BQ North East Issue 09

www.bq-magazine.co.uk

ISSUE NINE: SPRING 2010

FIT FOR A KING How an angling company bucked the trend and reeled in royalty

THE BIG LIFT Multi-cultural swap-shop lifts Sunderland to new manufacturing heights

OPEN FOR BUSINESS Durham County, where the world is taking notice

WATER ON THE BRAIN Heidi Mottram on being connected to the system

ISSUE NINE: SPRING 2010: NORTH EAST EDITION

GO WITH THE CUSTOMER Nigel Mills’ supermarket shopping list

BUSINESS NEWS: COMMERCE: FASHION: INTERVIEWS: MOTORS: EVENTS

NORTH EAST MAGAZINE OF THE YEAR 2009

NORTH EAST EDITION

Business Quarter Magazine

BQ ISSUE 9.indb 1

£2.95

23/04/2010 09:19

BOSS Black

BOSS Black Menswear and Womenswear Fenwick Newcastle Northumberland Street Newcastle upon Tyne NE99 1AR Phone: 0191 232 5100

BQ ISSUE 9.indb 2

23/04/2010 09:19

WELCOME

BUSINESS QUARTER: SPRING 10: ISSUE NINE If we pass subliminal messages to our readers it’s because we have your interests at heart.

Our undercurrent in this BQ, then, is a plea to export – even if your firm hasn’t tried before.

Currency exchange rates will be favourable in many cases just now, and there is abundant knowledgeable support on offer from bodies skilled in the field, such as UK Trade and Investment. Three companies featured in this issue demonstrate how exporting is not just the cream but strawberries as well.

Hardy & Greys, a name globally synonymous with fishing, and a name renowned in Alnwick since 1872, went through crisis in the 1990s, the full extent of which is only now being publicly realised. It might have been killed off by cheaper foreign competition had not managing director Richard Sanderson imposed an overseas-led transformation.

By moving some manufacturing abroad but building other aspects of the business at home Hardy now flourishes even on competitors’ home grounds. It has enlarged and upskilled the workforce, and consequently has shown annual compound growth of 19% since 2002.

With a more diversified approach and an intensified coverage abroad it may well become number three in the world‘s angling industry. Over seven years its international business has grown 500%.

Meanwhile Liebherr safeguards Wearside jobs with an incredible 97% export activity in its 21st year at Sunderland. Liebherr builds one in four of all cranes fitted to the world’s ships, and while Sunderland is one of only 30 sites belonging to the group across Europe, Sunderland is also the one that builds most of those cranes – and others besides.

Liebherr benefits from being part of international operations, of course. But also under managing director Ralph Saelzer the Sunderland business enjoys a lot of autonomy, instils very high standards of training,

maintains good trade union relations, and all in all deserves a lot of the credit for its own success.

Finally, Perry Process Equipment at Newton Aycliffe shows you can win foreign business in the second-hand business too if you have someone on the staff proficient in a foreign language or two. Managing director Darrent Bentham says sales manager Julie Morris’s fluency in languages largely accounts for a 60% growth of sales in Germany, and now she’s turning her attention to France. Even if staff only know enough of a visitor’s language to make them feel welcome in a strange surrounding that can help secure a sale apparently.

How sad, then, we must also report that at the recent otherwise successful Business Exchange North East event in Newcastle not one representative of any North East business thought it worthwhile to attend a “Doing Business in Norway” seminar. And that’s a place where, bless them, they even speak our language!

Can’t we try just a little harder?

CONTACTS ROOM501 LTD Christopher March Managing Director e: chris@room501.co.uk George Cheung Director e: george@room501.co.uk Euan Underwood Director e: euan@room501.co.uk Bryan Hoare Director e: bryan@room501.co.uk EDITORIAL Brian Nicholls Editor e: b.g.nicholls@btinternet.com Alastair Gilmour e: communicate@pressboxmedia.co.uk DESIGN & PRODUCTION room501 e: studio@room501.co.uk PHOTOGRAPHY KG Photography e: info@kgphotography.co.uk NR Photography e: nicky@nrphotography.co.uk ADVERTISING If you wish to advertise with us please contact our sales team on 0191 419 3221, or email sales@room501.co.uk room501 Contract Publishing Ltd, 10 Baird Close, Stephenson Ind Est, Washington, Tyne & Wear NE37 3HL www.room501.co.uk

THE LIFE AND SOUL OF BUSINESS

room501 was formed from a partnership of directors who, combined, have many years of experience in contract publishing, print, marketing, sales and advertising and distribution. We are a passionate, dedicated company that strives to help you to meet your overall business needs and requirements. All contents copyright © 2010 room501 Ltd. All rights reserved. While every effort is made to ensure accuracy, no responsibility can be accepted for inaccuracies, howsoever caused. No liability can be accepted for illustrations, photographs, artwork or advertising materials while in transmission or with the publisher or their agents. All information is correct at time of going to print, May 2010.

NORTH EAST EDITION

03 BQ ISSUE 9.indb 3

BQ Magazine is published quarterly by room501 Ltd.

BUSINESS QUARTER |SPRING 10 23/04/2010 09:19

CONTE BUSINESS QUARTER: SPRING 10 FIT FOR A KING

38 OPEN FOR BUSINESS County Durham, where clout is about

Features

46 THE BIG LIFT Liebherr’s multi-cultural swap-shop

72 GO WITH THE CUSTOMER 23 SEVEN The lucky number that counts for the Entrepreneurs’ Forum

Nigel Mills goes shopping - for supermarkets

78 WATER ON THE BRAIN

24 WATER ON THE BRAIN

A new boss connects to the system

20 AS I SEE IT Julie Morris argues that foreign languages are a must, aujourd’hui

24 FIT FOR A KING The angling business that’s reeling in the customers, Prince Charles included

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 4

82 SERVICE WITH A STYLE Michael Hodgson opens the door

88 EVERYONE A WINNER How the North East could score from the 2018 World Cup

04

78 23/04/2010 09:19

TENTS NORTH EAST EDITION

DRUMMING UP DEALS

50 BUSINESS LUNCH Angus Charlton has designs on China

Regulars

56 WINE Alastair Gilmour tastes lime in his white

58 EQUIPMENT

50

Specs education from Josh Sims

7

ON THE RECORD Who’s making the news in Q2/10

10 NEWS Who’s doing what, when, where and why, here in the North East

31 COMMERCIAL PROPERTY The sites and sounds from the region’s built environment

BQ ISSUE 9.indb 5

62 FASHION

SHOOTING PARTIES

The brogue’s in vogue this summer

69 MOTORING The Aston Martin Headturner

95 IN ANOTHER LIFE Jennifer Welch surveys her work

96 FRANK TOCK Gossip from our background boy

05

62 BUSINESS QUARTER | SPRING 10 23/04/2010 09:19

The best in

business and leisure

conferences accommodation dining celebrations leisure weddings www.strhotels.co.uk BQ ISSUE 9.indb 6

23/04/2010 09:19

SPRING 10

ON THE RECORD

While the Leaf’s spring budding is a futuristic coup for the North East and confirmation of confidence in the region’s manufacturing skills and enterprise, there is still no room for complacency >> Be warned on data breaches

>> Electric vehicles under starters’ orders Electric cars by 2015 may run for 300 miles without requiring a recharge. They would then be on par with conventional cars using a tank of petrol.

That prospect would make the Leaf, Nissan’s first electric car soon to be built at Sunderland, even more competitive. Nissan’s Sunderland plant, the UK’s biggest car producer for 12 years running, was preferred to its Portuguese sibling as builder of the Leaf’s European version from 2013.

The Japanese version of the hatchback is being sold for £26,500 in Japan – still cheaper than many of its zero-emission vehicles. UK buyers will be offered a £5,000 government incentive to buy an electric car when they go on sale.

Meanwhile up to 400 new jobs are on the way – and 160 more secured – to feed demand for the Qashqai, the Sunderland plant’s highest volume seller. More than half a million have been turned out there since its 2007 launch, nearly 200,000 during 2009.

A third production shift has been resumed. (Nissan’s neighbouring parts supplier Hashimoto has created 70 more jobs amid the revival, despite an earlier fall in revenues - £21.5m in 2009 against a record £34.5m the year before).

In a separate venture, North East business “angels” encouraging design and production locally are backing MSI Holdings, owner of Avid Vehicles, a Cramlington designer of electric vehicle powertrain systems. Now Avid can build on technology already bringing in contracts from leading manufacturers.

As part of the venture investment (amount undisclosed), MSI Holdings also acquired the ComeSys Europe business, a key supplier to Avid. It makes control systems and electronics for low emission vehicles. MSI intends to grow each company independently.

Ryan Maughan, founder and director of MSI Holdings, says: “The MSI group is helping to mark out the North of England as a global hub of low carbon vehicle innovation and activity.”

Tait Walker chartered accountants and Watson Burton law firm advised the “angels” - Chris Thompson, chief executive of Express Group, Chris Baylis, former head of engineering at Nissan Europe and Dr Howard Forrest, former managing director with the Cookson Group.

Duncan Reid, head of private equity at Watson Burton, affirms the deal’s importance in helping propel the region to the fore in British electric car design and production.

Another North East firm, electric van maker Tanfield, is to supply 47 out of 70 vans for the Department of Transport’s Low Carbon Vehicle Procurement Programme. It has also secured a £14.5m grant from the US government to produce more of its US-built electric trucks for the market there.

The money will go to Tanfield’s part-owned associate Smith Electric Vehicles US Corporation (Sevus), which may be sold for £37m to its American shareholders.

An earlier £6.6m grant from the US government was given in a bid to involve firms nationwide in an electric vehicle demonstration programme. Tanfield, based in Washington, Sunderland, owns 49% of Sevus.

Roy Stanley, Tanfield’s founder, says selling the US operation would attract further funds from the US government, and enable the main Smiths Electric Vehicles (SEV) division to create more jobs in the North East.

Cummins plans at Darlington to develop the next generation of clean diesel engines for ultra-low emission commercial vehicles. It is getting a £600,000-plus grant through One North East.

Altogether 135 jobs will be safeguarded, and more created.

07

BQ ISSUE 9.indb 7

Firms are advised to heed new legislation in data protection legislation which has just come into effect.

Jackie Gray, an associate in public services at law firm Dickinson Dees, says: “In the past, it was widely believed that data protection legislation had no teeth. That has changed with an introduction of heavy fines for serious data protection breaches.”

The Information Commissioner now has power to impose fines of up to £500,000 for serious data protection breaches in both the private and the public sector.

>> Tunnel on schedule Work on the new £260m Tyne Tunnel (TT2) is on schedule with the final section of the prefabricated concrete tube through which vehicles will run now immersed in position, and covering 360 metres between the river banks.

Volker Stevin Marine has manufactured, transported and sunk the units for the construction and engineering consortium led by French contractor Bouygues Travaux Publics.

>> Airports suffer losses Passenger numbers fell 56% at Durham Tees Valley Airport last year following British Midlands’ withdrawal of Heathrow flights.

For Peel Airports, which also runs the Liverpool John Lennon and Robin Hood in yorkshire airports, it meant a revenue drop of £5m-plus.

Fewer passengers used any airports, but Teesside’s fall was biggest - 656,220 down to 289,464 - the Civil Aviation Authority says.

Flyglobespan also ended operations there, and Ryanair and Wizz flights were lost. But Eastern Airways has opened a weekday link between Teesside and Bergen, and Aer Lingus has >>

BUSINESS QUARTER |SPRING 10 23/04/2010 09:19

ON THE RECORD started a new service from the airport.

Peel Group has been in talks to sell a stake in its airports division to an investment partner.

Newcastle Airport, in its 75th anniversary year, is getting an estimated £7m boost from low-cost airline Ryanair’s introduction of links with Oslo three times weekly. It has also reintroduced its Barcelona service there. Newcastle’s passenger decline last year was 9%.

>> Three-centuries builder A building firm active over three centuries is celebrating its 150th anniversary. T Manners & Sons, run by the same family throughout, has a £10m turnover and employs 60 people at South Church, Bishop Auckland. The firm also built fighter aircraft during the First World War.

>> On screen and in print Trinity Mirror’s Newcastle-based consortium with the Press Association and Ten Alps media company has been announced the preferred bidder to run a pilot Tyne Tees/ Border TV news in place of the existing regional ITV service.

The service will go out from the Newcastle Chronicle and Journal offices. But the politically controversial consortia may be scrapped if Tories win the Election. If Labour win and the pilots are successful the North East template could be applied to other parts of England.

>> Go-Ahead for Go-Ahead The Office of Fair Trading decided against investigating transport group Go-Ahead’s £20m bid for Southern bus operator Plymouth City Bus. Stagecoach wanted it too.

>> Thousands still struggle Almost one in three North businesses fear insolvency if the economy suffers a double dip recession, according to research by insolvency trade body R3.

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 8

SPRING 10

Fresh thinking: NECC chief executive James Ramsbotham (second left) welcomes new publisher of North East Contact Magazine room501; editor Peter Jackson (left) managing director Chris March (first right) and sales & marketing director Bryan Hoare (second right).

>> New publisher for flagship magazine room501 Publishing, whose publications include BQ (Business Quarter), is now also publisher of North East Contact Magazine, the monthly flagship of the North East Chamber of Commerce.

The Sunderland-based media group is relaunching the magazine with a new look from May. Julie Underwood, NECC’s head of member services says: “room501’s reputation for producing top-quality publications is widely known across the North East.

“NECC expects this new partnership will give not only its members, but the region’s entire business community a unique and more compelling insight into the business climate, and efforts NECC makes for the North East.”

Chris March, managing director of room501 Publishing, said of the publication: “We shall bring to it our high standards of design, production and editorial to create a publication that will give the NECC’s membership an informative, entertaining and incisive monthly business magazine.”

“It will sit alongside our quarterly BQ magazine to give widest possible coverage of North East business.’’

To find out more about North East Contact Magazine and how to subscribe, contact NECC on 0300 303 6322 or email enquiries@necc.co.uk

Around 4,040 firms in the North East alone had significant financial problems in the last quarter of 2009 - either a court action and/or average, poor, very poor insolvent or out date accounts.

Begbies Traynor of Newcastle, the business rescue, recovery and restructuring specialist, expects a further rise in corporate insolvencies during the second half of 2010.

>> >> Home ground advantage More Sunderland firms are getting a chance to bid for council work under the city’s tender threshold (currently £75k).

To support the local businesses, council officers buying goods or services now have

08

access to a database that will highlight any local companies that offer the service they need. If so, at least two of the three quotes needed before a purchase can be made, will be provided by city businesses.

The council also now offers to help Sunderland businesses put together bids to win work. www.buysunderlandfirst.co.uk, 0191 561 2369 or e-mail BuySunderlandFirst@Sunderland.gov.uk

>> Degree in salesmanship Sunderland University’s business school has launched a new degree, working with BT, to improve sales capability for its graduates nationwide. It’s the first postgraduate degree in applied sales management in the UK.

23/04/2010 09:19

SPRING 10

COMPANY PROFILE

WILL BUSINESSES BE BETTER OFF POST-ELECTION? Anne Morrison: Head of Private Client Services, Grant Thornton in the North East and Yorkshire Alistair Darling’s pre-election Budget held no shocks or surprises, featuring gestures aimed more at gaining votes in the General Election than providing any realistic solutions to the current economic issues.

A stepped increase in fuel duty and the suspension of stamp duty on properties below £250,000 may well prove popular with some voters but neither will have a real impact on the current financial deficit nor help increase business profitability and growth.

Hot on the heels of the Budget came the announcement by the Government of its plans to raise National Insurance contributions by 1% for those earning over £20,000. The proposal has become a political football, with the Conservative Party strongly against the idea, supported by many of the UK’s leading business figures who have spoken out publicly.

The dissolution of Parliament for election campaigning has meant that many see the Budget of 2010 as somewhat irrelevant. What will be interesting looking ahead is the coming five years post May 2010. Will we be better off in both our business and personal lives, or will it be a far longer haul than that?

Grant Thornton is hosting a post-election event on 16 June at North Yorkshire’s historic Goldsborough Hall to discuss how the result affects businesses in the North East and Yorkshire, starting at 10am.

For further information contact Anne Morrison on 0113 200 1598

is now open!

Our first floor restaurant is now taking bookings There is something for everyone on our new mouth-watering menu or even if you fancy popping along for a drink contact us on 01642 355558 or visit www.hidebar.com/yarm for more information We hope to see you all soon

Hide Café Bar, 32-34 High Street Fairfax Court, Yarm, Cleveland TS15 9AH , Tel: 01642 355558 www.hidebar.com/yarm hide ad v42.indd 1

BQ ISSUE 9.indb 9

09

1/4/10 16:48:23

BUSINESS QUARTER |SPRING 10 23/04/2010 09:19

NEWS

SPRING 10

We may mourn the demise of the British-built tank and fret over our balance of trade deficit with Norway, but we can take encouragement from the creative and IT sectors - and even finance >> Astrum tracks down orders Military engineers Astrum, with annual turnover up 10% to £38m through surging exports, is after more business in Europe, Asia and the Middle East.

The firm is adding to its 250-strong workforce at Stanhope in County Durham in readiness for the economic upturn.

Although exports in track systems and other components are up 5% to 21.7% of sales, this could not avoid a pre-tax loss of £3.4m. However, a £60m order for track systems for military vehicles has since come in from the Ministry of Defence.

Managing director Phil Kite says: “We’re now targeting a larger share of what is a substantial global market.”

The company, selling in 30 countries, also has non-military customers, mainly with requirements for earth-movers. It now has to consider implications of BAE Systems, a prime customer, having lost a £1bn defence contract for Fres Scout vehicles to US rival General Dynamics.

Already 217 of BAE’s 650 workers at Scotswood, Newcastle, are having to look for new jobs, since the last major contract, for Terrier mine-sweeping vehicles, runs out in 2014.

General Dynamics sees the Fres programme creating 10,600 jobs and, encouragingly perhaps for Astrum, it says 73% of the work will be UK-based, with two or three North East-based firms in the running to provide smaller parts and guidance technology.

Manufacturing will be at the Defence Support Group site at Donnington in the East Midlands.

The Government has created further uncertainty, asking BAE and Lockheed Martin to resubmit their competing bids to refit the Warrior infantry fighting vehicle,

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 10

which Astrum has previously supplied BAE with tracks.

And BAE’s replacement for its Scimitar tank, the CV90 armoured reconnaissance vehicle favoured by Army chiefs, is being passed over in favour of the General Dynamics Ascot rival built in Austria and Spain. It means tanks, the British invention that changed the face of war, will no longer be built in Britain.

However, the MoD has signed a £127m deal with BAE Systems Surface Ships to consider design proposals for the Type 26 combat ship with a commitment to press on with Astute-class submarines in Barrow.

Hugh Morgan Williams: One in eight Israelis invest in a business not connected with their family, he says.

“Wouldn’t it be good to create a culture of this kind in the North East?” he adds.

>> Growth cash mounts for firms The North East now looks the best place to access finance and get support for business growth outside London.

That’s the encouraging prospect as firms hungry for investment apply for backing from the new £125m Finance for Business North East Fund (formerly Jeremie), the first - and possibly last - regional investment source of its kind. Complementing the new fund’s £125m is a legacy of investments that has already provided £10m and could top £100m by 2015 via injections by the North East’s existing

10

venture capital funds. This public-private equity has been available for around a decade.

Finance for Business North East is expected to help create 5,000 new jobs and support 850 companies over five years through supportive investment in thriving firms.

Regional development agency One North East has assembled resources of the new fund with the legacy of earlier ones, to be run by North East Access to Finance (NEA2F), a company chaired by Hugh Morgan Williams and chief executive Andrew Mitchell.

First deals were to be finalised by the end of April, with an extensive programme likely towards the end of June, through a variety of partner organisations.

Mitchell predicts central government will not repeat its provisions of recent years, money for similar venture capital schemes being now unavailable.

“So it will be vital to our region in a period of public sector cutbacks, setting the North East apart from elsewhere in England,” he predicts.

Morgan Williams, founding chairman of Sunderland-based Canford Audio group, has worked on access-to-finance initiatives in the North East for 15 years. Other board members are Graham Thrower, a One North East board member formerly with Citigroup; Geoff Hodgson, from a background of tourism and hospitality business, and Mark Chidley, senior banking partner with law firm DLA Piper.

The Finance for Business North East Fund comprises £44.25m from the European Regional Development Fund 2007-2013 and £18.25m from One North East. The European Investment Bank is committing £62.5m.

One North East has invested more than £30m of taxpayers’ money in North East businesses through regional private equity funds such as NorthStar Equity Investors and NEL fund managers.

• A new website, www.nea2f.co.uk, carries a full guide to business financing in the region.

• North East law firm Ward Hadaway advised in this initiative. >>

23/04/2010 09:19

The new BMW 5 Series Saloon

Fawdington BMW in the City

The Ultimate Driving Machine

INSPIRING DESIGNS DON’T ALWAYS BEGIN ON PAPER. Before a BMW can be built, it first has to be imagined. Like the new 5 Series which started life as just an idea. Could the perfect balance of form and function be perfected? The answer is both a thrilling achievement and a remarkable car. One that gives the driver an abundance of power under the bonnet and total harmony inside the cabin. Greater luxury, increased performance and more fuel efficiency all combine beautifully in a perfect example of BMW EfficientDynamics, making the new BMW 5 Series not only the best looking we’ve ever made, but also the most inspirational.

To arrange a test drive† and begin your exploration of beauty call us on 0191 269 0033 or visit www.fawdingtonbmw.co.uk. The new BMW 5 series. An exploration of Beauty.

Fawdington BMW in the City

Fenham Barracks, Newcastle T: 0191 269 0023 www.fawdingtonbmw.co.uk

Official fuel economy figures for the new BMW 5 Series Saloon: Extra Urban 37.7-55.4mpg (7.5-5.1l/100km).

Urban 18.3-36.2mpg (15.4-7.8l/100km). Combined 27.2-56.5*mpg (10.4-5.0*l/100km). CO2 emissions 243-132*g/km.

The new BMW 5 Series Saloon range: £28,165 on the road. Price is correct at time of going to print and subject to change without notice. On the road price is based on manufacturer’s recommended retail price and includes 3 year BMW Dealer Warranty, BMW emergency service, 12 months road fund licence, vehicle first registration fee, delivery, number plates and VAT. *Subject to confirmation. BMW EfficientDynamics reduces BMW emissions without compromising performance developments and is standard across the model range. †Test drive subject to applicant status and availability.

BQ ISSUE 9.indb 11

23/04/2010 09:19

COMPANY PROFILE

SPRING 10

As we move further into the recovery, businesses across the North East will start to see more opportunities. In this article, Relationship Manager Jamie Fraser discusses how the expanded team at Lloyds TSB Corporate Markets can help businesses take advantage of these opportunities and highlights why building a strong relationship with your bank is crucial to business success.

EXPANSION EQUALS NEW OPPORTUNITIES AND CHALLENGES

A

S we enter 2010, businesses across the North East are preparing for the opportunities and challenges that arise as the region and country emerges from a recession. This will not be easy and it will take some time, but as opportunities do arise, businesses should expect to be able to rely on a supportive bank that understands their business to make the most of these opportunities.

There are a number of players in the North East corporate banking market, with several increasing their presence over the last few years. To differentiate ourselves, and as part of a nationwide expansion, I am now part of a team that has doubled in size, demonstrating our continued commitment to support corporate businesses across the North East. The new team, totalling 21 colleagues, has significant strength in depth and offers a full banking service to businesses across the region.

The purpose of the new structure is to ensure we have the right people based locally to provide expert advice and support to our customers and prospective customers. This is certainly the ethos that attracted me into the banking sector when I joined the graduate scheme at Bank of Scotland Corporate several years ago. During that time, I’ve worked mainly in corporate banking at Bank of Scotland and now Lloyds Corporate Markets, spending time in Newcastle, Edinburgh and Sheffield. Having enjoyed my time in Newcastle and with a wife from the region it was an easy decision for me to settle down in the North East.

What I really enjoy about my job is the direct interaction that I regularly have and the strong relationship that I have cultivated with my

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 12

Above: Jamie Fraser, Relationship Manager for Lloyds TSB Corporate Markets

LLOYDS TSB CORPORATE MARKETS REMAINS CONSISTENTLY OPEN FOR BUSINESS customers and prospects across the region.

It’s vital that businesses have strong working relationships with their bank, never more so than during tough economic times. We not only want our customers to survive in the current climate, but we want to see them thrive and make the most of the opportunities that the recovery brings. With this in mind, we take the time to get to know every aspect of our customers’ business. This insight means we can support them right through the economic cycle – during the tougher times, as well

12

as the good ones – and become one of their most important and valued trusted advisors.

Throughout the last year, all our customers have highlighted the importance of having a locallybased team with knowledge of the region and wider sector experience. This method has always been at the forefront of the way the Bank goes about its business and also why, outside the office, I’m involved in the CBI Future Leaders Programme.

This is a one-year course for business leaders of the future to better understand the political and other challenges that face businesses in the region, as well as improve our understanding of the sectors that will help the economic longevity of the area, for example, renewable energy and digital.

As the economy improves further, there will be more and more opportunities for the strong, local management teams that have a clear vision and strategic plan for the future. That’s why Lloyds TSB Corporate Markets remains consistently open for business. We want to help those teams maximise the potential of the opportunities and that is why I look forward to continuing to work with businesses from the region for many years to come.

Jamie Fraser is a Relationship Manager for Lloyds TSB Corporate Markets in the North East.

Tel: 07917 555 011.

Email: jamie_fraser@bankofscotland.co.uk

23/04/2010 09:19

SPRING 10

Neptune yard on the Tyne - in addition to its existing Blyth operation

>> Don’t fret about energy bills Firms in our region could achieve savings of up to £321m a year in total through an energy-saving programme, a study estimates.

It’s a welcome prospect at a time when rising energy prices and tax increases are proving the biggest price-hike headaches for businesses in the North East.

Research by the Carbon Trust indicates that 52% of decision makers in Newcastle area are worried about energy price rises, 47% about the tax increases. Now the Carbon Trust has launched a Best Advice campaign to deter British businesses from squandering yearly more than £3bn of energy.

Paul Stobart, managing director of Sage UK and Ireland, is a convert now urging businesses to take a free carbon survey from the trust - “the best free advice any business will get this year,” he reckons.

Any firm spending between £50,000 and £3m on energy yearly is entitled to the assessment which could give savings on energy costs of 20-30%. Sage has significantly cut its energy costs and made a carbon saving of 291 tonnes of CO2 by working with the Carbon Trust and taking steps as simple as replacing light bulbs in its meeting rooms.

Since 2006, the Carbon Trust has saved more than £180m for British businesses. In the North East, 93 businesses have taken the survey, with total potential carbon savings identified of more than 15,000 tonnes of CO2.

PricewaterhouseCoopers thinks North East firms could be underestimating the impact of the Carbon Reduction Commitment The North East is on the way to being a main Energy Efficiency regulations. hub of activity in the capture and storage of Without action, the scheme could carbon (CCS). About 26,000 people work in add 4-6% to energy costs next chemical and process industries, a major target year, it says. for CCS technologies.

By 2015, poor performers might be One North East has outlined the potentials for adding nearly 20% to their annual new investment and other benefits likely from energy costs - £500,000 more on creating a CCS cluster in the region. A campaign an annual energy bill of £1m. But to improve the prospects of the ailing former ICI by taking measures they could site at Wilton, for example, has resulted in plans turn an early loss into a gain, for a CCS project that could ultimately boost cutting the energy costs cut by North Sea oil and gas production. over 8% in 2015.

This £2bn scheme could be running by 2015. It Businesses spending £50,000 or will initially capture emissions from a planned more on energy could usefully visit progressive energy power plant at Eston Grange, www.thebestadvice.co.uk, or Teesside, and Rio Tinto’s Alcan power plant at dialling 01865 885788. Businesses Lynemouth, Northumberland. spending less can get free advice It could then expand to divert up to 15m tonnes via an online video at of CO2 from other industrial users. www.carbontrust.co.uk/ onlinetraining.

>> Reaping the whirlwind The North East and Humberside are competing to win German firm Siemens’ new £80m wind turbine facility promising 700 jobs.

Siemens is the fourth manufacturer moving in on Britain’s growing market for turbines.

The North East is also lobbying for a turbine

BQ ISSUE 9.indb 13

NEWS

factory that US conglomerate GE plans somewhere in the UK. This £100m investment could employ 1,900.

Japan’s Mitsubishi has government support for its proposed plant, which could bring another 1,500 jobs. And Clipper Windpower, another US manufacturer, is going to build two turbines a week at the refurbished former

13

Time saver: Joanne Towart

>> Fast moving figures Accountant Joanne Towart’s new business serves clients she may never meet.

Towart, of Heddon-on-the-Wall, Northumberland, is helping small firms and businesses pressed for time to visit accountants or keep their paperwork in order. Her firm, Abacus Accounting By Mail at Killingworth, offers easy access.

She explains: “Clients sign up via the website, get a letter of engagement and receive all other information needed. Then they just send all documents in an envelope to get a monthly set of accounts, and can raise questions by e-mail or phone if they wish.”

There is a document storage option. www.abacusabm.co.uk

>> D1 advances into India Biofuels specialist D1 Oils has a £500,000 contract for a government-led project in India.

The firm founded by North East entrepreneur Karl Watkin moved out of biofuel production last year, closing its refineries at Middlesbrough and Merseyside, and shedding 90 jobs to focus on growing the base material.

>> The good, the bad and the Rock Likelihood of the good side of troubled Northern Rock being bought grows with annual losses of the stricken lender slashed from £1.3bn to £383m and the Government’s guarantee of total >>

BUSINESS QUARTER |SPRING 10 23/04/2010 09:19

NEWS

SPRING 10

protection to savers now removed.

Assurance has also been given that the bank which, in 2007, was the first disclosed victim of its sector’s excesses, should continue to recover throughout this year.

The “good” side of the company - now known as Northern Rock (Asset Management) plc - cut costs for the year to last December by 32% to £296m. Income improved to £1.1bn, against £433m previously. These figures add appeal to rivals seeking acquisitive growth.

Even the less palatable side - residential mortgage arrears - stabilised in the final quarter at 4.28% and properties held fell to 2,061 from 3,620.

The workforce - but not chief executive Gary Hoffman - shared £14.9m in bonuses, many beneficiaries being on £20,000£25,000 pay. Hoffman was paid £1.3m last year, making the ex-Barclays executive the country’s highest paid civil servant.

Former shareholders, by contrast, get nothing. An independent valuer has confirmed the shares became worthless, and there was no requirement to compensate the investors who lost money when the Government took control of the business to avoid even greater crisis.

>> Big chance for exporters Nominations are being invited for the North East Exporters Awards 2010.

They recognise the efforts of individuals who have helped their companies boost their international sales performance. Winners will be announced at a dinner at the Hilton Newcastle Gateshead on July 15. There are five categories: New Exporter Export Achievement Innovation in Export Export Communicator Passport to Export Each winner gets a trophy and £1,000.

David Coppock, UK Trade & Investment’s international trade director, says: “North East businesses have had a difficult time recently.

But while our export levels have fallen the total value of goods sent to overseas markets

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 14

still exceeds £10bn - an achievement to be proud of.”

Deadline for entries is May 21. For details of how to enter or attend the dinner, contact www.ukti.gov.uk or e-mail ken.cuthbert.ukti@ onenortheast.co.uk.

>> They can see clearly now The world’s largest offshore energy production facility opens in June when the United Arab Emirates’ Umm Shaif project comes on stream.

And workers there will enjoy clearer visibility in the glaring sun. Solar Solve Marine of South Shields has supplied 52 of its blackout roller blinds for living areas and 20 anti-glare, heat rejecting roller screens for control room windows.

The move by Investcorp Technology Partners came in the North’s second PIPE deal - whereby a private equity investor takes a significant minority holding in a public company already quoted on public markets.

Investcorp’s stake in the business thus rises to 29%. OpSec, a global activity, serves more than 50 governments and 300 global brands worldwide with products and services. It will now make further acquisitions and speed organic growth.

The new funding partner is part of the technology private equity arm of Investcorp Bank, quoted on Bahrain’s stock exchange.

Investcorp manages $12bn of assets internationally.

This OpSec deal is the latest in a string of recent fundraisings and deals for AIM Market companies handled by North East law firm Dickinson Dees.

>> Media firm gets US accent The new American owners of Robson Brown, the North East’s biggest media agency, want their purchase to reach deeper into the UK and beyond.

Los Angeles marketing firm Round2 has bought out chief executive Alan Brown and creative director Stuart Robson, joint founders 26 years ago. Robson Brown, a UK top 40 business in its sector, has a £37m turnover and 95 employees.

Earlier Robson Brown attempts to expand from London and Manchester were later described

by Brown as “dreadful experiments”. The firm has been strongest when concentrated in Newcastle.

Chief executive Andrew Marwick becomes Round2 International’s UK ceo. Clients to date have included Dreams, Metrocentre, Bellway, Manchester Arndale, Flymo, Newcastle Building Society, DFDS Seaways and Benfield.

>> Arab investors seek security OpSec Security Group, which has one of three UK operations at Washington in Tyne and Wear, has issued a 5% shareholding to Gulf Arab investors.

14

Professor Jerry Barnes: One of the founders of Geneius with the firm’s newly won accreditation

>> DNA approach distinguishes The Newcastle food-testing firm Geneius has won approval from United Kingdom Accreditation Service to apply its revolutionary rapID® DNA-based approach to routine micobial testing and food analysis.

This award makes the Newcastle Universitybased company one of the few accredited companies across Europe to offer food testing, DNA-style.

>> Powered Solutions Aker Solutions, the UK operation of the Norwegian engineering and construction contractor, is likely to add 100 more employees to the workforce it has doubled to 600 since moving to Surtees Business Park in Stockton four

23/04/2010 09:19

SPRING 10

years ago. It is thriving on deals involving power stations.

>> Fizz band, it’s Fentiman Fentimans the botanical drinks manufacturer has added to its range an organic Smooth Lemonade and an organic Cool Ginger Beer.

Eldon Robson, managing director and master brewer of the Hexham firm, says “We’ve been developing for some time the idea of producing a lemonade and a ginger beer drink with different flavour profiles to our Victorian Lemonade and Traditional Ginger Beer.”

>> Deloitte delight Business advisors and accountants Deloitte, which had to disband its

six-strong corporate finance team in Newcastle as the deal market crashed two years ago, is now relocating from Grey Street to bigger offices at Trinity Gardens on the Quayside and expects to recruit 35 more staff to take the complement up to 200.

>> On the move room501 publishing is set to move to new premises following significant recent growth. The North East based contract publishing firm is relocating to the newly developed Quay West Riverside Business Village in Sunderland.

Completed in 2009 and developed by the Adderstone Group, the 48 unit office development is located on the former site of Sunderland’s most famous Austin and Pickersgill shipyard.

NEWS

>> Nano victim Antnano bioscience firm has withdrawn from the Plus Market after one of its two divisions went into liquidation with a loss of 16 jobs.

It continues to run its Newton Instruments Division bought last year but no longer Analytical Technologies (UK) spun out of Sunderland University five years ago.

>> Topping up Brulines the Stockton data group offering tight controls to beer sellers and services also to petrol forecourt businesses, gaming and global oil sectors has bought Energy Level Systems of Leicestershire from OPW Fuel Management Systems.>>

£30 ONLY

ALL INCLUSIVE CONFERENCE PACKAGES

FOR 35+ DELEGATES

+ VAT p

er pers

on

For more information contact Tracy Skinner on 0191 236 2020 tskinner@newcastle-racecourse.co.uk or visit www.newcastle-racecourse.co.uk

15 BQ ISSUE 9.indb 15

BUSINESS QUARTER |SPRING 10 23/04/2010 09:19

NEWS

SPRING 10

Cravens: Creativity conquers

>> Two biggies for Cravens Cravens creative agency is working for English Heritage and the Natural History Museum - work won against competition from London and other regional agencies.

For English Heritage, it is launching perhaps the North East’s biggest contemporary art exhibition of 2010 at Belsay Hall, Castle and Gardens.

For the Natural History Museum it has designed and produced digital signage to guide visitors. Images and animation on it can be changed at the push of a button.

Cathy Atkinson, client services director at Newcastle-based Cravens says: “We’re delighted to be working on such high profile creative projects.”

Cravens’ other clients include Kew Gardens, London Zoo, Alnwick Gardens and Beamish Museum.

>> Software City builder Charles Sellers has the newly created role of professor of software innovation in the development of Sunderland as a Software City.

He will play a key part in delivering the university’s enterprise agenda from the faculty of applied sciences at Sunderland University, encouraging start-ups in software both in Sunderland and the North East generally.

Academia and business will be linked through the university’s software hatchery set up last

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 16

year. Professor Sellers will also work with schools and promote a new MSc in software enterprise.

He says: “It’s important to ask what businesses want, rather than assume what they need.”

He has spent more than 30 years in diverse senior business positions in the UK and overseas. Most recently he was a consultant to Fusion International.

Professor Sellers chairs Castle Morpeth Business Forum and the newly formed Northumberland Business Network with key partners Business & Enterprise North East, the North East Chamber of Commerce, the Federation of Small Business and the regeneration team of Northumberland Council.

>> ArtsBank raided About 4,000 visitors attended the opening weekend of the ArtsBank, Saltburn’s new arts centre, featured in our previous issue of BQ. Sales of paintings and photographs totalled £20,000 including a £1,500 picture.

Bryan Goodall, the Nunthorpe, Teesside, entrepreneur behind the £600,000 project, says ArtsBank is now part of his Hambleton group, not a social enterprise as originally planned. Items exhibited included tributes to Corus’s controversially mothballed steelworks. www.artsbank.co.uk

>> Aggregated crisis Building products firms - aggregates producers, brick, sand and cement manufacturers and distributors - must copy industries and modernise suggests research

by PricewaterhouseCoopers.

PwC found: Nearly 70% of deliveries don’t arrive on time - 30% don’t even arrive on the right day.

Contractors order an average of 15% more materials than they need to ensure workers aren’t made idle by a shortage of products.

About £2.3bn is spent on transporting building materials (about 8-12% of the total building materials spend) yet average delivery vehicle usage is less than half.

And the research concludes that 20% of all

16

UK waste comes from construction.

Mark Webster, PwC partner and Newcastle property and construction leader, says: “These firms can’t afford not to modernise if they want to emerge more strongly from the economic crisis.”

>> Apprentices for you A new state-backed company making it easier for North East firms to employ apprentices has been officially launched.

The North East Apprenticeship Company, detailed in BQ’s previous issue, has been set up by Gateshead Council and Gateshead College, hopefully to place more than 1,000 new apprentices over two years, especially in small and medium size firms.

It will serve the region from Gateshead, removing the risk it believes many smaller businesses currently fear about taking on apprentices. It will employ the apprentices and contract them out to host employers.

It will also handle recruitment, assessment and training, and organise payroll, national insurance and tax.

Contact: tel 0191 490 2453. Email employers@neapprenticeships.co.uk for employers, apprentices@neapprenticeships. co.uk for young people.

>> Boost for film makers The region’s creative media sector has had a £1.22m boost with the prospect of 200 more jobs and 18 new businesses over the next three years. Northern Film and Media has secured the stimulus through the European Regional Development Fund.

Northern Film and Media is running a £40,000 Apple iPad Fund to help film, technology, gaming and digital companies devise moneymaking ideas based on Apple’s iPad. Northern Film and Media: tel 0191 275 5940.

>> Debt collectors flourish The new London-based owner of a North East debt collection firm expects to create 40 more jobs in a >>

23/04/2010 09:19

a productive partnership When managing risk and making complex business decisions you need a law firm that understands your point of view. At Watson Burton we take the time to understand your business objectives and work in partnership to help you achieve long-term success.

To discuss your business needs call our legal experts

0191 244 4444 www.watsonburton.com

BQ ISSUE 9.indb 17

23/04/2010 09:19

Tanfield Lea

Business Centre inspiring business space

Durham’s New £6.8m Office Development

Now Open To be inspired call (01207) 218219 e-mail: andrea.mcguigan@durham.gov.uk web: www.tanfieldleabusinesscentre.com

BQ ISSUE 9.indb 18

23/04/2010 09:19

SPRING 10

doubling of the office space. Debt management and enforcement group JBW Group has bought the 30-year-old National Enforcement Services (NES) of Darlington, to become one of the largest Northern bailiff operations.

JBW was formed in 2004 by a young entrepreneur Jamie Waller. It employs over more than 100 people nationwide already.

>> Broker builds on Teesside Henderson Insurance Brokers, one of the UK’s largest independent brokers, now has a Teesside operation to serve the North East.

Its office with 20 staff at Preston Farm, Stockton, is part of a nationwide expansion.

>> Caravans of dreams A new website has helped leisure vehicle specialist Geist Direct to transform its business model, move to bigger premises, hire more staff and attract customers from across the world.

People from as far as Australia and New Zealand are using the site - at www. geistforlife.com - to browse a range of motorhomes and caravans before travelling to Geist’s flagship site in Birtley to buy a vehicle and make their trip of a lifetime.

Switching from dealers to website selling, Geist has trebled its staff to 12 and relocated from Follingsby to premises twice the size in Birtley. Its service centre in

Lincoln now also operates as a second sales showroom.

Industrial Strength of Gateshead (md, Richard Myers) developed the website.

>> 2,000 at Business Exchange Business Exchange North East attracted 2,000 visitors over two days at Newcastle Racecourse and Conference Centre.

The accompanying North East Business Conference drew in hundreds keen to learn how the region’s businesses can win work on the 2012 Olympic Games in London. Over the next two years the organising committee of the Olympic Games and Paralympic Games (Locog) will procure about £700m worth of products and services.

Jonathan Firth, director of projects and operations at Virgin Galactic, gave an insight at a well attended seminar into the developing industry of making commercially-manned space travel a reality.

Alastair MacColl, chief executive of Business & Enterprise North East, which delivers Business Link services in the region, says: “Besides highlighting the range of products and services available in this region, the many businesses represented showed we are a region packed with innovation and looking for new opportunities to develop and grow.”

A downside of the event is that whereas Norwegian firms are setting up in our region, there are no comparable moves in the opposite direction. Aquafence from Norway, which earlier tested its portable flood barrier

NEWS

on the Tees Barrage, is now shipping £250,000 worth of equipment into the region. In other moves, e-learning company Mintra expects to create 15 jobs, and IT firm Inbusiness is recruiting at Silverlink in North Tyneside.

Before that, Pipetech of Stavanger announced 15 jobs for a North East project. Against that, a Doing Business in Norway seminar at Business Exchange failed to attract anyone.

Mike Pederson, head of the Norwegian Collaboration Centre, says indifference to the Norwegian market was costing firms rich opportunities. The UK buys £12bn of products yearly from Norway but sells only £2bn back.

Ironically Ryanair and Eastern Airlines have stepped up flights between the North East and Norway.

>> Offshore engineers benefit Two Teesside engineering firms serving offshore have secured grants to create 48 more jobs in all.

Precision Engineering, a Middlesbrough start-up on Skippers Lane Industrial Estate, is creating 21 jobs, supported by a £95,000 grant. And PD & MS Energy (Teesside) aims to create up to 27 skilled jobs over two years, backed by a £185,000 grant. It is one of the first firms to benefit from a £60m pot opened by One North East and the Tees Valley Industrial Programme (TVIP) to speed job creation across Tees Valley.

The design and draughting company at Port Clarence, Stockton, is enhancing its IT.

in it together Here at Weir Insurance we don’t just sell policies, we get to know your business – even if that means wearing wellies and a hard hat! By visiting your premises we get to know what your business opportunities are, and more importantly the risks you face. We ensure your policy covers you whatever the weather, which, if you find yourself in need is just the reassurance you want to allow you to keep running your daily business rain or shine.

Contact us on freephone:

0800 281 453

19 BQ ISSUE 9.indb 19

www.weirinsurance.co.uk Making insurance personal since 1972

BUSINESS QUARTER |SPRING 10 23/04/2010 09:19

AS I SEE IT

SPRING 10

Mind your language Second and third languages are a must to win export business, says Julie Morris.

Sales manager of Perry Process Equipment in Newton Aycliffe, she’s also one of North East business’s top linguists – winner of the Export Communicator title in recent North East Exporters Awards.

Her language skills have played a big role in her firm’s 60% leap in sales of used process equipment in Germany, Austria and Switzerland. Julie, a recognised champion of the Regional Language Network, is now turning her skills towards French markets. Here she promotes the value of language proficiency in business.

Which is your favourite language and why?

After living seven years in Germany I’d say that’s become my second home, and German my second language.

What advantages does a company enjoy having staff able to chat to foreign clients in their language?

It gives the customer confidence to converse.

Even one who can speak English prefers negotiating in their own language. By employing staff with language skills, a company can develop relationships internationally with customers they may not have been able to deal with before, and so do more business in markets they might not

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 20

normally have access to, thus helping increase sales and turnover. At Perry, lots of our work is with small to medium sized companies that sometimes aren’t confident dealing in English.

We’ve seen a sales increase over four years in the German and French speaking markets - a result, I believe, of communicating with the customers in their own language.

and employees to learn a language. We can talk in schools about the importance of languages to business, also allow students and teachers to visit companies and see how languages are used in business, or provide work experience placements. We have a local German student part-time who assists with market research in German-speaking markets.

What does being a Language Champion registered by the Regional Network Language North East entail?

It enables me to work with local schools and businesses to raise awareness of the importance of languages. Business Language Champions aim to tackle the decline in language learning and encourage students

Are there any languages you would like to learn besides those you speak already?

Besides having studied French and German at university, I’ve also attended courses in other languages which I would like to continue.

While living in Germany, on the border with Holland, I did a course in Dutch. I’ve also

20

23/04/2010 09:19

SPRING 10

attended courses in Spanish and Polish and would like to develop these further.

Would you recommend every company keen to export to take a linguist onto the staff?

Either that or develop the skills of existing employees. This alternative can also raise employee satisfaction and motivation. We underestimate the importance of language training in the UK and always assume others will speak English. I can’t count the number of French and German customers who’ve told me how impressed they are that someone from the UK can speak to them in their own language, and how they don’t often experience that when dealing with UK companies. By speaking, or even trying to speak, the other person’s language we gain a better reputation in Europe. It has certainly helped our company to do more business.

Which language did you find most difficult to learn, why, and how did you master it?

German probably, due to the grammar. It helps if you can spend some time overseas. This is when you really learn a language. Following A Levels, I spent some time with a company at Werdohl, Derwentside’s partner town in Germany. Even now I try to read German magazines and watch German TV when abroad. The internet too gives access to a lot more help with language training. As part of my degree course, I spent my third year in Reims and Heidelberg. Both placements were very enjoyable for different reasons. I made good friends and am in touch with them today. Recently I’ve joined a German society that enables me to meet other German speakers living in the area.

Which sources benefited you?

After the A Level French and German I continued these languages along with international marketing at Northumbria University. Now I travel in my job so I get the opportunity to practise my languages abroad.

What would you reply to anyone who says: “I’ve never been any good at languages”?

It’s never too late to learn. There are so many ways nowadays. you needn’t just rely on teachers at school or audio courses.

When did you first get interested in languages?

At school I always obtained good marks for languages. I may also have been influenced by my parents having lived in the Netherlands for a couple of years before I was born.

When they returned to the UK my dad also travelled a lot in his job. That possibly made me develop an interest in travelling, new languages and cultures.

Fewer children take any foreign language at schools now; have you a message for parents?

A foreign language gives you more opportunities in the workplace. The world becomes your oyster. If I had children I’d teach them languages very early on. I’ve a number of friends currently bringing their children up to be bilingual - a great idea. Part of the UK’s problem is that we don’t learn a language at school until we are much older. I was 11 before I started learning French and it wasn’t until a year later I started learning German. In continental Europe training in English starts much earlier. I always encourage people to persuade their children to choose a least one

A foreign language gives you more opportunities in the workplace. The world becomes your oyster

21 BQ ISSUE 9.indb 21

AS I SEE IT

language in their options. As far as I’m aware it isn’t necessary for students now to study a language to GCSE level. I don’t know if the Government will change this, but the number of students studying languages to A and degree levels has dropped dramatically, and some courses aren’t available now as demand isn’t there.

You run company tutorials in language and cultural skills to help reception and administration staff welcome foreign visitors; you also create signage to help international lorry drivers calling. What’s the response to language learning from other staff members?

Most are happy to have a few stock phrases to use if I’m out of the office. Many of our team members already have some knowledge of at least one other language.

Merci et danke, Julie.

Julie, from Shotley Bridge, wasn’t lost for words during a recent holiday with her partner in Mexico, either. She said yes to an engagement!

As the boss sees it Julie’s managing director Darren Bentham says: ”To achieve growth, Perry Process had to identify additional markets. Germany, the largest economy in the European Union, seemed a sensible starting point. From a standing start, Julie has used her language and cultural skills and developed good relationships, achieving significant sales from several customers.

“Julie also recruited a German student from Teesside University. All this has been underpinned by opening an office in Dusseldorf, warehousing in Leipzig and a presence at key exhibitions. I can’t emphasise enough Julie’s role in expanding our reach.”

BUSINESS QUARTER |SPRING 10 23/04/2010 09:19

COMPANY PROFILE

SPRING 10

Access is setting the standards in North East training provision

POLISHED OLYMPIC PERFORMERS

Left: Bespoke Concrete Products Apprentice Matty Rich (centre) gets a little help polishing one of the Olympic waymarkers from Production Manager Martin Kay and Access Business Solutions Consultant Mel Taylor. Right: Access Managing Director, Malcolm Armstrong is presented with the TQS award by Business Enterprise North East Chief Executive Alastair MacColl.

C

ONCRETE job offers and specialist training from Access have set a group of North East apprentices on the Olympic trail.

All employed at Bespoke Concrete Products in Prudhoe, they are manufacturing waymarkers, benches and special tree planters for the London games.

One of the region’s top training providers, Access was selected to deliver the apprenticeships in Manufacturing Operations because of the expertise, flexibility and responsiveness it could offer.

Access is the first independent training provider in Tyne and Wear to gain the coveted Training Quality Standard award and become recognised as a top provider of high quality, high impact training to employers.

Martin Kay, Production Controller at Bespoke

Concrete Products, said: “As we expand into new, more specialist markets, we needed to increase our staff and felt apprenticeships offered the best opportunity to do that. With the support of Access we can train the lads in the methods and techniques required.

“Working with Sunderland University and Business Link we’re researching and developing some eco projects to produce much more environmentally friendly concrete products by using recycled raw materials such as glass and ash from power stations. It’s all designed to reduce the carbon footprint.”

Mel Taylor, Business Solutions Consultant with Access, commented: “We are delighted to have secured this new contract and look forward to helping Bespoke Concrete Products develop its workforce and expand into new business areas.

“We worked closely with the company to develop a

THIS PROJECT DEMONSTRATES PERFECTLY HOW INVESTMENT IN THE RIGHT TRAINING CAN HELP A BUSINESS TO DEVELOP AND GROW

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 22

22

training programme which best meets its needs and this project demonstrates perfectly how investment in the right training can help a business to develop and grow.”

Irene Liddle, of Maia HR Solutions, has advised Bespoke Concrete Products throughout the recruitment process and training provider selection.

For further details, information about courses or to arrange bespoke training please contact Mel or Valerie in our Business Solutions team on 0191 490 4651/2, or email info@accesstraining.org www.accesstraining.org

23/04/2010 09:19

SPRING 10

SEVEN

SEVEN DOWN SEVEN UP The North East’s most influential conference has attracted a line-up this year that promises to make business sit up, listen and be inspired Seven inspirational speakers. Seven key Karen Darby made her mark helping Turner, chief economist of HSBC Bank plc in themes. The Entrepreneurs’ Forum seventh consumers save a fortune on their utility bills the City, will offer a fascinating take on the annual conference is about to hit town. with the SimplySwitch price comparison financial climate.

Some of the country’s biggest hitters in service. The business extended its portfolio to His role involves advising lending bankers business are lined up to share their include home phone, mobile, broadband and on economic trends and his views are vital entrepreneurial journeys at the Hilton Hotel in a range of financial products and was sold to to decision makers on a national and Gateshead on May 20. the Daily Mail for £22m in 2006. regional level.

SEVEN – as this year’s conference is headlined Australian-born journalist Jo Elvin launched As always, the conference day will round off – is also a celebration of the Forum’s record of GLAMOUR in 2001, sending shockwaves with a black-tie dinner, awards for the cream outstanding events that have motivated through the women’s magazine industry in of North East entrepreneurship and top-class hundreds of entrepreneurs to set themselves Britain. It is now the market leader, dethroning entertainment. new challenges and grow their businesses.

This year’s speakers include the man who has just saved Reader’s Digest UK from collapse, the woman behind a revolution in glossy magazines and the owner of Britain’s best known furniture retailer.

Carole Beverley, chief executive of the Entrepreneurs’ Forum, said: Follow that: Entrepreneurs’ Forum conference speakers Lord Kirkham, left, Jon Moulton, centre, and Karen Darby “There is no doubt that we have set the bar high with Delegates can register on-line via the standard of our previous conferences. But Cosmopolitan which had enjoyed a 30-year www.entrepreneursforum.net, via the SEVEN promises not only to be significant, it reign as the first choice women’s glossy. conference telephone hotline 0870 850 will be magnificent.”

Edwin Booth is the fifth generation of his 2233, by fax on 0870 850 2277 or by Columnist, author, entrepreneur and now film family to run the Booths supermarket chain, post at The Entrepreneurs’ Forum, director Guy Browning is back to host SEVEN which was founded in 1847. He was a Prince Suite 21, John Buddle Work Village, and introduce the speakers, starting with Lord Of Wales Business Ambassador for the North Buddle Road, Newcastle-upon-Tyne Kirkham, executive chairman of DFS. A West in 2005 and a finalist for the Ernst & NE4 8AW. previous Forum conference appearance Young Entrepreneur of the Year (North). remains one of the most memorable the North North East entrepreneurship will be A range of packages is available, with East has seen. represented in the speaker line-up by Darren prices held at 2009 levels: Jon Moulton comes to the North East fresh Williams, co-founder of Hair X-Tensions Ltd. Conference and black tie dinner from buying out the UK arm of Reader’s Digest The Sunderland-based business was £270 +VAT through his latest investment fund Better established in 2005 to produce 100 per Conference only - £195 +VAT Capital. The founder of Alchemy Partners cent quality hair extensions for a global Black tie dinner and speaker only gained notoriety after his audacious but market, traded through the website £75 +VAT ultimately unsuccessful bid to rescue MG www.buyhair.co.uk Rover when it was put up for sale by BMW. As the country crawls out of recession, Dennis

23

BQ ISSUE 9.indb 23

BUSINESS QUARTER |SPRING 10 23/04/2010 09:19

INTERVIEW

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 24

SPRING 10

24 23/04/2010 09:19

SPRING 10

INTERVIEW

FIT FOR A KING While many great names in British sports manufacturing fade into the past, Hardys remains a favourite with princes and paupers. The full story of how the famous North East angling supplier and manufacturer has defied the trend of decline emerges as md Richard Sanderson talks to Brian Nicholls The demanding fisherman examining the minutest details of the price-tagged rod and reel spotted Richard Sanderson watching. “you must remember,” the angler said, “I’ll probably hold and caress this more than I do my wife.”

That sums up the passion of angling which Sanderson, himself an angler, partly subscribes to. “Fishing is very personal,” he observes. “However, I think if you held your wife 10 hours a day she’d probably tell you to go away.”

Romantic notions give way in any case to one of piranhas in a rockpool on the business side of Britain’s most popular recreation.

Sanderson, 55, is managing director of Hardy & Greys, a great name globally in angling - and one of a fast declining number of English sporting brands of quality and distinction.

BQ ISSUE 9.indb 25

Dunlop has gone, Slazenger too. Holland & Holland and James Purdey & Sons have, like Hardy, retained the traditional value and essence of an English sporting goods brand.

But they serve shooting. Hardy’s is the only premium UK fishing tackle firm surviving.

It’s only now emerging how intensively Hardy & Greys has had to fight to perpetuate its history going back to 1872. Really, there should have been no threat to the company William and John James Hardy set up, albeit initially as sporting and gun sellers till angling converted them.

Hardy rods and reels, with 18 royal warrants and patronages from various European royal families, equate with Bentleys and Rolls Royces in motoring - as Ernest Hemingway and Paul Newman might have confirmed in their time - and Eric Clapton, Chris Tarrant and George

25

Bush Snr might as current ambassadors of the firm now.

Hardys remained a family firm until the early 60s when Harrison & Sheldon, the West Midlands Group heavily into automotives and other engineering businesses such as Webley & Scott and Churchill guns, acquired the Alnwick business, providing necessary investment. In the 1980s Hardy Bros became House of Hardy and, in 2003, it became Hardy & Greys Ltd. During the 1980s and early 90s the company manufactured fly reels for almost every fly fishing company anywhere, besides meeting its own needs. The firm worked flat out, making fly reels in two shifts and a range of rods sold under its own brand. But during the mid 90s the other companies turned to lower-cost suppliers in the Far East. >>

BUSINESS QUARTER |SPRING 10 23/04/2010 09:19

INTERVIEW

SPRING 10

For eight years the company struggled.

“We couldn’t find a source for that lost volume,” Sanderson says. “Once you chase volume with price you’re on the slippery slope.

Revenues fell, profitability fell.”

In 2003 Sanderson “entered the equation”.

Previous experience: Managing director of Black & Decker’s UK operations in Slough, then managing director and vice-president of Mattel UK, the world’s largest toy company.

“I was coming from big boys’ toys to little boys’ toys and back to big boys’ toys,” says the consumer products and marketing specialist with European and US experience.

“It became clear to me the company had to change to improve sales and profitability. Rather than manufacturing-led, it needed to be sales and marketing-led. We had to apply all our

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 26

Catching them young The company works intensively among communities, attracting new and lapsed anglers through an academy of instructors, and other initiatives involving schools and deprived youngsters, and which have led to five becoming fly fishers for England youth teams. One grateful parent said if her son hadn’t had the opportunity he might have ended up in a young offenders’ institution.

26

experience in designing, developing and manufacturing fishing tackle, but then working closely with lower-cost offshore suppliers. That was a huge change. And the business had no sales and marketing experience. On many commercial issues we were naïve.”

Two of the earlier management team remain now. The rest had to be recruited because, as Sanderson says, as the company changed the skill sets required changed. Today’s management team of seven have previously worked with the like of Xerox, PricewaterhouseCoopers, Black & Decker, BAE Systems, Adidas, NEI and Barbour, and are results focused.

“Not all of them fish, but we have a fantastic amount of fishing heritage and experience within the company,” Sanderson points out.

23/04/2010 09:20

SPRING 10

The company single-mindedly pursues its six-point strategy applied since 2003: 1. New product development - “product with innovation”. The design and development specialists include individuals who have fished for England, or certainly successful clubs.

“Through them we now produce up to 500 new products a year. Product is king,” says Sanderson.

2. People development. In 2002 the firm had 97 staff, 67 in manufacturing. Today it’s 104 but only 19 in manufacturing.

Sanderson says: “As we’ve repositioned the business we had to help and encourage our people to change. In some manufacturing we’ve gone for multi-tasking and flexibility; in areas like finance and purchasing, a high degree of specialisation. We’ve had to identify and recruit people with new skills and bring in a lot of graduate trainees to attract younger people”.

Modern apprenticeships are in place. And during the transformation 83 people have been trained to achieve 90 training qualifications in NVQ 1,2 and 3. Three have become MBAs and three qualified in the CIMA accountancy benchmark.

3. International sales growth. Hardy & Greys is a business-to-business, a wholesale-to-retail accounts operation. It now has its own company at Lohne in Germany, at Lancaster, Pennsylvania, in the USA, and exports to the rest of the world from Alnwick.

4. Growth of coarse and carp business - less than 5% in 2002 but last year it gave 42% of revenues and is the fastest growing side of the business. Of the 15 full-time specialist product and market developers, six focus on coarse and carp, bringing the strength and credentials of the brands to bear.

5. Supply chain. “In 2002 less than 10% of our revenues were product we acquired from overseas suppliers,” says Sanderson. “Today it’s over 90%. We’ve had to identify and build relationships with our global supply base, which includes China, Korea, Taiwan, India, Japan, Vietnam, Denmark, and Ukraine.”

Warehousing and distribution had to be replanned.

“For some, the warehouse is back end, an embarrassment even,” he says. “Our warehousing is one of the first things we show

BQ ISSUE 9.indb 27

We’re one of the world’s 10 largest privately held fishing tackle companies. If we double the business again we’ll probably be in the top three

27

INTERVIEW

a visitor. We’re very proud of it.”

The main one, at Cramlington, provides over 56,000sq ft, Lohne and Lancaster another 15,000sq ft each.

“We can offer to over 90% of our customer base, next-day delivery. And to all customers within 72 hours. Last year showed 96% success on fulfilment for all customer orders processed through the business.”

6. Business systems. ”We sell over 3,500 items to more than 40 different countries. So you need solid and easy to access financial and sales information to review where you are doing well so you can capitalise on it, and where you are not meeting plan or forecast, so you can implement corrective action.”

In short, says Sanderson: “We’ve transformed a tired fishing tackle company into a successful consumer products business. We’ve provided real product and marketing innovation from a fishing perspective into the product line.“ Over seven years international business has grown 500%. In 2002 it brought just 20% of revenues. Last year it was 40%. For the first two months of this year it has been 46%.

The 2012 objective: Over half the revenues from beyond the UK and Ireland. Germany, the USA, Scandinavia and Japan are the main markets, with East European markets emerging fast.

“Those guys haven’t found golf yet and fishing is very accessible,” Sanderson laughs. “Also, anglers consistently vote our customer service best in the industry. So we’re also good at looking after our end consumers if they have any problem with a rod or reel, or just need some information or advice.”

By adopting this new business strategy and focused approach, the company has grown by 250% since 2002, a compound annual growth of 14%, while gross margins in that period have increased by 350%, a compound annual growth of 19%.

Whereas all 97 staff previously worked in Alnwick, only 80 do now. But 24 more are at the warehouse and subsidiary companies in Newcastle, Germany and the USA. However Alnwick remains the Spiritual Home of Fly Fishing, to the company and the many millions of its customers worldwide. Its Willowburn centre, museum and shop, is a Northumbrian tourist attraction. >>

BUSINESS QUARTER |SPRING 10 23/04/2010 09:20

--­­

INTERVIEW

SPRING 10

Also, whereas in 2002 the firm was known essentially for its Hardy fly fishing equipment - with 90% of the revenues from product made in Alnwick - today it’s known as a broader-based specialist fishing tackle firm with strong brands.

“We’re not just into fly fishing equipment now but also sea, specialist coarse, specimen carp and predator product,” Sanderson points out.

He’s confident of achieving 10%-plus a year growth going forward. It’s a bold challenge.

“Our objective over five years is to double in size again,” he says. “We’re one of the world’s 10 largest privately held fishing tackle companies. If we double the business again we’ll probably be in the top three”.

Fishing businesses are often considered a cottage industry, whereas Hardy & Greys is up against some huge global players like Daiwa (Japan), Shimano (Japan), Pure Fishing (USA) and Rapala (Scandinavia). And with Japan and the USA two of its strongest international markets, the Alnwick firm is fighting these global rivals on their own ground, showing strength in almost every European market too.

Says Sanderson: “It hasn’t been plain sailing.

In 2001-2 there were effects from foot-andmouth in the UK. We’ve also had a lot of foreign exchange and supply chain issues from the Far East, and now the global recession.” yet during that period where market volume has probably shrunk by 10 to 20% in most countries, Hardy & Greys grew its revenues in 2008 by 13% and in 2009 by 11%.

“Imagine what we could have achieved if we hadn’t been through those market conditions,” Sanderson suggests, adding that now it’s all about taking market share, giving better value for money at the same price or a small premium. That means rods ranging from £50 to £1,250 and reels from £30 to £5,500.

About 2,000 of the 50,000-plus reels sold annually are still made in Alnwick, along with 1,500 of the 80,000-plus rods sold worldwide.

Few companies, Sanderson maintains, can table a reel like Hardy still makes; the Perfect is its most famous salmon reel and the St George trout reel, likened in sports car terms to a classic Morgan, is still made and performs as it did 100 years ago. And for the angler wanting something akin to Porsche or Ferrari, there’s the Performance reels. One to be launched

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 28

We’ve transformed a tired fishing tackle company into a successful consumer products business

Personal Note Richard’s wife Alison is a chartered accountant and company director with business interests in London, North America, Australia and Spain.

They relocated from Buckinghamshire to Gosforth in 2005 and have three children: Lucy, 21, who’s qualifying as a teacher, Katherine, 16, and Fraser, 12.

28

next year has already tackled and landed a 350lb shark in off Florida Keys as part of its testing programme. Over 10 days, 1,000 fish from 5lbs up to that 350-pounder were caught and released. Meanwhile, a new Hardy Uniqua range has been voted Best in Test and Must Buy by Salmon & Trout magazine.

“We’re not perfect but we’re producing the numbers,” Sanderson says. “They’re perfect enough for Prince Charles.”

Also, when Norway’s King Harald V was presented with a new Hardy Angel Salmon rod and reel in 2008, he was heard to remark it was the first gift he’d ever really looked forward to using.

Today the company is still owned by the Harris and Sheldon Group through the Miller family with Michael Miller as chairman. Sanderson says that when the business has been troubled or needing investment the family has given “fantastic” support, where under a public company it might have just disappeared. Faith has been repaid; Hardy & Greys now represents over two-thirds of group revenues.

Incidentally, there is room for compromise on this matter of wives and fishing. Max Hastings, former editor of the Daily Telegraph and war correspondent, says in his newly-published autobiography that his father found three things desirable in life: “A Churchill gun, a Hardy rod and a beautiful wife.” n

23/04/2010 09:20

--­­

Muckle’s Law states: The measure of your success should be through others' satisfaction.

At Muckle LLP, we are recognised as leaders in service excellence through the care and attention we devote to every client. We are lawyers who think like business people and take a commercial view.

"The team at Muckle LLP add real value to our business. They are responsive to our needs and are always able to navigate between the legal constraints in meeting our objectives.

A thoroughly professional firm to work with."

Richard Sanderson, Managing Director, Hardy & Greys Limited

To experience what we are like to work with, call us today on 0191 211 7777.

Muckle

LLP

www.muckle-llp.com

BQ ISSUE 9.indb 29

23/04/2010 09:20

0191 232 7030 www.naylors.co.uk

BQ ISSUE 9.indb 30

23/04/2010 09:20

SPRING 10

COMMERCIAL PROPERTY

New houses built on toffee money, a brush with investment, a powerful regeneration tool under threat and new life for a doublytroubled site... and that’s before the Property Show gets under way

More substantial: Mayor Linda Arkley exorcises ghosts

>> Ghosts exorcised at North Tyneside Ghosts of Atmel and Siemens are finally laid to rest at North Tyneside.

Cobalt Business Exchange and Conference Centre (CBX) has been created from the high-tech factory where the American and German microchip makers briefly in occupation promised so much and, in the end, delivered so little. The building at Cobalt Park has now been officially reopened as 120,000sq ft of serviced office and conference facility by Linda Arkley, elected mayor of North Tyneside.

The Queen opened the site for Siemens’ microchip makers initially. Little more than a year later it closed and production switched to Dresden. US giant Atmel then bought the plant, predicting up to 1,500 jobs in semi-conductor manufacturing. It closed in 2006 having created a mere fraction of the jobs and sold the land and buildings plus disposal of 8” fabrication equipment, for around $124m to TSMC and Highbridge Business Park. A state grant of £28m was reportedly paid back. Atmel’s president Steven

BQ ISSUE 9.indb 31

Laub described abandoning North Tyneside as a major step forward in its transition.

Now as a business exchange there is a range of furnished office suites meeting and presentation rooms.

The conference centre can accommodate 500 delegates with features including a “future proof” telecommunications system.

Mrs Arkley said: “It builds on Highbridge’s success in developing Cobalt Park, creating jobs and attracting inward investment.”

It also enables Highbridge to accommodate smaller firms in Cobalt Park, anything from one employee to 100.

Major employers already there include Banco Santander, Procter & Gamble, Orange and Newcastle Building Society.

Highbridge director Colin Thomasson expects maximum occupation there now to be 800 against the 1,500 once expected.

But as they say in the soup kitchens: “Half a loaf is better than none.”

>> Sites and wealth brighten prospects Demand for factories and distribution sheds of all sizes fell across the North East last year. Take-up was 3.1m sq ft with most activity evident in the first half of 2009, says Lambton Smith Hampton’s National Industrial and Distribution Report.

Availability rose to 14.9m sq ft, 6.9% of all industrial floor space in the region. Of the remainder, 75% is in second-hand space, with just over 3.6m sq ft in grade A accommodation on the market.

Prime rents fell 7.5% on average with secondary rents also adjusting. To secure lettings on second-hand space, flexible terms were required.

Speculative development came almost to a halt with developers only prepared to consider pre-lets/pre-sales. Even then, when looking at design and build, the cost

31

gap between existing and bespoke build has often been too much to justify.

Darron Barker, head of LSH Newcastle, says: “The region performed well in the circumstances. But it’s characterised by a shortage of adequate facilities, which needs redress if the region is to capitalise on demands expected for the big-shed distribution market. Thankfully, several strategic development sites are available to facilitate this.”

Also, DTZ Research estimates £36bn of capital will be available for investment in real estate in the UK this year - double the £18bn transacted in the last 12 months.

Richard Turner, investment director in Newcastle, says: “This weight of money has become very apparent in the North East investment market place over recent months - mainly from UK institutions but with interest from overseas buyers too.“ UK fund managers are apparently rebalancing their portfolios following a rise in value of their equity assets. A number thought to look under-represented in real estate have allocated millions to UK property. Investors and savers are also putting trust in property funds again.

The region did provide one of the largest deals of the year: BAE Systems’ 350,000sq ft acquisition at Radial 64, Washington.

>> Open for business White young Green is warning that it will face ‘significant’ exceptional costs in the year to the end of June, mainly due to the restructuring it is going through, which has already led to the closure of some of its international offices. However, the multidisciplinary consultancy, which parted company with is former chief executive Lawrie Haynes in January after just 18 months and has seen significant board changes since then, says the restructuring is now largely complete.

In a pre-close statement it says contracts it >>

BUSINESS QUARTER |SPRING 10 23/04/2010 09:20

COMMERCIAL PROPERTY has won this quarter include a deal with the London Borough of Merton to project manage £7.5m of new school sixth form buildings ahead of a Building Schools for the Future programme; its appointment as construction design and management co-ordinator in a £1.25bn consortium deal to widen key sections of the M25; and a €4.9m deal to support the European Commission on a three-year development programme in Serbia.

SPRING 10

St James’s Park, Newcastle, on April 27.

The entrance-free Tyne and Wear Commercial Property Show (10am-4pm) is the biggest event of its kind in the North East.

Inward investment agency Tyne and Wear Development Company is the organiser, and the sub-region’s five local authorities Gateshead, Newcastle, North Tyneside, South Tyneside and Sunderland - are sponsoring, along with UK Land Estates.

Sarah Gibson, Twedco’s marketing officer, says: “There’s a huge choice in property, from business parks to industrial units.”

Quorum Business Park, Knight Frank and Highbridge Business Parks will be represented among agents, developers, professional service firms and support agencies taking part. www.commercialpropertyshow.co.uk

>> Boom time for city’s hotels

Cause to celebrate: (l-r) Mark Turner and Peter Stienlet

>> Engineering two into three Consulting engineers Patrick Parsons has bought, renovated and moved into the lower two floors of the six-storey Waterloo House in Newcastle. The team used its own expertise to transform the space into a 4,000sq ft office on three floors. The firm, established in 1964, is now involved in white-water courses, working on Holme Pierrepont, Nottingham, and Tees Barrage, the training grounds for Team GB’s 2012 Olympic kayaking squad.

Patrick Parsons does conservation work on Durham Cathedral and Alnwick Castle, and is part restoring Spanish City in Whitley Bay. It is also bidding to work in North America, Spain and China.

>> Property showcase Tyne and Wear’s showcase for commercial property takes place at

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 32

yet another new hotel is planned for Newcastle’s city centre, this one a £20m boutique. Intercontinental Hotels wants to open the UK’s fourth Hotel Indigo, a fourstar, 148-bed building neighbouring the Old Assembly Rooms in Fenkle Street. If planning is approved, as expected, it could open by next February.

The announcement came as Newcastle rose above Manchester to become the fourth costliest UK business destination in hotel rates.

As details were announced for this replacement of the former Eagle Star building, figures put out show average room rates for corporate visitors to Newcastle have stayed relatively firm compared with other areas.

Business travel agency HRG says the city’s room rates fell only 6% to £95.52 last year, against a 20% drop in Belfast, 15% in Liverpool and 11% in Aberdeen.

The priciest locations are London (£151.45), Aberdeen (£117.95), Heathrow Airport (£101.61), then Newcastle (£95.52) and Manchester (£95.17).

HRG thinks prices in Newcastle fell less because fewer new hotels and extensions have come into play there, thus limiting the market. This will change because

32

other new hotels planned include a four star Crowne Plaza and an £8m Sleeperz in Stephenson Quarter, also a 169-room Sandman Signature at Gallowgate.

At Gateshead, a 200-bedroom Jurys Inn is planned beside the Baltic Arts Centre.

Last year, Newcastle and Gateshead drew in almost 19m visitors, giving hotel occupancy levels of 77%.

Moving in: (l-r) James Pain, of Sanderson Weatherall, Jason Wylie of Newcastle Furniture Service and Ali Graham of Gateway West

>> Home from Homes First occupier into Gateway West - the £30m office and industrial scheme on Tyneside’s Newburn Riverside - is your Homes Newcastle. It signed up with joint agents Sanderson Weatherall and GVA Grimley to acquire 50,284sq ft.

The organization, which manages council homes for Newcastle City Council, is using the space for Newcastle Furniture Service. This provides 8,500 tenants across the North East and yorkshire with furniture and other domestic items.

>> Grainger Town sale Two architecturally-listed buildings in the heart of Newcastle’s Grainger Town, Early Grey House and Barclays House, have been sold for £20m.

The adjoining buildings, dating from 1837, include among their tenants Grant Thornton and Barclays, and cover some 90,000sq ft of prime space. Matterhorn Capital, which owns Earls Court and Olympia exhibition centres in London, teamed up with Palos Investment to make the purchase.

23/04/2010 09:20

SPRING 10

>> Handy for bus and train

COMMERCIAL PROPERTY

Collective Design has been making the transformation for Principle Leisure, which now has seven venues across the North East, plus three venues in Nottingham and Sheffield, and Popolo Events, a subsidary outdoor activities organiser.

Vico Properties has appointed King Sturge as joint agent to work with BNP Paribas Real Estate in marketing its Sunderland city centre office development, City Green, beside Park Lane transport interchange.

Up to 41,000sq ft of Grade A office space and a new bar/restaurant feature. City Green is part of a larger development that includes new apartments. Simon Taylor, associate of King Sturge, reckons the offices’ proximity to the interchange will spur interest.

>> Polishing up The Forge

>> Aspiring to change One of Sunderland’s city centre bars has a new name and a new look following its takeover. Aspire, at Low Row, is now part of the Principle Leisure180x120 NE group. 1/4/08 165530 TWDC Eutech

Convenience retail features in a £5m refurbishment at The Forge in Sunderland.

U Student (Sunderland) Ltd, trading as u-student.com, has bought two major halls of residence from the city’s university.

It is upgrading the accommodation and building new social and retail areas.

Northern Developments (Cumbria) of Carlisle is the builder.

12:11 Page 1 Sintons LLP’s commercial group and Grant

Thornton accountants worked on legal and financial aspects, and the 552-bedroom accommodation will be managed over 10 years.

>> Surge in printed circuits Opsol UK, a contract electronic manufacturer, is relocating to larger premises on Admiral Business Park in Cramlington and creating up to 15 new jobs.

The firm, a specialist in design and production of bespoke assemblies for printed circuit boards, will have a 14,000sq ft facility and a new assembly line in its £350,000 project, part driven by a £75,000 grant from One North East. >>

tyne wear development company

developing tyne wear companies for 20 years

“ They really understood how to assist a world-leading supplier of technology creative content.”

Darren Jobling, Director of Business Development, Eutechnyx, Game Development Studio, Gateshead

Grants and Financial Assistance Tyne and Wear Development Company can provide detailed advice on a project's eligibility for financial assistance and help you to assemble an appropriate package of support.

Tel:

0191 516 9099 www.tyne-wear.co.uk

Site and Premises Search

BQ ISSUE 9.indb 33

Grants and Financial Assistance

33

Supporting Information

BUSINESS QUARTER |SPRING 10 23/04/2010 09:20

www.quorumbusinesspark.co.uk

Join the market leaders.

Quorum has a lot to shout about.

We’re the business park of choice for some of the country’s top companies. And we’re still building.

Now available. 246,000 sq. ft. of built office space, with 330,000 sq. ft. under construction.

Reputation. Chosen by some of the country’s top companies, including IBM, Convergys and now Tesco Bank.

Location. Four miles from Newcastle City Centre, close to the Metro, A1 and airport.

Amenity. Tennis courts, 5-a-side football, boules, shops, nursery and events.

Sustainability. BREEAM excellent, B-level EPC, excellent public transport.

5 YEARS RENT-FREE* *Based on £16.95 sq. ft. Lease conditions apply

BQ ISSUE 9.indb 34

23/04/2010 09:20

SPRING 10

COMMERCIAL PROPERTY

>> CPOs losing ground

Moving in: (l-r) Jim McIntyre (1NG) Stuart Hopley (Robertson development) and Andrew Dixon (NGi)

>> New home for agencies Two agencies have relocated to Gateshead Quays’ newest landmark offices, Baltic Place.

NGi, the marketing agency for NewcastleGateshead, and NewcastleGateshead’s development company 1NG have jointly signed a 10-year lease for 9,500sq ft to house 32 staff.

Banking giant Santander and global shipping insurer North East P&I are already there.

Over a third of the £35m development, created

by South Shore Developments (a joint venture of Robertson Group and City and Northern) is now let. It offers 131,000 sq ft in all.

>> Never mind the scenery Magnificent public views up the Tyne will vanish shortly. Temporarily created green space at South Shields ferry landing is being built on to provide a four-storey business centre serving a BT subsidiary of 500 employees.

The centre, part of a £184m strategic partnership deal between South Tyneside Council and BT, has been permitted in return for BT’s delivery of a number of council services promised to lead to savings of £28m over 10 years and a creation of 1,250 jobs.

Similar arrangements with other councils are expected to run from the same building, designed by +3 Architecture of Newcastle.

>> Business park deals Cottam brush firm, recently relocated from Sunderland, and Manchester-based investment firm Latate have struck £2m worth of separate investment deals at Monkton South Business Park in Hebburn.

BQ ISSUE 9.indb 35

A marked fall in the use of compulsory purchase orders (CPOs) over 12 months, taking the numbers down to their lowest for several years, threatens their future as a tool to help deliver regeneration in the region.

CPOs are used by local authorities and other bodies to acquire land compulsorily, Planning and often to ensure that 120 redevelopment and regeneration initiatives 100 can go ahead. But 80 law firm Dickinson Dees reports CPO 60 usage down by almost 40 50% against 2008 reflecting the economic 20 downturn.

Frank Orr, planning 0 2003 2004 expert at Dickinson

The future of the Compulsory Purchase Order is under threat >> Shopping precinct fetches £10m UK Land has sold Blaydon’s shopping precinct for £10.1m to London-based Rockspring Property Investment Managers.

The centre, which has an existing planning consent for a 65,000sq ft extension to a supermarket, also has 40 other retail units and four office suites.

>> Sweet surrender A £6m scheme is under way to convert the disused Maynards toffee factory into a home for creative business at Ouseburn in Newcastle. Space is expected to attain £19 per sq ft. Work is also to start on 100 new town houses on the site.

35

Dees, has drawn on seven years’ statistics and fears not only the resource could be lost but also the skills needed to promote them. He makes the point in a report for the Northern Way partnership of regional development agencies.

Housing CPOs

Housing Planning

2005

2006

2007

2008

2009

Woven team: (l-r) Elizabeth McGrath, Callum Jones, Chris Hayes and Garry Lowes

>> Art finds a home Recent openings in The Gates shopping centre at Framwellgate Bridge in Durham City include Woven - a specialist in designer labels, bespoke tailoring and accessories and an arts collective.

Woven designer and retailer Chris Hayes’ new brand, a launch coming 15 years after he co-founded the Van Mildert brand in which he is the only one of the three founders still involved.

The arts collective Empty Shop, whose 20 shows in vacant premises across Durham have attracted 10,000 visitors over nine months, now has a permanent headquarters - in former Greggs premises. It provides shared studio space and gallery facilities to display work by North East artists.

BUSINESS QUARTER |SPRING 10 23/04/2010 09:20

COMPANY PROFILE

SPRING 10

The annual RICS North East Renaissance Awards highlight the tremendous work being carried out in the region’s property and construction sectors. Although a firm fixture in the diaries of many property professionals, there were obvious concerns for this year’s event in the current economic climate – which turned out to be completely unfounded!

500 PROPERTY PROFESSIONALS CELEBRATE WITH RICS NORTH EAST

T

HE credit crunch and recession may have hit the property and construction sectors hard but the mood was upbeat when 500 chartered surveyors and colleagues met to celebrate at the RICS North East Renaissance Awards held in April.

Jennifer Welch, Operations Director, RICS North said: “The awards have been going for seven years and are known as the region’s annual property ‘Oscars’. Amazingly, considering recent economic circumstances, we had a record number of entries and the night at Newcastle’s Civic Centre was a sell out. The Renaissance Awards provide an invaluable opportunity to celebrate and showcase the North East’s exceptional projects and the talented people behind them.”

There were 79 entries for the eight category awards and the panel of independent judges short listed 56 projects. The top title of RICS North East Project of the Year 2010 went to the RSPB Saltholme Wildlife Reserve and Discovery Park Visitor Centre, at Port Clarence on Teesside.

Chair of the judges David Furniss, a director at BNP Paribas Real Estate in Newcastle, said: “This project transformed 1,000 acres of redundant estuary land in the middle of an industrial area into a strongly performing tourism centre. Its new £3m visitor centre achieved a BREEAM Excellent rating and the local community has been fully integrated into the operation of the project.”

The team behind the winning project, which also took the RICS North East Tourism & Leisure category award, included architects Jane Derbyshire & David Kendall Ltd, developer Lumsden & Carroll Construction and surveyors Turner & Townsend.

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 36

RICS North East Renaissance Awards 2010 Project of the Year Winner: RSPB Saltholme Wildlife Reserve and Discovery Park Visitor Centre, Teesside

THE NEW £3M VISITOR CENTRE ACHIEVED A BREEAM EXCELLENT RATING AND THE LOCAL COMMUNITY HAS BEEN FULLY INTEGRATED INTO THE OPERATION OF THE PROJECT The regional winners from four of the North East award categories – Sustainability, Regeneration, Community Benefit and Building Conservation – are automatically entered into the national RICS Awards, where they compete against other leading projects from across the UK. This also has an international element as it accepts entries from around the world.

Last October, one of the North East winners went on to win an ‘international’ category at the RICS Awards in London. Sacriston Surgery, in County

36

Durham, beat off strong competition to take the Community Benefit Award and judges said: “This surgery is an excellent example of a building that meets and solves the demands of the local residents.”

Sponsors and supporters of the North East awards were Estates Gazette, Santander, Newcastle Civic Centre, Northumbria University, R&B Group, Sika Sarnafil, Ward Hadaway and Brakes.

The full results and shortlisted schemes are as follows:-

23/04/2010 09:20

SPRING 10

COMPANY PROFILE

BUILDING CONSERVATION

SUSTAINABILITY

DESIGN & INNOVATION

Winner: The Bowes Museum, Barnard Castle

Winner: Day Services Outpatient Suite at St Oswald’s Hospice, Newcastle

Winner: Roundhouse, Prendwick Farm, Alnwick

Shortlist Beavan Building, Newcastle Bede Academy, Blyth Blyth Beach Chalets, Blyth, Boho One, Middlesbrough Outpatient Suite at St Oswald’s Hospice, Newcastle RSPB Saltholme Wildlife Reserve and Visitor Centre, Middlesbrough Tanfield Lea Business Centre, Tanfield Lea

Shortlist Bowes Museum, Barnard Castle Clayton House, Jesmonnd Newcastle City Library, Newcastle Preston Farm, Stockton on Tees Roundhouse at Prendwick Farm, Alnwick The Work Place Industrial Learning Centre , Newton Aycliffe Sanderson Arcade, Morpeth

Shortlist Bowes Museum, Barnard Castle Cooper’s Studio, Newcastle The Esplanade, Sunderland Great North Museum, Newcastle Irvin Building, North Shields Lambton Castle Building Fabric Repairs, Chester le Street Pasmore Apollo Pavilion, Peterlee

REGENERATION Winner: CitySpace, Sunderland Highly Commended: Quay West Riverside Business Village, Sunderland Shortlist Barracks Building, North Shields CitySpace, Sunderland Quay West Riverside Business Village, Sunderland River Quarter 2, Sunderland Tanfield Lea Business Centre, Stanley Trinity Square & Court, Hartlepool Westgate Road, Newcastle, Newcastle

COMMUNITY BENEFIT Winner: Newcastle City Library Highly Commended: A66 Long Newton Grade Separated Junction Shortlist A66 Long Newton Grade Separated Junction, Stockton on Tees Blyth Links, Blyth Newcastle City Library, Newcastle Outpatient Suite St Oswald’s Hospice, Newcastle Rose Lodge, Hebburn The Work Place, Industrial Learning Centre, Newton Aycliffe RSPB Saltholme Wildlife Reserve and Visitor Centre, Middlesbrough

RESIDENTIAL COMMERCIAL

Winner: Irvin Building, North Shields

Winner: Boho One, Middlesbrough Highly Commended: Sandersons Arcade, Morpeth

Shortlist Beavan Building, Newcastle Bishopfield, Bishop Auckland Castle View, Kielder Chapel Row, Ferryhill Station Friars Wharf Apartments, Gateshead Irvin Building, North Shields Preston Farm, Stockton on Tees

Shortlist Baltic Place, Gateshead Battle Hill Retail Park, Wallsend Boho One, Middlesbrough Clayton House, Newcastle The Media Exchange, Newcastle Quorum Business Park, Newcastle Sanderson Arcade, Morpeth

TOURISM & LEISURE Winner: RSPB Saltholme Wildlife Reserve and Discovery Park Visitor Centre, Teesside Highly Commended: Great North Museum, Newcastle Shortlist Blyth Beach Chalets, Blyth Bowes Museum, Barnard Castle Great North Museum, Newcastle Playhouse Theatre, Whitley Bay Replica Colliery Lamp Cabin, Beamish RSPB Saltholme Wildlife Reserve and Visitor Centre, Middlesbrough Waves Leisure Centre, Whitley Bay

THE RENAISSANCE AWARDS PROVIDE AN INVALUABLE OPPORTUNITY TO CELEBRATE AND SHOWCASE THE NORTH EAST’S EXCEPTIONAL PROJECTS AND THE TALENTED PEOPLE BEHIND THEM

37 BQ ISSUE 9.indb 37

RICS PROJECT OF THE YEAR 2010 Winner: RSPB Saltholme Wildlife Reserve and Discovery Park Visitor Centre, Middlesbrough Shortlist Bowes Museum, Barnard Castle CitySpace, Sunderland The Outpatient Suite at St Oswald’s Hospice, Newcastle Newcastle City Library Boho One, Middlesbrough The Roundhouse, Prendwick Farm, Alnwick The Irvin Building, North Shields RSPB Saltholme Wildlife Reserve and Discovery Park Visitor Centre, Middlesbrough

For more information on the RICS Renaissance Awards contact Sue Doberman T +44 (0) 191 221 0359 E sdoberman@rics.org

BUSINESS QUARTER | SPRING 10 23/04/2010 09:20

INTERVIEW

SPRING 10

OPEN FOR BUSINESS The newly-reorganised Durham County wants to open a new chapter in relations with the private sector and plans a rebrand to speed the opportunities. The new development director Ian Thompson talks to Brian Nicholls More than 1,200 people a year are launching their own businesses in Durham County.

More than 2,000 retail jobs could be on their way, too, if three Tesco openings go ahead.

And 400 advanced jobs could be coming up at NetPark, the county’s regional centre of high-tech research and business - plus 200 at GT, particularly valued at Peterlee as helpful to a jobs blackspot.

Still many more jobs will be needed, of course, but the 3,800 outlined here suggest a will and a way - early shoots of a brighter employment bloom for the county still suffering more than many from the collapse of coalmining and steelmaking.

If Durham County had a tourist spend like that of Lincolnshire - hardly top of many visitors’ wish lists - the county would have a further 1,500 jobs. And there’s confidence such a parity can be attained.

After one year as an all-embracing eight-into-

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 38

one authority, brought about by reorganisation of local government, the message from Durham’s enlarged county council is that inward investment, and attracting new companies while supporting existing local ones, will be the bastions against still troublesome rundowns of times past and the Whitehall cutbacks to come.

“We’re open for business,” is the council’s pledge in this exclusive BQ interview with Ian Thompson, a recently appointed corporate director, who brings 20 years’ experience to his remit of regeneration and economic development. Relations will be cultivated with the private sector, key agencies and other partners to appeal to private investment.

A surge of tourism is one key aim.

“We believe we have the backcloth, so we’ll invest in branding, in the place and in events,” says Thompson, who’s confident the private sector will enter partnerships to nurture

38 23/04/2010 09:20

SPRING 10

supportive facilities and amenities, giving benefits within four years.

An existing tourism partnership already works with Business Enterprise North East, and success of the recently-opened Radisson SAS Hotel in Durham City is encouraging.

Good news too awaits local business people who appealed in a recent BQ Live Debate for easier access and fairer consideration in the award of public sector contracts. Thompson acknowledges this.

“How we spend locally, that’s something we’ve been working on, procurement processes and practices, so that local businesses can find a better way in,” he says.

“Procurement can be a labyrinth, especially for small business. We can do something to help.”

Given the county’s £1bn organisation already spends about £600m locally, this looks a lead worth pursuing. County Hall is already cosying up to existing big business, automotive heavyweights like Caterpillar (95% of its land vehicles exported), TKA Tallent (1,000 employees), TRW (500 employees) and GT whose new £10m investment to produce exhaust transmissions has brought a jobs increase.

Thorn Lighting too is precious. It hasn’t only safeguarded 600 jobs and championed local skills by keeping its new £32m plant within the county (Factory of the year in a Cranfield business survey), but has also combined manufacture with innovation, siting its Academy of Light there too.

Aware of the county’s slide in GVA wealth ratings recently, the council now intends to see Durham as a county even more attractive to live in, work in and spend time in. Leeds-based developers as well as local housing developers are taking note.

Thompson believes, reasonably, that if Durham County rather than the South East suits Richard Kirk, pioneer of electroluminescence, and his firm Polyphotonix, then more frontier-pushing businesses can be persuaded to follow.

Suitable sites exist, also pretty countryside to give appropriate lifestyle accompaniment - all this, and England’s most beautiful cricket ground with the most successful county cricket side playing on it. A branding of Durham, city and county, is about to emerge.

BQ ISSUE 9.indb 39

It requires, though, a brighter shine on 14 market-town centres and shops; a fuller range of housing from executive to socially rented, and more attractive schools. Educational standards have already improved; the county is now one of the country’s top 20 authorities in GCSE attainment, suggesting on the tick sheet of enquirers an availability of suitable labour.

Its the school fabric that’s getting attention; some £500m being spent over 10 years to update all major secondary schools. Durham Johnston has had the pilot upgrade; Seaham, Stanley and Consett all have planning consent.

Upwards from there, the county can cite five universities easily-reached for research support and advanced training to potential corporate newcomers, also a chain of colleges to meet other skill requirements. With Tesco in mind, the authority is already working with them to step up retail skilling.

Manufacturing is considered crucial, particularly in advances such as low carbon economy, printable electronics, photovoltaics.

Automotives too - though Thompson acknowledges: “This will only remain a growth sector if we continue to research and develop so that the companies can move on.”

Existing business and industrial parks offer diverse, attractive and widely located options: DurhamGate at Spennymoor, Amazon at Newton Aycliffe, Durham Green at Bowburn, Spectrum at Seaham and Bracken Hill at Peterlee.

DurhamGate will give 440,000sq ft of business space including a prelet of 26,000sq ft enough to accommodate 2,000 jobs - and 380 homes. Amazon Park at Newton Aycliffe is both a manufacturing and logistics location.

At NetPark, Sedgefield, another 60,000sq ft should be ready to occupy within two years.

“That’s significant,” Thompson points out.

“NetPark is for cutting-edge and technologybased firms and it’s time now for some start-ups there to move into manufacturing.

“We should see benefits as NetPark changes from simply a technology park to one where large businesses employing local people are also developing. Three new buildings now exist for that purpose, that’s a big advance, for we’re also encouraging the small businesses there.”

Durham City, a World Heritage Site, is to >>

39

INTERVIEW

Procurement can be a labyrinth, especially for small business.

We can do something to help

IT will pull the county together The enlarged Durham county council won’t try cutting costs by simply sucking its widespread staff into County Hall to fill a new building at the back.

Instead, it plans five main sub-centres and perhaps nine more drop-in points, giving face-to-face access to its public throughout the county, and direct IT links with County Hall.

Another IT pilot is running at Barnard Castle, hopefully for broadband to serve the needs of rural businesses.

“The Government struggled with rural broadband. For us it’s a major economic driver and we’ve got to crack it,” Thompson pledges. His other pledge is a simplified access to business support.

“Our feedback is that people sometimes are left confused. They need to know who to talk to. We must do that along with Business Enterprise North East. If I were to start a business I’d want one phone number and the same person to talk to each time I ring.”

The aim is to have this in place by summer.

BUSINESS QUARTER |SPRING 10 23/04/2010 09:20

INTERVIEW

SPRING 10

This big: Ian Thompson says Durham is open for business, particularly in manufacturing serve as a catalyst. Its recent failure to become the nation’s city of culture is put down to experience. As Thompson says: “Cities we were up against have a stronger track record and are bigger. you can understand the Government might want to go with a larger city ... lower risk. But we got good feedback.

“Durham City is well known from its position on the East Coast rail line between Edinburgh and york. We must attract people in then disperse them to the rest of the county. We’re aiming for festivals and other events here to make the city second only to Edinburgh for street festivals.”

A recent highly-successful international light festival and mystery plays around the city from this May – befitting a great Christian centre – are foundations to build on, as are a book festival, the annual regatta, and Durham Miners’ Gala. Traditional themes, says Thompson, can be made meaningful to visitors today. Community support for culture stood out when 38,000 signatures backed the culture bid, only 7,000 fewer than supported Sunderland’s bid to host World Cup football.

Bishop Auckland, Barnard Castle and Consett, where demographics and town centre appearances are changing already, also have visitor and residential attractions to develop;

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 40

recent examples being a Consett in Concert event and an arts festival at Barnard Castle.

The Pennine axis of Stanhope, Kilhope and Alston strikes Thompson as one of the country’s most underdeveloped tourist areas.

“It’s fantastic – a real nugget,” he enthuses, with the experience of earlier having been head of regeneration and development in york. “The fells behind the site are dramatic, and anywhere else people would take your arm off for it.”

Personal Note Ian Thompson’s earlier posts include head of regeneration and development at york, head of planning and development at Basingstoke and Deane, head of regeneration and economic development at Stockton, and group director of regeneration and development at Calderdale.

At Stockton and Calderdale he was responsible for tourism, which he will also oversee in Durham County.

40

Uncertainty and mixed local opinion still surround this Weardale area. But the county is working with regional development agency One North East to resolve an outcome for the site of the old cement works at Eastgate. Something positive is expected within 12 months.

Proposals have included small industry, eco-housing and a resort for health as well as extreme and winter sports, and general outdoor adventure. Thompson thinks local enthusiasm for some proposals may lag because not enough is known yet.

“Ideas being circulated work elsewhere,” Thompson says, “and discussion has intensified. I expect developer interest once confidence returns to the market. you could do lots more for tourism in the county without adverse impact.”

Weardale’s re-opened railway, driven by American enterprise and possibly to be partly underwritten by freight business, is expected to develop like the North york Moors line.

And, with roadbuilding unpopular at Whitehall, railways could also help people who may want to work outside the county for better prospects.

Besides two new projected rail halts, a Bishop Auckland upgrade and a new stop on the East Coast main line in East Durham, a general re-opening of the Leamside line would bring Nissan’s factory at Washington closer - and the Tyne Wear Metro at Heworth. In the other direction, the proposed Tees Valley Metro could also be connected.

It’s early yet to say how many of the 3,000 business start-ups in two-and-a-half years will survive long-term. But in deprived areas (former coal communities largely) a local enterprise growth initiative (Legi) is at work, and the voluntary sector continues to foster self-employment.

The council itself, which employs 23,000 (certain to shrink, surely, as public sector cuts bite) has about 190 jobs advertised at the moment and has taken on about 60 apprentices, mostly in neighbourhood services.

“We’ll have to see the impact of the recession, of course,” Thompson admits.

“But there are bags of opportunities here for people who maybe never thought of starting their own business.” n

23/04/2010 09:20

Understanding Finance

Free business finance workshops This unique series of finance workshops, publicly funded through Solutions for Business, will cover all aspects of business finance in a totally new and engaging way.

Workshops are happening throughout the North East.

For more information or to register for your free place visit

www.financeworkshops.co.uk

Business Link can give you independent advice and guidance or help you find the best assistance for your business.

Visit your local Business Link www.businesslink.gov.uk/northeast or alternatively give them a call on 0845 600 9006.

Learn from each other.

“If I hadn’t become a member of the Entrepreneurs’ Forum, I don’t think I’d ever have had the confidence to go for our recent acquisition.”

Derek Curtis, founder of Bond Solutions who grew the business by acquiring On Site Marketing Solutions.

To read more about Derek’s story visit www.ifwecanyoucan.co.uk

There are plenty of people out there who will share their time generously. It’s this generosity and altruism that the Entrepreneurs’ Forum is built on and is attracting interest from many quarters around the rest of the country.

For more information call 0870 850 2233 or visit www.entrepreneursforum.net

BQ ISSUE 9.indb 41

23/04/2010 09:20

COMPANY PROFILE

SPRING 10

With almost 20 years in the conference and events business, R&B Group has been heavily involved in helping businesses look and sound great. Now offering a far wider solution, the firm is dedicated to enabling companies to simply communicate more effectively.

DEDICATED TO COMMUNICATING YOUR VISION

E

STABLISHED in 1991, R&B Group quickly found success in the audio-visual hire market. Through a couple of key acquisitions during the late 90’s the range of services was quickly enhanced to offer a single company solution for lighting, sound, projection, conference equipment, staging, scenery and video production. Owning such a diverse range of equipment in the North East gave the business a competitive creative edge and market share steadily grew. The range of projects calling on R&B’s services was vast, including awards dinners, conferences, product and car launches, fashion shows, outdoor lighting and projection, training programmes, corporate videos, exhibition stands… in fact, just about anything with an audience!

Today, R&B employ over 25 full-time staff, with a range of creative disciplines enabling the fulfilment of the wide variety of challenges constantly thrown at them. Based in branches in Newcastle and Harrogate the firm regularly works throughout the UK for a host of local, regional and national clients – a conference for Northern Housing in York, an education road-show calling at London, Sheffield and Basingstoke, an exhibition and gala awards event in Leeds and a video shoot in Melton Mowbray and Bradford – just a typical busy week at R&B! Explaining exactly what we do is a little tricky confesses Antony Crerar, Development Director.

But helping businesses communicate better is really at the heart of it. The range of services has grown steadily over the years as we have widened our offer. It’s well summed up if you look at our straplines over the past 10 years! First we were “Technically the best event group in the North!”, then we became “the event production specialists” and now we are dedicated to “communicating your vision”.

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 42

Above: The R&B Group team in Newcastle.

With 3 key areas of business; events, production and communication, R&B Group are perfect partners for any organisation needing to get a message heard … or seen! Events are all about the equipment, people and processes needed to stage professional, memorable events. It encompasses set design and build, which R&B is proud to offer from dedicated premises, as well as the actual equipment. And they have certainly built a reputation for delivering the wow factor by combining these elements with great people.

Production is the part of the business where images, words and ideas come together and are crafted into video programmes, animated on-screen graphics or printed materials. Design is at the heart of much of this company’s output.

And great design, delivered by their own staff has given them a major creative advantage. Being able to link the physical set deign to the on-screen graphics to the printed literature to the overall communication objective means that everything works together and supports the vision. It’s not rocket science, but having all these resources under one roof is, the firm claims, the clever part.

And it’s the final pillar of the R&B services,

42

communication, which helps harness these resources. Whilst many AV companies are happy to hire a 10’ projection screen, at R&B they check that is the best solution – and not just in terms of size. Where it makes sense, R&B will aim to understand the overall aims and objectives of a particular event and work to maximise all opportunities for clients. That means discussing the format and content, planning the use of the venue, preparing presentation materials, training the presenters and even sourcing the compare!

Everything they do is aimed at “communicating your vision” and they do it with pride, professionalism and pleasure.

Image

Tel : 0191 2763999 www.rbgroup.co.uk

23/04/2010 09:21

Influencing business, professional policy and practice Newcastle University Business School

Image courtesy of NewcastleGateshead Initiative

Executive MBA | MBA | Executive Education

www.ncl.ac.uk/nubs Email: juli.campey@ncl.ac.uk

BQ ISSUE 9.indb 43

23/04/2010 09:21

COMPANY PROFILE

SPRING 10

Ambitious SMEs from across the region are looking to tap into the North East’s £125 million investment ‘super-fund’. The Finance for Business programme opened for business in January – with the deal pipeline open and the first investments expected within weeks.

DEMAND FOR INVESTMENT FUNDS STRONG

F

INANCE for Business North East is a groundbreaking suite of investment funds designed to drive future economic growth. As the first of its kind in England, the ‘super-fund’ will blaze a trail over the next five years by providing vital investment to hundreds of fast growing SMEs. The programme is managed by North East Finance, which is delivering Finance for Business on behalf of its funding partners One North East, the European Investment Bank and European Regional Development Fund.

Andrew Mitchell, chief executive of North East Finance, said: “Interest in the programme, as we expected, has been strong. We’re delighted with the start that’s been made and excited to be the first of the English regions to have a programme like this in place.”

The aim is to invest in 850 growth businesses across all sectors through loans and equity investments before 2014. Ambitious companies based here can seek funding from six different funds. These are managed by five different fund managers and target funding at companies from different sectors and stages of growth.

FUNDS IN FOCUS In the first in a series of profiles, the spotlight falls on two of these funds: the North East Proof of Concept (PoC) Fund and the North East Accelerator Fund.

Designed to support businesses at an early stage, the PoC and Accelerator Funds are managed by NorthStar. PoC focusses specifically on technology-based companies, while the Accelerator Fund has a technology bias but is open to start-ups in any sector.

The £15million PoC Fund aims to build on the hugely successful fund run by NorthStar over the last five years. It will work closely with the region’s universities, Centres of Excellence and start-ups to drive forward projects with the potential to create significant commercial opportunities. A key focus

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 44

Above: The team at North East Finance manage the Holding Fund.

THERE’S BEEN A GROWTH IN POC OPPORTUNITIES OVER THE LAST FIVE YEARS AS MORE PEOPLE HAVE RECOGNISED WHAT THESE FUNDS CAN DO will be growing sectors including energy, process industries and health sciences.

Dr Richard Exley, PoC fund manager for NorthStar, said: “The PoC Fund is a very similar animal to its predecessor. The new fund has the added ability to follow on with additional equity investment and we can really build with this.

“There’s been a growth in PoC opportunities over the last five years as more people have recognised what these funds can do. The pipeline is already very strong and we expect to draw down the funding for the first deals in the next few weeks.”

The Accelerator Fund has £20million to invest in high growth, innovative early stage businesses in any eligible sector. Investments will be up to a maximum of £750,000 at the start-up and seed capital stages. The fund will also seek to maximise co-investment with privately funded co-investors.

Alex Buchan, investment manager at NorthStar, explains: “There’s a huge amount of opportunity with the Accelerator Fund and we’re ready to move with the deals. It’s aimed at those with real

44

growth potential across many sectors. One of the great things about the fund is its flexibility and its ability to invest smaller amounts early on without co-investment.

“The whole programme is a great boost for the region. It’s incredibly constructive and has huge potential for businesses.”

Further details about the programme can be found at www.northeastfinance.org

23/04/2010 09:21

BQ ISSUE 9.indb 45

23/04/2010 09:21

INSIGHT

SPRING 10

THE BIG LIFT You might ordinarily expect a cranemaker to be almost on its knees in these testing times.

But Liebherr is no ordinary firm as its awardwinning 97% exporting feat on Wearside proves. Brian Nicholls traces the success formula that md Ralph Saelzer applies

Who needs cranes in a recession? Lots do apparently, for Liebherr Cranes, now Sunderland’s only heavy industry group, continues to ratchet up sales and keep 204 workers busy to the extent of winning a Queen’s Award for a 97% export achievement.

Liebherr In many ways epitomises a good business. Part of a European family-owned group employing 32,000 at 100 locations in all, it has Sunderland as one of 30 sites in manufacturing. The rest provide service and sales.

Managing director Ralph Saelzer points out almost apologetically, one feels, that his riverside operation has only a fraction of the numbers who once worked on the same

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 46

46

Deptford site when one of the nation’s oldest shipyards occupied it. But Liebherr’s prospects look secure as it runs the gamut in crane building - construction cranes, mobiles and crawlers. you name it, the group, in its line, surely does it. Maritime workhorses are its forte. One of the first things new apprentices are told is that Liebherr builds one in four of all cranes for the world’s ships, mostly at Sunderland.

The Queen’s Award is particularly good for business in the Far East where, Saelzer says, the accolade is especially respected. Singapore and South Korea are major customers and more than 30% of product goes to China. But German, Irish, Turkish and Dutch markets are also strong, and Liebherr cranes will also be readily seen along Britain’s coastline.

Speaking of the entire group, Saelzer can say: “We’re countering recession in different ways.

We’re highly diversified, with many different products. And Sunderland, being in the maritime division, is not doing badly – all in all, we’re quite well off, quite stable, working 24/7 again to keep up demand.

“The maritime section produces ships’ cranes, offshore cranes and harbour mobile cranes.

We ourselves have felt the pinch - some cancellations or postponements - but offshore industries are picking up again. So we can balance these gaps with fresh orders.”

23/04/2010 09:21

SPRING 10

Significantly, the pound’s falling value does little to stoke Sunderland’s export excellence, because the business works in euros. It gets all its main components and raw materials from mainland Europe - mainly Germany, Switzerland, Austria and Norway. So sterling only appears in wage costs and some articles and services bought within the UK. Sunderland builds cranes in the 30 to 40 tonne range, and also the MTC 6000 - at 150 tonnes “a beast,” as Saelzer describes it.

Where Liebherr builds for construction purposes, current sales are suffering; the Spanish market has collapsed, for example.

But, says Saelzer: “Within the group we swap products in between to balance capacity. We still expect a quite substantial group result for 2010 - a little less than in 2008 and 2009 - but we in Sunderland are quite well off. We still invest, and have no major setbacks.”

The group, active since 1949, has an £8.4bn turnover (the pound and the euro are presently almost equal). It opened at Sunderland 21 years ago, mopping up skilled workers made jobless by shipbuilding and coalmining’s demise, and who had not found work at the infant Nissan motor plant. Today, at its expanded workplace, more than half of Liebherr’s Sunderland workforce has been with the firm for more than 10 years. Six employees have been there since day one. Saelzer himself came in 2002.

Since 2000, the Sunderland site’s crane production has risen from 63 to a peak of 189 in 2007, with only six fewer built in 2008. This has raised turnover from £23.7m to a 2007 peak of £59.8m, and easing by less than £3m since - remarkable, given Liebherr’s prices are up to 30% more than competitors’.

Saelzer looks beyond his panoramic office window to the opposite bank of the Wear, and the overlooking Stadium of Light (where incidentally he’s a season-ticket holder) and he sums up the group success formula in a word: Quality.

He explains: “We say cranes from Liebherr are the best money can buy. If you ask our guys on the shop floor, ‘who’s paying your wages?’ they’ll tell you it’s the client. We must produce what the client wants. We also stick to our delivery promises. If it’s really tight the guys here do their best to fulfil the demand. This

BQ ISSUE 9.indb 47

may mean working overtime day, night and weekends.”

Everything, then, suggests quality, commitment and flexibility. It starts with reaching this MD in the first place - no long, involved negotiation with PAs, PROs or receptionists, one e-mail and you’re through to the man himself. It’s a very flat hierarchy.

Siblings Isolde Liebherr and Dr Willi Liebherr run the group.

“Being family owned brings great advantages,” Saelzer affirms. “They give the divisions independence. The divisions decide what kind of product they want to develop.

INSIGHT

The family has the last word, but generally that’s on the division’s side.

“The board of directors at our parent company in Austria are my superiors. Between here and the owners there is only one other level, group director, and I am able to contact the owners directly, which I sometimes do, and meet them regularly.

“They’re like you and me - millionaires, though, of course,” Saelzer laughs. “And they are involved day-to-day. They visit our various places and apply family values.”

As an example, redundancy among permanent employees is a last resort, even now. >>

Why Corus is not for them Ralph Saelzer anticipates one burning question: Sunderland uses mainly German and Spanish steel, not from Corus on Teesside where 1,700 jobs are currently being lost.

“We don’t buy steel directly here,” he explains. “That is done at group level. With vast buying power we get good conditions. We specify here the steel we need and the quantity, and that is taken into consideration as the group negotiates.”

But that’s not the full story...

“We’ve been approached to do some business with Corus in the past and they certainly have tendered. But pricewise they cannot compete; they were much costlier than others.

Unfortunately, other steel mills have been cheaper, and we buy steel only from Western Europe, a trusted source. We wouldn’t go to Russia or China simply for a cheaper price.”

Liebherr could benefit from the North East’s dawn of wind-energy manufacturing, but only indirectly for Sunderland. Saelzer says: “Our products here are very specified, and as we are not doing too badly we have no free capacity.“ “As a group, though, we certainly will benefit from the new opportunity. We are one of the manufacturers for bearings used (in wind turbines), huge slewing bearings made by a sister company in Germany. In offshore wind parks we’re also involved with our offshore crane department, which has a very new product, apparently a success.

“It’s a huge crane that simplifies the erecting of turbines offshore. These are made at our Rostok Company, being too big to build here. But any orders received for them will eat up capacity there, and that capacity may then be shifted here.”

47

BUSINESS QUARTER |SPRING 10 23/04/2010 09:21

5330

INSIGHT

SPRING 10

“We’ll do everything possible to find something for anyone suddenly available.

We even swap personnel around the group to keep people in work. It’s a big, big thing with us.”

Investment policy also reflects family values.

“For us, it’s not about share value but about increasing company value,: he says. “We’re cash rich. In 2008, £914m was re-invested in new factories and facilities, more than we earned that year.”

Because many departments are centralised and in Austria, operations like Sunderland’s carry small overheads. Of its £50m sales in 2008 it had £2m re-invested. About £1m is likely to be re-invested next.

The workplace is immaculately tidy despite the quayside’s swirling winds and wheeling gulls.

Cheery greetings drift over to Saelzer’s towering figure as he strides past neatly stored materials towards the cranes’ outdoor testing area. Besides job security, employees are encouraged to learn new skills. The apprenticeship scheme started in 2004 with two; now there are 27, including Harry Klein who was one of Britain’s top two last year in a SkillWeld competition recognised by the Welding Institute.

Liebherr apprentices are time and again commended in awards, and the company itself regularly gains commendations for its training standard. Saelzer has previously expressed his disappointment in the Government’s attitude to apprenticeships but setting up training schemes is now easier. Now, he says, it finally recognises that a university education for all young people is not feasible and there’s life after GCSE. Sunderland’s scheme, aligned with those in Germany and Austria, is thorough and comprehensive. An apprentice plater, for example, is also trained to weld, read drawings, use a lathe and fulfil many other incidental tasks.

“He becomes multi-skilled, that’s what we need,” says Saelzer. “Also our apprentices are sent to Austria, and Austrian apprentices work here. So we learn also about skill cultures, and our guys are doing not badly, they can compete with those in Austria and Germany.”

Thus integrated, and with machinery and working methods aligned to those in the

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 48

For us as a family firm it’s not about share value but about increasing company value Austrian and German operations, everyone is similarly skilled; a Sunderland apprentice on foreign work experience can contribute right away to productivity there.

And, it’s mostly a male experience as yet.

There’s only one woman on the engineering side in Sunderland, Vicki Shields, supervisor of the electrical department.

“Vicki has a Royal Navy background, so I presume she’s used to the industrial language,” says Saelzer with a smile. “We’ve no objections to female apprentices and do get applications. But usually when the applicants see what we’re doing they decide it’s not for them. It’s real heavy engineering.”

Regardless of sexes, the standardised approach facilitates the exchange of projects between centres as production levels and capacity dictate.

“Having the right skills in place, we can be sure a project leaving Sunderland will match the quality of one leaving the plant in Germany or Austria and vice-versa,” he says.

“A client ordering, say, 10 cranes from us, may have them built in three countries - but should

Personal Note Ralph Saelzer, 52, is a well settled German expatriate, he and his wife Sabine residents of Washington. Their younger son, 19, is working in a gap year after A levels, and eventually wants a policing career. Their 27-year-old son is a civil engineer in Germany, but their 23-year-old daughter is still in Britain too, studying law in London.

48

not be able to recognise where any one crane has come from.”

As he spoke, eight colleagues from Rostock were about to be welcomed to assist with Sunderland’s present workload.

Training works well here because Saelzer sees it as a key daily responsibility. He participates in the skills group run by the Engineering Employers Federation and a lot of off-job training is done in co-operation with the Rolls-Royce North East Training Centre at Michell Bearings in Newcastle, as well as at colleges in South Tyneside, Newcastle and Durham.

Despite the Government’s push on apprenticeships, a regulation “jungle” still flourishes. Liebherr is thankful that a partner in the North East training centre tackles this particular bugbear on its behalf. Liebherr is doing its bit to restabilise Britain’s economy, and Saelzer feels the Government could go further in encouraging the apprenticeships.

The Sunderland firm surprisingly given its performance, is on paper a “small and medium size business”. Normally such firms can apply for state funding towards training, but Liebherr and many other non-national companies in the region don’t benefit in this way because their equity is held abroad.

Saelzer says: “We do our best to train in-house and externally, but it would be far easier if we too had such a tool from the Government. We could then get platers and welders trained to even higher standards.”

To the credit of Liebherr’s labour relations, trade unions have stepped in. Saelzer explains: “We are unionised here – the GMB and Unite – and we have three union representatives. It’s not always easy, but we have a good working relationship which has benefits. I mentioned we’d struggled for funding to send one of our hands on a management foundation degree.

The unions asked if we’d thought to seek funding from them. We said not. They funded 50% and we’re funding the same.”

The company reciprocates, too: “We’ve just achieved the bronze level Better Health at Work award which is rarely given in the private sector. We shall carry on with it.”

And you can be confident that if Ralph Saelzer says something is going to be done, then it will be. n

23/04/2010 09:21

53303 08 MG Volvo V70 Estate 260x205c

17/3/10

14:41

Page 1

ESTATE OF THE ART VOLVO V70 UP TO 900 MILES ON ONE TANK OF FUEL

More to Life THE VOLVO V70 1.6D DRIVe DRIVE MEANS MAKING A CHANGE FOR THE BETTER WITHOUT COMPROMISE. THE EXTERIOR STYLING IS UNMISTAKABLY VOLVO, WITH STRONG CURVES AND SLEEK LINES – YET DRIVE ENHANCEMENTS LIKE THE LOWERED CHASSIS AND CREON ALLOY WHEELS ADD DISTINCTIVE FINISHING TOUCHES. AND THESE CHANGES AREN’T JUST FOR SHOW – THEY CONTRIBUTE TO CO2 EMISSIONS OF JUST 129 G/KM AND FUEL ECONOMY OF UP TO 57.6 MPG. ARRANGE A V70 DRIVE TEST DRIVE AT MILL GARAGES.

VOLVO V70 1.6D DRIVE SE CONTRACT HIRE OFFER

ADVANCED RENTAL

35 MONTHLY RENTALS OF

MILEAGE PER ANNUM

EXCESS MILEAGE CHARGE

£897.28

£299.09

10,000

8.3 pence per mile

Mill Hexham Bridge End, Hexham NE46 4JH. Tel: 01434 605 303

Mill Sunderland Wessington Way, Sunderland SR5 3HR Tel: 0191 516 8778

Mill Newcastle Scotswood Road, Newcastle NE15 6BZ. Tel: 0191 274 8200

Mill Stockton Preston Farm Business Park, Stockton TS18 3SG. Tel: 01642 673 251

Mill Harrogate Grimbald Crag Road, St James Retail Park HG5 8PY. Tel: 01423 798 600

*FUEL CONSUMPTION FOR THE VOLVO S40 1.6 D DRIVe IN MPG: URBAN 47.9 EXTRA URBAN 65.7 COMBINED 57.7 CO2 EMISSIONS 129GM/KM Available to Business Users only. Rentals shown are exclusive of VAT. Finance subject to status. Guarantees may be required. The Volvo Business Contract Hire example shown is based on a non-maintained agreement with a mileage of 10,000 miles per annum with free metallic paint. Rental is subject to the terms and conditions of the Volvo Business Partner Business Contract Hire agreement. Vehicles must be contracted between 1st March 2010 to 31st March 2010, or while stocks last. Volvo Business Partner Contract Hire is provided by Lex Vehicle Leasing trading as Volvo Business Partner, Heathside Park, Heathside Park Road, Stockport, SK3 0RB. Subject to availability at participating dealers only. Details correct at time of going to print. Certain categories of Business User may be excluded.

www.millvolvo.co.uk www.driveavolvocompanycar.com

BQ ISSUE 9.indb 49

23/04/2010 09:21

BUSINESS LUNCH

SPRING 10

in association with

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 50

50 23/04/2010 09:21

SPRING 10

BUSINESS LUNCH

DRUMMING UP DEALS Angus Charlton might have been a rock star drummer had it not been for an arguably ill-advised refusal of a record deal.

That prompted a return to Hexham and the family business and since, as he tells Jane Pikett, he’s not looked back Angus Charlton does a good line in stomachchurning tales of restaurant meals experienced (not always enjoyed) at the behest of eager hosts during his many and varied business trips to the Far East.

Apparently, in China, normally civilised people purchase dogs at markets and then give them a good kicking to death to ensure, apparently, their meat is tenderised by the heightened levels of adrenaline brought on by this violent demise. Bon appétit!

Even Charlton - whose willingness to embrace local custom abroad has resulted in the consumption of some unusual meals - draws the line at that one.

“Oh, you get offered everything, from insect to dog,” he says as he scans the rather more appetising menu at The Black Horse near Beamish. “I was in a place in Vietnam once and these blokes walked in with a turtle, cut its throat and drained the blood into Schnapps glasses. Not nice. I’ll eat most things though.

Mind you, I found tortoise a bit strong for my liking.”

Appropriate then, that the band in which Charlton plays drums should be called The Bite.

Serial entrepreneur, business consultant, band manager, drummer and musician (for fun, though he was professional years ago) –

51

BQ_MAG_section 3.indd 51

Charlton is generally more likely to lunch in Shanghai than County Durham. Apart, that is, from this very pleasant afternoon at The Black Horse, owned by the larger-than-life Bob Fountain, who lives yards away, next door to his luxury car dealership and restoration centre, the Aston Workshop.

I text Bob, who happens to be in Phuket, to tell him we’re in his pub. “Who are you with?” he replies and I text him back a brief biog of Charlton, who meanwhile grills me about our absent host. Instantly attuned to the presence (if virtual) of a fellow entrepreneur, Charlton instructs me to text Bob his own contact details, and vows to seek him out on his next trip East in a couple of weeks. You never know, there may be an opportunity to be had.

The spotting of opportunity is Charlton’s stock in trade, and most of his prospects are smelled out in the Far East. He spends much of his working life roaming China, Japan, Hong Kong and the like, and has an understanding of and an empathy with Eastern business culture.

“Top-end furniture, slate, plywood - anything you want,” he says, when asked to detail the items in which he trades. He has customers all over the place - UK, US, Australia - he has an order for plywood for the biggest bridge in Australia. “We found a place making the >>

BUSINESS QUARTER |SPRING 10 23/04/2010 12:23

BQ ISSUE 9.indb 52

23/04/2010 09:21

SPRING 10

BUSINESS LUNCH

China shopper: Angus Charlton sold the family business and now trades around the Far East right stuff and got it made to the spec,” he says. “Anything you want; I’ll source it.”

A bit of an adventurer and a lover of extreme sport, there is no fear in Charlton, 45, who treats the world like his own back yard.

“I say yes and then work out the detail afterwards,” he says. “That works for me.

That bridge project in Australia - I do know a lot about plywood, but I had to go out and find the right spec. It took some doing, but I got there.

“We do container loads of slate to Australia every two weeks. That came through a Geordie who moved over there 20 years ago and was surfing the net and remembered Matthew Charlton’s [the family firm]. I started selling to him in Melbourne, he told a major distributor in Sydney, I sorted out some problems for them in China, and there we are.

We’re in business.”

He makes it all sound fantastically simple. Yes, there have been hard lessons, but business is in his blood. He’s the product of a family firm

BQ ISSUE 9.indb 53

founded in 1842 - the building supplier Matthew Charlton in Hexham - which he and his sister sold a few years ago. But surely that yielded enough to retire?

“Oh yeah, but retiring isn’t really me,” he says.

“I mean, what do you do with your time? I like riding my motorbike, but I don’t want to do it every day. I need challenges.”

So, after the firm was sold, he went to Japan and started trading - very successfully - in slate, and from there he has carved a niche for himself importing, exporting, and consulting, predominantly in the Far East.

And while he describes the decision to sell the family business as the best he’s made, he also says it was the hardest. “Oh, it was hard. I’d worked my way up in that business, and we’d built it up. My father had died, but there were still older family members around. The offer we were made, however, was so good it was a no-brainer.”

He went into various online enterprises and now runs an incredibly lean operation, with

53

only two full-time staff members in Hexham (one of whom is Charlton himself), a joint venture partner and a small team in China.

He relishes the variety of life; variety which reflects his own background - public school education (Bootham, York), followed by building college and three years working on construction sites, followed by two years as a professional musician (drummer) in London, followed by a period working in and then building up the family business, before selling it and taking to a business life roaming the Far East.

In contrast to his at times nomadic business life, home life is very stable, out in rural Hexhamshire with his wife Anita and their two teenage children.

Charlton’s talent, apart from spotting a good deal, is for mixing with all types - probably a result, he says, of his early passage from public school to building site.

“I’ve mixed with all different kinds of people and that’s been good for me. Some of those guys who work for us in our quarry in China, if they weren’t working for us they would be scraping by growing vegetables to eat and live.

“In business, you work with people and become friends with them, and then they do their best for you. I always try to look for the best in people; give them a chance.

“The number of people who think you can buy cheaper every time in the Far East; I tell them, don’t shit on people, especially out there, where everything is cheaper, because they just reduce the quality and you lose relationships. Why bother?”

There are several new Far East projects being considered just now, while he also has a property/development site portfolio at home and a music management business Anga Management.

He tells so many good tales, we’re at the Black Horse all afternoon. We go through quite a bit of Guinness, sirloin steak (him), which he says is excellent, and fishcakes (me), which are fabulous, piled up like little golden golf balls.

Plus, amazing chips and gorgeous veg grown in the fields at the back of the pub - honeyroast parsnips like you’ve never tasted.

Charlton’s enthusiasm shines. “I like new experiences, I like doing deals and I like meeting people. Socialising in Japan is really good. >>

BUSINESS QUARTER |SPRING 10 23/04/2010 09:21

BUSINESS LUNCH

SPRING 10

The guy who runs our office (in Shanghai) was born in a cave. He was the first in his family to go to university

The karaoke is funny. And if a band’s on, you get up and join in. I once did that when I was there with a customer and the guy who runs our office. Neither of them knew I played; you should have seen their faces.

“I like doing business there. It’s a buzz, and I keep the structure simple. We outsource warehousing and logistics and I have a joint venture partner there to manage it all. One of the things that really pissed me off about UK was the bureaucracy, red tape, health and safety. Out there, if you want to do something, they help you to make it happen.”

A case in point - one of Charlton’s businesses is a quarry in China, which the Chinese Government helped by blasting a road through hills to it. Why? “Because we were creating jobs. It’s amazing out there. Shanghai is as modern as Tokyo. you have to observe certain cultural rules, like making yourself known to the local dignitaries when you do business in a place, but that’s OK. We pay our guys at that quarry more than the going rate, but not extortionately so, because then you cause terrible problems. We do right by people though.

“I went to the home of a worker who lives with dust floors and mud walls and he’s got a plasma screen on the wall. He’s over the moon with it. He’s got a pig out the back and his wife takes the goat up the mountain to graze all day. If he wasn’t working for us, he would be scraping by.

“The guy who runs our office was born in a cave. He was the first from his village to go to university. He now has an apartment in Shanghai worth half a million quid.”

Charlton particularly enjoys doing business in Shanghai. Tokyo too, though the economy is still sluggish there. “It’s weird too; it took me about a year-and-a-half to get any orders through. you start thinking, ‘I’m wasting my time’. you keep going back and nothing

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 54

happens, then all of a sudden, someone’s like, ‘can we have 20 container loads of garden paving?’ and you’re off. “you really work hard in Japan to get an order, but once you have it, you’re there for life.”

He is blissfully un-weighed down now by the crap that goes with running teams of people here. His business is done as much as possible by technology, and while he might grow the business further with teams of people in the UK, he isn’t interested in the down sides that come with it.

And when he’s not doing deals for furniture or slate or plywood, he’s managing bands. He’s

Lunch!

The Black Horse, Beamish, Co Durham The Black Horse is owned by Bob Fountain, owner of the neighbouring Aston Workshop. He lives yards from the front door and presides over the growing of the pub’s organic veg in the fields behind it.

This quirky 17th Century pub has also been recently restored and extended to create more space while still retaining its cosy, historic character.

The food is superb and all the produce, as far as possible, is locally sourced. Angus Charlton said his sirloin steak was superb, while the fish cakes made for a fantastic Tuesday lunch. We’d recommend lunch or dinner any day of the week, and Sunday is a real treat – but be warned, for Sundays, you need to book.

Black Horse, Red Row, Beamish, Co Durham, DH9 ORW, tel 01207 232 569, www.blackhorsebeamish.co.uk

54

got a group on the books, Fables Last Stand, who he took over to Canada and had working in Bryan Adams’ studio with ACDC’s producer.

It’s a tough business though.

“Oh yeah, it’s hard. No one’s signing anyone.

Even those lads, they aren’t full-time musicians yet. One works in HMV, one teaches drums. you can download them on iTunes though.”

I assume that Anga Management might be a hobby business, but no; hobby businesses aren’t really Charlton’s scene.

“If you’re going to put money into something, it has to have a payback,” he says.

His own band is for fun, though all four members of The Bite have played professionally in their time. When he followed his rock music dream to London aged 21, Charlton had a whale of a time.

“I said to my dad, ‘I have to do this or I might be like the fifth Beatle’,” he laughs, going on to mention that he shared a flat during that period with the actress Fay Ripley.

“We went on holiday to Lanzarote once.

It was a good laugh. We’re not in touch now though.”

And it could all have been so different. His then-band was offered a record deal within weeks of landing in London, but their manager told them to hang out for something better. Unfortunately, something better never came along.

“So, after two years of partying, all expenses paid, I came home,” he says. So what’s next?

“I don’t know. I don’t do big plans. This summer I’m going to Europe on my motorbike with friends. I want to go to Australia soon.

Business-wise, there’s always new stuff.”

And what about all that travelling? Doesn’t he get sick of it?

“No. you just get in the zone. you go in the airport lounge and have a drink and something to eat, you get on the plane and do the same and watch a film. It’s just another day, but you’re moving.

“And doing something different every day makes it interesting. If someone said now, ‘can you buy me wing mirrors for cars’, or mobile phones or whatever, I’d say yes. Then someone else hears you can do that, and they say, ‘I need some of those’, and you’re off again; on to something else. It’s fun.” n www.charltongroup.co.uk

23/04/2010 09:21

Introducing the new fully-equipped Audi A6 Le Mans for £349 per month.

To experience everything the new, fully-equipped

• 19" alloy wheels • Milano leather upholstery • DVD Satellite Navigation • 6-CD changer • Mobile phone preparation • S line body styling • Sports seats • Xenon headlights • LED daytime-running lights • Metallic paint • Rear parking sensors • Heated front seats

Audi A6 Le Mans Edition has to offer, you need a special kind of test drive. That’s why we're making this car available to you for a full 24 hours. But, unlike the famous race at Le Mans, there’ll be no rush. You can take all day (and all night) to enjoy the style and luxury of this special edition, as well as its effortless performance.

To start your 24 hours of Le Mans, contact your nearest North East Audi Centre.

Newcastle Audi

Tyneside Audi

Wearside Audi

Teesside Audi

Scotswood Road, Newcastle upon Tyne.

Tel: 0845 020 4591 (local rate)

Silverlink Park, Wallsend, Newcastle upon Tyne.

Tel: 0845 020 4581 (local rate)

Stadium Way (Opposite Stadium of Light), Sunderland.

Tel: 0845 020 4599 (local rate)

Brooklime Avenue, Preston Farm, Stockton on Tees.

Tel: 0845 020 4520 (local rate)

e-mail: enquiries@newcastle.audi.co.uk

e-mail: enquiries@tyneside.audi.co.uk

e-mail: enquiries@wearside.audi.co.uk

e-mail: enquiries@teesside.audi.co.uk

www.northeastaudi.co.uk Official fuel consumption figures for the A6 Saloon range in mpg (l/100km): Urban 15.3 (18.5) - 40.4 (7.0), Extra Urban 31.0 (9.1) - 65.7 (4.3), Combined 22.4 (12.6) - 53.3 (5.3). CO2 emissions from 139 - 299 g/km. Business Users only. Excess mileage charged, ask for terms and conditions. Offer subject to availability and could be altered without prior notification.

BQ ISSUE 9.indb 55

23/04/2010 09:21

GILMOUR ON WINE

SPRING 10

Award-winning beer writer Alastair Gilmour puts his pint glass to one side and enjoys a sip of sunshine

NEW WORD ORDER aromas tinged with lime. It’s substantial and viscous in the glass and tastes of fresh fields.

It’s a captivating blend of white wines which, along with the usual fish dishes, would not only accompany asparagus well, but is exceptionally good on its own.

The Klein Steenberg Merlot, Cabernet Sauvignon and Cabernet Franc 2007 (14.5% abv) from South Africa’s Western Cape is a beast, a wildebeest. It has a massive marzipan and almond nose and a deep bramble and blackcurrant palate which refuses to fade, alter or develop in any way. I feel it’s not subtle enough to partner fine food comfortably and lacks the elasticity you sometimes need in such good-cop, bad-cop relationships. We’re confident together, though, just the two of us.

Along with 137 drinks books, I can see one on olive oil and another titled The History of the Melton Mowbray Pork Pie. Perhaps I should get out a bit more. n

There are 28 books about wine on the shelves in the room I call an office. Beside those are 22 on whisky and 87 covering beer.

Should a pattern be emerging here it’s of a bon vivant, a person who not only enjoys a sip of grape and grain but someone who takes the time to study them. If only that were the case.

In counting them, I’ve uncovered gems I’ve hardly consulted since the day they were bought then filed as “one for later”. I swear Jancis Robinson squints in the sunshine when I pull her Confessions of a Wine Lover free from its neighbours The Good Bottled Beer Guide and Classic Blended Scotch. I’d forgotten I had it and the marker on page 73 certainly suggests something else came into my life at a crucial time, pre-74. Beer probably. Bitter, mild, porter, stout, lager, India pale ale, lambic, trappist and bock have been absorbing

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 56

companions, so being able to sit and study an Australian white and a South African red is a rather pleasant diversion.

Wine has always held an affection and many’s the time in a freezing Czech beer cellar or a wet-floored microbrewery on a Northumberland February I’ve kicked myself for eloping with ale when I could have formed a relationship with the grape and the warmth of its embrace that stretches from Bordeaux to California.

So, now I’m revisiting two countries for the first time in ages. The South East Australian Cranswick Estate Semillion Sauvignon Blanc 2007 (12.5% alcohol by volume) starts with huge melon

White, Semillon/Sauvignon Blanc, Cranswick Estate, New South Wales, Australia £7.64 Red, 2007 Bordeaux Blend, Klein Steenberg, Constantia, South Africa £7.76 both are in stelvin screw cap and are available online at www.michaeljoblingwines.com

56

23/04/2010 09:21

BQ ISSUE 9.indb 57

23/04/2010 09:21

EQUIPMENT

SPRING 10

Visionary: Rex Kirk from the Kirk Heroes, A New Generation Collection, www.kirkoriginals.com

A SEE CHANGE

Not too long ago we had one pair of glasses - and then only if our eyesight was poor. Now on average we have three pairs to influence image, mood and wardrobe. Josh Sims studies specs education

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 58

58

23/04/2010 09:21

SPRING 10

BQ ISSUE 9.indb 59

Maturity: DRIES, www.mykita.com

“Film stars to me were always six feet four, had perfect teeth, could do handstands on Malibu beach - and didn’t need glasses,” Michael Caine said once. He was also the actor who’s role as Len Deighton’s Harry Palmer first put specs on a hero.

Certainly a latent negativity about glasses remains, such it’s said that a US presidential candidate will still lose crucial electioneering points for daring to express a frailty so blatantly. And yet, according to one recent survey, now some 8% of all European sales of specs are to people with perfect eyesight.

“Over the last few years glasses have made the transition from necessity to accessory,” says Philipp Haffmans, creative director of Mylita. “The same has happened with the hat - something that was once considered unattractive is now regarded as stylish. Maybe it is a product of the recession that more people need to be noticed but you now wear glasses hoping they are memorable, not ignored.”

To don specs, indeed, is to play with deeply-ingrained stereotypes - sales to individuals facing a job interview are particularly keen, since glasses give maturity to a youthful face and still suggest intellectualism. A survey by lens makers Essilor last year found that 40% of people consider glasses-wearers ‘smart’ and 39% ‘sophisticated’. More acutely, each style of glasses has its own code: colour suggests playfulness; heavy, retro acetate a donnish gravitas; modernistic, typically metallic styles creativity. Don’t imagine that the image created is anything other than very real either.

“Glasses are never ‘invisible’ despite some people hoping that they can be made to look as much,” as specs designer Jason Kirk of Kirk Originals has it. “They always make a statement - so you may as well control that statement.”

The specs industry now offers new levels of control by driving change as seasonally as those in clothing - lighter colours, decorated arms, metal frames, squarer shapes and futuristic styles are the key trends for this year.

But for those for whom specs are a tool of vision before they are one of self-expression, consistent devotion to certain style can also provide a form of personal branding. Few can

EQUIPMENT

imagine Buddy Holly, Elton John or Woody Allen without picturing their glasses first.

“Image is as much a function of glasses as correcting eyesight now,” argues Claire Goldsmith, head of Oliver Goldsmith - brand of choice for Peter Sellers, among others - and from this spring designer of her own brand Legacy. “Glasses are especially potent for shaping public image - they are typically the first thing we notice on meeting someone and the first thing we recall about them.”

“That’s why more people build a wardrobe of glasses,” adds Haffmans. “Glasses can be selected for the right occasion and an expression of a dual life - you have one pair for your working life, to express professionalism, another for your private life, to express personality. My brother, who also works for Mylita, wears a more conservative pair when meeting the bank manager...”

Indeed, that specs-wearers each now typically have an average of three current prescription frames in circulation, rather than the single

59

pair typical of the market just 15 years ago, has changed even opticians’ long-cherished rules for matching frame to face. Essentially, these were a matter of balance and proportion. Add new angles to a round face with more geometric frames. Those with squarer heads need softer, rounder frames.

Similarly, long faces need to create a sense of width, through, for example, a detail at the frames’ temples. And two face shapes as described by opticians - triangular and inverted triangular - need glasses that draw attention away from and to the eyes respectively.

Yet increasingly opticians will advise those looking for new frames to simply opt for whatever they instinctively feel confident about themselves wearing. Not only do prescriptive guidelines make nonsense of fashion trends in frames - suggesting as they do that only one style will work best for each face - but they miss the potential for play in the frames one can choose.

And the options are many. An industry >>

BUSINESS QUARTER |SPRING 10 23/04/2010 09:21

SPRING 10

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 60

Individuality: Nicole from the Kirk Originals Vector Sunglass Collection, www.kirkoriginals.com

which, as opticals designer Alain Mikli puts it, once produced glasses that had “no style at all, they were just these spiritless objects which we opticians then had to put on faces, making them spiritless in turn” is now catering to a market in which some three pairs of specs are sold for every one pair of sunglasses. With the 1970s seeing designer brand licensing push many smaller spectacle manufacturers out of business, a renewed consumer appreciation for specialisation is seeing their return and with them fresh experimentation.

“There are now a number of smaller brands doing pioneering work while the big fashion houses retrench in more commercial mainstream design,” explains Goldsmith, citing the likes of Jono Hennessy, CoLab, Undostrial, Spy and Bruno Chassignand.

“Increased demand is allowing the small companies to invest in R&D, so it pays to shop around. It’s true that glasses are inescapably about style and image. But it’s easy to forget that they have to function as effective pieces of industrial design too. They may be accessories, but they’re not just pieces of jewellery.”

Materials now include not only the unexpected - such as wood - but also the supercontemporary, including expensive carbon fibre and magnesium, the lightest material used in specs design to date. Production techniques have also moved on to give glasses added utility - multi-directional hinges and memory metals that make frames virtually unbreakable - and allow new combinations of materials. Kirk Originals, for example, is about to launch the first spring hinge to allow the connection of parts in aluminium and acetate.

Other aesthetic advances have included those allowing the colour-graduation, separation and layering in acetate, while Kirk Originals again has spent three years developing an acrylic flexible enough for use in spectacles, providing a greater colour and texture range than acetate affords.

“There is always the fear that, with glasses so heavily in fashion, they will soon move out of it,” says Kirk. “But at least the options for those who need them have never been better.” In short, now would be a good time to develop poor eyesight. And that stigmatism could at last be a real boon. n

Accessibility: Phantom in Amourette from Kirk Originals Turbo Collection, www.kirkoriginals.com

EQUIPMENT

60

RX 4

RX CO 23/04/2010 09:21

A 15% BEnEfiT-in-Kind RATing.

SO LOw yOu CAn TAKE ThE TAXmAn fOR A RidE. The new full hybrid RX 450h delivers a breakthrough 299 din horsepower, with 148g/km CO2 emissions thanks to the advanced full hybrid system which switches seamlessly between electric and petrol power.

The electric motors work in tandem with the 3.5 litre V6 engine to deliver maximum efficiency and performance. Together with a luxurious interior with sophisticated Remote Touch technology,* this makes the new RX 450h a car to be desired by everyone, even the taxman.

for more information or to arrange a test drive call Lexus newcastle on 0191 215 0404.

22 Benton Road, newcastle nE7 7Eg www.lexus.co.uk/newcastle

299 din hp 148g/km CO2 44.8 mpg

WELCOME TO FORWARD LIVING

The new full hybrid rX 450h RX 450h prices start from £43,175 OTR. Certain components within the hybrid drive system have a five-year or 60,000 mile warranty, whichever comes first. *Remote Touch is not available on SE derivative.

RX 450h fuel consumption figures: urban 42.8 mpg (6.6 L/100km), extra-urban 47.1 mpg (6.0 L/100km), combined 44.8 mpg (6.3 L/100km).

CO2 emissions combined 148g/km.

BQ ISSUE 9.indb 61

23/04/2010 09:21

FASHION

SPRING 10

DRILL FOR SHOOTING PARTIES So, you wear your shoes in a boggy field then poke holes in the top to help them dry? This way your feet will also stay cool. Oh, yeah?

The brogue is back big-style says Josh Sims “I used to know this old guy and he’d say to me that his philosophy of shoes was that all a man needs is three pairs of brogues: one pair for the town, one pair for the country and one pair for the beach,” says the shoe designer Guy West of Jeffery-West. “you can understand why some men may take that

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 62

attitude to footwear. Summer is so short in the UK it’s tempting not to invest in the kind of shoes that will hardly be worn.”

Of course, with increased travel and the breakdown of the more rigid workplace dress codes, men are more adventurous with their shoes. But contrary to fashion’s idea that it is

62

acceptable to wear plimsolls all year round and in all weathers (contrary to sodden feet and bouts of flu), men it seems are rediscovering the attractions of the battle-ready, benchmade, Goodyear-welted shoe - both conservatism and value-consiousness being products of the recession that encourage their purchase. When a man’s gotta do what a man’s gotta do, that may include breaking his new shoes in a bit. But, more than that, one style of shoe in particular is seeing a renaissance; the brogue.

Or maybe even “the new brogue”. Trickers, which has won something of a cult following for its hefty country styles teamed with denim has, for example, launched styles in vibrant bottle green and blue leathers, with contrasting white eyelets. It has recently teamed up Japanese designers Junya Watanabe and Comme Des Garcons on a line of co-respondent brogue styles, and with shoe retailer Kurt Geiger to create a limited edition range. Similarly, Loakes is offering styles with a more aggressive, slim-line shape. And since being bought by Italian fashion giant the Prada Group, Churches has re-addressed the style not in the standard blacks and tans, but in high-gloss grey. And if such a thing as a “summer brogue” might a season ago have been considered oxymoronic, this summer the company has created it. Its Blakeney style comes in sand suede on a chunky-butlightweight red-brick sole.

Indeed, if today’s brogue was made in a way to echo the style’s origins, it might genuinely be an ideal shoe for warmer months. After all, the distinctive pattern of pits and serrated >>

23/04/2010 09:21

63 BQ ISSUE 9.indb 63

BUSINESS QUARTER |SPRING 10 23/04/2010 09:21

BQ ISSUE 9.indb 64

23/04/2010 09:21

SPRING 10

or “gimped” edging on what is otherwise either a simple, closed-lacing Oxford or open-lacing Derby style - also known as “Bluchers”, after Gebhard Leberecht von Blucher, the late 18th century Prussian fieldmarshall who popularised the pattern by ordering it for his troops - is a reminder of when the holes were punched right through the leather. Doing so in order to allow the insides to better dry out after they have undergone a good soaking (or to let the feet cool on a hot day) may be a blunt solution, but it gave rise to one of the most distinctive styles of shoe in the men’s wardrobe.

It was Irish and Scottish agricultural workers, farming bogs and marshland, who first took an awl to their somewhat makeshift, heel-less

BQ ISSUE 9.indb 65

FASHION

I used to know this old guy and he’d say to me that his philosophy of shoes was that all a man needs is three pairs of brogues: one pair for the town, one pair for the country and one pair for the beach

shoes - “brogue” or “brog” meaning “shoe” in Gaelic - albeit doing so in a decorative style that was typical of the more flamboyant men’s

65

dress of the Elizabethan age. Even as the style became more recognisably like the brogue of today, tackling the elements remained a >>

BUSINESS QUARTER |SPRING 10 23/04/2010 09:21

FASHION

SPRING 10

key issue, especially since early versions were made of leather shavings glued together - the resulting shoes were typically rubbed with candle wax to make them more water-repellent.

It took some three centuries for the decoration to remain but the function to be lost and the modern notion of brogues to be established - albeit that their country roots remained, the sturdy style typically being worn by gamekeepers before being adopted by lairds and later gentlemen by the turn of the 20th century.

At least some of the time. It was one of the strict rules of men’s dress etiquette that, in fact, brogues were only ever worn in the country, typically for country sports. It was the same association with the outdoors that led a studded variation of the brogue to be taken up as a golf shoe - although this came about by the smashing of yet another of the rules of dress by the Prince of Wales and future Edward VIII, a man whose royal influence during the 1920s in particular encouraged his radicalism to be adopted as the mainstream right across Europe. So mainstream, in fact, that the brogue came to practically define the image of the “proper” man’s shoe and the choice of the city gent.

Indeed, although the brogue was first seen in black only in the 1920s - tradition dictating until this time that they should be brown in keeping with the country environment - this was just the first deviation on the path to the coloured and lightweight varieties now available. Two-tone versions, for example, helped to define the look of the jazz age.

Jump forward 90 years, and shoe designer Rae Jones is winning a reputation with her take on the style for women, in summery shades of pale grey, soft pink and dusty blue.

“Brogues somehow look tailored and neat but still have a casual air about them, which makes them versatile,” says Jones. “you can wear them with almost anything. you have to have a thinner sole and last shape for a women’s version to avoid looking too mannish. Flat lace-ups have been around for women since the 40s, of course, but brogues are a ‘new’ idea. Update them just slightly and they look remarkably modern. Keep them traditional and they’re simply classics.” n

BUSINESS QUARTER | WINTER 10 BQ ISSUE 9.indb 66

66 23/04/2010 09:21

bringing luxury to life We transform ordinary interiors into exceptional living spaces, from concept and design to fit out and decoration with bespoke hand-crafted furniture, the very latest lighting control and fully-integrated audio visual solutions.

www.dsegroup.co.uk

2nd floor 530 Durham Road Low Fell, Gateshead NE9 6HU Tel: 0191 491 4141 info@dsegroup.co.uk

BQ ISSUE 9.indb 67

23/04/2010 09:21

INTERVIEW

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 68

SPRING 10

68 23/04/2010 09:22

SPRING 10

MOTORING

crystal amazing From starting to sumptuous finish, the Aston Martin DB9 is a class apart, writes Bob Aurora.

But best find out first where the fuel goes As the chef and owner of the busy Sachins Restaurant on Forth Banks, Newcastle, my team and I are currently working on a range of dishes to add to our menu and, as you can expect, getting the spices and flavours right is a lengthy process. We are also supplying the food hall at the department store Fenwick with our dishes and I am pleased to say they are keeping us very busy. We have also just started outside catering; we are aiming not only at Indian weddings but also at events looking to cater for anything from 50 to 1,000 guests, so as you can see, we have our hands well and truly full!

So, when I got the call from BQ to drive the

Aston Martin DB9, all of the above were put on hold as this was way too good an opportunity to miss. Being a car nut, this was music to my ears.

The car I drove was British Racing Green and not normally a colour I would choose, but with its cream leather interior it looked incredible. The exterior has a real aggressive and sporty look which is accentuated by the silver grill and mesh on the sides and on top of the bonnet. The door handles, however, left most passengers wondering how they actually opened.

The interior is dominated by excellent quality leather and a great piece of polished wood in

69 BQ ISSUE 9.indb 69

the middle of the dash. The dials look like the face of a Bell & Ross watch, and the rev counter moves in the opposite direction to the speedometer, which was very quirky. Ignition is by using a fabulous looking crystal key. Be aware though that if you drop the key and it smashes, it’s going to cost at least £800 to replace, so think twice before you throw them on the hall table when you get home.

Starting the car is a real pleasure as it just sounds fantastic; the engine has a really meaty warble, and the exhaust valves open up at >>

BUSINESS QUARTER |SPRING 10 23/04/2010 09:22

MOTORING

SPRING 10

The Bentley is the choice of footballers; Ferraris are often considered flash, but Astons have a real cool image.

4000rpm making it sound amazing. To free up the centre console the DB9’s handbrake is next to the driver’s seat - which makes handbrake turns very easy to perform (only joking Stratstone).

The DB9 is a big car and the parking sensors are necessary if you want to avoid expensive parking scrapes.

One word of advice for potential drivers, however; if you buy or test drive a DB9, get the sales people to show you where the fuel cap release button is. While I had the car, it invariably needed petrol and I assumed the cap would be on the driver’s side, but to my embarrassment it was on the passenger side.

To make matters worse, I tried to open the petrol cap from the outside and as a filling station queue formed, I frantically searched the car trying to find the release button.

Admitting defeat, I had to read a manual for the first time in all my driving life.

The DB9 is one of the most beautiful looking cars available today; it would not look out of place in the South of France or cruising around our magnificent cities. It’s certainly a head turner. n The Aston Martin DB9 driven by Bob Aurora is priced £109,000 and was provided by Stratstone Aston Martin Tyne & Wear, Stoneygate, Houghton-le-Spring, Tyne & Wear, DH4 4NJ, tel 0191 512 3512, email paul.thursby@stratstone.com Pre-owned models are available from £50,000.

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 70

The stats ...

The Aston Martin DB9 was launched in 2004 , replacing the equally stunning looking DB7. The DB9 helped put Aston back on the road to recovery, although the credit crunch has reversed all of that previous good work.

The abbreviation DB in the model name is the initials of the company founder Sir David Brown.

Both the DB7 & DB9 were designed by Ian Callum, the latter completed by his successor Heinrick Fisher.

The DB9 was the first Aston Martin to come out of the new purpose-built factory in Gaydon, Warwickshire, rather than its original factory in Newport Pagnell.

The DB9 still looks incredible and even when you consider the car was launched more than six years ago, it still turns heads now.

The main competitor for the DB9 is the Bentley Continental GT so don’t expect much change from £120k. The Bentley has long been the choice mode of transport for footballers and WAGs alike; Ferraris are often considered flash, but Astons have that real cool image.

It’s a marque that just oozes quality and when you factor in the James Bond connection no other car company comes close in terms of image and appeal.

In 2009 the DB9 received an engine tweak; power has been increased by 20bhp giving the car 470bhp. The car reaches 62mph in 4.8 secs and its top speed is 190mph. As you would expect it’s not very green, emitting 386g/km CO2 and putting it in tax bracket M. In case you are interested in economy figures the DB9 should average 17mpg.

The interior lives up its seductive exterior and the sapphire key, placed into the middle of the dashboard when you press the glass starter, has been carried over from the DBS. The engine has a real meaty growl and the exhaust has an incredible sound, making the hairs on the back of your neck stand to attention.

The Touchtronic gearbox has been fitted to the DB9 and manual gear changes can be made via the paddles. The gear selection is done via buttons on the dashboard and even though the gear changes are excellent I would still prefer a traditional gearstick rather than the dashboard buttons.

The DB9 also has the option of Bang & Oulfsen speakers, which rise up from the dashboard sound quality is exceptional.

The car’s ride has been improved by fitting Blisten dampers along with new suspension arms and bushes, while the optional sports suspension package makes the Aston a much more focused driver’s car.

The DB9 has two seats in the rear but they are only useful for either small children or for your Fenwick shopping bags! Apart from that minor issue, the Aston is still one of the best Gran Turismos available, plus the DB9 is still one of the most desirable cars around, getting universal admiration from fellow drivers and onlookers alike.

And, it was good to see Paul Thursby back at Aston Martin as no one else knows the brand better than him.

70

23/04/2010 09:22

Business as it should be

Rockliffe Hall is the north east’s newest luxury hotel, golf, spa and leisure resort located in picturesque Hurworth-onTees, County Durham. A multi-million pound investment has restored the 18th century Old Hall to its former glory, creating the perfect venue for business. From corporate golf days to private dining and conferencing for 10 to 250 delegates with 12 fully air-conditioned meeting rooms, most featuring private outdoor terrace and entrance with views over the magnificent grounds.

Minutes from Durham Tees Valley airport, the east coast main rail line and major motorways (2.5 hours to London, 2 hours from Edinburgh), make Rockliffe your business destination of choice.

www.rockliffehall.com For further information, please call: +44 (0)1325 729999, or email: enquiries@rockliffehall.com

BQ ISSUE 9.indb 71

23/04/2010 09:22

ENTREPRENEUR

SPRING 10

in association with

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 72

72 23/04/2010 09:22

SPRING 10

ENTREPRENEUR

GO WITH THE CUSTOMER

Fighting the Big Four supermarkets is a battle at best of times, and at this particularly testing juncture a customer focus is the sharpest weapon to carry, Nigel Mills tells Brian Nicholls

It’s an avant garde yet tasteful building for a seaside suburb, its glazed entrance shaped like a ship’s prow, taking on whatever waves will strike.

But maybe that’s appropriate for Mills House, headquarters of Mills Group, as it steers skilfully and vigorously among communities it serves extensively; it reminds you how, on the great sea of uncertainty called Essential Shopping, there’s still room for others besides the Tescos and the Asdas.

Turnover, with its new supermarkets, is expected to top £156.3m this year - £93m from product sales and another £60m or so from services too, such as lottery sales and cashpoints. What began in the North East as 11 newsagent shops is now, 24 years later, a very mixed, developed and flourishing group of 85 supermarkets, convenience stores and other diverse outlets - spread down much of England and penetrating Wales. Its employees number about 2,400 when you include its newspaper deliverers.

Retail awards almost overwhelm a table in management’s reception area of the Monkseaton, Whitley Bay, headquarters. But group managing director Nigel Mills, a former Tyneside and Northumberland Business Executive of the year, finds in them no cause

73

BQ ISSUE 9.indb 73

for complacency as he, like store bosses everywhere in these particularly competitive times, battles to raise takings.

Just how has recession changed customers’ buying habits?

“They’ve become a lot more value focused,” he explains. “Where we used to sell 15-20% of our food products on deal - price reductions, two for one, things like that - we now sell up to 35% of that on deal. There’s a significant shift towards looking for value, and a big push back to healthier eating.

“We note 46% of customers have said in market research that they’ll buy if the price is right. So in theory it’s easier to sell more if you have the right price point. The challenge then is to ensure you make a reasonable margin with what you’re selling to cover overheads.”

So sales are still there. And while price is a determining factor for customers, so is location, the convenience, availability of products, customer service, and store ambience. Mills, who is from Gosforth, attributes the group’s progress to customer focus.

“As consumers change we’ve changed,” he says. “The secret to staying in business is follow the market, constantly study what you do and constantly change. We read all >>

BUSINESS QUARTER |SPRING 10 23/04/2010 09:22

ENTREPRENEUR trade magazines, we are given or subscribe to market research, attend trade shows and conferences, talk to our competitors – mostly independents. They’re more willing than supermarkets to talk.

“We also ask our customers directly. We’re part of an annual market research project in which 1,000 of our customers are asked what they think of us, of our prices, and all the rest.

From that, we assess what we do. So we use lots and lots of information as well as analysing our sales data. Is it delivering what we hope? If not, we look into it.”

And retail is always about location. “Most of our growth has come by taking over and developing existing stores. We’ve talked about but haven’t started greenfield growth yet. But we shall look at brownfield and greenfield and probably go with that.

“It’s a question of finding the right sites. You study the demographics, the competition, the nearness of main roads, parking, the proximity of complementary businesses such as hairdressers, a fish and chip shop and other takeaways. There can be up to 18 months’ gestation between finding a suitable site and opening. We’re only at the start of that process.”

Nigel Mills talks assuredly, as if he’s been behind a counter from day one. In fact, he’s a qualified chartered accountant who was earlier with PricewaterhouseCoopers, in Newcastle and London. Newsagents were in the family though, as far back as 1938, when his grandfather Fredrick William bought his first such business at West Monkseaton. There were 32 stores when grandfather died in 1972, and these were sold to Thomson Regional Newspapers.

The family flame re-ignited in 1986 when Nigel Mills joined his father to launch a new company, Mills Newsagents Ltd. Nigel Mills has driven change throughout. The original stores were CTNs (confectionery, tobacco and news) – a model developed until 1994. Then three significant things happened – the newspaper industry was deregulated, allowing anyone thereafter to sell newspapers.

Sunday trading laws also came in, enabling the deadly rivals, supermarkets, to open seven days a week. These developments worked against the like of Mills, previously enjoying

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 74

SPRING 10

Mills boon: Deregulation in the newspaper industry and relaxed Sunday trading laws opened up massive competition for traditional newsagents, but it fired Nigel Mills’ determination

74

23/04/2010 09:22

SPRING 10

some exclusivity in selling reading matter and being among relatively few businesses trading on Sundays.

However, a big positive for Mills was getting in at the launch of the National Lottery. It has since sold more than £300m worth of tickets, enabling it also between 1994 and 2003 to develop the CTN alcohol and services model (the services including also utility payments and cash machines). Change loomed again in 2003 when Tesco brought in Tesco Express, redefining the modern convenience store in the UK; very much focused on food, especially fresh and chill.

So, closing some smaller stores along the way but opening many bigger ones, the group now has four trading models; CTNs with services including sub-post offices, smaller CTNs with off licence and services, convenience stores now with more emphasis on food, and more recently, eight supermarkets with a full food offering - fresh, chilled, ambient - and nonfood too.

They’re spread from Durham to Warwickshire and yorkshire, and Mills makes it no secret they’re proving a challenge. But he adds: “That’s like any new acquisition. We know where we are with them. They have costs but have very much given us the opportunity to develop our food offering, not only in those stores but in the other stores we trade from.

We’re very positive about their outcome.”

Every challenge, then, a new possibility...

Previously Mills had traded from stores of under 3,000sq ft. Now the supermarkets take Mills up to 10,000sq ft of opportunity at a time. The bigger format becomes increasingly an option, turning minds once more to brownfield and greenfield prospects. So will start-ups in Scotland or Ireland be considered?

Mills thinks not yet, as he explains: “Northumberland down to South Wales and over to Cumbria, plus yorkshire, East Midlands, south Birmingham and down into Gloucestershire and Worcestershire... That’s where our management infrastructure is and where, ideally, we’d like to infill. It’s fairly big geography. Step outside your immediate geographical region and you have to buy scale with the support and infrastructure needed to supply and manage those stores.”

He’s not saying they wouldn’t look elsewhere,

BQ ISSUE 9.indb 75

ENTREPRENEUR

The Post Office is a fantastic brand – trusted. But its development has been neglected for over 50 years. It is what it is now because of that, but it could possibly have been something incredible. Post offices have suffered as most nationalised industries from lack of investment. They become hot political potatoes

just that they’d need to be sure of sufficient returns to justify the extra infrastructure to manage it. As training staff to offer better service and value to customers is already a

Long live the post office Mills Group still has 25 sub post offices, considered very important to their communities and as drivers of footfall.

The group lost about five under the Government’s closure plan but considers that, in the main; it has largely escaped the cull.

“The Post Office is a fantastic brand trusted,” he points out. “But its strategic development has been neglected for over 50 years. It is what it is now because of that, but it could possibly have been something incredible.

“Post offices have suffered as most nationalised industries from lack of investment. They become hot political potatoes.”

The group has raised more than £75m for good causes.

75

prime objective, reluctance to adventure is understandable. Mills says: “Because we’ve changed our model so often over 23 years we’ve often left our people behind in their perception of where the business is and what their role is in it.

“We must now gather that all up, bring them up to date and equip them with the right skills to be able to deliver on something very different from 20 years ago. We’ve already restructured head office. We sat down with a blank piece of paper and asked what we should be doing as to support our people.

“What we thought we should have was not what we had. The support structure had evolved instead of being planned. So we’ve changed that over 12 months. We’ve also focused on where responsibility for the training lies in a changed management. We concluded 70% must come from line managers, 20% from on-job experience and 10% from a formal classroom-type environment.”

That approach to communication and training responsibility has brought a review of the competences of its management team, and some changes.

“Within the business now everyone is aware whose responsibility and duty it is to manage the change and train the workforce within the business,” Mills says. “It used to be said before, ‘the company isn’t training me, >>

BUSINESS QUARTER |SPRING 10 23/04/2010 09:22

ENTREPRENEUR

SPRING 10

purpose; and review our retail price margins and strategy, to ensure it delivers the value our customers want and the margins we need to make the profit needed to pay our debt and provide our investment.”

You feel scores more will get onto the agenda if the boss can fit them in, and you can understand why. As he says: “The way consumer shops constantly change, not least because of all the technology out there now including access to product range and price - people are a lot more savvy.”

As for online competition: “Consumers still like one-to-one interaction, and quality of service. Our supermarkets offer grocery deliveries. The customer picks the product in store. We deliver.”

Given the daily cut-throat competition, does he regret his career switch into retail? Is he working harder than an accountant? “I think Price Waterhouse works everyone pretty hard,” he says. “To be honest, for me it was out of the frying pan and into the fire.”

A co-founder, board member and enthusiastic mentor of The Entrepreneurs’ Forum nourishing self-starters in the North East, Nigel Mills’ personal progress chart is a pretty good one to study. n

The Entrepreneurs’ Forum’s 350 members – from all stages of business growth and all passionate about what they do – are willing to share their knowledge for the benefit of others, providing unique access to a wealth of collective experience. This is harnessed to create real value through a variety of events, mentoring and instruction from the practitioner’s perspective.

Delivering papers: Nigel MIlls has restructured his company’s head office function the company isn’t training me’. The company was but it wasn’t clear where that training would be delivered from.” It is now.

Will the group, run by five directors in all, defer further developments until the economy brightens? Mills says with no pause: “If you wait for the sun to shine it never will. We’ve a

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 76

full agenda of things we must do.

“We must improve our skills base, understand better what our customers want in 2010 (that’s very different from what they wanted in 2007); develop our four retail models to serve the customer base even better; ensure our supply chain and product range are still fit for

76

To find out more please visit www.entrepreneursforum.net

23/04/2010 09:22

A speedy recovery to your financial problems

The North East’s leading independent accountancy firm with a difference Rowlands House, Portobello Road, Birtley, Chester le Street DH3 2RY Tel. No: 0191 4112468

Fax No: 0191 4112460

www.rowlandsaccountants.co.uk

Want 2 www.amhworkspace.com

BQ ISSUE 9.indb 77

23/04/2010 09:22

INTERVIEW

SPRING 10

Water on the brain

A few weeks into her new job heading one of the North East’s leading companies, Heidi Mottram tells Brian Nicholls how she intends to nudge the bar for everyone connected with it

Heidi Mottram: “I’m a big believer in balance.”

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 78

78

Is she still among the boys’ toys then - this top-tier woman earlier running 2,600 trains daily and efficiently, and who now has broken into an industry some of us may still think of as hefty men, happy as hippos, squelching through mud with their welly boots, spades and hard hats?

Weeks into her new job as chief executive of Northumbrian Water (NW), Heidi Mottram, the first female to head a big water and waste treatment company in Britain, puts us right.

“We have a lot of women working in this industry,” she says. “One of the first places I’ve visited since coming to Durham is managed by a woman - the water treatment works at Lumley.

“It may be more a male than female industry still, but we definitely have women coming through. If you’re a good employer, and you’re seen as that and offering career development, you’ll attract a much wider group of people anyway.”

Previously managing director of Northern Rail since its formation in 2004, she has come from one regulated public service to another, boss now of a FTSE-250 company serving 4.2m customers in the North East, Essex and Suffolk.

Will this job be easier, since dissatisfied rail customers could always switch to car or bus, whereas unhappy water customers will get no-one else to fill their pipes can only stamp and scream?

“I don’t think anyone would ever describe being chief executive of a water company this size and scale an easy job,” she replies.

“There’s a huge amount of undertaking to produce quality water, and deal with the dirty end of things as well, across the areas we do.

I’ve picked up incredibly quickly in my short time here that people in this company don’t behave as if in a monopoly. They care passionately about what customers think, the product they provide, and the impact if things don’t go right.”

She cites one NW’s existing staff programmes, Right First Time, saying she’s right behind it.

“Every touchpoint the customer has with us has to be the best it can be. If a customer calls about billing, can we anticipate every question that might be asked?”

Already she has spent hours monitoring in the customer contact centre. But likewise,

23/04/2010 09:22

SPRING 10

she says, it can bear on interacting more with customers who want to know why their streets are being dug up. They must be kept informed.

Mottram, a fluent as well as considerate thinker, brings to the North East an OBE awarded for services to the railways, and with a sector award describing her as “an inspirational leader making a huge personal difference to passengers and staff”.

She gained these though her rail company initially had no new trains but did have inflexible timetables and two separate ways of operating. She still blended two into one and grew traffic.

And earlier, when assistant station manager at Leeds, she did a boys’ thing and personally coped with a parcels train derailment causing chaos in a rainstorm as dozens of trains became stranded. She went up the tracks herself and manually set the points to free the other trains during 24 of the most arduous but perhaps exhilarating hours of her career to date.

She never intended such a career initially. On graduating with a BSc (Hons) in geography from Hull University - noted for its hydrology studies - she had hoped to be a national park ranger; odd, one might think, for someone with a phobia about woodlice. Unable to get a postgraduate grant for a specific course, she became instead a trainee in operations management with British Rail.

Initially station manager at Harrogate, she moved swiftly up the management ladder via Regional Railways North East (she oversaw the linking of Middlesbrough with Manchester Airport), InterCity East Coast, GNER, Midland Mainline, then Arriva Trains Northern – all that in 18 years.

With her quietly authoritative manner, she’s on a new route now, eager to find out what it will be like to apply her principles and experience to another industry. Also, running NW enables her to have some positive influence on the environment, which has always appealed.

“The whole green agenda is quite close to my heart,” she says.

NW has always aimed to provide good economic infrastructure for other companies.

Now, increasingly, it’s taking on responsibilities in managing the environment.

BQ ISSUE 9.indb 79

INTERVIEW

I’ve picked up incredibly quickly in my short time here that people in this company don’t behave as if in a monopoly. They care passionately about what customers think, the product they provide, and the impact if things don’t go right

“I’m impressed at how the business is already working for its catchment areas,” she says.

“It’s not just the sources of water that concerns it, but also seeing who’s in those areas, whether it’s farm or industrial communities, and seeing how we can work together to best protect that environment.

We’re not just in a little world of getting water and getting it out to people.”

The Kielder Forest park, an initiative with the Forestry Commission, exemplifies how providing utilities for industry’s benefit can also combine with care for nature and encouragement of sustainable recreation. In built-up areas too the company will be increasingly involved at planning stages of new

No handbags, please A final point BQ felt compelled to ask: Has she ever been confused with Heidi Mottram the bag lady of London fashion - that handbag designer who now seems to dominate the top of the Heidi Mottram Google list?

“No,” says this Heidi. “When Northern Rail launched she was much lower key on Google. She’s clearly doing very well in her business now. So I’m very pleased for her and would like to meet her.

But, she laughs: “I’m not sure I’d particularly want one of her eelskin handbags.”

79

developments, indeed she has a team for that.

“There’s much more thought now about how everything connects,” Mottram observes.

So too with flood defence, for which water companies, the Environment Agency and local authorities are jointly responsible.

Legislation has recently been passed with just such a bearing.

She says: “In planning a housing estate, perhaps less thought might have been given in the past about effects on environment. Now surface water drainage solutions, like ponds and reed beds, will be interesting to consider.”

Ambition, of course, must be tailored to the pricing agreement recently reached with the Ofwat regulator - “fair but challenging,” as Mottram sees it. This sets out a £1.2bn investment over five years, and a 3% annual growth in dividend.

It will have NW customers’ average bill for water and sewerage services in the North East running out at £312 for 2014/15 (excluding inflation, so at 2009/10 price levels). That will make NW the third lowest-cost provider in the country. And the Consumer Council for Water has already concluded that NW is top in giving value for money.

There is of course a possibility of less revenue from industrial users, particularly on Teesside. Two big plants have already fallen victim to recession. But one, Artenius, has since had its plant acquired by a Korean company which NW is now working with to restore full production.

“There are ups and downs all over,” she says.

“One plant may have issues, another >>

BUSINESS QUARTER |SPRING 10 23/04/2010 09:22

2350

INTERVIEW

SPRING 10

comes in. It’s a dynamic situation but appears reasonably in balance at the moment.”.

So what will be her management style in taking the business forward, following John Cuthbert, her predecessor? She says she’s a people person, confident that how she looks after and motivates her 3,000 staff (against 5,000 at Northern Rail) will directly impact on services provided. “Look after your people and they will look after your customers,” she says.

She plans to spend a lot of time with them, to get a better insight into the business, keeping them informed about the bigger picture, and being accessible. She wants her managers to be positive and committed. “you need to know if you’re going to pass the ball somebody is there to pick it up. Good teams do that without even thinking about it.”

But the company right through, she declares, has commitment and passion in bucketloads.

And she doesn’t start with the difficulty faced at Northern Rail, where two functioning but very different work systems had to be integrated in a balanced manner.

The key to her previous success has lain in harnessing talent and pulling in the right direction efficiently and quickly. She sees nothing in the business “broken or presenting a problem.” But she will additionally seek efficiencies to release capital for re-investment; she’ll be chasing added value.

“I’ll work with people to look at what we’ve got, what we’re doing, what can we do more of, and if there are certain things we want to push forward. We’ll look at research and development... see if some of the more technical things can be done more innovatively, using new technologies that are becoming available all the time. Efficiency for me is about doing things better, smarter.”

If economies have to be made, nobody and nothing will necessarily be immune.

“In a business run well as this one is there must be balance across the whole piece,” she says. “you can’t take a short term view to what is a long term business.”

That means the immense community work in which NW is exemplary will not be arbitrarily hacked. As she explains: “What has ultimately been determined in the regulatory process is off the back of a two to three-year exchange

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 80

People should be reassured that regulation in water is a very thorough process to get the best possible outcomes

Beach standards: Heidi Mottram will see checks are kept on bathing-water beaches in the region. All 34 meet the mandatory European standards. Many indeed meet the higher guideline standard needed to be considered for a coveted Blue Flag. Altogether £750m has been spent since 1995 at 24 of the sites.

Personal Note Heidi Mottram, 45 and born in Leeds, lives now in Durham and Morley, West yorkshire. She’s married to Tom, an accountant with an insurance firm in Halifax, and their children – Jonathan and Elizabeth – are 12 and eight.

She’s currently persuading them to enjoy walking as much as she does. They’ve completed seven miles between Whitby and Robin Hood’s Bay, and the next project is a Lake District mountain.

Mottram is keen to build on NW’s community activities, looks forward to re-acquaintance with key players in our region, and would like to contribute new perspectives to its supportive business community whose bonding custom she admires.

NW chairman Sir Derek Wanless has no doubt Heidi Mottram has the qualities to meet future challenges and build on the success of the business to date.

80

between ourselves and Ofwat.

“So people should be reassured that regulation in water is a very thorough process to get the best possible outcomes, whether in customer service, investment or value for money. All things have to be kept in appropriate balance.”

A lot of effort goes into strategic development, things need a time to come to fruition. A project at Abberton in Essex is considering water needs over the next 40 years. Very long-term industrial developments on Teesside also have to be assessed.

Apart from hard figures, how will she know if she has done well in her career crossover?

“I’m a big believer in balance,” she replies.

“What does good look like to the customer, to the employees, the shareholders, our partners?

Slightly different things. you need a balanced score card.

“I don’t want a business that achieves everything for only one of those groups. We’re going to nudge the bar for all because everyone here is ambitious. It’s fantastic that we’ve already won so many awards in our industry, and I see a future where we’re perceived as the best water and sewerage company in the UK.” n

23/04/2010 09:22

2350 BQ fullpg Corp April 2010:Layout 1

15/04/2010

11:32

Page 1

NIGEL WRIGHT RECRUITMENT, BRINGING TOGETHER HIGH-CALIBRE CANDIDATES AND WORLD-CLASS ORGANISATIONS.

www.nigelwright.com

BQ ISSUE 9.indb 81

23/04/2010 09:22

ENTREPRENEUR

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 82

SPRING 10

82 23/04/2010 09:22

SPRING 10

ENTREPRENEUR SERVICE WITH A STyLE

How do you get to be best in the business only three years after you launch your company? Michael Hodgson tells Brian Nicholls how he did it

83 BQ ISSUE 9.indb 83

Starting a business at 27 is quite common.

But then being judged best among peers within three years surely lays a benchmark.

That’s what chartered surveyor Michael Hodgson has achieved with his Sunderland start-up.

“We opened the doors with no properties >>

BUSINESS QUARTER |SPRING 10 23/04/2010 09:22

H&K

ENTREPRENEUR

SPRING 10

Clients recommend you to friends and family. It goes on from there. Estate agency side is very recommendation driven - very much networking to sell and it was pretty slow to start. But we’ve gone on from there,” he says. “At the moment I’ve about 220 properties on the market – residential, commercial, sales and lettings. So I seem to be established.”

Sunderland is quite a tough nut in his business, there being maybe 22 other agents working Wearside - and about 10 of those working the city centre.

“It makes for good competition,” he laughs.

“Competition is good. A majority of people now probably get three valuations from different agents, who come out to see them.

The clients then decide from there.

“As the agents are all around the same on fees, I think, they have to sell themselves and their services on what they offer besides. That means demonstrating quality service. In

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 84

terms of winning, it’s who can offer the best service, really.”

That’s why Hodgson is so delighted to have won a gold award in the nationwide Awards for Business competition, when he was named best North East estate agent of 2008, then silver award winner last year. The awards are customer, not peer, driven.

“We don’t have a say in it,” he says.

“Everyone for whom I was acting in buying or selling a property fills out a questionnaire, about 15 questions on how they rate service received.

“We’ve been delighted on both occasions to go to the Marriott Hotel in London and learn that your clients have put you up there on the rostrum. you get marked on every house sale - it’s like being back at school! But the

84

recognition in the end is really worth having.”

Hodgson has wisely chosen to build a business on territory he knows; Sunderland, the Boldons, Whitburn (where he now lives) and Cleadon. He was brought up in Cleadon and went to school at Tunstall then The King’s School, Tynemouth.

“My family have a retail business and were regularly buying commercial property. So I grew up against a background of them >>

Best time to launch The boss of Michael Hodgson Chartered Surveyors and Estate Agents says: “I really don’t think there’s ever a good or bad, or young or old, age at which to set up in business. If setting up is what you want to do, go for it as soon as you get the urge.

“Then put the hours in - seven days a week and never really switch off.

The rewards are there if you’re prepared to work.”

H F

23/04/2010 09:22

H&K - Advert (205x260):Layout 1

19/4/10

10:44

Page 1

Positively...engaged At Hay & Kilner we apply a positive approach to everything we do. We advise businesses and individuals on an extensive range of legal areas.

Delivering what you need when you need it, we put our clients at the heart of our service‌and always apply a personal touch and a positive attitude.

Hay & Kilner – delivering law positively For more information visit www.hay-kilner.co.uk or call 0191 232 8345

BQ ISSUE 9.indb 85

23/04/2010 09:22

ENTREPRENEUR

SPRING 10

Where grass is greener Outside office hours Hodgson regularly uses his Sunderland AFC season ticket and has a newly found passion for golf - two nights a week in summer and every weekend.

But isn’t he getting married next August to Vanessa Reid, the girl from Harton village he saw in a nightclub seven years ago, and whom he recognised as the student who’d earlier been a part-time barmaid in Sleepers bar at East Boldon Metro station?

“Yes, and it’s hands to the pump now too, for I think at the moment she’s doing more of the planning than I am towards the big day,” he admits.

Won’t she jib about golf widowhood so early in marriage? “I think it’ll be ok,” he replies. “Her dad plays golf all the time and introduced me to it. So she’s used to that.”

Time will tell, Michael! But omens are good. Vanessa’s empathy and his go to the heart of even their respective business interests. She acquired her own remarkable enterprise, Paul Windle Design, by management buyout around the time his firm was picking up speed.

The Jesmond, Newcastle, art studio is a choice for packaging for Disney, Warner Brothers and some of the world’s leading toy and game manufacturers, such as Miramax. Says Hodgson: “Starting up together, but with separate ventures, we’ve been able to share and work out each other’s business difficulties and issues, as well as building our personal relationship together.”

BUSINESS QUARTER | SPRING 10 BQ_MAG_section 5.indd 86

86

buying and renting out for development,” he explains. “I didn’t want to go into retail business. I wanted to do something for myself.

Property was what interested me. When I was doing my A levels I also did a test, answering about 500 questions on likes and interests.

That came out saying I should take a property-related course.”

He chose a course in urban property surveying at Northumbria University over options in Edinburgh, Reading and London.

As part of the course he took a year out with GL Hearn, the national property consultancy with a Sunderland office. Later, with a BSc (Hons) to his name, he went to work for another national name, Sanderson Weatherall (Newcastle, Teesside, London, Leeds and Manchester), and became a chartered surveyor.

After broadening his experience with residential property surveying, mortgage and buy-to-let valuations he set up. As a chartered surveyor, he can now cover all aspects of property. He feels fortunate to have got a few good years in before the economy hit recession.

“It was enough to get myself established,” he says, without dismay about the testing time since.

“A downturn helps focus your mind. My core business, about 80%, is residential sales and lettings. The commercial side tailed off a little but it has still been quite busy with rent reviews and lease renewals.”

He does bank valuations too, serving on several panels. “So you have different pools of work - a bit of everything. That helps you over a recession.”

His expertise is taking him further afield too.

“I do acquisitional work for people and have a couple of properties in Durham at present.

I also do off-market work where clients say they want a specific retail property. I’ve just done one in Ipswich.

“And I’m about to do a rent review down Yorkshire way, an investment I’ve just helped the client to find. Being as varied as this, I love coming to work.”

Selling a house for someone, he says, is a very personal thing – for him as well as the vendor and buyer. He explains. “People buy into their estate agent if the job has been done well.

23/04/2010 12:24

SPRING 10

That side is good. Also I also enjoy working on stuff that reaches market. Someone says out of the blue: ‘I want to go and buy that house.’

You write a letter for them to set things off.

Eventually they buy it. Tasks like that are good and quite rewarding.”

Repeat business is also treasured. “You do get a lot of that. People who move a lot will then tend to come back to you. Also you have clients who’ll recommend you to friends and family. It goes on from there. The estate agency side is very recommendation driven, very much networking.”

Wearside’s market, as elsewhere, is very price sensitive just now. “You have to be sure to price property correctly or it doesn’t sell,” he says. “The first week of January was dreadful with the weather, but the following week viewings were up, more people were registering and we’re selling more now.”

He doesn’t expect a fantastic 2010 and will be

ENTREPRENEUR

In terms of winning business, it’s who can offer the best service really pleased even to see it remain steady. The scarcity of mortgage products has eased.

What of the “love ‘em or hate ‘em” flood of telly programmes about buying, selling, refurbishing and decorating homes - the stations’ sesame to cheap production?

However, they seem to perk the housing market and, in Hodgson’s experience, sharpen the instincts of both buyers and sellers.

“I think property is becoming everyone’s hobby,” he says. “They track prices and maintain a bit of interest throughout, so I think the amount of television programmes helps us. Many people are more inclined to talk about their place when selling now - noone just says, ‘this is the living room,’ and so on any more.

“They’ll explain: ‘We’ve redecorated this room, made this improvement with the extension, or fitted a new kitchen,’ and go into detail.

“They tell you a little about what they consider are selling points. It’s nice if people selling their house are selling it to me too as I’m walking round. I’ve then got to sell it on to the people who hopefully are going to buy. So these TV programmes help really.”

Hodgson has a tightly knit staff of three and hopes to grow things steadily, continuing to provide that publicly acknowledged first-class service. n

Practical Personal Professional Durham Executive Masters in Enterprise Management This innovative programme will help you to build on your experience as a manager, giving you the knowledge and understanding to improve your personal performance and make an immediate impact within your organisation. This part-time Masters is designed to suit your busy life.

With mentor support and academic expertise from one of the UK’s top business schools, this course will enhance your business skills and develop your strategic thinking. The 2010 programme starts in October.

For further information please email: management.development@durham.ac.uk, visit www.durham.ac.uk/dbs/mdc or call 0191 334 5547

87 BQ ISSUE 9.indb 87

BUSINESS QUARTER |SPRING 10 23/04/2010 09:22

INSIGHT

SPRING 10

EVERyONE A WINNER

Hosting World Cup football in Newcastle and Sunderland would be a win-win for business and tourism in the North East. Brian Nicholls agrees that’s why everyone should get behind England’s bid to host the 2018 tournament, whether they’re into the game or not

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 88

88

23/04/2010 09:22

SPRING 10

It was an April Fool’s ruse, of course, when a regional business-news website reported a former Pelaw factory’s conversion into offices where Tyneside and Wearside will merge their promotions of tourism and trade globally to overcome cuts in public spending.

But one could be forgiven for wondering, just for an instant, if there was anything in it. Days earlier, Sunderland football club’s towering chairman Niall Quinn, ebullient about Sunderland and NewcastleGateshead being picked as host cities to support England’s 2018 World Cup bid, declared: “It’s great the region has scored a double whammy. Maybe the two could become one.

“We have to show FIFA (the Federation of International Football Associations) that this region is proactive,” he added.

“Working together would improve England’s chances of winning the golden opportunity.”

And he enthused further: “Because we bid separately, the region became larger in the minds of the decision makers, a smart move.

We foresee a time when the region will act as one. We’ll find an opportunity to make that announcement as long as we can find the correct patch of land between here and Newcastle to do it.”

The point he was making really was that not only Sunderland and Newcastle football clubs but also businesses generally must grab the opportunity if the World Cup does in fact come to England for the first time in 52 years in 2018.

Chris Alexander, Sunderland’s head of culture and tourism, makes the point through BQ: “Sunderland and Newcastle are, and will remain, two separate host cities. Niall was referring to a need for the two bids to have a joined-up approach to making the most of their host city status, and the World Cup itself, should England gain the honour of hosting the tournament.”

Talks in fact are already going on to realise Quinn’s vision. Alexander says: “The element of competition between the two bids has been eliminated now that we have both attained candidate host city status.

“And we’re working together to ensure the region is showcased globally to the best of our abilities.”

The fact remains that our region will gain even

BQ ISSUE 9.indb 89

INSIGHT

Major sporting events and other spectaculars are a powerful driver for visitors to stay overnight in a region they may not have visited before

more out of holding World Cup ties at St James’s Park and the Stadium of Light if the two clubs bury their normally bitter rivalry of black and white and red and white long enough for foreign visitors to go away at the end believing the North East is a region without rancour.

Quinn made his overture before an audience of more than 100 representative of the public and private sectors, media and sport at a Stadium of Light presentation. He stressed that any joining up that is successful must happen before August, and will require direction from the central bid office.

There’s all of £58m riding on this. That’s the region’s possible share of the £3.2bn pot if England succeeds with its submission to FIFA against seven other nations (nine that it will bid against to stage the succeeding 2022 event if the first bid fails).

England’s 10 other host cities are: Birmingham, Bristol, Leeds, Liverpool, London, Manchester, Milton Keynes, Nottingham, Plymouth and Sheffield.

Both North East venues will inevitably draw on resources and facilities from a wide area if successful.

Sunderland, first out of the hat in the Football Association’s draw for host venues - and told later its bid is of the highest standard - has already declared that through its partnerships, extending into Cumbria, it can also include stadiums at Middlesbrough, Darlington, Hartlepool and Carlisle in the build-up.

Newcastle United to date seems relatively reticent about the extent of its involvement.

Repeated BQ requests for insights have ended in nil returns, prompting the uncharitable

89

thought that winning promotion back to the Premiership - which couldn’t have come at a better time - is blinding the club to the bigger picture.

The region’s tourism industry, though, is already committed to both host locations.

Melanie Sensicle, chief executive of Visit County Durham, asserts that not only hotels and bars but restaurants, taxi firms and other transport providers - and even non-sporting attractions like museums - right across the region stand to gain. >>

What it can mean for business and jobs It’s hard at this point to estimate the extent of financial benefit South Africa will enjoy hosting this year’s World Cup. But the 2006 World Cup in Germany created 50,000 jobs with an estimated economic gain of over £1bn, making around £3bn in all over three years. And 43% of football fans surveyed said it was their first visit to the host country.

Even the 2002 Commonwealth Games brought Manchester £36m worth of business opportunities via trade missions and inward investment. Around 16,000 jobs were created, lasting from a few months to 10 years. And 300,000 new visitors a year have poured into the city as a legacy of the games, spending £12m.

BUSINESS QUARTER |SPRING10 23/04/2010 09:22

INSIGHT

SPRING 10

“Major sporting events and other spectaculars are a powerful driver for visitors to stay overnight in a region they may not have visited before,” she says.

“Durham County Cricket Club already shows how sport and tourism can interlink to a local economy’s benefit.”

She cites the Tall Ships Race, not due at Hartlepool until August, in evidence but already hotels widely spread in County Durham are reporting 72% occupancy for the duration - with more yet to come.

Visitor chasers NewcastleGateshead Initiative are similarly enthusiastic about prospects for their territory and Sunderland’s. Andrew Dixon, the organisation’s chief executive, affirms: “NewcastleGateshead will work closely with Sunderland and the other designated UK host cities to get right behind England’s bid. It’s a great opportunity for the region to pull together, with huge economic and business benefits if England is chosen.”

Margaret Fay, chairman of regional development agency One North East, says the region has already shown through the International Air Show at Wearside and the Great North Run - the world’s biggest half marathon - that its infrastructure can cope with huge numbers of visitors.

Tens of millions of television viewers across the world would also look in on the region where reputations and legends have been born good for future tourism, she confirms - and each football fan actually in the region might spend £85 a day or £171 if booking accommodation as well.

Aside from tourism, the opportunities for businesses would be considerable. Paul Taylor, head of procurement specialist Compete North East, which is already steering 2,500 of the region’s firms towards opportunities offered by the 2012 London Olympics, says World Cup contracts would be considerable too.

His organisation works closely with Business and Enterprise North East, as well as International Trade and the North East England Investment Centre.

England 2018, on behalf of the bid, considers business interest on three levels. At the top, the likes of BT, Morrisons and PricewaterhouseCoopers are already declared partners with two more expected to follow.

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 90

We’re working together to ensure the region is showcased globally to the best of our abilities

Another five backers will join electricity group npower, and 25 suppliers are also expected aboard.

Luke Peacock, handling the bid’s commercial programme, says the spread of bidding opportunities is such that some financial sums involved will be within the budgets of small and medium size businesses – “anyone able to offer a key product or service”.

Companies can also help by encouraging staff and customers to back England’s bid before FIFA makes a final inspection of all the sites.

Former England and Newcastle United striker Alan Shearer is already urging everyone to sign Morrisons’ in-store petition aimed at getting two million names.

A general survey showed that more than 82% of bosses believe a World Cup tournament would be great or good for business, with

55% saying it would deliver major financial benefit, and 63% predicting it would pep morale.

World Cup soccer is considered the world’s biggest sporting event, even bigger box office than the Olympics. Chris Alexander predicts that for Sunderland the revenue generated from World Cup games would certainly top that of the city’s famous air show, given the duration of the event and the numbers of international visitors expected in the North East – especially from Scandinavia, Germany and Holland.

He believes that by working across the region with partnerships formed to date, everything has been done to ensure as many places and people as possible would benefit. But there’s room for more participants yet.

“Throughout the process to date, businesses have fully supported and got behind the bid,” he says. “The business event in Sunderland has given opportunity to encourage others to back England ‘s bid. I’m sure they will.

“We were very encouraged by the positive response there, and the England 2018 team got another taste of just how positive businesses are in this region. The national bid is looking very strong, And planning is in place for further activity.”

By December we shall know if it has achieved the desired result. n www.competenortheast.co.uk www.england2018bid.com www.sunderland2018-2022.com

World Cup Timeline MAY The FA submits its final bid to FIFA.

JUNE AND JULY FIFA World Cup 2010 finals in South Africa, along with FIFA Congress.

AUGUST AND SEPTEMBER Inspection visits for candidate host nations/cities.

DECEMBER FIFA announces host nations for 2018 and 2020.

90

23/04/2010 09:22

SPECIALIST DISPLAY IMAGING

Chromazone provides cutting edge large format digital printing solutions to the design, marketing, advertising, corporate and education sectors.

Our inkjet and photo-digital printing processes create the ultimate graphics for any display or exhibition requirement.

Digital display printing Exhibition systems Display transparencies Mounting & laminating Scanning and artwork Digital image manipulation

Lightboxes

Display Stands

Interior Displays

Bannerstands

www.chromazone-imaging.co.uk Kingsway North BQ ISSUE 9.indb 91

•

Team Valley

•

Gateshead

•

NE11 OJH

•

0191 487 1999 23/04/2010 09:22

8496

COMPANY PROFILE

SPRING 10

With the UK technically out of recession, preparing for the upswing must be a key part of any business’ planning. But, with the economy facing a unique financial situation, many are asking: where will the funding come from? Keith Robinson, Client Partner at Vantis in the North East, reviews the options available to businesses.

THE FUTURE OF FINANCE FOR NORTH EAST BUSINESSES

T

HE eighteen months since the collapse of Lehman Brothers in September 2008 has been the most difficult time for business since the 1930s. As the first ‘green shoots’ begin to appear, businesses are waking up to the challenging reality of operating in a very different business environment.

Although recessions have always been difficult for business, this one is unique, in that, as businesses start to emerge from recession, they are unlikely to be able to finance their future growth in the way they have done for the past eighty years or so.

Banks have always stated that they do not provide risk capital. The losses they have incurred in the recent past indicate that, whether they intended to or not, they were indeed providing risk capital.

This will not continue as they struggle to rebuild their balance sheets after the credit crunch.

Businesses will in future find it much more difficult to obtain bank finance and when they are able to, it is likely to be less by way of overdraft and more by way of loan.

For the foreseeable future, banks are likely to wish to support only those businesses which can demonstrate a strong track record, competent management and good trading prospects.

Businesses that carry a greater element of risk will increasingly have to look towards other sources of finance, such as business angels, venture capital and other sources of funding designed to accommodate businesses where there is a degree of risk.

It is not a coincidence that Finance for Business North East and Finance Yorkshire have recently introduced a series of equity and loan funds designed to help growing businesses. Nor is the fact that the British Business Angels Association is spearheading a drive to encourage individuals with even a modest amount of surplus capital to consider equity investment in businesses as an asset class in which to invest, along with more traditional forms of investment.

BUSINESS QUARTER | WINTER 10 BQ ISSUE 9.indb 92

Above: Keith Robinson, Client Partner, Vantis North East

“THERE IS A LOT TO BE SAID

FOR HAVING THE RIGHT SORT OF CASH FINANCING THE RIGHT SORT OF INVESTMENT” Serial entrepreneurs are being encouraged to invest in other businesses. That encouragement is coming not only from the Government, but also from the lower rate of return obtainable on investments, as a result of the lowest ever Bank Rate.

These are all positive developments.

Entrepreneurial flair must be financed to achieve its full potential. Bank finance alone is not the way to achieve this. There is a lot to be said for having the right sort of cash financing the right sort of investment; equity and some loan financing risk, with bank overdrafts and invoice finance providing funding for working capital.

There is bound to be some pain at first, as businesses come to terms with these changes to the way they will be financed in the future; but the emergence of a healthy and growing business

92

angel and private equity market will encourage the development of new ideas and technologies.

Vantis Corporate Finance has a substantial network of contacts, many of whom have sold their own businesses and are seeking to invest some of the proceeds. A combination of low returns on alternative investments and tax incentives for equity investment, combined with the inevitable reduction in availability of bank lending, will mean a busy time for corporate financiers.

We at Vantis are well placed to assist businesses in seeking finance, whether equity, loan, overdraft or grant and to assist in the preparation of the necessary forecasts and business plans to enable them to secure the funding they need.

Keith Robinson is a Client Partner at Vantis in the North East and is based at the group’s Middlesbrough location.

He can be contacted on Tel: 01642 221 331 or via Email at: keith.robinson@vantisplc.com

MIDDLESBROUGH New Exchange Buildings, Queen’s Square, Middlesbrough, TS2 1AA. Tel: 01642 221 331 or Email: northeast@vantisplc.com DARLINGTON Tel: 01325 382 323 or Email: northeast@vantisplc.com HARTLEPOOL Tel: 01429 272 109 or Email: northeast@vantisplc.com

23/04/2010 09:22

8496 RI260x205-Gener_Layout 1 09/04/2010 13:30 Page 1

Understanding finance

Free business finance workshops This unique series of finance workshops, publicly funded through Solutions for Business, will cover all aspects of business finance in a totally new and engaging way.

Workshops are happening throughout the North East.

For more information or to register for your free place visit

www.financeworkshops.co.uk Business Link can give you independent advice and guidance or help you find the best assistance for your business. Visit your local Business Link www.businesslink.gov.uk/northeast or alternatively give them a call on 0845 600 9006.

BQ ISSUE 9.indb 93

Project Part-Financed by the European Union

European Regional Development Fund

23/04/2010 09:22

COMPANY PROFILE

SPRING 10

Twenty years ago Newcastle Business School at Northumbria University was officially established. During that time the school has gone from strength to strength and today has a global reputation for delivering some of the best business management education in the UK. Here’s why they have reason to celebrate...

TWO DECADES OF CHANGE

N

EWCASTLE Business School was established in 1989, back in the days when it belonged to Northumbria University’s predecessor Newcastle Polytechnic. Much has changed since then and today as the Business School of Northumbria University it certainly has a lot to celebrate.

Since 1989 it is estimated that over 20,000 students have graduated from the school, 2009 saw over 2,000 students graduate both at home and from programmes with overseas partners.

The School has a network of global partners in academia, business and industry. Northumbria University, through Newcastle Business School, has been amongst the first UK institutions to form partnerships in countries such as Germany, Spain, China, Malaysia and Greece. To date, Newcastle Business School is the largest UK provider of business and management education in Hong Kong. The school also works with some excellent corporate clients that include Procter and Gamble, Nexus, Northumbrian Water plc, eaga plc, several NHS trusts, Severstal Steel (Russia) and UEM Malaysia.

THE LEARNING EXPERIENCE DURING MY MBA WAS KEY TO MY CONTINUING PROFESSIONAL DEVELOPMENT AND GAVE ME THE OPPORTUNITY TO CHANGE DIRECTION IN MY CAREER AND THINK DIFFERENTLY. I PARTICULARLY ENJOYED THE STRATEGY MODULE AND STILL TO THIS DAY RELISH THE OPPORTUNITY TO PUT IT INTO PRACTICE

delivered by highly qualified and experienced academic staff who are actively engaged in research, pedagogical development and consultancy activities with leading organisations.

Newcastle Business School is run by a team of dedicated academic and support staff that are delivering new insights to business through leading edge research and thinking and direct impact through bespoke management education and applied research.

The work of the School has received national and international recognition and the recent university league tables are testimony to this. In the Times Good University Guide 2010 they were ranked 30th in Accounting and Finance, and in Business Studies, they achieved a ranking of 49th out of 110. In both cases, the results represented a climb of 16 positions from last year. When this reputation is combined with their world class learning environment located in a brand new £70 million iconic state-of-the-art development in the heart of Newcastle City Centre, it is very clear that Newcastle Business School is one of the leading business schools in the UK.

Adam Dunlop, MBA, Class of 1989

The student and client learning experience at Newcastle Business School is excellent and as a result,programmes are buoyant and constantly exceed their recruitment targets. Undergraduate, postgraduate and doctoral programmes are

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 94

94

For more information on 20 years as Newcastle Business School please visit: www.newcastlebusinessschool.co.uk/20.aspx or email info.nbs@northumbria.ac.uk

23/04/2010 09:23

SPRING 10

IN ANOTHER LIFE

I’D HAVE TO BE WITH PEOPLE

It could be said Jennifer Welch is at the helm of what’s typically seen, still, as predominantly a “man’s world”. She’s operations director for the Northern division of the Royal Institution of Chartered Surveyors (RICS).

A male-dominated profession, but becoming less so, chartered surveyors fulfil hundreds of different roles. They’re not only experts on all matters relating to property and construction, but can also offer strategic advice on the economics, valuation, law, technology, finance and management of the world’s assets.

These range from the construction of major public buildings to surveying the seabed, and from managing large property portfolios to auctioning antiques.

RICS provides the world’s leading professional qualification in land, property, construction and the associated environmental issues. As operations director, it falls to Jennifer to oversee activity not only in the North East, but across yorkshire, Humberside and also the North West.

BQ ISSUE 9.indb 95

Jennifer Welch, operations director for RICS North

95

Jennifer, North East born and bred, has been with the organisation for 12 years, but didn’t imagine herself in such a role at one time.

In fact, she didn’t know what sort of career she wanted to take up when she left school. In the end, she joined the Army.

“It’s very hard to imagine what I would be doing now if I hadn’t joined RICS,” she says.

“I wasn’t one of those people with a clear idea of where I saw myself in a job. I’ve always been ambitious, though.

“So whichever route I might have taken, I’d have worked hard and looked for opportunity to progress.

“And in reality, there are a few other lives I could be leading now. On one hand, I could still be in the armed forces, perhaps abroad.

On the other, I might have pursued a career in human resources and training.

“After leaving the Army, I spent time working with young people, dealing with youth and employment training which - like my job now - was incredibly rewarding.

“I love working with people, like I do with the RICS membership, because you can see results in people.

“And as an individual, you personally get something back.

“After moving home to the North East, I applied for a part-time job within RICS, and I honestly haven’t looked back.

“Although I’ve come far and my career has escalated over time, I’m quite positive that whatever I decided to do instead would have led me to the same success - whether this was in a so-called ‘man’s world’ or not.

“It might sound clichéd, but there’s really nothing else I’d rather be doing.” n

BUSINESS QUARTER |SPRING 10 23/04/2010 09:23

BIT OF A CHAT

with Frank Tock >> Give us a break Form filling used to be simple - just pick up a pen and squiggle, fold and tuck into an envelope, add a stamp, stroll to the post box and Bob’s your tax collector. Job done.

Now HM Revenue & Customs insists on electronics. Many of us have already this year, instead, had to switch on PCs, get online, log in and file from there. Why? The bureaucrats say if you file online the data is received, checked and processed by a machine that requires no training, takes no comfort breaks and will happily work 24/7.

Now Graham Purvis at Newcastle accountants Robson Laidler tells me every business that employs people must submit their year-end payroll returns online from now on.

Also all traders registered for VAT, and existing businesses with turnover topping £100,000 must from now on file their VAT returns online. Guess what? Penalties are threatened - not only for late filing but for failing to go online at all.

So, what if there’s still no broadband access where you are? Or do you call the kids downstairs from their video games and Facebook? Alternatively you can pass the burden on to someone like Graham Purvis.

Either way, only the Government wins, grinning as it lays yet another processing cost onto business – the corner it’s relying on to clear up the bankers’ mess.

>> Heads, you win you may never win the Lottery but if you get the chance to buy out your boss, or even someone else’s company, give it some thought. Technology entrepreneur Ian Shott is £6m better off

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 96

SPRING 10

- almost half the settlement - after selling to a US drugs firm Excelsyn, the company he created in 2004, and built up largely by acquiring a stagnating Great Lakes Chemical Corporation plant in North Wales.

While 62 employees worked there, Shott worked a lot from his Ponteland home, so efficiently he got revenues up to £12m and profits last year of around £1.5m. He stays on as a consultant and reportedly may go it alone again one day.

Meanwhile, managing director Simon Armes-Reardon and his sidekicks have sold Entec, the Newcastle environment and engineering consultancy, to Amec for £60m-plus. He and fellow executives Doug Morton and Barry Canfield will share £32m, the balance going to their venture partners Growth Capital.

All three are staying on in the £62m turnover business, too. Entec was a £30m MBO from Northumbrian Water five years ago. So success isn’t all random numbers...

>> Get a life What’s wrong with our priorities that we put work before romance? “Time-starved” single professionals have enabled a Gateshead matchmaking agency, after one year as a start-up, to achieve a first-year turnover double its prediction.

Founder Sharon Kell and her small team of Cupids saw a massive 300% rise in applicants seeking a partner in one month alone.

She started Coco Moon after heading Orange’s UK customer retentions department for 12 years.

She says: “Many of our customers are highly successful entrepreneurs or senior decisionmakers who say there are limited options for them in finding a like-minded life partner.

“After all,” she sympathises, “it’s not something you can delegate to your PA.”

>> Google eyed I respect the Chartered Institute of Marketing views on trends in digital use but take issue with the suggestion of how

96

firms should restrict their future website presence. Its recent research suggests that while advertising revenue has been falling over all, return on investment in the digital arena is increasing. Seventeen per cent of companies surveyed said their online spend had overtaken offline, and a further third expect it to do so in the next three years.

But the conclusion emerging, according to CIM’s head of research Mark Stuart, is that in future people will self-select their own digital “villages” in which to live.

“It’s a myth that people explore the world the internet has to offer,” he says. “Most people stick to eight or nine websites they regularly visit.”

That implies businesses must inhabit the spaces their customers inhabit to build brand, create awareness and foster a relationship with the customer.

My quibble is not with the scenario but partly with the mentality of consumers, myself included. If we go through life obsessed by only eight or nine websites aren’t we going to end up tunnel-visioned?

And aren’t the sellers going to limit their access to potential new customers as old ones fade out?

>> Your public servant I’ve a wee bone to pick, too, with the Northern Society of Chartered Accountants.

It has welcomed plans to decant civil servants into the North.

It says that out of its 2,900 or so members, 200 belonging to the Institute of Chartered Accountants in England and Wales already work for the public sector within the region.

And NSCA president Mike Ranson’s view is: “These proposals could enhance the local economy. They could also perhaps encourage more of our bright young career-seekers to consider chartered accountancy in the public sector.” yes, but where will they go? Pockets already exist in our region where jobs in public service outnumber those of the private sector.

Decentralising is a cost saving. But here we need jobs earning revenue, not collecting it.

Still, I recall little having come out of earlier government promises on this.

23/04/2010 09:23

������������������

Opportunities for Business

��� �������� ���������

Hartlepool College of Further Education | www.hartlepoolfe.ac.uk

Employers Apprenticeships are the proven way to train your workforce. Apprenticeships can make your organisation more effective, productive and competitive by addressing your skills gaps directly, even in uncertain economic times.

Facts in numbers

• 80% of those employers who employ apprentices agree they make their workplace more productive.

• Employers who take on a 16-18 year old apprentice only pay their salary.

• 88% of employers who employ apprentices believe that their workforce is more motivated.

• 83% of employers believe that apprentices are the skilled workers that they need for the future.

• One in five employers are hiring more apprentices to help them through the tough economic climate.

What we can do for you

Hartlepool College of Further Education will provide an employer representative who will be able to support and guide you. They will work with you to: • help you decide which Apprenticeship is right for you; • explain the way that Apprenticeships might work for you and if funding is available; • agree a training plan with your apprentice; • recruit an apprentice or support your existing staff into Apprenticeships; • manage the training and evaluation; • give full support with Health and Safety monitoring; and • ensure that national quality standards are met and deliver integrated, coherent training.

Why would you want to take on an apprentice?

Skills shortages are still one of the biggest threats to UK business. Apprenticeships can help businesses across all industries by offering a route to harness fresh talent. If you have trained staff with the right skills for the job they can do a wider range of tasks and take on new responsibilities - this can help to reduce skill shortages, minimise staff turnover and workplace accidents, and increase productivity.

Hartlepool College of Further Education is the largest provider of Work Based Training in the Tees Valley and can offer you apprentices in a huge range of areas including: Accounts Hairdressing Plumbing Electrical Installation Catering and Hospitality Sport Process Engineering Early Years Motor Vehicle Brickwork Carpentry and Joinery Business Administration Electrical and Mechanical Engineering Activity Leadership Outdoor (sports) Health and Social Care Fabrication and Welding Painting and Decorating Information and Technology

For further information, please contact us:

01429 292888 | business@hartlepoolfe.ac.uk Hartlepool College of Further Education, Stockton Street, Hartlepool TS24 7NT Tel: 01429 292888 | Text “feinfo” to 88020 email: business@hartlepoolfe.ac.uk Web: www.hartlepoolfe.ac.uk

BQ ISSUE 9.indb 97

23/04/2010 09:23

EVENTS

SPRING 10

BQ’s business events diary gives you lots of time to forward plan. If you wish to add your event to the list send it to: editor@bq-magazine.co.uk.

The diary is updated online daily at www.nebusinessguide.co.uk

MAY 13 Better Business, Better People – Help Your Business to Full Potential, free seminar by Jacksons Law Firm and Vantis. The Wynyard Rooms, Billingham (8.30am). Contact: callen@jacksons-law.com 13 Free Workshop for Future Business Owners, run by OneDoor (partnership of Teesside University and five Tees Valley colleges), Redcar Business Centre (9am). Contact: tel 01642 384 400, edp@tees.ac.uk.

14 Better Business, Better People – Help Your Business to Full Potential, free seminar by Jacksons Law Firm and Vantis. Central Sq, Newcastle (8.30am).

Contact: callen@jacksons-law.com 14 NECC Durham Committee, NW HQ, Pity Me, Durham (8.15am). Contact: tel 0300 303 6322.

18 NECC women members’ Networking Lunch, Riverside Stadium, Middlesbrough (11am). events@necc.co.uk, tel 0300 303 6322 19 Andrew Cooper (TT2) on New Tyne Crossing: pt3, ICE event, Central Sq, Newcastle (5.45pm). Contact: laura.tweddle@jacobs.com.

20 Tyne & Wear Society of Chartered Accountants agm, Northern Counties Club, Newcastle (12.30).

20 Free Workshop for Future Business Owners, run by OneDoor (partnership of Teesside University and five Tees Valley colleges), Redcar Business Centre (9am). Contact: tel 01642 384 400, edp@tees.ac.uk.

21 Teesside Chartered Accountants Student Society annual dinner, venue tba 21 Closing date for entries to the North East Exporters Awards. Contact: www.ukti.gov.uk or e-mail ken.cuthbert.ukti@onenortheast.co.uk.

22 to 30 UKTI’s Brazil market visit. Contact: Keith Stockdale, tel 0845 050 5054 / 07810 644 829. E-mail keith.stockdale@ukti.rito.co.uk 23 to Jun 3 Market Visit China with UKTI. Contact: tel 0845 050 5054. enquiries@ukti.rito.co.uk.

25 Late Payments, CECA (NE)/Watson Burton breakfast seminar led by James Harrison (Watson Burton), Durham CCC, Chester le Street (8am). Contact: Trish Hewitt, tel 0191 228 0900. kellceca@aol.com 25 to 27 Thinking Digital conference, The Sage, Gateshead. Contact: heather. peacock@codeworks.net 27 Service Network’s Bank of England Economic Review by Rosie Smith, the bank’s agent for the North East, Maersk Training Centre, Newcastle (9am).

Contact: Alexis Towell, tel 0191 244 4031.

JUNE 6 NECC Teesside members’ Annual Dinner, Middlesbrough Town Hall, 6.30pm. events@necc.co.uk, tel 0300 303 6322 8 Tax Update: Spring, ICAEW Northern Region, Ramside Hall Hotel, Durham (9.30am). Contact: Charmaine Murphie, tel 01908 248 179, e-mail regions. bookings@icaew.com 8 Audit and Accounting Update: Spring, ICAEW Northern Region, Ramside Hall Hotel, Durham (1.30pm). Contact: Charmaine Murphie, tel 01908 248 179, e-mail regions.bookings@icaew.com 9 From Sick Note to Fit Note, Getting It Right, Acas seminar, Newcastle (9.30).

Contact: tel 08457 383 736.

8,9 Innovative Ways of Supporting the Health and Social Care Workforce, two day conference at the Hilton, Gateshead.

10 Service Network’s Culture for Success Awards, Northern Stage, Newcastle.

Contact: tel 0191 244 4031, e-mail talk@service-network.co.uk.

BUSINESS QUARTER | SPRING 10 BQ ISSUE 9.indb 98

10 Free Workshop for Future Business Owners, run by OneDoor (partnership of Teesside University and five Tees Valley colleges), Hartlepool College of Further Education (9am). Contact: tel 01642 384 400, edp@tees.ac.uk.

14 Tax Faculty Seminar: Steering a Course through Changing Times, ICAEW Tax Faculty, Ramside Hall Hotel, Durham (2.15pm). Contact: Katerina Nicholas, tel 0207 920 3511, e-mail taxfac@icaew.com 15 The Route to Technician Membership Workshop, ICE event, Central Sq, Newcastle (5.45pm). Contact: irene.hurley@ice.org.uk.

17 Conducting Investigations, Acas seminar, Newcastle (9.30am). Contact: tel 08457 383 736.

22 From Sick Note to Fit Note, Getting It Right, Acas seminar, Newcastle (9.30). Contact: tel 08457 383 736.

29 NECC agm, Rainton Meadows Arena (10.45am). Contact: tel 0300 303 6322.

Book on www.necc.co.uk.

30 Having Difficult Conversations, Acas seminar, Newcastle (9.30am). Contact: tel 08457 383 736

JULY 1 Free Workshop for Future Business Owners, run by OneDoor (partnership of Teesside University and five Tees Valley colleges), Sunnyfield House, Guisborough (9am). Contact: tel 01642 384 400, edp@tees.ac.uk.

8 Professional Review Seminar, ICE event, Stadium of Light, Sunderland.

8 Free Workshop for Future Business Owners, run by OneDoor (partnership of Teesside University and five Tees Valley colleges), Teesside University, Darlington(9am). Contact: tel 01642 384 400, edp@tees.ac.uk.

13 Roadshow: Climbing the Clarity Curve, ICAEW Audit and Assurance Faculty, Ramside Hall Hotel, Durham (2pm) Contact: Tracy Gray, tel 0207 920 8526, e-mail tracy.gray@icaew.com 14 From Sick Note to Fit Note, A New Approach, Acas seminar, Newcastle (8am). Contact: tel 08457 383 736.

15 North East Exporters Awards, Hilton, Gateshead. Contact: www.ukti.gov.uk or e-mail ken.cuthbert.ukti@onenortheast.co.uk.

15 Free Workshop for Future Business Owners, run by OneDoor (partnership of Teesside University and five Tees Valley colleges), Redcar Business Centre (9am). Contact: tel 01642 384 400, edp@tees.ac.uk.

15 to 17 Brainwave 10, an event for adults and children showing the importance of science in daily life, organised by County Durham Development Company at Netpark, Sedgefield (10am-5pm). Includes a return of the Royal Institution summer lectures, also creative hands-on workshops and career carousels. Contact: lucy@kinetick.co.uk 20 Employment Law Update, Acas seminar, Newcastle (8am). Contact: tel 08457 383 736 Please check with the contacts beforehand that arrangements have not changed. Events organisers are also asked to notify us at the above e-mail address of any changes or cancellations as soon as they know of them.

KEY:

Acas: Advisory Conciliation and Arbitration Service, CECA (NE): Civil Engineering Contractors Association (North East), HMRC: Her Majesty’s Revenue and Customs, ICE: Institution of Civil Engineers, NSCA: Northern Society of Chartered Accountants, FSB: Federation of Small Business, Tbc: to be confirmed.

98

23/04/2010 09:23

PUTTING THE SHOW BACK INTO BUSINESS. Meetings and private events at the Mal.

Mal life. In these times your business needs an edge. That daring difference that speaks volumes to your client or your competitors. At Malmaison, we put the show back into business. This is no glitzy display with no real depth, but a collection of glamorous meeting rooms, each with a deep-rooted love for style, ultra tasty cuisine, outstanding wine and an undying dedication to providing amazing hospitality. It’s pure theatre, with absolutely no dramas. Add some show to your business. We dare you. That’s Mal life.

DAY DELEGATE RATE

£35 FROM

PER PERSON

Terms and conditions apply.

To book call in or call

newcastle

0191 245 5000

or email: events.newcastle@malmaison.com For the best room rates GUARANTEED visit malmaison.com BQ ISSUE 9.indb 99

Hotel | Bar Mal | Brasserie | Le Petit Spa | Café Mal

Quayside, Newcastle upon Tyne NE1 3DX 23/04/2010 09:23

www.sandersonyoung.co.uk

BQ ISSUE 9.indb 100

23/04/2010 09:23

REGIONAL PROPERTY SALES

EXCLUSIVE LETTINGS SERVICE

INFORMED FINANCE SOLUTIONS

HIGH IMPACT MARKETING

PROFESSIONAL EXPERT ADVICE