in:brief napthens.co.uk
SUMMER 2009 ISSUE ONE
THE NEWSLETTER OF NAPTHENS SOLICITORS
Business roundup Jonathan Diggines of Enterprise Ventures writes for in:brief page 2
Brewing up a success Turnover doubles for pub management company, Publicana page 3 Increased rights for consumers mean businesses must keep essential paperwork up-to-date
Credit Act change increases red tape for businesses Many businesses could be left unable to enforce customer credit agreements if they fall foul of a change in the law, an expert is warning. Consumers have been given more transparent rights under the Consumer Credit Act 2006, in a bid to bring the Consumer Credit Act 1974 up-to-date. Rob Dobson, corporate solicitor at Napthens, reveals the Act’s changes are just beginning to bite for many companies extending credit and loans to customers. Businesses are realising that much more onus has been placed on them to keep in contact with consumers than previously. The Government’s Department for Business Innovation and Skills says the move makes the Act ‘more relevant to today’s consumers’ by strengthening consumer rights, improving consumer credit regulation and increasing the effectiveness of regulation. The Act affects all those who use credit to buy goods or services – including hire purchase and store cards. It applies to individuals entering into consumer credit agreements, and also includes sole traders and small partnerships. This is to give consumers better information about their debts, but Rob warns the extra responsibilities in particular could see companies unable to enforce credit
arrangements if they fail to keep up with the necessary paperwork and provide the statutory information to consumers. Rob said: “Many businesses are now finding that the changes to the Consumer Credit Act are beginning to bite in terms of day-to-day operations. “Much more focus is placed on the business to keep in touch with the consumer, to give proper, thorough and transparent information about their debt. “It is important for consumers to be aware of their financial position in relation to credit agreements, but there have been fears the Act is adding yet another layer of red tape and bureaucracy to companies already struggling in the recession.” Two of the key changes mean businesses providing credit now have to provide regular statements during the lifetime of a debt; and secondly, customers falling behind on payments must receive arrears notices. If a business fails to supply these two vital pieces of paperwork, they could find themselves in a ‘period of non-compliance’ and unable to enforce the agreement until the paperwork is complete.
It also says the fact consumers will be better informed about their debts is good for ‘competent businesses.’ However, Rob points out the key changes will benefit consumers rather than businesses and companies should be fully aware of their role and responsibilities under the amended Act, or risk breaking the law. He said: “It is vital for businesses to keep paperwork up-to-date and get proper advice if they are unsure as to their responsibilities. “Consumers and consumer groups are more aware than ever before of their rights, and businesses must
Blackburn: Special report page 4 & 5
This edition, three experts discuss the regeneration of Blackpool page 3
Advice Chris Boyle, head of Employment, outlines the ACAS Code of Practice page 6
Rob explained: “The results can be serious for the company involved, as they would enter a period of noncompliance. During this time, not only would the company not be able to enforce the agreement, but the consumer would have no liability to pay any interest during the period of non-compliance.” The Department for Business Innovation and Skills says businesses will benefit from ‘a more level playing field as the Office of Fair Trading have better enforcement powers to drive out rogue traders and punish incompetent businesses.’
Talking heads
Opinion Rob Dobson
James Allison, corporate partner, gives his opinion on surviving the recession page 7
“the changes are beginning Technically to bite” brilliant take pains to be as well prepared as their customers. “There is a fear that some consumers could use this to further their own gains to exploit the legal loopholes in credit agreements, and avoid payment. “The changes in the Act are a routine administration process, but if not performed correctly, could cost businesses in terms of lost revenue.”
Me and my gadget: Simon Ainsworth, head of the private client division, reviews the iPhone page 8
welcome / round up / awards:
in:brief welcome
Business roundup by Jonathan Diggines, chief executive, Enterprise Ventures I’m probably best known as a venture capitalist: 15 years at Murray Johnstone, the past five years at EV. In that time I have certainly seen some ‘ups and downs’, but I’ve never seen times like these. Except for the handful of centenarians who might just remember the traumas of the Great Depression, I’m pretty sure that no one else has either.
Ian Leigh, chief executive
Welcome to Napthens’ new look newsletter, designed to be informative, relevant to our marketplace, and share thoughts on issues that affect us all. We would like to hear what you think about in:brief and welcome your feedback. As a topic, the recession continually raises its ugly head, but, as you’ll read in our Blackburn feature, the region’s OMBs and SMEs are handling it well. In some instances, the recession provides an opportunity for businesses to focus on what is important, profitable and sustainable for them. Businesses will also take this time to look at diversification, sell non-profitable areas, innovate with new products, and embrace IT to ensure more seamless and effective working practices, a view which is underlined in an article by EV’s chief executive, Jonathan Diggines. Forward thinking businesses are also using this time to market themselves more aggressively, whilst their competition decides to batten down the hatches and wait until the storm passes. In my view the latter is a short-sighted approach, as the ones who will exploit a proactive approach to marketing will undoubtedly reap the rewards. No-one can of course accurately predict the time when we will see an upturn in the economy but we are starting to see a few of those elusive green shoots in the property market. However, the words that I hear being uttered by most business people is…‘we’re being cautious’. There are many opportunities that still exist so let’s choose not to take part in the recession and get on with doing business.
2 in:brief SUMMER 2009
“we are seeing a substantial increase in dealflow” We’re now beyond the initial phase in this recession: most of the lending and investment banks have just about come through the upheaval which manifested itself in mid 2007 – with vast input from taxpayers around the world. We’ve seen a resurgence in bank share values in the first quarter of 2009. We’ve now moved into the second phase: where the effects of a flagging economy are seen across the world economy, in trading businesses large and small – initially the retail sector, then the motor trade, followed by the manufacturing sector, and ultimately the service sector. Even the UK public sector is now starting to feel the squeeze. Yet the UK financial markets have shifted very positively during recent weeks. There is talk the property market has bottomed out. The first thing to note is that this is not a consistent downturn. While
my day job has been as a venture capitalist, I’ve also been a non-executive director of a number of companies, one of which is Nichols plc (which brought Vimto to the world more than 100 years ago). One of the North West’s roster of successful AIM-listed businesses, Nichols shrugged off the recession and delivered strong performance in 2008, and in the first 12 weeks of 2009, sales of Vimto were up 11.8 per cent in a total soft drinks market up just 0.6 per cent.
What’s going on? It seems that, during a downturn, people may have to ‘do without’. However, they still crave that small treat to carry them through a trying day, and they tend to go back to the most familiar products – soft drinks, confectionery – that bring comfort, and carry long-term, pleasurable associations. Perhaps the Nichols’ performance is the exception that proves the depth of the downturn. At EV we are seeing a substantial increase in dealflow from the businesses that we invest in: regionally located, these range from regular, established SMEs to high risk start-ups and proof of concept investments in new technology applications which are EV’s speciality, through its RisingStars funds. Furthermore, whilst there has been a real slowdown, deals are still happening. In January this year, EV realised a 3.6 times cash multiple from its investment in H2O Networks, made in September 2006.
Jonathan Diggines
With its innovative fibre optic application, supplying high speed broadband through existing sewer systems, H2O is one more example of the value and importance of backing new technology. If the UK is to get itself out of the state it’s in, it will not be through ‘me too’ businesses, following someone else’s lead.
So, what happens next? As I said earlier: no one knows for sure. However, for the record, EV’s house analysis, applied in making investments, is that:
• It might well be 2011/12 (the run up to the London Olympics) before there is any sustained, reliable upturn in the UK • Meanwhile, this is the time to hold your nerve, and to keep investing, keep innovating… • …and, then, winning, world class UK businesses will emerge, exploiting new technologies, products and markets. Contact: jonathon.diggines@enterprisevenutres.co.uk 01772 270570
• This recession will not be short-lived • There will be false dawns don’t listen to that talk of an upturn just yet!
Napthens sponsors key tourism award Napthens sponsored a category in one of the area’s top award ceremonies – the sixth annual Lancashire and Blackpool Tourism Awards. Partner Martin Beardsworth presented the Caravan Holiday Park and Holiday Village winner’s award to Sandy Taylor, director of Sunset Park, Hambleton, at the Ribby Hall Village ceremony on June 10. The shortlist for the category was made up of Eastham Hall Caravan Park, Lytham St Annes; Hawthorns Park, near Carnforth; Sunset Park, Hambleton; and Windy Harbour Holiday Park, Little Singleton, which was highly commended in this category.
Martin said: “Napthens has particular expertise in the caravan / holiday park sector and this was an excellent opportunity for us to show our support for the industry. The awards comprised 13 categories and were designed to ‘continue the tradition or celebrating the county’s quality and business excellence’. Sunset Park will now go forward to represent Lancashire & Blackpool in the North West Regional Awards later this year. Martin Beardsworth and Sandy Taylor
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talking heads / Publicana / business bites:
Talking Heads What needs to be done to ensure regeneration in Blackpool is a success? amongst residents, visitors and investors alike.” Martin Beardsworth, partner, Commercial Property department, Napthens: “It is vital for businesses to get involved in the regeneration process. There will always be a chance to get involved in public consultation, and I would urge the local business community to join in. Doug Garrett
Doug Garrett, chief executive, ReBlackpool: “It’s vital every project we undertake links in to a wider regeneration strategy ReBlackpool’s plans are to join together the efforts of each partner to ensure that new developments
Martin Beardsworth
are fit for purpose and are properly managed in the long-term. “Increasing footfall in the town centre is a priority and by attracting our student population back to central amenities, improving the town’s retail offer, creating new
Hugh Evans
commercial opportunities and providing a high quality visitor experience we will encourage yearround trade. “We can see progress being made in Blackpool and it’s important that we create and maintain confidence
“To make the regeneration a success needs a united effort by all parties – private sector and public sector. Visitors to Blackpool are the lifeblood of the town, and it will take an effort by everyone – the leisure industry, tourism, manufacturing etc – to make the regeneration plans work, and work for all parties.”
Pub management firm toasts success Pub management services business Publicana Limited is poised to double turnover in its second year of operations — with another 100 per cent leap predicted for next year. Set up in 2007, Publicana turned over £7 million in its first year and is expecting the figure to rise to £17 million this year. Not satisfied with this seismic shift, managing director David Morse and legal director James Allison, also a corporate partner at Napthens, are confident of another sales hike in 2010, taking turnover to around £35 million. Publicana specialises in taking over underperforming venues that lack a tenant or have been hit by insolvency, and making them profitable again for their ultimate owners. The company’s exponential success resulted in relocation to new, larger office premises in Cleveleys, near Blackpool. The company employs 20 full-time staff, with a pool of more than 450 across the country to call on when required. The company is currently recruiting three area managers to provide strategic support for the company’s ambitious growth strategy. Currently, Publicana manages in excess of 150 pubs nationally for blue chip clients including Enterprise Inns PLC, Marstons PLC, Punch Taverns PLC and Greene King PLC. Publicana has also developed bespoke management information
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software that enables transparent accounting procedures when reporting back to clients about each and every pub under management – one of the company’s main unique selling points.
”We are a cost to pub companies and breweries, so it’s a question of ensuring that they fully understand the value of what it is that we do,” explained David. “We are also starting to work with large insolvency firms which involve operating businesses that have entered into insolvency and need to be disposed of.”
“Encouraging enterprise is a key component of this approach. If Blackpool is to be successful the town must have a real economic base, and that means more business growth and success.” Visit www.reblackpool.com for more information about the town’s regeneration plans.
business bites: It’s alive!!! According to a report from the Department of Communities and Local Government (DCLG), house prices have risen a further 1.1 per cent and some estate agents are recruiting again showing signs of an improving marketplace.
Goodbye recession? The British economy grew in April for the first time in just under a year and continued its expansion in May, according to the National Institute of Economic and Social Research (NIESR).
Planes, trains and automobiles
David Morse commented: “Independent pub management is a powerful growth sector at the moment and we intend to develop the huge potential in the freehold sector. A substantial number of freehold properties are on the market and with the help of James we now have the funding in place to embark on a major acquisition programme.” The main challenge facing the licensed trade is the recession which is putting large pub companies and breweries under enormous pressure. Publicana assists major players in this sector and helps them achieve operating profitability.
Hugh Evans, director of policy, North & Western Lancashire Chamber of Commerce: “The town has been successful in attracting funding from the public purse to invest in capital projects. The challenge now is to use this funding to persuade the business community to invest in the future of the town.
The World Travel & Tourism Council (WTTC) said that congestion was jeopardising Britain’s position as the world’s fifth-largest tourism economy. The sector is expected to generate £190 billion this year, around 9 per cent of GDP.
Hot chocolate
L-R David Morse and James Allison
As lead legal adviser to the company, James Allison has provided specialist advice on a broad range of areas including corporate law, funding mechanisms, dispute resolution and some property issues. Chris Boyle, head of Employment at Napthens, has been responsible for advising the company on all HR and employment law issues. James remarks that “working with David, as a trusted adviser and team player, is a winning formula.
This partnership endorses the way in which lawyers help clients realise their aspirations in business. It also helps to remove operational hurdles to allow clients to get on and run their businesses profitably.” David said: “Our relationship with Napthens has been an unqualified success from the outset. They are always proactive and have helped us in every aspect of operating and growing this business.”
Lindt is caught in a legal battle with a competitor over its chocolate rabbits. Austrian chocolate maker Hauswirth, also produces a gold-wrapped chocolate rabbit and challenged the validity of Lindt’s trademark, arguing that chocolate rabbits have been around for decades. It accused Lindt of using its market position to kill competition.
Contact us: We welcome your feedback and comments on the articles in this issue of in:brief. Feel free to drop us a line at Marketing@napthens.co.uk or visit www.napthens.co.uk/inbrief. Alternatively, if you want to contact any of the Napthens team mentioned in this issue, please email them at Firstname.Surname@napthens.co.uk We look forward to hearing from you.
SUMMER 2009 in:brief 3
regional focus: Blackburn
High-value Blackburn shows bullish spirit As the commercial hub of East Lancashire, Blackburn is rediscovering its eye for opportunity and instinct to innovate that placed the town at the forefront of the industrial revolution. Blackburn has missed out on major investment in recent years, but a raft of major schemes are under way — including the £66 million redevelopment of The Mall shopping centre. And, while no one is expecting an overnight transformation, business and civic leaders are quietly confident that the town is on the road to prosperity. Part of this process involves finally laying to rest perceptions of Blackburn as a low value-added manufacturing centre. “Blackburn is faring as well as, if not better than most parts of the country during this recession, and the reason is that we have many niche, bespoke businesses that are surviving and prospering as a result of the high value they add,” said Rob Turner, senior partner at Yorkshire Bank’s Financial Solutions Centre in Blackburn. The town’s traditional sectors, such as aerospace, engineering, chemicals and specialist textiles, have been complemented by a raft of new business types. “The M65 has brought huge benefits over the years, and Blackburn has done particularly well, being the closest to the M6 network. As a result, we are seeing big brands with warehouses and distribution networks.
Rob Turner
4 in:brief SUMMER 2009
We are also starting to see a build up of businesses in the packaging and fulfilment industry, as well as marketing and brandbuilding activity.”
employee is £15,000, compared to £75,000 in the aerospace sector, rising to £115,000 per head at BAE Systems’ Samlesbury plant.
“There are a lot of very good businesses in Blackburn, and there are a number of shrewd, very switched on businesspeople running them” Rob also believes Blackburn’s ability to weather the storm is down to the town’s diverse business base. “The old mill-town image has gone and been replaced by the new business and industrial parks such as Shadsworth and Walker Park. The local authority is promoting the Whitebirk area, also off the M65, and this is hopefully where we will see more development on the commercial and retail side,” added Rob. Although these new developments are very welcome, the continuing importance of aerospace to East Lancashire is underscored by productivity figures showing gross value added (GVA) per average
Martin Wright
With another global aerospace player, Rolls Royce, operating a major production facility at Barnoldswick, aerospace supply chain companies comprise a critically important element of the East Lancashire economy. “In the North West there are up to 50,000 people directly employed in the aerospace sector and over 100,000 indirect jobs,” said Martin Wright, chief executive of the North West Aerospace Alliance (NWAA), which represents some 800 organisations involved in the aerospace sector. “East Lancashire has the greatest density of aerospace firms in the North West, so the area has a vital role to play in the broader regional industry.”
David Hill
Britain is the world’s second largest aerospace player after the USA, and with the long-term future of both military and civil aviation looking bright, Martin believes it is vital to the East Lancashire economy for supply chain businesses to keep pace with developments in the global market. “Aerospace is very much a global industry and regional businesses must continually evolve to changing requirements. If we can do this, the prognosis is healthy for this high-value manufacturing base,” added Martin. Many commentators believe Blackburn is once again becoming a hotbed of entrepreneurial activity, which bodes well for the town’s future. “There are a lot of very good businesses in Blackburn, and there are a number of very shrewd, very switched on businesspeople running them,” said David Hill, head of Commercial Property at Napthens. “They are perhaps more likely to take a bit of a risk than those elsewhere in the North West, or even in Lancashire. Blackburn and East Lancashire has a different demographic character, with more younger people with a few extra pounds in their pockets, and they’re more willing to take a risk on what, sometimes, turn out to be very good investments. The area does seem to breed that sort of mentality.”
“Another asset is the number of well-established, well-managed family businesses that run a very tight ship. We have a solid and successful business base in key areas, notably aerospace and its supply chain, engineering, specialist chemicals and specialist textiles.”
Ironically, Blackburn’s lack of investment may have cushioned the town from the worst effects of the downturn, according to Caroline James, senior partner at Trevor Dawson chartered surveyors and commercial estate agents.
Caroline added: “We haven’t seen the sort of drop in commercial property values that you might have expected, but if you want to lease a building you wouldn’t get one on better terms than are available right now. Landlords are prepared to negotiate some highly flexible and very competitive deals.”
“One of the positive features across the office, retail and industrial commercial property sectors is that we haven’t had a boom so we aren’t experiencing a bust, as is the case in many other areas,” said Caroline.
The town centre is undergoing a major transformation, with the redevelopment of The Mall Blackburn, the landmark shopping centre in Church Street, combining with the upgrading of the Cathedral
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regional focus: Blackburn
The Braid lights up Sudell Cross, Blackburn
quarter, public realm improvements and a new further education building at Blackburn College. The Mall project, scheduled for completion in summer 2010, involves the demolition of old retail units and the creation of more than 200,000 sq ft of shopping space with a huge Primark store as the anchor development. Underneath the Mall, at street level, the town’s market will relocate from its old site in Ainsworth Street. The Mall’s general manager, Loraine Jones, believes the progress of construction work augurs well for Blackburn’s resurgence as a big regional retail attraction. “At a lot of shopping centres, capital development programmes have been put on hold as a result of the downturn but at the Mall we’re
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going full steam ahead. The steel work is already in place and next summer can’t come soon enough,” said Loraine. In the meantime, retailers at The Mall are experiencing mixed fortunes. “Footfall is down on this period last year, but is well within our prediction but footfall is down nationally and the redevelopment work is having an impact on people’s shopping patterns,” added Loraine. “Discounters and fashion shops seem to be doing well, and so too do mobile phone stores. On the flipside, travel shops appear to be quiet, perhaps because people are waiting for last-minute bargains or spending their holidays in the UK.”
Corporate financiers raise the bar Blackburn’s award-winning corporate finance sector enables the town to consistently punch above its weight, according to John Green, chief executive of accountancy firm Pierce.
debate on current business and economic issues with local accountants, lawyers, bankers and finance directors of large companies based in the area.
John was recently installed as president of the North West Society of Chartered Accountants and says East Lancashire boasts some of the best accountancy, legal and financial talent in the North West.
“East Lancashire is particularly strong in the corporate finance arena, with some excellent professionals who continue to attract work from outside our area, in addition to the Blackburn businesses they service,” said John.
He has already persuaded Michael Izza, chief executive of the Institute of Chartered Accountants in England and Wales, to visit Blackburn in June to take part in a
“Including ourselves, professional firms such as Napthens and their people have all won North West Business Insider corporate finance awards in recent years.
Businesses are looking for value from their professional advisers and this region can offer that in abundance.”
John Green
SUMMER 2009 in:brief 5
ask the expert / Henco:
Acas Code of Practice on Disciplinary and Grievance Procedures Chris Boyle, head of employment, looks at a new dispute resolution regime that has been introduced as a result of the Employment Act 2008. From April 6 2009, the statutory dismissal and disciplinary procedures and grievance procedures ceased to apply to new disputes. Damian Baron
It is no longer essential to follow a three-step disciplinary and dismissal or grievance procedure.
Ask the expert: family law
Instead, parties will be expected to comply with the revised Acas Code of Practice in most situations involving discipline and grievance (except for redundancy dismissals and dismissal on the expiry of a fixed-term contract).
Effect of the Code
Damian Baron, Preston-based family law partner, specialises in the financial, property and business aspects of a relationship breakdown. Q: Last year my wife and I divorced. We agreed a settlement approved by the court – that I pay my ex a lump sum. However, since then the recession has badly affected the value of my assets as a lot of my money was in shares. Can I ask the court to change the order so that I will have to pay less? A: Anyone going through a divorce during the recession will not be able to use this as an issue in reevaluating settlements. A ruling by the Court of Appeal recently has decided a recession-hit tycoon will still have to hand over a full divorce settlement to his wife, despite claiming he had lost money in the economic downturn and was now not worth as much as when the settlement was first made last year. In the case, businessman Brian Myerson had been ordered to hand over a total of £11million in a divorce settlement with his wife, but he told the Court of Appeal his assets had fallen in value to the point where, if he paid up, he would be left in debt to the tune of £500,000. However, the court decided that as a lump sum which already been agreed, it could not be changed, and a ‘natural price fluctuation’ did not justify changing the settlement. This ruling makes it clear that once a court order has been made, that is it. There is no going back except in exceptional circumstances. Contact: Damian.Baron@napthens.co.uk 01772 904270
6 in:brief SUMMER 2009
The Code is not legally binding and failure to follow its terms does not, in itself, make a person or organisation liable to legal proceedings. However, employment tribunals will take the Code into account when considering relevant cases. Tribunals can also adjust any awards by up to 25 per cent for unreasonable failure to follow the Code. The tribunal can also reduce any award of compensation by up to 25 per cent if an employee has unreasonably failed to follow the Code.
What the Code says The Code is split into three sections: an introduction, a section on discipline and another on grievances.
Introduction The Code provides guidance on best practice with an emphasis on fairness and transparency. The Code advises that organisations should set down written rules and procedures. The Code promotes mediation and stresses that many potential disciplinary or grievance issues can be resolved informally, which it recommends where possible. The introduction also says that where formal action is needed, the circumstances of the case will determine what action is reasonable or justified. Employment tribunals will take the size and resources of an employer into account when deciding on relevant cases, acknowledging that it may not always be practicable for all employers to take all of the steps in the Code.
• hold a meeting with the employee to discuss the problem • allow the employee to be accompanied at the meeting (in cases where the statutory right to be accompanied applies) • decide on appropriate action • provide employees with an opportunity to appeal.
Grievance Procedures The Code gives guidance on how grievances should be handled and the main points are: • let the employer know the nature of the grievance
Contact: Chris.Boyle@napthens.co.uk 01772 904279
• allow the employee to be accompanied at the meeting (in cases where the statutory right to be accompanied applies) • decide on appropriate action
The guidance on discipline applies to misconduct and/or poor performance and is organised under the following headings:
• allow the employee to take the grievance further if not resolved.
• inform the employee of the problem
Full and detailed guidance on dealing with disciplinary and grievance situations is contained in the Acas booklet, Discipline and grievances at work: the Acas guide.
• hold a meeting with the employee to discuss the grievance
Disciplinary Procedures
• establish the facts of each case
is advisable to review the procedures to ensure they encapsulate the provisions of the Code. If an organisation does not have written rules or procedures it is advisable that procedures and rules are developed in line with the guidance set out in the Code.
Application of Code by Employers It is unlikely that employers with effective procedures already in place will need to revise them. However, it
Chris Boyle
Diversification success for commercial property company A commercial property company which diversified in a bid to take on the recession is reporting its new venture has been a success. Henco International Ltd, based on the Whitehills business park in Blackpool, specialises in commercial property developments. Recently the company, which is a client of Napthens’ Commercial Property department, diversified into offering fully serviced office accommodation. Henco established Office Plan UK Ltd, which provides fully furnished, serviced offices, equipped with facilities including on-site data storage. The company also offers disaster recovery services. Almost immediately after launch, one of the companies involved in the multi-million-pound regeneration of Blackpool took office space in the building. Now Thompson
Contracts (Blackpool) Ltd, a shop fitting contractor which has worked with big names including food retailer KFC, is the latest client to have turned to Office Plan UK for its services. Chris Hibbert, a director at Henco, said: “Since we began Office Plan UK we have seen a very strong flow of enquiries coming in. There is a real demand for serviced office accommodation. “This has varied from companies involved in large scale development work that do not need to own their property as they will be in the area temporarily, to businesses affected by fire.
Office Plan UK’s Blackpool site
“Diversification has been a real success for Henco, and we have shown there is still life in the commercial property market despite the recession.”
He said: “Henco is a fantastic example of an astute business team which has used a knowledge of the commercial property sector to branch out.”
David Hill, head of Napthens’ Commercial Property team, advises Henco.
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a day in the life of / business speak / opinion: business speak:
A day in the life of… Kathryn Harwood
Who said this?
Kathryn heads up Napthens’ Wills & Estate Planning team, specialising in the preparation of Wills with particular emphasis on estate planning. She became a partner in 2007 after joining the firm in 2003 as an assistant solicitor. Kathryn is a member of the internationally recognised Society of Trust and Estate Practitioners (STEP) and an expert in inheritance tax planning. She is also a member of Solicitors for the Elderly which works to meet the unique needs of elderly clients. 7.20: I leave home ready to start the day, after making sure our three teenage sons are out of bed and hopefully ready to starts theirs. 8.15: I arrive at the office and record a fresh voice message for today before checking and responding to my emails. When the post arrives I read it for my entire Preston-based team. 10.00: My first client meeting is with the majority shareholder of a familymanaged business. He is concerned about the succession of the company if he was to die suddenly, in particular to ensure his wife will have an adequate income and their children will take over the business when they are ready for
the responsibility. We talk about structuring a Will that will allow the smooth transfer of the business through the generations. I additionally recommend a lasting power of attorney arrangement so there would be someone to manage the business on his and his family’s behalf if he became incapacitated. We also talk about inheritance tax (IHT) mitigation measures through life-time gifts to his children and I explain the benefits of setting up a trust to shelter the wealth that would be placed in the trust.
emotionally fragile. However, we see our client relationships as personal rather than transactional and it’s my job to look after the interests of this family. Their relief is almost palpable as they hand over various building society pass books and other documents that represent the business side of administering the estate.
12.15: After checking my emails, I put calls in to my teams in the other offices to catch up on any key issues and client work. I then go to a local Italian restaurant where a member of my team is having a birthday lunch.
3.00: I drive to Alston Hall near Longridge where a major local employer is holding a pre-retirement day for employees. My part in the programme is to deliver a seminar on Wills and estate planning. One of the most enjoyable aspects of my job is meeting people from different backgrounds with diverse issues and this group is especially interested in my talk and the discussion that follows.
1.30: The party mood vanishes as I return to the office for a meeting with a bereaved family. These situations are never easy - family members are understandably
5.00: I return to the office to do some preparatory work for another seminar tomorrow, this time on IHT and trusts for a group of independent financial advisers.
Someone in my team has kindly saved me a slice of cake from the birthday celebration. 5.45: I leave for home, arriving at 6.45 after a hasty trip to the supermarket and set about preparing our evening meal. Contact: Kathryn.Harwood@napthens.co.uk 01772 904359
Think you know your entrepreneurs from your tycoons? Have a read of the quotes below – who said what? : 1. “The music industry is a strange combination of having real and intangible assets: pop bands are brand names in themselves, and at a given stage in their careers their name alone can practically guarantee hit records.” A. Simon Cowell B. Richard Branson C. Pete Waterman
2. “The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow.” A. Rupert Murdoch B. Steve Case C. Bill Gates For a chance to win a bottle of bubbly, email your answers to Marketing@napthens.co.uk by July 31. The winner and answers will be revealed on August 3 at www.napthens.co.uk/inbrief
Kathryn Harwood
We look forward to hearing from you.
opinion piece: James Allison, corporate partner
How to survive the recession In my role at Napthens I meet a lot of hard-working, very successful, self-made business people. This has continued despite the recession. Lancashire seems well placed as a business environment to nurture entrepreneurs and help them survive the downturn. Is the county’s business community more willing to take risk than other areas; are there more VCs willing to put their money where their mouth is? I don’t think so. Lancashire is a county known for its hard work ethos, and it’s straight-talking - but also its can-do attitude. Many of the funds and investors here are willing to look holistically at those coming to them, and, above and beyond the business plan, are able to make a judgement call as to whether an individual – not
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just the company registration number - is likely to succeed. In this sense, personality is everything in Lancashire.
“Innovate, work hard and shout about your successes” My average clients are aged between 30 and 55, with the majority in their mid-40s. These are people who have lived through a downturn before, perhaps a few times, and taken the experience and let it shape them and make them better at conducting business.
Some are in niche sectors, which is important. For instance, I act for Publicana, a national pub management company which essentially steps into ailing venues and makes them a success. I also act for a national property repossession company – obviously sectors doing well at the moment. Of course there are many companies working hard to achieve success, but there are two things successful companies have in common – innovative marketing and pro-active market penetration. It is one thing to sit on and be proud of a brand that a business has built but it’s a completely different ball game to follow through and deliver that brand. It is often the approach to doing business that matters, rather than the business you are running. Look
at the differences between, for example, EasyJet and Ryanair, and the two larger-than-life characters who run the airlines with polar opposite approaches. Getting the final product or service to market has a huge impact on its success, and is a skill-set many Lancashire companies are particularly good at. In a recession it is often more important than ever to shout about the successes, and learn from the failures. With its down-to-earth attitude, Lancashire is still performing well and, frankly, long may this continue.
James Allison
Contact: James.Allison@napthens.co.uk 01772 904245
SUMMER 2009 in:brief 7
and finally:
Historic move sees Chorley office relocate Napthens’ Chorley office, with a history dating back to the 1920s, has closed its doors for the final time - with staff relocating to the offices next door!
Leading professional departs Napthens after four decades in the legal arena.
The old premises, at 12-16 St Thomas’s Road, was previously the office of Wallwork & Company until the firm joined with Napthens in 2007 in a historic merger.
John Eatough, commercial property partner, has decided it is time to enjoy his retirement after four decades with the firm. He will step down at the end of September.
Wallwork had been based at the address since the 1920s, but the decision was taken to move to newer, more modern offices to allow for future expansion. When the firm began to look for new premises, the neighbouring address at 10-12 St Thomas’s Road turned out to be the best option. John Crompton, partner at Napthens, who had also been a partner with Wallwork for more than 20 years, said: “We spent a considerable amount of time looking for suitable locations in the town, and by a lucky coincidence the office next door was the best candidate for us. We are delighted to remain in a central location serving the local community.
John waves goodbye to Napthens after 40 years
L-R Jan Gore, John Crompton and Clare Stanley move offices
“It has been a wrench for us to move out of these offices after so long in the building. Many of our staff worked there for many years, and the firm as a whole has acted for many generations of the same families in the town. “However, since the merger with Napthens we have been able to
offer a full service of both private and commercial client work, and the time has come to make the move to more appropriate facilities. “Work will continue uninterrupted as it has done for more than 90 years and we all look forward to welcoming clients to the new premises.”
The commercial property expert will not be leaving the legal profession behind completely, as he has agreed to provide ongoing support with some of the long-standing and important clients he has worked with over the years. John will be handing over the reigns to David Hill, head of department. John said: “I would like to thank everyone I have worked with over the years for their support and friendship.” Ian Leigh, chief executive, added: “On behalf of the partners and all
John Eatough
the team I’d like to express my sincere thanks to him for all his efforts and significant contribution to the firm. We wish him all the best for his retirement.”
Me and my… iPhone By Simon Ainsworth, head of private client division The Apple iPhone is becoming more accepted among the business community, after years dominated by the Blackberry. Not only is it good to look at but its technically brilliant.
and has become quite important in my professional life. Apart from getting emails, I can download PDF documents, which is necessary if I am on the train and need to read urgent client documents.
I’ve been using the iPhone for a while now, and it is everything I look for in a piece of technology to help me in my line of work. Its ease of use is unmatched by other ‘smart’ phones on the market and once you’ve got used to the touch screen input, it becomes very intuitive to operate.
The other beauty of the iPhone which has just benefited from a hardware and software upgrade - is its ability to sync with my office calendar so I no longer have to rely on checking paper diaries anymore.
In this day and age when phones are no longer phones but ‘devices’, this piece of kit is well thought out
Preston: 7 Winckley Square, Preston, PR1 3JD DX 714572 Preston 14 Tel: 01772 888 444 Fax: 01772 257 805 Email: Preston@napthens.co.uk
Blackburn: St Andrew’s House, Wellington Street (St John’s), Blackburn BB1 8DB DX 17964 Blackburn 1 Tel: 01254 667 733 Fax: 01254 681 166 Email: Blackburn@napthens.co.uk
Text messaging is becoming more actively used in my line of work. Increasingly, residential property clients now prefer to instruct us on matters this way and because texting is instantaneous, it is yet
Blackpool: 41-43 Springfield Road, Blackpool, FY1 1PZ DX 714350 Blackpool 5 Tel: 01253 622 305 Fax: 01253 295 591 Email: Blackpool@napthens.co.uk
Chorley: 10-12 St Thomas's Road, Chorley, PR7 1HR DX 18412 Chorley Tel: 0845 260 2111 Fax: 01257 260 096 Email: Chorley@napthens.co.uk
another way to speed up our work for them. Does it help me with my job? Yes, undoubtedly. One of the department's USPs is that we do things quickly but accurately and the iPhone helps me achieve this. My only gripe with the iPhone is that it doesn’t have the ability to read or change Microsoft Office files, such as Word, Excel or PowerPoint, which is a bit of an oversight as colleagues and contacts have this function on devices made by HTC. If Apple can look for a solution to this then it will really wipe out all the competition. Would I recommend one? Without a shadow of a doubt.
Contact: Simon.Ainsworth@napthens.co.uk 01772 904229
Simon Ainsworth
Longridge: 32 Berry Lane, Longridge, Preston PR3 3JJ DX 28153 Longridge Tel: 01772 783 672 Fax: 01772 784 020 Email: Longridge@napthens.co.uk
www.napthens.co.uk Napthens LLP, registered office: 7 Winckley Square, Preston, Lancashire PR1 3JD. Napthens LLP is a limited liability partnership registered in England and Wales: OC325775. The term “Partner” indicates a member of Napthens LLP who is not in partnership for the purpose of the Partnership Act 1890. A list of members is available from our registered office.
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