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in:brief napthens.co.uk
WINTER 2011 ISSUE EIGHT
THE NEWSLETTER OF NAPTHENS SOLICITORS
Business Roundup Bede Mullen, director of UCLan’s Knowledge Transfer Service talks about why he is positive about the next year page 2
Business Structures Rob Dobson, Corporate partner looks at the best structure for your business page 2 Rob Dobson, Andrew Clare, Victoria Bromiley and Head of Corporate, Keith Melling pictured here representing the Napthens Corporate team winning the Corporate Law Firm of the Year award at NW Insider’s dealmaker awards earlier this year.
Region’s deal-doers can handle tough times Lancashire’s corporate deal-makers are developing significant opportunities, despite global conditions and there are encouraging levels of activity. This is the view of Andrew Clare, partner in Napthens’ Corporate team, who believes the regional corporate transactions sector has the resilience and enterprising approach to meet the challenges ahead. “Despite difficult conditions, a number of sectors are outperforming expectations, for example, engineering businesses that are capable of adapting and producing high quality products,” said Andrew. “One interesting trend we have seen over the past year is that of purchasers looking for different avenues of funding for deals. Alongside traditional sources of funding from banks, businesses are increasingly turning to alternatives such as venture capitalists and private investors.” Andrew’s view is well supported by the activity of the The North West Fund. Since its launch in 2010 it has proved to be a popular source of finance as it has already made in excess of 30 investments and helped attract a further £7m of co-investment from banks and other investors. Andrew added. “Investors and purchasers will also, regardless
of economic conditions, pay a premium for well run businesses that have a good management team and a strong product or client base. Demand for these types of businesses is still strong and probably always will be. “Owner managed and family run businesses often fall into this category. As we have seen with many of our clients, they have a planned, considered approach to growth and have expanded at a rate that suits them. Without the external pressures of investors, these types of businesses aren’t often highly leveraged. Conversely, we have seen a number of OMBs and family run businesses taking the lead in acquisitions and becoming more proactive in looking at deals. “We have also seen a surge in the number of overseas purchasers making acquisitions to grow market presence.” Overall 2011 has been a busy year for Napthens on the deals front, This is borne out by a string of major deals that the Corporate team has advised on, including the £30 million management buyout of North West ICT provider, Intrinsic Technology
and the refinancing of Lancashire and London-based property and investment group Tarncourt Group Holdings LLP. In addition, Napthens’ Corporate team provided legal advice on the the multi-million-pound sale of Barrow in Furness-based bookmakers Chas Kendall Ltd to betting giant Gala Coral Group, as well as the sale of laboratory research specialist Manchester Organics to Mumbai listed company Navin Fluorine International Ltd. So what are the main issues businesses need to be aware of as we approach 2012? “Deals will still be done but probably with a bit more caution, particularly as the wider economy keeps a careful eye on what is happening in the eurozone. That said, there are always opportunities and we’ll continue to be at the forefront of advising clients that are looking to make strategic acquisitions and boost their businesses.” Contact: Andrew.Clare@napthens.co.uk 01254 686208
red tape revolution?: Special report page 4 & 5
Napthens’ Corporate team has worked on a range of impressive transactions. These are just some of the headline deals completed in recent months. Sale of Intrinsic Technology Ltd to RJD Partners. Acting for shareholders Sale of TK Holdings Ltd and Beneast Training Ltd to General Physics (UK) Ltd. Acting for shareholders Sale of Chas Kendall (Turf Accountant) Ltd to Coral Racing Ltd. Acting for shareholders
Booking a Trend in:brief profiles holiday accommodation firm, IknowUK as it expands page 3
Advice Employment solicitor, Stacey Barlow examines changes to employment law page 6
Opinion The Localism Bill – empowerment or bewilderment? Commercial Property solicitor, Philip Wright looks at the proposed Bill page 7
Management Buy Out of Vickers Electronics (Holdings) Ltd. Acting for management Sale of Manchester Organics Limited to Navine Fluorine International Ltd. Acting for shareholders Acquisition of the entire issued share capital of Safehands Network Ltd by Villa Nurseries Ltd. Acting for purchaser Acquisition of PAR Preston Ltd, PAR Manchester Ltd and PAR Yorkshire Ltd by Plastic and Rubber Group Ltd. Acting for purchaser Tarncourt Group Holdings LLP refinancing. Acting for the company Ludlow Insurance Services Ltd acquisition of Chartwell Financial Management Ltd. Acting for the purchaser
Cooking up a Storm in:brief catches up with Head of Licensing, Malcolm Ireland, about his passion for food page 8
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welcome / round up / legal update:
in:brief
Business roundup
welcome
By Bede Mullen, director of Knowledge Transfer, University of Central Lancashire The nights have well and truly drawn in and as we look to the end of the year, it has been a roller coaster 12 months for the global economy. Predictions at the start of 2011 were mixed, with people either forecasting signs of growth, or the possibility of a double dip.
Kathryn Harwood Head of Wills & Estate Planning
Welcome to 2011’s final in:brief. In this edition, we highlight the activities of two growing businesses – Iknow-UK, an online holiday accommodation business expanding in a testing economy and, interestingly, Builders Supplies West Coast Ltd, a company doing well in a sector which is facing a great deal of pressure. I highlight these articles because I dare say 2011 has been a testing year for many of us in business, and the signs from the Bank of England point to 2012 being just as difficult. In this environment it is refreshing to read that our Corporate department is feeling optimistic about the next 12 months and that there is still an appetite out there for doing deals. What is apparent, though, is a strong message for the coalition Government that if we could remove or streamline red tape, then our economy might be better positioned for growth. Readers of this edition will also find our experts providing useful advice. Stacey Barlow looks at recent employment law changes and Rob Dobson discusses the best corporate structure for your business.
I think the reality was somewhere in the middle. The economy has been tough, there is no doubting that, but I still think Lancashire has plenty to look back and be positive about. Indeed, at UCLan we are seeing some real success stories, not just in the start-up businesses we deal with on a day-to-day basis, but in many of the local, regional and national businesses we share knowledge with. It’s one of our objectives. To share knowledge with the business community, help them innovate and to develop an all-important competitive edge. We do this through many different ways. Just one example is our innovation vouchers scheme which offers small grants to encourage business exploitation of the University’s knowledge base. UCLan has delivered more vouchers than any other university in the North West, working with over 170 companies to a value of £1m, and
Businesses are under more pressure than ever and that’s why sharing knowledge and taking advantage of support services open to them is vital. You don’t have to look very far to see big businesses having to make major decisions to protect their future, but as an economy, if we don’t drive change, we could be in for more tough times ahead. That’s why we as a university are doing all we can to support businesses across the UK and helping graduates enter the world of work fully prepared to be successful. It’s clear that certain industries do decline and we need to look at supporting the development of the next generation of industries. It’s about building industries around a very high level of knowledge and that’s something the Government is investing in with the recent Regional Growth Fund announcement. If you take a look at some of the successful projects, it’s clear that the Government is rewarding innovation. Just one example is the Growing Autonomous System Mission Management Applications (GAMMA) project.
Bede Mullen
It’s a next generation supply chain development programme led by the North West Aerospace Alliance in partnership with BAE Systems, which will build on the skill base of the region and help ensure it stays at the cutting edge of technology and manufacture. I recently saw an interesting survey from Yorkshire Bank that highlighted 25 per cent of Lancashire firms will be investing in new product development to encourage growth and innovation in the year ahead. In the same survey, 41 per cent of the firms also stated that they would be investing at least 5 per cent of
their annual turnover in growth strategies such as new staff and developing new products and services in the next twelve months. This is exactly why Lancashire should feel positive about the future and why I personally feel strongly that we will see growth in key sectors to get the economy back on track, and businesses will post improved results, with help from UCLan of course. Contact BMullen@uclan.ac.uk 01772 892245
Legal update Robert Dobson is a partner in the Corporate department. Here he looks at corporate vehicles and the structure that you can use for your business. Here we take a look at two of these vehicles, which we find clients increasingly interested in: Private Limited Company: Treated as a separate corporate body which gives its members’ financial protection and means that liability for debts stops with the company. Shareholders are only personally liable to the extent of their paid up share capital.
In our ‘Ask the Expert’ column Sean Aldridge looks at the Court of Protection and how to manage a relative’s affairs, and Philip Wright expresses his opinions on the Localism Bill. Our ‘Talking Heads’ feature takes a look at the plans for Preston’s historic Winckley Square, just one of the positive steps the city is taking in the wake of the collapse of the Tithebarn project. This positivity is reflected across the region as we rapidly head towards a new year, so on behalf of Napthens I would like to wish you all the best for 2012.
provided over 100,000 days of training to a client base exceeding 1,000 companies.
Robert Dobson
Choosing the right vehicle can help determine how effective your business can be in the future. These include: • Sole Trader • Partnership
Thank you. • Private Limited Company • Public Limited Company
Liability can be limited by shares or by guarantee - companies limited by shares are the most common business structure. A major advantage is that shareholders’ liability for the company’s debt is limited to the amount of unpaid shares that they hold in the company (potentially zero). Private limited companies are governed by the Companies Act 2006 and have to adhere to strict codes e.g. produce company accounts, maintain statutory books, appoint directors.
Decisions affecting the business are made either by the directors or the shareholders (often the same people). Certain formalities and expense are required in creating the documentation to govern these relationships and in holding and recording meetings and decisions. In recent years there have been moves to decrease formalities for smaller companies. This combined with the fact that private limited companies are only taxed on their profits (and unlike sole traders are not subject to personal tax rates of up to 40% or even 50%) is making them more attractive to small businesses. Forming as a private limited company can create the perception of a serious business, effectively managed and with long term prospects. Attracting investment can be easier than for a sole trader, as investors have access to balance sheet statements.
Limited Liability Partnership (LLP): A relatively new business format, created in 2000. It combines the informality of a partnership but offers the protection in terms of limited liability of a limited company. Initially the favoured vehicle of professional practices such as solicitors and accountants, they are increasingly used by other businesses and individuals. LLP’s are increasingly being employed as tax efficient vehicles for joint ventures between parties. Importantly the ‘members’ of an LLP can themselves be limited companies and/or LLP’s which adds greater flexibility in exploiting or developing new ventures. There is a more detailed look at the range of corporate vehicles on the Corporate page of Napthens website: www.napthens.co.uk Contact Robert.Dobson@napthens.co.uk 01772 904342
• Limited Liability Partnership
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talking heads / Iknow-UK expansion / MAP Ltd:
Talking Heads Napthens has helped establish the Winckley Square Community Interest Company, aimed at helping drive the revival of Preston’s famous historic Square. We ask our talking heads… How can the Square realise its huge potential? towards a bigger and better future for the City for all who live and work in it.
Richard McDowell
Richard McDowell, Napthens’ Personal Injury partner and co-founder of the Community Interest Company said: Winckley Square is the jewel in Preston’s
Charlotte Myhrum
crown. It is, and has been for many years, the centre where many businesses have their offices. It’s also the lungs of the City in providing an open green space
Andrew Mather
for visitors, shoppers and people working in the area. If the Square is restored to its original glory it will show the importance both of building on the past and working
Charlotte Myhrum, design review manager at Places Matter: Winckley Square should be an urban amenity for those who live and work around it and present itself as a comfortable destination rather than simply a route through. Options include cleaning it up by maintaining the trees and lighting it well for evening security. Strengthen the connections from Winckley Street through the square to Ribblesdale Place to create a green corridor down to Avenham Park and down to the river, which would enhance the city greatly.
Iknow’s know-how generates expansion Advanced technology and market-leading expertise enables online holiday accommodation firm Iknow-UK to deliver a first rate service to hospitality providers and visitors. Founded in 2003 by chairman Marcus Simmons, Iknow-UK is the only online business to offer a choice of all types of accommodation, including hotels, B&Bs, cottages, apartments, holiday parks and caravan & camping.
“We also offer a local guide for all accommodation adverts. With over 50,000 restaurants and attractions listed across our regional websites, we help consumers choose their perfect destination. In addition, Iknow-UK offers price comparison technology enabling holidaymakers to obtain best value for money.” Among pioneering new services that are driving Iknow-UK’s growth is an employee benefits scheme enabling employees to book UK holiday and
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MAP deal A team of solicitors from Napthens advised on a recent deal which saw Blackpool-based software specialist Micro Applications Packages Ltd (MAP) acquired by US-based Autodesk Inc. The share transaction was announced to the press on October 20, 2011 (see http://usa.autodesk.com). Terms of the transaction were not disclosed. Napthens client MAP specialises in providing software applications for the construction and building industry. It was founded 30 years ago. California-based Autodesk is a leader in 3D design, engineering and entertainment software. It was founded in 1982 and, as of 31 January 2011, employed approximately 6800 people worldwide. Its products are used by more than 800,000 companies worldwide, and the company’s turnover in 2010 was $1.7 billion.
The Leyland-based operation employs 32 people and is generating strong growth, with turnover of £2m projected to increase to £2.4m in 2012. It runs 20 regional websites, focused on holidays and short breaks across the UK. Operating with 15 online booking partners, the company provides up-to-date pricing and availability for 60,000 listed accommodations. “Uniquely, we provide full contact details for all customer adverts, giving consumers the opportunity to email, call, book online or visit the website of accommodation options,” said Julian Ross, IknowUK’s managing director.
Andrew Mather, president, Preston Historic Society: For more than 200 years Winckley Square or Winckley Gardens as it was first known, has been the ‘lung’ for the people of Preston. Its full potential can be achieved again by gradual improvements and consistent maintenance over a period of time and with the requisite level of security, so people can take pride once more in the whole square - sharing picnic lunches or taking a restful break from work, while enjoying the trees, plants and birds in the ‘new’ Gardens.
The Napthens team was led by corporate partner Andrew Clare, along with corporate solicitor Benjamin Dredge, with additional advice from employment solicitor Kimberley Barrett, Commercial Property partner Martin Long and tax specialist Stephen Betts.
Julian Ross
short break accommodation online at discounted rates. Staff can save of up to 35 per cent from a selection of more than 5,000 hotels, B&B, cottages, holiday parks and apartments.
“Competition is increasing from brand-led UK holiday websites, which is reducing the number of people searching for accommodation through search engines.” said Julian.
“We provide a search facility for a business’ intranet site, as well as email material for the employer to send to their employees demonstrating how the new benefit works in practice,” explained Julian.
Looking ahead, Iknow-UK plans to use a number of opportunities to underpin its position as a market leader, including best price guarantees on all adverts, linking with Trip Advisor for up-to-date reviews on all properties, and extending its internet booking system through an extra 114
The main challenge facing Iknow-UK is keeping pace with technological advances.
online reservation companies. Julian concluded: “The number of listed properties is expected to rise from 60,000 to 100,000 before the end of 2012. We’re very excited about the service that we’re building and believe we offer a more compelling UK holiday solution than anyone else.” www.iknow-uk.com
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.
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sector focus: red tape & regulations
Red tape revolution or red herring? The coalition says it is committed to taking a machete to the regulatory jungle that’s threatening to choke the region’s flair for enterprise. The Cabinet Office is driving a wide-ranging online consultation exercise that aims to cull the 21,000 regulations active in the UK today. Ministers say their ‘Red Tape Challenge’ will help tackle overregulation in six key areas of health and safety, environment, equalities, pensions, company & commercial law, and employment law. Yet the Government has not hesitated to legislate since coming to power, prompting allegations of double standards. So will the Red Tape Challenge deliver meaningful change, or is it an exercise in political window-dressing? Among the sceptics is Jonathan Barker, managing director at Mitchells of Lancaster (Brewers), which operates 52 licensed premises across Lancashire. “The Government isn’t cutting red tape, it’s replicating it,” said Jonathan. “If Whitehall is serious about removing layers of regulation, it should be talking serious and sustained action, not just putting out words that give an impression of doing something.” Paul Foster, development manager for Lancashire & Cumbria Federation of Small Businesses (FSB), is prepared to give the Red Tape Challenge the benefit of the doubt, but only up to a point. “This initiative offers a great opportunity to redress the balance and assist businesses, if the Government does as it has suggested and gets rid of regulations that cannot be justified,” commented Paul. “It must be noted, though, that much more red tape is being generated currently in Europe and the UK must be much smarter about how it interprets and adopts new regulations in future.” The FSB says managing red tape is
Carl Allen
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a time-consuming activity for many small businesses, distracting ownermanagers from the essential task of directing their commercial operations. “Very few sectors escape from regulatory requirements, and
“Legislation has often been put together piecemeal, without proper consideration of the global picture that employers face,” commented John Whittingslow, Litigation partner and Head of the Commercial Division at Napthens. “Many of the issues, especially in employment
“Is there overregulation? Yes. Are most SME businesses properly regulated and fully compliant? No. Does this affect their value when the owner wants to sell up? Yes.” whereas larger businesses can employ HR managers or health & safety specialists, in a small business this responsibility falls to the owner- manager, who doesn’t often have the time and expertise to fulfil multiple roles,” said Paul. Commentators agree that a lack of joined-up thinking is responsible for enmeshing businesses in a red tape tangle, with various Government departments failing to co-ordinate an overarching regulatory framework.
Jonathan Barker
law, stem from the way legislation is drafted. This is often unclear and difficult for employers to understand.” John shares the FSB’s concern over the volume of regulation coming from Europe, which he fears is hindering growth. “Take for example the Agency Workers Regulations, which any normal employer would struggle to grasp. This legislation has to be considered against a mountain of case law surrounding agency
Liz Russell
workers and their status. These European Commission-driven regulations will probably make it more expensive in the future for employers to recruit agency staff,” said John. Manufacturing is among the sectors worst affected by red tape, and many industry insiders fear the cost of over-regulation is being paid in lost growth and employment opportunities. Sharing these concerns is Tim Bullough, commercial director at Blackburn-based Accrol Papers, which makes soft tissue products for the home and industry. “One company I know submitted a planning application to change the use of its premises. It should have been a fairly simple process, but the planners made a meal of the situation, which impacted on sales and led to a delay in creating new jobs,” said Tim. “Another area of regulation that affects profitability in our industry is ‘packaging regulations’, where a great deal of time is taken to generate the information, complete paperwork and then make a payment to the authorities, which is really only another form of stealth tax.” Red tape requirements are adversely affecting the buying and selling of businesses, according to Carl Allen, a director at Whitewater Corporate Finance in Ribchester. “For instance, we have been involved in the purchase of a transport business that has a bolted-on spray painting operation.” said Carl. “Although a very small
Paul Foster
part of the overall business, due diligence investigations revealed that this had potential health & safety compliance problems and the vendor may not agree to warranties for any post-sale issues. This is the sort of situation that can stop deals going through. “Is there over-regulation? Yes. Are
Tim Bullough
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sector focus: red tape & regulations
Ministers say their ‘Red Tape Challenge’ will help tackle over-regulation
most SME businesses properly regulated and fully compliant? No. Does this affect their value when the owner wants to sell up? Yes.” However, Carl points out that regulations can be ‘good’ or bad’ depending on perspective: “If I was buying a business in which a lot of mature employees had their terms
and conditions protected by TUPE, I might see that as a negative. If my dad or wife was working there, I’d see the TUPE protection as a positive.” Some commentators say the rigid, ‘tick box’ nature of many regulations creates unfair competitive advantages among businesses that are apparently in the same market, but which are categorised differently by the regulators. One of them is Garstang-based Envirosystems, whose paper-based Envirobed animal bedding product is made from paper recycling mill waste. This highly entrepreneurial process enabled the business to win the Innovation category of the Queen’s Award for Enterprise in 2006.
John Whittingslow
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However, the use of waste product from paper recycling mills means Envirobed comes under the ambit of industrial waste regulations, as opposed to competitors’ products such as sawdust, wood shavings,
ground up plaster board and ash which are subject to less onerous regulations. “It’s entirely unsatisfactory. All we want to do is make a difference for our customers, but this becomes increasingly difficult because we are denied a level playing field and the cost of compliance becomes higher and higher,” said Envirosystems founder and managing director, Liz Russell. Nevertheless, Liz accepts that properly thought-through regulations can have a positive impact on commercial practices. “Farmers used to spread slurry throughout the winter months because their storage was insufficient. Slurry spread outside the growing season has no beneficial effect on the land or crops, its nutrient value was being wasted and in some cases the “run off” was causing pollution of water courses,” explained Liz. “Regulations have been introduced
in parts of the country meaning there is no spreading during the winter. These farmers have had to invest in extra storage, but it has given them an opportunity to save money on buying chemical fertilisers. This is a benefit to the industry that wouldn’t have happened without regulation, only organic farmers knew the real value of their slurry when spread at the right time of year.” John Whittingslow agrees that regulation is necessary in a fairminded society: “Balance needs to be struck between cutting through the red tape and, for example, stripping away too much protection for employees, thereby exposing them to unscrupulous employers who would take advantage. “Regulation is a force for good if it is properly drafted and properly consulted upon. The Equality Act is an example of a worthwhile and, in the main, properly thought through piece of legislation that harmonises rights across the board.”
Looking ahead, many business owners would like to see a greater emphasis on strategic thinking by the Government. Jonathan Barker says consistency is the watchword for any regulatory system and insists ministers are capable of delivering this, provided the political will is there. “In the hospitality industry we have to react to guidance or regulations from a number of different governmental departments – such as the Department of the Environment & Climate Change, Home Office, Department for Culture, Media & Sports, the Treasury, and Department for Business, Innovation & Skills,” said Jonathan. “Some of this is contradictory and most seems to be unhelpful and add costs and bureaucracy to businesses at a time in the economic cycle when spare resources would be better spent on investment and staff development.”
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ask the expert / employment law changes / Builders Supplies ask the expert:
Court of Protection Based in the Wills and Estate Planning Department in Preston, Sean advises clients on wills, trusts, estate planning matters, Court of Protection applications and Lasting Powers of Attorney. Q: My mother made a power of attorney and appointed my father. My father has died and my mother has Alzheimer’s. How do I now manage my mother’s affairs including the sale of her house? A: If the power of attorney doesn’t name you as a replacement, then you’ve no automatic authority as the next of kin to take over your mother’s affairs. You’ll need to apply to the Court of Protection for a court order appointing you as your mother’s Deputy and specifying the powers you are to be granted. The Court of Protection is the Court responsible for the financial affairs of persons who are not mentally capable. This inevitably means the affairs of a vulnerable person and the Court has a responsibility to ensure that all their money is utilised in the best interest of the person who isn’t able to make decisions. The Court will appoint an agent, normally the next of kin, to be the Deputy and will stipulate the remit of their powers. This normally includes day-to-day banking, investment and modest gifts but a specific request will have to be made to the Court for the power to be extended to the sale of property. Each year the Deputy must provide an account to the Court to show all income and outgoings, evidencing that all monies have been used for the incapacitated person. Court of Protection proceedings are costly, complex and lengthy. For this reason it is advisable all adults execute a power of attorney. If application to the Court is required, seeking legal advice is crucial to obtain all the necessary powers you may need and to ensure you comply with all the legislation surrounding this area. Contact: Sean.Aldridge@napthens.co.uk 01772 904257
Employment law changes welcomed by employers Stacey Barlow, employment law solicitor examines the Government’s changes to employment law, introduced on October 3rd. These changes are that the qualifying period for unfair dismissal claims will rise to two years with effect from April 6 2012 and a fee system is to be introduced for employees who bring Tribunal claims. Some of you may recall that prior to 1999 the qualifying period for unfair dismissal was two years. By reverting back to that position figures suggest that an extra 12 per cent of employees will potentially be denied the chance to claim unfair dismissal. The Government estimates this will reduce claims by approximately 2,000 claims per year. The aim is to give employers more flexibility and increased opportunity to dismiss problematic employees. However, it’s anticipated the changes may result in more claims of discrimination as those
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unemployed, and whether the changes will actually cut the number of spurious claims is debateable.
Also interesting is the proposal to introduce a fee system for employees bringing employment tribunal claims. The Chancellor confirmed consultation will begin on the introduction of a £250 fee to submit a claim, and a further £1,000 fee when the claim proceeds to a hearing. Fees will be refunded if the claimant is successful but forfeited if they lose.
The Chancellor also stated the Government was “ending the oneway bet against small businesses” and making it “less risky for businesses to hire people”. The proposals have been welcomed by employers that consider it about time the Government introduced changes in favour of employers, after the recent flux of employee friendly legislation, including The Equality Act 2010 and The Agency Workers Regulations 2010.
These proposals were caveated by recent comments by the Justice Minister, Ed Davey, who suggested that a sliding scale of fees is being considered with those on low incomes being exempt. On this basis, relatively few claimants will actually have to pay a fee, as of course many of those seeking an unfair dismissal claim will be
The news, as ever, should be treated with caution and it’ll be interesting to see the outcome of the consultation and how the Government attempts to strike the balance between genuine and dubious claimants.
Stacey Barlow
Contact: Stacey.Barlow@napthens.co.uk 01772 904280
Building on firm foundations Established in Cleveleys in 1963, Builders Supplies (West Coast) Ltd has evolved to becomea leading independent builders merchant. Employing 65 staff, it has recorded a four per cent increase in its £10m turnover – impressive growth in a sector that is experiencing tough times. The family-run business was founded by the late Jim Worthington, father of current managing director Peter Worthington, and Jim Barlow, who remains an active member of the board. “We originated as a haulage business carrying building materials and started to stock the materials we were carrying,” explained Peter. “I joined the company from college in 1984 and during my tenure, our growth has resulted from increasing the materials offered to the same customers as their business expanded. “Our growth has mirrored that of our customers which has prompted us to open additional depots in Fleetwood, Preston and Morecambe, as well as extending the head office in Cleveleys.”
Sean Aldridge
employees with less than two years service look to circumvent the new higher qualifying period.
Builders Supplies has a thriving presence in the DIY and home improvement market, while the HSS Tool Hire agency in Fleetwood adds another string to the company’s bow. The 20-strong delivery fleet includes 16 vehicles with crane offload facilities, all making daily deliveries throughout the region.
“The building industry is affected by the weather and a good merchant responds quickly to customers’ changing needs,” said Peter. “We do this by having the stock on the ground, a highly trained and motivated workforce, and the vehicles to deliver the products where and when they are needed.” Builders Supplies is a founder member of the National Buying Group, a purchasing consortium of independent builders’ merchants enabling them to compete on price with larger players. “We are investing in all areas of our business and especially our people, who are our key strength. We have product and general training facilities at our head office and have recently relocated our back room operations to refurbished office space,” said Peter. Other investments include upgrading and doubling the size of the trade counter and display area in Cleveleys, and taking delivery of a 26-ton Leyland DAF vehicle. Peter remains confident about the future, despite issues of inflation, cashflow and margin pressure.
Managing director, Peter Worthington
“The Government’s Green Deal legislation, which comes in next year, aims to encourage greater energy efficiency among home owners and represents significant opportunities for us to work with our trade customers, because
many of the energy saving measures will be delivered by building improvements.” www.builderssupplieswestcoast.co.uk
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a day in the life of / Post-nups on the rise / opinion:
A day in the life of… Ian Kay As a member of Napthens’ commercial litigation team, Ian heads up the debt recovery service and is responsible for overseeing the firm’s Debt Action Direct product. His expertise lies in recovering debts for businesses across a wide range of industries including consumer credit, education, retail, advertising, utilities and public sector. 9.00: I call clients to confirm instructions and liaise with the court on procedural matters.
Ian Kay
7.15: Jump on the train and catch up on any urgent matters – technology is great and I wouldn’t know what to do without my smartphone. 8.00: Land at the office and grab a coffee before going through additional emails and messages to see if there are any developments on cases. 8.45: Meet with Louise Hamlet, our Debt Action Direct manager, to plan priorities for the day ahead.
10.00: I’m at Preston County Court for a hearing on an application for a charging order to secure a debt owed to a client against the defendant’s property. The defendant disputes the application on the grounds that they have a defence to the original claim. I argue, as there is an existing judgment, there’s no reason why the application should be refused. The judge agrees, awarding the order as well as costs. I call the client, who is delighted with the result. 12.00: I draft a witness statement for a case, where a client is pursuing unpaid invoices for professional services. Because the value of the claim is less than £5,000, I have to ensure the statement is as concise as possible given that in the Small Claims Court our client will only be able to recover a limited contribution to their costs. 1.00: I grab a sandwich, and meet up with colleagues for a quick
coffee. Back in the office we discuss a case and bounce ideas off each other. Always helps - two or three heads are better than one! 2.00: I receive an application to remove a default judgment in favour for a client. I prepare a summary of preliminary findings and email these to the client so we can box the matter off. 3.00: A prospective client of Debt Action Direct calls to arrange a meeting. The business has been referred to me by the corporate team and it has a large debt book so I discuss potential strategies with the client and fix up a time to go through them in detail.
I can hit the ground running in the morning. I check to see if a debtor has paid. They haven’t, so I speak to the client to confirm we will now issue proceedings. 5.30: Head off for the train to Bolton and look forward to an evening meal with my fiancée Jennifer, where we catch up on each others’ day and discuss plans for the weekend.
3.30: I meet with David Barnes, head of Litigation to discuss how we can develop our Debt Action Direct service. We are keen to ensure we provide a service that adapts and evolves to meet the different needs of our clients in the future.
7.30: Driving into Manchester, I look forward to a coaching session with MMU Eagles which is an American football team based at Manchester Metropolitan University. My fascination with American football started in 1995 and I began playing in 2001 at under 19 level before playing at Hull University and then Lancashire Wolverines before hanging up my pads in 2006 to concentrate on coaching. It’s a great sport and one that helps me unwind at the end of the day.
4.30: After dealing with some emails I sign a batch of letters, then run through my action plan for tomorrow, getting files ready so
Contact: Ian.Kay@napthens.co.uk 01772 904306
opinion piece: Philip Wright, Commercial Property solicitor
Localism Bill – empowerment or bewilderment? “The time has come to disperse power more widely in Britain” (The Prime Minister and the Deputy Prime Minister, Coalition Agreement, May 2010). Bill will cause greater confusion. On the face of it the Bill, which has not yet received Royal Assent is primarily about de-centralisation, transferring power from central government to local government and communities. It comprises eight parts:• • • • • • • • Philip Wright
This quote appears in the foreword of the Localism Bill, published by the Department for Communities and Local Government but property solicitor, Philip Wright believes the
napthens.co.uk www.n
Local Government EU Fines Non-Domestic Rates Community Empowerment Planning Housing London General
The weighty 450 page document has certainly polarised views. While some of the contents are attractive, in reality it may ultimately please noone. For example, in relation to changes to planning, a survey of developers found that 93 per cent remained unconvinced the process
would be less complicated, and none of them thought it would be less expensive. Conversely local communities (who are supposed to be empowered by the Bill) are concerned that planning will be granted almost by default, exposing large swathes of England’s finest countryside to unpopular large developments. Central government will still set the parameters and the ability of local communities to force, for example, referendums. Only those more organised and dare I say, affluent communities will be able to force them to save public buildings like swimming pools and libraries…and they’ll still have to raise the finance to do so. Planning laws are already notoriously complicated. While the Bill seeks to give communities the right to challenge proposed large
scale developments, not everybody will be sufficiently motivated to do so. On the reverse, developments that may be beneficial may never see the light of day because they are frustrated by communities on political grounds. Giving power to local communities is laudable but may result in more bureaucracy, delays and potentially, greater confusion.
Post-nuptial agreements on the rise Lancashire couples are turning to ‘postnuptial’ agreements – as opposed to more traditional prenuptial agreements – to help them plan for the future. Post-nups have the same effect as a pre-nup, recording the agreement a couple has reached regarding division of assets in the event of a divorce. Unlike pre-nups, though, they are drawn up after a marriage rather than before. Simon Gledhill, head of the Family team, reports that such agreements are becoming more common, with a steady increase in enquiries. He puts this down partly to the landmark Radmacher v Granatino court case last year, which saw a pre-nup upheld in a UK court for the first time, opening the floodgates to their future use. Simon explained: “Following this case, courts are now willing to give consideration to an agreement when deciding how assets should be divided. Previously this wasn’t so, and many have seen the Radmacher decision as an opportunity to officially record an agreement with their spouse as to the division of assets. “Perhaps couples have had children since their marriage, and wish to protect assets to pass on to the next generation. They may also want to protect new business interests. “Whatever the reason, if a couple are thinking of entering into a postnup agreement it is crucial that they both seek their own independent legal advice from a specialist family solicitor. “Crucially, a failure to do so means that the agreement may be called into question in the event of a divorce leading to a very difficult situation for those involved.”
The passing of the Bill at one point seemed a certainty, but now there are rumblings there’ll be a widespread Tory backbench revolt. It remains to be seen whether the Bill will ever see the light of day – but it will do if Pickles and Osborne have anything to do with it. Simon Gledhill
Contact: Philip.Wright@napthens.co.uk 01772 904314
Contact: Simon.Gledhill@napthens.co.uk 01253 754871
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Tricia to build on Construction Tricia Morrison has joined Napthens as partner and Head of Construction. The experienced solicitor, who is dual qualified to practice law in both Scotland and England, joins from HBJ Gateley Wareing where she helped establish a construction team. She is recognised as a Leading Individual by the Chambers’ legal industry guide. Tricia advises in respect of both contentious and non-contentious construction law, as well as public procurement matters. She said: “Napthens has a highly respected and active property team and I look forward to working alongside some very high profile clients in the region.” John Whittingslow, head of the
Tricia Morrison
Commercial Division at Napthens, added: “Tricia’s specialism in construction law will enable us to expand our offering to clients and keep Napthens at the forefront of property and construction advice in the region.”
All change for Blackburn Malcolm Ireland with his favourite dish
Napthens’ Blackburn office has now completed its move to modern offices at Whitebirk in the town. 25 staff have made the move from the former offices at Wellington Street (St John’s) to the new, 4,510 sq ft offices at Challenge Way.
Me and my… Good food A part-time job as a 14-year-old pot washer in an East Lancashire restaurant blossomed into a lifelong love of Mediterranean food for former chef Malcolm Ireland. Malcolm, Head of Napthens’ licensing team, asked for work at Nico’s Italian restaurant in Langho, near Blackburn, because it was the only source of employment he could find in the area as a teenager.
His passion for cooking stems from his love of good food. “Partly because of my experience of working at Nico’s, I love Mediterranean food. A lot of it is really simple but just oozes flavour.
He worked his way up from the kitchen sink to starters, pizza, pasta, meat and fish, before becoming a full time chef following his A-Levels.
One of his favourite dishes follows that ethos. “Aglio olio e peperoncino is very simple. It’s just spaghetti with garlic, olive oil and chilli but it’s a really tasty dish that is quick and easy to make.”
“I spent two years as a full time chef at Nico’s, which was a fantastic period of my life, but I wanted to forge a career in law” said Malcolm. When he qualified as a solicitor, he chose to specialise in licensing law and his background as a chef is something that is particularly appreciated by many of Napthens’ clients in the leisure sector. “They realise that I know their industry from an insider’s perspective, which helps build solid relationships.” said Malcolm.
Preston: 7 Winckley Square, Preston, PR1 3JD DX 714572 Preston 14 Tel: 01772 888 444 Fax: 01772 257 805 Email: Preston@napthens.co.uk
Finding the perfect drink to accompany food isn’t a problem for Malcolm either. “People have traditionally leaned toward wines but there’s a trend emerging for matching quality real ales or beers with food.”
Martin Windle, Head of the Blackburn office said “Our move to Whitebirk gives clients improved access to our services. The modern facilities provide a great working environment for our staff and a platform for Napthens’ future growth in the area.
Geoff Tomlinson, Head of Department, along with solicitors Andrew Holden and Melissa Taylor, provide a range of services for their agricultural clients including sale and purchase of land and farms, succession planning and rights of way. Napthens is just one of 16 NFU panel firms in the country, and the team made the move to better serve its clients from a more central location. Geoff Tomlinson added: “Napthens is one of the few law firms to have a specialised rural team, and we are all looking forward to this next chapter in the life of the department.”
introduce beer lists alongside the wine lists.
Meanwhile, the new offices have also become home to the Rural team, which has moved from its old HQ in Preston.
“Some of the best restaurants and hotels are gradually waking up to the phenomenon that is matching real ale with food but we have a long way to go yet if we are to break the stranglehold that wine seems to have.
Power surge for IT support team
“For anyone wishing to try matching beer with food, there are literally hundreds of different real ales with different flavours available now but try something like a pasta dish, with a fresh tomato and basil sauce. Complement it with a refreshing, fruity, citric beer like Thwaites Wainwright. In my book it works a treat!”
Foodies such as Jay Rayner have recently been seen on national television extolling the virtues of matching beer with food and there is a real groundswell for eateries to
Contact: Malcolm.Ireland@napthens.co.uk 01254 686211
Blackburn: Greenbank Court, Challenge Way Greenbank Business Park Blackburn, Lancashire BB1 5QB DX 745450 Blackburn 12 Tel: 01254 667 733 Fax: 01254 681 166 Email: Blackburn@napthens.co.uk
Blackpool: Libra House, Cropper Close, Whitehills Business Park, Blackpool, FY4 5PU DX 745260 Blackpool 20 Tel: 01253 622 305 Fax: 01253 295 591 Email: Blackpool@napthens.co.uk
Napthens has boosted its IT support team with the appointment of two extra staff.
investment and show how serious Napthens is about investing in its people and the future.
Kathy Robertson joins as IT skills developer, and will make sure Napthens’ staff are fully trained in the latest software and IT developments. Meanwhile, Jack Mayman has joined as IT support analyst, and will give day-to-day technical support.
“Technology plays a vital role in a modern law firm such as Napthens and developing our resources, infrastructure and IT systems will help us stay at the forefront of client service delivery.
The pair will work under head of IT Anthony Terry, who said: “These appointments complement IT
“I look forward to working with Kathy and Jack to make a real difference to future developments at the firm.”
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
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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