Ambition Issue 4 (May/June 2014) by Northern Ireland Chamber of Commerce and Industry

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MAY/JUNE 2014 ISSUE 4

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CONTENTS

MAY/JUNE 2014 l ISSUE FOUR

58 96

NEWS 08 Concentrix expansion 10 Delta unwraps investment 12 Jobs drive for Schrader 13 Count up at EY

SPECIAL FEATURE FOCUS ON ACCESS TO FINANCE

36 Financing our exporters 40 Small and medium means big in business 42 Legacy property debt: a solution

COLUMNISTS 20 Angela McGowan 50 Trevor Annon 64 Ian Rainey 85 Maureen O’Reilly 96 Jim Fitzpatrick

LIFESTYLE

FEATURES

18 Changing times at The Mount Charles Group 58 Starring role for Northern Ireland’s screen industry 66 Fuel - high performance IT firm 76 Carpets flying to export markets

88 Departure Lounge - James Stinson 93 Kitchen Cool - Noel McMeel 94 Pastel Perfection - Rebecca McKinney

Editor: Adrienne McGill Publisher: Chris Sherry Advertising Manager: Catherine Patton Editorial Assistant: Ashleigh Addis Email addresses: adrienne.mcgill@northernirelandchamber.com c.patton@ambitionni.co.uk Websites: www.northernirelandchamber.com, www.ulstertatler.com Addresses: Northern Ireland Chamber of Commerce and Industry, 4-5 Donegall Square South, Belfast, BT15JA Tel: 028 9024 4113 Publisher: Ulster Tatler Group, 39 Boucher Road, Belfast, BT12 6UT Tel: 028 9066 3311 Printed by: W&G Baird, Antrim Front cover picture: Kelvin Boyes, Press Eye. NI CHAMBER PATRONS

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[EDITORIAL]

DRIVING AMBITION BRIGHTER OUTLOOK

ith a cascade of job announcements in Northern Ireland in recent weeks including the creation of 1000 positions by call centre firm Concentrix, almost 500 by accountancy giant EY, and 240 at car component company Schrader Electronics, it seems the local economy is basking in the glory of a jobs bonanza as conditions for business continue to brighten. While these jobs have yet to filter through, they come as the latest Ulster Bank Purchasing Managers' Index (PMI) reported that firms in Northern Ireland were now in their third quarter in a row of strong growth with hiring bearing the strongest evidence of the strength of the recovery. The PMI also reveals that Northern Ireland can now claim the highest rate of growth in employment of all UK regions, with manufacturers taking people on at the fastest rate since the index began. On a quarterly basis, the first quarter of 2014 saw Northern Ireland's private sector employment expand at its fastest rate in

seven years. Added to this, a number of local firms have also announced new contracts overseas highlighting the fact that expanding or exploring export opportunities pays dividends. One of these is Avondale Foods in Lurgan which has won its first European business with a deal to supply supermarkets in the Netherlands. But winning new business and engaging in commercial development and expansion requires financial backing - and more specifically - access to revenue streams. That’s why our special focus in this issue is Access to Finance. This has become one of the most intensely deliberated issues in recent years with input by government, banks and businesses. There have been a number of in-depth surveys and reports on the topic - all of which have so far come to the conclusion that there is a need for alternative sources of finance for firms outside of banks including venture capital and equity finance. In this issue, commentators from a range of financial institutions, economic agencies

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and business advisers share their views on navigating the funding landscape. In addition, we look at how Northern Ireland is making a name for itself in manufacturing and film making and highlight the high-flying success of Ulster Carpets and also Northern Ireland Screen, both of whom have announced major plans for expansion. Meanwhile, we have views from our regular and popular columnists, including Jim Fitzpatrick who gives us a lesson on Buzz Lightyear, together with a host of motoring, wardrobe and dining delights in the lifestyle section. And as the Giro d’Italia leaves its pink haze on Northern Ireland - the biggest sporting event ever to take place here - the hope is that all those who are not from these shores, but who visited to enjoy the cycling spectacular, will return in the future having hopefully seen what we have to offer in terms of spectacular tourist sights, warm hospitality, world class businesses…and maybe even some rays of sunshine.

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[EDITORIAL]

ell, this is an interesting time to be the President of the Northern Ireland Chamber of Commerce and Industry. It also happens to be the end of my personal time as President as I step down from the position at the end of May and it is with a mixture of pride and satisfaction that I look back over the last two years, at what has been achieved by the organisation and where Northern Ireland now stands economically. Two years ago we were still mired in the midst of a worldwide economic meltdown which had, and continues to have, a real impact on the UK as a whole and on Northern Ireland particularly. We were in no way immune to global trends and downturns, and in recent years our unemployment levels have been too high, our GDP too low and consumer confidence had hit rock bottom. At various junctures over the last half decade it has been very difficult to identify a chink of light among the various reports, studies and official unemployment figures. In 2012 NI Chamber clearly stated that our aim and core focus was to work with indigenous businesses to help them identify potential growth areas, at home but crucially in the export market also. I remain absolutely convinced that Northern Ireland companies

rate among the best in the world. That conviction comes from my personal experience at Wrightbus, and it has been solidly reinforced over the last two years by visiting businesses across Northern Ireland. It vindicated the Chamber’s decision to focus on export and our targeted Export First Programme which is supported by Danske Bank has been a highlight of the last two years. I am delighted that the programme goes from strength to strength. There are also a number of other export orientated programmes including Connecting for Growth in partnership with Bank of Ireland UK, which is a cross border trade initiative designed to facilitate increased business between companies from Northern Ireland and the Republic of Ireland. Meanwhile, the NI Chamber Connections initiative, in association with Ulster Bank, links individual businesses to experienced exporters or international chambers for one to one advice. Other internal NI Chamber highlights have included the superb ‘Growing Something Brilliant’ initiative which encourages businesses to identify the positives as they seek to grow. It is about the best of Northern Ireland embracing other businesses and giving each other a helping hand. We have continued to

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lead on the campaign to see the devolution of powers over Corporation Tax and I think we finally have reasons to be quietly confident about that long running issue. So as Northern Ireland enters a post-recession era, unemployment is down but still too high at 57,000 and challenges around economic inequality remain and must be tackled. All of us at NI Chamber remain steadfast in our determination to create and facilitate the conditions which foster economic growth. I want to say a huge thanks to NI Chamber Chief Executive Ann McGregor and to all of her team. Their achievements over the last two years have been immense, from winning the UK Chamber of the Year, to continuing to grow membership, to the opening of a superb new office in Belfast city centre and not least the launch of Ambition, which has become an important and ‘must read’ publication for the business community in Northern Ireland. I want to wish incoming President Kevin Kingston every success and I will be on hand to offer any practical support I can. Mark Nodder President Northern Ireland Chamber of Commerce and Industry

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[NEWS]

MOY PARK NEW PATRON OF NI CHAMBER Northern Ireland Chamber of Commerce and Industry is delighted to announce Craigavon poultry and food processing company Moy Park as its newest patron. Moy Park’s patronage is expected to further bolster its brand exposure amongst the business community in Northern Ireland, whilst underlining NI Chamber’s commitment to the advancement of business and enterprise in the Province. Moy Park, which is owned by Brazil’s Marfrig, employs more than 12,000 people across production sites in Northern Ireland, Ireland, England, France and Holland and is one of the largest producers of organic, free-range and cornfed birds in Europe. Welcoming Moy Park’s patronage, NI Chamber’s Chief Executive Ann McGregor said: “We are delighted to welcome Moy Park as a

patron. NI Chamber is looking forward to assisting the company communicate its expertise in the food industry to other firms who can benefit from the leadership which Moy Park has shown in business. We also look forward to linking Moy Park to opportunities in its area of work.” Moy Park Chief Executive Janet McCollum said: “Becoming a patron of the Northern Ireland Chamber of Commerce and Industry deepens our commitment to the organisation and allows Moy Park to benefit from the many dynamic and innovative programmes and events on the Chamber calendar. As Northern Ireland’s largest private sector company, we must continue to play our part in encouraging businesses to work together to grow the local economy, and our involvement with NI Chamber is one of the ways we can do this.”

CONCENTRIX EXPANSION US company Concentrix is creating over 1,000 new jobs in Belfast in a £36m investment. Concentrix is a subsidiary of SYNNEX Corporation based in California and currently employs over 800 people in Belfast. The firm set up in Northern Ireland in 2011 after buying locallyowned contact centre Gem. The bulk of the firm's work is call centre operations. Making the announcement at the company’s headquarters at Lanyon Place, First Minister Peter Robinson said the investment and creation of 1,043 jobs was excellent news for Northern Ireland. Deputy First Minister Martin McGuinness said the unprecedented jobs announcement would contribute over £18m a year in wages and salaries to the local economy. Invest NI has offered the company almost £3.5m of support for the business services jobs, many of which will be multi-lingual and involve technical support services. Enterprise Minister Arlene Foster said: “Investments such as this provide valuable job opportunities for a variety of people, particularly those returning to work, those who have experienced a period of unemployment and young people.

Enterprise Minister Arlene Foster, First Minister Peter Robinson, Concentrix Vice President Philip Cassidy and Deputy First Minister Martin McGuinness at the investment announcement.

08 l Ambition Magazine

NI Chamber Chief Executive Ann McGregor with Moy Park Chief Executive Janet McCollum.

RANDOX ANNOUNCES MAJOR US CONTRACT

Randox control products will now be available to Novation members across the States.

Randox Laboratories has further expanded its market presence in the US, after being awarded a major supplier agreement with Novation, the largest hospital and healthcare purchasing organization in America. The contract means Randox third party quality control products, which are widely considered to be the most accurate in the world, will now be readily available to Novation members across the States. Crumlin-based Randox is one of the largest manufacturers of third party quality control products in the world. Quality Control is the bedrock of patient blood testing as it helps laboratories assure accuracy in their testing procedures.

Novation manages purchasing contracts for more than 600 suppliers including VHA, United Healthcare and Children’s Hospital Association which in turn manage the supply chain for more than 100,000 healthcare facilities. Steven Jordan, Global Business Manager, Randox QC said: “This deal with Novation is a strategically important step in Randox’s expansion in the US, and we are delighted that our world-leading QC products will now be available for use in many more laboratories throughout the States. I am confident that the quality and range of products available from Randox will make us stand out in the Novation supplier portfolio.”

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Monday, 17 February 2014 12:01

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[NEWS]

DELTA UNWRAPS INVESTMENT Delta Print and Packaging has announced a £40m investment in order to grow sales and in the process is creating 100 manufacturing jobs at its plant in west Belfast. Based at Kennedy Way, Delta designs and manufactures printed carton packaging primarily for the retail food, consumer electronics, household goods, dairy, pharmaceutical and food service sectors.

Delta customers include McDonald’s, KFC, Greiner Packaging and Nokia, and some 95 per cent of its sales are outside Northern Ireland notably to France, Benelux, Germany and Scandinavia. The investment has been backed by Invest NI to the tune of £4.6m. Thirty-one of the new jobs are already in place. The remaining 69 will see the company's workforce increase to 269. Terry Cross, Delta’s

Chairman and joint Managing Director, said: “Invest NI’s support has been vital in enabling us to invest in custombuilt, high-technology plant and machinery, extend the factory at Kennedy Way and recruit and train 100 new staff including European Sales and Marketing Personnel, which will give us the infrastructure to take the company to the next level.”

First Minister Peter Robinson, Delta Print and Packaging Chairman Terry Cross and Deputy First Minister Martin McGuinness on site as the extension to the firm’s plant gets underway.

GOLD FOR NI CHAMBER COMMUNICATIONS MANAGER

Christopher Morrow, Communications Manager at NI Chamber is presented with the Communications Professional of the Year award by Ceriann Mullins, Director of markettiers4dc.

The Communications Manager for NI Chamber has won the much coveted Communications Professional of the Year award at the PRmoment.com 2014 Golden Hedgehog Awards in Manchester. The awards celebrate excellence and recognise outstanding campaigns and exceptional talent in the PR and Communications industry across the UK. Christopher Morrow is

the first Northern Ireland winner of the award which was presented in front of 250 communication professionals from the North of England, Scotland and Northern Ireland. Christopher has also been shortlisted for a 2014 Chartered Institute of Public Relations (CIPR) Excellence Award for the Outstanding Young Communicator category,

and makes the cut from approximately 700 awards entries received from around the globe. He will now attend a face-to-face interview from a team of over 80 expert judges, before the winners are finally chosen and announced at the CIPR Excellence Awards black tie dinner at Old Billingsgate, London on 17 June 2014.

PROGRESSIVE ANNOUNCES NEW CHAIRMAN Progressive Building Society has announced the appointment of its new Chairman, John Trethowan. For over 40 years Mr Trethowan has been involved with both public and private enterprises throughout Ireland. Having joined the board of Northern Ireland’s largest locally owned building society in 2012, Mr Trethowan will now lead the Progressive Board in

10 l Ambition Magazine

this its centenary year. A native of Belfast, Mr Trethowan retired from an executive position in banking in 2007 and currently serves as Chair of the Northern Ireland Transport Holding Company and also serves as Head of the Credit Review Office in Ireland. Speaking about the appointment Darina Armstrong, Chief Executive of Progressive

Building Society said: “We are delighted with John’s appointment as Chairman of Progressive Building Society and look forward to his insight and counsel which will be incredibly valuable to the board, our employees and our members.”

John Trethowan.

Eye Sight:

Laser Eye Surgery can change your life! Pamela Ballantine discusses her surgery experience at Award Winning Eye Clinic, Optilase In my line of work, I am so reliant upon my vision, my reading and ultimately my eyes. So needless to say, they are very important to me. My biggest problem was my reading vision really wasn’t great and neither was my distance vision but I had coped by using my contact lenses. I had considered Laser Eye Treatment for some time, but had never got around to it. However a friend of mine recommended Optilase, facing the City Hall in Belfast, and suggested I should go for a Consultation. When I heard that the Kamra treatment was exclusive to Optilase in NI and Optilase were the number one provider in Europe and 2nd in the world in terms of completed treatments, I was greatly reassured and this made my decision to visit an easy one. After speaking to Optilase and answering some simple questions, I had booked my Consultation. First step taken then!! My initial Consultation was around an hour long. So I went along to the Flagship Clinic and Surgery Centre, opposite Belfast’s City Hall. The Clinic was like being at a 5 Star hotel! The staff were absolutely tremendous and I was immediately completely at ease. Bring it on, I thought! So, after a coffee, (which might I add, was excellent), I filled out a simple form, and met my Optometrist who would be looking after me for the next hour. He was very reassuring and answered some of my very silly questions. I was completely put at ease. He explained how the Consultation would proceed and took me for some scans and pictures of my eye. I confessed to doing some homework on the technology that Optilase use and felt very informed and completely reassured throughout the process. A big thing for me also was the reassurance of the Optilase Lifetime Care Guarantee – basically Optilase look after and treat my vision for the rest of my days, even if I needed to be re-treated further down

the line, at no extra cost! After the scans and eye test, it was time for the big result – and I was absolutely delighted to hear that I was suitable for Treatment. Hurrah!! By now I really wanted it done and I was shown the potential about how good my vision could be afterwards. I really wanted complete freedom from those cumbersome glasses. So two weeks later the big day came – and I approached this with some confidence, however I must admit that the day before surgery I was a bit nervous. The morning of surgery I was still a bit anxious but I needn’t have been. I then met with the Surgeon (for which there is

This is the best decision I have ever made, I now see life in full HD! also no fee) Medical Director Dr. Wayne CreweBrown. He has performed more than 40,000 of these treatments and he talked me through my different treatment options. I spent over half an hour with Dr. Crewe–Brown and felt completely reassured at the end of my Pre-Op. I opted for the KAMRA Treatment, with laser – exactly as the Surgeon had described and recommended to me. This would give me my near and distance vision and would do away with glasses altogether! The actual surgery itself was over within minutes and I quickly realised there was no reason for me to have been nervous. The Surgeon was fantastic and talked me through each part of the procedure - the Nursing and Care team were second to none. There was no pain whatsoever during surgery a question I have been asked by almost everyone I have met since the surgery, as there are so many myths out there about laser eye treatments. After surgery my eyes were tender initially, a sen-

Pictured L-R at the Optilase Ball at the Merchant Hotel in Belfast, Mr. Wayne Crewe Brown (Optilase Surgeon), Tracy Gilligan (Optilase), Chris Willis (Acufocus) & Mark Shortt (Optilase).

sation I compared to the experience you have after cutting raw onions. My eyes were watering all the way home and I had to wear black sunglasses to protect them, although the staff did advise me that I would be light sensitive straight away as my ‘new eyes’ got used to light again. Following the advice from the team at Optilase I went home and relaxed - when I woke in the morning life had taken on a whole new perspective. Being able to see so clearly without glasses was the strangest feeling ever, absolutely fantastic and I was more than a bit emotional – I don’t mind admitting. My near vision settled and dramatically improved after the next few days. Just out of habit I even reached for my glasses (trust me; it takes a while before you will break that habit). If I had some advice for anyone out there who wears specs, get it done – and get it done now! If only I had it done years ago…… My advice? Find out if you can have it done – if you are suitable, find a way to have treatment – it will change your life……I’m glad I did!! To book your free consultation contact Optilase on 08000 121 565 or visit www.optilase.co.uk

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[NEWS]

CHAMBER PRESIDENT SCOOPS MAJOR AWARD

Christine Wright (British Airways Ambassador), Mark Nodder, Managing Director, Wrightbus, Keith Williams, Executive Chairman for British Airways and Jayne Deasy (British Airways Ambassador).

NI Chamber President Mark Nodder has been named Businessperson of the Year at the Belfast Telegraph Business Awards. The event which took place at the Culloden Hotel, Cultra and held in association with British Airways is considered to be among the most prestigious in the Northern Ireland business calendar. Mr Nodder is the Managing Director of Wrightbus in Ballymena, a post he has held for the past seven years. The accolade recognises his leadership of the company which has enjoyed major success both in domestic and overseas markets. In addition to contracts in Hong Kong and India, Wrightbus was awarded the contract to design and manufacture the high profile “New Routemaster” bus for London - 600 of which are in the process of being built at the company’s facilities in County Antrim. Mr Nodder said: “I am totally delighted to have received this award. It is a great honour.” Congratulating Mr Nodder on his award, NI Chamber Chief Executive Ann McGregor said: “Under Mark’s leadership, the Wright Group has continued to enjoy success in winning major contracts with a focus on innovation and exports. The company is regarded as one of the world’s most innovative manufacturers. “In addition to his significant work for

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TOP PERFORMANCE Anaconda Equipment International has been named as one of Ireland’s ‘Best Managed’ companies in the Deloitte Best Managed Companies Awards Programme. This year’s winning companies were recognised at an awards gala dinner in Dublin with the Irish Taoiseach, Enda Kenny congratulating the award winners in a keynote speech at the event. The Deloitte Best Managed Companies Awards Programme, in association with Barclays Bank Ireland, recognises indigenous Irish companies across the island of Ireland which are operating at the highest levels of business performance. Former CEO of Enterprise Ireland, Frank Ryan, chaired the independent judging panel that took a holistic approach to measuring company performance, looking at strategy, capability, commitment, and management performance, in addition to financials.

Wrightbus, Mark has been President of NI Chamber for the past two years and has been instrumental in initiatives to help grow the Northern Ireland economy.” Mr Nodder originally trained as a lawyer before embarking on a career in industry which has also taken him to planemaker Bombardier and Saudi Arabia's Ministry of Defence. Chamber members who also scooped awards on the night included; Almac, AJ Power, Grant Thornton, Belfast Metropolitian College, SJC Hutchinson Engineering and Henry Brothers.

Brendan Jennings, Deloitte, Shane Mallon, Anaconda and Andrew Hastings, Barclays at the awards.

Stephen McClelland, Schrader Electronics Managing Director, Alastair Hamilton, Chief Executive, Invest NI, Enterprise Minister Arlene Foster and Graeme Thompson, Schrader.

JOBS DRIVE Schrader Electronics is investing more than £56m to create 240 posts at its Carrickfergus and Antrim sites. The jobs will be put in place over the next three years. The company, which makes tyre pressure gauges for the car industry, employs about 1,000 people in Northern Ireland and is a division of Schrader International.

Invest NI has offered £9.7m support, partly funded by the European Regional Development Fund. Enterprise Minister Arlene Foster said the new jobs would generate almost £7m a year in salaries and offer high value employment and training opportunities for local engineers.

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[NEWS]

FOUR TIMES A WINNER For the fourth year in a row Danske Bank has been named as ‘Corporate Bank of the Year’ in Northern Ireland. The prestigious award was announced at the Insider Dealmaker Awards 2014 at Belfast’s Europa Hotel. Danske Bank’s Deputy CEO and Managing Director of Business Banking Kevin Kingston said: “Winning this award for the fourth year in a row is a real vote of confidence in the strength of our brand and the value we continue to add to the local business community through strong relationship management, leading expertise and

our commitment to supporting local business growth. “We have both the appetite and the capacity to lend to good trading businesses in Northern Ireland, with over £450million in new business lending drawn down by existing and new to bank business customers over the past year.” He added: “As the economic recovery continues to gain momentum we believe we have a vital role to play in helping local businesses to achieve their full growth potential.”

Danske Bank’s Deputy CEO and MD of Business Banking Kevin Kingston with Ivan McMinn, Head of Corporate Banking.

COUNT UP AT EY Accountancy and consultancy firm Ernst and Young, now known as EY, is expanding its in Belfast with the creation of nearly 500 new jobs. The company, which already employs 1,450 people across its five offices in the Republic and Northern Ireland, said the 486 new roles would be in various business consultancy fields, including auditing. The jobs will be phased in over the next four years and will contribute £19m in salaries to the local economy. Invest NI is providing just over £3m in grant aid to support the project and the Department of Employment and Learning is also providing training support. First Minister Peter Robinson said securing “these high quality jobs” had been a “real coup” for the region. EY Ireland Managing Partner Mike McKerr said the investment would play a crucial role in delivering services to multinational, entrepreneurial and social enterprise clients.

Denroy’s David Dickson, Production Manager Alan Bradbury, Head of Sales, Jim Knowles and Flight Lieutenants James Milmine and Sarah Waugh.

TYPHOON CREW JET INTO DENROY Denroy Plastics in Bangor recently welcomed Flt Lt James Milmine, Pilot 1(F) Squadron, RAF Leuchars, the pilot of a Eurofighter Typhoon plane to the company’s Balloo Road site to celebrate the fact that Denroy has won a £1m new contract to supply further components. Denroy now supply 180 separate parts into the Eurofighter, the most plastic parts supplied by any single company in the world. Denroy Chairman John Rainey said the new order sees the business look forward to the future with considerable confidence. “Denroy makes plastic moulded products for a massive range of clients, from our world leading Denman brand of hairbrushes, to medical devices and components for the manufacturing and aerospace sectors. We are delighted to have received this new order, and especially to welcome a pilot of the Eurofighter Typhoon aircraft. I know that it¹s great for our staff to hear how the plastic components they make are utilised by the RAF, and other air forces that use the Eurofighter. The Eurofighter Typhoon is a multi-role combat aircraft, capable of being deployed in the full spectrum of air operations, from air policing, to peace support, through to high intensity conflict.

Enterprise Minister Arlene Foster, EY Managing Partner Mike McKerr, First Minister Peter Robinson and Employment and Learning Minister Dr. Stephen Farry.

Ambition Magazine l 13

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[THOUGHT LEADERSHIP]

Using the Power of Place in 2014 Esri Ireland is the Irish partner of long established global geographic information systems (GIS) firm Esri Inc., headed by industry pioneer Jack Dangermond in California. Its aim is to better understand our world by putting location data to use.

Paul Synnott, Country Manager, Esri Ireland

Nowadays information is a key asset and as the rise of browser based map services and GPS-enabled smartphones suggests, geography, big data and high technology are becoming more closely aligned, more widely available and more effective as part of the decision making process.

costs across many industry sectors. For many of us the world of business changed for good in late 2008 when the banking crisis came to the fore. Since then, recession has turned much of our thinking about how we run successful businesses on its head and has created some new realities.

“GIS is based on the very simple principle of attaching a location to every piece of data,”explains Paul Synnott, country manager of Esri Ireland. “This means that as well as being able to answer the questions of what, who and even how much, GIS will also reveal ‘where’ specific activities have taken place. With a paper map, what you see is what you get, but a GIS-generated map has many layers of information for many ways of thinking about geographic space.”

Economic slowdown has forced businesses to rethink how they operate. Geographic Information Systems (GIS) is one area that is helping businesses survive and thrive in the face of all this change. Location is a powerful way to connect people to place, transactions to actions, responses to trends, and customers both to where they do business and what kinds of business they do.

According to Synnott, geographic information is extremely valuable: it is an investment which can improve an organisation’s services and drive cost savings. It can make a significant difference to a company’s way of doing business. “We call this ‘mapping the bottom line’ and there is no doubt that GIS is helping to reduce their overheads and identify where further efficiencies can be made while improving service and delivery levels that are required to get us back on our feet,” he says. It has a part to play in our economic recovery: it helps create jobs, attract inward investment, identify opportunities for revenue growth and reduce

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Revolutionise and optimise business performance The days of asking a simple question and getting a simple answer are gone. We now live in a global economy where the price of a product or service depends as much on supply and demand in your local area as it does on the cost to manufacture, transport and market. Things that happen five or 5,000 kilometres away can have an equal influence on our lives as both consumers and citizens. Perhaps there is no better system than ‘location’ to understand the interconnections of business in the twenty-first century. On a daily basis we use language to communicate

spatial relationships when we use phrases such as “alongside”, “linked to” or “opposite to”. Because of this it’s only natural that business is rapidly adopting “where is?” as one of its most important operational questions and this is manifesting itself in a new breed of business analytics, the geographic analysis associated with location. Location analytics exposes spatial relationships that are otherwise hidden in spread sheets, graphs and word documents and help businesses to explore and investigate market conditions and business performance. Questions about sales revenues can evolve into “How well are we performing in this trading area or sales territory?”, “What impact would a specific marketing campaign have on revenues from this segment of our customer base?” or even “What’s the likelihood that we can get new customers in these areas based on a particular pricing promotion or strategy?”. Focusing on customer success That’s where Esri Ireland comes in. With a staff of 40 and offices in Belfast & Dublin, they’re a wholly-owned subsidiary of Esri UK, and have a client list of over 300 organisations. Much of what they do is based on the belief that knowing where things happen matters to your business and spans desktop, server, web browser, mobile, smart phone and cloud computing platforms.

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[COLUMNIST] PAUL MCGARRITY, DIRECTOR OF OCTAVE DIGITAL

ON MESSAGE… ONLINE THE IMPORTANCE OF BUSINESS LEADERS BEING VISIBLE AND ENGAGING ONLINE SHOULD NOT BE UNDERESTIMATED SAYS PAUL MC GARRITY.

hat do people find when they Google you? It’s a question which more business leaders should be asking because the answer can have a big impact on your reputation. Like it or not, we now live in a world where clients, customers and potential leads research us online. In doing so, they expect to see a strong ‘digital footprint’ so they can find out more about the people they are intending to do business with. Without doubt one of the most effective opportunities to create an online profile is through LinkedIn. LinkedIn is the world’s popular business social media network. By developing a LinkedIn profile you create an authoritative resource on your experience and capabilities that let people find you when they search the internet. As a result you’ll have more control over what happens when people search on Google for your name. However, you need to make sure that you spend time to complete your profile and that definitely includes having a strong profile photo and core information about you as a professional and your career achievements. You can improve your online footprint in other ways too. One of the results of using social media sites such as Twitter and Google+ is that they will appear highly in search engine results when people search your name. Done correctly, this allows business leaders to sculpt the Google search results listings for their own name and thereby create an impressive professional brand online. The benefits of promoting yourself effectively online can be very real especially if you want to attract new clients. I know of several local business contacts who have been approached

16 l Ambition Magazine

for work since the start of the year as a result of having a good LinkedIn profile. According to the latest OFCOM figures, over 53 per cent of people in Northern Ireland use social media. In addition, a very sizable amount of decision makers across all areas of business and government now use social media sites including Facebook, Twitter and LinkedIn. However, most business leaders still shy away from using social media effectively, which is surprising given its importance in modern networking. Many business leaders in Northern Ireland talk about the importance of business development, client relationships, reputation and networking, but don’t yet use social media. Business leaders who are active on social networks and use them will benefit from engaging better with their business peers and gaining leads. One of the most effective ways of promoting yourself as a business professional is via good quality content. Brands and professionals who are successful at modern marketing are adept at creating content that audiences find either interesting, fun or useful.

“THE BENEFITS OF PROMOTING YOURSELF EFFECTIVELY ONLINE CAN BE VERY REAL ESPECIALLY IF YOU WANT TO ATTRACT NEW CLIENTS.” Business leaders can use different types of content from ‘how to’ videos, online guides and social media posts to educate, inform or entertain online. My advice is for business leaders to rely a lot less on old traditional marketing communications and develop content that is interactive and provides an actual benefit for their audiences. While there is no doubt that successful modern marketing requires a very different outlook and a strong level of commitment, there are significant benefits to being visible, transparent and engaging online.

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[FEATURE]

STEP CHANGE SUCCESSFUL SUCCESSION HAS ENABLED THE MOUNT CHARLES GROUP TO CONTINUE TO DELIVER A FIRST CLASS SERVICE TO CUSTOMERS. ADRIENNE MCGILL REPORTS.

aintaining a consistent level of leadership drive is the key to the continued development of any successful business. The difficulty, however, with the continual focus on delivering a management strategy that reflects an enlightened approach is that it sets continually evolving levels of excellence. It is a challenge that The Mount Charles Group based in Belfast has confidently confronted over the past 25 years. Change in every company is inevitable if continued progression is to be maintained. In striking the right balance between setting goals while at the same time understanding that certain targets can sometimes, for whatever reason be missed, makes change achievable. At the heart of The Mount Charles Group philosophy is the forging and sustaining of long-term-human relationships. Cathal Geoghegan, who moved from his former role as Financial Director to the post of Managing Director in 2013 stresses that the company’s core principles revolve around working to, and meeting, the requirements of the client. “We work in an environment where we will always operate in tandem with our customers in order to help them meet their goals. “By the very nature of modern life every business has to operate effectively in many diverse ways. “We live in a rapidly changing world of business, one that needs companies like ours to be able to have the management foresight to continually invest in talented individuals. “They have to have the necessary character strengths to continually redefine the implications of constant market force challenges.” Being able to cope with change, both in terms of accessing new markets and developing complimentary business streams played a significant part when The Mount Charles Group was again the recipient of a Deloitte Best Managed Business Award which it won in March. It was the fourth successive year that Mount Charles had secured the Gold Standard right to be bracketed with companies across the island of Ireland in terms of having exemplary managerial and leadership skills. The company, which started life as a contract catering operation, now employs over 1,500 staff across five

18 l Ambition Magazine

Mount Charles Group Chairman Trevor Annon with Managing Director Cathal Geoghan.

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separate trading divisions in both Northern Ireland and the Republic. The Mount Charles Group currently operates in sectors covering Business and Industry, Health and Education, Retail, Vending and Cleaning and Support Services. In 2011, the company introduced its retail brand Fed & Watered with stylish café bars offering locally sourced food and beverages at the Obel Building in Belfast, Belfast International Airport, Exeter Airport and City of Derry Airport. The Group operates in a fiercely competitive marketplace within Northern Ireland’s current tendering and procurement legislation, often competing against UK based multi-nationals. There is, however, tangible pride in the fact that The Mount Charles Group, as a completely locally owned and controlled business entity, continues to compete strongly on an independent basis and has its roots firmly entrenched in the Province. There is a long list of companies and organisations that continue to benefit from the Group’s local expertise in relation to a multifaceted array of professional services. They range from the Northern Ireland Civil Service to Moy Park, Titanic Belfast and Belfast International Airport. By any standards looking after such a diverse portfolio of clients brings daily pressures of extraordinary complexity. And it made the collection of the latest award from Deloitte even more of an achievement given that it was won on the back of a number of complex inter-locking management changes within The Mount Charles Group. The move of Cathal Geoghegan into the Managing Director role has allowed the company founder, Trevor Annon who established it in 1988, to switch into a strategic ambassadorial role as Chairman. His experience and vast network of contacts are now being channeled as crucial development levers for the Group. Those attributes will be major elements in the expansion blueprint the Group has drawn up in respect of expanding its Republic of Ireland base. The population of the greater Dublin area alone has a population of 2.5 million plus compared with the total Northern Ireland population of 1.8 million. “It is therefore simple economic sense for us to put in place the structures that will help us unlock what is a huge potential market,” says Trevor Annon. “Logically if we are to continue progressing and expanding we need to be ready to meet the demands of a resurgent economy in all corners of the island.” Being ready for fresh challenges on all fronts has always been fundamental to The Mount Charles Group ethic. Essentially during the past 12 months the

Irish Taoiseach Enda Kenny presenting Trevor Annon with a Deloitte Best Managed Business Award in recognition of The Mount Charles Group’s excellence.

company has faced the dual task of reconfiguring its senior management team while working towards securing new corporate headquarters in Belfast. The refurbishment of Wilton House, a classical Georgian building in College Square North is another statement of commitment to the regeneration both of Belfast and to the underpinning of the economic health of Northern Ireland. By putting in place the necessary levers to start the process of developing a new £2m headquarters in the city centre, The Mount Charles Group see this strategy as part of a wider evolutionary process. Trevor insists that the Group’s ability to continue expanding its horizons, while retaining its focus on the essential human resource factor are the vital components of its success. “We are confident that we now have in place a leadership team with the necessary skill set to cope with the changing economic landscape. “Of course there are still many legacy elements of the worst part of the recession that we have to negotiate. “However, given that there is now a much more positive economic outlook we want every single member of our company to feel, and believe, they can make a positive contribution to the expansion of the company.” There are many organisations that over the years have set their sights on being recognised

by their peers as a yardstick of management quality. The problem however is not in achieving that type of accolade. It is in maintaining and building on that critical recognition factor. By winning what is regarded as the most prestigious business management award for the fourth time in seven years, The Mount Charles Group has continued to display special qualities to cope with the impact of economic turbulence. The Group has shown that by investing from ground floor up in its personnel, it has thrived.

“LOGICALLY IF WE ARE TO CONTINUE PROGRESSING AND EXPANDING WE NEED TO BE READY TO MEET THE DEMANDS OF A RESURGENT ECONOMY IN ALL CORNERS OF THE ISLAND.”

Ambition Magazine l 19

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[COLUMNIST] ANGELA MCGOWAN, CHIEF ECONOMIST AT DANSKE BANK

A RING OF CONFIDENCE GOOD NEWS AROUND CONSUMER CONFIDENCE – BUT WHY IS IT IMPORTANT? ASKS ANGELA MCGOWAN

anske Bank’s consumer confidence index is a measure of the level of optimism that local households have around the economy and their own personal financial situation. The index looks at the financial position of local households relative to last year, as well as their expectations for personal finances, spending, savings and also job security in the year ahead. Just over 1,000 people are surveyed every quarter. This measure is important because there is such a strong relationship between consumer confidence and private consumption. Indeed across the UK, household expenditure accounts for about 60 per cent of the expenditure measure of GDP. The good news is that consumer confidence in Northern Ireland has continued to go from strength to strength. During Quarter 1 this year the index surged upwards to 132 - rising by 9 points over the quarter and an impressive 28 points since the same period last year. All aspects of the survey are now sitting at their highest point since the survey began in September 2008. This strong recovery in consumer confidence undoubtedly augers very well for the economy in the year ahead. This latest rise in local confidence levels reflects the fact that the wider economic environment has improved substantially. While the global economy has stabilised, the UK economy has also really taken off and is set to grow by roughly 3 per cent this year. In addition, low inflation is supporting household disposable incomes and consumers are aware that the labour market is improving. Furthermore, home owners are encouraged by the fact that local house prices have recovered (Northern Ireland house prices grew by 2.7 per cent on average in January 2014 relative to one year ago) and credit conditions have also eased – which helps to support potential buyers. While the majority of respondents (60%) believed that their personal finances would stay the same over the next 12 months, nearly one in five respondents (18%) expected that their finances would in fact improve. The number of households believing that their finances would deteriorate in the next year fell back to 18 per cent compared to 34 per cent this time last year. Retailers will be pleased to hear that spending expectations have continued to improve. Just over one in five people (21 per cent) are planning on spending more on ‘bigticket’ items in the year ahead (up from 17 per cent in the previous quarter). This aspect of the confidence survey also benefited from

20 l Ambition Magazine

a declining number of households who intend to curb their spending. In March last year, a full 41 per cent of households planned to curb their spending - this has fallen back to 26 per cent. The majority of households (55%) believed their financial position did not change over the year. However, 16 per cent of those surveyed said their financial position had actually improved over the last 12 months. The number of households that believed that their finances had deteriorated over the last 12 months declined to 28 per cent in the latest survey from 45 per cent one year ago. Approximately 79 per cent of local households believe that their job security will either be unchanged or will actually improve over the next 12 months. Over the latest quarter the number of households that believed their job security would deteriorate in the months ahead fell from 14 per cent to 9 per cent. Big announcements such as the creation of 1,000 new jobs at Concentrix in Belfast will help to support confidence levels. Around 62 per cent of households in Northern Ireland expect to make no change to their savings behaviour in the year ahead. However, 11 per cent intend to save more and 23 per cent intend to save less.

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FOCUS ON ACCESS TO FINANCE As economic activity in Northern Ireland continues to strengthen – the clear signs are that a recovery is well underway. But Access to Finance, particularly for Small and Medium Sized businesses (SMEs) remains a concern and has been identified as one of the major problems facing firms here. In this section, we look at the issue and hear from a range of commentators across financial institutions, business consultancies, economic agencies and also from a business angel network about what is being done or needs to be done to help companies to grow - or to find the funding they require.

[FOCUS ON ACCESS TO FINANCE]

FINDING FINANCE TO FUND FIRMS A VARIETY OF ECONOMIC REVIEWS, STUDIES AND STRATEGIES ARE, OR HAVE BEEN TAKING PLACE, IN A BID TO MAKE ACCESS TO FINANCE AND BUSINESS GROWTH ACHIEVABLE IN NORTHERN IRELAND. ADRIENNE MCGILL PUTS THEM INTO CONTEXT.

ore than five years since the collapse of Lehman Brothers, the subsequent global financial crisis and the onset of one of the longest and most protracted recessions in history, the signs of recovery in Northern Ireland are finally beginning to emerge. The latest Northern Ireland Composite Economic Index (NICEI) shows economic activity increased by 0.6 per cent over Quarter 4 2013 and 2.6 per cent over the year. Unemployment is gradually falling (down 4,000 over the year) and employment is rising (up by 22,000 over the year). However, Northern Ireland’s recovery remains fragile. The Northern Ireland Chamber of Commerce and Industry’s Survey for Quarter 1 2014, while showing some signs of improvement, also points to areas of concern. Both the manufacturing and services sectors continue to face challenges in areas including investment, recruitment and cashflow. Northern Ireland’s smallest firms particularly are struggling to recover, stabilise and grow. The Chamber’s Quarterly Survey also shows that the pace of Northern Ireland’s recovery is slower than the UK as a whole, perhaps not surprising given that the region has suffered a longer and deeper recession. A large contributory factor to this has obviously been the extent of the fallout from the property collapse here. This had left a debt legacy that has had and continues to have significant implications for both the demand for and supply of finance to businesses in Northern Ireland and what might be termed as a return to a ‘normal lending environment’. It is further complicated by the structure of bank ownership here and the fact that the lending environment is inextricably linked with two banking systems in the UK and Republic of Ireland. 22 l Ambition Magazine

The importance of access to finance and its implications for economic recovery has received significant attention from both national and local government along with the business community in Northern Ireland. The issue was extensively raised in consultation responses to the Executive’s Programme for Government and Economic Strategy. It also prompted the Economic Advisory Group (EAG), which provides independent advice to the Minister for Enterprise, Trade and Investment, to undertake a Review of Access to Finance for Northern Ireland businesses. The findings from the Review were published in March 2013. The EAG Access to Finance Review focused on quantifying the scale and nature of issues impacting on Northern Ireland SMEs seeking to access finance. It pointed to a ‘challenging time both for Northern Ireland businesses and for banking in Northern Ireland’, the unsustainable position of lending in Northern Ireland up to 2008 and what has effectively been a ‘painful’ correction since then. The evidence suggested that both the demand for and supply of finance in Northern Ireland was relatively constrained as businesses struggled to repay existing debt and banks focused on strengthening their balance sheets and deal with the build-up of property debt. Businesses also had to come to terms with the fact that there had been a dramatic shift in lending policy by banks in terms of lending costs and repayment criteria. The Review also pointed to the relatively unsophisticated lending market in Northern Ireland with a high dependency on banks, particularly overdraft finance and limited use of non-traditional sources of finance including private equity. The EAG Access to Finance Review put forward 13 recommendations aimed at improving the lending environment in Northern

Ireland involving government, the banks and business organisations. A priority action was the introduction of an independent implementation panel (AFIP) to drive forward the realisation of those recommendations. The Panel was announced in October 2013. Other recommendations included a review of uptake of UK finance initiatives which was identified as a particular issue in the Review along with the need to increase early stage funding to business. Greater interaction between banks, the business community and government to provide a better understanding of the issues from both a borrowing and lending perspective was also recommended. Members of Chartered Accountants, Ulster Society, have also raised concerns around business access to finance in Northern Ireland. The Society annually surveys its members on their views of the performance of the Northern Ireland economy as well as dealing directly with perceptions around the demand for and availability of finance. Since the onset of the recession here there has been widespread agreement among members that finance to business had become less available, more costly and as a result was impacting on investment plans. The Ulster Society’s latest survey, undertaken in January 2014, shows that concerns

around finance availability and its implications for business growth plans remain. The majority believes that the demand for finance is increasing but that the terms of lending to business have become more onerous. Four in five members believe that viable investment plans are being put on hold because businesses cannot access finance. There is also a view the focus remains on traditional lending products and sources with a particular overreliance on overdraft/loan finance. Chartered Accountants believe factors currently impacting on business access to finance in Northern Ireland reflect issues of both supply and demand. In terms of supply a lower appetite among banks to lend is considered to be the most important factor followed by a lack of alternative funding options beyond bank finance. From a business perspective, the ability to provide sufficient security and the greater likelihood that businesses are servicing property debt are considered very important as are issues around the ability to meet existing repayment commitments and the fact that businesses in Northern Ireland are too heavily geared. The Northern Ireland Select Affairs Committee is also currently holding an Inquiry into the banking structure in Northern Ireland. The inquiry has several strands including access to finance, particularly for SMEs and the lack of

effectiveness of national initiatives to help aid recovery here. The Committee has recently completed taking evidence from a wide range of stakeholders including local banks, business representative bodies, the Treasury and Bank of England. A report is expected shortly setting out the Committee findings along with a series of recommendations to which the government has two months to respond. There is certainly a strong appetite at government level, both locally and nationally, to understand and, where possible, address issues around access to finance for businesses in Northern Ireland. The evidence would suggest that it is still a particular area of concern and one that could hamper recovery. The EAG made this point when it noted that as the economy recovers and the demand for finance to support business growth increased, difficulties of access to finance could become more acute. This makes interventions like the EAG Implementation Panel and the forthcoming recommendations from the NI Select Affairs Committee particularly important in ensuring that when sound and viable business growth propositions come forward in Northern Ireland the finance is in place to support them.

* See A New World Of Funding, pages 44 and 45.

“THERE IS CERTAINLY A STRONG APPETITE AT GOVERNMENT LEVEL, BOTH LOCALLY AND NATIONALLY, TO UNDERSTAND, AND WHERE POSSIBLE, ADDRESS ISSUES AROUND ACCESS TO FINANCE FOR BUSINESSES IN NORTHERN IRELAND.”

Ambition Magazine l 23

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FOCUS ON ACCESS TO FINANCE

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ENABLING ENTERPRISE THROUGH CASH FLOW MANAGEMENT MANAGING YOUR WORKING CAPITAL EFFECTIVELY CAN BE A WAY OF GAINING COMPETITIVE ADVANTAGE, SAYS KAREN MCDOWELL, BUSINESS DEVELOPMENT MANAGER AT BANK OF IRELAND UK COMMERCIAL FINANCE.

orking capital came under the spotlight during the recent downtown as many SMEs felt the pressure. But just because confidence and economic indicators are on the upturn doesn’t mean that the focus on it can be relaxed – in fact, it’s quite the opposite. Cash flow lies at the heart of any successful business. A lack of working capital can certainly constrain a business’s ability to grow – and in some cases threaten its existence – but as prospects improve, proper management of working capital can give you an advantage over your competitors. Profitability doesn’t always mean financial health as often liquidity and cash in a business can be absorbed in a number of ways – through the need for working capital, through capital expenditure or through drawings or dividends. According to research undertaken for Bank of Ireland, 35 per cent of Northern Ireland businesses say that managing and appropriately funding working capital is their single most pressing concern. It’s little surprise, then, that more than 45,000 businesses in UK and Ireland have chosen to

Scenario 1 Stock Debtors Creditors

1½ Months 2 Months 1 Month

Stock Debtors Creditors

60% x £5m x 1½ /12 £5m x 2 /12 60% x £5m x 1 /12

24 l Ambition Magazine

fund their needs using specialist working capital products, according to the Asset Based Finance Association (ABFA). Reducing debtor days, increasing creditor days and improving stock turn will all help manage cash flow. But getting that balance just right can be a challenge even for the best finance managers in the top companies. For example: If your business has annual sales of £5m, assuming input costs are 60 per cent of sales, you can see from the example below how effective management can impact the level of funding required. Depending on how tightly the business manages working capital the funding requirement may be as low as £500,000 or as high as £1,625,000. Another useful measure in managing cash flow requirements is the working capital ratio, an indicator of the business management of stock, debtors and creditors. It is calculated as (Stocks + Trade Debtors – Trade Creditors) / Sales. In scenario 1 the working capital ratio is 0.19 which means the business needs 19p of working capital for every £1 of annual sales.

Scenario 2 Increase to 2½ Months Increase to 3 Months Remain at 1 Month £000's £375 £835 -£250 £960

60% x £5m x 2½ /12 £5m x 3 /12 60% x £5m x 1 /12

Scenario 3 Reduce to 1 Month Reduce to 1½ Months Increase to 1½ Months £000's £625 £1,250 -£250 £1,625

60% x £5m x 1 /12 £5m x 1½ /12 60% x £5m x 1½ /12

£000's £250 £625 -£375 £500

If annual sales increase by £100,000 then you will have to invest £19,000 in working capital to be able to meet this. Some business have sufficient cash reserves built up to fund their working capital needs but for many new or growing businesses , reserves can be stretched and a variety of funding options are available including Invoice Discounting, Asset Based Lending, Overdraft and Factoring. The most traditional and well known form of working capital funding is an overdraft facility which is suitable for most business. However, if you have an ongoing need for working capital investment Invoice Discounting may be a more flexible solution. ABFA calculates that Invoice Discounting funded £270 billion pounds of sales by UK and Irish business during 2013, a rise of 11 per cent on the previous year. It is a product which has proved to be a versatile and efficient source of finance that enables

business to convert trade debts into cash to help meet the day to day financial needs. Invoice Discounting is the product of choice for many strong and successful businesses across a range of industry sectors including manufacturing, distribution, service and transport. It is helping those companies thrive in both the domestic and export markets by providing access to working capital funding which keeps pace with their growth as well as assisting with foreign currency management. Part of the appeal of Invoice Discounting is that it is completely confidential, with the customer retaining the management of their sales ledger and responsibility for collecting debtor receipts. However, at the point of sale when invoices are raised the customer can notify the bank online of the total value and avail of a prepayment of up to 85 per cent on the same day, with the balance being payable when the debtor payment is received. It is a

self-securing facility with the debtor book providing the security for the funding. If your business is focused on the opportunities presented by renewed economic growth, it is worth bearing in mind that meeting your increased working capital needs using traditional methods such as an overdraft or term loan may not give you the flexibility of funding that Invoice Discounting can provide. As your sales grow, the value of your debtor book grows and therefore so does the level of potential funding available to you. Invoice Discounting is surprisingly cost effective and, depending on the level of borrowing, can sometimes be less expensive than more traditional forms of funding. To explore the opportunities for your business to enable enterprise through cash flow management why not take some time to talk to your bank about Invoice Discounting or other asset based finance options.

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FOCUS ON ACCESS TO FINANCE

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MAD MONEY IT DOESN’T HAVE TO BE A MAD SEARCH WHEN IT COMES TO FINDING FUNDING FOR A BUSINESS SAYS ALAN WATTS, DIRECTOR OF HALO, THE NI SCIENCE PARK BASED BUSINESS ANGELS.

f you’ve ever seen the film Mad Money, it’s about people up to their eyes in debt who come up with a scheme to get their hands on the bank’s money. And while I’m not advocating bank robbery as a legitimate business technique, there are many who believe you have to be mad to ask the banks for money and the banks mad if they consider lending to newer or small companies right now. So, if everyone’s mad, then how do the companies we need to grow in Northern Ireland get their finance? In fact, contrary to popular belief, I don’t even believe the current chronic lack of finance available to local companies is really the banks’ fault. Sure the banker formerly known as Sir Fred and the like caused the recession and the mountains of debt with their short term greed. But for many years before this, we’d been living out a sort of benign fantasy that the banks existed to finance companies, all companies, including those just starting out without a product or sales. And in the days of easy money supply, they sort of did. They shouldn’t have of course, because normal banks are not supposed to, or designed to take these risks. Their forte should be to assess the needs of trading companies and provide lending based on either assets or reasonable ability to repay. So it’s not surprising then that it all ended in tears. So right now they are in damage repair mode, lending only to their safest and best able to repay customers while repairing their own balance sheets. And companies know this and mostly aren’t applying to them for finance. Applications are well down as firms believe it’s a waste of time. So many plans for growth and new products might now perhaps be seen as a bit mad too. The banks are overreacting to be sure, but this is also a swing back to what should be their core market. And when the dunce’s caps are taken off and the madness subsides, hopefully they will lend more freely to industry – but always with a view to relatively safe lending against specific goals or assets. Good old boring banking and amen to that. So where does that leave new, innovative, 26 l Ambition Magazine

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growing and especially small companies who need finance? If they shouldn’t have been chasing banks for ‘the wrong type of lending’ in the first place, then where are they to get finance from? Well, fortunately there are a number of good answers, some driven by Northern Ireland government intervention. And one of the best ones is equity finance – that is giving shares away in return for money. And there are different types of this available too, angel investing, seed funds and certain types of crowdfunding. But before any company looks to these sources, they should clearly look at other sources of ‘cheaper’ money. Many start with family and friends and also grants. These are great starters and Proof of Concept and R&D grants especially are very good for getting at least nearer to having the magic thing in your hands you are going to sell. This is especially helpful when you move to equity finance where in simple terms the amount of your company you have to give away is directly related to the risk involved. If you’ve already got your new product developed, perhaps with some users or even customers, then your company is less risky. So use grants and the like to get as far as you can before looking for your mad money. Angel investing is a great way to get equity and more. A good group of business angels investing in your company will bring experience, contacts and expertise which will

help you grow. I run Halo which is the Northern Ireland business angels network and this group of well-heeled private investors have committed nearly £7m from their own pockets to buy shares in local companies. Halo is actually a lot more than the classic ‘dating agency’ network. These days we have two angel groups/syndicates working within Halo which transform angel investing from lone wolves to organised gangs. And with partnerships with angel groups in Scotland and London, we have 15 per cent of our angels not based in Northern Ireland and a growing ability to syndicate later stage rounds with others. Our recent Halo investment meeting was in the Throne Room at Hillsborough Castle in the presence of HRH The Duke of York. A sign that angel investing has come of age in Northern Ireland. Recognising a need not being met by the market, Invest NI has introduced a number of measures such as the NISPO Funds. These include the Invest Growth Fund which is a seed fund investing around £1m each year in high growth potential companies, often but not exclusively in technology. This fund also requires some private money to be included

“A GOOD GROUP OF BUSINESS ANGELS INVESTING IN YOUR COMPANY WILL BRING EXPERIENCE, CONTACTS AND EXPERTISE WHICH WILL HELP YOU GROW.”

in the deal, often from Halo angels. The new kid on the block is crowdfunding, which comes in both debt and equity flavours and is already operating in Northern Ireland. Equity crowdfunding means that a relatively large group of people view your pitch online and invest usually smaller amounts of money for shares. It’s still relatively new but growing quickly and Northern Ireland companies like Mike’s Fancy Cheese and Brewbot have already received significant investment. At Halo we embrace this and already have a partnership agreement with two of the properly FCA regulated equity sites – Seedrs and Crowdcube. This allows us to offer the right option for companies – which might be straight to the angels, or the crowd or a mixture of both. Equity investing in early stage companies is high risk. It clearly is mad money, but it is important mad money. Because if we can’t get a good supply of funding to our innovative Northern Ireland companies – well that really is mad.

• More information about Halo, the NI business angels can be found at www.haloni.com . Alan can also be contacted through this site.

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STANDING OUT FROM THE CROWD ONLINE MATCHMAKING BRINGS CROWDFUNDING OUT OF THE SHADOWS TO TAKE ON THE BANKS AS IAIN LEES, CORPORATE FINANCE AND FUNDING SPECIALIST WITH PWC IN NORTHERN IRELAND EXPLAINS.

hen Darlington Football Club raised £55,000 to help find and fund a ‘new’ home ground, it didn’t get the money from the bank. Instead, 36 investor fans put their hands in their pockets and got a 14 per cent equity stake in return. From rewarding micro-brewery investors with free beer to being the first backers to get new computer games, modern crowdfunding uses the internet to get lots of people connecting together to support and finance things they care about, a point not lost on football clubs like Darlington FC. Today, the banks are under siege. Investors and borrowers complain of complexity, regulation and seemingly endless penalties, while politicians look at bonuses and perceive that banks are being run for their managers rather than their customers - let alone their shareholders. As a result, the regulators are making banks hold more capital, which earns next to nothing on deposit with the Bank of England and its international equivalents. As a consequence, the banks can't pay high interest to their depositors, while lenders, on the other hand, pay substantially higher rates than they paid pre 2007. This disconnect, the banks argue, is necessary to allow them to "rebuild their balance sheets". This long process of rebalancing or rebuilding might be perfectly reasonable and understandable from a bank perspective, but the internet waits for no one and crowdfunding has moved from the margins to become a serious means of raising serious money. And when respectability beckons and minority activities go mainstream, things change. So, say goodbye to crowdfunding and welcome Peer-to-Peer lending. Irrepressible e-commerce entrepreneurs have launched a proliferation of Peer-to-Peer lending internet sites (Zopa, Crowdcube, Abundance, Kickstarter, Funding Circle, Indiegogo, Rockethub, and many more). These allow saver/investors to make a few extra percent return on lending their money, and facilitate lenders to access borrowings that are either cheaper or 28 l Ambition Magazine

simply would not be available through conventional banks and financial institutions. These crowdfunding websites are industrial-scale, online financial matchmakers; cash-cupids that match companies, partnerships and individual borrowers with savers looking for better than banking returns and who are prepared to put their cash away for a longer period in order to get them. But as one intermediary web-cupid says, Peer-to-Peer may look like saving and even taste like saving, but as there’s no savings safety net, it smells much more like an investment and investments can go up – or down. A few weeks ago, Facebook paid $2bn for a virtual reality company, Oculus VR, but 9,522 people were not happy. Between them, they invested $2.4m in Oculus VR, when it was launched in 2012, but when the company was sold, they got no cash from

Facebook, just ‘rewards’ from Oculus via the crowdfunding website. There was nothing wrong or underhand with that, simply because the early funders were never promised shares in the company. But the story highlights two things. Firstly, that companies launched and backed by crowdfunding can become real winners; and second if you do contribute to a crowdfunding business or activity, be very sure what you’re getting. The best of Peer-to-Peer matchmaking is not just webmasters simply shoveling investor’s cash to the first aspirant borrower in the queue. Borrowers are subject to credit checks and strictly rated according to risk, with the most professional websites recovering your interest and capital when it falls due and that’s how they earn their fees. Peer-to-Peer lending sites are pervasive

across the US tech industry, but, interestingly are even more commonplace and in a wider range of investments conversations in the UK. This is probably explained by the UK’s more entrepreneurial service sector as compared to Europe and the USA, the more measured approach taken by the UK regulators and a greater perceived market failure of the UK's traditional financial institutions. Collectively, these three elements have left a greater space, for development, between savers and borrowers, which the Peer-to-Peer platforms and their borrowers and lenders have been quick to exploit. For a borrower, the benefits are clear. At the top end of the market, the financial promotion of new shares can happen without the costs and risks of having to float a company. At the more modest end of the funding spectrum Peer-to-Peer offers access to cheaper funds by cutting out the middle man – the banks. Banks have traditionally aggregated up savers' money, but internet sites can do this much

“THE INTERNET WAITS FOR NO ONE AND CROWDFUNDING HAS MOVED FROM THE MARGINS TO BECOME A SERIOUS MEANS OF RAISING SERIOUS MONEY.”

more cheaply and without having to run branches and employ lots of staff. This also means minimal administration so the lender sees fewer charges deducted from his investment stake. As a consequence most sites can pay their lenders up to 6 per cent or 7 per cent p.a., which compares to the best bank rate of 3 per cent available as at the end of March. So where's the catch? Until a couple of weeks ago and Budget 2014, there were 2 catches. But from 2015, certain (and maybe even most) Peer-to-Peer platforms will join bank accounts and benefit from the ISA income-tax free status, up to the annual £15,000 allowance.

The other catch - risk - will not be so easily equalised. Today, the first £85,000 deposited in most bank or building society accounts in the UK is protected by the Financial Services Compensation Scheme, but Peer-to-Peer loans are not. Certain sites like Zopa have recognised this potential concern, and have brought in their own capital protection mechanism as part of their shift into mainstream SME and personal lending. The cost of such a protection scheme is to bring returns down to 5 per cent - still 2 per cent clear of the best bank and building society deals. Peer-to-Peer lending is definitely here to stay, but can it grow to compete with the best of the traditional commercial lenders? Watch this space.

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GROWING PAINS FORWARD-LOOKING COMPANIES CAN FULFILL THEIR 2014 GROWTH ASPIRATIONS WITH CAREFULLY INFORMED FINANCIAL DECISION-MAKING SAYS HARRY PARKINSON, MANAGING DIRECTOR OF CLOSE BROTHERS COMMERCIAL FINANCE (IRELAND).

he early part of a new year is naturally a time when companies take stock and set ambitious targets for the months ahead and this has never been truer than for 2014. After a long period of stagnation, the economy is finally showing signs of recovery – the British Chambers of Commerce predict it will finally pass its pre-recession peak this year – allowing businesses to put plans into action and once again start thinking in ‘growth mode’. The latest results from the Close Brothers Business Barometer, a quarterly survey of more than 600 UK SMEs across a variety of industry sectors, reveals that a third of businesses have expansion plans for the year ahead.

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For many this will be organic growth but for others seeking to outperform the wider economy, or to achieve their growth ambitions more quickly, it may mean considering mergers and acquisitions, refinancing or perhaps a management buyout (MBO). Whatever the channel of growth, the million-dollar question is how to finance it. Lots of companies have the ambition to expand, but lack the means to do so. For example, for businesses determined to grow quickly a strategic acquisition can be a transformative moment in their evolution, but it requires deep pockets. Findings from our Barometer show that more than half (55%) of respondents wouldn’t know where to turn to in order to

fund an acquisition or MBO. In an era where bank lending is still difficult to come by, it’s disconcerting – and in fact detrimental to a recovering economy – that more SMEs aren’t aware of all the potential funding options available to them. On a more positive note however, one in four of those businesses that did know how they would fund such expansion plans, said they would use asset based lending, compared to 32 per cent who would seek bank finance. Once considered a last-resort finance option, the tide is clearly turning for the asset based finance industry with businesses increasingly understanding the value of asset based lending (ABL) as a robust funding solution designed to support growth. ABL releases cash from a sales ledger but

crucially it also enables management teams to leverage assets – be they inventory, plant and machinery, or real estate – from their business to unlock greater funding and provide the necessary headroom to support business growth. When it comes to funding an acquisition of any sort, ABL’s flexibility, scalability and dynamism are its key advantages. Its intrinsic link to a firm’s cash flow means it is better positioned than traditional forms of lending to grow in-line with revenues, enabling companies to capitalise on growth opportunities. Unlike other forms of finance, the advantages of ABL don’t just extend to facilitating the original deal. This form of finance can provide excellent levels of support in the months and years following completion. If the acquisition funding is provided on a revolving basis, via receivables and stock, the facility can continue to grow post-acquisition, in line with a company’s sales. This reduces the strain on a company’s cash flow during the often difficult post-deal phase. The flexibility of ABL is especially relevant and useful if a business needs to implement unforeseen operational changes after a deal. An element of ABL within the deal structure

can provide managers with the headroom to make any necessary adjustments quickly. While 2014 hopefully marks a return to growth opportunities for many companies, from experience we would sound a note of caution. It is a little-stated truth that as an economy grows following a period of recession, the number of company failures is greater than when the economic slide began. Over-trading, as it is commonly referred to, is fundamentally when a business runs out of cash. This is most evident in manufacturing companies when businesses have to commit to the raw material to make the products that are in demand due to rising sales. Unfortunately this typically results in a negative cashflow situation as payment for the finished goods might not come in for three or four months, but the payment to the supplier is often on 60-day terms or, sometimes, payment up front. Any business can succumb to negative cashflow if the gap between funding new work and being paid for invoices that have already been issued grows too large. Traditionally, each time the economy recovers from a recession or downturn, a large number of businesses fall victim to over-trading and end up failing in what should

be good times, despite having survived years of bad. That need not necessarily mean turning down orders. Businesses might want to consider using invoice finance as a means of managing cashflow between invoices being issued and paid. Both invoice finance and ABL work harmoniously alongside each other to ensure your business is best positioned to take advantage of any growth opportunities that come your way. In sum, the asset based finance industry, and ABL in particular, has never been in better shape - it is currently one of the few forms of lending that is growing - and that’s good news for business. As asset based lenders have better security over their lending they can deliver far more aggressive and competitively priced facilities than their more traditional counterparts. 2014 looks set to be another year of increased economic activity for the UK. With the right funding in place, businesses can take full advantage of the opportunities it will bring.

“LOTS OF COMPANIES HAVE THE AMBITION TO EXPAND, BUT LACK THE MEANS TO DO SO.”

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GETTING TO THE HEART OF THE MATTER THERE ARE MANY INTRICACIES ASSOCIATED WITH THE ISSUE OF ACCESS TO FINANCE FOR SMES IN NORTHERN IRELAND. DAVID WATTERS, MANAGING PARTNER OF RSM MCCLURE WATTERS, SHARES HIS VIEWS BY ANSWERING A SERIES OF QUESTIONS POSED BY AMBITION.

o what extent has Access to Finance restricted growth in recent times here in Northern Ireland? That’s a difficult question to answer given the number of complexities. For several years now, I have said to those who would listen that the downward trend in overall Net Lending is the major issue for the Province. With all the banks operating here owned and headquartered elsewhere, the priority has been to reduce Net Lending and the associated exposures to a country with a population of 1.8 million, a heavy dependence on the Public Sector, a turbulent past and a fiscal deficit of nearly £6,000 per person. A recent InterTradeIreland study on Access to Finance highlighted an inability to obtain figures for overall Net Lending from the banks despite representations from our Executive to HM Treasury, the Bank of England and the banks themselves. To date, some sectoral data has been offered which is likely to be of limited use as it is not comprehensive and complete. Liquidity, the ability to access cash with ease, is the problem affecting growth prospects.

Finance Guarantee (which replaced the SFLGS), have not been widely taken up, and this needs further investigation and action.

essential to growing the SME sector. DETI and Invest NI have been developing initiatives in this space, but more are needed.

Why is this a problem? It’s a problem because, as many individuals and firms are required to pay down debt from available cash flows, there is no spare money available to fund research, growth or investment. Hence the success of the Loan Fund operated by Whiterock Capital Partners which has approved around 70 unsecured term loans in the last 18 months. These borrowers are growth businesses and key to the creation of a robust Northern Ireland economy. They are having to pay quite a lot for working capital finance they can’t get elsewhere. I believe this tells the recent banking story.

What do you think could be of benefit? A Northern Ireland based Business Bank along the lines of the British Business Bank could be a starting point. At a recent conference on Access to Finance held by the Ulster Society of Chartered Accountants, Kevin Kingston, Danske Bank Deputy CEO, advocated various measures which he felt would be of use. One thing he proposed of particular interest is the idea of a mezzanine fund to deal with the legacy of property debt hanging over the heads of some good quality trading companies. I would strongly support his views in this regard.

Why have national initiatives not been taken up to any great extent in Northern Ireland? The availability of cheaper money to the banks and their desire to lend does not change a bank’s credit approval processes. When banks talk of a lack of demand, what they really mean is there is a lack of viable demand. If a borrower has only enough surplus cash flow to pay back existing debt on the basis of existing trading security, it is not viable to lend it more even if it is for growth! Northern Ireland needs more relevant and targeted initiatives, and it needs them now. Other Schemes such as the Enterprise

What else could help SMEs Access Finance? There needs to be a system of advice and support for prospective borrowers to help them obtain finance. The way of working between banks and prospective borrowers has changed with banks putting businesses through onerous processes which deters them from seeking finance. Meanwhile borrowers haven’t changed enough. We need the banks to simplify their processes and increase transparency and we need promoters to submit more commercially robust proposals. Many SMEs need help to provide them with the skills/expertise to build these cases. Investor Readiness supports are

Have you any final thoughts on Northern Ireland’s future? Northern Ireland has so much potential that’s just waiting to be realised. Banks have nearly repaired themselves and are beginning to move forward collectively not just scavenging amongst each other’s better customers. If some SMEs have survived this long, there must be a chance they can recover full health in the future and maintain employment in various sectors and regions. For growth in the Northern Ireland economy to happen, there urgently needs to be the rebalancing of public vs. private often referred to in our Economic Strategy. Sadly, I have seen little evidence of this shift to date. If the like of NILGOSC had an investment policy that committed it to encouraging growth in Northern Ireland, in a similar way to what’s happening in the South, that would be evidence that the Public Sector is willing to help grow our economy. Remember the Loan Fund operated by Whiterock Capital Partners was 50 per cent funded by NILGOSC and look at the impact it is having. NILGOSC and others should be asked to invest more of the several billion they have available, in Northern Ireland, which is where the money came from in the first instance.

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[AMBITION PROMOTION]

A Word of Advice Vicky Dummigan is a Partner in the Corporate Department of Tughans with significant experience of working with venture capital and private equity funds, investee companies and angel investors at all stages of equity funding. Here she shares some practical advice for any SME considering equity funding.

What are the top three things that a company can do to make an equity funding round as smooth as possible? In our experience, those companies who go into a funding process with a really well honed business plan and financial pack find it quicker and easier to attract investment and close the round. This may be because the company’s requirements for, and challenges to, growth are clear. It allows the company to target the right investor who can provide not only the initial funding requirement, but also desired connections or experienced non-executive directors, additional money for follow on funding etc... It also allows the investor to analyse the company much more quickly and see the potential for realising the investment. The second recommendation would be to ensure that, as far as possible, the company’s affairs are all in order before the funding process commences. It is fairly common for funders to discover issues in due diligence that need to be dealt with prior to completion of an investment. These are often ‘paperwork items’ that can be easily remedied, but can have significant legal consequences if unresolved and therefore can add delay and cost to the deal. Beyond that, the importance of choosing the right investor (that the management team is confident about working with) and having experienced professional advisors (who can provide advice on ‘industry norms’ and help to find workable compromises in deal negotiations) is essential.

Vicky Dummigan

Does equity investment equal a loss of control for existing shareholders? This perception is often a major inhibitor to family businesses looking for equity investment, but our experience is that in the normal course of trading it is definitely not the case. The most successful equity investments that we see are those where the investor has a great working relationship with the company’s management team from the outset and an alignment of interests that helps to fuel the company’s growth. Most investors would agree that regardless of what the legal documents say, real control lies with the people who run the business day to day. For that reason most investments are heavily based on the investor’s faith in the management team. In the event that the relationship does sour, the protections granted to both parties in the investment

documents should provide a road map for resolution, and so require careful consideration at the outset. Are equity investors only really interested in high tech companies? Our experience is that while high tech companies are often good candidates for equity investment, local funders are actively looking to diversify their portfolios and are very happy to consider companies across all sectors where there is high growth opportunity and good exit potential. Many of the equity funds who are active in Northern Ireland would describe their funds as generalist (as opposed to sector specific) but networking can be key here, as often professional advisors and other intermediaries are aware of what sectors are of particular interest to particular funds or investor syndicates from time to time.

Vicky Dummigan, Partner T: 02890 55 33 00 E: Vicky.Dummigan@tughans.com Tughans Solicitors, Marlborough House, 30 Victoria Street, Belfast BT1 3GG www.tughans.com Ambition Magazine l 33

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PLUGGING THE FUNDING GAP CASH AND ACCESS TO FINANCE HAS BECOME, MORE THAN EVER, A CRITICAL LIFELINE FOR ANY BUSINESS. WILLIAM MCCULLA, INVEST NI’S DIRECTOR OF CORPORATE FINANCE, DETAILS THE RANGE OF FUNDS DEVELOPED BY THE ECONOMIC DEVELOPMENT AGENCY TO HELP COMPANIES GROW.

A number of factors have resulted in businesses finding it hard to get funding for growth. Banks are taking a more conservative approach to lending, grant support is being squeezed and venture capital can be hard to come by. To plug the funding gap Invest NI created its Access to Finance initiative, which has put in place a suite of loan and equity funds, providing over £140m of available funds.

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FINANCE VOUCHERS Finance Vouchers can be used towards the cost of using external consultants to help prepare a funding proposal for a business. Applications and more detailed information is available to download at the link below. So far 163 vouchers have been awarded. For more information on Invest NI’s Access to Finance visit www.investni.com/accesstofinance Neil McCabe, Senior Investment Manager, WhiteRock Capital Partners; Michael Morton, Managing Director, Golf Network and David Millsopp, UK Sales Director, Golf Network. Golf Network Golf Network, the partnership behind the brand ‘MD Golf’, has accessed finance from the Growth Loan Fund that will enable the firm to market at international trade shows and develop existing export links. The firm currently exports to 30 countries throughout Europe, Asia, Australia and the rest of the world. Founded in 1996, the Antrim-based firm has grown to become one of the UK and Ireland’s leading mid-market equipment brands. All the MD Golf products are assembled in Northern Ireland. The company also has an exclusive deal as an official licensee of Aston Martin and sells its clubs, bags and accessories in Aston Martin showrooms around the world, as well as through large multi-national retailers.

Olive Hill, Invest NI with Conor Moran, GoReport.

GoReport GoReport is an innovative onsite reporting software for field based professionals who carry out any type of report writing, inspection reports or assessment on a regular basis. With their Cloud based iPad and Web App, GoReport enables the site professionals to capture data on site and generate professionally formatted reports, saving companies time and money. GoReport was founded by experienced multi-sector engineer Conor Moran and the company was incorporated in 2011. Conor used his own personal funds to carry out extensive market research around his business concept. The Belfast based company then availed of a £10k Northern Ireland Spin Out (NISPO) Proof of Concept grant which helped fund development of a prototype. The company successfully completed beta testing of the prototype. Post Proof of Concept, the company participated in the NISPO Accelerator programme - an initiative that provided selected companies to pitch to the NISPO Invest Growth Fund (IGF) for seed stage funding. Following this, the company went on to receive £70k investment from the IGF which was matched by £30k from a local Northern Irish private investor. The investment enabled the company to bring the innovative solution to the market. During this fundraising stage, the company successfully secured several grants from Invest NI which assisted with the company growth. In January 2013 the product was fully launched and the company is now revenue generating.

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FINANCING OUR EXPORTERS GROWING SALES OVERSEAS AND MAKING A MARK IN EXPORT MARKETS HAS BECOME INCREASINGLY IMPORTANT AS ADRIAN DORAN, BARCLAYS HEAD OF CORPORATE BANKING IN NORTHERN IRELAND EXPLAINS.

uch has been written about ‘access to finance’ over the past few years. Banks point to a lack of demand for credit, whilst many businesses complain banks aren’t lending. Over the past five years, both sides have been right to some degree. The question now is: given that the Northern Ireland economy is finally showing signs of growth again, what will the response from borrowers and banks be? If economic activity is genuinely picking up as most commentators suggest (this one included), then banks should expect to see an increase in demand for credit. It’s clear to me that we are already seeing increasing demand for credit from many companies, and it’s no surprise that this increase is being principally led by our exporters. Many of our exporters have been benefiting from an improving global economy, which has in turn helped them to continue growing through the cycle. Northern Ireland’s prolonged recession, precipitated by an over-reliance on unsustainable property development (and borrowing), has helped to focus minds, both in government and in business, on the importance of growing our export base, and reducing reliance on our own domestic economy. On average, 25 per cent of EU SMEs are involved in exports, whereas in the UK it is only 20 per cent. Whilst figures are not available for Northern Ireland, it’s fair to assume the percentage is much lower. A recent report, sponsored by Barclays and produced by the think-tank Reform, identified eight key business environment advantages for exporting – labour productivity, innovation, ease of doing

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business, total tax rate, access to finance, trade and transport infrastructure, openness to trade, and cost to export. It then used these aspects to compare the UK against 25 other major exporting countries. It concluded that the UK is world-class in innovation, and that it performs well compared to peers on ease of doing business. However, both Germany and the USA significantly outperform the UK in terms of workforce productivity. The UK is also in the middle of the pack, when comparing the quality of our ports, road, rail and air infrastructure. Again, whilst separate numbers are not available for Northern Ireland, it’s fair to say that there is much work to be done by many of us, including banks, if we’re going to grow our export base. If our small regional economy is to be successful in growing our exports, this will require a much broader export base – more companies exporting for the first time. Our burgeoning ICT sector is, as one would expect, leading a new wave of exports. By its nature ICT products are easily

“THE REAL CHALLENGE FOR OUR ECONOMY IS GETTING MORE OF OUR SMES TO EXPORT, PARTICULARLY THOSE INVOLVED IN MANUFACTURING.”

transported and the people involved well used to international trade. However, we have also seen success from a number of relatively new export sectors. For instance, following the downturn in the local property market, many of our local construction companies have successfully expanded into the GB market. Likewise, our accounting firms employ a huge number of consultants who are essentially exporting their services outside the Northern Ireland market to GB and beyond. The real challenge for our economy is getting more of our SMEs to export, particularly those involved in manufacturing. Naturally, exporting can present more challenges to smaller companies, and for a first time exporter it can be quite daunting. SMEs quite often don’t have the resources, financial and otherwise, that large companies can avail of. Smaller companies in many instances find it tougher to get access to the finance they require. Add in the complexities of trading overseas and that difficulty is compounded. For instance, quite often manufacturing companies may be required to complete long production runs with final payment being received months down the line – putting a significant strain on their working capital and bank facilities. In addition, there are foreign currency risks to be managed, and the issue of ensuring your international customer is going to pay, and pay on time. The good news is that banks have solutions to many of these issues. Exporters require different sorts of products and services from their bank, whether that be export Letters of Credit or “on the ground”

assistance in a foreign country. In my opinion the growing importance of exporters in our economy will in time have profound effects on the composition of our local banking market â&#x20AC;&#x201C; companies selling internationally will seek out international banks that can better assist and finance them. Many companies are reviewing their choice of bank to best support them in the years ahead, and for exporters, this choice is even more pertinent. Over the last number of years we have seen a number of companies electing to move to a bank which can better support

their growth overseas - a trend we expect to continue. At Barclays, we have been helping Northern Ireland businesses export since our own business was established in Belfast some 18 years ago. With 140,000 people employed in over 50 countries around the world, Barclays is well placed to assist our exporters, whether they are selling to Birmingham or Botswana. Our relationship directors can help local companies with tasks ranging from navigating the maze of opening a foreign bank account to issuing a performance

bond for an international contract to an overseas government. Our customers are able to get the best of both worlds - using our substantial global presence whilst retaining the benefit of a local relationship team in Belfast. Many companies are daunted by the prospect of selling outside their home market for the first time â&#x20AC;&#x201C; in this regard the first step is to avail of the excellent advice available from Invest Northern Ireland, and business bodies. Likewise, when it comes to financing, it pays to engage early with a bank that understands international trade.

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UNLOCKING FINANCE FOR SMALLER BUSINESSES THE BRITISH BUSINESS BANK WAS SET UP BY THE UK GOVERNMENT IN 2012 TO HELP SMALL COMPANIES STRUGGLING TO SECURE FINANCING FROM HIGH STREET LENDERS. THE BANK’S MANAGING DIRECTOR, STRATEGY & MARKET ANALYSIS, ANDREW VAN DER LEM DISCUSSES ITS ROLE AND PRIORITIES, AND THE PROGRESS IT HAS MADE SO FAR IN MAKING FINANCE MARKETS WORK BETTER FOR VIABLE SMES.

think we can all agree that SMEs play a key role in our economy. They are extremely important in terms of jobs - employing almost 60 per cent of the private sector workforce; and their turnover accounts for almost half of all private sector activity. Finance allows these companies to invest, grow and to create jobs. Recent surveys show more encouraging trends in terms of small firms’ access to finance, including those from the Federation of Small Business and the BDRC SME Finance Monitor, which both illustrate that SMEs are more optimistic in their view of accessing finance. But notwithstanding this, smaller businesses continue to face a range of challenges in accessing the finance they need - some of them structural in nature and some, more cyclical. To give an example, the data show consistently that smaller, younger businesses find it relatively more difficult to find finance. I would call this a structural problem. If you don’t have a track record then it’s more difficult to convince any lender to offer credit. On the other hand some issues are of the time. For example, we’ve recently been through a period where, to put it mildly, funding and capital levels within the banking sector have been under pressure. These types of influences on the availability of credit, I would call cyclical. Addressing both types is at the core of what the British Business Bank is all about, which we see as making finance markets for small and medium-sized businesses more efficient and effective, allowing those businesses to prosper, grow and build UK economic activity. Already in Northern Ireland, alternative finance providers supported by our Investment Programmes have enabled £2.15m of lending to 43 smaller businesses since Spring 2013. Start-Up Loans were

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launched in June 2013 with 78 loans totaling £350k. Enterprise Finance Guarantee partners include Ulster Bank and Bank of Ireland with over £30m of loans enabled to over 200 businesses. Specifically, we have set ourselves a number of objectives including: • to increase the supply of finance available to SMEs in areas where markets don’t work well; • to help create a more diverse market for SME finance with greater choice of options and providers; • promoting better information in the market, building confidence among SMEs in the finance options available; and, • whilst achieving these, managing taxpayers’ resources efficiently There is a range of potential economic development bank models around the world that have similar mandates, but we are building an institution that is appropriate for the UK: a model that works with the market and through the market – and importantly – one that doesn’t distort the market. This means that our intention is to work with participants, new entrants and others in the business finance markets, and not to set up our own distribution to reach businesses directly. You won’t be seeing British Business Bank branches on the High Street. That would be an expensive delivery route and would set us up in competition with the market. Instead the British Business Bank provides finance and applies guarantees through commercial lenders and investors to SMEs. These commercial players use these financial resources – together with their own money

– to lend to or invest in smaller UK firms. Once these loans or investments mature, the money is returned to the British Business Bank and can be reinvested. We operate in a range of markets in the British Business Bank, a range that stretches from early stage equity funding, through the provision of growth capital, to senior debt for established SMEs. FOUR MAIN BUSINESS LINES: Venture Capital Solutions • Business Angel CoFund • Enterprise Capital Funds Lending Solutions • Start-Up Loans • Enterprise Finance Guarantees • Mezzanine debt solutions (being investigated) Investment Programme • Supporting and accelerating new lending models e.g. debt funds, P2P lenders and supply chain finance providers Wholesale Solutions • Wholesale Guarantees on bank SME lending portfolios (pilot launched March 2014) • Asset finance funding vehicle (in development) By bringing these operations under one roof, we are able to exercise better oversight and management of around £3.9bn of resources, deciding when to grow certain programmes, when to wind them down, and when to redirect our resources and efforts to tackle new or growing market weaknesses. We’ve been working at pace on building

out the organisation in anticipation of the various regulatory approval we need before we can become a separately incorporated entity operating at arm’s-length from government – though still 100 per cent government-owned. But while we’ve been doing this, we have also had our foot on the accelerator in actually getting lending and investment to SMEs: • £660m of new lending and investment was supported through British Business Bank programmes in 2013, up 73 per cent versus 2012; • there were 25,000 businesses benefiting from £1.5bn of outstanding lending and investment at the end of 2013. With regard to the creation of a more diverse market for the SME finance aspect of our objectives, there has been much comment recently about alternative providers and the potential for these models to grow and offer greater choice to SMEs – so it is timely to say a few words about what we have been doing in this area.

We at the British Business Bank think that alternative finance providers are important not just in terms of increasing competition and choice in the market, but also in driving innovation. And if you go back to the £660m of new lending and investment supported through our programmes in 2013, around 50 per cent of that was through alternative finance providers. Across our investment programmes, we have made 10 funding commitments to date to alternative finance providers totaling £172m, which support lending capacity of several times that level. We have funded a range of different providers including Peer-to-Peer lenders (most recently a £40m commitment to support lending through the Funding Circle platform), new invoice discounting platforms such as MarketInvoice, and several dedicated funds providing debt to SMEs. In March, we also announced the start of our Wholesale Guarantee pilot. This is a programme that applies Government guarantees on new SME lending portfolios by banks – in return for a fee. This has the effect

of reducing the amount of capital that banks need to hold against these portfolios. SME lending is therefore more commercially attractive and allows banks to lend significantly more on the back of the same level of capital buffer. Whilst this is open to all banks we expect this to be particularly attractive to the smaller bank lenders. We believe that there is a lot of potential for these new models of finance provision to be scalable. And our role is to catalyse and help accelerate that growth. So what does all this add up to? Well we think it adds up to an institution that can make a real difference in business finance markets over the next 5 years. We aim to unlock up to £10bn of financing for viable, small and medium businesses by leveraging our resources through the private sector and through applying guarantees; and, we intend to play a significant role in developing a more diverse competitive landscape in business finance markets by supporting a range of new and emerging alternative finance provider models.

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SMALL AND MEDIUM MEANS BIG IN BUSINESS AS THE ECONOMY TURNS THE CORNER, THE INCREASE IN CONFIDENCE AMONG SMALL AND MEDIUM-SIZED BUSINESSES SHOULD SOON TRANSLATE INTO GREATER DEMAND FOR FINANCE. ELLVENA GRAHAM, HEAD OF NORTHERN IRELAND, ULSTER BANK GIVES DETAILS ABOUT SCHEMES DESIGNED TO HELP SMES.

mall to medium-sized enterprises (SMEs) make up over 99 per cent of private sector firms and account for over 65 percent of employment in Northern Ireland. So it is essential that they are able to obtain the finance they need to grow. The latest reports from the British Banking Association (BBA) point to SME lending picking up as economic conditions improve. According to BBA figures, the value of new borrowing by SMEs in Northern Ireland in Q3 2013 was more than 40 per cent higher than in the same quarter the previous year. At Ulster Bank, we have supported thousands of new and existing customers

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throughout the economic downturn, lending many hundreds of millions of pounds across the business sector in Northern Ireland. Our approach throughout this period has been, and remains, to seek to meet all reasonable demand for finance. As economic conditions improve, we expect demand to grow. The Ulster Bank Purchasing Managersâ&#x20AC;&#x2122; Index (PMI) for Northern Ireland gives cause for optimism on this front, pointing to an ongoing broad-based recovery in the local economy that began in the second half of 2013. The latest PMI reported

a further sharp increase in business activity in Northern Ireland private sector firms, aided by strong new order growth. We were also encouraged by the optimism of firms when we recently invited business owners around Northern Ireland to our Ahead for Business series of events. The events provided information to SMEs on accessing finance, business planning and cash flow management and how best to access the £1billion Ulster Bank has available to lend to companies this year. In total, almost 500 Northern Ireland business people attended the events and engaged with us around lending opportunities as well as wider business and economic development issues. There was real positivity among attendees and a commitment to investing for growth. Indeed, we have seen a considerable uptick in demand and activity and we are currently approving 94 per cent of applications for business loans. This includes demand for business overdrafts, term loans, asset finance, invoice finance and other kinds of lending, such as the Funding for Lending Scheme (FLS). Launched by the Bank of England in 2012, FLS is designed to help SMEs gain access to

affordable finance. Ulster Bank has provided over £150million to nearly 1,300 local companies through the scheme to date. We have supported a wide range of companies through FLS in sectors including agri-food, IT, tourism, services, retail and other areas. FLS offers SMEs access to funding at lower rates than would otherwise be available. Under Ulster Bank’s FLS deal, borrowers are not charged an arrangement fee for any new loans drawn under the scheme and qualify for a one per cent interest rate discount if their loan is for five years or less. The Enterprise Finance Guarantee (EFG) Scheme is another potential option for SMEs. Under EFG, the Department for Business Innovation and Skills (BIS) will guarantee 75 per cent of the business’s loan, which means that there isn’t the need for a large amount of security to back the borrowing. It is therefore a useful tool for supporting companies that do not meet normal lending criteria. Of course, whilst commercial banks are still the main source of external funding for most businesses in Northern Ireland, there are

other sources of finance available. We welcome the development and growth of other sources of funding, such as venture capital and the various forms of equity finance provided through Invest NI, which support business growth. In many cases, these are complementary to finance from commercial lenders, and we are strongly committed to working in conjunction with them. Ulster Bank assesses each individual project on its own merits. Some of the factors that are typically taken into consideration include the project – the nature of the business, where the business is in its life cycle, what the market for the business or product is; the firm’s forecasts for trade, and payment – working with the business to ensure that funding is provided on a sustainable and secure basis, taking into account existing business commitments and the people involved – in terms of their track-record, their experience and their abilities. We are open to all good business plans and very much encourage customers to come and speak to us with their proposals.

“LAUNCHED BY THE BANK OF ENGLAND IN 2012, FLS IS DESIGNED TO HELP SMES GAIN ACCESS TO AFFORDABLE FINANCE.”

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LEGACY PROPERTY DEBT: A SOLUTION? THE CREATION OF A NEW MEZZANINE LOAN FUND COULD HELP TACKLE PROPERTY ISSUES SAYS KEVIN KINGSTON, DEPUTY CEO AND MD BUSINESS BANKING, DANSKE BANK.

ow in the second quarter of the year, we can confidently say that Northern Ireland is experiencing a modest economic recovery. This is certainly supported by all the relevant economic data. A sense of cautious optimism has returned to the local market and, with business confidence at its highest level for years, firms are starting to make important decisions about investment and growth.

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But we are by no means ‘out of the woods’ and there remain a number of challenges which could stand in the way of local businesses achieving their full growth potential. Not least of these is the fallout from the property boom and the resultant property debt which continues to grip so many firms here. The issue of legacy property debt has been identified again and again as one of the major

challenges to economic growth in Northern Ireland, placing significant constraints on firms’ ability to access finance. Legacy property debt not only has consequences for a bank’s ability to lend to a business – since existing debt will almost always be taken into consideration by a bank when considering a new application for credit - it also impacts a company’s ability to invest and grow.

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“THE GROWTH LOAN FUND HAS APPROVED OVER 65 COMMERCIAL LOANS WORTH AROUND £20 MILLION TO FUND LOCAL BUSINESS GROWTH ACROSS THE PROVINCE.”

The scale of this issue should not be underestimated. InterTradeIreland’s latest ‘Access to Finance’ report estimates that as much as 28 per cent of local medium-sized SMEs in Northern Ireland bought property in recent years using bank debt. The resultant servicing of this legacy debt post-property crash is putting major pressure on cash flow and holding back growth. The Economic Advisory Group’s ‘Access to Finance’ report found that those businesses with property debt overhang were four times more likely to have sought additional bank finance and were more likely to have struggled in accessing the finance they need. Experience to date is that UK Government funding support schemes have tended to take a ‘one size fits all’ approach to such problems and therefore do not allow for the fact that Northern Ireland is operating under very different circumstances, with a serious legacy from the property crash. So what is the solution to the problem? Well, a very credible option would be the

creation of a new mezzanine loan fund aimed specifically at tackling the issue of legacy property debt. An excellent example of how mezzanine finance is supporting business growth in Northern Ireland can already be seen in the Growth Loan Fund – financed by Invest Northern Ireland and the Northern Ireland Government Officers’ Superannuation Committee [NILGOSC]. No one could have estimated the demand for the Fund when it first launched in July 2012 but, managed by WhiteRock Capital Partners, it has worked very well to date. Since commencing its investment period in September 2013, the Growth Loan Fund has approved over 65 commercial loans worth around £20 million to fund local business growth across the province. A similar approach could therefore be used to re-finance residual property debt where it is holding back the growth of otherwise healthy trading businesses. A bespoke mezzanine fund would enable such

companies to take a longer-term approach to repaying and reducing legacy property debt, while freeing up cashflow to invest in their business and avail of opportunities for growth. It is equally important to acknowledge that such a fund would not be suitable for every instance of property debt overhang. In many situations, trading businesses may well be burdened with such disproportionately large debts that the fund would not be in a position to help the business. Equally, many trading businesses may already be so badly weakened that the fund would not represent a viable solution. Rather, the fund would be best placed to help trading businesses which are still producing healthy underlying cash flows and which are in a position to grow, were it not for the fact that cash flows are being diverted to repay legacy property debt. Such a fund would certainly go a long way to unlocking the growth potential of so many otherwise good trading local businesses – and surely therefore is worth considering?

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A NEW WORLD OF FUNDING THE WAY FORWARD FOR ACCESS TO FINANCE FOR BUSINESSES IS BEING MAPPED OUT BY A SPECIALLY APPOINTED PANEL, WHOSE CHAIRMAN PROFESSOR RUSSEL GRIGGS SPEAKS TO ADRIENNE MCGILL ABOUT WHAT IT HAS FOUND SO FAR.

he Chairman of the influential panel of experts appointed by the Northern Ireland Executive to investigate access to finance for businesses has said initial findings point to an understanding that the only way that the economy will grow is if businesses and lending institutions work in partnership. Professor Russel Griggs made the comment following a meeting of the Panel at the offices of the Northern Ireland Chamber of Commerce and Industry in Belfast recently. Establishing the Access to Finance

Implementation Panel (AFIP) was a key recommendation of the Economic Advisory Group (EAG), chaired by eminent economist Kate Barker, in their ‘Review of Access to Finance for NI Businesses’ report which was published in March last year. The report involved a detailed survey of small and medium-sized enterprises and extensive engagement with banks, business and government. It made a total of 13 recommendations to be implemented by them in order to improve the finance environment for SME businesses now and when firms start

to plan for an economic upturn. The Panel has been tasked with finding out if claims by business that finance is extremely difficult to access stand up against claims from the banks that low numbers of businesses are coming forward to ask for lending. While not revealing the full details of the findings which will be published in an interim report to the Executive in the coming months, Professor Griggs said: “Over the last few months we have been talking to all the banks and trade associations to get a picture of what life is like for both

Members of the Access to Finance Panel include John Trethowan, Head of the Credit Review Office in the Republic of Ireland; Ann McGregor, Chief Executive NI Chamber; Professor Russel Griggs, Independent Reviewer of the UK Banking Appeals Process; Tony Simpson, DFP; Shane Murphy, DETI; Karen Barklie, DFP.

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SMEs and banks so that we can start to isolate where the key issues are and then we will make recommendations. “We are at a point now where we can start to see the areas that we need to focus on. “What we are finding is that we are now in a new world of funding and borrowing, the economy has changed. It has been confirmed that we are not going to go back to the situation we were in pre-2008. “A lot of what we are discovering is the need for re-education for banks, government and businesses and coming to what is called the new norm in banking. “We are finding that everyone we are talking to is very positive. They understand that the only way for the economy to grow is if businesses and lending institutions work together. We have had no negativity and a lot of good suggestions. There is a mood out there of wanting to move on and get solutions rather than look back to the past. “We will be making recommendations to government, banks, businesses, and intermediaries. It may require some policy changes but we will try to be pragmatic and make recommendations that can be done quite quickly.” An important part of the Panel’s work will be to oversee the implementation of the recommendations made in the EAG report. These include: • Banks to review the level of training provided to staff dealing with applications for business finance. • Invest NI should increase the funding in the ‘proof of concept’, early seed funds. • The Department of Finance and Personnel (DFP) and the Department of Enterprise, Trade and Investment (DETI) should liaise with banks to understand the extent of property debt exposure among sound trading businesses. • DFP and DETI to engage with those responsible for developing proposals for a new business bank to support the proposals. • The British Banking Association and all banks with a presence in Northern Ireland should consider how communication between banks and the business community could be improved. • Banks should work with the Independent Reviewer for the UK Banking Appeals Taskforce to strengthen and publicise the credit appeals process in Northern Ireland. The report concluded that there was a significant degree of frustration within the local business community over what is

perceived by many businesses to be an unwillingness of banks to lend, or to lend at reasonable rates. However, the EAG research showed that the market for finance is complex and that issues exist on both the demand and supply side. It pointed out that the problems are particularly acute in Northern Ireland because the average size of business is smaller than elsewhere and because of the heavy reliance on bank overdraft finance and the scale of property debt. It said this had resulted in a degree of market failure, in terms of imperfect information, which needs to be addressed by the banks, business bodies, advisers and government bodies. It also stressed that it is important to tackle these problems now so that when the economy recovers, difficulty in access to finance does not become a constraint on future growth. The EAG research showed that this is a challenging time for accessing finance in Northern Ireland. The combined impact of declining domestic demand, increasing input costs, and cost of servicing existing debt is putting considerable strain on SMEs. The majority stated that they are in either ‘survival’ or ‘stabilising’ mode and this influences their appetite for further debt and/or the types of financial products they seek.

“WE ARE AT A POINT NOW WHERE WE CAN START TO SEE THE AREAS THAT WE NEED TO FOCUS ON.”

The Access to Finance Implementation Panel (AFIP) was announced in October 2013 and formally launched by Finance Minister Simon Hamilton and Enterprise Minister Arlene Foster in December 2013. Its members include: Professor Russel Griggs, Independent Reviewer of the UK Banking Appeals Process; John Trethowan, Head of the Credit Review Office in the Republic of Ireland and Non-Executive Director of Progressive Building Society; and Ann McGregor, Chief Executive of the Northern Ireland Chamber of Commerce and Industry. The Objectives of the Panel are to: • Advise Ministers on what more may be needed to ensure sufficient Access to Finance is available at reasonable terms for businesses in Northern Ireland; • Act as a central liaison point for government, banks and business bodies on Access to Finance issues; • Agree, and oversee implementation of, a Ministerial action plan and other actions considered necessary to address the issue of Access to Finance for Northern Ireland businesses; • Commission further research on Access to Finance issues where appropriate; • Provide advice and report on progress to the Ministers for Finance and Personnel and Enterprise, Trade and Investment; and • Publish an annual report on progress towards implementation of the Panel’s agreed action plan. Simon Hamilton said the Panel would put a new focus on banking and access to finance issues here, particularly business lending. He added: “For some time now we have been faced with a situation where banks have been saying that they have money to lend but that there is no demand, and where many businesses are saying they cannot get the money they need to invest and grow. “We also know that many of the schemes that have been put in place to help are not working as well as they might do. It all adds up to a situation where constrained business lending is impeding our economic recovery. This Panel will bring independent eyes to this. We have asked it to tell it to us exactly as they see it. It will work with us, the banks and the business bodies to progress the issues associated with access to finance that we have identified. “I stated when I took office that I wanted to put a renewed focus on banking issues. The creation of this Panel and the Joint Ministerial Taskforce on banking that was established as part of the ‘Building a Prosperous and United Community’ economic pact will be key elements of this.” Arlene Foster said: “Establishing this Panel was a key recommendation of the Economic Advisory Group (EAG) in their ‘Review of Access to Finance for NI Businesses’ report and an important part of the Panel’s work will be to oversee the implementation of the other EAG recommendations.”

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FUNDING OPTIONS THE AVAILABILITY OF FINANCE OR LACK OF IT FOR SMES HAS BEEN ANALYSED IN A REPORT BY INTERTRADEIRELAND WHOSE CHIEF EXECUTIVE THOMAS HUNTER MCGOWAN TELLS ADRIENNE MCGILL ABOUT THE KEY POINTS.

ccess to Finance for SMEs in Ireland was the subject of an in-depth report undertaken by cross border trade organisation InterTradeIreland published at the start of the year. The aim of the report entitled ‘Access to Finance for Growth for SMEs on the Island of Ireland’, was to provide for the first time a reliable indication of the supply of finance for businesses across Ireland. One of the key findings of the report was a

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lack of bank supply data for Northern Ireland. It said data should be consistently available on the amount of bank lending to Northern Ireland's SMEs so that any gaps in funding provision could be addressed. The report also revealed a stark contrast between bank funding in Northern Ireland and the Republic with £4.7bn in banking funding to SMEs in Northern Ireland in 2012, compared to £20.9bn in the Republic. The cross-border trade body said: “The

absence of regularly reported figures for Northern Ireland represents a significant gap in the analysis of total funding available to SMEs in Northern Ireland and thus hampers the development of policy responses to funding gaps that might exist in that market." Bank lending in the form of overdrafts and loans was the dominant form of finance and accounted for 94 per cent of lending across Ireland – ahead of other businesses around Europe. However, InterTradeIreland said the

to respond to applications – “THE DEMAND FOR sometimes 21 days or more – caused concern EQUITY FINANCE HAS among 300,000 SMEs BEEN LOW AND THERE across Ireland. IS A LACK OF But it did recommend the use of a mediator to AWARENESS OR help make applications, UNDERSTANDING a system which had ABOUT HOW IT WORKS been successfully adopted in France. AMONG SMES.” The report found that equity finance had become the second most important source of funding, whether seed capital, venture capital or angel finance. Detailing the findings, InterTradeIreland Chief Executive Thomas Hunter McGowan says: “We do a business monitor every quarter and there was a continuous feed coming from companies that there was a shortage of money coming from the banks. We got responses from 1000 companies across Ireland from every sector and we felt it was vital to get solid data from banks and from companies and to match them up. When we drilled down and people were saying it is very hard to get money from the banks, we found this was not always the case. “We found there was very little equity finance and a disproportionate reliance on overdrafts and loans at 94 per cent. “The figure was a shock. We were under the impression that companies were getting equity finance. “The other surprise was that there is very little take up in the seed capital funds and venture capital funds that are around. This is for a number reasons – one is that the business sectors that can get the money are very restricted – the businesses which need most support at the moment are construction, hospitality and retail. However, it is ICT, manufacturing and medical device firms that are more likely to get funds from venture capital companies. “Also – the demand for equity finance has been low and there is a lack of awareness or understanding about how it works among SMEs. “Part of it has to do with an unwillingness to share ownership of a business. The fact is that if you add to your business and you lose 10 per cent to equity you might be worth a lot more than owning a 100 per cent of nothing. reliance on banks was "disproportionate". “There is an emotional attachment to Firms were also more reliant than something that people have worked very elsewhere in Europe on short-term funding, hard to build but there is a reluctance to make like overdrafts, which were not the best way that first move to give someone else a slice of to finance growth, the report said. the action.” It also said that almost 30 per cent of local Mr Hunter McGowan highlights the fact that medium-sized SMEs bought property in there is an impression that there are lots of recent years using bank debt, which is now businesses baying for money and there is no putting major pressure on cashflow and finance available to them. holding back growth. The report claimed that “When we looked at the figures we found most formal loan applications from SMEs that they are in balance. were approved, even though the businesses “It does not mean they are in balance in the themselves had formed the view that banks right place – for instance the companies that weren't lending. However, the length of time

have distressed property debt are more likely to be looking for finance than those that are not. The difficulty is that so much finance has been rolled over it has the effect of swamping what has previously been on offer. “In some cases we have companies that are servicing the debt but every penny or cent they are making is being ploughed into servicing that debt. “That may keep the bank happy but the negative effect is that the company is not investing in themselves in terms of plant, machinery and marketing – all the things they should be looking at in order to grow the business. The effect is they will remain effectively static.” The report noted that external equity finance, including government-backed equity finance, accounted for approximately 5.6 per cent of total SME funding at 31st December 2012 with the proportion significantly higher in Ireland than in Northern Ireland. Total equity finance of €1.9bn/£1.5bn had been invested in Irish and Northern Irish SMEs in the five year period to 31 December 2012. Among InterTradeIreland’s key recommendations is that a Venture Capital Strategy for Northern Ireland is developed which informs and develops equity funds and which supports policy objectives to promote entrepreneurial activity in Northern Ireland. Another is Investment in Seed and Early Stage Capital in Northern Ireland to promote innovation and the entrepreneurial environment. InterTradeIreland noted: “Despite acknowledged success of some investment readiness support programmes, it was considered that further work was required to simplify and streamline the full range of supports, promote them in a more user-friendly and understandable manner and, improve the commercial and management skills of early stage company teams and extend the level of support available recognising that a significant degree of handholding was required for early stage companies.” Mr Hunter McGowan says a number of the recommendations will require some policy changes at government level and there are areas that will require the banks to take action. “When companies get to grips with what is out there they have to be prepared to go the extra mile to make use of what is on offer. “The Republic of Ireland has a much more vibrant Venture Capital landscape than in Northern Ireland. We feel there is more need for Venture Capital and early seed funds to act as stimulants for Northern Ireland. “New money attracts new money. Venture Capital companies need to see that there is action from government as well. “Unless this happens nothing will happen and we will be where we have been for the last decade. “Everything needs a stimulus – the real issue is what is that level of stimulus?”

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DO YOU DARE TO SUCCEED? PETER ALLEN, HEAD OF CORPORATE FINANCE AT DELOITTE IN BELFAST, TAKES A LOOK AT THE NEXT 12 MONTHS AND SEES SUCCESS FOR THOSE PREPARED TO TAKE SOME RISKS.

or those with a complete aversion to risk, the plan for the rest of this year and beyond will be to batten down the hatches, maintain a steady pace and keep the boat afloat until early 2015. However, for those businesses and individuals with an eye for a deal and a hunger to create value, then they may be entering an exciting and busy period. Last year was a difficult time for many companies across all major sectors in Northern Ireland. However, through the year, a combination of factors has allowed growth and confidence to begin to return and the signs are that this momentum is set to continue. Let me explain. The broad banner of

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‘corporate finance’ covers the full range of issues and opportunities which any local business may face. Since 2008, the distressed end of the corporate finance spectrum has seen the majority of activity and on many occasions this has been fatal distress, leading to the end of the business and the need for a formal insolvency process. However, last year saw a marked decline in complete business failure, and instead there was a concerted desire from all stakeholders to support a financial restructure and, potentially, business survival. This shift at the distressed end, from fatal distress through potential recovery to restructuring, has been accompanied by

increased activity at the performing end of the spectrum. This was revealed to the extent that competitive refinancing was a more regular occurrence in the second-half of 2013, as was the demand for growth funding and even acquisition finance in particular sectors. There have been a number of factors driving this positive shift. At a macro level the better than anticipated performances of both the Irish and UK economies have boosted market confidence. In addition, companies are beginning to put their cash to work rather than constantly anticipating a rainy day. While cash is still king, it cannot rule in isolation or in the absence of investment and growth. There are also signs of a more stable banking market returning, with lenders reaching more realistic provisioning levels, allowing for greater flexibility to support borrower opportunities. Another intangible and almost imperceptible factor is that there has been a growing impatience in the last 12 months to do something! Most investors agree that the market has reached its nadir and that the earliest movers may avail of the best opportunities. Fortune favours the brave. Several investment houses are active in Northern Ireland, both indigenous and external – those looking at this market on behalf of clients. Others like Whiterock Capital Partners, who manage the £50m Growth Loan Fund for SMEs based in Northern Ireland, have been particularly active. Locally, private equity/ venture capital companies like YFM Equity Partners, Crescent Capital, Beltrae Partners, Clarendon Fund Managers and Broadlake Capital have all seen increased activity and all featured in the recent Insider Dealmakers Awards held in Belfast. So, there are significant and broad changes afoot and, in the absence of a major shock, this momentum should be sustainable meaning that as the year goes on we should see a further shift along the corporate finance spectrum. There should be less fatal distress, with formal insolvency being the result of a failed restructure or as facilitation of a more planned exit. There will still be the need for insolvency processes, as historically the number of insolvencies coming out of recession is considerably more than during it, but the shift will be from liquidation-style procedures to active administrations in a drive to protect and add value. The refinancing market will continue to become more competitive as the main lenders broaden their scope both in terms of industry sector and product offering. This in turn should provide more meaningful funding for growth and, together with the Growth Loan Fund and additional Asset Based Lending activity, begin to address the increasing demand for flexible and tailored support for Northern Ireland companies. Yet the memories of the pain felt since 2008 still have a significant bearing on decision making, whether this is objectively justified or not, and this is likely to reduce the impact of a bounce back as the year rolls out. Many will choose the cautious and steady approach and only the braver dealmakers will decide to convert the opportunities which exist. It will be interesting to see who dares to succeed.

BACK TO BASICS SMES ARE THE ENGINE OF THE ECONOMY AND THEIR FUNDING NEEDS SHOULD BE UNDERSTOOD SAYS FIRST TRUST BANK, HEAD OF BUSINESS BANKING, BRIAN GILLAN.

s an SME economy, Northern Ireland’s future economic prospects depend largely on the growth of SMEs and the emergence of new entrepreneurs. It is through these entrepreneurs with their ability to generate employment opportunities and sustain growth that we will improve the economic competitiveness of the region. Businesses need funding to grow and rightly expect their financial partners to be in a position to support their business development plans. It is, therefore, important that banks get back to basics and are there to support businesses with viable propositions with the appropriate finance delivered in a timely and efficient manner. At First Trust we have been a long supporter of the local SME and Owner Managed sector with customers drawn from a broad range of industries. Recognising their role as the engine of the local economy, like other banks we have deliberately focused our attention on this sector and tailored a number of funding mechanisms and customer relationship processes to allow them to access capital and expand their businesses. While the funding itself is critical, our experience shows us that there are a number of

other equally important factors around the decision making processes that underpin it. In seeking funding, SMEs and entrepreneurs should consider a number of elements. The approach to lending and support offered to SMEs through the funding application process is in itself very important. Good relationship managers should assist a customer in completing a loan application, from outlining what information they need, to sitting down with them during the appointment and assisting them filling in their applications, to helping them at the drawdown stage. For existing customers or start-ups who had never applied for credit, banks should appreciate that this can be a daunting prospect and that it is their role to make this process as simple and friendly as possible. For our part we’ve designed a standard business plan template and credit application form. It’s not intended to be onerous but to provide a straightforward structure and starting point for our staff and customers, one which ensures we have the right information up front to enable a quick lending decision.

We also know some SMEs and new starts ups are apprehensive about applying for credit as they have concerns about the transparency of costs. We have also heard reports from some customers who are put off by banks constantly renegotiating the price and the term of loans. In approaching your bank you should insist on both clarity and surety in accessing finance and ask them to give you a full breakdown of the associated costs and the implications over the term of the loan. It is only through having such transparency that you can fully understand your cash-flow needs and therefore avoid any nasty surprises. It is also important to remember that SMEs are not a homogenous group and different sectors have specific needs and issues. Business relationship managers and business bankers should have sufficient sectoral expertise to make informed lending decisions. In First Trust Bank, we’ve seen the importance of continually improving internal competence, helping staff to ensure better structure to all lending proposals ensuring they meet the SME borrower’s need and also comply with credit policies. We believe it is important that a bank’s business team is equipped and encouraged to debate the merits of an application with the respective credit review team to ensure that applications are fully understood from a sectoral point of view. As a result, SMEs should consider if their bank has specific sectoral experts who are fully aware of the issues and nuances facing their particular industry sector. Often banks have been criticised in the past for taking a long time to reach a decision on a loan application. For start-ups and SME’s, the timeliness of the application decision is critical, especially where a business is planning to make a strategic investment to take advantage of immediate market opportunities. We believe that if a streamlined application process is used where all information is gathered at the beginning and understood by experienced sectoral experts, banks should be able to turn around swift and timely decisions. While this is important in an ‘approval’ situation, how a ‘decline’ decision is made is equally important. As a minimum, customers should expect their bank to make decisions clear in writing, and include details of the appeals process. At First Trust Bank we go one further and when we decline a loan we make a call to the customer to personally inform them of the decision. Customer feedback tells us this can be viewed as being more important than the call to say “Yes”. Importantly this gives us the opportunity to explain clearly why an application was declined, so there’s a clear understanding of our decision and the rationale behind it. We can then work with our customers to improve any issues and possibly work to fund the proposal at a later date. Taken together these decision-making factors can often be the difference between a successful and timely finance application or not. Whether you are a start-up or an established SME, you should be assured that your bank is making every effort to make the credit application process as streamlined and as user-friendly as possible so you can concentrate on the day-to-day running of the business. Together, this approach will support and speed up the economic recovery.

Ambition Magazine l 49

FOCUS ON ACCESS TO FINANCE

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[COLUMNIST] TREVOR ANNON, CHAIRMAN OF THE MOUNT CHARLES GROUP

GET FARMING ON COURSE FOR THE FUTURE THE AGRI-FOOD SECTOR IS IN A CLASS OF ITS OWN BUT STUDENTS NEED TO APPRECIATE ITS VALUE ARGUES TREVOR ANNON.

orking in a farming environment is tough and demanding. It is a blunt reality that no amount of superficial packing can mask. There is no escaping the fact that it does not hold the same attraction – or deliver the same financial rewards – as careers in the digitally dictated employment sectors. It does, however, offer career paths that ultimately can provide much greater satisfaction on a broader range of fronts than those that can be gained from sitting continually in front of a computer screen. Farming and the wider agri-food sector is Northern Ireland’s most important generator of wealth. Yet the fact is that agriculture is an industry that at its core is dominated by an ageing population. The future of agriculture depends on it being able to attract young people that are committed and enthusiastic enough to understand the potential that exists in the industry as it continues to evolve to meet changing consumer demands. The problem however is getting those young people, particularly from non-farming backgrounds, to understand what a modern and challenging career farming actually can be. We have excellent training facilities in Northern Ireland when it comes to getting across the nuts of the industry. The expertise, however, in actually selling a positive and different image to that which is traditionally held regarding the industry is not always apparent. The flat cap and tweed jacket image may help those in the advertising industry convey its perception of the food from our land being healthy and wholesome. Traditional values built around traditional thinking. The old fashioned approach is the one that they feel the public can confidently buy into. While that can help generate a solid reassurance factor it is questionable whether such an approach will ultimately inspire the brightest and the best to take up an agri-food or farming career. Indeed it could be argued with some conviction that the entire emphasis on generating new entrants to the panagricultural community needs a radical overhaul. Are our schools, for example, doing enough in relation to careers advice when it comes to the agri food sector? Are those entrusted with the responsibility of opening potentially exciting alternative career paths really up to date with the opportunities that currently exist, and will continue to expand, in the years that lie ahead?

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“FARMING AND THE WIDER AGRI-FOOD SECTOR IS NORTHERN IRELAND’S MOST IMPORTANT GENERATOR OF WEALTH.” The agricultural industry need to get across the message that in a world where dramatic fluctuations in the context of climate change are actually threatening supplies of food on a global scale, the demand for highly skilled, technical savvy farmers and producers will only increase. Students that are interested in technology and engineering obviously come into that recruitment category. But equally science students have the capacity to develop a rewarding career in what is essentially the UK’s most important industry. But the sector also needs to be able to attract individuals with a sound entrepreneurial streak. They have to be prepared, and equally importantly equipped, to meet the multilayered challenges that will inevitably come with delivering our food in a way that provides

sufficient returns for their investment in terms of labour and capital. The huge growth being enjoyed by those operating in the niche and organic food sector is one where there are obvious areas capable of being developed positively. Figures from the European Council of Young Farmers’ show that across the UK the percentage of farmers aged under-35 has fallen from 16 per cent in 1990 to 2.8 in 2011. It is a dramatic decline, one that has far reaching consequences on a myriad of fronts. It requires a coordinated fight back strategy. A radical promotional approach, one built around the real strengths and potential of the industry rather than failing to challenge damaging stereotypes, has to be key in that plan.

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[FEATURE]

POWER BALANCE NI CHAMBER’S LATEST SURVEY SHINES THE LIGHT ON NORTHERN IRELAND’S ESCALATING ENERGY COSTS.

he latest Quarterly Economic Survey (QES) released by Northern Ireland Chamber of Commerce and Industry (NI Chamber) in partnership with business advisors BDO reveals that the vast majority of businesses in Northern Ireland have experienced higher energy costs over the past year. The majority of businesses (77%) believe energy costs in Northern Ireland are higher than elsewhere in the UK and the EU. A total of 71 per cent of firms have experienced higher costs over the last year, with rising costs a particular issue for manufacturers with 78 per cent of them experiencing a rise in energy costs over the past 12 months. Around two-thirds of members reported that they have taken some action to reduce costs including reducing their energy usage; installing energy efficiency devices; changing energy provider and renegotiating energy tariffs. Other steps cited include the installation of renewable energy sources (particularly solar panels) as well as switching from electricity to gas. The Quarter 1 survey for 2014, made up of responses from over 300 local businesses, also revealed that mixed messages around Northern Ireland’s recovery continue to persist. All key balances for Northern Ireland remain positive with more businesses reporting an increase in domestic and export sales/orders, employment and investment intentions. However, the recovery is unbalanced as small, but particularly micro businesses with less than 10 employees, struggle to recover at the same pace as larger local businesses. Fewer of Northern Ireland’s smallest businesses are

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indicating increased sales and exports or are taking on new staff or trying to recruit. A deteriorating cash flow position is also becoming more of a concern for micro enterprises. There are specific challenges for both the manufacturing and services sectors. For manufacturers weakening balances include investment intentions along with confidence around turnover and profitability. For services, cash flow is becoming more of a concern and recruitment intentions have stalled. In fact, Northern Ireland services recorded the lowest employment expectations balance across the UK regions meaning fewer service businesses are expecting to take on people over the next 3 months.

SPECIFIC FINDINGS RELATING TO QUARTER 1 OF 2014 INCLUDE: Manufacturing Northern Ireland balances for manufacturing are below the UK average across all key indicators. Northern Ireland remains in the bottom three regions in terms of domestic and export sales/orders despite reporting increases this quarter. Investment intentions have weakened as has manufacturers’ confidence around turnover particularly, but also profitability. However, the gradual improvement in export sales and orders has continued this quarter. The cash flow position for some manufacturers has also improved this quarter. The cash flow balance is zero in Q1 2014 meaning that the same share of manufacturers have seen their cash flow position improve as deteriorate over the last quarter. In Q3 2013 the cash flow balance was -12 per cent.

Services The percentage of service businesses reporting an increase in domestic sales improved in Q1 2014 with the balance for Northern Ireland services now higher than the UK average. However, employment balances weakened this quarter and the cash flow position appears to have deteriorated. Pressure to increase prices has returned in Q1 2014. Recruitment Recruitment intentions in both manufacturing and services have fallen this quarter and this is consistent with the wider UK experience. The percentage of manufacturers trying to recruit has fallen from 71 per cent in Q4 2013 to 57 per cent in Q1 2014. In services, the figure has fallen from 85 per cent in Q4 2013 to 58 per cent in Q1 2014. However, where businesses are recruiting they are now more likely to be taking on full-time and permanent staff. In Q4 2013 manufacturers particularly were more focused on recruiting part-time and temporary staff. Fewer businesses are also experiencing recruitment difficulties this quarter. However, difficulties remain for manufacturers in recruiting skilled manual staff and for both sectors in recruiting professional/managerial staff. Business Issues and Concerns Competition remains the most important concern to businesses by a considerable margin. This is followed by interest rates and business rates. The survey also revealed that manufacturers in particular are concerned about exchange rates. Taxation and interest rates are

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ANALYSIS SEAN LAVERY, TAX PARTNER WITH BDO NORTHERN IRELAND LOOKS AT THE SURVEY AND WARNS THAT FUTURE CUTS IN THE PUBLIC SECTOR WILL CONTINUE TO HAVE AN ADVERSE IMPACT ON THE ECONOMY. bigger issues for Northern Ireland’s smaller businesses but particularly micro-enterprises. Wage rises anticipated and demand growing The survey revealed that over the coming year, 60 per cent of members believe wages in their business will increase. However, these are largely anticipated to be below the current level of inflation, with only 23 per cent of members expecting wages to rise by 3 per cent or more. Wage rises are viewed as much more likely in Northern Ireland’s larger businesses. There is some sense that demand is increasing, particularly for manufacturers. Around half of businesses are expecting to increase capacity utilisation this year, although 43 per cent expect it to remain unchanged. Around half of those businesses which are expecting no change in capacity utilisation are still anticipating wage increases which have negative implications on Northern Ireland’s already low level of productivity. Ann McGregor, Chief Executive of NI Chamber, said: “There are some positive indicators for the Northern Ireland economy this quarter and we are making progress towards recovery. However, it is still not clear that any strong recovery has taken hold and businesses are still facing considerable challenges. The most welcome results are in the export indicators. These indicators have been very low for a number of quarters so it is good to see a noticeable improvement on this occasion. “More support for exporters is just one way the government can do more to ensure the recovery is a sustainable one. We have campaigned strongly about the negative message Air Passenger Duty is sending exporters and it was positive to see action taken in the Chancellor’s recent budget. However, we would like this to have gone much further, particularly given the impact of APD on Northern Ireland businesses. “As the survey also shows, energy costs are an increasingly significant element of a businesses’ cost-base with global indicators suggesting that costs are only going to increase over the coming years. We simply cannot accept this and must continue to work with government to address the issue. In the meantime, businesses should at least have an energy audit carried out on their premises and business processes, in order to find out exactly where energy is being wasted and then implement improvements.”

The NI Chamber 2014 Quarterly Economic Survey results for Quarter 1 mirror the current trends we are seeing with our clients, with some areas for optimism but also just as many causing caution and even concern. This is somewhat indicative of the rocky bottom stage of the economic cycle we find ourselves at in Northern Ireland. Although Northern Ireland’s economy is gradually improving, the recovery position is to be contrasted with the rest of the UK which shows a more positive and sustainable growth picture. The survey results indicate that Northern Ireland featured in the bottom 3 regions on all the findings. This raises concerns regarding the growing gap between Great Britain and the Northern Ireland private sector economy. There is, however, a two speed recovery within Northern Ireland businesses. We are finding that those Northern Ireland businesses focused on export markets, including Great Britain and the Republic of Ireland, are seeing increases in both activity and profitability. Unfortunately, the same cannot be said for businesses operating solely within the Northern Ireland market. Competition over pricing is fierce and businesses are also seeing continued increase in their overheads with rising energy costs and pressures to increase wages above the annual rate of Inflation.

This is against a backdrop of unchanged capacity utilisation. The recent Chancellor’s Budget in March was positive for larger businesses with a reduction in the Corporation Tax rate to 21 per cent and a further reduction to 20 per cent in 2015 as well as the expansion of Annual Investment Allowance to £500,000 for capital expenditure. However, those changes will have limited impact, if any, for many small businesses. In 2011, Great Britain introduced 21 Enterprise Zones to help stimulate the economy so the announcement of the creation of a single new Enterprise Zone for Coleraine is to be welcomed. However, it simply does not go nearly far enough to rectify the imbalance between Northern Ireland and the rest of Great Britain. It must cover the whole of Northern Ireland. The concern is that without any significant assistance from Government to greatly bolster the Northern Ireland private sector, the gap between Great Britain and Northern Ireland will continue to widen and the Northern Ireland private sector will not be able to absorb the future cuts in the public sector. A positive resolution to Northern Ireland’s Corporation Tax debate must come after the Scottish Referendum vote in September 2014 if Northern Ireland is to begin bridging the gap with the rest of Great Britain.

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[NEWS] (L-R) Christopher Morrow, Communications Manager at NI Chamber; Kevin Kingston, Vice-President at NI Chamber and Adele McIvor, Corporate Services Manager at the Workspace Group, launch the 2014 Chamber Awards.

SCENE IS SET FOR ANNUAL CHAMBER AWARDS

orthern Ireland Chamber of Commerce and Industry has officially launched the eleventh annual Chamber Awards by inviting firms to showcase their talents and achievements through a series of regional heats, culminating in a national final in London. Local businesses from all sectors can enter nine categories, covering people development; manufacturing; sustainability; international business; innovation; technology; young people; and entrepreneurship. The awards will be demonstrating the very best of business from across the Province, highlighting the positive contribution that businesses make to the UK economy and to society as a whole. The Northern Ireland winners will then go on to compete against the winners from 11 other regions across the UK and stand the chance of being crowned the overall UK winner. The full list of categories this year cover: • Small Business of the Year • Commitment to People Development • Manufacturer of the Year • The Sustainability Award • Entrepreneur of the Year • Achievement in International Business • Excellence in Innovation • Best use of Technology to Improve Business Performance • Young Person in Business Award Kevin Kingston, Vice-President of Northern Ireland Chamber of Commerce and Industry, said: “Businesses from across Northern Ireland are finding innovative ways to grow, create jobs and wealth, and are continuing to drive the economic recovery forward. “We are hearing so many stories from dynamic companies about 54 l Ambition Magazine

how they are making a positive contribution to their local communities, and finding new markets for their products and services at home and abroad. The annual Chamber Awards celebrate these success stories, and highlights the excellence of local businesses.” Last year The Workspace Group became the first Northern Ireland winner of a UK Chamber Award, with highly commended UK awards also going to ShredBank for Excellence in Marketing and to Employers For Childcare Charitable Group CEO, Marie Marin, for Outstanding Personal Achievement. Adele McIvor, Corporate Services Manager at the Workspace Group, said: “For The Workspace Group to win the award with NI Chamber and then an overall UK award with the British Chambers of Commerce is a real privilege and a wonderful endorsement of how hard our team has worked to achieve our goals. “It is great to be recognised for our dedication to delivering the best service to our customers while also striving to improve the efficiency and environmental impact of our work. We continually endeavour to have a positive impact on the communities in which we work in and this is encapsulated by our mission statement ‘Passionate about Business, Delivering to our Community’.” The closing date for entries is Friday 27 June 2014 with entrants being assessed and then declared a winner at regional level on 22 September 2014. The national final will take place on 27 November 2014 at the Pavilion at the Tower of London. To enter online, go to www.chamberawards.co.uk or for further information you can contact Christopher Morrow, Communications Manager at NI Chamber on 028 90244113 or email christopher.morrow@northernirelandchamber.com.

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[NEWS]

BT CALLS UP NEW JOBS BT has created ten new engineering apprentice jobs in Northern Ireland. The latest intake of new recruits, who begin their careers with BT, will be working in roles right across the Province. They will embark on a two year programme coordinated by Engineering Training Services (ETS) Belfast, with time spent at BT Training centres located in Antrim and Omagh. The new apprentices will train as multi-skilled customer service engineers with the installation and maintenance of next generation super-fast fibre broadband top of their training schedule. Alex Crossan, MD Commercial Networks BT, said: “This latest recruitment is great news for Northern Ireland. It is another example of BT’s commitment as one of the region’s largest private sector employers and investors. Providing the opportunity for people to build lasting and rewarding careers - as well as our major multi million pound investments in sophisticated technology, such as fibre optic broadband - will play a vital role in the future success of Northern Ireland.” In addition to the latest intake of

engineering apprentices, 23 graduates will also be starting their careers with BT in Northern Ireland in September 2014. BT continues to work closely with local universities in the promotion and development of key skills relevant to jobs in the technology space. BT has invested directly in infrastructure rollout in partnership with the Department of Enterprise, Trade and Investment with over 90 per cent of all premises in Northern Ireland now

connected to a fibre-enabled street cabinet, putting the province ahead of the majority of European countries. It was recently announced that BT is investing further, along with DETI and DARD, in the delivery of improved broadband services for 45,000 premises. The £24.5m investment will see BT deliver improved broadband technologies and infrastructure in some of Northern Ireland’s most remote locations.

Line-up of some of those starting new careers with BT.

BT LAUNCHES NEW PORTFOLIO OF SERVICES Colin Hamill, Head of Network Enabled Services, BT Northern Ireland and Peter Russell, General Manager, BT Business, Northern Ireland.

BT Northern Ireland has established a new Network Enabled Services team to help public sector and private sector organisations evaluate, design and adopt New Ways of Working. These New Ways of Working consist of empowering the workforce to work from anywhere at any time, providing them with the tools to work collaboratively with their colleagues, improving productivity, work life balance and reducing their carbon footprint.

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BT has invested over £300m in its network in Northern Ireland over the last 5 years through its 21st century network and Fibre to the Cabinet programme. Commenting on the new service portfolio, Peter Russell, General Manager, BT Business in Northern Ireland said: “We are now delivering affordable high bandwidth connectivity to homes, businesses and public sector bodies right across the province making Northern Ireland now one of the best connected regions in Europe. This availability of affordable high bandwidth services along with developments in Wi-Fi, mobile technology and tablet computing devices is enabling organisations to radically change the way they work”. The team is led by Colin Hamill, BT’s new Head of Network Enabled Services. Commenting on his new role Colin said: “I am delighted to have the opportunity to build a team of business and technical advisors who can help organisations leverage new technology to change the fundamentals of how they work and deliver services. Our advisors will specialise in a particular area of public sector or private sector and will be our lead contact for the customer from concept and evaluation through to in-life support. In effect they will design, deliver and support the services.”

For further information visit www.btireland.com BT’s Network Enabled Services portfolio includes: • Remote and mobile access technologies allowing secure ‘anywhere, anytime’ access to corporate information and services. • Wireless networking allowing staff to work from their preferred location within the office. • Unified communications allowing all voice, video and messaging services to be directed to the chosen work location of a member of staff. • Presence services allowing staff to know the location of a colleague and their preferred method of communication. • Single number reach optimising the reachability of staff and reducing the cost of communicating with them. • Collaboration technologies allowing employees to work collaboratively on documents in real time within and across organisational boundaries. • Business grade video allowing colleagues and external partners to meet virtually and work collaboratively in a more efficient and timely manner.

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Ambition Magazine l 57

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[FEATURE]

Richard Williams Chief Executive Northern Ireland Screen

STARRING ROLE IT’S LIGHTS, CAMERA, ACTION FOR NORTHERN IRELAND’S FILM AND TELEVISION INDUSTRY WHICH IS ATTRACTING A GROWING NUMBER OF INTERNATIONAL PROJECTS. ADRIENNE MCGILL TALKS TO NORTHERN IRELAND SCREEN CHIEF EXECUTIVE RICHARD WILLIAMS ABOUT WHAT’S IN THE PICTURE.

orthern Ireland has shot to fame in recent years as a stunning location for films and the perfect setting for television dramas with a wealth of talent and great facilities for producers and directors. From the narrow 18th-century alleyways of central Belfast to the Giant’s Causeway on the Antrim coast, the most famous areas of Northern Ireland have been transformed into open-air sets for the global film sector. Its current new status as a hub for film and television production is built around a cult US medieval fantasy series and a gigantic hall where some of the most renowned cruise liners of the 20th century were painted but which has become a much sought after centre for the creation of sets.

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The American network HBO chose Northern Ireland to shoot the bulk of Game of Thrones, the Emmy-award winning show based on the novels of George R. R. Martin. The worldwide success of the series has propelled Northern Ireland to prominence in terms of movie making and TV production excellence. There is also The Fall, the dark and chilling drama about a senior police officer investigating a series of brutal murders in Belfast, starring Jamie Dornan and Gillian Anderson. A steady flow of major movies produced in Northern Ireland has included City of Ember, Good Vibrations, Jump and Whole Lotta Sole which was directed by the award winning

Belfast born director and producer Terry George. Miss Julie which was made on location at Castle Coole, Co Fermanagh last year and starring Colin Farrell is yet another major production. On top of this, two new studios planned for Belfast’s Titanic Quarter will help establish the city as one of Europe’s largest film production locations. The studios will give an additional 100,000 square feet of facilities. That would almost double the existing production space at Titanic Studios, which incorporates Harland and Wolff shipyard's former Paint Hall building where the design and build of the indoor sets for Game of Thrones takes place.

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Game of Thrones picture courtesy of Sky Atlantic

Characters Oberyn Martell and Ellaria Sand in Game of Thrones.

Northern Ireland Screen, the governmentbacked lead agency for the film, television and digital content industry, is the primary funding source for film makers working in Northern Ireland. The agency recently launched its new strategy ‘Opening Doors’ which sets out the future development of local film, television and digital industries over the next four years. With a fund of £43m, the aim is to tempt more Game of Thrones style high end television and film productions to Northern Ireland. The scheme which will run until 2018 is designed to develop the strongest screen industry outside of London. The Opening Doors fund, awarded by the Department of Enterprise, is also available for factual television and animation projects, and marks a significant increase from the £27.3m invested by Northern Ireland Screen over the past four years. Northern Ireland Screen Chief Executive Richard Williams says that the previous scheme – Driving Global Growth – has generated a £121m return on investment and he anticipates the new plan will bring in £250m. Sitting in the agency’s office on Belfast’s Alfred Street surrounded by posters promoting films which have been shot here, Richard is enthusiastic about what can be achieved. “The vision is to have the strongest screen industry outside of London within ten years. “Opening Doors is about maximising the opportunities in the screen industries here. With the support provided by the Department of

Crime thriller The Fall starring Jamie Dornan and Gillian Anderson.

Enterprise, through Invest NI, we are confident that the film, television drama, factual television, animation and gaming sectors will all grow significantly in the next few years.” He points to the fact that some of the world’s major production companies such as Universal, Playtone and HBO have centred productions here and in the process brought considerable economic benefits. The productions create jobs for the mainly freelance film and television crews in Northern Ireland and boost the local economy through expenditure on goods and services. Large scale international productions filmed in Northern Ireland also include Closing the Ring, Dracula, Series 1-4 of Game of Thrones with

Series 5 and 6 also commissioned. “The success has simply been that every year we have sought to go up another step and our ambition has grown,” says Richard. “But it is important to emphasise that gaming, social media, apps, web content and e-learning are just as important to us as large scale productions in terms of studio films like Dracula, and Game of Thrones in the cable television world. “It is only if we can sustain a fully mixed economy across all of those different types of genres that we will reach our ambition. “We already lead Ireland and the UK, outside of London, in terms of attracting large scale productions but we want to be equally strong in

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Actor Colin Farrell in Miss Julie which was made on location at Castle Coole, Co Fermanagh last year.

locally produced independent film, in television drama, in all types of factual television and in particular the international business of selling formats. “We are broadening our focus but the mechanisms we use in terms of development funding and production funding aren’t changing. “The fact that HBO has just commissioned a fifth and sixth season of Game of Thrones is a tremendous vote of confidence in the project here. It is a considerable break with traditional business practice to announce two seasons in one go. “Game of Thrones has an almost infinite portfolio of value for Northern Ireland and for the screen industry here. It completely revolutionised our positioning in the international market place which is the key to success in terms of either inward investing or export businesses. “Brazil is the most enthusiastic audience for Game of Thrones but it is also huge in China. The series is very much the main anchor project in terms of international awareness because of its scale. I think people here still do not realise just how big Game of Thrones is.” The Fall, whose second series is currently being filmed in Belfast and will air at the end of the year has also shone the spotlight on Northern Ireland’s prowess in television production. The crime thriller, which was shown on BBC2 last May, was a critical success as well as wowing over 3.5million viewers. It has received two BAFTA nominations for series one with a nomination for ‘Best Mini Series’ and Jamie Dornan is in the running for the coveted title of ‘Leading Actor’. The Wipers Times, filmed on location in Northern Ireland is also up for ‘Best Single Drama.’ “The Fall has been a standout success. While Northern Ireland Screen supported the drama, it is primarily a BBC project commissioned by BBC NI. It is not just for the UK market. It is for

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international audiences – it has sold enormously well around the world and has paid back inside 18 months the £500,000 investment which we had in it for the first season.” says Richard. “It is hugely successful – as has been the other BBC NI drama – Line of Duty. Our primary purpose is to ensure that economic activity related to the film, screen and digital industry happens here.” For example, every time Game of Thrones comes to Northern Ireland, it spends more than £20m on goods and services. In terms of job creation and employment, the crew totals around 500 people of which 350 are from Northern Ireland. Richard also points out the boost the industry received when the UK government announced a tax credit scheme for high end television production and animation in a bid to keep creative talent in the UK. “Two things have happened which put us in a very strong position for future projects. We have the single biggest and most successful high end TV project in Europe at the moment and that sends a very strong message to potential buyers about the appropriateness of Northern Ireland as a place from which to produce their projects and also we have the introduction of the high end television tax credit – and that is a very competitive incentive.” Animation is a particular area which Northern Ireland Screen believes has the potential to grow significantly. Local companies Sixteen South, Jam Media, Flickerpix and Dog Ears, are all currently in production with international animation projects and are leading the charge to bring content developed and produced in Northern Ireland to a global market. “We are wholly confident that animation is going to explode in Northern Ireland – it already has a very strong basis. There is a group of small animation firms but they, like high end television, have just had the introduction of

the tax credit which will turn them from being highly creative and capable businesses that are in the cottage industry scale into a major significant animation hub in world markets.” And there’s more good news. Sepia, is a brand-new commission from Microsoft’s Xbox Studios that will start filming in Northern Ireland in mid-May. The film, which is based on a computer game franchise and will be distributed via the games console, is produced by Ridley Scott’s Scott Free and Generator Entertainment, run by Mark Huffan and Aidan Elliott. Richard says: “This is another big breakthrough for us - screen content for Xbox. Microsoft coming in and spending dollars in Northern Ireland is good on any level but the fact that they are doing it on something which is ground breaking for the screen industry here is a big deal.” With credits streaming in, it seems Northern Ireland is cast to play a major role in the screen industry for many years to come and with it, says Richard, are opportunities for potential investors. “We really want to develop and encourage local private investment in the screen industries. There are a range of different and considerable opportunities around investing in the next generation of productions. If we are going to be as dynamic and robust as we want to be, we really have to make big inroads into local private investment. “The business community could have a starring role in financially supporting the sector and we know there is an appetite for it. When I look at the animation sector and the embryonic things going on in the gaming sector, there are serious opportunities for people to invest and some will get good returns and others will get amazing experiences. They might get to the Cannes Film Festival and beyond our wildest dreams...the Oscars.” The red carpet awaits.

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[COLUMNIST] MATHEW FORDE – MEDIA & ENTERTAINMENT LAWYER WITH FORDE CAMPBELL

FINANCING TELEVISION PRODUCTIONS – A COLLABORATIVE JOURNEY AN INCREASING NUMBER OF PROGRAMME MAKERS ARE SEEKING TO FINANCE PRODUCTIONS THROUGH COLLABORATIONS AS MATHEW FORDE EXPLAINS.

“ have this great idea for a TV series” are words that any seasoned TV producer or commissioning editor will have heard a thousand times. As those familiar with the esoteric world of television production will tell you, having a ‘great idea’ is the easy part but knowing how to deliver that idea with the objective of making a commercial return is no mean feat. In short, the commercial challenges facing the development and production of a series of programmes for television are not unlike the challenges that confront any new business venture. For those untutored to this world, the process typically proceeds along an evolutionary trajectory: first comes the business of securing and protecting the rights to the idea; next the process of developing and pitching the idea to interested parties (whether these be potential funding parties, coproducers, distributors or TV networks); then the business of financing and budgeting for production; followed by the task of actually producing and delivering the programme; and lastly the process of generating revenue from the finished programme. The journey through each of those stages in the process is often a long and frustrating experience. As media lawyers we frequently find ourselves advising and supporting clients through the various stages of that journey. Not only do we assist in the securing and protection of the underlying rights but we also advise on the range of alternative structures that might be used for holding and exploiting those rights or for producing and delivering the programme. Getting those structures right often proves critical for the purpose of securing key funders and contributors to a production. This is particularly the case in Ireland where co-productions often avail of a range of cross-border funding opportunities, with the potential to access UK and ROI regional funders, such as Northern Ireland Screen and the Irish Film Board and take advantage of favourable tax regimes that are now available in both jurisdictions to encourage third party investment in television production projects. For independent production companies, long gone are the days where a commissioning broadcaster, such as the BBC or RTE, could be relied on to fund the lion’s share of production costs. These days independents are expected to take a greater share of the risk and the production process is viewed as more of a

A long series of elements are involved in the production and delivery of a television or film production. (Scene taken during filming in Belfast of The Wipers Times).

collaborative effort, usually involving multiple stakeholders and funding parties, each taking a proportionate share of the risk and reward. The business of producing animated programmes for children’s television has resulted in some interesting collaborations. Unlike a traditional drama series for adults, an animation series presents an attractive model to funders and investors because of its potential to tap into a global market and maximise the opportunity for long term returns. Animated programmes are easily dubbed into foreign languages and a popular series lends itself well to the secondary programme market of DVD and digital download sales in addition to the merchandising of associated books, toys, stationary and clothing. Any TV series that has associated book publication rights will, inevitably, be attractive to publishers of children’s books (such as Penguin or Walker Books). Likewise, television networks (such as Nickelodeon or Sprout) and distributors (such as Fremantle) may be

attracted to the potential of digital content sales and associated merchandising. These factors have the advantage of making animated productions interesting business opportunities for these parties.

“THE COMMERCIAL CHALLENGES FACING THE DEVELOPMENT AND PRODUCTION OF A SERIES OF PROGRAMMES FOR TELEVISION ARE NOT UNLIKE THE CHALLENGES THAT CONFRONT ANY NEW BUSINESS VENTURE.” Ambition Magazine l 61

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[FEATURE]

BRIGHT YOUNG BUSINESS BRAINS

Ulster Business School student, Aisling Armstrong, overall winner of the CISI NI Investment Student of the Year Award at the presentation dinner with Wayne Nickels, CISI NI President and Professor Marie McHugh, Dean of the Ulster Business School.

TOP TRADERS ULSTER BUSINESS SCHOOL STUDENTS HAVE SHOWN THEIR ENTREPRENEURIAL TALENTS BY MAKING A £55K PROFIT IN SEVEN WEEKS.

Ulster Business School students pursuing an MSc in Financial Services put their academic learning to the test recently resulting in a £55,620 profit made in only seven weeks. The 18 students were all completing coursework taken in the Financial Markets, Investments and Operations Module. Their challenge was to develop a trading and investment strategy with a virtual £100k each, which they managed over a seven week period. All of the trades by the students were in ‘real-time’ at actual market prices using market trading simultation software. Ulster Business School lecturer Paul Stewart said: “Whilst the cohort had a virtual £1.8m to start with, the average equity portfolio return of just over 3 per cent in such a short trading window was very creditable indeed and gave the students a practical and realistic understanding of the investment sector.” 62 l Ambition Magazine

Five employers, Danske Bank, Cunningham Coates Stockbroders, Graham Corry Cheevers, Investec Wealth & Investment and Quilters along with The Chartered Institute for Securities and Investment (CISI) helped develop the coursework, facilitated student mentoring by their staff members and sponsored a prize for the top three ‘traders’. Belfast student Aisling Armstrong was the overall winner of the CISI NI Investment Student of the Year award with Peadar McMullan from Ballymoney and international student Yiguan Li both runners up. Speaking at the awards presentation, CISI (NI) President Wayne Nickels, who is also Partner at Cunningham Coates Stockbrokers, said: “The enthusiasm the students had throughout the project is testament to their interest in the investment arena – especially those who have non-financial undergraduate

qualifications. Although the project had a relatively short trading period, the practical application of the theory and appreciation of longer term investing shone through.” The students themselves found the experience to be extremely beneficial. Overall winner Aisling Armstrong said that she “really enjoyed the hands on trading experience and found the project challenging but simultaneously very rewarding and insightful.” Runner-up Peadar McMullan commented that he found “the trading project an innovative and exciting introduction into the practical world of equities trading,” while fellow runner-up Yiguan Li said that “the course has helped me to develop the knowledge of global financial markets and financial assets and has helped me to better understand the financial industry. I believe that this will be very useful in my future career.”

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[FEATURE]

STUDENT GETS CREATIVE AT BUSINESS BOOTCAMP Conan Mulraine from South Eastern Regional College put his creative skills to the test at the BT Young Scientist Business Bootcamp 2014 which took place at University College Dublin (UCD) recently. The County Down student was selected for his project ‘Renewable production of ethanol bio fuel’ in January 2014 from over 1,200 secondary school students who competed in this year’s BT Young Scientist & Technology Exhibition. Congratulating all the participants at the BT Young Scientist Business Bootcamp award ceremony, Shay Walsh, Managing Director of Business, BT Ireland said: “It’s our fifth year delivering the BT Bootcamp at UCD

and as a judge I was once again hugely impressed with the entrepreneurial skills the students have displayed. I hope that our 29 participants will be returning home with an entirely new set of skills enabling them to take their idea out of the classroom and transform it into a viable business venture in the future.” The four-day innovation and skills camp welcomed 29 second-level students from across the island of Ireland who demonstrated an ability to understand how and why a simple idea can be developed into a commercially-viable enterprise. For further information visit www.btyoungscientist.com

LOCAL COLLEGE SHOWCASES GLOBAL PARTNERSHIPS

Thompson Keating SERC Director of Corporate and Economic Development, Minister for Employment and Learning Dr Stephen Farry and Vice President Dr Naruse from Toyama National College of Technology at the recent Japanese stakeholder event.

Preparing young people to work on a global stage is increasingly important. Local college, South Eastern Regional College (SERC), recently showcased its global partnerships which have been established to develop skills for local and international students, by hosting a Japanese stakeholder event to promote its successful partnerships with Toyama National College of Technology, Japan and Nagaoka University. The Minister for Employment and Learning Dr Stephen Farry attended the showcase to recognise SERC’s global partnerships and their importance in building the local economy and was joined in keynote speeches by SERC’s Director of Corporate

and Economic Development Thompson Keating and Vice President Dr Naruse from Toyama National College of Technology. The Minister endorsed the partnership saying: “The international dimension of events such as this is a perfect illustration of how today’s world is interconnected and, moreover, how we can all benefit from sharing our experiences and knowledge with partners across the world. The role of education providers, particularly in the further and higher education sectors, in creating and sustaining effective networks of knowledge and expertise is one of the most important drivers in today’s economy.”

SERC Director of Corporate and Economic Development Thompson Keating said the partnership with the Japanese based college symbolised the international nature of the Northern Ireland economy and recognition of its role in delivering world class education to help businesses and individuals compete on a global platform. “Building partnerships for international development presents great potential for enhanced learning, exchange of ideas and positive change and provides opportunities for staff and student mobility as well as global joint research projects. We are extremely proud to be the only college in the UK with this type of link to a Japanese college and we hope that this will lead to further opportunities for our students as they have a chance to see how the third largest economy in the world up skill their workforce to meet global challenges. Furthermore, this partnership exemplifies SERC’s commitment to diversity – locally and globally.” Since 2009 SERC has enjoyed sister relationships with Toyama National College of Technology, Japan and Nagaoka University and has hosted many international exchange projects offering staff and students unique knowledge transfer opportunities which will serve them well in their future careers. Both Toyama and SERC have close links with an international partnership which has now been extended by a further three years in order to continue the work of sharing knowledge and best practice from either side of the world.

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[COLUMNIST] IAN RAINEY, FORMER INTERNATIONAL BANKER

CAN ANYONE STOP HILLARY CLINTON? THE FORMER FIRST LADY AND US SECRETARY OF STATE HAS STAR APPEAL AND, ACCORDING TO IAN RAINEY, SHE HAS WHAT IT TAKES TO BE THE NEXT AMERICAN PRESIDENT.

ore than two years ahead of the 2016 presidential elections in America Democratic power brokers and fund raisers are swinging behind Hillary Clinton as the party’s nominee for US President. Craig Smith who masterminded Bill Clinton’s 1992 and 1996 successful campaigns is the senior adviser to a campaign group “Ready for Hillary”, which has been set up to organise the grass roots for a 2016 presidential campaign should Hillary decide to run. Jim Messina, a former White House deputy chief of staff, who ran Obama’s 2012 re-election campaign, is the co-chair of another campaign or Super Pac Group known as “Priorities USA Action”. His task is to groom mega donors to fund a campaign which it is predicted could cost as much as $1.7bn. This “back-of-theenvelope” calculation is based on Messina’s observation that a successful Presidential campaign will cost 150 per cent of what the previous Presidential campaign cost the Democrats in 2012. Besides these two major funding groups, a rapid response team “Correct the Record” is primed to shoot down any anti-Hillary criticism; a think tank “The Centre for American Progress” is in place to work up essential White Papers and to fieldtest “Applause Lines”; and a women’s network, “Emily’s List” has been set up to rally the sisterhood to once and for all smash the glass ceiling in American politics. Against this there is apparently only one problem, Hillary has categorically not decided to run yet. She is currently heavily engaged in writing a memoir of her work as Secretary of State while at the same time replenishing the coffers of her family’s charitable foundation. But every man and his dog is aware that Hillary is globally so famous, she is so well primed for the Presidency after two campaigns at her husband’s side and one epic race of her own against Obama in 2008, that her life as a private citizen is virtually undistinguishable from her life as a candidate. As one Time Magazine Commentator put it “she could stand on the White House lawn tomorrow and say she wasn’t running for the Presidency, and no one would believe her”. No one has put their hand up as an alternative. Vice President, Joe Biden would love to do so but he will be 74 years old by the date of the 2016 Inauguration Ceremony. Ambitious Democrat Governors like Martin O’Malley in Maryland and Governor Cuomo in New York are young enough to wait for 2020 or 2024. And probably more important, the 64 l Ambition Magazine

demographics of the American electorate and its voting patterns have played very much into the hands of the Democratic Party. In 2012, 93 per cent of the black vote went to the Democrats and that is unlikely to change; 53 per cent of female voters went to the Democratic Party and few would visualise this doing anything but increase if Hillary stands; 71 per cent of the Hispanic vote and 73 per cent of the Asian vote went to the Democrats and probably more surprising Obama won the election in 2012 with only 39 per cent of the white vote. Moreover the Republicans are struggling to come up with any stellar candidates to compete with Hillary. Jeb Bush, son of George Bush Snr and a former Governor of Florida is being touted, in that his greatest asset is his Latino wife, which few see as outweighing the drag created by the family name. Marco Rubio, the current Senator from

Florida and also a Latino, is seen as someone who might win back some of the ethnic vote, but his experience when compared to Hillary would pale into insignificance. Hillary’s greatest opposition could come from within the Democratic Party in the form of Elizabeth Warren, the Massachusetts Senator, who is riding a ground swell of Democratic anger over income inequality and anti-hedge fund sentiment. If the two could get together on the same ticket, with Hillary as President, the glass ceiling would be in grave danger. Not unlike Britain, the US needs a modern conservatism comfortable with the country as it is, not as it used to be. The Republican Party is old and white and in the apparent absence of a stellar candidate, I believe Hillary Clinton will be a “shoo-in” as the US’s first female President, if she chooses to run.

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BANK OF IRELAND UK PROUD SPONSORS OF INVENT 2014 BY JULIE ANN O'HARE, DIRECTOR BUSINESS BANKING NI, BANK OF IRELAND (UK).

A key factor in driving sustainable economic growth in Northern Ireland will be the continued focus and investment by local businesses in innovation. Northern Ireland inventors have consistently demonstrated that they can compete on the global stage when it comes to developing innovative new products and services to improve everything from quality of life, advances in engineering and environmental protection. At Bank of Ireland UK we believe in the potential of our local knowledge based businesses to grow through delivery of innovative solutions As the main sponsor of the INVENT 2014 Awards (formerly the 25K Awards) the Bank is proud to support NISP in their drive to build on Northern Ireland’s solid

eco system for innovation into the future. Through this partnership the Bank keeps its finger on the pulse of the technology sector and shares its expertise gained over many years supporting customers such as First Derivatives, Andor Technologies and Kainos, and builds new relationships with those companies like ProAxis who are just starting out. INVENT 2014 is much more than an award. It provides a framework to encourage, support and inspire innovation across many sectors; creative media, engineering, agrifood, life and health, electronics and enterprise software. The programme connects participants with mentors in technology, finance, professional services and

like-minded entrepreneurs who have been there and done that – a vital connection for inventors starting out on the journey to commercialise their idea. 2014 lifts the award to a global stage! Each category winner will win two places on a lucrative visit to San Diego, the home to many of the world’s top business clusters in biotechnology, wireless communications, biofuels and sports technology – opening the world’s best networks to local businesses! At Bank of Ireland UK we are proud to be associated with such a vibrant sector and welcome the opportunity to provide the full range of banking services to meet the needs of Northern Ireland’s innovators big and small!

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[FEATURE]

FUELLING GROWTH IN THE FAST MOVING WORLD OF IT, THERE’S NO TIME TO STAND STILL. ADRIENNE MCGILL HEARS FROM PAUL TROUTON ABOUT HOW HIS COMPANY IS MOVING INTO POLE POSITION WITH A NEW NAME AND LOOK.

Paul Trouton, the power behind Fuel.

Carn, offers a range of software solutions to help businesses manage and integrate their various divisions and functions. It also develops applications to suit specific requirements. There are two sides to the business – the sage application software development and the Microsoft systems which they run on. “They operate as one unit but are two magnets which attract customers,” says Paul. The company has won the Sage Circle of Excellence award three times which recognises and rewards firms who provide outstanding customer service and whose customers are most likely to recommend them to friends and colleagues. The firm is the first in Northern Ireland to have become a Sage Platinum partner and as a Sage provider offers an extensive portfolio of Sage suites including accounts, payroll, HR, and financial forecasting. Paul says Fuel’s expertise lies in helping firms find the right balance of functionality, performance and price across systems. “We take the headache of IT away from customers. We look at everything that is available from an IT perspective and see how that applies to your business. Our job is to understand all of that and present you with what best suits your needs.” The company has built up particularly strong partnerships with customers who are involved in export markets. “We make sure their communications systems are safe, secure and are connected with one another. This covers infrastructure and hardware support. As technology has become smarter, the need for security and encryption has increased so we are constantly finding out what’s new in the market,” says Paul. “We look at where new technology increases efficiency, drives down cost and simplifies communication. I am looking at how it will benefit customers in running their businesses. “When the iPad came along, I knew it would revolutionise the way people worked. Most people can’t be bothered waiting for their laptop to boot up but an iPad gives you the internet instantly on a screen. That is what people want – immediacy. Technology is changing and it is changing people lives at a rapid rate – it is incredibly exciting.” It seems Fuel is intent on racing ahead as it continues to steer customers towards the most effective technology for their needs.

“COMPUTERS ARE NOW LESS TO DO WITH A MACHINE WHICH SITS ON A DESK AND MORE TO DO WITH HOW TECHNOLOGY IS PUSHED INTO EVERYBODY’S LIVES.”

Craigavon based IT company is powering its way, with a high octane drive, into the future with a new name and rebrand which takes off this month. Fuel – High Performance IT is the new name for Micro Computer Solutions (MCS) which was established in 1991 by Managing Director Paul Trouton while he was studying Computer Science at Queen’s University, Belfast. Fuel has grown to become one of the leading IT providers in Northern Ireland. With a strong foundation in infrastructure, communications and Sage products, the company provides a large range of IT services to clients across an array of sectors. It was one of the first firms in Northern Ireland to provide custom built PCs and Servers for both home and business markets. Explaining the reason behind the name change and rebrand, Paul says: “The name Micro Computer Solutions was right at the time when I set up the company – but times have changed and computers are now less to do with a machine which sits on a desk and more to do with how technology is pushed into everybody’s lives. “Twenty years ago mobile phones were just starting to come onto the market and people were using them purely to make calls – but

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now smart phones are so much more than phones – they are a complete communication device across the internet. “There has been a shift about where technology lies and how it affects people in their day-to-day activities. “Through our rebrand, we wanted to reflect this change and the speed at which technology is moving. “As a company, we live, eat and breathe high performance IT – that is what we do every day for our clients. We love technology and computers. The new name conveys exactly what we are about.” The imagery accompanying the rebrand connects the company to ground breaking high tech developments over the years and the race to be first including missions to the moon and the design of Formula One engines. “We might not be going to the moon but it is pretty much the same approach – the imagery gets across the connection between design and technology. It also conveys how a company can go to a new level using our expertise. “Fuel and high performance describes us perfectly – it is incredibly hookable and catchy,” says Paul. Fuel, which employs 14 people at its base in

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[AMBITION PROMOTION]

INVESTING IN RESEARCH & DEVELOPMENT (R&D)? ARE YOU GETTING THE CREDIT YOU DESERVE? The UK Government, in introducing the R&D tax relief regime back in 2000, recognised that encouraging innovation was a vital component in the strategy for improving the UK’s productivity, performance and competitiveness. However, locally based companies have been slow on the uptake, historically claiming less than any other region in the UK.

hat position has now improved markedly, with a reported 225 Northern Ireland registered companies in the 2010/11 year claiming in excess of £200m in enhanced deductions - but there remain a significant number who are still unaware of this valuable relief.

LARGE COMPANY REGIME

The rate of R&D tax relief for a Large Company is currently 130%. This means that for every £100,000 of qualifying expenditure, the company will be able to claim a further deduction of £30,000, which at the current top rate of corporation tax at 23% equates to a corporation tax saving of £6,900.

WHAT IS R&D TAX RELIEF?

R&D tax relief is available as a “super deduction” for companies which invest in R&D activities. There are two R&D tax relief regimes – one for SMEs and one for Large Companies, and the rate will depend on whether the company is an SME or a Large Company. SME

An SME purely for the purposes of claiming R&D tax relief is classed as having fewer than 500 employees, and either an annual turnover of less than €100m, or a balance sheet not exceeding €86m. The “super deduction” rate of R&D tax relief for a SME is 225% which was introduced with effect from 1 April 2012. The effect of this super deduction is a corporation tax saving of almost £30,000 for every £100,000 of qualifying R&D spend.

ASM

CHARTERED ACCOUNTANTS

WHO CAN CLAIM R&D TAX RELIEF?

The primary criterion to determine if a particular activity or project qualifies is whether there is an advance in science or technology, with the resolution of scientific or technological uncertainties. The focus should be on whether the company has produced new products, services and processes or significantly enhanced existing ones.

ARE YOU GETTING THE CREDIT YOU DESERVE?

So, in conclusion, there are a number of extremely generous reliefs available to companies in Northern Ireland investing in R&D, and if your business is engaging in developing new or enhancing existing products, services or processes, you could be missing out. If you are in doubt, or feel that an R&D relief claim can be made but are unsure of the process, we are here to help. So, do not hesitate to get in touch.

RECENT DEVELOPMENTS

The above the line (“ATL”) tax credit was introduced on 1 April 2013 for large companies meaning that those companies investing in R&D but with no corporation tax liability in the year can now claim cash back. A further development relates to the introduction the “Patent Box” regime which also came into effect from 1 April 2013.

Caroline Keenan Tax Director ASM Chartered Accountants caroline.keenan@asmbelfast.com 028 9024 9222

PROFESSIONAL KNOWLEDGE. 20 Rosemary Street, Belfast, BT1 1QD Tel: 028 9024 9222 www.asmaccountants.com caroline.keenan@asmbelfast.com

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[FEATURE]

TIME TO SHOW OFF AGRI-BUSINESS AS WE APPROACH THIS YEAR’S BALMORAL SHOW (14TH TO 16TH MAY), CORMAC MCKERVEY, SENIOR AGRICULTURE MANAGER AT ULSTER BANK THE SHOW’S PRINCIPAL SPONSOR - REFLECTS ON THE IMPORTANCE AND GROWTH POTENTIAL OF NORTHERN IRELAND’S AGRI-FOOD AND DRINK SECTOR.

his time last year, the Agri-Food Strategy Board launched its action plan for Northern Ireland’s agri-food sector, ‘Going for Growth’. It set out a bold and ambitious vision and roadmap targeting, among other things, growth in external sales of 75 per cent between 2010 and 2020 and growth in employment of 15 per cent. For those closely involved with Northern Ireland’s agri-food sector, and for those who know its current scale and significance, these rates of growth may appear challenging. But when you look at the size of the opportunity available to Northern Ireland companies both nationally and internationally, it’s clear to me that these targets are excellent motivation for success – something that Ulster Bank is keen to play a leading role in. As a bank, we’re right behind this initiative. We have £1billion available to lend to businesses this year and the agri-food sector is a high priority. We also have a new agriculture offering which we’ll be making available through our agri-team, who have a wealth of experience in dealing with issues specific to the sector. Our offer includes a start-up package for young farmers as well as sector-specific offerings for beef, dairy and poultry farmers. The sector is fortunate to have agri-food colleges at CAFRE which are providing the

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industry with high calibre graduates to help further boost the sectors competitiveness. In addition, Ulster Bank is signed up to the Agri-Food Loan Scheme and the HMT / Bank of England Funding for Lending Scheme (FLS). We have committed over £150m to date through FLS to almost 1,300 local companies – many of them agri-food businesses – and have significant appetite to lend more. To put it in context, there are an estimated 100,000 people employed in the wider agrifood sector here and it generates an estimated £4.4billion in sales every year, £2.6billion of which are outside of Northern Ireland. Agrifood is already Northern Ireland’s largest indigenous industry, our biggest manufacturing sub-sector, Northern Ireland’s largest single employer, and our most important exporter. Ulster Bank is proud to work closely with many leading local companies in this field. The agri-food industry contributes roughly twice as much to the Northern Ireland economy in percentage terms as it does to the UK economy. As the Agri-Food Strategy Board report highlighted, agri-food also makes an even greater contribution to jobs and wealth through its purchase of goods and services such as marketing, transport and engineering. Every £1m of food and drink processing output is estimated to generate £1.91m in economic

output. Every job in food and drink processing is estimated to have a multiplier effect generating almost two jobs elsewhere in the economy. Building on this impressive baseline, there is significant potential for expansion – and businesses will be able to work and plan with their banks to take advantage of this. At Ulster Bank, we want to be at the forefront of creating these sustainable partnerships. The global population is expected to increase by about one billion people by 2030, rising to nine billion by 2050. This will require a substantial increase in global food production of something like 75-90 per cent. The rise of the BRIC countries (Brazil, Russia, India and China), and other emerging economies, with their increasingly affluent populations, means that demand for produce like red meat and dairy products in particular will rise. Innovative local companies are well placed to capitalise. At a UK-level, there is a trade deficit in food of over £18billion - that is, the UK imports over £18billion more in food than it exports. This represents a major opportunity for Northern Ireland’s agri-food and drink sector, given our close proximity to GB, as well as price advantages over competitor economies that have experienced exchange rate challenges resulting from the depreciation of sterling during recent years. Of course, while driving new growth, it’s important that those in the agri-food sector plan ahead to mitigate any potential pitfalls. The agriculture sector’s exposure to global markets, exchange rates and adverse weather can lead to volatile conditions. Reform of the CAP (Common Agricultural Policy) and rising prices for raw materials also present challenges. Issues around food safety and integrity, as well as environmental considerations, present threats as well as opportunities. But on the whole the picture for agri-food is a very positive one and the resourcefulness of local businesses in dealing with these kinds of challenge is already clear. Alongside demand for food, one of the key drivers of the future success of the local agrifood and drink sector will be access to finance for growth. And that’s where we come in. Ulster Bank is already a major lender to the agricultural sector, to food processors, to the wider agri business and food and drink industries, with many of Northern Ireland’s largest and most dynamic food companies amongst our client-base. But we are committed to further growing our involvement in and support for these sectors. As the main agri-food and drink event in Northern Ireland, the Balmoral Show is a fantastic showcase of exciting developments within the sector. It is three days of the year that highlight so much that is positive about the Northern Ireland economy. It is also a great opportunity for us at Ulster Bank to engage with the agri-food sector. Once again, we look forward to being centrally involved in the Balmoral Show, helping to attract even more farmers, business customers, exhibitors and members of the public than ever before and further demonstrating our commitment to those helping this important part of our economy to expand and thrive.

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[FEATURE]

MY AMBITION IS TO... ONE OF NORTHERN IRELAND’S BEST KNOWN NAMES IN RETAIL IS CUTTING A DASH IN ONLINE SALES. CHRIS RANKIN, HEAD OF E-COMMERCE FOR EXHIBIT, TELLS US WHAT’S IN STORE.

t’s not only Chris Rankin’s passion for fashion but also his love for design and technology that has allowed him to excel. From an early age, the 27 year old from East Belfast has been involved in Exhibit, the fashion and clothing retail business his family started 31 years ago. At 16, as a student at Campbell College, he began helping out at Exhibit’s warehouse during school holidays and quickly discovered his talent for design. This drove him to continue his studies at the University of Dundee where he graduated with a BA (Hons) in Innovative Product Design. “I have always been creative and discovering Design and Technology at school developed my interest enough for me to continue my studies at University. But I’ve always found that retail has come naturally to me and worked at Topman in Dundee during my free time from my course. A turning point for me came while working as a Christmas temp in the Menswear department at Avoca in Belfast. I ended up remerchandising the entire Menswear display and those items became top sellers.” After graduating, Chris spent a year travelling around Asia before returning to

Belfast in 2010. He joined Exhibit as a Junior Buyer where he gained experience in identifying fashion trends and sourcing quality product for the company. “The Junior Buyer role was a great start for me. It was a quick learning process which involved working with manufacturers and suppliers throughout the Europe which I loved.” After a year Chris was promoted to Buyer within the company. The new role brought more responsibility, which he used to take Exhibit in a new direction.

“LAUNCHING THE E-COMMERCE SITE HAS DEFINITELY BEEN ONE OF THE PROUDEST MOMENTS IN MY CAREER SO FAR.”

“I focused on clothing that was young, fashion-focused and trend-led. I bought items that were inspired by what celebrities were wearing. I wanted our clothes to be inexpensive, while still being great quality.” Putting affordable, trend-led fashion at the heart of the brand brought renewed success. Exhibit currently has 25 stores across Northern Ireland and the Republic and has further expansion in the pipeline. A year ago, after spotting a new route for business growth, Chris moved into his current role as Head of E-Commerce which combines his love of design and technology with his passion for retail. He is responsible for Exhibit’s move into online sales, renovating the brand’s website, setting up the online store and managing the company’s social media campaign. “It just seemed like an obvious progression for the company. I looked at successful online retailers like Boohoo and Asos and saw that they have fantastic image-led websites. I realised we needed to get out there and show people what Exhibit is offering! The realisation led me to set-up our first photo shoot in a long time in March for the 2014 Spring/Summer campaign. The photos are stunning and have given a new, fresh face to the brand. “My role as Head of E-Commerce is terrific as I really feel part of driving the company forward. Launching the ecommerce site has definitely been one of the proudest moments in my career so far. I love the fact our customers can be anywhere, and go to our website to order a new top or outfit for the weekend. We wouldn’t be in business if it weren’t for the loyalty of our customers, and we get so much inspiration from them that we decided to set up the ‘Face of Exhibit’ competition this Spring. We will be holding heats in our stores throughout Northern Ireland and the Republic to find the new face of next season’s campaign.” Chris says he is delighted at the growth of the company and his ambition is to lead the online sales division to further success. “The office is a great place to work, it is fast-paced as styles are constantly being refreshed but a lot of fun and of course I’m proud to be part of the family business. As for what the future holds, I hope to expand at some point with more bricks and mortar stores. I also want to build on online orders to worldwide destinations. Since the ecommerce site has gone live, we have already taken orders from customers in the US, Italy and Australia. My priority is to make Exhibit as successful as it can be and I can already see that the potential is huge.”

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#wellconnected

#WELLCONNECTED WITH… FELLOW CHAMBER MEMBERS NI CHAMBER NETWORKING EVENTS PROVIDE ACCESS TO BUSINESSES FROM ACROSS NORTHERN IRELAND AND TO KEY GOVERNMENT INFLUENCERS. HERE, WE HIGHLIGHT A NUMBER OF RECENT EVENTS WHICH HAVE ENABLED OUR MEMBERS TO BE #WELLCONNECTED AND GROW THEIR BUSINESS.

NEW MEMBERS NI CHAMBER WOULD LIKE TO WELCOME THE FOLLOWING NEW MEMBERS:

Accounting Adrian Hall & Co Agri-Food Cloughbane Farm Foods Banks & Building Society Beulah Business Solutions Business Services Adecco UK Atradius Fleetminder HMC Global Horizon Energy Group IT Meters Ltd Job Lot Recruitment Massive PR Oakdene Services Sentel Independent Sourcedogg UK Unify Solutions WPA

NI Chamber hosted ‘Creative Connections’, an event in partnership with the Arts Council for Northern Ireland. Pictured at the event is the Arts Council’s David McConnell; NI Chamber’s Louise Turley; David Levin, Social Media Writer & Consultant and Mary McKenna MBE, Founding Director of Kick Consulting.

Construction Cherry Pipes Limited ROL Testing Ltd Creative Industry Crosstown Media F.L. Brunell Iconic Date Art Greenans Products Health & Beauty Domestic Care Ltd Hospital Services Ltd

Mary McKenna MBE, Founding Director of Kick Consulting was one of the keynote speakers at the event.

David Levin, a Social Media Writer & Consultant who has worked on BBC shows 'The Voice' and 'The Apprentice' provided top tips on how members can maximise the use of social media.

ICT Datactics EOS IT Solutions Mindmill (HR) Software Version 1 Web Solutions NI Legal Johns Elliot Solicitors Manufacturing NACCO Materials Handling Marketing & Public Relations Ginger Basket The Event-ful Consultancy Professional Services Ingenuity UK Minerva NI Retailing Agnew Group Transport Rhenus Logistics

Louise Rossington (Big Telly Company) and Charlotte Smith (Young at Art) pictured at the Creative Connections event.

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Brian Stewart (Ross Boyd Ltd) pictured at the Creative Connections event.

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#wellconnected

#WELLCONNECTED WITHâ&#x20AC;Ś GOVERNMENT

Ann McGregor, Chief Executive of NI Chamber; Katherine James, Head of Small Business at Danske Bank; Nick Coburn, Managing Director of Ulster Carpets and Enterprise Minister Arlene Foster pictured at the latest Danske Bank Export First event hosted by Ulster Carpets.

Enterprise Minister Arlene Foster openly engaged with 60 export-orientated businesses at the event with Ulster Carpets in Portadown.

Health Minister Edwin Poots pictured with BTâ&#x20AC;&#x2122;s Mark Hopkins and NI Chamber President Mark Nodder.

Health Minister Edwin Poots recently addressed over 40 NI Chamber members at an In Camera dinner sponsored by BT.

NI Chamber President Mark Nodder pictured with Minister David Ford and Minister Stephen Farry at the Alliance Party business breakfast in March. Ambition Magazine l 71

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#wellconnected

#WELLCONNECTED WITH… EXPORTERS

UPCOMING NI CHAMBER EVENTS CONNECTING FOR GROWTH WITH BANK OF IRELAND UK The next Connecting for Growth with Bank of Ireland UK event has been confirmed as a major crossborder networking event with guest speaker Jorge Lopes, Country Director NI, Diageo. Date: 21st May 2014 Time: 08:30-12:30 Venue: Ramada Plaza, Belfast

NI Chamber in partnership with Bank of Ireland UK hosted the first event in the Connecting for Growth series which was Meet The Buyer. Pictured are Philip Bain (ShredBank); Ann McGregor (NI Chamber); Manus Savage (Atlas Communications); Judith Scott (Bank of Ireland UK) and Fred Smyth (Bank of Ireland UK).

Pictured at the Meet The Buyer event are Ronnie McClean (Bracken Interiors / Healthcare) and Gary Brown from GRAHAM Asset Management.

GROWING SOMETHING BRILLIANT CONFERENCE A conference for exporter and growth orienated businesses. Keynote speaker Sean O’Driscoll, Group CEO, Glen Dimplex. Date: 28th May 2014 Time: 08:30-12:00 Venue: Titanic Belfast

NI CHAMBER AGM Notice is hereby given that the NI Chamber of Commerce AGM will take place on 30 May 2014 at 11.00am in the Fitzwilliam Hotel.

Connor Graham of construction company H&J Martin who were one of the twelve buyers at the event.

Fred Smyth, Regional Business Manager NI, Bank of Ireland UK joined Philip Bain of ShredBank and Manus Savage of Atlas Communications on a panel discussion at Meet The Buyer.

Date: 30th May 2014 Time: 11.00-12.00 Venue: Fitzwilliam Hotel, Belfast

NI CHAMBER ANNUAL LUNCH 2014 The NI Chamber of Commerce sports-themed Annual Lunch will take place at Belfast City Hall on 6 June 2014. Date: 6th June 2014 Time: 12:00-14:30 Venue: Belfast City Hall

Attendees at Meet The Buyer were able to network with fellow members during a speed networking session at the event.

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For further information and to book a place at any of the above events please visit www.northernirelandchamber.com

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[ADVERTISING PROFILE]

Ambition talks to Kerri Magee from We Are Vertigo What is your role within the company? Officially I am the Centre General Manager which as most managers will know is a catch all label that covers a multitude of tasks. What are the best and/or most challenging aspects of your role? The best aspect has got to be the genuine joy and excitement experienced by our customers – from large corporate groups, to families and youth groups. At We Are Vertigo we have had companies bringing their staff on what they expect to be a dull day of forced group activity and see them leaving invigorated and feeling appreciated by their employers. The diversity of groups using the centre makes ensuring a good experience for all visitors more of a challenge for me and my staff and but it keeps us fresh and motivated. For example last week we had two children with special needs visit us and they left having told me that I had made their dreams come true. Not many people outside of Disney have that happen in their working day. What does a typical day’s work involve? On an average day, if such a thing exists, I am up and out for 8am having made my daughter’s lunch and left her to the bus stop. I open up the centre, check my inbox and make a plan for the day. Once the rest of the team are in and safety checks are done we are ready for the public. I am constantly on the move around the centre for the rest of day speaking to staff, suppliers, customers and the company owner directors. With such a diverse offering it is essential that we have built a core team of staff in a short period of time across the adventure, ski and catering elements of the business. We are also very fortunate to have quickly established great links with contractors who continue to help us transform and develop what only eight months ago was an empty industrial unit. My role has developed as the business has grown and whilst I spend a lot of my day dealing with daily management issues, a key part of my job now, is liaising with our corporate

customers, giving them VIP tours of our facilities and then working closely with them to ensure delivery of the perfect event from a schedule of activities to the food and refreshments. Talk us through what to expect as a customer visiting We Are Vertigo for the first time. Customers approach We Are Vertigo through a quiet residential area, which has a small industrial estate at the end of a cul-de-sac. They approach a large unit not knowing what to expect. Once through the door you cannot help but be impressed as you are transported to a log cabin in the Alps. Step through our new gates, handcrafted by one of our very own ski instructors (at We Are Vertigo we are multi-talented) and you will find yourself next to the slopes. Stop at the coffee dock where if the smell of the Belgian waffles and coffee doesn’t tempt you, the Morelli’s ice-cream will. Refreshed you can meander past the ice climbing wall, look up to the high ropes, you never know who might be above you, on past the low ropes where some of our youngest visitors like to spend some time and you will end up in our very own Swiss village inspired soft play area. Children love the Swiss village with its waffle tower and fast slide, amongst other great fun activities and whilst adults aren’t allowed in they can sit down and relax over a tasty bite from the Lodge restaurant. To top off the We Are Vertigo experience, we also have a 100 foot zipline to get your pulses racing in our other building. Do you have a specific type of customer or do a variety of people visit We Are Vertigo? We knew that We Are Vertigo had the potential to appeal to a wide variety of customers but we are constantly amazed by the variety of people who visit each day.

We have a strong base of regulars who come to improve and build on their ski experience before they go on holidays or simply to keep fit. A number of local schools have also taken advantage of bringing groups to the slopes to build confidence and enable their pupils to get the most out of their ski trips. We host a large number of parties every week. Large corporate events where companies take over the centre for team building or just a fun day out using the adventure centre and ski slopes then finishing off with wholesome food from the Lodge. We can cater for all tastes from delicious finger foods and canapés to the full fine dining experience, all served in one of our private log cabin function rooms. Birthday parties are incredibly popular as we can cater for children from 1 to 81! The adventure centre is used by everyone from mother and toddler groups, youth clubs and organisations, schools to parents wanting a quiet fry while the kids have a run around. What differentiates We Are Vertigo from other activity centres? Diversity! Most activity centres focus on a small customer base but here at We Are Vertigo we wanted to create somewhere the whole family could have a good time. The ski slopes are only restricted by the requirement that you can fit into a ski boot, our oldest skier so far has been 82. Most activity centres leave older children bored or younger ones left out but we have areas and activities for all of ages from toddlers to teenagers and even have ones mum and dad can join in too. We recently hosted a first birthday party which the birthday boy loved and granny and granda had a ball on the zipline.

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[FACE TO FACE WITH....] PAUL MCBRIDE, CORPORATE GROUP PARTNER, PINSENT MASONS

SEAL THE DEAL THERE’S A SENSE OF A RECOVERING LOCAL M&A MARKET AND A GENERALLY MORE POSITIVE FEEL IN TRANSACTIONAL ACTIVITY PAUL MCBRIDE TELLS ADRIENNE MCGILL.

ergers and acquisitions (M&A) are hotting up again in Northern Ireland after several years on ice. Northern Ireland had its highest number of mergers and acquisitions and other corporate deals in a decade during 2013, according to a report by Experian published earlier this year. The corporate market witnessed 78 transactions worth £1.6bn throughout 2013. Data company Experian said the growth was largely down to a spike in activity in the last quarter of the year during which 30 transactions took place – another 10-year high – including big property transactions like the disposal of two Tesco Extra Stores in Newry and Craigavon by Turkington Holdings and the acquisition of Hilden Properties by British Land Company. There was also the deal by Texas-based infrastructure group ADC & Has Airports to buy a series of aviation assets from Abertis, including Belfast International Airport. Paul McBride, Partner in the Corporate Group of Pinsent Masons and Head of the legal firm’s Belfast office, who has advised in numerous significant mergers and acquisitions, says deals are on the up. “We are seeing a rebirth of transactional activity in Northern Ireland – whether that be mergers, acquisitions, management buy-outs, venture capital or private equity investments. There is certainly a lot going on.” Pinsent Masons advised Phoenix Gas on its sale to Hastings Managed Funding, Utilities Trust of Australia and Royal Bank of Scotland Group Pension Fund. At a value of around £600m, this was the largest corporate deal in Northern Ireland in 2013. “Phoenix acted as a good catalyst for international interest in Northern Ireland. I think

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this put Northern Ireland back on the global radar for investment funds and large international corporates believing that Northern Ireland was a place they could look at seriously for mergers and acquisitions,” says Paul. “It showed real confidence in the political and economic situation here and the regulatory regime and that there are good earnings and stable revenues to be found in Northern Ireland. “It sent a good message to international investors that Northern Ireland is back open for business. “In the previous three years, M&A activity in Northern Ireland plummeted because of an absence of credit and a loss of business confidence against the backdrop of falling consumer wealth and a construction industry that was on its knees. “Businesses, whether they were capable of M&A activity or not, took a cautious approach and said we will derisk and wait for a number of years until there is more stability.” Other deals Pinsent Masons have been involved in include Viridian Group’s bid for Bord Gais Energy, the acquisition of the 28MW Long Mountain wind farm, Co. Antrim from Platina Partners and the financing of the 10MW Thornog wind farm, Co. Tyrone by Norddeutsche LB. The firm also acted for QUBIS on its investment in ProAx-Sis, a leading medical diagnostic company and for Medicare on the £37m refinance of their pharmacy chain with Ulster Bank and Bank of Ireland. Paul says the trend is now back towards Northern Ireland businesses, which have been taken to a degree of maturity, being acquired by outside interests.

“I think this is a pattern which we are going to see increasingly, perhaps as traditional family owned businesses who survived the downturn ask themselves – do we want to take the risk again and possibly face another slump in the economy. They will want to look more strategically at their own future. “The deal volume is certainly less than it was between 2000 and 2008 and the values have also reduced to a reasonable extent. “But I think we are beginning to see that change and some of the multiples that are being applied are much healthier than they were 2-3 years ago. I think this will also act as a stimulus. Collectively it will create a growing sense of confidence.” Paul highlights the £176m takeover of scientific camera specialist Andor Technology in West Belfast by Oxford Instruments in England as an example to other firms of what can be achieved by companies which both began life as university spin-outs. However, he says there needs to be many more firms like Andor coming out of Northern Ireland. “We need to work out how we put Northern Ireland into the global market. We are seeing strong signs of improvement but we have a long way to go. “There are certain sectors such as manufacturing and pharmaceutical which are performing strongly and have a global reputation. They are capable of attracting continued investment here. “We see interest also coming from the private equity houses in Great Britain and the Republic of Ireland for investment opportunities here and I think we are likely to see a significant increase in transactional activity in the next 1224 months.”

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[NEWS]

BUSINESS BITES FROM BRUSSELS IN THE LATEST BULLETIN FROM THE EUROPEAN COMMISSION, MEASURES UNDER CONSIDERATION WILL HAVE REPERCUSSIONS FOR BUSINESSES, CONSUMERS AND THE GENERAL PUBLIC IN NORTHERN IRELAND. HERE WE DETAIL WHAT’S UNDER PROPOSAL IN BRUSSELS.

FEED INTO FEAD A Regulation for a new Fund for European Aid to the Most Deprived (FEAD) has recently been approved by the Council and the European Parliament. The Fund will give Member States valuable support in their efforts to help vulnerable people who have been worst affected by the ongoing economic and social crisis. In real terms, over €3.8 billion will be allocated to the Fund from 2014-2020. Member States will be responsible for paying 15 per cent of the costs of their national programmes, with the remaining 85 per cent coming from the Fund. The FEAD will support actions to provide a broad range of non-financial material assistance including food, clothing and other essential goods for personal use to the most materially-deprived people. The FEAD also combines the distribution of material assistance with social reintegration measures such as guidance and support to help the most deprived to get out of poverty. The Fund offers considerable flexibility to Member States who will be able to choose, according to their own situation and traditions, the type of assistance they wish to provide. l

ACTION PLAN ON ORGANICS

The European Commission has published proposals for a new Regulation on organic production and the labelling of organic products. Consumer and producer concerns are at the heart of this new proposal, which seeks to address shortcomings in the current system. The EU organic market has quadrupled in size over the last 10 years and rules need to be updated and adjusted so that the sector can further develop and respond to future challenges. The proposal focuses on three main objectives: maintaining consumer confidence, maintaining producer confidence and making it easier for farmers to switch to organics. The aim is that organic farming remains close to its principles and objectives, so that public demands in terms of environment and quality are met. To help organic farmers, producers and retailers adjust to the proposed policy changes and meet future challenges, the Commission has also approved an Action Plan on the future of Organic Production in Europe. The Plan aims to better inform farmers about rural development and EU farm policy initiatives which encourage organic farming, to strengthen links between EU research and innovation projects and organic production and to encourage the use of organic food. l

ROADMAP TO REVITALISE EUROPEAN ECONOMY The European Commission has adopted a package of measures to stimulate new ways of unlocking long-term financing and support Europe's return to sustainable economic growth. Significant long-term investment in infrastructure, new technologies and innovation, R&D and human capital will be needed under the Europe 2020 strategy and the 2030 climate and energy package. Investment needs for transport, energy and telecom infrastructure networks of EU importance alone are estimated at €1 trillion for the period up to 2020. Europe has always relied heavily on banks financing the real economy and the economic and financial crisis has affected the ability of the financial sector to channel funds to the real economy, in particular to longterm investment. The European Commission is acting to restore the conditions for sustainable growth and investment and in part that means finding new ways to channel funds to long-term investment. The package of measures includes a communication on the long-term financing of the economy, a legislative proposal for new rules for occupational pension funds and a communication on crowd funding. l

TTIP…TOP OF THE AGENDA In June 2013, EU Member States instructed the European Commission to start negotiating a free trade agreement with the United States called the Transatlantic Trade and Investment Partnership (TTIP). They also gave the Commission guidelines setting out what the negotiations should include. The governments stated that the EU should seek to include provisions on investment protection and investor-to-state dispute settlement (ISDS) in the proposed agreement. As part of its ongoing efforts to make its negotiations with the US the most open and transparent trade talks to date, the European Commission is consulting the public on a possible approach to investment protection and ISDS in the TTIP. The key issue on which the Commission is consulting is whether the EU's proposed approach for TTIP achieves the right balance between protecting investors and safeguarding the EU's right and ability to regulate in the public interest. The Commission will analyse the contributions with a view to taking them into account in the negotiation process. The consultation will run until 21 June 2014 and can be accessed at www.ec.europa.eu/trade/policy/in-focus/ttip/. l Ambition Magazine l 75

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Ulster Carpets Managing Director Nick Coburn.

CARPETS FLYING TO EXPORT MARKETS ULSTER CARPETS HAS THE WORLD AT ITS FEET AS ADRIENNE MCGILL HEARS FROM MANAGING DIRECTOR NICK COBURN.

lster Carpets, whose luxurious floor coverings adorn many of the world’s most famous hotels and casinos, has celebrated its 75th year in business by rolling out the largest investment in its history. The family-owned firm this month (May) begins a £30m modernisation and expansion programme at its Portadown base which will be spread over the next seven years. The investment will safeguard the existing 250 jobs

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at the site and potentially lead to the creation of more. The first phase of the investment will fund the building of a new dyehouse and energy centre at a cost of £6.5m providing state-ofthe-art dyeing equipment and significantly improving the energy efficiency of the site. Details of the expansion were revealed as Ulster Carpets played host to the Minister on the Move initiative organised by Northern

Ireland Chamber of Commerce and Industry which saw Enterprise Minister Arlene Foster join 60 local businesses at the Garvaghy Road factory to hear about the success of the company, which was crowned 2013 UK Exporter of the Year, in overseas markets. The occasion also marked the initial Danske Bank Export First event of the year. Managing Director Nick Coburn, who has led the firm since 2004, says the investment is

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The old weaving process in years gone by.

the result of a strategic decision made three years ago to keep Ulster Carpets’ manufacturing base in Portadown. “We are currently laid out in a very disparate fashion – the Castleisland facility used to be a linen mill. The plan is to streamline operations and have production going in the right sequence. We will start with the dyehouse, then move onto weaving, then to finishing and then to dispatch. “Unfortunately a lot of the buildings we have at the moment are not in great shape and that means maintenance costs. “We will completely demolish every building we have on this 13 acre site and rebuild and reequip. “The first phase involves the dyehouse – we bring the yarn over in white form from Yorkshire – so a dye has to be created for every colour and we have thousands of them. “We are also investing in a related energy centre because the dyehouse uses a huge amount of energy every day. “Our plans are ambitious but also very exciting and will carry the company well into the future.” Ulster Carpets is world- renowned as a manufacturer of high-end woven Axminster carpets with 500 rolls produced weekly at the Portadown facility. It is responsible for amazing creations with vibrant colours, intricate designs and luxurious textures which are testament to the quality of the craftsmanship for which the company has gained global acclaim. Prestigious installations include palaces, hotels, casinos and cruise ships. Amongst these are the Ritz, Gainsborough, Claridges and Savoy hotels in London, the Waldorf Astoria in New York, the Marriott in Riyadh, the Bellagio and MGM resort casinos in Las Vegas, and ships for Royal Caribbean International and Carnival Cruise Lines. The company has also made bespoke carpets for palaces owned by Saudi Arabia’s King Abdullah and the King Abdullah Convention Centre in Jeddah.

Photograph courtesy of Ulster Archive.

Photograph courtesy of SFA Design.

Founded in 1938 in Portadown by George Wilson, the late grand-uncle of Nick, the company is now in the third generation of the Wilson family and has grown to become a legendary name in top quality carpet manufacture for the contract and residential markets. “We have been successful for a number of reasons – most notably continual investment. The company has always reinvested in new machinery and new markets and placed a great emphasis on service and quality. However, it is the on-going commitment and endeavour of our employees which sets us apart from the competition,” says Nick. The company is currently enjoying a full order book with staff working flat out to meet contracts from customers across the globe, particularly in America, Europe and the Middle East. However, ten years ago the global economic downturn meant Ulster Carpets had to reinvent itself dramatically in order to survive in the face of intense overseas competition and the demise of the textile industry in the UK. This involved selling two divisions in South Africa and Australia and investing substantially in new technology. “We had to reinvent ourselves and turn into a bespoke carpet manufacturer, find export markets and learn what those markets wanted,” says Nick. “It has been a tough learning curve but we have competed on the world stage and come out on top. We have adapted to the change. “We have over the years been through trials and tribulations but for all the right commercial reasons we brought everything back to

“OUR LATEST INVESTMENT WILL SEE THE WEAVING TECHNOLOGY MOVE TO A DIFFERENT LEVEL.”

The Waldorf Astoria lobby with a Peacock design by Ulster Carpets.

Portadown and consolidated operations – so it is like going full circle back to our roots where we started 75 years ago. We still have a small company in Dewsbury, England which is important because it takes wool from the Bradford wool sales, spins it into yarn and then sends it across to us here.” The reinvention has paid off with Ulster Carpets’ most recent financial results showing profits of £5m on a turnover of £60m in the year to March 2013. Investment in research and development has been critical to the company’s success and has led to the invention of ground-breaking technology. Ulster Carpets’ own unique machinery – known as PSYLO – (Pre Selected Yarn Loading Operation), has enabled the company to translate high tech applications into carpet manufacturing. It has been developed by Group Technical Director Dr Richard Stewart who dedicated 10 years to the task of perfecting the technology. A total of 40 PSYLO looms have been developed by stripping down the traditional electronic Jacquard looms – at a cost of

Ambition Magazine l 77

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The ground-breaking Psylo loom technology has transformed production.

£500,000 each – and fitting them with high tech equipment. The reconfigured looms can make any length of pattern repeat in up to 30 colours as opposed to the 12 that the Jacquard looms could do. This allows Ulster Carpets to increase the volume and capability of carpet production and gives designers the freedom to use a mesmerising range of colours. “Our technology allows us to use a huge array of colours in a design. Most traditional machines are limited to 12 colours but we can go up to 30. Widely varied colours are most popular with our customers in the US. They have the largest spaces to fill and they absolutely love vibrant splashes of colour,” says Nick. “In addition to the colours, the technology allows us to put different textures into a carpet – so you may have five reds going from one shade to another in a very subtle combination and formation. It is that use of colour that has expanded the market for us and the fact that nobody else can do it because we have the worldwide patents on the machines which prevents anybody from copying the technology. “Axminster weaving tends to be very labour intensive, old and slow but our technology allows us to be much more efficient in the use of labour. In China you have, perhaps, two weavers to one loom but here we have one weaver to four looms so it gives us that productivity enhancement. “Our R&D people are already working on the next generation of PSYLO and that is very exciting. “Our latest investment will see the weaving technology move to a different level. It is not just the mechanical operation but there are a lot

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of electronics and software involved. It is very challenging but will make us more efficient. “We feel we are in a very strong position and we should use that strength to expand further.” The company employs around 35 top designers worldwide to come up with eyecatching designs and colours. “The key for us is to work with designers who are based in the major markets we deal with such as Paris, London, New York, Atlanta, and Las Vegas. It means they are on hand to interpret what is required from the customer. “A customer will come and say here is a blank sheet – we have a theme – will you interpret that for us? Our designers have a really tricky task of getting into the head of the client. In addition to the designer, the hotel owner or operator may have an input. “The designer has to understand a concept and then turn that into art on the floor. Our job is to help the hotel operator or owner add value to a space. It is the very top end of the market – whether it is a hotel bedroom, foyer, function room or ballroom so our carpets have to be commensurate with a luxurious feel.” While all of its main UK competitors have either moved to cheaper locations in Asia or Eastern Europe, Ulster Carpets has remained committed to manufacturing in Northern Ireland with a focus on export markets which account for 70 per cent of its business. Exports over the past 12 months have increased by 30 per cent resulting in an additional 40 jobs being created at the Portadown site. However, competition from overseas still poses a challenge.

“We are more expensive in terms of making the carpet and the selling price. We are always going to be 25 per cent higher than the Chinese. Allied to that, we are still coming out of a long recession. The challenges are about competing and winning on the global stage. The most serious threat is from Asia - they are very ambitious and they learn very fast. Around 20 years ago there were 42 companies in the UK manufacturing the carpet we are making and now there are only three or four. In terms of woven carpet, we are in the top five per cent of manufacturers in the world. “The fact we have decided to spend £30m is a huge vote of confidence in the future. It would be very tempting to say we are in a traditional industry which is highly competitive and like so much of industry in the UK need to head East to survive. But we know that in Portadown we have the best workforce, the best productivity and the best service to the market – and that can’t be found anywhere else.” Nick says what makes Ulster Carpets stand out is that it does what other manufacturers either don’t want to do or can’t do and that can mean meeting some quirky requests. “We have been involved in some very interesting contracts. One customer wanted a self-portrait on the carpet while another wanted the New York Times newspaper printed in the 1940s to feature as the design. “We will do what anybody wants. It is a great part of the service. Our carpets are interesting and enjoyable and those are elements which are central to the company’s ethos.”

Boost your connection to boost your business. The Belfast Connection Vouchers Scheme can provide up to £3,000 to cover the installation cost of the high speed broadband. Apply now and enjoy the benefits of: • Efficiencies and savings • Business growth in local and international markets • Improved data storage and accessibility

• Extra reliability and faster speeds • Flexibility and scalability • Improved communications with customers, suppliers, partners and staff

The Belfast Connection Vouchers Scheme is open to individual businesses, charities and social enterprises within the current and future Belfast City Council boundary. To find out more about the Belfast Connection Vouchers Scheme, and to apply, visit: www.belfastcity.gov.uk/connectionvouchers

www.belfastcity.gov.uk/connectionvouchers 6392-Super Connected Advert Ambition.indd 1

30/04/2014 10:49

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[FEATURE]

MUMS WITH POWER LYNSEY MALLON IS A PARTNER IN LEADING COMMERCIAL LAW FIRM ARTHUR COX. SHE IS MARRIED TO SEAMUS, WHO IS A TEACHER IN LISBURN. THE COUPLE HAVE A FOUR-YEAROLD DAUGHTER, NYLA. LYNSEY LIVES AND WORKS IN BELFAST.

DESCRIBE YOUR JOB

I joined Arthur Cox as an associate in 2007 upon returning from England and was made a partner in the firm in 2011 within the Corporate/ Commercial Group. I handle a broad range of corporate finance, corporate and commercial work on behalf of both domestic and international clients. Working for Ireland’s top commercial law firm, I act for well-known household brands as well as Northern Irish companies and get great job satisfaction from seeing our indigenous clients achieve success and recognition both locally but also on the international stage. Our prominence in the market place was recently recognised by winning Legal 500 Northern Ireland Corporate Law Firm of the Year. WHAT IS YOUR FAVOURITE PART OF THE DAY?

I think it is extremely important to have a positive outlook on life and for that reason I look forward to every part of my day in equal measure. If I was pushed I would probably say that my favourite time of day is morning - I try to get up at 5.45am every morning and go for a run before my daughter wakes up. I use that time to plan and by the time I get home I feel invigorated and ready for the day ahead.

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WHAT DO YOU DO TO ENSURE A WORK/LIFE BALANCE?

I have always worked full-time and I tend not to focus too much on trying to achieve that elusive ‘perfect’ balance. If you do everything to the best of your ability within your own personal circumstances then there is not much more that anyone can ask of you. I always drop my daughter Nyla to pre-school in the mornings so that I can relate to her stories about her friends and her day there, which I think is important, and I always try to ensure that I am home early enough in the evenings to spend time with her before bedtime. That might mean that I start working again when she goes to bed but I actually find I get a lot done in those hours. I am also incredibly lucky that I have a fabulous support system both at home in terms of my husband and parents and also in Arthur Cox in terms of my colleagues. HOW HAS HAVING CHILDREN IMPACTED YOUR PERSONAL AND WORKING LIFE?

My husband and I eat in more often than we used to which is no bad thing and I definitely have a lot more wrinkles due to less sleep! I think that you become better focused on the important things in life and I have learned to prioritise my time so that when I am at home Nyla gets my full attention. In terms of work

“If you do everything to the best of your ability within your own personal circumstances then there is not much more that anyone can ask of you.”

not much has changed – I might work a bit more flexibly than I did before, and of course there is always the odd bit of drama such as receiving a call in the middle of a meeting to inform me that Nyla had stuck a pink fluffy pom-pom up her nose at nursery and could I collect her and take her to A&E! ARE WORKING MUMS IN GREATER NEED OF STATE SUPPORT THAN STAY-AT-HOME MUMS?

I think that all mothers work hard and that every mother’s choice should be respected and supported in whatever way we can. DO YOU THINK YOU WILL ALWAYS REMAIN IN EMPLOYMENT?

Yes – definitely. My mother worked throughout my childhood and I think that instilled a very strong work ethic and sense of independence in me. I would like to set the same positive example for my daughter!

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[ADVERTISING FEATURE]

MAGNIFICENT APPEAL

Belfast Waterfront may have been hitting the headlines recently for staging many of the city’s high profile international events, but together with the iconic Ulster Hall, the venue continues to be just as popular with local organisations. Year on year, the events calendar for The Ulster Hall is busy with a mix of gala dinners, award presentations and drinks receptions for

up to 1000 delegates, as companies treat their clients to the elegant Grand Hall with the Mulholland Grand Organ, as a truly dramatic backdrop. The former Group Theatre seats up to 100 and is the preferred choice for an intimate wedding ceremony or reception or a private art exhibition. In comparison, Northern Ireland’s only

purpose built conference centre stages any event from 10 to 2,000+ delegates. Its glassfronted spaces are hugely popular for a pre-event drinks reception or banqueting, leaving guests suitably impressed with spectacular city views and fine dining. Clients are spoilt for choice with 14 fully equipped rooms perfect for corporate meetings and break out sessions. And the centre is set to get even bigger with the opening of an extension boasting an additional 4,000m2 of flexible space in 2016. No matter which venue you choose, you and your delegates will be guaranteed a truly memorable time. For more information on both venues contact the Belfast Waterfront and Ulster Hall sales team. Telephone: 028 9033 4400. Email: conference@belfastcity.gov.uk

PROFESSIONAL EXPERTISE Innov8 Office Interiors’ professional Space Planning & 3D Design is a major benefit to Belfast’s leading business centre. “Scottish Provident Building’s purpose is to deliver exclusive, fully serviced, premium offices for high end business clients in the centre of Belfast City Centre. We have worked with Innov8 Office Interiors from the outset and they have been instrumental in achieving clear set goals inline with our vision. We have enjoyed the expert advice, coordination and procurement that Innov8

bring. We pride ourselves on the flexibility we offer within our building and we find Innov8’s professional space planning and 3D design service to be a major benefit when advising our clients on the possibilities that best suit their needs, providing the visual reference that ensures we get it right first time.” Colin Rimmer, Scottish Provident Building. Website: www.innov8officeinteriors.com

TERMS & CONDITIONS

A TRADITION OF GIVING Age NI are one of the beneficiaries of Belfast International Airport’s (BIA) charity fund which gives donations to local charities and projects. BIA’s Deborah Harris said: “Age NI are an inspirational charity and Belfast International Airport is delighted to be able to support them in the work they do.” Maeve Egerton, Age NI Trust and Corporate Relations Manager, said: “I’d like to thank Belfast International Airport for supporting the important work that Age NI does locally for many older people in NI including our day centres which provide great opportunities for fun and friendship as well as a good natter over a

cuppa! – especially for those who may experience loneliness and isolation in later life.” For more information please contact Deborah Harris on 028 9448 4035

Opinions expressed in Ulster Tatler Group publications are those of the individual contributors and do not necessarily represent the views of the publishers. NI Chamber of Commerce and Industry and Ulster Tatler Group do not accept responsibility for the views of the correspondents or contributors. Whilst every effort has been made to ensure that all the material within is accurate at the time of going to press, Ulster Tatler Group cannot be responsible for mistakes arising from clerical or printing errors. Advertisements for Ulster Tatler Group publications are accepted only on condition that the advertiser warrants that the advertisement does not in any way contravene the provisions of the Copyright Text and Advertising Trade Descriptions Act 1968. Where advertisements and art work have been specially designed for Ulster Tatler Group, copyright is strictly reserved. The entire contents of the magazine, articles, photographs and advertisements, are the copyright © of NI Chamber of Commerce and Industry and Ulster Tatler Group, and may not be reproduced in any form without written consent from the publishers. The publishers will institute proceedings in respect of any infringement of copyright. Please note that whilst every effort is made to ensure that any submitted items which you wish returned are sent back in the condition in which they were received, Ulster Tatler Group cannot accept responsibility for any loss or damage. All items submitted are at the owner’s own risk. Manuscripts and photographs/illustrations submitted should be accompanied by a stamped addressed envelope. If possible do not send original or irreplaceable material - to avoid disappointment please send copies only. The Publishers - Ulster Tatler Group - reserve the right to reject any advertisement submitted.

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[APPOINTMENTS]

International law firm Pinsent Masons has announced the promotion of 3 new partners to its Northern Ireland operation, amongst 15 new partnerships globally. The new Belfast partners are Laura Gillespie (Litigation & Regulatory), Richard Murphy (Energy and Natural Resources) and Paul Gillen (Employment), pictured with Paul McBride (3rd from left), Head of Office, Belfast in front of the new Soloist Building, which the firm is relocating to in the near future.

NEW APPOINTMENTS

Kieran McGaughey has been appointed by Cleaver Fulton Rankin to the position of Paralegal in the Property Department.

Claire Trainor has been appointed by Mammoth to the position of Business and Marketing Director.

Ursula Murphy has been appointed by Massive PR to the position of Senior Account Manager.

Eimear Linden has been appointed by Osborne King to the position of graduate surveyor within the companyâ&#x20AC;&#x2122;s Property Management team.

OUR PEOPLE ARE YOUR PEOPLE www.graftonrecruitment.com

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GAME OF OFFICE THRONES POWER HAS SHIFTED IN THE JOBS MARKET AS SINEAD WALLACE, GRAFTON COMMERCIAL DIRECTOR FOR IRELAND, EXPLAINS.

Game of Thrones has commenced series four, and the power games are continuing between the multiple and strangely named protagonists. As in almost all stories, where the power lies is at the core of the action – and in life too. But power shifts. It moves with the change in the economy, the age profile of the population, the demographics of the workforce, and the opportunities that exist for employment. Currently the ones sitting in the big chair are the potential employees. Skilled trained people are able to choose from a number of positions in companies, local, national and international that are based in Northern Ireland and want to succeed here.

Graham Patterson has been appointed by Osborne King to the position of graduate surveyor within the company’s Asset Recovery department.

Where once the king was the employer, the growth in new technology, innovation and the creative industries has meant that there are more jobs for people in these sectors than people for jobs.

Northern Ireland or Australia, New York or Argentina. They can work full time or on a contract, they can go for several interviews and see who they like best – both as people and companies.

The problem is that the king is sitting on his throne at the seafront trying to hold back the waves. The employer too often thinks that it should be gratitude instead of financial reward that drives someone to take a job. That the potential employees will be happy with a simple interview, no feedback, low pay and confused contractual arrangements.

So the workplace has changed for those seeking skilled and talented workers and the employer needs to change too. The culture of the company, the tone of the interview, the levels of pay, the added value of working in a place that treats you well when you need it.

The power has shifted. The young people coming into the workplace, trained in IT, management, marketing and more have choices. They can stay here or go there, in

Lisa Murphy has been appointed by Osborne King to the position of graduate surveyor within the firm’s Professional Services department.

Darren Marley has been appointed by Tughans to the position of Associate Solicitor in the firm’s Corporate Department.

The idea of the throne has to change too. The chairs should be the same on both sides of the desk, and recognition that each person, employer and employee, adds value to the business is a good place to start.

Christine Adams has been appointed by Tughans to the position of Director of Marketing and Business Development.

OUR PEOPLE ARE YOUR PEOPLE www.graftonrecruitment.com

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[COLUMNIST] MAUREEN O’REILLY, NI BASED INDEPENDENT ECONOMIST

A WATC O

nly one explicit policy reference was made to Northern Ireland in the Chancellor’s 2014 Budget. That was the announcement of the creation of a pilot enterprise zone (EZ) adjacent to the University of Ulster’s Campus at Coleraine. Businesses locating in the Coleraine EZ will be eligible for 100 per cent ‘enhanced’ first year capital allowances for plant and machinery investment until March 2020. The Coleraine EZ also benefits from being located close to where the Project Kelvin transatlantic high-speed communications cable, providing the first direct telecoms link with North America and improved connectivity to mainland Europe, comes ashore. Global data centre development and consulting firm 5Nines has already announced plans to set up a £20 million facility in the Zone creating around 15 new jobs. The data centre will be Northern Ireland’s first independent commercial data centre and the company described it a ‘phase one’ of a ‘minimum four-phase plan’ for the region. The expectation is that this may lead to a cluster of similar data centres and related projects in the Coleraine EZ area. Northern Ireland is behind England and the other devolved administrations in the introduction of EZs. The first announcement was made in Budget 2011 with the

Canary Wharf in London was Britain’s first Enterprise Zone.

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establishment of 21 new EZs in England in local enterprise partnership (LEP) areas, geographically based partnerships between the English local authorities and business focused on local economic development. There are now 24 EZs in England, 7 in Wales and 4 enterprise areas in Scotland. The EZs are largely area based with some form of sectoral focus although Scotland has taken a more thematic approach by selecting four enterprise sectors (Life Sciences, Low Carbon/ Renewables North, Low Carbon/Renewable East and General Manufacturing/growth) located across 15 strategic sites in the region. The incentives that are on offer across all EZs largely centre on business rates relief, simplified planning systems, superfast broadband and enhanced capital allowances, some of which are already on offer in Northern Ireland. Each EZ also plays to its strengths/comparative advantage, for example, the location of the North Eastern EZ near a number of seaports or the Great Yarmouth and Lowescroft EZ’s designation as one of six national Centres for Offshore Renewable Engineering. More ad hoc incentives include access to business development, skills training and finance. Two further announcements have been made by national government around the development of EZs in England. This has included the creation of the Enterprise Zones Capital Grant Fund in October 2013, a £100m fund for

English EZs to accelerate their development. Also in December 2013, the Department for Business Innovation and Skills (BIS) announced a Treasury funded £15m pilot scheme to create three to four University Enterprise Zones in England to encourage clusters of high-tech firms to locate near to or engage with universities and encourage universities to cooperate with local businesses and LEPs around innovation and local economic growth. This current EZ policy does to some extent revisit the EZs of the 1980s introduced under the Thatcher government. In total 38 EZs were designated between 1981 and 1996 across the UK, generally in areas of economic decline. Two of these were located in Northern Ireland in Belfast and Derry. The policy did have some notable success in the regeneration of areas such as Canary Wharf in London – the location of Britain’s first EZ – and Salford, but the general view was that there was limited success in job creation and significant displacement as businesses simply relocated into EZs to take advantage of concessions including tax allowances and

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HING

ENTERPRISE ZONES HAVE BEEN SPRINGING UP INCREASINGLY IN PARTS OF THE UK IN RECENT YEARS AND NOW ONE IS DESTINED FOR NORTHERN IRELAND. MAUREEN O’REILLY LOOKS AT THESE SPECIAL AREAS THAT SUPPORT NEW AND EXPANDING BUSINESSES BY OFFERING INCENTIVES.

BRIEF! business rates exemptions. The EZs of the 80s and 90s were also viewed as very expensive to deliver, created in areas that offered only limited chance of long-term success and were more successful in urban and more accessible zones. While it is too early to say much about impact, Budget 2014 stated that the current English EZs had to date created 7,500 jobs and attracted £1.2bn in private investment. In his Budget speech, George Osborne stated that “Many of the enterprise zones we created are now flourishing” and announced the extension of business rates discounts and

enhanced capital allowances for a further three years. However, even in these early stages, the policy has not been without criticism. The National Audit Office (NAO), in a report entitled ‘Funding and structure for local economic growth’ (December 2013) highlighted that the English EZs faced considerable challenges in meeting the job creation expectations originally anticipated (54,000 jobs by 2015) and working through the complexity of the working relationships in delivering the EZs objectives on the ground. Other critics of the policy suggest that the current EZs should focus more on employment and skills support to increase productivity (as opposed to capital infrastructure) and that they should be larger in order to avoid competition within local areas. The issue of size in terms of an EZ or EZs within Northern Ireland has been the subject of some debate. NI Chamber asked members for their views in its Quarterly Economic Survey for the second quarter of

2013. The majority (46%) thought that the entire region of Northern Ireland should be designated as one EZ. Thirty per cent believed that a number of EZs should be created while one in five members were unsure as to how it should be geographically defined. At that point concerns were expressed about the creation of inequality particularly in excluding more rural parts of Northern Ireland from the policy. The local reaction to the Budget announcement has been a largely positive one in welcoming the creation of the Coleraine EZ but also in requesting that more EZs are created quickly. The fact that Coleraine has been referred to as a ‘pilot’ might have implications for the speed with which any further EZ announcements are made here. However, given that this may impact on business location and investment decisions some clarity on the way forward would be most helpful.

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[NEWS]

Etihad’s Pearl Business class is a luxurious way to fly.

TAKE OFF FOR INCREASE IN FLIGHTS Linda Robinson (centre), the newly appointed Age NI Chief Executive pictured at recent 100th birthday celebrations for Violet Livingstone, a client at Age NI’s Day Centre in the Skainos Building, Belfast with family member Joan Livingstone.

NEW CHIEF EXECUTIVE FOR AGE NI The Board of Trustees of NI Chamber’s Charity of the Year, Age NI, has appointed Linda Robinson as the charity’s new Chief Executive. Commenting on the appointment, Eileen Mullan, Chair of Age NI, said: ‘”The Age NI Board of Trustees is delighted to welcome Linda as its Chief Executive. With over 25 years experience delivering best-practice services for older people, Linda has exceptional knowledge and understanding of the challenges and opportunities facing our ageing population. Linda’s role will be to lead the next phase in the evolution of the charity’s services and commercial activities to enable more people to love later life.” Linda said she was delighted to have been appointed to the role of Chief Executive. She added: “As we grow older we face new challenges. We still want to laugh, love and be needed. We want to stay independent and keep doing the things we love. We all want a fulfilling later life. I am looking forward to working with the Age NI team to achieve our vision of a world where everyone can love later life.”

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Etihad Airways, the national airline of the United Arab Emirates, recently announced that it will increase its Abu Dhabi - Dublin service from ten flights per week, to double daily from 15 July 2014. The frequency boost of 40 per cent will provide 8,988 seats each week between the capital cities of the UAE and Ireland. The schedule for the double daily flights will ensure connectivity both ways with 800 weekly connections to 45 Etihad Airways destinations in the Middle East, Africa and Asia, including Bangkok, Beijing, Brisbane, Jakarta, Kuala Lumpur, Manila, Melbourne, Singapore, Sydney and Tokyo. Since launching flights to Dublin in 2007, Etihad Airways has flown nearly 1.2 million passengers on the route which regularly features on the airline’s top 10 most popular. 2013 was the busiest year to date with more than 240,000 passengers flying on the route. On the same date as the Dublin double daily flights begin, Etihad Airways will introduce another new route to their extensive network. The airline will offer seven weekly flights from Dublin to Perth with seamless connections at its Abu Dhabi hub. Approximately 32 per cent of

all Irish visitors are choosing Perth as their gateway to Australia and this summer that access will be made easier. The new service is also expected to appeal strongly to Western Australians who wish to visit Ireland and Etihad Airways will work with the team at Tourism Ireland to develop this opportunity. For the busy business traveller, the Etihad Airways Premium lounge provides a state-of-the-art “Business Centre” offering Mac workstations with broadband access and printer facilities, along with free WiFi. Irish guests who upgrade from Coral Economy class to Pearl Business class may enjoy the complimentary door-to-door Etihad Airways Chauffeur service before relaxing at the exclusive Premium lounge at Dublin Airport. The Pearl Business class cabin features staggered seating for a more private experience. Throughout your journey, you will be spoiled for choice from a dine-on-demand service which is overseen by our dedicated onboard Food & Beverage Managers; to over 650 hours of entertainment-on-demand, with world class movies, TV shows, music and games on your very own 15.4” screen. For more information, please visit: www.etihad.com

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by James Stinson

Supported by

www.agnewcorporate.com

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[LIFESTYLE] JAMES STINSON, BUSINESS CLASS MOTORING WRITER

THIS C-CLASS ACT JUST GOT A LOT BETTER BIGGER, LIGHTER AND MORE ECONOMICAL THAN ITS PREDECESSOR, THE NEW MERCEDES C-CLASS WILL TURN HEADS TOO, WRITES JAMES STINSON.

or years, there’s been a problem with entry level German executive cars – BMW’s 3 Series, Audi’s A4, and the Mercedes C-Class. Because while you are entitled to feel a little smug at having reached a point in your career where you can have one of these £25,000 plus saloons in your driveway, there’s always someone out there driving a better and considerably more expensive BMW, Audi or Mercedes. The C-Class especially has, despite its price tag, always looked and felt a bit more mass market than it should. The 2007 model, with its more rakish looks was a step in the right direction and this all-new version is another leap forward. Visually, it shows a clear family resemblance to the latest S-class and recently revised E-class. Mercedes has reduced the overhangs, raised the beltline, and added sculpted, flowing lines and surfaces that taper back to give a more classic profile. The overall result is a more modern-looking car that Mercedes hopes will appeal to a much younger audience without alienating the more traditional C-class buyer. It’s also a practical motor. Longer than the current model by 95mm and wider by 40mm, it offers more room for rear passengers. Despite the extra size, the new car weighs up to 100kg less than the existing one and has a lower centre of gravity, which should aid cornering ability. From launch, there will be a choice of two engines - a 184bhp petrol motor in the 2.0litre C 200 and a 170bhp 2.2-litre diesel in the C220 BlueTEC, each available with a choice of six-speed manual or seven-speed automatic gearboxes. A further three engine variants – the C 200 BlueTEC (expected to deliver sub 100g/km CO2 figures), a C 250 BlueTEC and C 300 BlueTEC HYBRID - will follow later in the year. All models allow you to choose between

Comfort, Eco, Sport, Sport+ modes. Eco mode does what it says, lowering the shift point of the gear changes, softening the throttle response and even reducing power to the heated seats and the air conditioning to focus on economy. Conversely, Sport mode will sharpen the throttle response as well as firming up the suspension on cars equipped with the optional AIRMATIC system. Inside the cabin, standard equipment includes a seven inch colour display with touchpad control, artico upholstery, two-zone air conditioning and a media interface located in the central storage between the front seats. A reversing camera, rain sensing wipers, drowsiness detection, cruise control, heated windscreen wiper washers, and a collision prevention system also appears on all models. The range is simple, comprising SE, Sport and the AMG Line. Among the

equipment highlights, the Sport model adds 17-inch alloy wheels (up from 16-inch on the SE), LED headlights, lowered comfort suspension, chrome exterior trim and Garmin Map Pilot Navigation. The AMG Line adds 18-inch AMG wheels, AMG bodystyling and steering wheel, sports suspension and an Artico finish to the upper dashboard. Special option packs are also available Executive, Premium, and Premium Plus - that add everything from a panoramic glass sunroof to a 590W Burmester Surround Sound System. In time, the line-up that will extend to include estate, coupé and AMG variants as well as a new cabriolet version and 4Matic all-wheel-drive models. The new C-Class has the looks and all the kit. What’s not to like? Prices start from £26,855 with the first new cars set to be delivered to customers in June.

T The he c complete omplete ffleet leet ssolution olutio 18 B 18 Boucher ou c h e r W Way, ay, B Belfast el fa s t B BT12 T1 2 6 6RE RE 028 0 28 9038 9038 6600 6600 www.agnewcorporate.com w w w.agnewcorporate.com 88 l Ambition Magazine

2014 Hot 0ffers Contact us on 028 9038 6600

Mercedes-Benz E-Class range from £299 + VAT per month • Was £349 +VAT per month • Based on E220CDi SE 4dr Manual • CO2 from 120g/km • Other Models available inc. Estate • Fully Maintained Contracts also available

Seat Leon range from £189 + VAT per month • Was £219 +VAT per month • Based on Leon Hatch 1.6TDi SE 5dr Manual • CO2 from 99g/km • Other Models available inc. Sport Coupe & Estate • Fully Maintained Contracts also available

Skoda Octavia from £189 + VAT per month • Was £249 +VAT per month • Based on Octavia Hatch 2.0TDI 150 SE 5dr • CO2 from 106g/km • Includes Metallic Paint • Fully Maintained Contracts also available

Vauxhall Vivaro 2.0CDTi 115ps Sportive Van from £199 + VAT per month • Was £239 +VAT per month • Based on high spec Sportive model • Includes Plylining • Fully Maintained Contracts also available

Quotations available on specific requirements to suit your needs – for Personal Contract Hire just add VAT.

Are you a Fleet Manager looking for Total Fleet Control? Let us introduce Agnew Fleet Manager…. A system that will streamline the administration of your fleet to the absolute minimum, eliminate paperwork and automatically help you to fulfil your duty of care as an employer. Ultimately, it will save you not only time but money – contact us today to learn more. All rentals are plus VAT at 20% and are based on Agnew Corporate Contract Hire (not funded through a Manufacturer Scheme), payment profile of 3+47 (48mth term) with RFL for term of Contract, 10000 miles per annum non maintained. Subject to availability, terms and conditions apply. Pictures are for indicative purposes only. Join us on Facebook.

18 Boucher Way, Belfast BT12 6RE 028 9038 6600 www.agnewcorporate.com

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[LIFESTYLE] JAMES STINSON, BUSINESS CLASS MOTORING WRITER

AT LAST, A HYBRID WITH LEX APPEAL

It’s a sign of how far hybrid technology has come in just a few years that we now have snappy hybrid saloons like this new Lexus IS300h and even hybrid Formula One cars. Where once hybrids were awkward, slow and unexciting manufacturers, and Lexus especially, have managed to refine the technology where it no longer feels much different to a conventional petrol car. The marriage of battery and engine power is now quite seamless, which means the benefits of hybrid technology (low emissions and higher MPG) can be rolled out to something more than family runarounds. The Lexus IS300h is one of the most exciting hybrids yet. It uses a 2.5-litre engine, which is tuned to work best at medium revs, with the electric motor filling in the gaps. Acceleration is adequate, with a 062mph time of 8.3 seconds and a

limited top speed of 125mph. Crucially, the IS300h slips beneath the magic 100g/km CO2 line, at least the narrow-tyred base version does, and so company car tax is super-cheap. This F-Sport version sits on broader rear tyres, but even so it manages a meagre 109g/km CO2 emissions. The car is up against the trio of German 2-litre diesels in the Audi A4, BMW 3-Series, and new Mercedes C-Class so it’s got its work cut out but there’s nothing to suggest it isn’t a credible alternative. The IS steers as precisely and as sharply as any of the opposition, especially the F-Sport version, which has a slightly stiffened chassis. The ride's good too. It’s a nice looking car inside and out and feels sold and comfortable. It’s more complicated than a diesel only motor and overall running costs probably won’t be much cheaper but it’s different, quirky and ingenious and it’s not German, and for many Lexus buyers that’s the clincher. Prices start at just under £30,000 for the entry level SE, with the FSport version costing £3,500 more.

MORE FRILLS, LOWER BILLS WITH NEW EXECUTIVE PASSATS VW is giving customers lots more standard equipment for less money as part of a shake-up of the Passat range.The Highline, Sport and R-Line trim levels have been discontinued, to be replaced by the Executive and the Executive Style, which sit above the entry level S model. The Passat S already has DAB digital radio, Bluetooth connectivity, a USB port and an iPhone cable. The Executive adds 17" alloy wheels, touchscreen satellite navigation, cruise control, leather upholstery, heated front seats with electric adjustment for the one on the driver's side, dual-zone climate control air-conditioning, automatic headlights and wipers, an auto-dimming interior mirror and parking sensors at the front and rear. The Executive therefore has £1700 worth of extra equipment over the Highline but costs only £200 more, with prices starting at £22,545.

For an extra £995 you can have the Executive Style, which has 18" wheels, sports suspension (lowering the ride height by 15mm), bi-xenon headlights, front foglights and tinted rear glass. Both versions come with a choice of a 158bhp 1.4-litre TSI petrol engine or 1.6- and two-litre TDI diesels producing 104bhp and 175bhp respectively. DSG semi-automatic transmission is available for an extra £1500 on the 1.4 TSI. There's also a choice of saloon and estate body styles in every case.

BMW CREATES ANOTHER NICHE FOR ITSELF BMW is releasing a coupe version of its compact X3 crossover, called the X4. Slightly longer and lower than the X3, the design echoes that of the larger X6. The sloping rear means the luggage space is inevitably compromised at 500 litres with the rear seats in place and 1400 litres when they're folded down, compared with 550 and 1600 litres respectively for the X3. From launch, the X4 will be available with four-wheel drive and a choice of three turbo

diesel engines, producing 187bhp in the xDrive20d, 254bhp in the xDrive30d and 309bhp in the xDrive35d. There are also three trim levels. SE includes 18" alloy wheels, a powered tailgate, xenon headlights, heated front seats and front and rear Park Distance Control. xLine models get a different wheel design, sports

seats, leather upholstery and various interior and exterior styling upgrades, while M Sport offers 19" wheels, an aerodynamic bodykit and sports suspension. Prices start at at £36,950 for the xDrive20d SE and reach £48,990 for the xDrive35d M Sport.

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[AMBITION PROMOTION]

Understand Your Fleet Costs David McEwen, Business Development Manager at Agnew Corporate.

At Agnew Corporate they fully understand that decisions about company vehicle choice are critical and can in some cases take up more time than they should. Most company managers now understand that the cheapest monthly costs do not always necessarily deliver the best value over time. Agnew Corporate help their customers understand this by helping to define the true vehicle whole life costs. There are many various definitions of exactly how whole life costs are calculated but Agnew Corporate use the Deloitte Cartax analysis software, which not only accounts for the basic vehicle data but also details the impact of the tax position for both the company and driver. It also allows them to accurately compare the available funding methods and the true time value of money costs, something some other cost analysis methods do not always account for. Agnew Corporate find that this analysis really helps when they assist their customers with vehicle choice lists and bandings. Indeed they have many customers who now use whole life cost bandings rather than simple monthly lease limits to determine car selection. While most drivers do have an understanding that the lower the CO2 their car has the less BIK they will pay, many do not know how their choices affect their net monthly salary. This also applies to whether companies should continue to offer free fuel and whether it would be mutually beneficial to both company and driver to remove this. Agnew Corporate can illustrate and accurately model the implications of these choices in order for you to reduce your overall fleet costs.

As the focus on CO2 continues to grow Agnew Corporate can help future proof your company car policy and assist with issues like; Should we offer a diesel only policy? Are rental bandings cost effective? Should we allow drivers to trade up to a better car and if so how much should they pay? In practice, Agnew Corporate find that companies can benefit from full analysis of their fleet and company car policies even for relatively small fleets. In most cases company car policies have tended to evolve over time and it is always good to take advantage of objective advice which can lead to overall cost savings. At Agnew Corporate they continue to offer competitive contact hire and funding solutions along with their market leading fleet management software. Please contact David McEwen, Business Development Manager at Agnew Corporate for a free comprehensive fleet review and demonstration of the Deloitte software. Tel 028 9038 6600 or david.mcewen@agnews.co.uk

The Delloitte Car Selector software allows Agnew Corporate to help their customers easily compare whole life costs across all makes and models

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[LIFESTYLE] JAMES STINSON, TRAVEL WRITER BEST VALU CITY BREAKE DESTINATION S Budapest Vilnius Warsaw Prague Lisbon Riga Talinn Dubrovnik Istanbul Brussels

Budapest remains the best value for bargain hunters.

CITIES THAT WON’T BREAK THE BANK SOME HOLIDAY DESTINATIONS REALLY ARE CHEAP AS CHIPS AS LONG AS YOU KNOW WHERE TO GO, WRITES JAMES STINSON.

f you are planning a city break this power since last year, you’ll find your pound goes spring has helped “THE VERY a lot further in Prague than it make tourist costs FACT THAT does in Paris or Amsterdam. cheaper in 80 per Cities like Prague and Budapest cent of the cities FEWER have fallen off the tourism radar in surveyed. The TOURISTS ARE recent years but the very fact that biggest drop is in GOING MEANS fewer tourists are going means they Copenhagen, look very good value again. Over a where tourist THEY LOOK weekend break, tourists could pay items remain VERY GOOD four times as much for meals and pricey at £306 but VALUE AGAIN.” drinks in Copenhagen as they cost almost 30 per would in Prague while Budapest is cent less than a the cheapest city break destination, year ago. according to a survey by Post Office Lisbon is again the Travel Money. eurozone best buy – with prices lower than in At under £117 for 12 typical city break items 2013 for meals, hotels and sightseeing. Lisbon – including an evening meal for two with wine, prices (£137) are down by over 15 per cent drinks, two nights’ weekend accommodation, and are under half those in Amsterdam (£310) sightseeing and city transport – Budapest and Paris (£311), where high hotel rates make remains best value for bargain hunters. these perennial favourites the most expensive Lithuanian capital Vilnius (£118) is close behind, of 11 eurozone cities surveyed. Stockholm with Warsaw (£132) and Prague (£136) (£363) is Europe’s most expensive city with completing a clean sweep for Eastern Europe. prices over three times as high as in Budapest Prague saw price falls of over 17 per cent, to and there’s bad news if you’re planning a trip move up to fourth place in this year’s survey. to the US - New York (£366) and Boston For the second year running Post Office (£413) are easily the most expensive cities for researchers found that meals and drinks are tourists. cheaper in the Czech capital (£27) than Interestingly, cities like Edinburgh, Barcelona anywhere else. and Berlin are all cheaper than Belfast with It is not just in Prague and Budapest that prices accommodation, and to a lesser extent food, on have fallen. The pound’s increased buying the pricey side. It’s a sign that after a few years in

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the doldrums, demand for hotel rooms in the city is once again beginning to outstrip supply. City Cost Comparisons At A Glance: • Staying over: The cost of three-star city centre accommodation varies dramatically. Budapest offers the cheapest rate for a twonight stay for two (£47) during April – under half the cost in 15 other cities. The price is over three times as high in Amsterdam (£175) and higher still in New York (£213) and Boston (£270). Other cities where two nights’ accommodation is cheap include Warsaw (£52), Vilnius (£53), Riga (£53), Tallinn (£59), Dubrovnik (£60) and Lisbon (£60). • Getting around: 48-hour travel cards can cu the cost of city transport and the cheapest ones cost well under £5 in Riga and Tallinn. By comparison, London and New York travel cards cost around £18, while a 48hour Stockholm pass is almost £25. Taking a sightseeing bus tour ranges from £10-£19 in most European cities but can be as low as £7 (Dubrovnik) or as high as £23 (Barcelona). • Culture costs: Entry to the top heritage attraction, museum and art gallery in Riga and Vilnius costs less than £7 while the price tag in Dublin and Prague is around £8. By contrast, Amsterdam’s cultural treasures will set visitors back £39 and New York tops this at more than £40.

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[LIFESTYLE] NOEL MCMEEL, EXECUTIVE HEAD CHEF, THE LOUGH ERNE RESORT

CULINARY DELIGHTS LAMB DISHES ARE THE FIRST DELIGHTFUL TASTE OF SPRING. AWARD WINNING CELEBRITY CHEF NOEL MCMEEL SHARES ONE OF HIS FANTASTIC LAMB RECIPES WHICH IS GUARANTEED TO GET THE TASTE BUDS TINGLING THIS SEASON.

Method: • Blanch the cabbage leaves in boiling salted water and refresh immediately. Chiffonade the remainder of the cabbage hearts. Heat a frying pan until very hot and fry the lardoons until crisp. Add the cabbage butter and balsamic vinegar and mix with bacon, then reduce the heat, cover with a lid and cook slowly for 5-10 minutes. Season and set aside to cool. • Prepare the Cabbage Ball. • Lay down a clean kitchen cloth then lay down a blanched cabbage leaf 3in square, season the leaf and fill with 1 table spoon of cabbage and bacon mixture, roll around the cloth to form a small tight ball but try to keep the juices inside. When needed for service, brush with a little clarified butter and steam for 4-5 minutes. Serve immediately.

SEARED LOIN OF LAMB, CABBAGE AND BACON, SERVED WITH STOUT GRAVY Lamb Shank Mini Pie Ingredients: • 2 lamb shanks, trimmed • 1 carrot • ½ onion • a few whole peppercorns • 2 cloves garlic • a sprig fresh thyme • a sprig fresh rosemary • ¼ bottle red wine • 1 tbspn redcurrant jelly • 200g Full Butter Puff Pastry • high egg yolk water glaze Method: • Place the shanks in a roasting tray and add a peeled and halved carrot, a peeled and halved onion, a few whole peppercorns, the herbs and two to three lightly smashed whole cloves of garlic. Fry off until sealed and golden brown. • Pour over enough wine to cover the meat of the shanks - and then leave to marinade overnight. The next day, sear the shanks to golden brown and place in a roasting tray, covered with a lid in a preheated hot oven at 160C/325F/Gas 3 and cook for about two and half hours or more. If the simmering becomes too lively during cooking, reduce the temperature slightly. Slightly uncover the roasting tray for the last hour so that the liquid will start to reduce.

• When the meat is falling off the bone, chill (overnight if possible). Remove the meat from the bone and discard any gristle. Cut the shank meat into brunoise dice and combine with the clarified and reduced cooking liqueur, this is the base for a mini pie. Roll out some puff pastry very thin and cut into discs just slightly bigger than the mini pie dish. • Fill each mini dish with the pie filling and top with the pastry that has been brushed with high egg yolk glaze. Reheat the pie in a hot oven when required cooking time 5-8 mins. Seared Loin of Lamb • 220g per piece larder trimmed pure eye meat only • Season and flash fry when required to medium rare and rest before carving with one slice on the bias Cabbage Parcels Ingredients: • 8 Green Outer Leaves Medium Savoy Cabbage • 2 rashers of Smoked Back Bacon, rinds removed and cut into lardoons • 5ml Vegetable Oil • 2.5ml White Balsamic Vinegar • 10g Butter • Pepper to Taste

Carrot & Parsnip Puree • 200g peeled carrots • 200g peeled parsnips • 30g butter • Salt and white pepper Method: • Boil the carrots and parsnips in separate pots until tender, mash and crush to create a rough puree mix add the butter and season. Guinness Stout Gravy • • • • • •

175ml Guinness Irish stout 1 litre of reduced lamb jus 1 onion 1 tbsp redcurrant jelly Sprig each of rosemary and thyme 1 garlic clove, roughly chopped

Method: • Combine the refined lamb jus in a thick bottomed pan with the stout, add the redcurrant jelly, rosemary, thyme and garlic, then boil to reduce by about three-quarters. Skim when necessary. Pass through a fine tammy cloth to create a perfect jus. Plating: Place a spoonful of carrot & parsnip puree on the plate and top with 2-3 slices of the seared loin of lamb. Spoon the gravy onto the plate and place your mini pie on top. Place a cabbage roll on each plate and serve with champ or mash potatoes with extra gravy on the side.

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[LIFESTYLE] REBECCA MCKINNEY, PERSONAL STYLIST, VICTORIA SQUARE, BELFAST

FASHION THIS SEASON IS ALL ABOUT PRETTY PASTELS AND GORGEOUS TONES THAT SCREAM SPRINGTIME (EVEN IF OUR WEATHER DOESN’T!). REBECCA MCKINNEY CHECKS OUT THE PASTEL TREND WITH EVERYTHING FROM SUGARED ALMOND SHADES TO CANDYFLOSS COLOURS.

PASTEL PERFECTION ACCESSORY HEAVEN The easy way to work pastels into your wardrobe is through accessorizing the girly way. Invest in a statement necklace with pastel stones, or go for a gorgeous clutch in a pretty shade. Accessorize is my favourite place this season for jewellery and bags. If you fancy investing in a more expensive bag however, Fossil have amazing mint and coral tones that would be perfect for glamorising everyday wear!

THE PASTEL SUIT Looking for something different to wear to work or a wedding this month? A pastel suit could be your answer and styled differently, could work for either occasion. Hobbs have a great baby blue suit in a linen mix that would look great with wedges and a blouse for the office. Reiss offer a pale pink version in a silkier material that would work beautifully for a wedding teamed with metallics. Be brave and ditch the dress!

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NIGHT OUT PRETTINESS If pastels for daywear fill you with dread, then maybe you are a night time pastel girl? The high street excels when it comes to affordable, on-trend fashion looks that are perfect to make a statement on a night out. River Island’s strapless jumpsuit in pastel pink is a beauty. Team this with a metallic collar necklace or cuff to toughen the look up and turn heads! Check out their super cute two pieces, shorts and top combinations that are sweet enough to eat.

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CANDY FEET Perhaps a cotton candy shoe is the look for you? Ted Baker illustrate how a ladylike court can look great in pale pink or pistachio green, while Dune and Kurt Geiger have chunky summer sandals with wearable heels in every shade from white to lemon. I love these worn with pale blue skinny jeans and a loose knit.

THE SUGAR PLUM DRESS If a wedding invite is just waiting to be answered, don’t let your outfit dilemmas hold you back. Be the best dressed guest in girly tones from Ted Baker, Coast or Monsoon. Yasmin le Bon illustrates how pastel shades look just as great on ladies of any age in Monsoon’s latest campaign. Check out their Fusion range in the Victoria Square store for beautiful dresses with a pastel twist.

THE SPRING COAT Spring has officially sprung with House of Fraser’s pale pink tweed coat. Great with white skinnies or thrown over a dress, this cocoon style has been the shape of the season and was even featured in our Victoria Square TV advert on one of our models. Warehouse are debuting a pale pink trench coat which has been flying off the shelves already this month!

Make girly pastels work for your wardrobe by styling them up in the most minimal way. Keep lines clean and tailored for night time or use the shades to give casual wear a pinch of prettiness. If in doubt, a pastel bag is a gorgeous addition to any outfit! Remember this month, there is no such thing as being ‘too pretty’! Happy shopping,

Rebecca xx

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[COLUMNIST] JIM FITZPATRICK, INDEPENDENT BROADCASTER

SIGN OFF… FAILING WITH STYLE FAILURE IS OFTEN A PRECURSOR TO SUCCESS SAYS JIM FITZPATRICK.

’m a big fan of Toy Story. All three films. The Pixar movies are as much film classics as Gone With The Wind or The Godfather. They conjure up a world of toys and childhood that is both hopelessly nostalgic and compelling modern, and vivid. We all imagine that we owned Woody and Buzz at some point in our childhood and that the toys lurk somewhere in a box in our attic. I think what makes the films so gripping and gives them the longevity most others lack, is the depth of character development and narrative. There isn’t a wasted second in each 115 minute offering. Take how we meet Buzz Lightyear. He arrives in Andy’s bedroom as one of the new presents following a birthday party and is clearly the coolest thing to enter this room in a long time. Woody is worried. This fantasy spaceman is also under the impression that he is the real deal - a true superhero - he doesn’t realise that he’s a toy. To prove his point in front of a sceptical audience, Buzz decides to demonstrate his flying ability. Thanks to a series of fortunate but unintended interventions - springing off the bed, catching a toy plane, bouncing off a ball - Buzz completes an impressive loop of the room. He can fly! Woody appears to be the only toy who doubts the achievement: “That’s not flying. That’s falling with style!” he moans. If I had a motto for life - and I don’t - it might be that: Falling With Style. Sometimes we attempt things that are beyond us, and we fail. It’s how we fail that defines us as much as how we succeed. One of the biggest cultural problems we face in Northern Ireland as we seek to build a better economy and brighter future is our collective fear of failure. Without the testing and improving power of failure, success is brittle and short-lived. The Pixar movies are, in themselves, fine examples of this. Their success is borne out of painstaking change and improvement. The creators were prepared to do something conventional business models don’t like - they ripped up “finished” movies that they felt weren’t working. They kept improving until they were sure they had it right - often regardless of cost - because they knew the quality would shine through and deliver better results in the end. Every box office smash began life as a potential turkey. Failure was just their route to success. I once spoke to a senior civil servant who told me that he’d just come from his Permanent Secretary’s retirement dinner. The

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boss had been asked to reflect on his greatest achievement during his many years in post: “Never being called before the PAC,” was the depressing answer. As a journalist I’ve covered my fair share of Public Accounts Committees and Audit Office reports. I’ve been hard, merciless at times, on those found wanting. That’s a necessary part of our accountable and democratic process. But we must try and see failure in context even government and the civil service must be allowed to fail occasionally, I just wish they’d do it through high ambition rather than low ability. I caught a great documentary on Radio Four recently featuring the new space station in the Mojave desert in California where Virgin Galactic and others are building the first generation of commercial spacecraft. They’ve

been at it for years and nobody has quite managed the space flight they’d hoped for - yet. The programme described a monument to an earlier unsuccessful aircraft - something like a cross between a giant traffic cone, and a helicopter with rockets attached. The engineer in charge of that project now leads a team at Virgin. Asked by the reporter if he minded passing this monument to failure each day on his way to work he said no. The machine had performed, it just wasn’t commercially viable. What’s more, he asserted, it was a milestone towards his current goal of getting the first commercial spacecraft into orbit. To paraphrase Woody, it seems the engineer had simply been failing with style. For success to be a possibility, failure must always be an option.

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