WMN Annual Business Guide_July 2016

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Annual Business Guide 2016 Featuring the top 150 companies in Devon & Cornwall

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2 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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Sponsor’s overview

Britain’s Brexit referendum decision has created a political environment the like of which we have never seen before

Westcountry’s voice must not be drowned out What now? What’s next? What?

Exclamations of incredulity have been rife over the last few days. Britain’s Brexit referendum decision, whatever side of the fence you sit on, has created a political environment the like of which we have never seen before. By the time you read this, there is a good chance any copy written for this year’s Western Morning News Annual Business Guide will be out of date. We live in turbulent times.

For all of us in business, reading the runes has been tough. After the General Election of last year and the prospect, quickly dashed, of another coalition government, the business community has had to cope with not just one or two but three different budgets in the last 12 months. In the build up to the referendum

The region’s business community and political leaders must all pull together to avoid taking us back into a recession after the turmoil of Brexit, argues WMN Editor Bill Martin

many promises of investment, and subsequent growth and job creation all but shuddered to a halt.

Uncertainty became the buzz word in boardrooms up and down our region and little happened.

So now what? What happens now that Britain has voted to leave the world’s largest trading bloc and a market of 500 million customers?

In reality, the truth is that nobody really knows.

At the time of writing there is speculation as to whether there will be a second referendum, and there is surprise that Boris Johnson, the leader of the Brexit campaign and the favourite to be the next Prime Minister had decided not to enter the Conservative Party leadership race. The official opposition seemed to be in almost terminal meltdown.

Uncertainty on this scale cannot be good for business.

We must all hope that our

political leaders will act quickly and decisively in reestablishing some form of credible Government.

With our region made up of 85% small and medium sized mainly family-owned businesses, many of them trading locally or nationally only, perhaps the impact will be minimal. But if the country’s economy takes a hit or worse slips back into recession, then many of Devon and Cornwall’s sectors of activity will feel the pinch. Regardless of any recent Brexit uncertainty, it has been a tough year for our region’s firms.

The region continues to have a high employment rate in the region (the highest in the UK) and a very low level of unemployment.

These are good things, but this does mean that we have a

very small pool of workers to draw from when looking to expand.

It is a priority for all businesses to represent and market the benefits of the region to potential employees, who are still being lured away to London.

The banks have been more willing to provide finance to SMEs for acquisitions and investment in plant and premises, but uncertainty could soon undo that and reverse the lending trend.

According to Matthew Lee, managing partner at Bishop Fleming, periods of economic uncertainty can “knock business leaders’ confidence and mean that they sit tight”.

The Brexit debate has been bad news for business. It has created a period of uncertainty which has stalled investment

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decisions, some of which will remain stalled as opportunities pass. Here in the Westcountry we are used to having to adapt, to be nimble and find ways to be leaner and smarter in a region that suffers from poor connectivity and a longterm under investment in infrastructure.

Now more than ever – with the relentless noise that Brexit will create – it is vital that we and our MPs continue to bang the drum for the Westcountry in the corridors of Westminster and lobby for rail, road and broadband infrastructure investment and whoever is our new Prime Minister keeps the promises made by his predecessor. It is vital that the region’s business community and political leaders all pull together to avoid taking us back into a recession.

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Sponsor’s overview

Region’s economy strong and competitive Matthew Lee, managing partner at Bishop Fleming, considers risks and rewards in an uncertain world Much of the prosperity that is generated by the region comes from owner-managed businesses. By their nature they are at the sharp end of risk taking, as they are backing commercial decisions with their own hard-earned cash.

Periods of economic uncertainty can knock their confidence and mean they sit tight.

Although we have stable interest rates and low inflation, we seem to have been hit by a lull in business activity over the past few months, primarily due to Brexit uncertainties.

Employers are also facing an increasingly hard time from changes in government policy.

Owner-managed business have particularly been adversely affected by recent tax and pension changes.

The new dividend tax introduced in April has effectively increased the amount of personal tax paid by owner managers. It is a tax on income that has already been taxed and was ushered in without any prior consultation. Add to this

the Government’s savaging of the buy-to-let property market, a traditional bolt-hole for accumulated wealth.

Owner-managers are also grappling with the radical pension changes, which have made any kind of pension planning more confusing than it has ever been. On top of that, employers have faced increased time and cost in dealing with pension auto enrolment.

There are a couple of pieces of good news. One is the proposed reduction in the rate of corporation to just 17% by 2020, which should make inward investment into the UK (and hopefully into the region) more attractive. The other is the permanent setting of the level of annual investment allowance at £200,000, which provides a degree of certainty and makes investment in new plant and machinery more tax efficient.

Trading trends are becoming increasingly volatile. Dead periods of the year used to be restricted to Christmas and August, but the increase in holiday allowances across the board means that every month with a school holiday in it brings a lull in trading, which is becoming increasingly no-

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ticeable.

The Brexit debate has been bad news for business. It has created a period of uncertainty which has stalled investment decisions, some of which will remain stalled as opportunities pass. The EU referendum and its consequences have dominated the news, with so many conflicting stories over whether Brexit is bad or good for business. This has been very unsettling.

On top of this we have seen Brexit uncertainties cause a fall in the value of sterling against both the US dollar and the euro. While this makes our exports cheaper, it wreaks havoc with importers who face higher prices. There is a danger that this will lead to an import-led rise in inflation, which is not good for the economy.

Increases in the National Minimum Wage and the introduction of the new Living Wage are pushing up employment costs in business sectors where prices are static and margins are already cut to the bone. Add to this the apprenticeship levy that comes in next year and larger employers are facing quite a hike in employment costs, with nobody to pass these costs

Matthew Lee, managing partner at Bishop Fleming

onto.

At last super-fast broadband is starting to be delivered, but in many cases the anticipated transformation in performance has not happened, as aging connections form homes and businesses to the new cabinets throttle performance.

Modern economies need fast broadband speeds and our infrastructure is not up to the requirements of the new technological age. While there is

new investment in all-fibre broadband, Ofcom, the industry regulator, is pushing for 40% of the country to have access to the technology within a few years. More needs to be done to ensure the Westcountry benefits from this.

One high spot has been the opening of the A380 link road into Torquay. We hope that this will trigger a growth in Torbay, rather than being used as a good “escape route” to other

parts of the region.

We continue to have a high employment rate in the region (the highest in the UK) and a very low level of unemployment. These are good things, but this does mean that we have a very small pool of workers to draw from when looking to expand.

It is a priority for all businesses to represent and market the benefits of the region to potential employees, who are still being lured away to London. We have so much to offer and we will increasingly feel the pinch, as whilst we have a high employment rate, we also have one of the oldest populations, so pressure on employment will continue.

The vote for Brexit means there will be a period of uncertainty whilst the UK negotiates a new relationship with the EU. There could follow a radical strategy of cutting taxes and regulation.

In the short term we can expect a softening of output and a rise in inflation. It is also likely that sterling will depreciate further, though interest rates should remain low. Despite all this, the region’s economy is essentially strong, very competitive and open for business.

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Sponsor’s overview

Vote for Brexit means uncertainty will continue in at least the short term The Westcountry is known as a great tourist destination and can also lay claim to some of the finest weather (that is relative to the rest of the UK), but questions remain over how the region’s businesses fared in the pre-EU referendum period.

The region’s economy showed a slowdown in business activity due to doubts over the outcome of the referendum, which also affected consumer spending.

So even though businesses have enjoyed low interest rates and low inflation, and an increasing amount of funding has been available, caution over the EU result and its implications dampened confidence and growth.

There is concern that some spending, investment and recruitment decisions that were deferred because of the referendum will in fact remain so.

Quite often the moment passes and it stays deferred. The Bank of England alluded to this concern in its recent Inflation Report.

While 2015 saw small and medium-sized businesses (SMEs) borrowing more money than the year before, this year has seen uncertainty over Brexit, the US Presidential elections and China’s economy. These headwinds have spawned caution over taking on new debt. The Bank of England reports a recent softening in demand by companies for loans.

Where borrowing has taken place, traditional bank loans and overdrafts are not always regarded as the right avenue to pursue. Such products as leasing, crowdfunding, peer-topeer, and invoice discounting have grown in popularity with SMEs. Business owners are attracted to the greater flexibility offered by alternative finance providers that are more eager to lend, and on different and often more favourable ter ms.

Busineses have been increasing their reserves, so they don’t need to borrow, or borrow as much. For those who have sought funds from banks, around 80% of applications have been approved.

The banks have become more willing to provide finance to SMEs for acquisitions and investment in plant and premises. However, they are increasingly up against competition from challenger banks and equity houses who are looking to increase their market share of the debt market.

Earlier this year, Bishop Fleming gave evidence to a

Robert Davey , head of corporate finance at Bishop Fleming, examines how lending to businesses has been affected by uncertainty over Brexit, the US Presidential elections and China’s economy Parliamentary Committee investigating why businesses have experienced problems securing the finance they need.

We pointed out that as the financial markets have become more complex, they are not as easy to navigate and those businesses seeking finance were more likely to succeed where they had first sought advice.

Advice can help to secure the right type of finance for the right circumstances. Later this year high street banks will be under an obligation to provider borrowers with a signpost to alternative forms of finance, though how they will actually do this remains to be seen. Any kind of mechanistic signposting from a computer printout would be of no substitute for proper advice.

In addition, a well-prepared case for funding with a very clear evidence-backed proposition and a good management team is more likely to secure funding than an application that is not well considered.

While new grants from the UK government and from Brussels have also come to market, these tend to be geared more towards growth companies where job creation is likely.

As I’ve said before, the Westcountry has not displayed the hunger for growth that is prevalent elsewhere, with one of the lowest levels of publiclylisted companies in the country. It does, however, host many thriving, innovative, and growing owner-managed businesses, even though many of the owners do not see growth as critical to their continued success.

This means the region is less of a magnet for top quality management and for retaining talented graduates than places such as London, Birmingham, Manchester and Bristol. This perpetuates the Westcountry’s skills gap.

Add to this a lack of inward investment from major foreign companies, and what is needed is a mobilisation of every Westcountry business to promote our region as a great place to do business, for inward investment, for managers to build their careers, and for graduates to launch their careers.

The vote for Brexit means we

Robert Davey, head of corporate finance at Bishop Fleming continue to be in a period of uncertainty at least in the short term and while negotiations with the EU continue, perpetuating the pre-referendum caution over investment, acquisition and recruitment

plans. Some business opportunities in the region may well be lost as a result, but others may become available.

There could follow a radical strategy of tax and regulation cuts to help businesses, and

further depreciation of sterling will be good for exports. In the short term we can expect a softening of output and a rise in import-led inflation.

The Bank of England will continue to seek to ensure fin-

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ancial stability through its support to banks and its partnerships with other central banks. Good news for those wishing to obtain finance is that interest rates are likely to remain low for some time.

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East Devon

Cause for optimism for district’s economy and business in coming year and beyond It has been another strong year for the East Devon economy as the area finally emerges from some tougher times It has been another strong year for the East Devon economy as the area finally emerges from some tougher times.

There is optimism on the jobs front both at the Exeter Science Park as more and more tech firms move in or set up and also 450 new jobs at a Lidl logistics site.

In the past 12 months Exeter Science Park has gone from strength to strength, opening its second building, the Science Park Centre, which continues to attract science and technology companies, and commenced construction on the Met Office’s £97 million supercomputer.

Since 2012, more than £9 million has been invested in the development of estate roads, infrastructure and drainage systems.

In 2014, an additional £250,000 was invested to provide 1GB of ultra-fast broadband across the site and in 2015/2016 a further £2.5 million saw the completion of new roads, car parks and further plot preparation to make way for the Met Office HPC Complex within the second cluster to be developed within the Park, the Global Environmental Futures Campus.

The park announced an exclusivity deal with Exeter City Futures for a new world-class technology research facility that will be hosted within a Growth Deal Two funded building (funding through the Heart of South West LEP) next to the Met Office supercomputer complex.

Since opening in June, the number of tenants at the park has increased rapidly. There are 16 companies associated with the Exeter Science Park Centre and 19 tenants in total including the wider Park.

Gerry Shattock, managing director of the Exeter Science Park said: “There was never any doubt that there were amazing companies in and around Exeter but the park has allowed these companies to come together, to boost their profile and realise their growth potentials, in a supportive and energising environment. Having a criteria of entry that ensures the park is full of like-minded companies, has enhanced its reputation and attracted other companies in the same fields.”

The £4 million Seaton Jurassic Centre development opened in April and had 12,000 visitors inside its first month Across the old A30 is Exeter Airport which sits in East Devon. The airport owners have embedded its London City Airport services and added flights to Norwich. Passenger numbers are up, road improvements are complete and the surrounding business park is doing very well.

East Devon’s newest town, Cranbrook, has now passed 1,300 home occupations. Its first shops have opened, the Academy school has opened and the town’s railway station will open 2016. Plans are in for the next big phases of development and will eventually make Cranbrook the size of Barnstaple.

Moving further into East Devon, the council’s plans for Exmouth’s seafront improvement are moving forward.

The new Premier Inn maintains very high levels of occupancy and great ratings on Tripadvisor. Exmouth is Devon’s biggest town but it has long been recognised as under-performing in its retail offer.

Now this is changing. The council’s investments in the Strand piazza is proving a

great success with the local community and the businesses surrounding it. Most recently Marks & Spencer have been approved to build a food store next to the railway station.

Richard Cohen, deputy chief executive for East Devon District Council said: “Our market and coastal towns have achieved a number of outcomes that can give our business community further confidence.

“With the approval of our Local Plan, Sidmouth now has a significant new site available for business development in the Sid Valley. Along the coast in Seaton we are seeing a town that is rejuvenating its local economy: key to this has been the £4 million Seaton Jurassic Centre development which now makes Seaton the best place to go if you want to understand the geology and national history of the World Heritage Coast.”

The centre opened in April and had 12,000 visitors inside its first month.

Harry Barton, chief executive of Seaton Jurassic operators, the Devon Wildlife Trust,

said: “Seaton now sits slap bang in one of the world’s most important landscapes, this incredible history book of life’s story. At Seaton Jurassic we’ve tried to open a few pages of that book.”

Mr Cohen said the council is set to focus on Axminster regeneration investment for the future. New homes are being built and the town is preparing a neighbourhood plan.

‘We will work with this optimism to promote new jobs’ Richard Cohen, East Devon Council He said: “We will work with this optimism to promote new jobs and economic growth.”

Honiton has recently seen the opening of its Premier Inn and important traffic management improvements around the once infamous Turks Head junction.

This will be where East Devon District Council will build its new headquarters

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and the planning application for this brand new office building has been submitted.

Mr Cohen added: “2015/16 was a good year for East Devon.

“Our business parks continue near capacity and most recently Exeter-based logistics company, Still, moved into brand new premises at Hill Barton.

“This reflects our cooperative relationship with our neighbouring authorities and our shared desire to support growing businesses to stay in the area. We continue to benefit from the success of this wider economy and the good relationship that we and Exeter in particular have with our business sectors.

“There are still challenges that we need to address and the council is keenly aware of the need to encourage business growth that diversifies our jobs base, improves wage levels, gives all year round employment and generates productivity.

“There is always going to be business churn across the district and we are seeing our

high streets and town centres marry the success of independent companies in a strong mix with recognised national chains.”

The local authority is embarking on a consultation across the district and more widely that will inform an ambition to achieve more street markets and street trading to bring new vitality to our centres.

Mr Cohen said there were strong reasons for optimism about the continued delivery of high-quality jobs with some specific further investments in the wings.

East Devon has also put itself forward for Enterprise Zone status in the growth sites of the West End of the district and Government has agreed that the council should submit a business plan that could unlock real benefits for inward investment and many tens of millions of pounds to invest in infrastructure.

Mr Cohen said: “All in all East Devon has very good cause for optimism for our economy and business in the coming year and beyond.”

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South Somerset ‘There is an increased level of optimism in the local economy’ South Somerset District Council

South Somerset District Council advanced a number of projects within its Investing in Infrastructure Programme including Yeovil Innovation Centre

Westcountry’s gateway to rest of UK has right ingredients for commercial success Picturesque countryside, market towns and good road and rail links have led to increased interest from businesses keen on making a base in South Somerset

South Somerset offers a blend of attractive countryside which is intermixed with busy, flourishing, old market towns – and it also happens to be closer to the rest of Britain than anywhere else in the Westcountry.

Add good rail and road communications, and you have a recipe that should ensure financial and economic success.

This seems to be reflected in the present commercial story of the area.

For example, since March 2015 there has been a decrease in the numbers of Job Seeker’s Allowance claimants monthly in South Somerset, with a current figure of only 0.9% compared with 1.2% in the South

West generally, and 1.8% nationally.

A spokesman for South Somerset District Council told Western Morning News: “There is an increased level of optimism in the local economy which is reflected in the level of enquiries about finding premises in the district, from business start-ups and those looking to expand.”

This might partly be thanks to the fact that the council has advanced a number of projects within its Investing in Infrastructure Programme.

These schemes include the Yeovil Innovation Centre, employment land in a number of towns across the district and a Chard Town Centre regeneration programme.

Now the council’s Economic Development Team is in the process of writing a new strategy for the period 2016 to 2019.

“This strategy outlines a number of actions South Somerset District Council will take

to drive and facilitate the economic diversification, resilience and capacity building of the district,” said the spokesman.

Among the many good news schemes and projects within the area is the fact that superfast broadband is now available in a majority of the businesses premises in the South Somerset area.

“More premises than ever before are now linked thanks to the successful Connecting Devon and Somerset programme which has benefited several of the district’s businesses,” commented the spokesman.

“The increased availability of super-fast broadband has opened up fantastic new opportunities, facilitating more effective working practices and greatly improving productivity.”

When it comes to bricks and mortar, a planning application has recently been submitted by the Abbey Manor Group for a

major business and technology park at Bunford Hollow, near the village of North Coker.

The area’s Economic Development Team spokesman commented: “Many jobs could be created through this ambitious scheme which would see fields transformed into four zones – a technical village, technology park, central square and roadside campus.”

He added: “Yeovil College is further growing its construction skills capacity by opening a purpose-built facility.

“This is to help meet the large demand for construction skills created by the new Hinkley Point C project.

“The development of the new centre has been financially supported by the Heart of the South West Local Enterprise Partnership funding.

“A grant of over £600,000 has been put towards the build cost and support from the Screwfix company, a valued industry partner which is working with

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Yeovil College on a number of different projects.”

In the meantime the district council has been supporting the Next Generation Somerset campaign, which promotes apprenticeships and increases local awareness of the many and varied opportunities that exist in South Somerset.

“The Economic Development Team will continue to support future campaigns and work closely with Yeovil College to ensure that the local workforce has the skills needed to meet industry demand,” said the spokesman.

“The district already boasts a number of award winning apprentices from companies such as Perspicuity and Intelligent Enterprise Products (IEP) who are based at the Yeovil Innovation Centre and Screwfix.”

Among South Somerset’s more successful businesses are companies like Probiotics International Ltd (Protexin), which manufac-

tures healthcare products for a wide range of uses in the human, veterinary, equine and agricultural markets.

The company was awarded the Queen’s Award for Enterprise for a second time, in recognition of the its outstanding achievement in the international trade category.

This award is the highest business accolade a UK company can receive and is recognised globally.

Nematic is the Chard-based company behind the well known and loved Henry vacuum cleaner – and it reported a successful year in 2015.

The company has plans in place to ensure further growth this year and is working on a 70,000 square foot expansion of its Chard facility.

It is hoped that the factory extension will lead to a 25% growth in sales in 2016-17.

Which is a cheerful note on which to end a buoyant report about a particular buoyant and flourishing Westcountry area.

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West Dorset

More to West Dorset than just rolling hills West Dorset is a top tourism destination but little is known of its thriving commercial sector, writes Martin Hesp When Londoners and other folk heading south think of West Dorset, they tend to see in their mind’s eye a shire of rolling hills and dingly-dells bordered by the fascinating Jurassic Coast, which itself is punctuated by charming and historic seaside towns like Lyme Regis.

What they don’t see – or perhaps turn a blind eye to – is the area’s industrious commercial world which makes West Dorset one of the most happening places in the peninsula.

The area is rich in small high-tech companies which either have been, or are, linked in some ways to military procurement. Large bases at places like Portland may now be defunct, but the suppliers keep developing and making equipment and parts used by the Ministry of Defence, and others beside.

And that is only part of West Dorset’s commercial story.

There’s also an increasingly busy food and drink sector developing, as well as a high-tech agricultural-based economy…

Commercial activity in the district is fronted by the Dorset Local Enterprise Partnership – a business-led private and public sector partnership that aims to promote local economic growth, jobs and prosperity county-wide. It acts as a strategic gateway to funding, and supports and delivers projects of long-term economic benefit for Dorset through crosssector partnership with the county’s local authorities.

Dorset LEP has secured £79 million through the Dorset Growth Deal, which aims to bring together local, national and private sector funding to unlock and unblock key housing and employment sites, create more highly skilled jobs and support economic growth.

Two specific projects in West Dorset benefiting from this growth deal funding include a new state-of-the-art agri-tech centre at Dorchester’s Kingston Maurward College and investment in the Dorset Growth Hub, a local business support service providing a resource for bespoke business, innovation and trade support schemes.

“It’s not just about supporting the county’s rural strengths though,” says said Lorna Carver, director of Dorset LEP. “We have ambitious growth plans for West Dorset and the whole of the region and we are focused on further strengthening the county’s productivity, compet-

itiveness and accessibility through innovation – ensuring a wide range of opportunities for businesses and employees across the region.

“Access to super-fast and ultra-fast broadband is critical for businesses and this is a key investment focus for Dorset LEP,” she added. “We are also committed to investing in better infrastructure to improve access and journeys across the county.

“Travel networks drive Dorset’s economy and play a crucial role in supporting jobs and growth. The major £22 million investment in the A338, an economy-boosting infrastructure project, has recently been completed on schedule. Faster rail links to London are also being explored.

“Our vision is to ensure Dorset Local Enterprise Partnership continues to successfully lead and drive economic growth and job creation across the region,” concluded Ms

‘We have ambitious growth plans for West Dorset’ Lorna Carver, director of Dorset LEP Carver.

A spokesperson for Dorset County Council told the WMN: “Our key sectors go across tourism through to advanced engineering. Take for example AmSafe in Bridport, which won a big contract recently.

They make cargo and other nets and employ 150-plus people. They are a world leader in what they do.

“There’s Atlas Elektronik UK, based in Winfrith, which is a leading provider of science and technology solutions to the MoD, the Royal Navy and to other defence departments and corporate customers internationally. They offer complete solutions, from research through product concept,

design and development, manufacture and subsequent support – and the business has been at the forefront of UK naval research and development for over 60 years.”

The spokesman went on: “Then there are companies like Netzsch Pumps based just outside Dorchester. They are a really good company – we have quite a few foreign companies in the West Dorset area that are thriving and committed to staying.

“When it comes to food and drink we have Fudge’s bakery, based in Stalbridge which has just won the ‘deal of the month’ accolade in Business Insider Magazine. That’s good news for the area. They have very prestigious clientele – you find them in every deli for miles around and in supermarkets.

“Hall & Woodhouse of Blandford (of brewery and pub-estate fame) is expanding with a new hotel and restaurant called The Duchess of Cornwall as part of Queen Mother’s Square in Poundbury.

“In fact, West Dorset has a name for really good catering and food and drink products,” she added. “Ford Farms at Litton Cheney recently won a gold medal at the World Cheese Awards for a sheep’s milk cheese.”

The area’s food and drink offering will no doubt be complimented by the opening of the aforementioned new, stateof-the-art, agri-tech centre at Kingston Maurward College.

Costing £1.2 million it was cofinanced with funds secured

by Dorset LEP and took five months to build.

The purpose-built facility comprises an agricultural classroom, IT suite, workshop and machinery facilities including a fleet of tractors, plough, sprayer and variable rate drill.

The centre seems to echo the general mood in West Dorset that the area is a commercial zone looking to the future with confidence.

The Dorset coast is better known for its Jurassic coastline than as an area of commerce

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Exeter

Sporting and music events sustain feel-good factor Gordon Richardson takes a look at how Exeter’s economy has been boosted by the highprofile events which have been held, as well as the launch of the Exeter Pound and plans to make the city congestion-free and energy independent Major sporting and music events and the upcoming opening of a cluster of new restaurants have helped to sustain the feel-good factor for Exeter businesses over the past year.

A local currency has been launched to strengthen the city’s vibrant independent retail and leisure sectors, while a new hi-tech collaboration aims to build on Exeter’s

growing status as a hotbed of innovation where solutions to global problems can be developed.

Further large-scale investment is on the horizon in the next phase of city-centre redevelopment.

Some 50,000 music fans descended on Powderham Castle for Radio One’s Big Weekend in May, with Coldplay and Mumford and Sons headlining two days of performances.

Europe’s largest free ticketed music festival was broadcast to an audience of millions, with the Exe estuary providing a stunning backdrop.

Dr Andrew Dean, from the University of Exeter, estimated the event was worth around £3.5 million to the local eco-

nomy in terms of both spend and marketing exposure.

According to Visit South Devon, at least £1.7 million was brought into the local tourism economy over the two days of the festival. However, the organisation believes the legacy figure could be far higher.

Teignbridge District Council and Exeter City Council invested £100,000 each in the event in an effort to build on the Rugby World Cup. Sandy Park, home of the Exeter Chiefs, hosted three matches during the tournament in September and October. Before the tournament, accountants Ernst & Young forecast an overall economic benefit to Exeter of £39 million, although visitor numbers to

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the city centre Fanzone were below expectations after England’s early exit.

City council leader Councillor Pete Edwards said: “We have an issue with young talented people heading away from the city after their studies, and wanted to do something tangible to create pride in living and working here.”

Ben Rhodes, chief executive of Devon and Cornwall Business Council, said: “Exeter seems to be flying and certainly some of the work around the Met Office and the big data scene is really great.

“Events like the Rugby World Cup and Big Weekend all help to promote Exeter and the wider region, because the more people see what’s happening down here the better.”

He added that a recent Science and Innovation Audit workshop at Exeter Science Park – focusing on resilience, environment and sustainability – was an example of the city’s growing national profile as a centre of expertise in big data and environmental science.

The development of Exeter Science Park, with the imminent arrival of Met Office’s new supercomputer, and the international reputation of the University of Exeter, are seen as key to this.

Derek Phillips, vice-president of Exeter Chamber of Commerce, said: “Events like the Rugby World Cup and Radio One’s Big Weekend have helped to raise the city’s profile nationally and internationally. There’s no doubt it gave us great PR and publicity.

“Things are continuing to look very buoyant for the city, with 450 jobs due to be created at the new Lidl depot, Flybe going into profit for the first time in several years and passenger numbers growing at the airport.

“The new building for the Met Office’s £100 million supercomputer is nearly finished, which is another huge boost to the profile of the city.

“The Guildhall Shopping Centre redevelopment will be a substantial boost to the city and now we look forward to the development of the bus station.

All these things are looking promising for the future.”

A survey of Exeter Chamber of Commerce members in March indicated that business is in the city is flourishing, with 62% of firms reporting an increase in sales in the last quarter – the highest rate for

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Volunteer Hannah Watson (left) launches Exeter Pound with a trader two years. Traders in the city also recorded the best figures for investment since the recession in 2008, with 89% of those surveyed having invested in their businesses during the previous quarter. Future investment intentions were also robust.

The employment outlook was similarly positive, with just seven per cent of businesses expecting to reduce staff numbers and 34% planning to hire more staff.

The next milestone for Exeter will be the opening of a new £12 million restaurant quarter in August, which is set to create dozens of new jobs and attract more visitors to the city centre.

Queen St Dining will be home to eight new restaurants:

‘Things are continuing to look buoyant for the city’ Derek Phillips Absurd Bird, Comptoir Libanais, Turtle Bay, The Stable, Gourmet Burger Kitchen, The Terrace, Grillstock and KuPP. The scheme is fully let and the investment by centre owners Aviva Investors, the global asset management business of Aviva Plc, is expected to help increase leisure spend in the city.

Karime Hassan, chief executive and growth director of Exeter City Council, said: “There are two million or so visitors to the city every year, spending around £180m in all.

Between 2006 and 2012, the amount of money spent on food and drink in the city increased

from £43 million to over £50 million a year.

“The area around the Guildhall Shopping Centre has huge footfall. There is still a gap in the evening economy, the need to provide a more diverse offer for those who want to eat and drink and socialise. Queen St Dining quarter will help to us to fill that gap.”

Simon Carr, partner in the retail and leasing team at letting agents Jackson Criss, said: “The clout of the new offering reinforces Exeter’s standing as one of the top retail centres within the UK.” Now in its second year, the Exeter Business Improvement District is similarly focused on making the city centre a more attractive place to visit and shop.

The BID’s Welcome Team are a familiar sight on the streets, assisting more than 6,000 visitors in their first six months, while other initiatives have included an enhanced street cleaning service.

Craig Bulley, CEO of the Exeter BID, said: “A key achievement has been getting the right people in place, starting from the BID board to finding the right people for the challenging Welcome Team roles.

“With reference to the fiveyear BID business plan we have made substantial inroads, with many more activities due to be delivered.”

The BID is funded by a levy on city centre commercial premises, raising £2.4 million over five years.

Some of the money was spent on additional street decorations for the Rugby World Cup. Other activities have included printing and distributing 100,000 Passports to Exeter across the county to promote

WESTERN MORNING NEWS THURSDAY JULY 7 2016 9

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local businesses during the Christmas shopping period, as well as a programme of street entertainment.

Earlier this year, outline planning permission was granted for a £70 million redevelopment of the city’s bus station site.

The Princesshay Leisure project by the Crown Estate and TIAA Henderson Real Estate will comprise restaurants, shops, a cinema, a council run-leisure complex and a bus terminal. It is expected to be completed in mid-2019, creating around 750 jobs.

John Grinnell, deputy head of development at the Crown Estate, said the development represents “a substantial investment in Exeter that will support the city’s position as the region’s most popular destination for shopping, leisure and business, whilst boosting jobs, trade and the local economy”.

Other developments have included the launch of the Exeter Pound. More than 130 businesses have so far signed up to the new local currency.

Speaking at the launch in September, Exeter’s Labour

MP Ben Bradshaw said: “This is a historic day for Exeter. We are the second significant city in the whole of the South West to launch our own currency.

“It’s a brilliant way of supporting and encouraging independent local businesses but also retaining that money in our local community so it doesn’t flow into the bottomless pit of multinational chain stores.”

The next stage of development will see the roll-out of a digital Exeter Pound, allowing consumers to pay for goods and services by text or online transfer to traders signed up to accept the digital currency.

Traders will also be able to pay each other electronically.

Looking further ahead, the Exeter City Futures initiative, launched in January, aims to make the city congestion-free and energy independent within ten years.

The new partnership between the public and private sectors promises to harness pioneering technology and data analytics to tackle transport, energy and health challenges, and accelerate the city’s economic development.

The community interest company is a joint endeavour between the city council, Exeter-based investment firm Oxygen House and a number of local businesses and public sector organisations. It aims to transform Exeter into a sustainable city of the future, setting an example for others around the world.

Director Glenn Woodcock said: “More than two-thirds of the world’s population will live in cities by 2050; however most cities have incredibly inefficient infrastructure at present, and this problem will only worsen over time if cities don’t take action.

“Globally, innovators and technologists are beginning to think about how we solve these problems holistically, but the gap between what is being done today and where we need to be is profound.

“Exeter has a unique set of assets and a generational opportunity to lead this change through Exeter City Futures, which could among other outcomes achieve zero congestion and full energy independence for Exeter within ten years – a first for any city in the UK.”

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Torbay

Highway to improvement is The opening of the South Devon Link Road can be capitalised on to boost jobs and salaries.

Phil Goodwin reports

The new South Devon Link Road

KATHY UGLOW/PYRAMID TORBAY PHOTOGRAPHY

In the year that Torquay finally said goodbye to the inspiration for the comedy series Fawlty Towers, the English Riviera may just be about to ditch its image as a sleepy seaside resort.

For many, the Gleneagles Hotel – knocked down in March to make way for retirement flats – typified the quiet backwater of Torbay, cut off from the hustle and bustle of modern life.

Demolition comes just as the newly-connected Bay is set to cash in and transform itself into a 21st century hi-tech hub and fishing centre.

After years of campaigning, the £110 million South Devon Link Road opened last year, relieving the chronic traffic grid-

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lock which has blighted the area for decades.

Now officials need to capitalise on the new highway and put to an end to years of underachievement.

Supporters made much of the potential benefits, including the creation of almost 8,000 jobs.

Alan Denby, director of economic strategy at the Torbay Development Agency (TDA), said the next year could be key as a raft of developments are brought forward to “underpin the growing hi-tech economy, regenerate town centres and bring forward much-needed new commercial space”.

First up is the new £8 million Electronics and Photonics Innovation Centre planned this year in Paignton.

It will eventually sit, along with the Exeter Science Park and the Met Office supercomputer, at the forefront of a growing digital century economy in the region.

More than 8,000 are employed in electronics, sensors and photonics through hundreds of firms in the South West.

At least 1,000 of those are employed full-time in Torbay and South Devon, generating more than £100 million per year, half of that in exports.

Centred around the generation, transmission and modulation of light, such as lasers and fibre optics, the sector has grown out of the rapid boom and contraction of the telecoms industry in the 1990s.

The EPIC has been backed with £3 million from Growth Deal via the Heart of the South West Local Enterprise Partnership, £2.5 million from Torbay Council, £1.1 million from the Coastal Communities Fund and a further £1.4 million in European Regional Development Funding in the pipeline.

Mr Denby said final approval was expected in the summer with work starting at the end of

the year, creating 220 new jobs and opening in January 2018.

He said a delivery programme for a series of ambitious town centre regeneration proposals for Paignton and Torquay were also on the horizon.

“These proposals will be soft tested with developers, investors and others over the course of the summer and are expected to result in projects with a development value in excess of £120 million being brought forward,” he said.

“The schemes are designed to increase the vibrancy, vitality and footfall of the town centres so that they are more attractive places to work, to invest and visit.”

Torbay Council has also agreed to invest £7.5 million in the development of the Claylands Business Park in Paignton, creating an estimated 400 jobs.

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open at last for resort to ditch sleepy image total per head of £15,534 in 2014, the lowest in the South West.

This figure, which equates to 61% of the UK average – the 19th lowest ranking in the UK – provides a stark reminder why high-value jobs are so important.

However, signs of recovery are emerging with the TDA business barometer showing that 33% of business saw their turnover increase over the last three months.

Furthermore, over the next 12 months 62% say they remain optimistic about their growth prospects.

Plans to seek funding for a high-tech campus as part of the expansion South Devon College could be key.

Torbay’s elected mayor, Gordon Oliver, said: “I am resolutely committed to improving the local economy and completely dedicated to ensuring that the English Riviera is recognised not only as a great place to visit but increasingly as a great place to do business.

“These projects are much needed and will provide employment, investment and

‘Changing the demographic is going to be long-term’ Torbay MP Kevin Foster wealth for Torbay for many years to come.”

MP Kevin Foster, who was elected just over a year ago, said the opening of the link road had created a “feel-good factor” around Torbay but warned that tourism needed to move with the times.

He said things were much better than a year ago with unemployment down but said there was a long way to go to reverse years of under-achievement.

“Changing the demographics is going to be a long-term project,” said Mr Foster.

“We have some unique parts of the Bay but we have to keep up and promote Torbay as a destination otherwise we will

Brixham Fish Market where fish landed was valued at £22m

get left behind.”

Businesses remain divided over whether to vote yes or no to the English Riviera Tourism BID move to levy fees on top of business rates to raise the £600,000 a year needed to market the resort.

The deadline was set to pass at the end of June with some still refusing to sign up.

Mr Foster said: “If we don’t have the resources we are not going to be able to compete.”

Alongside the traditional tourism sector, fishing remains a huge influence on the economy, with Brixham market again confirmed the top port in England last year, landing fish valued at £22 million.

This was down on the record £27 million in 2012 and saw businesses recovering after the ferocious storms in 2014 wiped 10% off the haul.

There have been concerns for the industry after new regulations on fish discards contained within the re-negotiated European Common Fisheries Policy came into force.

However, skippers have adapted by targeting non-quota species such as cuttlefish,

which hit a record high in 2015 with 12 tonnes landed with a value of almost £8 million.

Jim Portus, chief executive of the South West Fish Producers’ Organisation, said the Council of Ministers has delivered the highest quotas since 1983 for plaice and sole.

He said: “We have never had as much in terms of opportunity – when you look at those plus the amazing success story of cuttlefish, which is now the single most important species in Brixham.

“There is a stronger and stronger market for cuttlefish – the price has never been higher and hit £9 a kilo, which is Dover sole prices. The Spanish, the French and the Italians love it and we have just capitalised on it.

“We are around a couple of million pounds up last year and well on the road to recovery after 2014, which really knocked us for six.”

Looking forward, Mr Portus hopes long-held plans for fishing industry employment units at Oxen Cove can be realised and says creating a fish processing plant remains a priority.

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Teignbridge

Authority is showing way forward in shaping future With the opening of a new multimillion-pound road and community arts centre, there is plenty to talk about in Teignbridge. As Dawn Ellis reports, money has been invested to ensure the district thrives It has been a busy year for high-performing Teignbridge District Council with major investments in roads, jobs and skills and high-profile events putting the area on the map.

Against a tough financial climate, Teignbridge is setting an example of how an authority can reshape its future, and that of its communities, by taking brave commercial decisions to support growth and deliver multi-million-pound regeneration schemes benefiting residents, businesses and visitors.

A £2.5 million new business park is thriving. The completion of 14 high-quality units at Estuary Court, Teignmouth, marked a significant step forward in Teignbridge’s longterm regeneration programme. The area has been transformed and includes a supermarket, restored playing fields and better infrastructure.

Business is booming at the Pavilions Teignmouth. The former Carlton Theatre was demolished in 2012 and replaced with an energy-efficient 210-seat multi-use auditorium/community centre, eight flexible work hubs, art/ exhibition space, and a cafe/ restaurant/bar.

Teignbridge District Council invested £2.5 million in Pavilions Teignmouth, with an additional £1.75 million coming from the Coastal Communities Fund and £537,000 from Arts Council England. A group of enthusiastic volunteers have formed a Charitable Incorporated Organisation and taken responsibility for running it.

The new £1.125 million fish quay opened in April offering improved landing facilities, a new pontoon and an enhanced public realm. This helps safeguard the town’s fishing heritage and aims to attract more visitors to Teignmouth.

A positive contribution to

“jobs for the future” in specific place-based industries played a key part in bringing a University Technical College (UTC) to South Devon.

The council worked collaboratively with public/private sector partners to deliver the £9.7 million UTC in Newton Abbot, offering a new way of learning for up to 600 young people aged 14 to 18 in engineering, water and the environment, along with 70 new jobs. It is the only one of its kind in a rural district and the only one nationally delivered by a shire council.

In February, the council made the largest investment in its history with the £13 million acquisition of Newton Abbot’s Market Walk Shopping Centre.

Purchased to enhance the centre of the town and provide a regular and reliable source of council income, the acquisition of the 91,000 square foot site gives Teignbridge the ability to positively influence the ongoing development of Newton Abbot’s central shop-

‘We have seen a little flurry of restaurant and cafe openings’ Town centre manager Sally Henley ping district and future-proof its finances.

The council’s contributions of £500,000 to the South Devon Link Road and £540,000 to the Decoy Access Pinch Point scheme has provided easier access in and out of the district. All this is underpinned by an adopted 20-year Local Plan, bringing a level of transformational change not seen in Teignbridge for decades. New homes of all types are being built for local people, creating wealth locally through suppliers and sub contractors.

The plan aims to provide 12,400 new homes, 64 hectares of employment land and potential to create more than 6,000 jobs – helping the district flourish so people can remain living and working locally.

Dawlish did not have a flourishing start to the new year

Teignbridge District Council invested £2.5 million in Pavilions Teignmouth and (below) the opening of the £1.125 fish quay in Teignmouth

with the airshow, the triathlon and the carnival all cancelled but times are changing and the future seems brighter.

Dawlish Chamber of Trade chairman David Force: “Each committee had a very valid reason for not going ahead with their respective event, but the combined result could potentially have been disastrous for some traders in the town.

“Many of the shops, cafes and pubs do very well when these events are staged.

Indeed, the additional trade can make a big difference to the end of year figures for some businesses.”

However, it is not all gloom for the seaside town in therms of business. “The railway, linking the South West with the rest of the country, stood up to some ferocious winter storms and the black swans have produced three healthy cygnets,” said Mr Force.

“Both events have featured on local and national news. In

recent weeks, a fresh carnival committee has come forward and has promised that carnival week will go ahead with all the old favourite events, as well as a number of new ones.

“The best news is that several new shops have opened in the town over the last few weeks, from children’s wear, to an art gallery and pet shop, from ladies clothing to crafts and gifts, new traders are coming to town. This means there is only one empty shop in the town centre – very few towns can boast that sort of occupancy rate. So, all is not lost! All we need is a warm, dry summer to put a smile on people’s faces and bring the visitors flocking in.”

Newton Abbot town centre is thriving and has been a hive of activity in the first few months.

Town centre manager Sally Henley said: “Socialising in town centres has become just as important as shopping and so picking up on this trend, we

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have seen another little flurry of restaurant and cafe openings.

“Work was completed on two vacant premises in Queen Street in December. These two units, joined together has become a highly successful independently owned Italian restaurant Ricca’s.

“Also in Queen Street we have Coffee Couture, part of a growing independently-owned local chain of high-quality coffee shops. Dippiu in Queen Street and Luff ’s in the market hall are two delightful new espresso bars, which have also both recently opened.

“On the independent theme we have three new high-quality furniture and interiors shops, a brand new kitchen and bathroom showroom and two new bridal shops. There are new hair and beauty businesses too, so Newton Abbot is an even better destination for socialising and for leisure.

Empty premises in the town centre are few and far between,

with Newton Abbot’s shop vacancy rate running at 3.4%.

“The new South Devon Link Road has really opened up shopper opportunities and we are seeing increasing numbers of shoppers from further afield now that access to our town centre is so easy.

“There has been a good deal of property refurbishment, continuing in this Newton Abbot trend and you only have to talk to business owners for them to tell you how significant the positive impact can be on their business.

“The Shop Improvement Grant Scheme, which was introduced last year has been popular and I have been delighted that a number of local businesses have applied successfully for grants to improve their frontages.

“Challenging weather meant that work on a new pocket park in Bank Street took longer than we anticipated, but it was fantastic to attend the formal opening of Golden Lion Square in April.

“This little oasis of calm, I am sure, will be as popular with shoppers and residents as Victoria Gardens has become.

“Teignbridge Council’s recent purchase of Market Walk Shopping Centre was a fantastic strategic move, which will not only provide an excellent return upon its investment for rate payers, but which importantly will allow the local authority to better shape the future of Newton Abbot town centre.”

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WESTERN MORNING NEWS THURSDAY JULY 7 2016 13

South Hams

Councils work together to give firms a voice Dawn Ellis looks at the partnership between the councils of two districts and the progress of the first metal mine to open in this country for 45 years It has been a busy year for South Hams District and West Devon Borough Councils, having been awarded the title of council of the year at the Improvement and Efficiency Social Enterprise awards.

As an award-winning shared service, the councils work to eight key themes, with the local economy being one of the top priorities.

This is demonstrated with the councils being awarded a certificate of excellence for “working together”, based on their involvement with the region-wide Better Business for All Partnership.

The partnership aims to help local business with their regulatory compliance. To this end, the councils are working with other regulatory services in Devon and Somerset to better support businesses by creating a level playing field across the two counties.

By helping businesses to comply with legislation, the aim is to promote economic growth by encouraging businesses to invest in the area.

The services working together are food safety, health and safety, licensing, trading standards, and fire safety.

This year has seen the launch of a new website and revamped newsletter for the business community, called Business Voice. These new channels of communication meet customer demand for information which is relevant to new and existing businesses within South West Devon.

Featuring subjects such as business rates, business support, funding, employment and regulations, there is plenty to appeal to businesses, whether large or small. Businesses can sign up for free newsletters at http://devonbusinessvoice.co.uk/ Earlier in the year, the councils facilitated two successful Business Voice forums, held in Tavistock and Totnes.

They offered attendees the ability to network with others experiencing similar challenges within the current economic climate and the opportunity to listen to quality key note speakers from local companies.

The councils recently agreed a new policy of offering businesses discretionary businessrate relief and encourage businesses to apply for if they are growing in size or increasing staff.

This could be useful where a company wants to expand and

The £140m Wolf Minerals-operated Drakelands Tungsten and Tin Mine, near Hemerdon on the outskirts of Plymouth, opened in September 2015 create additional jobs in the area. By helping local business to flourish, the councils can help to reduce outgoings at a time when they are investing in growth for the future and supporting thriving communities.

The councils work in conjunction with Devon’s The DR Company to provide business advice and funding to local businesses and community projects. The DR Company recently celebrated helping more than 500 projects over the past ten years, ranging from local community ventures to pioneering new businesses.

The councils have now embarked on the delivery of £3.8 million of funding on behalf of two Local Action Groups for Devon – South Devon Coastal Local Action Group 2015-2020, and the Greater Dartmoor Local Enterprise Action Fund 2015-2020. Alongside this, DR provides independent help for businesses of all sizes from project support to evaluation.

With a wealth of experience at hand, South Hams District and West Devon Borough Councils continue to strive to offer an all-encompassing service to the business community.

It has been a busy years for

Wolf Minerals Ltd, which is a ASX (WLF) and AIM (WLFE) listed speciality metals company is putting the UK back on the world map as a metals producer through the development of its Drakelands Tungsten and Tin Mine, near Hemerdon on the outskirts of Plymouth.

The £140 million project officially opened in September 2015, creating about 220 direct jobs and becoming the first new British metal mine in 45

‘Wolf will be well positioned when the market recovers’ Managing director Russell Clark years. With an estimated production of 5,000 tonnes annually of tungsten concentrate and 1,000 tonnes of tin concentrate, Drakelands Mine will be one of the world’s most important tungsten mines, producing about 3.5% of forecast global demand.

It will provide a secure supply of tungsten – which is regarded as a critical mineral by the UK, US and EU – and pump hundreds of millions of pounds into the South West

and UK economies over the next decade.

By any measure, the project is a major one for the region.

The construction phase alone generated significant economic benefits with up to 500 people working on site and an estimated 70% of the £75 million cost of the process plant was spent with UK companies, many in Devon and Cornwall.

Since taking control of the process plant from its builders GR Engineering Services, Wolf ’s focus has been on ramping up plant output towards full production, systematically fine-tuning the equipment and processes, increasing overall run times in the plant and building throughput tonnages.

Wolf has also worked hard to establish and maintain good relationships with the local community and to win support for the jobs and economic benefits being created by the project in what is a traditional mining area of Devon.

This has included supporting a wide variety of good causes locally throughout the development of Drakelands Mine.

A total of £12,000 (£6,000 each) has been donated to Sparkwell and Shaugh Prior parish councils to set up new

parish council-managed community funds for 2016 and £2,000 has been donated towards community projects in Cor nwood.

Recently, the company got work started on a new church hall for the village of Sparkwell, supplying expertise, men and machinery to carry out major preparatory groundworks.

It has also donated a new chain of office for the Stannator of Plympton, purchased a new storage container for Chaddlewood Miners Football Club and funded the installation of emergency defibrillators for the villages of Sparkwell and Lee Moor.

Managing the environment is a key part of the project and significant environmental work has taken place on site, including 50,000 new trees planted, the building of new bridleways, construction/conversion of three stone barns for bats as well as installing 80 bat boxes, extensive “hydroseeding” and the reconstruction of traditional Devon stone walls around the site.

It all adds up to a busy 12 months for Wolf, which has seen the commencement of regular shipments of tungsten concentrate to its main customers in Austria and the US.

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More than one million tonnes of tungsten ore have been excavated at the mine since the start of operations.

Work is also under way on a major infrastructure project to reroute the main Lee Moor road to facilitate the future development of the mine waste facility and is scheduled to be completed by the end of 2016.

Regular blasting of waste rock has been introduced to the mining operation as the ground has become harder with depth. Ground vibration and noise from blasting are being measured with results well below prescribed levels and Wolf is working with consultants to identify where further improvements can be made to blasting procedures and to work with the local community after concerns were raised about the impacts of blasting by some of those living nearby.

Wolf received approval to extend the trial seven days per week processing operation through to September and is working with Devon County Council to make seven-day operations permanent.

This will increase production tonnages by up to 20% and reduce overall production costs which is crucial during the current period of depressed tungsten prices.

Wolf is also working with Devon County Council to extend the life of the Drakelands planning permission beyond 2021, to secure the continued success of the business and the economic benefits and jobs it brings.

The tungsten price has not been immune from the general fall in commodity prices, halving since the project commenced construction. As a result, and to facilitate the ramp up and optimisation of the plant, as well as to service scheduled debt repayments, it became necessary to strengthen the company’s balance sheet.

With the support of its major shareholder RCF, the company announced in January that it had arranged a £25 million standby subscription facility.

The positive news is the tungsten price has rallied in more recent months, coming back from a low of some $15,000/tonne, to stand at $18,800-$21,000/tonne at the end of April 2016.

Commenting on the outlook in Wolf ’s most recent quarterly report (April 28), managing director Russell Clark said: “We are seeing the tungsten price increase and remain confident that this will continue and Wolf, with its large production capacity and location in a first world country, will be well positioned when the market recovers.”

14 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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Mid Devon

Significant investment as area’s big firms expand District out-performs wider South West region in employment and workforce qualifications and there are hopes for another strong year ahead It has been a year of significant investment for businesses in Mid Devon, as some of the area’s biggest employers set their sights on expansion.

Despite concerns about the uncertainty surrounding the

Gregory Distribution and sister company Kay Transport remain the district’s big employers

recent Brexit vote, there are hopes for another strong year ahead.

Mid Devon already out-performs the wider South West region in areas such as employment and workforce qualifications. It also enjoys higher than average wages compared to the rest of Devon.

The local economy bounced back more quickly than in neighbouring districts following the 2008 economic crises.

And according to the council’s

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economic development officer, Chris Shears, it remains as “strong and resilient” as ever.

“Conditions are still good and things are still looking very positive,” he said.

“There’s plenty happening, and we are always in the process of developing projects and looking at how we can better support business community.

“We’ve seen some of our key strategic businesses expanding [and] lots of our business groups are doing really well too.

“We’re getting to be a much more outward thinking local authority... looking at what is going on in the bigger picture and how we can be a part of that and shape it to our benefit.”

Key industries in the area include retail and tourism, as well as agriculture, and transport. Gregory Distribution and sister company Kay Transport remain the district’s big employers, alongside Heathcoat Textiles and several national supermarket chains.

In the last few months, another big employer – the Tiverton-based construction company Devonshire Homes –secured an £11 million investment through Lloyd’s Bank and the Housing Growth Partnership.

This will enable the firm to develop news sites, including a 100-property estate in Cullompton, as well as expand operations across the region.

Commenting on the investment, managing director Steve Russell said there has been a “continued recovery in the housing market” since the recession. He added that people are now confident “to make steps to either buy their first homes or invest in a larger property”.

Mr Shears described the multi-million-pound fund as proof that businesses in Mid Devon “are in a position to grow”.

He pointed to a recent £3 million investment at the Aston Manor Cider factory in Tiverton as “another positive” example of this.

Since Aston Manor took over the Howden Road site a few years ago, it has invested a total of £10 million to boost production and employment.

Staff numbers have more than doubled as a result, and the company has received the highest British Retail Consortium rating four years in a row.

Site director Paul Clifford

‘We’re a strong economy and we are resilient’ Chris Shears of Mid Devon Council admits that cider industry in general is “suffering a gradual decline”, but says Aston Manor has managed to “buck the trend”.

He adds that the company is forecast growth of up to 10% – but stresses this is down to new rather than existing business.

“We are outperforming our rivals in terms of the quality of the products we make and the reliability of our service levels,” he said. “It all comes back to investment plan we put in pace, which is in the right, good-quality machinery.

“Its very difficult to say that growth is going to continue, but we’re an ambitious company.

“There are diversification

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opportunities… which could bring new revenue into the business and new staff.”

There are a few challenges facing the district over coming months – notably the ongoing development of the council’s Local Plan. However, Mr Shear’s says he is “confident” the plan will be signed off before next year’s deadline.

The area also saw the closure of Broad Oak toiletries earlier this year, resulting in the loss of more than 200 jobs. But again, Mr Shear’s is optimistic, suggesting the majority of former employees have since found new work.

Tiverton is now looking forward to the arrival of budget hotel chain Premier Inn, which is seen as a potential “catalyst” for investment in the town centre. It is hoped that it will kickstart the delivery of the “masterplan” for the town, and open up further opportunities for growth.

Meanwhile, Mid Devon District Council – acting under a “proactive” new chief executive – is looking to forge closer relationships with Exeter, East Devon and Teignbridge councils. This includes cooperation on a joint economic strategy for the area, a tourism partnerships, and a commercial property database.

Mr Shears admits that the result of last month’s referendum vote is likely to create some uncertainty in the region. “Not just for the business community… but also from the perspective of the local authority,” he stresses.

However, he is keen to point out that businesses in area “came through the economic downturn in 2008 very well”.

“We’re a strong economy in Mid Devon and we are resilient,” he states.

WESTERN MORNING NEWS THURSDAY JULY 7 2016 15

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North Devon/Torridge

Investment needed to generate local wealth North Devon’s wild beauty has attracted a wealth of tourists and second home owners, but there is a constant struggle to provide work for the local population Known for its dramatic coastline, North Devon has an abundance of natural assets from wide sandy beaches to the dramatic landscape of Exmoor.

Its pretty towns and villages are geared for summer visitors but its how the district fares all year round that counts.

Its beautiful scenery and old world charm makes it one of the most sought after places in the UK for second home owners. It is estimated around 70% of properties in the seaside village of Lynmouth are second homes, commanding an average price of £255,167 – 35% up on the year before.

At the same time, nearby Barnstaple has an above-average number of low income families and its central ward is one of the most deprived in the country.

The region as a whole still has lots to offer, supporting the economy with a number of manufacturing and tourism businesses.

Among them is Dartington Crystal which next year celebrates 50 years at its Great Torrington base. Managing director Neil Hughes said that the North Devon location is an important part of the company identity.

He said: “Dartington is the last remaining factory-scale producer of hand-made crystal and glass. We continue to develop new techniques and to innovate. We are determined to continue our programme of recruitment in forthcoming years in order to bring through new young talent to strengthen our existing manufacturing capability.”

The company this year won the North Devon Journal Made in North Devon award and the Business of the Year award.

Mr Hughes said: “We are very proud. We have been growing steadily and, despite very difficult economic conditions, have doubled our sales turnover and significantly increased our profitability over the past six years. Such recognition is a real credit to the staff and employees of the company who have worked so hard to achieve this.”

Figures compiled for the joint North Devon and Torridge economic strategy show just under half of the working age population is out of work.

Of a population of 156,800, around 94,000 are of working age and 54,200 are in employment. The area has approximately 6,500 businesses providing 56,200 employee jobs and there are almost 17,000 in

Potters Hill, overlooking Woolacombe beach and, to the right, Morte Point on the North Devon coast

self-employment across the two districts.

Around 300 jobs are supported at the Appledore Shipyard, operated by Babcock.

This month has seen good news for the firm after securing a new £53 million contract to build a naval ship for Ireland. The deal to build a fourth ship for the Irish Government will secure hundreds of jobs at the shipyard. The third ship, LE William Butler Yeats is due to be handed over in July after it completes sea acceptance trials.

‘Bideford maintains its quirky individuality’ Artist Michael Dendle Appledore Shipyard remains a vital industry for the area but its fortunes have been chequered recently. Earlier this year, 70 workers transferred to Devonport because of a shortage of work, unions reported. The busiest economic area is Barnstaple, pulling commuters from the northern part of Torridge for work.

It also has plenty of shopping and leisure activities including Queens Theatre, the North Devon Leisure Centre and the Tarka Tennis indoor tennis facility.

But the town centre is challenged by retail competitors like Exeter and Plymouth which have both seen major regeneration in recent years.

Work in the public sector, advanced manufacturing, retail, and business services are the biggest sector employers. Pharmaceutical manufacturers, Actavis UK Ltd, em-

ploys upwards of 650 people alongside SFL, makers of chimney flues and filtration product company Parker Hannifin. The retail sector is the other major employer with Tesco, Sainsbury’s, and the town centre retail outlets making a notable contribution to the local economy.

A key priority for the district authorities is to harness energy sector opportunities to position North Devon as a location of excellence for offshore wind and tidal energy, biogas and biomass.

It has identified a number of key areas to promote prosperity including improved road and rail infrastructure, increased broadband connectivity, business support and education to create and retain a skilled workforce.

It plans to attract private investment into the main economic areas of Barnstaple and Bideford to increase jobs, property and further investment.

Bideford is the second largest town in the district. It is known locally for its thriving arts community and its support of independent shops and crafts people. Artist Michael Dendle works at the pannier market which has recently been revived by the town council alongside Butcher’s Row and art studios proving to be a major tourist draw.

He said: “Those with a need to shop will find the centre of town a refreshing change from the multi-corporate ‘could be anywhere’ look. Bideford maintains its quirky individuality, without ignoring the modern world, and while nowhere can sensibly claim to be perfect, most Bidefordians couldn’t imagine living as happily anywhere else.”

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16 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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Plymouth

City enjoying busy and prosperous economy Plymouth appears to be bucking the trend of the national economy in the first half of the year with much to suggest the city has a busy and prosperous economy. William Telford reports The Westcountry economy has, in the first half of 2016, declined a little alongside that of the UK’s. The most recent PMI data, for pre-referendum April, was described as “lacklustre” by Lloyds Bank Commercial Banking. Yet, if Plymouth is suffering a firsthalf slump along the same lines, it is not been evident by the amount of activity in the city.

Though there are no readily available statistics, anecdotally, there is much to suggest Plymouth has a busy and prosperous economy.

Santander Corporate and Commercial’s Breakthrough Red Box week-long business event, in May, was attended by astonishing 400 SMEs. With the business advice pod usually visiting much larger cities, this was, according to the bank, close to a record.

The Plymouth Herald’s Business Awards, in April, attracted a record 600 people to the Pavilions. There was also a busy Devon Business Show, at the same venue, in June, which pulled in visitors from across Devon and Cornwall, and even Ger many.

A packed summer of events in the Ocean City has included the launch of the Transat bakerly yacht race and the annual pirate-themed weekend, both of which brought huge crowds to the waterfront.

Even better, perhaps, the annual Flavour Fest food extravaganza saw 200,000 people in the city centre over three sun-drenched days.

With construction usually seen as a bellwether for an economy, you only have to spot the cranes to see that Plymouth is evolving at a rapid rate. Housing schemes are progressing at speed in various parts of the city. In March, housing minister Brandoin Lewis visited the nascent Palmerston Heights greenfield development in the north of the city, and the nearly completed Vision scheme, in the former South Yard Enclave at Devonport, and remarked how construction was intertwined with the economy.

Other schemes are pushing ahead too, with Quadrant Quay, the third phase of the £200 million Millbay redevelopment completed, and all homes sold, and planning permission now granted for the next phase spreading water-

An announcement on a hotel development in the Melville Building at the Royal William Yard is awaited side at West Hoe. The third phase of development at the £30 million Mount Wise housing scheme began in March and work has started in earnest at the enormous 5,500-home Sherford new town.

Construction has begun on the £13 million STEM Centre at City College Plymouth’s Kings Road campus, and the city centre is beneath the shadow of two towering cranes engaged in construction of what will be the city’s tallest building: the 23-storey, £29 million Beckley Court. That block is destined to be student accommodation.

With student-living schemes

at various stages of planning or development throughout the CBD – for example in Notte Street, North Hill, Mayflower Street, North Road East, and in converted buildings including the former Derrys department store – it further underlines a prognosis that the education sector has become the key economic driver for the city.

In January, a report revealed that students, from all further and higher education establishments, put an estimated £300 million into the Plymouth economy each year.

In addition, the salaries and procurement coming from those institutions is also a

major factor in Plymouth’s economy. And then there is direct development too, with, for instance, the aforementioned STEM Centre and Plymouth University’s £4.85 million Marine Station, opened at Cattedown last year, fine examples.

Education is not the only economic driver for Plymouth.

Manufacturing remains strong too, despite an uneven year in which some firms have suffered at the hands of geopolitical factors such as Russian sanctions, slowdown in the Chinese marketplace, depressed oil prices, and a muscular pound sterling.

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However, in January, a survey by Plymouth Manufacturers’ Group revealed more than half its members intended to increase head count.

Looking ahead, the start of development at the former South Yard in Devonport docks – earmarked as a marine industrial Enterprise Zone – and the creation of more business units at locations such as Langage, mean the city has the capacity to attract, and indeed give birth to, many high-quality manufacturing ventures.

Indeed, employment in the city generally is already robust. Figures for May show just 3,670 people were claiming

unemployment benefits. The figure had continued to fall despite some uncertainty in employers’ hiring intentions caused by such factors as the EU referendum and the National Living Wage.

Jobcentre Plus reported a strong jobs market, albeit in traditionally lower-paid occupations such as retail, hospitality, care and security. It does, however, show that these sectors are thriving in Plymouth.

Retail, as is the case nationally, has its challenges, and new city centre manager Jon Walton is working on ideas to bring more vibrancy to the West End. The city has been buoyed by the arrival of some impressive names including Skechers shoes and now White Stuff clothing, though perhaps the arrival of designer clobber store Flannels, bang in the heart of the city centre, is its biggest coup.

Supermarkets and out-oftown shopping appeared to remain steady, despite the challenges facing the nation’s leading supermarket chains, and, of course, billionaire Chris Dawson’s Plymouthheadquartered The Range chain continues to expand, with another 25 branches due to open this year alone.

In addition, new restaurants and leisure entities – a trampoline venture for instance – continue to sprout up.

Sutton Harbour appears to be getting its mojo back, with new cafes and eateries moving in, and coffee shops show no sign of stemming their relentless advance throughout the city centre.

This is all before the arrival of the £40million British Land cinema and restaurant complex at Bretonside during the next two years.

If there is a shadow over all this economic growth, it is perhaps that it could be curtailed by a skills shortage.

With employment levels at their highest since comparable records began in the early 1970s, and with a dearth of young people leaving education with the qualifications required for the growth industries, manufacturers, creatives and tech developers – another rapidly expanding sector in Plymouth’s economy – are finding it difficult to recruit the talent needed.

However, with Plymouth having so many high-quality education providers, and many growing firms identifying the value of recruiting and retaining local talent, the skills gap is not one that is by any means unsurmountable.

In any case, it is a challenge preferable to not having jobs to fill in the first place.

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PLYMOUTH’S MAJOR ONGOING DEVELOPMENTS Plymouth has a huge array of ongoing developments. Here is a summary of the main ones: Civic Centre: Urban Splash purchased the block from Plymouth City Council in January 2016, and is working on redevelopment plans.

South Yard: Work has started on the former naval dockyard land, now named Oceansgate and earmarked as an Enterprise Zone.

Royal William Yard: An announcement on a hotel development in the Melville Building is awaited.

Millbay: Phase three, the Quadrant Quay homes are completed, and plans have been submitted for phase four, more waterfront housing. An announcement on a separate scheme, Linden Homes’ “Dubai”-styled flats, is awaited.

New coach station: Work started in January 2016 and is continuing at pace.

STEM Centre: City College Plymouth’s £13 million devel-

The go-ahead has been given to create a cruise ship berth at Millbay Docks

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opment at Kings Road is now underway.

Studio School: Work has started on this at Marjon.

Plymouth Enterprise Park: The Ernesettle development is progressing.

Plymouth Science Park: The Phase 5 “flagship” building is under construction.

Drakelands Mine: Wolf Minerals’ development at Hemerdon is now producing tungsten.

Next: The clothing retailer has plans for a large out-oftown site at Marsh Mills.

Mount Wise: A third phase of housing is under construction.

Billacombe Quarry: The first phase of work has started on a 1,500-home development.

Sherford: Work has started on the 5,500-home new town, and re-design of the Deep Lane junction.

Student flats: The 23-floor, £29million Beckley Court development is under way.

Schemes are earmarked for

Crescent Point, Mayflower House, the ex-Derrys store, former Good Companions site, the ex-Comet building, a redevelopment of the RAOB block in North Hill, and a new build in North Road East.

Bretonside: Work could start in 2016 on the £42 million multiplex scheme.

Ex-Quality Hotel site: Demolition is under way at the site on The Hoe, earmarked for a five-star boutique hotel.

Colin Campbell Court and the “boulevard”: Plymouth City Council intends to purchase properties in these locations with a view to redevelopment.

Railway station: Details of a major overhaul of the site, are awaited from Plymouth City Council and Plymouth University.

Cruise terminal: The goahead has been given to create a cruise ship berth in Millbay Docks.

Plymouth City Market: An overhaul is due to start.

20 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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North Cornwall

Underlying confidence can drive county, says ‘Mr Pasty’ Simon Parker looks at how a quintessential Cornish food is faring in today’s world of discounted food outlets and supermarket dominance There’s something about a pasty There’s something about a pasty There’s something about a pasty that is fine fine fine.

It may be the way you make it It may be the way you bake it It may be the way you hang it on the line line line.

You can keep your fancy dishes My one and only wish is To see them pasties marching out in line line line.

When you taste that ’ansome crust

You could eat until you bust There’s something about a pasty that is fine fine fine!

So sang Cornish diva Brenda Wootton about our national dish, way back in the 1970s.

For centuries, the unique combination of chuck steak, teddies, onions and swede, encased in a pastry crust, has been a staple of Cornish families, beloved by young and old.

Since Mr Warren began producing them on a commercial scale in mid-19th century St Just, the humble oggie has also been a staple of the rural economy, with farmers supplying bakers with all the necessary ingredients.

While every high street in Cornwall has boasted a baker or two for generations, it was not until a decade or so ago

that pasties became big business.

One man who has capitalised on the British public’s newfound appetite for the original takeaway meal is Phil Ugalde, chairman of the Proper Cornish Food Company, based in Bodmin.

Established in 1988, Proper Cornish has grown to become a major player and a major employer in North Cornwall.

Branding the firm as the UK’s leading hand-made pasty manufacturer, it produces pasties, sausage rolls, slices and pies, supplying its wares to customers nationwide. In 2006, the company also acquired muchloved Redruth biscuit firm Furniss – makers of the famous Cornish Fairing – which it now markets worldwide.

Phil Ugalde, who steers the multi-million-pound operation, has seen recent growth of 17%. He said that while he is confident about the future of Proper Cornish, as well as the wider Cornish economy, businesses in 2016 need to fight harder to stay ahead.

“I think the food industry as a whole is going through an unsettled period,” he said. “There are a lot of factors, particularly the discounters and multiples driving prices down.”

With a growing workforce, Phil says it is important to adapt to the changing needs of the labour market.

“We are bringing in people who are sometimes on the fringes of the labour market and it’s important to realise they can often face a range of difficulties,” he said.

Phil Ugalde and Claire Preston, of Proper Cornish Food Company, with a tray of the pasties which are a staple of the rural economy “Living in Cornwall, where public transport is limited, getting to work can be a real issue.

If a person doesn’t have their own transport then getting to work can be impossible. So, as employers we need to recognise these issues and react to them. And that’s why we work closely with the job centres to help applicants to be ‘work ready’.”

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Looking at the bigger picture, the man known to many simply as “Mr Pasty” said: “I feel that Cornwall as a whole is in a healthy position with regard to investment. It is only political uncertainty that is holding things back – if we could achieve some stability Cor nwall’s economy would really benefit because there is an underlying confidence.”

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WESTERN MORNING NEWS THURSDAY JULY 7 2016 21

South East Cornwall

New ideas in attempt to raise quality of jobs Charlotte Turner examines how one district is seeking to branch out from being seen just as an attractive tourist destination as it seeks new revenue Holidaymakers keen to experience a slice of the traditional Cornish seaside head to Looe, but, like many other Cornish towns, it relies on tourism to sustain its businesses.

Looe has seen a boost after a cash injection and a new business plan from renowned chefs, the Tanner brothers was implemented in 2014.

Since brothers Chris and James have set up their new fish and chip takeaway Catch on the quayside, they have created all-year-round jobs – which are hard to come by in a town known for seasonal trade.

Chris Tanner said: “Two years have flown by – it has been a challenging season but

we have bucked the trend of summer trade so far; opening earlier in February to catch half term saw visitor numbers on the up.

“It has been really positive to be able to take on long-term staff instead of only being able to offer seasonal work, and we are looking to recruit more staff in the future.”

Looe remains a fishing town, and has retained several fish dealers operating from the quayside, from which the brothers source their fish.

Last year, Liskeard was struggling to entice shoppers due to “lack of footfall”.

The market town now has a new focus: the main objectives for the year ahead lie with creating more jobs locally, helping businesses stay viable and creating chances for young people to train and find jobs within locals firms.

As a businesswoman, secretary of Liskeard Chamber of Commerce, deputy mayor, and

chairman of planning on Liskeard Town Council, Jane Pascoe is only too aware of the challenges facing the districts five towns of Liskeard, Looe, Callington, Torpoint and Saltash.

In a bid to fight the area’s corner collectively, individual chambers of commerce joined forces as South East Cornwall Collective Chamber of Commerce.

Councillor Pascoe said: “Liskeard is accessible, located on the A38, has close links to Plymouth; it is ideally situated to attract new businesses.

“There are many challenges facing Liskeard and South East Cornwall and together the Chambers of Commerce (SECTA) and other organisations in the district are working toward their long-term vision for South East Cornwall.”

Following discussions with developers, Liskeard has been

successful in bringing forward employment land which they aim to attract inward investment in this part of Cornwall, raise the quality of jobs, develop specialist engineering, IT and creative skills and develop local apprenticeships by working closely with employers, schools and colleges.

South East Cornwall is established in the market as an attractive tourist destination.

New projects such as a cycle trail linking Looe, the moors and the coast are coming forward to make it a high-quality, high-value destination.

The district lost a prominently business figure early this year with the death of Martin Bond of WH Bond & Sons and Bond Timber.

With his late brother Hermon, Mr Bond was instrumental in the development of the two golf courses at St Mellion as well as building a successful and ever-growing business in Bond Timber.

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22 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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St Austell & Newquay

Sky the limit with aerohub in spaceport race port, put the case for the Cornish airport – alongside four from Scotland and one from Wales – at a Royal Aeronautical Society conference in London in February.

The bubble burst only slightly recently when it emerged that all six contenders could be in the running for slices of the space pie – and it would be unmanned satellites rather than rockets with astronauts on board being propelled into space from Newquay.

Sandra Rothwell, chief executive of the Cornwall and Isles of Scilly Local Enterprise Partnership, coped valiantly with any disappointment, saying: “It doesn’t change our view that Newquay and Cornwall are well placed to play a critical role in developing the UK’s space industry.”

Meanwhile, there were more down-to-earth developments in both Newquay and St Austell, as the business com-

While Newquay has high hopes of entering the space race, St Austell is trying to tackle low salaries and unemployment as Sarah Pitt reports Ambitions have been soaring sky-high – literally – in Newquay over the past year with hopes the Government will pick the airport to become the UK’s first spaceport.

Newquay Aerohub was in January named as one of six contenders to develop a £50 million launchpad for space planes, a prospect which has sent ripples of excitement throughout the county. The airport’s inclusion as the only contender in England was apparently down to its extra-long runway, a legacy of its former incarnation as a take-off for massive war planes at RAF St Mawgan.

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munities strove to bring economic prosperity to their towns.

There was a boost for Quintrell Downs Business Park, just outside Newquay, when an IT centre opened for King’s College London, providing skilled IT jobs for 25 people from Cornwall, with more promised.

In Newquay itself efforts to rid the town of its image as the destination of choice for stag and hen dos have been paying off, said Geoff Brown, Conservative councillor for the town centre.

“We have seen a dramatic change in Newquay ever since our campaign Newquay Safe was launched in 2009,” he said.

“Crime is now at the lowest it has been for years, and it has become very much a familyfriendly resort. A lot of the businesses are now catering for families and doing very well.”

He said the only fly in the ointment had been a drop in families taking breaks in the ‘shoulder seasons’ of May and June and September, due to the so-called “Gove effect”, introducing fines for parents who take their children on holiday in term time. “It was noticeable that the family season last year was condensed into about eight weeks,” he said.

Meanwhile, exciting retail plans are in the pipeline in St Austell, after planning permission was granted for an out-oftown shopping centre, with housing and a hotel, at Higher Trewhiddle Farm.

Lib-Dem councillor Jackie Bull, an enthusiastic supporter of the scheme, said: “We hope it will mean that some of the money that currently rushes past us to Truro or

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Plymouth will stay in the town.”

While the big names to open in the shopping centre have yet to be named, developer Abe Simpson, of Kingsley Devolopers, said earlier this year he was making efforts to woo “major retailers”.

There was also some progress on other major plans to regenerate St Austell, where high unemployment has earned much of the town the dubious distinction of being among the poorest in Europe.

Cornwall Council has submitted a bid for £900,000 to the Heritage Lottery Fund to fund a major facelift to the historic

‘The hi-tech industry is something that St Austell really needs’ Councillor Tom French buildings in the town centre.

The St Austell Townscape Heritage Scheme will cost an estimated £1.6 million, with the hoped-for lottery grant to be topped up by Cornwall Council and the town council, as well as funds from the St Austell Business Improvement District.

Proposals for the controversial West Carclaze Eco-Community, to be built on disused china clay works to the north of the town, have been resubmitted. Developer Eco-Bos has made “significant changes” to the plans after receiving 1,200 objections from locals, including concerns that the planned 1,500 houses would be built before a new school and community centre. They were also worried that the towering pile of clay waste, known affection-

ately as the Sky Tip by locals, might be demolished.

Eco-Bos boss John Hodkin sought to allay these fears, saying infrastructure would come before the housing and that the Sky Tip would stay as a “focal point” of the scheme.

He also claimed that plans for a technology park close to the West Carclaze site, at Carluddon, would be a priority. It aims to attracting hi-tech – and better paid – jobs to the town, where the average salary is just £15,500.

Conservative councillor Tom French, who represents St Austell Bay, said there was a real need for good jobs in the town – along with a better road link to the A30, for which a feasibility study is in the process of being carried out.

“The hi-tech industry is something that St Austell really needs, for both the feelgood factor and the better salaries,” he said.

Young Newquay entrepreneur Charlotte Danks, meanwhile, made headlines when she opened Affordable Foods, a budget shop undercutting the pound shops, where the most things on the shelves cost is 25p. The store in Newquay, selling perfectly edible food which mainstream retailers had rejected, was such a success she has opened another in St Austell’s Market House.

“Most of what we sell is stuff that’s coming up to its sell-by date, but that’s not the same as its expiry date,” she said.

“Everything is perfectly fine, but the supermarket has to get it off its shelves and it would otherwise end up straight in landfill. It’s really taken off.”

Her shops, she added, offered “a real alternative to food banks” which were needed in both towns.

WESTERN MORNING NEWS THURSDAY JULY 7 2016 23

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Penzance

Publicity-shy town revelling in ‘hip’ status The national – and even international – spotlight has been turned on Penzance which is seeing investment coming its way. Lyn Barton reports It is a town that could be accused of not owning up to even having a trumpet, let alone blowing it.

For years, Penzance has been content to shy away from publicity and revel in the knowledge of being well known to only a select few. But this year the secret is out.

For the first time, it has captured the attention of national newspapers and international travel experts who seemed to have peered past the bright lights and posh shops of the likes of Padstow and Falmouth.

Several times Penzance has been named as the hippest place in Cornwall and the place to be seen. Its jewel in the crown Art Deco lido – restored and reopened after being pulled back from the brink – has been named as a worthy of a trip in itself.

Inward investment has been pouring into the town with two big hotel groups moving forward with new plans.

None of this is a surprise to Jess Golding, the town’s Business Improvement District (BID) manager. She says it is time for Penzance to step out of the shadows.

“I am really looking forward to seeing how much further we can push the town this year,” she said. “We have had a year of scrubbing up the town’s face and getting it ready and the next year is about perception.

As a town we have so much to boast about and we need to stop being frightened of doing that.”

Penzance is at the heart of Mounts Bay, a magnificent stretch of coastline encompassing the sandy beaches of Perranuthnoe, quaint Marazion and the fishing port of Newlyn, which is gathering its own arty scene.

The bay is one of the most visited places in the UK thanks to the lure of St Michael’s Mount and now an increasing number of visitors are coming into Penzance as well as visiting the house on the rock.

One major draw is the Jubilee Pool, an Art Deco lido that has been threatened with closure so many times it would be easy to loose count.

What cold hard economics failed to do, the weather very nearly accomplished in 2014 when the lido was on the front line of a series of powerful storms which struck the coast of West Cornwall.

It was dealt a near fatal blow and in the immediate aftermath its gleaming white walls and blue pool, which were constructed in 1934, were a wreck.

However, this near catastrophe triggered a major investment from the Government, matched by some astonishing local fundraising efforts.

At the end of May, on a glorious sunny day, the £2.9 million project came to fruition when the doors were thrown open and the project was declared an instant success.

Christina Rowe, 71, whose mother was a champion swimmer and lifeguard who worked at the pool when it first opened, said the revamp was amazing.

“I am absolutely delighted – thrilled – to see it reopen and it’s looking like it used to when I was a child,” she said.

Indeed, the reopening of the

‘As a town we have so much to boast about’ BID manager Jess Golding Jubilee Pool seemed to capture the mood of a new lido movement which swept across the UK. From her BID office, Ms Golding said she was keen to capitalise on that.

“We have really pushed the lido. It is so unique that it is bringing people into Penzance,” she said. “Jubilee is such a big investment for the future. If we had just let it wane we would have been flushing the potential down the drain.

The Jubilee Pool is a Cinderella story.”

Among the many accolades to be thrust on Penzance this year are being named by national newspapers as the hippest place in Cornwall and the county’s foodie capital.

Ms Golding said footfall counters prove that more people are coming. “I have shopkeepers saying that a day in June is now like a day in August peak season,” she said.

“You only need to walk through town to see that businesses are doing great.”

In a further ringing endorsement the Premier Inn chain is

Jubilee Pool in Penzance has been reopened after vital restoration work proposing to turn the Branwells Mill building at the bottom of Market Jew Street into a 60-bedroomed hotel.

Travelodge has submitted a pre-application to Cornwall Council for a 70-bedroom at the Heliport Retail Park on the approach to Penzance.

Emily Kavanagh, from Penzance Chamber of Commerce, said businesses in both the retail and hospitality sector were largely behind the Branwells Mill development but less supportive of Travelodge.

“It’s [Premier Inn] going to improve the overall look of the approach to the town and will provide some much needed single night stay opportunities, something we’re currently lacking. We don’t have enough beds in the town at the moment to fulfil peak demand.

“The Travelodge development, conversely, is seen as slightly surplus to requirements.”

The chamber’s comments were echoed by the chairman of the Penzance and District Tourism Association. Nick Hood, also manager of the Welcome Centre, said Premier Inn would be an asset to the area.

“From a visitor perspective it can only be good news that an organisation such as Premier Inn is interested in a town centre location,” he said.

“The Travelodge proposal is definitely not an advantage for Penzance. It is not of the same quality as Premier Inn.” Both proposals are at an early stage, but Ms Golding said they were an undeniable “vote of confidence” in Penzance. “We have the ability to grow,” she said.

“There’s so much more on the horizon and what’s happened this year is the first taste of things to come”

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24 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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Truro an Falmouth

Cruising to a bright future on the Fal Up and down the River Fal visitor numbers are up. Cornwall’s capital Truro and its riverside sister Falmouth have, despite tough trading conditions affecting the whole country, upped their game. Olivier Vergnault takes a look at what the two have done to stay ahead of the curve Whether on the high street in Truro or Falmouth, the retail sector has taken a pounding.

Trading conditions like everywhere else in the UK have been difficult, especially in the first quarter of 2016.

However, with a big and more diverse events offering and improved cruise ship facilities, both have toughed it out to see both footfall and spend grow.

While footfall dropped by 6% between April and June 2015, figures improved through the rest of the year with a drop of only 2% between July and September 2015, a 5% rise between October and Decem-

ber and another 2% rise between January and March 2016.

The retail vacancy rate also stands at a low 4% when the national figure is 10% and used to be as high as 13% in other parts of the country.

The city is one of only two in Cornwall (Penzance being the other) to belong to the national Healthy High Street scheme.

All 67 towns in the scheme, which works with national brands such as Boots and EE or Santander with the aim to improve footfall, reduce the number of empty shops and create jobs, have seen footfall improve.

Falmouth has been pulling all the stops to capitalise on the cruise market with 18 cruise ships dropping anchor in the town last year

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Neil Scott, BID manager with Totally Truro, said the improvement in the high street’s fortune shows the attractiveness of the city’s shopping experience and offering in term of both quantity and quality.

He said: “It’s about getting a sense of pride back in our city – and it seems to be working”.

He said footfall and empty shops were tied together, adding: “If you have demand for retail space it often comes hand in hand with demand from consumers.

“Truro has been bucking the trend because it offers a different retail experience from other towns.

“We have a great range of shops on offer from Poundland to high-end brands. We have independent stores and big name stores.

“Our retail offering covers all sectors of the market so we’re not dependent on any sector in particular.”

A new Primark store will open in the autumn while a Waitrose supermarket opened in June.

“It just shows the strong demand for retail space in the city,” Mr Scott said.

“There are several retail parks planned on the outskirts of the city too.

“While it’s not good news for city centre shops, again it shows the attractiveness of Truro as a whole and as a shopping destination.”

Mr Scott said Truro, which has had a BID in place since 2007, has also been branding itself differently from other towns in Cornwall especially Falmouth down river.

The city wants to be known as a cultural destination with four main events throughout the year corresponding to each

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of the four seasons. A festival of music and the arts in the spring, a Get Active festival in the summer to encourage residents and visitors to enjoy the great outdoors, Truro Festival in the autumn which supports the city’s fashion industry and of course the Christmas market and festival in December.

Festivals have always been Falmouth’s forte but this year the riverside town has upped its game and visitor numbers have followed.

The town, already known for its Oysters Festival and Sea Shanty festival – which this year saw 59 bands from all over the UK, France and even the US take part – has expanded its offering in partnership with

‘It’s about getting a sense of pride back in our city’ Neil Scott, Truro BID manager Eden Sessions and ran the first of its Falmouth Live concerts in June attracting big industry names such as UB40 or Jules Holland.

Richard Wilcox, Falmouth BID manager, said: “We have had a very active year in Falmouth with a strong range of festivals and a lot on to support the town and its businesses which has culminated in Falmouth being named Best Place to Live in the South West in the Sunday Times.

“This is a fantastic benchmark in term of the efforts put into the community in term of marketing and attracting inward investment.”

The town has also been helped by the growth of its

university which remains the premier arts university in the UK. In June 2017, Falmouth University will also see the first cohort of students graduate from its brand new entrepreneurship course.

There are 4,500 students at the university but with ever popular courses in gaming, fashion, the arts and now business, numbers are on the rise.

While a growing population of students has its challenges, it pumps millions of pounds in the local economy.

Falmouth has also been pulling all the stops to capitalise on the cruise market.

The sector has grown by 30% in the past 12 months with 18 cruise ships dropping anchor in the town last year but 26 planned this year and 30 next year.

It is estimated that national cruise visitors spend on average £50 a day while international cruise visitors spend £100 a day in the towns they visit, making it a high yield market.

Each ship is estimated to be worth £100,000 to Falmouth’s economy and Cornwall as a whole.

Mr Wilcox believes that if the Fal were to be dredged, the cruise ship market would increase five-fold.

Mr Wilcox said: “Trading has remained good despite tough retail conditions. While Falmouth has an empty shop rate of 5.5% it compares favourably with the national rate.

“The accommodation sector had a very robust year last year, stronger even that 2014 which was the year of the Tall Ships Regatta when 200,000 extra people visited the town.”

WESTERN MORNING NEWS THURSDAY JULY 7 2016 25

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Camborne and Redruth

West’s cream of the crop rises to the top Simon Parker looks at another quintessentially Cornish delicacy to see how it is faring in today’s competitive dairy world It’s a perennial conundrum beloved of newspaper editors, holidaymakers and tourism chiefs: which should go on first, the jam or the cream?

The fact is, though, any selfrespecting Cornish man, woman and child – or, for that matter, any self-respecting Devonshire folk – couldn’t really care less. What matters is the quality of the “crame”.

Growing up in countryside close to Redruth, our family was fortunate to live a field away from a farmhouse where “crame” was made in the traditional way: milk scalded slowly in large pans on the kitchen Rayburn. It was delicious stuff, and at Easter we children would be sent across with what seemed at the time an enormous glass bowl to be filled with the thick-crusted dark yellow nectar – and woe betide any child who spilled a drop as they tramped carefully back across the paddock.

Once home, the semi-liquid clotted cream would be stored on a cool windowsill and consumed over the next few days.

The favourite combination was not splits and jam, but thunder and lightning, a filling-jangling concoction consisting of thick layer of treacle or golden syrup spread on a slice of wholemeal bread, and topped off with an equally thick serving of “crame”.

Such gifts were, of course, reserved for high days and holidays, and at all other times

Nicholas Rodda, managing director of Rodda’s Clotted Cream and (left) Bill Clarke, owner of Trewithen Dairy there was but one choice: Rodda’s.

Rodda’s has been making its trademark product since Eliza Jane Rodda, the great-greatgrandmother of the current owners, perfected a recipe in her Scorrier farmhouse kitchen in 1890. It was an instant hit with her neighbours and she was soon “exporting” it all the way to England, where top London food shops couldn’t get enough of the sumptuous delicacy.

Still based at Scorrier, and now one of the biggest producers of clotted cream in the world, the firm this year clinched a deal to supply sports fans with its famous product, after signing a major deal with the Lawn Tennis Association.

The deal will build on the brand’s national exposure by promoting a “premium serve” at all British Lawn Tennis Association tournaments, includ-

ing the Aegon Championships at Queens.

Rodda’s presence will include sampling and retail space, while its clotted cream will be served within all hospitality areas.

Managing director Nicholas Rodda said: “Cornish clotted cream has always been synonymous with tennis and this partnership further strengthens the association.

“Rodda’s is about sharing special moments with the ones you love, and what’s better than doing that whilst watching a quintessential British sporting pastime.”

Not to be outdone, another purveyor of fine clotted cream is also having a successful period. Trewithen Dairy at Lostwithiel has enjoyed a hattrick of recent successes, securing supply contracts with the Queen’s grocer, Fortnum & Mason in London, Londonbased Tate Galleries and the

recently rebranded Great Western Rail. This follows the fir m’s success in being presented with the prestigious Grocer Gold Award in 2015.

Francis Clarke, Trewithen Dairy’s managing director, said: “We are lucky to have a strong talented team delivering a range of great Trewithen

‘Cornish clotted cream is synonymous with tennis’ Nicholas Rodda Dairy products all over the UK, which include butter, milk, yoghurts and Cornish clotted cream. We have collaborated with fantastic companies, experts and events, all of which showcases all of our products and reaches out to new and existing customers.

Awarded'exceptional'andthehigheststandardsof customercareby'InvestorinClients'.

“We have undergone a tremendous growth period and added significantly to our sales, gaining new hospitality and retail customers right across Cornwall and the South West, as well as a number of critical supermarket listings.

“We are also continually grateful for the hard work that our farmers consistently put in to bring us our great products for our fantastic and loyal customers. Going forward, we will be developing fresh and exciting products. To be recognised as the winner of the Grocer Gold SME Retail Brand of year in 2015 was a particular highlight as well and gained us national spotlight attention which has been hugely beneficial.”

So, the bottom line is if you enjoy a cream tea – never mind whether its jam first or not – make sure you choose one of the many great clotted creams available across Cornwall.

28 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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Higher education

Universities and students are fuelling local economies Emily Smith looks at how the region’s universities are performing Universities across the Westcountry are performing beyond expectations and many of them are looking forward to an exciting year ahead.

Falmouth University is flying high as one of the best creative institutes in the country. Exeter University has started work on its flagship £53 million Living Systems Institute and Plymouth University is fuelling business creation and sustainable fashion.

There is no better place to explore your creativity than Falmouth University, which is playing a part in the economic development of Cornwall.

Exeter University is also celebrating success and world class facilities, not only on its Exeter-based campus, but in Penryn and Truro too. The university also got inside the world’s top 100 universities for the first time this year.

An Exeter University spokesman said: “The flagship £53 million Livings Systems Institute is nearing completion on the Streatham Campus, which will home a world-class, interdisciplinary research community that will revolutionise the diagnosis and treatment of diseases.

“Exeter also recently announced a new £1.2 million digital humanities research space, which will allow researchers to use hi-tech equipment to find out more about our cultural heritage and cre-

ative past and share their discoveries with the public.

“At the Penryn Campus, a new £5.5 million science and engineering research support facility was also officially launched this year.”

But the university is not stopping there – there are huge plans to be even more committed to investing in staff and students next year.

Plymouth University is flying high as one of the region’s biggest employers and is playing an increasingly important role.

It is recognised as a top 50 research institution with genuine clusters of world class research across areas as diverse as marine science and engineering, medicine, robotics and psychology.

As well as around 4,000 staff,

it has contracts with dozens of city companies and provides others with support.

In recent years, the university has launched a host of new initiatives designed to fuel business creation and growth in a sustainable fashion.

Through the Growth Acceleration and Investment Network, the Marine Innovation Centre, the campus-based Formation Zone, and its network of Innovation Centres across Cornwall, the university is providing start-up and existing companies with connections to organisations, world-class knowledge, technologies, people and infrastructure.

There is also expertise on campus made available to the business community, through the Enterprise Solutions ser-

An artist’s impression of the University of Exeter’s Living Systems Institute vice and facilities including the COAST Laboratory, the Plymouth Electron Microscopy Centre and the Futures Entrepreneurship Centre.

David Alder, chief marketing officer, said: “The University

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of Plymouth is recognised nationally and increasingly internationally for the high quality of its graduates, who come as students to study at the University from cities across the UK and beyond.”

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Further education

Investment in campus facilities boosts colleges Alex Wood looks back on a successful year for the region’s colleges who are moving forward despite Government cutbacks Multi-million-pound buildings, a rise in apprenticeships and even a link with a Premier League football team cap what has been a successful year for the region’s colleges – despite the constant threat of cuts.

Education, like most statutory services, has taken a hit under Government austerity measures, with allowances per pupil in Devon and Cornwall among the lowest in the UK. But for two colleges, Truro and Penwith, in Cornwall, and Petroc, in North Devon, cuts to funding have been off-set by significant investment projects in campus facilities – including a state-of-the-art site in Bodmin and a £10.8 million transformation of campus buildings in Barnstaple.

David Walrond, principal at Truro and Penwith, said the Bodmin-based Callywith College will offer courses for over16s.

He said: “Callywith College will provide comprehensive tertiary education of the same outstanding quality delivered at our Truro and Penwith campuses, significantly improving the life chances of thousands of young people and empowering them to progress onto higher education and into employment.

“We will work closely with local partners to ensure that the campus is a genuine hub for economic growth and will support the strong aspirations of local people to enhance their skills and attainment.”

The college has also forged a landmark partnership with Chelsea, working alongside the Premier League football club’s foundation set-up to provide more opportunities for aspiring players from across Cornwall.

As well as being kitted out in official Chelsea kits, students and coaches belonging to Truro and Penwith’s academy

An artist’s impression of the entrance view of STEM regional centre of excellence at Petroc’s Plymouth site

will benefit from world-class training sessions and will be invited to take part in Chelsea tour naments.

Gary Pascoe, Truro and Penwith College football development manager, who is also a UEFA A-licensed coach, said: “We are hoping to enter a national FA Youth Development League so the lads will get the opportunity to play against other professional clubs.”

Petroc College, meanwhile, has secured a £10.8 million investment to transform large parts of its North Devon campus into a state-of-the-art facility for learners.

As part of the upgrade, a modern engineering centre of excellence was built in 2015 with plans in place to open a bespoke Lifestyle and Tourism Centre this September.

The new development will cater for students on a wide

range of hospitality, catering, hairdressing, beauty and tourism study programmes, with luxury hair and beauty salons and a stunning glass-fronted training restaurant available to use for training purposes.

The college has also made significant strides in the STEM (science, technology, engineering and maths) sector, as construction begins on the new regional centre of excellence for STEM at their Plymouth site.

Pauline Hands, a Petroc spokesman, said: “Due to open in 2017, this new £13 million facility is the most significant investment in the city’s skills infrastructure for many years.

“The centre will have a substantial impact on the training and education of STEM-related subjects for the city and wider region, and will be vital for

helping Plymouth employers to better meet their need for highly skilled, higher-level technicians and apprentices.”

The Government has set colleges and businesses across the country the ambitious target of training and recruit-

‘Hiring an apprentice can help a business to grow their talent’ Sally Foard, Cornwall College Group ing three million apprentices by 2020.

With less than one million people employed as apprentices in the UK, the West’s leading provider of apprenticeships, Cornwall College, is urging businesses to do more for young people.

Sally Foard, director of development at the Cornwall College Group, said: “Hiring an apprentice can help a business to grow their own talent by developing a motivated, skilled and qualified workplace.”

There are currently more than 150 companies across Cornwall, known as “trailblazers”, working with the college to develop apprenticeship standards. The project, which aims to provide youngsters with more than 1,000 apprenticeship pathways, is backed by the Government.

Trailblazer development manager for Cornwall College Group, Jacquie Franklin, added: “Cornwall College is at the forefront of a new initiative in partnership with King’s College London and a group of 15 universities across the country to develop a higher apprenticeship in IT.”

Another college excelling in their commitment to apprentices is City College Plymouth, having impressed Ofsted with its award-winning apprenticeship programme during a recent inspection.

The college, on Kings Road in Devonport, received a “good” rating from inspectors and was named in the top ten General Further Education Colleges in the UK for having an apprenticeship success rate at 16% above average.

A City College spokesman said: “We are incredibly fortunate because we have a considerable number of employers in Plymouth and the wider regions of Devon and Cornwall who recognise the advantages of engaging in a meaningful dialogue with their local college about their future workforce and the development of their skills base.”

Big task to convert rest of schools to academies in next four to six years JOE SCAIFE, Head of Bishop Fleming’s schools team The strategy for the education sector has been laid out quite clearly but with no significant extra funds as a whole.

The region’s previous regional schools commissioner is now national schools commissioner, so regional policy regarding academies is likely to continue.

The Government plans to turn all state schools into

academies, though the regional schools commissioner will need more funding to achieve this, and the pace of change may be slower as a result of the recent U-turn.

Broadly, there are 23,000 schools in the country, but only 6,000 have converted to academies in the past 5 years.

It will be a big task to convert the rest in the next four to six years, although our region is slightly ahead. Most conversions will be primary schools rather than secondaries.

All schools are being encouraged to join multi academy trusts (MATs), rather than be Single Academy Trusts (SATs). Target size for a MAT is 15-20 schools with 3,000+ children.

The emphasis has shifted from “right educational fit” to “financial reasons – economies of scale”. Significant savings are anticipated where you have 15 to 20 schools, but we have not necessarily seen this yet. If funding for academies falls in the next couple of

years, they will need to be in larger groups to survive.

So the strategy is either grow to this size quickly, or wait and see. Many of our clients are not that willing to be in larger groups, but recognise the direction of travel.

Most academies are reviewing their three-year forecast. A number have decent reserves, but see them being eroded in the next year or two. The National Fair Funding Formula will also impact on some more than others in the next couple

of years, based on location. The independent schools sector is made up of different types of schools with different types of parents paying for education, so it is difficult to generalise.

The economy has been steady for several years, and most schools have had some stability with numbers. Many that have survived can now plan ahead, although there are still one or two with historic financial problems.

Bishop Fleming is still the largest provider to academies

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in the region, second largest in the country, advising over 400 schools, including over 50 MATs with a variety of complex issues.

We are providing strategic advice to many MATs that are expanding. Varying degrees of due diligence are needed when a new school joins a MAT, ranging from doing nothing, to where the client does it, with us providing help, or us doing it for the school, through to full due diligence where there are real concerns.

30 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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Food and Drink

Country of ownership United Kingdom USA Germany Luxembourg Ireland Japan Holland Canada Spain Sweden

‘Sophisticated’ consumers see market grow Quality, ingenuity and keen marketing are helping keep the food and drink sector buoyant, reports Martin Freeman There is nothing like some good food and drink to lift the mood. And there is nothing like some good news from the food and drink sector to lift the business mood.

For all the talk about the UK economy generally slowing down, things are different in the South West, home to, and exporters of, the best that there is to tuck into or sup up.

“We see these as positive times,” said John Sheaves, chief executive of Taste of the West.

That is one grouping but a view that comes from right across the sector: the organisation’s 1,100 members include food and drink producers, distributors, restaurants, cafes, pubs, hotels, farm shops and speciality retailers.

His optimism is because of Taste of the West’s own growth and the co-operative’s success in new markets, particularly online, which has been gathering pace over the past 12 months.

Just as there are new markets, there is a new customer

‘People come for Cornwall specifically for food and drink’

Cornwall Food and Drink’s new Great Cornish Food store, colocated with Waitrose in Truro. Left: Taste of the West Chief Executive John Sheaves

Ruth Huxley, Cornwall Food & Drink on the scene, which opens up a fresh opportunity for savvy food and drink businesses.

“We are seeing a differentiated [market with] a more sophisticated consumer,” said Mr Sheaves.

“People don’t go to one big supermarket for all their shopping any more. They’ll go to one supermarket, a discounter, a specialist shop and a local butcher and do some shopping online.

“That has changed and developed tremendously over the last few months. That is opening things up quite nicely for the independents and opportunities are opening up online for the national and international markets.”

Throughout the Westcountry, fortunes in the food and drink sector are closely tied to tourism. In Cornwall the link is arguably closer than in any other county.

“Tourism always affects the hotel and restaurant sector, which has a knock-on effect on production,” said Ruth Huxley, managing director of Cornwall Food and Drink. “The body has 200 members, right across the sector. Last year the summer

weather was not fantastic but generally things were buoyed by the Poldark effect.”

There was concern, she said, about how long the hugely popular BBC television series would continue to draw people into Cornwall.

So far this year, though, the signs were good. “Cornwall is already busy,” she said. “It is one of those places people come to, year-in, year-out. It has much more than beach holidays.

“People come for Cornwall specifically for food and drink, and seafood is the thing that

people most identify with Cor nwall.

“On the production side, Cornwall has a sector with extremes, with some major and many small manufacturers and not an awful lot in between.”

Large manufacturers producing mainstream products faced tight margins and continued to invest in their manufacturing process, making the best of their people and equipment, she said.

One big player, Tulip Foods, got the year off to a dismal start, announcing that more

than 400 jobs were under threat with the news that cooked meat production was facing a move from Bodmin to other sites in the UK. Clearly, the farther West an enterprise is located, the more transport costs come into the business equation, particularly if the market is outside the Westcountry.

The continuing low price of fuel had helped in recent months, said Mr Sheaves.

Energy prices, too, were lower than they had been in previous years, as were some other commodities.

Not all low prices are good for all, though. While consumers and processors who use milk have enjoyed the depressed farm-gate price, all in the food and drink sector were mindful of the effect on farmers, said Mrs Huxley.

Another factor, too, has been the uncertainty about the future caused by the longdrawn-out EU referendum campaign, affecting business planning and investment decisions.

“There was that fear of the unknown, not knowing which way the decision would go,” said Mrs Huxley, “now we have the uncertainty about what coming out of Europe will mean.

“Trade with Europe had become so easy. There is a fear that it might become more difficult.”

Still, though, and uncertainties aside, there is general feeling of optimism across the food and drink sector.

That is down to the quality of the produce and the ingenuity of those who sell and add value to the stuff, and the joined-up and increasingly sophisticated marketing approach.

Taste of the West has 60 products and is pushing on to reach 150, offered online through a virtual shop with

SpecialistadviserstotheHotels,Tourism&Leisuresector. www.bishopfleming.co.uk

Ocado. “Sales are ahead of expectations,” said Mr Sheaves.

The same discerning kind of customer is being satisfied by Cornwall Food and Drink’s new Great Cornish Food store, co-located with Waitrose in Truro.

New markets are being tapped into as the distilling phenomenon continues to expand. “We now have five or six gins being distilled in Cornwall and our experience is that it is flying off the shelves,” said Mrs Huxley.

“That craft element in cider, beer and spirits is developing superbly.”

Exports were growing, partly driven by demand but businesses, particularly newer, smaller enterprises needed support and guidance in developing and selling into new markets. Government support through UK Trade and Investment played a very important role, said Mrs Huxley.

Whatever the challenges ahead, the food and drink sector has one natural advantage. “People always have to eat and drink and the sector tends to do well even in slow economies,” said Mr Sheaves.

“People like to indulge and to treat themselves.

“It is about quality and integrity and provenance.”

Pe bu

WESTERN MORNING NEWS THURSDAY JULY 7 2016 31

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Sponsors

ercentage of usinesses

Analysis of Top 150 indicates a region in good health 87% 3% 3% 1% 1% 1% 1% 1% 1% 1%

Jerry O’Sullivan , chairman of Bishop Fleming, looks at what makes the Westcountry so special as a region to do business in

Top150 150BUSINESSES businesses in Devon and Cornwall by country of TOP IN DEVON AND CORNWALL BYownership COUNTRY OF OWNERSHIP 3%

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United Kingdom USA Germany Luxembourg Ireland Percentage of businesses 25% 23% 10% 10% 7% 7% 4% 3% 3% 3% 2% 2% 1%

Sector Manufacturing Wholesale & Retail Health & Social Work Leisure & Tourism Transport, Storage & Communication healthy Business mix Servicesof industries across the region. This healthy Property & Construction mix of size and sector helps the Agriculture, Fishing, Hunting & Forestry region’s economy to balance Social Personal Service Activities outCommunity, the peaks and& troughs of Mediaand & Creative Industries supply demand.

And this is so Engineering across both domestic and inMining & Quarrying ternational markets.

Electricity, Gas or Water Supply As regards foreign invest-

The bedrock of the Westcountry economy is the owner-manment into the region, only 13% aged business, and analysis of of the Westcountry’s Top 150 this year’s Top 150 Devon and companies have overseas Cornwall firms indicates a owners, while the overwhelmregion in good health. ing majority (87%) are owned While the Brexit debate may and managed within the Westhave resulted in some compancountry. ies putting decisions on hold, There’s no denying that the financial results over the major international employlast two years show Westcouners, like EDF, are important to try businesses outperforming the Westcountry economy, but the rest of the UK by some way. many of this region’s successIn 2015 we reported that busiful companies are family business growth of the Top 150 had nesses with roots in the region, been just under 6% over the and with a tangible pride in year. In this year’s analysis, being here. growth is still sitting at slightly That is why the Western above 5%. Compare this to the Morning News Annual BusiUK economy as a whole, where ness Guide has long opted to official statistics show GDP increate this league-table based creased by only 2.5% on the preon the number of people comvious year, and the Westcounpanies employ, rather than on try’s performance is very the size of their turnover. positive.

The analysis and ranking of Having said that, there the Top 150 includes all employremain only five publicly-listed ees of Westcountry-based comcompanies based in Devon and panies, and not just those who Cornwall, and only two of those work in Devon and Cornwall.

Percentage of shows us there are 16 are on the full London Stock The study businesses Turnover Exchange.

It hasBand been some companies employing more years since than 1,00022% staff, and at the top £1m there - £9m was a new listing of£10m a Westcountry busiend the highest - £19m 20% three companness. ies on the list employ a total £20m - £29m 13% However, the Westcountry’s workforce13% of nearly 16,000. £30m - £39m Top 150 does have a very Compare this to the bottom end £40m - £49m 7% healthy mix of owner-managed of the list where the last 10% all £50m companies, in- £59m terms of their employ less7% than 200 people. £60m £99m 6% Top 150 employ size and diversity of the secIn total, the £100m - £249m 6% tors. Over half the firms have a more than 75,000 staff. turnover£250m of less than £30 milThe Top 6% 150 league table exand above lion. cludes major employers in the At the other end of the scale, public sector, and those huge we have just one company – the companies like EDF and BT, Pennon Group PLC – with a which although they employ turnover of more than £1 billarge numbers in Devon and lion. Just 12% of the WestcounCornwall, are not based here. try’s Top 150 companies have a Finally, it is pleasing to turnover exceeding £100 milreport that this year’s Western lion.

Morning News Top 150 leagueOn the sectors front, manutable shows Westcountry firms facturing (25%) and wholesale generating both jobs and ecoand retail (23%) dominate the nomic growth for Devon and figures, with health and social Cornwall – and for the UK. It work (10%) and leisure and signifies a region that contintourism (10%) some way ues to be in good health and behind. There are a further performing above the UK avnine sectors, indicating a erage.

1%1% 1% 1% 1% 1%

1%

Japan Holland Canada Spain Sweden

87%

Top 150 Devon and Cornwall by sector TOP 150 BUSINESSES IN Businesses DEVONinAND CORNWALL

BY SECTOR

3%

3%

3%

2%

Manufacturing

2% 1%

Wholesale & Retail

25%

4%

Health & Social Work

7%

Leisure & Tourism Transport, Storage & Communication

7%

Business Services Property & Construction Agriculture, Fishing, Hunting & Forestry Community, Social & Personal Service Activities Media & Creative Industries

10% 23%

Engineering Mining & Quarrying

10%

Electricity, Gas or Water Supply

TopDEVON 150 businesses in Devon and Cornwall by turnover TOP 150 BUSINESSES IN AND CORNWALL BY TURNOVER 6%

6% 22%

£1m - £9m

6% £10m - £19m £20m - £29m

7%

£30m - £39m £40m - £49m

7%

£50m - £59m £60m - £99m £100m - £249m 20% £250m and above

13%

13%

OfficesinBath,Bristol,Exeter,Plymouth,Torquay,Truro&Worcester. www.bishopfleming.co.uk

32 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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Top 150 list Position 2016 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75

Company name CDS (Superstores International) Limited Devonport Royal Dockyard Limited / Babcock International Group PLC Pennon Group PLC / Viridor / South West Water Princess Yachts International PLC / R.N.O. Group SCA Wills Lifestyle Holdings Limited / Jack Wills Limited Flybe Group PLC Newcross Healthcare Solutions Limited Mole Valley Farmers Limited Gregory Distribution (Holdings) Limited Cornwall Care Services Limited Cormac Solutions Limited Scot Group Southern Limited Percy R Brend & Sons (Holdings) Limited Imerys Minerals Limited St.Austell Brewery Company Limited White Rose UK Ltd Helston Garages Group Limited Charles Robertson (Holdings) Limited / Trago Mills Limited First South West Limited Norbord Europe Limited H.Tempest Limited Centrax Holdings Limited Vospers of Plymouth Limited Actavis UK Limited Francis Clark LLP Howmet Limited Wrigley UNO UK Limited Gillett's (Callington) Limited Saltrock Surfwear Limited / Plymouth Pavilions / Suite Hospitality Riverford Organic Farmers Limited Wrafton Laboratories Limited Warrens Bakery Limited John Heathcoat & Company (Holdings) Limited Michelmores LLP Foot Anstey LLP Midas Group Limited Barden Corporation(U.K.)Limited(The) Ashfords LLP Torquay Leisure Hotels Limited Eden Project Limited Amberon Limited Vital Pet Products Limited Mill Auto Supplies Limited British Ceramic Tile Limited Goodridge Limited BV Environmental Limited / Bandvulc Tyres Ltd W.C. Rowe (Falmouth) Limited CWC (UK Holdings) Limited B.A.I. (U.K.) Limited / Brittany Ferries EMC Advisory Services Limited Pendennis Shipyard (Holdings) Limited Chadwick Brothers Limited / Seasalt Limited Landmark Information Group Limited Bray Leino Limited Select Living (Devon) Limited Manor House Hotel (Okehampton) Limited Bott Limited Rotolok (Holdings) Limited Rittal-C S M Limited John Fowler Holidays Limited Ukrd Group Limited Bishop Fleming LLP Tdk-Lambda UK Limited David Hunt (North Devon) Limited Daish's Group Limited Stephens Scown LLP Red Hotels Limited Modus Care Limited Swallowcourt Holdings Limited Eastleigh Care Group Limited The Seafood Restaurant (Padstow) Limited Morleigh Limited Stovax Heating Group Limited The Dorset, Devon And Cornwall Community Rehabilitation Company Limited Rawle Gammon & Baker Holdings Limited

Total Employees 6,670 4,747 4,558 2,185 1,940 1,850 1,786 1,450 1,342 1,302 1,130 1,110 1,108 1,102 1,068 1,038 880 870 782 772 754 688 684 662 656 588 523 510 508 486 481 477 463 452 445 443 426 423 416 412 398 394 394 389 383 377 376 366 363 361 361 356 352 350 342 342 328 328 325 324 323 320 314 312 303 298 296 290 289 286 285 282 280 276 275

Turnover (£ 000) 565,064 638,467 1,357,200 239,630 131,961 574,100 67,575 407,793 138,252 20,604 99,197 102,131 52,277 179,158 125,354 28,568 471,435 75,767 30,632 309,094 38,373 74,616 250,937 218,414 39,065 90,903 257,989 66,069 26,363 47,243 50,861 13,578 48,799 32,800 35,900 248,630 41,297 35,382 12,198 18,044 20,649 76,949 30,424 40,717 34,494 53,920 15,926 201,769 16,427 19,742 36,861 28,213 56,648 53,637 5,538 15,437 36,462 23,707 51,554 20,463 18,343 19,800 36,731 10,216 12,128 17,850 9,478 7,674 8,081 7,339 15,292 6,590 43,561 7,702 52,602

Turnover Band £250m and above £250m and above £250m and above £100m - £249m £100m - £249m £250m and above £60m - £99m £250m and above £100m - £249m £20m - £29m £60m - £99m £100m - £249m £50m - £59m £100m - £249m £100m - £249m £20m - £29m £250m and above £60m - £99m £30m - £39m £250m and above £30m - £39m £60m - £99m £250m and above £100m - £249m £20m - £29m £60m - £99m £250m and above £60m - £99m £20m - £29m £40m - £49m £50m - £59m £10m - £19m £40m - £49m £30m - £39m £30m - £39m £100m - £249m £40m - £49m £30m - £39m £10m - £19m £10m - £19m £20m - £29m £60m - £99m £30m - £39m £40m - £49m £30m - £39m £50m - £59m £10m - £19m £100m - £249m £10m - £19m £10m - £19m £30m - £39m £20m - £29m £50m - £59m £50m - £59m £1m - £9m £10m - £19m £30m - £39m £20m - £29m £50m - £59m £20m - £29m £10m - £19m £10m - £19m £30m - £39m £10m - £19m £10m - £19m £10m - £19m £1m - £9m £1m - £9m £1m - £9m £1m - £9m £10m - £19m £1m - £9m £40m - £49m £1m - £9m £50m - £59m

Type of organisation Private Limited Private Limited Public, Quoted Public, Not Quoted Private Limited Public, Quoted Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Limited Liability Partnership Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Limited Liability Partnership Limited Liability Partnership Private Limited Private Limited Limited Liability Partnership Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Limited Liability Partnership Private Limited Private Limited Private Limited Limited Liability Partnership Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited

Country of ownership United Kingdom United Kingdom United Kingdom Luxembourg United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom Holland United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom Canada United Kingdom United Kingdom United Kingdom Ireland United Kingdom USA United Kingdom United Kingdom United Kingdom United Kingdom Ireland United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom Germany United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom Germany United Kingdom Germany United Kingdom United Kingdom United Kingdom Japan United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom Sweden United Kingdom United Kingdom

Awarded'exceptional'andthehigheststandardsof customercareby'InvestorinClients'.

Category Wholesale & Retail Engineering Electricity, Gas or Water Supply Manufacturing Wholesale & Retail Transport, Storage & Communication Health & Social Work Wholesale & Retail Transport, Storage & Communication Health & Social Work Property & Construction Transport, Storage & Communication Leisure & Tourism Mining & Quarrying Leisure & Tourism Wholesale & Retail Wholesale & Retail Wholesale & Retail Transport, Storage & Communication Manufacturing Media & Creative Industries Manufacturing Wholesale & Retail Manufacturing Business Services Manufacturing Manufacturing Wholesale & Retail Wholesale & Retail Agriculture, Fishing, Hunting & Forestry Manufacturing Manufacturing Manufacturing Business Services Business Services Property & Construction Manufacturing Business Services Leisure & Tourism Leisure & Tourism Wholesale & Retail Wholesale & Retail Wholesale & Retail Manufacturing Manufacturing Transport, Storage & Communication Manufacturing Wholesale & Retail Transport, Storage & Communication Business Services Manufacturing Wholesale & Retail Business Services Media & Creative Industries Health & Social Work Leisure & Tourism Manufacturing Manufacturing Manufacturing Leisure & Tourism Media & Creative Industries Business Services Manufacturing Leisure & Tourism Leisure & Tourism Business Services Leisure & Tourism Health & Social Work Health & Social Work Health & Social Work Leisure & Tourism Health & Social Work Manufacturing Health & Social Work Wholesale & Retail

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Position 2016 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150

Company name South West Environmental Parks Limited Kawasaki Precision Machinery (UK) Limited Exeter And Devon Airport Limited West Cornwall Pasty CO. Limited Atlantic Inertial Systems Limited Styles & Brown Ltd / Axminster Tool Centre Ltd Grevan Cars Limited Philip Dennis Foodservice Limited Otter Nurseries Limited Watson-Marlow Limited Maximus Health And Human Services Limited Phoenix Learning & Care Holdings Limited PRO - Direct Group Limited E. & J. W. Glendinning (Holdings) Limited Trinity Ten Limited Toshiba Carrier UK Ltd. Graphic PLC Aero Stanrew Group Limited Centek Holdings Limited PK Food Concepts Ltd. CC Education Services Limited Proper Cornish Limited Lang & Potter (Holdings) Limited Maximum Fun Holdings Limited Victoria Group Holdings Limited Hi-Line Contractors S.W. Ltd. Peninsula Care Homes Limited VI - Spring Limited Professional Reseller Group Limited / Stormfront Retail Limited Southern Healthcare (Wessex) Ltd Watergate Bay Hotel Limited Cornwall Glass & Glazing Limited Steve Hoskin Construction Limited Southern England Farms Limited H. Days Holdings Limited Beacon Communication Services Limited The Cornish Bakery Shops Limited Hawkins Holdings Limited The Blue Sea Food Company Limited E T Holdings Limited This Is IT Stores Limited Stonehaven (Healthcare) Ltd Still Materials Handling Limited Malcolm Barnecutt Bakery (Holdings) Limited Cannon Care Homes Ltd Isles of Scilly Steamship Company Limited Bradleys Group Ltd. South West Care Homes Limited Nettleton Holdings Limited Twofour Broadcast Limited Original Style Limited Exeter Rugby Group PLC Shervey Limited Coodes LLP Securi-Guard (Holdings) Ltd SC Group-Global Limited / Supacat Limited Vistgate Limited Sparex Limited Roadform Civil Engineering Company Limited Banburys Limited Golden Coast Sporting Villas Limited Home Hardware Southwest Limited Goonvean Holdings Limited Pritchard Patent Product Company (2001) Limited MJL Cornwall Limited Coastguard Road Limited South West Communications Group Holdings Limited Tasties of Chester Limited Allan Sichel Limited Cornish Farm Dairy Limited Torcare Limited Crantock Bakery Limited F W S Carter & Sons Limited Pencarrie Holdings Ltd. Teagle Holdings Limited

Total Employees 271 271 270 267 266 263 258 255 254 249 244 243 243 240 239 238 235 233 229 226 225 224 224 222 222 220 220 220 220 219 216 214 214 213 212 210 209 208 207 206 205 202 201 198 197 197 196 193 190 189 186 184 181 180 176 175 173 173 172 170 169 164 163 163 162 162 161 161 161 158 158 158 158 158 157

Turnover (£ 000) 11,491 47,009 19,031 12,495 41,267 35,471 105,273 36,416 17,300 42,481 33,040 7,345 59,295 34,067 21,548 80,687 16,819 16,532 27,411 19,227 5,871 14,933 16,249 7,834 27,196 9,542 5,915 38,707 53,437 4,861 8,453 13,912 29,262 13,583 5,669 23,701 7,568 70,802 12,101 24,737 21,634 5,835 47,884 6,485 5,978 16,306 9,457 5,981 7,086 29,388 17,412 13,223 4,543 7,250 7,380 2,5484 3,1633 35,276 19,183 6,124 6,544 30,568 20,468 9,513 27,439 9,554 18,776 10,891 31,239 34,878 2,770 11,965 26,721 48,025 13,434

Turnover Band £10m - £19m £40m - £49m £10m - £19m £10m - £19m £40m - £49m £30m - £39m £100m - £249m £30m - £39m £10m - £19m £40m - £49m £30m - £39m £1m - £9m £50m - £59m £30m - £39m £20m - £29m £60m - £99m £10m - £19m £10m - £19m £20m - £29m £10m - £19m £1m - £9m £10m - £19m £10m - £19m £1m - £9m £20m - £29m £1m - £9m £1m - £9m £30m - £39m £50m - £59m £1m - £9m £1m - £9m £10m - £19m £20m - £29m £10m - £19m £1m - £9m £20m - £29m £1m - £9m £60m - £99m £10m - £19m £20m - £29m £20m - £29m £1m - £9m £40m - £49m £1m - £9m £1m - £9m £10m - £19m £1m - £9m £1m - £9m £1m - £9m £20m - £29m £10m - £19m £10m - £19m £1m - £9m £1m - £9m £1m - £9m £20m - £29m £30m - £39m £30m - £39m £10m - £19m £1m - £9m £1m - £9m £30m - £39m £20m - £29m £1m - £9m £20m - £29m £1m - £9m £10m - £19m £10m - £19m £30m - £39m £30m - £39m £1m - £9m £10m - £19m £20m - £29m £40m - £49m £10m - £19m

AuditAssurance&Accounts. www.bishopfleming.co.uk

Type of organisation Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Public, Not Quoted Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Public, Not Quoted Private Limited Limited Liability Partnership Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited Private Limited

Country of ownership United Kingdom Japan United Kingdom United Kingdom Luxembourg United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom USA United Kingdom United Kingdom United Kingdom United Kingdom USA United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom Spain United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom Germany United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom USA United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom USA United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom

Category Leisure & Tourism Manufacturing Transport, Storage & Communication Wholesale & Retail Manufacturing Wholesale & Retail Wholesale & Retail Wholesale & Retail Wholesale & Retail Manufacturing Community, Social & Personal Service Activities Community, Social & Personal Service Activities Wholesale & Retail Mining & Quarrying Engineering Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Community, Social & Personal Service Activities Manufacturing Manufacturing Leisure & Tourism Transport, Storage & Communication Agriculture, Fishing, Hunting & Forestry Health & Social Work Manufacturing Wholesale & Retail Health & Social Work Leisure & Tourism Manufacturing Property & Construction Agriculture, Fishing, Hunting & Forestry Community, Social & Personal Service Activities Business Services Wholesale & Retail Wholesale & Retail Manufacturing Transport, Storage & Communication Wholesale & Retail Health & Social Work Wholesale & Retail Manufacturing Health & Social Work Transport, Storage & Communication Wholesale & Retail Health & Social Work Property & Construction Media & Creative Industries Manufacturing Leisure & Tourism Health & Social Work Business Services Engineering Manufacturing Agriculture, Fishing, Hunting & Forestry Wholesale & Retail Property & Construction Wholesale & Retail Leisure & Tourism Wholesale & Retail Mining & Quarrying Wholesale & Retail Property & Construction Wholesale & Retail Business Services Manufacturing Wholesale & Retail Agriculture, Fishing, Hunting & Forestry Health & Social Work Manufacturing Transport, Storage & Communication Wholesale & Retail Manufacturing

34 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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A quarter of annual business guide companies are supported and advised by PKF Francis Clark* Delivering accountancy, business advice and support, financial planning and tax solutions across the South West

pkf-francisclark.co.uk *This is based on the Western Morning News Annual Business Guide for 2015.

PKF Francis Clark offices: Exeter | New Forest | Plymouth | Poole | Salisbury | Taunton | Torquay | Truro Francis Clark LLP is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.

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WESTERN MORNING NEWS THURSDAY JULY 7 2016 35

Listed companies

Flybe has been reorganising its fleet of jets so that it will eventually own, rather than lease, half of its aircraft

A varied year for West’s listed companies

BY JAMES FINNEGAN, Corporate finance partner at Bishop Fleming The Westcountry still only hosts five publicly listed companies, one of the lowest levels in the country.

Only two of those companies, Pennon Group PLC and Flybe Group PLC, are listed on the full London Stock Exchange.

The other three are listed on the Alternative Investment Market (AIM), which is junior to the LSE. There has been no new listing of a Westcountry business for some time. This reflects a regional reluctance to abandon the freedom of independence in favour of the costs and constrictions of a public listing.

Pennon Group PLC

Largest of the Westcountry’s listed companies is Pennon Group PLC, the name behind South West Water, Bournemouth Water and Viridor Waste Management, with a market capitalisation of about £3.3 billion.

The past year has seen a small adjustment in the share price, and cautious investors remain attracted to regulated

Listed Companies in Devon and Cornwall 2014/15 Business Name Pennon Group PLC Flybe Group PLC Blur Group PLC Sutton Harbour Holdings PLC Heavitree Brewery PLC

Turnover £m 1,357,200 574,100 1,826 6,955 7,082

utilities which offer good earnings visibility and predictable dividends.

Pennon boosted its operations last year with the £100 million acquisition of Bournemouth Water, the integration of which with South West Water is ongoing to deliver synergies and savings of around £27 million. South West Water is also gearing up for more competition in 2017 from the opening up of the non-household retail market.

As for Viridor, there may be increasing pressure on margins in the recycling business as a result of local authority austerity, but long term EU and UK government drivers for recycling should ensure continued demand.

Flybe Group PLC

The Westcountry’s only other LSE listed company, Flybe, saw its share price fall to around 50p, reflecting the lows

Number of Employees 4,558 1,850 62 35 13

of 2013, even though its recent results show a return to profitability. No dividends have been paid in recent times.

Flybe is currently well in flight with its streamlining programme, which has seen cuts in both costs and staff. It has also been reorganising its fleet of jets so that it will eventually own, rather than lease, half of its aircraft.

The company has not been able to take full advantage of collapsing fuel prices, due to its hedging at high prices.

Demand for budget travel remains strong, though this is a very challenging market with tight margins. Flybe has launched a number of new routes during the year, which has helped boost its passenger numbers.

Blur Group PLC

Newest of the Westcountry’s listed companies, Blur Group continues to see its share

Main Exchange London Stock Exchange Main Market London Stock Exchange Main Market AIM AIM AIM price fall. At March 2015 it was over 100p, but is now trailing at around 10p. While it was a pioneer of online market services, Blur is now being affected by competitors in its arena.

Various [Heavitree Brewery] properties have been sold and some converted The group is implementing a cost and staff-reduction drive as part of streamlining its activities and core services. It sees a decline in project revenues over the past year as part of a transitional shift to new forms of sales from repeating, loyal customers. The business expects to be back in profit at some stage,

but probably breaking even in 2016.

through new homes, offices, retail and leisure space.

The AIM listed company operates Sutton Harbour Marina, King Point Marina and Plymouth Fisheries. It continues to rebuild its core strength after a costly venture into owning Plymouth City Airport and Air South West. A 90%-plus occupancy rate for its quayside development in Plymouth’s Barbican has helped produce a steady improvement in profitability.

The company’s potential remains constrained by its existing capital structure. As such, the directors are looking at alternative ways of maximising value for shareholders.

To this end it has appointed Rothschild to assist with a strategic review of options, which could include a sale of the company.

The share price has been falling due to uncertainty over the company’s direction, although in May this year showed signs of rising again, probably as a result of the announced strategic review.

The company has published its vision for Sutton Harbour, which involves bringing redundant sites around the harbour back into economic use

With a market capitalisation of just over £16 million, Heavitree is the smallest listed company in the region. There are no institutional shareholders. Trading tends to be light, with most shares concentrated among a relatively small group of investors.

The share price has stabilised over the past year. Net income fell in 2015 on flat revenues, due to increased costs. The company will be adversely affected by the introduction of the new National Living Wage, though it should benefit this year from increased sales due to the Euro 2016 football tournament.

Various properties have been sold and some converted into dwellings. The company recently invested £330,000 in acquiring a closed pub in Teignmouth.

Meanwhile, the Westcountry is home to many thriving, innovative, and growing owner-managed businesses, most of which show little appetite for a public listing – and all the costs and constraints that go with it. That continues to be the Westcountry way!

Sutton Harbour Holdings PLC

It is a two-way relationship - they invest in it as much as we do The Royal Shakespeare Company

Heavitree Brewery PLC

36 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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Vospers

Firm about to mark 70 years is ‘all about the people’ Motor dealership Vospers is again among the South West’s key companies with turnover for 2016 remaining constant at £230 million and huge investments taking place in Exeter, Plymouth and Truro.

While the figures are impressive, placing it in the top 50 motor dealers in the UK, the firm, celebrating 70 years this year, stresses the most important element is people – customers and staff.

“This business is about the people,” said managing director Nick Vosper.

He stressed that from a workforce of 700 people, five current employees have been with the firm for more than 40 years, a further 11 have clocked up 30 years, seven have competed two decades and 57 have worked for Vospers for more than ten years. His father, company chairman Peter Vosper, will mark 50 years of service in 2017.

“That will be something we’ll celebrate,” Nick said.

“And we have 200 years of service with our directors, excluding my father. For me, it’s the cornerstone of our success, 70 years of heritage is due to the people and our core values – the way we treat our customers – accountability, trust, respect.

These are the pillars.”

Vospers is also gearing up to celebrate its 70th anniversary with events such as a showroom get-together for loyal customers.

The business also wants to find its oldest customer, or anyone with literature, testimonials or invoices from the distant past.

“There are lots of things we want to do to make it a bit of fun,” Nick said.

But as they look to the past, they are constantly looking forward too, in an industry which, they say, is facing huge challenges and changes, whether that be the growth of personal contact plans (PCPs), a spate of company acquisitions, a dearth of diversity among the workforce, or demands from manufacturers for continued investment.

Vospers, with 18 sites already, is continually ploughing money into the business.

This includes the development of the Matford Green Business Park site in Exeter, and the

Despite impressive financial figures, the dealership stresses the most important element is people – customers and staff – finds William Telford creation of new showrooms in Truro.

The Exeter development is described by Nick as “the single biggest investment in the business we’ll make” with £11 million being spent on land and buildings.

The company has already been chosen as a FordStore in Exeter – selling RS, Mustang and Vignale – and the same will happened in Plymouth too.

With only about 70 Ford Stores in the UK, it is a feather in the cap for the company.

Vospers is also due to complete its new site in Truro this summer, with new Mazda, Fiat and Abarth showrooms.

Peter said manufacturers are constantly demanding “bigger and better” premises,

‘Our core values are accountability, trust, respect’ Managing director Nick Vosper stressing: “They are looking for investment on a regular basis. You can’t just put up a showroom now and expect it to be there for ten years. And upgrades cost money.”

This investment will help the company sell an estimated 18,000 vehicles in 2016, with Peter and Nick saying PCPs have revolutionised the way cars are bought and sold.

“It gives young people to get a new car much easier than they expected,” said Peter.

“And newer, more up-to-date vehicles are better for the environment, as well as the customer.”

Challenges are a constant factor for the industry and Peter and Nick are alarmed by the rate of consolidation going on in the motor trade as large companies swallow up smaller competitors.

“In the motor business now, big seems to be beautiful,” said Peter. “The amount of consol-

Chairman Peter Vosper (centre) pictured with brother-in-law Eric Goss and son Nick Vosper, who is managing director idation is moving forward at a frightening rate.”

Nick said: “A lot of plc growth is through taking over family businesses. But we are talking anything from £80 million to £300 million in turnover, so these are not small businesses.”

Other hurdles are closer to home, with the company, for instance, reversing a move to shift service receptions out of showrooms.

“There are always challenges and we are always lear ning,” said Nick.

Peter added: “For instance we have real concerns about skills and the diversity of our business.”

This has prompted Vospers to become involved in the Skills Aid initiative, bringing

children, teachers and mentors together, and, for example, giving them a tour of the Marsh Mills operation.

“There is a perception that it’s basic and dirty, but that’s not the case,” said Nick. “In terms of technology, we’re now very sophisticated.

“There are not enough graduates, that’s across the industry. We need more and accept we need to get out more and speak to schools and see that though in terms of apprentices.

“During the recession, like a lot of employers, we cut back.

One area was with apprentices. That was a wrong decision.

“Now we are vigorously promoting a number of apprentices in the business, in sales,

service, parts, all the main areas.

“We’ve 30 apprentices at the moment, but need more.

“But the industry does not attract young people or women.

Diversity is something we would like to encourage, to make it more representative.”

Peter stressed the firm is already making strides to address this, already employing women in key senior roles and even as technicians.

“It’s a changing world,” he said.

Nick said: “That’s not to mention that a lot of our customers are female, and want someone that understands their needs, and who better to do that than another woman.

“But we’d like more women

We’re deeply committed to facilitating success for our clients

in management. We welcome applications from women for management roles.”

Peter said Vospers also wants to employ more people on a part-time basis.

“We need more flexibility for customers, as well as for the people that work here,” he said, stressing the “challenge” of providing a better work/life balance for employees.

“And it’s because we are keen to retain talent,” said Nick, who pointed out employee satisfaction directly leads to customer satisfaction.

In Exeter, the firm is measuring employee engagement and has witnessed a big improvement.

“That’s pleasing,” he said.

“But we can still do better. Staff engagement is key.”

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WESTERN MORNING NEWS THURSDAY JULY 7 2016 37

Threemilestone

Celebrating 70 years of motoring business

For all your

contract hire needs

For all your

commercial

vehicle needs

means motoring in the South West

38 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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Sponsor: Foot Anstey

Preparation is essential when selling a business

BY KEN LEWINS (senior associate), and Duncan Sykes (partner), of Foot Anstey

Preparing a business for sale is a complicated process and more often than not we see in early conversations that owners do not know whether they have a plan in place or not.

Business owners who have not prepared for a sale properly, or have not understood the hard truths about selling a business, will risk damaging the value of their business at the point of exit and years of hard work will have been wasted.

Understandably, it is often hard for business owners to step back and look objectively at their business through the eyes of a prospective buyer in order to identify limitations and risks of and to the business and put a coherent exit plan together. However, this is a crucial step in preparing a business for sale. While there are often many drivers for business owners who are seeking to exit their business, the outcome at the forefront will be the desire to maximise sale value.

Growing value of an enterprise takes time and effort and anybody wishing to exit needs to start that planning process with a mind to their desired outcome well in advance of actually selling.

Valuing a business is a dark art at best, but few buyers would argue that there are a core of “desirables” that help drive value including profitability, growth opportunities, the quality of the product or service, low debts, minimal liabilities, low capital expenditure requirements, quality of management and a convincing growth plan.

At best, the process to adequately prepare a business for sale from setting the wheels in motion to receiving the purchase monies is a one-year process, but realistically can take up to two or three years.

It is completely understandable that a business owner’s sense of self and purpose is often wrapped up in their busi-

BE PART OF IT

Duncan Sykes ness and the decision to let go can be much more difficult than they realise. So, when that hard decision has been made everything possible should be undertaken to deliver the best outcome.

■ 1) Get on top of your numbers – not being on top of your financials can impact the valuation process and make businesses and their owners seem less credible. Having your financial statements reviewed by a decent accounting firm will pay dividends and the review may point out weaknesses in the business’s controls and financial operations giving the time to correct issues and put in place robust measures.

■ 2) Create a growth plan – remember, buyers are interested in the future. Having a credible growth plan laying out a path for future growth and profits, showing that the business still has opportunities ahead of it, will be key to maximising value and incentivising buyers.

■ 3) Divest business dependency from one to a few – business assets, such as key customer relationships and IP, need to be transferable and spread over a number of key employees to avoid the issue of value being ascribed not to the business itself but to a key individual which can be an insurmountable risk for incoming buyers.

■ 4) Get on top of housekeeping – books and records which are in disarray can cost when translated to value. Key customer or supplier contracts which simply do not exist create a significant risk for any incoming buyer and not

Ken Lewins (left) with David Armstrong, Hydra Group being on top of more administrative items will add time and costs to the exit process.

■ 5) Establish adviser relationships – engaging in early dialogue with experienced advisers, including lawyers, accountants and investment bankers, is key to achieving a successful exit and well picked advisers can very much pay for themselves during the process.

Instructing advisers with relevant experience and specialisms who can strengthen the sale preparation plan and take owners through the transaction process will add substantial value and peace of mind, in what can be a complex process.

■ 6) Incentivise management – more often than not a buyer places value on the ability of the ongoing management

team, who can hold huge sway over the future growth and profitability of the business.

Ensuring these individuals are adequately incentivised during a period of potential flux and uncertainty will ensure the process is as smooth as possible.

■ 7) Cut out unnecessary costs – it is fair to say that many private businesses are run, in part, to minimise tax liabilities of the owners and shareholders. Cutting expenses that are not critical and shifting focus to show as much profit as possible can pay dividends.

■ 8) Know your buyer – understanding the buyer type will help steer focus on the exit plan, the presentation of the business and the value drivers that a particular buyer will be concentrating on.

SOCIAL MEDIA FOR BUSINESS WORKSHOP Wednesday 17 August, 3.00pm - 6.00pm | £59 per person

Strong growth at Foot Anstey Top 100 UK law firm, Foot Anstey, has posted its yearend results which show continued strong organic growth of 12% with turnover increasing to £36 million. Over the past five years the turnover has grown by 60%, a strong performance which puts the firm amongst the fastest growing in the industry.

Much of this growth has been delivered by a strategic focus on four key sectors that have grown by 20%. The fir m’s focus sectors are: ■ Banking and financial services.

■ Media and technology.

■ Retail and leisure.

■ Property, infrastructure and construction.

Clients within these focus sectors include Santander, Silvergate Media and Ministry of Sound.

The firm has continued to invest in people with six lateral hires over the past 12 months and two partner and two director promotions from May 1. Total headcount across six offices is expected to exceed 500 in the next 12 months.

Managing partner John Westwell recently highlighted by trade publication The Lawyer as one of their “Hot 100” legal professionals in 2016, said: “The last five years have seen excellent growth and last year was no exception.”

Book now: 01752 305026 employers@cityplym.ac.uk onlinestore.cityplym.ac.uk

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WESTERN MORNING NEWS THURSDAY JULY 7 2016 39

Midas Group

Building firm celebrates 40th anniversary with optimism and raft of new contracts One of the South West’s most successful construction firms celebrates a major milestone this year, and the future continues to look bright thanks to new projects in progress across the region. Tom Cowle reports The Midas Group is marking its 40th anniversary, but this momentous milestone is a small part of the celebrations as prestigious national awards were quickly followed by major new contract wins across the UK. Midas may have started from modest beginnings in 1976 when former chairman Len Lewis set up a building firm in South Devon, but today the company is recognised as one of the most successful and innovative independent construction and property firms in the South West, delivering high quality developments across the region and contributing to the region’s economy by creating high value jobs and employing locally based subcontractors.

With five thriving divisions comprising construction, interiors, retail, energy and housing, Midas has also become one of the largest independent construction firms in the UK, with a stream of major projects breaking ground across the country including in the South East, Wales and London.

Midas successfully overcame challenging economic conditions affecting the construction industry in recent years to enjoy a strong position of growth in 2015-16, and has secured a number of key contract wins in the last two years, in large part because of its ongoing position on more than 20 major frameworks, including the Southern Construction Framework.

Midas now employs more than 450 people, with turnover approaching £250 million, supporting the regional economy by hiring companies local to the communities it works within whenever possible.

This year, Midas will achieve 20 per cent growth across the group and the vast majority of new contracts have arisen from negotiated tenders and repeat clients, proving that the company’s commitment to ensuring exceptional customer service continues to bear fruit.

Market share has doubled since 2008 and Midas continues to build on its strong base

Midas Group CEO Alan Hope is celebrating the firm’s 40th anniversary in the South West, whilst also expanding its operations in Wales and the South East, with the Midas Southern division enjoying especially strong success.

The Midas Group has consistently placed within the top two construction companies in the South West on a consecutive monthly basis for the last year. Alan Hope, chief executive at The Midas Group, said: “Our ongoing growth and the success of the last 40 years, is entirely due to the strongly held commitment we nurture at Midas to deliver industryleading customer service, as well as exceptional performance on every project we manage.

“We have seen our vision to deliver leading customer service succeed as we continue to record customer satisfaction scores of over 83 per cent – well above industry average – but this success has also been evident in the increasing number of contract wins resulting from repeat business, as clients return to us time and again; we are very proud that more than 70 per cent of contracts secured in the last year arose from repeat clients.

“This focus on ensuring our clients are happy and choose to return to us for future projects has enabled Midas to ride out the tough economic climate during the recession, and continues to ensure the group enjoys a strong financial position as we move forward.”

Midas has expanded its regional office, with bases in many locations, including Exeter, Bristol, Southampton and Newport, and is leading on major construction projects to shape the skyline across the region, including the recently opened £6m Waitrose Truro store, a highly anticipated new John Lewis store for Cheltenham, a £20m student accommodation development for Cardiff, and the £25m redevelopment of the former Bristol Post Print building into student flats.

Midas was crowned Construction Firm of the Year last autumn at the South West Property Awards, with the prestigious awards highlighting projects delivered in Bristol, Exeter and Plymouth as being of exceptional merit.

Three recent landmark projects built by Midas were also singled out at the annual RICS

Awards South West, showcasing the most inspirational regional initiatives and developments.

The community benefit category was awarded to the widely acclaimed Genesis Building created in Plymouth for the Millfields Trust, with Midas praised for its collaborative and community focused approach to the pivotal development to provide an urban hub for the Stonehouse area of the city.

The Genesis building was also named Building of the Year 2015 in December by the Building Forum for Devon and Cor nwall.

The RICS awarded its Infrastructure Award to the Pendennis Masterplan Redevelopment in Falmouth after Midas undertook a major renovation of Pendennis Shipyard estate with world-class new facilities created.

And the RICS Regeneration Award went to the landmark Twerton Mill student accommodation development in Bath, where Midas transformed a former industrial mill into modern student accommodation, relieving strain on affordable rental property

in the city and restoring a historical landmark site into use.

This prominent £16.6m development opened in October 2015.

Other key projects delivered

by Midas and unveiled in the last 12 months in the Bristol and Somerset areas included the multi-award winning Filwood Green Business Park, the most environmentally friendly commercial building in the West of England; a £7.3m pro-

‘There are exciting times ahead, and we continue to expand’ Steve Hindley, Midas chairman ject to develop Narrow Quay House on Bristol’s historic harbour-side for Veale Wasborough Visards solicitors, and Beacon House, a £12m redevelopment of a Grade II-listed building into a modern facility for the University of Bristol featuring a study centre, reception and cafe, which opened to students and the public in April.

In Cardiff, Midas began

Congratulations to all of our many clients in the Top 150

work last autumn on a £11m student accommodation project and has just won a contract to deliver a second major scheme for the city, creating a £20m, 355-bed student accommodation facility this year.

Midas Construction delighted Exeter Cricket Club in Devon after it completed the club’s new pavilion in January, protecting the future of the club, with the two-storey pavilion built as part of a major £8m student housing development which will complete shortly.

Other key Devon projects include The Point in Exmouth, where Midas teams have begun work to create 14 prime waterside apartments for developers Eagle One Homes.

In Plymouth, Midas is leading work at the South Yard regeneration, progressing development of the Oceansgate buildings to create flexible office and workshop space, and has submitted designs to planners ahead of leading building work on the first phase.

Major projects in Cornwall which are ongoing include the first Primark store for Cornwall being created at Truro’s Lemon Quay in a 50,000 square foot space, following on from the 21,000 sq ft Waitrose store built and fitted out by Midas Retail as part of a £6m development which featured Cornish stone and granite.

Work completed on the Marine Renewable Business Park in Hayle, part of a £24m regeneration of Hayle harbour by the European Regional Development Fund, Cornwall Council and the Government, and Midas also completed on a £5.5million state of art building for the University of Exeter, building its pioneering new Science and Engineering Research Support Facility (SERSF) at the Penryn campus in Cornwall.

Steve Hindley CBE, chairman of Midas Group, led a management buy-out of the company in 1998, and believes the future for the firm after 40 years of success now lies in innovation and expansion.

He added: “It has been a strong and successful year for Midas as we mark 40 years in business.

“There are exciting times ahead, and we continue to expand into new geographical areas whilst nurturing longterm relationships, especially in our stronghold across the South West.”

Other major achievements during 2015-16 for Midas included being named One to Watch by Best Companies.

40 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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Princess Yachts

Yacht builder is producing a vessel a day Princess Yachts was forced to restructure by challenges in the global market place, but as William Telford , found out, it is now back on an even keel Luxury yacht builder Princess Yachts is producing a vessel a day as it recovers from the global upheaval which caused it to shed 172 jobs in the first half of 2016.

The Stonehouse-headquarted firm had initially feared it would have to shed 350 workers as it restructured in light of huge challenges in its global market place.

The manufacturer, which has sites across Plymouth, called a meeting with more than 2,000 staff in and unions in January and said jobs would be going across the company including in back office and in its development and production divisions.

The firm, which marked 50 years in business in 2015, said the redundancies were “regrettable” but part of a strategic plan to improve productivity.

The company stressed its underlying business was strong, that it was not pulling out of Plymouth, remains a major employer retaining 2,000 people, and even expects to grow in 2016.

Nevertheless, the firm said the yacht industry had faced a set of “unprecedented challenges” which had led to the firm suffering a £11.3 million loss in 2014.

Factors hitting the exportheavy industry include unfavourable euro/sterling exchange rates, recession in target markets, political upheaval in the Middle East and Russia, a slowdown in the Chinese economy, and even the 2014 storms which battered the South West.

In December 2015, Northamptonshire-based competitor Fairline Boats went into administration after what Princess Yachts described as a “gruelling year for Britain’s yacht-building industry in 2014/15”, which saw other manufacturers suffer factory closures, redundancies and insolvency.

However, Princess Yachts stressed its core business was sound, with a strong order book and that it has pumped “multi-millions” of pounds into developing three new M Class yachts, of which it has already sold a “significant” number.

Indeed, Princess Yachts’ management said the development of these boats had required an increase in the number of workers, some of whom are now not needed as the boats enter their “running phase”.

BE PART OF IT

Pretty much everything on a Princess Yachts vessel is made in Plymouth, says chairman Antony Sheriff The company also stressed it had “weathered” the recent global turmoil, and indeed the recession from 2008, maintained high staff numbers, and had posted a profit of £4.8 million in 2013 and recorded turnover of £239.5 million in 2014.

It said it is looking at implementing a range of long-term strategic measures designed to steer the business securely into the future.

With six new models across the M Class, S Class, V Class and Flybridge yacht ranges taking the company into new markets and sectors, and strong order books after good performances at the Cannes, Southampton and Fort Lauderdale boat shows, Princess Yachts said it had entered 2016 with “assurance and optimism”.

It stressed there would be no loss of capacity and an ongoing investment programme will see its range develop further, and new initiatives secure greater market share and

brand recognition. The firm would strive to secure “a bigger share of a smaller market” and challengers, its main competitors being Britain’s Sunseeker and the Italian firms Ferretti and Azimut Benetti.

In January, Swiss-born, American-Italian former managing director of McLaren Automotive Antony Sheriff became Princess Yachts’ new chair man.

He said: “We have a solid order book and a very broad and complex product line and are trying to find other ways to maintain that very strong product line and simplify what we do internally. But we are definitely in an upswing and are very busy, we are churning out one boat a day.

“Some are 39ft sports boats, some are 40m super yachts and quite different. We build a broad range.

“We are very strong in smaller boats and building strength in bigger vessels.

“We have a base of custom-

ers who started buying smaller boats and worked their way up the range, coming out at super yachts. There’s a loyalty.”

Mr Sheriff said Princess Yachts is experiencing “solid growth” in the USA and the European market is growing.

“Currently Europe is the biggest market, USA is

‘We are definitely in an upswing and are very busy’ Princess Yachts chair Antony Sheriff second,” he said. “But we sell all over the world: the Middle East, South East Asia, Latin America, Scandinavia.”

He said this worldwide reach enabled the firm to offset shifts in the global economy, which has seen turmoil in areas such as Russia and the Middle East.

“Some markets will come back,” he said.

JOHN ALLEN

Mr Sheriff stressed the commitment to the finest British materials and peerless craftsmanship will always set Princess Yachts apart.

He explained a huge part of that is due to the firm’s location in Plymouth. He said the company is unique in that it constructs every boat from scratch in the city.

This gives Princess Yachts control over the quality as it eschews importation of inferior components.

“Pretty much everything on this boat is made here in Plymouth,” he said, standing on board an S65 vessel in King Point Marina. “Jour nalists from all over the UK, Europe and South America have been amazed at the detail of the work we do.

“It’s unique among our competitors and testament to our workforce. And that level of thought and detail is unique because we do everything ourselves.

“I went around the boat shows as the new kid in town

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and thought the level of finish and quality was top notch.”

Mr Sheriff stressed the use of skilled labour was vital to the development of the boats and said: “One of our challenges is to keep these skills in the area.”

He also stressed the USP of Princess Yachts extended to “making proper boats”, by which he explained: “Out seakeeping is fantastic. They are manoeuvrable boats that can handle all sea conditions.

“There is quality and elegance, but out boats are not flashy, there is understated elegance. And they are not dull but contemporary and won’t go out of date.

“And the other part is how we take care of customers, the level of service we provide. A beautiful boat that can’t be repaired, or the after sales are poor, will see customers leave in droves.

“If you can offer a first class product with fantastic after sales you will never lose customers.”

elearning@cityplym.ac.uk 01752 305026

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WESTERN MORNING NEWS THURSDAY JULY 7 2016 41

Riverford

Ethos never compromised despite rapid organic growth

Riverford managing director Julia Collins with new branded plastic milk containers RICHARD AUSTIN

BE PART OF IT

Despite growing from a oneman band to an award-winning organic delivery company, South Devon-based Riverford has never been one to try and cut corners during its business journey.

Founded in 1986 by Guy Watson, who started the ball rolling by delivering vegetables to a small group of friends in the area surrounding Buckfastleigh, Riverford was hailed as one of the pioneers of organic vegetable box schemes when it was first set up in 1993.

Getting its namesake from the Watson family farm in Devon, Riverford is at the heart of the operation which now delivers organic vegetable boxes and meat to more than 47,000 homes a week across England and South Wales.

With a turnover around the

Athwenna Irons analyses the business journey of an awardwinning organic delivery company £50 million mark, the company has enjoyed another strong year of business, as they ride the wave of changing consumer habits which has seen increasing popularity for organic produce and a greater desire for food traceability.

Riverford’s ethos in the way it does business has been one of the company’s biggest achievements, believes founder and owner Mr Watson, with the farm the first in the country to open to the public back in the 1970s. “Despite our growth, our ethos for the way we do business has never been compromised,” he explains.

HEALTH AND SAFETY SHORT COURSES

“We support many smallscale family farmers and producers across the country and give them the security of knowing that their vegetables, fruit and meat has a place in one of our boxes before it has even grown – something farmers who grow for supermarkets rarely have.”

He continues: “We work with farmers we know and trust in the long run and have agreed prices which don’t fluctuate depending on the market, so they can invest in their business and are rewarded fairly for the organic produce they grow for us.”

This clearly successful ethos achieved national recognition when the company won The Observer’s ethical product of the decade award last year.

“We may be a large business, but we don’t cut corners and

A range of first aid, health and safety, and manual handling courses to provide employees with the skills and knowledge required to work effectively and with confidence

still maintain our original company ethos almost thirty years down the line, to look after everything from the land, to our growers, customers and the environment,” said Mr Watson.

In recent years the company has expanded into a number of other enterprises, including a dairy herd whose milk goes on to produce award-winning cream and yoghurts, a farm shop, kitchen and bakery, meat box business and Field Kitchen restaurant.

Around 430 staff are employed across Riverford’s four sister farms, which includes the original farm in Devon as well as farms in Hampshire, Cambridgeshire and Yorkshire.

Staff numbers do tend to fluctuate during the various growing and harvest seasons.

Book now: 01752 305026 employers@cityplym.ac.uk

42 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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Sparex

Global spares network keeps part specialist on the move Despite the recession in the farming industry agricultural machinery supplier Sparex is still expanding with a focused business vision. Olivier Vergnault finds out more It has been a good but tough trading year for agricultural machinery parts specialist Sparex.

The Exeter firm, which in 2015 celebrated its 50th anniversary is heavily dependent on the farming sector’s success for its own growth.

But with British farming in crisis Sparex has seen a drop in the sale of non-essentials with farmers up and down the country cutting back on the frills to concentrate on the parts they really need to replace.

Sparex managing director Jeremy Burgess said: “We’ve still been growing but not as fast as we would have liked. I’m proud of the fact that we’re still growing despite the recession.”

The company, which is located a stone’s from Exeter Airport and employs 500 staff globally including 230 in the UK, has managed to increase its presence to 124 countries.

While British farm incomes have dropped by 29%, the largest decline for many years, the UK and Ireland remain Sparex’s number one market with the US, Germany and France in second, third and fourth positions.

“We expected to have a Brazilian branch this year but we’ve had to put these plans on hold for now because the economy is not great over there,” said Mr Burgess.

Even Germany, one of Sparex’ main markets has been tough. It has slowed down in places like France but has boomed in others like Italy, Asia or Africa, giving the firm a healthy 10% growth rate over the past 12 months.

The Sparex name derives from Spares Exeter and was founded in 1965 by Malcolm Brook, a prominent businessman behind other Westcountry firms such as Stovax and Gazco.

The company now has more than 20,000 customers worldwide. The group’s turnover is

expected to exceed £70 million in 2016 for the first time in its 51-year history The firm is made up of 18 companies across the world and only sells to stockists rather than directly to farmers.

But while receiving parts from 900 suppliers from 90 countries, the company also has a manufacturing subsidiary – Sparex Engineering Company (Spenco). Spenco employs about 40 staff and manufactures parts for Sparex and other clients.

Mr Burgess said: “You can sell to retailers or to farmers directly but not both.

“If you want to sell volume you have to get your products into retailers but with the growth of e-commerce and people buying online we facilitate our trade customers to do that too.

“If we started to sell directly to farmers we would undermine some of our biggest customers. In the long run it would not make much business sense.”

Set up in 1976 to manufacture parts that could not be obtained on the open market at the right quality level, Spenco is about a mile from the main branch near the airport and is a world class manufacturing unit making precision parts for tractors and farm machinery.

Spenco supplies Sparex but also has its own customer base including a number of Global OEM tractor manufacturers.

More than 90% of Spenco production is exported and it has even started supplying parts to a new tractor production line in China.

Mr Burgess said that while selling some 55,000 items around the world is the crux of Sparex’ business, adding value to customers remains a key part of the business model.

He said: “We sell our own branded items to trade customers but we are also able to apply a customer’s own brand to products before despatch.

This is for customers like Mole Valley Farmers for instance.

We add value to their business by doing this.”

“Sixty per cent of our orders now come in online and we aim to deliver the next day in the UK to anyone who orders by

Manufacturing precision parts at Spenco, a subsidiary of Sparex 5pm. Given our South West location, connectivity is an ongoing theme for us.”

“Having a good roads network is critical for us. We offer a similar service in other parts of the world like Australia for instance where we have four warehouses to allow the same service level. “ “This year we had our first major order from Tanzania.

Africa is a sector of growth for us.”

Sparex has about $42m worth of stock at 25 warehouses around the world. So managing stock so parts reach customers in good time is essential. Sparex’s delivery promise that anything ordered by 5pm will be delivered the following day has its challenges.

Mr Burgess said: “Our

biggest challenge is logistics.

Trying to second guess the right part in the right place at the right time. We’re trying to predict the unpredictable elements of the seasons. Is it going to be a wet summer and harvest or a dry one as it will have a different impact on wear and tear of farming machinery and parts.”

The company has always put great value on recruiting the right people and training up the next generation of technicians and engineers.

Sparex invested more than £1m in a state-of-the-art technical centre at its Exeter HQ. Mr Burgess, a chartered engineer by training who worked for Massey Ferguson, the tractor builder, for 22 years, said there was a global shortage of highly skilled staff especially

in his field. This is why he joined a local school adviser programme to help mentor young people in Exeter schools and to help local schools develop a better private sector link up strategy.

He said: “Academically young people are fine. But it’s the awareness of the real world and the business world that they are short on. By mentoring in local schools I can hopefully help change their perception of the business and industry world so they are better aware of its challenges and rewards.”

We have very good relationships with Bicton College, Exeter College and now Exeter University. We have two apprentices at Spenco and will have our first apprentices working at Sparex this year.

Our clients’ success is how we measure our own

“We continue to explore opportunities with the university to offer projects to their engineering students and work together on global logistics studies.”

Looking ahead, Sparex’s challenges will be to maintain growth despite the ongoing global recession in the farming sector.

Mr Burgess believes the company will continue to expand its Africa, Middle East and South American markets with bigger orders coming from these parts of the world.

He also looks forward to trade sanctions against Iran being fully lifted so Sparex, which is part of a larger American conglomerate, can trade there. But that will depend on politics and the next American president.

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WESTERN MORNING NEWS THURSDAY JULY 7 2016 43

Sponsor: City College Plymouth

College centre stage in raising the profile of apprenticeships Principal and chief executive of City College Plymouth, Phil Davies , highlights the importance of raising the profile of apprenticeships with young people and where businesses can turn for support and information The changes in legislation and funding which have accompanied the Government’s target of three million new apprenticeships by 2020, mean that further education colleges have taken centre stage in the national discussion on skills shortages in the UK. As a long-term advocate for the value apprenticeships can offer young people, it was with great enthusiasm that I welcomed the Education Secretary Nicky Morgan’s call to end the “outdated snobbery” against apprenticeships and other professional, technical and vocational education routes.

Speaking earlier this year in support of legislation which is designed to end the perception that non-academic routes are

‘We want to level the playing field [for young people]’ Education Secretary Nicky Morgan ‘second best’, Ms Morgan said: “As part of our commitment to extend opportunity to all young people, we want to level the playing field – making sure they are aware of all the options open to them and are able to make the right choice for them.”

Changing the law

The legislation will mean that state schools, including academies, will be required by law to collaborate with colleges, university technical colleges and other training providers to ensure that young people are aware of all the options – including apprenticeships from entry pre-apprenticeship routes through to degree-level.

This new development comes amid growing concern within government, which echoes the views of the further education sector that some schools are failing to present technical and professional op-

BE PART OF IT

tions on an equal footing to university.

In fact, a recent study by the Sutton Trust, an education think-tank, found that 65% of teachers would not advise a pupil with the predicted grades for university to pursue an apprenticeship.

Although we have good relationships with schools across the region, this is an issue that the college has long been aware of.

Indeed, many of our employer partners in the city have raised their own concerns on this subject at our employer advisory boards and business supper clubs.

Apprenticeships provide opportunity, have a positive impact on our economy and more young people need to be made aware of their value; therefore, I am delighted to see this recognised at the national level.

Funding the future

From next April, the way the Government funds apprenticeships in England will change.

Some employers will be required to contribute to a new “apprenticeship levy”, and there will also be changes to the funding of apprenticeship training for all employers.

With so many businesses in Plymouth and the wider area currently employing apprentices, this change could have a significant effect on the local business community.

Through our dedicated work-based learning team, the college has a national reputation for supporting employers with the apprenticeship process to the benefit of both businesses and young people in the region.

Our commitment to this was recognised by both Ofsted and the Association of Colleges who presented the College with the first ever Beacon Award for the promotion and delivery of successful apprenticeships earlier this year.

Furthermore, the college currently ranks in the top ten General Further Education Colleges in the UK for apprenticeship achievement.

The shifting focus towards high-quality technical and professional education will mean closer working relationships with businesses and colleges.

Our award-winning team will be there to guide employ-

ers through the funding reforms and the new apprenticeship levy every step of the way, giving them the confidence to employ young people and bring benefit to their business.

Highlighting the value of apprenticeships will, I believe, be welcomed by many forwardthinking employers in the region.

A greater uptake in apprenticeships means a more secure future for our key growth industries where high-level technical skills are so sought after by our prosperous marine, automotive and manufacturing businesses.

The simple fact is that apprenticeships provide opportunity, have a positive impact on our economy and it is only through close partnership working with employers that we will be able to realise their full potential for both young people and businesses in the Westcountry.

‘A greater uptake in apprenticeships means a more secure future for our key growth industries’ A close partnership working with employers is needed to realise the full potential for both young people and businesses in the region

PERFORMANCE MANAGEMENT WORKSHOP Wednesday 3 August, 3.00pm - 6.00pm | £59 per person

Book now: 01752 305026 employers@cityplym.ac.uk onlinestore.cityplym.ac.uk

44 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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Sponsors

Leading in the digital age

BY VICKY MOSS-CRUMP Cosmic operations manager Business leaders and senior managers across the South West are becoming increasingly aware of the need to hone their digital skills for the future.

Not only is this imperative if businesses are to continue to grow and succeed, it will help to prepare them for future waves of digital innovation from the growing global marketplace.

It does not matter which sector or industry your business is in, digital penetrates each and every workplace, service and organisation. But is your business ready?

Cosmic is a Honiton-based training consultancy striving to help both businesses and communities understand the importance and benefits of today’s modern technology.

We are constantly doing our bit to stay ahead of the game and help other businesses get

to grips with the challenges ahead in a world increasingly driven by digital technology.

There is a clear need for change and businesses must learn to adapt to new ways of working in order to survive.

The Cosmic team has been looking at how business leaders in the region can respond effectively to the challenges ahead and arm themselves with the new skills and strategic understanding needed.

As a result, a White Paper on Digital Leadership has been devise, and you can access a copy by registering your details here: www.cosmic.org.uk/leaders Still unsure whether you need to act? Consider these facts: ■ By 2020 we are expecting the UK to reach internet saturation point (January 2016 = around 85%).

■ There are 38 million people actively using social media in the UK – that is 59% of the population.

■ 33 million (51%) are accessing social media via their mobile.

■ 77% of people have purchased a product or service online in the past 30 days.

■ A quarter of businesses will lose market share due to digital incompetence by 2017.

■ Failure to respond to digital will see major companies fall; remember Kodak and Blockbuster?

■ 80% of data today is unstructured and largely invisible to computers, yet data production is anticipated to be 44 times higher in 2020 than it was in 2009.

■ Cloud storage for business

data is becoming standard, while cyber security and risks of data loss are becoming a critical issue for businesses.

■ Hardware will continue to get smaller, faster and more powerful.

At Cosmic we believe our leaders of the future will be collaborators who are capable of putting together teams who can adapt and accept change.

We do this by bringing people with expertise alongside those representing the views and experiences of customers and develop a business strategy, which feeds from data-driven insights and intelligence.

These leaders will be change-makers and changeagents – people who know how to embrace ideas, test them, fail and move on to find more success ahead.

As we develop our research into digital leadership further, we are keen to hear from business leaders across the South West. To find out more, email vicky@cosmic.org.uk

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WESTERN MORNING NEWS THURSDAY JULY 7 2016 45

St Austell Brewery

Ambitious Westcountry independent brewer tops off yet another fine year Award-winning St Austell Brewery is contunuing to rake in the accodales for its fine ales, and now British Airway is taking its product on flights around the world. Tom Cowle finds out what it is planning next St Austell Brewery is flying high after a great year for the one of the South West’s most successful independent companies, and one of the oldest and best-established breweries in Cornwall.

Not only was St Austell Brewery named UK Regional Brewer of the Year for the fourth year running, it has also been making waves with flagship ale, Tribute, which has become the official ale of one of the most recognisable airlines in the world.

The company, which owns 170 pubs and hotels across the South West, as well as producing a portfolio of award-winning beers, has once again announced increased turnover.

This rounds off a successful year in which it picked up yet more honours from the industry’s highest awards organisations and brewed a record breaking 100,000 barrels (28.8 million pints) of beer.

St Austell Brewery is one of the largest private employers in Cornwall with a workforce of over 1,000, and is the region’s largest wholesaler of wines, spirits, minerals, lagers and beers, which are sold through more than 3,000 pubs, hotels, bars and restaurants in South West England.

St Austell Brewery continues to grow across its estate: this May, the company reported a 7.9% increase in annual turnover to £137.4 million, and a 7.6% increase in operating profit (before other items) totalling £13.5 million in the year to January 2, 2016.

James Staughton, chief executive of St Austell Brewery, said: “Looking ahead, we have the skills and ambition to pursue future opportunities as they arise and to achieve our five-year strategy of delivering great distinctive experiences through product and service excellence and innovation”.

St Austell invested £16.6 million during 2015 on capital expenditure, of which £8.6 million was on new acquisitions.

The Old Custom House at Padstow received a £500,000 refurbishment over the winter.

The renovation has expanded the pub by joining it with the former Pescadou Restaurant.

By bringing the two sites

Roger Ryman, head brewer at St Austell Brewery, with brewing team leader Rob Orton together the brewery has been able to create a new theatrestyle kitchen under the new name of the Cally Oyster Bar and Grill. In Fowey, the Havener’s Bar and Grill will open on July 18. Celebrity chef James Strawbridge will be the executive head chef at the new restaurant, which will offer a seafood-led menu in an informal, modern setting enjoying one of the best waterside locations in the region.

The company’s top three beer brands Tribute, Proper Job and Korev Cornish Lager, all experienced impressive sales growth nationally.

But it is Tribute Cornish Pale Ale that has been making the headlines in recent months. Tribute is now be available on board British Airways flights thanks to an historic deal for the Westcountry brewer. As part of the deal, St

Austell Brewery is producing a specially commissioned 330ml can of the 4.2% award-winning ale for the airline.

Mr Staughton said: “Tribute Cornish Pale Ale has experienced huge success over recent years, but this agreement truly marks it out as the beer of the moment. It is testament to the quality and flavour of our locally produced beer and also to the growing strength of the unique Cornish identity that Tribute was chosen as the only ale to be served on all British Airways flights.”

The ale was selected as part of a move to offer the airline’s customers a taste of premium regional brands from across the length and breadth of the UK. It will be available for all customers flying long-haul and for those in Club Europe on short-haul flights, as well as in British Airways’ network of

global lounges. Troy Warfield, British Airways’ director of customer experience, said: “We’re very proud to bring one of Britain’s premium regional beers to a wider audience so they can appreciate this perfectly balanced brew and enjoy a taste of one of the South West’s most popular brews.”

‘Tribute Cornish Pale Ale has experienced huge success’ James Staughton, chief executive Tribute has also landed a new ambassador for the next three years with the signing of one of rugby’s brightest young stars, Exeter Chiefs and England Rugby Union player Jack Nowell, who will be promoting

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Tribute as well as becoming a driving force behind the brewery’s charitable trust, which has raised almost £600,000 for local good causes. Nowell, from Newlyn, is an ambassador for the RNLI and through the trust he will work with the brewery to support both them and other local community charities across South West England and in communities served by the company.

Awards have come thick and fast for St Austell this year.

St Austell again scooped the prestigious UK Regional Brewer of the Year accolade at the 2016 Publicans’ Choice Awards. St Austell has now picked up the award for the fourth time consecutively since 2012.

As the only awards voted for entirely by pub licensees across the UK, the Publicans’ Choice Awards is highly re-

spected across the brewing trade, with publicans being asked to take into consideration branding, quality, support and customer demand before making their final decision on their champions.

The Samuel Jones craft ale smokehouse on Exeter Quay was again recognised for its innovative design and service.

Named Best New Site at the prestigious national Publican Awards, St Austell Brewery was praised by the judges for the work it had done to preserve the Victorian aesthetic of the 19th century former bonded warehouse on Commercial Road.

The Samuel Jones and the Port Gaverne Hotel in Cornwall were also named best in their county at this year’s National Pub & Bar Awards.

Rob and Lucy Brewer from the Rashleigh Arms in Charlestown were named the British Institute of Innkeeping’s Licensee of the Year. This was the first time that a St Austell Brewery pub has won this coveted award.

Not to be left out of the honors, the brewery has been named as the UK’s best performing pub company following a national survey of pub tenants.

The annual M&C Allegra (MCA) Tenant Track survey interviews more than 1,100 pub tenants and lessees across the country to gain a snapshot of the health of the sector. This year’s survey by the independent food and drink research agency saw St Austell come out top with high average pub sales, good ordering processes and the support it provides, with training and development among the drivers for its success.

The brewery’s relationships with its tenants was highlighted in the study, with the family-run business scoring 7.95 out of 10 by tenants asked to rate their pub company, the highest score in the survey.

2016 is already the year of surfing and events, with St Austell’s Korev Cornish Lager sponsoring a raft of music festivals across the region and continuing its successful partnership with Surfing GB. Korev also signed a new agreement with professional Cornish surfer Luke Dillon, who has become the best placed British surfer competing in World Surf League.

The brewery has also opened a new visitor centre and bar restaurant following extensive investment into its tours and visitor attraction.

46 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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Warrens Bakery

Innovation important to traditional baker Warrens Bakery has strong Cornish roots, but the traditional baker is diversifying and innovating to introduce its products to a global audience This year has confirmed that Warrens Bakery is not only the oldest Cornish pasty producer in the world, but the best as far as critics are concerned.

A spokesman for the company said: “This year our traditional medium steak Cornish pasty won a radio poll, four independent newspaper polls, the UK trade championship and the Eden World championship – it’s our best selling item.”

Warrens Bakery is a traditional outlet. Originally created in 1860 it now has two production sites and 50 stores throughout Cornwall, Devon and Somerset.

In addition to pasties it also makes a wide variety of other award-winning products, including artisan breads and fresh sandwiches, biscuits, muffins, tray bakes, saffron treats and scones.

Business is exciting across the portfolio and moving forward on a variety of fronts.

Warrens Bakery is now part of Provenance Brands Limited, which is currently being reorganised.

However, it’s not just baking that Warrens is excelling in. It also has Simply Cornish, its bakery trade supply business, The Great British Crisp Company, Cornish Sea Salt and The Cornish Seaweed Company.

Collectively, Warrens is taking the product range out to the globe, where it is increasingly seen as an ambassador for ‘New Cornwall’ on the world stage.

Warrens says: “We all love our traditional products, but through innovation we believe we can take so much more overseas, which is great for job creation in the Westcountry.”

In a climate where big names continue to fold, staff numbers continue to rise at Warrens – the number currently stands at 500 employees.

Turnover has also increased significantly in the past three years, with a forecast of a rise to £16.5 million in 2016-17, reinforcing the upward trend seen in recent years.

The business is profitable and raising its margins year on year.

Warrens explained: “We are growing across the board, but we have also diversified to take advantage of new markets and mitigate the impact of seasonality and economic fluctuations.

“Our retail arm is growing, both through expansion and also through the upside benefits of rebranding.”

A selection of bread at Warrens Bakery in Ivybridge – the company has two production sites and 50 stores throughout Cornwall, Devon and Somerset Major investments in 2016 have included the final phase of the retail bakery rebrand, acquiring and staffing a crisp business in Callington, which Warrens has rebranded and reflavoured in an innovative way.

“In the next 12 months, we hope to expand our Cornish bakery at St Just to allow for export-focused growth,” it explained.

“As an example of how we operate, another of our businesses, Cornish Sea Salt, is just quadrupling in scale, to take advantage of its year-onyear growth of 43%, largely driven by international expansion.”

The company is currently dominating the Westcountry, but there still remains a ques-

tion on the rest of the UK. They said: “We are regularly asked by visitors to open up in London and as far north as Edinburgh.

“As one of the top three craft bakeries in the UK, we aim to take our affordable luxuries national, but the rate of expansion is under review.

“It would be disappointing if our store numbers don’t rise from 51 shops to 75 in the next couple of years.

“We plan to infill around the Westcountry, as well as developing further east and north.”

Further afield than Britain, businesses have been torn in regards to their feelings on the outcome of the EU referendum, but for Warrens it is simple.

“Brexit is a distraction for

all, but we don’t allow it to impact our business day to day.

We will maximise the opportunity.

“Market share is difficult to address, but there is plenty of scope to do more.

‘We will grow by continuing to make the best products’ Warrens Bakery “ We have only just started to raise the flag and the response has been fantastic, so the next few years should be exciting as we take our story out properly.

“We will grow by continuing

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to make the best products, innovating, making our stores rich and colourful for locals and visitors – when someone buys a pasty, scone, artisan loaf or other item from Warrens Bakery, they are getting handcrafted, best in class at an affordable price, all made with passion and pride, for over 150 years.”

Warrens also takes an active role in supporting local charities on a regular basis. As well as individual stores being encouraged to raise money for local charity fundraisers, the bakery itself is also actively involved.

“A recent example of this was our involvement in the Royal Cornwall Agricultural Association and the Cornwall Food and Farming Group,”

Warrens said. “We held farm & country days; children got to come to the bakery and have a tour and bakery workshop.”

Warrens has always had a strong reputation due to the family touch which has been developed over the last 150 years.

The story of Warrens Bakery began in 1860 when Miss Harvey, daughter of the local St Just baker, met Master Warren, the farmer’s son. As romance blossomed, so did a new business.

Warrens Bakery is no longer family owned “but we retain links to the family, who still have a shareholding.

“We value the link as it is a central to the heritage of the business and a part of Westcountry tradition.”

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WESTERN MORNING NEWS THURSDAY JULY 7 2016 47

Brend Hotels Family-owned Brend Group has won national accolades for the quality of its hotels and stands by its philosophy to make each hotel the best it can be It has been a very successful year for the Brend Group, the family-run company that owns 11 luxury hotels in Devon and Cornwall plus two dealership garages in Barnstaple – Ford and Citroen.

In October last year, it won the prestigious national title AA Hotel Group of the Year – earning the judges’ praise for the quality of facilities and the dedication and enthusiasm of staff. Further awards followed, including the Family Business of the Year title presented at a glittering ceremony held in London in June that was decided by public vote.

It was Percy Brend’s entrepreneurial flair that sowed the seeds of business success back in the 1920s. Having married his teenage sweetheart Florence, he had started his career as a butcher’s boy in Barnstaple. Not many years later his keen eye for a good deal meant he was able to take

Special blend of hospitality at Brends on a sizeable shop of his own in the town’s famous Butcher’s Row. When war broke out, Florence ran it when Percy joined the Navy.

Post war, more opportunities presented themselves following the break-up of many of the West Country’s military camps and the Brends, with their strong work ethic, were quick to take advantage of them. While eldest son Richard learnt his trade as a master butcher and took over what had become a chain of butchers’ shops, Percy, always supported by Florence, began investing in property – and specifically hotels. Their son John and, several years later,

youngest son Peter became involved in this side of the business. In 1969, the family bought the Royal Hotel in Bideford; in 1970 the North Devon Motel (later renamed The Park Hotel) in Barnstaple; in 1971, the Royal & Fortescue Hotel in Barnstaple and, in 1975, The Devon Motel in Exeter. The Royal Duchy Hotel in Falmouth was the first purchase in Cornwall in 1977 and, in the same year, they bought the Saunton Sands Hotel in Braunton. Subsequent acquisitions were The Victoria Hotel in Sidmouth (1980), The Carlyon Bay Hotel and Golf Course (1982), The Belmont Hotel in Sidmouth (1987), The Barn-

Fiona Bruce presents the AA Hotel Group of the Year award to Brend Hotels

staple Hotel (1992) and The Imperial Hotel, Barnstaple, in 1999.

Today, four generations of the family are actively involved in running the company which has an annual turnover of £52,227 million and currently employs 1,108 staff.

Ongoing investment is considered key to continuing profitability. In 2015 £1.5 million was spent on upgrading facilities at The Devon Hotel in Exeter with 20 additional bedrooms. This year work has begun on an extensive programme to transform The

Park Hotel in Barnstaple into state-of-the-art accommodation.

“As a family company, our philosophy has always been to keep improving our hotels to their full potential,” said managing director John Brend.

“With this latest project, we will be taking that approach to a whole new level with some of the most ambitious development plans we have ever undertaken.

“We won’t be stopping there though. Our youngest family directors – Richard, Justin, Peter and Matthew – all have

ideas on the drawing board.”

Employee retention and training is cemented by a robust, inhouse apprenticeship programme.

“We believe apprenticeships are an important way of ‘growing your own’ staff and encouraging them to stay long-term,” said director Peter Brend Senior.

“Experience has demonstrated that they’re an excellent way of developing and enhancing skill levels and, having established our own apprenticeship academy last year, we now offer the very best level two and three training available in situ.”

With turnover up by more than £1.7 million on the previous year, business continues to be brisk. “Last year our bright stars were the Cornish hotels which had a really strong year,” said Peter Brend. “We believe that’s down to Cornwall being the in-place to go to thanks to having a clear unified brand and the profile-raising effect of programmes like Poldark, Doc Martin and several other TV one-offs.”

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Sponsor: Pavey Group The team at Pavey Group

Chartered insurance broker looking after range of interests and livelihoods in region Devon-based Pavey Group has achieved consistent growth and continues to be ambitious in its plans for the future...

Pavey Group are an independent chartered insurance broker and financial services firm, with offices in Torquay, Exeter and Holsworthy. Led by Graham Brown, managing director and a board of seven directors, the group has achieved consistent growth and continues to be ambitious in its plans for the future.

Working with thousands of businesses across the South West and beyond, from sole traders and partnerships to farming co-operative Mole Valley Farmers and the prestigious National Trust, Pavey Group is in the privileged position of looking after a range of interests and livelihoods. Last year, in recognition of exceptionally high standards and qualification success, Pavey

Group joined the top 5% of insurance brokers nationally by being awarded “chartered insurance broker” status, highlighting its professionalism, capability and commitment to the highest levels of expertise and service.

In January, the company, which incorporates Mole Insurance Services and employees 90 staff, announced a major expansion of its insurance service offered to customers of Mole Valley Farmers, by opening an office in Holsworthy as part of their growing working relationship.

Across all locations, Pavey Group offer a full suite of insurance services to include business and personal insurance and a national scheme for holiday let properties and holiday complexes, all underpinned by its in-house fully managed claims service. Clients can also benefit from the group’s financial services capabilities; providing financial advice and protection to businesses and private clients.

The financial services team are qualified to offer tailored advice on all aspects of personal financial planning and business protection, including group employee benefits, and with a particular focus on workplace pensions in recent years, helping clients to meet their auto-enrolment obligations.

Michele Parker, managing director of Pavey Group financial services, said: “The growth we have achieved over the last ten years has seen the financial services side of the business more than double. We work with some of the South West’s leading firms, and currently have in excess of £150 million of funds entrusted under our management.”

Already a Top 100 Independent Broker nationally, Pavey Group has a clear strategy for sustained growth, leading to the acquisition of R K Shipman in 2010 and in 2015 Buddens Westinsure, providing expansion opportunities at their Torquay and Exeter offices.

Mr Brown said: “Our approach is to be innovative, creating products, services and partnerships for specific markets, for example Mole Insurance Services and Cottagesure, a national scheme for holiday let properties. Previous acquisitions have worked well for us, enabling us to grow the business and expand our expertise;

‘At the heart of our values is to make sure we do the very best for every single one of our clients’ Geoff Gale, Pavey Group director we also continue to look for new acquisitions.

“A key project for our teams right now is to embed the Insurance Act 2015 within our business. We are currently working with our insurer partners to understand their posi-

Your business matters to you... ...your insurance matters to us.

tion and to help our clients understand their obligations under the Act, which comes into effective from August 12 2016.”

Geoff Gale, Pavey Group director and head of the Exeter office said: “At the heart of our values is to make sure we do the very best for every single one of our clients, providing an honest and professional approach. We deliver a personalised service, not anonymous call centres; we offer in-depth market expertise and great value, while putting real emphasis on having long term relationships with our clients, so they receive proactive support and advice.”

Barry Wilson, managing director of client Glendinning sought Pavey Group’s services after its previous insurance broker relocated.

“Pavey Group fitted our criteria as they offer national knowledge and experience at a regional level, backed by a credible team of professionals,” said Mr Wilson. “The team quickly

grasped the details of our business and values. Indeed, there are shared values between the two businesses that make for a solid and constructive relationship. Their claims handling means we can concentrate on our business in the knowledge that matters are being dealt with thoroughly.

“The financial services team complement the insurance services and enable our HR team to access employee benefit broking and account management giving an effective overall solution that adds value to Glendinning. Pavey Group is responsive, supportive, highly professional and knowledgeable and I would recommend their services without hesitation.”

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WESTERN MORNING NEWS THURSDAY JULY 7 2016 49

High tech sector

Cornwall now leading race to embrace a new hi-tech age Cornwall is refocusing its economy toward the hi-tech sector with ambitious plans to build a UK spaceport as an array of fast-growing firms break new ground in digital innovation.

Phil Goodwin reports From advances in mining to landmark global moments such as the first Telstar broadcast, the Westcountry has been at the cutting edge of technological change for centuries.

Now, ambitious modern-day plans to build a spaceport in Cornwall and locate one of the world’s most powerful computers in Devon have captured the hi-tech headlines.

While flagship projects command the attention, a crop of new and expanding companies working at the forefront of technological innovation are bringing the region’s economy into the 21st century.

Fast-growing firms are breaking new ground in healthcare, genetics, veterinary pathology, online travel booking, cyber security and the dark web.

Cor nwall’s cluster of digitalbased business enjoyed the second fastest growth in the country with a 153% leap in turnover over four years.

The landmark 2016 Government-funded Tech Nation report ranked growth in the digital economy around Truro, Redruth and Camborne, above London and second only to Southampton.

The sector, which grew 32% nationally between 2010 and 2014, is now worth £161 billion and creates jobs almost three times faster than traditional industries.

One of the Tech Nation authors, Belinda Waldock, sounded a ringing endorsement for hopes that data and communication might do for the countryside what the Industrial Revolution did for cities. A rural location has traditionally been seen as a weakness,” she said in the report. “Cornwall is dissolving that urban myth, driven by superfast connectivity, a pipeline for delivering tech skills and a strong collaborative community.”

Driving the success in the county are outfits such as software developers Headforwards, which ash grown to employ 60 staff in five years and recently announced it expects to grow to 250 over the next five.

Crowdfunder, Sullivan Cuff, Agile on the Beach and Bluefruit as well as Truro Penwith and Cornwall College are driving the success.

Sandra Rothwell, chief executive of the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP), said the county was beginning to reap the benefits of the superfast broadband programme.

“We are starting to see real results from the initial investment in broadband and skills,” she added.

“When a lot of these companies group together you get this cluster environment with lots of cross-working and joint bids for contracts.

“Cornwall may be peripheral and remote but one you have got digital connectivity you can have clients in Tokyo and right across the world.

“These are not just grand plans, they are happening right now.”

The Government has moved the goalposts in Britain’s space race.

While the grass roots is buzzing with activity, the flagship project to launch Cornwall on a global stage remains the plan to host the first spaceport.

The Aerohub at Newquay had been the front-runner in the race to get a £50 million investment to create a launch site for spaceships on the North Cornwall coast.

The Government hopes the space industry will be worth £40bn a year by 2030.

In May it emerged that it was now just one of six contenders – four from Scotland and one from Wales – hoping to be named as the UK’s gateway to the stars.

Its location – the Aerohub Enterprise Zone at Cornwall Airport – was extended to include Goonhilly Earth Station in April 1, another site to attract global interest.

The giant dishes on the Lizard – named Merlin, Guinevere, Tristan, and Isolde

Bluefruit director Paul Massey (right) with his Oxford Innovation business coach Alan Bartlett after characters in Arthurian legend – shot to fame on July 11, 1962 when they received the first ever trans-Atlantic satellite TV images, broadcast by Telstar.

Now the Earth Station is being transformed into a new space science centre and is fully operational as a satellite communications teleport.

The site demonstrated its worth and returned to the heart of the space story when the UK’s man-in-space and former Somerset test pilot Major Tim Peake chatted live with pupils at King’s School in Ottery St Mary just weeks before he returned to Earth.

Goonhilly has been relaying live broadcasts by the British astronaut from the International Space Station to UK schools, and is working with Nasa and the European Space Agency to upgrade one of its antennas to provide communications for future missions.

The sky-high ambitions in Cornwall are mirrored in Devon, where slots at Exeter Science Park are rapidly being snapped up.

The iconic new building which will house the Met Office’s giant new “weather brain” supercomputer is nearing completion and developers are breaking ground nearby.

Designed to resemble micro-

chips, the IT Hall and Collaboration Centre are visible from the M5 and will become a landmark for the region and its high-tech aspirations.

The £20 million scheme to house the £97m supercomputer at is just a short walk away across the distinctive blue pedestrian bridge from Met Office headquarters.

When operational the computer will perform more than 16,000 trillion calculations per second with 120,000 times more memory than a top-end smartphone.

The Cray XC40 machine alone is expected to deliver £2bn of socio-economic benefits to the UK. It could cement the UK’s position as a world leader in weather and climate prediction but this is not all.

One of the biggest growth areas in the high-tech sector is data analytics, so-called Big Data.

There is huge value for firms in crunching large amounts of data – monitoring online activity and consumer trends.

And to process huge swathes of binary data, colossal processing power such the Met Office machine is required.

Next door the supercomputer, the Exeter Science Park Centre – visited by the Prime Minister recently – is already

filling up. Cyber and Information Security specialist Dynamiq has opened its headquarters at the new building.

They join Rezcomm, a north Devon travel agency business which has re-invented itself as a specialist in online reservation technology and specialist industry software.

Torrance Diamond Diagnostic Services, a leading veterinary clinical pathology firm, have commissioned their own bespoke new ‘grow-on’

‘We are starting to see results from the initial investment’ Sandra Rothwell building at the park.

The 17,000 sq ft headquarters will include open plan pathology labs, bio-security labs, communal and lecture facilities.

Just a few miles west of the park, Exeter University is set to open its £52 million Living Systems Institute this autumn.

The centre will bring together scientists from a wide range of disciplines to pioneer new approaches to understanding diseases and how they can be

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better diagnosed.

Key to the success of the small-scale high-tech sector is the Government’s Broadband Delivery UK scheme, which aims to connect 95% of premises to superfast broadband by 2017.

In Cornwall, where a single council approached has been helped by EU funding, the project is on track.

However, in Devon and Somerset tenders for the £45m second phase contract faltered after a deal with BT collapsed, raising concern that roll-out of 24 megabits per second will be delayed.

Campaigner Graham Long has warned that remote areas were being left behind – a phenomenon he calls digital apartheid – and that small businesses in need of fast connections were deserting rural locations for towns.

But Connecting Devon and Somerset said in June that bids are soon to be invited.

There is hope that intervention by up-and-coming Oxfordshire telecoms outfit Gigaclear might provide 100% coverage in rural areas.

It recently began taking orders for upload and download speeds of up to 1,000mbps and is expected to bid for six contracts in the two counties soon.

50 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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Marine

All aboard to lure lucrative cruise market Getting cruise liners and their big spending passengers to the Westcountry is the objective of port operators in the South West.

Keith Rossiter reports Cruise liners remain the holy grail in the ambitions of Westcountry port operators this year.

Work in Millbay Docks, Plymouth, is aimed at luring the lucrative cruise ship market, while Teignmouth last year welcomed the arrival of its first cruise liner.

Plans to make Falmouth more attractive to cruise liners have moved on with an application by Falmouth Harbour Commissioners to the Marine Management Organisation to dredge a deeper channel into the port.

Traders and docks businesses believe the development – already 17 years on the drawing board – is vital to the area’s fortunes because it

would allow more and bigger cruise liners into port.

But some environmental campaigners and fishermen believe dredging would cause unacceptable damage to underwater habitats.

Falmouth port and the surrounding area is designated as a Special Area of Conservation and a proposed Special Protection Area for birds.

In May conservationists pledged to minutely scrutinise a document submitted by Falmouth Harbour Commissioners to the regulators, the Marine Management Organisation (MMO).

Falmouth Harbour is the third deepest natural harbour in the world, the deepest in Europe, and home to the largest ship-repair complex in the UK, with three large graving docks and extensive alongside deep water berthing providing capacity for vessels up to 100,000 tonnes.

Falmouth Docks and Engineering Company, part of the

A&P Group, well known for its ship repair work, had a record performance in 2015, and expects further growth this year with the expansion of its cargo operation.

The company transports Cor nwall’s waste out of the region and cuts the number of heavy freight vehicles on the roads. The dock also handles other vital cargoes for the regional economy including animal feed and stone exported from local quarries and imported for road infrastructure projects.

A&P has also been carrying out mobilisation works for Wave Hub, the wave energy testing facility off Hayle.

In Plymouth, designs for the first set of buildings for the city’s “Oceansgate” at South Yard in Devonport, have been submitted to planners. The Dockyard, once hidden behind stone walls, is to become a hub for marine industries as part of the Plymouth and South West Peninsula City Deal.

The World cruise ship opposite the National Maritime Museum at Falmouth

North Yard at Devonport continues to service the Royal Navy. Dockyard operator Babcock Marine saw profits for the year to March up 4% to £539.7 million on revenue up 8%.

At Appledore Shipyard in North Devon, Babcock is expected to deliver the last of

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three offshore patrol vessels for the Irish Navy in July. A fourth boat has since been ordered after the shipyard lost a bid to build one of the biggest polar research vessels in the world.

Associated British Ports says its two South West short

sea ports, Teignmouth and Plymouth, with their customers contribute £100 million a year to the UK economy and support more than 1,500 jobs in the region. The Port of Plymouth has the UK’s shortest and fastest ferry crossings to Brittany and northern Spain.

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WESTERN MORNING NEWS THURSDAY JULY 7 2016 51

Public sector

No more fat left to trim in squeeze on West’s public services Kate Langston looks at the effect on the region’s public sector of a seventh consecutive year of Government austerity measures As councils, hospitals and police forces endure their seventh year of Government austerity measures, the squeeze on the region’s public services continues.

The Government has set itself the target of making £3.5 billion of pubic sector savings by 2019-20, with all but defence, the NHS and education budgets open to cuts.

The result is a £12 million reduction in Devon and Cornwall council funding for the coming year, as well as realterm cuts to policing and retention of a 1% cap on public sector pay.

Coming on the back of six consecutive years of cuts, there is consensus among council leaders and local service providers that there is no more fat left to trim.

Councils in Devon and Cornwall are already at a disadvantage, due to historic underfunding in areas like health and education. But according to Devon County Council, by the time the current round of austerity measures comes to an end in 2019/20, a total of £250 million will have been cut from its budget.

“Devon does not receive average funding and there is a clear disparity between urban and rural funding,” said Cabinet members for finance, councillor John Clatworthy.

“That cannot be right or equitable and needs to be addressed because the cuts are

felt harder on authorities with less than average funding.”

Devon has decided to cut £3.5 million from the department covering highways and libraries. A further £3.3 million of savings will be found through its corporate services department.

Cornwall Council has had to make £6 million of savings this year, in addition to its longerterm target of £196 million.

Cabinet member for resources Adam Paynter said the council already has a “programme of efficiencies” in place, but will now “need to find more savings in the short term”.

Both councils have stressed they will protect spending on frontline services such as

‘Since 2009 we have delivered more than £58 million savings’ Ex-Devon & Cornwall PCC Tony Hogg health and social care. They have been aided in their efforts by the Government’s new social care precept, which allows local authorities to increase council tax by an extra 2% each year.

This will generate a further £4.7 million for services in Cornwall in 2016/17 alone. But alongside similar increases in the policing and parish precepts, it means local households are footing the bill for the chancellor’s austerity agenda.

The cuts for councils were set to be far worse, had it not been for a threatened rebellion

by Tory MPs. Under the draft local finance settlement out-

lined in December, Devon and Cornwall were down to lose a further combined £11 million.

After coming under pressure from its own party, the Government brought forward its plans to increase the rural service delivery grant. This gave it an additional £65 million to share between rural local authorities.

Lobbying by MPs and police and crime commissioners also saw the Government abandon plans to rush through police funding reforms. Former Devon and Cornwall PCC Tony Hogg warned the changes could mean cuts of up to £54 million if implemented alongside further planned reductions.

The revelation that the Home Office had used outdated figures to develop its new formula eventually led to reforms being postponed. The chancellor also backed down over plans to reduce the policing budget, but was criticised for claims that spending would be protected in real terms.

“That still left a reduction in grant income of 0.6%. This is a cut of around £1 million next year,” said Mr Hogg. “With additional increased costs, the shortfall after tax basechanges is closer to £1.8 million.

“Since 2009 we have delivered more than £58 million savings and an additional £13 million is still to be found over the next four years.”

The region’s hospitals still face extreme financial pressures, with the Royal Cornwall Health Trust recently announcing plans for a £10 million cut to the staff wage bill. This is part of wider efforts to make £50 million of savings.

The Navy’s flagship HMS Ocean, which is based in Plymouth, is due to be decommissioned in 2018 Unions predict up to 290 posts could be affected by the new decision, but the hospital said it was hoping to avoid redundancies.

The finances of the North East and West Devon CCG are still under consultation following the launch of the Government’s Success Regime. Hospitals in Plymouth, Exeter and North Devon have a combined deficit of £440 million.

The outlook for the South West’s other big employer, defence, is a mixed bag following

November’s strategic defence and spending review. The Government admitted that the Trident renewal programme is facing delays, and only eight of the proposed 13 Type 26 frigates will be built. The Navy’s flagship HMS Ocean, which is based in Plymouth, is also due to be decommissioned in 2018.

However, naval expert Iain Ballantyne said there “appeared to be good news” for the region, particularly in the form of a commitment to new “light flexible frigates”.

“These warships have been under consideration for some time, but there was no sign they would ever be ordered,” he said. “The crucial issue for Devonport is whether it will get the eight high-end Type 26 frigates or the less sophisticated ‘light flexible frigates.

“Another piece of good news for Devonport is the Prime Minister’s commitment to four new Trident Successor submarines as that will mean decades of refit work for the dockyard.”

Ongoing austerity driving public bodies to achieve better value for money

BY TIM BORTON Head of public sector services at Bishop Fleming It is getting easier for SMEs to compete for public sector contracts. The Government’s ongoing austerity is driving public bodies to achieve better value for money, creating outsourcing opportunities for private firms.

However, many public sector procurements are geared to framework agreements, which rely on a panel of preferred providers. We see that this is

now changing, as it was recognised as bad for the public purse, small businesses and the taxpayer.

Framework agreements were revamped last year to make it easier for SMEs to bid for tenders. There is also a requirement for authorities to advertise new work on Contract Finder, unless below certain limits, thus allowing private firms of all sizes to compete. Public contracts must now also ensure that undisputed invoices are paid within 30 days, assisting SME

cash flows. Overall, the public sector procurement process is becoming more transparent.

What is not so welcome is that from April 2017 individuals working for the public sector through their own companies will no longer be able to decide whether IR35 applies.

This responsibility will pass to the public sector engager, who is likely to assume the contractor is within IR35 and tax him/her accordingly.

This will lead to freelancers being discriminated against, as they will suffer “false em-

ployment” taxes and will come across as more expensive; engagers will look elsewhere for their staffing needs. Talented experts may decide to avoid the public sector altogether and keep control over their finances, which means the public sector loses their expertise.

On the positive side, a new Enterprise Act enables regulators to contribute to the Gover nment’s deregulation target of £10 billion of regulatory savings during the current Parliament. It is hoped that the Government will go still fur-

ther and reduce the wider regulatory burdens on business.

The Government’s continuing austerity programme has had an adverse effect on the income of charities. This, together with the National Living Wage pushing up charity staff costs and uncertainty over relief from business rates after they have been devolved, is adding to financial pressures of the third sector.

Budget cuts up to 2020 will inflict further austerity on the provision of adult social care, as the main grant from White-

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hall is phased out alongside business rates devolution. To soften the impact, a new 2% social care precept is being levied by councils, though there is concern that this will not be enough, as some have estimated the charge should be nearer to 10%.

In the meantime, councils are being slow to ensure that care providers pay their staff for travel time between clients.

Local authorities need to ensure such workers are being paid at least the national minimum wage.

52 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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Manufacturing

Tentative signs that industry will emerge THE South West’s manufacturers entered 2016 with trepidation as various geopolitical issues – described by Chancellor George Osborne as “a dangerous cocktail of new threats” – gave them cause for concer n.

Whether it was low oil prices, Russian sanctions, slowdown in emerging markets or the EU referendum, there was a lot on the horizon for the region’s factory bosses to have sleepless nights about.

Yet many were still expecting to grow in 2016.

A Plymouth Manufacturers’ Group survey, revealed in January 2016, showed more than half were confident of increasing headcount in the subsequent 12 months.

And an EEF survey at the same time showed that 44 per cent predicted more risks than opportunities in 2016, with just 23 per cent thinking the opportunities outweighed the risks.

Still, 55 per cent expected to hike productivity.

So, what happened during the subsequent six months leading up to the EU referendum?

The second quarterly EEF Manufacturing Outlook survey, released in June 2016, showed the sector’s slide into negative territory has come to a stop.

After hitting a low point at the end of 2015, industry is slowly turning a corner.

But, output and orders are still not in positive territory, while investment intentions have slipped slightly. The crawl back to growth is against a backdrop of uncertainty with the EU referendum just one factor in the mix.

In the South West, total orders surged into positive territory in the second quarter, although this swing looks set to be short lived, EEF said, with firms expecting them to flat line in Q3.

The region has a better story to tell on output, which a balance of firms seeing growth for the second quarter in a row

The crawl back to growth for the region’s manufacturers is set against a backdrop of uncertainty, as William Telford finds out

with expectations that this trend will continue into the second half of the year.

Manufacturers’ employment intentions in the region also picked up from the beginning of the year, but remained fairly muted.

Looking ahead to the second half of the year though, EEF said the improvement will be more noticeable with a net four per cent of firms expecting to be on the recruitment trail.

Investment intentions over the next 12 months, however, remain negative, albeit to a lesser extent than at the end of last year.

Across the UK, the story is one of a weaker than expected

‘Demand conditions seem to be heading in the right direction’ Jim Davison, EEF in South West performance. The second quarter of 2016 marked the fourth consecutive quarter in which a net balance of manufacturers saw output decline and persistent weakness, particularly in the domestic market, weighed on orders.

Ongoing effects of the cutback in oil and gas investment and the steel crisis, as well as possible uncertainty from the EU referendum weighed on the sector’s domestic prospects, while the persistently difficult world economy was not supporting exports either.

But, critically, the forward looking indicators were more positive for the second half of the year, although manufacturers appear to be working on the assumption factors holding back growth will continue to

wane.

Confidence about firm-level performance, as well as expectations that output will return to growth in the third quarter, provide some tentative signs

that manufacturing will emerge from the trough later in 2016.

However, companies’ caution about the future was still evident in the continued weak-

ness of investment plans, which remained at their lowest level since the end of 2009.

UK orders are expected to become positive in the second half of the year although the

weak world economy is expected to continue to drag on overseas sales growth.

Europe remained the market where most manufacturers reported positive demand fol-

Global economy becoming far more accessible for even the smallest of firms

BY NIGEL WARREN, Head of Bishop Fleming’s technology and manufacturing team The world is changing rapidly, with new technologies coming on stream allied to new ways of using existing ones. These developments are making the global economy far more accessible for even the smallest of firms.

New technologies and the business processes behind them can add significant value to companies in the South West, provided the opportun-

ities are grasped. Where such opportunities are ignored, businesses risk losing market share and give a competitive advantage to others. In essence, companies must adapt or die.

Businesses in the region have to review their culture and processes to determine how innovation can help them.

They need to look externally at how technology can give them better access to international markets.

Technology is disruptive; it forces change on firms and

makes them more visible to customers. What may currently be a good way to do business, may in future be redundant.

Executives of technology companies are at the forefront of change. They have to recognise transformation is happening and assess its impact.

This allows them to respond through the creation of new revenue streams, reduced costs and new business models. Technology can lead to greater productivity from less effort.

Cloud, mobile, social media – these are all fundamental trends that are reshaping the technology industry. Who knows what will be the next major disruption? What we do know is that the pace of technology disruption is likely to accelerate.

To remain successful, companies in the region need to grasp all forms of technology and apply them to their product development and business model strategies. This could result in growth to compete on scale, or downsizing to

compete on speed and flexibility.

Whatever the strategy is, to be successful it has to be aligned with the firm’s vision and resources. It should allow for a combination of organic growth and acquisition.

Although the run-up to the EU referendum has created uncertainty, ultimately whether we are in Europe or not does not detract from the fact that opportunities for SMEs are increasingly global.

A recent survey of South West SMEs by YouGov on

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behalf of TransferWise revealed that the vast majority of firms going international found their business became more profitable. Key markets were identified as Europe, USA and Asia in that order.

The survey also revealed that more than three quarters of those exporting would recommend it to their peers. The region does lag behind other parts of the UK in selling abroad, so this is a clarion call for more SME’s to consider becoming exporters and grab the global opportunities.

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WESTERN MORNING NEWS THURSDAY JULY 7 2016 53

blur Group

from trough later this year After hitting a low point at the end of 2015, the manufacturing industry is slowly turning a corner

lowed by North America and the Middle East.

The survey showed that sectoral performance continues to be extremely varied. Overall recruitment intentions turned

positive for the first time in three quarters, although this is concentrated in a few sectors.

However, in contrast, the balance for planned capital ex-

penditure dropped deeper into negative territory to -9 per cent.

For both employment and investment balances, small manufacturers were the most

subdued, perhaps due to their position in the supply chain amplifying any uncertainty associated with the EU referendum.

In response to the subdued end to 2015 and the slow first half of 2016, EEF revised its manufacturing growth forecast down from 0.6 per cent to 0.1 per cent.

However, a better second half of the year is expected to carry through to growth next year of 1.2 per cent. EEF’s GDP forecast remains unchanged at 1.9 per cent this year and 2.2 per cent in 2017. However, this was announced before the EU referendum result and the UK’s vote to leave the union.

Jim Davison, EEF’s South West region director, said: “Demand conditions at least seem to be heading in the right direction, but manufacturers’ low-key crawl back to growth is still being challenged by sluggish global growth and subdued investment at home.

“Some sectors continue to buck this trend, with chemicals and transport continuing to perform strongly. Furthermore, signs that the massive issues facing the mechanical and metals sectors are bottoming out bode rather better for growth in the second half of the year.

“These expectations will need to be realised before a bounce back in investment plans follows suit.

“While we’ve got some weaker readings in the domestic market and softer confidence levels amongst smaller companies, it’s difficult to unpick any referendum effect with any certainty – it’s just one factor in a mix of uncertainty.”

He said that based on these findings, he expected manufacturing to remain broadly flat in 2016 for the second year running.

But that was before the UK decided to Brexit from the EU.

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Blur focuses on creating streamlined approach With its global headquarters at Exeter Science Park, AIMlisted tech company blur Group has been successfully focusing on creating a more streamlined way for enterprises to create efficiency and increase profitability within their business.

The Global Enterprises Services Platform provides a single solution for the outsourced delivery of business services through its combined cloud software and managed services platform with Danone and Argos amongst its customers.

The firm’s online global marketplace offers everything from marketing and technology to professional services through its community of over 65,000 vetted service providers worldwide.

The platform is used by multi-nationals and medium to large enterprises, with some firms outsourcing the majority of their indirect procurement process to drive efficiencies and increase profitability, while others are using it for spot purchasing of specific services.

Private and public sector organisations use the platform for services including sourcing, shortlisting support, contract and project management, payment processing and reporting.

The company’s chief financial officer Tim Allen said the strategy to target larger enterprise customers is paying off.

“After renewing an annual contract with a recognised FTSE 250 company, we have reached an important milestone for us that proves that creating a hybrid of online sourcing and managed delivery can add significant value to enterprises,” he said.

“We’re part way through our journey in shifting the market’s perception of digitising procurement and delivery. We are making great progress and our relationships with key customers are getting deeper and broader.” blur Group is the world’s first enterprise services platform to include both cloudbased sourcing and managed services in a single solution.

Customers gain access to a global marketplace of vetted service providers with relevant technical expertise, which is otherwise unavailable inhouse.

Mr Allen says clients typically save 15-20% by using blur’s platform. The company’s project management and managed services offering “takes a lot of the hassle away from our customers, saving them costs in that way as well”.

The company’s project revenue in 2015 stood at $1.95 mil-

lion, with gross profit at $0.29 million, down on 2014, but in line with expectations as the transition process to large enterprise clients progressed.

The positive impact began to be felt late last year, with a 40% improvement in EBITDA in the final quarter, compared to quarter three.

Philip Letts, blur Group CEO, said: “The team at blur worked hard in 2015 to complete the transition to an enterprise-focused strategy. Now that our enterprise transition is complete, I remain convinced that our enterprise strategy is the right one for blur and its stakeholders.

“Acquiring repeating, loyal accounts is key to our future success. By maintaining high levels of delivery and focusing on helping our customers buy business services better, blur will continue on its path to profitability.

“Enterprise customers tell us that business leaders are becoming increasingly aware of the need to prioritise the control of unnecessary cost and risk in their unmanaged, indirect business services spend.

“Increasingly these enterprises are recognising that

‘Our relationships with key customers are getting deeper’ Blur chief financial officer Tim Allen blur’s unique combination of cloud software and managed services offers an efficient, digital and agile solution to drive new efficiencies in indirect spend. Our enterprise-focus continues to drive efficiencies which will lead to further improvements in cashflows.”

Last year saw the latest (blur 5.0) version of the platform successfully launched, incorporating online security, features and automation required for adoption within a large corporate environment.

Amongst its range of customers, blur Group is working with a number of organisations across the South West, and at the turn of the year launched Tech South West.

The initiative brings techminded organisations and individuals together throughout the region including Cornwall and the Isles of Scilly, Devon, Plymouth, Somerset, Dorset, Bournemouth, Bath, Bristol, Gloucestershire and Wiltshire.

Events have already been held in Exeter, Bristol and Cornwall, with more being planned for Somerset, Wiltshire and Bournemouth, ahead of the first Tech South West conference.

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Utilities

High profits catch eye of watchdogs and MPs While plans for Hinkley Point C are confirmed, water and energy suppliers have been coming under criticism from regulators and MPs, as Sarah Pitt reports With high profits reported by both water companies and the “big six” gas and electricity suppliers, regulators and MPs have over the past year been calling on them to share more of this largesse with customers.

Conservative MP Ian Liddell-Grainger appealed to the energy companies to show “more humanity” after a Competition and Markets Authority report revealed gas and electricity suppliers had been overcharging customers, particularly those on low incomes, for years. More competition in the market was called for, together with opening up options to switch tariffs.

“The ‘big six’ cannot keep going on taking the public for granted,” said Mr LiddellGrainger, MP for Bridgwater and West Somerset, last July.

“If they do, the Government has to step in. The cost of energy is far too high. It is still too easy for big companies to say ‘we’re putting up prices by 10%’. Ofgem needs to look much more closely at the energy companies’ monopoly position.”

There have also been signs that customers, including thousands in the Westcountry, are voting with their feet. In September, it emerged that many were deserting the “big six” – Scottish Power, British Gas, EDF, Eon, Npower and SSE – for smaller energy companies. Households could save as much as £300 by switching supplier, said the Competition and Markets Authority.

Meanwhile, EDF finally sealed a deal for the building of a new power station Hinkley C on the Somerset coast, with controversial Chinese investment brokered by the Government. The scheme is expected to cost £20 billion, and create 900 jobs directly in its 60-year lifetime.

It was the water companies’ turn to come in for scrutiny in October, when the Government spending watchdog criticised them for failing to pass

on an £800 million windfall to customers. This money, made over the past five years, has been yielded from lower than expected corporation tax and interest rates.

The study by the National Audit Office also revealed that prices had increased by 40% in real terms since the industry was privatised 20 years ago.

South West Water’s bills remain among the highest in the country, at an average of £495 per household.

However the company defended its position, saying it had passed on £28 million of this windfall to customers in the Westcountry by absorbing costs and freezing water bills.

The company, which supplies water and waste water services to 1.7 million people in Cornwall, Devon and parts of Somerset and Dorset, insisted it was giving customers good value for money, with the

‘The ‘big six’ cannot keep taking the public for granted’ Ian Liddell-Grainger MP average bill for the year 2016/ 17 lower than it was seven years ago.

In the past year it has spent £20 million upgrading the sewage treatment works at seven Westcountry beaches to meet tough new EU bathing standards introduced in April last year.

The company has also made strides with its apprenticeship programme, aimed at addressing a skills shortage in the water industry. It was named as a Top 100 Apprenticeship Employer by the Apprenticeship Service this year.

South West Water’s parent company Pennon Group, has just announced an operating profit of £261.8 million for 2015/16. This was an increase of more than 6% on the previous year for the company which also owns waste arm Viridor, based in Taunton.

Viridor’s rise in profits has been partly attributed to the roll-out of its five energy-fromwaste plants, including one in the region, in Exeter.

Bringing superfast fibre

An artist’s impression of how the £20bn Hinkley Point C station will look – built by EDF with Chinese investment brokered by the Government broadband to the region has continued to pose a big challenge to the telecommunications industry over the past year. BT suffered a setback last summer after it failed to secure the £35 million contract for the second stage of the super-fast broadband programme in Devon and Somerset.

Devon’s local authorities, which with the Government and BT run the project as Connecting Devon and Somerset, pulled the plug after deciding it was not confident that BT would meet the Government target of bringing super-fast broadband to 95% of the two counties by the end of 2017.

Delays blamed by BT on the technical challenges of bringing broadband to the hardest to

reach parts of the two counties.

“It’s a huge civil engineering task,” said a BT spokesman.

MPs, though, accused BT of “cherry picking” the easiest parts of the telecommunications network in Devon and Somerset. Broadband campaigner Graham Long, based at Upottery in the Blackdown Hills, one of those remote places where super-fast broadband has taken a long time to reach, called the project “a fiasco”. BT continues to work on phase one of the project, getting 90% of Devon and Somerset super-fast broadband access by the end of this year.

Among remote places which do now have a super-fast internet connection are Wookey Hole caves in the Mendips Hills in Somerset.

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Businesses in Cornwall and the Isles of Scilly are faring better on the super-fast broadband front, with 95% of properties, in theory, able to connect to the network. The project has been partly funded by the EU, support that is not available in Devon.

The islands, 28 miles off Land’s End, now have 4G coverage, set up by BT’s EE mobile arm. It means residents of the islands’ five inhabited islands will now be able to do business online more easily.

The islands’ access to superfast broadband was achieved with the pioneering rerouting of a section of the subsea cable which had linked Spain and the coast of Cornwall at Porthcur no.

In Plymouth, meanwhile,

the controversial energy-fromwaste plant run by German energy company EVV became fully operational in January.

Located in a densely populated area of the city, the combined-heat and power plant is more typically referred to by locals living right beside it as a giant incinerator. Concerns were raised in April about air quality close to the site, as well as noise and smell.

The plant will burn 245,000 tonnes of rubbish from Plymouth, Torbay and South Devon to generate electricity and steam, used to power and heat Devonport Naval Base nearby. An estimated 190,000 megawatt hours of electricity and 60,000 megawatt hours of steam will be produced each year.

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WESTERN MORNING NEWS THURSDAY JULY 7 2016 55

Retail

Trend for consumers to spend on leisure grows Catherine Barnes assesses the impact new retail development schemes will have on footfall in shops across the region Key retail development schemes announced for the Westcountry in the past 12 months reflect a growing trend for consumers to spend at their leisure.

Anticipation is growing over the proposed redevelopment of Plymouth’s bus station into a multi-million-pound retail and leisure zone and Cornwall Council planners voting in favour to extend to Kingsley Village at Fraddon – new shopping hubs in which cafes and entertainment are an integral part of the mix.

Cornwall Chamber of Commerce chief executive Kim Conchie said: “The internet and out-of-town shopping complexes are here to stay as are pop up farmers’ markets, farm shops, garden centres and roadside eateries which are all proliferating.

“Town centres need to reinvent themselves as multipurpose centres of dwelling places, daytime services like nurseries, financial services, health services and so on.”

Jess Golding, who was appointed Penzance’s Business Improvement District (BID) manager last year and is at the vanguard of a local drive to turnaround its fortune, said: “It is time for people to realise that the high street has changed, and shrunk by 20% to 30% with the only rise being in the restaurant sector.

“Food is fashionable, ladies no longer spend the weekend getting sore feet trawling the shops, they would rather drink a latte and eat a bagel.”

Penzance could barely have hoped for better in May when its Art Deco Jubilee lido reopened in a blaze of sunshine – and national media coverage – following a long and passionate community fundraising scheme to save it.

Now, the town’s BID, which won the Yes vote from retailers and businesses in March last year, is focused upon creating a similar buzz around its art galleries and restaurants.

“Yes, she might look a little worn around the edges, but that is nothing that can’t be sorted with time and effort,” said Ms Golding.

“The BID is settling in, and had a huge yes vote back in March 2015. The positivity within the town to make the difference is really noticeable.

You will always get people that aren’t positive, but isn’t that human nature…

“It is much easier to moan, than pick up a broom and help clean.”

An artist’s impression of the new Plymouth Coach Station at Mayflower Street In Dartmouth, however, the town’s BID district failed, after 83% of its 203 business owner members voted to close it down.

The BID’s directors said there had been a lack of support for the project which was launched in June 2014, while traders who voiced their dissent alleged the BID had failed to deliver on its business plan.

Plymouth, meanwhile, has hopes of maximising the draw of its own historic swimming pool.

In December, architects revealed blueprints to convert a brick alcove at Tinside Lido, on Plymouth Hoe, into a space that could be used by pop-up shops in the summertime.

Chris Dill, architectural technologist with Plymouth City Council, said: “The reopening of the Tinside Lido in 2005 has led to a rise in usage and vibrancy of the waterfront area, and we are looking to build on this momentum by bringing this area back in to broader public use.”

According to the Devon Chamber of Commerce’s latest Quarterly Economic Survey, the economy within Devon continues to grow, and is more

resilient than other areas of the country. “Plymouth, as the largest commercial centre in the region has seen a number of positive new announcements and introductions to the city centre retail landscape, with the Bretonside development approval, the new coach station under construction,” Devon Chamber chief executive George Cowcher told the Western Morning News.

And, he added, the muchvaunted opening of a new designer store, Flannels has brought some “extra pull” to the city centre’s retail offer.

Meanwhile, Plymouth’s huge city centre block containing the closed-down Derry’s department store could be turned into student flats and a budget hotel in a £50 million development.

London-based Thames Bank Property Company has exchanged contracts for the 224,536sq ft block, subject to receiving planning permission.

Thames Bank Property said the retail economy was not strong enough for the entire site to be given over to retail, but that there would also be ground-floor shopping and restaurant space created. It added

that five existing retail tenants, including Argos and Ryman outlets, would be welcome to stay in the redeveloped building.

“In terms of new developments many companies are benefiting from the upsurge in local construction activity and development taking place, resulting in a number of exciting projects for the region,” said Mr Cowcher.

‘It is much easier to moan, than pick up a broom to help clean’ Jess Golding, Penzance BID Work began to build Barnstaple’s first Asda in April, as part of the town’s Anchorwood Bank development south of the River Taw, which will also include 172 houses and a retail and leisure complex. Plans for the development got the go ahead in 2013.

Apartments schemes above shops can create a “safe and pleasant evening economy” for shops, cafes and restaurants, believes Mr Conchie.

In Cornwall, the scheme to

extend Kingsley Village shopping centre will see the demolition of a building that currently contains a variety of retailers to make way for a 10,000sq m development of five retail units.

However, in town centres, the issue of parking is still a headache for many high street businesses.

“The need of Cornwall Council to generate revenue from town centre car parking is at odds with the aim of regenerating traditional shops,” said Mr Conchie.

“But having said that, in towns where footfall can be generated by locals and tourists alike, high streets are doing fine.

“Falmouth continues to flourish with a combination of students and locals all year round and an increasing tourist market. Looe, Fowey, St Ives, Padstow, Lostwithiel and others have their own appeal.

“Helston, Redruth, Penzance continue to struggle against out of town superstores and are not on the obvious tourist trail.”

But in Penzance, the mood is positive, with its focus on creating a vibrant leisure and retail scene already making an

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impact according to Jess Golding.

“The first quarter of 2016 has seen some positive results with our footfall increasing by 3% and our vacancy rate dropping to 8.05%,” she said. “ Compare this to the national trend [vacancy rates and footfall figures were at +11.5% and -4.5% respectively] and we are bucking it.”

The liquidation of BHS, which collapsed into administration in April will leave gaps in Plymouth, Exeter, Torquay, Barnstaple and Truro’s major shopping thoroughfares.

But the internet plays a huge part in our future business landscape, with retailers expanding their reach way beyond the high street.

In Cornwall, super-fast broadband will continue to create a raft of online retailers who opt to base themselves in the county for lifestyle and image reasons, said Mr Conchie, who added: “Look, for example, at clothes, food and drink and outdoor living brands choosing to associate themselves with the clean and organic image that Cornwall can lend to their products and services.”

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Tourism Mixed bag for hotel sector in first half of year

BY WILL HANBURY head of Bishop Fleming’s hotels and tourism team The first five months of 2016 has been a mixed bag for the hotel sector. Some hoteliers are upbeat about the performance of their hotels in the first half of the year, and are forecasting a good summer. Others continue to struggle with attracting sufficient guests at a commercially viable tariff.

The EU referendum appears to be distracting holiday makers, and so summer bookings are being left to the last minute. It is also adding to concerns about the future availability of a skilled workforce. Without the required skilled staff, hotels will not be able to deliver the high standard of service that is required to remain competitive.

Living wage increases are eroding margins and occupying a significant amount of management time. The increase in employee costs, as the living wage gradually rises from £7.20 to £9, will further impact on profits and reduce the capacity of hoteliers to reinvest in their businesses. This will have a long-term impact on the quality of hotels.

When this is coupled with the 3% auto enrolment employer pension contribution, hoteliers are having to make some difficult decisions regarding staffing levels, maximising income generation and reviewing overhead costs.

Investing in integral features and fixtures and fittings will help improve the quality of the offering, and may receive a 100% tax deduction for the first £200,000 of eligible capital expenditure, but focus still has to remain on service.

Marketing of the Westcountry region continues to need clear focus and resource so that it can improve its competitiveness in the UK and international holiday markets.

Latest figures from the Office for National Statistics (ONS) show a 46% increase in visitors to the UK from China in 2015, and they spent £586 million. Other growth markets include not only the traditional markets of the US and Canada, but also Spain, Brazil and the UAE. The ONS figures show a 7% increase of inbound visits to the regions, with spending up by 4% to £7.5 billion overall. At a local level, holiday destinations continue to grapple with how to promote and fund destination marketing.

Having a clear strategy at both local and regional level is key to competing with other regions and destinations to ensure the region grabs a significant slice of the tourism market.

Development of year-round visitor ‘season’ boosts sector Martin Freeman reports on a buoyant tourism sector, which is boosted by good weather and a continuing trend towards yearround business Tourism businesses throughout the region are hoping that good things come in more than threes.

Last year was the third successive good summer, and there is optimism that the weather will be just as kind in 2016.

There was hardly wall-towall sunshine – August was too wet for the bucket-and-spade brigade and those who cater for them. But, overall, there is a feeling of optimism.

“In the past 12 months tourism in the South West has bounced back really, really well,” said Alistair Handyside, chairman of the South West Tourism Allowance.

“After the years that we were affected by the floods in Somerset and the closure of the railway line at Dawlish and the rest, the last year has been good right across just about the whole sector.

“Things are very buoyant.”

Malcolm Bell, chief executive of VisitCornwall, is a little more qualified in his assessment of how good the past 12 months have been.

He goes for a “good in parts” description as to how the tourism industry has fared west of the River Tamar, but is still generally upbeat.

“It’s been a curate’s egg of a year,” said Mr Bell.

“If every year was like last year, which wasn’t tremendous, we would be content. We would be more than satisfied.

“Hotels did pretty well as a sector and attractions had quite a good year because it rained in August and people wanted something to do.”

Other winners include those providing self-catering accommodation, who had “another good year”, he said.

Among those who did not do well were small bed-and-breakfast operators.

“The rise of [online marketplace] Airbnb and the sharing economy generally has created more [accommodation] stock but not necessarily more customers,” said Mr Bell. “It has

created a bit of an uneven playing field for the professional B and Bs.” The vagaries of the British weather were compounded this spring by an early Easter, which fell in March.

“We are always affected by where Easter and the May halfterm fall,” said Victoria Hatfield, who chairs the Devon Tourism Partnership. “The later they are, the more people we get as they tend to presume it is going to be better weather.”

So Easter in March and snow and sleet in places late into the following month – compared with the glorious summer-like April of 2015 – were reflected in disappointing tourism figures.

Visitor numbers in April this year were about 7% down in the region compared with the same month in 2015, according to a report for the South West Tourism Alliance.

Turnover was estimated to be about 6% down, according to the South West Research Company, which prepared the report.

Perhaps not surprisingly confidence in the early season was hardly rock solid: put at about six on a scale up to ten.

The “good in parts” theme continues with better news.

“Spring half term was almost in June and the weather was pretty good,” said Miss Hatfield, who is also tourism and economy manager for Exeter City Council.

“We did a phone-around of attractions and some had had their best figures ever – some who had been in business ten or 20 years,” she said. “Forward bookings remain positive.”

Visitor spending up about 2% over the last 12 months might not sound like a surge – but with other data pointing to a cooling of the economy as a whole, and with inflation continuing to be low, that represents respectable growth. The rise is an increase on an already big figure – £2.3 billion in Devon alone – reflecting how important tourism is to the South West.

When the sun does shine there is no doubting how good the region looks, which is why millions come here.

The TripAdvisor 2016 Trav-

eller’s Choice Awards named Torquay as England’s secondbest seaside destination. The Devon resort was also singled out as the sixth-best of all the destinations in the UK in a list dominated by cities, showing how tourism has evolved.

The social media ratings site named Woolacombe as the best beach in the UK. A Cornish quartet – Porthmeor and Porthminster in St Ives, Perranporth and Newquay’s Fistral – made it five Westcountry strands in the top ten.

The region’s reputation for having the best beaches in the UK was again reinforced by 16 Blue Flag awards, eight each in Devon and Cornwall. The international designation is for well-managed beaches with excellent water quality and environmental education programmes.

The South West also won 29 Seaside Awards, managed by Keep Britain Tidy.

Beauty is clearly subjective but no other region can match the variety of wonderful scenery that the South West offers, from glorious expanses

of sand to tiny, hidden coves and wide-open moorland just a few miles apart.

As for the man-made offer, the region continues to punch above its weight. The South West was again the big winner in the VisitEngland Tourism Excellence Awards 2016. Devon and Cornwall collected 21 of the 80 prizes available, covering gold, silver, bronze and highly commended.

That included an impressive haul of gold awards. Those top prizes went to Treworgey Cottages, near Looe (in the selfcatering category), Woodovis Park, Tavistock (holiday park or village), Trevose Harbour House, St Ives (bed and breakfast or guest accommodation), Railholiday, St Germans, South East Cornwall, (sustainable tourism) and Higher Wiscombe, Colyton, East Devon (dog-friendly business).

The Living Wage is an issue for many businesses, although the picture is certainly not as clear as “wages up, costs up, profits down” if the economy continues to stutter along.

“The visitor industry in

LeadingSouthWestPayrollBureau.

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Devon used to be quite seasonal, from February-October with some closing down outside those months,” said Miss Hatfield.

“Now more businesses are opening for the full 12 months.

Those businesses are investing in staff, in training, in the quality of their services. A number of businesses were quite public about saying they were [already] paying the Living Wage.

“Businesses are providing a good place to work and opportunity for full-time work. They want staff to work for them for a long time.”

Mr Bell also points to the continuing development of a year-round “season”. “Spas and activity breaks are doing well as a niche part of the market with some venues having as many people there at Christmas as in the summer,” he said.

A reduction in the tourist VAT rate to 5% continues to be a target for many in the sector.

Adam Fox-Edwards, whose family have run the Arundell Arms in Lifton for more than

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Meadfoot beach, Torquay – last August did not see wall-to-wall sunshine but the region’s tourism sector enjoyed a good summer ROSIE SPOONER

£2.2 million from partners in the public and private sectors.

This would position the Westcountry as “a must-see destination, generating an additional £60 million in additional visitor spending, creating up to 1,000 jobs”, said Mr Cameron.

The money would also be used to promote the region in the United States and encourage greater connectivity to the USA, he said.

One move many in the industry would like the Government to make would be to adopt a commonsense attitude to term-time holidays.

Parents can be fined up to £60 a day for taking children on a break during school time, unless there are exceptional circumstances. Those who fail to pay the school’s penalty can be prosecuted and could face a £2,500 fine and three months in prison, under rules brought in

by Michael Gove during his time as Education Secretary.

The “infamous Gove effect” has hit business, particularly in the spring, said Malcolm Bell. Hope came earlier this year when a parent on the Isle of Wight won his fight against a fine, the judge ruling that chil-

‘If every year was like last year we would be content’ Malcolm Bell, VisitCornwall

Largest Tourism & Leisure businesses in Devon and Cornwall 2014/15 Business Name Percy R Brend & Sons (Holdings) Limited St. Austell Brewery Company Limited Torquay Leisure Hotels Limited Eden Project Limited Manor House Hotel (Oakhampton) Limited John Fowler Holidays Limited David Hunt (North Devon) Limited Daish's Group Limited Red Hotels Limited The Seafood Restaurant (Padstow) Limited 50 years, is at the forefront of that campaign. He met David Cameron when the Prime Minister visited Cornwall last July and followed that encounter up with a letter to Downing Street warning of the potential damage an enforced rise in the hotel’s wage bill could do to his and other parts of the hospitality industry, and the benefits a VAT cut could bring.

Mr Cameron was in the South West to announce the setting up of a government task force to persuade more foreign visitors to venture out of

Turnover £m 52,277 125,354 12,198 18,044 15,437 20,463 10,216 12,128 9,478 15,292

London. Writing in the Western Morning News in March this year , he said it was shocking that “for all the money that is spent by international tourists in our country, half is spent in London.

“That means there are millions of visitors who come to Britain and never leave the M25; thousands who never get to experience places like the Eden Project or Fistral beach.”

The five-point plan announced last summer included: a better co-ordinated

Number of Employees 1,108 1,068 416 412 342 324 312 303 296 285 sector; driving and retaining talent to encourage growth; reforming regulation sensibly to drive competition and improve the tourism offer; forging innovative links between the transport and tourism sectors to help visitors travel outside of the capital, and delivering a world-class welcome at the international border.

There was the announcement of some money, too: £5 million from the Government in the South West Tourism Growth Fund, to be supported by an estimated

dren were allowed to be taken out of school during term-time for a holiday provided they had a good attendance record.

The Government is pushing for an appeal and urged head teachers to continue to issue fines. However in June this year it appeared that families were emboldened by the court case with a survey by a travel insurance company reporting that about half of parents were “more likely” or “likely” to take a term-time break after the court judgment.

“There should be talk-talk, not war-war from the Government,” said Mr Bell. “It is ridiculous to say that a parent is ruining their child’s education by taking them out of school for a week’s holiday.”

The uncertainties over the weather and term-time holidays have in the first part of the year been compounded by caution over the EU referendum.

“That added to the uncertainty, putting off investment and even putting off some visitors who were affected by the scaremongering spread by both the Leave and Remain camps as to what would happen to the economy after the result,” said Mr Bell.

“Business was still planning, but perhaps not acting on those plans and investing.”

Significant opportunity for forward thinkers

BY ANDREW BETTERIDGE Partner and head of corporate and commercial, Ashfords LLP The current state of the mergers and acquisitions (M&A) market involving UK companies has recently been highlighted in a report from the Office of National Statistics (ONS).

The ONS report finds there were 114 domestic and crossborder acquisitions and disposals with a value of £1 million or more during the first quarter of 2016. This represents a fall of 42% on the last quarter of 2015 and is 13% lower than the first quarter of 2015.

As the ONS commented: “Despite quarter-on-quarter volatility, the total number of M&A involving UK companies remains at an historically low level of activity.”

Jane Turner, research manager at information services provider Experian MarketIQ, said: “A more cautious approach, particularly evident amongst the large corporates, alongside reduced private equity activity, market volatility and fewer deals involving UK SMEs, has produced a more subdued start to the year than many expected.”

Our own experience in the South West reflects these national trends. So far this year, we have submitted 29 deals to Experian, compared with 37 such deals in the first half of last year.

We have nevertheless acted in some significant transactions. Last December, for example, we advised on the $51 million sale of Research Instruments, a manufacturer of medical devices, to US-based multinational CooperSurgical.

In April, we advised Centrax Industries on the sale of its subsidiary Centrax Turbine Components to MB Aerospace, another US-based multi-national.

We have recently advised on the sale of Internal Results, a global provider of business-tobusiness lead generation solutions to Madison Logic of New York.

We are also active outside the south west. Our Bristol office continues to handle a steady stream of private equity investments, many in young tech companies based in London. And business in our

SpecialistadviserstotheHotels,Tourism&Leisuresector. www.bishopfleming.co.uk

London office, boosted by lateral hires of partners Stuart Fleet and Giles Hawkins, continues to grow.

We find our clients increasingly ask for a wider range of services than solicitors have traditionally provided. We have responded to this trend by broadening our client offer.

Our health and safety consultancy, Ashfords HSE, provides legal and practical advice on safety, food, the environment and trading standards. We now offer an international patenting service led by patent attorney Kaya Elkiner. We are developing Ruby

‘Cautious approach has produced a subdued start to year’ Jane Turner, Experian MarketIQ Datum, the next generation of data room systems, and have recently invested in Route 1 International, a tech start-up in the field of legal recruitment.

In the Experian deal league tables for 2015, Ashfords finished as the number one legal adviser in the south west. We were also ranked in the top ten firms for deals in London and in 11th place nationally – the only south west law firm in the national top 20.

The result of the EU referendum is likely to depress market activity in the short term, but we believe we are well placed to provide businesses with the advice they need in these uncertain times.

We also believe that in uncertain times there is significant opportunity for those forward thinking and nimble enough to see it. We will work with our clients to help them with these challenges and realise these opportunities.

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Comercial property

Competition hardening the terms available Devon and Cornwall’s commercial property market has performed strongly despite the lack of supply, writes Olivier Vergnault The commercial property market has seen a steady level of requirements for office and industrial premises and is increasingly seeing real competition hardening the terms available.

Exeter continues to perform strongly as the economic centre of Devon. In December 2015, Lidl completed the purchase of a 40-acre site at Exeter Gateway which will support a distribution centre building of almost 500,000 sq ft, equivalent in size to 7.25 football pitches.

It is expected to generate around 500 jobs.

The automotive sector has been particularly acquisitive in line with strong demand for vehicles.

Noel Stevens, partner at Alder King’s Exeter office said the Chancellor’s spring budget offered very little to the commercial sector but dealt a blow to the buy-to-let market with an additional 3% stamp duty being charged on all transactions after April 1.

The intention was to stop investors pricing out first-time buyers.

Far bigger in importance than the Budget has been the EU referendum. Mr Stevens said that the uncertainty surrounding the outcome of the referendum created risk, and risk leads to caution, while investors and occupiers are generally risk-averse.

Tim Western, from JLL in

Exeter, agrees an acute shortage of available premises has been inhibiting business growth in the South West over the past 12 months.

He said it is highly likely that the industrial and office property markets across Devon, Cornwall and South Somerset will under-perform in 2016 despite stable economic conditions and positive levels of demand in many areas because the lack of supply.

However he insisted there was a real danger that growth will be inhibited and job creation slowed as a result.

The two main factors frustrating demand are the worrying scarcity of second-hand options and the relatively low levels of new-build construction.

Supply levels in the main centres across the region are

Bill Ray, group managing director of Goodridge on the Exeter Airport Business Park MATT MINSHULL between 2% and 4% with Exeter, Truro and Taunton at critical levels. In Exeter at the moment, the only building over 20,000 sq ft is the former DPD building on Sowton, which has become available due to expansion at Skypark.

Demand across the region is predominantly from the distribution sector, enhanced by changing retail patterns and increasing consumer de-

mands. Mr Western said: “There are, however, niche manufacturing companies expanding and Goodridge’s relocation to Exeter Business Park is a good example of this demand.

“There is also a steady level of food production demand and Dartmouth Foods’ acquisition of 30,000 sq ft at Langage in Plymouth shows that if there are options available, busi-

nesses will grow. The office market in 2015 saw a slow but steady take-up of the remaining better quality second-hand buildings.

“Hopefully more office occupiers will ‘jump in’ and acquire new-build options on the development sites like Exeter Business Park, Skypark, Plymouth International and the remaining plots at Blackbrook Taunton.”

Auctions shake off stigma to become booming outlet for property sales

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Property auctions used to have a reputation as a place where cut-throat traders would battle it out to snap up a property for a bargain price Too run down to sell through traditional channels, the auction house was the last-chance saloon to flog a tired property.

Yet that image has changed somewhat in recent years.

The commercial property sector has risen from the ashes of the recession and has become even more attractive with the prolonged period of low interest rates, reduced dividends and unexciting bond yields.

There is no longer a stigma attached to selling at auction – quite the opposite in fact. An auction often provides the most certainty to both buyers and sellers, compared to traditional methods of sale.

There is an influx of people wanting to plough their money into a property and auction houses have never been busier.

Cash-rich private investors are heading to the auction houses in their droves to pick up income-producing commercial property assets or residential buy-to-let investments.

Let’s just say the market is buoyant right now.

For the person selling the property, it facilitates a quick sale and, for the buyer, it provides the potential to secure a value for money purchase. It’s a win-win situation.

Three years ago we launched

Strong,long-termclientrelationships. www.bishopfleming.co.uk

BY PAUL HEATHER Chalres Darrow Charles Darrow against a backdrop of uncertainty and a fragile confidence in the commercial property sector.

Now, today’s commercial property investments are frequently achieving above the guide price. With so much competitive bidding many are being sold prior to auction so it was a natural progression for us to become part of the property auction sector. Since then Charles Darrow Network Auctions has gone from strength to strength.

Our auctions are held in Mayfair, London, every two months where London and South West buyers scrap it out for the privilege of buying property in this beautiful part of the country which offers much better value for money than much of London and the South East. It is an effective way to achieve the best price for your property.

The statistics don’t lie and 100 per cent of our properties taken to auction have ended up selling. The sector has grown so quickly.

The list of properties sold at our auctions is endless, but amongst the properties to have been snapped up under our guidance has been the Strath-

more Apartments, Torquay, Fountain Court, Bovey Tracey, River Parrett Inn, Bridgwater, The Green Dragon, Wellington and The Golden Lion, Barnstaple.

At Charles Darrow Network Auctions, we are taking a vast mix of properties to auction, from commercial to mixed use residential property and land with or without planning consent.

The benefits are numerous with contracts completed within 20 working days of the action and an absence of chains and protracted negotiations. We offer a transparent service, allowing all interested parties to have an opportunity to bid and ensuring competition in a bid to secure the best price for our clients.

Boasting an excellent track record of property sales at auction, we provide expert advice about the auction process and carry out a thorough appraisal of your property.

With an extensive database of buyers and investors, your property will be the subject of an effective local marketing campaign through online advertising on websites and portals, plus national coverage.

If you’ve thought about selling your business through an auction, get in touch.

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Construction

Benefits of £110m link road already evident The South Devon Link Road has cut journey times between Cornwall and the rest of the UK while creating 8,000 jobs The £110 million South Devon Link Road leads the way for construction in the South West this year.

It opened quietly in December after a 60-year wait and has since gone on to win major awards, including being named South West Large Project of the Year at the Institute of Highway Engineers (IHE) South West awards in May. The link road has cut journey times to Torbay and cut 95% of traffic though Kingskerswell village.

The road, built by Galliford Try, is not yet officially complete but motorists have been enjoying the faster journey times for six months.

The route was one of the most congested and heavily used in the region, carrying more than 35,000 vehicles a day.

The improved access is expected to bring lasting economic benefits, leading to the creation of nearly 8,000 jobs in South Devon, with around 3,500 of these in Torbay.

Cornwall is set to benefit from A30 improvements at Bodmin Moor. The current single carriageway of the A30 between Temple and Higher Carblake is the only section of single carriageway between leaving Scotland and reaching Temple. Kier construction is working on the 4.5km section of road to create a dual carriageway. Disruption this year will result in faster journey times and less congestion when it opens in spring 2017.

Better infrastructure is being planned for North Devon too. But the future may not be as bright as hoped. Devon County Council has ruled out dualling the A361 North Devon Link Road. It says that the project would cost an estimated £500million and offer ‘poor value for money’.

Instead, it is considering two less costly options, both of which the council say will improve traffic flow to reduce journey times from the M5, tackle congestion at peaktimes between Barnstaple and Bideford, and improve safety.

More widely, the South West construction industry is facing uncertainty in the wake of the Brexit vote.

Earlier this year, RICS warned of a major skills shortage in the construction industry.

Mark Boulting, managing director of Plymouth-based Skills Group, said that while there were some signs of improvement, it takes time to train a qualified and product-

The South Devon Link Road opened in December after a 60-year wait ive workforce so the situation looked set to get worse before it could get better.

Mr Boulting said: “Skills shortages have moved from being merely a concern to an acute problem, with the predictable consequence of constraining growth in the sector and beyond to the wider economy.”

Mr Boulting was reacting to a survey by the Royal Institution of Chartered Surveyors that revealed that labour shortages were reported by 66 per cent of construction professionals across the UK and were considered the most significant barrier to growth in the industry in the last quarter of 2015. In the South West, 44 per cent reported difficulty in sourcing skilled workers.

Now, the Federation of Master Builders is urging the Government not to “turn off the tap” of Eastern European workers coming to the UK following the decision to leave the EU. It comes as Plymouth is facing the biggest building

boom since its post-war reconstruction with the Building Plymouth multi-partner initiative stressing 10,000 extra people will be needed to work in schemes in the city, such as the huge Sherford new town, during the next decade.

‘The construction industry has relied on migrant workers’ Brian Berry, FMB chief executive SWH Group partnered with the Plymouth City Council-led Building Plymouth initiative to open a job shop to address a skills gap, nationally as well as in the city, which has meant thousands of construction jobs need filling.

Brian Berry, chief executive of the FMB, said: “The UK construction industry has been heavily reliant on migrant workers from Europe for decades now – at present, 12

ANDY UGLOW PYRAMID TORBAY PHOTOGRAPHY

per cent of the British construction workers are of nonUK origin.

“The majority of these workers are from EU countries such as Poland, Romania and Lithuania and they have helped the construction industry bounce back from the economic downturn when 400,000 skilled workers left our industry, most of which did not retur n.

“If ministers want to meet their house building and infrastructure objectives, they have to ensure the new system of immigration is responsive to the needs of industry.

“At the same time, we need to ensure we invest in our own home-grown talent through apprenticeship training so we are not overly reliant on migrant workers from Europe or further afield.”

Construction firm The Midas Group, celebrates 40 years in business this year.

Chief executive Alan Hope said that young people should look at the industry as a career

ExpertsinBusinessTax&VAT. www.bishopfleming.co.uk

option. “I firmly believe that it is an exciting and challenging sector to work in which is evolving rapidly, not only in the techniques and products coming onto the market, but also the projects clients want us to work on.”

Mr Hope said that the sector in the South West must become a leader in customer service delivery to retain its customer base.

He said that in recent years, a need to meet stringent regulations, budgets and timings alongside clients’ high expectations has changed every aspect of the retail, services and construction sectors.

He said: “It’s a cultural and institutional shift that perhaps the UK, and certainly large parts of the building industry, has lagged behind on. “ We need to believe that, as a sector, we can lead the way in customer service delivery, rather than one that is just happy being in the chasing pack.”

The Institute of Customer

Service published a report on the Customer of the Future in June. The report identifies 12 factors of change that it feels will shape the business landscape over the next 10 years.

It found that collaboration, trust, a better understanding of regulatory frameworks, and a more engaging customer experience were among the key recommendations for companies looking to ensure that they don’t lose their customer base.

Mr Hope said: “The behavioural change I am seeing now is that clients feel empowered and are prepared to be much more challenging – but they also want long-term, trusted relationships and increasingly understand the risks of going with the lowest common denominator.

“I firmly believe that construction needs to see itself as a service orientated industry.

Building a quality product is a given. Clients want more from firms, they want to be involved and feel part of something.”

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Sponsors

Grant funding: The pros, cons and what lies ahead Grants are not ‘free money’ but should be viewed simply as an alternative form of investment. They sit beside loans, equity and alternative finance and in the right circumstances, can be very effective in de-risking a project or in attracting other funding.

They are an unsecured investment and when handled properly are generally nonrepayable.

They are a stimulus rather than a cure, but have become increasingly focused on compliance, in particular around State Aid and Procurement areas. Threat of clawback for non-compliance on procurement or non-delivery of outputs is a serious issue. In addition, capital grant programmes still tend to focus on new job creation as the core output rather than productiv-

BY EWAN MCCLYMONT Bishop Fleming’s director of grant services ity gain, which can be counter to the project rationale.

By the time you read this article, the outcome of the EU Referendum will be clear. Both Cornwall and the Heart of the South West LEP areas benefit from funding via the European Structural & Investment Funds Growth Programme (ESIF). The outcome of the Referendum will impact on whether this will continue in the long-term. But in any event, in order to make this funding effective, its administration by central government needs to be faster and more flexible.

There also needs to be more consistency on availability of business support. A 3-year

programme term is the norm.

Even so, this last year has seen the overnight shut-down of schemes such as the Business Growth Service, which included Growth Accelerator and the Manufacturing Advisory Service. I very much

‘The long-term trend is moving away from grant intervention’ hope that the new Growth Hubs, now operational across all LEP areas in England, are able to painlessly signpost businesses to available support at any given time.

Current schemes include capital grant support, such as

BIG2 in Cornwall, the South West Growth Fund and the Assisted Asset Purchase Scheme. LEADER funding is operational across England for rural businesses, and the fisheries sector can benefit from the new European Maritime & Fisheries Fund. Unlocking Potential is an excellent programme for graduate placement and recruitment, and is linked to coaching support in Cornwall.

Going forward, we will see new ‘calls’ for ESIF funded projects in both Devon and Cornwall, including a substantial loan and equity programme for Cornwall. Indeed, the long-term trend is moving away from grant intervention and towards repayable aid, which helps ensure legacy funding for the future.

THE SOUTHWEST’S LEADING ADVISERTO ACADEMY SCHOOLS • Working with over 350 academy schools • Providing a unique training programme to academy business and finance managers • A highly experienced team of over 70 trained academy advisers

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Professionals

Year of optimism giving way to uncertainty At the time of going to press, the biggest uncertainty for the Westcountry’s professional firms – and their clients – is the outcome the EU referendum and what a potential exit from the union would mean.

In the wake of chancellor George Osborne’s Spring Budget, Westcountry firms said they were bracing themselves for the ‘real’ Budget, once the outcome of the national vote was known.

Law firm Foot Anstey's head of markets Nathan Peacey said the chancellor had delivered a ‘balanced’ budget with measures intended to help businesses – especially smaller ones – to grow. He summed up the view of many by adding, “I suspect however that the economic impact of this year’s budget will be less relevant than the market reaction to the EU vote on June 23.”

As Matthew Lee, managing partner at accountancy firm Bishop Fleming observed in the weeks leading up to the ballot: “Business does not prosper in times of change and uncertainty and the whole Brexit debate is starting have an unsettling effect.

“The collapse in sterling against the euro is really starting to hurt many clients.

Goods imported from the EU are now costing 15% more than they did six months ago.

Likewise the rate against the dollar has been more volatile than it has been in the past.”

But his firm, like many other professional services firms in the Westcountry has also been reaping the fruits of an otherwise stronger economy and, as he puts it, “a general mood of optimism” since July last year which, until the referendum loomed closer, had been absent in the last few years.

He explained: “We are benefiting from an escalation in corporate transaction brought about by a relatively strong economy, the availability of cheap long term finance.”

Andrew Betteridge, who heads law firm Ashfords’ corporate commercial teams said in January that local advisers and funders had enjoyed active workloads, with most reporting good prospects for 2016, albeit with EU-related concer ns.

He said: “While the slowdown in China and poor performance in emerging markets remain causes for concern globally, the UK’s economic performance remains attractive to inward investors.

We expect continued growth in the South West in 2016, despite uncertainty over EU membership and the strength of sterling.”

For Bishop Fleming, which has seven offices including

Catherine Barnes looks at how the West’s leading professional practices have coped in a year dominated by the EU referendum

four in Devon and Cornwall, it’s been a 12-month period in which its own activity levels have been high. The company has said key growth areas were most noticeable in tax and corporate finance, with revenues up by revenues are up by 20% and 40% respectively.

In March, Stephens Scown agreed a new shared ownership model, similar to the employee-partnership scheme operated by retailer John Lewis. The Westcountry law firm, which has more than 300 staff and a £17 million turnover, is believed to be the biggest law firm to implement such a scheme. After the scheme was given the green light by the regulators and tax authorities, it could pave the way for other partnerships and professional services firms to follow suit.

Meanwhile, the Westcountry’s largest independent firm of chartered accountants expanded further after announcing a merger in January.

Francis Clark merged with Princecroft Willis, a Dorset and Hampshire-based firm with strong reputation in the

‘The whole Brexit debate is starting have an unsettling effect’ Matthew Lee, Bishop Fleming marine, engineering, manufacturing, professional services and family business sectors.

The move, which was completed on April 1, has created a company with a combined revenue of £38 million and a team of more than 580 people across nine offices, under the Francis Clark banner.

Plymouth-based maritime law firm Davies Johnson was also set for expansion, after its acquisition by Thomas Miller Law, announced in December.

Awards and recognition at regional, national and international level highlighted the strength and calibre of The Westcountry’s professional firms and their specialist teams.

Among the reported highlights was Bishop Fleming named runner up in the Best Mid-Tier Accountancy Practice and #48 ranking on The Times Top 100 Firms To Work For list. Stephens Scown was

After George Osborne’s spring Budget, Westcountry firms said they were bracing themselves for the ‘real’ Budget after the referendum vote

Largest Professional Practices in Devon and Cornwall 2014/15 Business Name PKF Francis Clark LLP Michelmores LLP Foot Anstey LLP Ashfords LLP Bishop Fleming LLP Stephens Scown LLP Coodes LLP

Turnover £m 39,065 32,800 35,900 35,382 19,800 17,850 7,250

ranked number 12 in the Sunday Times list of the top 100 mid-sized firms to work for – and won an award for most improved company, as well as being the highest ranked law firm nationally on the list.

Ashfords has been shortlisted for Employment Team of the Year in The Lawyer Awards.

Devon firm Everys Solicitors was named as the Family Law firm of the Year in England 2015 by Global Law Experts in its international

Number of Employees 656 452 445 423 320 298 180

awards. And Foot Anstey’s managing partner John Westwell, who has led the firm to accrue 60% turnover growth in five years, was honoured for his achievement in industry bible The Lawyer’s Hot 100.

Insolvency has been one area that has remained quiet for professional advisory firms and their clients over the past 12 months, as the postrecession economy has grown stronger and businesses that may have been vulnerable in

recession now in a better place to ride out difficulties.

It has remained a ‘challenging area’ as businesses look to refinance and continue to trade, said Ashfords’ chief executive Garry Mackay, who added that corporate and property work has increased as business confidence returns and bank lending becomes flexible.

His firm has seen growth across its practice, although some of this growth has been triggered by one-off events such as the change in pension rules or stamp duty. Meanwhile, its private client business has been thriving.

For Foot Anstey, which achieved 12% growth last year, taking its turnover to £36 million, strong activity in real estate, corporate and private wealth have been among the key drivers.

Foot Anstey’s work was also highlighted in the FT Innovative Lawyers Report and ranked as 'standout' for its

Awarded'exceptional'andthehigheststandardsof customercareby'InvestorinClients'.

development of a digital conveyancing tool.

Innovation and flexibility is has been key to the success of professional firms, including Ashfords, with teams in place to respond to the demands of new and evolving client businesses.

“The IT sector is very buoyant at the moment as various new areas including drone, cloud and virtual reality start to make proper impact on the market,” said Ashfords’ Garry Mackay.

Among other firms to have enhanced their specialist client business services in key areas of growth, was Stephens Scown which announced in April it had created a new team headed by Verity Slater, based at its St Austell office, to support the marine sector which pumps £500 million into the Cornish economy.

Ms Slater said: “It’s an important source of employment and a driver of economic growth in the region.”

62 THURSDAY JULY 7 2016 WESTERN MORNING NEWS

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More than half of the jobs in the solar power industry have been lost due to changes in government energy policy, according to Gabriel Wondrausch, boss of Exeter-based SunGiftEnergy.

Around the country, solar panel installers have gone to the wall as the Government slashed subsidies.

From a peak of 45p per kWh, the feed-in tariff paid has fallen to just 4p for domestic installations and even less for big solar farms.

Mr Wondrausch said the subsidy cuts had been too deep and too sudden and had damaged the industry as a result.

“If there is a sudden 60-80% reduction you are going to get a mad rush, and then not much activity afterwards. We are in that trough now.”

“One thing that is affecting many renewable energy companies is the Government’s energy strategy which can only be described as an omnishambles – including meddling with the Feed-in Tariff, the stalling of carbon capture and storage, fracking projects mindlessly being pushed through, an increased commitment to nuclear energy and a general lack of investment in renewables.

“Despite this, I am convinced renewable energy is now resilient enough to march forward and carve its own path.”

His own company has diversified, made deep cuts and moved offices to survive – just as solar power reaches maturity. In May solar surpassed coal as a major generator of Britain’s electricity.

Jonathan Selwyn, chairman of the Solar Trade Association, which represents the industry, said: “This must be the only industrial sector where the Government is congratulating itself for causing thousands of job losses.”

In recent years Britain has installed up to 10 gigawatts of solar power, much of it in Devon and Cornwall. That is enough to power more than three million homes, equal to 65% of the output from the planned new Hinkley Point C nuclear plant in Somerset.

Wind has led the way in the renewables revolution, but the Government has also removed all subsidies from onshore turbines.

Worldwide, the renewables sector is going through major changes, Merlin Hyman, chief executive of Regen South West, said.

ExpertsinBusinessTax&VAT. www.bishopfleming.co.uk

“People haven’t quite understood the change that is happening – a shift in our power system – and it’s a global shift.

“In the past year we have seen a switch in levels of investment, away from fossil fuels. Investment in renewables now outstrips fossil fuels, and the trend is upward for renewables and downward for fossil fuels. That is driven by a shift in technology. Solar and wind are now as cheap or in many cases cheaper than any other way of generating electricity where you have good resources of sun or wind.

“The markets have decided we are going to move towards distributed renewables and away from big, centralised, fossil fuels.

“This is a global trend led by China. In the UK we have been a bit of a laggard, compared to some countries but the last few years has seen a lot of investment in renewables.

“In the last parliament about half of all infrastructure spending went into renew-

ables. The National Infrastructure Commission did a study of priorities, and the great British public put renewables top, ahead of housing.”

Last year Britain got about 25% of power from renewables, and Mr Hyman believes that projects already in the pipeline will increase that rapidly.

“In the South West, renewables are now a major player.

What that has primarily meant is a continuing strong focus on solar power. A certain amount of wind is still being built, but not much. And there is a certain amount of anaerobic digestion.

“My guess is solar has probably moved away from Devon and Cornwall towards, for example, Wiltshire, and that’s because of the National Grid.

“The first thing you do if you are going to build a solar system is you ask the Grid if you can connect. If they think there is too much capacity in an area, they will say no.”

Mr Hyman said there had been a strong shift towards community models, a move

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WESTERN MORNING NEWS THURSDAY JULY 7 2016 63

in search for alternative sources of energy Oceanus 2 Wave Energy Convertor at the Wave Hub test site off Hayle Energy raised £390,000 of investment in less than three weeks.

But renewables have not been greeted with enthusiasm everywhere.

The Devon branch of the Campaign to Protect Rural England (CPRE) has spoken out against a number of high-profile wind and solar projects.

The group says it does not opposed renewable energy developments “on principle”, but adds: “It is how these goals are achieved that divides opinion.

“In an increasingly unstable world we question the wisdom of randomly destroying our domestic food production capacity by allowing more and more land to be taken out of agricultural use.”

Gabriel Wondrausch believes 2016 will be the year that battery storage technologies

come of age, finally breaking the direct link between supply and consumption of renewable energy.

Renewables have often faced criticism for being dependent on unreliable weather. SunGift is now fitting breakthrough batteries such as the Tesla alongside solar installations.

Mr Wondrausch said an average domestic system would use about 50% of the power generated, with the rest going into the National Grid. Fitting batteries can push that up towards 80%.

John Fursdon from biomass boilers installer Rural Energy, said people were starting to switch to low-emissions systems, particularly with the recovery of oil prices.

He said biomass – in the form of wood chip or pellets –

was more climate friendly than oil or gas.

“What you are burning was only grown 20 years ago.”

In Exeter, there was a move to create a “heat grid”, with developers being required to install district heating systems in new developments.

Wave and tidal energy are still in their infancy, but Tim Sawyer of CETO Wave Energy UK, a subsidiary of Australian company Carnegie Wave Energy, said: “Cornwall has grabbed the momentum on wave energy in the past six months and is going to find itself a world leader. Wave Hub has taken the initiative from Scotland.”

In March the Government agreed to provide a £15m funding package to drive work to develop a Hayle, Falmouth and Tolvaddon MarineHub Enterprise Zone. The Wave Hub, the world’s largest wave energy testing facility, will also be transferred to Cornwall Council to develop the facility as part of this low carbon MarineHub Enterprise Zone.

So far Wave Hub, the seabed “socket” designed for prototype devices to plug into, has been underused, with only one device connected.

Mr Sawyer said: “Wave Hub was built too early because developers over-promised. But its time has come.”

Heather Wilson-Prowse, Wave Hub’s head of operations and business services said: “We have one device currently on site and two other developers based in Cornwall working on their deployment plans.”

Seatricity has connected its Oceanus 2 device, which managing director Andy Bristow described as similar to a giant bicycle pump mounted on a 12metre gimballed platform.

Oceanus 2 is designed to create hydraulic pressure, rather than direct power generation, so could also be used for desalination.

project developers will want reassurances from the government before they commit.

Grid connection continues to be a real issue for renewable electricity generation projects in the south west. Grid capacity to connect more renewables is scarce, despite Ofgem pushing electricity distribution network operators to find new ways to link them.

Without a connection, renewables are stymied.

Other casualties of the gover nment’s less green policies

are the capping of Feed-in Tariffs (FiTs) and the Renewable Heat Incentive (RHI). This may make many new renewables projects unviable.

However, marine and renewable energy infrastructure remain key to the Cornwall & Isles of Scilly LEP’s strategic economic plan. A significant proportion of the county’s European Structural Investment Fund will be focused on harnessing natural assets such as tidal, wave, and geothermal.

‘Solar has moved away from Devon and Cornwall’ Merlin Hyman, Regen South West

supported by Regen SW. Schemes include Plymouth Energy Community, the largest in terms of the scale of its generating assets; Wren (Wadebridge Renewable Energy Network); Tresoc, the Totnes scheme which has built a hydroelectric plant; and the PL:21 Portworthy solar array.

This year Plymouth Energy Community (PEC) launched

its third investment programme, inviting investors to buy into an 18-acre solar farm at Ernesettle, in the north west of the city. For £50 you can own a share of the business, and investors are promised an enviable 6% return on their money.

A short-term construction loan allowed PEC to build before subsidies were cut. The

Ernesettle array’s 16,000 solar panels started generating on March 23 this year.

The latest share offer is aiming to raise £1.23 million to pay for the Erenesettle array.

PEC’s previous two projects raised more than £1.4 million and resulted in 32 solar installations on schools and local businesses, including Plymouth Life Centre. Host or-

ganisations are already saving £90,000 a year on their bills.

PEC was set up with the support of Plymouth City Council and has expanded to more than 1,500 members. It has helped more than 11,200 households, cutting more than £341,000 from annual fuel bills.

At the smaller end of the scale, Exeter Community

A touch of the blues for the green sector

BY EWAN MCCLYMONT Renewable and sustainable energy specialist Despite the need to manage the planet’s finite resources and meet climate change targets, the renewables sector has faced major setbacks in the last year from changes in political will and rising competition from falling oil and gas prices.

The spectre of fracking also continues to haunt the sector.

As Third Energy gains the right to extract shale gas in

Yorkshire, one wonders how long it will be before fracking comes to the South West.

With the government’s wish to reduce the cost of household energy bills, onshore wind projects have been hit by a new Energy Act, ending new subsidies for onshore wind projects and empowering local communities to block any new developments. However, on the back of an October 2015 Bloomberg report showing that wind power is the cheapest form of electricity

generation, Good Energy recently announced plans for a new wind farm in Cornwall without any subsidy.

With its change of mind about all new homes being zero carbon, the government has also massively cut the subsidy to householders installing rooftop solar panels.

Public savings from these cuts in subsidies are insignificant compared to the millions to be spent on developing the Hinkley nuclear power plant. The cuts are also at odds

with the government’s recent Paris Climate deal to keep global temperature rises below 2 degrees. Gas fired and nuclear power stations appear to be the government’s answer to the UK’s long-term energy needs.

One renewables area in which the government remains interested is offshore wind, which ironically is far more expensive to build and manage than its onshore equivalent. However, with other subsidies being cut, offshore

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