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FORD’S best firstquarter earnings since 1998 helped spur on the London market yesterday as investors looked across the Atlantic for direction. The US car giant and technology firm 3M delivered firstquarter figures that beat expectations in another round of strong US earnings. The figures provided the focus on the FTSE 100 Index in an otherwise quiet day for UK corporate news after the long Easter break, with the Footsie finishing 51.1 points higher, at 6,069.4.
MARKET REPORT: PAGE 15
New era starts today at retailer TJ Hughes EXCLUSIVE by Alistair Houghton
LDP BUSINESS STAFF
alistair.houghton@liverpool.com
TJ HUGHES’S new chief executive, Bob Lister, will start work today to rein in the chain’s costs and take it back into the black. The discount retail chain was bought last month by retail entrepreneur Anthony Solomon and turnaround specialist Endless. Its new owners, who also own discount book store chain The Works and wholesaler JTF, have pledged to revive TJ Hughes’s fortunes after a difficult few months. Mr Solomon told LDP Business that Mr Lister, previously managing dir-
ector at The Works, would start work at TJ Hughes today. And Mr Solomon, in his first full interview since investing in TJ Hughes and becoming its executive chairman, said the company had not yet made any decisions on whether any jobs will be lost as part of the restructuring process. He said: “We’re looking at the cost base of the business, the merchandise and the store look. They’re the three essentials that we need to fix as quickly as possible. “I’ve only been in the business for a few days. We’re reviewing the whole business. We’ll do what we need to do to make this business successful again and protect the jobs.
“Of course, we’re optimistic. We wouldn’t have invested in the business if we weren’t. But we are aware of the challenge that lies ahead.” TJ Hughes opened his first store in Liverpool in 1912. Today, the chain he founded has 57 stores and employs 4,000 people, with turnover of around £300m. The chain was put up for sale a year ago by previous owner Silverfleet Capital, with a reported price tag of £70m, but the sale process was ended due to tough economic conditions. Last November, TJ Hughes said “trading remains very tough”, and after Christmas the retailer launched a 10-day sales to reduce stock levels in its warehouses.
In March, Silverfleet sold the business to Endless and Mr Solomon. This week, Mr Solomon announced that Mr Lister was succeeding Beatrice Lafon, who joined TJ Hughes in November, as chief executive. David Luper, Mr Solomon’s business partner, is to join the board at TJ Hughes to take charge of the buying department. Mr Solomon said: “TJ Hughes is a well-known business across the whole of the UK. It’s coming up to 100 years old, and it’s had periods in its life when it’s been a great business. People have loved the stores. “But unfortunately it has lost its
Sparkling business for city jeweller
inside Bunk bed bid to rescue public houses A YOUTH hostel group that helps landlords set up dormitories in their pubs is looking to launch in Liverpool. PAGE 4
Time to vote FIRMS in Liverpool’s commercial district get ballot papers for Business Improvement District poll. PAGE 5
Hire firm hit SPEEDY Hire incurs £16m loss on the sale of its temporary accommodation arm. PAGE 6
Store wars MORRISONS and Sainsbury’s “considering bids for frozen foods chain Iceland”. PAGE 7
CONTINUED ON PAGE 2
Chloe James, of jeweller Christopher James, with one of the Royal engagement ring look-alikes Picture: GAVIN TRAFFORD/ gav260411katesring-3
BUSINESS EDITOR: BILL GLEESON 0151 472 2319
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BUSINESS REPORTER: ALEX TURNER 0151 472 2321
ROYAL Wedding fever is rampant at Cavern Walks jeweller Christopher James. Engagement ring sales have soared 300% and a copy of Kate Middleton’s £300,000 blue sapphire engagement ring surrounded by diamonds, originally worn by Princess Diana, is proving extremely popular. Owner Christopher James said: “Kate Middleton has certainly set a trend, and in the months following the engagement we were inundated with orders for similar rings. “We’ve been in Cavern Walks for over 25 years, and have never seen so much interest in coloured stones.” He said he expects to sell up to 20 of the copies, priced between £1,500 and £5,000.
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Woods in standard of care success A BIRKENHEAD accountants has been re-accredited with national customer service quality standard, Putting The Customer First. Woods Squared was accredited in 2008. The accreditation process concentrates on three key areas of work: customer relationships; market awareness; and people. Director Alan Woods said: “The standard has challenged us and moved us forward, rather than just being a rubber stamp. “We are extremely proud to be one of only nine companies in the North West to have this standard, and only one of a total of five accountancy firms in the UK to have achieved this standard.” Customer First UK chief executive Frea O’Brien, said: “Building successful relationships with customers based on trust and credibility, and delivering services that make a difference, is key for businesses. We are delighted that Woods Squared is leading the way by putting customers at the heart of what they do.”
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‘We’ll do what we need to do to make TJ Hughes successful’ CONTINUED FROM PAGE 1 way. That’s evidenced by the stores, when you go into the stores and see that the product range is not good. “That’s the main reason, along with the cost base, why the business has stuttered recently. That created the opportunity for us. “It was acquired by Endless and myself a couple of weeks ago. It has been refinanced. “We’re looking to go back to the previous model of having great value for money and great discounts, and we will make the stores look better, to restore the business to profitability and create the value for ourselves. It’s nothing more complicated than that. “There’s a lot of work to be done. But the business is in safe hands. “There are aspects of the business we will be reviewing. But the prime objective is to get great products back on the shelves in the stores to get the customers who have been loyal to the business to come back again.” Yorkshire-based Endless has worked with Mr Solomon on two previous retail ventures – The Works and JTF. “Myself and Endless have got a relationship and a track record of buying distressed retail businesses and putting them right,” said Mr Solomon. They bought The Works in 2008, after it fell into administration. “The business was in effect saved,” said Mr Solomon. “It was a broken business. It has been returned to profitability. It employs 2,000 people and those jobs are now secure. That was a great success story.” Mr Solomon said he would follow the same turnaround model at TJ Hughes. He said: “The Works was a great business – people loved it, and they loved shopping there. It had had previous successful owners, but the last management team did it wrong. “We came in and got value back on the shelves. The business was turned around. “From the year of administration,
A lot of work to be done, say new bosses – TJ Hughes’s base at its store in London Road, Liverpool where it lost circa £10m, within two years the business had made a profit in excess of £10m. That was effectively a £20m turnaround. “JTF was a similar success. That came from a negative, loss-making position when we bought it in 2009 and now has had two profitable years.” Mr Solomon, originally from the North East, founded North Shoe – which traded as Famous Brunswick Warehouse – in 1993. “That was where I started – I built it up from a standing start,” he said. “It was sold to a plc in 2000 for £23m.
“Then the shareholders of that business – myself, David Luder and Harvey Jacobson – bought the Original Factory Shop Group, in Keighley. “That was another turnaround success story. We bought it for £7m in 2002 and sold in 2004 for £40m. “At that stage, I was going to call it a day. But, after a couple of months, I got bored and started to look for other opportunities. That’s when I joined up with Endless for The Works.” As his track record suggests, Mr Solomon enjoys the challenge of trying to turn businesses around.
He said: “Obviously it’s exciting, it’s very challenging, and it’s very rewarding – all three things you want a business to be, if you can do it. And so far we’ve got a good record. “Each one has its own challenges. I’m equally excited by each one.” The best advice he has been given when it comes to turning around companies is, he said, to “listen to the staff ”. He said: “They’re the ones that know about the business. “And, in a retail environment, the product is always key.”
Knowsley’s Cybertill joins key retail buying group KNOWSLEY retail payments specialist Cybertill is now a preferred partner of a major sports retail buying group. STAG (Sports Traders Alliance Group) has 470 UK members, in 600 outlets, who deal with 130 suppliers offering 160
different brands, which now includes Cybertill. It means Cybertill will be recommended to STAG’s membership, who will receive preferential rates on Cybertill’s EPoS (electronic point of sale) systems.
Ian Tomlinson, Cybertill’s chief executive, said: “STAG is an extremely shrewd buying group that has a proven track record in helping many different retailers manage their business more effectively. “Not only does STAG open
up a vast range of globally recognised sports and footwear brands to independent retailers, it ensures they have help managing all aspects of their business, while getting members the best possible deal.
“I believe there is an excellent symmetry between Cybertill and STAG and their members.” STAG managing director Ricky Chandler praised Cybertill’s web-based system for its ease of use for retailers.
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City centre living pioneer now blazing a trail in hotels sector
Paul Bolton has transferred his skills in property development from the city centre residential market to the hotels sector, with Sanguine Hospitality
Tony McDonough talks to PAUL BOLTON , director of Sanguine JUST over a decade ago, Liverpool city centre was a place you came to work and play – not live. Paul Bolton changed that. Real change only comes about when people with vision decide to do something different, and Bolton was one of a very small group of property developers who saw city centre living as the future. But not everyone was convinced. The company Bolton owned at the time – Charlton Group – had converted the site of the former Royal Mail parcel office, at Hatton Garden, into 180 luxury apartments. He said: “Along with firms like Urban Splash and Beetham, we were the first to be doing this kind of thing in the city centre. “But at that time the banks and building societies didn’t understand the concept of city living outside London – we were struggling to get people mortgages. “But eventually the market spoke and it became clear to the banks that people wanted to live in the city.” Bolton went on to run other North West development firms, such as Space and Vermont, but just as he had seen the opportunity, he also saw the phenomenal growth of the market was going to come to a halt.
Now the 47-year-old’s business career has gone in a different direction. In 2008, he teamed up with hotels entrepreneur Simon Matthews-Williams to form Sanguine Hospitality. Matthews-Williams is himself a pioneer, having built and opened the Crowne Plaza in Liverpool when the local visitor economy was still in the doldrums. Combining their talents in hotels and property development proved to be an inspired move. The company has gone from strength to strength and now operates hotels around the country, including the Days Hotel in Chester and the Days Inn in Liverpool, as well as health clubs, spas and event venues. It has teamed up with internationally established hotel brand operat-
q&a Age: 47 Highest educational qualification: HNC in Civil Engineering Biggest achievement in business: That is yet to come Biggest regret: No regrets – if I could go back again, I wouldn’t do things any differently Best advice received:Nobody has a monopoly on good ideas and be true to yourself – follow your gut instinct Main unfulfilled ambition:To play the guitar
ors including Hilton and Intercontinental. There are a number of other hotels in the pipeline, including the Hotel Indigo, to open in the summer in Liverpool’s Chapel Street. Hotel Indigo is an up-market Intercontinental brand aimed primarily at business travellers. Bolton said: “Sanguine is a rapidly growing hotel operator and developer – we are probably the most aggressive hotel company in the UK at the moment. “We are definitely punching above our weight.” He admits getting funding for the development projects is difficult, but believes the company offers an excellent proposition. He added: “One of the biggest stumbling blocks is the current lack of traditional bank debt – that is definitely an impediment. “However, I have always been a glass half-full kind of guy, and the opportunity in the current climate is that we can buy the sites at exceptional value. “They are often development sites that are already in financial difficulty so you are getting the value. “Banks do see a big degree of comfort in internationally-branded hotels. So, while getting funding is probably the most difficult part, those relationships we have with the big hotel brands makes that journey a lot easier.” The hotels market itself has been badly hit by the recession, and Liv-
erpool has not been immune to the downturn, despite a steady growth in visitor numbers to the city. Bolton acknowledges the market is “competitive” at the moment, but again insists he remains optimistic. “The Echo Arena and BT Convention Centre has been a huge catalyst for the visitor market – as has Liverpool One,” he said. “I have just spoken to our Days Inn hotel in Liverpool, and they told me they were completely full over the Easter weekend – that is fantastic. “Liverpool enjoys an exceptional degree of occupancy compared to other UK regional centres. “Driving profitability in hotels is about getting the room rate and occupancy right. “We live in uncertain times, so it is difficult to up your room rate. Everyone is competing. “One of the biggest issues is the lack of conference business. “At one time, you might get companies holding strategy or team-building conferences in hotels for two days at a time. “That market has gone for the moment, but there is some evidence that it is going to return. If that happens, then that would be a big improvement. “We would definitely like to do more development in Liverpool, but we want to step back for the moment and see how the Days Inn and Hotel Indigo do. “We want to let the market in the city mature a little before we build
again. Maybe in a couple of years’ time.” Bolton was born in Coventry, but did most of his growing up in LIverpool. His father was a bricklayer who struggled to find work and moved his family around for a while. After leaving the Midlands, they spent a short time living in the US before returning to set up home in Fazakerley, in Liverpool. During his teenage years, Bolton harboured an ambition to become a pilot but, on leaving school, he entered an industry in which he would keep his feet firmly on the ground. “I did want to be a pilot,” he said. “But I soon realised that wasn’t going to happen. At 16, I became a management trainee for George Wimpey in Bootle and that was the best thing that happened to me. “The training I got there was phenomenal.” By his mid-20s, Bolton, now a married father-of-three, was already a property developer, building homes. He enjoyed great success thanks to the city living boom and was canny enough to spot the market turning. He said: “I was right to get out, but I probably should have stayed in another couple of years. “Drive down The Strand now and you can see Liverpool has been transformed. And it’s not just about the built environment, it’s about a huge change in mindset. “There is now a pride and a belief in this city.”
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LDP business .co.uk Increase in public sector fraud FRAUD is rising in the public sector, says accountants PwC. It found that 60% of public sector organisations suffered fraud in the past 12 months, compared with 52% in 2009. Financial crime is on the rise as increased scrutiny in some areas and cuts as a consequence of the spending review in others increase detection rates and opportunities for fraud. The profile of the typical public sector fraudster has also radically changed. Internal fraudsters are now reported as more common than external ones, responsible for 53% of detected economic crime, up from 39% in 2009. A deterioration in industrial relations is playing a part as loyalty and employee engagement are eroded by redundancy announcements and pay freezes. In these situations, there is an increased risk of some staff – and sub-contractors – maximising their benefits on their departure through fraud. Will Richardson, director in PwC’s forensic accounting team in the North West, said: “Spending cuts have created ill-will among public employees in some areas and, in others, more opportunities for Government workers to cross the line. “More opportunities for fraud are created as mid-office functions are stripped away and responsibility for auditing and authorising activity is spread more thinly.”
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Hostels and bunk beds to revive city public houses by Neil Hodgson
LDP BUSINESS STAFF
neil.hodgson@liverpool.com
LIVERPOOL has been targeted in the expansion plans of a London youth hostel franchise that breathes new life into run-down pubs by creating accommodation dormitories. Bermondsey-based Journeys installs scores of its micro-cell bunk beds for hostellers who can boost landlords’ food and drink takings through their added custom. Journeys currently has three London sites and one in Brighton, all in former pubs, and has identified two key locations in Liverpool as part of its growth plans to open a further 15 hostels during 2011. Director Derek Bodman said: “We are now in talks with the current owners to take things further in respect to Journeys hostels. “Both of these have potential to create new hostels with bed capacities of 250-300. “They also have a long list of applicants who are interested in being the franchisees for these sites, and managing the hostels if the bids are successful.” He added: “What Journeys are now really interested in is finding some smaller sites within Liverpool city centre and hope that they can team up with pubs who are looking for a new income stream in the current financial environment to achieve this.” Pubs are under increasing pressure from cheap supermarket drink and rising taxes from Westminster, and closures within the pubs industry are running at an historic high. But Journeys says that hostelling is booming as the trend for “staycations” grows, and people seek out cheaper accommodation alternatives. Its micro-cell bunks include full black-out curtains, individual power supplies, shelves and lights to create a private space within a dorm scenario.
Some of the ‘micro-cell’ bunk beds already installed in one of Journeys’ current pub-based youth hostel developments The group said one of the first pubbased Journeys sites, which has been running for two years, was created in a dilapidated pub environment and in just its second year of trading turned over £630,000, yielding a profit of £221,000. Mr Bodman added: “The poor Brit-
ish publicans are getting hammered from all angles at the moment by the pubcos they’re tied to, by less and more frugal punters coming through the door, and Westminster’s tax attacks. “We reckon that, using our model and online booking system, most pubs
in the UK could pay the start-up costs off in the first year of trading and then start to pocket the profit. “The British pub is an iconic institution, and we are convinced our model offers hard-working landlords a means of increasing profits, and in some cases survival.”
Ellesmere Port railhead re-opens in Peel Ports Mersey investment
City baker set for expansion
A JOINT venture between Peel Ports Mersey and Quality Freight Group has re-opened the rail head at Ellesmere Port – 20 years after it closed. The first train to use the new facility delivered a cargo of sand from Sibelco, of King’s Lynn, for Quinn Glass, of Elton, in Cheshire. This will be a regular twice-weekly service, running every Wednesday and Friday. The re-opening is the result of a major investment by the two companies centred on a receiving area and rail sidings. Their investment has also led to the creation of two new jobs by Quality Freight at Ellesmere Port.
AINTREE-BASED Coultons Bread has moved its banking facilities to Santander Corporate Banking, to enable further growth. The firm, which employs around 100 staff at sites in Liverpool, Manchester, Bradford and Gateshead, was established in 1989 and supplies products to a wide range of clients, including Aldi, across the North West. Coultons chief executive Howard Hunter said: “Santander really took the time to get to know our businesses and understand our financing requirements. “This new banking partnership will enable us to focus on our ambition to grow our business and extend our client base.” Shaun Blake, Santander relationship director, added: “Coultons Bread is a strong and growing company with an impressive client base and diverse business model. It’s a privilege to be their banking partner. I look forward to working together going forward.”
Parent company Peel Holdings is developing a multi-million pound regeneration scheme for its Port of Salford and Port of Liverpool operations, linked by the Manchester Ship Canal. Dean Hammond, Manchester Ship Canal general manager, said: “The rail head creates a truly multi-modal facility at Ellesmere Port. “Our strategy is to promote choice for our customers, and hence it is vital that the necessary infrastructure is available to effect modal shift where required. “The green agenda and increasing fuel costs have made rail attractive, removing con-
gestion from the roads, with the Sibelco load now only having to travel the final five miles to its final destination by road.” Quality Freight Group managing director Sebastian Gardiner, added: “This is an historic development for Ellesmere Port, and one which we know from the trials we have conducted is going to benefit customers enormously over the coming months and years.” He said the growing relationship between the two companies should result in a significant increase in new rail volume this year, boosted by Peel’s local rail freight network to carry coal.
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Efficient solar panels a big HIT
Overseas trade agency widens engineer’s horizons A LIVERPOOL manufacturer has seen exports soar after help from UK Trade & Investment (UKTI) From 10% of turnover in 2009, Transformers UK, in Jordan Street, now exports 67% of its products which include threaded screws, assembly parts and accessories for the electronics, motor and petrochemical industries. Its clients extend to Saudi Arabia, Hungary, Norway, Holland, Germany and Poland. Managing director Peter Marray said: “We realised that as a company we were very good at what we do, but not so good at promoting ourselves.” UKTI assisted with marketing and funding for trade visits to Saudi Arabia. Mike Connor, UKTI trade adviser, said the firm’s quality of manufacturing helped it find overseas clients when the home market contracted during the recession.
ENERGY expert BSOLAR is one of the first to install a “revolutionary” solar panel in the region. The Halsall-based firm has completed a job in Lytham, installing Sanyo HIT panels, a super-efficient product which can generate up to 50% more energy than a normal panel. It combines two of the best solar technologies available, and BSOLAR director Peter Bladen said he expects the new panels to become popular with homeowners across the North West. “These are a breakthrough in technology. They are very energyefficient, so less panels are needed, which is useful for people who have a limited amount of roof space available. “They also perform better under less than ideal circumstances, so are incredibly superefficient.” He added: “We have seen a huge increase in people across the North West wanting to have solar panels installed, which has been boosted by the Government’s Clean Cash Back scheme, and we are expecting this growth to continue with the introduction of the Sanyo HIT panels.” The scheme rewards homeowners who generate electricity from renewable sources by paying 43.3p per unit generated from panels.
From left, managing director Peter Marray and fellow directors Jim Black, Jeff Teare and Steve Marray
Businesses set to vote on proposal for second BID by Tony McDonough
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HUNDREDS of businesses in Liverpool’s commercial district will this week receive their ballot papers ahead of a vote on Business Improvement District (BID) status. More than 800 ratepayers will be balloted on the BID proposal, which seeks to raise more than £600,000 per year for enhanced marketing, maintenance and physical improvements through a levy equivalent to 1% of rateable value. The ballot opens on Friday, April 29, and closes four weeks later, on May 27, with a final decision expected three days later. A team of BID ambassadors has spent the past six months liaising with businesses about the proposals. An event is being held at Radisson Blu Hotel, on Monday, May 9, offering landlords and tenants the opportunity to answer any remaining questions about BID status. The application for BID status has been launched by Liverpool Commercial District Partnership (LCDP), which says the planned cuts in public spending have created the need for the city’s private sector to protect the area’s wider interests. If approved, it would become Liverpool’s second BID area. Paul Rice, chief executive of Liverpool CDP, said: “Business Improvement Districts have had an enviable record of success in cities around the world, and we are confident that BID status can confer similar benefits on Liverpool’s commercial district. “We have made every effort to ensure that landlords and tenants across the area are fully
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Speedy loses out in £35m accommodation hire sale by Neil Hodgson
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SPEEDY Hire has announced the sale of its temporary accommodation subsidiary for £35m. The Newton-le-Willows plant hire group has agreed a deal for Accommodation Hire with Elliott Group, part of North American modular building supplier Algeco Scotsman. Algeco will pay cash for the business that will come without any debt or cash reserves. Speedy Hire will use the proceeds of the sale to reduce its debt, to around
£80m. But it said that on completion of the deal, which is expected to take place on April 30, it will incur a £16m exceptional loss, of which about £12.5m is non-cash. This will be included in the company’s full-year financial results for 2011. As part of the agreement, the two parties will undertake a three-year partnering link-up to share customers, making their combined expertise available on an exclusive basis. Around 190 people work for the temporary accommodation business, which operates from 14 depots around the country.
Speedy Hire admitted that it had experienced “particularly challenging trading conditions” in the accommodation hire business in recent years, where excess capacity has affected prices, resulting in poor levels of profitability. The sale will allow the group to focus on its core operations, improving its margins and profitability. Speedy Hire chief executive Steve Corcoran said: “I am very pleased to announce the disposal of the loss-making Accommodation Hire business and the partnering agreement with Elliott. “From a customer service perspect-
ive, the partnering agreement we have entered into will provide our customers with a comprehensive accommodation hire offering from the UK’s leading businesses in this market. “By working as partners with Elliott, our customers can continue to benefit from an integrated service.” Mr Corcoran added: “Financially, the disposal delivers a pro-forma increase in both operating margin and return on capital. “It also delivers a reduction in group borrowings and enables Speedy to focus on investing in our higher margin core operations and to develop further our non-hire services.”
Business community rallies to back Help for Heroes MORE than £25,000 has been donated to three military charities after the latest successful Hope For Heroes concert, at Liverpool’s Philharmonic Hall. Warrant Officer Class 1 RSM Douglas Icke, who organised the event, decided to share the proceeds between Soldiers, Sailors, Air Force Association (SSAFA) Forces Help, ABF – The Soldier’s Charity, and Help for Heroes. It is the second concert he has organised, raising almost £60,000 in total, and said: “It seems only right that the proceeds should be shared among a wider spread of military charities.” The concert was supported by Honorary Colonel Ian Meadows of 33 Signal Squadron (Volunteers) which covers Merseyside and Manchester. Col Meadows, chairman of Liverpool firm RS Clare, said: “Douglas Icke did all the work, but I was pleased to use the connections we have with the local community to ensure a good turnout.” Next year’s concert will be held on March 3.
From left, Capt Bob Paterson (33 Signals), Dave Roberts (Help for Heroes, Merseyside), WO1 RSM Douglas Icke, Col Martin Amlôt (Chair SSAFA Forces Help Merseyside), and Ian Meadows (Hon Colonel 33 Signals) Picture: COLIN LANE/ tmcl210411rsclare-2
Bank celebrates award success
ATM Easter withdrawals fall as holiday ‘prudence’ reigns
CHESTER-BASED Bank of America Europe Card Services is celebrating after securing one of the industry’s most coveted European awards. The business scooped the Best Example of Service Excellence title at the recent Visa Europe Member Awards. The Bank, home to a workforce of around 4,000 people, was judged to be a “truly customer-centric organisation”, with a commitment to exceptional customer service. The Visa Europe Member Awards attracted more than 100 entries.
BRITONS showed signs of being more cautious with their spending over Easter, withdrawing less money from cash machines than during the same bank holiday weekend last year. New figures show consumers withdrew a total of £1.66bn from ATMs between April 21 and April 25, down
from £1.69bn during the Easter holiday period in 2010, according to cash machine network Link. The fall came despite the fact that the number of transactions people carried out increased, rising from 26.7m last year to 27m this year, suggesting people took out lower amounts of cash
per transaction. There was also a 12% increase in the number of balance enquiries carried out through ATMs during the bank holiday weekend. A Link spokeswoman said: “This is most likely due to the fact that it is the end of the month and people are being prudent.”
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Warning issued on cheque clearing CONSUMERS were warned yesterday that cheques could take up to two weeks to clear because of the high number of bank holidays occurring as a result of Easter and the royal wedding. The Payments Council said there were only five working days between April 20 and May 2, meaning that a cheque that was paid into an account on Wednesday April 20 may not have fully cleared until Wednesday May 4. Cheques show up in people’s current accounts two working days after they are paid in, but the money cannot usually be withdrawn until after four working days, while there is no guarantee that a cheque will not bounce until six working days have passed. The group also urged people to check the timescales for paying important bills over the coming days to ensure that they were not stung with penalty charges as a result of delays caused by the bank holidays. It advised people who usually paid bills by sending a cheque through the post to consider using the faster payments system instead, as the postal system was likely to be slower than usual because of the high number of bank holidays. Under the faster payments system, payments generally clear on the same day that they are made, even on a bank holiday.
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Supply shortages show how much the world depends on energy
Matt Johnson TOKYO is the world’s third-largest stock market. It’s also barely 230km from the site of the Japanese nuclear power station devastated by the com-
bined impact of earthquake and tsunami. The dreadful toll taken by those combined forces continues to rise as the country sets about another rebuilding process. The fact that the disaster struck in one of the world’s most advanced economies means the impact has spread far and wide. Had it not been, the rest of the world might have forgotten about it now. As it is, some of the biggest names in global manufacturing have been affected and so, therefore, are many other countries and the businesses in them. An example is Honda. The industrial giant has been
forced to cut production at its UK plant in Swindon because of a shortage of components. Honda’s suppliers serve other manufacturers in other parts of the world, too. Nikon is another seriously affected brand. All businesses need to plan for disaster recovery. Thankfully, disasters on the scale of that which befell Japan do not occur often. Yet, even in the wake of the awful human and material losses suffered across the country, there are positive signs for business reflected in the perform-
ance of some sectors traded on the Nikkei index. The immediate collapse of the market after the triple disasters was followed by an optimistic bounce. There are sound reasons for this, many of them to do with the economic benefits of reconstruction. Leading the optimists are the firms that look likely to do the heavy lifting: Sumitomo Osaka Cement and Taiheiyo Cement rose 17% during March. Equipment makers Komatsu, Mitsubishi and Kawasaki gained 10 to
‘Dreadful toll of the disaster continues to rise’
12%. Similar gains were seen in Oki Electric Cable, Showa Holdings and Totaku Electric. All these firms stand to benefit from the rebuilding of the electricity infrastructure. The closure of 11 of Japan’s 54 nuclear power stations and the part closure of several refineries has resulted in a reduction in energy supply of over 10%. This power shortage is hampering the reconstruction process, as factories grind along at severely reduced capacity. It shows the extent to which we all rely on energy. ■ MATT JOHNSON is chief executive of Mando Group
Venture enables exclusive clients to target customers TWO Wirral businesswomen have created a communitydriven website focusing first on the Peninsula and Chester, and aiming to roll out nationally within two years. Tanith Facey and Jo Cottrell will launch The Big Daily Deal Company tomorrow, offering heavily discounted deals on the best things to eat, drink and do around the region. It is aimed at high-end lifestyle sector businesses who want to make introductory online offers to a limited number of new prospects or clients for a specific period. The Oxton venture is targeting large businesses and organisations, and Ms Cottrell said: “The Big Daily Deal scheme also acts as a free employee discount club for employers. “Discount culture on the high street began in the early 90s and has spread online over the past decade. However, there has never been a community-driven portal service like The Big Daily Deal Company.” The venture will launch tomorrow at The Leverhulme Hotel and Spa, in Port Sunlight.
Jo Cottrell, left, and Tanith Facey, co-founders of The Big Daily Deal Company
Supermarket giants wait in the wings for Iceland by Martin Williams LDP BUSINESS STAFF
business@liverpool.com
RETAIL giants Morrisons and Sainsbury’s are among those reportedly preparing to take on Deeside-based Iceland Foods if an auction goes ahead. If the sale of a majority stake in the frozen food retailer triggers an auction for the entire value supermarket chain, the supermarket rivals are ready to step into the fray, according to newspaper reports this week. Morrisons, Britain’s fourth-biggest grocer by market share, is building a
chain of convenience stores and would be expected to examine any sizeable estates that came on to the market, they said. However, its interest is not thought to have progressed any further at this stage. It would join J Sainsbury in eyeing up Iceland, expected to be valued at between £1.7bn and £2bn. Sainsbury said last week that it would examine Iceland if it came up for sale. The Resolution Committee of Landsbanki, the failed Icelandic Bank, is in the process of appointing investment banking advisers to sell its 67% stake
in the firm. Asda bought Netto UK last year in a £778m deal, indicating that it is prepared to look at portfolios of smaller stores. Tesco might also be interested, although it could face competition issues. The Co-operative Group, which bought Somerfield in 2008, is tipped by some senior retailers as a potential buyer. The sale of Landsbanki’s stake is complicated by the fact that Malcolm Walker and the management of Iceland Foods own 26%. Mr Walker is currently climbing
Everest to raise money for Alzheimer’s Research UK, and will be away until early June. Last year, he made a £1bn offer for the shares in Iceland that he did not already own, which remains on the table, and he has the right to match any deal that is agreed. If the auction goes ahead, it would be one of the last chances for the major supermarket groups to acquire a ready-made chain of food retail properties. As well as the supermarkets, it is also thought that private equity investors may bid for the frozen foods chain.
JJB wins support for £65m cash-call AILING retailer JJB Sports secured support for a £65m fundraising after shareholders waved through the crucial move. The cash-call, which received the backing of more than 99% of shareholders, will allow the retailer to press on with the next stage of its restructuring plan, as set out in a deal with landlords and creditors earlier this year. The emergency rescue plan will see JJB close 43 unprofitable stores, place a further 46 under review and move to monthly rental payments. JJB had already secured the support of its four biggest shareholders for the fundraising, including the Bill and Melinda Gates Foundation. The move, which follows an additional £31.5m raised earlier this year, also guarantees a banking facility offered by lenders Bank of Scotland until 2014. Some of the additional cash will be used to roll out a new store format, which has so far been introduced at six outlets. The work, including new fixtures and fittings and a better store lay-out, will cost £6.1m in the current financial year and target 22 stores. A further 28 shops will be overhauled in the following year, at a cost of £7.8m. JJB said trading in the six transformed stores continued to outperform the remainder of the estate, with sales 16% above the company average for the period between November 1 and April 3.
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Wednesday, April 27, 2011
LDP business .co.uk Bill Gleeson Better or worse, richer or poorer – what will it be? IT’S A big week. An important bit of data to be published this morning by the Office for National Statistics will to some degree set the mood in the country, just hours before the Royal Wedding. I am, of course, talking about gross domestic product (GDP) figures for the first three months of 2011. Imagine if there is another drop in output. Coming on top of a 0.5% dip in the last quarter of 2010, it would mean Britain would have officially suffered a return to recession. It would renew people’s fears about prospects for their jobs and businesses, just as the Royal couple and their 1,700 guests enjoy a lavish and expensive celebration. On the other hand, if the GDP figures show strong growth, then the mood will be lifted. While the chances are that the data will be in positive territory, the national economy is still pretty shaky. The most recent indications are a source of concern. According to the Confederation of British Industry’s (CBI’s) latest survey published yesterday, Britain's manufacturers made a lacklustre start to the second quarter of 2011, with orders unexpectedly weakening in April, suggesting the recovery of the UK economy remains fragile. The CBI said its Industrial Trends manufacturing orders balance fell to -11 in April – its lowest since January – down from a three-year high of +5 last month. It is therefore particularly disappointing. A reading of +3 has been expected. The survey also adds to the Bank of England’s dilemma about how to curb inflation while the economy is still shaky. In a sign that inflationary pressures are continuing to grow, the CBI survey shows respondents think prices will continue to rise. Irrespective of the outcome of tomorrow’s data,
the overwhelming impression is one of continuing uncertainty about the recovery. Our economy will one day pick up, but it does not yet look as if the accelerator is about to pressed. The bad news from the manufacturing sector came on the same day as Bank of England Monetary Policy Committee member Andrew Sentance urged his fellow members to raise rates. He said in a speech delivered in Manchester yesterday that early action by the MPC to raise the bank rate was necessary if the bank was to maintain its credibility as a bulwark against inflation. Mind you, he has being saying that for some time. Mr Sentance, who is the most hawkish member of the MPC and steps down next month, said that the MPC had allowed sterling to weaken too much, and had sent signals to markets that it was prepared to be soft on inflation. Mr Sentance has voted for higher interest rates since the middle of last year, and called for a 0.5 percentage point interest rate rise at April’s policy meeting. I guess that’s why today’s GDP data is so crucial. Any sign of economic weakness could deter the bank from tough anti-inflationary action. Of course, if rates are increased at the next meeting of the MPC next week, it could result in higher mortgage interest payments for millions of people around the country already suffering from real falls in living standards as a result of rising inflation, petrol prices, wage freezes, etc. On the other hand, a poor GDP figure may inspire fears about unemployment. I wonder if any of this is bothering Wills and Kate. I doubt it. Their very privileged and cosseted futures are mapped out for them.
Building a 21s What potential does the knowledge economy offer the region? Tony McDonough reports HOW valid is it to include non-business assets when assessing the strength of the Liverpool city region’s knowledge economy? This was one of the major issues tackled in the latest of a series of LDP Business debates. The debates are being held to coincide with a major new push to grow the city region’s economy. Inward investment agency, The Mersey Partnership (TMP), and a host of other agencies, local authorities and private businesses have set out their vision for the next few years. They believe the biggest potential lies in four key sectors – the knowledge economy, visitor economy, superport and low-carbon economy. The May edition of the LDP Business magazine, free with the Liverpool Daily Post tomorrow, will take an in-depth look at the knowledge economy (KE). KE is broken down into four sub-sectors – advanced manufacturing, life sciences, creative and digital and financial and professional services. Daily Post business editor Bill Gleeson chaired the KE debate and joining him to discuss the issue were Professor Dennis Kehoe, chief executive of AIMES Grid Services; Peter Cook, chairman of SOG, owner of The Heath Business & Technical Park; Tony Bell, chief executive of the Royal Liverpool & Broadgreen University Hospital NHS Trust; and Philip Rooney, Liverpool office managing partner of law firm DLA Piper. Professor Kehoe asked whether the audit of KE assets in the city region contained too many public sector bodies as opposed to private companies actually generating wealth. He said: “When we read the knowledge economy report, we were seeing things to do with education. I think what we need to do is convert knowledge into wealth. The report concentrates on the public sector – schools and colleges. “We don’t have multi-million dollar knowledge economy businesses here. I think we need to distinguish between jobs in the private sector and in the public sector. We are in real danger of deluding ourselves. “This is not Silicon Valley. Knowledge to wealth is where the focus needs to be, rather than simply aggregating the assets.” Professor Kehoe also expressed surprise that those assets included the Liverpool Institute for the Performing Arts (LIPA). Tony Bell, who was involved in compiling the KE report, insisted the public sector bodies were integral to the future growth of the sector. He said: “The knowledge economy plan, as it is written, is described as a start point – not an end point. “It is about building a pipeline to create wealth. Health represents a £2bn slice of the economy. The way forward is to engage with business. “We recognise that it is not going to happen in the universities and hospitals. “When we were looking at the knowledge economy, we looked across the
Daily Post business editor Bill Gleeson, centre, with the four-strong knowledge whole city region and not just Liverpool itself. We looked at what assets there were – the knowledge capital that we have, and the business sectors that rely on that knowledge. “We looked at the growth that relies on the axis between education, research and innovation. “The performing arts is a rich part of the history and tapestry of this city and that is not to be ignored. “The performing arts make a contribution to the other sectors. They provide things like distraction therapies. We need to understand the breadth of what LIPA can provide.” Bill Gleeson also queried whether financial and professional services were relevant to the KE in the region. Philip Rooney replied that the existence of good professional firms in Merseyside was vital if growing firms were to have the support they needed. He added: “We are one of the leading cities outside London for wealth management. “We may not be saving peoples’ lives, but some of the work that goes on here is cutting edge. “We have a great maritime law experience here in Liverpool and we are pushing businesses forward. It is all about raising our game. “If we have a city region that wants to develop on the world stage, then we have to have a vibrant professional services infrastructure. Legal support is needed in this city for the knowledge economy.” Peter Cook suggested the focus on particular sectors may be too narrow an
‘It is about building a pipeline to create wealth’
approach. “I have a concern that we are focusing too much on sectors – because life is not like that,” he said. “If I have a criticism it is the identifying of the four sectors. We must not fall into the trap of just falling into four sectors.” Picking up the point, Mr Rooney added there must be integration between the different sectors in order to maximise growth potential. He said: “The way we can look at the framework is to see the four sectors as hooks that we can hang things on, not just silos going in parallel lines. “Things must tie in with each other – we have to look at the sectors and see where the crossovers are. “Jaguar Land Rover now has an established supply chain out in Knowsley. We have to convince businesses that there are supply chains in place that will attract them to stay.” All members of the panel agreed that if the growth of the sectors was to benefit the people of the city region, then a major push on education and skills was vital. Mr Cook said: “I believe the education system – in particular, schools and further education colleges – need to engage more with businesses. “They cannot just wait for businesses to come to them. “We need to locate some aspects of the education system within businesses. “I believe a lot more needs to be done. Schools have their own curriculums and agendas. We have got to get young people out into the business community.” Agreeing with the point, Professor
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lGreen decade: ENWORKS celebrates 10 years lRetail focus: Are the tills still ringing? lEducation: Building on successÈ The LDP magazine – free with the Daily Post tomorrow
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Kehoe added: “Young people do not have a lack of aspiration, but the world is moving at a tremendous pace. “A 21-year-old these days does not know enough – too many are technically not capable. They do not have the skills even if they have been to university. “We need to have funded internships that they can take part in while they are still at university.” And Tony Bell said: “Do we have the skill-set that we need? That will be decided over time. “What we need to do better is the integration between different sectors. We need to make sure what the universities are offering is top class. “The internships need to be in the business sector, and we need to get into the schools and let pupils know what happens in business – particularly in the laboratories and in the digital sector. They are not going to get that from their teachers.” Professor Kehoe talked about the need for much better digital infrastructure across the city region, and about AIMES’s £1m Fibrenet project, which will offer super-fast broadband to local businesses. “This city has missed out on the internet revolution. Fibrenet gives the city the opportunity to provide cloud computing services. We are utilising a fibre network laid down by the city council a few years ago – we are creating what you might call a digital inner ring road. “We need to build the power stations of the knowledge economy. If we can do one thing, then we can make this a much
more connected digitally advanced city. “In Seoul, for example, they have 100mb broadband going into homes – it is transformational. “What we have here now is absolutely sub-standard. That is the challenge – we have to build the infrastructure. “Previous generations have built great infrastructure – the sewage systems for example. Now we need infrastructure for the 21st century.” The panel discussed the issue of retaining talent, with concerns over both the loss of skilled graduates and companies migrating elsewhere. Mr Cook insisted the city region did have the facilities to attract and retain businesses. He said: “By and large, when small firms start up here, a lot of intellectual property is being developed and as they grow and employ more people they are less likely to up sticks and move somewhere else. “They are not quite as fickle and will stay in the area. Businesses will come from the South East because we have facilities here that they do not have down there – we must not undersell ourselves.” Agreeing, Mr Bell added: “We need to sell ourselves better. The London embassy was a good bit of inspiration by the leader of the council. “I am confident that we have the assets here and we have got to get a clear message out there.” ■ TO VIEW the LDP Business debate online, log onto www.ldpbusiness.co.uk
‘Do we have the skill-set that we will need?’
May LDP Business features interview with retail CEO THE latest edition of the LDP Business magazine, free with the Liverpool Daily Post tomorrow, features an in-depth look at the knowledge economy across the city region. It looks closely at the four KE sub-sectors – advanced manufacturing, life sciences, creative and digital and financial and professional services. As well as an overall assessment of the sub-sectors, there are also case studies of thriving businesses including Jaguar Land Rover and Pilkington. Also in this month’s edition, we profile one of the North West’s best-known and successful entrepreneurs – Malcolm Walker. He founded the Deeside-based Iceland frozen food chain 40 years ago. He lost control of the firm in 2001, but was back at the helm in 2005. During that four-year period, Iceland recorded annual operating losses – the only losses in its history. Mr Walker referred to the period as “the dark ages” and added: “Coming back and mak-
ing a success of it is two fingers to everyone.” The 64-year-old businessman also talks about his up-coming bid to climb Mount Everest. A key part of his mission is to raise at least £1m for Alzheimer’s Research, which is Iceland’s charity of the year. “Alzheimer’s Research is unfashionable, no-one talks about it,” he said. This month’s LDP Business magazine also looks at the work of ENWORKS, the regional environmental support service, which is celebrating its 10th birthday. The organisation helps firms to improve their profitability by using resources such as energy, water, materials and waste more efficiently. During the past decade, it claims to have helped firms achieve cost savings of more than £22m. This month, we also focus on the success of a 17-year-old collaboration between Balfour Beatty Engineering Services and Liverpool Community College, which helps to train young people.
private business Skoda drives Mitchell sales
CAR dealership Mitchell North West has driven ahead despite the recession, thanks to increased interest in the Skoda marque. The Cheshire Oaks group, which has Lexus, Skoda and Mazda dealerships, saw turnover in 2010 of £35.7m – up from £34.5m in 2009. Its latest accounts recently filed at Companies House, show pre-tax profits fell 1.9% to £1.4m due to higher interest charges. But the company’s four directors said: “Despite the continued economic gloom across the Western economies, we can report a successful year. “The overall volume of cars sold remained constant (net decrease of 28 cars). Each franchise fared differently, with Mitchell Skoda reporting an increase of 73 cars – perhaps reflecting the purchasing public’s emphasis on value brands. “Our performance reflected that of our manufacturers. Skoda has had a phenomenal year in terms of overall achieved volumes with over 43,000 cars sold in the UK.” But they added: “Mazda car sales performed well until the fourth quarter. We believe that the profile of a Mazda customer puts them in the most vulnerable category economically, as the country faces further redundancies and cutbacks due to the austerity measures put in place to reduce the national deficit.” The company, founded and led by Mark Mitchell, donates 10% of profits to charity each year. This year it gave £149,455 to projects “which have captured our imagination”. The directors said: “2011 will present an increased challenge as public sector cuts start to take effect. We believe we have the right skill-set within our staff to take us through these difficult times.” ALISTAIR HOUGHTON
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LDP business .co.uk briefing Pearson pays £140m for software firm PUBLISHER Pearson has unveiled a deal worth £140m to acquire New York-based Schoolnet, a software business set up in 1998 which gathers data to tailor learning for more than 5m students.
Worries over cash machines ONE-IN-FOUR people try to avoid using cash machines that are not located inside a bank branch, due to security concerns. Around 47% of people said they were worried the ATMs would have fraudulent devices attached to them, while 21% were concerned about being mugged, website MyVoucherCodes said.
Missing out A QUARTER of pensioners who are considering unlocking equity from their home are not claiming all of the benefits they are entitled to, while 18% are not claiming any of the handouts they qualify for, apart from the basic state pension, according to Key Retirement Solutions. It found that the average pensioner would be £675 a year better off if they claimed their entitlements.
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Trainers’ hard graft means venture is fit for business by Neil Hodgson
LDP BUSINESS STAFF
neil.hodgson@liverpool.com
A PERSONAL training venture is now hoping to extend its reach to the corporate sector after helping a growing client list achieve their personal goals. Goals, and the realisation of them, provided the inspiration for Chris Kiernan and his business partner, John McAndrew, in their venture, Fitness Junkies, two years ago. Chris, 39, and John, 28, were both working as instructors in lifestyle gyms, and part of their role was to help clients hit their own fitness targets on their regular visits. But, said Chris, they realised that for various reasons many of them weren’t hitting their targets, which led the pair to form their own training business a couple of years ago to try and ensure better results for all the gruelling work and energy that was being expended. Their non-military fitness bootcamps are run out of Stanley Park’s Isla Gladstone Conservatory, but the actual business of putting clients through their paces is almost always delivered in the open air, barring extraordinary weather conditions. Chris explained: “We are there rain, hail or snow. “We give out ponchos if it’s raining, but we get more people on bad days than really nice sunny days.” Customers range from nurses to solicitors, mothers and housewives, and Chris said: “We run the bootcamps for men, women and soon for children, aimed at helping people achieve their goals of losing weight, gaining weight, general conditioning, or for the social side and, in some cases, to overcome some of their fears.” After a successful pilot session, the partners took their business proposition to Merseyside Expanding Horizons, a society dedicated to encouraging social inclusion, and received financial backing to get started. They now train about 200 people each week at morning and evening classes for either £5 a session or a £24 monthly standing order for unlimited access, which allows clients to fit their training schedule around their own busy work and home-life commitments. This summer, they will extend their schedule to start two-day weekend fitness camps during May, July and August. Their group’s age range extends from the early 20s to their eldest client, at the moment, a 56-year-old. Chris said: “Most women and men are there for weight loss and to keep in shape. “Our best weight loss so far is three stones. “Some girls want to lose too much weight – the 18-25-year-old age group who are under peer pressure and want to look like people in magazines. “The issue then is for them to maintain their weight.” With 21 years of experience and a black belt in the Japanese martial art of Aikido, and 10 years under Liverpool Harrier John’s belt, the pair both possess the kind of discipline needed to help their clients stick to their
Chris Kiernan, from Fitness Junkie Bootcamp, puts clients through their paces Pictures: JAMES MALONEY/ jm210411fitness-2
Chris Kiernan is aiming to attract corporate clients Code: jm210411fitness-4
regimes. Everyone who joins their classes is assessed on their first visit, and weighed and measured by clothes size on a monthly basis. Chris said: “We give people updates each month and are always there for them, by email, text, facebook or twitter.” They also receive a healthy diet planner prepared as part of a link-up with Liverpool’s Castle Street healthy
eating cafe, SkinniMalinx: “We have been referring people to them and they have been referring people to us – it’s really good,” said Chris. He added: “People come along to lose weight. “But we also have people who have personal issues, who have lost loved ones to cancer and want to run charity races. “We get them in condition to run
that race in their own time.” The pair also organise a monthly social event, such as a zipwire day in Delamere Forest, white water rafting in North Wales, or, sometimes, a night out at a comedy club: “It keeps people interested in the bootcamps.” Chris added: “There are businesses like us all over London. “But in London it’s a bit of a trend – to us it is a lifestyle.” And he explained that now Fitness Junkies has become established in its own right, he and John hope to grow the business by targeting the corporate sector for their own brand of health and fitness programmes. Not only did Merseyside Expanding Horizons help Fitness Junkies with funding and valuable advice on a business plan and, nowadays, the essential art of networking, but the society allowed the two partners to hone their corporate offer by taking part in a 10-week programme of sessions tailored for the organisation’s own staff. Chris said Expanding Horizons’ support has helped him and John in so many ways: “They were really brilliant.”
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Whittalls buys off-licence outlets from administrator A MULTI-MILLIONAIRE businessman has bought nearly half of independent wine merchant Oddbins’ remaining stores for an undisclosed sum, it emerged yesterday. Whittalls Wine Merchants, a subsidiary of Raj Chatha’s EFB Group, has saved 37 Oddbins stores after the ailing retailer went into administration last month.
The move will secure more than 200 in-store jobs and leaves 52 stores in the hands of administrators Deloitte. Oddbins, which recently shut 39 stores, had hoped to push through a rescue deal, but the HMRC, which was owed £8m by the off-licence chain, refused to vote for the scheme. Mr Chatha, who has pre-
viously featured in the Sunday Times Rich List, is said to be worth around £50m. He set up European Food Brokers (EFB) wholesaling business in Halifax in 1991 and subsequently expanded into cash and carry. It is now a leading independent drinks distributor. Mr Chatha, who bought 12 branches of the Unwins chain
and 109 stores from Wine Cellar Stores for his Whittalls chain, said the acquisition would help Whittalls push into London and Scotland. He said: “This represents a new dawn for these Oddbins stores, and with the wellreported financial shackles removed, it will allow for a consistent supply of stock and investment at store level for
the benefit of all, most importantly its loyal staff and consumer base.” Mr Chatha said the focus for the coming weeks would be to replenish the 37 stores. Oddbins was the latest victim of a declining independent wine trade in the UK, which also saw Threshers’ owner, First Quench Retailing, collapse in 2009.
GDP figures to reveal strength of UK recovery by Jamie Grierson
LDP CORRESPONDENT
business@liverpool.com
CRITICAL figures to be released this morning will reveal whether the UK economy has rebounded from a shock decline and is tough enough to withstand the Government’s severe spending cuts. Economists expect gross domestic product (GDP) – a broad measure for the total economy – to have grown by anything from 0.2% to 1.2% in the three months to March, following the surprise 0.5% contraction in the final quarter of 2010. But analysts have warned anything less than 1% will be disappointing, and the figures are likely to show average growth over the last two quarters was broadly flat. The figure, released by the Office for National Statistics, is subject to revision but will put the coalition Government’s deficit-busting plans under the spotlight once again, and will indicate if the economy is robust enough to withstand the fiscal squeeze. Policy-makers at the Bank of England are awaiting the figures to help determine whether the economy is strong enough to withstand an interest rate hike, as inflation remains well above the Government’s 2% target. The severe weather in December was blamed for the unexpected reversal in GDP in the three months to December, though activity would have
been flat without the Arctic conditions. The weakness raised doubts over the timing and size of Chancellor George Osborne’s £81bn package of spending cuts, and the VAT hike from 17.5% to 20%. Today’s figures are a preliminary estimate, which have been heavily revised in the past, and do not include the expenditure side to the economy. But a weak period for the construction sector and industrial production, coupled with modest growth for the powerhouse services sector, means growth in the first quarter is likely to be muted. Howard Archer, chief UK and European economist at IHS Global Insight, has forecast growth of 0.6% to 0.7%. He said: “While at first glance this looks a decent performance, in actual fact it would represent a far from dynamic performance, after weather-influenced contraction of 0.5% in the fourth quarter of 2010. “Just as the fourth quarter 2010 contraction overstated the economy’s weakness, so will growth in the first quarter of 2011 highly likely overstate its strength.” The majority of the Bank of England’s Monetary Policy Committee, who voted in favour of holding interest rates at historic lows of 0.5% earlier this month, want to see how the economy has fared before tightening monetary policy.
■ BILL GLEESON: Page 8
Chancellor George Osborne will have an eye on today’s GDP data
Slowdown in manufacturing FURTHER signs of a “worrying” slowdown in the manufacturing sector emerged yesterday, amid warnings that fresh price hikes are on their way to consumers. Manufacturers enjoyed their
strongest growth for 16 years over the past three months, according to a survey by the CBI, but there are indications that its pace could slow. A balance of -11% of companies said order books were
higher than normal in April, compared with a positive reading of 5% a month ago, casting doubts over whether they can continue to provide the same level of support to the UK’s economic recovery.
Sandwich boost for M&S supplier
Virgin deal
MARKS and Spencer food supplier Uniq yesterday said it was on the road to recovery after a surge in sandwich sales helped it post a return to underlying profits. The group, which also
VIRGIN Active flexed its muscles yesterday with a £77.6m deal to buy 55 Esporta gyms, a move that will nearly double its size in the UK. The operator of 71 fitness clubs is stepping up its pace of growth with the first major acquisition since it bought Holmes Place five years ago.
makes salads and desserts for companies including Costa Coffee and The Co-operative Group, made profits of £4.1m in 2010, compared to losses of £1.9m the previous year, but raw
material prices and competition mean it still faces another challenging year. Uniq’s prospects have been boosted by its recent tackling of a £436m hole in its pen-
sion scheme, a legacy of its previous incarnation as dairy giant Unigate. It resolved the pension burden by transferring 90% of its shares to the fund. The scheme had 21,000 members.
news
House prices ‘over valued’ THE majority of Britons think property is over valued, but only one in four people are predicting further house price falls, a survey published today suggests. Around 25% of people think house prices will drop during the coming year, down from 32% who were expecting them to slide further when the same research was carried out during the first quarter of the year, according to property website Rightmove.co.uk Instead, 40% of people think prices will be broadly unchanged 12 months from now, the seventh consecutive quarter during which the proportion of people expecting there to be no change has increased. But, despite predicting house prices will be stable during the coming year, 48% of people said they thought property in their area was overvalued, rising to 66%among first-time buyers. People in London were most likely to think house prices were too high at 61%, followed by 53% in the South West and 52% in the South East. Miles Shipside, director of Rightmove, said: “There is a growing sense that many homes coming onto the UK housing market are priced too high, and this is borne out by the views expressed in this survey.”
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More must be done to attract outside investment into city
view point
by Mike Carr, managing director of NSG
THE vital importance of continuing the high-profile campaign to promote Merseyside as a place to invest cannot be overstated.
Unit sold in deal worth £2.75m THE North West Capital Markets team at CB Richard Ellis (CBRE) has advised on the £2.75m sale of 1 Chesford Grange, Warrington, on behalf of clients of CB Richard Ellis Investors. The 112,000 sq ft industrial unit was purchased by Wellbeck and is let to discount warehouse, JTF. Chesford Grange is adjacent to the M6, close to Junctions 10 and 11 of the M62 and two miles from the M56/M6 interchange. Rob Woods, associate director in the Capital Markets team at CBRE, said: “Chesford Grange is an excellent proposition for investors, presenting the opportunity to acquire an incomeproducing asset. “Warrington has one of the strongest economies in the country, and its unrivalled location has resulted in the town becoming one of the region’s primary industrial hubs. Chesford Grange is a good long-term investment, due to the fact that demand will always exist for good quality industrial space.”
Nowhere is this more keenly felt than the property sector. That is why, as a construction business, we have become a sponsor of the Liverpool Embassy, in London. We want to see Liverpool assert itself as a modern global city. We have been lucky to work on a number of the big projects that have driven such exceptional progress in recent years, including Liverpool One, the Echo Arena, and Liverpool Lime Street. These projects have transformed our city, and the city is lucky to have the support of the Duke of Westminster, who has invested in and believed in Merseyside.
However, Merseyside cannot achieve its property ambitions without attracting more investment from London and overseas. Merseyside has dispelled much of its stereotypical image. It is recognised as a region with a can-do attitude that can confound expectations. This is what the Embassy must capture and shout from the rooftops. Yes, southern cynics may still grumble, but the embassy is about rising above ignorance and changing attitudes with hard facts
about our progress. Peel’s Superport and Ocean Gateway plans are tremendous examples of what could happen. And Peel’s championing of Merseyside at the highest level of government in China cannot be praised highly enough. However, we cannot get carried away. Peel’s plans reflect the modern world. We are catching up. And this game of catch-up is becoming much tougher. Employers’ organisation, the CBI, warned this month that the UK risks
‘We are a region with a can-do attitude’
Downing appoints joint agents for city property by Tony McDonough
LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com
BUSINESS to BUSINESS
Industrial Property UNITS TO LET Bootle Area 5,000−15,000 sqft. Flexible terms 0151 486 0004
Commercial Premises INDUSTRIAL UNITS To Let. South L’pool 500 to 4000 sqft, monthly tenancy, competitive rents. From £50pw Tel: 0151 427 5051 TO LET Industrial Units L’pool City Centre 0151 227 9191
losing foreign investment overseas. It pointed to figures that foreign investment in the UK fell during the recession, from $186.4bn in 2007 to $45.7bn in 2009, and the UK’s reputation as a good place to invest is under threat. This is why Liverpool has been shrewd to go out and bat for itself and follow Capital of Culture with the Shanghai Expo and now the Embassy. The challenge is to maintain the momentum. Liverpool is one of the few UK cities that is a global power brand. That is our ace card and we must continue to play it thoughtfully and well – our future depends on it.
Downing’s Federation House, in Hope Street, Liverpool, offers 5,650 sq ft of commercial space
PROPERTY group Downing has appointed two agents to market one of its key office sites in Liverpool city centre. Knight Frank and Mason Owen will market 5,650 sq ft of space at Federation House in the city’s cultural quarter. The space is located across three floors and comprises a first floor suite of 3,150 sq ft, which can be split, and further suites of 1,050 sq ft, 850 sq ft and 600 sq ft on the fourth and fifth floors Federation House is a fully refurbished, five-floor mixed-use building with a sculptured concrete façade and a secure off-street car park. Located in Hope Street and close to the city’s universities and cathedrals, current tenants include the Liverpool Philharmonic, Mencap and restaurant chain, Ego. Robin Ellis, senior agency surveyor at Downing, said: “Federation House is unique in this part of the city as it offers high-quality, modern flexible office space and has attracted a diverse range of tenants. “Working with two very active agents in the area, along with the advantages of the building, we are confident that the space will attract strong interest in the coming weeks.” Andrew Owen, head of office agency at Mason Owen, added: “The suites are already generating good levels of enquiries.”
Farmlandinvestment‘attractive’asvalueshitrecord A REPORT by Knight Frank reveals that UK farmland values are hitting record highs. The study says farmland values rose by 3% in the first three months of the year, and are now 11% higher than 12
months ago. This means the average price of agricultural land in England is now almost £6,000 an acre, taking it to a record high. Farmland has performed far more strongly than many
other asset classes over the past 10 years, the report adds. Tom Raynham, of Knight Frank’s farm sales team, said: “This resilience is part of what makes farmland so attractive as an investment,
and should help ensure values continue to rise steadily during 2011. “When you look at the performance of other investments, such as the FTSE 100, the farmland market has been
far less volatile and survived the credit crunch in much better shape. “That hasn’t been lost on private investors, and we have noticed a lot more interest in good quality arable land.”
13
Wednesday, April 27, 2011
LDP business .co.uk
LIVERPOOL’S INVESTMENT SPECIALISTS
IN ASSOCIATION WITH
Proceeds of UK property auctions plummet by 19% THE value of lots sold at auction in March fell 22% to £274m against the same months last year, latest figures show. Data from the Essential Information Group (EIG), the UK’s leading source of property auction information, also showed the percentage of lots sold crept over 70% for the first time since February, 2010. March was in complete contrast to February. Last month saw falls across both the residential and commercial sectors in both lots offered and sold, and in the amount raised. February, however, saw increases in the same metrics, though percentage sold was down in February but up in March. In the commercial sector, lots offered and sold were down 26% and amount raised down 52%. The residential sector saw a drop in lots sold of 1.7%, and the total raised by 0.9%. EIG says the improvement in sale rate and reduction in lots offered and the amount raised would suggest that one of the factors could be auctioneers being more selective on the lots taken.
Auctioneers are being more selective on the lots they allow into auctions, according to the EIG
Tenant demand up, says study by Tony McDonough
LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com
BUY-TO-LET mortgage specialist Paragon is reporting a rise in tenant demand for the first quarter of this year. Its latest private rented sector trends report reveals that 49% of landlords recorded growing levels of tenant demand during the period, compared with just 5% who said it was falling. The proportion of landlords reporting growing tenant demand was up from 40% during the final quarter of 2010. The proportion of landlords reporting increasing levels of tenant demand has now risen for seven consecutive quarters. The study also found that landlords expect tenant demand to continue strengthening with 52% expecting demand to increase over the next 12 months, and only 6% forecasting a decline. Nigel Terrington, Paragon Group chief executive, said: “Landlords are experiencing high levels of tenant demand, and this is expected to rise due to a number of factors, including social housing reforms, lifestyle choices, low numbers of first-time buyers and wider demographic changes. “We are seeing evidence that strong tenant demand is feeding through to higher rents. “A lack of available mortgage finance is restricting the sector’s ability to expand and needs to be addressed to create a healthy and vibrant buy-to-let market in the UK.” Paragon’s Q1 2011 PRS Trends Report, which covers the three months to March 31, also shows that buy-to-let mortgage finance
When exceptional people come together, great things happen. Tenant demand is rising availability remains low – 64% of landlords said that availability was limited. It said that landlord confidence had strengthened, with 23% saying they were more optimistic regarding the performance of their property portfolio Yields increased to 6.2%, the highest level since Q4, 2009 The average number of properties in a portfolio stood at 13, with an average weighted portfolio value of £1.51m.
So when Weightmans and Mace & Jones merge to become one firm on 1 May you can expect something special to develop. Weightmans and Mace & Jones. Together we are stronger. Find out more at www.weightmans.com
Mace&Jones
location
Cannes do raises £6,000 THE annual No Cannes Do event, held in Liverpool last month, raised £6,000 for two charities supported by Liverpool Community Voluntary Services. The funds will be split equally between the Edge Hill and District Credit Union, a community bank based predominantly in Kensington, Fairfield and Old Swan, and Moving on with Life and Learning (MOWLL), which supports those with learning disabilities and mental health issues towards independent living. Stuart Keppie, of Professional Liverpool, presented Andrew Lovelady, trustee of Liverpool Community Voluntary Services, with the cheque. Mr Keppie said: “This year’s event was a great success attended by more than 400 of Liverpool’s property professionals.”
14
Wednesday, April 27, 2011
LDP business .co.uk Aerospace & Defence
32334 206
Index 3389.65 ▲ 35.50 258
8512 Avon Rbbr
249
+112
36978 29434 BAE Systems 32938xd +478
Hend Smllr Cos 30518
+18
36278 27314 Law Debenture 35514
+234
252
18614 Scot Am
252
+218
525
40978 Witan
525
+11
73612 51958 Chemring
669
-6
Fixed Line Telecoms
26614 19214 Cobham
22778
+2
Index 2358.49 ▲ 41.85
38078 26134 Meggitt
35838xd +678
665
63712xd +612
535
Rolls-Royce
15912 10438 Senior
153
19314 10978 BT Gp
-18
92
Automobiles & Parts
21614xd
87512 610
Barclays
395
30178
+3
Bco Santander 73314
+738
15234 1912 Ireland
2214
+12
7758 5012 Lloyds Banking6038
+12
5614 3758 Ryl Scotland
4178
1959 1525 Stan Chart
162412xd +2
31278 Sainsbury
44058 37712 Tesco 112
74
Thorntons
+5
34114
720
47712
AB Foods Carrs Mill
33
+214
40634 +1138
30
24 +5
715 xd
21
Health Care Equip & Serv
Index 9584.00 ▲ 105.57
7534 4134 Nth Foods
73
+14
Index 3756.69 ▲ 33.99
3118 16
+4
607
1205
+2
2263
+2
1995 1688 Unilever
1988
+24
+48
1809
-2
2100 1460 Johnsn Mat
1948
+24
340
-634
1383 88612 Kier Group
1360xd 60 119
933
+2
1466xd +838
6312 2834 Low Bonar
+2
80512
+112
51312
London Stk Ex 874
74
1257 76212 Rathbone
1204
+9
1922 1154 Schroders
1856xd
+5
720
+718
44858 28412 Intl Power
32418
+318
1339 1010 Scot&Sthrn
1339
+18
36738 Cooksn Gp
697
Coral Prod
1058
758
Cosalt
418
338
38412 29038 Rexam 226
108
Smith DS
1429 1008 Smiths Gp
Electronic & Electrical
38412 21058 1336
+1812
+5 -334
705
38312 Domino Ptg
63612 +2712
9834 Laird
133
+158
320
16712 Morgn Cru
29758
+258
774
256
744
Volex Gp
2514 1214 Ashley L
-1
301
31114 221
Brown (N) Gp 29938
7738 53
Debenhams
-114
550
Index 6132.86 ▲ 40.28
511
Bellway
705
McBride
134
+114
34814 Halfords
38334
4314 2214 Taylor Wimpey 3812
34618
18212
85312 567
+858 +38 +14
91512
+25
2512
-1
27714 19812 Kingfisher
27278
-78
Br Assets
13714
+158
245
870
Candover Inv 61612
+234
1112 JJB Sports
228
17118 Dunedin IncGth 224 xd
+2
42712 32638 M & S
38338
+234
142
10034 Dunedin Sml
140
+2
62712 382
40934
-1434
46214
+34
2313 1868 Next
2225
-14
46714 366
Edin Invst
66012 53012 Edin US Trkr Tst 64914 31634 25138 Forgn & C
High
96 2314 28712
Low
241 Albany Inv Tst
92
2012 Anglesey Mining
594 1258 1170
-19 -34
8434
334 AEA Technology
764 AMEC
3912
2659 46918
Price
39 Adv Medical
22934
2885 1724 Signet Jwlrs 523
39814 WH Smith
Balfour Beatty
29 Beale 49258 Compass Gp
4 34
Var 5Day
-214 +38
28512
-212 +1 +112
High
479 9112 96412
1063 578
1063xd +22
IMI
4312 Molins
96 xd
220
115
MS Intl
214
-1
45
23
Renold
3512
-12
2025 1344 Spirax Srco
1980xd
1897 846
1897
Weir Gp
48914 Prudential
835
59412 433
D Mail Tst
7534
1149 864
1141xd +10
Pearson
59012 46058 Reed Elsevier 526 xd 66
STV Group
Low
5934 IS Pharma 683 JD Sports Fashion
+1
355 Nichols
12112
8312 NWF
4014
1934 Park Gp
1257
Vernalis
Rathbone
9712 Redrow
Price
13612
+12 +312
Var 5Day
+738
8812 91512
+914 -1
35314 28438 Big Yellow Gp 33034
777 xd +1412
6655 4425 Randgold Res 5195
-110
41814 Brit Land
545
Land Secs
33114 25014 SEGRO
Software & Comp Servs
5514 3234 UK Coal
4014
-14
Index 728.65 ▲ 6.58 1975 1271 Autonomy
1630
+10
Index 3949.10 ▲ 87.45
6112 3012 Emblaze
57
-212
36414 23014 Invensys
33678
+6
12612 85
10138
+178
608
+512
Vodafone Gp 173
+378
Nonlife Insurance
Kewill
14714 10134 Logica
13438xd +58
302
28714
Index 1629.14 ▲ 6.45
22234 Sage
1753 1238 Admiral Grp
1660
180478xd -358
1535 xd +312
2314 334
AEA Tech
658
740
820
63512 Capita
736 xd
Bunzl
+6
307
20214 Electrocmps
27458
+14
819
572
808
44934
-514
2001
-2
2293 1554 Ryl D Shell B
2293
+39
1493 99112 Tullow Oil
1450xd
452
+3
Personal Goods
24134 Hyder Cons
29634 18312 Interserve 545
33734 Menzies J
1291
+20
409
33158
+2
1127 709
Travis & P
2261 1223 Wolseley
Index 918.70 ▼ 2.86
Price
Var 5Day
+38
+458
3514
1914 Speedy Hire
2834
+134
+112
49
3534 Sportech
4314
+12
+1 2
+14
3914
2514 Telme Gp
3914
+34
+314
490 xd
+712
+5
5514
3234 UK Coal
4014
-14
+534
11112 xd
+112
+112
4014
+14
+3 4
1 34
1995
1688 Unilever
1988
62812
507 Utd Utils
62012
API Gp
2514
Armour Gp
512
557
19012 Cape
556
812
2
CDU
2
134
1
Crimson Tide 112
238
112
Dawson Intl
2
838
414
Eckoh
838
17312 55 51 148
+11
7634
-7
670
Redhall Gp
7312
1112 Scapa Gp 115
51
+38
+24
+34
+4 +1312
-
211.77
3.62
169.62 4.36
GUARDIAN Index-Linked Acc
-497.74
523.93
-
International Acc
-1013.03 1066.34
-
Pacific Acc
-244.96
257.85
-
Property Bonds
-1992.62 2075.65
-
HSBC INVESTMENT FUNDS (UK) -
106.70
-270.20 -
Gilt & FI Gilt & Fixed
-
0.99
270.20 3.04
63.21
-212.90
Monthly Inc
3.50
212.90 3.25
133.50
3.61
HENDERSON HORIZON FUND
UK Equity Inc A
1051.50
- 53.66 -
-
56.06 4.40
449.40
-
273.10
-317.58
2.95
1.10
330.29 1.10
European
-
826.90
0.70
Far East
-
576.00
1.80
Inc & Gwth
-
208.70
3.30
International
-
424.80
0.40
North Amer Acc
-
466.00
0.10
+1 +214
120
67
Uniq
7634
+218
510
Young A
580
-4
224.24
0.37
FUNDS High
Low Funds
Price
Var
Consols
£90932 £582732
Swallowfield
-
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
+12
£741516 Cons 4% .................£7734 £4934 Cons 212% ..............£5112
Conversions
£8134
£69 Cnv 312%.................£7212
£1092732 £1012532 Cnv 9% 11 ......... £1012532
-132
Treasury
Currency
Tourist
Buy
Sell
Australia
dollars
1.46
1.526
1.531
dollars
1.11
-158.28
Sing ASEAN
Country
Canada
Pratical Inv
917.93
-1
12
1069
Income
-
INVESCO FUND MANAGERS
£ ABROAD
▲ 0.88% 13534 xd
712
Portmeirion P 48712xd -212
2147xd
0.14
+4
Metalrax
+134
780.60
+10
355
2834
-
GARTMORE FUND MANAGERS
1475
4
+218
Sth East Asia
62012
Utd Utils
12
+234
0.61
62812 507
550
9478
0.72
1985.00
1513 1086 Severn
4712
Smiths News 10134
126.40
-
UK Advantage Inc
3034 Man Brnze
13312 8414 Rentokil
-
Spec Sits
Capital
86
+134
Jpan Spec Sits
+5
3512 1534 Johnson Serv 3338 xd
27858
0.36
+7
+8
30834 20838 Prem Farnell
4.19
223.10
64712
+34
+1
201.30
-
115712
36334
539
-
Japan
HILL SAMUEL UNIT TST MGRS
27412xd
+238
79
+6
+114
33638
3514 1914 Speedy Hire
1291 61212 Burberry Gp
+7
Income Plus
Sterling Bd Unit Tst
28078
34634 15214 Northgate
126
Index 21331.54 ▲ 303.29
Experian
28234 23734 G4S
+38
+14
+812
1.16
48278 Pennon Gp
1514 412
783
331.90
650
+7
493 xd
-
48414 National Grid 607
26
36014 Berendsen
Gwth & Inc
633
-3 4
493
0.32
European Smllr Cos A -
333
1170 89712 Dee Valley
611.10 1851.00
+22
Utilities
20212
3338 xd
+734
1715
34618 26412 Centrica
-
British
-234
Yield
-
Balanced
+58
23618
1887 1266 Whitbread
1710xd +44
Ashtead Gp
+112
Ultima
25012 16114 Thomas Cook 16534
Offer
Price Gross
Amer Spec Sits
+3 +2
TUI Travel
Price
American
-3 8
+158
20778 77
76512
Low
152 xd
23434
27934 190
Bid
Terms
FIDELITY INVESTMENT SERVS
+258
32212 20814 Restaurant Gp 32212
1710 1157 Aggreko
54912 De La Rue
11434 RSA Insurance
Mitchells&Btlrs 31814
15234 9434 Rank Gp
+38
984
2140 1085 Premier
78
434
+358
14312
+1
AIM
46414
High
10414
Punch Taverns 7758
Index 4621.59 ▲ 31.16
+20
Oil & Gas Producers
2
+214
Support Services
186914 124918 MarshMcL
26634 PZ Cussons
+978
Index 4705.27 ▲ 53.51
Mobile Telecoms
+1
+9
32278xd +214
+3
-1
+358
+758
+4
14914xd
23514 16034 Stagecoach
440512
2512
1204
588 xd +812
4712 2812 Rio Tinto
+25
12912
+614
40958
588
274
9134 58
777
up 10.62
34038
361
Index 1958.11
40958 28012 Gt Portland
+114
Intercontl Htls 1304xd
11718 8978 Marston’s
31
-1
49434 +1278
9312 4814 ITV
47258
Holidaybreak 266 xd +312
50
+14
+6
1173
240
3934
1645
AMEC
41258 31114 FirstGroup
Cancel Fund
Euro Sel Opps
21278 Intl Cons Airlns 22958
1391xd
1251 764
+738
12234 Ladbrokes
1671 965
Index 26047.03 ▼ 52.01
+2
14934
+3
294 xd +418
34038
285
2919 2157 Daejan Hldgs 2720
Cairn Energy
32214 easyJet
157
+1
49314 366
479
13914 8438 Enterprise Inns 9534
+41
+1012
30278 BP
+2
126012 +1112
1649
625
-9
49258 Compass Gp 57512
3068
2560
BG
2366
594
131812 1095 GlaxoSmthKln
263112 168412 BHP Billiton
Inmarsat
3153 2037 Carnival
3385 2772 AstraZeneca
1682 76312 Fresnillo
Oil Equipment & Services
1534 Johnson Serv
+55
+2
Standard Life 21518xd +234
32214 easyJet
76212
755 xd
83812 53612 BSkyB
49518
115712
+5
Media
3512
Coral Prod
1396
Index 4237.61 ▲ 19.54
-114
89712 Dee Valley
1634 761
156412 984
118 xd
-234
+ 18
3132xd -30
12912
Travel & Leisure Index 4714.47 ▲ 32.74
1435 982
Real Estate
3437 2254 Anglo Amer
Index 8799.82 ▲ 78.73
12234 7214 Lgl & Gen
6714
1058
-1
BBA Aviation 21312xd +212
43814xd +478
1112 JJB Sports
+2 +1212
74512
575
+27
Index 9187.01 ▲ 93.42
WPP
18234
2071
+1
84612 608
821
2071 1753 Imperial Tob
-338
-514
Kazakhmys
2637xd+4312
49138 37614 Greene King
13334
1983 1355 Lonmin
2637 1959 Br Am Tob
360
14312 11434 RSA Insurance 13534xd +38
47778 29414 Aviva
245
3012
+23
Index 4543.14 ▲ 42.37
154
Tobacco
Pharma & Biotechnology
UTV
Antofagasta
+1
-12
48018 Utd Business 59112xd
-6
Index 2618.01 ▲ 12.58
+33
xd
+12
Industrial Transportation
+3
32614
4734
106
+318
108
755
-34
-26
725
+618
372
1173
57512
478
807 xd +2212
DAILY POST REGIONAL INDEX 1218.83
1251
35714
+934
31258xd +312
Mothercare
Charter
24434 173
-114 -634
JD Sports
Bodycote
31134 21114 Resolution
21834
96412 683
+38
33638xd
+218
35878
380 xd +212
+358
38634 18314 Fenner
+18
100 xd
10234 7134 Psion
16014 10234 Spirent Comms 13418xd
+634
151
Life Insurance
414
23718 Inchcape
12912
14934 9712 Redrow
24034 175
28058 18812 Home Retail
14012 105 577
6814
3338 1134 Dixons Retail 14
Equity Inv Instruments
29312 Alliance
21
+34
20118 114
Index 1725.95 ▼ 0.16 179
10934
+312
+9
General Retailers
Index 3023.03 ▲ 44.69
126
Barratt Dev
Index 7238.30 ▲ 82.08
-2
+14
32138
+1
Industrial Engineering
Index 3369.98 ▲ 36.55
45018
Oxford Inst
Aga Rngmstr 124 xd
+2
999
1258 478
76112
62512 +2012 25
1473 1042 Go-Ahead Gp 1373
Mining
+3
General Industrials
Index 8256.66 ▲ 113.23 Drax Gp
544
+212
1033 72812 Provident
+138
Electricity
32614
Close Bros
+612
3648 3015 Reckitt Benck 3261xd -29
27212
57012 34158 ICAP
190414 104014 CRH
12012 7834 Marshalls
25178 3i
88812 664
Index 4125.51 ▲ 28.92
22734xd
-1
Index 6063.04 ▲ 38.49
Construction & Materials
35714 22934 Balfour Beatty 32614xd
588 xd
General Financial
+43
670
15914 4534 Trinity Mirror
Index 6360.98 ▼ 28.58
12718 70 61012 36758 Mondi
16758
Costain
53712 Smith Nph
Household Goods
138
22838 ARM Hldgs 1934 BATM
Index 30336.47 ▲ 470.45
s............ dealing suspended xd.............price ex-dividend xs ......... price ex-scrip issue xr ........ price ex-rights issue xc ..... ex-capital distribution xa................................ ex-all £......price value in £ sterling
Index 27119.39 ▼ 42.40
Index 6333.56 ▼ 10.77
16958 5834 Elementis
18512
742
Forestry & Paper
Index 7239.76 ▲ 67.74 Croda
+12
60312
Chemicals
1809 901
Premier Foods 3058
40918 Tate Lyle
651 41
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.
Apr 26, 2011
+234
1339
3148.96 ▲ 0.79%
Those securities which have increased in value since the previous close are shown in bold type.
Oct 26, 2010
38478
40014 +1018
T W T F
FTSE-Rebased
Share price (pence)
42478 33934 Dairy Crest
Barr (AG)
M
27
Beverages
36412 Britvic
Apr 18 - Apr 22
SPEEDY HIRE
-612
2306 1827 SABMiller
380
Apr 11 - Apr 15
74212
1258 1025 Diageo
377
Apr 4 - Apr 8
8112 xd +134
1045
5994.85 ▲ 0.11%
UNIT TRUSTS
Index 802.08 ▲ 18.04
KEY 20-Day Moving Average
SPOTLIGHT
29138
Index 5298.20 ▲ 53.58 1182 918
20 DAY MOVING AVERAGE up 6.86
5865 5790
6069.36 ▲ 0.85%
FT ALL-SHARE up 24.61
90712 74212 Cranswick
1342 900
45712
61
Food Producers
65958xd
265
KCOM
30614 25758 Morrison W
73078 59614 HSBC
518
41
+114
FT-SE 100 INDEX up 51.06
FTSE-100
Index 4758.79 ▲ 106.20
+5
Index 4789.67 ▲ 13.27 25538
-18
Tech Hardware & Equip
Closing Indices
5940
Food & Drug Retailers
Banks
36114
+414
4718 Cble&W Wwide 4718
6512
Index 5057.24 ▲ 116.91 23718 10914 GKN
19314
Keep track of all the major share moves of the day with our live FTSE ticker at www.ldpbusiness.co.uk
FTSE 100 INDEX
6090 6015
6278 4438 Cble&W Comm 4534
LondonStockMarketatClose
1.49
1.565
1.567
£61 £1171516
£50 Tr 212% ................. £522132 £109 Tr 9% 12................£10934
-12132
Denmark
krone
8.02
8.388
8.398
£10738 £1032132 Tr 5% 12............. £1031116
European Union
euro
1.08
1.125
1.126
£121516 £1152532 Tr 8% 13................£11638
+18
Japan
yen
128.26
134.790
134.890
£114332 £109532 Tr 5% 14................£11038
+532
New Zealand
dollars
1.91
2.044
2.049
Norway
krone
8.42
8.762
8.763
Poland
zlotys
3.92
4.434
4.442
Sweden
krona
9.60
10.042
10.052
Switzerland
francs
1.38
1.449
1.450
£112
£105732 Tr 734% 12-15........£10614
£322
£3031132 Tr 212% IL 16 ........... £322
+2332
£142316 £1322132 Tr 834% 17 ........... £135332
-332
£147132 £1332732 Tr 8% 21................£13818
+12
Turkey
new lira
2.36
2.504
2.514
War
United States
dollars
1.57
1.646
1.647
£8334
£6712 War Ln 312%............£7312
+11732
Last night, the pound was worth: $1.6464 (down 0.0032) ..... 1.1257 euros (down 0.0061) ..... 128.26 yen (down 0.42) ..... Its trade weighted index was 79.30 (down 0.80) Metals in $ per troy ounce: Gold 1497.50 (down 6.50)....................Silver 45.48 (down 0.78)....................Platinum 1812 (unchanged) ................... UK base lending rate 0.5%
15
Wednesday, April 27, 2011
LDP business .co.uk London market FORD’S best firstquarter earnings since 1998 helped spur on the London market yesterday as investors looked across the Atlantic for direction. The US car giant and technology firm 3M delivered first-quarter figures that beat expectations in another round of strong US earnings. The figures provided the focus on the FTSE 100 Index in an otherwise quiet day for UK corporate news, after the long Easter break, with the Footsie finishing 51.1 points higher, at 6069.4. The London market had got off to a subdued start, with investors holding back ahead of economic updates on both sides of the Atlantic today. In the UK, gross domestic product (GDP) figures today will reveal whether the economy rebounded in the first quarter of 2011, while most commentators expect the US Federal Reserve to resist pressure to increase interest rates. The pound was weak amid nervousness over the GDP estimate. Sterling eased back to $1.65 and 1.13 euros. Banking shares were in the spotlight after Swiss giant UBS reported a strong quarter for its wealth management arm, and as investors prepared for the release of firstquarter results from Barclays, on Wednesday. The biggest Footsie risers were International Consolidated Airlines Group, up 9.9p to 229.6p, Arm Holdings, ahead 20.5p to 625.5p, Essar Energy, up 13.2p to 453.2p and Tesco, up 11.4p, to 406.7p. The biggest Footsie fallers were Randgold Resources, down 110p to 5195p, TUI Travel, off 2.8p to 236.1p, Cairn Energy, down 5.2p to 449.8p and Anglo American, down 30p, to 3132p.
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
market comment
Poorhouse salesdata spreads gloominUS forbuilders
SALES of new homes in the United States rose in March, but the number of new properties on the market remains at historically low levels. However, further gains will be hampered by the broader property glut. America’s Commerce Department said earlier this week that sales of family homes rose 11.1% to a seasonally adjusted annual rate of 300,000, up from a near record low of 270,000 in February, when harsh winter weather likely to focus on the next steps the hit the economy. Fed should take with the monetary Analysts had expected a 280,000-unit stimulus it has lent the economy. rate in March. While housing now The market for new homes accounts for a fraction of is being squeezed by competgross domestic product, indicition from previously-owned ations that it continues to homes and a deluge of forestruggle may weigh on conclosed properties, even though sumer confidence and have a inventories of new properties negative impact on spending. in March fell to 183,000 units – Standard & Poor’s Ratings the lowest since August, 1967. Email us with Services described conditions Builders, hurt by the weak your views at for US homebuilders as still market, are holding back on letters@ tough, and said it did not new home construction. dailypost.co.uk, expect a significant improve“Home sales are stabilising, or write to us PO Box 48, Old ment until next year. but we continue to see housHall Street, A report last week showed ing demand as moving sideLiverpool there were 3.55m previously ways, more than accelerating L69 3EB owned homes on the market in 2011,” said Prajakta Bhide, in March, well above the nata research analyst at Roubini ural rate of between 2m and 2.5m. Global Economics, in New York. Including foreclosed homes and The report comes as top Federal those on the verge of being reposReserve officials prepared to meet this sessed by banks, economists say supweek to assess the economy, amid ply is in the range of 8m to 9m. signs that activity slowed sharply in Existing home sales rose to an early 2011. annual rate of 5.1m last month. The Although the US central bank is new home market accounts for less expected to continue its $600bn govthan 10% of the housing market. ernment bond-buying programme Underscoring the risks for new which ends in June, debate is most
What do you think?
Debate surrounds how best the Federal Reserve can stimulate the US economy Picture: DAVID KARP homes, distressed properties accounted for 40% of existing home sales last month. Such sales typically occur at 20 to 30%. “We are not going to see a snap back in the housing market, we have a long way to go before we see anything close to a normal housing market,” said Robert Dye, senior economist at PNC Financial Services in Pittsburgh. US financial markets were little moved by the data. The overall housing market has been hamstrung by a scarcity of jobs and will likely continue to cast a
shadow over the broader economy. Poor weather depressed new home sales in the first two months of the year and held back building activity. The US government is expected to report tomorrow that overall economic growth slowed to a 2% annual pace in the first quarter of 2011, according to a Reuters survey, after a brisk 3.1% in the last three months of 2010. Much of the anticipated slowdown is blamed on the bad weather that blanketed large parts of the US in January and February, and a spike in petrol.
For twice-daily FTSE updates from Rensburg Sheppards, log on to www.ldpbusiness.co.uk
business diary Thursday, April 28 The Big Daily Deal Company is a new online portal offering discounted deals on the best things to eat, drink and do in Wirral and Chester, and is hosting its launch event with free business networking at the
Leverhulme Hotel and Spa, in Port Sunlight, from 7pm. Enquiries to joel@ubiquitypr.co.uk Wednesday, May 4 The Hilton Hotel, in Liverpool One, is the venue chosen to host this month’s Fish! Networking event for the city’s aspiring busi-
nesses and professionals. The event is free and will commence at 5.30pm, running until 8pm. Please RSVP to joel@ubiquitypr.co.uk or text Ubiquity PR 07710 436125 for a guest list. Friday, May 6 The monthly Daresbury Science and Innovation Campus Business breakfast network event brings
together around 100 people working for hi-tech companies. The breakfast is at Daresbury Innovation Centre, starting from 8am. For more details, see www.daresbury sic.co.uk/events Tuesday, May 10 The Liberty Business Builder seminar is for SMEs which are looking for some fresh thinking on how to
build their business. Prices are from £95 per person. It is at Suites Hotel, Knowsley, from 8.30am-1pm. For more information, see http://libertycoaching solutions.co.uk/?p=39 Tuesday, May 10 Employment solicitor Mark McKeating will give an overview of the recent changes in employment law and look at what businesses
should expect for the coming year at the latest Liverpool Chamber of Commerce Quarterly HR Forum. The meeting will take place at Hill Dickinson, Old Hall Street, from 8.30am-10.30am. It is free for Liverpool Chamber members and £15 for non-members. To book, call 0151 227 1234. Thursday, May 12
UKTI Northwest is encouraging North West businesses to attend a free event to find out about the latest Incoterms 2010 rules and how they can assist in international trade success. It is at UKTI NW, Trafford Park, Manchester, M17 1LB. For more information, email events@ uktinorthwest.co.uk
16
Wednesday, April 27, 2011
LDP business .co.uk trading gossip ■
WE HAVE to admire the fast work of Liverpool city councillor Gary Millar. Almost 48 hours before the Daily Post revealed his switch from the LibDems to Labour, Gary (or Gazza, as he shall be henceforth known) was already on the streets enhancing his workingclass credentials. Trading Gossip encountered the politician and businessman, below, out enjoying a stroll in the sunshine, splendidly attired in a pair of sports shorts. It was a decent attempt but we can’t help feeling that a knotted hankie, a fag behind his ear and a whippet on a lead would have rounded off the look perfectly.
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
the back page
‘We save companies – we’re not undertakers’
working day
Jeremy Oddie is the North West chair of R3, the trade body for insolvency practitioners, and a partner at accountants Mitchell Charlesworth. This is his working day: 6.45am: I set off from home in south Manchester in time to beat the traffic. As head of insolvency and corporate recovery at Mitchell Charlesworth, I cover all five offices and spend time at each. Today I’m heading for Liverpool.
■
ALSO “keeping it real” this week is Trading Gossip’s very good friend, Joel Jelen, of Ubiquity PR. Our favourite Cockney sparrow is getting all “cor blimey guv’nor” on Friday to mark the Royal Wedding of Wills and Kate. Joel is aiming to hold a right old knees-up at his Rodney Street HQ on the big day. Republicans may wish to swerve the area if they don't want to hear renditions of a Chas ‘n’ Dave megamix and the smell of pie and mash emanating from the building.
LDP CREATIVE FOR the latest news from the creative sector
www. ldpcreative. co.uk
7.45am: Liverpool’s architecture never fails to impress – this is a city built to showcase its wealth and the mix of old and new works so well. I head for a café to meet a lawyer I often work with. I’m a big fan of early morning meetings – over tea and toast, you can dispense with formalities and cover a lot of business in a short time. 8.45am: I return to our office in Temple Street. Liverpool is the oldest of Mitchell Charlesworth’s offices and celebrated its 125th birthday last year. I check my calls and emails and catch up with some of the partners – they often refer to me any clients in financial trouble, whether it’s a business or the person behind it. 10am : My first client is a company director who is unable to keep up with his financial commitments. He is under intense pressure from creditors and faces personal ruin, yet his wife is unaware of the situation. Debt is now a problem at all levels in society as the recession has affected even wealthier folk, but solutions are available and once people face the problem they start to feel better. In his case, I think an IVA (Individual Voluntary Arrangement) would be best and am hopeful we can negotiate with creditors to allow him to keep the family home. He looks somewhat relieved, but appreciates he still has to explain things to his wife. 11.45am: Insolvency practitioners are viewed as corporate undertakers, but in most cases we do save the businesses we see. I am now with the owner of a Liverpool-based engineering company which has hit a bad patch. The problems began when a fellow director became ill – small firms are often dependent on key individuals. On closer inspection, it’s clear the losses stem from the Manchester operation they set up a few years ago. He agrees we need to restructure and isolate that
Jeremy Oddie, of Mitchell Charlesworth and R3 – says he no longer has time for business lunches
1.30pm: Like many other professionals, I no longer do business lunches. I graze on fruit and yoghurt as I check the progress of existing cases.
from someone who understands the insolvency process. I agree to help, but we have no time to lose – the other firm is likely to be put in administration, which could scupper his proposal. I start work immediately and brief other members of my team to help me.
2.30pm: Word has got out about a local professional services firm that is going bust. The owner of a rival firm in Cheshire has requested a meeting at short notice with me, in connection with the case. He tells me he wants to buy part of the struggling business but it is complicated and he wants advice
5pm: In addition to my day job, I also have to keep up with my R3 commitments. As the organisation’s North West chair, I act as the voice of the insolvency profession in the region, help organise meetings and input into national policy. We are currently campaigning to stop suppliers demanding
division, which will allow us to save the remainder of the business and most of the jobs.
“ransom” payments from struggling businesses, and measures to simplify the system for individuals facing debt problems. I squeeze in a couple of hours before heading for home. 7.45pm: My partner is out tonight so, on returning home, I can fit in an hour on my favourite hobby, building sports cars. I am currently putting together a Dax 427. 9.30pm: Julie returns and we have a late supper and relax for an hour or so. Even if I bring work home with me, I like to finish before 9pm. At the end of a long day, everyone needs a break.