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FTSE-100
5766.9 ▲ 44.5
THE London market posted strong gains yesterday, as hopes rose that a solution might be found to Greece’s debt problems. The FTSE 100 added index added 44.5 points to 5766.9, with sentiment also boosted by a strong start on Wall Street after better home sales data overshadowed a drop in US consumer sentiment.
MARKET REPORT: PAGE 15
Fight begins to rescue iconic store chain TJ’s by Neil Hodgson LDP STAFF
neil.hodgson@liverpool.com
TALKS are under way to save Liverpool discount chain TJ Hughes before an eight-day “grace” period expires. The struggling retailer filed its intention to appoint an administrator on Monday, after reports a supplier was preparing to file a winding-up petition. The chain now has 10 days protection from creditors in which to try and
find a buyer or investor for as many of its 57 stores as possible, and protect as many of its 4,000 workforce as it can. London Road-based TJs suffered an alarming downturn in fortunes after posting improved pre-tax profits for the year to January 2010 which rose from £5.25m to £6.8m. However, it is understood TJs lost £10m in the year to January this year, and industry sources claim like-forlike sales have declined a further 19% since Leeds-based turnaround specialist Endless bought the business for a
“nominal amount” in March. The situation was worsened by the withdrawal of cover by credit insurers for suppliers, which protects them in the event of a collapse. A spokesperson for Endless admitted: “TJ Hughes had a very poor 2010 where heavy losses were experienced, and that led to a rescue refinancing in March. Since March, the business has experienced further problems with waning customer demand, but the key has been the loss of the credit and supplier insurance support.”
She added: “As a result, we are currently exploring opportunities for the business, which include selling some or all of the stores and hopefully seeing most of the jobs being secured.” John Gorle, a national officer with retailing trade union Usdaw said: “The company has assured Usdaw that they will continue to pay staff as normal and that there are no immediate plans for any store closures or redundancies.”
■ LONDON Road fears: P4-5
inside
£130m town centre plan moves ahead DEVELOPER selected to lead the regeneration of the Bridge Street area of Warrington. PAGE 2
Ferry trip shows off turbines
From left, David Williams, of Cammell Laird; Peter Gedbjerg, of DONG Energy (UK); and Mark Knowles, of The Mersey Partnership
LEADING figures from the wind power industry took to a Mersey Ferry yesterday to examine plans for a £450m offshore turbine development. Denmark’s Dong Energy explained proposals to extend its Burbo Bank facility, which already has 25 turbines generating energy to power 80,000 homes. Senior managers from multinational companies, including Siemens and Alstom, joined the ferry trip ahead of this week’s Renewable UK offshore wind conference, at the Echo Arena and BT Convention Centre. The event aims to showcase Liverpool as a hub for the offshore wind industry.
Picture CRAIG MAGEE
Football plans LIVERPOOL FC is looking to expand its retail empire into Southport and Dublin. PAGE 6
SME centre UP TO 30,000 sq ft of office space for small firms to be created in Anfield. PAGE 12
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Hauliers ‘should expand overseas’ MORE consolidation is predicted for the logistics business. The prediction comes out of a survey that shows that the majority of the UK’s largest logistics companies are now overseas owned. According to the research from Barclays Corporate and accountancy firm Grant Thornton, overseas ownership of the top 50 UK logistics companies has grown to 52% over the past five years with their turnover now equating to 69% of the top 50’s total turnover. This represents a jump of more than 40%. Barclays Corporate and Grant Thornton surveyed key decisionmakers from UK logistics businesses about their views of the industry. Major local operators include Stobart Group and Suttons. The research shows that 58% of respondents believe merger activity in the sector will increase over the next 12 months, with 33% of companies surveyed actively planning acquisitions. Philip Bird, corporate finance director at Grant Thornton said: “UK logistics firms need to be more successful in expanding overseas if they want to remain independent.”
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Warrington chooses to Muse over development by Alex Turner
LDP BUSINESS STAFF
alex.turner@liverpool.com
A MAJOR £130m development, that will transform Warrington town centre, moved a step closer yesterday with the appointment of a development partner. Muse Developments, which is also part of the St Paul’s Square development in Liverpool, has been selected to lead the regeneration of the Bridge Street area. The 25-year plans feature new shops, restaurants, a gym, cinema, foodstore, indoor market, cultural centre, hotel and council offices. It covers a six-hectare site between the Golden Square shopping centre and the River Mersey and is designed to act as a counterweight to Golden Square shopping centre, which has dominated the town centre since it was refurbished in 2007. The Bridge Street masterplan had been agreed in late 2008, and while market conditions has meant that progress has been slow, there is still a sense of satisfaction that yesterday’s announcement could be made. Cllr Terry O’Neill, leader of Warrington Borough Council, said: “This scheme will completely transform the town centre, bringing new jobs to the local area and providing the entertainment and leisure facilities that are currently missing but needed. “Warrington Borough Council wants to give the town centre a new heart and focus and we feel these plans will make it a more attractive place for residents to live and work in.” The first phase of the scheme will see the construction of shops, restaurants and a new market alongside the current marketplace. Work is expected to begin on site in 2013. The long-term plans have been supported by a promise from the council that it will move from its offices in New Town House and Quattro to the Bridge Street development when its current lease ends in 2017/18. Muse, a subsidiary of Morgan Sindall, already has a presence in War-
Muse Developments has been appointed as the lead partner to redevelop the Bridge Street Quarter rington, at the Lingley Mere business park development. Darran Lawless, development director at Muse, added: “We have always believed that this development would be a great opportunity to work on a genuine mixed-use regeneration scheme which will not only change Warrington but help its people enjoy a
much wider range of facilities and services than ever before.” Progress on plans for Bridge Street come as a £34m development to the north of the town centre nears completion. Orford Park is an Olympic legacy regeneration venture being piloted in the town using sport, leisure, health,
education and lifelong learning to promote the improved health and well-being of the local community. The scheme to transform 50 acres of a former landfill site on Winwick Road is being anchored by retailer Decathlon. It is scheduled to be completed early next year after two years on site.
Bank prepares for Greek crisis
Innov8 deal
THE Government and the Bank of England have been drawing up contingency plans to help them shore up the financial system in the event of a Greek default, Bank Governor Sir Mervyn King said yesterday.
CONSTRUCTION safety specialist Innov8 Safety Solutions has signed a deal with Peel Ports Mersey for a 12-month health and safety programme. Managing director Alan Robson said it will support around 100 construction projects at the port and Manchester Ship Canal involving 130 contractors, suppliers and consultants.
He told the Treasury Select Committee that talks have been held about how to deal with the fall-out from a Greek default although he refused to give details of the plans. Financial markets calculate there is an 80% chance of
Greece defaulting on its loans in some form, he added. Last week the Bank said the eurozone crisis was the biggest issue affecting UK financial stability and called on banks to come clean about their exposure to the crisis.
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Wednesday, June 29, 2011
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Baker uses his loaf to defy the downturn and help sales rise Howard Hunter’s company, Coulton’s Bread, launched the Bakestone brand in 2009 Picture: JAMES MALONEY/ jm230611ldpbiz-5
Alistair Houghton meets HOWARD HUNTER, managing director of Coulton’s Bread THE downturn may be taking slices off his margins, but jolly baker Howard Hunter says there’s lots of life in his business yet. Hunter runs Aintree-based bakery Coulton’s Bread, which boasts customers from supermarket giant Aldi and discounter B&M to schools, hospitals and corner shops. It sells bread and other baked products from some of the most famous names in the baking business, including Warburtons and Hovis. But it also sells its own products through the Bakestone brand it launched to help it win new business and maintain its margins. Hunter has been in the bakery business since the 1970s. He is a warm host, who remains passionate about the industry, and keeps a smile even when discussing the price pressures that have hit his business hard. He jokes that he and his team have been “busy fools” – but, behind the smiles, staff are fighting hard to win new contracts and keep Coulton’s in the black. Supermarkets are able to sell branded products cheaply, thanks to their buying power. That means Coulton’s faces pressure from its customers, particularly convenience stores, to lower its prices for those brands. “We developed Bakestone in 2009 to muscle into that market and survive,” said Hunter. “The recession has affected everybody. We have found it very difficult to maintain a margin everywhere in the North when you get Asda and
Tesco selling bread at two loaves for £2. “We started Bakestone because we needed a brand that we couldn’t be price-compared with. “If the price is £1.10, then everybody’s going to be selling it at £1.10. “We don’t get customers saying to us saying why should we sell at that price when you can get two for £1.50 at Farmfoods?” Bakestone bread, which sells at Aldi, has also been designed with recession-hit families in mind. “We have designed a larger loaf tin to generate more slices,” said Hunter. “You lose a little bit of height, but you gain four more slices, or six in medium-sliced. “If you’re a hard-pressed family, you might buy five loaves a week instead of seven. The price per slice is better value.” Manchester-born Hunter went to college to learn to be a baker before taking a job at a small bakery in the city. “It was all 3am starts making pies,” he said. “But my wife’s dad had a bakery – what were the chances of that?
q&a Age: 57 Biggest achievement in business: Probably getting this business up to £22m, starting from one bread van. We’ve got 85 bread vans now. There have been quite a lot of achievements on the way Biggest regret: I don’t have any regrets. I wouldn’t change anything Best advice received: Treat people as you would want to be treated – it’s a classic but it’s true. And I always like to see the pot as half full, not half empty
“He had heard there was a muffin round on sale in Manchester. “I didn’t have a penny. So he, in 1976, lent me the money. “I had my first muffin round. Then I added a second. Then a third, and a fourth. By 1985, we – Howard Hunter Morning Goods – were buying half the production of a small bakery called Quayside.” Hunter’s business invested in Quayside to improve its equipment, and eventually he bought them out. In the 1980s, Hunter began supplying the young Liverpool company Coulton’s – which had risen out of the ashes of one of the decade’s biggest industrial disputes. The company was founded by George Coulton, who left Scotts Bakery, in Netherton, after 40 years to set up on his own. The bakery closed after a bitter industrial dispute between Scott’s parent, Allied Bakeries, and unions. As recounted in the pages of the Daily Post from that dark February, workers went out on strike for six weeks “in a dispute over redundancies and shift changes”. But Allied then closed the factory down, with the loss of 700 jobs, saying “The workers have killed off their own jobs with their militancy – it’s as simple as that.” Scotts sales manager, Coulton, however, spotted there was an opportunity to keep the bakery’s drivers in work, and set up his eponymous business to distribute bread in and around Liverpool. He set up in a depot in Kirkby before Allied eventually invited him to set up shop in one of their buildings in Dunnings Bridge Road. But, as his business grew and took on more bread brands, including Warburtons, Coulton’s had to move away from Allied, and moved to its home off Long Lane 15 years ago.
In 2004, after being approached by the Coulton family, Hunter decided to buy the business to merge it with his own. In 2006, Coulton’s bought Bradford bakery Happy Bread. “It’s a really daft name, but it works,” smiled Hunter. In 2009, Coulton’s expanded its operations into the North East with the opening of a bakery in Newcastle. Today the business turns over £22m, with 100 staff around the country. The Manchester bakery is its largest site. Coulton’s bakes its own “morning goods” – such as scones and potato cakes – but contracts out its bread manufacturing. As well as major supermarket chains and public sector bodies, its customers include food service giants such as Compass and Sodexho. As the public sector cuts continue, and the retail sector continues to struggle, the economic prospects look gloomy. Hunter believes a recovery could still be some time away – and fears that as the downturn continues, customers will put more pressure on him to cut prices – all the while coping with fluctuating commodity prices. “You talk to small customers and say bread has gone up, and they’re not happy,” said Hunter. “Then they see bread in the supermarket, and they ring up and say ‘why have you put mine up by 6p when it’s still two for £2 at Tesco?’” Yet Coulton’s has continued to increase its turnover by winning new contracts, meaning it has been able to avoid making compulsory redundancies. “A lot of NHS contracts have been going up for e-auction,” said Hunter. “We’ve done more of them than we’ve ever done before. We’ve won all of them, but at lower prices.
“For example, with two hospitals we were already serving, we ended up with a 4p reduction, but we kept the contract. But, in that tender, they were bundling in another hospital that we didn’t serve before, so we gained from that. We’re growing turnover.” He smiled again, and added: “We’ve been busy fools. We turn over a lot of money but margins are tight. “It’s tough, but we’re still surviving. If people have left, we haven’t replaced them. We’ve grown the business and we’ve reduced the costs.” Hunter is also quick to praise his “loyal and committed” staff, several of whom have been with Coulton’s for many years. “That guy who just walked past there,” he said, pointing at the warehouse floor, “has been a bread man for 55 years. He’s 70 now and he doesn’t want to retire.” Hunter’s pride in building his business from one van to a £22m business is evident in everything he says. And that success has led him to meet some powerful people – including, most recently, the UK chief executive of Santander, Ana Botin. “She’s the 45th most powerful woman in the world,” said a still-impressed Hunter. “She wanted to meet customers who had just come over to Santander, so I got invited to their office in Manchester. “I was sat next to Fred Done – he’d just done a deal to buy the Tote. He sat to my right, and someone worth £100m sat to my left.” Spurs fan Hunter has been married to Lynn, a fellow director at Coulton’s, for 38 years. They live on a farm north of Bury, from where they travel around the Coulton’s empire. “She’s my inspiration,” he said – smiling again.
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Wednesday, June 29, 2011
LDP business .co.uk
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Store chain’s woes Managing risk sparks A key skill for small business concern
Nearly 400 jobs go at Jane Norman FASHION retailer Jane Norman’s Liverpool store has escaped the axe – but two local stores have closed while the future of another remains in the balance. Nearly 400 staff at the group are to lose their jobs after administrators failed to find a buyer for 33 stores. Jane Norman, which employs 1,600 staff, shut its 94 stores and appointed
Zolfo Cooper as administrator yesterday, after it became the latest victim of the squeeze in consumer spending. Zolfo said yesterday it had been unable to find a new owner for 33 stores, including those in Chester and Cheshire Oaks, hitting 290 jobs, while 106 positions at its London head office will also be axed. However, it has agreed to sell 33 stores to knit-
wear retailer Edinburgh Woollen Mill under a pre-pack deal that will see the Jane Norman name survive on the high street and will save 396 jobs at the shops in question – including the store in Liverpool One. Edinburgh is also in discussions with Zolfo about buying a further 28 stores, including one in Warrington, in a move that could save hundreds more jobs.
In the meantime, the group’s 95 concessions, mainly in department store chain Debenhams, will continue to trade while the administrator talks to the retailer about a possible sale. If Debenhams buys them, it could save a further 496 jobs. Some staff at the head office and Coventry warehouse are being kept on as the company prepares to wind down.
ADVERTORIAL
As TJ Hughes bids to escape collapse, Neil Hodgson reports on the wider repercussions, and opportunities for the London Road area
By Leigh Taylor
AREA DIREcTOR fOR LLOyDs TsB cOMMERcIAL In ThE nORTh WEsT SucceSSful business owners recognise very early on that identifying and managing the risks facing their business is an essential survival skill. Risk can mean many things, from an increase in competition to disruptive weather, and the trick is to put measures in place to ensure that the risks you can’t control don’t derail you completely. exploring new markets is one way to mitigate the risk of falling sales. According to the federation of Small Businesses, only 18 per cent of its members in the North West currently export, which leaves plenty of opportunities for SMes in the region to explore overseas trade for the first time. The organisation argues that an exporting led recovery would be helped by ‘more effective and targeted promotion of the support available and tailor-made information for small businesses.’ That’s why at lloyds TSB commercial we strive to provide guidance and support to SMe customers to provide tailor-made information and ensure they have the right strategy in place to overcome the barriers to exporting. We can introduce you to our financial Markets team, who specialises in working with businesses to manage the impacts of movements in foreign exchange and interest rates on their businesses, helping them to protect their profit margins and plan for the future. This support helps companies create a business plan which doesn’t just focus on the opportunities but also takes an honest look at the hurdles. It may be that you are importing raw materials from overseas or have identified a great foreign market for your end product. either way, a small adverse move in the exchange rate
Exporting to new markets is one way to mitigate the risk of falling sales could write off the profit on your sale or increase the cost of your purchase if you haven’t anticipated it. Not all risk relates to overseas markets – bad debt is an ever present issue for SMes, wherever you trade. The experian late Payment Index issued earlier this year shows that businesses in the North West are seeing customers pay their bills an average of 28.85 days late. It makes sense to have an early discussion with your bank so that we can understand your appetite for risk and give guidance on lending and financing solutions. These may be in the form of a loan or it could be that factoring and invoice discounting is more suitable. This flexible option allows you to release the value of your invoices and can help bridge the gap between supplying services or products and receiving payment, helping stabilise cash flow and manage the impact of late payments. for more information about how lloyds TSB can work with you and
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lloyds TSB commercial is a trading name of lloyds TSB Bank plc and lloyds TSB Scotland plc and serves customers with an annual turnover of up to £15M. Authorised and regulated by the financial Services Authority. lending is subject to status. Invoice finance, Hire Purchase and leasing facilities are provided by lloyds TSB commercial finance limited. When using these products and services your agreement is with a lloyds Banking Group company whose terms and conditions will apply. lloyds TSB commercial finance ltd. Registered office: No. 1, Brookhill Way, Banbury, OX16 3el, Registered in england and Wales no. 733011.
THE potential demise of TJ Hughes could lead to even bigger repercussions for the historic Liverpool trading quarter of London Road. Liverpool Chamber of Commerce director Brian McCann expressed his fears for the future of the area if TJ’s does hit the rocks. For many years, TJ’s has provided the pull for shoppers to make the diversion from the heart of the city and visit London Road, which for the past two decades has occupied the periphery of Liverpool’s shopping offer. During the past five years, the area has seen some regeneration which has helped mitigate the pull of the £1bn Liverpool One retail centre that opened in 2008. But the potential loss of TJ’s, which was preparing to celebrate the business’s centenary, would deal a dreadful blow to the area. Mr McCann told LDP Business: “This is a very, very sad day for Liverpool. “One of its major retailing names has gone. “It is extremely sad, and particularly sad for the London Road part of town, because it is a relatively key store on that famous road. “It is really galling that it should happen so close to its centenary.” Mr McCann added: “It has been a week of bad news on the retail front, which is probably related to the fact that we are now at the end of June and retailers have hefty rental payments to make at the end of the quarter.”
About 1,600 jobs were put at risk on Monday when fashion chain Jane Norman became one of the latest high street casualties linked to volatile interest rates and job fears that are causing shoppers to rein in their spending. Furnishing chain Habitat and kitchens and bathrooms specialist Moben and Dolphin have also succumbed to the retail decline, while further fears have been raised with the news that Marks & Spencer will launch its summer sale two weeks early. In the meantime, the hope remains that a positive resolution can be achieved for TJ’s, which has until the middle of next week to find a possible buyer or investor to save the chain before it falls prey to creditors. Mr McCann said: “We will have to wait and see what happens with the administration process. “Some businesses go into administration, but do come out the other side.” A pre-pack arrangement with administrators could see TJ’s owner, Endless, acquire the profitable sites and carry on trading, leaving the loss-making stores and bad debts with the administrator to try and dispose of. Mr McCann said: “A pre-pack is always an option. “I would hope there is an opportunity for a pre-pack, but I hope it has some proper funding and potential. “It is enormously important for London Road. “I hope the London Road store would be part of any pre-pack because it must have one of the
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Wednesday, June 29, 2011
LDP business .co.uk
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Shock: the TJ Hughes store in London Road, Liverpool, yesterday Picture: JASON ROBERTS/ jr280611tjhughes-4
TJ Hughes, founder of the department store chain that still bears his name
Retail dynasty now almost a century old
TJ Hughes stores are trading as normal most loyal customer bases in the city. “A fair proportion of people would have worked there, never mind shopped there.” And he pledged the co-operation of the Chamber to anyone seeking to rescue TJ’s: “The Chamber of Commerce will happily talk to anyone who wants to take this forward and where we might be able to help.” However, academic Prof Peter Stoney sees the plight of TJ’s as a possibility to change the London Road area and create an entirely new focus linked to the city’s visitor economy, or even as an opportunity ripe for housing. The honorary senior fellow at
the University of Liverpool Management School expressed his shock at the plight of TJ’s. “TJ’s is at the lower end of the retail market, and that has surprised me that it could go under.” He said he feared for the future of London Road as soon as Liverpool City Council announced its intention in 2000 to create a new retail heart for the city with developer Grosvenor and its Liverpool One scheme. “London Road was always under threat when they started Liverpool One, in my view. “There was always a concern about the viability of London Road as a retail shopping precinct, especially with the Central Village
Liverpool Chamber of Commerce director Brian McCann development in Bold Street coming up. “But, in terms of what happens next, if TJ’s goes and they can’t find a buyer and they have to stop trading, there has to be a rethink about what London Road can be used for as an alternative consumer offering. It may be that they need to rethink the kind of shop that needs to be there. “There could be another kind of retail mix that could be viable. “For example, a Tesco Express, restaurants, or pubs, to serve the visitor economy which is going to grow in Liverpool. “If it is possible to find investors to alter the retail mix, they could tie that in to the needs of the vis-
itor economy and make the area attractive in that way.” Prof Stoney called for swift action to avoid a slow, lingering death for London Road. “The Chamber of Commerce and the council should be getting their heads together with people like The Mersey Partnership, people like Ged Gibbons, (City Central Business Improvement District chief executive) and other movers and shakers with the know-how to make things happen, to come up with ideas, maybe even including housing developments for that end of Liverpool. I don’t see it as a lost cause, I see it more as an opportunity to redevelop.”
■ BILL GLEESON: Page 8
FORMER draper Thomas J Hughes opened his store in 1912, with the maxim “buy expensive and sell cheap”. Aged just 24, the West Kirby man regularly worked 13-hour days. The store had a few assistants and Thomas J Hughes was the main shopkeeper, overseeing everything within the business. In 1925, the large department store group Owen Owen announced plans to move out of its Audbrey House site, on London Road, into the new centre of Liverpool, at Clayton Square. The building was put up unsuccessfully for sale. The then-chairman of Owen Owen, Duncan Norman, went to see the TJ Hughes shop. He was so impressed that he agreed to let TJ Hughes run and expand his business in Audbrey House for part-ownership of the business under Owen Owen. Then, TJ Hughes became a department store. The business was expanded by Owen Owen until being sold in the 1980s. Owen Owen later went on to purchase Lewis's, another Liverpool department store. However, TJ Hughes has remained at the London Road location since the 1920s. The business had just three stores by 1990, which had increased to 16 by the time it floated on the Stock Exchange two years later. It had grown its portfolio to 36 stores by the time Wigan entrepreneur Dave Whelan bought it for £42m in 2000. However, the “pile it high, sell it cheap” chain proved a poor fit with his JJB sports retail chain, and he sold it in a £56m buyout backed by PPM Capital in 2003. PPM, later known as Silverfleet, embarked on a period of expansion and had grown the TJ’s estate to 57 stores, which were acquired for a “nominal sum” by turnaround specialist Endless this March.
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Wednesday, June 29, 2011
LDP business .co.uk Cheshire tourism drive on course PROMOTION body Marketing Cheshire has helped drive more than £1.2m in vital investment to support tourism businesses across rural Cheshire. So far, 16 major projects in Cheshire and Warrington have received £463,000 of grants, levering in £740,000 of private sector investment, new figures show. They include the conversion of redundant farm buildings into B&Bs, hotel refurbishment, increasing the grading of camping and caravan parks, creating a children’s play area and supporting the growth of local events. Marketing Cheshire chief executive Chris Brown said: “These figures show just how much is being delivered into rural communities through this initiative.”
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Redrow strikes gold after six-in-a-row safety success
Redrow Group health and safety director Bob Sayers, watched by Wayne and Andy Nicholl, and Jimmy Everson
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0151 227 1234 A simple way to close the skills gap
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SIX of the best has been rewarded with a safety gold medal for housebuilder Redrow. The Ewloe-based firm – founded by Liverpool entrepreneur Steve Morgan who was named last week as Liverpool Daily Post Business Person of the Year – had won six consecutive safety awards from the Royal Society for the Prevention of Accidents (RoSPA). Safety charity RoSPA has now recognised the feat with a prestigious gold medal to recognise the firm’s achievements. Group health and safety director Bob Sayers said: “Taking pride in a job well done is very much at the heart of Redrow’s operations. “Having robust health and safety procedures in place and adhering to them constantly is essential, and we rely on the input and co-operation of every member of staff and all of our sub-contractors on site to maintain our strong record.” RoSPA awards manager David Rawlins added: “Redrow has shown it is committed to striving for continuous improvement.”
LFC to expand retail empire ¢ by Alex Turner
M O N T H LY R E G I O N A L B U S I N E S S M A G A Z I N E
LDP BUSINESS STAFF
alex.turner@liverpool.com
LIVERPOOL FC is looking to expand its retail empire – but its sights are focused on Southport, rather than Shanghai. In an exclusive interview with LDP Business magazine, which is published tomorrow, Liverpool FC chief executive Ian Ayre outlined the short-term plans to reach more fans with its retail offer. The Premier League club currently has five outlets – in Liverpool at Liverpool One, Williamson Square and Anfield, as well as Chester and Belfast. It has identified a suitable site in Southport and is negotiating terms, while it continues to search for a site in Dublin. But he remains unconvinced about the merits of opening a standalone Liverpool FC store in a major Asian city. Mr Ayre said: “One of the things that a lot of people don’t understand about football retailing is in Liverpool two out of every three people who walk past our store in Liverpool One are probably Liverpool fans to differing degrees. “There are millions of fans in Asia. But if you put a store in Shanghai, are there enough fans in Shanghai and are they engaged enough? Is there enough appetite for it? “Other clubs have tried it and I am not convinced, from what I have heard. “It may be that the online store should be more locally focused, or maybe we will get a concession in a major retailer.” In a wide-ranging interview, Mr Ayre also talks about where he believes the club’s
¦ w w w . l d p b u s i n e s s . c o . u k July 2011
A return to winning ways Liverpool FC managing director sets out his vision for the club
Ian Ayre, pictured on the front of tomorrow’s LDP Business magazine former owners, Tom Hicks and George Gillett, went wrong – and why the current owners, Fenway Sports Group, are not repeating those mistakes. Elsewhere in July’s LDP Business magazine, available tomorrow free with the Liverpool Daily Post, is an analysis of the city’s £2.8bn visitor economy, along with a focus on regeneration in Halton, while the commercial property spotlight is turned onto one of the biggest business parks in the North West, MEPC Birchwood Park.
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Wednesday, June 29, 2011
LDP business .co.uk
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A salutary lesson for any business relying totally on computers
Matt Johnson AN OLD adage from the early days of computing ran along the lines of “rubbish in, rubbish out”. In other words, the quality of what a com-
puter produced was based to a very great extent on the quality of the information it was given to process. The early applications of computer processing to business were at times tentative. In those days, machines could perform numerous repetitive tasks quickly. Nowadays, we live and work in a very different computer-aided society. Some mobile phone manufacturers, for example, say that the processing power in their handsets is greater than that in the command module of the Apollo moon ships. So, new systems are more sophisticated, offer far superior operating speeds and a capacity to drive businesses
forward with greater efficiency and competitiveness – most of the time. Last week, we were given a reminder of the fallibility of these advanced systems when a glitch struck a business at the very forefront of logistics technology. Like many successful businesses, Tesco uses computers in nearly every aspect of its operations. The sheer scale and complexity of its need to move the right quantities of the right (often perishable) goods to the right place at the right time demands leading-edge technology that works;
leading-edge technology that is given the right information to process. One day last week, something somewhere went wrong – with fascinating results. An error in a drinks promotion saw the retail giant forced to call in security staff after shoppers raced to cash in. It was reported that customers up and down the country were able to walk away with 24 cans or bottles of leading lager for only £4. The promotion was supposed to offer a saving of £4 on two cases of 12 drinks which would normally sell for £20.
‘Retail giant had to call in security staff’
Considering how many lines sit on the shelves in the average Tesco store, and how many prices have to be programmed into their systems, it may not seem such a huge glitch. But it was computer power of another sort that saw the situation worsen. In the space of just two hours, an internet site detailing what was happening at Tesco check-outs was viewed 20,000 times, and social networking sites played their part in spreading the word about cheap beer. A lesson for any business relying on computers. ■ MATT JOHNSON is chief executive of Mando Group
Gingerbread raises dough to fund nursery expansion by Alex Turner
LDP BUSINESS STAFF
alex.turner@liverpool.com
A MERSEYSIDE pre-school and day nursery company is to embark on significant growth, after securing a “substantial investment” to support its expansion. Gingerbread Pre-Schools Group already operates two centres in Crosby and Fazakerley, with a third one in Mossley Hill due to open in the autumn. A fourth site in south Liverpool will open early next year. The company’s chief executive, Stephen Collins, has drawn up plans to build the chain up to as many as 10, over the next five years, which would involve the creation of about 200 jobs. Gingerbread is backed by national investment company Downing LLP, which has made a substantial investment to assist with the planned roll-out. Mr Collins said: “During the past 10 years, Gingerbread has established itself as a quality pre-school and day nursery provider with two successful centres, Gingerbread House in Crosby and Gingerbread Cottage in Fazakerley. “We are passionate about providing high-quality child care in an environment that is safe and stimulating – a place where learning takes place through play, and everyone is treated as an individual. “Our aim is to be the top early years childcare provider in the North West and one of the most successful in the UK. “We have put in place a strong management team and secured the support of Downing and are very excited about the future.” The deal will see Downing’s Paul Beaumont become a director of Gingerbread. He said: “Downing has a history of backing strong management teams, and we are excited to be involved with this business. “We have spent some time looking at the way they operate and have been attracted by the enthusiasm, commitment and professionalism of the people within the business. “We are very confident that we can provide the financial support to take the business to the next level.”
Stephen and Yvonne Collins – say they have ambitious plans for Gingerbread Pre-Schools Group Gingerbread is currently renovating Greenbank Park Pre-School, a former convent in Greenbank Road, Mossley Hill. Gingerbread, which currently employs 60 staff, utilises technology to
provide an enhanced service. The nurseries have installed biometric fingerprint access technology and offer parents a secure online “internet viewing system” which allows them to access live nursery images to watch
their child playing at any time. It can also be accessed on smartphones. Gingerbread House was among the first nurseries in the area to be accredited with five stars under Sefton Council’s Scores on the Doors.
Charity challenge brings in £3,000 ENTREPRENEURIAL spirit helped to raise more than £3,000 for the Liverpool One Foundation, after Grosvenor launched a £100 challenge for staff. Liverpool One team members were given £100 each to think up ways to raise money for the charity and used the money to create a variety of fundraising activities, including a Mother’s Day flower stall on Paradise Place, a race night in Café Sports Express and a Zumba class on Chavasse Park. Grosvenor also donated £1,000, raising the total to £3,000. Cathy Elliott, chief executive of the Community Foundation for Merseyside, which manages the Liverpool One Foundation, said: “It gives us great pride to see the team at Liverpool One getting involved to help us continue our work. “We rely on donations, and the hard work of fundraisers really does make a huge difference to the local projects that are working at the heart of the community.” Chris Bliss, Liverpool One’s estate director, added: “We are proud to have made such a difference to people’s lives within Merseyside, and are already planning more fundraising initiatives for the future.” Part of The Community Foundation for Merseyside, the Liverpool One Foundation has recently moved to a new office in Liverpool One. The office space was donated by The Grosvenor Liverpool Fund to support the charities’ continuing work.
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LDP business .co.uk Bill Gleeson The demise of TJ’s is out of the blue and unexpected IT’S PROVING a very difficult June on the high street. Within the space of a few days, Habitat, Moben, Jane Norman and now TJ Hughes have either gone pop or look very much as if they are about to. Most of the recent sudden closures will have been brought on by the end of June quarter day, when shop rents become due to landlords. It’s easy to understand why Habitat has gone bust. It is an up-market, big ticket retailer, selling sofas and other large items of furniture that cost thousands of pounds a time. It’s pricey designer stuff that’s out of keeping with the austere times we are in. TJ’s, on the other hand, is just the type of business you would expect to be doing well in current conditions. As a discount retailer, its shops ought surely to appeal to bargain-hungry consumers looking to save a few bob. Notwithstanding the general gloom on the high street, yesterday’s bad news about TJ‘s was a bolt out of the blue. It had, after all, just changed hands with Anthony Solomon, who took over stationers and book shop chain The Works, buying into the business with the backing of Endless, the venture capital business. Less than three months later, Mr Solomon is out of the job and Endless are looking to appoint an administrator. Certainly, other discounters, such as Home Bargains, are still able to grow their businesses. Yet, by all accounts, TJ’s looks set to lose a lot of money this year. The figure has been put at £10m. This might be down to the precise nature of the goods sold by TJ’s. While Home Bargains and B&M Bargains sell life’s essentials such as soap, toilet paper and toothpaste, TJ’s sells, for example, cheap flat screen tellies. Even at half price, a big telly is an expensive discretionary item. TJ’s sales are down a
massive 19% in the space of just a few weeks. That pace of decline is far in excess of the slowdown seen on the rest of the high street. You can’t, therefore, just blame the factors that affect all retailers. It’s not the rising cost of living or tighter household budgets. Something else is going on. Some other error of judgment may be to blame. While the business may very well go into administration, I wouldn’t expect the London Road store to close, or for that matter, most of the rest of its branches. A few loss-making stores may go, but I would anticipate that this business will back in full swing shortly. Irrespective of what happens to TJ’s, those retailers left standing will find the less congested high street an easier place to breath. TO SAY something about tomorrow’s public sector strikes feels a bit like somebody else’s problem. The strikes aren’t directly impacting on business. But it would be wrong to dismiss the pensions issue as somebody else’s fight, as it affects us all. As taxpayers, we all foot the bill for public sector pay and conditions, including the cost of their pension contributions. Many in the private sector will feel that they have already made the adjustments and sacrifices being asked of public sector workers now. The problem will get worse. We are living longer. The rate of improvement in life expectancy is fast and will only get faster. Treatments in the offing for a wide range of illnesses will prolong life. Some gene therapies could even slow down ageing, causing many to live for another hundred years or more. In the light of the march of science, the raising of the retirement age to 68 could quickly prove to be too little yet.
Cruise turnaro Business leaders came together to debate the city’s visitor economy. Tony McDonough reports
PERSUADING the Government to allow cruise ships to begin and start their voyages at Liverpool is key to the future growth of the city’s visitor economy. That was the view put forward during the latest LDP Business debate. Economic development agency The Mersey Partnership (TMP) has produced detailed documents outlining a push for growth in four key sectors – knowledge economy, superport, low carbon economy and visitor economy. This latest debate on the visitor economy was chaired by Daily Post business editor, Bill Gleeson, and on the panel was TMP chief executive Lorraine Rogers, Liverpool Football Club managing director Ian Ayre, ACC Liverpool chief executive Bob Prattey and Stephen Roberts, manager of the Crowne Plaza Hotel. Cruise ships are currently allowed to call in at Liverpool’s cruise liner terminal but not begin or end their journeys. Because of the level of public money used to build the facility, the Government says allowing it to be used as a turnaround facility may contravene the rules on state aid. TMP, backed by a Daily Post campaign, is pushing for this to be overturned. During the debate, Lorraine Rogers said that if the lobbying were to prove successful, it would prove to be a “real game-changer” for the city region. “I believe we are edging closer to it,” she said. “Getting a turnaround facility would be great news.” Stephen Roberts, whose hotel overlooks the terminal, added: “A turnaround facility would be the most significant opportunity for the visitor economy. “The pre and post-cruise liner market is enormous, so if it happens it will be fantastic.” Ms Rogers said the city region now had an all-round package to offer to visitors and the next big task was marketing that offer to maximise the potential to the sub-regional economy. She added: “Our offering is all about culture in the very broadest sense – the assets and cultural events that we have – music, sport, fine arts, exhibitions. “We have the finest collection of art outside London. “Gaps – for example, in retail – have now been filled and we now attract a very broad audience. “We have the raw ingredients but it is about how we package them – how we get the message out. “There is a big focus on overnight stays – occupancy figures are very important to us.” Bob Prattey claimed the Echo Arena and BT Convention Centre had generated around £400m for the local economy since they opened. He said: “People who come to the arena tend to be day visitors – usually from within a 60minute drive time. The arena has recently welcomed its two millionth visitor. “People coming to the convention centre will travel from across the country and from abroad. Numbers are lower than the arena, but the majority will stay
The LDP debate panel, from left, Lorraine Rogers, Ian Ayre, Bob Prattey and Ste here overnight. The conferences are now coming in week after week and we can encourage people to stay after the events and take in the leisure attractions. “The majority of them are coming to Liverpool for the first time and some of them are high rollers. “That is great because today’s business tourist can become tomorrow’s leisure tourist.” Ian Ayre, who is also chairman of TMP’s visitor economy, talked about the huge economic impact of football to the city. He said: “Usually around 10% of people who come to watch a match at Anfield come from outside the city region, and around 50-60% of them will come from outside the UK. “We are talking about 2,500 people. The fixture list for the season has just been published and that will help the hoteliers know when they are going to be full. “Those visitors will often come to us at the club and ask about other attractions in the city.”
‘We now attract a very broad audience’
Mr Roberts acknowledged the positive impact on the city and talked about a growing phenomenon whereby people coming to watch football will also bring their partners and families and visit other attractions while they are here. However, he said the absence of European football next season would have an impact, and he said the city needed more midweek attractions to fill the gap. He also addressed the issue of whether or not Liverpool had too many hotel beds for the number of visitors it currently gets. He said: “There is an argument that says the proliferation of budget hotels in Liverpool is not doing the city any favours. “Having more hotel stock at the lower end of the market means we attract more weekend stag and hen parties, and they just want to imbibe. “So there needs to be balance and we need to make sure we are a little more targeted.” However, Mr Prattey said as many
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Liverpool’s Beatles Story museum – the Fab Four continue to be a major draw, almost half a century after their first hit
Culture year just the start for city’s global ambitions
ephen Roberts, agreed cruise turnarounds would give the city a huge boost hotel rooms as possible, from whichever end of the market, were essential if Liverpool was to compete with other cities for major events and conferences. He added: “I think the more hotels the better. We have a challenge during big conferences to get enough bed stock within the vicinity of the ACC. “Other cities like Manchester have more rooms and when there is a big match on here, or an event like the Grand National at the same time as a conference, then that is a real challenge for us.” Mr Rogers said that, on this issue, the city was a victim of its own success. “The visitor market has grown so rapidly in such a short space of time and so maybe it needs to settle. “We have to look at the hotel stock and what kind of events we have. In terms of what the city has to offer, we have raised the bar and we don’t want to drop our standards. “There is less money now from the
public sector for events, and so we need to work with the private sector to be more creative. We are not a capital city and to compete with capital cities is very difficult. They have more resources. “We do have some very special parts to our offering – the music scene and the golf, for example. How many cities have two Open golf courses nearby.” The panel agreed that golf was an area with a huge amount of potential. Mr Ayre said: “Both golf and horse racing offer outstanding events with an international profile and we need to capitalise on what we have created. “The England’s Golf Coast initiative has seen 10 times the number of people coming in for golf breaks. “We need, perhaps, some bespoke packages to attract even more.” Mr Prattey agreed, adding: “A lot of people who come to conferences like to play golf, so it is a case of persuading them to stay.”
‘The more hotels we have in the city the better’
LIVERPOOL’S status as European Capital of Culture in 2008 wasn’t the pinnacle of Liverpool’s ambitions as a global tourist destination – it was just the start. The city region – already popular with visitors – is seen has having huge tourism potential. The strategy document for the city region economy outlines a number of ambitious targets for the visitor economy. With continued investment and a co-ordinated approach, the vision is that by 2020: ■ The city region’s visitor economy will be worth £2bn and support 37,000 jobs; ■ Liverpool will always be featured in the UK’s top five cities for short breaks and conferences, and be one of Europe’s top 20 favourite cities; ■ Liverpool will be world-famous for its exceptional culture, music, sport, Unesco World Heritage Site, iconic waterfront, The Beatles, and Premier League football. During the LDP Business debate on the visitor economy, TMP chief executive Lorraine Rogers posed the question:
“Why is the visitor economy so important to Liverpool? “It is about jobs. People working in shops, restaurants and cafes and it is about visitors animating our city.” She also spoke about the continuing importance of The Beatles in attracting people to Liverpool from all over the world. “The Beatles are a global brand and we fully appreciate the value of that brand. There is always more we can do.” Bob Prattey also spoke about the huge potential of the planned expansion of ACC Liverpool to include an exhibition centre. He said: “We are really excited about it, and we are hoping to have it in play by autumn, 2014. “It will be able to stage both exhibitions and conferences and we will be able to better cater for larger events. “Party conferences, for example, need a large exhibition space alongside. At the moment, we have to close off the arena to events to accommodate that.”
private business European sales up at sat-nav supplier
THE Runcorn-based manufacturer of sat-nav devices, Performance Products, enjoyed a strong growth in sales in 2010. The company, which sells its products under the brand Snooper, increased sales by £1.9m to £9.5m, although it was unable to translate that into higher profits, with pre-tax profits down nearly 40% to £260,000. Of the 26% sales increase, 11% was generated by new products across the company’s sat-nav, GPS detector and outdoor leisure products, including a product which can establish the distance to the pin on 4,500 golf courses across Europe. Performance Products said its sales in Europe “attract lower margins than the equivalent domestic sales”. During 2010, sales to Continental Europe represented 55% of the total, up 15 percentage points on a year earlier. UK sales were down £600,000 to below £4m, while European sales grew £2.2m to £5.2m. There were also sales of £380,000 to the rest of the world. At the year-end, its goods for resale were £1.3m higher than a year earlier, at £3.7m. Accounts filed at Companies House showed a positive cash balance of more than £200,000 at the yearend, although the company noted the “uncertainty” created by economic conditions, particularly around customer demand and the exchange rate between sterling, US dollars and euros. It said that its forecasts and projections show the company “will generate profits and cash in the next two years”. Performance Products was founded in 1979 by Chris Ballard. His sons, Stephen and Jason, along with finance director Shaun Tolley, now run the company, which is ultimately owned by American firm Cobra Electronics. ALEX TURNER
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briefing Daisy Group losses edge higher COMMUNICATIONS services firm Daisy Group reported a pre-tax loss of £19.7m for the year to March 31, compared to a £19.6m loss the previous year. However, the group said it will trade towards the upper end of the current market expectations for profit in the financial year ahead and anticipates further improvement in cash generation.
Construction contracts won GALLIFORD Try has won two contracts in the healthcare sector worth £40m. The company has secured a £29m contract to build the Hagley Road retirement village, in Birmingham, for the ExtraCare Charitable Trust, and two schemes worth £5m and £5.3m for the South East Essex Primary Care Trust.
Centrica burnt BRITISH Gas parent Centrica warned earnings in the first half of the year were likely to be lower than last year. The utility giant said higher wholesale prices, weak consumption and higher North Sea production taxes would all hit its financial performance. However, Centrica added that full-year earnings will show “year-on-year growth” in line with previous guidance.
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Mark Parello – wants his website to help the city’s businesses Photo: GARETH JONES/ grj021210business-3
Online network creating A Busy World in the city by Alex Turner
LDP BUSINESS STAFF
alex.turner@liverpool.com
THE world of wealth management is, in essence, all about taking what already exists – cash – and making it grow by selecting the right partnerships. Mark Parello, who by day is an investment adviser for Liverpool-based Millen Capital, has taken the same principle and applied it to online networking for the city’s businesses. After spending many months progressing the idea and working with two developers to make his vision a reality, he launched his website, abusyworld.com, last December. He has seen it grow, attracting more than 4,000 registered users to the site, who are using it as a platform to promote themselves and their business. “I got married three years ago and we had a baby boy two years ago. My perceptions changed,” said Mark. “I love what I do in investment management, but I wanted to see if there was a way I could help other people who were in the position I was in. “I didn’t have the greatest start in life, and then everything I had done previously had been pretty selfish in terms of the next career move, the next bonus. “I thought ‘what’s the best way to reach as many people as I possibly
Facebook founder Mark Zuckerberg – social networking site not really for professionals, says Mark Parello Picture: PAUL SAKUMA can?’ – that’s the internet. I wanted it to be something I am passionate about – I am passionate about people and I am passionate about business.” His aim was to create a platform where the business community – in particular, new businesses and SMEs – can connect. Mark said: “I had a look at what tools were out there, where I could help business and help connect people in business. “Facebook isn’t really for professionals. Twitter, well, I don’t see that businesses get any real use from using it. LinkedIn has got networking capabilities, but it’s not a tool I would like
to promote myself on, it’s ugly and difficult to use. “I wanted to create a site that people can use to help them do business or find funding and advice. That’s where we started from.” However, he plans to make A Busy World into more than just a networking site. “We are going to make it into a business tool,” he said. “Unlike LinkedIn, which is like a CV online, we want A Busy World to be a tool for business. “For example, we want businesses to be able to sell through the site.” He has remained focused on his
twin aims of helping businesses and helping people, through a distribution of revenues to charity. Mark said: “I called the site A Busy World for a reason, but one of my immediate goals is to connect Liverpool. I am based in Liverpool, it’s been great for me and my family. If I can help bring opportunities to more and more people, that’s my aim. “It was set up to help people connect with each other, so people had a tool to help themselves and help others. “While people are using A Busy World and creating their sites, they are helping others. Hopefully, that good karma will keep going round and round.” The site has free and paid-for options, with the £1-a-week cost allowing members’ websites to be accessed by anyone online, not just by registered users of the site. Of the £1, fifteen pence goes to forces and children’s charities, and Mark is in the process of setting up a charitable trust to create a formal structure for the money to be held and paid out. “As well as helping themselves to connect with each other, we will be able to give more help to the charities – that’s what’s really driving me to be honest,” added Mark. If it was just about the money, I would be bored by now.”
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Thorntons unwraps jobs gloom in stores closure plan CONFECTIONERY chain Thorntons dealt a further blow to the high street by announcing plans to close up to 180 stores, putting between 750 and 1,125 jobs at risk. The group said it will exit at least 120 outlets over the next three years as their leases expire, while it will also consider the future of an additional 60 shops over the
same period. The plan will leave Thorntons with around 180 to 200 company-owned stores, although, in the majority of locations, it hopes franchisees will open outlets. It is the latest blow to the high street after the failure of chains such as Habitat and Oddbins in recent weeks. Retail chains such as HMV,
Game and JJB Sports, which have long been the mainstay of UK high streets, are also slimming down their store estates. And Mothercare said recently that it would axe 110 shops in order to focus its trading on out-of-town locations. The Thorntons strategy review, led by new chief exec-
utive Jonathan Hart, will see the company increasingly focus on its commercial division, which sells Thorntons-branded chocolate through other retailers, and grow online sales. The review also aims to make the business less dependent on seasonal events such as Christmas and Easter by increasing the
number of gifts it sells. Mr Hart said the strategy was the right one because he sees the current weakness in high street footfall and consumer sentiment continuing. He said the staff would be offered alternative roles where possible. Thorntons shares closed more than 7%, or 4.5p down, at 58p.
LFC sponsor on track to achieve new profit high by Alex Turner
LDP BUSINESS STAFF
alex.turner@liverpool.com
STAFF cuts, coupled with growth in Hong Kong and other key Asian markets, have put Standard Chartered on track for record profits in the first half of this year, up over 10% on a year earlier. The Asia-focused bank, which has just completed the first year in a four-year sponsorship deal with Liverpool FC worth up to £81m, yesterday said income and profit were up over 10% in the first five months of the year, and cost growth would be broadly in line with income growth in the first half. “It's a very positive statement and an improvement on the Q1 stage, as they’ve clearly improved the situation on the cost to income line,” said Mike Trippitt, analyst at Oriel Securities, in London, keeping a “buy” stance on the stock. Cost growth rising faster than income growth, known as “negative jaws”, has dogged Standard Chartered for the past year, as it battles rivals such as HSBC Holdings to keep and retain talent in key fastgrowing Asian markets such as China and Hong Kong. Analysts had expected costs to outpace income again in the first half and be broadly flat for the full year. Standard Chartered’s finance director, Richard Meddings, said the
bank had cut 1,300 staff in the first five months of the year, after adding 7,000 staff last year, to give it 85,000 employees. Investment and hiring will pick up in the second half, he said, resulting in a net increase in staff for the full year in line with previous guidance of a 1,000 rise or slightly fewer. “We have a relatively high attrition rate, consistent with the financial services industry, so when people leave us we are able to manage the pace at which we rehire,” Mr Meddings said. “We will accelerate investment in the second half,” he added, aiming to keep cost growth in line with income growth for the year. Mr Meddings said the Londonheadquartered bank, which makes over four-fifths of its profit in Asia and other emerging markets, would keep its capital level “above the fray” of minimum global standards, and remained a net provider of liquidity to the interbank market. But it has withdrawn liquidity provided to eurozone banks in the last 18 months as the region's problems have deepened, and directed the funds back to Asian clients. Mr Meddings said a UK bank levy was likely to cost £120m this year and the bank assumed a £60m cost in the first half, even though it was unlikely to account for the levy until later in the year. A strong performance in Hong Kong, Singapore, Malaysia, China and Indonesia helped offset a weaker
Closures beckon at carpet specialist FLOOR coverings specialist Carpetright has reported a 70% slide in full-year profits and warned it will close more stores in a bid to weather the consumer downturn. Profits reduced to £6.6m, after householders were put off making major purchases, and also found it harder to obtain mortgages in order to move home. Sales in the UK and Ireland fell nearly 5%, to £404.5m. The group finished the period with 559 stores in the UK and Ireland after closing a net figure of 27, and said that, with leases on 94 stores due to expire in the next five years, it expected to further reduce the size of its estate. Lord Harris, Carpetright’s chairman and chief executive, and a veteran of the retail sector with more than 50 years’ experience, described trading conditions as “very challenging”. He axed the company’s dividend to shareholders, and added: “Looking forward, I see no respite from the challenging environment over the next year.” The company said the review of its store estate would reflect the trend for consumers to conduct research online before making their purchase. It added: “The upshot of this change is that customers appear to be prepared to travel further to make a single physical store visit to complete their purchase.”
Dirk Kuyt in action last season – in his Standard Chartered-sponsored shirt Picture: ANDREW TEEBAY/ at060311alfc-2 showing from India – which was its biggest market last year – and Africa, the bank said. Standard Chartered is expected to make a profit of £4.3bn this year, up 13% from £3.8bn last year, according to the average of 22 analysts polled by Thomson Reuters. That would mark a ninth
successive year of record profit. Its London-listed shares are down 9% this year, valuing the bank at about £37bn. Its shares have fallen from its alltime high of £19.75, in November, on worries about rising costs, and as its shares trade a significant premium to most rivals.
Telecoms giant’s profit warning
DFS upbeat
CABLE & Wireless Worldwide, the company that provides high-speed telephone services to the Government and companies such as Tesco, has replaced its chief executive after a third profits warning in a year.
SOFA giant DFS shrugged off the “exceptionally demanding” conditions on the high street by announcing it had bought eight new stores. The group, which has 80 stores, said sales excluding VAT were down 0.7% to £486m in the nine months to April 30, but said underlying profits rose to £56.2m.
Chairman John Pluthero has taken over from Jim Marsh, after sales slowed in the first ten weeks of its financial year, and prompted the company to halve its planned 2012 dividend. Shares dropped 15% to their
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lowest level since the group demerged from the Caribbean operations of Cable & Wireless last year. Mr Pluthero, one of the architects of the demerger, was previously chief executive but became chairman in March last year after the split.
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St Paul’s Square has been a catalyst for commercial development Agency – is getting ready to launch the final phase of development at St Paul’s Square, No 4. We have observed how the last 10 years of development have helped to create a central business district which has transformed Liverpool and had a major impact on how the city now does business. In the last decade, Liverpool has re-established itself as an international city of repute. A city on the up, it has transformed itself into one of the UK’s leading business destinations. Liverpool’s central business district – created to put Liverpool on a
view point
by Darran Lawless, project director, Muse Developments
ENGLISH Cities Fund (ECf) – a joint venture between Muse Developments, Legal and General Property and the Homes and Communities
Law firm advises on Lancs deal LIVERPOOL law firm Brabners Chaffe Street has advised Seddon Developments on the purchase of Plot 3,000, a 4.12-acre development site at Matrix Park, Chorley, for an undisclosed sum. Seddon has acquired the former BAE site from Harrow Estates, part of the Redrow Group. The firm intends to apply for consent for a 75,000 sq ft commercial development. Matthew Dobson, of Brabners, who advised on the deal, said: “Despite the tough market conditions, Seddon Developments continues to show an appetite for development sites, spurred on by the success of their scheme at Axis Point, Heywood. “It is continuing to buck the trend, and we understand it intends to carry out some speculative development on site in early 2012.” Daniel Burn, of Jones Lang LaSalle, advised Harrow Estates.
par with cities such as Manchester and Leeds – is located to the east of the city centre, with St Paul’s Square at its heart. There was a period of rapid decline, post-1970s, in which the area provided little more than cheap car parking. ECf ’s St Paul’s scheme has created a catalyst of development to enable this district to become a professional hub where people work, live and play. The vision for St Paul’s was to provide a family of four buildings, all
sympathetic with the glories of Liverpool’s architectural past, creating a district that would put Liverpool on a level playing field and help to re-invent it as a hard-working, vibrant city, where people want to do business. ECf has certainly delivered its promise. St Paul’s Square has enabled buildings of international quality – and of the highest environmental standards (BREEAM “Excellent”) – to be developed, which in turn have provided an
‘A place where people are keen to invest’
environment where occupiers and investors alike are keen to locate and invest. It has encouraged the reconfiguration of other buildings, provides a gateway to the next phase of development in Liverpool – Pall Mall – and since its inception has encouraged further development within the area. This has included the refurbishment of the former Littlewoods building, now called The Plaza. It has also included other users/occupiers locating on Old Hall Street, such as the Radisson Hotel and Beetham Tower.
The former Department of Work & Pensions block, undergoing conversion
Anfield project to provide new office and workspace
BUSINESS to BUSINESS
by Neil Hodgson
LDP BUSINESS STAFF
Commercial Property
For Sale
On behalf of Joint LPA Receivers
Residential Development, Quarry Gardens, Huyton, Liverpool • New build ‘gated’ residential development • Mix of purpose-built apartments, town houses and detached houses, 35 units in total • Vacant possession available • Site area 0.53 hectares (1.31 acres) • Freehold All enquiries: Chris Walker chris.walker@gva.co.uk Sophie Magee sophie.magee@gva.co.uk
0161 834 7187
Commercial Premises
TO LET
LIVERPOOL INDUSTRIAL/ WORKSHOP UNITS RENTS FROM
£100 PER WEEK
07850 204481
INDUSTRIAL UNITS To Let. South L’pool 500 to 4000 sqft, monthly tenancy, competitive rents. From £50pw Tel: 0151 427 5051 BURTON BELL L17 Retail Shop with storerooms with flat over. Large yard & warehouse, freehold, vacant £385,000. Tel: 0151 427 9653
COMMERCIAL UNIT/WORKSHOP Rainhill to let £65pw, £750sq ft 0161 980 1912 UNITS TO LET 5,000−15,000 sqft. Initial Rent free period. 0151 486 0004
neil.hodgson@liverpool.com
UP TO 30,000 sq ft of office and workspace is to be created in Anfield. A scheme at Anfield Business Centre aims to attract fledgling and existing small businesses, including gaming and media operators, to a five-storey development in Breckfield Road South. It involves the conversion of a former Department of Work and Pensions office block into new workspace, as part of a £500,000 refurbishment, including £208,569 of backing by small business support agency Stepclever. Anfield Business Centre manager, Chris Dunford, said: “We plan to offer new, modern, serviced offices over 30,000 sq ft, aimed at attracting new business start-ups and established businesses to the area, thus creating new local employment opportunities. “We will be introducing services such as hot-desking, reception services, a coffee bistro, and also a Dark
Fibre internet link in collaboration with AIMES Grid Services, with a view to attracting creative companies to the business centre, at affordable easy-in easy-out agreements.” He added: “Anfield, as is often reported, is a deprived area. We genuinely believe our business centre will bring a real buzz and affluence to the area, in line with other regeneration schemes already under way. “The main thing is that we want to help new start-up and embryonic businesses by offering affordable rates with the provision of internet and parking, too. “There is nothing in the area, and we feel we can bring in much-needed new employment opportunities through people looking to give business a go themselves, local people with business acumen and talent.” Five tenants have already taken space in the centre, which will open its doors to further interest this Friday. A new reception area and ground floor refurbishment is under way, and further floors will be refurbished, providing space for more tenants.
Liverpool property developer Jon Elster is behind the scheme, which will be able to offer up to 300 work stations, providing space for a range of tenants from one-man operations to areas able to support up to 50 staff. Mr Dunford said: “We want business start-ups and we are talking to Liverpool John Moores University to help graduates who are looking to set their own businesses up.” Talks are also taking place with Elect, which can help establish social enterprises. Mr Dunford added: “The main thing is we are affordable and just five minutes from town.” He said the project can bring new hope to the area which lost out on almost £10m of Northwest Development Agency regeneration funding, linked to plans for a new stadium by Liverpool FC’s former owners. He said: “This could help fill the void to help regenerate the Anfield area. “The area is a bit run down, and we want to bring in a new lease of life. “We feel we can bring in muchneeded employment opportunities.”
13
Wednesday, June 29, 2011
LDP business .co.uk
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
Park ‘enriched’ by new tenants by Tony McDonough
LDP DEPUTY BUSINESS EDITOR
tony.mcdonough@liverpool.com
LIVERPOOL Science Park has welcomed 18 companies to its innovation campus since the beginning of the year. The tenants, which range from well-established small firms to graduate start-ups, span a broad range of knowledge-based sectors including the creative industries, life sciences, ICT and software development. They include web technology agency Instinctive Creations, venture capital firm SPARK Impact, which manages the £25m North West Fund for Biomedical, PR and marketing agency Active Profile and market development company Lead Creators. Five businesses have taken space in the park’s recently-opened Graduate Enterprise Centre (GEC), a facility in Liverpool for graduates starting out in business. The arrival of creative company, Shuttle Creative, design agency Edward Ridding Design, Richard Foulkes translation services, Chapel & Stone Estates and ALFA Imports brings the total number of companies in the GEC to 10. Other companies to recently move into the park are web solutions company Yooka, retail internet specialists CommsPort, insurance and financial services specialists CBG Group, animation specialists Image Venture Media-
works, education consulting company New Century Education Centre, TCL Telecoms and Impact Digital Solutions. Liverpool Science Park’s chief executive, Chris Musson, said: “The park was created as a vehicle to nurture and support the city region’s commercial knowledge economy and to attract businesses into the city, and we are delighted to welcome this flurry of new companies into our community. “We are constantly evolving our offering to cater for the needs of growing 21st-century businesses, be that through facilities such as our GEC and starter pods, through to our highprofile events programmes and industry-specific workshops. “Not only are we attracting a broad range of industries, but it is particularly heartening to see start-ups and established firms organically forging new partnerships and exploring potential business opportunities among themselves. “The arrival of these 18 organisations further enriches the Science Park community, and we wish them every success here.” The lettings bring the total number of organisations based within the Park’s two innovation centres to 57. Work is due to start in four weeks on the creation of 5,000 sq ft of commercial laboratories within Liverpool Science Park’s ic2 building on Brownlow Hill, with work expected to the completed by September.
location
Auction success hailed
Liverpool Science Park chief executive, Chris Musson – we are constantly evolving our offering Picture: JAMES MALONEY
AUCTIONEER Eddisons has reported record proceeds from its latest North West sale. The company says it generated £6.7m from the Manchester sale as 83 of 107 lots were sold. Among the successful lots was a fully tenanted freehold retail property in Lime Street, Liverpool. The building, which generates an annual income of £20,000, sold for £180,000 – a return of over 11%. Andrew Brown, of Eddisons, said: “In terms of total proceeds, this is the best sale we have ever held in the North West. “The sale room was packed to the rafters with around 400 people. We had people queuing out of the door, I have never seen anything quite like it. “Buyers are generally looking for rental returns of around the 10% mark.”
Shopping centre work begins WORK is underway on an extension to the Port Arcades shopping centre, in Ellesmere Port. The centre has also signed up national fashion and home wares chain, Store Twenty One, for space in the scheme. The extension is due for completion by autumn this year, and centre manager Les Lyon said: “This is great news for our shoppers. The variety and quality of shops already
established in the centre compare very favourably, and from autumn 2011 our offer will be even better.” In a statement, Store Twenty One added: “At our store, we aim to offer stylish fashions and essential wear for our customers at value for money prices without compromising on quality. “Our key focus is to deliver great products and great service to our customers.”
£109 per person
Isle of Man
Breaks
The Port Arcades
Includes:
Return se crossing asaa foot passeng er
MAKEYOUR OFFICE MOVE NOW!
PLU 2 NIGHTSS B &
B at the 4-Star Palace HOTE L CAS on Douglas INO Promenade
To book call Steam Packet Holidays on 01624 645777 WWW.STEAMPACKETHOLIDAYS.COM
Valid until 31st July 2011, terms and conditions apply. Prices are based on two adults sharing a twin/double room. Offers are subject to availability and cannot be combined with any other offer.
OFFICES@DOWNING.COM
14
Wednesday, June 29, 2011
LDP business .co.uk Aerospace & Defence
31712 25138 Forgn & C
Index 3240.93 ▲ 31.49 10112 Avon Rbbr
324
315
-1
36978 29434 BAE Systems 30878
+312
61312
-212
73612 51958 Chemring
31238
+178
32334 21314 Hend Smllr Cos 30918
+218
37238 27418 Law Debenture 365 252 528
23978xd +178
18614 Scot Am
+412
507
40978 Witan
24758 19214 Cobham
208
+114
Fixed Line Telecoms
38078
26134
Meggitt
36838
+634
Index 2346.14 ▼ 62.28
665
535
Rolls-Royce
613 xd +612
16718 11114 Senior
16212
-58
Automobiles & Parts Index 5148.42 ▲ 102.87 23718 10914 GKN
22014
3712
Cble&W Comm 3818 xd
-138
90
45
Cble&W Wwide 45 xd
-714
75 xd
+34
242
+438
87512 61012 Bco Santander 686
344
Barclays
+1012
73078 59614 HSBC
60814xd
+2
292
395
32558xd -112
31714 Sainsbury
44058 37712 Tesco 112
58
Thorntons
58
+18
Food Producers
+34
Index 5301.17 ▼ 9.73
5218 3518 Ryl Scotland
3612
+112
1959 1519 Stan Chart
1581
+41
Beverages
518
36412 Britvic
865
1313
-1
39078xd +12
1301 1033 Diageo
1259
-11
217612
+18
3518 16 656
Croda Elementis
61
2119 1460 Johnsn Mat
167
1899xd +18
1418 88612 Kier Group Low Bonar
6512 35
-38
21312
-312
128478 +1534
153238 105038 CRH
12412 7934 Marshalls
1326
+3
+18
1988
+2
Forestry & Paper
36758 Mondi
600
+10
Index 5619.01 ▲ 92.49
88812 664
27078xd +278
Close Bros
739
990
544
43612
1033 72812 Provident
93312
1257 76212 Rathbone 1922 1154 Schroders
742
53712 Smith Nph
74
Aga Rngmstr 10912
70
Barratt Dev
11134
+114
Bellway
723 xd
+21
75312 511
12412 McBride
13812
-14 +71
122
+134
4314 2214 Taylor Wimpey 3678
+14
9712
Index 7132.81 ▲ 72.88
-7
85312 53812 Charter
615
+41
39334
378
19214
49058
+34
44858 29578 Intl Power
31078
+234
1386
-5
616
1258 478
Coral Prod
1138
6
318
Cosalt
318
400
29038 Rexam
24612 118
Smith DS
1429 1043 Smiths Gp
Electronic & Electrical
-612
37438
+214
244
-212
1149
+42
705
Domino Ptg
440
333
17912 Morgn Cru
920
27014
377
153
Oxford Inst Volex Gp
660
+9
200
-18
28712xd +218 910 336
+13 +614
Equity Inv Instruments Index 5993.20 ▲ 18.19 385
29312 Alliance
2514 1214 Ashley L
45
31114 221
Brown (N) Gp 264 Debenhams
38838
34814 Halfords
+12
10412
+12
295 36
Industrial Transportation Index 2586.19 ▲ 13.36 BBA Aviation 21018
42278
16034xd +12
414
40234
+434
920 xd
-50
13238xd
28718 19812 Kingfisher
26958
-14
70512
+18
29214
+414
Standard Life 20134
+14
Media
555
Candover Inv 56412
-314
42712 32714 M & S
36878xd +78
849
172
Dunedin IncGth 21614
+112
62712 38112 Mothercare
38812xd -218
59412 433
+214
2326 1868 Next
2276xd
9312 4814 ITV
6712 1141
49214 37214 Edin Invst
46678xd
High
96 1812 28712 1251 92 35714
Low
312 AEA Technology 241 Albany Inv Tst AMEC
2012 Anglesey Mining 22934 Balfour Beatty
3912
2914 Beale
60112
501 Compass Gp
1258
2885 1724 Signet Jwlrs
2820
+65
1175 864
523
48734
+14
59012 49014 Reed Elsevier 546
Price
478 Coral Prod
7234 3 34
Var 5Day
-138 + 18
26812 xd 1048 xd 51 30034 xd
-1 -1 -38
-214 - 14
High
126212 479
-112
1005
-60
14212
-2
36
Pearson
Low
98212 Dee Valley 32214 easyJet 72312 JD Sports Fashion 1112
JJB Sports
1534 Johnson Serv 39212 Nichols
-512
578
3614
- 34
135
8912 NWF
60112
+412 +1012
50
1138
1257
2957 1303
+20
Antofagasta
263112 168412 BHP Billiton
234212 +2912
1682 950
1398
Fresnillo
+23
53118 46658 Glencore Intl
48638 +1034
1671 965
1300
+36
1415
+20
6655 4425 Randgold Res 5055
+55
Kazakhmys
4712 288012 Rio Tinto
433712 +6912
5514 3234 UK Coal
3714
Price
+8
35234
28
1934
920 xd 1734 3358
543
+12 -134
+11
+218
Oil & Gas Producers
156412 1002 BG
130412
509
44312xd +312
31878 BP
49314 366
Cairn Energy
30612 Premier Oil
395
+1
+1138
42858
-158
2336 1554 Ryl D Shell B 2143xd+1612 1493 99112 Tullow Oil
1220
+2
Oil Equipment & Services
540
1048xd
Personal Goods
-69
Tobacco
+478
Software & Comp Servs
123
Kewill
85
14714 10134 Logica 302
22234 Sage
42 5514
2514 Telme Gp 3234 UK Coal Ultima
35234
41258 31114 FirstGroup
338
1592 1042 Go-Ahead Gp 1565 50512 39214 Greene King 360
240
285
50512
100
-134
129
-34
28234
+114
10112xd +114
+78
335
20814 Restaurant Gp 29458
+234
251
16034 Stagecoach
+212
1935 1346 Aggreko
334
Centrica
126212 98212
Dee Valley
121712
63212 485
National Grid 595 xd Pennon Gp
Utd Utils
59212xd
AIM Index 834.93 ▲ 3.56
+25
51912 36014 Berendsen
499
+278
783
76012xd -112
13
4
158
1
Crimson Tide 138
214
112
Dawson Intl
178
838
478
Eckoh
734
79412 63512 Capita
711
95212 54912 De La Rue
74312
-112 -9
29478 20534 Electrocmps
26334xd +278
819
578
764 xd
+12
291
23734 G4S
27234
-114
Experian
API Gp
2834
Armour Gp
414
14212 1112 JJB Sports 36
+5
1734
300
435
+5
18312 Interserve
30912
-1 2
86
3034 Man Brnze
4734
+34
550
37114 Menzies J
48812xd-1212
12
4
Metalrax
1014
+18
34634 16812 Northgate
305
+734
550
355
Portmeirion P 495
30834 21014 Prem Farnell
23514
+434
114
9114
-3 8
Smiths News 8512
-1
1914 Speedy Hire Travis & P
122 13258
2934 xd
-14
965
+1
1955
+25
Redhall Gp
5912 1534 Scapa Gp 142
99
6312
+5
5912
+3
Var 5Day
+218
2934 xd
-14
3712
-14
40
+218 +14 - 12 +2 -114
3714
- 34
+1
-1
2
1 38
2034 Park Gp
4612
+ 14
-2
2000
1688 Unilever
1988
+2
+30
76212 Rathbone
1070
-7
-22
63112
522 Utd Utils
59212 xd
+5
-3
-
1923.00
0.01
Sth East Asia
-
737.70
0.01
GARTMORE FUND MANAGERS
108
7938 67
Uniq
7634
685
Young A
640 xd
-3 4 -20
Index-Linked Acc
-518.87
546.18
-
International Acc
-981.13
1032.77
-
Pacific Acc
-250.20
263.37
-
Property Bonds
-2008.50 2092.20
-
HSBC INVESTMENT FUNDS (UK) -
Balanced
Currency
Tourist
Buy
Sell
dollars
1.45
1.520
1.525
Gilt & FI
-
Gilt & Fixed
1014.60
3.97
-
56.32 4.50
448.50
-309.54
2.82
321.93 1.10
European
-
804.30
0.70
Far East
-
540.20
1.80 3.30
Inc & Gwth
-
201.40
International
-
418.20
0.40
North Amer Acc
-
465.50
0.10
-
215.55
0.39
FUNDS Low Funds
Price
Var
Consols
£90932
£761132 Cons 4% .................£7734 £50 Cons 212% ............ £54332
+2732
Conversions
£8134
£69 Cnv 312%.................£7212
£61
-132
£50 Tr 212% ................. £531516
£11614 £1071516 Tr 9% 12............. £1071516
1.50
1.572
1.574
7.93
8.310
8.320
£10718
£1151116
£103 Tr 5% 12.................. £103
-332
Tr 8%
13............. £1151116
-316
Tr 5%
14............. £1111332
-14
1.07
1.114
1.115
£121516
122.67
129.430
129.530
£114332
£109532
1.84
1.974
1.979
£11158
£105732
krone
8.32
8.694
8.695
Poland
zlotys
3.93
4.466
4.474
Sweden
krona
9.85
10.309
10.319
Switzerland
francs
1.27
1.329
1.329
Norway
-
Capital
krone
dollars
129.60
- 53.91
UK Equity Inc A
dollars
yen
3.20
225.20 3.07
HENDERSON HORIZON FUND
Denmark
New Zealand
-
1.02
259.30 3.17
64.20
-225.20
Monthly Inc
Canada
Japan
104.50
-259.30
British
Treasury
Country
euro
169.92 4.35
£1081932 £100516 Cnv 9% 11 .......... £100516
Australia
European Union
-158.87 GUARDIAN
£582732
£ ABROAD
+134
Spec Sits
High
Swallowfield
510
0.10
Sing ASEAN
310
8414 Rentokil
0.53
134.20
In order to give a greater range of Unit Trust information, covering a larger number of trusts, the list of funds changes each day as follows: DAYS PUBLISHED UNIT TRUST MANAGERS A to Com ................................................... Tuesday F to Inv....................................................Wednesday JP to Pru...................................................Thursday Roy to T .........................................................Friday
1534 Johnson Serv 3358
17312 55
224.60
-
INVESCO FUND MANAGERS
452
34
Hyder Cons
+14
+1 8
3714 914
-
Jpan Spec Sits
HILL SAMUEL UNIT TST MGRS -12
1448xd +33
+218
Bunzl
Japan
Sterling Bd Unit Tst +34
680
1853
658
4.40
European Smllr Cos A -
160
Ashtead Gp
20778 77
198.20
1590xd +17
32438
63112 522
AEA Tech
-358
Index 4626.32 ▲ 20.23
Index 4457.99 ▲ 27.80
-
+258
-1 4
546
Income Plus
3.99
14958
680
1.75
Pratical Inv
9434 Rank Gp
29234
0.32
311.20
-13
153
34618
1774.00
1.08
-1 8
-7
-
204.52
Utilities +214
American Gwth & Inc
893.97
+434
1887 1361 Whitbread
-
-
14734
22234
593.90
-
21278 Intl Cons Airlns 25014
25014
-
Euro Sel Opps
+29
Mitchells&Btlrs 32034
Yield
Income
Intercontl Htls 1257
TUI Travel
Amer Spec Sits
+634
Punch Taverns 72
Offer
Price Gross
-1 2
+9
274
Price
+14
Holidaybreak 299
15214 12234 Ladbrokes
Bid
Terms
FIDELITY INVESTMENT SERVS
+212
Enterprise Inns 6612
12234 66
1517 1216 Severn
12912
78
+412
Support Services
1812 312
Price
Sportech
Compass Gp 60112
32214 easyJet
Index 732.89 ▲ 1.16
▼ 0.53%
3412
479
+22
27178 190
2261 1223 Wolseley
4634
60112 501
2405
30918
1127 709
-234
3153 2037 Carnival
20434 12534 Thomas Cook 12718
+18
1914 Speedy Hire
Index 4722.19 ▲ 47.26
83312xd +612
-414
11778 RSA Insurance
Travel & Leisure
Land Secs
1378
14312
+2 -15
545
35412
9712 Redrow
268212 2030
854
1392 73912 Burberry Gp
Low
274512 2091 Br Am Tob 2231 1784 Imperial Tob
Gt Portland
409
32012 PZ Cussons
Index 30538.81 ▼ 46.33
281
33114 25014 SEGRO
+638
-38
Cancel Fund
-3
42918xd
12012 79
Index 21956.52 ▲ 215.74
34
-934 -1034
-1
89
44214
30738xd -314
+20
-38
589
2919 2251 Daejan Hldgs 2701
36414 23014 Invensys
188238 +1318
139
-50
Brit Land
+1312
Index 3694.88 ▼ 38.63
1645
High
-158
429
BATM
+14
16014 10812 Spirent Comms 14758
361
35314 28718 Big Yellow Gp 30014xd -114 60412
+8
2314 xd
11718 9038 Marston’s
1623
1754 1390 Admiral Grp
+15
+1 8
62
192134 1396 Marsh McL
535
4058
ARM Hldgs
58912
10234 7134 Psion
9038 58
Index 1606.47 ▲ 8.38
Var 5Day
+212
Vernalis
6312 3012 Emblaze
down 6.38
121712
31
1915 1271 Autonomy
+512
+10
130212xd +15
Mobile Telecoms
75612 54212 Inmarsat
44414xd +134
+4
DAILY POST REGIONAL INDEX 1195.82
4414 Adv Medical
80512
849
D Mail Tst
-58
39814 WH Smith
3437 2254 Anglo Amer 1634 761
1251 80512 AMEC 69312 BSkyB
134812 1095 GlaxoSmthKln 50
+712
Index 1958.11
+7412
Index 24369.29 ▲ 223.52
777
303312
Real Estate
Index 4245.54 ▲ 30.45
228
+4
+3
48914 Prudential
24434 173
651
27012
1435 982 3385 280112 AstraZeneca
Index 25013.03 ▲ 434.14
+134
31618 21114 Resolution
777
Br Assets
66012 53012 Edin US Trkr Tst 62912
11914xd -614 74712xd +512
14312 11778 RSA Insurance 13258
+138
14012 105
14814
UTV
Index 8097.52 ▲ 59.20
111
1005 72312 JD Sports
15734 10234 Dunedin Sml
106
+4
Nonlife Insurance
+10
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.
UNIT TRUSTS
Index 750.45 ▲ 9.08
Those securities which have increased in value since the previous close are shown in bold type.
Index 9338.14 ▲ 75.68
-78
2061
47778 30534 Aviva
37638xd +258 -18
F
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
+12
18234 13612 Vodafone Gp 162 xd
2078 1024 Weir Gp
12334 7558 Lgl & Gen
-1134
3005.85 ▲ 0.72%
4114
+712
1914xd +11
-2
24412 15918 Home Retail 23718 Inchcape
99512
-1 +1
FT ALL-SHARE up 21.52
Pharma & Biotechnology
151
+1812
Index 4295.19 ▲ 64.39
69 xd
5781.31 ▼ 0.19%
-238
84612 61412 WPP
Life Insurance
2812 1134 Dixons Retail 1612 525
MS Intl
2314 Renold
1914 xd
7738 53
Fenner
+612
2063 1346 Spirax Srco
Index 1705.21 ▲ 1.74 20178 9834 Laird
34112
4312 Molins
24034 175
General Retailers
Index 3221.70 ▲ 46.26
Bodycote
1112 65712 IMI 116
20 DAY MOVING AVERAGE down 11.16
124
48334 Utd Business 52212
1983 1355 Lonmin
Industrial Engineering
31212 119
49214 35358 Drax Gp
Redrow
STV Group
725
-12
3648 3015 Reckitt Benck 3429
1470
72412 36738 Cooksn Gp
T
Mining
119
1070
Index 3123.49 ▲ 47.98
-4
138
39734 185
General Industrials
66
Index 6667.52 ▲ 121.81
+7
-34
Index 8599.19 ▼ 25.54
636
Household Goods
-10
+58
168
12414 4034 Trinity Mirror
Index 3601.01 ▼ 15.70
+534
6514
W
Jun 28, 2011
Health Care Equip & Serv
+712
London Stk Ex 927
T
Share price (pence)
Dec 28, 2010
139 25418 3i
M
CARPETRIGHT
192
General Financial
340
Jun 20 - Jun 24
FTSE-Rebased
36678xd +18
10814xd
Electricity
1410 1108 Scot&Sthrn
-412
Premier Foods 2558
57012 38014 ICAP
35714 22934 Balfour Beatty 30034xd Costain
-9
74812
2000 1688 Unilever
+2
Index 3704.71 ▼ 7.87
190
Cranswick
-5
-1112
+7
Construction & Materials
265
811
61812
630
1847
Jun 13 - Jun 17
710
570
Index 6462.81 ▲ 107.71
Index 7294.97 ▲ 53.87
May 6 - Jun 10
780
5766.88 ▲ 0.78%
KEY
FTSE-100
5670
640
40918 Tate Lyle
Chemicals
16934
-412
1080xd
42478 33934 Dairy Crest
2306 1827 SABMiller
1962 971
AB Foods
47712 Carrs Mill
90712 735
Index 9632.66 ▼ 10.13 1395 1035 Barr (AG)
1182 940
+18
39538xd -118
1078
1058 Ireland
5745
850
30814 26234 Morrison W
7758 4338 Lloyds Banking4418
78
20-Day Moving Average
SPOTLIGHT
Index 4636.21 ▼ 5.44
Index 4256.20 ▲ 51.88
FT-SE 100 INDEX up 44.54
5970 5895
Tech Hardware & Equip
Closing Indices
FTSE 100 INDEX
Food & Drug Retailers
+438
Banks
23714
-314
6138
7812 4312 KCOM
Keep track of all the major share moves of the day with our live FTSE ticker at www.ldpbusiness.co.uk
5820
19458
20178 12614 BT Gp
LondonStockMarketatClose
Tr
734%
12-15........£10614
£30414 Tr 212% IL 16 ....... £331516
-316
£142316 £1322132 Tr 834% 17 .............£13618
-1116
£147132 £1332732 Tr 8% 21.................. £141
-1
£334116
Turkey
new lira
2.47
2.628
2.638
War
United States
dollars
1.52
1.601
1.602
£8334
£6712 War Ln 312%............£7414
-5732
Last night, the pound was worth: $1.6015 (up 0.0045)........ 1.1148 euros (down 0.0036) ........122.67 yen (down 0.03) ....... Its trade weighted index was 78.00 (down 0.30) Metals in $ per troy ounce: Gold 1499 (up 1) ............................Silver 33.96 (down 0.05)............................Platinum 1692 (up 13) ........................... UK base lending rate 0.5%
15
Wednesday, June 29, 2011
LDP business .co.uk London market THE London market posted strong gains yesterday, as hopes rose that a solution might be found to Greece’s debt problems. The FTSE 100 index added 44.5 points, to 5766.9, with sentiment also boosted by a strong start on Wall Street after better home sales data overshadowed a drop in US consumer sentiment. The improved sentiment over the Greece situation saw some of the heaviest fallers during the market’s recent volatility rebound, with Royal Bank of Scotland up 1.46p, at 36.6p, and commodities trader Glencore International 10.8p higher, at 486.4p. Cable & Wireless Worldwide topped the fallers board in the FTSE 250 Index by some distance, after it issued another gloomy update on trading. Floor coverings firm Carpetright slashed its dividend after reporting a 70% drop in full-year profits.Shares fell 22.5p to 667.5p. Other retailers on the back foot included Halfords, which dropped 11.7p to 388.4p, while JD Sports Fashion eased 50p to 920p. Thorntons was another retailer in the spotlight, after it announced plans to exit 120 stores, and said it had put another 60 outlets at risk of closure. Shares were 4.5p lower at 58p, a drop of almost 5%. The biggest Footsie risers were Royal Bank of Scotland, up 1.46p at 36.55p, Smiths Group, ahead 42p at 1149p, Vedanta, up 67p at 1972p, and Cairn Energy, ahead 11.4p, at 395p. The biggest Footsie fallers were Tate & Lyle, down 11.5p at 618.5p, BT, off 3.3p at 194.6p, Vodafone, down 1.75p at 162.05p, and Diageo, off 11p, at 1256.3p.
LIVERPOOL’S INVESTMENT SPECIALISTS
IN ASSOCIATION WITH
market comment
Holdersof Greekdebt mayprefera shortback andsides ONCE again, our patience is being severely tested by the inability of the eurozone to deal with the current debt problems and internal contradictions of the single currency. For the sceptics who had always doubted the sustainability of a currency union without a fiscal union (or the achievability of a fiscal union in a region of such ancient cultural diversity) the road ahead is clear – the icipants will enjoy the benefits of a euro will not survive in its current stronger union. form. The problem, as the joke goes, is The believers in the single currency that if I am trying to get to that posproject (and they are not limited to the ition, ideally I wouldn’t start from heads of the eurozone countries) view here. this crisis as an opportunity In the meantime, many are to strengthen the union with perplexed by the position of the creation of mechanisms to the European Central Bank, deal with crisis resolution, which is fighting tooth and increasing bank capital standnail against a restructuring of ards, intensifying bank superGreek debt, when its burden vision and by writing-in more appears completely unsustaindefinitive language in future able. Email us with government debt instruments If it is obvious to all in the your views at to ensure that the impact of financial markets that a Greek letters@ shocks is shared between dailypost.co.uk, default is inevitable, why do central governments and or write to us European bankers insist that PO Box 48, Old private investors. it is not? Hall Street, Should the union survive, Our guess is that it is all Liverpool these features are certainly about timing. Although IreL69 3EB crucial to preventing a repeat land and Portugal have signed of the present situation – up in principle to taking whose genesis was in fixed income European aid at the expense of ausinvestors assuming that Greek credit terity packages, they are not yet fully was as good that of Germany and tied in through legislation. therefore over-lending at the wrong Offering to restructure Greek debt price. on favourable terms today (frequently In truth, these positions are not called giving the debt a “haircut”) entirely contradictory. would only invite those next in line to It is possible both that the eurozone ask for the same deal. will not survive in its current form, This would quickly lead to contagand also that the remaining partion to Spain – which would be a prob-
What do you think?
Riot police in position outside the Greek Parliament yesterday Picture: DIMITRI MESSINIS
lem of a different magnitude. However, we expect Ireland and Portugal to ratify their terms of engagement with the IMF, ECB, Germans and others. They may be induced to so when the punishment for Greek misbehaviour becomes starkly evident in the form of a painful sudden structural change in the economy to ensure that the country does not find itself in the same situation again in the future. This, of course, assumes the Greek Prime Minister Mr Papandreou gets his package of spending cut measures through the Greek Parliament. Then it may be time
for the overdue trip to the barbers for Greek debt holders. Prolonged uncertainty is also becoming part of the problem, as the various parties to the talks seek to protect their long-term interests. Our view is that we are close to a period of maximum uncertainty – with the resolution of that uncertainty (even if it is a haircut for Greek bondholders) more likely to be a relief than an unpleasant shock for markets. John Haynes, Head of Research, Investec
For the latest business news, log on to www.ldpbusiness.co.uk
business diary Tuesday, July 5 The next 1stuesday breakfast event is at 8am at The Heath Restaurant, The Heath Business and Technical Park. Neil Lancaster, of SOG, will talk about effective marketing. It is £6.50+VAT for Halton Chamber members. To
book, contact Nicola Holland on 01928 516142 or email nicolah@ haltonchamber.com. Tuesday, July 5 The DSG Business Owners Club will be focusing on social media at its quarterly meeting. Guest speaker Tim Roberts, managing
director of I-COM online marketing agency, will address business owners and managers at the free event, giving them an outline of the dos and don’ts of social media for their business. It is at Goodison Park from 7.45am. To book, contact Sue Gallagher on 0151 243 1200 or email spg@dsg.uk.com Wednesday, July 6
The Windmills interactive breakfast session on implementing organisational change will take place from 8am-11.30am at FACT, Wood Street. The seminar will be led by Dr Peter Hawkins and Helen Wakefield. The event will give attendees an insight into some new creative and effective approaches to change
management. To book for the free event, email lynne@windmillsonline.co.uk or call 0844 249 1990. Wednesday, July 6 Knowsley Chamber of Commerce’s After Hours networking event is being hosted by O’Connell & Squelch, Stanley Grange, L34 4AR. Networking will take place over canapés, cocktails
and drinks. It costs £15+VAT for members and £20+VAT for non-members. For more details, see www.knowsleychamber.org.uk/events.aspx Wednesday, July 13 Phil Blything, from Glow New Media, will be outlining a range of methods that can be used to increase traffic to websites, including how to raise a site’s
search ranking and how to use social media, as well as advice about the content of websites. The Knowsley Chamber event is being held at The Village Hotel, Whiston. It costs £12+VAT for members and £18+VAT for non-members. To book, visit www.knowsley chamber.org.uk/ events.aspx
16
Wednesday, June 29, 2011
LDP business .co.uk trading gossip ■
THE chief executive of City Central business improvement district Ged Gibbons, below, has returned from one of the toughest challenges of his career. This is a man who in his younger days ran 25 marathons (albeit not consecutively) and, in a previous job, successfully introduced Continental fare to the pastry-loving town of St Helens. He was one of a mad dozen walkers to complete a six peaks in six days challenge. Pen y Gent, Wernside and Ingleborough were knocked off inside nine hours on Saturday before the group ascended Ben Nevis in glorious sunshine on Monday. Driving rain and Arctic weather meant climbing Scafell Pike proved to be a tough Tuesday. Day six, and Snowdon,
IN ASSOCIATION WITH
LIVERPOOL’S INVESTMENT SPECIALISTS
the back page
Plant gears up for the Evoque’s big launch
working day
Richard Else is the operations director of Jaguar Land Rover (JLR) Halewood. The Range Rover Evoque, the greenest vehicle the company has made, launches next week 5am: Wake up to my iPhone alarm and get ready for work – coffee and a slice of toast 5.45am: Leave the apartment quietly and climb into the new Range Rover Evoque, which I am testing prior to launch.
brought the total climb to more than 21,000 ft, which was greeted with a celebratory quaff of Champagne at the summit. Ged is raising funds for the Ronald McDonald Appeal – visit www.justgiving.com/ Ged-Gibbons to donate. After all, if he can climb six peaks, he can certainly come running after the people who have deep pockets but short arms.
■
NEWSPAPERS at the weekend were full of reports that Childwall production company Lime Pictures was in talks to create a The Only Way Is Essex clothing range. The ITV2 show – which, for the uninitiated, follows the lives and loves of a gaudy group of designer-clad partygoers in Essex – has found a cult following. Thankfully, a deal is not believed to be close. After all, with our public services under such pressure at the moment, Trading Gossip doesn’t know where the funding could be found to make sure that the required investment could be made in the fashion police to address the problem.
6am: Arrive in plant and scan through the diary, follow-up on emails, set my priorities for the day and review any issues that have come up with the night shift. Then off to three back-to-back meetings. 7.45am: Operations committee start-up meeting with the area managers. This takes place in the middle of our busy Trim & Final area. We review the last 24 hours’ performance and challenges for the next shift. 8.15am: Weekly business review – we always start with good news – anything to celebrate. Today we hear that our Halewood-built Freelander2 has achieved sales success in China. 9am: Management forum – this week car parking is back on the agenda, as space is tight now. We have more than doubled the workforce in less than six months and at shift changeover times there is a bottleneck which we are working on by encouraging car-share schemes. 9.30am: Meeting runs over. I have five minutes with Judith, my PA, to go through the schedule for next week. 9.35am: Off to Liverpool city centre in the Evoque. It is a joy to drive and everyone I drive past is staring at the car as usual. As I park the car in the city centre, a lady comes over to talk to me about the car and tells me she's just ordered one. I leave her my business card, so she can arrange to come and visit the plant and see her car being built. 10am: Arrive at the Liverpool City Region LEP shadow board meeting – Lord Heseltine has joined us to listen to the challenges facing the group and give ideas on what we could be doing.
Richard Else, who has worked for JLR for more than 20 years, arrived at Halewood in February I then travel back to Halewood for our third VIP visit this week.
our major partners in the plant, to review their KPI metrics.
1.20pm: Meet and greet the Chinese business minister and Embassy officials (they are running late thanks to a hectic schedule). Our JLR China president, Bob Grace, joins me as we welcome them to the plant. We give them a guided tour through the plant, talking to the workforce as we go through the areas.
3.15pm: Back on schedule, I join my communications officer and meet Josh Rubin, one of our Evoque brand champions. Josh runs Cool Hunting and we sit down in reception to do a video-interview about Evoque for his website.
2.10pm: I’m running a bit late now for the private meeting with DHL, one of
4pm: I now have an hour to myself to do some paperwork, catch up with emails again and walk through plant to capture any feedback from the people on the line.
5pm: The regular wash-up meeting starts. It is an important daily meeting with my senior team to capture the issues of the day. 6pm: I am back at my desk again, sharing a few emails and getting ready to pack away. I don’t have any evening events this week – a rare thing – so it will be nice to get home before 7pm and relax. It is quiet at home at the moment, my wife and son are still living in the Midlands, but will be moving to Liverpool in the summer when our new addition to the family arrives.