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5861.00 ▼ 62.69 THE FTSE 100 Index slipped back for its fifth day in a row after heavily weighted mining stocks were hit by fresh falls from volatile commodity prices. London’s blue-chip index lost 1%, or 62.7 points, to close at 5861 as weak sentiment was compounded by concerns over the eurozone crisis. Meanwhile, on Wall Street, the Dow lost 68.79 points, or 0.5 %, to close at 12,479.58, the S&P 500 lost 0.49, or less than 0.1 %, to end at 1,328.98, and the Nasdaq rose 0.90, also less than 0.1 %, to 2,783.21.
New private wealth firm opens up in city EXCLUSIVE by Alex Turner
LDP BUSINESS STAFF
alex.turner@liverpool.com
LIVERPOOL’S private wealth management market is facing a shake-up with the entry of Cheviot Asset Management, at the same time as Deutsche Bank moves some functions to India. Cheviot is opening its first regional office in the city, strengthening Liverpool’s reputation as the biggest UK centre outside London for the private wealth management sector. It has recruited eight people from
Deutsche Bank Private Wealth Management’s (PWM) Liverpool office – it says the eight were each approached separately – and is this week launching its operation in St Paul’s Square. Deutsche Bank is recruiting for its PWM operation in Liverpool and elsewhere, but is also shifting some bank office functions from the Royal Liver Building to Bangalore, India. It is understood this will affect a small number of roles in Liverpool. Deutsche Bank declined to comment, but Cheviot’s chief executive Michael Kerr-Dineen was not quiet about extolling the virtues about his firm’s “back to the future” model.
He believes Cheviot’s independent partnership structure offers the most suitable model for wealth management – in contrast to the trend of consolidation that has seen many firms move away from that model after being taken over by global banks. That includes Investec’s purchase of Rensburg Sheppards, Deutsche Bank taking over Tilney, and Morgan Stanley’s acquisition of Quilter. Mr Kerr-Dineen said: “Everyone promises high-quality service, but in practice the corporate model mitigates against that. “When you are under the corporate structure, there’s an enormous
amount of overt and covert pressure to use the in-house products. “The nature of a top-quality private practitioner is they live and die for their clients’ interests. They will move to where the pressure doesn’t exist.” Mr Kerr-Dineen speaks from experience, having launched Cheviot five years ago by leading 92 people out of UBS. He said: “Within the wealth management community in Liverpool, there’s not a huge amount of turnover. It’s a very stable ship. “In part, the reason is because there
MARKET REPORT: PAGE 15
Bus trips for cruise visitors
inside Betfred on course to take over Tote WARRINGTON bookmaker Betfred has made a dash for the finish in the race to buy state-owned bookmaker the Tote. PAGE 2
Dolphin saved SOUTH Liverpoolbased retailer Dolphin has been bought out of administration by industry rival S&T Audio. PAGE 5
CONTINUED ON PAGE 4
A SHUTTLE bus service is being launched to help cruise ship passengers explore the city. The hourly free service will take visitors from their ships to the Albert Dock, Liverpool One and Victoria Street. The service has been organised by the Albert Dock Business Tenants Association, Liverpool One and the City Central Business Improvement District. Tenants Association chairman Jeremy Roberts said: “This bus From left, Kevin Roberts, from Liverpool One; Ged Gibbons, of the City Central Business Improvement District; link helps to ensure a and Guy Lawrenson, of the Albert Dock Tenants Business Association Picture: ADAM KENRICK big Liverpool welcome.”
BUSINESS EDITOR: BILL GLEESON 0151 472 2319
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BUSINESS REPORTER: NEIL HODGSON 0151 472 2451
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When exceptional people come together, great things happen. When Weightmans and Mace & Jones merged to become one firm on 1 May something special developed. Weightmans and Mace & Jones. Together we are stronger. Find out more at www.weightmans.com
BUSINESS REPORTER: PETER ELSON 0151 472 2502
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Bid for the Tote intensifies as race enters final furlong by Alex Turner
LDP BUSINESS STAFF
alex.turner@liverpool.com
WARRINGTON bookmaker Betfred has made a dash for the finish in the race to buy state-owned bookmaker the Tote. The £3.5bn-turnover company yesterday set out the terms of its bid for the Tote, saying its offer was worth close to £200m in cash. It is believed to be among the final two, up against a consortium led by ex-Liverpool FC and British Airways chairman Sir Martin Broughton. Betfred, which has more than 830 shops, has been one of the favourites for the long-running race. It said it supported the Government's pledge that 50% of the net proceeds from the sale would be put back into the racing industry. Betfred added it would make a contribution to the racing industry of £11m in 2012, and would make a contribution of at least £9m to the industry each year after that. Fred Done, Betfred’s executive chairman, said: “Betfred is the best
possible business partner for racing, as it is best placed to unlock the value of the Tote. “We have a 40-year track record of delivering growth and creating jobs. We want to buy the Tote because we want to grow and develop all of its component parts. And, in the long term, I believe the pool business will be the most important of those.” The company said it expected a decision by the Government was “imminent”. Sir Martin’s investment vehicle, Sports Investment Partners (SIP), which is backed by stockbroker Cenkos, responded to Betfred’s announcement by briefing Reuters that it would offer the horseracing industry a 10% stake in the business and offer “racing-friendly investors” a further 20-25% shareholding. The industry would also be entitled to two seats on the board of the listed company, while SIP would commit to an £11m annual contribution to the horseracing industry. It also anticipates floating the Tote on the Alternative Investment Market if it succeeds with its bid.
Betfred’s Fred Done – believes his bid will ‘unlock’ the Tote’s value
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Martina Navratilova Richard Krajicek Martina Hingis Greg Rusedski
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Fuel firm expects record results FEEDS and fuel group NWF is expecting another record year, after enjoying a strong spring. The Cheshire group said profits in its animal feeds division would be “significantly ahead of expectations”. The cold winter benefited NWF’s household fuels division, though some of that benefit was offset by the “unusually warm” April. Chief executive Richard Whiting said: “NWF has again demonstrated the robustness of its business with another record result anticipated for the full year. “The continued strength of the group delivers an effective platform for continued development, and we look forward with confidence.”
liverpooltennis.co.uk
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Wednesday, May 18, 2011
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Record revenues in the pipeline as online plumbing firm soars Tony McDonough meets ROYDEN EVANS, managing director of PlumbNation IT IS Royden Evans’s ambition to grow PlumbNation into the UK’s largest online supplier of plumbing and heating products. And if its growth so far has anything to go by, it’s not an unrealistic target. Evans started the Wirral-based business in April, 2007, and had a first-year turnover target of £1m. In the first 12 months, PlumbNation actually turned over £2.2m. Last year it was £8m, and this year that figure is projected to grow to £11m. “In the next three years, I want to grow that to £20m,” said 38-year-old Evans, who is managing director. “We are continuing to invest significantly in our e-commerce platform with a new-look website due to launch in the next few weeks aimed at further improving the customer experience.” Based in Bromborough and employing 11 people, PlumbNation is an e-commerce company whose website offers around 15,000 products. Most of its customers are domestic – the “end use” as Evans puts it – with a small core of trade clients, too. It also employs an experienced trio of salespeople who take orders over the phone and can advise on technical specifications. Orders are split 50/50 between the website and the telephone. Evans said: “We want to double the number of products we offer. “When we started in 2007, we very much specialised in heating products – boilers, radiators, et cetera – basically everything that could heat your house and all the parts, too. “We then rolled it out into plumbing equipment – everything you
q&a Age: 38 Highest educational qualification: GCSEs Biggest achievement in business: The success of PlumbNation Biggest regret: Not starting my own business years before Best advice received: It’s nice to be important, but even more important to be nice Main unfulfilled ambition: To become the largest e-commerce supplier in the UK
could need for your bathroom.” PlumbNation stores a limited number of small parts which can be couriered out, but mostly it uses a number of national distributors with whom it liaises to get the stock out to the customers. It also arranges for goods to be dispatched direct from manufacturers. “We work with call centres and once we have placed an order they would typically come back to us within an hour with a delivery date,” added Evans. “We are pushing to add more unique products to our portfolio. “For example, we currently supply every make of boiler there is. We want to do that with every category – pad them out to the max – and we are still some way from that. “When we started in 2007, we didn’t have many competitors, but since then the market has just exploded. “However, I think what we offer is unique in that we supply the full basket – not just a boiler but everything that goes with it. “So there are a lot more products we want to get onto the site. We have to work hard just to maintain the current portfolio because things can become obsolete. “In the coming months, we are redesigning the website to make the home page more offer-driven. “Now we have pushed into bathrooms, we are looking to address products in different ways – asking ‘is this a lifestyle product?’ for example. “We are also going to incorporate better search filters so that customers can filter things down using different categories like price. Evans was born in Chester and growing up he “moved around a lot”, living in different parts of Wirral and Cheshire. His passion for plumbing products came via his stepfather, who was himself a plumber. Evans said: “I loved working with dad and took any chance I could to do so – working weekends and school holidays. When I was 16, I started work with Plumb Center as a management trainee. Thanks to working with dad, I already had a great knowledge about a lot of the products they were supplying. “I knew how things were installed and I wanted to go into the selling of the products.”
PlumbNation managing director Royden Evans – got the plumbing bug as a teenager The traineeship was three years, but Evans ended up staying with Plumb Center for nine years. He worked in a variety of roles – on the trade counters, a sales rep, sales manager and eventually branch manager. “I learned an awful lot while I was there,” he said. Evans eventually went to work for the Travis Perkins group as a key accounts manager, and it was here the idea for PlumbNation first started to germinate. He added: “I was looking after the 50 biggest accounts they had in the North West. “We would have quarterly sales meetings and I observed that a number of my colleagues had internet customers on their ledgers. “There were none in the North West so I decided to delve deeper into it. I looked at products and how much they were selling them for. “I spoke to a few friends and contracts I had in the trade, too, and I
LiverpoolCommercialDistrictBIDBallot 29thApril–27thMay. VOTE
YES
realised there was a market there. Starting the business was quite scary at first – it was a 50/50 venture with a guy who already owned a plumbing business.” With the support of his wife, Emma, Evans remortgaged his house to help fund the start-up of the business. “We said we would be happy if we turned over £1m in the first year – and we turned over £2.2m,” he said. Evans bought out his partner last year and is now the sole owner of PlumbNation. During 2010, the website attracted more than 1.4m visitors – compared to 772,000 the previous year and Evans is determined to maintain the rapid growth. He said: “We moved offices in December, 2009, buying a 4,000 sq ft warehouse. “It had a very small office and now we have expanded that space. We currently employ 11 people and we are looking to grow that.”
VOTEYESFOR AMOREVIBRANT COMMERCIAL DISTRICT.
He and Emma have two children – Cerys, eight, and Conor, five – and says “my family is everything to me”. He is a Liverpool FC supporter and likes to get in a round of golf, but admits he puts many hours of his time into the business. And that commitment certainly seems to be paying dividends. PlumbNation has been shortlisted in the Small Business of the Year category in the Wirral Investment Network awards. Evans believes creativity is a key part of success in business, and he has made sure that philosophy is part of his management approach. He said: “I think as a boss I am extremely flexible, honest, open and very supportive. “I am a creative person and that is the rule among everyone here. Most of the people who were with us in the beginning are still here. “We have led the way in terms of innovation in our sector.”
Yourdistrict. Yoursay.
www.liverpoolcdp.com/BID
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LDP business .co.uk Advertising Feature LCDP
Vote for the benefits of real change
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LIVERPOOL’S INVESTMENT SPECIALISTS
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Logistics group completes £120m share offer
Ken Smith, associate at Buttress Fuller Alsop Williams architects, explains why a successful BID ballot is part of the grand design for the city’s future
AS WE approach the final weeks of the ballot on Business Improvement District status, my mind turns to another successful worldwide export from the shores of North America. Former US president Bill Clinton once said: “The price of doing the same old thing is far higher than the price of change.” Now, Bill may have had his shortcomings, but it’s difficult to doubt the validity of this sentiment. If commercial sense prevails and the BID ballot returns a positive vote next Friday, then the implications for the Commercial District could be momentous. Ken Smith In real terms, the transition from voluntary partnership support to BID status will be a crucial one, and its impact should be felt almost overnight. Achieving BID status will generate additional funding of around £3m over the next five years, an incredible sum in the present economic and political climate, and the kind of figure that can deliver real improvements where they are needed most. That money will be sourced from a small levy charged to landlords and tenants, who will then have a clear say in how and where it is spent. Buttress Fuller Alsop Williams have a reputation for creating appropriate and welldesigned projects that deliver value for money. We apply this same founding principle to the needs of the Commercial District, which is why we’re fully behind the BID application. As construction professionals, we tend to focus more on the built environment issues that are within the scope of the BID application and consider that building owners will be encouraged to upgrade and better maintain their own property if they can see tangible improvements to their surroundings. Two of the projects we are working on in Liverpool, at the Cunard Building and Albert Dock, have, as part of their brief, the desire to improve and maintain their external appearance not simply for their own benefit or as a necessity, but as a response to the improvements and changes that are being undertaken to their immediate surroundings. The alternative, where the partnership’s voluntary benefactors decide enough is enough and are forced to withdraw their support, leaving us to rely on dwindling council funds to support environmental, marketing and maintenance initiatives, does not appear on our radar. We want the Liverpool city region to maintain its burgeoning reputation as a prime site for inward investment and development. For this to happen, the city must have a strong, progressive commercial core that delivers real opportunities to enterprise and provides a compass bearing for the rest of the region. President Clinton was right. We must vote for the benefits of change today or count the wider costs of stagnation tomorrow.
■ BID backed: Page 5
A property deal involving William Stobart and Andrew Tinkler has come under the spotlight
STOBART Group has completed its £120m share offer which will fund its restructuring and expansion strategy. Around one-quarter of the 76m shares have been taken up by qualifying shareholders, with the remainder taken up by investors, it announced to the stock market yesterday. The move requires approval at Stobart’s general meeting today, with the shares expected to begin trading tomorrow. The logistics group, which employs about 1,000 staff in Warrington and Widnes, has faced a rare period of difficulty in the last quarter. Its share price has fallen more than 20% since early February while last week it was forced to make a robust denial of national newspaper reports that it was under investigation by the Financial Services Authority. The allegations centred around plans to buy back a property portfolio from two senior executives – chief executive Andrew Tinkler and chief operating officer William Stobart – which the pair acquired from the company four years ago.
Merseyside firm wins Heathrow roof deal by Tony McDonough
LDP DEPUTY BUSINESS EDITOR
tony.mcdonough@liverpool.com
A HAYDOCK factory will make the cover for the roof of the new £2.2bn Terminal 2 at Heathrow Airport. The airport’s old Terminal 2 building closed in 2009, and the construction of its replacement will create 35,000 jobs. Owner BAA made the announcement as Transport Secretary Philip Hammond visited the site of the development which will open to passengers in 2014. Cover for the terminal’s roof is
from the Merseyside factory of Kalzip, while the steel work is being manufactured, as part of a £48m contract, by Watson’s Steel Structures at its factories in Thirsk, in North Yorkshire, and Bolton, Greater Manchester. The terminal’s mechanical and electrical modules are being developed by CHt Manufacturing, in Wolverhampton. At times of peak activity, the terminal will have as many as 5,000 people working on it. BAA chief executive Colin Matthews said: “At a tough time for the economy, Heathrow’s modernisation programme is creating
thousands of jobs throughout the UK. “As the country’s only hub airport, Heathrow is vital to the UK economy. It supports more than 75,000 on-airport jobs and thousands more throughout the UK depend on Heathrow’s connections to the rest of the world.” Kalzip is a subsidiary of steel giant Corus and is principally involved in the production and sale of aluminium building products. In its last published accounts for the year ending March 31, 2010, Kalzip reported a pre-tax loss of
£17,770 against a profit of £1.13m for the previous year. Turnover also fell from more than £34m in 2009 to just under £25.5m. The company blames the current economic environment for the downturn, but believes its future is reasonably secure. In its annual report, it said: “The directors believe the company’s position to be satisfactory, especially given that the company’s current assets exceed its current liabilities by £6.1m. “The directors expect a loss for the year to March 31, 2011, given the current challenging market conditions.”
Vision welcomes Cheviot move
Green grumble
CONTINUED FROM PAGE 1
THE manufacturers’ organisation, EEF, reacted with disappointment to the Government’s decision to sign up to significantly more ambitious targets to reduce carbon emissions. It says that, in the absence of “convincing evidence of any appetite in the rest of Europe to make such a move, this risks damaging manufacturing competitiveness”. EEF North West region director, David Ost, said: “On its own, this is a bad decision for manufacturing, so the Government must move quickly to address the competitiveness concerns faced across manufacturing, as well as energy-intensive industries.”
has been a lot of similarity among the firms in Liverpool. There’s not a real alternative.” He added: “Our growth plans for Liverpool are very ambitious. We are already experiencing fast organic growth, which I believe is aided by our partnership model, which
frees up staff from any conflicts of interest. This makes it an attractive proposition for staff and clients alike.” Max Steinberg, chief executive of economic development agency Liverpool Vision, welcomed Cheviot to the city. He said: “Cheviot’s decision is recognition of the pre-eminent position Liverpool holds with
regard to wealth management expertise, and is a vote of confidence in the city’s long-established track record. “We are delighted that Liverpool continues to attract businesses of this calibre – it sends out a very positive message to other professional services organisations seeking to relocate or expand into new markets.”
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LDP business .co.uk
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Pre-pack deal saves music retailer from scrapheap by Tony McDonough
LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com
MUSIC retailer Dolphin has been bought out of administration by industry rival S&T Audio. Dolphin has an online operation in Speke, and a shop in Liverpool city centre. At its peak, it achieved an annual turnover of £10m, but became a victim of the recession and consequent downturn in consumer spending. S&T Audio operates nine PMT (Professional Music Technology) superstores nationwide and PMT Online. In the year to April, 2010, PMT had annual sales of £16m. Dolphin was founded in 1999 by University of Liverpool students Rob Williams and Jason Tavaria. The company grew from a bedroombased student enterprise into one of the leading players in its field. It was hit by tragedy two years ago when Mr Williams fell to his death while on a snowboarding holiday in Switzerland.
Charles Macmillan, partner and head of corporate recovery at Manchester-based Beever and Struthers, was appointed by Dolphin to act as administrator and secured the sale of the business via a pre-pack administration. He said: “I’m obviously delighted to save a great many valuable jobs by achieving this sale in what are very difficult times, and wish S&T every success in its future endeavours with Dolphin. “This acquisition is a major boost to the PMT online offering of S&T Audio, and will increase its already impressive market share.” Simon Gilson, managing director at S&T Audio, said: “We are very excited by this opportunity. As with our own beginnings 20 years ago, this business was built from scratch by two friends from nothing into a major force in music retail. “It is our intention to build on the strengths of Dolphin and capitalise on the future possibilities of what is now the largest musical instrument retailer in the UK.”
Park Court
To Let Industrial / Trade units from 3,000 - 4,500 sq ft Sherdley Business Park St Helens
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LIVERPOOL’S INVESTMENT SPECIALISTS
Founder Jason Tavaria, at Dolphin’s warehouse in Speke Picture: ANDREW TEEBAY/ at220307edolphin-1
Chamber backing the BID FIRMS within Liverpool’s central business district are being urged by Liverpool Chamber of Commerce to say yes to the proposed Business Improvement District (BID). Liverpool Commercial District Partnership (LCDP) is balloting businesses in the area on the proposal, with the vote closing on May 27. Jack Stopforth, chief executive of Liverpool Chamber, said: “The Chamber’s board is backing this proposal. “The additional revenue raised by the proposal will bring an additional investment of £2.7m into the city’s central business area.” If successful, the BID will replace LCDP, although covering a slightly larger geographical area. A majority yes vote is required to bring a BID into force.
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news
Firms added to Regional Business Awards shortlist by Alex Turner
LDP BUSINESS STAFF
alex.turner@liverpool.com
THE second half of the shortlist for the 2011 Regional Business Awards is announced today, adding seven companies to the list of potential winners. The winners of nine award categories will be unveiled at the awards dinner, which takes place on Thursday, June 23, at Liverpool’s Anglican Cathedral. The KPMG Business of the Year – which has previously been won by outstanding firms including Home Bargains owner TJ Morris, Cammell Laird and Princes Foods – will be fought out between logistics group Stobart, vouchers and gift card firm Park Group, and Skelmersdale-based Hotter Comfort Concept Shoes. The footwear manufacturer is the only company this year to be shortlisted for two awards. Hotter is up against Real Good Food Company for the Liverpool Chamber of Commerce Exporter of the Year Award. The pair will be looking to follow in the footsteps of last year’s winner, AEV, the Birkenhead manufacturer of elec-
trical varnishes and resins. Competing for the Liverpool John Moores University Knowledge Business of the Year Award are three very different technology firms. AIMES Grid Services is at the forefront of the city’s attempts to keep pace with IT services, in particular off-site server hosting and disaster recovery. Human Recognition Systems develops systems that recognise people by scanning their hands or their eyes. They are joined by MerseyBIO firm Redx Pharm, which develops new drugs based on existing compounds. Journalist-turned-dancing sensation John Sergeant will be hosting the event on behalf of the Liverpool Daily Post, a title he used to work for as a young reporter. Mr Sergeant has previously worked as a politics reporter for the BBC and ITN, and famously withdrew from the 2008 Strictly Come Dancing after a storm of protests about his success in the competition. ■ TO BOOK places at this year’s event, please call 0151 472 2422. Single places cost £95 plus VAT. A table of ten is £950 plus VAT.
Independent Financial Advisers in your area Anglesey Security Financial Services
Ty Llwyd, Llanfaelog,Ty Croes, Anglesey LL63 5TY Contact: Richard Jones Email richard@security-financial.co.uk Phone: 01407 811268 Mobile: 07710 468970
Denbighshire Vale Financial Services
info@valefinancialservices.com Studio One,Town Hall, Crown Lane, Denbigh LL16 3TB Tel: 01745 814962 Fax: 01745 814446 Contact: Glyn B. Jones info@valefinancialservices.com
Liverpool Rensburg Sheppards Investment Management
The Plaza, 100 Old Hall Street, Liverpool L3 9AB. Tel: 0151 227 2030. Fax: 0151 227 2444 Email: paul.brokenshar@rsim.co.uk Website: www.rensburgsheppards.co.uk Contact: Paul Brokenshar
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Advertising Feature
The 2010 Knowledge Business award winners were Tech-X, with associate research scientist Jonathan Smith here receiving the trophy from LDP Business Editor Bill Gleeson
Independent financial advice
Should you draw or defer your pension? RICHARD JONES, of Security Financial Services reports he was discussing retirement with a divorced lady who, on turning 60, was worried about her income when she retires. He explains: “She decided to continue working until she is 65, and has deferred taking her employers’ pension to allow it to accumulate. “We also discussed deferring taking her state old age pension, too. The decision was made to defer it. The thought process was – is it worth taking the pension now and saving the income, or defer taking it in order to benefit from a higher income at age 65?” Richard explains when you reach state pension age you can draw your pension even if you are still working, and regardless of how much you earn. Or you can choose to defer drawing your pension so that you can
Richard Jones – there is no time limit to how long you can defer your pension receive a higher pension or a lump-sum payment at a later date. He says: “The state pension is taxable, so if you are working and paying
tax, your tax code will be adjusted to take into account the amount of pension you receive. “Once you reach state pension age, you don’t
have to pay NI contributions. Your pension will be increased by about 10.4% for each year you do not draw it. For example, if you defer your pension for five years, it will be increased by just over half. “Alternatively, instead of receiving a higher pension, you can choose to receive a lump-sum payment. This will be calculated based on the amount of pension you have given up and an interest rate of at least 2% above the Bank of England base rate.” Richard says if you defer your pension, it works out as 1% extra for each five weeks you defer. So if you put off drawing your pension for less than a full year, you can receive an increased pension (as long as you put off drawing it for at least five weeks) or you can receive your pension backdated to the time when you could have first claimed it (but without any interest payments).
And he stresses that you do not have to be working to defer your pension and the basic, additional and graduated pensions are all increased in the same way, but you cannot gain increases to any addition you receive for a dependant husband or wife. Richard adds: “There is no time limit to how long you can defer your pension. “If you do start drawing your pension, you can change your mind and defer it instead, but you can only do this once. “If you are a married man and you and your wife are already drawing pensions based on your contributions, you may need her consent before deferring your pension as she will have to give hers up too.” ■ SECURITY Financial Services is authorised by the Financial Services Authority.
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Wednesday, May 18, 2011
LDP business .co.uk
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Stakes are raised as The Apprentice returns to our TV screens
Matt Johnson LORD SUGAR is back with a bang, as millions of viewers flocked to BBC One for the beginning of the seventh series of The Apprentice last week.
With an estimated 7.8m viewers for the first episode – over 1m more than the primary episode of season 6 – it’s safe to say that the nation’s appreciation for the boardroom backstabbing is as strong as ever. This year’s contestants are the usual mix of brashly confident 20 and thirty-somethings with some impressive qualifications under their belts. They include one candidate who has been trained by no less than 12 Nobel Peace Prize winners. Previous series have seen the winning candidates granted a £100,000 executive position within
one of Lord Sugar’s existing businesses. However, the stakes are a little different for this year’s series. Taking cues from the Dragons’ Den, the successful contender of the new series stands to gain a £250,000 investment into the start-up business of their choice. Such a generous cash injection is likely to stand the right person in very good stead for the future. Creating a new business requires a very different set of skills than step-
ping into an executive role, and with such high stakes for the man himself it will be interesting to see the different characteristics Lord Sugar will be looking for in a future business partner than he was for a potential employee. So far, we’ve seen teams Logic and Venture battle it out over fresh produce and mobile applications, with bumbling boys’ project manager Edward the first to go and Alex Britez Cabal hot on his heels. With an already interesting array
‘Creating a business requires a different skill-set’
of tasks under their belts just two episodes in, it will be fascinating to see what future challenges the winning candidate will need to overcome to claim their prize. And even more interesting to see which of the hopefuls will make it all the way to: “You’re hired.” For the record, my money is on Susan Ma or fast-talking Jim Eastwood. But with the current score standing at 2-0 to the girls, and 10 boardroom encounters yet to go, it’s still anyone’s game. ■ MATT JOHNSON is chief executive of Mando Group
Cafe pair complete £10,000 terrace at Woodside site WIRRAL cafe bar operator Home has completed a £10,000 terrace at its outlet at Woodside ferry terminal. The company is run by husband and wife team Ben and Polly Harrison, and it also trades from a site in Oxton Village. Mr Harrison says the terrace offers “spectacular” views of the Liverpool waterfront across the Mersey. To celebrate, Home, which opened the venue in 2008, is distributing a corporate loyalty card targeted at the thousands of office workers and professionals in the surrounding area. Mr Harrison said: “A huge amount of investment has taken place at Woodside Ferry Terminal and we believe we now have one of the most stylish cafe bars in Merseyside,” he said. “Certainly, the views we offer diners here are spectacular. “Birkenhead is crying out for this kind of venue and we want to urge local workers and families to visit us and see our terrific facilities, including our new terrace, and sample our wonderful menu.”
Ben and Polly Harrison at their Home outlet, at Woodside ferry terminal
Picture: JAMES MALONEY/ jm160511home-3
Ex-head of law firm to run Professional Liverpool by Tony McDonough
LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com
PROFESSIONAL Liverpool (PL) has appointed the former managing partner of law firm Bermans as its chief executive. John Hall will take on the role for three days a week. His appointment comes a few months after the departure of former full-time PL chief executive Mark Chadwick. In recent weeks, Mr Chadwick has launched his own rival organisation –
Liverpool City Region: Business & Professionals. PL is also appointing former Liverpool Vision chief executive Jim Gill as its chairman. As managing partner of Bermans, Mr Hall helped grow the firm from a turnover of £100,000 to more than £5m. It now has offices in Liverpool, Manchester and Glasgow and recently advised Liverpool FC manager Kenny Dalglish in his contract negotiations with the club. Before retiring from Bermans, Mr Hall was a specialist in commercial litigation, acting for businesses including HSBC and Carlsberg Tetley.
Mr Hall will initially be based in Professional Liverpool’s office in the Foresight Centre at the University of Liverpool. PL promotes the Liverpool city region as a centre of excellence for professional services.. The organisation currently boasts a membership of more than 70 with an aim to expand to more than 100 over the next 12 months. Mr Hall said: “I have a number of initial objectives at Professional Liverpool which will include increasing membership to ensure that we continue to deliver what members want. “To this end, I will strengthen and add variety to our calendar of events.”
John Hall – aims to strengthen calendar Picture: JAMES MALONEY/ jm170511jhall-2
Further volatility in house market HOUSE prices rose by 1.2% during March as the property market remained volatile, figures showed. The increase left the average home costing £205,565, slightly lower than it started the year, after prices fell by 1.4% in January and remained unchanged in February, according to the Department for Communities and Local Government (CLG). The current pattern of house prices rising in some months and falling in others is typical of a market that is trading sideways, with low transaction volumes. The quarter-onquarter change, which is often seen as a smoother indicator of market trends, showed property prices falling by 0.5% during the three months to the end of March, compared with a 0.4% drop during the three months to the end of December. Annual house price growth remained in positive territory, with property values 0.9% higher than they had been in March, 2010. Howard Archer, chief UK and European economist at IHS Global Insight, said: “The CLG data, showing a marked rebound in house prices in March, do not materially alter our view that house prices will lose ground over the coming months. “House prices are notoriously volatile from month to month and from survey to survey. We still believe that house prices will trend down gradually overall through the rest of 2011 and the early months of 2012.”
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Wednesday, May 18, 2011
LDP business .co.uk Bill Gleeson Saatchi’s idea of free shares for all is bad for Britain EXCITEMENT is mounting in anticipation of a possible sale of the Government’s stakes in Royal Bank of Scotland and Lloyds Banking Group. A couple of thinktanks have put forward radical ideas (aren’t all think-tank ideas radical?) for how the Government can best dispose of the shares. Part of the problem is that there are an awful lot of nationalised bank shares. Selling them all at the same time would have the effect of dampening the share price, thereby reducing the return to the Government. One suggestion to get round this problem comes from the rightwing think-tank Centre for Policy Studies. In a study chaired by Conservative peer Lord Saatchi, the think-tank suggests granting the shares to all taxpayers. This would have the effect of placing billions of shares in the hands of millions of small shareholders, who would then release them to the market when it suited them over many years. Some would undoubtedly hold onto them for decades. The CPS estimates the share giveaway would be worth up to £1,000 per person. Those receiving the shares would receive any dividends in the normal way, but, should they decide to sell their shares, the Treasury would recoup from the proceeds the original cost of buying the shares in the bank bail-outs, which was 51p a share for RBS and 74p for Lloyds. Lord Saatchi, a former Conservative Party co-chairman, said: “We gave the Government our money to invest in the banks. If there is a profit on our investment, that is our profit.” The proposal is similar to one tabled in March by Centre Forum, the Liberal Democrat thinktank. The problem with Lord Saatchi’s proposal is that any gain in the capital value of the shares would
end up in the hands of those shareholders, not the Government, which could undoubtedly use the money to reduce Britain’s trillion pounds of national debt, or build a few more schools and hospitals. One advantage of Lord Saatchi’s proposal is that the City will miss out on an estimated £1bn in fees that would otherwise accrue from the traditional sale route. The corporate finance advisers, bankers, lawyers, accountants, underwriters and brokers promoting the deal would have to find some other way of earning a crust. INFLATION continues to soar, according to figures out yesterday. I say “soar”, but those who remember the 1970s may feel that, at 4.5%, the Consumer Price Index remains firmly under control. Nevertheless, it remains stubbornly above the Government’s upper target limit of 2% and heading in the wrong direction. It has led Bank of England governor Mervyn King to warn against premature action to raise interest rates. Early action could harm the recovery of the UK economy. What puzzles me is why it is that the UK seems so out of kilter with the other major economies in Europe. Despite being exposed to similar global sources of inflationary pressures such as oil, commodity and food price rises, their inflation rates remain much lower and they are enjoying significantly better economic growth rates. One obvious difference between the UK and the rest of Europe is the hike at the start of the year in our VAT rate from 17.5% to 20%. The Governor is right. The UK economy is precarious and nothing should be done to jeopardise its tentative growth path. Britain’s bank rate shouldn’t rise for many months yet.
No longer a jo
Recruitment firms are looking to add value to the selection process. Alex Turner reports FRIEDRICH NIETZSCHE did not often comment on the labour market, but his oft-quoted thought “what does not kill me, makes me stronger” could be adopted as the motto of recruitment agencies. Those that are still operating anyway. The recession saw off the firms that were not on a firm footing at the end of 2007 – often small, young operations which had sought to benefit from the fluid job market of five years ago. “How did other companies cope? They didn’t. There were a lot of construction-related recruitment companies which went out of business,” said Mark Parish, managing director of St Helens agency GPW Recruitment. “Recruitment is very much a sales industry. Four or five years ago, it was quite easy for someone with commercial acumen to set up as long as they had a sales ability. They could find work as long as work was there. “Two years ago, when the recession kicked in, it wasn’t as easy to do that.” GPW called on its experience over four decades as well as its size – it had a turnover of more than £20m going into the downturn – to get through the lean times. It also had solid relationships within niche markets, such as Rolls-Royce, Getrag Ford and Goodrich, within manufacturing, and Galliford Try and Carillion in the construction sector. Mr Parish said: “Construction was one of the hardest-hit sectors, as was manufacturing, especially automotive. “It was down to the relationship we had with our clients. We have strong relationships with the clients, there’s always one skill-set they can’t get hold of. “They need a very quick turnaround when they have a job on the site. They can’t fill it themselves quickly. “We deal with both permanent and contract recruitment. Back of 2008, into 2009, the permanent work almost came to a dead end – but other divisions managed to flourish. “We were very pleased that we continued to be profitable. That was a result of our market focus. “For example, the power generation sector will never be hit by recession. We focused our attention on those key sectors to weather the recession. “The hardest-hit sector was the commercial division. No-one wanted to recruit the support staff, the admin staff. It just went completely dead. It’s just started to improve now.” Ceri Hoult, business manager at Reed, in Liverpool city centre, believes they benefited from the company’s stability and diversity. She said: “We noticed a lot of competitors fall by the wayside. We are a large company, a cash-rich company. A lot of other companies really felt the hit. “We have got five different specialisms in Liverpool and more than 30 across our branches. “A lot of our specialisms are completely untouched by other agencies, because they don’t have the resources to do that. “It’s a massive advantage.” The agencies that have survived have
GPW Recruitment has set up a Rugby League recruitment division, which works with current players to plan their future careers. They arranged for St Helens star Paul Wellens, inset, and below, to spend time in St Helens Council’s press office
widened their offer – adding areas of specialism or adding services, and sometimes both. “The terminology ‘recruitment consultant’ is more suitable now,” said Helen Cornah, operations manager of Birkenhead agency Red Rocks. “In the past, it was more about finding the person, now it is more of a consultative process. “We can manage the process for them. As a seamless extension of their HR department, we have to look at their business plan. “Five years ago, recruitment was very candidate-led. There were a lot of jobs out there. The clients were a little more flexible. “Now the clients expect the job specification to be matched because the job market is so open. “Clients want best value for money and they want added services, like testing candidates or maybe doing inductions for them.” Ms Hoult, from Reed, agrees that the role of a recruitment agency has changed over the last few years. “It’s a lot more consultative then it has
‘We focus attention onto the key sectors’
ever been before,” she said. “The quality of service is crucial. We try and differentiate ourselves on our service. “People think we are huge, but we operate on a local level. We all know the area and the local market. Our services, our consultative services, are different to any other agency.” She is encouraged by the continued demand from companies who keep using the agency. “Ultimately, companies see the benefits of using us,” she added. “They are being inundated with hundreds of CVs, sifting them, checking their eligibility to work. “It’s not only just about selecting the candidates and the interview process, eligibility to work is a huge issue for clients as well as verifying accreditation. “We do offer an in-depth selection process. We do face-to-face interviews twice before we send them to interview. “It’s quite a lot of work if you don’t use an agency.” The latest monthly update of unemployment figures will be published today, which will show the extent to which the private sector has been able to absorb the increasing numbers of people leaving public sector roles.
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Wednesday, May 18, 2011 IN ASSOCIATION WITH
the big feature
LIVERPOOL’S INVESTMENT SPECIALISTS
ob for the boys
Reed’s Ceri Hoult has seen a significant increase in demand from the private sector Picture: JAMES MALONEY/ jm170511ldpbiz-5
Taking a fresh look at the right recruitment process The agencies are seeing more businesses recruiting and progressing plans to recruit in the next few months. Ms Cornah, from Red Rocks, said: “From a branch point of view, we are seeing a more positive outlook, with companies looking to hire. “My consultants are working with about 30 companies at a time that are looking to recruit in the next three months. “In the FMCG, construction and pharmaceutical industries, it’s starting to move now – especially since April with the start of the financial year. GPW’s Mr Parish is seeing similar changes – although there is evidence of companies looking to take advantage of the candidate-rich market – and is getting his company ready for a sustained improvement. He said: “The commercial side is starting to come back, but because the local government have shed so many staff there’s an influx of candidates. A lot of companies are trying to do it themselves and looking at the local papers; there are definitely more vacancies coming through. “We are looking to expand over the
next 2-3 months. We are looking to recruit five apprentices from the St Helens Chamber scheme and four recruitment consultants, in our technical, construction and manufacturing divisions. “The outlook for the next 12 months is better. We are in good shape. We have got a strategic plan and we are looking for decent growth this year.” Reed is also starting to position itself for increased private sector demand. Ms Hoult said: “We are probably still slightly below 2006/07, especially 2007. But, at the same time, we are growing in terms of our client base. “Public sector has taken a huge hit but private sector is increasing massively. “We have no expectations for our public sector clients, and we supply to one of Merseyside’s biggest public sector clients, Merseyside Police. “But private sector is growing in all areas, especially within IT, scientific and HR. “By the end of the year, we are hoping to have more clients on our database than we have ever had, and we will soon be expanding the office.”
‘We are growing in terms of client base’
THE narrow recruitment process has widened in recent years with a number of companies developing services that add value to the selection process. They include Liverpool-based assessment and coaching firm Iceberg Consulting and talent consultants Augment, in the Wirral. Iceberg’s managing director, Simon Kerevan, said: “It’s a candidate-rich environment out there, so you need to understand what you are looking for and putting a process in place to manage that. “How can you tell which is the most appropriate for your company. What are you looking for? Do you know what you are looking for? Can you take that into the selection process? “Agencies will send you who they have got. You make the decision. “I am a real advocate that you look at behaviour, cognitive ability. “Treat the interview as a performance management review – rather than do I like the guy’s tie? Do we support the same football team? Has he worked
for someone I know?” Kevin Chappell, managing director of Augment, said: “Bright and capable organisations look at the process in a different way. Many others don’t – so they shouldn’t be surprised that they get the same result as last time.” He added: “Companies are going through tried and tested methods, but they are tried and tested to deliver failure.” Mr Chappell argues that, as organisations begin to rebuild and grow, now is the time to look at how they manage, assess and recruit people. “Companies focus only on how much they spend at the point of transaction, rather than the impact cost of getting it wrong,” he said. “They have got a real opportunity to use a thought-out process, but instead they tend to limit the process. “The whole journey needs to be a well-thought-out process, the whole life cycle. “The good news is that the strong agencies that deliver value want to be a part of that process.”
private business Driving ahead despite the cuts
MARKETING roadshow firm Event Marketing Solutions managed to grow its business in 2010 despite losing business through the public sector cuts. Ellesmere Port-based EMS supplies vehicles that organisations from the NHS to IBM and Barclays use to promote their services. In newly-filed accounts at Companies House, EMS said sales in 2010 stood at £5m, up 16% on the previous year. Pre-tax profits stood at £560,398 – up 167% on 2009. The directors’ report says: “In spite of difficult marketing conditions in 2010 and a change in government, EMS sales grew by 16% and delivered growth in operating profit. “The austerity measures introduced by the new coalition government adversely affected trading in the public sector. However, the business was able to replace the public sector spending and still grow the business. “The proportion of turnover attributable to international roadshows increased from 15% in 2009 to 26% in 2010, reflecting the significant growth potential of these markets.” EMS invested £487,882 in its fleet, up from £355,872 in 2009. Those investments were funded by hire purchase debt of £417,336. But, despite that, total debt fell by more than £200,00 to £913,240 as the business made other HP capital repayments. The report said: “Cash balances remained positive throughout the year. The directors are confident the business will continue to trade without an overdraft facility, based on contracted business and a strong sales pipeline.” It added: “The directors reduced headcount in 2010, with very little impact on delivery as a result of the reduction in public sector work. However, the business is currently recruiting, with a view to expanding.” ALISTAIR HOUGHTON
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Wednesday, May 18, 2011
LDP business .co.uk briefing Al Fayed to abandon studio bid FORMER Harrods owner Mohamed Al Fayed has walked away from bidding for film studio owner Pinewood Shepperton. Mr Al Fayed’s conditional offer was worth 250p per share but Peel Holdings, which owns a 29.8% stake in the studio group and has launched its own bid at 200p a share, turned it down.
Avis rental income rises BERKSHIRE-BASED Avis Europe has reported a 5.2% rise in rental income for the four months to April. Market share improved in the UK, while there was strong growth in Germany and Spain.
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news
VAT and petrol prices push up UK inflation to 4.5% by Jamie Grierson
LDP CORRESPONDENT business@liverpool.com
DUTY rises in the Budget, soaring air fares and a surge in petrol pump prices have driven inflation to its highest level in 2½ years. The consumer prices index (CPI) rate of inflation increased to a higher-than-expected 4.5% in April, from 4% in March, the Office for National Statistics (ONS) said. In a letter to Chancellor George Osborne, Bank of England governor Mervyn King blamed the spike in inflation on January’s VAT increase to 20% and higher energy and import prices – but said without these factors inflation would have been “substantially lower” and below the Government’s 2% target. The increase in the cost of living has signalled a further squeeze on consumer spending power. Figures released today are expected to show average weekly earnings grew by 2.3% to 2.4% in the three months to March. The ONS said core inflation, which strips out more volatile sectors such as food, energy, alcohol and tobacco, hit 3.7% – a record high since records began in January, 1997. Transport prices rose by 2.8% between March and April, driven by a 29% increase in air travel and a 22.3% surge in sea fares. However, the impact of air and sea fares on transport costs is likely to drop off this month, the ONS said, applying downward pressure on the overall rate of inflation. Fuel also lifted transport costs as petrol pump prices rose by 1.6% to reach record levels of £1.34 per litre for petrol and £1.41 per litre for diesel. The rise in alcohol and tobacco costs, introduced in the last Budget in March, was a record increase between any two months. Economists said the hike in inflation was likely to step up pressure on the Bank’s Monetary Policy Committee (MPC) to lift interest rates from their historic low. But any calls for a rate hike to curb soaring inflation are likely to be ignored, as Mr King and his fellow MPC members have already said they expect inflation to peak at 5% later this year before falling back to the target throughout 2012 and into 2013. Andrew Goodwin, senior economic adviser to the Ernst & Young ITEM Club, said the Bank was still likely to put off a rate hike until November. He said: “Though the MPC will derive no pleasure from seeing inflation being so high, there is nothing in these figures to suggest that their central forecast – of inflation easing back to target towards the end of next year – will not play out, so there is no reason to expect them to move any earlier.” The Bank governor was required to write a letter to the Chancellor as inflation has been 1% higher than the Government target for the last three months. It was the sixth successive quarter in which Mr King has had to write such a letter. The Bank has consistently blamed temporary price shocks, such as the boost to crude oil prices in recent months, for high inflation. But, in his letter, Mr King warned: “Continuing volatility in energy and
Rises in air fares, as well as petrol, have helped push UK inflation up to 4.5% commodity prices makes it difficult to be sure when inflation will return to the target.” Other measures of inflation dropped, with the Retail Prices Index (RPI) rate falling to 5.2% in April from 5.3% in March. The fall came as a drop in council tax, car insurance and house prices was included in the RPI figure, but does not feature in the CPI calculation. But union leaders said yesterday’s figures meant “misery for hardworking families” and called for a change of strategy from the Government. Dave Prentis, Unison general secretary, said: “The fractional fall in retail price inflation will not relieve the pain of family budgets.”
■ BILL GLEESON: Page 8; ■ MARKET Comment: Page 15
Bank of England Governor Mervyn King – has warned of further volatility in energy prices Picture: CHRIS RATCLIFFE
Savers struggling to earn a return on their cash THE battle savers face to stop the value of their money eroding intensified yesterday with figures showing inflation had hit a 30-month high. The increase in the Consumer Prices Index, from 4% to 4.5%, means a basic rate taxpayer now needs
to earn interest of 5.63% in order to make a real return on their money, once inflation and tax are taken into account. Higher rate taxpayers are in an even worse position, needing returns of 7.5% to stop the value of their deposits being
eroded by inflation. There are just two accounts available that enable people to make a real return, both of which are five-year fixed rate ISAs, meaning savers have to lock away their money for a five-year term, while they can only invest a
maximum of £5,340 in this tax year. There are currently no savings accounts available that enable people to beat inflation as measured by the Retail Prices Index, despite this falling from 5.3% to 5.2% in April.
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Wednesday, May 18, 2011
LDP business .co.uk
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
news
Sunshine boosts Enterprise ENTERPRISE Inns, the UK’s largest pub landlord, said the hot weather and extended Bank Holidays had pepped up trading after a tough winter. The boost to sales comes after adverse weather over Christmas knocked revenues 7% lower to £346m in the six months to March 31. With the sale and lease-back of some of Enterprise’s highvalue London pubs causing a rise in rental costs, profits
Vodafone chief executive Vittorio Colao – says the firm’s network is key
Vodafone hails soaring profits by Philip Whiterow
LDP CORRESPONDENT business@liverpool.com
A SURGE in demand for smartphones, and better-than-expected growth in the UK, helped boost Vodafone’s annual profits to £9.5bn. The Newbury-based firm also saw a strong performance in emerging markets such as South Africa and India as profits rose 9% in the year to March 31. However, the mobile phone giant expects a lower outcome next year due to tough trading in Spain and Italy, and also the absence of its French associate SFR, which it sold in April. Guidance for profits at an underlying level in 2012 has been trimmed to a range of £11bn to £11.8bn. That is below yesterday’s operating profit figure, which rose 3.1% to £11.8bn, at the top end of the firm’s forecasts allowing for the cost of US partner Verizon Wireless’s iPhone launch. That helped boost US revenues and with good performances in Africa, the Middle East and Asia Pacific, revenues overall rose by 3.2% to £45.9bn. Data revenues jumped by over a quarter to £5.1bn, representing 12% of group service revenues as use of smartphones increased rapidly. Vodafone expects tablets, such as the iPad,
to give the market a further boost and become mass market devices eventually. UK revenues, in particular, grew strongly on the back of this trend and were also helped by customers switching from “all-you-can-eat” packages to pricing plans that reflect data usage. But the end of call termination charges, to be phased in gradually from next year, will have a “significant negative impact” on UK revenues growth in 2012. Data also grew strongly in southern Europe, but was outstripped by falling prices in traditional mobile phone revenues. Revenues in Spain and Italy fell by 10.6% and 6% respectively. Vodafone took impairment charges of over £6.15bn last year for its businesses in the so-called PIIGS countries of Spain, Italy, Ireland, Greece and Portugal. Chief executive Vittorio Colao added that Vodafone was holding market share in all of its markets and gaining ground in some. The strength of its key emerging markets of India and South Africa offset the weakness in southern Europe, he added, while, as data becomes more important, he expects the firm’s superior network will become more important than price. He said: “Continuing network investment is an important differentiator for Vodafone, improving the customer experience and giving us leadership in smartphone penetration and in customer take-up.”
Aviva secures £1bn in UK sales INSURER Aviva hailed the performance of its motor and household arm today, after the division secured £1bn of UK sales in the last quarter. The 20% rise, to £1.09bn for the three months to March 31, represents the fifth successive quarterly increase and follows upward pressure on car premium rates and a surge in the firm’s own customer numbers. It now has 2m motorists on
its books, after adding 580,000 UK customers since the start of 2010, including 180,000 as a result of the roll-out of direct pricing to brokers. Aviva has also been buoyed by the success of an advertising campaign featuring actor Paul Whitehouse. It expects to see a continuation of recent industry trends on premiums after its own rates for motor cover rose by 24% over the past
year and homeowner insurance lifted 6%. A highly competitive industry in recent years saw many players slash rates to maintain market share, which the market claims led to unsustainable low rates that are now rising to more normal levels. Rising costs have also been blamed on a “compensation culture” encouraged by “ambulance chasers”.
were down by a third at £61m in the half year. Chief executive Ted Tuppen said: “The second half of the year has started well, with fine weather over Easter and the Bank Holiday weekend providing our publicans with a welcome boost to trade.” He added that trading improved as the half-year wore on, with income per pub steady though there were marked regional differ-
ences. The southern part of its 6,500-strong pub estate saw average net income rise by 2%. Income held steady in the Midlands, but fell by 2% in the North. Tackling its legacy of huge debts still remains the priority, Mr Tuppen said, although net borrowings did fall to £3.1bn from £3.5bn a year ago. It will continue to offload under-performing pubs.
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Wednesday, May 18, 2011
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LDP business .co.uk
Go-ahead foursome in move to Daresbury
location
LIVERPOOL’S INVESTMENT SPECIALISTS
IN ASSOCIATION WITH
Downing hands over Newcastle site LIVERPOOL property firm Downing has handed over the first phase of Newcastle’s largest city centre regeneration scheme to its new tenants, Newcastle University Business School. Downing has completed work on 100,000 sq ft of its flagship project, Downing Plaza, which is transforming the former Scottish and Newcastle brewery site.
In 2010, the business school pre-let the office and teaching space at Downing Plaza in a record deal for Newcastle’s commercial property market. A new student accommodation complex, also developed by Downing, is adjacent to the site and welcoming intake from September. Downing is nearing com-
pletion of Phase Two of the scheme, which comprises a 520-bedroom student village and 8,000 sq ft of retail space. Work on phase three’s student accommodation facility, which will house a further 351 student bedrooms, is due to start this year. Planning permission is also in place for a 285-bedroom hotel.
The £100m scheme is being built in phases by Downing’s in-house construction arm, George Downing Construction. Paul Houghton, development director at Downing, said: “The demand for first-rate student accommodation has never been higher, as universities are working hard to attract the best students.”
ADVERTORIAL
Securing new business in a competitive environment By Leigh Taylor
AREA DIREcTOR fOR LLOyDS TSB cOmmERcIAL In ThE nORTh WEST
Simon Bryson, from Proveca, left, with Nigel Elson, of iSoSec
by Tony McDonough
LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com
FOUR advanced technology businesses have moved to Daresbury Science and Innovation Campus (DSIC). Proveca, Immersive Forensics, iSoSec and Enhanced Hydrocarbon Technology have all established their operations at the internationally-recognised site in Cheshire. DSIC aims to provide a platform for innovation and collaboration between hi-tech businesses, universities and research organisations. Immersive Forensics is a provider of forensic image data management services. Proveca is a specialist pharmaceutical company which focuses on developing innovative, technically complex, demand-driven pharmaceuticals, and iSoSec develops high-performance and secure authentication products to the identity and access management (IAM) sector.
Enhanced Hydrocarbon Technology has developed technology to improve the efficiency of internal combustion engines, particularly diesels, to deliver fuel savings and emission reductions. John Leake, business development manager at DSIC, said: “The very cornerstone of the campus is to attract innovative, thoughtleading enterprises and provide them with a platform to evolve and prosper. “The arrival of four such groundbreaking businesses, from such diverse sectors as pharmaceuticals and forensic science, reflects our continued ability to deliver on our pledge. “We have major ambitions for the growth of the campus, supported by the anticipated launch of Vanguard House, and we hope to see more new arrivals in the coming months.” DSIC is a public-private joint venture between the Science and Technology Facilities Council, Langtree, North West Development Agency and Halton Borough Council.
When public and private organisations cut their spending and contracts are lost, making new contacts and opening up new business opportunities is vital. With 82 per cent of businesses in the north West operating in the very competitive service sector, growing your business network is more important than ever – especially with the fresh opportunities presented by developments such as MediaCity UK. At Lloyds TSB Commercial, we understand that when you’re busy with the day-to-day running of your business, you need a time effective way to expand your local business connections. That’s why we’re running 200 free events to allow SMe owners to do just that. As well as networking opportunities, these local events provide an opportunity to explore the sustainability market, which by 2013 is estimated to be worth £5.5 billion in the UK. Our locally based relationship managers can also offer a range of support and guidance on finance options. Last year, we approved eight out of ten requests for business loans and overdrafts and we are happy to work closely with you to explore the types of funding that are right for your business needs. With estimated cuts of £465 million taking place across the public sector in the north West, we know that businesses are feeling particularly vulnerable. Securing funding is now more important than ever as increases in raw material costs and decreases in public spending put pressure on your cashflow. The increased focus this demands on the day-to-day running of your company only adds further pressures on trying to maintain your current turnover or expand in this competitive environment.
networking can be a great source of new business leads To ease this pressure, we offer invoice finance solutions to release the value of your invoices when they are issued to customers rather than when they are paid. We also offer this service on a six month trial basis, so if the service isn’t right for you we’ll provide a full refund of the service fees paid. As many firms in the north West also operate in the leisure and tourism markets, having access to the right types of funding is especially important to accommodate key seasonal peaks and troughs. Our local relationship managers can introduce you to how various types of finance can help you release cash and take advantage of growth opportunities, or to keep your current business plans on track.
To find out more about our upcoming events in the north West, or to speak to one of our regionally based team who can help you plan to maximise growth opportunities to secure new business contracts, visit: www.lloydstsb.com/business/finance
To find out about invoice finance visit www.ltsbcf.co.uk. Lloyds TSB Commercial is a trading name of Lloyds TSB Bank plc and Lloyds TSB Scotland plc and serves customers with an annual turnover of up to £15M. Authorised and regulated by the Financial Services Authority. All lending is subject to a satisfactory credit assessment. We subscribe to The Lending Code; copies of the Code can be obtained from www. lendingstandardsboard.org.uk
14
Wednesday, May 18, 2011
LDP business .co.uk Aerospace & Defence
Avon Rbbr
28812
31712 25138 Forgn & C +212
36978 29434 BAE Systems 33718xd -178 73612 51958 Chemring
650
24758 19214 Cobham
23058xd -138
38078
26134
Meggitt
36238
665
535
Rolls-Royce
63412xd-1312
15912 10634 Senior
-12
32334 206 367
15258xd -234
Index 4886.56 ▼ 16.36 -34
+34 -414
18614 Scot Am
24534
-214
40978 Witan
50912
-5
Fixed Line Telecoms
19434
+34
4714
-158
4658 Cble&W Wwide 5034
-78
6278
4438
92
Cble&W Comm
KCOM
62
30714 25758 Morrison W
27014xd -312
30012xd -134
395
31358 Sainsbury
35434
-158
-514
44058
37712
41314xd
-412
73078 59614 HSBC
63834
-378
112
6812 Thorntons
11912 1914 Ireland
1878
-1
Bco
610
7758 5012 LloydsBanking 5334
-78
5218 3758 Ryl Scotland
4218
-18
1959 1525 Stan Chart
155612
-19
Beverages
1394 90912 Barr (AG) 518
36412 Britvic
1301 1025 Diageo 2306 1827 SABMiller
1182 92012 AB Foods
1047
72312 47712 Carrs Mill
720 xd 79212
+9 -518
42958
-8
1275
-26
Croda
2100 1460 Johnsn Mat
1978
-24
Index 3996.72 ▼ 51.37 22934
Balfour Beatty
265
18512 Costain
32334xd
22712xd -712
1708 102178 CRH
137434
-814
1418 88612 Kier Group
1335
-21
6312 2834 Low Bonar
5934
-114
12412
12112
+14
7834
Marshalls
Index 8195.67 ▼ 38.44 32614
Drax Gp
340
1963xd
933
44412xd
-734
44858 28412 Intl Power
327
-258
1368 1010 Scot&Sthrn
1330
-4
75312 511
Bellway
738
-15
196
McBride
140 xd
179
9834 Laird
141 xd
333
16712 Morgn Cru
31714
774
256
377
12712 Volex Gp
Oxford Inst
-334
385
29312 Alliance Br Assets
Candover Inv 581
228
577
13312
17118 Dunedin IncGth 216 xd
-112
Index 7154.67 ▼ 175.88
1257 76212 Rathbone
1200xd +42 1660
General Industrials Index 3190.74 ▼ 47.89
39 Adv Medical 334 AEA Technology 241 Albany Inv Tst 764 AMEC
92
2012 Anglesey Mining
594 1258 119212
230
115
MS Intl
21612
+112
Renold
3612
+12
45
23
11
+14
2063 1344 Spirax Srco
2011xd
638
338
Cosalt
312
-14
1948 846
1844xd -34
398
29038 Rexam
1429 1008 Smiths Gp
20112
-318
1201
-16
2514 1214 Ashley L
1934
Weir Gp
24034 175
BBA Aviation 22138xd
Index 4397.21 ▼ 47.68
-134 +14
47778 29414 Aviva
43558xd +158
-34
12334 7214 Lgl & Gen
11312xd -134
+18
777
48914 Prudential
71712xd-1212
31134
21114
29634xd
+278
25414 18812 Home Retail
223
-134
414
38238
+114
JD Sports
850 xd -2712
28214 19812 Kingfisher
27414xd -314
24434 173
Resolution
Media
-34
9312 4814 ITV
2885 1724 Signet Jwlrs 39814 WH Smith
22934 Balfour Beatty 29 Beale 501 Compass Gp
Price
Var 5Day
2627
-26
49678
-2
8214 xd
- 34
4 14 282
-1
High
479
- 14
9112
-1
96412
1171 864
83712
D Mail Tst
32214 easyJet 5934 IS Pharma 683 JD Sports Fashion 1112 JJB Sports 1534 Johnson Serv
32334 xd
-438
-10
53034
3612
+12
+6
12112 44
1934 Park Gp
579
478 Coral Prod
11
89712 Dee Valley
119212
-35
-8 -1212 +14
+ 14
1257 139
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.
3437 2254 Anglo Amer
291312
1174xd -11
Antofagasta
263112 168412 BHP Billiton
2344
-48
1308xd -43
1671 965
1217xd -25
Kazakhmys
1983 1355 Lonmin
1484
-34
4712 2812 Rio Tinto
410012 -7012
5514 3234 UK Coal
3814
821
Price
-12
575
Inmarsat
611 xd
-7 +112
Nonlife Insurance Index 1645.45 ▼ 13.09 1754 1238 Admiral Grp
1737
189958 126912 Marsh McL
1867xd +914
35234
-178
-414
8612
-12
-1
850 xd
-2712
-4212
50
Index 8073.37 ▼ 82.95 BG
1332xd
-8
52834 30278 BP
43434xd -358
49314 366
42014
-10
2140 1085 Premier
1834
-27
2336 1554 Ryl D Shell B
2121xd -22
1493 99112 Tullow Oil
1306xd -22
Cairn Energy
Oil Equipment & Services
AMEC
1151
-20
Personal Goods Index 21488.21 ▼ 300.77 1338
-19
27914 PZ Cussons
32738
-12
409
Low
14312
11434 RSA Insurance
3812
267012
-18
2231 1753 Imperial Tob
2190
-19
Travel & Leisure Index 4770.96 ▼ 51.86 3153 2037 Carnival 594
501
479
32214 easyJet
2561
-314 -134
35438
1504 1042 Go-Ahead Gp 1493
1435 982 285
Holidaybreak 256
-214
Intercontl Htls 1252xd -25
14712xd -114
Marston’s
110
-58
361
274
Mitchells&Btlrs 334
-114
Punch Taverns 7538
+38
TUI Travel
24334
1887 1266 Whitbread
1647xd
6112 3012 Emblaze
53
36414 23014 Invensys
31012
-878
119212 89712 Dee Valley
12612 85
100
-414
62912 48414 National Grid 61512
14714 10134 Logica
141
-258
67412 48278 Pennon Gp
67112
302
28734xd -518
1513 1126 Severn
1495
63112 520
617
34618 26412 Centrica
48614
-134
783
658
Bunzl
734 xd
-412
810
63512
Capita
718 xd
984
54912 De La Rue
835
29034 20534 Electrocmps
28912
819
797
578
Experian
-2 +1112 -1 2 -13
28234 23734 G4S
27878xd -178
452
24134 Hyder Cons
36412
299
18312
29312xd
Interserve
-1234 +1 4
758
1414 412
API Gp Armour Gp
564
19012 Cape
134
1
214
112
Dawson Intl
2
414
Eckoh
818
20212 1112 JJB Sports
86
3034 Man Brnze
46
12
4
1138
-178
29334
-318
5112 1112 Scapa Gp
13512 xd
142
Smiths News 9612 xd +114
7938
67
Uniq
670
510
Young A
53034
+734
+6
5514
3234 UK Coal
3814
8312
11312
+512
+212
4034
-14
-214
1200 xd
+42
+30
12138
-458
-618
1 12
11612xd
2000
1688 Unilever
1963 xd
-9
-37
63112
520 Utd Utils
617
-512
-412
Pratical Inv
-
908.09
1.12
-
215.13
3.57
-160.06
171.28 4.32
GUARDIAN Index-Linked Acc
-505.01
531.59
-
International Acc
-1024.32 1078.23
-
Pacific Acc
-254.35
267.74
-
Property Bonds
-1999.30 2082.60
-
HSBC INVESTMENT FUNDS (UK) Balanced
-
106.40
-267.80
British Gilt & FI
-
63.41
-222.50 -
1.00
267.80 3.07 3.50
222.50 3.11
132.30
3.64
HENDERSON HORIZON FUND
UK Equity Inc A
1046.90
- 54.20 -
Capital
-
56.63 4.40
451.70
2.83
-315.18
327.80 1.10
European
-
821.90
0.70
Far East
-
560.10
1.80
Inc & Gwth
-
207.10
3.30
International
-
425.60
0.40
North Amer Acc
-
470.10
0.10
Sing ASEAN
-
215.33
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: UNIT TRUST MANAGERS DAYS PUBLISHED A to Com ................................................... Tuesday F to Inv....................................................Wednesday JP to Pru...................................................Thursday Roy to T .........................................................Friday
FUNDS High
Low Funds
Price
Var
Consols
£90932
£761132 Cons 4% .................£7734 £50 Cons 212% ..............£5112
-214
£8134 £10912
-5
£69 Cnv 312%.................£7212 £101932 Cnv 9% 11 .......... £101932
-132
Treasury
1.542
- 18
Income
60712
1.537
-18
Euro Sel Opps
77
1.45
-134
0.01
Conversions
dollars
-34
752.80
-238
Australia
-1
-
GARTMORE FUND MANAGERS
£582732
-114
- 34
361 Nichols
+34
Sell
-134
4078
4714
Buy
4414
2514 Telme Gp
+1
Tourist
3534 Sportech
42
Swallowfield
67
Currency
48
-34
115
+612
Country
+212
Sth East Asia
+18
Var 5Day
-338
0.01
-178
£ ABROAD
+114
-34
+114
-1 -38
Portmeirion P 490 xd Redhall Gp
-7 8
3234
-1
355
Metalrax
32818
3234
2834
3512 1534 Johnson Serv 3358 xd
34634 15214 Northgate
12012 79
1987.00
518
838
30834 20838 Prem Farnell
9758
-
INVESCO FUND MANAGERS
48734xd-1314
550
3278 1914 Speedy Hire
-512
Crimson Tide 112
17312 55
33734 Menzies J
-1 2 +212
2358
538
545
0.10
Spec Sits
119212
Index 873.36 ▼ 7.52
414
51912 36014 Berendsen
127.30
HILL SAMUEL UNIT TST MGRS
AIM
26
221.80
-
Sterling Bd Unit Tst
31538xd +114
Utd Utils
Index 4574.22 ▼ 42.62
-714
-
+1
Index 4671.38 ▼ 1.78
-45
182
0.52
Japan Jpan Spec Sits
European Smllr Cos A -
1735
1731xd -19
4.26
-438
Utilities
1975 1271 Autonomy
Ashtead Gp
1.68
204.30
Monthly Inc
15514 Thomas Cook 15514
Index 739.41 ▼ 15.92
20778 77
324.70
-
-234
208
1811 1173 Aggreko
-
Income Plus
Gilt & Fixed
27178 190
AEA Tech
Gwth & Inc
-1
-114
1912 334
0.32
24178
31414
Support Services
610.20 1815.00
-118
-134
-1
-
-314
-612
Yield
Amer Spec Sits
14914
40578
Offer
Price Gross
American
20814 Restaurant Gp 30734
74712
22234 Sage
-312
8978
42734 28012 Gt Portland
Kewill
-412
11718
9038 58
Price
-3
48818
21278 Intl Cons Airlns 24234
79112 545
Software & Comp Servs
-178
12234 8438 Enterprise Inns 8514
24678 16034 Stagecoach
33114 25014 SEGRO
-8
35234
41258 31114 FirstGroup
240
Bid
Terms
FIDELITY INVESTMENT SERVS
-42
Compass Gp 579
15234 9434 Rank Gp
Price
Ultima
271812 1959 Br Am Tob
335
1914 Speedy Hire
78
Tobacco
15214 12234 Ladbrokes
578 xd
-138
Index 31109.74 ▼ 227.43
-84
Land Secs
-1 2
9312 xd +112
-412
41814 Brit Land
3278
2
55512xd-2612 2534
604
-38
9712 Redrow
-32
2919 2157 Daejan Hldgs 2725
▼ 0.36%
High
22838 ARM Hldgs 1934 BATM
-134
2834
76212 Rathbone
Vernalis
31
12134 8414 Rentokil
1365 61212 Burberry Gp
651
10234 7134 Psion
Cancel Fund
28
35314 28438 Big Yellow Gp 335
3358 xd
NWF
316112
134812 1095 GlaxoSmthKln 1314xd -34
-17
Oil & Gas Producers
down 4.34 Var 5Day
3385
-34
18234 12912 Vodafone Gp 16934
Tech Hardware & Equip
360 280112 AstraZeneca
-65
1682 81112 Fresnillo
-212
-11
Index 9516.56 ▼ 181.92
UNIT TRUSTS
2010xd -59
50212 37614 Greene King
Real Estate
1634 761
-114
1144
Pharma & Biotechnology
Index 1958.11
+2
6634
Pearson
Low
20212
-20
503
59012 46058 Reed Elsevier 55712xd
3512
5334
-212 -1212
Index 24910.92 ▼ 213.03
53612 BSkyB
-434 -1112
1151
Those securities which have increased in value since the previous close are shown in bold type.
Index 24784.08 ▼ 426.57
1251 764
2244
523
-412
Index 4271.71 ▼ 37.14 849
2326 1868 Next
-34
Standard Life 21138xd -312
59412 433
Mothercare
75412
156412 984
Debenhams
23718 Inchcape
130
WPP
Life Insurance
Brown (N) Gp 28818
398
UTV
-34
31114 221
34814 Halfords
106
84612 608
50
14312 11434 RSA Insurance 13512xd -114
Index 2593.83 ▼ 13.45
7738 53
7114
151
-9
Industrial Transportation
DAILY POST REGIONAL INDEX 1215.33
1251
3912
+14
-638
+14
35714
9312 xd
-812
-612
28712
4312 Molins
42514
468 xd
1912
108
682
Smith DS
48018 Utd Business 602 xd
Index 3877.70 ▲ 30.75
Cooksn Gp
108
F
1021xd -16
16014 10234 Spirent Comms 14634
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
+14
Mobile Telecoms
1008xd -64
IMI
-912
-11
Coral Prod
38314xd -438
725
Trinity Mirror
14212
+214
1112 578
39114
14138
753 38714
42712 32638 M & S
10034 Dunedin Sml
96
Charter
-738
1258 478
226
-1912
85312 567
37614
STV Group
6655 4425 Randgold Res 4620xd -105
38734 18314 Fenner
62712 382
369
Low
-10
39734 18212 Bodycote
-11
142
High
-6
-112
478
Edin Invst
-5
960 xd
96412 683
-5
-112
49012
2812 1134 Dixons Retail 1812
14012 105
4314 2214 Taylor Wimpey 38
-458
Industrial Engineering
550
777
12138
-612
-4
-414
9712 Redrow
77112
-6
37458
-3
+734
733
Index 6016.47 ▼ 57.88
139
1033 72812 Provident
36738
114
3648 3015 Reckitt Benck 3350xd -50
London Stk Ex 879
4534
-12
29418
312
Equity Inv Instruments
-7
66
12414
Mining -234
593
168
Index 6520.70 ▼ 111.22
-9
11458
Index 1776.14 ▼ 19.36 +11
Smith Nph
Household Goods
Aga Rngmstr 11312xd
Index 3197.84 ▼ 39.36 680
67512xd-1112
Barratt Dev
General Retailers
38312 Domino Ptg
742
53712
74
Electronic & Electrical
705
Index 3794.30 ▼ 61.63
70
1922 1154 Schroders
T
May 17, 2011
138
544
W
VODAFONE GROUP Nov 17, 2010
119
Close Bros
T
170
Index 6387.42 ▼ 75.39
88812 664
M
Share price (pence)
Forestry & Paper
25418 3i
May 9 - May 13
FTSE-Rebased
180
-712
Index 5913.68 ▼ 9.85
72412
Electricity
46934
621
57012 35912 ICAP -438
+18
General Financial
-34
Construction & Materials
35714
Tate Lyle
61412 36758 Mondi
1837xd -31 15314xd
Premier Foods 3418
2000 1688 Unilever
222012 -3012
16934 5834 Elementis
40918
May 2 - May 6
Health Care Equip & Serv
40278
62812
3055.52 ▼ 1.03%
-11
Cranswick
3518 16
Apr 25 - Apr 29
SPOTLIGHT
160
5999.06 ▼ 0.03%
KEY
5710
150
42478 33934 Dairy Crest
Chemicals
1919 901
-2
Index 5280.52 ▼ 30.01
1360xd
Index 7289.06 ▼ 74.89
6812
Food Producers
90712 735
Index 9801.89 ▼ 169.15
Tesco
5805
Travis & P
2261 1223 Wolseley
Index 732.47 ▼ 27.73
FT ALL-SHARE down 31.92
20-Day Moving Average
190
Santander 70112
87512
FTSE-100
-1
Food & Drug Retailers
5861.00 ▼ 1.06%
20 DAY MOVING AVERAGE down 1.79
Index 2382.56 ▼ 0.32 20178 11934 BT Gp
FT-SE 100 INDEX down 62.69
6090 5995
1127 709
Closing Indices
FTSE 100 INDEX
5900
Index 4852.40 ▼ 43.01
Index 4537.12 ▼ 41.12 25538 Barclays
Hend Smllr Cos 31134
252
Banks
344
-338
27314 Law Debenture 361
6512 41 209 xd
31112
528
-112
Automobiles & Parts
23718 10914 GKN
Keep track of all the major share moves of the day with our live FTSE ticker at www.ldpbusiness.co.uk
66012 53012 Edin US Trkr Tst 63914xd -1034
Index 3416.07 ▼ 37.46 28812 100
LondonStockMarketatClose
£61
£50 Tr 212% ................. £553132
£1171516 £10858 Tr 9% 12................£10858
Canada
dollars
1.51
1.584
1.586
Denmark
krone
8.12
8.540
8.550
£10738
European Union
euro
1.09
1.145
1.146
£121516 £1152532 Tr 8% 13................£11614
125.75
131.770
131.870
£114332 £109532 Tr 5% 14............. £1102332
1.93
2.080
2.086
£1112932 £105732 Tr 734% 12-15........£10614
Japan
yen
New Zealand
dollars
Norway
krone
8.63
9.113
9.114
Poland
zlotys
3.96
4.502
4.510
Sweden
krona
9.83
10.313
10.323
Switzerland
francs
1.37
1.434
1.435
£10312 Tr 5% 12................£10312
+132
£30414 Tr 212% IL 16 ....... £326732
+34
£142316 £1322132 Tr 834% 17 ........... £136116
+116
£147132 £1332732 Tr 8% 21............. £1391932
+316
£326732
Turkey
new lira
2.43
2.578
2.587
War
United States
dollars
1.55
1.620
1.620
£8334
£6712 War Ln 312%......... £731316
+14
Last night, the pound was worth: $1.6200 (down 0.0038 ).......... 1.1459 euros (up 0.0039) ......... 133.1500 yen (up 1.73)..........Its trade weighted index was 79.80 (up 0.20) Metals in $ per troy ounce: Gold 1478.50 (down 22.25)................... Silver 34.28 (down 0.07) .................. Platinum 1760 (unchanged) .................. UK base lending rate 0.5%
15
Wednesday, May 18, 2011
LDP business .co.uk London market THE FTSE 100 Index slipped backwards for its fifth day in a row after heavily weighted mining stocks were hit by fresh falls from volatile commodity prices. London’s blue-chip index lost 1%, or 62.7 points, to close at 5861, as weak sentiment was compounded by ongoing concerns over the eurozone debt crisis. Markets across the world were dragged downwards as progress made at a meeting of European financial leaders was overshadowed by the arrest of IMF chief Dominique Strauss-Kahn. The pound was up against the dollar and the euro after the UK’s CPI measure of inflation rose to 4.5% in April from 4% the previous month, increasing the chances of an interest rate hike. Sterling rose to 1.15 against the single currency and at 1.62 against the greenback. In corporate news, mobile phone giant Vodafone posted a 9% rise in full-year profits to £9.5bn, and surprised analysts with its bullish outlook on the back of hopes that the widespread adoption of smartphones will boost data usage. Oil giant BP was among the fallers after the company’s failure to complete a share swap and Arctic exploration deal with Russia’s Rosneft. Analysts said that its deal with the Russian state-owned oil company could still be resurrected. The biggest Footsie risers were Essar Energy, up 12.4p at 424.5p, 3i ahead 7.7p at 294.1p, Vodafone, up 1.5p at 169.7p, and BT, ahead 0.8p, at 194.8p. The biggest Footsie fallers were IMI, down 64p to 1008p, Arm Holdings, off 26.5p at 555.5p, Fresnillo, down 43p at 1308p, and Eurasian Natural Resources, off 25p, at 806.5p.
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
market comment
Bankmust retainits focuson controlling inflation LAST week’s Quarterly Inflation Report, published by the Bank of England, produced grim reading on the outlook for the UK economy, with two main themes emerging, of lower growth and higher inflation than was previously forecast. According to some commentators, the UK is unlikely to see an interest rate rise for many months. The argument put forward is that high inflation in the UK is mainly caused by sharply rising energy Economic growth estimates for the (especially oil), food and commodity UK economy have been downgraded prices. Rising UK interest rates would from 2.8% to 2.4% for 2011, 3.1% to have no effect on these glob2.5% for 2012, and 3.1% to ally-determined prices. 2.75% for 2013 and beyond. In fact, higher interest rates And these forecasts are still would have a negative impact probably too high. It seems on the domestic UK economy, unlikely that, over the long dampening growth as activity term, the UK economy will be attempts to recover from the able to grow at the level it financial crisis and subachieved prior to the financial sequent recession of 2008-09. Email us with crisis, given the lower level of In addition, the cuts in govyour views at credit available from banks ernment spending have yet to letters@ and workers choosing to perbe implemented in earnest dailypost.co.uk, manently leave the labour and consumers are apprehensor write to us PO Box 48, Old market. ive about spending at a time Hall Street, Despite the lower growth when their real incomes are Liverpool figures, inflation is predicted being squeezed. L69 3EB to be higher than previously Large-scale unemployment, expected. Inflation may now at 7.8% of the labour force, peak at 5% in the fourth quarter of should ensure that wage growth is con2011, and the Bank of England does not tained. As a result, it is inevitable that expect inflation to return to its 2% the Monetary Policy Committee (MPC) target until the summer of 2013. will look through the strong inflation Crucially, the inflation forecast is data and leave interest rates based on interest rate rises expected unchanged until the long-term outlook by the market. At the time of the for inflation is more assured. report, the market was predicting one However, last week’s Inflation quarter point rise before the end of the Report doesn’t appear to agree with year (probably in August or Novemthe above conclusion.
What do you think?
The current high rate of unemployment may ensure that growth in UK wages will continue to be constrained Picture: CHRIS ISON ber), followed by further 0.25% increases every quarter in 2012. This would raise the UK base rate from 0.5% currently to 1.75% at the end of 2012. This analysis points to one interest rate increase before the end of this year. For many in the UK and particularly those with mortgages, the prospect of higher interest rates is daunting. However, it is important for the integrity of the UK’s financial system that the Bank of England retains its focus on targeting an inflation level of 2%. If confidence in the Bank’s ability to
control inflation is lost by consumers and investment markets, not only could the cost of borrowing for the government increase markedly but workers’ demands for higher wages could grow. Higher wage costs are one of the greatest fears of central bankers, and if these pressures were to materialise they could eventually lead to much higher interest rates over the medium term. Darren Ruane, Senior Bond Strategist, Rensburg Sheppards
For twice-daily FTSE updates from Rensburg Sheppards, log on to www.ldpbusiness.co.uk
business diary Wednesday, May 18 St Helens Chamber is hosting a seminar called “The benefits of effective health and safety management”. It will discuss how companies can create a positive safety culture.For details, see www. sthelenschamber.com
Thursday, May 19 Speke-based Choice Online has teamed up with Clearer Thoughts to run a second free social media marketing workshop. The event is at Clearer Thoughts, in Bridle Way, Netherton. For details, see www. choiceonline.co.uk
Friday, May 20 David Murray, of the Murray Consultancy, will be looking at the value of market research for businesses. It is the latest in Liverpool Chamber of Commerce’s series of 60 Really Useful Minutes seminars. It is free to members and £5 for non-members and is from 9am-10am. To
book, visit www.liverpoolchamber.org.uk Monday, May 23 Three free workshops have been arranged by LCVS United Way to help people looking to set up new social enterprises or community organisations. The first will take place at its offices in Dale Street, on May 23, with others on June 22 and July 21. To book places, call
Jane Peet on 0151 227 5177 or email info@lcvs.org.uk Monday, May 23 A speed networking event is being held at Staybridge Suites, Keel Wharf, Liverpool, from 5.30pm. The two-hour event, organised by Liverpool Chamber of Commerce, costs £10 for members and £15 for non-members. To book, call 0151 227 1234.
Wednesday, May 25 PKF is holding a seminar to provide guidance on the Bribery Act 2010, which will come into force on July 1, 2011. It will provide the know-how on adequate anti-bribery procedures to avoid committing the offence. It is at Haydock Park and starts at 8am. To book, email lorraine.byrne@
uk.pkf.com or call 0161 819 3362. Wednesday, May 25 The five golden steps to successful bidding is the subject of a Knowsley Chamber seminar by Tender Management. It is from 9am11.30am at the Village Hotel, Whiston. For more details, see www.knowsleychamber.org/events.php
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Wednesday, May 18, 2011
LDP business .co.uk trading gossip ■
LIVERPOOL had Georgia on its mind this week as the state’s governor, Nathan Deal, rode into town. Governor Deal, below, was making his first overseas trip since taking office in January. And he was happy to chat about what Georgia and Liverpool have in common – including ambitious plans for port redevelopments. The Governor had all the wonderful turns of phrase you’d expect from a politician from the US South, calling heavilywooded Georgia the “Saudi Arabia of pine trees”, and proudly pointing out that his hometown is the “poultry capital of the world”. And he said the South was now the hotspot of the US economy. “There’s a definite shift in our population in the US to our warmer
climes,” he smiled. “Although the Liverpool delegates that came (to Georgia) in January wouldn’t attest to that.” Because, he smiled, the snow in Atlanta was so bad that month that the gubernatorial inauguration ceremony had to be moved indoors for only the second time in the state’s history. His gala dinner was finally held earlier this month. It’s been a drizzly few days in Liverpool. But that’s clearly not going to put him off one bit.
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IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
the back page
City hair pioneer who’s fuelled by smoothies
working day
Rob Webb , 53, is managing director of Liverpool-based independent hair salon chain Voodou. The business has 100 members of staff, six outlets, and more than 9,000 fans on its Facebook page. This was his day: 6am: Wake up at my home in the docks and walk over to our two Bold Street salons. We’ve been in the city since 1976, and opening salons in the city centre was one of the best decisions I’ve ever made. Even though our clientele is extremely varied, the majority of our customers are very fashion-conscious. 8.30am: Time for a smoothie and a catch up with Christine, our financial controller and my official right-hand woman. We’ve worked together for a long time now, and I find her support extremely important. 9am: Meet with the team for a morning briefing. We currently have 100 members of staff and I try my best to speak to as many of these as possible on a weekly basis. During today’s catch-up, I ask the stylists for feedback on our “Getting to Know You” scheme that we have started to roll out. It’s been working well, which is great news. 11am: I take a telephone call from one of our suppliers, Tigi, who we have a rather large account with. They have asked us to fly out to Orlando next month to attend a hair conference, as we are one of their biggest UK clients. They want a 100-word summary about Voodou to go in the event brochure. 12.00pm: Meeting at the Contemporary Urban Centre, in Jamaica Street, with the rest of the Voodou Training team. We decided it would be great for the city, the business community and also for the local hairdressing community if we invited stylists of all levels, from a variety of different salons, to take part in one big event on June 20. Our hope is to create a celebration of what there is to offer within our sector and recognise the talent that is currently around us. 2.30pm: Lunch time. We’re a little
Voudou managing director Rob Webb – wants to celebrate the city’s hairdressing talent spoilt for choice by where we are located, so today I decide to go healthy and have a salad. 3.30pm: Time to make my way through the mountain of paperwork that’s landed on my desk and check through my emails – I think another large smoothie is in order. 5pm: I meet with the new trainees that we have onboard. One of the things I like most about my job is seeing people
learn and grow, and that’s exactly why we set up Voodou Training. It is about providing the most relevant and modern training in the city, and ensuring Liverpool’s growing status as a leader in the style stakes. 6.30pm: I leave the office and head back home. During my spare time, I love to read, especially about psychology, as I love to know what makes people tick. I also like to find some time in the
day to flick through the latest hair magazines. Although I don’t actually work on the floor any more, it’s vital I am kept informed of future trends. 7.30pm: Bite to eat while watching some TV. Nothing really on the box tonight, so decide to watch a good film – The King’s Speech, I think. 11pm: Lots going on in my mind, but it’s time for bed. Can’t wait to see what’s in store tomorrow . . .