LDP Business - 28th December 2011

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5512.70 ▲ 55.73 RATINGS agency Standard & Poor’s is expected to release its eagerly-awaited verdict on debt ratings for 15 eurozone countries in January, two independent European government sources told Reuters.

“We have got an informal signal from Standard & Poor’s that they will come only in January,” said one source who declined to be named because exchanges with the rating agency are confidential.

He said he could only speak for his country, but assumed all 15 countries would learn of the decision at the same time.

Dispute leads to loss at betting firm Stanley

by Tony McDonough

LDP DEPUTY BUSINESS EDITOR tony.mcdonough@liverpool.com

A DISPUTE between Liverpool gaming firm Stanley International Betting and the estate of its founder, Lord Steinberg, has contributed to an annual pre-tax loss of more than £3.4m.

Full-year accounts for 2010 have just been published at Companies House, and they show Stanley has had to take a charge of almost £2m because of the dispute.

Its bottom line was also impacted by “unfavourable” sporting results.

This meant pre-tax losses for the year came in at £3.45m against a profit of almost £2.6m in 2009.

Formerly known as Stanley Leisure, the company sold off its UK betting shops and casinos in 2005 and 2006, and now operates betting shops across mainland Europe.

The company was founded in 1955

by Leonard Steinberg, who inherited an illegal betting shop from his father.

He later became Lord Steinberg and turned Stanley into one of the UK’s most successful gaming companies.

He died in late 2009, aged 73, but his estate is involved in a dispute with the company over one of its subsidiaries – Stanleybet UK Investments (SUKI).

SUKI, along with other Stanley subsidiaries, owns a 67% stake in a Polish betting shop operation called Star Typ Sport.

Stanley had been in negotiations with Lord Steinberg’s estate over the future financing and ownership of SUKI. After the negotiations failed to reach a conclusion, the company was placed into liquidation. However, the dispute continues with Lord Steinberg’s estate having brought a legal claim against Stanley.

The annual report said: “Although the directors are confident of successfully defending the claim, they consider it appropriate given the circumstances to make provision against the claim in the year.”

Turnover for the year was up 24%, to more than £394m.

The report added: “Performance in

the year was achieved against a challenging economic backdrop across our European markets.

“Despite new product offerings and the football World Cup exceeding expectations and delivering strong results, a general trend of unfavourable sports results across our key markets held back performance.”

Lord Steinberg was executive chairman of Stanley for 45 years, and was named the Liverpool Daily Post’s business person of the year in 1998.

On accepting the award, he said: “Over the years, I have been gladdened by making so many friends in Liverpool and on Merseyside.”

No one from Stanley was available for comment.

Liquorice firm drops in on zoo pandas

inside

QVC pledges to help small companies RETAIL giant QVC has pledged to help small firms and social enterprises in Merseyside to go green and make a positive impact on their communities.

PAGE 2

JMU recruits A BUSINESSWOMAN whose work with young people has won Royal recognition has been named “entrepreneur in residence” by Liverpool John Moores University.

PAGE 4

Green growth A MAN who went from being unemployed to a green entrepreneur is enjoying major growth.

PAGE 5

Lisa Gawthorne and Karl Morris, from Panda Liquorice, during their visit to Edinburgh Zoo

BUSINESS EDITOR: BILL GLEESON 0151 472 2319

DEPUTY BUSINESS EDITOR: TONY McDONOUGH 0151 330 4918

BUSINESS REPORTER: NEIL HODGSON 0151 472 2451

Picture: COLIN HATTERSLEY

BUSINESS REPORTER: ALISTAIR HOUGHTON 0151 472 2449

LISA GAWTHORNE, the Formby-based business woman behind Panda Liquorice, has spent a weekend at Edinburgh Zoo to celebrate the arrival of the pair of pandas from China.

Tian Tian and Yang Guang went on public display for the first time during the weekend, and Ms Gawthorne was there, with the Panda Liquorice panda to meet them and introduce their liquoriceloving namesake.

Panda Liquorice has launched a special product – Strawberry Bears – in honour of the first pandas to come to live in the UK in 17 years.

Panda Liquorice will donate proceeds from the sale of the product towards the care of the duo during their 10year stay at the Zoo.

BUSINESS REPORTER: PETER ELSON 0151 472 2502

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Innov8 wins raft of new contracts CONSTRUCTION safety firm Innov8 Safety Solutions will enter 2012 on a high with a raft of new contract wins in the chemical, health and education sectors.

The Wirral and Manchester-based operation has just signed deals with chemical firm Perstorp, Ellis Williams Architects and the Mid Cheshire Hospitals NHS Foundation Trust.

Contracts will see the firm delivering Construction Design Management (CDM) services across commercial developments, health care projects including new clinical services, operating theatres and critical care units and schemes in the education sector.

Alan Robson, Innov8 managing director, said: “The firm is in its strongest ever position.

“This recent influx of contracts really demonstrates the breadth and depth of our service.

“We have wide experience and expertise across a range of sectors and a number of new clients have appointed us as their CDM partner.”

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Retail giant helps Mersey companies to go green

by Alistair Houghton

LDP BUSINESS STAFF

alistair.houghton@liverpool.com

RETAIL giant QVC has pledged to help small firms and social enterprises in Merseyside to go green, and make a positive impact on their communities.

QVC, which employs more than 1,500 people at its Knowsley operations centre, has signed up to Groundwork Merseyside’s new membership scheme, the 80-20 Foundation.

The Foundation was created by environmental group Groundwork to give a platform for the region’s larger companies to share their corporate social responsibility knowledge with smaller firms and organisations in Merseyside.

Its mission is to help firms “engage positively in the field of responsible and innovative environmental business practice”.

QVC is proud of its commitment to CSR. In 2010, it won the Knowsley Chamber Corporate Social Responsibility Award.

The company will work with Groundwork to promote its work in the field of “business resilience”.

This means helping firms to ensure that they are well-prepared for any problems that might occur in their supply chains.

Bernie Budworth, business continuity manager at QVC UK, says its work with Groundwork will give it the chance “to work collaboratively to support businesses and social enterprises at the smaller end of the scale in becoming more resilient”.

QVC and the Foundation will hold quarterly seminars and workshops to discuss business continuity issues, while Mr Budworth will work closely with other Foundation members.

Kelly Morgan, head of human resources at QVC, said: “We are delighted to be involved in the 80-20 Foundation.

“Although QVC is a global brand, we have over 1,500 employees within our Knowsley site, the majority of whom

From left, Bernie Budworth and Kelly Morgan, from QVC, and Tony Seasman, from the 80-20 Foundation are from the local area. So it’s vitally important for us, as a local business, to be able to engage, support and advise people and businesses within the local community.

“We also support the overall objectives of the 80-20 movement, which are about engaging people and empowering them to become community organ-

isers,” she added. The Foundation has also won backing from major companies Jaguar Land Rover and Wirral teamaker Typhoo.

Tony Seasman, marketing and communications manager at Groundwork Merseyside, said: “Although the 80-20 Foundation is facilitated and, in part, delivered by Groundwork Merseyside,

the ethos behind the 80-20 movement is for members to contribute and share best practice with each other.

“We are delighted that QVC has joined and is willing to contribute by helping members via business resilience, and also looking for opportunities for their staff to get involved within the local community.”

Venmore sells 27 lots at final property auction of 2011 PROPERTY firm Venmore has generated almost £1.9m from its latest Liverpool auction.

The event, at the Hilton Hotel, in Liverpool One, saw receipts of £1.87m with more sales expected to complete in the coming weeks.

Venmore sold 27 lots out of 49 on offer, with a variety of residential investment properties dominating.

The firm saw eight lots sold prior to the auction, and nine lots were sold in the two weeks after the event.

This brings the total receipts for all the firm’s 2011 auctions to £7.85m.

Auction and commercial director, Geoff Guest, said: “We saw great sales on the auction day itself, with the majority of sales coming from

vacant residential properties.

The real best-seller was lot 30 – a spacious fourth-floor, two-bedroom duplex apartment situated in the Hatton Garden development, which sold for £33,500 above the guide price at £138,500.

“This particular property had two very keen bidders.

“Post-auction is also a great time for property-savvy investors to grab a last chance at the lots on offer.”

Venmore’s next auction will be held on February 15.

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Pane sailing as glass firm’s safety first approach pays dividends

Kevin Gorman, far right, at the factory launch with, from left, Warrington South MP Dave Mowat and directors Graham Hughes and Colin Duncan Pictures: ANDREW TEEBAY/ at091211bbritplas-2

Neil Hodgson meets KEVIN GORMAN, founder of Britplas KEVIN GORMAN’S skill as a natural problem solver has catapulted his company onto the international stage.

From small beginnings with just two staff, Warrington-based Britplas has now opened its own facilities in Woolston.

It employs more than 60 staff and has established a worldwide reputation for a safety window ideal for secure institutions.

Safevent, designed by Mr Gorman, prevents suicide by hanging, as well as preventing escape and self-harm, while allowing maximum natural ventilation which can save on air conditioning bills.

Mr Gorman had worked in windows and double glazing since he was 19, mainly on domestic contracts.

Their high-quality standards involved work such as a conservatory for former Liverpool footballer John Arne Riise and a job for Everton’s Tim Cahill.

He said: “We did the odd commercial job as well, such as a few schools.”

But, after setting up a separate company to supply the firm, as well as others in the sector, which was also “buyable in its own right” he was approached by a project manager working on Liverpool’s Rathbone secure mental health hospital.

“They had had 27 window companies in to supply windows for that job,” he said.

As a low-security drug rehabilitation hospital, he said they needed the safest window they could get which could also provide ventilation, and stop drugs being passed through windows.

Mr Gorman designed his own product, the Safevent window, and said: “I took a sample, which coincided with a board meeting – which was serendipity – and when they saw it they were over the moon.”

Britplas won the contract, and, once it was completed in August, 2006, sales for Safevent soared.

Safevent has now been adopted as the window to specify on all NHS secure facilities, with in excess of 15,000 being installed in more than 250 sites.

Mr Gorman said: “Once word got out, we have not had to chase any work. Now we have contracts from Scotland to Hastings.

“Once we put it on our website, we have had interest from Australia.”

Contracts for Safevent in the past

few weeks amounted to £2m, including £500,000-worth of orders from Australia.

And, earlier this month,Britplas hosted a delegation from the USA, which offers a market roughly five times the size of that in the UK. Safevent now represents 85% of Britplas revenues, but Mr Gorman’s unique solution has opened up potential for other products, such as bathroom soap dispensers within secure institutions which prevent suicide attempts by hanging.

This is as well as a new type of bedroom door and a new form of anti-ligature mesh fencing which allows patients to see out, but restricts vision from the public side to protect patient privacy.

Mr Gorman said: “I have always been good at solving problems, and we have a good team that does exactly the same.”

He added: “The answer is ‘yes’, the question is how?”

Since the launch of Safevent, Britplas has seen turnover double yearon-year for the past five years to just over £6m, for the year to December, 2010.

This year’s sales are expected to reach £8m.

Mr Gorman said: “We have managed to buck the trend by being innovative in a niche market.

“We are not just making windows.

They have the potential to save lives.

It is a big responsibility, but satisfying.”

Expansion has led to 15 jobs being created ahead of the relocation to its new 42,000 sq ft headquarters.

Mr Gorman said: We have been looking for the right building to buy for well over a year. This unit will make us much more efficient and allow us to expand further without the need to move again.”

A Britplas worker at the Woolston plant

Code: at091211bbritplas-6

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JMU hires entrepreneur to inspire youthful enterprise

by Alistair Houghton LDP BUSINESS STAFF

alistair.houghton@liverpool.com

A BUSINESSWOMAN whose work with young people has won Royal recognition has been named “entrepreneur in residence” by Liverpool John Moores University (LJMU).

Clare Molyneux, who founded Open the Door Theatre in Education, will use her honorary status at the university to inspire graduates to start their own businesses.

She will also offer advice at regular surgeries at the university’s recently-opened Centre for Entrepreneurship.

LJMU says the move is a first for the city’s higher education sector. It selected Ms Molyneux for her “tenacity and creativity in business”.

Ms Molyneux, who is also a successful property developer, founded educational theatre group Open the Door in 2003. Since then, it has carried out performing arts programmes in hundreds of schools, youth clubs and other venues.

In 2006, it was named Best New Business by Liverpool Chamber of Commerce. The following year, Ms Molyneux won Cosmopolitan magazine’s Ultimate Business Woman of the Year award.

Also in 2007, Clare received an OBE for her services to arts in education.

In 2009, she was invited to breakfast at 10 Downing Street by Gordon Brown, then Prime Minister, to give a talk to young people about enterprise.

Ms Molyneux’s business, Open the Door, was commended by Prince Charles in March this year. After visiting the company, he said: “I am most impressed by all that Open the Door does and the remarkable courses that you offer clearly make the whole difference to the young people with whom you work.”

She said: “LJMU has a long and reputable history of encouraging entrepreneurialism, and it is a real

Clare Molyneux, founder of Open the Door Theatre in Education – set to offer advice surgeries at LJMU’s recently-opened Centre for Entrepreneurship honour for me to be invited to take up this position.

“The centre for entrepreneurship itself is a fantastic resource for students and graduates, and it is also

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vital to the city as it offers the opportunity to develop home-grown business talent.”

Emma Hunter, head of the Centre for Entrepreneurship, said: “We are

Regenda is set to build 325 homes AFFORDABLE housing provider, the Regenda Group, has announced it is investing nearly £37m in delivering new homes across the North West over the next three years.

The funding will deliver a total of 325 homes which will provide a mixture of affordable rented accommodation and affordable homes for sale.

The programme will include 67 properties in Merseyside and 26 in Cheshire.

Group chief executive, Bernard Gallagher, said: “I am delighted to be able to announce the first details of our development programme.

“This will deliver a mixture of much-needed urban and rural homes across the region, which will be available for social rent or to buy through our shared ownership schemes.

“A programme like this sums up exactly what Regenda is about – providing homes people can afford in places where they want to live.”

Work has already started on sites at Atherton House, in Earlestown, Newton-le-Willows, and Bourne Road, Thornton Cleveleys, and four more sites will be under way before the end of March.

delighted that Clare wants to work with us. She has years of experience in working with young people, and can open doors in the city for our students and graduates.”

news

People unaware of credit pitfalls MORE than half the people in the North West are unaware that their credit rating could be affected by making multiple applications to find the best credit card rates.

Research by Nationwide says that, although 75% of people in the region claim to have a good to excellent knowledge of credit ratings, only 54% realised that a mark was left on their credit file with each credit application.

In the current economic climate, people are shopping around to get the best deal.

But, for credit products, that could leave customers in a worse position.

The survey found that 48% of people would make three or more applications for a credit card or personal loan thinking they could select the best deal once accepted.

Only 45% realised that, by making multiple applications, their credit score would be affected and they would be less likely to be accepted.

Nationwide allows customers to make soft quotes, without it affecting their credit record, and director of banking Graham Pilkington said: “People aren’t quite so knowledgeable about the effects of multiple applications. Customers with good credit files could find themselves rejected.”

Jobless total to peak at 2.9m in 2013, says CIPD UNEMPLOYMENT will increase to 2.85m in 2012, while the number of people in work will fall by 120,000 as jobs continue to be lost in the public sector, a new report predicted today.

The Chartered Institute of Personnel and Development (CIPD) forecast that the jobless total will reach its highest since 1994, adding that it will peak at 2.9m in the first half of 2013.

Long-term unemployment – those out of work for over a year – and the youth jobless total, are expected to stay just under a million, thanks to Govern-

ment measures targeting the two groups, said the report.

The group predicted a “mild” jobs recession, with a continuation of “severe” pay restraint and pauses in productivity, features which have characterised the economy since the end of the recession in 2009.

CIPD said, if its unemployment predictions are true for 2012, it will be the first time the jobless total will have been at 2.85m and rising since 1991.

It also believed that unemployment will not fall below 2.5m before the middle of the dec-

ade, because of slow economic growth.

Dr John Philpott, chief economic adviser at the CIPD, said: “As long as there is a relatively benign outcome to the eurozone crisis, we expect the 2012 jobs recession to be milder than that suffered in 2008-9. But unemployment in the coming year will be rising from a much higher starting point, so the UK jobs market in 2012 will be weaker than at any time since the recession of the early 1990s.

“At some point, private sector businesses will need to raise labour productivity.”

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LDP business .co.uk

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Even at Christmas time, there are still business lessons to be learned

Alex Turner THEY say Christmas is a time for sharing, so here are five things I learnt about business and management among the presents, parties and puddings of the 2011 festive season.

Capacity isn’t a limiting factor which can be wished away.

Slightly distracted by B&Q reducing the price of its Christmas trees by 99.97%, to a single penny (surely they could have charged 500 times as much without affecting sales?), I brought home a Christmas tree that is about 1.5 metres tall – and about 1.5 metres wide.

A fat Christmas tree and a small living room isn’t a winning combination, which is why the tree is now dominating the back room.

The customer must come first, even on Christmas Eve. Having popped into my nearest retail centre on Saturday for a couple

of last-minute additions, I was surprised to see some shops closing from early afternoon.

While some shut early to prepare for the Boxing Day sales, others were just shutting early. It seemed that the only reason for this was for the comfort and benefit of the staff, not the shoppers – who had money to spend that was going to be spent that day, whether at their shop or elsewhere.

Per-unit calculations help to put difficult-to-imagine ideas into perspective.

How much turkey is not enough

and how much is too much? Occasional cooks might struggle to imagine what a 14-pound turkey looks like, but a simple calculation shows that seven people will get 900g each.

And that’s a lot of turkey.

If it’s replaceable, don’t fuss about it.

Christmas throws up many challenges, whether it is complicated family relationships, changing situations, long distances or high demand. It can require careful planning and diplomacy.

Then there are the things that you can’t prepare for, such as a wedding gift Champagne flute being broken

‘I’m now the proud owner of 12 pairs of socks’

during its first use. While there’s nothing that can be done to put it back together, thankfully John Lewis is not an independent retailer based in the Middle of Nowhere.

Results are mixed when clear instructions aren’t given.

The only thing on my Christmas list was John Bew’s highly-rated biography of Viscount Castlereagh, which left people to fill in the gaps themselves.

I’m now the proud owner of 12 pairs of socks. Merry Christmas.

■ ALEX TURNER is the general manager of financial training firm Ambitious Minds.

Go-aheadcityrecyclingfirm triples its customer base

by Tony McDonough

LDP DEPUTY BUSINESS EDITOR

tony.mcdonough@liverpool.com

A LIVERPOOL man who went from being unemployed to a green entrepreneur is celebrating a successful year of expansion.

Ray Bowen, from Aigburth, launched Merseyside recycling firm Green Deeds in 2010, after a year without a job.

Over the past year, the firm has tripled its customer base and now diverts over two tonnes of recyclable materials each week away from landfill sites.

Mr Bowen, 26, launched the business with support and advice from leading Merseyside business start-up organisation ELECT. The organisation showed Mr Bowen how to put a business plan together, provided marketing advice, and developed his financial forecasting skills.

He said: “The support provided by my business coach, Tony Boyle, was invaluable. The hardest part of a new challenge is always the beginning, but his advice really got the ball rolling.”

Green Deeds provides office recycling services to businesses in Merseyside through their innovative and easy-to-use office systems.

The firm has recently expanded into other areas of the UK, and now covers Cheshire and North Wales.

From its southern site, which was established six months after the initial start-up, Green Deeds trades in Bedfordshire, Hertfordshire, Cambridgeshire and Milton Keynes.

Mr Bowen added: “After gaining a degree in coaching science from John Moores University, I decided to pursue my passion for the environment and recycling specifically.

“It was a big step to go from unemployment to running a business but ELECT gave me the confidence to do it.

“I have established a lot of contacts from around the UK, and through my market research felt comfortable that our company would be well received in the south of England.

“This has been a great year for us, with our customer base more than tripling in size. This has been mainly due to the benefits recycling in the workplace can provide.”

Ray Bowen, from Aigburth – started Green Deeds after spending a year out of work

Coffee chain in deal with city firm COFFEE chain Starbucks has chosen Liverpool-based Thin Joint Technology to support sustainable build targets in its outlets across the UK. The provider of lowenergy building products has supported Starbucks’s appointed contractor, DGT, in the specification and supply of insulation, brick, render and cladding materials at the chain’s new-build schemes.

To date, 10 outlets have been built with new insulated cladding and render systems installed, dramatically improving insulation values and containing heat more efficiently.

While each Starbucks outlet must maintain a “uniform appearance”, the use of specialist render containing organic pigments ensures that both aesthetic and build objectives are met.

By using the Thin Joint Technology systems, Starbucks was not only able to meet its design needs, but also comply with UK building regulations relating to airtightness and thermal efficiency.

Chris Hirst, director at Thin Joint, said: “We’ve been working with DGT for a while on various schemes, and they are keen to take the low-energy route where possible.

“It’s fantastic to see an international brand such as Starbucks opt for our systems, and demonstrates just how new products and methods of construction are being considered, not only to meet regulatory requirements but also environmental concerns.”

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Wednesday, December 28, 2011

LDP business .co.uk Bill Gleeson We can benefit from the rise of nations like Brazil IT WAS no real surprise that Brazil should have overtaken the UK in a league table of economic output this year to become the world’s sixth-largest economy.

Since 2008, Britain has suffered from a fall in economic output during the recession, and growth has been anaemic this year and last. In contrast, Brazil has not really stopped growing, with GDP rising 7.5% in 2010 and estimated to have risen 3.5% in 2011.

According to the Centre for Economic and Business Research (CEBR), which produced the league table, it is part of an ongoing shift in the balance of global economic power.

Brazil has benefited from a booming trade in the raw materials, particularly iron ore, that have fed China’s voracious economic appetite, though it would be wrong to characterise Brazil as merely a producer of primary goods. The country also has a growing manufacturing sector.

Nor is it solely dependent on China, as it also trades with other South American nations and the US, not to forget its own thriving internal market place.

Britain’s relative decline in the world rankings of economic output is set to continue into the future. According to CEBR, Brazil and Russia will supersede Germany, while India will gain a top 10 place.

Germany will slip to become the world’s seventhlargest economy, Britain eighth and France 11th.

What we now call the emerging economies will have emerged.

While, in terms of pure economic kudos, it is regrettable that Britain’s status is slipping, the fact is it doesn’t really matter all that much.

For the time being, and for several decades yet, Britain’s output per capita will remain far higher than Brazil’s. The South American country has more than three times the population.

The same is even more true of China, Russia, India and other nations.

Indeed, the growth of these nations is beneficial to Britain and other western countries. It creates a bigger export market for us to sell our goods and services. That’s not to say it’s going to be plain sailing. Growing demand from these nations is likely to re-ignite inflation over the next decade, for example.

There is also a more immediate benefit. It is without doubt in the fundamental interests of these now big economies to contribute to the process of restoring health and prosperity to the world’s economy.

In particular, it would be short sighted of them to fail to bail out the eurozone or its banks, should that become necessary later this year.

They need eurozone consumers to start spending again. With multi-trillion dollar economies, they can now afford to chip in to any IMF arrangement to save the euro.

At the very least, the emerging nations are likely to fuel the global economic recovery in the later part of 2012 and throughout 2013.

Bringing the analysis much closer to home, any growth in international trade has to be good news for a port economy. Our tourist market is also likely to benefit from worldwide growth in the number of prosperous people capable of affording the cost of travel. Our universities have already made inroads into the Chinese market, attracting hundreds of students.

British educational institutions have a strong international reputation, meaning we can probably sell our services to other emerging markets. Even British manufacturers could benefit, the Halewood-built Evoque being a great example.

So, while the next few months may remain economically gloomy, it is foreseeable that things will pick up strongly in the not too distant future.

Business high

Alistair Houghton and Tony McDonough on another rollercoaster year in business BUSINESS fortunes in the Liverpool city region reflected the national picture in 2011 with significant highs and lows.

Merseyside has a traditional over-dependence on the public sector, so has braced itself for job cuts.

However, there has been some Government help this year. It was revealed that Peel’s proposed Liverpool and Wirral Waters schemes, plus the Daresbury Science & Innovation Campus, would be designated as enterprise zones.

Companies relocating or setting up in the zones can enjoy significant business rates and taxation concessions.

And, in another major boost to the local economy, the Range Rover Evoque rolled off the production lines in Halewood and into the hearts of drivers and motoring journalists around the world.

Jaguar Land Rover’s decision to build the Evoque at Halewood secured the future of the plant and created hundreds of jobs at the site – as well as generating around £1bn in orders for local suppliers.

The vehicle, dubbed the greenest 4x4 yet, secured hundreds of millions of pounds in orders even before the first showroom-ready vehicle rolled off the production line in July.

In August, hundreds of motoring journalists arrived here to test-drive the car.

As part of a two-day test drive through North Wales and Liverpool, they drove through disused rail tunnels from Edge Hill to Wapping before emerging to tackle an off-road hazard specially built in Dukes Dock, next to the Echo Arena.

The Evoque has proved a hit with the public. Just this month, JLR’s parent company, Tata Motors, said global Land Rover sales in November stood at 23,868 – up 38% on November last year. That growth was driven by the success of the Evoque, which went on sale to the public in September.

But it has also proved a hit with the motoring press. The Evoque has won 34 car industry awards this year, including the Car of the Year award from motoring magazine Auto Express.

The motor industry has been battered by the recession. But Halewood, which today employs some 3,000 people, remains a cornerstone of Merseyside’s manufacturing sector.

And, in Ellesmere Port, the Vauxhall plant has also enjoyed another strong year thanks to the success of the new generation Astra car.

Also in Ellesmere Port, the Stanlow oil refinery was taken over in August by Indian giant Essar Energy, in a £700m deal.

Essar is promising to upgrade the site, with a four-year investment plan worth some £250m.

In August, when the plant was officially handed over to Essar, the refinery’s general manager, Frank Willsdon, said: “For this site, it’s the first time for quite a long time that we’ve heard about investment and growth opportunities and looking to maximise the capacity of the asset here.

“From a site point of view, and from the employees’ point of view, it’s a very

Liverpool entrepreneur, Anil Juneja, rescued iconic retailer TJ Hughes from administration Picture: COLIN LANE

positive message. We’re looking forward to growth and potential investment on the site.”

He added: “We want to maintain a long-term future both for the employees here, and for the people who might join in the future.”

Ellesmere Port itself, often overshadowed by Chester and Liverpool, has itself had a strong year.

Outdoor clothing specialist Regatta announced it was opening a distribution centre in the town, which will eventually employ 200 people.

Engineering firm Hertel is also expanding its operations in Cloister Way, from where it will serve clients throughout the North West.

At Cheshire Oaks, work is under way on a 150,000 sq ft Marks & Spencer store that will open next year, creating more than 350 jobs. It will be the largest M&S store outside London.

In the town centre, meanwhile, the Port Arcades Shopping Centre underwent a £3m expansion.

As part of its £65m investment programme, West Cheshire College opened a landmark building in the town centre.

The college specialises in vocational education and aims to develop a skilled workforce who can help the town grow in the future.

Developer Peel Land and Property is

‘We are looking forward to growth at the site’

also progressing plans to redevelop a chunk of Ellesmere Port’s dockside, in the Ellesmere Quays project. Peel’s plan would see a mix of homes, leisure, and tourism-related developments erected alongside the Manchester Ship Canal.

Two iconic Merseyside retail names are set for a revival thanks to Anil Juneja, managing director of Speke-based wholesale and retail firm the Benross Group.

In August, Mr Juneja clinched a deal to buy the TJ Hughes name, its flagship London Road store, and three other sites from administrators.

TJ Hughes had another rollercoaster year. It was bought out in March by Leeds-based private equity group Endless, but, after months of continued poor trading, it went into administration in June.

The chain looked set to disappear from the high street completely until Mr Juneja stepped in.

Today it has stores in Liverpool, Widnes, Sheffield, Glasgow, Newcastle and Eastbourne, and 700 jobs have been saved. In September, Mr Juneja told the Daily Post that he hoped to be able to open more TJs stores around the country.

He said: “Once we get settled, we will definitely look to develop more stores.”

As well as TJ Hughes, Mr Juneja also bought the name of former Liverpool department stores group Lewis’s.

The first Lewis’s store is set to be in Bury, but Mr Juneja hopes the store will

7

Wednesday, December 28, 2011 IN ASSOCIATION WITH

the big feature

LIVERPOOL’S INVESTMENT SPECIALISTS

hs and lows of 2011

Motoring journalists drove through Dukes Dock, at the Albert Dock, over a bridge normally used by the Armed Forces, in the new Range Rover Evoque Picture: JAMES MALONEY

one day return to its spiritual home in Liverpool.

The future for more than 3,000 workers at the MBNA credit card business at Chester Business Park was thrown into doubt in August.

MBNA’s parent, Bank of America, put the unit up for sale, despite it yielding a pre-tax profit of £348m in 2010.

The news was not only a worry for the staff at the business, but also for business leaders in Cheshire.

MBNA accounts for 3% of the Cheshire economy, both through the direct employment it provides and in the wider supply chain.

Names of a number of potential buyers have been thrown into the hat, including Virgin Money, Barclays, Santander and US giant Capital One but, so far, no firm offers have been reported. In preparation for a sale, MBNA has announced that 550 jobs are to go from the Chester site.

However, despite the uncertainty surrounding the future of MBNA, Bank of America announced in early November that it is to expand a separate division at Chester which could lead to the creation of up to 1,000 jobs.

In October, Merseyside lost one of its most successful entrepreneurs – John Halewood. The head of Huyton drinks firm, Halewood International, died aged 64.

He founded the business with his mother, Eileen, more than 30 years ago and it is now the UK’s largest independent drinks distributor and turns over more than £250m a year. Its brands include Lambrini, Lamb’s Navy Rum and Red Square vodka.

On hearing the news, Lesley Martin-Wright, chief executive of Knowsley Chamber of Commerce, said: “John Halewood’s contribution to business and commerce is immeasurable.”

The year also ended on a low note for Liverpool John Lennon Airport when it was revealed Dutch airline KLM was to withdraw its three-times-a-day service to Amsterdam, which was launched with a fanfare in 2009.

It offered a feeder service to Schipol for 550 global routes flown by KLM and its 10 Sky Team partners.

But the carrier announced that it will cease operations on March 25, 2012, after a network review.

Craig Richmond, chief executive of JLA parent group Peel Airports, said: “There are other hubs in Europe, such as Paris, Madrid or Frankfurt, so we will look to see if we can find someone else.

“This service has also been important for the Liverpool city region, opening up global connectivity for travel to and from the region, and it is for this reason that we will pursue all alternatives.”

‘We will definitely look to open new stores’

End of an era as Royal Liver quits city THIS year saw the Royal Liver Building celebrate its centenary – even while the business that gave it its name was preparing to leave Liverpool for good.

After months of talks, Royal Liver confirmed this year that it was to be taken over by larger rival Royal London.

And, in August, Royal Liver finally confirmed it was quitting the building.

It said half of its remaining 200 staff would move to Royal London’s Wilmslow base, but the rest would lose their jobs.

Royal London said simply: “The review was undertaken to identify the best way to integrate business operations in Liverpool with the rest of the Royal London group.”

But that bland statement marked the beginning of the end for one of Merseyside’s best-loved business names.

Royal Liver’s history dates back to 1850, when nine friends met at the Lyver Inn, St Anne Street, to form the Royal Liver Burial Society.

It soon became a cornerstone

of Liverpool’s business community – and in 1911 opened its landmark waterfront base.

But it struggled in recent years, thanks to the recession and to the failure of its Park Row arm, which racked up millions of pounds of losses and was criticised by regulators.

In 2010, it confirmed that it was in talks with Royal London.

Interim chief executive Bill Connolly told the Daily Post that Royal Liver was too small to survive on its own, and needed to merge its funds with those of a larger company to ensure its policyholders’ funds were protected.

And, in an exclusive interview with the Daily Post, Mr Connolly said the company would consider leaving its iconic waterfront home if the takeover went through.

In April, Royal Liver’s board agreed a deal. Mr Connolly told the Daily Post: “As a Liverpudlian, it pains me that it’s the end of an era for a society that’s been here since 1850. I’m in awe of this building each day

as I come to work. Culturally and personally, it’s very difficult for me. And it’s very difficult for our staff, a lot of whom have been here for a long time.

Emotionally, it’s been a very difficult decision.

“But we cannot allow that kind of emotion and sentiment to cloud the logic of the deal – that it provides certainty and security for our members.

“It’s not about me. It’s not about this office building. It’s not about the staff who work here. It’s about the members.”

In May, the takeover was agreed by Royal Liver’s delegates, who represented its 1m policyholders and had the final say on any deal.

Some Royal Liver staff remain in the building that bears the company’s name. No closure date has yet been confirmed.

But the Royal Liver Building – visited by the Queen and the Duke of Edinburgh earlier this month – will remain a symbol of the city even after its namesake has long gone.

8

Wednesday, December 28, 2011

LDP business .co.uk private business Portfolio weathers difficult climate

THE Duke of Westminster’s investment vehicle saw profits more than double as its business portfolio continued to weather the recession.

Wheatsheaf Investments, which owns businesses including Chester’s Grosvenor Hotel, saw sales of £31.8m in the year to March – up 8% on the previous year.

Accounts newly filed at Companies House show that £792,000 of that rise came through acquisitions, but its continuing operations still posted a healthy sales rise of 5.3%.

That all helped pre-tax profits rise to £1.6m – up from £616,000 the previous year.

The directors said they were “pleased to be able to report a profit on ordinary activities before taxation for the year and, having regard to the continued difficult economic conditions, anticipate a satisfactory result for the year to March 31, 2012.”

Turnover at the Grosvenor Hotel was flat at £7.4m, though losses widened from £833,000 to £903,000.

During the year, Wheatsheaf bought cattle breeding companies World Wide Sires UK and Dairy Daughters.

They join Grosvenor Farms and Cogent Breeding in Wheatsheaf ’s farming and breeding products arm, which saw profits rise from £1m to £1.6m as sales rose 15% to £14.4m.

Grosvenor Garden Centre, near Chester, saw sales rise from £6.1m in 2010 to £6.5m in 2011. The centre reported a profit of £59,000, up from a loss of £310,000 in 2010.

Wheatsheaf ’s London-based insurance broker, Realty Insurances, saw sales rise 2.7% to £3.5m. Profits were flat at £1.4m.

Wheatsheaf is separate from Grosvenor, the developer of Liverpool One, and the Duke’s property empire.

ALISTAIR HOUGHTON

Banks dominated a year of turmoil for UK economy

by Liam Christopher

LDP CORRESPONDENT business@liverpool.com

THE meltdown in the eurozone was felt by households and businesses across Britain as the nation faced up to what Bank of England governor Sir Mervyn King called the most serious financial crisis “since the 1930s, if not ever”.

Here is a look back at a dramatic year in which turmoil returned to financial markets.

January Retailers were braced for a New Year hangover, after VAT rose from 17.5% to 20% under the Chancellor’s austerity measures.

Shoppers flocked to the high street to make the most of the sales and last-minute purchases ahead of the increase, which happened on January 4 and looked set to compound problems for the sector after a tough Christmas season impacted by frozen weather.

Barclays chief executive Bob Diamond pledged to show restraint over banker pay, but told MPs that big bonuses were here to stay if the sector was to succeed.

The multi-millionaire banker said the time for “remorse and apology” needed to be over in order to allow banks to support Britain’s recovery.

February Britain’s pharmaceutical industry was dealt a major blow after drugs giant Pfizer announced the closure of its leading UK research centre. The US group said it was shutting the R&D facility at Sandwich, Kent, where Viagra was invented, and would make the majority of the site’s 2,400 staff redundant over the following 18 months to two years.

The UK’s biggest energy supplier unveiled a record profit haul just weeks after it hiked bills amid the coldest winter in 100 years. British Gas, which has nearly 16m customer accounts, saw a 24% surge in operating profits to £742m in 2010, two months after the supplier pushed up bills by 7%.

March Damage caused by Japan’s massive earthquake and tsunami sparked fears of a major slowdown in the world’s third largest economy, triggering a slump for shares worldwide.

London’s FTSE 100 Index fell for six sessions in a row, to its lowest level in four months, while there was also a flight from riskier assets towards safer havens such as gold after a radiation leak was detected at the Fukushima power plant.

The UK’s gas and electricity suppliers were accused by energy watchdog Ofgem of failing “to play it straight” with consumers.

Barclays chief executive Bob Diamond – pledged to show restraint over bankers’ pay Picture: DANIEL LEWIS

April UK banking giants should protect their retail arms from risky investment banking and put more capital aside to prevent future taxpayer bail-outs, the Independent Commission on Banking said in its interim report.

As well as calling for retail business to be ring-fenced from so-called “casino” banking to protect savers and borrowers in the event of a future crisis, Lloyds Banking Group should also go further to address competition concerns and sell off more than the 600 branches it has currently agreed with Europe.

May Mothercare dealt a fresh blow to the UK high street as it unveiled plans to close 110 outlets and focus on out-of-town superstores. Rents will be cut on a further 40 stores, squeezing incomes for high street landlords even further. The new focus will be on

out-of-town Parenting Centres, which contain its Early Learning Centre brand.

The restructuring came as its UK problems caused pre-tax profits to fall from £32.5m to £8.8m in the year to March.

A Russian billionaire vowed to secure a “dynamic future” for Waterstone’s after striking a £53m deal to buy the book shop from ailing HMV. Alexander Mamut, a friend of Chelsea FC owner Roman Abramovich, said he would reposition Waterstone’s as a regional and local community-orientated bookseller.

June The Government came under pressure to help end uncertainty over the future of thousands of elderly residents and staff at Britain’s largest care homes group Southern Cross. The firm, responsible for 31,000 elderly residents, announced it would underpay its rent in a bid to cope with a £230m

annual rental bill. With almost 750 care homes and thousands of staff, Southern said it would pay nearly a third less rent than it is obliged to for the next four months, in what is effectively a loan from its landlords.

Lloyds Banking Group delivered another blow to staff after it unveiled plans to slash a further 15,000 jobs by 2014 in a bid to save £1.5bn a year.

Veteran bookmaker Fred Done secured horseracing’s ultimate prize by agreeing a £265m deal to buy the Tote from the Government. His Warrington-based Betfred business, which he founded from a single shop in Salford in 1967, beat off competition from a consortium led by British Airways chairman Sir Martin Broughton to land the on-course and betting shop chain.

July British manufacturing suffered a major blow when the last UK train-making company Bombardier

9

Wednesday, December 28, 2011 IN ASSOCIATION WITH

LIVERPOOL’S INVESTMENT SPECIALISTS

National review of the year

UK stability in 2012 linked to fate of the eurozone

The Japanese earthquake and tsunami caused death and devastation, and sparked turmoil in global financial markets Picture: KUNIHIKO MIURA

announced more than 1,400 job losses.

The Derby-based firm had hoped to win a multi million-pound order for 1,200 new train carriages as part of the £6bn Thameslink main line rail project. But the Government decided last month to make German company Siemens the Thameslink preferred bidder, prompting the job-loss announcement.

August Banking giant HSBC said it would cut up to 30,000 jobs over the next two years in a cull set to impact on more than 10% of its workforce.

The efficiency drive, which will save the bank up to £2.1bn a year, was the latest within an industry battling to cope with reduced levels of activity.

Barclays also said that staff levels could be cut by around 3,000 during 2011.

September Radical plans to ensure taxpayers are no longer on the hook for banking

failures were hailed by George Osborne as a “decisive moment” in the drive to overhaul Britain’s beleaguered banks.

The shake-up of the sector includes ring-fencing banks’ high street divisions to protect them from riskier investment arms and setting aside more cash to cushion the blow of potential losses or future financial crises.

October Sir Mervyn King said the Bank of England’s surprise move to pump £75bn into the UK economy was the right thing to do as the country faced “the most serious financial crisis” ever seen.

He was speaking after the Bank boosted its quantitative easing (QE) programme – effectively printing more cash – from £200bn to £275bn.

November Taxpayers were sitting on a potential £400m loss after Northern Rock

was sold to Sir Richard Branson’s Virgin Money. The tycoon vowed to challenge the industry’s “big five” after agreeing the £747m deal for the business, which boasts 75 branches, 1m customers and £14bn of mortgages.

Chancellor George Osborne insisted the price was the best available for taxpayers, who have owned the business since February, 2008.

The price could rise to £1bn with add-ons, but at this level it is still £400m short of the £1.4bn injected by the Government during its ownership.

December Royal Bank of Scotland was brought to its knees by “multiple poor decisions” and its £50bn gamble” on buying Dutch bank ABN Amro, a long-awaited Financial Services Authority report said. It blamed deficiencies in the management and culture at RBS prior to its £45.5 bn rescue and called for tougher rules to make bankers more accountable.

IT IS hard to be optimistic about the prospects for the UK economy next year.

Politicians and experts regularly remind us that the country is in a dangerous phase, while the cold, hard figures show a nation teetering on the brink of a double-dip recession.

Official forecasts show the economy is expected to grow by just 0.7% in 2012, while the Bank of England offered a similarly bleak estimate with a heightened risk of contraction in the first half of the year.

The most serious threat to the UK’s economic stability is somewhat out of the country’s hands, as the rumbling eurozone debt crisis is close to bringing about a financial catastrophe of shocking proportions.

But, while we’re frequently told the eurozone’s woes are to blame, there are still problems at home – unemployment is high, credit flow is restricted and consumer confidence is shattered. Alan Clarke, economist at Scotia Capital, said gross domestic product (GDP) growth is likely to be stagnant or moderately negative in early 2012. However, he said lower prices should help growth pick up in the second half of the year.

He said: “As inflation slumps, household disposable income will recover and in turn consumer spending growth should accelerate.

Since this is the biggest share of overall GDP, that should set the tone for overall growth.”

But most economists agree that the greatest threat to the UK economy remains in the eurozone.

The troubled region will face a crunch year in 2012, as political leaders fight to draw up and implement a rescue plan for the single currency.

The eurozone is the UK’s biggest trade partner and official figures have revealed the crisis has already started to hurt British exports – which are falling thanks to weak demand on the Continent.

Philip Shaw, chief economist at Investec, said: “We are

George Osborne – expected to stand his ground highly sceptical that the existing resources available to the eurozone economies are sufficient to quell investors’ nerves over the crisis.”

However, he added: “Nonetheless, we are hopeful that a relatively orderly solution will be reached in the first couple of months of 2012, resulting in greater optimism over world economic prospects.”

The Office for Budget Responsibility, the independent tax and spending watchdog that sets growth forecasts for the Treasury, warned the Government is set to borrow £111bn more over the next five years than previously expected. The increased borrowing expectations come hand in hand with an economy facing sluggish growth – which will lead to restricted spending and lower tax revenues.

ChancellorGeorge Osborne is expected to stand his ground with his deficit reduction plans, but recent warnings from credit agency Moody’s have suggested the UK’s coveted AAA credit rating is far from safe.

Meanwhile, analysts expect the housing market to remain unchanged throughout the 2012, following a surprisingly robust year.

Mr Shaw added: “The most likely out-turn for 2012 seems to be that house prices will remain broadly unchanged and transactions levels remaining relatively muted.”

The eurozone is a source of major woe for the UK

10

Wednesday, December 28, 2011

LDP business .co.uk SMEs ‘not getting lending support’ MANY small and medium-sized enterprises (SMEs) are still struggling to raise money from banks, despite an agreement between lenders and the Government, a report revealed today.

Some 12% of SMEs said they had experienced difficulties obtaining finance over the past year, according to a survey by insurance giant RSA and the Warwick Business School.

Amid the squeeze in lending, SMEs are increasingly looking to give away stakes in their companies in return for cash, as a “Dragons’ Den mentality” emerges, according to the report.

The problems in raising cash will cause concern because SMEs are seen as the lifeblood of the economy, employing 20m people, and are at the forefront of the Government’s strategy for fuelling growth.

The Treasury earlier this year struck up the Project Merlin agreement with the UK’s biggest lenders, which saw them pledge to hit targets for lending to SMEs in 2011.

The latest figures from the banks show they had lent £56.1bn to SMEs in the first nine months of 2011, meaning they were on course to narrowly miss their £76bn full-year target.

Manufacturing firms faced the biggest struggle to raise money, with 15% reporting difficulties.

Tara Kneafsey, a director at RSA, said: “Confidence is a critical factor for SMEs as we approach 2012 – confidence in knowing they are protected, should the unexpected happen, and confidence in having access to capital to maximise growth opportunities.”

BUSINESS to BUSINESS Building Trade FRAMELINE COMPOSITE DOORS

TRADE, UPVC WINDOWS DOORS, CONSERVATORIES. 5 Day Turnaround

Tel: 0151 546 5577 Fax: 0151 546 5588 Accredited with BS7412 & BS7950

IN ASSOCIATION WITH

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news

Wave of administrations hit UK high street in 2011

by Alex Turner

LDP BUSINESS STAFF

alex.turner@liverpool.com

THE UK high street lost several more well-known names during 2011, with predictions of worse to come in the year ahead.

As was expected, 2011 saw marginally more companies put into administration than 2010, and that year-on-year increase is likely to continue in 2012, according to experts.

Mike Jervis, a corporate recovery expert at PricewaterhouseCoopers, said: “Our prediction is that insolvency will go up next year. The consumer is more strapped for cash now than in 2008, and the public sector cuts will also start to bite.

“As well as that, companies with highly leveraged balance sheets will need to refinance large amounts of debts entered into in the height of the market in 2007,” he said.

Corporate failures during 2011 included: ■ Auto Windscreens (February) The UK’s second-largest windscreen repair and replacement firm called in administrators Deloitte in February, after suffering trading and cash flow woes, resulting in around 1,100 people losing their jobs.

Administrators said that, despite 90 approaches, they were unable to find a buyer and efforts to raise financing also failed.

Auto Windscreens operated a network of 68 fitting centres across the UK, 550 mobile units, a distribution centre in Aston, Birmingham, and a central call centre.

The Derbyshire-based company, which had an annual turnover of around £63m, had been undergoing a recovery programme, but ran into trouble after it was hit by delays in bringing in IT systems, coupled with lower-than-expected revenues in the final quarter of 2010, which led to cashflow pressures.

■ Focus DIY (May) Private equity-owned Focus DIY was the subject of a massive closing down sale after Ernst & Young was appointed in May and subsequently shut 123 stores.

This was after it sold 11 stores to discount homewares chain B&M Bargains, 13 to Wickes owner Travis Perkins and 31 stores to B&Q owner Kingfisher, although, in the final case, staff were told to re-apply for their jobs.

The DIY market has suffered in recent years, and Focus faced stiff competition from B&Q and Wickes in the midst of a weak housing market.

In 2009, the company underwent a controversial company voluntary arrangement when it sought to reduce its rent burden from landlords.

Focus DIY, which began with six stores in the Midlands and the North of England, was bought by private equity firm Cerberus for £1 in 2007.

■ Jane Norman (June) Clothing chain Jane Norman, which appeals to fashion-conscious young women, was put into administration in June before Edinburgh Woollen Mill stepped in and snapped up 58 stores.

However, administrator Zolfo Cooper failed to find a buyer for 33 stores, resulting in the loss of 400 staff, while concessions in Debenhams

Ernst & Young was appointed as administrator to Focus DIY in May and subsequently shut 123 stores.

The now closed-down Habitat store, in Liverpool One department stores were closed, with 380 jobs lost.

The stores bought by Edinburgh Woollen Mill still trade as Jane Norman, saving half the initial workforce’s jobs. It has a record of turning around failing companies, having bought 77 Rosebys stores to create the now 150-strong Ponden Home chain.

Jane Norman faced “severe cashflow difficulties” as customers cut back on non-essential items.

■ Habitat (June) The UK arm of Habitat, the homewares store set up by furniture designer Sir Terence Conran in 1964, was put into administration in June, closing 27 stores and leaving just three Habitat stores now open in the UK.

The owner at the time, Hilco, struck a deal allowing Homebase and Argos owner Home Retail Group to buy the UK rights to the Habitat brand in the UK, the website and three stores in central London for £24.5m.

Hilco said Habitat posted losses of £88m over the past three years, and a return to profitability in the UK appeared unlikely in the near term as many of the stores were expensive and poorly-located for a furniture retailer.

■ Homeform (July) Homeform Group, which owned Moben kitchens, was put into administration in July, making 557 staff redundant as the assets of Moben and Dolphin bathrooms were broken up and sold, with just Sharps bedrooms

being saved. The Manchester-based company, which also owns Kitchens Direct, called in Deloitte after the company suffered “significant difficulties” as trading slumped in the economic downturn.

More than 600 jobs were saved after Sharps Bedrooms was bought by a division of private equity firm Sun Capital Partners, which also owns Homeform. It also bought 96 of the company’s 160 showrooms and concessions and a factory at Bilston, in the West Midlands.

The administrator blamed the company’s decline on customers shying away from “big ticket purchases such as kitchens and bathrooms”.

■ Alexon (September) After a sales slump in August, the owner of womenswear chains Ann Harvey, Eastex and Kaliko was sold to private equity firm Sun European, in a pre-pack administration deal in late September, saving almost 3,000 jobs.

Alexon, which has more than 990 outlets in the UK and Europe, was saved from collapse after it was bought by the owner of sofa chain ScS for an undisclosed sum, with no redundancies served.

The sale came shortly after Lutonbased Alexon said that it had failed to find any solution to its funding problems.

Will Wright, joint administrator and restructuring director at KPMG, who led the sale, said Alexon received a “great deal of interest”.

11

Wednesday, December 28, 2011

LDP business .co.uk Global markets EUROPE faces another year of dismal economic performance in 2012 that will weigh on global growth, but emerging markets and the US should at least keep the world economy moving in the right direction.

There are several reasons why next year may be nothing to look forward to, according to Reuters polls from the last few months.

Many of the world’s biggest developed economies are heading into recession, global stock markets look set to recoup only a fraction of their heavy losses in 2011, oil prices will head lower, and asset managers are unsure where best to invest.

And these could be the best-case scenarios. Most economists base their assumptions on the hope that the eurozone’s sovereign debt crisis will not boil over into a new global economic crisis, having already dented growth in major exporters to Europe.

Still, most of the major emerging market economies, like Brazil and China, should pick up speed later next year.

All of them have suffered from slowing economies in recent months, caused mainly by tightening monetary policy in the face of high inflation.

“It’s important to stress the world economy is still growing. But it’s a tale of two worlds,” said Gerard Lyons, chief economist at Standard Chartered Bank.

“The storyline for 2012 is that Europe drags the world down in the first half of the year, and China drags it up in the second half of the year.”

Political risks cloud the outlook further, with elections in the most powerful countries and the prospect of continuing turmoil in the Middle East.

■ BILL GLEESON: P8

IN ASSOCIATION WITH

LIVERPOOL’S INVESTMENT SPECIALISTS

market comment

Solvingthe eurozone sovereign debtcrisisis keyin2012 THE year is now drawing to a close. and most Investors are more than happy to consign 2011 to the history books.

Having started on an optimistic note and having withstood some unexpected blows early in the year from the Japanese earthquake and a spike in oil prices, as a result of uncertainties provoked by the Arab Spring, the resurgence of systemic threats emanating responsible for the undermining of the from the eurozone has reversed the global growth outlook for 2012. mood.

We believe, however, that substantial Looking into 2012, a positive investprogress has recently been made in ment outlook depends upon successEurope which holds out the prospect fully navigating around some very visfor much-reduced stress as the ible icebergs. year progresses.

Firstly, the eurozone soverSpecifically, it now appears eign credit markets must be that politicians and the stabilised.

European Central Bank (the Secondly, the Chinese econECB) are singing from the omic soft landing must not same hymn sheet, with a comturn into hard landing. monly agreed plan for embedThirdly, America must avoid ding fiscal discipline in the Email us with stifling a nascent domestic single currency operating your views at recovery through political rules, while the ECB buys the letters@ intransigence. dailypost.co.uk, time to implement the plan by The most threatening of the or write to us providing unlimited support PO Box 48, Old icebergs is clearly the stillto the banking system – not Hall Street, unresolved eurozone soverdirectly to the Sovereign states.

Liverpool eign debt crisis, which has The price of the solution will L69 3EB prompted an accelerated still be a recession in Europe, deleveraging of the financial but the likelihood of somesystem both within Europe and outthing worse looks to be much reduced. side, as the world’s non-European Moving on to China, the growth mirbanks and corporations move to insuacle built on exports and investment late themselves from Europe’s probhas been compounded over the past lems. couple of years by a rapid expansion of When compounded by fiscal austercredit, often through new unregulated ity measures that have been deemed to channels, which has found an outlet in be part of the medicine required to the housing market. stabilise the situation, the result is The weakening in demand from that Europe has been almost solely developed markets is now being felt,

What do you think?

Investors want to see the eurozone credit markets stabilised and it is feared that, as China enters the Year of the Dragon, a credit bust similar to America’s could be in the offing. Although this bears watching, we think this will not happen.

China will certainly suffer substantial “bad debts” as part of the credit boom, but, in a largely state-owned banking system, ultimately lending is state-directed and the equity capital can be replenished by over $3 trillion of foreign exchange reserves.

In short, China can afford its mistakes and should become a more positive growth force as the year progresses.

America is a different case. The signs are good that, after a soft patch, a recovery is gaining pace; indeed, there is real potential for positive growth surprises if the housing market stabilises in response to record affordability and rapidly deceasing inventory.

It is for Congress to avoid snatching defeat from the jaws of victory.

The risks that we have addressed so far leave aside the ever-present fragile geopolitics surrounding Iran and the Middle East, which we must hope do not spill over into energy markets at an inconvenient time so, altogether, it is understandable why stress levels are high.

For a longer-term investor, however, fear and opportunity are synonymous.

With that perspective, we continue to hold the view that there is far more to be hopeful about than is commonly believed.

In the meantime, supportive monetary policy from all the world’s major central banks, lack of speculative excesses in financial markets and a robustly healthy corporate sector ought to provide a solid buffer against the current chill winds.

John Haynes, Head of Research, Investec

For all the latest local and national business news online, log on to www.ldpbusiness.co.uk

business diary Friday, January 6 A SEVEN-MODULE online ECDL beginners course in computer skills starts at Liverpool Chamber of Commerce explaining key concepts in IT, organising files and folders, word processing, spreadsheet and data-

base applications, producing and delivering a professional presentation and using the internet and email.

The course fee is £150, but Chamber members receive a 10% discount.

Call the Chamber for further details on 0151 227 1234.

Thursday, January 12 SEFTON Chamber of Commerce is staging its latest monthly networking event, supported by Kinetics Personal Training, from 12 noon to 2pm. The venue is still to be confirmed – contact 01704 531710 for more.

Friday, January 13 A “60 REALLY Useful Minutes” session on improving the value of

your business is being staged at Liverpool Chamber of Commerce, hosted by Brian McCann, from Vanguard Corporate Finance, who believes the value of a business depends very much on who the valuation is being prepared for and will highlight some practical tips.

The 9-10am seminar is free to members and

£10 to non-members.

Book online at www.liverpoolchamber.org.uk Saturday, January 14 BUDDING women entrepreneurs can get their New Year’s resolutions off to a flying start at a workshop in Liverpool in January.

Reflect & Renew: Time For You takes place on January 14, at Liverpool Hope University, with trained coaches

from Appreciation Works, a social enterprise set up by Liverpool business specialists Suzanne Quinney and Helen Bush.

The workshop will study participants’ strengths and how they can fulfil their business and lifestyle aspirations.

Ms Quinney said: “Take some time out and give yourself a

chance to reflect, renew, relax and re-vision for the New Year.

Our workshop will use a mixture of coaching techniques.”

Cost is £97. For more information, contact Suzanne Quinney on 0151 427 1146 or 07940 726067.

To book a place (limited to 16) email suzanne@appreciatingpeople.co.uk

12

Wednesday, December 28, 2011

LDP business .co.uk trading gossip ■

REGENERATION agency Liverpool Vision is understandably pleased to have won praise from one of the UK’s most influential commentators.

Phillip Blond, below, stepbrother of James Bond actor Daniel Craig, has the ear of Prime Minister David Cameron and is the founder of the award-winning public policy think-tank, ResPublica.

Following a recent visit to Liverpool’s London Embassy, Mr Blond talked about the Global Entrepreneurship Congress taking place in the city in March.

He said: “It’s exciting

to think that Liverpool beat hefty competition from the United Arab Emirates, Denmark and Santiago, to host the GEC next March.

“It is a huge achievement that will put a global spotlight on the city. Liverpool Vision understands that entrepreneurship is vital.”

However, we’re not sure how flattered Vision’s ultimate boss, Liverpool City Council leader, Joe Anderson, will be by the comments.

Wirral-educated Mr Blond is seen as the architect of the PM’s Big Society idea.

Earlier on this year, Cllr Anderson said the severity of the Government’s cuts meant that it was not viable for Liverpool to take part in the Big Society pilot schemes.

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Champion networker holds keys to success

working day

Helen Griffin-Booth lives in Crosby with husband, Tim, and baby boy, Austin. She is the managing director of city lettings agency Bluerow Lettings. This was her working day . . .

5.15am: Austin wakes me up early – with a new baby boy, you don’t get lie ins. He drops off back to sleep and then I have a shower, a decaf coffee and then it’s straight to work. Before I’ve even left the house, I’m checking my e-mail on the iPhone and responding to urgent enquiries.

I drive to work, with the radio on full blast to wake me up, and in no time at all I’m arriving at the Anglican Cathedral for my weekly breakfast networking meeting.

6.15am: Meet with my fellow members of BNI’s Eagle Chapter. BNI has been a great help in getting my business launched and making some really useful contacts. Today is particularly special, and I get a round of applause for being a BNI champion and the number one for passing referrals.

8am: Two hours of solid networking later, I head round some of the properties we are managing to deal with issues. One tenant has a problem with his electrics, so I go and check that, then organise for an electrician to come out.

9am: Arrive at the office and check in with my office manager, Donna, and lettings manager, Julie.

They give me a quick update on any calls from tenants and landlords, which tenants have rents outstanding and any issues.

10am: Meet the client and look round some of his properties in Sefton Park.

He wants a valuation of their market value and how much he would be able to rent them out for.

I take some pictures, measurements and give him some idea of what he can expect in terms of a rental income. He is pleasantly surprised, which a lot of landlords are at the moment.

The rental market is literally booming in Liverpool, and properties can command a lot higher yields now than 12 months ago.

11am: Meet with some potential tenants who want to view properties in Aigburth Road and Sefton Park. I prefer to do viewings during the day,

Helen Griffin-Booth, of Bluerow, says the rental market in Liverpool is booming but I try to be as flexible as possible so will do viewings any time of the day, up until 7.15pm, to fit in with people’s work schedules.

The couple I take round the property in Sefton Park love it and are keen to agree letting terms. They actually want to agree to letting the property for three years.

A couple of years ago, the average letting was for a six-month term; now the average is 12 months, but with many tenants keen to tie themselves in for longer. With people unable to get onto the property market, they are becoming long-term renters instead.

12.30pm: I meet in Bold Street Coffee with one my clients, Phil, a landlord who I manage 70 properties for.

We talk through the portfolio, which properties are most profitable and I give him advice on which ones to keep and which ones might be worth selling.

2pm: Back to the office, where I go through the background checks on new, prospective tenants.

We always make thorough checks of our tenants, looking at credit histories, references, employment history, etc.

It may sound a bit Big Brother-like,

Picture: GAVIN TRAFFORD

but we want to make sure that our landlords will get good tenants.

4.30pm: Take a young couple for a viewing of a property in the Ropewalks area, around Duke Street.

This area is what we refer to as the creative hub of Liverpool, it’s more of an arty area, with lots of independent shops, unusual restaurants and generally amore alternative vibe.

6pm: I head home for my favourite part of the day, spending some time with Austin and Tim and enjoying a good cup of tea.