brewing industry report revealed that cask ale is the only growing beer sector. Managing director and head brewer Steve Briscoe said: “Demand for Peer-
Mark Sutherberry left of MAS, inspects new casks with head brewer Steve Briscoe and brewer Mark Powell less beers continues to grow, both in our Wirral heartland and across the region. “For instance, our premium strength Full Whack ale is now a regular beer in a very busy central
Manchester Wetherspoon’s pub.” Two new ales, Viking Gold and Paxton’s Peculiar, will join the brewer’s growing menu of real ales and Mr Briscoe added: “The new brands will help us to develop further and benefit
Debenhams upbeat as sales rise DEPARTMENT store chain Debenhams overcame a challenging winter for retailers as it revealed a “pleasing” performance for half-year sales. The group, which has 167 stores in the UK, Ireland and Denmark, expects to meet the City’s profit forecasts for the six months to February 26. Debenhams’ shares jumped as analysts said the group’s strategy of boosting margins
by sourcing more of its own designer brands continued to pay off in a market impacted by weather disruption and weak consumer confidence. Matthew McEachran, a retail analyst at Singer Capital Markets, said: “Trading in the final seven weeks of the half-year was significantly better than others in the sector and gross margins continue to track up.”
Debenhams, which operates a flagship store at Liverpool One, recently launched a nationwide campaign advertising its ranges of clothes and accessories from designers including Jasper Conran, Jonathan Saunders and Jonathan Kelsey. Like-for-like sales in the six months to February 26 were down 1.5%, a slight deterioration on January’s figures.
from our investment. “We are delighted that Invest Wirral could assist us in our push to grow and that, in the economic current climate, Barclays Bank has also been very positive about our plans.”
Budget plea A SMALL business support group has called for radical tax simplification in next week’s Budget. The Forum of Private Business is urging Chancellor George Osborne to enact small business- friendly tax policies submitted by the Office of Tax Simplification (OTS) last week. Chief among them is a proposal to merge income tax and National Insurance for employees of small- to medium-sized firms. Measures to heavily streamline the taxation of sole traders, partnerships and the self-employed are also suggested.
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private business Calder engineers steady growth CALDER GROUP remains focused on growth despite a mixed year which hit its profitability. The engineering group, which has its headquarters in Chester, saw sales rise 6.6% to £136.8m in the year to May, 2010, although its pre-tax profits fell by one-quarter to £4.8m. Calder has three areas of business: lead sheet – used in roofing – lead engineering and precision engineering. It has lead sheet manufacturing and distribution operations in UK, Germany, France, Netherlands and Ireland and the division saw an increase in turnover during the year. However this was due to rising lead prices on the London Metal Exchange and Calder said “underlying activity levels remained weak”. Its lead engineering division fared better, as “demand remained resilient” throughout the year, aided by the stability provided by its broad base of engineering activities. That is contrasted with precision engineering, which struggled during the year because of reduced demand and the effects of de-stocking by its customers – although Calder pointed to a budget-beating improvement since the year end. Accounts just filed at Companies House for the group’s parent company – Calder Finco UK – showed UK sales fell by £4.2m and now account for 35% of the group’s trade. Revenues from the rest of Europe rose significantly to £86.9m and now accounts for 63% of the group’s turnover – an increase of five percentage points. The group has been trimming costs, with a fall in the number of production staff reducing its wage bill by 9% to £19.6m while its stocks at the year end were reduced by 8%, to £13.6m.
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Follow in the footsteps of region’s finest successes by Alex Turner
LDP BUSINESS STAFF
alex.turner@liverpool.com
THE 2011 Regional Business Awards were launched last week and this week we focus on two of the most coveted awards of the night. The KPMG Business of the Year and DLA Piper Business Person of the Year awards highlight the very best that business in our region has to offer – the most innovative, the most dynamic, and, ultimately, the most successful. Last year, Stobart Ports managing director and Widnes Vikings chairman Steve O’Connor joined the Duke of Westminster, Sir Michael Bibby and John Whittaker as a recipient of the individual award. Philip Rooney, office managing partner of DLA Piper's Liverpool office, said: “Steering successful businesses in the turbulent economic times in which we live takes courage, business acumen and huge commitment. “Fortunately, the region has produced over many years a wealth of innovative leaders able to go the extra mile and ensure that their businesses succeed – creating employment, attracting investment and boosting the regional economy. “More importantly, the leadership qualities showcased by these awards set a great example for the entrepreneurs and leaders of the future. “The DLA Piper Business Person of the Year Award recognises the positive influence, commitment and inspirational leadership not only of the winner but also of every business leader who, through their flair and drive to succeed ensures that our region continues to prosper.” The KPMG Business of the Year award is for the region’s outstanding large business, employing more than 250 people. Ian Goalen, senior partner at KPMG Liverpool, said: “With the region’s public sector in the midst of unprecedented cuts, the spotlight has now turned onto the private sector to see how it can help bridge the gap created by the reduction in government spending. “The KPMG Business of the Year award specifically seeks to celebrate those businesses across the region which are stepping up to the plate in
Logistics and rugby boss Steve O’Connor was the 2010 DLA Piper Business Person of the Year generating new opportunities for employment and wealth creation. “In particular, we’re looking for demonstration of a strong financial performance and all-round excellence in innovation, leadership and a clear involvement within the Merseyside community. “We know from looking at previous winners of this category – from the likes of TJ Morris and Cammell Laird to Princes Foods and Royal Liver – that Merseyside has the ability to produce businesses that will help get us back on the path of sustainable economic development.”
How to enter 2011 Awards THE awards are open to any business operating in the Daily Post circulation area of Merseyside, West Lancashire and North West Cheshire. This year the awards ceremony is being held on
Thursday, June 23, at Liverpool’s Anglican Cathedral, and entries are now open for businesses. The closing date for entries is Wednesday, April 13. To enter one or more of our award
categories, please get in touch with the Daily Post’s events department for an application form by telephoning 0151 472 2570 or download an application form online at www.regionalbusiness awards.co.uk
Steakhouse to create 20 jobs
Wirral training provider sees growth in e-learning demand
LIVERPOOL is getting its first Miller & Carter restaurant in April, creating around 20 jobs. The new steakhouse at the lbert Dock is due to open on Friday, April 8, creating a number of positions for bar, waiting and kitchen staff. Miller & Carter’s marketing manager, Tessa Crow, said: “We are delighted to have secured such a fantastic site for our new Miller & Carter steakhouse at Albert Dock. “The area has great potential and we’re confident that Miller & Carter’s unique offering of premium steaks will prove very popular here. Our new steakhouse has a stylish yet informal setting.”
THE e-learning arm of Wirral training firm CPL Training has taken on four creative recruits to facilitate a growing demand for the company’s on-line services. Launched less than a year ago, the division now has a team of 15 permanent IT, programming and creative specialists who together deliver bespoke on-line training packages for cross sector
businesses throughout the UK. The new recruits include two graphic designers, one animator, and a narrator to focus on developing courses and branding the company. The e-learning concept has grown rapidly for CPL Training and is already a mainstay of the wider business operation. It utilises 3D animation
and graphics to create an “engaging” way to learn on-line. Dave Dasher, head of CPL’s e-learning, said: “It’s great to see our young team growing and evolving. “Our designers, animators and programmers are an exciting and creative bunch who are constantly bringing new ideas and innovations to the table.”
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JJB wins support of major backers AILING retailer JJB Sports yesterday said it had secured key support from its bank and major shareholders as it battles to stave off administration. The loss-making retailer said investors including the Bill and Melinda Gates Foundation had agreed to back its latest £65m fundraising, while Bank of Scotland is also prepared to extend £25m in working capital. However, the support is conditional on a key vote next week when JJB will ask landlords and shareholders to back controversial proposals to close up to 89 unprofitable stores over the next two years and alter rental payments. JJB, which has disclosed further sales declines in 2011, has unveiled a new business plan that it hopes will convince creditors and investors to back its plans to build a long-term future. The turnaround plan involves cutting costs and increasing sales through investing in staff training, upgrading some of its 160 viable stores and improving its ranges. It has devised plans for three types of stores, tailored to suit their locations and will stock more exclusive ranges such as Slazenger Golf and Run 365. JJB also revealed a 13.5% like-for-like sales decline between January 24 and March 13, although it said the figures were in line with internal expectations.
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Big brands are tripping over themselves to support Comic Relief
Matt Johnson WE’RE 48 hours away from a day of mayhem and madness. A day when some are hell bent on lying in a bath of baked beans and others devise
even wackier ways of doing something silly in the name of charity. Friday is Comic Relief Day 2011. Dig deep – it is a good cause. And, year by year, it is also a good measure or indication of the strength and skill housed in UK plc’s creative sector. It seems that whatever the prevailing economic conditions, Comic Relief Day, like its annual stable mate Children In Need, manages to raise impressive amounts of money for those less fortunate than the many who participate and contribute. Thanks in no small part to its strong links with the BBC, Children
In Need has probably been less able to align itself – publicly at least – with global brand sponsors or supporters. That’s a constraint the Comic Relief team do not have to worry about. Instead, they have succeeded in signing up some of the biggest brands in business to endorse their efforts. The list this year is like a business supplement in a Sunday newspaper. Supermarket giant Sainsbury is in the thick of it once again. Just you try avoiding a Red Nose Day
reminder at any of their stores this week. And it’s not just the retailer doing its sizeable bit. Many of the goods on its shelves are linked firmly and fondly to efforts for Comic Relief. Walkers Crisps are in the mix along with Mars, Proctor and Gamble and Café Direct. Some big brands with a big conscience. Away from these consumer staples, there are many other big names tripping over themselves to show their corporate social responsibility credentials.
‘Many of the goods on the shelves are linked’
British Airways, BT, Ernst & Young, Kia, publishers Penguin, stationers Ryman to name but a few. As lists of corporate supporters go it’s an impressive and strong line-up. Credit to the Comic Relief team for keeping so many of these supporters on board. As each year passes of course it probably becomes harder for them to walk away. That comes with the territory when you agree to work with charities large or small, especially when they are so successful at aligning big brands to their cause. ■ Matt Johnson is chief executive of Mando Group
Bibby Financial Services helps joiners build a future A DEESIDE small business is £2,000 better off thanks to Liverpool-based Bibby Financial Services. Spartan Joinery, set up last year by Daniel Lewis and Lee Blundell, won the specialist invoice financier’s construction finance competition draw. Mr Lewis said: “I was over the moon when I received the call to tell me we’d won, it’s the best news we could have at a time of the year when everyone’s feeling a bit down, so we’re all very excited.” He added: “As a growing business the money will allow us to buy new tools for more specialist jobs which will improve our efficiency as a joinery.” Bibby’s competition is aimed at supporting small construction firms like Spartan and Jason Heath, construction specialist at Bibby Financial Services, said: “Spartan Joinery is certainly a worthy winner of this money which will help them in achieving the company’s business goals. “We hope this funding will support Spartan Joinery in building solid foundations in 2011.”
Daniel Lewis, right, who set up Spartan Joinery with his partner Lee Blundell
Halewood plant helping to drive Land Rover sales by Neil Hodgson
LDP BUSINESS STAFF
neil.hodgson@liverpool.com
LAND ROVER vehicle sales continue to drive recovery at the luxury car marque. The latest monthly and cumulative annual sales figures released by Tata Motors Group, the Indian owner of Jaguar Land Rover (JLR), revealed steady progress at the manufacturer which currently builds the successful Freelander 2 4x4 model at Knowsley’s Halewood plant and is gearing up for the July launch of the new Range
Rover Evoque, which has led to the recruitment of 1,500 new workers for the plant. Tata revealed that global sales for JLR last month were 21,653 vehicles, which was a 26% improvement on the same month last year. When broken down by brand, Jaguar sales for the month were 3,213 vehicles, a 2% fall compared with February 2010. However, Land Rover sales were 18,440, higher by 33%. Cumulative sales of both Jaguar and Land Rover marques for the fiscal year are 217,472, which is 28% better in
comparison with the previous period. Cumulative sales for Jaguar are 49,221, a 15% improvement, while cumulative sales of Land Rover are 168,251, which is 32% ahead of the previous year. Global motor sales for Tata Motors Group, including Jaguar Land Rover, were 102,411 vehicles in February 2011, a growth of 14% over February 2010. Cumulative sales for the period from April 2010 to February 2011 were 970,129, higher by 26% compared to the corresponding period in 2009-10. Tata bought JLR from US car maker Ford in 2008 for £1.15bn.
It is India’s largest automobile company and through subsidiaries and associate companies has operations in the UK, South Korea, Thailand and Spain. Apart from its JLR business it also has an industrial joint venture with Fiat in India. With more than 5.9m Tata vehicles in India it is the country’s market leader in commercial vehicles and among the top three in passenger vehicles. It is also the world’s fourth largest truck manufacturer and the second largest bus manufacturer.
Cheshire tourism strategy ‘sensible’ VISIT Chester and Cheshire (VCC) chairman Edward Pysden has described the creation of Marketing Cheshire as a “sensible and effective solution in the current funding landscape”. From next month the new body will be responsible for place marketing and promotion, as well as traditional visitor economy support. Marketing Cheshire will be the overall corporate brand, while Visit Cheshire and Visit Chester will be retained as consumer-facing brands. Two new brands – Invest in Cheshire and Live in Cheshire – will also be launched. Mr Pysden said: “Place marketing, tourism and promotion are intrinsically linked. Through the new organisation, we can take a much more focused and integrated approach.” Marketing Cheshire will be predominantly funded by private sector support from members and commercial partners. It will also receive some public sector funding from the three local authorities, Cheshire West and Chester, Cheshire East and Warrington. Chris Brown, chief executive of VCC, highlighted similar benefits in bringing together areas of expertise. “We will still retain our tourism focus, but will become more of a conduit for the broader place marketing of the sub-region,” he explained. “There’s an opportunity to iron out some duplications that had existed previously.”
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Wednesday, March 16, 2011
LDP business .co.uk Bill Gleeson A perilous choice: nuclear disaster or climate change IN TIMES of disaster, big numbers are bandied about quite liberally. Initial estimates of the death toll following the Indonesian tsunami were in the hundreds. A few days later, the figure rose to a few thousand, then tens of thousands, before eventually tallying six figures. And so it has been with last week’s triple whammy of disasters in Japan. As more bodies have been washed ashore, the official death count rises sharply. The same will also be true of the economic cost of the combined earthquake and tsunami induced disruption. Japan’s big industrial concerns must also cope with the business disruption caused by power shortages arising from the damage done to the country’s nuclear power stations. It surely doesn’t require a huge dose of hindsight to understand that the construction of nuclear reactors in a place as prone to geological instability was always going to be a bad idea. The nuclear crisis has scared some countries, notably Switzerland and Germany, to defer decisions to restart nuclear power programmes. They want to await the lessons of Japan’s disaster before proceeding. The North West of England is a world leading centre of nuclear industry expertise. Numerous firms offer a range of nuclear related services. Japan’s disaster could yet go either way for them. It could be beneficial, allowing them to win contracts worth billions to rebuild Japan’s power generation capacity. Or they will lose out as more and more countries get cold feet about nuclear power. But, as long as renewable sources of energy remain insufficient to provide all the power the world needs, the chances are we will stick with nuclear. We must decide which Japanese name
carries the most worrying resonance; Fukushima or Kyoto. AS THE story on the front of this edition of LDP Business demonstrates, we like to keep an eye on events in the shipping trade. That’s because something like one-sixth of Merseyside’s economic output is accounted for by maritime related activities. Also port trade is a good adhoc barometer that can be used to gauge the progress of the wider economy. After all, if firms are importing more raw materials and exporting more manufactured products, then the economy has got to be picking up. So it is good to hear that the Port of Liverpool, in line with all other major UK ports, enjoyed its best quarter of trade for five years at the end of 2010. This data is all the more interesting because it covers the same quarter as Britain recorded a fall in GDP figures. Perhaps rising shipping trade indicates that the adverse GDP figures are a blip. One disturbing aspect of the port figures is the longer-term decline in trade passing through our ports. Trade peaked for shipping in 2005, despite the fact there was still plenty of economic growth around for several years after that date. You would expect port trade through Liverpool and elsewhere to rise for three more years before the recession caused it to fall off. I WOULDN’T hold any great hopes for next week’s Budget speech. All the damage has already been done by both the recession and the Coalition government. While some experts think that the public sector financial deficit may turn out to be a little lower than forecast, the fact is the Chancellor won’t have much room to manoeuvre.
Developers ge Alistair Houghton meets video game programmers making a fresh start after losing their jobs
JUST like characters on screen, it seems that Merseyside’s video game developers can bounce back despite what the world throws at them. The video games sector was long seen by Merseyside regeneration chiefs as one that was ripe for growth, thanks largely to its two big players – Sony and Bizarre Creations. But last year Sony axed many of its development staff in Liverpool, and just last week said more development jobs could be cut across its UK studios. Meanwhile, in January, Speke’s Bizarre Creations was closed with the loss of 200 jobs. With jobs few and far between in the North West, it looked as though many of those developers would leave the region – perhaps heading to Canada, which offers tax breaks to game developers. But many others, who have put down roots in the region, have decided to stop the brain drain and stay here to create the next generation of gaming firms. In recent years, the UK has seen a wave of studio closures and cutbacks by the developers of big-budget “AAA” games for consoles such as the Playstation or the XBox. So Liverpool’s new wave of game developers are leaving the AAA world behind to focus on games that can be played online, via social networks such as Facebook, or on smartphones. And, away from the world of the global entertainment behemoths such as Sony or Bizarre’s owner Activision, they are learning the rules of a new game – starting out in business. You can see some of the new breed in action at Basecamp3, the business incubation centre in Parliament Street. The open-plan former warehouse is home to a handful of refugees from Sony and Bizarre who are now running their own firms. In the middle sits a block of desks that acts as home to Setgo, a company founded by three former members of the senior management team at Sony’s Wavertree site who left in last year’s restructuring. Setgo’s ambitious mission statement could almost act as a rallying cry for all these small companies. It says: “We started Setgo in Liverpool because we wanted to help create a new culture of start-up games companies to counteract the wave of studio closures, redundancies and talent drain that has hit the region and the UK games industry in general over the last five years.” Setgo develops online games that can played online through web browsers and via social networks such as Facebook – its first release was Facebook game Castaways. For co-founder Christian Lavoie, those markets represent the future of gaming. Under the AAA model, studios have to invest large amounts of money to develop games, banking on big sales in the weeks after the game is launched. But if that fails, there is a price to be paid. Bizarre Creations, for example, spent 30 months developing racing game Blur, which was launched last May. But sales were disappointing – and so Activision decided to close the studio down. Mr Lavoie said: “Traditional AAA
Christian Lavoie, left, and Jason Chown set up Setgo after leaving video games giant Sony Pictures: GAVIN TRAFFORD large project development in the UK is clinging to the roots at the edge of a cliff. “We saw that when we were at Sony. We saw the beginning of the end. “The market is shifting. There are large amounts of money being generated – video games generate more revenue than films. Yet the traditional games market is contracting. “So we saw the opportunity to investigate new platforms.” His co-founder Jason Chown, looking around at the other entrepreneurs in Basecamp3, added: “We were drawn to Liverpool by extremely big companies. With their demise, we are hoping to start the next set of big companies which will drive the next generation of talent.” Setgo’s founders come from all over the world but made Merseyside their home after joining Sony in the 1990s. Mr Chown is a UK citizen, while Clemens Wangerin is originally from Germany and Mr Lavoie comes from Canada. The Canadian games sector has grown strongly in recent years and many UK developers have crossed the Atlantic to grow their careers there. That success has been driven by tax breaks offered to games companies by Canadian provincial governments. Games firms in the UK, backed by trade bodies TIGA and UKIE, are campaigning for similar tax breaks to be introduced here.
‘We want to create a culture of gaming start-ups’
But for Mr Lavoie – who has many friends working in the Canadian video games sector – the issue is not simply about tax. It is instead, he says, about the wider support that government can offer. “I’ve had conversations with members of the Quebec government,” he said. “You cannot talk to them and have them lay out their support, without getting giddy – giddy like a child in front of a sweet shop. “They’ve got tax credits equivalent to 37.5% of your R&D costs. That’s the start. After that, they pay for training to a large degree. If you can’t find people locally, they will assist in getting people from elsewhere. “I spoke to them and they asked me if I wanted to start in Montreal – ‘How much money do you need? We’ll line up people who want to invest. Don’t worry about filling in forms – we’ll do it for you. We’ll get an accountant, we’ll show you premises.’” Sam Hall, one of the newest tenants at Basecamp3, is one of 200 staff at Bizarre who lost their jobs in January. He is only too aware of the pull of Canadian gaming firms. “A lot of ex-Bizarre employees ended up going to Canada, where they do get Government tax breaks,” he said.”For a publisher, that’s really appealing.” The only way Mr Hall could get a job in another large studio would be to move away from Merseyside. “But I’ve got a family,” he said. “It’s not something I want to do at the moment. “So I decided that as I had a bit of
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Wednesday, March 16, 2011
the big feature
LIVERPOOL’S INVESTMENT SPECIALISTS
IN ASSOCIATION WITH
et back in the game
Paul Ripley, founder of Phasic Labs
Roy Jones sees Basecamp3 as a hub for creatives
‘Small firms like these are key to city’s regeneration’
Freelance programmer Sam Hall savings, I would go out on my own. “It’s at a really early stage – I haven’t even got myself a company name.” At first Mr Hall plans to offer his programming skills to other businesses, rather than designing his own games. “I haven’t got my sights set on world domination,” he smiled. “I want to make a living and pay my mortgage. “If along the way I find time to make my own games, I’d love that. But at the moment I’m trying to play it reasonably safe. I’m just finding my feet and getting used to the idea of not being part of a bigger studio. “I’m enjoying the benefits, but I’m also scared stiff.” Activision announced last year that it was planning to close Bizarre. The studio had a proud heritage, thanks to titles such as Project Gotham Racing and Geometry Wars, and its closure rocked the video games world “It was an utter shock,” said Mr Hall. “Activision spoke to the whole company and went through all the options for the business. The last one was closing the studio down, and they told us that was the option they wanted to take. “The whole room went completely silent. People thought there would be cuts, but didn’t think it would close. “A lot of people are trying to look on the bright side and see this as a new start.” Last month the Daily Post reported
that a team led by senior Bizarre executive Pete Wallace had opened Lucid Games, a studio they hope will eventually take on more former staff from the closed Speke studio. And Roy Jones of Basecamp3 has recently spoken to more ex-Bizarre staff about their budding business ventures. If they want tips, they could do worse than speaking to some of the other ex-Sony staff now based at Basecamp3, including Dave Burrows – who sits two desks away from Mr Hall. Mr Burrows worked at Sony for 10 years before leaving last year. Trading as Damibu he will not be building games himself, but will instead offer services to other developers, helping them to develop games that work across platforms from social networks to smartphones. He also gives occasional lectures at Liverpool John Moores University – and in one recent lecture on the future of gaming, he urged students to consider setting up their own firms rather than chasing jobs at large studios. “Starting a business as a student is much easier than starting a business once you have a mortgage,” he said. “There’s more job security running your own life than there is working for a large company.” For Mr Burrows, starting his own firm was a way to get back to the work he loves most – programming. “At Sony I was managing a big team,”
‘People are trying to look on the bright side’
he said. “I ended up getting further away from doing things myself. “I ended up as the PlayStation Network Technical Director. I was talking to Japan and the US. We were coming up with really good ideas. But they seemed to come to a halt. “It’s probably a big company thing – not particularly Sony. They were pretty good and certainly let us run with stuff. But there are definitely things I could now do that I couldn’t do then.” Paul Ripley, who founded Phasic Labs following a five-year career at Sony, is also enjoying being his own boss. Phasic will develop games for the iPhone, iPad and other platforms. Last year Phasic launched its first iPhone game, Hexius. Mr Ripley has signed an agreement with publisher Chillingo to develop a new game, though he is keeping details under wraps, and is relishing having the freedom to turn his own ideas into games. “When you’re part of a large development team, you’re focusing on just one area of the game,” he said. “Now I can look at every single aspect of a game. “I left Sony and looked around to see what was available. I was interviewed at Bizarre. They offered me a job. But it was a narrowly-focused job and not really what I was interested in. “I thought if I don’t try something now, while I’m in a financially strong position, I’ll never try it and I’ll always regret it. “I wouldn’t want to go back now. It’s fun being my own boss.”
THE firms at Basecamp3 are starting small – but they could pay a big role in the city’s economic recovery. That’s the message from Roy Jones, co-founder of the Liverpool business centre that hosts several of Liverpool’s youngest creative and digital firms. Mr Jones and Roy Haigh set up social enterprise Pacificstream in 2009 to offer business advice to small firms. Then Pacificstream teamed up with digital design agency Milky Tea to open Basecamp 3 in Elevator, a converted Victorian warehouse in Liverpool’s Baltic Triangle. Its first tenants were gaming firms, including Spinning Head Software, and other tenants today include marketing agency Epic New Media and graphic designer Alister Hewitt. Earlier this month, shadow chancellor Ed Balls visited Basecamp3 to talk to tenants. Mr Jones is clearly proud that the centre has become a beacon for the city’s creative sector. He said: “Small businesses like these are key to regeneration and everything that goes with it, especially in an area like Liverpool. This is a creative city.” Basecamp3 tenants pay an all-inclusive flat fee per
desk – a fee which also entitles them to support from business advisors Mr Jones and Mr Haigh. Mr Jones, a former principal of Southport College of Art, wants the centre to feel as though it is more than just an office. “It should be a creative enterprise hub,” he said. “Business incubation is part of that, but it should be a community for creatives from across the sector. “Everybody has to feel comfortable about their intellectual property – so everybody who comes in here signs a non-disclosure agreement. I’ve always believed the creative sector isn’t competitive – it’s collaborative.” Basecamp3 has won international renown – it was named the third-best business incubator in the world at the Incubation Conference and Awards held in Liverpool last year. But the project needs public funding to continue – and Mr Jones is anxiously awaiting news on whether Pacificstream’s funding will survive the public sector cuts. He said: “If we don’t have the funding to provide the business support that goes with Basecamp3, then what’s the point? If we want the project to continue, we need the funding to continue.”
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Wednesday, March 16, 2011
LDP business .co.uk
news
LIVERPOOL’S INVESTMENT SPECIALISTS
IN ASSOCIATION WITH
Earthquake and tsunami costs continue to mount
briefing PartyGaming says merger plan on track ONLINE gambling firm PartyGaming said its merger with Austria’s Bwin was expected to complete on March 31. PartyGaming said all merger plan requirements had now been met in Austria. Shareholders in both firms approved the tie-up in January.
Profits surge 27% at Mears SOCIAL housing and home care provider Mears reported a 27% rise in underlying operating profits to £31.3m for 2010 after notching up record contract wins. The firm employs more than 12,000 staff and services thousands of homes.
A ship is stranded by the earthquake at a port in Kamaishi, northern Japan – large parts of the country have been plunged into chaos
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LDP BUSINESS EDITOR
bill.gleeson@liverpool.com
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PILKINGTON owner Nippon Sheet Glass (NSG) has become one of many Japanese firms to be adversely affected by last week’s earthquake and tsunami. Power shortages are causing disruption to production of glass at NSG’s Japanese factories and some stocks of glass have been damaged. However, the company says it is in the process of returning to full production levels and reported that none of its staff are missing or injured. Other Japanese businesses have not been so fortunate. The natural catastrophes, together with radiation leaks at nuclear power stations, have led to huge economic and business disruption throughout the country. Shares in New York and London tumbled more than 2% yesterday, tracking global equities sharply lower as Japan's looming nuclear crisis looked set to thrust financial markets into a period of turmoil. Shares on the Tokyo stock market collapsed 10% during Tuesday trading. US shares seen as specifically exposed to the disaster and economically sensitive stocks slid. Insurer American International Group fell 4% while General Electric dropped 5%.
a bit forward, unless Japan's political parties are galvanized by the crisis to also address the country’s long-term fiscal challenges,” Moody's lead analyst Tom Byrne said in a statement. The quake and tsunami have killed at least 10,000 people, officials estimate, striking a northeastern region that accounts for an estimated 8% of gross domestic product, compared with around 12.4% from the areas affected by the Kobe quake. However, the loss of fixed assets and human capital from Friday's quake looks to be far greater. It comes at a time when oil is hovering near a two-year peak and other commodity prices remain elevated. The economic damage is likely only to shave a sliver off global growth and the tens of billions of dollars spent on the reconstruction should boost Japan's economy and the Asian construction sector. But analysts also say costs could overshoot initial estimates. “From the experiences, there is a tendency to underestimate,” said Brendan Brown, head of economic research at Mitsubishi UFJ Securities. “There are many uncertainties -- we don't know how long power outages will last and that's an ongoing cost in addition to recon-
‘The costs could exceed initial estimates’
struction. There is a loss of output from dislocation. If that goes on for two months, that may dwarf the cost of reconstruction,” he added. The Kobe earthquake is estimated to have cost $115bn to $118bn, or 2% of GDP in 1995 terms. This time initial estimates from Credit Suisse and Barclays have put the cost at $180bn. Mitsubishi UFJ Securities and Sarasin expect the cost could run as high as 5% of GDP. Mitsubishi’s estimates take into account a wider economic cost including a loss of tax revenues, subsidies to various industries of the affected area, a loss of productivity following rolling blackouts on top of straight reconstruction costs. Rough estimates show that replacing a nuclear power plant alone may cost $5bn. Desperate to avert a nuclear meltdown, Japan was forced to sacrifice three of its reactors by pumping seawater to cool reactor cores. Insured losses from Japan’s earthquake could be as high as $35bn, even without tsunami and nuclear-related losses. Mr Brown says historical estimates of the Tokyo earthquake of 1923 put destruction as equivalent to 50% of annual economic output at the time, but the economic context was so different as to not make a direct comparison very fruitful, though its likely to be the most expensive earthquake ever.
Maersk suspends shipping services to Japanese ports
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European shares dropped 3.5%, led by nuclear-related utilities, luxury groups and assurance companies. Nick Kalivas, an analyst at MF Global in Chicago, said a prolonged crisis could cause consumers and businesses to cut spending, but saw it as unlikely at this stage. “If we get into a hunker-down attitude, the market could have a lot further to go,” he said. Japan now faces a recovery and reconstruction bill of at least $180bn, or 3% of its annual economic output. The bill is likely to be more than 50% higher than the total cost of 1995’s earthquake in Kobe, though some extreme projections of the longer-term costs project figures closer to $1 trillion over several years. The world’s third-largest economy, already saddled with public debt double the size of its $5 trillion output, must rebuild its roads, railways, power plants and ports on a scale not seen since World War II. Moody’s Investors Service warned on Monday the huge financing needs Japan faces may erode investor confidence in the country's ability to repay its debts, forcing up borrowing costs. “The earthquake may have shifted such a potential tipping point
Tsunami wreckage at Sendai
THE WORLD’S biggest container shipping company, Maersk Line, has suspended service to three tsunami-hit Japanese ports. Maersk Line, a unit of Danish shipping and oil group A.P.
Moller-Maersk, and which has its UK headquarters in Liverpool, said in a weekly news bulletin that it suspended service to Sendai, Onahama and Hachinohe. “We have limited details at this
moment, but terminal facilities and our containers at these ports have suffered serious damage by the tsunami,” Maersk said in a statement. “Tokyo, Yokohama, Nagoya, Kobe, Osaka and Hakata ports are
safe and no damages have been reported to our equipment in these yards,” the company said. Maersk Line continues to serve other Japanese ports but service may be subject to changes later.
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Wednesday, March 16, 2011
LDP business .co.uk
LIVERPOOL’S INVESTMENT SPECIALISTS
IN ASSOCIATION WITH
Shell unveils plan to spend £62.4bn on new projects ROYAL DUTCH SHELL set out “ambitious” production targets yesterday as it embarks on a fresh wave of growth to meet soaring demand from emerging markets. The oil and gas giant plans to invest £62.4bn on new projects over the next four years, including schemes in Qatar and Canada this year.
Shell set a target of 3.7m barrels of oil equivalent per day for 2014, an increase of 12% on 2010 levels, which it claims is among the highest growth rates in the sector. Chief executive Peter Voser said in the company’s annual strategy update: “We have made good progress in 2010. Our profitability is improving and we are on track for our
growth targets. There is more to come from Shell. The company has 20 new projects under construction, which will add more than 800,000 barrels of oil equivalent per day, putting it on course to meet its target of 3.5m barrels per day for 2012. It plans to make final investment decisions on some 10 new projects over the next
Spending cuts hit UK housing market by Alex Turner
LDP BUSINESS STAFF
alex.turner@liverpool.com
HOUSE prices fell by 1.4% during January as the property market continued to come under pressure from Government spending cuts and the mortgage drought. The drop left the average cost of a home just 0.5% higher than it was in January last year at £208,552, according to the Department for Communities and Local Government. It was the eighth consecutive month during which the annual rate of house price inflation has fallen, and the latest rise was considerably lower than the 3.8% jump seen in December. The three-month-onthree-month change, which is generally seen as a smoother indicator of market trends, also pointed to an acceleration in the rate at which prices are falling. Property prices dropped by 0.4% during the three months to the end of January, compared with a 0.2% decline in the quarter to the end of October. House prices are coming under pressure as potential buyers sit on their hands in the face of the looming Government spending cuts and economic uncertainty. Those who do want to press ahead with a purchase are continuing to struggle to raise the
mortgage finance they need. Howard Archer, chief UK and European economist at IHS Global Insight, said: “The housing market will be pressurised over the coming months by high and likely-to-rise unemployment, negative real income growth, the increasing fiscal squeeze, very low consumer confidence, and ongoing difficulties in getting a mortgage, particularly for first-time buyers. “We suspect that house prices will fall by around 5% in 2011 and end up losing around 10% from the peak levels seen in the first half of 2010.” Annual house price growth is now negative in seven regions of the UK, with Northern Ireland continuing to see the biggest year-on-year drop of 14.1%, followed by Yorkshire and Humberside at 4.6%, and Scotland and the West Midlands, which both recorded a 3.2% decline. Growth was strongest in the East and London, with prices 4% and 3.7% higher respectively than they were in January last year. But the recent price falls seem to have done little to help first-time buyers get on to the property ladder, with the average cost of a home bought by this group increasing by 1.5% during the past year, while the price of properties purchased by owner-occupiers is up just 0.1%.
two years in Australia, Malaysia, Canada and the Gulf of Mexico. In addition, it has more than 30 new projects on the drawing board for the period to 2020 as part of “an ambitious phase of new growth investment”. Shell said it is on track to achieve its strategic targets by 2012, including a 50% to 80%
increase in cashflow from operations between 2009 and 2012, following a “strong all-round performance in 2010”. The Anglo-Dutch company nearly doubled its profits to £11.6bn in 2010 thanks to higher oil prices. The results contrasted with those of its rival BP, which recorded its first annual loss for nearly two decades.
Phones in inflation basket
SMARTPHONES and the apps that run on them have been added to the updated basket of goods and services used to calculate UK inflation rates. Phone applications are replacing mobile phone downloads, such
as ringtones and wallpaper, while the updated basket will also include dating agency fees for the first time, the Office for National Statistics (ONS) said. The latest snapshot of the nation’s spending habits also showed the
addition of sparkling wines due to their increased consumption. As new legislation is coming into force this year restricting the sale of cigarettes, vending machine cigarettes are being removed from the basket.
Leading role
HOME entertainment distributor MBL Group warned of job losses for “many of its employees” yesterday after supermarket Morrisons pulled the plug on a 14-year relationship
TELECOMS giant BT has appointed a 35-year-old woman to head up its Openreach division, which is responsible for rolling out super- fast fibre broadband across the country. Olivia Garfield will become one of the youngest chief executives in the country when she takes up the role.
But it said the decision by major customer Morrisons to end its two supply agreements would lead to a “significant downsizing” of operations. Bradford-based Mor-
Mobile call rates are set to fall THE cost of calling mobile phones from other networks and landlines is set to become cheaper after Ofcom imposed a reduction in charges. The regulator ruled that termination charges – the amount mobile phone companies bill their rivals for handling calls from their networks – will fall 80% over the next four years, starting from April 1. The big three mobile operators – O2, Vodafone and Everything Everywhere, which includes Orange and T-Mobile – currently charge 4.18p per minute to connect calls from other phone companies. But this will be reduced to 2.66p next month and will fall to 0.69p by April 2014. Ofcom said it expects landline operators to pass on the cost savings to customers and for mobile operators to offer more choice to customers. Mobile phone operator 3 UK can currently charge up to 4.48p per minute, slightly more than the other big operators, but its cap will fall in line with its bigger rivals from the start of next month. The changes are expected to benefit smaller mobile phone operators, which will be able to offer more competitive prices. The regulator said that while mobile phone companies will lose money from the reduction, they are gaining from increased use of data services.
Smartphones and apps will now be used to help calculate UK inflation
MBL staff face axe after deal ends with the firm. MBL, which supplies Morrisons with CDs and DVDs, has put itself up for sale following the contract blow in the hope of securing a rescue deal.
news
risons – the UK’s fourth largest supermarket – accounted for 78% of MBL’s turnover. Many of MBL’s 320 workforce face the axe as a result of the contract being ended.
LDP CREATIVE For the latest news from the creative sector
www. ldpcreative. co.uk
12
Wednesday, March 16, 2011
LDP business .co.uk
location
LIVERPOOL’S INVESTMENT SPECIALISTS
IN ASSOCIATION WITH
Firms looking to move are in a strong position in current climate
view point
by Andy Williams, lead partner at Powell Williams in Chester THE dilemma of whether to move location or refurbish existing premises is more keenly felt in a recession when belt tightening often
Packaging firm deal GVA has completed the sale of a 7,000 sq ft industrial unit at Penrhyn Court, a development in Knowsley Business Park. The unit has been acquired by packaging company Parkers. It specialises in providing packaging for a wide range of food products and is relocating to Penrhyn Court from Millbrook Court. Jonathan Lowe, surveyor at GVA, said; “Penrhyn Court provides the highest quality of specification in a well-established industrial location at competitive prices.”
BUSINESS to BUSINESS
Industrial Property UNITS TO LET Bootle Area 5,000−15,000 sqft. Flexible terms 0151 486 0004
Commercial Premises FOR SALE
51-53 MERTON ROAD, BOOTLE L20 Period office building with substantial car parking Approx 7000 sq.ft Suitable for other uses (STP) SUTTON KERSH COMMERCIAL TEL. 0151 207 9339
TO LET
LIVERPOOL INDUSTRIAL/ WORKSHOP UNITS RENTS FROM
outweighs other considerations. We have found clients behave differently depending on the sector in which they operate. Many industrial firms have been more inclined to renegotiate their existing terms and stay where they are – considering the huge cost and upheaval of moving a manufacturing, logistics or warehousing facility – whereas retail and office-based clients often favour re-locating. They are more able to make the most of competitive rents and take new space which has already been upgraded and is ready to move into. Overall, we’re still seeing a healthy mix of both scenarios.
letting, especially for those who downsized during the recession. Moving, on the other hand, offers the chance to start afresh, relocating closer to transport links or customers, and ensuring the space you take is appropriate for your firm’s current needs, rather than those that drove the original choice. In the current climate, tenants are in a strong position and there are deals to be done with rental incentives from landlords which could offset the cost of additional building or fit out works.
‘Moving offers the chance to start afresh’
Not only does this freedom provide greater flexibility in layout, all the work can be carried out with no disruption to staff or the business. However, moving is undoubtedly the pricier option once legal fees, construction, moving costs, new furniture, equipment etc, are taken into consideration. There will also be dilapidation costs incurred from the original location which will have to be factored into the investment. Either way, fresh, modern facilities could be the differentiator your business needs in 2011. It can be great for staff morale and impress your clients.
Bruntwood reports record private sector enquiries by Tony McDonough
LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com
BRUNTWOOD is reporting a 15-year high in enquiries from potential private sector occupiers for its Liverpool office space. The North West firm, one of Merseyside’s biggest providers of office space, says its recent data contradicts the oft-made claim that the city is over-dependent on the public sector. Bruntwood owns almost 872,000 sq ft of space in Liverpool and in 2010 saw lettings total 88,590 sq ft. Its biggest properties in the city include The Plaza and the Cotton Exchange complex – both in Old Hall Street in the central business district. The firm says that due to the demand for serviced office space it has increased the number of workstations at The Plaza by 25%. In its annual report Bruntwood said: “Although London-based commentators sometimes view Liverpool as a city substantially dependent on the public sector, our recent experience could not be further from this. “We have more active private sector negotiations ongoing than at any other time in our 15-year history of operating in the city. “The fact that a good deal of this activity is within the SME sector is a healthy sign and backs up the recently-published statistics putting Liverpool third in the UK’s league table of locations for business start-ups, after London and Manchester.” Last month, Bruntwood reported, the total value of its portfolio of offices was up 4% to £948m, and its net worth up 3.2%, to £310m for the year to the end of September 2010. Turnover was up 3% to £100.2m, while net profit fell slightly to £11.1m. Bruntwood owns more than 100 office buildings across Manchester, Liverpool, Leeds and Birmingham. The report added: “New customers in Liverpool this year include HH Law, who have already expanded their space four-fold since signing with us in January, 2010.”
£100 PER WEEK
07710 310918
Which option is right for your business can depend on the state of your current premises and your lease agreements. Staying put at least saves on removal costs and professional fees. Although disruptive in the short term, refurb is often less complex and demands less management downtime for planning and implementation. It may provide an opportunity for a reconfiguration of the existing space and even the potential to generate income from releasing spare floor area and sub
LDP
INDUSTRIAL UNITS To Let. South L’pool 500 to 4000 sqft, monthly tenancy, competitive rents. From £50pw Tel: 0151 427 5051
MOBILE
LARGE SHOP & OFFICE Decorated, carpeted, small warehouse, total 2500 sq ft, secure private parking, Maghull £200 pw 01695 423489
Text LDP to 67800
Bruntwood’s Plaza development in the heart of Liverpool’s central business district
Former nursing home goes on the market AGENTS at Edward Symmons have been appointed to market the freehold of a former residential nursing home in the centre of Prenton that offers the possibility of a
change of use, subject to planning consent. The 6,645 sq ft semi-detached property occupies a prominent position in Bidston Road. It comprises four
floors, including a self-contained basement flat, and the lay-out currently includes 12 patient rooms with en-suite facilities, lifts to all levels and a large communal living
area on the ground floor. The building also has landscaped gardens to the rear. Robert Diggle, partner at Edward Symmons, said: “This property
could be considered for reinstatement to a single residential dwelling, for offices, or for other uses. We would anticipate a significant level of interest in this property.”
13
Wednesday, March 16, 2011
LDP business .co.uk
IN ASSOCIATION WITH
King Edward estate fully occupied after latest lets by Tony McDonough
LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com
TWO tenants have taken space at Peel Group’s King Edward Industrial Estate in Liverpool, meaning the site is now fully occupied. Hire and Safety UK and vacant property specialist VPS have both taken space at the site located close to the waterfront. Hire and Safety has relocated from Knowsley to take 3,349 sq ft at unit 11 on a three-year deal, with VPS company, Safe Estates Services, signing a five-year deal for 4,135 sq ft at unit 5. The industrial estate, which is next to Peel’s Princes Dock development, is already home to occupiers including Mersey Fire and Rescue, A Plant Hire and Printfine. Ian Pollitt, senior development surveyor at Peel, said: “To have fully let the estate in the current economic climate is great news. “King Edward Industrial Estate is an enviable location and we are
pleased that Hire and Safety UK and VPS have recognised the benefits of being based here.” Nick Tubbs, managing director at Safe Estates Services, added: “We’re delighted to be expanding our presence in Liverpool in what is an excellent location that will help us to meet our business needs. We have been serving the community of Liverpool for nearly 10 years by caring for and maintaining vacant property. “Securing empty buildings goes beyond reducing the cost of vacancy and VPS recognise the positive impact it can have on communities. “We look forward to developing our existing relationships across Liverpool and our commitment to the city for the next five years and beyond.” It has more than 100 offices across the UK, the US, the Netherlands, France, Italy and Germany, employing around 1,500 people. Agents acting on behalf of Peel were Legat Owen.
Park Court
Peel Group’s King Edward Industrial Estate in Liverpool
To Let Industrial / Trade units from 3,000 - 4,500 sq ft Sherdley Business Park St Helens
location
LIVERPOOL’S INVESTMENT SPECIALISTS
IPD says values on rise UK COMMERCIAL property values rose 0.2% in February against a 0.1% gain in January, according to Investment Property Databank (IPD). It said the annual rate of capital growth had fallen to 4.8%, down from 6% at the end-January, while while rental values were virtually at a standstill, up just two basis points. Phil Tily, IPD’s managing director for UK & Ireland, said: “Offices continue to enjoy the best rental growth, while in retail capital growth was driven solely by positive yield movements. In the industrial sector, where sentiment appears to be waning, adverse movements in both yields and rents combined to deliver capital depreciation.” Recovery in the sector has slowed since mid-2010.
xibility? Need fle s leases 12 month psf at £4.50
cost? w o l d e e N leases 5 year 0 psf from £3.0 onditions)
terms (subject to
&c
Lea Green To Let
Industrial units from 3,500 - 7,000 sq ft St Helens For more information on these sites please contact us on 01925 273000 or visit our website www.langtreegroupplc.co.uk
14
Wednesday, March 16, 2011
LDP business .co.uk Aerospace & Defence
31634 25138 Forgn & C
250
79
Avon Rbbr
205 xd
-9
38834 29434 BAE Systems 317
-278
3663 2598 Chemring
3310
-38
27578
22212
-114
19214
Cobham
38078 26134 Meggitt
32914xd
-3
665
57712
-9
535
Rolls-Royce
15912 9434 Senior
135
-178
Automobiles & Parts
-434 -918
36278 27314 Law Debnture 33338
-412
25034 18614 Scot Am 40978
522
18934
22512xd -134 48378xd
Witan
10978
18114
BT Gp
-112
93
-234
6012 Cble&W Wwd 6334 KCOM
60
25538
Barclays
946
610
Bco Santander 71738
-212
292 xd
+418
-438
395
35514
-578
45438 37712 Tesco
38238
-334
125
8814
-314
31278 Sainsbury
74
Thorntons
16514 2258 Ireland
2638
-34
Food Producers Index 4794.77 ▼ 81.80
6038
-14
4138
-12
1567xd -26
Beverages Index 8742.63 ▼ 230.26 1304 88412 Barr (AG)
1090
-17
518
36912
-778
1258 1025 Diageo
1139xd -30
2306 1827 SABMiller
198312
-53
Chemicals
14414
+134
1751
-5
Construction & Materials
2100 1460 Johnsn Mat
Index 4069.37 ▼ 111.75 35714 22934 Balfour Beatty 33034 265
18512 Costain
-1078
25034
-8
189712 101738 CRH
128134xd-2558 1232xd -41
120
7834 Marshalls
Feb 21 - Feb 25
940
-312
68212 435
Carrs Mill
626
-1612
90712 784
Cranswick
792
-2712
42478 33934 Dairy Crest
35878
7534 4134 Nth Foods
7212
3358 16
+178
Premier Foods 2558
-1
59912 40918 Tate Lyle
53412
1995 1688 Unilever
1803xd -32
2614 434
612
Uniq
Feb 28 - Mar 4
571
5212
-1
11212
-14
36758 Mondi
JJB SPORTS Mar 15, 2011
Sep 15, 2010 1905
+37 -18
1105 864
44112
-458
59012 46058 Reed Elsevier 508
Health Care Equip & Serv
742
53712 Smith Nph
686
-2012
Household Goods
74
Aga Rngmstr 125
13734 70
Barratt Dev
10034
-114
General Financial
809
511
Bellway
642
-412
Index 5844.10 ▼ 133.95
23334 114
McBride
136
-214
25178 3i
88812 664
28434
Close Bros
840
57012 34158 ICAP 933
544
-818 -2012
49518
15178 9712 Redrow 44
-738
London Stk Ex 828
-14
1257 76212 Rathbone
1120
-28
33038
1922 1154 Schroders
1730
-41
85312 567
70312 36738 Cooksn Gp
-112
Index 6378.81 ▼ 135.76
932
-1212
Index 3147.40 ▼ 21.58
-378
Industrial Engineering
1033 72812 Provident
General Industrials
11634
2214 Taylor Wimpey 3818
18212
IMI
960
578
104
4312 Molins
91312
-20
94
-312
1560
-40
1429 1008 Smiths Gp
634 xd -1612
179
9834 Laird
14478
-118
316
16712 Morgn Cru
27912
-818
610 xd
-25 -2514
Equity Inv Instruments Index 5731.31 ▼ 74.41
870
545
Alliance
346
-214
Br Assets
127 xd
-114
1285
-3
25
1214
2212
Ashley L
31114 21712 Brown (N) Gp 25212 79
53
Debenhams
58
3612 1614 Dixons Retail 1614 550
36634 Halfords
29518
18812
414
23718 Inchcape
-238
250
142
Home Retail
JD Sports
1234 JJB Sports
Industrial Transportation Index 2532.26 ▲ 0.60 24034 175
Index 1547.39 ▼ 5.11
22712 17118 DunedinIncGth 21234
46714
-318
General Retailers
93312 585
Candover Inv 636
200
Weir Gp
BBA Aviation 202
-58
47778
29414
-14
12234 7214 Lgl & Gen
Aviva
Standard Life 21034
-634
897
+1012
1234
-34
24434 173
Media
-312
27114 19812 Kingfisher
235
-112
366
-512
42712
33178
-118
83312 53612 BSkyB
-412
62712 47478 Mothercare
47478
-134
59412 433
66012 53012 Edin US TrkTst 629
High
8012 2312 28712 1251 92 35714 4112 594 734 110712
Low
3612
241 Albany Inv Tst 76012 AMEC 2012 Anglesey Mining 22934 Balfour Beatty 29 Beale
12
12
4
-58
- 34
27512
-7
-12
D Mail Tst
820
-4
501
+312
9112 93312
12
12
57 IS Pharma 585 JD Sports Fashion
34
8812
1234
-34
-434
-378 -1458
3512
1534 Johnson Serv
3012
-14
-212
33034 -1078 -2314
495
7738
-114
-134
53212
+3
-8
Coral Prod
7 34
+12
+ 78
86712 Dee Valley
110212
12112 36 1257 15178
33212 Nichols 76 NWF 1812 Park Gp 76212
Rathbone
9712 Redrow
410 -1834 -4738 11412
+ 12
3412 xd
-312
1120
-28
-67
-378
-958
0.36
Jpan Spec Sits
-
112.40
0.72
Spec Sits
-
1900.00
0.61
Sth East Asia
-
699.00
0.16
16014 10234 Spirent Coms 14378xd -112
Tobacco Index 27056.45 ▼ 496.47 2521 1959 Br Am Tob
232812xd-3712
2069 1753 Imperial Tob
1893
-45
Travel & Leisure Index 4495.72 ▼ 73.50 3153 2037 Carnival
8438
+3
33812
-934
Enterprise Inns 88
-1
FirstGroup
-6
328
1490 1042 Go-Ahead Gp 1329
-51 -718
240
285
43034
Holidaybreak 340
+5
Intercontl Htls 1255
-32
22034 Intl Cons Airlns 22034
-918
16234 12234 Ladbrokes
130 xd
11718 8978 Marston’s
9318
-1 2
361
274
Mitchells&Btlrs
29912
-134
101
58
Punch Taverns 7014
-278
-158
1753 1238 Admiral Grp 1072 728
1582
-10
Brit Insurance 1072
+5
-14
1685 1135 Aggreko
Cairn Energy
2140 1085 Premier
1915
Ashtead Gp
20612 77
26412 Centrica
32214
90
-212
1513 1086 Severn
12534
-112
62812 507
263 xd
-114
API Gp
1638
-7 8
4
-58
1514 7
Armour Gp
714
-1 2 +14
1520
-3
498
19012 Cape
47114
18514
-514
812
2
CDU
2
134
78
Crimson Tide 112
-5
-9
212
112
Dawson Intl
134
-8
826
63512 Capita
757
+3
734
414
Eckoh
678
-612
984
54912 De La Rue
77512
-412
3512 1534 Johnson Serv 3012
-31
27912 19978 Electrocmps
26338
-634
86
-13
1114 4
731
3034 Man Brnze
1493 99112 Tullow Oil
25858
+134
550
452
32834
-212
17312 8712 Redhall Gp
12
-1
Low
3614
1914 Speedy Hire
55
3534 Sportech
39 5912 2
23 Telme Gp 3234 UK Coal 78
Ultima
Metalrax
32712
-234
1012
Portmeirion P 500 8712
-19 -3 4
24614
-2
4014 1112 Scapa Gp
3434
33734 Menzies J
48018
-1978
150
115
Swallowfield
13312
320
15214 Northgate
29614
-812
670
510
Young A
59212
Var 5Day
-14
-558
27
-114
-134
3634
-314
-378
3458
-58
-258
4012
-112
-312
1 12
1995
1688 Unilever
1803 xd
62812
507 Utd Utils
56412
-6
-32
-37
-612 -2312
Balanced
-
British Gilt & FI
-
Country
Currency
Tourist
Buy
Sell
dollars
1.53
1.621
1.626
Canada
dollars
1.50
1.580
1.582
Denmark
krone
8.19
8.580
8.590
European Union
euro
1.10
1.151
1.151
yen
New Zealand Norway
63.35
-212.00 -
1.05
252.20 3.26 3.50
212.00 3.26
126.60
3.47
HENDERSON HORIZON FUND European Smllr Cos A Sterling Bd Unit Tst
940.20
- 53.34 -
-
55.73 4.30
414.60
3.12
UK Advantage Inc
-
253.20
-304.28
1.10
316.46 1.10
European
-
768.20
Far East
-
520.20
0.70 1.80
Inc & Gwth
-
196.00
3.30
International
-
406.90
0.40
North Amer Acc
-
455.70
0.10
-
Sing ASEAN
211.06
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 High Consols
Low Funds
Price
£90932
£7412 Cons 4% .................£7734
£582732
£49116 Cons 212% ................ £50
Var
Conversions
£8134
£69 Cnv 312%.................£7212 -132
Treasury
Australia
Japan
100.70
-252.20
£1102132 £10234 Cnv 9% 11 ............£10234
£ ABROAD
13158 xd
-
-1 4
4514
29634 18312 Interserve
Price
11434 RSA Insurance
-1977.70 2060.10
HSBC INVESTMENT FUNDS (UK)
-1 8
510
▼ 1.24%
Property Bonds
INVESCO FUND MANAGERS
1912 634
-534
Index 23671.33 ▼ 253.77
-
Index 859.47 ▼ 27.68
819
1114
-612
AIM
28234 23734 G4S
1251 76012 AMEC
56412
47414
Hyder Cons
-12
-22
70212
218
-
141.00
Capital
1420
658
-21
-3
59412xd-1212
Utd Utils
2251 1554 Ryl D Shell B 2071xd -1412 1349
262.72
-134.00
HILL SAMUEL UNIT TST MGRS
110212
36014 Berendsen
Experian
-249.58
Pacific Initial
Index 4382.47 ▼ 65.72
783
572
Pacific Acc
UK Equity Inc A
492
Bunzl
-
-714
Index 4309.10 ▼ 42.19 AEA Tech
442.30 249.90
17078 Thomas Cook 17078
Support Services
2312 4
-420.20
Monthly Inc
186718 -1012
14312 11434 RSA Insurance 13158xd
BG
22234 Sage
Intnl. Initial
North American Initial -237.40
-412
48278 Pennon Gp
302
-
-912
48414 National Grid 54312
14778 10134 Logica
518.96 1042.66
-118
650
Kewill
-493.02 -990.53
19738
663
12612 85
Index-Linked Acc
16034 Stagecoach
Utilities
163.41 4.53
International Acc
224
34618
-152.22 GUARDIAN
31078 20814 Restaurant Gp 29378
-1
33814
3.82
-914
+38
41
36414 23014 Invensys
1.23
201.09
Gilt & Fixed
110712 86712 Dee Valley
5314 3012 Emblaze
827.46
-
+12
-10
-5
-
Income
13012
1566
-314
57512 Inmarsat
Euro Sel Opps
Pratical Inv
49138 37614 Greene King 360
GARTMORE FUND MANAGERS
2493xd -56
49258 Compass Gp 53212
1975 1271 Autonomy
-12
11634
209.30
13812 9434 Rank Gp
Index 692.07 ▼ 5.39
897 +1012 -1112
1234 JJB Sports
-
Software & Comp Servs
57512
821
12
250
-1
3014
49258 Compass Gp
12
-69
1114
-112
Land Secs
18234 12912 Vodafone Gp 17134
DAILY POST REGIONAL INDEX 1146.60 down 14.38 High Price Var 5Day High Low Price Var 5Day wdff x 338 -9 -18 143 496 338 easyJet Adv Medical 80 +1
4 AEA Technology
47 8
4012
Oil Equipment & Services
Index 4166.06 ▼ 64.63
42212
M&S
5912 3234 UK Coal
42134
-1218
132
Edin Invst
25014 SEGRO
49314 366
35434
10034 Dunedin Sml
32638
545
329
-23 -3
Japan
-814
773
1509
27578
+12
30818
-80
3935xd -40
45114xd
21114
4.50
9012
10012 7134 Psion
6655 4425 Randgold Res 4425 4712 2812 Rio Tinto
1524 984
32858
1.23
187.30
-10
65538 30278 BP
+278
311.60
-
-378
-278
19534
546
0.32
-
1606
11178 695
Resolution
58512 41814 Brit Land
Index 8302.93 ▼ 93.78
48914 Prudential
35314 28438 Big Yellow Gp 32034
593.70 1798.00
Income Plus
1887 1266 Whitbread
-814
749
Index 1958.11
-
Gwth & Inc
-8
-1412
43134
+112
Real Estate
-66
Oil & Gas Producers
37058
-1 8
Amer Spec Sits American
+38
72112
Index 4305.19 ▼ 117.15
-378
3934
FIDELITY INVESTMENT SERVS
21
22418
Life Insurance
-114
Vernalis
Yield
51712
1435 982
2854xd -5212
Offer
Price Gross
2058 BATM
TUI Travel
191134 127758 Marsh McL +134
3385 2772 AstraZeneca
Price
22518 ARM Hldgs
30838 190
Index 1519.75 ▼ 19.34
1861 846
33014xd -238
Bid
Terms
43
272
Nonlife Insurance
-734
409
26018 PZ Cussons
-13
Cancel Fund
651
-113
-134
35512
Index 711.25 ▼ 9.26
-1012
170
-43
Tech Hardware & Equip
37814
3314 1883
-20
40118 28012 Gt Portland
MS Intl
2025 1344 Spirax Srco
2043
2919 2157 Daejan Hldgs 2637
Renold
-18
-1 2
Travis & P
-114
-11
115
4
1127 709
96212
-48
23
Cosalt
27
1312
Kazakhmys
2113 1355 Lonmin
-112
338
1110
-214
3614 1914 Speedy Hire
2261 1223 Wolseley
UNIT TRUSTS
-214
8212 Smiths News 8212
41258 328 1203 61212 Burberry Gp
-712
1628
1671 965
17712
834
368
1433
+5
+5
705
Fresnillo
225012xd-3812
649
1189xd
Smith DS
2616 168412 BHP Billiton
Index 3916.19 ▼ 72.96
1258 1010 Scot&Sthrn
108
-22
-638
45
226
1309
126
13914
Index 18675.15 ▼ 196.97
7514 31
1634 761
86
Rentokil
49612 33812 easyJet
Personal Goods
131812 1095 GlaxoSmthKln 1160xd -2612
-58
28014
13812 86
594
Index 8500.50 ▼ 176.69
303112
Antofagasta
To assist in the analysis of the market two figures are given for each sector. Firstly an index (set at 100 on January 1 1992) to give a comparison in the performance of various market sectors. Secondly an indication of the percentage change in the price of all the securities within a sector since the previous close.
-14
3437 2254 Anglo Amer
30834 20014 Prem Farnell
Those securities which have increased in value since the previous close are shown in bold type.
-10
Index 24531.04 ▼ 364.94
1682
2956.29 ▼ 1.46%
Pharma & Biotechnology
-1412
33058
+12
14012 105
75712
38634 18314 Fenner
734
29312
WPP
Mobile Telecoms
Coral Prod
37778
84612 608
-1512
478
260
130
71912
734
Oxford Inst
UTV
Charter
-34
253
48018 Utd Business 58112 106
+112
Bodycote
-134
Index 2867.35 ▼ 77.66
-6
50
-1414
31358
Electronic & Electrical
-17
147
725
76312
FT ALL-SHARE down 43.67
-13
30612
40778
37538 29038 Rexam
1069
151
-6
5949.12 ▼ 0.29%
-118
Mining
41558 32614 Drax Gp
10012 Volex Gp
4914 STV Group
Index 5959.21 ▼ 47.63
44858 28412 Intl Power
736
153
Pearson
17018 4812 Trinity Mirror
Index 3832.77 ▼ 104.16
+14
-13
8478
2640
39814 WH Smith
3655 3037 Reckitt Benck 3053xd -16
Index 7349.26 ▲ 25.53
377
9312 4814 ITV
2820 1724 Signet Jwlrs
-1212
542
M T W T F
523
138
Electricity
Domino Ptg
Mar 7 - Mar 11
FTSE-Rebased
2344 1868 Next
20 DAY MOVING AVERAGE down 17.09
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
Share price (pence)
80
5695.28 ▼ 1.38%
KEY
120
0
AB Foods
340
1383 88612 Kier Group 6312 2834 Low Bonar
5680
Index 5838.08 ▼ 140.02 -13
5112 Elementis
FTSE-100
5780
Forestry & Paper
1588
158
Croda
20-Day Moving Average
5980
40
1182 918
Index 6488.71 ▼ 60.34 1649 901
FT-SE 100 INDEX down 79.96
SPOTLIGHT
27418
-4
58
6080
160
30614 25758 Morrison W
646
7758 5012 Lloyds Bank
FTSE 100 INDEX
Food & Drug Retailers
73078 59614 HSBC
36412 Britvic
-234
Index 4527.83 ▼ 53.49
38318
1959 1567 Stan Chart
-4
14814 4438 Cble&W Com 49
-412
Index 4681.61 ▼ 38.77
Closing Indices
5880
Index 2302.03 ▼ 57.93 19118
Banks
3758 Ryl Scotland
-818
Keep track of all the major share moves of the day with our live FTSE ticker at www.ldpbusiness.co.uk
Fixed Line Telecoms
6512 41
Index 4435.31 ▼ 105.21 23718 10914 GKN
29934
Hend Sml Cos 29338
32334 206
Index 3170.23 ▼ 36.17
LondonStockMarketatClose
129.800
£61
£50 Tr 212% .................. £50916
£1171516 £1102332 £10738
Tr 9% 12.................. £112
£104132 Tr 5% 12................£10418
£121516 £116932 Tr 8% 13................£11678 £114332
£109532
Tr 5%
14................£11012
£105732 Tr 734% 12-15........£10614
+332 +18
124.67
129.700
dollars
2.04
2.197
2.202
£112
krone
8.66
9.093
9.094
£319932 £2991532 Tr 212% IL 16 .........£31858
-58
Poland
zlotys
4.12
4.662
4.670
£142316 £1322132 Tr 834% 17 .......... £1351732
+14
Sweden
krona
9.84
10.295
10.305
Switzerland
francs
1.41
1.472
1.473
Turkey
new lira
2.40
2.539
2.549
United States
dollars
1.53
1.610
1.610
£147132
£13358 Tr 8% 21............. £1373132
+1332
War
£8334
£6712 War Ln 312%.............. £72
Last night the pound was worth: $1.6067 (down 0.0101) ......1.1509 euros (down 0.0049) ...... 131.73 yen (down 0.46)...... Its trade weighted index was 80.00 (down 0.50) Metals in $ per troy ounce: Gold 1400.50 (down 22.50)................. Silver 33.88 (down 2.30) ................ Platinum 1711.00 (down 51.00) ................ UK base lending rate 0.5%
15
Wednesday, March 16, 2011
LDP business .co.uk London market JAPAN’S escalating nuclear crisis sent world stock markets tumbling yesterday as panicked investors headed for the exit. The FTSE 100 Index dropped 3% at one stage before recovering some early session losses to close 80 points lower at 5695.3. There were similar declines across Europe and America as shareholders fretted over the potential threat to economic recovery and on fears over the impact of Japan’s disaster on global manufacturing supply chains. France’s Cac 40 was 2.5% down as investors dumped shares in tech and car manufacturer companies that rely on Japanese suppliers for parts. Japanese stocks had earlier taken another hammering after the Nikkei closed almost 11% lower at a two-year low amid fears over the radiation leak at Japan’s Fukushima plant panicked investors. Japan’s leading stock market has now suffered the worst two-day fall since the 1987 stock market crash. Analysts said the need for Japanese investors to repatriate funds in advance of the country’s rebuilding programme was also impacting world markets. The biggest Footsie risers were Next up 37p at 1905p, G4S ahead 1.7p at 258.6p, Compass Group up 3p to 532.5p and Scottish and Southern Energy up 5p to 1189p. The biggest Footsie fallers were Fresnillo down 66p at 1433p, International Consolidated Airlines Group down 9.1p to 220.7p, Essar Energy off 17.7p to 478.9p and Eurasian Natural Resources down 32p to 872p.
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
market comment
Irelandwary asitsbanks facebalance sheetsbeing stress-tested
TAOISEACH Enda Kenny may well get Europe to agree to cheaper rescue loans for Ireland, but he also needs concessions in reviving its banking sector if he is to persuade investors the euro zone struggler can avoid default. Ireland’s banks are the root of its fiscal meltdown and with funding costs rising and additional capital calls looming they still risk pushing the European debt crisis into overdrive despite a rescue deal that Dublin agreed with the EU and the IMF last year. Fellow bailout beneficiary Greece won a one percentage point cut from last weekend’s summit on the rate of interest it pays on its EU loans, meaning Kenny’s confidence that he can secure a similar deal at an EU summit on March 24-25 seems well placed. Jean-Claude Juncker, who chairs meetings of euro zone finance ministers, indicated a similar cut was on the cards on the EU portion of Ireland’s 85bn euros bailout, news agency Market News International reported. But that alone is unlikely to be enough to win round markets. “Ireland needs a mix of measures by the end of the month that make it clear to the market that it has sustainable debt levels,” said one source familiar with the negotiations between Ireland and its creditors – the EU, the IMF and the ECB. “That’s not on the table at the moment.” Driving Dublin’s determination for fresh concessions on the banks is an expectation that a new round of stress tests will reveal more holes in their balance sheets that the state will have
to fill when they are published at the end of March. Under the terms of the EU/IMF bailout, some 35bn euros was earmarked for the banks, brought to the brink of collapse through reckless property loans. Of this, up to 10bn was meant to be injected ahead of the stress tests to ensure that Bank of Ireland, AIB and EBS Building Society were capitalised above a minimum Core Tier 1 requirement of 10.5%. The remaining 25bn euros was meant to be a contingency fund. Kenny’s government, swept to power last month on a wave of anger over the country’s financial crisis, has delayed the capital injections until the results of the tests. Although Ireland’s banks have offloaded most of their risky commercial property portfolios via a state-run “bad bank”, rising mortgage arrears and climbing funding costs are expected to show a deterioration in their balance sheets. Estimates for how big a capital shortfall will be revealed range from 10bn euros up to the full 35bn euros.
Irish leader Enda Kenny will be hoping the stress tests of the country’s banks brings some good news for the embattled sector The chairman of nationalised lender Anglo Irish Bank Alan Dukes sent a chill through Dublin when he said last month a clean banking core would require 50bn euros in new capital. Ireland’s central bank, which is conducting the stress tests, dismissed Dukes’ predictions but there are concerns that tapping the 25bn euros fund less than six months into the bailout would trigger more rating cuts, boosting funding costs. “The problem with the contingency fund is that if you draw down any chunk of it then Ireland could suffer
serious downgrades which would raise serious questions about Irish debt sustainability,” said the source familiar with negotiations. The IMF has said if the full 35bn euros is used Ireland’s debt ratio will peak at 125% of GDP in 2013. S&P has warned it could strip Ireland of its last ‘A’ rating after the stress tests. Another spiral of downgrades would further raise the banks’ dependence on loans from the central bank and the ECB, which amounted to a jaw-dropping 187bn euros last month.
For twice-daily FTSE updates from Rensburg Sheppards, log on to www.ldpbusiness.co.uk
business diary Thursday, March 17 KPMG’s Liverpool office will be hosting an informal St Patrick’s Day drinks reception on Thursday 17th March for all KPMG alumni at Café Sports England on Stanley Street from 6pm. Any former mem-
bers of staff of KPMG’s Liverpool office who would like to attend should contact Hayley Carter on 0151 473 5213. Friday, March 18 David Murray will spend Sixty Really Useful Minutes on why market research is essential for your busi-
ness at the latest seminar in the series. The event, from 9am-10am, is free for Liverpool Chamber of Commerce members and £5 for non-members. Book online at liverpool chamber.org.uk Friday, March 18 The NHS is seeking companies with innovative products and services to treat heart disease, cancer or other
long-term conditions as part of its Smart Solutions for Healthcare programme. Find out more at a free roadshow at Daresbury Laboratory. The event runs from 9am to 1pm. For details see www.smartsolutions forhc.co.uk Tuesday, March 22 Knowsley Chamber of Commerce’s regular breakfast networking
event is being held at the Village Hotel, Whiston, from 8am-9.30am. It costs £12 members / £24 non-members, includes a light breakfast. To book and for more details, see knowsleychamber.org Tuesday, March 22 A networking lunch is being held at Hard Days Night Hotel from 12.15pm-2.30pm. The Liverpool Chamber of
Commerce event has active table networking followed by lunch. It costs £25 for members and £30 for non-members. Book online at www.liverpoolchamber.org.uk Wednesday, March 23 Entrepreneur and investor Imran Hakim – best known for the iTeddy on Dragons’ Den – will be revealing how businesses can
boost their chances of securing private investment at a seminar at Liverpool Science Park. For more details, see www.liverpoolscience park.co.uk Thursday, March 24 Liverpool Twestival – a Twitter Festival – will be held at Pan-Am, Albert Dock. To find out more, visit liverpool.twestival.com or @TwestivalLiv
16
Wednesday, March 16, 2011
LDP business .co.uk trading gossip ■
OUR rather more upmarket Daily Post colleague Mr Brocklebank will no doubt be most heartened to learn of the opening of a new Liverpool hostelry offering something a little more select. Based in Cumberland Street, Foxy’s claims it will be a “magnet for the more discerning seeker of cabaret style entertainment”. The venue, which opens later this week, also says it will “provide a warm and glittery welcome for customers who fancy a quiet cocktail, below, in a sophisticated setting”. However, the esteemed Mr B may have an attack of vapours when he discovers that on arrival he will be welcomed by one of Foxy’s “Vixen Hostesses” who will be “glamorously gowned and
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
the back page
Jeweller showing off its wares at their best
working day
Michaela Valentine, 44, is the showroom manager at David M Robinson jewellers in Liverpool One. She lives in Liverpool with her husband James. This is her working day. 6.30am: I wake up and put the kettle on to make a cup of tea for my husband and I shower and enter my dressing room. I like to take my time getting ready as I take pride in my appearance to ensure I look good for customers – I expect this from my team too.
ready to bring on the dancing girls/boys”. It’s enough to send the old boy’s monocle hurtling across the room. Alas, it all sounds a little too sophisticated for the Trading Gossip gang who are known to frequent some of the more basic establishments.
■
WE SAY well done to Knowsley Council for upholding standards of decency. This week it sent us a press release about a World War II bunker at Knowsley Industrial Park being converted for business use. Accompanying it was a picture showing various local worthies in front of said bunker. However, a short time later another picture was sent, taken from a different angle. It seems the first image showed a piece of graffiti in the background containing a word which may have some of our readers reaching for the smelling salts. Said the email from the press officer containing the second picture: “It has been drawn to my attention that there may be a naughty word written in graffiti on the last picture! So please find a more family friendly version attached.”
8am: We leave the house and my husband drives us both into the city where we arrive half an hour later. I kiss him goodbye until I see him late on in the evening and I meet the team for coffee to discuss the previous evening. 9am: We enter the showroom with our security guard and prepare the showroom for the day ahead. It can often take up to an hour to dress the windows and cabinets with stock. 10am: We open the doors to the showroom and we begin assisting customers – that’s advising on jewellery, repairs or liaising with our watch experts. Every sale is different and I particularly like my job when customers bring in precious jewellery or family heirlooms to the store – often they have fascinating stories. I’ve seen some unique pieces in my time. 11am: We’re ready for the day as customers come and go and I call a mid-morning meeting to advise the team on their roles and responsibilities for the rest of the day. Roles can be anything from stock-taking, cleaning or following up sales leads with phone calls. I then have an appointment with a good customer from Dublin. 12pm: It’s lunchtime, but usually for me that means a cup of tea on the go, or cheese and crackers at a push. We don’t have set breaks at lunchtime as there can be an influx in footfall to the showroom around this time of day. There’s the occasion where I will take a lunch break though, such as this week when a senior manager visited the store, or if I’ve clients popping in, then we go to Piccolino’s. 1.30pm: The afternoon business com-
Michaela Valentine has been store manager at David M Robinson for three years mences and we continue helping customers to find the right pieces of diamond jewellery for their special occasions. 5pm: A lady pops over from Heswall to see me about a piece from our Yellow Box Collection. The showroom then winds down and then I prepare to attend events such as wedding fares, store or product launches, or fashion shows of which
there are many every year.
as a good piece of steak.
6pm: I often have events to attend after the store closes, but tonight is clear and James collects me in the car and we head home for dinner. We spend some quality time together before we both make the evening meal. We enjoy cooking very much, especially in our new kitchen, whether it’s a bog-standard pasta dish or something more extravagant such
7.30pm: I love soaps and I particularly like documentaries, so much of the evening will be sat in front of the television with my diary on my knee planning the next day. 10.30pm: I retire reasonably early as days in retail can be long – we’re open late night tomorrow – so that means longer hours.