Family Matters Francis Clark by DCMedia

FAMILY MATTERS

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In association with

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ProďŹ les and advice on how to grow your Family Business

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GROWTHACCELERATOR COACHING

GrowthAccelerator Coaching explained Alongside the Growth Voucher Scheme, which is aimed at assessing the impact of advice on small businesses, the Government is also backing a GrowthAccelerator programme. This is a service led by some of the country's most successful growth specialists and designed to help businesses with growth potential to access “new connections, new routes to investment, and the new ideas and strategy they will need for their business to achieve its full potential”. Engaging with the scheme using Francis Clark to provide Leadership and Management Training

GrowthAccelerator exclusively targets high growth businesses who want to enter their next growth phase and have the potential and determination to get there.

How the Scheme works ■ It identifies businesses’ priorities for growth including the capacity to grow, barriers holding growth back and potential for growth. ■ It helps develop a bespoke growth plan. ■ It helps to appoint a ‘Growth Coach’ matched to the needs of your business.

The Scheme in summary

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If a client signs up to the GrowthAccelerator programme they can potentially have: ■ Coaching or suppor t (valued at £3,500 exc VAT) – this could be on financial management, access to finance, sales & marketing etc; and ■ Subsidised “Leadership and Management training” – this could be on financial projections and up to £2,000 per Senior Employee on a matched funded basis. The coaching element has to be delivered by a Coach registered under the scheme. There is no such restriction for the Leader and Management Training.

Eligibility and costs To be eligible for GrowthAccelerator, businesses must be registered in the UK and based in England, have fewer than 250 employees with a turnover of less than £40m. The companies must be able to demonstrate ability to grow (previously there was a requirement to double profit in the next two years, but this has been relaxed). There is a cost to the coaching side of the service which is dependent on the number of employees of the company: No of employees

Cost

1-4

£600 plus £700 VAT*

5-49

£1500 plus £700 VAT*

50-250

£3000 plus £700 VAT*

* Government grants cannot subsidise VAT, therefore the VAT payable is the same regardless of the number of employees and is based on the ‘value’ of the service, which is £3,500, resulting in £700 VAT.

Engaging with the scheme using Francis Clark as Coach F rancis Clark has a registered GrowthAccelerator Coach and, as an example, we have been working with one company that is looking to relocate to support their planned growth. This assignment has included coaching the Directors with the following: ■ Developing a three year finance strategy to support growth. ■ Looking to define KPI’s and a set of measurements to retain control of cashflow and reduction of costs and overheads. ■ Reviewing cash management systems to ensure they were future proof taking into consideration planned growth and expansion. ■ Considering the skills required in the team in order to develop an org anisational structure. ■ Outlining roles and responsibilities to enable growth. ■ Reviewing any “Leadership and Management” training needs. ■ Coaching the Management team through a planned relocation which will enable continuation of service throughout the move. ■ Defining a strategy for succession planning which considers routes to exit, timings, company structure and future aspirations of the management team. ■ Coaching the management team on any processes or actions that need to be put into place to achieve their desired outcome and align overall strategy with the business owners’ wants and needs.

In one case we delivered a substantial Financial Projections and Management Information System assignment to a South West business that had appointed a GrowthAccelerator Coach. As their management team consisted of four senior employees, the work was costed at £8,000 plus VAT and was subsidised to a cost to the company of £4,000 plus VAT under the Leadership and Management element of the scheme. Here, the coaching was for production costing, so the complete package should leave the company with enhanced inhouse financial capability to manage their growth ambitions. Francis Clark partner, Paul Butler, and local GrowthAccelerator representative, Yvette Coles, hold regular clinics where businesses can learn more about the scheme and what it can potentially add to their business.

Help and advice is on hand Paul Butler said: “Over 15,000 businesses are already benefiting from GrowthAccelerator and we would encourage any ambitious business to consider how it can help them realise their full potential. “GrowthAccelerator will get to the heart of the barriers that are holding business back and help identify the critical steps needed to be taken to achieve the next phase of growth – rapidly and sustainably. “According to the Department of Business, Innovation and Skills, businesses that seek external advice and information are 14 per cent more ambitious and 50 per cent more successful than those that do not, so it is definitely worth investigating.” For further information contact Paul Butler partner at Francis Clark LLP Telephone: 01803 320100 E-mail: paul.butler@francisclark.co.uk More information is available at www.francisclark.co.uk

Family matters

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WELCOME TO THE FAMILY BUSINESS GUIDE

The Family Business Team are here to help

Advice and support

EDITOR: Jim Parker

FRANCIS CLARK: The Torquay Family Business team, from the left, John Rowe, Chris Hicks, Andrew Squires, Richard Hussey and Paul Butler

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AROUND two-thirds of all businesses in the UK are family owned and managed and the contribution they make to the economy is vast. Based on the latest report by the Institute of Family Business, the three million UK family businesses, predominantly comprised of small and medium-sized enterprises (SMEs), provide some 9.2 million jobs or 40 per cent of all private sector employment. However, despite the part that family businesses play in the UK economy, it is alarming to find out that so few of them are passed on through the generations. Surveys reveal that only 30 per cent of family businesses survived to the second generation and 10 per cent into a third. The average life expectancy of a family business is only 24 years. The South West probably has a greater concentration of family owned business than many other parts of the UK and the impact they have on the regional economy is every bit as significant. In fact, it is no exaggeration to suggest they are the lifeblood of the regional economy and should be provided with as much help as possible to

prosper, grow and survive the generations. The Government can do its bit by cutting burdensome red tape, continuing with a low corporation tax regime, providing tax incentives and ensuring that taxation policy does not penalise or hamper succession and the transfer of ownership. At Francis Clark, we have long recognised the value of family businesses and we act for many across the region supporting them in a variety of ways

over and above the provision of accounts, audit and award-winning tax advice. This includes recognising and dealing with the dynamics of a family business which introduces a whole new level of complexity not experienced by non-family enterprises. Family and business are two very different and often conflicting forms of organisation. Long term planning is important for family tensions and conflicts to be minimised, including inev-

Resilience and commitment ALTHOUGH every family business is different, there are clearly common threads in their reasons why this business structure is effective – trust, confidence, loyalty and mutual support are recurring themes when talking to owner/managers and these sentiments are often reciprocated by employees who have “become part of the family” and are assured that their well being is a big part of a family enterprise philosophy. Resilience and a commitment to hanging on to what you and your family have worked for may go a long way to explaining why so many local family businesses survived the recession less damaged than their non family enterprise counterparts.

itable inter-generational differences, and to ensure successful succession and exit strategies are in place. These conflicts between the family and the business arise because there are effectively two different systems. On the one hand the family is a socialistic system with emotion, relationship and love whereas the business is a more capitalistic system which is rational and in many cases money focussed. Many of the issues that affect family businesses are discussed on Pages 12&13 of this supplement and they include succession and family dynamics; mediation and conflict resolution; corporate governance; estate administrat i o n ; bu y - s e l l a g re e m e n t s ; e x i t strategies; intergenerational differences; business valuations and remunerating your long-term employees. We also discuss on Page 12 the benefits of developing a family constitution which can provide an agreed basis on which the business will be run and owned in the future.

THE Herald Express prides itself on being at the heart of the community in South Devon, especially when it comes to business and what and who makes our area ‘tick’ and fit for the 21st century. That is why we are delighted and honoured to be working with leading chartered accountants Francis Clark in this special and unique supplement. It focuses on family businesses, firms who have managed to survive and, more importantly, thrive in some pretty tough times out in the South Devon market place by literally keeping it in the family. The importance of family businesses cannot be under-estimated, although they are sometimes taken for granted. You will see statistics here that show that three million family firms nationwide – mostly small end medium-sized enterprises – employ a staggering 9.2 million people or 40 per cent of those in work in the private sector. Millions and millions of pounds business will have been generated by them. Family firms are key to South Devon’s future prosperity and have been for generations. The area is littered with companies who have been out there for decades, starting with virtually nothing but growing to become successful, wellestablished and wellknown names in their particular field. This supplement features and salutes many of them. It also offers some advice and guidance to make sure keeping it the family can be a catalyst for further success in the future.

Family matters

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FRANCIS CLARK: FAMILY MATTERS

Effective communication Chris Hicks

Key to a successful family business

Partner at Francis Clark LLP WHAT happens when mum and dad want to retain wealth, cash and reserves for security in their retirement while the next generation want to take more risks, invest more in the business and be ambitious to secure their own future? As with most things in life, there is a balance to be had. However, there are numerous solutions to keep parties happy, all of which simply require effective communication and a business structure to allow both security and the opportunity to take risks. Communication in a family business can be a struggle when board meetings are held over the breakfast table and important information isn’t always freely shared. My experience is that most conflict in family business comes from a lack of communication in one way or another, and this can be minimised by implementing a few simple changes. I suggest creating a structure to have defined meetings, at least quarterly, with an agenda and minutes/ action points circulated shortly afterwards. The meeting itself doesn’t have to be a formal affair, but it does give clarity about what has happened and what needs to happen. It is also worth considering an independent chair or facilitator for such meetings, to keep discussions in line with the agenda, offer expert opinion where required, and possibly - carefully - raise the questions others might not want to face. This person may also act as mediator in difficult situations. In terms of security versus risk, a business reconstruction can be a very tax-efficient way to achieve the best for all parties: it can be used to protect the majority of valuable business assets from the possible risks of expanding or diversifying. By transferring assets out of the trading company or by operating new trades as subsidiaries of the trading company the gaps between varying needs of different generations can be plugged. Control of certain parts of the operation can be tailored to provide protection for one party and management responsibility for another. However, as well as the family dynamics there are likely to be commercial and tax implications so of course any such action should not be taken without professional advice. Of course the flexibility of a reconstructed business doesn't just apply where there are age differentials in a family business; deciding where assets sit/who controls what is sensible risk mitigation in all businesses. For further information Telephone: 01803 320100 Email: chris.hicks@francisclark.co.uk

Francis Clark has offices in Exeter, Plymouth, Salisbury, Taunton, Tavistock, Torquay and Truro. More information is available at www.francisclark.co.uk

FAMILY businesses are the backbone of our local economy. Culture and family values give them an advantage over their non-family run competitors. The key to family business success is being able to set rules to keep personal issues aside. It is common but not necessarily most productive when family business decisions get made around the breakfast table! It might be worth considering the following 10 points to ensure the success of your family business 1) Don’t always consider dealing with the family first to ensure business success. If you don’t take care of the business, the business can’t take care of the family. 2) Set boundaries to limit business discussions outside of work. Mixing business, personal and home life can lead to conflict that is detrimental to business success. 3) Establish weekly meetings where personal and family matters are set aside. This helps to focus the attention on the core business objectives. A strict agenda is important in facilitating productive meetings. 4) Don’t provide ‘sympathy’ jobs for family members. It is important that each family member adds value to the business and works at a level that is aligned with their current skill base. 5) Understanding the advantages of family

John Rowe Partner at Francis Clark LLP ownership is key to success. Customers are very often drawn to using family businesses because of their culture and togetherness. 6) Define clear management reporting lines in the business. I see many instances where family members feel that they can reprimand employees who do not report to them. 7) Clearly define each family member’s role and put this in writing. This should be dealt with like any other business relationship. 8) Seek to ensure that family members that are looking to join the business have suitable outside experience first. This helps them to gain valuable experience on how business works outside of the family business environment. 9) Be open-minded to seeking outside advice. Family businesses at times can be too

closed and seeking outside advice can help to facilitate fresh ideas and creative thinking. Outside facilitators can also help to make the working relationships of family members more productive. 10) Treat family members fairly. Many experts advise against hiring family members. I have the opposite view to this. Family members tend to have an affiliation and affection for the business. This means that they have an energy and enthusiasm for the success of the business that previous generations have spent years building. It is important though to ensure that there is not favouritism. Pay levels, progression, expectation, criticism and praise should be even-handed between family and non-family employees. Remember to not set standards higher or lower for family members than others. Family businesses must understand that they have an advantage of family workforce that is dedicated to ensuring the future success that previous generations have put their blood, sweat and tears into developing. For further information Telephone: 01803 320100 Email: john.rowe@francisclark.co.uk

Family matters

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Thursday, September 11, 2014

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FRANCIS CLARK: FAMILY MATTERS

Succession – doing it for the kids? Richard Hussey Partner at Francis Clark LLP

JOHN LEWIS: Exeter store

Is the John Lewis model a viable option for family succession? JOHN Lewis is a business that most people respect. It has thrived during the recession, driven by a visionary and successful way of doing business, putting the happiness of its employees at the centre of everything it does. When founder John Spedan Lewis set up the business he created a governance system that allowed the business to stay ahead in a competitive industry, and giving every employee a voice in the business they co-own. New tax rules regarding Employee Ownership came into force in the 2014 Finance Bill. These rules now mean that families can sell their businesses to an employee ownership trust (EOT) without having to pay capital gains tax. It also allows bonus payments to staff of EOT owned businesses to be exempt from income tax up to a cap of £3,600 per employee per annum (representing a maximum £1,620 income tax saving for additional rate tax payers). The trend towards using this alternative business structure has gathered pace over the last few years. This will surely continue with the new incentives on offer and as businesses become more

outgoing owner. It may well make the painful decision of leaving a business that they have dedicated their lives to easier to face.

Andrew Squires Partner at Francis Clark LLP attuned to the impact an engaged workforce can have on profitability. For many family businesses succession is a major issue that they fail to face up to. This is often because the next generation of family members are either not natural heirs to the throne, or they are not interested in running the family firm. Family business owners often see no way of realising the true value of their business whilst safeguarding jobs and creating conditions for future growth. The option to sell to the employees is a way to preserve what is unique and special about the business, and to ensure that the company can be run by people who share the values and vision of the

The Government wants employee ownership to enter ‘the bloodstream of the British economy’. The new measures introduced provide incentives for growth of the employee ownership sector by promoting awareness of the sector and increasing the attractiveness of indirect employee ownership structures for business. It is estimated that employee owned businesses could provide 10 per cent of UK GDP by 2020. With the good news stories generated from John Lewis’ success, research pointing to employee ownership increasing workers wellbeing and productivity, and the benefits of the tax incentives on offer we expect to see many more companies looking to this alternative business structure to solve their family succession dilemma. For further information Telephone: 01803 320100 Email: andrew.squires@francisclark.co.uk

I HAD the pleasure at the recent Annual Business Guide Launch of hearing Martin Thatcher, a fourth generation owner of Thatchers Cider, speaking about the interesting subject of succession in a family business. Martin related the funny story of how he came home to hear his children aged 14 and 11 arguing. When quizzed the children said they were arguing over who would be the next MD of the family business. Whilst this is funny when the children are so young, it does show how deep rooted family businesses are to all family members of all ages, be they working in the business or not. Thatchers is lucky in that it is within the five per cent of UK family owned businesses that make it to the fourth generation. Is this luck or have they effectively managed succession from generation to generation? The transition from one generation to the next is often difficult, can lead to conflict, and can ultimately lead to the failure of the business. It is important to deal with succession early and in an open and inclusive manner. Succession planning is a long-term process and should happen before the current generation of owner managers plan to step down. If dealt with well it can avoid a lot of conflict that can arise when the current owner hangs on as others try to takeover. This can make the next generation feel overshadowed and frustrated. If you are thinking about passing the business to the next generation the succession plan needs to get the right balance between the family, the business and you. Answering some basic questions will help put a succession plan in writing. This helps family members and non-family management to know where they stand and the process and timescales that will ensue. ■ Does the next generation have the skills to run the business? ■ How do you choose which of the siblings should be MD? ■ Do the children want the job or do they feel obligated to follow their parent’s footsteps? ■ Are you financially secure enough to step away from the business without receiving value for your shares? ■ Is appointing a non-family member to run the business a realistic option? ■ Are you ready to relinquish control of the business you have spent your working life running? Successors need the necessary skills to run the business when the transition happens. Martin Thatcher explained in his story that his children are already taking an active interest and involvement in what he does in the business. Children such as Martin’s are not entering a formal business training programme but nevertheless this is what they will receive. Research shows that young children thrive on being involved with their parents’ business. The reality of succession planning is that it is a hard and often frustrating and emotional journey but with good planning and a clear vision of the skills the succeeding generation need to run the business there is certainly a way forward. Martin Thatcher and his predecessors will vouch for that! For further information Telephone: 01803 320100 Email: richard.hussey@francisclark.co.uk

Francis Clark has offices in Exeter, Plymouth, Salisbury, Taunton, Tavistock, Torquay and Truro. More information is available at www.francisclark.co.uk

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Thursday, September 11, 2014

HERALD EXPRESS

LEISURE

Attraction celebrates 25 years in business Pennywell Farm

THE owners of Pennywell Farm, near Buckfastleigh, are determined to keep the ‘family’ in family business after 25 years of farm attraction success. As Chris and Nicky Murray celebrate Pennywell’s Silver Anniversary, they are looking to their three children to take Pennywell into the next 25 years. Pennywell opened its doors on May 22, 1989 when their first son Angus was just 20 days old. Having turned 25 this year, he is spending more time in the family business, overseeing projects and experiencing every aspect of the day to day running. With a degree in Building Surveying and the Environment, competitive surfer, Angus has spent the last eight months project managing a Pennywell Café extension, gaining planning permission for a new campsite adjacent to the farm, as well as upgrading staff accommodation. He is currently creating a new site suitable for weddings and corporate events. Since his teens Angus has worked seasonally at Penny-

well running the café, tractor driving and helping wherever needed. This has been combined in recent years with regular stints away to exotic locations like Costa Rica, Morocco, Portugal and of course Polzeath to pursue his love of surfing, a love that saw him take fifth place in the British Longboard Championships. Pennywell’s 25th birthday wasn’t the only party on the farm this year as the Murray’s daughter Hetti, 23 married Ben Hayden, also 23, in July. They held their reception on the farm as they wouldn’t consider anywhere else. Hetti is currently teaching PE in Guilford but although she is not living locally at the moment, mum Nicky is confident that the joint expertise of the couple could be utilised in Pennywell’s future. She explained: “Hetti loves Devon and Pennywell; it’s simply in her blood. The skills she has acquired as a teacher are invaluable and although a city boy at heart, Pennywell has opened a whole new world for Ben. Having worked for a London media agency he would

PENNYWELL FARM: Chris Murray

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PENNYWELL FARM: Angus, Hetti with new husband Ben, Nicky, Chris and Sebastian at the wedding be a huge asset for our marketing department.” Their youngest child, Sebastian, 20, is the ‘real farmer’ of the family, studying for a BSC in Agriculture at the Royal Agr i c u l t u r a l U n iv e r s i t y i n Cirencester. He currently has a micro system set up for the production of algae to use as bio fuel in his university bedroom! During the busy summer holidays, the whole family were around to help on the farm with

Angus serving in the café, Hetti and Ben meeting and greeting the visitors and Sebastian driving the tractor and trailer ride. Chris Murray is confident that between them all they have

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potential to be at the heart of a give as much as you can to whoever you can and keep great Pennywell team. sowing seeds on joy.” “To work here you have to Pennywell has welcomed genuinely love people and enjoy serving them. My chil- over a million visitors since dren know that the secret of opening in 1989 and now has an Pennywell’s success lies in the average 70,000 visitors each principles it is founded on; to year.

PENNYWELL FARM: The Murray family

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LEISURE

Providing protection and security Espier Ltd TOTNES based Espier Ltd design and manufacture a range of PINGuards that protect key pads from ‘shoulder surfing’ or spy camera threats. The range of products are typically used on ATMs, Chip and Pin payment terminals, access control and keypads, parking ticket machines and ‘pay at the pump’ facilities. They are also used as weather shields. The business was established in 2004 after Alistair Taverner, who had worked in the industry for some time, saw a PIN shield at a German trade show and thought a better version could be designed. Espier Ltd was launched that year with a view to pushing the new design to ATM manufacturers but it didn’t go too well at the start. Alistair Taverner said: “I began working in my parents’ shed to keep overheads to a minimum but business was slow. They helped me financially and my mother even helped with assembling the products. I married Sophie and she took over the accounts which began to make a big difference. It was all hands on deck and we began a steep learning curve very quickly.” The Taverners moved to Devon and took premises at Staverton and began getting more enquiries from Germany and the US. Business grew and today Espier employs five people at their Totnes unit where the products are designed and assembled. They are now market leaders and can expect to move around 15,000 units to the ATM market and have achieved 30-40,000 Chip and Pin units in a year with 90 per cent of all products being exported. Alistair Taverner continued: “As the business grew, we had a decision to make. Do we

stick with the same products or do we invent something new? The problem with most inventions is that potential end-users don’t see the need for them so it is expensive and time-consuming to get new products to the market. “We now work closely with terminal manufacturers and the police and we analyse their feedback. It can take a week to design a new product but up to six months consulting about it with a considerable investment in tooling ready for manufacture, so you need to get it right. We aim for practical designs that can go into production without going through the pain of retooling because it doesn’t suit the customer.” The increase in PIN related crime has meant that the commercial sector is more than ever focusing on doing all it can to protect its customers in a cost-effective way. Herein lays an opportunity for Alistair and Sophie Taverner to create more new products, the latest of which will be launched in January next year. All Espier’s new products are patented and using the recently introduced Patent Box tax breaks will help to release money for further new product research and development and help the business to grow. Alistair Taver ner concluded: “With Sophie and I as the only shareholders, we can take a long term view about investment and profit retention. Being a family owned business is something to be passionate about.”

ESPIER LTD: Alistair and Sophie Taverner

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Gearing up for more export success Greenover Distribution Ltd

GREENOVER DISTRIBUTION LTD: Grant, Dan and Luke Maker 002_C

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PAIGNTON based Greenover Distribution Ltd specialises in the distribution of action sport equipment particularly high end custom brand scooters including Grit and Crisp Scooters from Australia, Lucky and Phoenix from the USA and top end Mountain bike brand Rocky Mountain from Canada. It has also recently secured the brand Roces from Italy which has specialised in the aggressive Skate and Inline market since 1952. Greenover also distributes a wide range of scooter accessories including helmets and protective clothing as well as bicycles, skateboards, roller skates, children’s balance bikes and other action sport accessories. The business is owned and managed by 42 year-old Dan Maker who has operated in the action sports market for over 16 years. Recognising the new and emerging “pro scooter” scene that had started to eclipse BMX and Skate, he bought and sold a container to a well known distributor in the UK in 2010. Since then his actions helped drive the boom in scooter sales and the business grew quickly. It became clear that demand was

sufficiently strong for Greenover to go into the distribution business for itself and the business acquired storage at a variety of fulfilment warehouses moving on when they outstripped capacity. Dan’s younger brother Grant, 40, joined the business bringing financial and administrative expertise to the table and he was followed by the youngest of the three brothers, Luke, 34, who dealt with sales and marketing. Luke Maker said: “Since 2010, the business has grown rapidly. In 2011 it employed its first two members of staff and it now employs 15 involved in warehouse/dispatch, finance, administration and logistics, marketing, sales, promotions and events. We also employ two professional riders. “We started with a single brand, we now handle 15. By 2012, we needed to consolidate the operation under a single roof so acquired 12,000 sq ft of warehouse/office space on Westfield Industrial Estate behind South Devon College in Paignton and we now export to 17 countries worldwide and Dan has set up a business in the USA.” In a fast changing market where fashion and fads can change in an

instance, Greenover has to keep listening to the marketplace and adapting accordingly. The business invests a great deal in promoting its brands at events, with promotional materials, through its team of riders, its website and, in particular, social media. It runs 12 separate branded social media platforms enabling it both to promote its products and harvest feedback from the marketplace. Luke Maker added: “The plan is to keep growing. We’re in a good place right now but we can’t stand still. Being part of a family team certainly helps the business. Dan owns it so he has the last word but each of us has bought a different set of core skills with us and we all have a voice in decision-making. We all get on well and the family side of it gives you 100 per cent trust in what each other is doing. It’s instinctive – we all know that we will deal with whatever needs doing. In addition to the Maker boys there are two other sets of brothers working for Greenover – Darren and Jonny Carter, and Chris and Jono Beardsmore. Now that’s keeping it in the family!

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MARITIME

Long-serving staff at marine firm

DARTHAVEN MARINA: From the left, Melanie Holman, John Holman and Ann Sainthill TORQUIL MACLEOD TQTM20140812E-003_C

Darthaven Marina FEW businesses can have such a picturesque setting as that enjoyed by family owned Darthaven Marina at Kingswear on the River Dart. The 270 permanent berth marina offers a full range of marine services for both leisure and commercial craft including engineering, electrical/electronic services, shipwright and joinery, chandlery, boat hoist and a range of other onsite marine related businesses. The company was established by Jack Holman, part of the celebrated Cornish mining equipment manufacturing dynasty, and his wife Sue. They had previously owned Uphams Boatbuilders in Brixham but subsequently acquired the fishermanâ&#x20AC;&#x2122;s quay and railway sidings at Kingswear from the receiver after a prospective business deal collapsed and in 1975 Darthaven Marina was born. The current managing director John Holman, said: â&#x20AC;&#x153;At that time, the land was dissected by the railway and there were only 10 berths unconnected to the land. No planning consent existed for further development. However, over the years, more pontoons were introduced followed by the

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construction of a marina office and the reclamation of land from the creek for the car park. By 1981, my parents succeeded in gaining planning permission to pile the pontoons into 200 permanent berths and there was a portakabin for the chandlery and brokerage.â&#x20AC;? Former navy officer John Holman joined the business in 1982 to run the marina after a threeyear Yacht & Boatyard Management Course. Uphams was sold and the engineering, shipwright and joinery and electrical services moved from Brixham to Kingswear. In 1987, the business bought the Royal Dart Building and Johnâ&#x20AC;&#x2122;s mother ran the pub there for a number of years. The recession of the late 1980s and early 1990s and sky high interest rates made progress difficult at Darthaven but they weathered the storm and gradually the marina as we know it today began to emerge. Investment in a level crossing united the site (Darthaven is the third largest shareholder in the Dartmouth Steam Rail & Riverboat Company) and in 1993 the main building with offices, chandlery, toilets and showers was completed. A programme of dredging also increased the number of berths to 270. Jack Holman passed on in 2002 and his wife Sue a decade later. Today, working in the business alongside managing director John Holman is his wife Melanie who looks after HR, Health & Safety and public relations while Johnâ&#x20AC;&#x2122;s sister Ann also sits on the Board of the limited company. John has two sons â&#x20AC;&#x201C; 31 year-old Elliot who sells motorboats in Palma and 30 year-old Matthew, a quantity surveyor â&#x20AC;&#x201C; but admits there is no current prospect of a family succession and that a future sale is the most likely destiny for Darthaven. Darthaven employs 38 staff many of whom have worked for the business for a very long time including Dave Dart who joined as an apprentice in 1956 and chandlery manager Phil Stead who started 40 years ago. Ten to 15 years service is common at Darthaven and the business is very proud of that. John Holman said: â&#x20AC;&#x153;We are well supported by non-executive director Colin Bland who brings specialist expertise and a detached focus to the business but the great advantage of being owner/managers is that there are no other shareholders and this enables decisions, which are not always profit motivated, to be taken more quickly and decisively with the knowledge that they will be implemented as intended. â&#x20AC;&#x153;We are able to take the long term view and do what is best for our berth holders, our suppliers and our employees.â&#x20AC;?

WATERMOTA: Mike Beacham and Alison Merrick

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Sailing to success Watermota LOCATED on the thriving Heathfield Industrial Estate near Bovey Tracey, Watermota is one of the UKâ&#x20AC;&#x2122;s leading marine and industrial distributors of engines, gen sets (engine generators), pumps and strainers, and transmissions and steering systems. The business was established in London in 1911, moved to the West Country in 1940 and was acquired by Mike Beacham in 1995. Until then, Watermota had been primarily a manufacturing company making components, â&#x20AC;&#x2DC;marinisingâ&#x20AC;&#x2122; Ford based engines and reconditioning engines. Mike, who already had long experience in the engine business, recognised Watermotaâ&#x20AC;&#x2122;s potential but knew it had to change if it was going to make it to its centenary â&#x20AC;&#x201C; and change meant moving from manufacturing to distribution. He said: â&#x20AC;&#x153;We achieved the transformation with the help of a dedicated team of employees, a strong dealer network, quality products and a lot of hard work. We maintained a small fabrication and machine shop to give the flexibility to meet customer needs and add value.â&#x20AC;? The breakthrough came in 1997 when Mike became the UK and Ireland exclusive distributor for South Korean based Daewoo engines (now Doosan Infracore) which has been followed by other exclusive deals including D-I Industries, Hyundai SeasAll (Kia), JMP and Craftsman Marine. Watermota supplies to all types of pleasure and commercial vessels with customers in sectors which include angling, charter, commercial fishing, Dutch Barges, ferries, fish farms, harbour workboats, pilot boats,

pleasure and trip boats, tugs and wind farm crew boats. It also supplies the leisure boat market. Watermota has grown from a manufacturing business turning over ÂŁ400,000 a year to a leading distribution company with a turnover of ÂŁ4m employing 15 people. Mike is now approaching 70 and, while he has no intention of retiring completely, there is an option to become chairman of the board and take a more strategic role while the dayto-day running of the business will pass to his daughter Alison. Mike Beacham said: â&#x20AC;&#x153;In many ways Alison is better prepared to take the reins at Watermota than I was nearly 20 years ago. She started as an accounts clerk in the business, took on company secretarial work and has been a highly capable finance director for a considerable time. Family succession will always be easier if your successors have actually worked in the business and understand how it ticks. â&#x20AC;&#x153;We are also well served by Alisonâ&#x20AC;&#x2122;s husband David Merrick who looks after our ISO 9001 accreditation and does a fantastic job as a dispassionate observer and quality controller who keeps us on the straight and narrow. â&#x20AC;&#x153;Our aims are to continue to develop our national dealer networks to maximise sales and provide product support. We plan to grow the business and the latest deal with Hyundai SeasAll gives another new platform on which to build.â&#x20AC;?

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HERALD EXPRESS

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Thursday, September 11, 2014

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FOOD & DRINK

Championing regional food and drink of outstanding quality Sharpham Partnership WHAT started as a farm diversification project when the price of milk collapsed in the late 1970s, cheese and wine made on the Sharpham Estate have now achieved almost iconic status in the South West and are widely regarded as being at the forefront of the campaign to champion regional food and drink products of outstanding quality. The farm, located on a beautiful stretch of the River Dart near Totnes was originally acquired by Maurice and Ruth Ash in 1961 as a dairy operation. The plunging price of milk and the very steep topography at Sharpham, which is ill-suited to commodity farming, prompt a rethink and diversification began in 1981 with the development of a cheese-making facility. The same year, two acres of vines were also planted on an experimental basis but the south-facing and welldrained slopes of the estate proved to be an ideal location and Sharpham’s first vintage was produced in 1985. The business continued to grow with visitor facilities and a shop opening in 1992 and the awards began to pile up. Sharpham now produces a fine range of white, red and rosé still wines, some sparkling wines and also provides fermented pressed out red grape must for a Grappa style grape spirit called Dappa. The 10 acres of vineyards are planted with grape varieties including Madeleine Angevine, Phoenix, Dornfelder and

Cooking up a winning formula Freetime Catering Ltd

AFTER running Quaywest Water Park in Paignton, entrepreneur Nigel Cousens developed a modest catering outlet at Dawlish Warren in the late 1980s, establishing Freetime Catering Limited in 1991 to realise its undoubted potential. Since then Nigel, his wife Jayne and general manager, Sally Carr, have turned the venture into a thriving, year-round tourism enterprise, the centrepiece of which is The Boathouse bar and family restaurant, one of the biggest privately owned pubs in the South West. The Boathouse is a 10,000 sq ft award-winning restaurant with bars, function room, fast food outlets, extensive beer garden and children’s play areas. It has a superb location on the main beach at Dawlish Warren which throngs with visitors in the summer season and attracts local dog walkers, family days out and those attracted by the nearby nature reserve in the winter.

SHARPHAM PARTNERSHIP LTD: Mark Sharman and Marian Ash Pinot Noir and they use both New World and traditional wine making techniques to produce up to 100,000 bottles a year. By producing their own Red Tractor assured Jersey cow’s milk on the farm and growing a range of carefully selected cool climate grape

SHARPHAM PARTNERSHIP LTD: Cheese and wine made at Sharpham

varieties in the vineyard, the business is able to control production from start to finish. The results are individual, handmade wines and cheeses which have a special character and flavour that relates to this unique location. The business is also now bolstered by a thriving visitor trade enjoying a range of tours and an attractive café which won ‘Best Alfresco Café’ in the Good Food Awards 2012. To rationalise the structure and ownership of the business, it incorporated in 1997 and now trades as Sharpham Partnership Limited with the former partners becoming shareholders and directors in the Limited Company. The current shareholders are Maurice and Ruth Ash’s daughters, Kate Caddy, Claire Ashwheeler and Marian Ash with cousin Mark Sharman as Managing Director. Strict control over finances is at the core of managing the diverse activities of the business. Mark Sharman said: “The last five years have been difficult but we have coped. Our products are not essential consumables so we felt the effects of the recession and had to adapt. Debt control became a priority and we

The complex also boasts a family Go-Kart circuit, gift shop with designer labels and a family entertainment/amusement pavilion. The business benefits from the thousands of nearby tourist beds in hotels, guest houses and caravan parks as well as year round trade from chalets, lodges and camping.

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Unsurprisingly, the business is highly seasonal with autumn and winter special offers keeping the visitor trade ticking over but the summer season sees hundreds of thousands of visitors pass through Dawlish Warren with The Boathouse handling up to 700 meals a day. Freetime Catering employs 20 full-time staff but this increases to over 100 at the height of the season.

SHARPHAM PARTNERSHIP LTD: Cheese made at Sharpham have a regime of very tight financial management and are religious about producing monthly management accounts. “We have six cost centres comprising the dairy farm, the cheese dairy, the vineyards, the winery where the grapes are turned into wine, retailing which covers all visitor and customer facing activities including the café, shop, tours, website and mail order, and management services, the administration and accounts of the business.” Mark Sharman added: “We are picking up national and international awards, which

is great as an endorsement of the quality of our produce, but we see ourselves as embedded in the local market place. I enjoy seeing our wine and cheese in local shops and the more people know about it the better. We want to connect with our customers so we are keen for them to come along and see how things are made. We have even put viewing windows in the new cheese dairy. “We want to cut down on unnecessary food miles and sell more locally – its good for local consumers, it’s good for the planet and it’s good for business.”

Nigel Cousens said: “Jayne works in the restaurant side of the business and we are supported by our sons Harry, who is a supervisor here and Michael, who is just starting to learn the business. “ Both boys are in their early 20s and I rather suspect that they will go off to try other things in the near future. “We haven’t really discussed succession but the advantage of them working here now, is that should they decide to stay in the business, they know what it’s all about, its ups and downs, and there will be a trusted pair of hands for the future. “In the meantime, we’ll carry on doing what we do best – adapting to what our customers want and delivering it with value for money.”

Family matters

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Thursday, September 11, 2014

HERALD EXPRESS

FOOD & DRINK

Cider maker has ambitious plans for expansion WGF Hunt & Son THE Hunt family have been making cider in Paignton for at least two centuries and probably longer, the last 100 years of which have been at Higher Yalberton Farm. Eight generations ago, Nicholas Prout Hunt was a prominent local farmer and a director of the Paignton Harbour Company and it was estimated that the harbour could be used for the export of up to 40,000 hogsheads (or approx 2.2 million gallons) of cider each year. After a pre-war decline in cider-making and the growth of Paignton as an urban area and seaside resort, William Hunt started to make cider again at Yalberton in the 1950's from apples that had previously been sold to the famous cider brand Whiteways. Today, the business (WGF Hunt & Son) makes in the region of 5,000 to 7,000 gallons of cider each year predominantly from its own apples, including Paignton Marigolds, and none of them from farther than 15 miles away. The whole juice cider is made in their 20 year old cider cellar at Yalberton, with the bittersweet and bittersharp cider apples pressed on their 70 year old press which is powered by a 1952 Massey Ferguson tractor. It’s definitely a family affair. Roger and Christine Hunt run the business although are beginning to take a more strategic role as their children Richard and Annette become more active. Former professional rugby player Richard, 33, is the cider maker while 30 yearold Annette has returned from travelling and a spell at Tesco headquarters to take up the role of sales, marketing and increasing the volume of business particularly from Torbay based licensed premises. Up until now, they have sold directly from the farm gate, as well as supplying a handful of

local farm shops and pubs. There is also a postal delivery service. However, the building of a new cider cellar and a Rural Economy Grant, administered by Devon County Council, enabling investment in a new apple mill, cider press and bottling facilities will allow production to expand to 80,000 gallons. The apple harvest will begin this month. The new business plan includes incorporating into a limited company. Annette Hunt said: “We have ambitious plans but I’m certain we can achieve them. To us family is everything. It’s the backbone of the business and everyone pitches in. It provides extraordinary passion and it gives a clarity to our thinking and innovative ideas that everyone supports. “Richard and I weren’t necessarily expected to go into the family business. It’s something we both wanted to do after gaining experience elsewhere. It’s great to be working on the farm where I grew up and have a job where you feel so supported and valued. It’s a real family team – my grandmother Mary still takes an interest and my sister-in-law Angela Hunt runs our caravan and camping operation on the farm.” Annette had a busy time this summer spreading the word about Hunts Farm Cider at Country shows across Devon and events such as the Occombe Beer Festival. The business is also sponsoring Dartmouth Regatta. The Rural Economy Grant was accompanied by a commitment to create employment for 2.5 people the first of which is Kate Hadley who has returned to Devon after working in sales for Selfridges. Annette Hunt added: “Things are really coming together now. Kate has invaluable

WGF HUNT & SON: Family members

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sales experience and we’ll be creating the other posts when we get into full production. Now the job at hand is raising our visibility amongst the licensed and retail trade and banging the drum about local businesses selling local produce. “We’ve been making cider in Paignton for 200 years and you don’t get much more local than that.” The new cider cellar project is supported by the

Rural Development Programme for England, for which Defra is the managing authority, part financed by the European Agricultural Fund for Rural Development: Europe investing in rural areas. It has been grant funded through the REG Programme delivered by Devon County Council on behalf of Heart of the South West Local Enterprise Partnership.

South Devon based bakery rises to the challenge Hallett’s The Bakers HELEN Hallett runs a successful South Devon based family bakery with her husband Mel and son Chris. Hallett’s The Bakers is based in Paignton and distributes all over the South Hams, Teignbridge and Totnes. Helen Hallett said: “Establishing a family business over the past 30 years has been an interesting road of discovery. It has tested relationships, stamina and physical energies and unlike the song that says ‘I did it my way’ we would sing ‘we did it our way’. “When my husband and myself first applied to the DTI to guarantee our loan for the bakery and shop we had to work hard to convince this wily financier that we were worth backing. “We were total newbies as far as running a business was concerned but we had located a business that was trading well enough and we had good experience between us in baking and sales. “In the end, convincing him to take a punt on us had more to do with our personalities than cash flows and projections. Being complete opposites in every way, my husband was able to bring his brilliance as a baker, his love of

number crunching and his capacity for working long hours to the our venture, my traits of organisation, affability and dogged determination provided a good balance. “When we first started out in Winner Street Paignton, we found ourselves in a street with a delicatessen, a fishmonger, a greengrocer two butchers and lots of independent shops. On a Saturday there were queues outside our bakery door and the smell of our very popular garlic bread would waft all along the street and up to the top of Clifton Road. We had our regulars who became familiar faces and who would give us feedback both good and bad on a regular basis.” She said that there is no doubt that although they were working long hours they were enjoying job satisfaction in HALLETT'S THE BAKERS: Helen Hallett with son Chris and husband Mel Torquil MacLeod creating products out of raw ingredients and selling them to TQTM20140409E-04_C an appreciative public. Helen Hallett added: “Our threats and trends that might down further up the country, Newton Abbot and then young family lived with us on another in St Marychurch, impact on your income. We had my hope was that people the premises and we looked Torquay. no buffer to fall back on but we would still want to find these forward to the summer break nearly always had a ‘plan b’ independent shops even if it “We were able to improve every year when the benefit of just in case the first plan didn’t was only on holiday to re-visit and extend the range we visitors improved our takings work out. the joys of discovering a local offered in each of the shops enough for us to be able to speciality or something that “Although we knew that splash out on a brief holiday or and for a time sales were good. had never seen a plastic tray or a Sunday outing. Following a supermarkets had already “When everything you own poly wrap packaging. similar set up we purchased caused many small is tied up in your business you another bakery and shop in have to watch carefully for independent bakers to close “To an extent this did happen

but there has been a huge change in shopping habits over the years. Luckily we have been able to change our way of getting our goods out to the consumer. “When we realised that fewer customers were coming into our shops we bought a van and took our bread, cakes and pasties to local convenience stores.” When a fire destroyed the bakery in Torquay they had to look for new production space. Finding only large units, they looked for extra custom to fill the bigger unit and began to increase their free delivery service around the Bay. When their son Christopher joined the business they were able to expand the wholesale operations as far as Plymouth and Exeter. Helen Hallett said: “He now has a family of his own who may or may not want to work in the business. Looking back, each of our sons have had to live and breathe our business and we all missed out on holidays and long weekends away but in the end it is a joy to know that we have built something between us that enables us all to live in such a beautiful part of England, all we have to do now is to find a way to take time out to enjoy it.”

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Thursday, September 11, 2014

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TOURISM

Brothers have equal share in company

REW HOTELS LTD: Tim, Sylvia and Anthony Rew outside the Livermead House Hotel, Torquay ANDY STYLES TQAS20140820G-002_C

At forefront of hotel industry Rew Hotels Ltd AT the Rew Group of Hotels, family business values and the traditions of the hospitality industry converge. Style, uniformly high standards of food, comfort, courtesy, attention to detail, and, above all, service of consistently high quality, are the hallmarks that have kept the group’s three Torbay seafront 3-star hotels at the forefront of the industry. The group comprises the Livermead House and the Livermead Cliff Hotel each with 67 bedrooms and the 50 bedroom Corbyn Head Hotel. The business was originally founded by Mrs Sylvia Rew, who is the managing director of the limited company today. Helped by her elder son Tim, director of the Livermead House Hotel, which was bought in 1988, and her younger son Anthony, director of the Corbyn Head, which was acquired in 1999. The Livermead Cliff Hotel joined the group in 2005. Rew Hotels employ around 130 staff, twothirds of whom are retained year-round. Tim Rew said: “My mother started in the hospitality business over 40 years ago buying and selling several smaller businesses during the early years until she acquired the Livermead House. “We strive to achieve high standards and maintain them and, because we are a family unit, we are ably supported by many loyal members of the team. This provides our decision-making process with both flexibility and decisiveness. Being part of the family also makes us all more receptive. We are very visible in the business and we know what is required to give guests an enjoyable stay. This actually

THE ANCHORAGE HOTEL: Russell, Daryl and Xavier Page-Dove

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The Anchorage Hotel makes us quite humble and gives us the ability to take on board what other people say. “Listening to our customers’ wishes was how Marine Travel was born in 1982. Under the careful professional eye of John Shutts, Marine Travel has grown into a thriving tour business accounting for a quarter of the revenue at the Livermead House.” Timothy and Anthony have both trained locally at South Devon College and have gained good experience in both local and international establishments such as the George Cinque in Paris, Imperial Hotel, Torquay, The Redcliffe Hotel, Paignton and the RICC. Tim Rew said: “If it’s taught us anything about the hotel business it’s that there is no blue print for success, just the right values and you have to work out how to apply them and get your staff to come with you on that journey. “We want staff to really care about our guests and to thoroughly learn their trade. If you get the right people in the right jobs, they learn that the work can be colourful, varied and engaging and they understand that it’s not just a job, it really is a way of life. “In the future we would like to see a reduction of VAT in the tourism sector and think a lot more can be done to help smaller businesses. There have been some good things in Torbay including the seafront improvements, the refurbishment of Torre Abbey and the new road, but a lot more could be done to rekindle interest in small private businesses, hotels and guest houses and artisan shops on the high street. Support in this area would go a long way towards regenerating traditional tourism.”

THREE brothers run The Anchorage Hotel on Aveland Road in Babbacombe and it looks somewhat like hotel keeping is in the blood because their father, Barry PageDove, was one of the most prominent figures on the Torbay hotels scene for many years including a spell as chairman of the local Hotels Association. General manager at The Anchorage Hotel is 38-year-old Daryl Page-Dove with his 40-year-old brother Xavier as head chef and 35-year-old Russell sharing general management duties. Each has an equal share in the limited company and hold regular meetings to review activity and plans. The 56-bedroom, two-star property enjoys high year-round occupancy with a 30/70 split between private bookings, many of them families, and coach parties. The Anchorage has an outdoor heated swimming pool and has recently upgraded 5 of its rooms to a ‘deluxe’ quality. The business also caters for private functions, weddings and dinner dances. Being a family run business has its “ups and downs” according to Russell PageDove. “The advantages”, he said, “is the instinctive trust we have in each other. Split responsibility also eases the workload. It’s certainly a better life than when our father ran the Carlton, for instance. We don’t have to be here 24/7. “However, because we are brothers, all with different ideas, we are more prepared to challenge each other and occasionally issues aren’t easily resolved. Strong views can lead to challenging conversations.

“I think we’re all agreed that Torquay needs more promotion but nobody has resolved how to promote effectively. “We would certainly like to attract higher spending guests which would release more money to invest in the hotel but there are too many deterrents for this to happen any time soon. Just the cost of driving to this part of the world can be prohibitive. “A tourist related VAT tax break would make a huge difference. Currently we’re competing with France where VAT on tourism is just 5.5 per cent and Germany where its seven per cent. It’s not surprising that vacations there look better value for money. “A bold move like that would create a better tourism industry with more people taking more UK holidays, more money available in the industry for investing in improving facilities and more money for promoting resorts like Torbay in places where we currently don’t go such as the weather slot on Sky TV. We should be able to make other parts of Europe sit up and take notice of what we have here.” The Anchorage Hotel has been in the Page-Dove family for 22 years and they are clearly passionate about its potential. Russell Page-Dove concluded: “The Anchorage – it’s a member of the family that needs looking after.”

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FAMILY BUSINESS CONSULTING Meet the Francis Clark Torquay Family Business Team Chris acts for some of the firm’s largest family business clients. His strengths lie in getting to know his clients’ objectives and providing all the support they need to help achieve those goals. He believes strongly in providing the highest level of client care, and ensuring that all his clients receive a truly partner led service. ‘ Ke e p i n g i t i n t h e family” isn’t easy. A successful Family Business needs to consider, ask and solve a number of key questions. At Francis Clark we have a long hisCHRIS HICKS: chris.hicks@ tory of helping Family francisclark.co.uk Businesses answer these questions and increase the likelihood of a successful transition to the next generation.It’s something we think we do well, and enjoy doing.’

Born and educated in Torbay, Richard is passionate about helping the family businesses of the area grow and prosper. Using his wide range of specialist contacts and local knowledge he ensures his clients get the best possible advice.

RICHARD HUSSEY: richard.hussey@ francisclark.co.uk

‘When the boardroom table doubles as the kitchen table, ensuring business and family matters don’t conflict can feel like walking a tightrope. With the right approach and our involvement in regular board meetings, using techniques to ensure all parties reach an amicable solution, we can help identify any mitigating conflict or disagreement before it happens.’

Contact the Francis Clark Torquay Family Business Team on 01803 320100

‘Baby Boomers’ need Francis Clark reflects on the top ten services offered with Family Business FAMILY businesses are the backbone of the UK economy but those founded by the ‘Baby Boomer’ Generation are ready to be handed on as that entrepreneurial generation retires. This immense transfer of wealth requires specialist expertise to ensure that succession is planned for and maximises the benefits to the parties involved. The Francis Clark Family Business team specialises in advising on the financial implications of success such as tax and estate planning as well as the many factors that can and do influence the process including family dynamics and intergenerational transfer of wealth and power within these businesses.

Succession and family dynamics Passing on a business to a family member is an entirely different prospect to disposing of it to a third party. Family dynamics often mean the seller can be under considerable pressure to accept a less favourable deal in order to facilitate the acquisition for a family member. Understanding and managing the dynamics at play is vital in these circumstances, but expert advice will be needed to overcome the emotional and financial obstacles involved and can structure realistic deals that are fair to all parties.

Mediation and conflict resolution There are many sources of conflict within family owned businesses which are often exacerbated by having no formal systems and processes to deal with them. Conflict may arise because of business issues, family issues or ownership issues each impacting on the other and this may require the introduction of specialist mediators.

Corporate governance Formal systems and procedures are usually the last thing on the mind of founding fathers of a family business but become crucial as the business grows. Not only do they set the standards by which family members must operate and provide a means of conflict resolution, they become fundamentally important to any potential buyer who will be looking to acquire a company with solid operational policies.

Succession planning Before considering the sale of the family business, it is important to have a succession plan in place. This will need to maximise the value of the business while retaining and protecting the family wealth. The process involves establishing an exit strategy, tax planning, estate planning and corporate governance.

Estate administration Administering an estate after death can be a very difficult process. Often, it is the founding entrepreneur alone who knows the financial minutiae of the business leaving the bereaved family at a loss in trying to unravel the complexities. Professional advice and support will be invaluable at a time of need.

Buy-sell agreements Buy-sell agreements or buy-outs are legally structured but need to ensure that

Defining your hopes and dreams IF you run a family owned business, you might think about asking yourself some simple, but highly important questions. When did you last have a family meeting? Have you agreed how the business will be owned and governed? Do all the family members involved in the business buy into the same vision for the future as you? Have you thought about how you plan to hand the business on and how you will manage the transfer or executive power and ownership? Too many owner managers are so focussed on the day to day running of the business that they fail to plan ahead and this is perhaps one of the main reasons that while 70 per cent of businesses in the UK are family owned, only 10 per cent of them make it to a third generation. What seems like a straightforward process is often just the opposite. If you haven’t established a formal protocol of decision-making that will set standards and provide a means of conflict resolution, disagreements and tensions within the business have nowhere to go but grow. Conflict may arise because of business, family or ownership issues each impacting on the other including business performance, sibling rivalry and perceived preferential treatment. Different generations have different desires, aspirations and motivations. Understanding this helps to distinguish the dynamics of selling a family business to a family member or disposing of it to a third party. Equally, it is important to establish rules of governance that apply to everyone

family constitution is basically the way of defining the family’s dreams and aspirations. It provides a framework of rules which governs behaviour as a family. It should also address the ways in which communication should be dealt with, conflict resolved and have a clear policy for the training and employment criteria for members of the family joining the business.

– family members and paid employees alike and this includes documented expectations, rates of remuneration, grievance procedures, success measurements and regular reviews. It helps to reduce risk and maintain continuity should something happen to the founding entrepreneur. Where that individual is the only one who knows the minutiae of the business finances and operations, sudden changes such as death or disability can badly affect the business’ ability to carry on. None of these scenarios need happen if owner/managers take time to plan and if they are worried about the complexities of succession planning and exit strategies, help is at hand. Establishing a family constitution gives the best chance of making those plans in an orderly and well thought out way. The

Each family and family business differs, but there are common themes that should be included in such a constitution including the philosophy and vision of the business, measures of success, subsequent ownership (succession or sale), governance (procedures and systems including conflict resolution and grievances), provision for retirement and family employment policy. The best chance of a successful succession is where the new leaders, particularly from within the family, are appropriately trained well in advance of taking over their roles. There must also be a mechanism for resolving conflict or disagreement within the family management of the business. Whilst the odds are often against a family business continuing through successive generations, with the right planning, particularly with the support of a strong family constitution, there is no reason why more family businesses shouldn’t continue to grow and to flourish

Family matters

HERALD EXPRESS

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Thursday, September 11, 2014

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FAMILY BUSINESS CONSULTING

to plan for the future Consulting and also the benefits of a family constitution Different generations have different desires, aspirations and motivations. Understanding this helps to distinguish the dynamics of selling a family business to a family member or disposing of it to a third party. Disposing of a family business will always be accompanied by very many tough decisions.

Business valuations Getting the business valuation right can make a big difference to your future. Overprice your business and you may never get anyone to look at it. Under value it and you may be giving away hard earned family wealth.

Remunerating your long-term employees the deal is beneficial at every stage of the process from letters of intent, due diligence process and/or negotiation between the parties.

Business and strategic planning, including exit strategies Strategic planning, or taking your business from where it is to where you want it to be, has a huge impact on its success and, ultimately, on its valuation. All businesses should have an exit strategy, which can be selling to family or

third party, a management buy-out, or even winding the business up. Each of these exit strategies may require a different approach, and each is likely to have a different effect on the family unit – financially, materially or emotionally. Whatever the route, the family business owner will want to maximise the return from disposing of the business and minimise the tax liability it generates for themselves and their family.

Intergenerational differences

Long-term employee loyalty not only helps a business grow, but can also be a key selling point for potential buyers, so providing the right financial package for them is very important.

Meet the Francis Clark Torquay Family Business Team Paul joined Francis Clark in 1998 following a move from a similar practice in London. Working closely with new and growing businesses, Paul enjoys building relationships with clients and understanding their business in order to look for strategies available to reduce personal and business tax liabilities. ‘Family businesses, like any other, need to focus on growth and profitability as well as managing internal dynamics. I like to roll my sleeves up and get involved in the business to help facilitate this. Being involved within the Growth Acceler- PAUL BUTLER: paul.butler@ ator scheme I can also tap francisclark.co.uk into potential funding to deliver strategic advice.’

Born and educated here in Torbay, John is highly skilled at identifying workable solutions to the types of problems experienced by family businesses. His advice and practical assistance are designed to add value to the client, both from a financial and operational perspective.

You may pay them through a straight salary or the package may include profit share or stock options. The Francis Clark family business team use their extensive experience in helping owners formulate and build remuneration strategies that work for them.

Making a will is a critical step in family business planning BY the Law Society’s reckoning around six out of every ten people fail to make a will causing untold grief to their families. The reasons are unclear but it is thought that many think the act of making a will somehow presages their imminent demise. Many business owner/managers are often so busy, they simply don’t get round to it. For family run businesses, making a will is a business critical function as it removes uncertainty over who will inherit, puts right assumptions that aren’t based on fact and reduces the likelihood of serious conflict. A will is a legal document explaining what a person wants to happen to their possessions after their death. The instructions within the will for distributing those possessions are known as legacies. There are very good reasons for making a will. It ensures your possession including property and cash go to the people or organisations you wish to benefit from your hard work and it can help mitigate the tax burden you leave behind. If your estate is liable to Inheritance Tax, there are a number of ways you are able to mitigate the amount you pay but you’ll need the right professional advice to minimise the liability in legally acceptable ways. The dangers of not making a will may entail your assets not going to the people you wish them to but being allocated under

JOHN ROWE: john.rowe@ francisclark.co.uk

‘Succession requires careful preparation. Questions to ask will be, when is the right time to pass on the business, what on-going role, if any, you intend to have and if you want to hang on to any shares. Do the next generation have the skills to run the business and, if not, is recruiting a non-family member right for the future success of the business?’

Providing support and bespoke advice to family businesses requires specialist experience in the unique challenges that family businesses face.

fixed rules instead which may not reflect your intentions. This can have a catastrophic impact on family run businesses including destabilising the business or seeing its value drop dramatically.

in the will to avoid surprises, disputes and subsequent contentious legal action.

In short, business owners who make a will are ensuring the assets they have built over a lifetime’s work go to the beneficiary Making a will with the right legal and they intended. professional advice can ensure that the Sharing the contents of a will with the business is passed on in a tax efficient beneficiaries will also greatly assist in manner. However, it is also wise not only to planning the direction of the business ensure that the will is updated regularly to going forward and will help to demonreflect changing circumstances but that strate strong management credentials to next generation directors and other family interested third parties including employmembers are aware of the provisions made ees and potential purchasers.

Andrew’s experience as a Chartered Tax Adviser means he is ideally placed to advise on the tax aspects of structuring and succession planning for family businesses. ‘If you gift your business to your children, the good news is that there may be no tax to pay. The capital gain that arises qualifies for ‘hold-over relief’, which means any gain is frozen and tax only has to be paid if the business is subsequently sold.’

ANDREW SQUIRES: andrew.squires@ francisclark.co.uk

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Holiday firm goes from strength to strength

Cofton Country Holidays COFTON Country Holidays was started by George and Valerie Jeffery back in 1975. Nearly 40 years on and now run by the next generation, the holiday park near Starcross is going from strength to strength. A family-focused business, not only because it is so well suited for family holidays (many holidaying family groups comprise three generations!), but because it is proud to be a familyrun business. Continuing to innovate and to improve their services, facilities and overall guest experience are sibling team Roger, Helen, Mellony and Chris, alongside their parents, other family members, and permanent and seasonal staff. From the beginnings of a few fields with basic touring pitches, some static caravans and unconverted farm buildings, the park has grown to over

80acres of holiday homes, cottages, apartments, touring and RV pitches, fishing lakes, woodland trails, and indoor and outdoor leisure facilities. In addition to other improvements to the park and its facilities, entertainment has grown to include activities with local providers, such as Segway sessions and kayaking, all aimed at creating memorable experiences for guests. Some major milestones in the parkâ&#x20AC;&#x2122;s history have included the construction of the outdoor pools in the early 1980s and the refurbishment of the Exe-Estuary-view Eastdon House, in 1996, into five apartments. T h e m o s t s i g n i f i c a n t ch a n g e however was in 2012 with the addition of an indoor swimming and leisure building with pool, gym, restaurant and entertainment venue, to name just a few of the facilities. The building was

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COFTON COUNTRY HOLIDAYS: Family group designed and built by local contractors, and the leisure and business facilities are open to local residents and day visitors outside of peak season. Amidst a volatile economic environment, the business made a huge vote of confidence in the local area and its tourism industry by investing in the multi-million pound complex and by doing so both significantly improved the visitor experience and created eight permanent full-time jobs. In fact, investment in employees is another important focus for the Cofton team, and recent customer experience training has allowed staff members and directors alike to explore fresh

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approaches to turning â&#x20AC;&#x2DC;holidaysâ&#x20AC;&#x2122; into â&#x20AC;&#x2DC;experiencesâ&#x20AC;&#x2122;. Cofton Country Holidays continues to be recognised not just as a VisitBritain Four Star holiday park, but also for its conservation efforts and environmental responsibility. The business has been awarded the prestigious David Bellamy Award for Conservation year after year, and in 2011 was recognised further with a Conservation Award of Special Distinction for work carried out to make large areas of the park and fishing lakes accessible to wheelchair users. Cofton also picked up a Gold Award for Holiday Park of

the Year at the 2014 Visit Devon Tourism Awards. Mellony Kirby, director, says of working with Francis Clark: â&#x20AC;&#x153;The family have employed their services for over 17 years now, we have been consistently impressed by the level of personal attention given by this large West Country firm. â&#x20AC;&#x153;As the park has grown and developed, especially with the addition of the new complex, the knowledge and expertise of Richard Hussey, Steve Collins and the rest of the team has been crucial in keeping abreast of requirements and for planning for the future.â&#x20AC;?.

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Investment in staff brings positive results TLH Leisure Resort FAMILY values run deep for Torquay Leisure Hotels Ltd (TLH) where the ethos of customer service backed by prudent investment over many years has created one the region’s most successful tourism and hospitality businesses. It now trades as TLH Leisure Resort and comprises four centrally located Torquay hotels, (Derwent, Victoria, Carlton and Toorak) with some self-catering apartments totalling 430 rooms. The individual hotels have their own style and markets but are all linked by central leisure facilities including indoor and outdoor pools, spas, a gym, kidzone, dance studio, outdoor terraces and gardens and much more. It enjoys high occupancy levels and addresses year round business with its speciality dancing and bowling breaks, seasonal breaks and special offers, conference and wedding facilities and a range of products to appeal to the local market including a Gym & Slim membership, health and beauty treatments and ‘dip & dine’ offers. Developing and investing in the product is the result of over 60 years experience but just as important, according to managing director Laurence Murrell, is investing in the people who work at TLH. “A positive customer experience is core to success in the hospitality business,” he said, “and this is entirely down to

how they are treated by staff and the atmosphere that the staff create. “We support our people through staff discounts and a canteen but we want them to care about the customers so we talk to our staff and we listen to them. We invest in their personal development and training and in this way, the values of a family business are adopted by everyone working in the business.” With over 400 employees, placing TLH 33rd in the region’s 150 top employers, this is no mean feat. The business holds ‘Focus Forums’, small meetings to apprise the staff of latest news and management issues and this is supported by a staff newsletter. Feedback from employees is the starting point of the following year’s business plan. In an industry notorious for high staff turnover, it says a lot about how TLH does things that every two years they hold a long service dinner for employers who have achieved 10 years with the business and these now number over 80 people. In fact 20 staff have worked more than 20 years and one has been there for over 40 years (two if you include Laurence Murrell). The business was started by Laurence Murrell’s parents Cliff and Joyce when they acquired the Derwent, then a 28 bedroom building (it now has 174!) in 1947. The Victoria followed in 1978, the Toorak in 1986 and the Carlton in 1992.

TLH LEISURE RESORT: The Aztec Pool

All are three-star except the Derwent but there are plans to upgrade its current two star status. Along the way, the f amily wished to give something back to the community so gifted land nearby on which now stands the Riviera International Centre. Laurence Murrell’s wife Karen is a director of TLH and deals with property issues, marketing and refurbishment designs and is supported by t h e i r d a u g h t e r C h a rl i e. Laurence’s brother Dennis and sister Christine are also executive directors. Laurence Murrell said: “All my family have given me huge support and have helped to bring values to the business which has made it a success. “Our aim now is to further develop year-round trade and with it year-round local employment and to do this we must continue with innovative developments and refreshing what we’ve already got.

TLH LEISURE RESORT: Christine, Laurence and Karen

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“We’re in a dynamic industry and you can’t stand still. You must adapt your values and practices to reflect changing times. “This has to be underpinned by great staff who can deliver the product and I’m delighted that the most common comments about us on TripAdvisor are about staff friendliness.”

TLH LEISURE RESORT: Laurence Murrell

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Third generation of family ownership Beverley Holidays and Whitehill Country Park

BEVERLEY HOLIDAYS: Claire Jeavons BEVERLEY Holidays is one of the best known tourism related businesses on the English Riviera which is not surprising as it’s been around for 56 years and is now into its third generation of family ownership. The business was started by the late Stan and Marion Jeavons with a handful of tents and caravans on Beverley Park which they bought in 1959. Since then it has flourished and grown dramatically and today operates a number of other parks under the Beverley Holidays banner, including Whiteh i l l C o u n t r y Pa rk wh i ch opened in 2004, Beverley Bay which was re-branded from Ashvale and Beverley View which was re-branded from Meadowside, both in 2014. The multi-award winning operation offers caravans, luxury lodges, touring and camping pods as well as caravans for sale and residential park homes. In

ANDY STYLES TQAS20140317F-05_C

all there are 900 units across all accommodation types with over 50,000 customers each year enjoying a dazzling array of facilities, activities and entertainment. They have 40 fulltime, year round employees and this rises to over 150 in the high season. Beverley Holidays belongs to the most prestigious trade group in the industry including ‘Best of British Touring and Holiday Parks’ and ‘Premier Parks’, where membership is based on reaching a specific quality level. Stan and Marion’s three sons, Peter, Alan and Michael all worked in the family business. Between them, they have seven children, five of whom are employed in the business across the various departments from grounds to sales to customer service – Nicola Furneaux, C l a i r e J e avo n s, M a t t h e w

BEVERLEY HOLIDAYS AND WHITEHILL COUNTRY PARK: From the left, Matthew Jeavons, Katy Lamsin, Michael Jeavons, Tim Jeavons, Nicola Furneaux and Claire Jeavons SUPPLIED Jeavons, Katy Lamsin and Tim Jeavons. Michael Jeavons said: “Being a family that offers family holidays is part of our brand. It forms a relationship with our customers which lasts over time. We are particularly proud of being a family that has attent i o n t o d e t a i l . We p r i d e ourselves in offering the best service and going the extra mile. “The demands of holidaymakers have changed over the years. They are much more demanding today with higher expectations. We have been able to adapt to changing times and being in a family unit has

helped us make decisions quickly. We have also addressed this by continually reinvesting time and money in all our products from the accommodation and facilities to customer care. “We are committed to good customer care and our parks thrive on the love, time and effort of the family. Our challenge is to keep improving what we offer in terms of facilities and service which have been the cornerstones of the business from the outset. The conBEVERLEY HOLIDAYS: Claire Jeavons ANDY STYLES TQAS20140317F-01_C tinuity that a family business can offer is very important and now, as the second generation begun to discuss succession apply now are carried into the nears retirement, we have issues to ensure the values we future.”

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Celebrities step out in Herring shoes

AUSTINS: From the left, store director, Trevor Boobyer, David Austin and Mary Austin

TORQUIL

MACLEOD TQTM20140813C-001_C

‘Austins Quarter’ is focal point in Newton Abbot Austins Department Store WHEN Robert Austin found suitable new premises for his small drapery business at 6-8 Courtenay Street in Newton Abbot in 1924, it’s unlikely his vision for the future would have included Austins Department Store expanding to include stores on all four corners surrounding the town’s iconic clock tower. Over the next 90 years, the business thrived on a reputation for value, variety and customer service but it wasn’t until the 1970s that the physical footprint of the business expanded. First came a doubling of the retail space on Courtenay Street and the opening of an in-store restaurant. The former Globe Hotel on the opposite side of the road was acquired in 1992 and used first as a furniture store and now as a cookshop with linens and soft furnishings. Four years later a toy store opened in Wolborough Street, followed by a carpet store and craft store. In 1999, Austins opened a dedicated furniture store opposite the existing toy and craft operations. Currently, work is in progress to expand a menswear department adjacent to the toy store due to be completed by November in time for Christmas. The ‘Austins Quarter’ is now a focal point in Newton Abbot but, according to David Austin, grandson of Robert, it wasn’t specifically planned. He said: “We are a traditional town centre department store and have needed to be adaptable and innovative to compete with the rise of out-of-town retailing and more recently, internet shopping. “We have done this in a number of ways one of which was acquiring neighbouring properties as they became available. What they have in common is strength of style and character which I think has been conserved under our ownership and has given our business a strong representation. “We care greatly about our customers, our staff and our position in the community and I like to think we have generated mutual respect.

We employ 80 full time and 100 part-time staff and these people are the backbone of the business. We have a culture of customer service and working together. “Like my father, who lived to be 100 and was active in the business until his late 90s, I am a lifelong retailer and this continuity has had a positive effect on our employees. The stability makes them feel safe and secure and many of them have been with us a very long time. Our store director, Trevor Boobyer, for instance has been with us since the 1980s. “My sister, Mary White, also sits on the Board of Directors. Being owner/managed allows us to take a longer view of investment and expansion. “We reinvest profits into the business, and are not obliged to make financial arrangements for outside shareholders. We have always paid for our developments from our own resources which also helps to protect our future by not having debt or having to dilute equity. “Most recently, the refurbishment of the men’swear and toy departments is costing £1 million and around £250,000 has been invested in solar panels on our buildings which will help control future energy costs.” David Austin started helping in the business when he was 11 years old and recalls how he used to repair damaged sewing boxes ready for the Sale. “I’ve done most things in the business and I’m very much involved in a hands-on way on a daily basis. I trained at the Royal Academy of Music for four years before returning. It is a privilege to be part of such an interesting and thriving business, and my aim is to look after the family business for its long term future.”

HERRING SHOES: Richard Herring, left, with celebrity client Theo Paphitis

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Herring Shoes QUALITY is the key to success at Kingsbridge based Herring Shoes – quality products, quality service and quality endorsements from a range of celebrity customers for their quintessentially English shoes. The business was started in 1966 by Richard Herring who opened his first shoe shop in Cheltenham and over a 10 year period four more followed. Richard’s son, Adrian, joined the business in 1990 eventually buying some of the shops from his father in 2000 before turning his attention to online retailing and relocating to Devon where he would grow the business and enjoy the Westcountry lifestyle. Managing director Adrian and his wife Kate, who looks after the accounts, now run the business from a 12,000 sq ft office/ warehouse in Kingsbridge, South Devon and operate a highly successful retail shop in the town. In total they employ 16 people. Today the business supplies exclusive English manufactured brands such as Barker, Church’s, and Cheaney & Loake as well as retailing a range of Herring’s own designer shoes which are manufactured in Northampton and sent all over the world. In fact, 75 per cent of Herring’s retail sales are exported and such is a measure of its success, that whilst Herring is the UK’s largest private retailer of the famous Church brand, its own brand outsells them. “Our business comes down to passion,” said Adrian Herring. “Passion for designing and selling great shoes and passion for making our customers happy. We are not cheap but we do offer value for money.

Competitors may match us on price but not on service – order on line in the UK today and you’ll be trying your new shoes on tomorrow. What competitors can’t do is sell Herring shoes. Our website and shop are the only place to get them. “These shoes have my name on them so I’m determined that they will be the best. Every shoe is checked and polished before they leave the warehouse so mistakes and faults are rare.” Herring designs have certainly hit the right note in the world of celebrity with the likes of former Arsenal footballer Ian Wright, Theo Paphitis from TV’s Dragon’s Den and most of the Bath Rugby team. Classic designs include Oxfords, a brogue style Gladstone and boots for the country gentlemen. Two tone finishes are popular and the Herring ‘Exmoor’ combines chestnut calf leather with tweed woven at Deborah Meaden’s Fox Bros mill in Wellington. Herring also offer a range of more casual footwear, ladies shoes, belts and ties and are launching their own-brand clothing this autumn. Herring Shoes started as a family business and continues upholding family values putting service and care before profit. The business owners very much operate the business on “family values” looking for anyway that they can to assist employees. “A happy team ultimately leads to happy customers!”

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‘Trago experience’ expands beyond shopping Trago Mills

TRAGO MILLS: Bruce Robertson

TRAGO MILLS: A café at the Newton Abbot store

TRAGO MILLS: Garden Centre, Newton Abbot THERE can’t be anyone in the West Country who hasn’t heard of Trago Mills and most will have visited one of the group’s three stores located in Liskeard, Falmouth or Newton Abbot. The business was started by the flamboyant Mike Robertson in the early 1960s, when he stumbled upon the entire liquidation stock of the Petters small engine factory. Today it sells over 120,000 products across 38 departments in over 450,000 sq ft of retail space, employs around 1,000 people and turns over £84 million. The first store opened on the site of a former gunpowder facto r y i n t h e G l y n n Va l l e y between Liskeard and Bodmin where today there is 190,000 sq ft of retail space, while the Trago operation on the Falmouth harbour front comprises 47,000 sq ft of retail space. The numbers get big again at the Newton Abbot site which is situated in 110 acres of the South Devon countryside and comprises over 230,000 sq ft of retail space, a motorcycle dealership (Trago2Wheels), restaurant complex, Family Fun Park, miniature steam railway and The Garden Park. The group is now run by Mike Robertson’s son Bruce, an equally strong character who has been responsible for devel-

oping and adapting the business to reflect changing customer demands. Bruce Robertson became chairman in 1988 and he began to further extend the ‘Trago experience’ beyond barg ain shopping including the development of a visitor attraction, show gardens and both indoor and outdoor retail areas in a visionary £12 million investment at Newton Abbot. Group head of marketing, Henrietta Lilley, said: “As chairman, Bruce provides strong leadership and strategic direction but he is also the stores’ car pet buyer, which keeps him grounded in the original values of Trago – buying at the best possible price and passing the benefit to the customer. He drives a hard bargain to get the best deal for Trago customers and expects the rest of the buying team to do the same. That doesn’t mean we don’t work with top brands and the best suppliers; we do but margins are low and the profit is in volume. “Bruce is a hands-on owner and can be seen every day in one of the stores. Retaining the traditional customer relationship is important but he has his finger on the pulse with regards to how markets and trends change and, therefore, the need to adapt. A cor-

porate structure is powerful but rigid and structured. As a family owned business, we can react quickly to new opportunities. Trago has personality and can take on the characteristics of the people it serves.” Back in the 1990s, there was little competition for Trago’s out-of-town retail model but today the competition is intense. The stores are constantly looking for new things for customers to do on sites with events and seasonal shopping being particularly important for increasing footfall. Trago uses customer feedback surveys and social media to gauge changing demand. It also uses digital marketing techniques as well as traditional media and has developed a ‘click and collect’ website earlier this year. The objective, according to Henrietta Lilley, is “to maintain a commitment to great value and unbeatable prices for our customers and achieve sustainable long ter m growth”. Plans are in hand for a fourth store of around 200,000 sq ft to be opened in Merthyr Tydfil in the next few years and succession may be on the agenda as Bruce Robertson has a daughter currently learning the ropes by working her way around the business.

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Fourth generation devoted to families

T&I Stockman Ltd

T&I STOCKMAN is believed to be the only local family run funeral directors based in Paignton and Brixham, serving all of Torbay and South Devon. The company is owned by Ian Loram who runs it with the help of his wife Vanessa and their two sons Dominic and Seb, who are the fourth generation of their family to be in the funeral service business. They are assisted by highly experienced and respected funeral directors Les Down, who is particularly well known in the Teignbridge area, along with Robert Hunt and Stuart Gayton, both of whom formerly worked in Well Street in Paignton before they moved to T&I Stockman. Robert and Stuart are now based at Stockman’s new Chapel of Rest in Preston, Paignton where there is also a private Service Chapel.

T&I STOCKMAN LTD: left to right: Ian, Vanessa, Dom and Seb Loram, Stuart Gayton and Robert Hunt SUPPLIED Stockman’s comprehensive funeral service is based on an unwavering commitment to providing a personalised service with the highest level of care and support 24 hours a day. As a family-run business, T&I Stockman offers competitively priced funeral arrangements and offers a more relaxed alternative to public crematoria, if desired, by having its own service chapels, whilst still being able to provide more expansive services with specialised hearses (horse drawn or motorcycles) and environmentally considerate funeral options such as woodland burials in Torquay as well as comprehensive support for the bereaved.

Seb Loram said: “We serve the community where we live and we strive to provide the standards of service we’d expect for ourselves. We are known for our flexibility and bespoke service and this gets us recommendations from the general public and referrals from professional firms. Over many years we have built strong relationships with local families who have remained loyal to us and we will have often looked after many generations from the same family. “It is a pity that so many traditionally respected names in the funeral service are now in national or corporate hands – even the business started by my grandfather, Douglas

Loram. As the Good Funeral Guide says: ‘Beware the name above the door, it might look like a family business but often it’s not’. It is my belief that our family run business is able to offer a more personal and flexible service to the bereaved than the national groups, we even look after many funerals at weekends if families wish. “You cannot buy reputation. We are not driven by sales and profits, but we are devoted to families and the quality of the service we offer and the respect that we give all our clients pays dividends. “We want to support other local businesses and to provide our clients with genuine choice, whether it is flowers, catering or another funeral choice. We want families to choose only what they want – that’s how we have always run our business and this approach has served us well.” T&I Stockman care for many funerals a year. It employs 15 full-time staff and a further five on a part-time basis. Many of its families come to the company through recommendations and referrals by word of mouth, but it still advertises in the local paper and in church magazines while its on-line presence is growing. The team also hold seminars with nursing homes so that their staff are well equipped to pass on accurate and assuring information to residents and their families. T&I Stockman is also a Pre-Payment funeral plan specialists, advising people on how best to make allowances towards their own funeral arrangements.

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Embracing new technologies

HUMPTY DUMPTY CHILDCARE LTD: Aidan and Connie Willcocks with Martha Turnbull ANDY STYLES TQAS20140818B-002_C

Minding the children

ANDY

STYLES TQAS20140814H-001_C

Humpty Dumpty Childcare Ltd HUMPTY Dumpty Childcare is a family run limited company delivering professional childcare and nursery education at three purpose-built centres in Dartington, Dartmouth and Newton Abbot. Each nursery is divided into ageappropriate areas run by professionally qualified and experienced staff to ensure children experience fun and play as well as the best start to their learning. The business also operates HDC Training providing a range of recognised childcare qualifications for the Early Years sector across the South Hams, Teignbridge and Torbay. The company has 46 employees involved in the nursery side of the business where they look after upwards of 130 children on a daily basis and a further eight in the training company. It offers full day care for children aged three months to school age, after school and holiday care for up to 11 year-olds, respite care and care for young people with special educational needs up to 18 years old. Humpty Dumpty Childcare was founded by Connie Willcocks in 1989 and will be celebrating its 25th year in business this October. She is supported by her 27 year-old daughter Martha and by her 23 year-old son Aidan who between them specialise in finance, marketing and social media. Connie Willcocks said: “I had been a chef and had never thought about childcare until Martha came along. Combining the roles of chef and mother was never going to be easy so when someone suggested I started my own childcare business that’s exactly what I did. Back then I had no formal qualifications but hired professionals who did. “The success of the business hinges on the confidence that parents have in leaving their children with someone else. The quality of our staff and the care/education they are seen to deliver is paramount. We

EXJET: From the left, Laurie, Rachael and Colin Dowell, Emily Williams and Rob Dowell

invest in ongoing training and continuous professional development and are accredited with Investors in People. The fact that we are an owner/managed business and our staff are like an extended family are important factors in engaging with parents. Nevertheless, we need to balance the needs of parents with the requirements of running a business for profit. “As you can imagine, we are a highly regulated and inspected sector and it’s a major challenge keeping up with the statutory framework and changes made by OFSTED. It’s also a labour intensive service where your employees are your biggest asset so recruiting the right staff and complying with employment legislation are also important issues for us. “Our approach encourages creativity, independence, imagination and curiosity, with the aim of equipping children with the skills needed for entering primary schools and developing their learning in the future but also giving them the fondest of memories to take with them throughout their life. “Childcare is hard work with long hours and you really have to be passionate about it. It is unbelievably rewarding to watch children growing and without doubt it’s the best job in the world. Our aim is to use our experience to keep improving and use our strong reputation for the provision of quality childcare to expand to two more sites. “I think this would be difficult to achieve without the help of my children in the business and the support of an incredibly talented and loyal staff.”

Exejet Services Ltd ESTABLISHED by Rachael and Colin Dowell in 1986, Exjet Services provides a full range of drainage and pipe services for clients including construction and civil engineering companies, government departments, health authorities, public utilities, rail networks and the retail industry as well as the domestic market. Services include drainage surveying with CCTV, pipe lining and repairs, blockages and planned maintenance, laser profiling, asset mapping, excavation and design and build. Having grown from humble beginnings in a couple of rooms, the business now operates in a highly regulated and technically advanced sector employing 45 people, managing a fleet of over 30 vehicles with a considerable investment in hitech equipment. Recent expansion has prompted a move from Yalberton Industrial Estate in Paignton to a new unit on Woodview Road behind South Devon College, which has been acquired by Colin and Rachael as a SIPP (Self-Investing Personal Pension) and converted into a modern energy efficient facility purpose-designed to meet both current needs and future

requirements for Exjet’s strategic development. As managing director, Colin Dowell oversees all the operational side of the business while Rachael looks after finance and administration. Of their five children three work for Exjet – 40 year-old Laurie is the CCTV manager, his brother Robin, 37, is a senior manager in the repair division with their daughter, 32-year-old Emily Williams working in HR and Payroll. Colin Dowell said: “We have steadily built a strong reputation for the quality of our services and levels of customer care and this has been supported by a range of industry accreditations which add to our credibility and professionalism. “This is underpinned by us being an owner/managed business. Family enterprises are not without their challenges but the positives outweigh the negatives. We have a collective pride in the business which generates reliability and a commitment to the end product. “We will have to plan for succession at some stage but this holds no fears for us as my sons have grown up with the business and know it inside out. They started at the bottom and

received no favouritism which has helped their progress to managerial roles and gained respect from other employees.” Rachael Dowell added: “The continuity provided by a family business has helped us retain staff long term, in one case over 20 years and they take on our culture of delivering for the customer. It can be a difficult, and at times, dangerous job so we invest heavily in health and safety training.” Drain and pipe technology has become more sophisticated and training to maintain industry standards is ongoing. One of Exjet’s biggest challenges is finding new employees with the right skills and the willingness to take on a demanding role. Colin Dowell explained. “These jobs are about solving real problems and not delivering theoretical solutions. Our employees must be highly selfmotivated, trained to comply with industry standards, be computer literate and be prepared to work unsocial hours often in all weathers. Put like that it doesn’t sound too enticing but people with the right character will find it very rewarding.”

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At the cutting edge of technology SRA Developments Ltd

SRA DEVELOPMENTS: The Duke of Gloucester on a tour of the Ashburton premises with Dr Steve Young in 2012 IT’S no pun to say that award winning surgical equipment designers and manufacturers, SRA Developments, are at the cutting edge of technology. The family owned company based at Bremridge near Ashburton makes ultrasonic products for medical applications including what they claim is the most efficient ultrasonic scalpel in the world. However, SRA’s journey to competing with some of the medical sector’s corporate giants and winning a Queen’s Award for Enterprise along the way, started in very different circumstances. In the 1980s, Dr Mike Young, then a consultant in ultrasonic industrial applications, had the idea of using the technology for cutting tiles. An appearance on TV’s iconic science programme, Tomorrow’s World, caught the eye of two orthopaedic surgeons and Mike’s life was changed forever. He said: “We first developed a rudimentary product designed to extract cement from implants that needed revision at a time when regulatory compliance was more lax than it is now. We were supported in the early stages by grant-funding including a DTI SMART Award.”

SRA DEVELOPMENTS: From the left, Dr Steve Young, Dr Mike Young and Rob Young

That “rudimentary” product kicked off a design and development process which led to the manufacture of SRA’s Lotus Shears, a ground-breaking ultrasonic tissue cutting and sealing device and a revolution in laparoscopic or keyhole surgery. The business has grown into an extensive design, development and manufacturing operation through a process of original ideas with maximum potential value, defendable intellectual property, rigorous product protection through patents and investment in production capability. According to Mike Young it has made SRA “better than the best”. He said: “Our costeffective systems are designed differently. They are technically and clinically the best and that puts us in a leading role.” SRA is undergoing a refurbishment of its R&D facility near Ashburton and has benefited from a Regional Growth Fund grant of £150,000 towards the construction of a new skills laboratory which will be used to host surgeons from around the world for simulated operations training. Surgeons from several countries including 10 from South Korea will visit the Bremridge site this summer.

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The business has also employed 12 new employees with another eight anticipated and is especially keen on finding skilled engineers capable of working on medical devices. Six members of the family now work in the business which employs 75 people. In addition to Mike Young, his sons Steve and Rob are respectively technical and financial directors, while Mike’s wife Heather still looks after aspects of HR. There are three other non-family directors. “Family cohesion,” said Mike Young, “makes the business strong. It brings about dedication to the task in hand with a spirit of determination and cooperation. However, we must look after our people. Our employees are part of our wider family and that, too, makes us strong. “We have grown to what we are through our own efforts and hard work. We didn’t want venture capital or other external investment. We have a prominent profile internationally which adds greatly to our strength and durability.”

SRA DEVELOPMENTS: HRH Duke of Kent opening the new clean room in 2013. Also in the picture is Dr Mike Young

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Multi-million pound business Coach firm embracing change to move forward Cavanna Homes

AB COACHES: From the left, Lucy, Martin and Beckie Chalk TORQUIL MACLEOD TQTM20140813B-001_C

AB Coaches AB Coaches was established over 25 years ago and has provided a reliable coach service throughout South Devon and the West Country offering a varied choice of excursions and travel. During and after the 1985 government de-regulation of UK bus routes, AB Coaches expanded including the purchase of two local coach companies. The fleet now consists of 17 vehicles, each garaged and maintained by in-house technicians at the company premises in Totnes. It provides a broad spectrum of coaching services including private hire and ‘home to school’ contracts but also undertakes school outings, weddings, bowling tours, theatre trips, sports fixtures as well as school tours and daytrips. The business incorporated in 1997 and its shareholders comprise husband and wife team, Martin and Beckie Chalk, and Brian Smith from whom the Chalks bought the business but who retains a small interest and gives ongoing support. Martin and Beckie’s daughter Lucy also works in the business which has a total of 20 employees. Martin Chalk commented: “The coaching sector has gone through some difficult times in recent years. Where we were once a small coach business and one of many in Torbay, we

are now the largest. We’re in no doubt we have survived because we are a family run business. We have built a good reputation for service and by trading on our good name; we have survived the difficult times. “Drivers make or break a business like this. They are the customers’ interface and represent the company. We invest in ongoing training for them including current legislation and customer relations and we are only as good as the service they give.”

BELIEVED to be one of the largest privately owned house building business in the South West region, Cavanna Homes is an entirely family owned enterprise. The company was established in 1923 when Philip Cavanna and his brother Ray moved to Torbay from Watford bringing a wealth of building expertise and the slogan “Cavanna - Builders of Repute”. Today the business remains in family hands with the third generation at the helm. Annually it achieves a multi-million pound turnover; the result of sustained year-on-year growth and a deserved reputation for building good homes. In the early 1980s, Cavanna Homes were building about a dozen houses each year. Today the company employs around 90 staff and 200 contractors and the number of homes is approaching 200 per year. In recent years, Cavanna has done more than just weather the recession. At a time when industry-wide output halved, a cash positive position provided the business with a springboard and it has actually grown significantly since the downturn that started in 2007. Ownership is held by 42 family shareholders. Three of them, Jeremy Cavanna, his brother Jonathan, and their cousin Martin have managed the business for the last 30 years. They now have responsibilities of executive chairman, product development, and Health and Safety and customer care, respectively, and they sit on the Group Board alongside two non-family members; Eugene Rapson, the managing director and Brian Bargent, finance director. Four years ago, the family turned their attention to succession which prompted a restructuring at senior management level. Jonathan Cavanna explained: “We all want to see the business continue into the future and flourish and it will only do that with the right people carrying it forward. “Jeremy, Martin and I thought the time was right for us all to move into more strategic group roles and pass the operational side to people with proven professional experience and ability to take the business forward. “It’s important that we attract and retain the right people. Being a successful company is one thing but working with people who really want to be here is equally satisfying. We want people who can share our family based business values and our commitment to customer satisfaction. “We try to look at ourselves and what we do through the customers’ end of the telescope, and we also regularly self-examine and benchmark our performance against industry standards. “This has positive outcomes both for our staff, with whom we openly engage and inform, and with our customers. “We are one of only 18 UK businesses to be awarded the House Builders Federation 5-Star award for cus-

CAVANNA HOMES: From the left, Martin Cavanna, Jeremy Cavanna and Jonathan Cavanna GUY NEWMAN tomer satisfaction, and have won a range of awards for the quality of our work and for staff satisfaction. This is an important result for us.” The housing market is a volatile place to do business and while Cavanna Homes is looking for continued growth, they never lose sight of the dangers inherent in the sector. “Our shareholders,” continued Jonathan Cavanna, “have known the business all their lives and this allows us to take a longer, more prudent view of growth and investment. We have also learned not to get carried away when things are going really well and not too gloomy when times are tough. “Our aim is to be a good business partner to those we work with whether they are purchasers, land-owners, suppliers, subcontractors or professional advisers. “We want to build houses that people want to live in, and we also set out to engage with the communities where we work, with a special effort going into our relationship with and support of schools and local causes.”

Beckie Chalk added: “Being a family unit allows us to keep our finger on the pulse. We always remind ourselves that an AB coach full of people is an AB coach with 50 potential customers on board so the way each of them is treated can have a positive or negative effect.” AB Coaches’ biggest challenge is rapidly changing legislation and lack of recognition of the value of coaching services. “We are very proud of the professional service we offer and the contribution we make to the community. We will continue to embrace changes to legislation and push our business forward” said Martin Chalk.

CAVANNA HOMES: Jeremy Cavanna alongside Vaughan Lindsay from the Dartington Hall Trust at the recent turf cutting ceremony at Origins in Dartington – marking the beginning of a £17million regeneration project which will see the development of new homes alongside employment space

CAVANNA HOMES: Cavanna development in Plymouth

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Thursday, September 11, 2014

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Taxi firm delivers on technology Torbay Taxis Ltd TAXI businesses succeed if they deliver a service that meets customers’ expectations in terms of responsiveness, reliability, convenience and driver standards. To stay ahead of the game, Torbay Taxis Ltd has made considerable investment in state-of-the-art technology and has supported all its drivers in gaining NVQs and BTEC qualifications in road passenger transport. The award-winning company, which was established over 40 years ago, was acquired by Paul and Jane Filby in 1997 and they set about growing the business and improving the customer experience. They are joined on the board by directors by Louisa Weir and Paul and Vicky Le Huray. The business currently employs 180 ow n e r / d r ive r s ( i n cl u d i n g l a dy drivers) providing the full range of pre-booked private hire services including air, sea and rail transfers with

vehicles accommodating up to eight passengers. There are 30 other members of staff ranging from telephonist and dispatchers to driver managers who check driver standards in terms of uniforms, vehicle presentation and monitoring customer feedback. Investment of around £250,000 in recent years has ensured that Torbay Taxis Ltd delivers on service. Its ‘Autocab’ system, which provides taxi booking, dispatching and fleet management software, has been upgraded to include text and ring back. This advises waiting passengers of the make, model and registration of their taxi as well as time of arrival. In-cab technology includes new data heads which incorporate SatNav, a meter, job information and tracking and passengers can now download a special app that stores regular taxi journeys which are bookable by simply touching the screen, checks the

TORBAY TAXIS: Family group status of your booking and tracks your taxi’s progress. Director Paul Le Huray said: “It’s important to keep moving forward and investing to improve service and standards but none of this matters

unless the customer experience is right and this is down to the drivers and the lead we give them. “Delivering a professional service is important for business account hold-

ers and for our regular members of the public.” In 2010, Torbay Taxis won the Go Skills “Go for Excellence Passenger Transport Award” in the category of “Small Company of the Year” on the strength of its commitment to driver training. The NVQ Level 2 and BTEC courses, which involve coursework, tutorials and on-line sessions for all drivers, cover a range of topics including customer service, passenger transport legislation, equality legislation and dealing with disabled passengers. Additionally all the company’s drivers are DBS checked (the Disclosure and Barring Service has replaced CRB, the Criminal Records Bureau). Paul Le Huray added: “This is a family owned business with family principles and values. We aim to be professional and reliable and provide a service people will trust and have confidence in and it’s vital for us that our drivers take on these values and apply them when dealing with our customers. We want repeat business and this is the only way to ensure we get it.”

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