in:brief napthens.co.uk
SPRING 2011 ISSUE SIX
THE NEWSLETTER OF NAPTHENS SOLICITORS
Business Roundup Babs Murphy, chief executive of North & Western Lancashire Chamber of Commerce talks about the need for a reduction in red tape page 2
Share Options Napthens’ tax expert, Stephen Betts, looks at these tax-efficient vehicles for employees page 2
Engineering Growth
New powers for the ASA
Advertising regulations extended to internet The Advertising Standards Authority’s remit was recently extended to cover online marketing communications, increasing the organisation’s powers in relation to governing online marketing. The UK Code of Non-broadcast Advertising, Sales Promotion and Direct Marketing, known as the CAP Code, now applies in full to marketing messages online, including the rules relating to misleading advertising, social responsibility and the protection of children. The CAP Code already sets out rules which businesses and advertisers should follow, including guidelines concerning responsible advertising, and more specific rules relating to advertising products such as alcohol, gambling and financial products. It will now apply to businesses’ websites and any other external sites it may use for marketing purposes, including social media channels Facebook, YouTube and Twitter. From 2008, the ASA received over 4,500 complaints in relation to online
messages but now these guidelines will give consumers a vehicle to voice their concerns.
responsible for the content of comments made by users, and could face fines.
Andrew Clare, a partner in the Corporate department, commented: “Generally speaking the code covers marketing communications intended to sell a product or service but there are a variety of activities that it does not apply to, or are unlikely to apply to, including press releases and other public relations material.
Andrew added: “In the event that a business or advertiser does not comply with the CAP Code, the ASA has numerous sanctions available to it, in addition to a general power to demand that businesses remove any on-line marketing found to be in breach of the code.
“Fundamentally the new changes are primarily designed to offer consumers greater protection from website claims and advertising, and ensure that businesses remain legal, decent and honest in their marketing campaigns and advertisements, regardless of the medium used.” A huge issue that organisations should be aware of is that if they advertise on social networking sites, they will most likely be held
“These sanctions could have further impact as they’ll no doubt result in
adverse publicity, reduced access to online space, or in severe cases of non-compliance, referral to the Office of Fair Trading for action. “I would strongly advise organisations to seek advice on this issue and also to refer to the ASA’s website for further guidance.” www.asa.org.uk Contact: Andrew.Clare@napthens.co.uk 01254 686208
ASA’s sanctions: • Enhanced ‘name and shame’ policy on the ASA’s website • Removal of paid for search advertising which include a link to non compliant marketing communications • ASA placed advertisements advertising persistent non compliance with the CAP Code
Family businesses: Sector special page 4 & 5
in:brief profiles NIS Engineering as it looks to grow and create jobs page 3
Advice Commercial property expert, Richard Clithero, discusses breaking a lease page 6
Opinion Is customer service dead asks Teresa Deeney, Napthens’ Head of Marketing page 7
Wooden Spoon in:brief talks to property solicitor Martin Long about his work with the rugby charity page 8
welcome / round up / legal update:
in:brief
Business roundup
welcome
By Babs Murphy, chief executive, North & Western Lancashire Chamber of Commerce Looking back over the past 12 months it has been a difficult year for businesses. Although signs the economy is starting to pick up do give some hope for the future, we’re not out of the woods yet. We must now start challenging the Government to put business at the very heart of its thinking. with a focus on policies that will help the private sector get the economy back to growth.
Robert Richards, Litigation partner
Welcome to the first edition of in:brief for 2011. As with other editions we mix expert advice, thoughts, opinions and also showcase how well our clients are doing in uncertain times. I am often called upon for advice to help companies through difficult situations, but our feature on family businesses really shows how these types of organisations are forging ahead and making a valuable and significant contribution to the UK’s GDP. In this issue we have Babs Murphy, chief executive of the North & Western Lancashire Chamber of Commerce, putting forward her views about making the county business friendly – stating that the region still needs government support to remove barriers to growth. Our client spotlight looks at two of the region’s businesses which both have very healthy futures. Leonard Dews Jewellers is a name that is synonymous with quality and Michael Hyman is investing in his business to take it to a new level. Another business looking at expansion is Chorley-based engineers NIS Ltd which is confident of growth and creating job opportunities, despite the current state of the economy. in:brief’s legal updates come from colleagues in the Corporate and Litigation teams covering share incentives and property issues respectively. Simon Gledhill also provides important advice in relation to the division of assets and our Head of Marketing, Teresa Deeney, asks if customer service is really dead in the magazine’s opinion piece. We are always interested to hear your thoughts and if you would like any further information on any of the issues covered, please contact us. Thank you.
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Businesses know that there is a huge challenge of balancing the books and we accept public finances will not allow the same levels of taxpayers’ money to be spent in the next decade to tackle both long standing problems and new challenges resulting from the recession. Yet, if we are to create the economy that we want business to be successful in, then we cannot achieve this simply with spending cuts, increased taxes and poor services. So at a time when reduced publicsector demand will inevitably affect the private sector’s ability to create wealth and jobs, the Chamber believes it is all the more critical for government investment to be used to remove barriers to private sector growth. The Government must as a matter of urgency, take the
opportunity to target funding on particular projects the business community say will stimulate further private sector activity. This means specific transport upgrades, investment in our digital infrastructure, enhancement to the planning process and an increase in the budget for trade promotion. We actively support the view that innovation and job creation in the private sector is essential to rebuild and rebalance the economy, but would reiterate that it is critical that current employment regulatory burdens are reviewed and where appropriate removed from businesses. Businesses are counting on action to reduce the burdens created by employment regulation, which is preventing many small and mediumsized companies from taking on staff as the economy recovers. This would release creativity and imagination and encourage the creation of meaningful and sustainable jobs, which offer challenge and reward to individuals and make a real contribution to moving our economy forward. Without real action to reform the UK’s planning system, the billions of pounds of private sector investment
Babs Murphy
needed to improve Britain’s infrastructure will not materialise. Our member businesses say they need to see more action to support exporters – beginning with real help on trade credit insurance and trade finance, which are still stopping thousands of businesses from selling goods and services overseas. The North & Western Lancashire Chamber of Commerce is ready to “roll up its sleeves” to help deliver a positive landscape for businesses and support the local growth.
Lancashire has the talented entrepreneurs and business leaders to rise to the challenge of reinventing our economy, but they need to be supported by the Government, politicians and policy makers. The time is right to make sure a pro-business message is heard loud and clear. Contact: cexec@lancschamber.co.uk 01772 653000
Legal update For any business motivating and retaining key staff is an ongoing issue. One way of answering this is through an employee share option scheme. A share option enables the employee to have the right at a predetermined date to buy shares in the company, at a set price. The schemes are tax efficient as they can take the employee outside the scope of income tax in respect of the benefit they obtain from the shares and also the company can obtain corporation tax relief.
Stephen Betts
In addition, the schemes can be used in conjunction with performance conditions to motivate employees to achieve personal targets (e.g. sales targets) or company wide objectives such as increased profitability or turnover. Granting employees the option to purchase shares doesn’t usually have a tax effect but tax implications can arise when employees exercise the option. However, provided they’ve paid the market value of the shares at the date of grant and are using HM Revenue & Customs approved share options schemes, no liability to income tax arises even if the
shares value has increased significantly since the option was granted. Additionally, when the option is exercised, the company will be entitled to corporation tax relief, this broadly being based on the difference between the market value of the shares and the option exercise price, together with any payment made (if any) at the time the option was granted. The market value of shares under option is usually reduced to reflect the fact that ownership of those shares would only provide a minority interest in a company.
Employees will be liable to capital gains tax on any capital gain made when the shares are sold, although the tax rate is lower than the corresponding income tax rates. Furthermore, if the employee can qualify for Entrepreneur’s Relief, which they can do by holding five per cent of the shares in their employing company for 12 months, then the capital gains tax rate reduces to 10 per cent from 18 or 28 per cent. Contact: Stephen.Betts@napthens.co.uk 01772 904277
Approved share option schemes should be contrasted with the situation where employees are gifted shares - as income tax charges arise on the value of the gift; or where the shares are sold to the employee for a sum that is less than market value - where the income tax charge is based on the difference between the price paid for the shares and market value.
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talking heads / NIS Ltd / Hen House Ltd:
Talking Heads Will the wedding of Kate Middleton and Prince William give the tourism industry a much needed boost?
Mike Wilkinson
Mike Wilkinson, chief executive, Lancashire and Blackpool Tourist Board: The royal wedding without a doubt will boost tourism. Hotel bookings in London are already said to be up by 40 per cent and I am sure this will have a ripple effect throughout the country.
Wendy Hope
The worldwide media exposure and the anticipated most-watched event in TV history will have a lasting effect on tourism, especially as 2012 also has so much to offer potential visitors. On a local level, we are already contributing to overseas media
Martin Beardsworth
enquiries requesting Lancashire locations with royal links, castle and country estates or places of particular romantic interest. Pages of media copy and documentaries are being built around the royal wedding and the unparalleled heritage that the whole of the UK can offer. It’s a
win-win situation and one that we should exploit and enjoy to its fullest.
this was influenced by the royal engagement.
Wendy Hope, sales manager, Stanley House Hotel, Mellor: Nationally, I am sure it will have a huge impact with tourism, merchandising and broadcasting being best placed to benefit. Thousands will descend on London from all over the world so the capital’s leisure and tourism operators can look forward to a boost.
Martin Beardsworth, Head of Commercial Property: Figures from VisitBritain suggest monarchyrelated events already generate more than £500m in revenue for the UK tourism sector. I think this figure will increase enormously in the year of a royal wedding which will showcase the UK to a global audience. The wedding should attract tourists to the UK for the event itself and in the future and while here many will undoubtedly visit other areas of the country.
Regionally, with April 29 being given bank holiday status, here at Stanley House we expect to see our daytime restaurant trade benefit. As Stanley House is a luxury wedding venue, the Royal Wedding has helped drive demand and at our recent wedding fair we had more than 400 attendees and I believe
Poultry partnership
NIS engineers growth Specialist engineering business NIS Ltd is confident of generating impressive growth – and job opportunities, despite the bleak economic weather.
Peter Rayton, shareholder, and Andrew McLaughlan, financial controller at Hen House, founded in 1990, said the partnership will significantly enhance the capabilities of both companies and will offer exciting new market opportunities.
With a turnover of £12m and 120 staff, the business is launching a strategic development programme designed to increase revenue to £17m and create 30 extra jobs in the next three years.
The business at Champ Chicken has been passed on by former owners, John Singleton and Alan Orritt, to the next generation of their families, Nicola Singleton and Terence Orritt.
“Our plans are ambitious but there’s no point in being timid and we are encouraged by a marked increase in spending on capital projects in the manufacturing sector,” explained managing director Richard Penrose.
Andrew McLaughlan of Hen House added: “We are very excited by this partnership which perfectly complements the attributes of each business and will allow the group to further develop long term partnerships with major food companies.”
“Manufacturers have been holding back for the last 18 months to see what happens to the financial markets, but many have now decided that they must invest in capital equipment if they are to remain competitive.
Founded more than 25 years ago, NIS Ltd is part of NIS Group, which includes NSG Environmental, Petrie Technologies, and Hold Engineering. The group has a turnover of £25m and employs 250 people at production units in Chorley and Cumbria, and at offices in Sellafield and Aldermaston. A
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Keith Melling, Head of the Corporate department, has led a team advising a Preston meat and poultry business on its partnership with a food processing company. Hen House (Wholesale) Ltd, a wholesale supplier of meat and poultry products, has entered into a joint venture with chicken processing business The Champ Chicken Company Ltd of Longton, near Preston.
The Chorley-based company provides purpose-built equipment and integrated engineering systems for customers in sectors including nuclear, security, aerospace, industrial, medical and food.
“In addition, opportunities are emerging in the green energy and nuclear new-build sectors, and we believe our growth strategy is realistic and achievable.”
Experience of the last royal wedding – back in 1981 – shows the country needs no encouragement to let its hair down and Blackpool, as the nation’s favourite resort, is wellplaced to maximise the benefits.
NIS is set to expand
manufacturing facility has also been set up in China. “Our people are the key asset that sets us apart in the market place,” said Richard. “We employ highly adaptable, innovative individuals who can add value by transferring learning from one sector to another, for example nuclear to manufacturing, or vice versa. “We provide guaranteed quality and certainty of delivery, underpinned by multiple points of contact with our
clients. Sometimes clients have a notion of what they want and we give them clarity and focus through our deep knowledge and wideranging experience.” Among the challenges facing NIS Ltd is recruiting quality people from an education system that does not deliver budding engineers in sufficient quantities. To counter this, NIS Ltd has launched an in-house training scheme for graduates and
apprentices, as well as appointing 14 ambassadors to take part in the Government’s programme to boost careers related to STEM (science, technology, engineering and maths) in schools and colleges. “We are heavily committed to investing in the development of talented engineers, because they represent the future prosperity of our business in a very direct sense,” added Richard. www.nisltd.com
The Napthens team included Mike Fetherstone, Commercial Property partner.
Contact us: We welcome your feedback and comments on any of the articles in this issue of in:brief. Feel free to drop us a line at Marketing@napthens.co.uk or visit our in:brief page on our website, 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. Thanks
SPRING 2011 in:brief 3
sector focus: family business
Family values make business sense Family businesses are seen by some as outmoded institutions, increasingly overshadowed by bigger corporate competitors. While some family businesses may fit this description, it is generally misleading and misinformed. The sector provides jobs for one in three people in the UK and accounts for 30 per cent of the country’s GDP. The best family businesses are some of the most successful companies in the land, such as construction equipment business JCB, North West bakery Warburtons and Liverpool-based shipping business, Bibby Line. “Family firms may be prudent with their investments and are often reluctant to borrow money, but their ability to make long-term plans, rather than short-term gains, has helped them to weather the recent financial storms where other business types have gone under,” said Grant Gordon, director general of the Institute for Family Business (IFB). “Family businesses are rightly proud of maintaining their values and sense of stewardship through the generations, but there is also a strong tradition of innovation and entrepreneurship within family businesses.” This theme is taken up by Keith Melling, head of the Corporate team at Napthens: “As family businesses are in the most part SMEs, they tend to be very close to their customers and suppliers as they realise that if they don’t perform
then they can’t maintain or improve revenue streams. “These types of businesses need to innovate to stay ahead as they are often the smaller player in a much more competitive environment,” said Keith. The most progressive family firms recognise the need to constantly
said Ian Facer, who manages AS Facer, a central Lancashire-based pharmacy business founded by his father, Alan. “If traditional means operating in an ethical manner with an emphasis on customer service and a personal touch, then such attributes are an advantage. Marry them with sound management, innovation and an
“There is definitely an opportunity for family businesses to appeal to consumers in a way that big organisations are unable to” innovate and are also a breeding ground for entrepreneurs, often supporting family members who want to start up their own businesses. Indeed, the entrepreneurial roots of most family businesses are often overlooked. “There are many family-run businesses that have strong management teams and are very forward-thinking in their outlook,”
entrepreneurial spirit and the business should be successful,” added Ian. When it comes to locking horns with the big corporate chains, family businesses may not be able to compete on volume or price, but they can succeed by offering added value, enhanced customer experience and distinctive products and services.
“There is definitely an opportunity for family businesses to appeal to consumers in a way that big organisations are unable to,” commented Grant Gordon. “For instance in a YouGov survey conducted last year almost two thirds of the general public said family businesses provide better customer service than other types of business – respondents also said that good customer service made a business more trustworthy.”
One family business that has set itself apart from its gigantic competitors is Westmorland Services at Tebay, which was founded 38 years ago by the father of current chief executive, Sarah Dunning. The £36m turnover business comprises Rheged conference and leisure centre, Junction 38 Services, the Westmorland Hotel and Tebay Services, hailed as a ‘gastro service station’ because of the artisan quality of its food products. “We are relative minnows and operate in stark contrast to our much bigger competitors,” said Sarah, who won the national Institute of Directors family business director of the year award in 2010.
Grant Gordon
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Keith Melling
Guy Topping
Sarah Dunning
“We don’t have any franchises, so people who want Costa coffee or a Burger King won’t come here. The people who do are looking for a different set of values – local sourcing and artisan produce that is embedded in local culture. We celebrate where we are in Cumbria with farm shops, a super
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sector focus: family business
The new cafe at Tebay Services
delis, and lamb and beef fresh from the family farm.” Sarah believes the success of any family or independent business is determined by its ability to closely align what it offers with the requirements of its customer base – which rarely stay the same for very long. “It’s crucially important that a business understands its identity and connects with its particular market, which means constantly developing in really creative and innovative ways. We have a strong set of family-based values, but tradition and progress is a question of reconciliation, rather than tension or conflict.” Of course all businesses are facing tough times in the current economic climate, though independent and family businesses are often hit disproportionately harder than larger corporates. “For all smaller businesses personal and staff development is important, as is the ability to access finance to
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allow investment and growth,” said Ian Facer. “A significant problem in my experience is legislation and bureaucracy which is often developed for larger organisations and is unworkable or much more difficult for smaller organisations to cope with.” The sheer complexity of running a family business in the digital era is an issue with major implications for succession, according to Guy Topping, managing director of Barton Grange, which operates garden centres at Brock near Preston and Bolton, as well as the Barton Grange Hotel. “Not so long ago family businesses could pass skills on to the next generation without any difficulty,” said Guy. “Nowadays running a business is a much more complex operation, with greater regulatory compliance, online trading, social networking and a range of other issues. “Also, attitudes have changed in recent years. People used to be expected to go into the family
business, but views have changed and owners only encourage their children to enter the business if it’s the right thing for them. I agree with this. My father left it up to me to decide what I wanted to do and didn’t invite me to join the business until I was 25. I will do the same with my children because people should do what they want to do, what they are good at and what they enjoy.” The importance of succession planning cannot be overstated for family businesses looking to continue the traditions of their founders. “Whether you write succession issues into a legally binding document or draw up a charter of principles, there must be a candid discussion about who has the appetite and ability to drive the business forward,” commented Keith Melling. “This is particularly challenging when businesses are into second or third generation ownership, with a potentially fragmented shareholder base.”
Family-related personality clashes or tensions between shareholders can create challenges for family businesses, especially in the drive to innovate. “Inevitably, family businesses risk being driven by non-business factors and relationships,” said Keith. “It’s difficult to fall out with a co-director on a Friday and have dinner with them on Sunday.” This theme is picked up by Simon Joyce, branch manager of Handelsbanken in Preston, who believes there is value in diversity. “An effective board is made up of individuals with different views. If you have a business headed by a patriarch or matriarch, with children who just say ‘yes, mum’ or ‘yes, dad’, there could be potential succession issues,” said Simon. “There could be some debate between the parent at the head of the business and children who have worked outside the firm and then returned, but this isn’t a bad thing as long as there is openness and a willingness to absorb new ideas
without tearing away the very fabric of the business,” added Simon. What, then, does the future hold for family businesses? “They will always be there, but I think the complex nature of modern commerce means it is increasingly difficult to pass a business onto the next generation, so the number of second, third and fourth generation family businesses may dwindle slightly,” said Guy Topping. “But there will always be new family businesses coming to the fore.” Grant Gordon remains resolutely upbeat: “We’re very optimistic about the future of the family business sector. Good stewardship is already part of the fabric of the most progressive family firms and those values are likely to give the sector a competitive advantage as issues of corporate responsibility and sustainability become more prominent.”
SPRING 2011 in:brief 5
ask the expert / breaking a lease / Leonard Dews: ask the expert:
Division of assests Simon heads up the Family department at Napthens. He has specialised in family law since 1988 and is a member of the Law Society Children Panel and the Advanced Family Law Panel. Q: My wife and I divorced six months ago and agreed how the proceeds of our property sale and other assets would be divided. Should it be recorded in writing? A: It is crucially important that the agreement is recorded with the Court. The terms of the agreement should be detailed in a Consent Order and this document will be submitted to the Court to record the agreement reached. If the agreement reached is not recorded within a Consent Order it will be open to either party in future to make an application for further financial provision to be made for them by their spouse. This could take the form of a transfer of a property, a lump sum, a regular payment by way of spousal maintenance or a pension sharing order. These potential claims will remain live unless a Consent Order is submitted to the Court stating that an agreement has been reached which is accepted in full and final settlement of all claims. This is of particular relevance in instances where one party’s financial circumstances change following the divorce, for example on receipt of an inheritance. Although the divorced couple may have informally agreed a division of their assets at the time of their separation, without a Consent Order in place, it may be possible for further claims to be made. If the agreement reached at the time of separation is not recorded within a Consent Order then further financial claims may be made even years after a divorce. A Consent Order protects both parties from future claims. It is important to seek specialist legal advice from a family lawyer at the time of separation to ensure that the agreement reached with your former spouse will be binding. Contact: Head of Family department Simon.Gledhill@napthens.co.uk 01253 754871
Breaking a lease Commercial Property solicitor Richard Clithero looks at a trend occurring in the current commercial property market. A tenant and sometimes the landlord, may have an option to break a lease part way through the term, however, the serving of a break notice can have unintended consequences. Serving a break notice will end the lease on a specified date and once served it can’t be withdrawn unilaterally. However, even if both parties agree to treat a break notice as withdrawn, the existing lease is still considered to end on the break date, after which a new lease will be implied. There will be many situations where this has occurred and both parties have carried on as normal without understanding the consequences which may include: • Where a lease has been contracted out of the security of tenure provisions of the Landlord and Tenant Act 1954 and is terminated by a break notice, a new lease granted by implication following the accepted withdrawal of the break notice would not be “contracted out” and therefore
6 in:brief SPRING 2011
• Case law suggests any guarantors under the terms of the existing lease are not carried over to a new implied lease after the agreed withdrawal of a break notice. • In the case of an “old lease” granted before the Landlord and Tenant Covenants Act 1995 came into force, any new lease created by implication would be a “new lease” and therefore the landlord could lose the benefit of previous tenant covenants. • As acceptance of the withdrawal of a break notice effectively results in the grant of a new lease after the break date, it could cause a landlord to be in breach of a requirement to obtain consent to lease from a superior landlord or mortgagee. It could also terminate any underleases that may have been granted and new underleases created by implication will have similar consequences.
The situation could arguably be avoided in the case of a conditional tenant’s break by the parties agreeing to an acknowledgment the tenant didn’t comply with the break conditions and the break didn’t take effect. There’s clearly some risk in taking this approach. From a landlord’s point of view, if the landlord is agreeable to the withdrawal of any break notice this should only be done by way of a new express lease, dealing with issues such as security of tenure, security for the tenant and consent. This situation tends to arise in the case of a tenant’s break option (it can occur in the case of landlord’s notices too) where a tenant threatens a break notice to renegotiate the lease terms knowing the landlord might negotiate rather than be faced with an empty property. However, there might not be enough time to fully negotiate and document changes prior to the notice deadline, leaving the tenant
Richard Clithero
pressured into actually serving the break notice. Landlords and tenants should realise the significance of serving a break notice, think carefully before doing so and plan well in advance. Contact: Richard.Clithero@napthens.co.uk 01254 686222
A gem of a business Leonard Dews is a name that has been long regarded as one of the region’s most prestigious boutique jewellery groups. Leonard Dews traces its Lancashire roots back as far as 1877, before the business was acquired by the Hyman family in 1959. The business is now owned by Michael Hyman who took the helm in 1976 at the age of just 26 following his father’s death. His father started their jewellery business in 1923 on the Isle of Man, bringing it to Blackpool in 1925 where he opened his first shop as ‘Hymans’ in 1927 on the corner where they still trade from today. The group now offers clients luxury diamond rings, high-end fashion and prestigious brands including Patek Philippe, Cartier, Breitling, TAG Heuer, Omega, Chopard and Pandora. It has recently embarked on an expansion plan by doubling its flagship store which sits on the corner of Market Street and Church Street, featuring a 120ft frontage and floorspace of 1200 sq ft. The £750,000 investment in the store, which included the acquisition of three shops from Lytham Schools Charity has helped secure Leonard Dews the prestigious Rolex Watch agency.
Simon Gledhill
the tenant could acquire security of tenure.
It could have been quite possible though for the name to have disappeared from the high street if Michael had decided to focus on his
original career ambitions.“I must have had one of the shortest accountancy careers in history” said Michael. “I started at Coupe Badman in Clifton Street on Monday October 7 in 1968 at 8.30am and walked out at 1.00pm. I realised I wasn’t cut out for a life of staring at numbers. I wanted to be involved in growing a business – really getting involved and making something work. This is something I am passionate about.” It was this decision that led him to work alongside his father to develop the jewellery business. “For someone who didn’t want to work with numbers all day it was quite ironic that I spent my first day adding dockets up but it was the best way to learn about how the business worked.” His knowledge of the jewellery trade was enhanced through intensive courses in Switzerland and Ashridge alongside shadowing diamond dealers in London. “The more I learnt about the industry, the more I could bring to our family operation but it wasn’t all smiles as I would sometimes be challenging the status quo to introduce new ways of working. However, we brought in new structures, streamlined the business and developed a strong platform for growth.”
Michael Hyman with prestigious brand, Patek Philippe
Michael has built Leonard Dews into a successful, £5m operation undeterred by four armed raids, including a devastating gunpoint raid at the original Market Street branch in 1990. It now employs 28 staff and owns additional premises on Clifton Street in Lytham and Wilkins in Douglas on the Isle of Man, which is complemented by a recently opened dedicated Pandora store. Michael said: “I want to grow the business but having more shops is not the answer – it’s about reaching
out to new customers and introducing our service to them. Buying a piece of jewellery or a watch is such an emotive purchase as it has a great deal of sentimental value. It’s important we look after our customers.” Next year Michael aims to refit the Isle of Man branch. “I want to keep investing - ensuring that all the brands we sell feel safe in the knowledge that we are focused on driving the business forward.” www.leonarddews.co.uk
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a day in the life of / Canopies UK / opinion:
A day in the life of… Chris Boyle
Corporate advice for Canopies UK
Chris is Head of Napthens' Employment law team, advising businesses ranging from plcs to owner-managed businesses on HR and Employment Tribunal issues.
The Corporate team at Napthens has advised on the sale of one of the UK’s leading manufacturers and suppliers of canopies, carports and door canopies.
Chris Boyle
7.40: Jump in the car and off to work, tuning into Radio 5 Live – I enjoy the mix of news and sport. 8.00: After arriving at our Preston office, I deal with my emails and look through my diary before discussing the day’s activities with the team and my PA, Vicky McEnaney. I will be out of the office for much of today but having an iPhone is a godsend as I can deal
with routine emails and calls while on the move.
phone messages, and I make sure anything urgent is dealt with.
10.00: I attend the Employment Tribunal in Manchester for a prehearing review of a race discrimination claim against a corporate client. The claimant was dismissed for gross misconduct, but alleges he was sacked on racial grounds. After evidence is given and the claimant and client are crossexamined, the judge rules the claim does not have reasonable grounds for success and dismisses it.
2.00: I meet a client to discuss potential action to enforce a restrictive covenant relating to a former employee. The individual went to work for a competitor and has been approaching my client’s customers, despite having signed a contract stipulating that he would not do this for 12 months. I advise the client on the pros and cons of a potential action and we decide we need further documentary evidence before we reach a decision. My client agrees and will send the details on as a matter of urgency.
12.00: I have a debrief meeting with the client who tells me he is hugely relieved at the outcome. If the judge had ruled the other way, a full Tribunal hearing would have been extremely costly, eaten up enormous amounts of management time, and may have had adverse implications for the company’s reputation. 1.30: I grab a sandwich as I hurry back to the office for a short catchup meeting with Vicky. There is the usual assortment of queries and
4.30: Another Employment Tribunal claim has been made against a client. He is very concerned when he calls me, but is much calmer when I detail the process and explain how we will manage it. I ask my colleague Kimberley Barrett, to look into the matter, and keep me updated on developments. 5.00: I gather the team together for one of our regular marketing
meetings to discuss plans for activities such as our upcoming seminars and attendance at networking events. One item on the agenda is the launch of our inhouse ‘How To’ HR workshops. We have a busy schedule ahead of us, but marketing our services and getting involved in the local business community is an important part of our role and must be fitted around our client work. 6.00: I check my diary for the next day, make a to-do list, and check that the files I need are in place ready to start work first thing tomorrow. 7.00: I arrive home and have something to eat with my wife Rachel before sitting down to watch a football match on the TV. My team, Blackburn Rovers, are playing at home and should win, but with Rovers, you never really know what’s going to happen. Contact: Chris.Boyle@napthens.co.uk 01772 904279
Is Customer Service Dead? In a world where products and services can be bought at the press of a button, are we now living in an era when customer service is dead?
Teresa Deeney Teresa Deeney
Surely not! says Teresa Deeney, Napthens’ Head of Marketing. We can all recite examples of bad service, such as trying to talk to a
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But there is another side. Consider how online purchasing for example, hands power to the customer – easy access, easy to compare, easier to switch. Even where price is the main concern, when there is real competition, those who can’t provide adequate service will struggle to compete. When buying products or services, and in our case, commercial or personal legal advice, a concern for many is service quality. For some, the relationship with advisers is important - trusting their expertise
and understanding of clients’ needs. Factors that can make a real difference to a client’s experience can be the basics – being approachable, accessible, returning calls, regular communication and a fundamental issue of being able to build a relationship with someone you like. At Napthens we regularly review our service delivery. In our latest monthly survey we were delighted that 98 per cent of respondents said they would recommend our services – a significant driver in relation to the success of our business. For any business, an ability to understand customers’ issues and provide the right service to meet their needs is vital. If done well, our ability to embrace new ways of doing business can be harnessed to enhance what we
Corporate partner Andrew Clare led a team advising Mr Eastwood in the sale of his 100 per cent shareholding in the business to Rucca Holdings Ltd, also based in Darwen, for an undisclosed sum. The buyout team, which has acquired the business through Rucca Holdings, is made up of the existing management team led by Canopies UK’s managing director Elaine Morris. Andrew was assisted by corporate assistant Christine Williams and Kathryn Harwood, Head of the firm’s Wills and Estate Planning Department.
opinion piece: Teresa Deeney, Head of Marketing
company about a problem and finding ourselves lost in endless automated telephone systems! Perhaps the more we move to online, process driven business, with little or no need for human contact, the more danger there is of poor customer care?
Canopies UK, Darwen, undertakes large scale supply contracts in association with housing developers and the public sector, including schools and colleges. The company was established in 1990 by Russell Eastwood.
He said: "It was a pleasure to work with Russell on this transaction. He and the management team have spent the last 21 years developing a real success story and, while I am sure he will have mixed feelings about retiring, he will do so in the knowledge that the business is in very safe hands.”
offer clients and allow for more tailored services. Clients can for example, receive personal advice from specialist advisers, while benefiting from instant access, efficient, online conveyancing or automated debt recovery, managed by professionals. While the future may bring a more distant approach to service for some, for many businesses, using technology effectively and providing information at a ‘button press’ should not replace customer care but rather add real value to the customer’s experience. Contact: Teresa.Deeney@napthens.co.uk 01772 904391
Andrew Clare
Contact: Andrew.Clare@napthens.co.uk 01254 686208
SPRING 2011 in:brief 7
and finally:
Supporting local hospice Derian House Children’s Hospice, has been chosen as Napthens’ charity, which it will be supporting through a range of fundraising events during 2011.
“Derian House carries out amazing work for young people, and we are enjoying supporting the organisation through a variety of fundraising activities this year.”
Derian House, in Astley Village near Chorley, cares for seriously and terminally ill children, and relies on donations to provide care and support for life threatened children and their families.
Susie Poppitt, fundraising manager for Derian House, added: “We’re delighted Napthens has chosen us as their charity, and will look forward to liaising with their staff on all their events in support of Derian House throughout the year.”
In 2010, Napthens supported the Rosemere Cancer Foundation raising funds of £9,400 to help sufferers of cancer in the region. Kay Jackson-Leigh, Napthens’ Head of HR said: “Supporting local charities is a very important part of our role in the community for everyone at Napthens. Megan, aged 14, pictured with James, also 14, Martin Long and Head Teacher Catherine Dellow at Red Marsh School
Law firm of the year
Me and my… Wooden Spoon Martin Long is the first to admit he was never rugby’s most gifted player – though there are few who could match him for enthusiasm and commitment. Martin, a partner in Napthens’ Commercial Property team, hung up his boots several years ago, but continues to harness his drive and determination for the benefit of the game’s children’s charity, Wooden Spoon. Founded in 1983, Wooden Spoon, the children’s charity of rugby, is dedicated to helping disadvantaged youngsters to live happier, richer lives. After 12 years on the charity’s Lancashire West Coast Committee, Martin became its chairman last year – a role he relishes. “I was always the most unlikely looking rugby player, but way back in 1980 I was invited to turn up for a third team game at Thornton Cleveleys RUFC by a fellow trainee solicitor, Martin Windle, who is now a fellow partner at Napthens,” explained Martin. “I became hooked on the game and went on to captain Thornton’s Third XV for nearly 15 years. When I had to call it a day through injury at the age of 41, I felt that I was still improving, if only because I had such a long way to go!” Having gained so much from the
Preston: 7 Winckley Square, Preston, PR1 3JD DX 714572 Preston 14 Tel: 01772 888 444 Fax: 01772 257 805 Email: Preston@napthens.co.uk
game, Martin wanted to put something back and joined the local committee of Wooden Spoon because it was a rugby-based charity with the aim of helping physically, mentally and socially disadvantaged children and young people. One of the biggest responsibilities for Martin and his committee is the organising of the charity’s annual Wooden Spoon Luncheon, which takes place at the De Vere Hotel in Blackpool every November. “The luncheon has become one of the Fylde coast’s premier social events, selling out every year with nearly 400 guests. Last year it raised £17,000 in a single afternoon,” said Martin. “In addition we organise an annual golf day at Knott End Golf Club in June, so we’re kept busy all year round.”
play equipment at Westbury House, Blackpool. In addition to bricks and mortar projects, Wooden Spoon has also become involved in communitybased activities. “Using rugby’s unique ethos we introduce youngsters to the game and support them into education, employment and volunteering. These programmes reduce crime and anti-social behaviour and help disadvantaged children to turn their lives around.” said Martin. “A highlight of my many years with Wooden Spoon was attending the opening of the Legacy Rainbow House by the Princess Royal and the opportunity to see what they do for some seriously disabled children. It makes the time you spend fundraising seem all the more worthwhile and acts as a powerful spur to keep going,” added Martin.
Rob Dobson, Andrew Clare, Victoria Bromiley and Keith Melling collect the award
Napthens has been crowned as the Corporate Law Firm of the Year at one of the region’s most coveted award ceremonies. The firm scooped the top prize at the Lancashire Dealmakers 2011 awards, run by regional business magazine Insider. Keith Melling, partner and Head of Corporate, collected the award which saw Napthens beat regional rivals thanks to its work on corporate transactions including the rescue of Clitheroe textile company James Thornber and acquisition work for Eric Wright Group Ltd.
A deal in which Napthens played a key role – the MBO of James Thornber – was also recognised with an award of its own, for Turnaround/Rescue Deal of the Year. Keith added: “The whole Corporate team at Napthens has worked hard to achieve good results for our clients in what has been a very difficult 12 months. “Lancashire’s important place in the regional economy has been recognised by these awards, highlighting that businesses do not need to go to Manchester to receive specialist corporate law advice.”
On the move
Since the Lancashire West Coast Committee was formed in 1999, its members have raised over £200,000. This has been invested in local projects such as the hydrotherapy pool at Red Marsh School in Thornton Cleveleys, facilities at the Legacy Rainbow House near Ormskirk, and specialist
Contact: Martin.Long@napthens.co.uk 01253 754870
From 23 May the new address will be: Libra House, Cropper Close, Whitehills Business Park, Blackpool FY4 5PU.
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
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
For more information about Wooden Spoon, visit www.woodenspoon.com
Napthens’ Blackpool office will move to the Whitehills Business Park, off junction 4 of the M55 in May. The new, three storey, 9,000 sq ft facility will give the firm opportunity to further expand its services into the Fylde while retaining its historic Blackpool links. Chief executive Ian Leigh said the move would help improve access for clients across the Fylde Coast and act as a platform for future growth in the area.
napthens.co.uk www.n 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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