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 w w w . l d p b u s i n e s s . c o . u k J a n u a r y 2 0 1 0
Putting the ‘oo’ back in Typhoo Chief executive brews up a revival plan at famous tea firm
● Looking ahead: What’s in store for 2010? ● Bug battlers: Bio firm moves to Daresbury ● Showing ambition: Wirral’s big plans
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INSIDE 4
LDP BUSINESS
17
NEWS
New £100m regeneration fund
EDITOR Bill Gleeson 0151 472 2319
7 BIG FEATURE
bill.gleeson@liverpool.com
What does 2010 hold in store for the Liverpool city region?
DEPUTY BUSINESS EDITOR Tony McDonough 0151 330 4918
15 HOW GREEN IS YOUR BUSINESS?
tony.mcdonough @liverpool.com
Green Lite shows the way
BUSINESS WRITERS Alistair Houghton
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alistair.houghton @liverpool.com
COMMERCIAL PROPERTY
Barry Turnbull
Big guns call for action on carbon
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17 BIG INTERVIEW
Keith Packer, CEO of Typhoo
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barry.turnbull @liverpool.com
Neil Hodgson neil.hodgson @liverpool.com
Alex Turner
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alex.turner@liverpool.com
HEAD OF IMAGES Barrie Mills
PROFESSIONAL SECTORS Graduate recruitment
barrie.mills@liverpool.com
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MARKETING EXECUTIVE Litza Gorman 0151 742 2352
SCIENCE & TECHNOLOGY Bug-battlers move to Daresbury
ADVERTISEMENT DIRECTOR Debbie McGraw
25 ECONOMIC DEVELOPMENT Focus on Wirral
ADVERTISMENT SALES Jackie McMahon 0151 330 5077 Trudie Arlett 0151 472 2476
29 INTERNATIONAL TRADE Elite talks the right language
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PHOTOGRAPHY Trinity Mirror
TRANSPORT
32 EDUCATION
Chester Business School
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PUBLISHED BY Trinity Mirror NW2, PO Box 48, Old Hall Street, Liverpool, L69 3EB.
35 THE LIST
36 RESTAURANT REVIEW
TELEPHONE 0151 227 2000
The Hilton Liverpool
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FAX 0151 330 4942
SOCIAL DIARY
Carolyn Hughes out on the town
COPYRIGHT
LDP Business is printed monthly and distributed with the Liverpool Daily Post. No part of this publication may be reproduced without permission of the publisher.
38 NETWORKER Bill Gleeson
AN IMPORTANT piece of statistical data is published around this time every year. And every year it causes a bit of a stir involving the region’s economic development quangos. The figures are keenly awaited by The Mersey Partnership, Liverpool Vision and their likes up and down the country. That’s because the data in question provides the definitive guide to how the sub-regions of Britain are faring economically. Published by the Office for National Statistics and known as GVA per capita for NUTS area 2, the figures are pored-over by quangocrats desperate to find evidence that their regeneration efforts are paying off. This year’s figures show that
BUSINESS CLUB INQUIRIES 0151 472 2352
EDITOR’S LETTER Merseyside’s output per capita is circa £14,000, while the UK figure is £20,000. The agencies fall over each other in their rush to sell their spin first. This year, they highlighted the nugget that Liverpool is one of the fastest-growing provincial cities in Britain. Economic output in the city rose faster than in Manchester, Leeds and Birmingham. Only Belfast performed better. The quangos overlook the fact that
our sub-region is rooted firmly in the relegation zone of the national league table of economic performance. There are 37 sub-regions and Merseyside is always in the bottom five. We have very similar economic output per head to Middlesbrough and environs. The Highlands and Islands of Scotland, which includes remote places like Ardnamurchan and the Isle of Mull, enjoy higher economic output. How can that be? The few places we beat include Devon and Cornwall and West Wales, which includes the Isle of Anglesey. Similar
sub-regional conurbations such as West Yorkshire, the West Midlands and Greater Manchester are significantly more productive; in some cases, about 20% more. At the other extreme, Inner London is six times more productive, with per capita output in excess of £100,000, reflecting the contribution those nasty bankers we like to lambast make to the nation’s economic well-being. Once we’ve batted away the spin of the quangos, they become defensive and start to rubbish the significance of the statistics they were initially so enthusiastic about.
The big defence cited every year is that the data is old and out of date. True, the figures published this December discloses the position for 2007. That’s because the number crunching involved is so considerable it takes two years to complete. Since the end of 2007, the region has seen the completion of Liverpool One, the opening of the Echo Arena and we have had our year as European Capital of Culture. The economic value of the construction work on the £140m Arena and £1bn Liverpool One projects will have made a big contribution to Liverpool’s relatively strong economic growth rate.
BILL GLEESON 3
NEWS
Steady Eddie earns Eastern Airways accolade
Eddie Smith celebrates his Eastern Airways milestone
FREQUENT flier Eddie Smith, from West Derby, has clocked up more than 10,500 miles since Eastern Airways started its Liverpool link with Southampton this July. The contractor at Fawley oil refinery, in Hampshire, is the most regular weekly passenger on the service, flying the equivalent of a third of the way round the world. Chris Hollidays, Eastern Airways’ chief operating officer, said: “It’s incredible to see the number of journeys Eddie has taken in such
a short space of time. Our cabin crew are used to welcoming regular travellers on board our flights, and we hope Eddie continues to be our number one customer on the route.” Eddie has so far made 42 flights between his home city and Southampton. Humberside-based Eastern Airways has been flying scheduled services for more than 12 years and launched a route to Aberdeen from Liverpool JLA when it became the latest operator to fly from JLA last summer.
£100m fund to boost urban regeneration NEW £100m fund, which will provide a rolling source of finance for urban development now come on stream. The Northwest Urban Investment Fund is the first Joint European Support for Sustainable Investment in City Areas (JESSICA) fund in the country, outside London. The £100m fund has been financed by the European Regional Development Fund (ERDF), which has put in £50m, while the Northwest Regional Development Agency (NWDA) has match-funded the sum. It will be managed by the European Investment Bank, which will be able to add to the holding fund in the future. Robert Hough, chairman of the NWDA, said: “This initiative is an opportunity for the region to put a mechanism in place that will ensure we can prolong the benefit of our ERDF Programme. “The fund will allow us to invest in revolving funding, in addition to the normal single use grants. “This investment will be in the form of equity, loan or guarantee. The returns from these investments can be re-used on other projects again, and again, extending the life of our European funding and helping us to maintain a level of physical regeneration during the challenging economic climate.” Pawel Samecki, European Commissioner for regional policy, said: “The fund will provide the North-West with a revolving source of investment that pays for itself. “When loans are repaid, the fund is recycled and then re-invested. This means the money goes much further than a one-off grant, and will continue to enhance the competitiveness of the regional economy for years to come.”
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Pawel Samecki, European Commissioner for regional policy – this fund will provide the NW with a revolving source of investment that pays for itself
GM Europe president Nick Reilly – this is not a broken promise; it is a pledge to do something right
Vauxhall decision in New Year
THE new European boss of Vauxhall parent General Motors says final decisions about its restructuring plan may not be made until the New Year. Last month, GM abandoned plans to sell its European businesses, including the Vauxhall plant, at Ellesmere Port, which employs more than 2,000 people. GM had planned to sell the business and both potential buyers had warned there could be hundreds of jobs lost in Ellesmere Port. But GM has now said that the Cheshire plant will escape the cuts, which will instead be largely made in Germany and Belgium. It has appointed Nick Reilly, a former plant director at Ellesmere Port, as president of GM Europe. He had already been leading GM’s restructuring on
an acting basis. He said: “While it is indeed exciting to see that things are coming together, bear in mind this is going to be one of the largest, most complex industrial reorganisations in European manufacturing in years. “It will affect thousands of people and their families; impact on plants and other stakeholders. “We are determined to do this right. We must do this right. “Although we had hoped to have the new business model finalised in December, it appears that more work needs to be done and further consultations will not be rushed. “I said earlier that we would have a plan in place by year-end. Now it looks like an announcement may slip into January. This is not a broken promise. It is a pledge to do something right.”
ADVERTISING FEATURE
Mums wear the Arty Pants
Crosby businesswomen team up with Stepclever to provide local art and crafts workshops STEPCLEVER is an initiative to generate an enterprise culture in north Liverpool and south Sefton, by offering free business advice and support, as well as grants and other financial assistance for existing enterprises, start-up companies and individuals. Here we look at an exciting venture which is being helped by Stepclever. A LOT has changed in the last year for Crosby mums Faith Withers and Jo Mitchell. Before their paths crossed in 2007, Faith had been a fraud manager for an insurance company, but was made redundant, and Jo was in the process of returning to teaching primary school children after completing a refresher course. Both realised there was a gap in the market, in that there was a lack of children’s art clubs in the region. So they decided to fill that gap. Arty Pants provides art and craft-based workshops for
youngsters and adults across Merseyside. A variety of genres are covered, including photography, murals, textiles, jewellery making and ceramics. The idea for the venture began to blossom in November, 2008, and, by March, 2009, they had secured their first job at a school in Crosby. Originally, the workshops were aimed at two to 16-year-olds and the sessions were held as before and after school clubs, as well as during lesson times. A Stepclever grant worth £10,000 was awarded in April of this year. The grant went towards paying rent, wages, refurbishing the infant area at their headquarters in Bootle, buying office equipment and all the essential art equipment and supplies such as paper, scissors, glue and paints. Twelve months after it was set up, the business, and its audience, has grown. There has been huge demand
Need funding advice for your business? Stepclever is FREE to businesses located in Anfield, Everton, County, Kirkdale, Linacre or Derby.
www.stepclever.co.uk
for workshops and now Arty Pants can be found sharing its artistic expertise in neighbourhood projects and private events. Recently, the team has started to deliver sessions in a community centre to ladies who are making their own Christmas decorations. Faith said: “We couldn’t have done this without help from Stepclever. They have been brilliant throughout the whole process, and helped us right from the beginning when we started this process. “The funding was essential and as a result has helped us reach hundreds of people and get them involved in a fun and useful activity. “We’ve also been able to help local artists, giving them the vital work experience they need to help them make a career in the art industry.” ■ FOR more information about Arty Pants, call 0151 922 2777.
Children enjoying Arty Pants with owners Faith Withers, left, and Jo Mitchell, right
Social Enterprise Challenge! If you’re thinking of starting a social enterprise or community business, and want to make a difference to your local community then this is for you! Stepclever are running two free training programmes, consisting of 6 half-day training sessions over a 3 week period, to take you step by step through the do’s and don’ts of starting up a Social Enterprise. Developed and delivered by Pulse Regeneration with expert advisors and guest speakers, each session will cover the most important aspects of setting up your business and is followed by one to one support from a dedicated mentor. At the end of the programme there will be a Challenge Day where you can pitch your ideas to a panel of experts, with the chance to win either £2000 and free consultancy support or one of 3 £1000 awards to go towards the cost of starting or developing your social enterprise. The first Social Enterprise Challenge Training Programme will commence on Monday 25th January 2010 at 9.30am - 1.30pm, at Vauxhall Community Training & Enterprise Centre. To register for your FREE place, or to find our more information, please contact Ian Ogilvie on 0151 475 7000 or email ian@pulseregeneration.co.uk
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THE BIG FEATURE
Setting course for 2010
The Queen Mary 2 on its maiden visit to Liverpool, in October. Cruise ship tourism will become increasingly important to Liverpool’s economy throughout 2010
▲ ▲
Now that the global recession is over, what does 2010 hold for our region? Here, economists and business leaders offer their predictions for the coming year.
7
THE BIG FEATURE
Can our region close the gap?
Shoppers at Liverpool One. Will the retail sector bring Liverpool more cheer in 2010?
By Peter Stoney, honorary senior fellow at the University of Liverpool Management School LOBAL and UK recovery from recession is under way across the world. Yet the main concern everywhere is whether the recovery is strong enough to withstand the withdrawal of the massive government support measures, both fiscal and monetary, that have been made in response to the banking crisis of late 2008. The problem is that these measures have not revived credit growth in most economies. In the UK, in particular, credit growth to firms has been negative and negligible to households. On the other hand, other financial markets have seen renewed activity, notably equities and corporate bonds, with issues of both increasing sharply. Consequently, savings have bypassed the banks, which have been either unable or unwilling to supply finance on attractive terms. The biggest concern about this pattern of intermediation is that it might leave small and medium-size (SME) firms starved of capital, while big firms that are able to use the equity and bond markets enjoy plenty of it. It is quite likely that, as world recovery gathers pace, oil and other raw material prices will keep on rising. Oil is around $80 a barrel
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currently. This has begun to show up in the UK’s inflation figures, which are getting closer to the 2% target set for the Bank of England’s Monetary Policy Committee. There is little doubt that this will give central banks some cause for a pause in their money creation programmes. The European Central Bank is most likely to be the first to tighten; the US Federal Reserve and the Bank of England may take longer, most probably allowing inflation to exceed the latter’s 2% target temporarily. The first part of the monetary easing programme to be ditched will be money creation via the purchase of financial assets, so-called quantitative easing; interest rates will most probably be raised later. At present, 2010 looks like a year when interest rates will stay low, roughly where they are now, in both the UK and US. The pattern of fiscal retraction will follow closely the path of interest rates. As rates rise, the pressure to cut back public deficits will intensify because the interest cost of debt will start to bite. It is possible also that bond markets will tire of supporting governments that do not retrench sooner rather than later, so that long-term bond yields rise aggressively, forcing retrenchment also.
These fiscal and monetary developments are largely on automatic pilot under the 2% inflation targeting regime. This discipline would change only if governments were to abandon the target, but there is no sign of that happening, precisely because the inflation target was put there by popular demand in the face of past, highly unpopular, periods of inflation. UK GDP growth in 2010 is unlikely to be more than 1.5%, while claimant count unemployment should stay below 2m, which is much less than in some previous recessions. Wage increases look as if they will remain low enough not to cause inflationary concerns. Where does Merseyside fit into this picture in 2010? So far, during this recession, the sub-region’s claimant count rate has stayed consistently around 2% above the UK’s, currently 4%, and its GDP may well have declined at roughly the national rate. The area’s above-average number of people employed in the public sector has insulated Merseyside’s labour market quite well. The best estimate for 2010 is that the sub-region will perform roughly in line with the UK, because that has been the case invariably for the last 20 years.
There have been, however, recent indications that the region may begin to out-perform UK trends. There are several reasons to be optimistic for Merseyside once the global recession ends, despite the possibility of cutbacks in its large public sector, due to government budget constraints. There are ambitious plans afoot to exploit the sub-region’s biggest natural asset – its Port. Cruise liners have started to reappear regularly, a momentum that would increase substantially, should infrastructure be built to support liners commencing and finishing their journeys at the Pier Head, a more attractive terminus than that on offer currently in the industrial docks to the north of the city. Cammell Laird is enjoying a renaissance, and freight trade can be expected to grow, too, with Peel Holdings providing seamless port estate management from the Mersey to Salford Quays via the Manchester Ship Canal, including developments along Wirral’s waterfront, as well as on the Liverpool side of the river. Public investment in roads and rail can enhance Liverpool Port’s trading prospects because better value in transport costs adds extra profitability. That is why the proposed second Mersey bridge crossing at Runcorn, as well as extra
feeder road capacity from Merseyside’s east to its docklands, are excellent projects. Peel is also presiding over a growing John Lennon Airport. The private sector, which needs to expand massively in order to create the wealth Merseyside requires for the wider public good, is starting to show signs of flourishing elsewhere, too. Organisations like The Mersey Partnership, Mersey Maritime, Business Improvement District (BID) and Liverpool Commercial Partnership (LCP) have sprung up where none such existed in the bad old days of 30 years ago. There is a burgeoning business tourism sector, with new hotels supporting – among many other attractions – the highly visible and effective Liverpool Arena and Convention Centre. The property sector could see some signs of a return to activity, too, with house prices starting to rise; and financial services growing in size and influence, with another new organisation, Professional Liverpool, acting as an effective marketing vehicle for them. Merseyside’s prospects for 2010 look better than the national average for both GDP and unemployment. That should help close the gap with the rest of the UK.
THE BIG FEATURE
What business leaders expect in 2010 Ten key players in Merseyside tell us what to expect from the local economy in the New Year JACK STOPFORTH, CHIEF EXECUTIVE OF LIVERPOOL CHAMBER
BRITAIN’S next government must tackle the deepest recession in decades, rein in public spending and stimulate economic growth and jobs. Those are global challenges, but they are reflected in the Liverpool city region. This crisis has its origins in professional and financial services; it was initially seen as a special problem for the City of London and the financial sector. In truth, the consequences for the “real economy” were quickly apparent and what has evolved is an old-fashioned generic recession, with the vulnerable regions suffering more than the well-heeled South. Liverpool city region is suffering but performing better than many cities that were previously more robust. Liverpool Chamber’s Q3 2009 Employers’ Survey suggested further modest improvements in confidence and sentiment in recent months, and this was supported by better-than-feared unemployment figures. However, a broad-based recovery is not assured. Too many businesses still face problems accessing finance, as well as difficult trading conditions. Liverpool’s businesses
bore the brunt of the recession in 2009, but the local public sector faces massive challenges in 2010 as government and local councils face up to fundamental choices on public spending. The national debt needs to be reduced, but there is a risk that government cuts might fall disproportionately on areas of essential infrastructure investment, whether in transport, hospitals or schools. In Liverpool, public spending remains the primary stimulus for private sector contracts. Infrastructure investment, especially, stimulates business growth and employment. I am, by nature, optimistic. There is evidence that our new, stronger local economy is better placed to survive the continuing recessionary climate. Investment in Liverpool One, the Echo Arena Liverpool and BT Convention Centre, the cruise liner facility and the city’s commercial district has forestalled the worst of the recession for businesses in the city centre and helped sustain consumer spending. We may yet steer a reasonable course through the turbulence of 2010.
STEPHEN ROBERTS, GENERAL
IAN GOALEN, SENIOR PARTNER,
MANAGER OF THE CITY CENTRE CROWNE PLAZA AND CHAIR OF THE LIVERPOOL HOTELIERS ASSOCIATION
KPMG IN LIVERPOOL
I BELIEVE that 2010 will be a difficult year for Liverpool’s hotel industry. We have seen an increase in the supply of accommodation, with a number of hotels opening both in the city centre and on the outskirts. Liverpool has a reliance on the leisure traveller, with tourism a major economic force, but even with this next year will be challenging, due to increasing unemployment. The best I think the industry can hope for is to stand still. Also, the corporate market is very subdued at the moment. All hotels are having to look for new and emerging markets to compensate for the downturn. Unfortunately, the proliferation of hotels and venues in Liverpool over the last two years has not been matched in corporate activity. When it comes to companies spending, the luxuries seem to be the first thing to go, even down to what business people eat in hotel restaurants and
choosing chicken instead of steak, for example. If people can travel back home, rather than spend a night in a hotel, then they will. This is a potentially damaging environment for hotels in the future if the balance is not redressed. However, here at the Crowne Plaza, the yield to August this year was 5% up on 2007, which shows there are still opportunities as well as difficulties. We need to understand what the customer is looking for and deliver it at the lowest cost possible. We have to be imaginative and flexible in order to deliver value for money. Our conference team continues to be successful despite the recession, although there will continue to be weaker times of the week, month and year. A lot of challenges lie ahead but I think that if the city can retain and develop further its position as an attractive tourism and business destination, we can pull through.
WHAT I’m hearing as I talk to clients and contacts around Liverpool is an increase in confidence. What I’m not seeing is green shoots. I attribute the optimism to the fact that I believe the economic slope we have been sliding down has recently levelled off. While progress, this is far from buoyancy. I expect 2010 to offer us a continuation of this more stable, but still pretty downbeat, economic environment. Liverpool does not experience the highs or lows of the national City-led economy, so in my opinion we’ve broadly survived the credit crunch and subsequent recession in better shape than some parts of the economy. But the trade-off is that it may take us longer to pull into an upward curve and as this arrives in 2010 I fear it will be shallow. With consumer debt and uncertainty still in evidence, I can’t see high spending levels pulling us towards a strong recovery. While the scale of the public spending cuts on the cards will temper the private sector economic uplift, I think Q1 will see
insolvencies and unemployment continue to rise. And there may be further economic shocks that threaten to stall the global recovery to some extent, such as the Dubai debt crisis taking place as I write. As for my business, along with our clients, a significant challenge for 2010 will be planning, resourcing and investing in a relatively uncertain climate, and guiding clients to make the right decisions for survival in the short term and for nurturing sustainable growth. We will be paying close attention to the needs of our clients in the region. For example, I expect our restructuring team’s advice relating to cash management and working capital requirements will continue to be in demand but the focus may change from cash conservation to avoiding the temptation to overtrade. The good news is that the outlook is better than it was at this time last year, when we knew there was worse to come. At least we can expect some improvement in conditions in 2010, but I urge businesses to remain cautious.
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THE BIG FEATURE
NEIL PAKEY, DEPUTY CEO OF LIVERPOOL JOHN LENNON AIRPORT’S OWNER, PEEL AIRPORTS
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AS WE emerge from the recession and reflect on 2009, the biggest highlight must be the continued development of the business, despite tough economic conditions. Easyjet increased the number of aircraft based here, Ryanair added more routes, Eastern Airways brought new domestic services and KLM has improved our connectivity, linking us to more than 650 worldwide destinations. Additionally, CAA figures revealed a quarter of our passengers are now inbound, one of the highest ratios in the UK, which is a sign that the city region has capitalised on its year as
Capital of Culture and continues to benefit from it. The Shanghai Expo will help to forge new relationships with the world’s emerging markets. While the benefits won’t be immediate, the legacy will be felt as we cement our transition from a regional to international airport. This will also afford the opportunity for the region to build on its aviation supplier network. Our £12m expansion plans will come to fruition before the end of 2010. By summer, our new extended passenger security area will be in full operation, and throughout the year we will introduce new retail outlets and expand our departure lounge, all of which will enhance the traveller experience. Politically, we hope to see the new elected Government provide better assistance for business, abolishing travel tax to encourage people to invest and set up in Liverpool. Scrapping the UK Air Passenger Duty and joining the European Emissions Trading Scheme would provide massive industry savings and help to save jobs. For the passenger, it effectively stops them paying tax twice for one flight. For Liverpool John Lennon Airport, 2010 will bring more routes with links to the Greek Islands and North Africa confirmed. Similarly, we expect business and leisure travel to grow, providing a welcome boost to the local tourism economy.
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ONE of the highlights of 2009 for the firm was moving to newly refurbished offices in the Liver Building. We are ambitious and will use this as an additional momentum into 2010. 2010 will see further investment in our business and its employees. Stars often shine in a recession, and we will look to the team to respond to this challenge in 2010. I can’t see much improvement in the UK global market position during the first half of next year, as we simply do not have the manufacturing base to kick-start our recovery, and a weak financial sector doesn't help. While this period will see many other major economies clawing their
way out of the recession, I suspect the UK will be one of the last to emerge, with any sort of sustained improvement not starting to appear until later in 2010. The next 12 months is likely to see steady interest rates until the last quarter, but when these increases start they may have to rise quickly. Tax hikes and some levels of inflation will also creep into the market, and uncertainty on the level of tax rates is likely to be a major issue as there will be at least two Budgets next year due to the election. This will place continued pressure on the taxpayer. In Liverpool, I would hope 2010 sees continued growth building on recent improvements in the retail and leisure sector. To supplement this, the city region needs to also exploit our competitive opportunity in areas such as knowledge and port sectors. Liverpool One has been a huge success this year, but going forward, and turning the vision of companies like Peel into reality will be major factor in helping the area into the future. Banks in the short-term will still not have much capacity at low enough prices to assist investment by business as the recovery begins. Other avenues of equity will need to be developed. The public sector has been key to the city region, but with escalating public debt we may well see cutbacks, which could impact on the city’s economy in terms of both employment and available funding.
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10
THE BIG FEATURE
‘Working together is the key to growth’
ROD HOLMES, CHAIRMAN OF THE MERSEY PARTNERSHIP
Rod Holmes – we must not repeat the mistakes of previous recessions, and let productive companies and skills go to the wall
THE present economic situation makes it more important than ever that the public and private Sectors continue to work closely towards our joint objectives of economic growth and job creation. Investment, returns on investment, the creation of more business activity, the creation of new businesses and employment and the education and training of young people to take up those jobs must remain our critical goals. It is the private sector, represented across the Liverpool city region by The Mersey Partnership (TMP), which is the engine for economic growth. Only the Private Sector can pull us out of the recession by taking the lead in driving the UK economy forward in the highly competitive global economy. It is more important than ever that the private sector gets organised, and that TMP – representing almost 500 members from the private sector as well as our public sector partners – continues to provide leadership in 2010. Together, we have to make sure that we do not repeat the mistakes of previous recessions – letting productive companies and skills go to the wall. The recession presents national as well as global challenges. We must meet those challenges and take the opportunities they present. We have made a start with some significant steps, notably by political co-operation in the Liverpool City Region Cabinet, on which I represent the private sector. Together, in 2010 and beyond, we must continue the renewal that is now under way, building on the results of the leadership and commitment that we have seen demonstrated during the past few years.
MIKE TAYLOR, DIRECTOR OF INVESTMENT AND ENTERPRISE, LIVERPOOL VISION AS THE city’s economic development company, we focus on where growth is likely to come from in the future, and increasingly it will come from overseas. The focus of the world’s economy is changing, and openness to international trade and investment is central to Liverpool’s economic future, especially as the global economy emerges from recession. The new tiger economies in the East are looking for new markets and
investment and development opportunities in new locations. Liverpool is therefore in a better position than most, because we have a name that resonates abroad. It means that we can use our already strong international, instantly-recognisable brand to forge global trading, investment and knowledge relationships as the west coast’s sea and air gateway. Next year will see us build upon and exploit the huge amount of equity accumulated during 2008 to cement
Liverpool’s global position as the UK’s most recognisable and positive city brand. Our year in 2008 as European Capital of Culture put us in the spotlight again, and the world witnessed a vibrant, dynamic and confident city emerge from years in the shade. It was the year when the foundation stones were laid and in 2010, as the only UK city to have a dedicated pavilion at the World Expo in Shanghai, we will add the building blocks. There is now a tremendous sense of what we can achieve
on the world stage. Capital of Culture generated millions of pounds worth of economic value for the city and next year our presence at World Expo will position us to drive Liverpool’s economy and that of the city region higher and further. Put simply, being at Shanghai is a gilt-edged opportunity for Liverpool to develop new and stronger international connections and relationships, through attracting investment, students and tourists. It’s an opportunity that might not come again for many a year.
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THE BIG FEATURE
PHILIP ROONEY, OFFICE MANAGING PARTNER, DLA PIPER LIVERPOOL
SARA WILLIAMS, DIRECTOR, ST HELENS CHAMBER
GUY BUTLER, PROJECT DIRECTOR FOR GROSVENOR
ALTHOUGH 2009 has definitely not been business as usual, it has still been a busy year for a number of sectors. Hopefully, activity levels will continue to increase in 2010. For example, the property market has seen a huge amount of investment activity in the last four or five months, which has pushed values higher in some sections of the market. However, despite the improvements in market sentiment and increase in deals, there remain concerns that it is a bubble which will soon burst – if, indeed, it has not already started to deflate. With the inevitable uncertainty created by the pending general election, there will be a period of reflection early next year. It’s likely that some businesses will delay investment decisions until after the election. Whichever party wins, the public sector will need to drive down costs and save money, which will impact not only on the public sector but also on those private sector organisations who support it. Creative use of assets and resources, collaborative working and outsourcing will be high on the agendas of
I’VE BEEN really struck in the last month or so of 2009 about the rising optimism of businesses in St Helens. I am seeing a quiet confidence returning, and this should translate into a better recovery going forward. However, there is natural caution and a long way to go. It’s going to take a good amount of work – I estimate it will take around three years to get back to where we were 18 months ago. This year, a lot of companies have had to restructure to stay in business, and when the time of recovery comes we have to be ready to help them – a situation the Chamber is already planning for. From my experience and from the work we’re doing, I can see a lot of people looking at starting their own businesses. It is very pleasing that people feel positive about starting up, and we offer a lot of advice and help to people
THE past year proved extremely productive on many fronts. Only 12 months after it was officially opened by the Duke of Westminster, sales at our One Park West residential development have topped more than £25m. 123 units have now been completed, with a further 21 apartments due to be completed before Christmas. We have also secured 120 lettings and a number of commercial tenants have completed leases, including The Gym Group, owned by private investment company Bridges Ventures, which took 19,500 sq ft over three floors to open the city’s first 24-hour gym. Overall, One Park West has been Grosvenor’s best-selling development in the UK in 2009. Demand and new sales had struggled during the first quarter of 2009, partly due to the availability of viable mortgage products and potential purchasers’ nervousness about the economy. However, in June we
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many local authorities and public bodies. We are already seeing some suggestions of this with the “Whitehall of the North” concept, but the ideas can be implemented at many different levels. It is to be hoped that Government relocations do not bypass Liverpool, which has so much to offer in terms of quality of life. Most importantly for Liverpool, next year presents a magnificent opportunity to sell the city to the world. Businesses in Merseyside must not let economic problems prevent them from making the most of the World Expo in Shanghai. This will be a once-in-a lifetime opportunity to establish the Liverpool city region as a global business location. Whatever happens to the economy or the political landscape, global trade is here to stay. Businesses have to be prepared to seek out appropriate opportunities. There are many great local examples of success already, but every business needs to be aware of the challenges and opportunities presented by the increasingly global marketplace.
thinking about this. On another point, I really hope that the banks do what they say they will, which is to make it easier to get money into businesses. Some banks are doing this, others are not, but I hope to see further finance being unlocked over the next year. We’re aware that it’s often the case that people in deprived communities are the hardest hit in times of depression. Therefore, we have been pleased to make the link between the Future Jobs Fund and local businesses. We will continue to support people in St Helens who are looking for jobs and be that bridge between them and finding employment. St Helens Chamber has adapted and will continue to adapt to the needs of businesses in the community that we are here to service. We will continue to ensure that their success is our business.
witnessed demonstrable change in the market, with an upturn in sales, which has resulted in an average of close to two sales reserved per week for the last six months. Demand for lettings has been phenomenal, with 120 units let within a matter of months. Looking forward to 2010, there is currently a mixed view on the future of the property market. According to some industry experts, next year will see a significant upsurge in property investment in key regional cities, such as Liverpool. At the back end of 2009, we have seen house prices start to rise with average prices now around the same level they were back in 2006. With unemployment rising and a rise in interest rates anticipated next year, we are likely to see a slight dip again in early 2010. However, I’d expect the residential market to remain pretty balanced throughout 2010.
‘ I really hope the banks do what they say they will, which is to make it easier to get money into businesses’
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IN ASSOCIATION WITH
HOW GREEN IS YOUR BUSINESS?
Medicash takes a green lead Health plan cash provider takes environmental issue seriously LIVERPOOL health plan cash provider Medicash has been in existence since 1871, and has always taken its social responsibilities seriously. Now, as well as its well-established charitable work, the company is seeking to establish itself as a leader in environmental best practice. This is in contrast to many firms who talk the talk on green issues, but whose efforts are frequently little more than cosmetic, and often viewed as just part of a marketing strategy. Medicash claims to be making a genuine commitment. Last year, it claimed that it was the first company of its kind in the UK to achieve carbon-neutral status. After implementing recommendations made in a carbon audit assessment carried out by Groundwork Merseyside, Medicash now offsets its carbon footprint by calculating the cash equivalent, multiplying this by a factor of 10 and donating the resulting amount to the charity Cool Earth. Using donations, Cool Earth buys endangered rainforest on behalf of local communities and ensures it is kept safe for generations to come. This combats global warming, protects ecosystems and provides sustainable jobs for local people. Medicash also aims to forge links between local Merseyside schools and areas of the rainforest that have been bought to help promote awareness of environmental issues among the region’s schoolchildren. The company is aiming to reduce its carbon footprint by a further 10% over the coming year. To help achieve this goal, it has limited its company car policy to vehicles with low CO² emissions and is continuing to actively promote interest-free loans to staff for public transport season tickets, together with the Ride2Work initiative. Medicash chief executive Sue Weir said: “We are a socially responsible organisation, but it’s vital for any business, whatever its size or sector, to address environmental issues. “We do it not just because it’s the right thing to do – we do it because it makes commercial sense, too. “Our relationship with Cool Earth ensures we are able to offset our carbon emissions but, equally importantly, our environmental policy signals a commitment on the part of every Medicash employee to change their day-to-day habits in
HOW ENWORKS HELPS
Medicash chief executive Sue Weir – says the business is committed to cutting its carbon footprint order to help reduce our impact on the environment. “Everyone in the company has a responsibility to play their part.” Graham Barker, the business advisor from Groundwork Merseyside who carried out the carbon footprint assessment on behalf of Medicash, added: “It is great to see clients move forward with any recommendation that comes out of this sort of review, it
shows a real commitment from Medicash towards sustainability, and adds value to the work that we do. “To see a client take your recommendations through to fruition is very satisfying.” Medicash has recently set up a Green Team where volunteers from all levels within the company work together to constantly review practices and suggest ways in which the organisation can implement and
MEDICASH is one of more than 300 businesses in Merseyside that have taken steps to improve their environmental performance with a free environmental review service provided by Groundwork Merseyside. The ENWORKS-funded programme, which is designed to improve efficiency, identify cost savings and help tackle climate change by reducing carbon, has helped to identify well over £7m worth of cost savings collectively to those businesses who have taken part – an average of £23,000 per business. Last month, LDP Business reported that Enworks was to receive an extra £10m. Dr Juliet Staples, business services manager, Groundwork Merseyside, said: “Tackling environmental issues makes perfect business sense, as it can increase the bottom line and help to demonstrate that the necessary credentials are in place when tendering for contracts. “We are delighted that the programme has been awarded more funding, which allows us to work with hundreds more businesses over the next two years and help the drive towards a lowcarbon economy. “Strong leadership is needed in order to change behaviour and attitudes towards the biggest challenge that we face – climate change. “Groundwork Merseyside provides a hub of expertise across the Liverpool city region and is fully engaged and committed to help the public, private and voluntary sectors to meet their carbon reduction targets.”
develop its environmental policy. Ms Weir said: “The team look at everything from energy use to purchasing specifications. It’s far more than simply a boxticking exercise. “By looking at every aspect of our business, it makes us more aware of how we operate as an organisation Medicash has a long tradition of charitable giving, and regularly makes significant donations to the
NHS and various health-related charities. It was established 138 years ago to help fund the voluntary hospitals of Liverpool. It is estimated that more than £70m has been donated since Medicash was established. Medicash is a not-for-profit organisation which invests ethically and uses all surplus funds solely for the benefit of members.
RICS pledges its support for climate change battle THE Royal Institution of Chartered Surveyors (RICS) has issued a commitment to help tackle climate change. In the north of England, the RICS action plan will include monitoring efforts in both private and public sectors to develop new ways in which to create and promote sustainable development and retrofit existing property with
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energy-saving technology. Geoff White, head of public policy and communications for RICS North, said: “RICS supports the scientific evidence of climate change and the associated risks both for the planet’s ecosystems and societies. “Through the range and diversity of our membership, we are well placed to understand sustainability across the
land, property and construction sectors. “With new regulatory frameworks beginning to establish a market for low-carbon rated property in both commercial and domestic sectors, RICS members are ideally placed to claim this ‘first mover advantage’. “However, any success will depend on the development of
harmonised standards for measurement and further analysis of what policies are needed to create value for sustainable buildings. “These are two areas which will be the key priorities in the coming months.” The announcement follows the launch of the RICS Global Climate Change Strategy.
Geoff White, of the RICS
HOW GREEN IS YOUR BUSINESS?
IN ASSOCIATION WITH
John Millar, from Green Lite Solutions, right, with Ian McGhee, from Royal Bank of Scotland, outside the new company’s Warrington headquarters
New firm offers an illuminating service Green Lite Solutions will help companies become more energy efficient A NEW company which helps businesses reduce their energy bills and carbon footprint through the use of energy-efficient lighting, has been launched in Warrington. Green Lite Solutions UK is the new trading name and identity for Direct Lamp Distribution, a former wholesaler and distributor of lighting equipment to retail and trade buyers. The firm has started with the help of a £1.25m funding package from the Royal Bank of Scotland (RBS). To accompany the change of identity, Green Lite has re-launched itself as a provider of energyefficient lighting to commercial customers. Its new services include a full energy audit and evaluation of the
current lighting systems at a customer’s premises. This is followed by a suggested redesign using energy-efficient LED lighting where possible, to help lower energy bills and reduce the company’s carbon footprint. LED lighting uses up to 80% less energy than halogen or fluorescent lighting, meaning that a business can significantly reduce its energy bills and carbon footprint by changing its lighting source. LED lighting also requires less maintenance and lasts much longer when compared to traditional lighting sources. Direct Lamp Distribution was originally established by its directors, John Millar and Mark Dempsey, in 2004.
The duo also own and operate Eurotec Services GB, a sister company based in Warrington, which over the past 15 years has provided electrical maintenance and testing services to blue-chip clients such as national retailers and DIY chains. Mr Millar said: “We took the decision to reposition the business in response to changes in the market and feedback from our customers. “It is clear that rising energy costs are becoming a big concern for many businesses, and we are confident that we can work with both existing and new customers to help them address this issue.” The Green Lite concept offers the customer energy design, product supply with a full three-year
guarantee, installation and maintenance. The RBS business and commercial team, based in Liverpool, provided a £450,000 Enterprise Finance Guarantee loan to help with the re-launch. Lombard, the asset finance arm of RBS, provided an £800,000 finance line to enable Green Lite to purchase a fleet of 45 new vehicles. Ian McGhee, relationship manager at RBS, said: “John and the rest of his management team are experienced operators and possess a great deal of knowledge in this particular market. “They impressed us with their vision of a business based upon energy-efficient lighting solutions and secured the bank’s backing.”
■ A WIRRAL-BASED landfill management firm has secured a £100,000 grant to develop an environmentally-friendly system for reduction of methane emissions. Viridian Systems will use the cash to finance the designs and technology, produce a working model and test its bio-filters. Accountants Mitchell Charlesworth advised Viridian on its application to the Northwest Development Agency. Roger Dixon, Viridian’s managing director, said: “Working with Environment Agency figures, we realised that, out of the 20,000-plus landfill sites known to exist in the UK, the vast majority of the older sites do not have effective gas management systems.”
Mersey entrepreneur urges us all to get on our bikes ENTREPRENEUR Lee Carroll has launched a bike-to-work initiative that aims to get Merseyside’s workforce out of their cars and into the saddle. Known as Bike2Work, the new venture was made possible by the Government’s Green Transport Plan, which aims to reduce environmental pollution, promote healthier lifestyles and make cycling to work a cost-effective option for employees. The scheme allows
employees to obtain a bike at a discounted rate, in some cases up to 50%. This is made possible via a tax exemption whereby employees save on income tax, NI contributions and VAT, and the cost is deducted from the employee’s gross salary in the form of monthly interest-free instalments. The scheme is simple to implement and has proved popular. Lee, managing director of
Crosby Associates and himself a keen cyclist, was inspired to start the service following his participation in the Everton Foundation’s London to Paris bike ride. He said: “We are all conscious of the effect our output has on the environment and how important it is to reduce our carbon footprint. “When I started training for the London to Paris bike ride with other business leaders
and professionals, I was amazed by how widespread this concern was and how companies wanted to do their bit for the environment but didn’t know how. “Bike2Work is the perfect solution as your employees get a new bike at a great discount, and the employer gets actively involved in helping the environment.” ■ FOR more information and to take part, visit bike2workscheme.co.uk
Lee Carroll – advocating more use of pedal-power
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COMMERCIAL PROPERTY
Land Securities is due to start work on the £100m revamp of St John’s shopping centre in 2012, with sustainability earmarked as a key element of the upgrade
Property giants in carbon call Government must tackle emissions in existing commercial buildings, says powerful group
SOME of the biggest commercial property owners in the UK are calling on the Government to target existing buildings in its drive to slash carbon emissions. The group, which includes one of Merseyside’s biggest property owners – Land Securities – claims the UK runs the risk of missing its carbon reduction targets if it doesn’t tackle the issue. The firms – which also include British Land, Hammerson, Hermes, Legal and General, Prupim and SEGRO, who own and manage the country’s biggest shopping centres and offices – want to see display energy certificates (DECs), which clearly show the performance of buildings when in use, made mandatory for all buildings. Land Securities owns Liverpool’s St John’s and Clayton Square shopping centres, while British
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Land owns the New Mersey Retail Park. Land Securities is due to start work by 2013 on a £100m revamp of St John’s. The company has pledged the development will be as sustainable as possible. Dave Farebrother, environmental director at the company, which has recently announced it will voluntarily introduce DECs across its London portfolio, said: “At Land Securities, we are finding a high degree of willingness among our clients to engage on matters of energy efficiency, and, as existing buildings form the larger part of the ongoing carbon problem, the quickest, cheapest and biggest wins for the sector come from changing attitudes and behaviours. “DECs, which reflect how buildings actually operate, are much more helpful in this regard than a
theoretical Energy Performance Certificate.” Patrick Brown, assistant director for sustainability at the British Property Federation, said: “We really need clarity now, given that the development process can start over a decade in advance of a brick being laid. This is a welcome consultation, but the bottom line is that our 2050 target of reducing carbon emissions by 80% will be missed unless a greater level of attention is given to existing buildings. “The consultation prioritises energy efficiency, which is a good thing since building regulations are readily understood by developers and the bar is raised over a period of time. But the overwhelming focus on new buildings must be accompanied by a greater level of attention to existing stock.”
The New Mersey Retail Park, in Speke, owned by British Land
THE BIG INTERVIEW
Refreshing tea firm’s profits BY ALISTAIR HOUGHTON
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Change is brewing at Wirral’s Typhoo Tea as chief executive Keith Packer plans to lead the company into the black. But the keen runner says transforming a business is a marathon, not a sprint. 17
THE BIG INTERVIEW KEITH PACKER CONTINUED FROM PAGE 17 T’S a long, cold walk to Keith Packer’s office from the Typhoo site entrance in Moreton – but then there’s no better place to get a warming cup of tea. Packer became chief executive of Typhoo earlier this year, and is now planning to lead the company back into the black after a string of losses. Tea may still be Britain’s most popular hot drink, despite the invasion of our high streets by coffee shops, but the tea market is a tough one. Typhoo is still one of the UK’s best-loved brands, but it has to battle for shelf space against giants such as PG Tips and Tetley. With more than half of all tea sold in the UK sold in promotions, rather than at full price, Typhoo has to keep a tight grip on its costs to keep up. And with tea costs rising and the recession in full swing, Packer has had to launch a restructuring plan that will see more jobs go at Typhoo’s Moreton factory and headquarters. Typhoo was part of food giant Premier Foods until it was bought by India’s Apeejay Surrendra Group, in 2005. Packer says it has taken time for Typhoo to get used to standing on its own two feet, rather than being just a small part of a huge food conglomerate. But, despite the tough decisions he is having to make, Packer remains optimistic about the company’s prospects. He believes Typhoo’s staff are committed to turning the business around. And with growing international sales, new products in the pipeline and costs coming under control, Packer is confident Typhoo will be breaking even and set for growth within 18 months. “I’d like to see it reach £100m turnover in five years’ time,” he said. “There’s a lot of hard work that needs to be done. We have set a strategic plan in place. There’s no reason we can’t be a great business.” Typhoo packs 125m kg of tea per annum, making the company one of the world’s top five tea suppliers. Packer says Typhoo’s turnover today stands at around £70m a year. Around 70% of its business comes from its own brands, with the remainder coming from the own-label teas it blends for retailers from supermarket giants to top-end department stores. Typhoo is one of the best-known names in the grocery world, yet its parent company, Typhoo Tea, is one of Merseyside’s hidden gems. Despite the giant Typhoo signs overlooking the railway line at Moreton, many people in Wirral are unaware that such a famous brand lives in their midst. “We are trying to raise awareness of the business in Merseyside,” said Packer. “It’s amazing the amount of people you speak to who don’t realise Typhoo is in Moreton.” The factory sits next to Manor Bakeries – still owned by Typhoo’s previous owner, Premier Foods – and shares an entrance with the Burton’s Foods plant that makes Cadbury’s biscuits. When LDP Business visited Typhoo, tea was served with a plate of Cadbury’s biscuits made next door. It’s hard to see where the Burton’s plant ends and Typhoo begins, but your nose gives it away as the sweet smell of chocolate blends into the rich aroma of tea. Today, Typhoo employs 320 people in Moreton. In the last 12 months, Typhoo’s plant has shed some 30 jobs. The company is now proposing that up to
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The production line at Typhoo, Moreton
Comedian Alan Carr designed this Susan Boyle teapot, to be auctioned for Typhoo Sports for All 69 more jobs could be lost. Managers are consulting with unions and staff to see if that number could be reduced. Packer says the decision to cut jobs was not taken lightly. “I’m very conscious of the lives I’m going to change with these proposals,” he said. But, he insists, all Typhoo’s cost-cutting measures are aimed at securing the future of the business and its large presence in Wirral. “We need to create a long-term business and make the business sustainable,” he said. “That may mean we look at opportunities to reduce our costs further. That’s something we have to
Typhoo chief executive Keith Packer inspects the produce at the company’s tea
be pragmatic about and look at where we need to be. “We are going through a process of looking at our labour head count. But I think most businesses are going through that. “We remain committed to Moreton as a manufacturing site. We remain committed to running the business from this operation here. “We’re actively chasing new contracts out there. We’re trying to grow our brands and create more value around our brands.” Packer described Typhoo’s recent results as “atrocious”. For the year ending March 31, 2008, Typhoo Tea posted a loss of £10.1m, which narrowed to a loss of £4.9m in 2009.
The company has brought in external consultants and is looking at ways it can reduce manufacturing costs still further. “It’s a low-margin business. The key for Typhoo is to leverage more value and better margins from its products.” That task is made tougher by rising tea prices. Packer said: “We’ve seen the price of East African tea go up 40% year on year. That presents a challenge for our business to manage that. “The market is very competitive. It’s a big challenge to compete with our competitors out there. “Tea is still the cheapest drink.
Our price per cup is considerably lower than coffee. “There’s a measure that we use – share of throat, it’s a dreadful term – and tea is still the number one hot beverage in terms of share of throat.” Typhoo has a 17% share of the UK tea market, with the Typhoo brand itself boasting around 10% of the market. But even a brand like Typhoo faces a struggle in a market that boasts so many household-name brands with huge marketing budgets. “Over 60% of tea is sold on promotion,” said Packer. “It’s a market that’s very promotionallyleveraged and we have to compete on
THE BIG INTERVIEW KEITH PACKER
warehouse in Moreton, Wirral that level. PG and Tetley will sink in their marketing money. It’s a competitive market. “But we are trying to introduce new products that are different and will give us a real point of difference – the sort of thing to give us critical mass. We are trying to develop a high level of high-margin products.” Typhoo was created in Birmingham in 1903 by John Sumner, who wanted to market a new form of pre-packaged tea that was made from tiny tea particles, rather than large tea leaves. Sumner wanted a name that was distinctive, would trip off the tongue and could be trademarked. He eventually chose the name
Typhoo, the name deriving from the Chinese word for doctor. The tea soon became popular in the West Midlands and, as early as 1906, Sumner was creating Typhoo promotional teapots. Typhoo’s West Midlands factories were damaged in World War II, but the company soldiered on. In 1968, Typhoo merged with Schweppes’ food division and the following year the company was joined by Cadbury to create Cadbury Schweppes Typhoo. Production moved to Moreton in 1978. A management buyout in 1986 saw Typhoo become part of Premier Brands. Premier bought brands such as Glengettie that are still part of
Typhoo’s portfolio today. In 1989, Premier Brands was bought by Hillsdown Holdings. Then, in 1999, Hillsdown was bought by American venture capitalists Hicks Muse Tate and Furst, to form the company that is today Premier Foods. Apeejay Surrendra bought Typhoo in 2005. The Indian group also has interests in shipping, hotels, and financial services, as well as a plantation business in Assam. “They saw the strength of the Typhoo brand,” said Packer. “They saw it was well-regarded and had spontaneous awareness. If you ask people to name a tea, Typhoo will be ahead of Tetley and PG.”
In 2006, Global Tea & Commodities, a London-based trading business that owned the Gold Crown tea factory in Kirkby, also took a stake in Typhoo. The company’s other brands include Lift instant sweetened tea, Health & Heather – “the number one brand in the health food channel” – and value brand Fresh Brew. It owns popular Welsh brand, Glengettie, Scottish brand Melrose’s, and London Fruit & Herb, one of Typhoo’s key international brands. “In the UK, the tea market is probably about 90% black tea and 10% fruit and herb teas,” said Packer. “If you go to Europe, it’s the total opposite.” The company’s
memorabilia-packed boardroom is dominated by shelves full of Typhoo products, both under its own brand names and those of the companies for which it produces tea. Packer doesn’t want any of those products named, but it gives nothing away to say that Typhoo works with some of the biggest names in British retail from supermarket chains to exclusive department stores. “We have a very contrasting business,” said Packer. “We pack boxes of teabags that supermarkets will sell for 28p, up to teas that stores sell at £10.50 for 50 bags. We adapt in different ways to meet these different needs.” Typhoo is bidding to expand its global sales and, in May, Rahul Kale, formerly of Tetley owner Tata, joined the company as its head of international sales. He plans to expand Typhoo sales into new territories from the former Soviet Union to Africa and the Middle East. Typhoo sells to more than 40 countries, with key markets including Canada, the Czech Republic and Poland. Typhoo’s key export brands are its fruit and herb teas, with London Fruit & Herb a big seller. “The London name has a real cachet,” said Packer. “We recognise as a business that international expansion is something that’s very key to growth. “It’s all about long-term sustainability, not cheap deals for the short term. We’re looking for the right partners to build the business in those countries. “We also use our relationships with major retailers in the UK to expand our business to their foreign subsidiaries.” Over the last year, Apeejay Surrendra has started to roll out Typhoo’s products, including black tea and fruit and herb infusions, in India. “You can draw a lot of similarities,” said Packer, “between India today and the UK 30 or 40 years ago, where the majority of tea sold was loose tea. Today, 95% is teabags.” Over the years, Typhoo has commissioned many well-known advertising campaigns, including one featuring singing donkeys and others where comic legend Frankie Howerd informed viewers that they could “only get an oo with Typhoo”. In its most recent television advertising campaign, launched in September, Typhoo both celebrates its heritage and “apologises” for the cheesy adverts of the past. The advert, under the slogan “Making good tea since 1903,” features the warming West Midlands tones of former Slade frontman Noddy Holder. The advert also serves to promote the company’s new community campaign, Typhoo Sports for All. It has teamed up with Britain’s Federations of Disability Sports and has pledged to fund a minimum of 500 coaches to encourage people with disabilities to get involved in sport. Typhoo Sports for All has won the backing of 1966 World Cup legend Sir Geoff Hurst, while the project has now won government support. Typhoo has also signed up stars from Jonathan Ross to Timmy Mallett, and the aforementioned Noddy Holder, to design their own “Celebriteapots” to be auctioned to raise funds. Bids for the teapots closed yesterday – though a real chocolate teapot, designed by Sebastian Conran, was snapped up before the auction began. Meanwhile, Packer is not content simply to sit in an office
CONTINUED ON PAGE 20
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THE BIG INTERVIEW KEITH PACKER
Keith Packer tests some of the tea in Typhoo’s blending room 18 CONTINUED FROM PAGE 19 to endorse Typhoo Sports for All. As you might expect from a keen runner, he has set the pace. He said: “I buddied up with a guy with severe learning difficulties, Gary Jones, to take part in the Great North Run in September and the Great South Run in October. “We did the Great North Run in one hour 40 minutes, which is quite quick. “We bumped into Nell McAndrew and Gordon Ramsay, and got some great pictures as well. “We overtook Gordon Ramsay, and he challenged Gary to run again next year. That run was great for both of us. “I’m trying to lead from the front, so people can see what I’m trying to do. I’m a very hands-on chief executive.” That belief in being hands-on extends to all aspects of Typhoo. “I like to know what’s going on because I have responsibility for how the business performs,” said Packer.
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“That’s my retail background – retail is detail, as the corny quote goes.” No truly hands-on boss could spend all their time in the boardroom, and Packer says he regularly gets out to meet customers to tell them what he is trying to do at Typhoo. “I have come across a number of chief executives who have not been visible to their customers,” he said. “I’m very visible and often go out to meet our clients. Hopefully, that gives Typhoo a point of difference. “It’s customers and shoppers who’ll make a difference to us. I can listen and respond to feedback. Those good ideas from customers could be golden nuggets for us going forward.” Even at tough times like the present, Packer wants to be visible to his staff. He launched the “Tell Keith” ideas scheme, for employees to tell him how money can be saved. He has invited staff to email him – or drop by for a cup of tea. Typhoo’s revamped website lists
the executive team’s biographies and how they like their tea – in Packer’s case, “strong with half-fat milk”. Visitors don’t have to look far from the boardroom table to see Tell Keith in action. Around Typhoo’s offices, and in the boardroom itself, are notices telling people to switch off the lights to save energy. Packer says he has been determined to change the mindset of Typhoo’s staff and to make them feel that their individual views do count. “It’s been a slow process, but things have changed,” he said. “Under Premier Foods, people were told what to do, but now I’m asking people what they want to do. “It does take time to change a culture that’s been in place for 25 or 30 years, to make it a place where everybody is listened to. It takes time for individuals to change. “But we did a staff survey recently, and what came out of it is that pretty much everyone is committed to making this business work and is passionate about Typhoo as a brand.” Packer, originally from Weymouth,
in Dorset, started his managerial career at Sainsbury’s. After becoming a senior buyer there, he spent a year at Allied Bakeries before joining pharmaceutical giant Pfizer’s consumer healthcare division, where he looked after brands from Listerine to Calpol. In 2004, he joined soft drinks giant Britvic as business unit controller. Packer joined Typhoo in April, 2006, as sales director, primarily responsible for marketing Typhoo’s own-label products. He now lives in Chester with his personal trainer wife, Karen, and their children Amy, nine, and Zak, five. Packer doesn’t save his running for charity events. He runs regularly and has a treadmill at home so he can keep his exercise routine, no matter what the weather or work can throw at him. Packer also has a family rivalry to spur him on. “My brother was 40 in November,” he said, “and did his first marathon on his birthday, in Florence. He did it
in two hours 55 minutes – there’s a bit of brotherly rivalry now. “My best half-marathon time is one hour and 31 minutes. I’ve still got to take a few minutes off to catch up with my brother.” Changing Typhoo will take time. But Packer has another even more ambitious aim – to change the way tea is perceived. He may be proud of Typhoo’s classic teabags, but he hopes tea drinkers can be tempted to look beyond black tea and towards some of the world’s more unusual infusions. “People are becoming more educated about tea,” he said. “They’re understanding the differences that exist between teas. “We’d like to make tea more sexy. “If you go to a well-known coffee house, you’ll find 30 different sorts of coffee with different names. If you ask for a cup of tea, you’ll probably get a teabag floating in a cup of hot water. “Our industry needs to make tea drinking more exciting than it is at the moment.”
PROFESSIONAL SECTORS
Demand still high for graduate schemes Recession has not stopped firms recruiting for the future
Deloitte’s 2009 graduate intake in the North-West. The company says students are applying earlier ACCOUNTANTS in Merseyside say they are still committed to their graduate recruitment schemes, despite the recession – and they say the sector is still attracting strong interest from students. Deloitte’s Liverpool office recently recruited seven new graduates. Senior partner Sean Beech said: “It has definitely been a tougher market for graduates this year, given that many of the other professional and financial services firms have not been recruiting the same numbers as they have done previously. “In Liverpool, and across the north-west business, we have seen a good response to our graduate intake programme, in terms of both the number of applications and also the ability of those applying. November and December are traditionally the busiest period for graduate applications, but over the past few years many applicants have started the process earlier in a bid to secure places before the rush; equally, we have seen a number of graduates requesting a deferral once positions have been confirmed. “Looking forward to next September, we have already received a good stream of applications to date and we expect this to grow over the next few months. We still
have a number of vacancies for next year’s intake, but these are likely to be filled by spring, 2010.” Will Baker, associate partner at KPMG in Liverpool, said: “The graduate recruitment plans for KPMG’s Liverpool office next year remain stable – indeed, unchanged from this year, when we recruited six graduates. “We are, however, noting changes in the graduate recruitment marketplace both here and across the UK with a significant increase in the number of applications. “This, combined with the fact we are receiving highquality applications, means we are filling our places earlier than ever.” Maria Thomas, human resources manager at Grant Thornton, in Liverpool, said: “Despite the current economic conditions, we recognise the importance of nurturing young talent and have dedicated a lot of effort into retaining and developing our graduate and school leavers’ recruitment programmes. As a result, we have welcomed 16 recruits to our North West offices this year, all of whom have made an invaluable contribution to our team. “In 2010, we will continue to encourage and promote our training programmes in the North-West, with
Will Baker Liverpool placing a particular focus on A-Level school leavers. “In Liverpool, we will be supporting the selected students to gain AAT, ACA and ACCA qualifications, meaning they will be qualified to the equivalent of degree level by the end of the scheme. As a result, we look forward to attracting some of the best young talent across the region in the New Year”. Barry Flynn, Liverpool senior partner at Ernst & Young, said: “We think it’s really important to continue to build our business even in tough times. We’re committed to investing in graduates as one of the UK’s leading graduate recruiters and will take on approximately 500 graduates this year, which is consistent with last year. “Investing in the next
Barry Flynn generation of accountants, through campus and experienced hire recruiting to meet market demand, is vital to our growth.” Andrew Bargery, Northern student recruitment manager at PricewaterhouseCoopers, said: “We held our nerve in the market and maintained our recruitment levels throughout the UK this year. It would short-change our business in the recovery if we failed to maintain our investment and confidence in graduate skills now. “In the North-West, we'll recruit around 100 graduates and undergraduates across our full-time and intern programmes for 2010. “This year’s recruitment campaign is not about maintaining our numbers, it’s about our ambition and growth in the market.”
BUSINESS MATTERS with Steve Sankson, of The Royal Bank of Scotland and NatWest in Merseyside AS WE watch 2009 vanishing over the horizon, the year is unlikely to be remembered with much fondness by the local business community. Several factors, such as the economic recession and global banking crisis, have combined to produce difficult trading conditions for Merseyside’s SMEs. However, despite the harsh economic environment, there are businesses across the region that have not only survived the last 12 months, but have also performed remarkably well. We have worked with many such businesses, providing advice and funding solutions where necessary to help to support their plans. As we look back at the year, it is worth highlighting the achievements of some of these businesses. They are drawn from contrasting industry sectors and while some are start-ups, others have been around for a long time. What they do share, though, is the typical resilience and commitment that characterises the local SME market. ■ AINTREEBASED Crystal Fires is a family owned manufacturing firm that produces bespoke gas fires. Earlier this year, the company secured a contract with F & P Wholesale, a national heating & plumbing distribution chain. The agreement could see Crystal double its 16-strong workforce and £1m turnover within the next two years. To help cover the initial increase in overheads, NatWest provided the company with a £250k funding package. ■ PRESCOT couple Gillian and Mark Baldwin refused to let the recession halt their plans to start their own business. In September, the duo opened Spaceworld – a new children’s indoor play centre on Prescot Business Park. NatWest supported the couple by funding the £100k project. ■ AIRANGEL is a Warrington-based provider of wireless and wired internet access solutions for corporate customers across the UK. Its customers include hotel chains such as Malmaison and Radisson SAS, plus leading conference and exhibition
venues like Birmingham’s NEC and Manchester’s GMEX. Supported by a new £500k working capital facility from RBS, the business has embarked on an ambitious expansion plan which has seen it open an office in London and recruit several new employees. ■ ONLINE retailer Kiam Power Products supplies its own brand pressure washers predominantly to the industrial market. The washers are manufactured in China and then shipped to Kiam’s base in Knowsley, before they are eventually sold to customers around the world. The business has flourished since it was launched two years ago and, to meet the growing demand for its machines, Kiam needed to expand its network of Chinese suppliers. RBS provided the firm with a six-figure trade finance loan to help Kiam secure new suppliers in the Far East. ■ LIVERPOOL Fabrication Co is a wellestablished Bootle business that manufactures specialist steel products that are used in many industry sectors including food, energy and pharmaceutical production. In June, the company won an order to supply a global energy provider with 13 stainless steel lube reservoirs, worth in excess of £700k. RBS provided a £100k working capital facility to help cover the initial increase in raw materials and production costs arising from the contract. The examples above are just a few of the many local SME businesses which have defied the difficult economic conditions with the support of their bank. Throughout the year, Merseyside’s businesses have demonstrated resilience and the ability to adapt to rapidly changing conditions. As we move into 2010, the economic indicators suggest that conditions are beginning to improve which will mean more opportunities for SMEs going forward. To ensure that your business has the correct funding packages in place to enable you to take advantage of the expected upturn, please contact your local NatWest manager on 0151 242 5457.
‘Many local SMEs have defied the economic conditions’
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SCIENCE & TECHNOLOGY
Getting children to eat fruit not the only marketing challenge Fruit to Suit, in Wirral, provides healthy snacks to schools BEING persuasive is important to all businesses, but not many choose a task as difficult as getting children to eat fruit. That’s what former primary school teacher Terrie Johnson has done by setting up Fruit to Suit, which supplies pre-packaged dried fruit and healthy snacks to schools as part of a healthy tuck shops programme. The business allows her to pursue her passion for healthy eating and achieve a work-life balance that would enable her to spend more time with her own children. While the business was in an embryonic stage, she enlisted the help of Invest Wirral and the business flourished, becoming a franchise operation with franchisees as far afield as Kent and South Wales. She said: “Invest Wirral suggested that I get back in touch with Business Link and talk to them about what to do next and ways in which they might be able to help. I made the call and I couldn’t believe the breadth of support available.” Business Link Northwest growth adviser, Rob Capleton, met with Terrie and carried out a business diagnostic to identify priorities for the business and discuss how they could be delivered. Mr Capleton said: “It was clear from our first meeting that Terrie’s main goal was not making huge profits from the business but succeeding in promoting a healthy eating culture within schools. “We discussed the idea of changing the company’s status to a social enterprise, as this would not only open up business support and funding opportunities, but would also send out a clear message to schools that the company exists to help children rather than to make a profit.” In addition to addressing the matter of Fruit to Suit’s business status, the action plan also concentrated on marketing and the possibilities of developing its online presence. Mr Capleton said: “Fruit to Suit already had a great
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website, however, the site can work harder for the business and we talked about enhancing the website and perhaps considering an e-commerce site in the future.” Ms Johnson added: “To develop the business further, I not only need to market the concept to schools but also to potential franchisees as increasing the number of franchisees will be critical to growing the company. “Rob introduced me to the Business Link marketing toolkits which are available online and helped me see the need for a stronger marketing plan going forward. “He also put me in touch with a number of networking groups, such as Women in Business on Merseyside, which is helping me to spread the word in my local area.” ■ THE Liverpool Daily Post and Business Link Northwest have joined forces to launch a campaign, Supporting Our Businesses. The campaign will signpost the business community in the area to the information, help and practical support they will need. Supporting Our Businesses also aims to help safeguard jobs in the area.
Fruit to Suit founder Terrie Johnson, with two pupils from Greasby Junior School, Wirral
SCIENCE & TECHNOLOGY ADVERTISEMENT
From left, I-TAC manager Martin Morlidge, Byotrol scientist Chris Plummer, Byotrol founder Stephen Falder, Byotrol scientist Rachel O’Connor and STFC's Paul Vernon, at the firm’s new facilities, at Daresbury
Bug-battling firm moves its R&D facility to Daresbury Byotrol develops products to fight viruses without harming people A FIRM that develops technology to fight deadly bugs is relocating its research and development facility to Daresbury. Manchester-based Byotrol is setting up its facilities in the Innovations Technology Access Centre (I-TAC). The firm has developed a patented hygiene technology which is described by leading experts as having the “characteristics of the ideal biocide”. Its technology is used in sprays, mousses and wipes to combat bugs and viruses. Tests and trials have shown that it has
long-lasting, antimicrobial control in a much safer and more caring way than traditional bleaches, disinfectants and biocides which can be damaging and toxic to people and animals. Byotrol will be using the laboratories and hi-tech equipment available at I-TAC to develop specific versions of the technology for the healthcare, food production, animal welfare and consumer markets. They will also work to develop the next generation of the technology and on new applications for Byotrol
across a broader range of markets requiring safe and long lasting microbial control. Stephen Falder, Byotrol’s founder and deputy chairman, said: “Moving to the laboratory at Daresbury has given access to a wide range of equipment and specialists, as well as putting us into a number of innovation networks and fostering the working in partnership with experts at the Science and Technology Facilities Council’s (STFC). “All of this is aimed at achieving our goal of increasing our capacity
to find a whole range of new and valuable uses for the technology.” Byotrol is the first long-term tenant at the new I-TAC, which is run by the STFC, following the recent relocation of its principal microbiology R&D operations from Erlangen, in Germany, to the North-West. I-TAC offers access to £3m of scientific equipment in 16 fully-equipped biological, imaging, materials and physical science laboratories. Chief executive of STFC, Keith Mason, added: “This is fantastic news for the new Centre. Byotrol is a
growing and very innovative company, and I am delighted to be able to work with them. “The Innovations Technology Access Centre aims to make it easier for firms to carry out the research which is much needed to enable them to thrive in a competitive and increasingly global business environment. “I hope by working alongside STFC’s scientists, academic and other companies based at Daresbury Science and Innovation Campus, Byotrol are able to really make their mark with their revolutionary technology.”
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big
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813DEC09PJ
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ECONOMIC DEVELOPMENT
IN ASSOCIATION WITH
Think big, think £4.5bn big
The coast and countryside of Wirral – such as the view of Hilbre Island, off the coast of West Kirby – is a key part of the lifestyle offer to entice inward investment to the borough
Wirral Waters dominates the plans of a borough that is more complex than first appears HERE were already green shoots cautiously showing themselves in falling unemployment figures on the Wirral – and then Tulip flowered once more. In the official monthly unemployment figures released in October and November, Wirral showed the largest fall in people claiming jobseeker’s allowance. Falls of 2.5% and 2.8% saw a net total of 550 people come off the claimant count. December’s figures, released tomorrow, could see it fall below 10,000 for the first time since May – needing just 69 people to stop claiming to dip back below the threshold. There has been positive news from two major employers who have suffered in 2009.
T
In January, Tulip, which is the largest producer of pork in the UK, announced it was closing its meat processing factory in Bromborough causing the loss of 300 jobs. After a costs review, Tulip said it could see no viable alternative to closure for its sliced cooked meat operation, and work stopped in April. But last month it unveiled plans for a £12m investment to redevelop the site to create a “modern, highly productive and state-of-the-art sausage production facility” which will see 270 jobs created, with the potential for expansion. Peter Judge, Tulip’s divisional managing director, said: “We are delighted to be able to announce our plans to redevelop our Bromborough production facility.
“Clearly there is an awful lot of work to do before the new facility will be up and running, but we are confident that we will be in a position to begin producing sausages at Bromborough in the first half of 2010.” Just a couple of miles down the road is Vauxhall’s plant, which has endured a year of speculation and uncertainty. While it is just over the boundary line, in Ellesmere Port, the Astra-producing factory employs 2,200 people and is a major player in the Wirral economy. Vauxhall’s owner, General Motors (GM), was forced to put its European operations up for sale after it filed for bankruptcy in the United States. The prospective buyers, Magna, had warned there would be 800 job cuts in Cheshire as part of more than
10,000 redundancies across Europe. When GM eventually pulled out of the deal in early November, it reduced the number of expected job cuts by one-tenth – but then delighted UK workers by announcing just 354 job cuts at Luton – and none at Ellesmere Port. The announcement provided a serious boost to the plant, which is preparing for the launch of the Astra Sports Tourer next year, by confirming the re-introduction of a third (night) shift in 2011. The Vauxhall plant, though, is an example of a statistical problem that Wirral faces – while the borough has a population that is better qualified and earns more than the North West average, they tend not to work where they live. Wirral has a jobs density of 0.61 –
that is, 61 jobs for every 100 people of working age – which is the third-lowest of the 43 North West authorities. More startlingly, data released last week showed it has the second-lowest GVA per capita – gross value added, a measure of economic output – in the country. Its GVA per head is £11,257, ahead of only Anglesey, and more than £8,500 below the national average. Kevin Adderley, head of strategic development at Wirral Borough Council, acknowledges the statistics jar against people’s perceptions – for better and worse. “Wirral is the third-largest metropolitan district by population in the North West and the
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ECONOMIC DEVELOPMENT WIRRAL
IN ASSOCIATION WITH
Wirral Waters is forecast to create 27,000 permanent jobs, 15,000 new homes, and 600,000 sq ft of retail and leisure development along the waterfront. CONTINUED FROM PAGE 25 ninth-largest in England,” he said. “We are bigger than Newcastle, Nottingham, Coventry. “We face some economic challenges. We currently have the lowest GVA of any English metropolitan district, yet we have some of the most affluent parts of the UK. “One of the reasons our GVA is low is because we have 40,000 people who travel outside the borough – nearly 25% of the working population. “In terms of density of economic deprivation, we have the second highest concentration of economic depravity, only below Blackpool. “We are a microcosm of UK plc. From a helicopter flying over, it’s a great place. We have higher levels of NVQ-level qualifications than England, income levels are higher than the city region, we have some wonderful coast and countryside. “But there are divides between the east and west of the borough. The east has lower levels of skills and everything that goes with that – health, attainment, crime and so on. While the split isn’t absolute, we are a borough of two halves.” Four years ago, work began on Wirral’s investment strategy, Think
Big Think Wirral. It was designed to channel and energise the economic plans for the borough and for it to think internationally. Mr Adderley said: “We are a big authority. “We have got big challenges and big aspirations and we think we have big opportunities. “We introduced the investment strategy. It has the sole ambition to improve the GVA of Wirral plc. We decided we would want to do that in partnership with others in the public and private sector. “One of the things we recognise is where does Wirral sit in a UK and a worldwide economy. “It’s a different world that we operate in than even 10 years ago. How do we ensure that as an investment location we can compete in the global market? “Our competition isn’t Liverpool or Wigan, it’s parts of the Far East, India and so on. “How do we react to that?” In Wirral’s favour is its multi-faceted lifestyle offer, which adds weight to its inward investment propositions. “Some of the great things that make Wirral different are what some people wouldn’t think economic development is about. “There’s a great housing offer, we
have some of the best schools in the country – Wirral still has a grammar school system – a fantastic food offer, including the only Michelin-starred restaurant in the city region, and we have a coast and countryside that many people would kill for. “We have world renowned golf courses, like Royal Liverpool, and we have Wallasey, where Stableford (a golf competition) started. “We have got great communication links – two airports less than 40 minutes away and it is only two hours and six minutes to London by train.” While some of that infrastructure was gaining international exposure during the 2006 Open Championship held at Hoylake, a once-in-a-lifetime opportunity presented itself. Mr Adderley said: “We were just in the throes of the final preparations of the 2006 Championship return to Hoylake. “This was one of the world’s sporting events that we hadn’t seen since 1969. None of us had done it before. “It was probably the most successful Open Championship up to that point. “It gave the whole of Wirral a buzz and a belief – that was fantastic. “So ‘Think Big’ became ‘we can’ and ‘we should’ and ‘we need to’.
“Then Wirral Waters came knocking.” Wirral Waters forms part of Peel Holdings’ Ocean Gateway. It is hoped the scheme will eventually house 27,000 permanent jobs, 15,000 new homes, and 600,000 sq ft of retail and leisure development with cafes, restaurants and bars along the waterfront. The £4.5bn plan is to regenerate 18m sq ft on over 500 acres of underused dockland. Details revealed so far show that Peel has divided the dockland area into four sectors, with two focused on port businesses. The other two are a mixed use area around the Northbank East scheme, which received planning approval earlier this year. At Bidston, Peel has so far said it wants to create a “retail, leisure and residential” area. He said: “We have got the opportunities – the undeveloped land, we have got one of the biggest undeveloped dock systems in Europe. “Before Peel, we were continuously trying to see how we could get improvements to the land which was becoming more and more derelict and was an eyesore. “The plans are extremely exciting. We have gained planning permission
for Northbank East and we expect an application for the East Float very soon. “This is a huge application, it will be the largest in the UK. It’s bigger in terms of area than the Olympics, it’s huge.” While the scheme will take decades to be completed, the planning process is a major step forward in it coming to fruition. “We will expect to deliver the council’s view to planning committee around the end of April or early May, and then it will be referred to Government Office for their consideration because of the size of it,” he said. “Early next year, towards the end of the first quarter, we expect an application for the old Bidston Dock. “We believe that they are exciting proposals for the borough.” Wirral Waters addresses some key weaknesses in the borough’s economic offer. He said: “We do lack in retail and in office space. We know from the work we have done, just to get to the average for the North West for available office space, we need another 1m sq ft – never mind what’s needed to get up to third place in the region.
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ECONOMIC DEVELOPMENT WIRRAL
IN ASSOCIATION WITH
REGIONAL OUTLOOK with Steven Broomhead, chief executive of the NWDA STEVEN BROOMHEAD, Chief Executive of the Northwest Regional Development Agency, provides an update on the new £100m boost for urban regeneration in the North-West. ■ THIS month, the NWDA, alongside the European Investment Bank, has announced the approval of the new £100m Northwest Urban Investment Fund (NWUIF) with funding from the European Regional Development Fund and NWDA. The NWUIF will provide debt, equity and guarantee investment to support projects that will help unlock, kick-start and regenerate sustainable development in Liverpool and other urban areas in the North-West. With the current, challenging economic conditions it is still difficult for urban projects to secure finance from traditional commercial sources, and we know some projects across the region and UK have stalled because of this. This fund will provide investment to support projects that will help unlock and regenerate sustainable development across the region, breathing life back into excellent schemes that may have stalled just because of the economic conditions. The £100m fund is made up of £50m of European Regional Development Fund and £50m from the NWDA. It will be fully operational and ready to invest in North-West projects by summer next year. The new fund is a financial instrument, created by the European Commission, to enable the investment of European Regional Development Funding and other match funding. In Europe, it is known as a JESSICA (Joint European Support for Sustainable Investment in City Areas) initiative. The North-West is only the second English region to set up an initiative of this type, following a similar agreement between the European Investment Bank and the London Development Agency, in October this year. It is a great example of how the Agency is working on a regional level to extend the number of finance options available to northwest businesses. The principle of the fund is
to use European Regional Development Funding to invest in projects with the expectation of a return on the investment, rather than following the traditional grant approach that provides funding as a grant with no expectation of repayment. This return will then be reinvested into new urban development projects. Creating this revolving fund is an excellent opportunity to ensure that money remains available for investment beyond the end of the current Structural Funds Programme in 2015. This will create an “evergreen” fund to support regeneration and economic development in the region. By providing funding support in this way, the public sector will be able to reinvest the returns in future projects, thereby creating a sustainable revolving investment fund. In the last year, the Agency has stepped in to ensure key schemes in Liverpool stay on track, including St Paul's Square, where the first and second phases had been delivered successfully in healthier market conditions, but the changing economic climate meant the third phase was less viable. Working closely with Liverpool Vision, the Agency and ERDF agreed to provide a combined investment of £8.8m in gap funding to enable Muse Developments to commence on Phase 3, helping to reduce the risk on the scheme to manageable proportions. The Agency also committed £3m to the Mann Island development at Liverpool waterfront, to enable the multi-million development to proceed on programme, when the difficult financial climate resulted in increasing funding and construction costs. The funding is assisting in the development of a further 3,065m² of Grade A office accommodation. From April next year, this type of development, within the North-West, might well secure NWUIF investment. The Agency will continue to play a vital strategic leadership role, committing the support and investment to ensure that Liverpool and the region emerge from the downturn stronger than before and the NWUIF will play a crucial part in helping us to do that.
‘The Agency is working to extend the finance options for businesses’
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Tiger Woods winning the Open Championship at Royal Liverpool in 2006, which was the start of ‘Thinking Big’ CONTINUED FROM PAGE 27 “Retail is something we are missing. We are lucky that we have Liverpool One and Cheshire Oaks nearby. That’s great if you have got the ability and desire to go shopping there. “We believe we do need to improve our retail offer, working with what we have got in Birkenhead town centre and some of the other district centres.” Venuescore, an annual survey ranking more than 2,000 retail venues, including town centres, stand-alone malls, retail warehouse parks and factory outlet centres across the UK, has seen Birkenhead slip down six places to 113, although the impact of the opening of
Liverpool One last year has continued to have an effect on retailers. He said: “The retail offer is not delivering at the moment. Birkenhead by external measures is slipping down the retail market. “Today’s modern retailer wants bigger, longer stores than we have available. I don’t believe we have got the retail buildings to attract some of our aspirational types of retailers into Birkenhead.” In many ways, that’s why Wirral Waters is so important – because it offers a fresh start as well as being a marker of the borough’s ambitions. One of the challenges is that the level of expectation for the scheme makes the seemingly slow pace
frustrating. “We as a council want to see it happen yesterday, just like the people of Wirral, so we will continue to help and support Peel to get those end users and deliver as early a start as is possible,” added Mr Adderley. “We really, really do believe that this isn’t just for Wirral but for the city region and the North West as well. “We have got to have a city region that has an offer that is comparable to the world cities like Barcelona, Shanghai, Vancouver.” For now, that’s for the future. But there is progress being made on the economic base, as well as the redevelopment of facilities. He said: “In 2005, Wirral recorded 53 business
start-ups. It was one of the biggest contributors to the North West’s enterprise gap. “We are now getting nearly 4,000 business starts a year. “If I look back to 2006, the headlines were ‘Minister kills off New Brighton development’ – we have already built the extremely successful Floral Pavilion and work will be starting on phase two. “Overcoming some of the challenges isn’t going to happen overnight. “There is a determination to improve the economic performance of Wirral in terms of jobs, more successful businesses. It’s what we get paid to do but also what we are duty bound to do.” “It’s a great achievement. But there’s still a challenge ahead of us.”
INTERNATIONAL TRADE
St Helens firm finds the Spanish Elite helps it talk the language of business
Elite Telecom is servicing a number of major clients through its growing European operations
MULTI-NATIONAL firms are using the technology of a St Helens telecoms firm to handle their calls across Europe. Elite Telecom, the winner of the O2 Small Business of the Year, at the Daily Post Regional Business Awards, in June, set up its Spanish operation Elitetele.es in 2004, and it is proving to be an important addition to the firm’s service. Matt Newing, Elite’s chief executive, was bullish when he opened the Madrid office five years ago to take advantage of the deregulation in its domestic telecoms market. Elite was originally founded in the UK in 1996 because, as Mr Newing has described, he thought “here’s an opportunity, how can I make cash out of it?”. Elite now uses Global Contact Centre Solutions to handle calls for its international clients, including P&O Ferries and International Hotel Group (IHG). The system allows call centres throughout Europe to deliver calls over the platform. P&O Ferries routes calls from six countries to its three contact centres in Dover, Rotterdam and Calais, but customers dial in-country freephone numbers. The calls, for example for reservations, are then routed to the appropriate team, with multilingual agents being used who can see the origin of the call and answer in the correct language. Simon Cutler, Elite Telecom’s European sales director, said: “P&O Ferries wanted to be able to accommodate peak loads more effectively, and balance call volumes across its three contact centres to maximise available resources. “Servicing customers from Europe and the UK, P&O also had to be able to respond to enquiries efficiently and effectively in various languages – particularly English, French,
German and Dutch – identifying the language required without the customer knowing they had been diverted to a contact centre that might be in another country. “Controlling call costs between the UK and Europe was also a problem. As a long-time partner of P&O, Elitetele.es was asked to put together a roadmap for a converged contact centre environment and the supporting infrastructure.” The structure means that, if there was a problem with one call centre, calls will be routed to its other centres. Disaster recovery is also important for hotel group IHG, which has worked with Elite’s Madrid office to develop its pan-European plan. Mr Cutler said: “IHG approached Elitetele.es about all of their European call traffic, especially their Spanish hotel operation where they have a large presence. “IHG required a large-scale disaster recovery plan as calls where delivered to an Amsterdam contact centre which occasionally experiences down time. “Elitetele.es implemented a disaster recovery plan allowing calls to be instantly re-routed to the UK contact Centre, should the Amsterdam location ever fail. “This plan has since been deployed on two separate occasions in 2009. IHG are now looking to implement this plan across all of their European contact centres.” The growth in its Spanish operation – the last financial results showed a 10% increase in revenues – is being complemented by growth, both organic and through acquisitions, at its UK business. Earlier this month, it announced the acquisition of CAN Networks, a Dorset-based firm with a strong client base in the public sector. It is forecast to add revenues of £8.5m over the next five years.
Matt Newing, founder and chief executive of Elite Telecom – in bullish mood when he opened the Madrid office
North West environmental firms queue up for waste contract in Kuwait
Karl Susol – contract has huge potential for development
A MAJOR £200m environmental services tender in Kuwait attracted waste and recycling companies from the North-West to visit the country. Envirolink Northwest and UK Trade and Investment (UKTI) led the trade mission, which it is hoped will pave the way for companies to enter the Middle Eastern market. The delegation also signed a Memorandum of Understanding with a Kuwaiti partner which will ensure Envirolink Northwest is made aware of future opportunities to supply Kuwait with environmental products and services.
The relationship was established earlier this year, when representatives from Kuwait approached Envirolink with a procurement opportunity. Since then, delegates from Kuwait attended the Futuresource trade event in London and met with regional representatives to discuss the UK’s waste strategies, as well as seeing 12 companies with a specialist offering in the waste and recycling industry. Karl Susol, an international trade manager on secondment to Envirolink Northwest, from UKTI, said: “The waste and recycling scene in Kuwait has
huge potential for development from international environmental suppliers, largely due to the contaminated state of the landscape following the Gulf war and an almost non-existent recycling culture. “Our relationship with the Municipality of Kuwait has gone from strength-to-strength since conversations began at the beginning of the year, and this latest visit to Kuwait has allowed us to get more information about the requirements of the Municipality. “We will continue to work closely with our Kuwaiti
colleagues to provide support and advice whenever necessary and we look forward to seeing this work come to fruition in 2010.” The tender will be announced in April, and procurement is expected to begin in November. Cheshire manufacturer Sotkon UK also joined the group in Kuwait to explore exportation possibilities. The Nantwich firm, which makes underground waste containers that encourage the public to separate waste, could help to develop the culture of recycling in the Middle Eastern country.
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TRANSPORT
in association with
MARK DOWD DECEMBER 1, 2009, was the 40th anniversary of Merseyside Passenger Transport Executive (PTE), known to everyone for the last 20-plus years as Merseytravel. If anyone would have said to me when I first joined Merseytravel’s Passenger Transport Authority, in the mid-1980s, that one day I’d be celebrating 40 years of PTEs - I’m not sure I would have believed them. There again, when I first started working in transport as a lad of 17 – if anyone would have said I’d have 50 years in public transport – I don’t think I'd have believed that, either! However, in March next year, that’s exactly what I will be celebrating. It certainly has been an eventful time. The last 50 years have gone by so quickly and transport in the region has changed so much. Nor is there any let-up in the pace of change. I am immensely proud of our achievements here on Merseyside. If we go back to the 1968 Transport Act, our chief executive, Neil Scales, always mentions that Barbara Castle wanted “men of integrity and vision” for transport. Barbara Castle also said: “There are great temptations to play safe . . . and it can be a very tricky thing indeed, this. You need timing and you need judgment and you need courage.” And we have that on Merseyside. We’ve never played safe. We’ve got a unique 25year rail franchise, with a fantastic electric service – and they said we'd never do it. Working with Serco Nedrailways, we now have one of the best rail services in the country in Merseyrail Electrics, an underground loop line as busy as any in
the country and fantastic new rail stations in all corners of the region. We also have our fair share of modern bus station facilities and we're continuing to work with operators to make sure they deliver better bus services for the region. The Local Transport Act has given us the platform to make the difference to bus services that passengers have been crying out for. It’s not an overnight fix, but we want to work with operators to do more. We've got the famous Mersey Ferries, which are going from strength to strength, attracting millions of pounds into the regional economy, supporting hundreds of jobs and providing world-class experiences for hundreds of thousands of tourists and local people every single year. We have two of Europe’s safest tunnels, and we will keep doing everything we can to make sure they stay that way. We also have the electrification of the City Line, which is fantastic news for the region and, in just four or so years’ time, people will be travelling between Liverpool and Manchester in just 30 minutes on cleaner, greener trains. These are just some of the achievements we have made in the past 40 years – and they are all things to be very proud of. But we want to do – and will do – more. We’ve always had the courage to go for what we wanted and we’ll continue to do that. Barbara Castle was right all those years ago. Let’s hope that integrity and vision, delivered locally by those who are accountable, can deliver better transport for all. ■ CLLR MARK DOWD is chairman of Merseytravel
Minister of Transport Barbara Castle, in Birkenhead, in 1967
A London-bound Pendolino, alongside Virgin’s new passenger facilities at Liverpool’s Lime Street station
Extra capacity comes at a cost for Stagecoach Investment in additional West Coast services hits profits TRANSPORT group Stagecoach suffered a sweet ’n’ sour return from its 49% stake in Virgin Trains Group. Reporting its interim results to October 31, chief executive Brian Souter revealed that capacity on the Scotland to London route, including Liverpool’s Lime Street service to Euston, has increased by almost a third, following the completion of upgrade work by maintenance group Network Rail. This has allowed the introduction of a new high-frequency timetable over the past 12 months which has led to a 20% increase in passenger volumes during the period, which Stagecoach said was “by far the highest growth among long-distance operators.” It added: “There are also signs of business traffic returning and we believe there is potential for further growth with the delivery of a
consistently reliable railway infrastructure by Network Rail.” But the extra capacity has come at a cost, the Stagecoach report revealed. It said its share of Virgin Rail Group’s profit after tax in the six month period dropped from £15.1m to £9.3m; the operating profit share was £12.8m compared with £19.4m, and Stagecoach’s share of finance income was just £100,000, compared with £1.6m last year. The statement said: “As we expected, profit has reduced, reflecting a step-up in costs after increasing capacity by 30% and lower yield-per-journey as a result of weak economic conditions.” Compared with 12 years ago when Virgin, headed by Sir Richard Branson, took over the franchise, the West Coast Mainline service now caters for 22.5m passengers a year compared with 13.6m, the entire
train fleet has been replaced and the number of weekday services has soared by more than 50% However, the Transport Salaried Staffs’ Association union remains unimpressed. General secretary Gerry Doherty said: “Taxpayers are subsidising Souter and Branson by over £200m a year to jointly run Virgin Trains, which is the most expensive rail line in Europe. “It is the economics of the madhouse that we subsidise multi-millionaires who then rip us off with sky-high rail fares and car parking charges. “The Government is giving over £700m a year to private rail companies. He added: “It is time to end this Whitehall farce and bring rail back into public ownership, like the rest of Europe.”
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EDUCATION
Chester Business School gets
Situated in a pivotal point both geographically and on the commercial landscape, business school
The University of Chester Business School, situated in a dedicated facility close to the university’s campus and the city centre, which has established close links with the city’s HE University of Chester’s alumni makes interesting reading, featuring Liverpool playwright Alan Bleasdale, singer Duffy, Bullseye presenter Jim Bowen and England’s first football manager, Sir Walter Winterbottom. But Prof Phil Harris, Dean of the university’s business school, is keen to add some business big hitters to that illustrious roll call, although he acknowledges a 10-year pedigree is probably still a little too early to cultivate the next Sir Stuart Rose. The faculty comprises a Department of Business Management and Strategy, a Department of Marketing, Tourism and Events Management and a Department of Finance and Human Resource Management at its Chester and Warrington campuses, serving a total of 1,500 students. Prof Harris describes Chester as a “genuine border region” with close links to the University of Liverpool
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and Manchester University, as well as Wales and Ireland. It is also ideally located between the areas of heavy manufacturing – such as the Vauxhall car plant, Shell oil refinery and Broughton Aerospace factory – and the service industry, which is apparent in the city’s strong banking sector. About 9,000 people are employed in Chester’s finance sector, boasting the likes of Dresdner Bank, HSBC, and Bank of America, which Prof Harris says is probably the city’s biggest employer. “The whole of the European credit card industry is run from Chester. It’s one of the key businesses in the North West and if it has got an epicentre it’s Chester. “If you look at Chester as a city, it comprises 91% of services, so we are, naturally, going to be more servicefocused than other cities.” He added: “We have also got a long history of quality public service in terms of engaging with councils and
organisations. For many years we have delivered the MBA for Liverpool City Council.” Chris Pyke, associate dean and head of Chester Business School, added: “They’re bespoke MBAs. We find out what clients want. We’re not taking something off the shelf.” The business school also works with Wirral Borough Council among others, providing MBAs and Masters programmes and their equivalents to provide better Masters qualifications in innovation. Prof Harris said even though the public sector is undergoing cuts, and could suffer even more post-general election, the university fares well in this sector: “Even though there are reductions in those areas, the fact that we are relatively innovative means we’re picking up business. “A lot of us were saddened during the party political conferences that the emphasis was on how big the cuts were going to be from all parties, rather than creativity.
“A lot of people have been watching X-Factor too much – how deep will my cuts be? “It is a bit sad because you need to be creative to create wealth and surely the emphasis should be on wealth creation? We don’t mind helping people make savings, but you have to create things.” Dr Peter Drucker, the German management author who died last year, said: “Business is about innovation and marketing – all other aspects of business are cost.” Prof Harris said: “If you move away from that, everything is going to be ‘slash, shopping out, get rid’ and you move away from what the heart of it is about.” The school has also built up strong links with local businesses which are essential to deliver “coal face” experiences for students. Mr Pyke said: “We place a strong emphasis on employability skills. “All our undergraduates do a work placement over six weeks in their
second year which is quite unique – that is over 1,000 business placements every year. “We put students into small businesses or large businesses, matching students where they have a particular interest to get general business management experience.” Despite the rigours of the recession, Prof Harris said the appetite for placements in businesses was still strong. “We get the opposite to resistance from businesses. People aren’t using placements to fill cheap labour gaps, which was the fear about 20 years ago. It is part of the schedule.” Prof Harris, who has authored the Penguin Dictionary of Marketing, previously worked in the food, chemical and media industries and was responsible for organising placements. He said: “It was one of the reasons for becoming an academic. We try to stimulate and develop people.” Mr Pyke added: “We have links
EDUCATION
right mix in ‘credit card’ city
head Prof Phil Harris explains to Neil Hodgson how exciting new projects will shape its next decade
small firms and big financial players alike with all local businesses large and small, and have no problems getting testimonials from employers saying the students brought fresh thinking to the business and do a great job.” The relationship works both ways and many businesses are only too happy to discuss their expertise and experience with students. Prof Harris explained: “Moneysupermarket.com come here and share their knowledge on network-based businesses. “We have some people who are serious players in business in the region who are giving us advice, not just coming along to watch.” Despite fears that businesses and managers would retrench during the recession, the business school reports particularly healthy growth in its full-time and part-time MBAs. Mr Pyke revealed: “Postgrad recruitment has doubled this year. Businesses see the recession as an opportunity to reskill and retrain. They want to keep their best staff
Prof Phil Harris, executive dean of the University of Chester Business School
and we are reaping the benefits of that, to be honest.” Prof Harris added: “Part-time numbers have gone up as people retrain and re-tool. We launched a Doctorate in Business Administration and we already have a cluster of people doing that. “It’s nice to see that uptake. We have people who run major charities with turnovers well into six and seven figures and people from creative industries and a range of smaller to medium-sized businesses, so that’s showing us a fair bit of diversity.” The Warrington campus at Padgate is also expected to contribute to the business school’s expansion. Formerly part of Manchester University, it delivers about 10% of business school services. But its focus on the digital media and creative sectors should benefit from the opening of Salford’s Media City in two years, which will be
Chris Pyke driven by the relocation of the BBC’s sports, children’s and Radio 5 operations from London. Back in Chester, a major innovation is a centre for labour market development which will identify skills gaps across the region and how
universities can respond to them. Mr Pyke explained: “There’s a centre called Time and Experience, funded by the Northwest Development Agency, to facilitate the engagement of recently retired professionals and managers to come back and offer their time and experience to other businesses. “We prolong their contribution and economic activity to the region.” International activity is also high up the agenda, revealed Prof Harris: “We have brought in a set of measures designed to up-skill people and they are attracting international students. “We are less dependent on internationalisation and at the moment we have a low proportion of international students, but that is only probably because of where we started from. “It allows us to choose which countries and universities we are dealing with. “We are developing links with
India and are in discussions with a number of good institutions in China and eastern Europe. Georgia has been good for recruitment for us.” He believes some establishments have become over-dependent on overseas students, but added: “You can’t do business without being aware of the international scene, so provided it is in that place, we are comfortable. But it has to benefit us and our community.” However, the most recent focus is on policy and public affairs. Prof Harris explained: “It is thinking through policy: how it affects businesses and how business affects policy. “Take, for example, Vauxhall and how we can make sure the area is doing all in its power to retain as many jobs, rather than just sit and watch. “We want to be more proactive on our watch and on our patch. We can’t save the world, but maybe we can make a difference.”
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THE NETWORKER
THE BUSINESS LIST Tuesday, December 15
Two linked events on trading internationally are being held by Liverpool Chamber of Commerce at Old Hall Street. Paul Gilbert, of Camac Interlink, will be doing a presentation on the Baltics to the Balkans from 10am-1pm. After lunch, Keith Lewis, of Keith Lewis Associates, will look at trading with the USA from 2pm-4pm. Companies can attend one or both. To book, call 0151 227 1234.
Wednesday, December 16 West Cheshire & North Wales Chamber of Commerce is holding its Christmas lunch at Chester’s Queen Hotel. It starts with a drinks reception, followed by a two-course festive lunch with a glass of wine. It is from 12pm-2.30pm and costs £25.30 members / £27.03 non-members. For more information, call 01244 669988.
Wednesday, December 16 Liverpool Chamber of Commerce’s Christmas platform lunch is at Zeligs, Thomas Steers Way, Liverpool One. A two-course lunch with wine will be served at 1pm. It costs £25 members and £30 non-members. To book, call 0151 227 1234.
Friday, December 18 Daresbury business breakfast networking is being held at the Innovation Centre on Daresbury SIC. It starts at 8am and is described as “no heavy speeches, no presentations, just a relaxed, informal but high-intensity sharing of knowledge”. For more information, visit http://tinyurl.com/fri18dec
Tuesday, January 19 Malmaison Liverpool is the venue for Liverpool Chamber of Commerce’s first platform lunch of 2010. The monthly event allows members the opportunity to meet and talk to other members about their products and services. It starts at 12.15pm-2.30pm and costs £25 for members and £30 for non-members. To book, call 0151 227 1234.
TUESDAY, DECEMBER 15/ HALTON WOMEN IN BUSINESS BUSINESS skills and fashion design come under the spotlight at the latest lunchtime meeting of Halton Women in Business. Organised by Halton Chamber of Commerce and Enterprise, the networking event is open to all businesswomen in the Halton area. Jill Corkish, director of business efficiency consultancy Elmbrook Solutions, Chris Lincoln from The Heath School and fashion designer, Natalie Beard, who runs Love Frocks, will speak. The December networking meeting is at Orchard Restaurant, The Heath Business and Technical Park, in Runcorn. Halton Women in Business brings together female entrepreneurs and guest speakers, providing an opportunity to develop and promote their companies. The event, which includes a light festive lunch, is from 12pm-2pm. It is free to members of Halton Chamber and £10 for non-members. To book, email Nicola Holland at nicolah@ haltonchamber.com or ring 01928 516142.
Natalie Beard, owner of Love Frocks, will speak at December’s Halton Women in Business event
Wednesday, January 20 The Response to Redundancy programme can assist a company’s training and development needs to help with the challenges of the current economic climate. Knowsley Chamber is holding a business lunch at Knowsley Community College from 11.30am-2pm. It is free for members and £11.50 for non-members. For details, call 0151 477 1356.
Thursday, January 21
Novotel Liverpool
Business After Hours, an informal networking event, is at Novotel Liverpool, Hanover Street, from 5.30pm-7.30pm. Novotel is opening its pool and gym exclusively on the night for Liverpool Chamber members. It costs £10 for members and £15 for non-members.
Liverpool Chamber’s Christmas lunch is at Zeligs, Liverpool One
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THE NETWORKER
BUSINESS LUNCH Stobart’s Steve O’Connor tells Alex Turner about his journey, over a long lunch at the Exchange Restaurant UCH like a referee at a football match, the food at a business lunch is there just to make everything run smoothly, and the very good ones are often hardly noticed at all. The team at the Exchange Restaurant within the new Hilton Liverpool, led by manager Gerard Bellis, was attentive without being obtrusive, while the restaurant itself provided a quiet backdrop, albeit slightly lacking in character. Over an informal lunch, Steve O’Connor – executive director of Stobart Group, chairman of Widnes Vikings rugby league club and builder of a 17,000 sq ft house that is breathtaking in its complexity – took me on a journey that is anchored in Widnes, but takes in Wembley, Singapore, Rotterdam, South America and Istanbul along the way. But the food at Exchange is less-well travelled, executive chef Matthew Burns ensuring it is sourced locally where possible. O’Connor started with a leek and watercress soup – the verdict being “I would definitely order it again” – while I had a nice feta cheese salad. “Enough penne pasta for the two of us” arrived for my vegetarian guest, who didn’t want to be critical, but thought it could have been hotter and more al dente. My North West smoked fish platter was really enjoyable, with the Morecambe Bay shrimps and the beetroot horseradish, in particular, standing out. It was washed down with a couple of soft drinks, and then a small glass of Pinot Grigio and a coffee, as O’Connor’s journey headed towards the Bosphorus river. The combination of his career in freight handling and his fanatical support of Liverpool FC, you would have thought, would have made O’Connor an ideal travelling companion to go with to the 2005 Champions League final in Istanbul. But his plan stretched no further than buying match tickets and getting the cross-channel ferry on Sunday morning with the plan to drive to Turkey. At Calais alongside his non-driving brother – and with the assistance of Dennis Bergkamp’s brother, who was returning from Arsenal’s FA Cup Final win over Manchester United – he took out a map of Europe and laid it out across the bonnet and started plotting a route. He said: “I circled Calais on the map, put another circle at Istanbul and had a look at the best way to go. I
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was trying to remember where I’d seen Kate Adie reporting from recently, whether it was Serbia or Macedonia, so I could pick the best route.” They arrived in plenty of time for the game and to witness an unforgettable victory, but leaving straight after the Wednesday night match (“I was trying to get back for the homecoming on Friday”, he said) proved to be trickier. “Coming back through Serbia, we’d run out of sterling and euros, nowhere took credit cards and nowhere would take Turkish currency, which we had pocket-loads of,” he said. “And we didn’t have enough fuel to get to Austria, where our cards would work. “But from the border we had been having banter with some guys wearing Milan shirts. It turns out they were Bulgarian Liverpool fans who had swapped shirts. “When we stopped, I tried to explain our problem, offering my shirt to trade. I was thinking what else I had, and was considering the spare tyre. “But they had a whip-round and got together 55 euros, which was basically all they had and handed it over, asking only that we send them a real Liverpool shirt from the club shop when we got home. It was quite a leap of faith for them ” The Bulgarian Samaritans have since been his guests for a Liverpool game, and they have now met several times at European away games. But the reason for the tale was more to provide an illustration of the bond that sport creates – a theme that has become more important since he rescued Rugby League club Widnes Vikings from administration and possible extinction in 2007. The motivation for his investment – “the administrator was looking for £250,000,” he said, “But he never said it would need £250,000 every few months” – was because the town had been good to him and his family, and he wanted to put something back. In fact, the reason he drove to Istanbul was because his father drove trucks, sometimes as far as Oman, and, as children, Istanbul had become “like a never-never land, it seemed so far away”. His father, Brian, was not just a trucker, founding his own eponymous haulage firm in 1970 in Widnes. Under the stewardship of the second generation, O’Connor’s was sold in 2007 to property group Westbury for £23m, which saw the firm effectively
Executive chef Matthew Burns hard at work in his kitchen at the Hilton hotel, in Liverpool One merged with Eddie Stobart to create Stobart Group. In the year to February, 2009, the company turned over £431m and has serious plans to double that within five years. Part of that growth will come in the booming environmental sector, with Stobart keen to stress its credentials. That is partly through efficient logistics – its trucks are, on average, 84% full, aided by its model of moving its trucks not from A to B to A, but from A to B to C to D – but also because
of a commitment to moving more freight by rail, as well as taking back waste packaging for recycling. O’Connor’s enthusiasm for the environment is also built in to his new home, which is a few weeks away from completion. It will have taken a year to build the luxury house, which is built into a hillside and comes complete with its own deep borehole water supply, bio-fuelled electricity generation and a waste water treatment plant. But, while he is keen to minimise his carbon footprint, the 44-year-old is determined to make sure he leaves his mark. Which brought him back to the Vikings, who are in pole position to be awarded a Super League licence in 2011. Based at the Stobart Stadium Halton, he has headed a commendably smooth transition from crisis club to community club,
Steve O’Connor
where the facilities benefit the town and the players provide role models in an area that has large pockets of low ambition and attainment. But his plans don’t just stop at being able to dine at the sport’s top table, he wants to create a team that can lift the whole town and make it proud again. He said: “When I was at Wembley for the Challenge Cup Final, I told Richard Lewis [the executive chairman of the Rugby Football League] that I would bring my team to the final. “And I will, I will take Widnes to Wembley.”
DETAILS Exchange Restaurant Hilton Liverpool Liverpool One L1 8LW Tel: 0151 708 4200 Cost: £46.30
SOCIAL DIARY THE NETWORKER
Guests Glen and Robert Gittins at the Wirral Witches Ball, at the Thornton Hall Hotel
Compere Willy Miller with David Pike, and Wirral Witches Mandy Molby and Jane Kirkham, at the Ball, at the Thornton Hall Hotel
CAROLYN HUGHES THORNTON Hall Hotel and Spa was the setting for the annual Wirral Witches (Women in Touch with Claire House) Ball recently. Over 250 guests raised over £40,000 to help support Claire House on the Wirral. Hosted by Willy Miller the glitzy event proved to be a fantastic affair. Fabulous “money can’t buy auction prizes” included a tour of the Hollyoaks set and dinner cooked in your own home by London Carriage Works Patron/Chef Paul Askew. ■ CONGRATULATIONS to the team at the Liverpool Dental Spa who last week won Best Dental Team in the North-West and Best Dental Team in the UK at the National Dentistry Awards in Leicester. The award-winning team are
due to open a flagship practice soon in Brunswick Street. ■ LIVERPOOL law firm DWF brought some winter cheer to clients with a drinks reception at the Ramada Hotel in Southport, hosted by the firm’s family law team. Around 60 guests mingled over a few glasses of fizz to the strains of a Beatles tribute band. The winter drinks were in aid of Alder Hey Hospital. ■ AND finally, thanks to everyone who supported the Carolyn Hughes PR Charity Christmas Lunch recently in aid of Claire House. The Photo Booth, complete with a host of fancy dress costumes, made the afternoon a riotous affair, raising over £2,000 for Wirral Witches
Jane Kirkham and Mandy Molby show off their fancy dress costumes at the Carolyn Hughes PR Charity Christmas Lunch Park Group chairman Peter Johnson, and Katie Johnson, at the Wirral Witches Ball
Radio City presenter Simon Ross, sporting a Shirley Temple wig, with Bridgette Corrigan at the Carolyn Hughes PR Charity Christmas Lunch
Charlotte May and Catherine Atkinson, of the Liverpool Dental Spa, at the National Dentistry Awards
At the DWF drinks reception, from left, David Pickering, of DWF, with Lesley Beattie and Kevin Gillibrand, of Fraser Wealth Management, and Susan Barratt, of DWF
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THE NETWORKER
BILL GLEESON . . . in which our hero takes sanctuary on a cold winter’s night and meets a Russian aristocrat who has found exile in our midst IVERPOOL’S Anglican Cathedral is a wonderful building that would grace any city in the world. So it was very nice to receive an invitation to Liverpool Chamber of Commerce’s annual black-tie dinner, which took place there last month. The choice of venue marked a change in style for the Chamber, which has in the past entertained its guests at Aintree Racecourse. I was a little bit curious about the willingness of the Church of England to permit a place of solemn worship to be used for a night of boozy festivities, but I guess the Chamber crowd aren’t likely to commit too many deadly sins in the aisles, even when tipsy. If they did, I saw no sign of it. Indeed, the Bishop of Liverpool and the Dean of the Cathedral were both in attendance to keep an eye on matters. You can’t blame the Church for trying to raise money through commercial activities like venue hire. Despite their direct line to the
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Almighty, the Church has not been immune from the ravages of the credit crunch and attendant recession. Investment returns are down, meaning the clergy’s pension fund is every bit as much in the red as everybody else’s. I’d wager that donations on the collection plate are also down. These factors have a big knock-on effect on Church finances and the deficit has to be made up somehow. The setting was magnificent. The towering stone structure and stained glass windows were lit up and aweinspiring. I guess that’s the point of cathedral architecture. The event itself was a success. The food was good, with hearty portions, which is not something you can always say about such dinners. The assembled throng of 500 guests, a good turn-out, heard from the keynote speaker, Marks & Spencer executive chairman Sir Stuart Rose, who preached at us about the good work his company is doing for the environment. Did you know M&S shoppers use 80% fewer plastic bags than they used to? We also heard from Lord Derby, the honorary president of the Chamber, who told us how he is
Sir Stuart Rose, right, with Liverpool Lord Mayor Cllr Mike Storey, at Liverpool Chamber of Commerce’s annual dinner
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trying to cut his carbon footprint at both Knowsley Safari Park and his nearby family seat by installing wind turbines. But the best bit of the evening was making the acquaintance of somebody who is new to town, Countess Dea Sakalova. I say Countess, as that’s what she calls herself, and she is able to trace her ancestry back to Russian royalty. She had invited me to join the table she was hosting, which included an impressive array of Chinese diplomats. I was tempted to accept, but couldn’t as I had already accepted the invite from the Chamber, and it would have been bad form to switch. I found the Countess dancing to the musical entertainment provided by a lively string quartet going by the name of Blayz. She was evidently enjoying herself and seemed to take an immediate liking to me, clutching hold of my hand. She told me she has recently moved to Liverpool because she was so inspired by Neptune’s Mann Island cheese-wedge development. She is waiting for the construction work to finish before actually buying one, but has every intention of moving in. There is, however, a big drawback with using the Cathedral in winter. Its a very big space to heat, and as I mentioned earlier, the church is short of money. I was sat next to a giant blow heater that blew gusts of hot air at me all night long. So I was nice and warm, but I came away at the end of the night with an interesting new hair-style. Thing is, though, those farther away from the heater didn’t get any of the benefit and several complained to me about the cold. And then there was the draught. Someone, somewhere, had left a door open. As a result, the huge table candles, donated by Liverpool-based church suppliers Hayes & Finch, were dripping all over the place. I spent a large part of the evening speaking to Angie Robinson, chief executive of Greater Manchester Chamber of Commerce. She regaled me with tales of how well things were going down the M62 and how excited they all are about Media City, currently being fitted out in Salford. Once completed next year, the development will house Radio 5 Live and other BBC departments. Despite the odd disadvantage, the Cathedral is an impressive venue. So much so, in fact, the Daily Post intends to stage its next Regional Business Awards dinner there – in May. More about that nearer the time. Suffice to say, the venue makes a great alternative to St George’s Hall.
The smaller, the better
A good education starts from an early age. At Merchant Taylors’ Schools, we take pride in the fact that children who join our schools from four years of age get the best from our high educational standards. They also learn that education is fun. Of course, it’s not all about the academic achievements, children also benefit from excellent facilities, sporting activities, drama and exciting trips. To find out more about our excellent learning environment, please give us a call. Open Day Every Day Come along and see why we are one of the North West’s leading independent day schools for boys and girls aged 4 –18.
ENTRANCE EXAMINATION Monday 1st February 2010
Extensive school bus service (12 routes) available throughout the North West. A Level Results 2009 Boys and Girls combined: 80% A B grades with 12 pupils into Oxford and Cambridge Mixed Infants and Junior Girls 0151 924 1506 Senior Girls 0151 932 2414 Boys’ Schools 0151 949 9333
www.merchanttaylors.com The Best Education For Life
The Merchant Taylors’ Schools, Crosby: a company limited by guarantee in England: Company Number: 6654276. Registered office: Liverpool Road, Crosby, Liverpool L23 0QP. Registered Charity Number: 1125485.
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