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BUSINESS QUARTER

BUSINESS QUARTER North East: Spring 2015

Celebrating and inspiring entrepreneurship

The Kee to success Saks supremo Stephen Kee reflects on his creative career

No biz like show biz Reality TV rejected him, but that didn’t deter Darren Williams

Absolutely fab-lab Meet the driving force behind business-academia link ups

STEM REPORT

£2.95 Business Quarter Magazine

North East: Spring 2015

True vision

A gifted artist turned scientist is saving people’s sight

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EDITOR’S VIEW NORTH EAST ISSUE 29 Many would back Sir John Hall’s declaration to the Entrepreneurs’ Forum: that the North East region hasn’t enough people to support its existing businesses and future growth. Business success usually starts from a doorstep market. A population haemorrhaging since the decline of traditional industries has shrunk local demand for many goods and services. It has contributed to the dire skills shortage that participants in this issue’s Live Debate spell out. Sir John’s observations come at a time when one of the region’s local enterprise partnerships has been unable, for about nine months, to agree on terms for a chief executive – this also at a time when other parts of the North, like Manchester and Leeds, are on crusades to prosperity with government support, both moral and financial. And why do places elsewhere in England with even fewer people than Newcastle and Sunderland have more start-ups? While council representatives on LEPs have a special responsibility to see local taxpayers’ money is prudently spent, it wouldn’t be true to say that on LEPs they’re directly charged by the public to fulfil this duty. They’re elected to their local authority, but appointed representatives to the LEPs as local authority leaders. as trade rivals in the Far East look forward to by 2017? As lack of transparency and infighting permeate through key issues, Sir John – an eminent Conservative supporter, remember – calls for the restoration of a true regional body which central Government throughout its term has shown no liking for, even though Scotland is promised all sorts of privileges, some potentially damaging to one of the two English regionsadjoining it. But enough gripe. At last the long awaited and greatly needed new Wear bridge is to go ahead soon – and let’s overlook that a job once certain to have gone to a North East firm has, on this occasion, finally been fought out by firms from Spain, Germany, Belgium and even Northern Ireland. Let’s also read with relish in this issue about North East individuals who, regardless of larger carrying the North East torch of enterprise ahead: John Savage, who took the plunge successfully in the midst of recession, Also, don’t forget to follow BQ Live online to find out who’ll carry the colours for our region in this year’s national Emerging Entrepreneur awards. Stories of inspiration, all…

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room501 Publishing Ltd, Spectrum 6, Spectrum Business Park, Seaham, SR7 7TT. www.bqlive.co.uk. Business Quarter (BQ) is a leading business to business brand recognised for celebrating entrepreneurship and corporate success. The multi-platform brand currently reaches entrepreneurs and senior business executives across Scotland, The North East, Yorkshire and the West Midlands. BQ has established a UK wide regional approach to business engagement reaching a highly targeted audience of entrepreneurs and senior executives in high growth businesses both in-print, online and through branded events. All contents copyright ÂŠ 2015 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 company profiles are paid for advertising. All information is correct at time of going to print, May 2015.

CONTENTS 28

QUITE A KEE TO SUCCESS

Hair and beauty extraordinaire Stephen Kee takes his creative talents international

Spring 15

A FRONT RUNNER THATâ&#x20AC;&#x2122;S JUS T THE JOB

A WHOLE LO TTA ROSE? Lee Rankin, Managing Director, reveals his love of the pink stuff

R U N W AY T O R E W A R D S Brian Nicholls explores the Belgian options

NEW NAME, NEW DIMENSION Engineer extraordinaire Andrew Frank is having a major company rebrand

Celebrating and inspir ing entrepreneurship

FEATURES

REGULARS

SEEING IS BELIEVING A gifted artist turned science entrepreneur is saving people’s sight

ON THE RECORD A North furniture firm is celebrating bringing production back home

THE KEE TO SUCCESS Saks supremo Stephen Kee reflects on his creative career

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

BQ LIVE DEBATE The question: How can we harness technology to create the ‘future city’?

AS I SEE IT Business leader David Cliff sounds the alarm over social media overload

A NEW DIMENSION How a major rebrand became a game changer for one North company

COMMERCIAL PROPERT Y Behind the region’s biggest new deals

FASHION The edgy ‘rock ‘n’ roll’ designer who is striking a chord with men

BIT OF A CHAT With BQ’s backroom boy Frank Tock

EVENTS Key business events for your diary happening across the North East

52 66 70

A B S O L U T E LY F A B - L A B Shirley Atkinson is driving innovations that link academia and business R U N W AY T O R E W A R D S A reliable air service to Belgium is boosting business and tourism NO BIZ LIKE SHOW BIZ TV’s The Apprentice rejected him, but that didn’t deter Darren Williams

62 52

DO YOU WANT TO KNOW A SECRET? Shirley Atkinson is driving innovations that link academia and business

CRIS TAL CLEAR VISION The amassador for one of the world’s most ironic champagnes enjoys a glass or two

BUSINESS UPDATE

Deep thinking: Andrew Hodgson and reshaped SMD are looking at sales possibilities in flooded mineral mines

Reshaped SMD looks to mop

Money has been secured Housebuilding is on recovery throughout the North East. Around 1,200 homes could be built over the next four years by Alnwick housebuilder Cussins alone. Its £5m investment will cover more than a dozen sites from Alnwick to North Yorkshire and over towards Cumbria, giving perhaps 500 jobs. Money has been secured from the Business Growth Fund, with a £7m debt facility from Lloyds Bank Commercial Banking. Building in Alnwick already progresses. Majority shareholders of this firm are chief executive Jabin Cussins and his chairman father Peter, former North East Business Executive of the Year whose reputation for high standards goes back. Building in Alnwick already progresses. Majority shareholders of this firm are chief executive Jabin Cussins and his chairman father Peter, former North East Business Executive of the Year whose reputation for high standards goes back. Majority

penetration now for the company in Asia and beyond. SMD, 84th in the North East’s list of Pioneering subsea SMD has been sold to Top 200 companies, and an early entrant to Chinese transport giant CSR Times Electric the subsea vehicle business, has 350 employees for £120m. SMD – Specialist Machine and revenues of £100m-plus a year. Backed Developments, parent of innovative Soil for some years by venture capital, it had been Machine Dynamics – is expected through this developing with a view to becoming part of a deal to penetrate major new markets for its large engineering group, Hodgson confirms. The world leading robotic subsea vehicles. Almost sale follows a decision by SMD’s private equity as the sale was announced it was reported investors, Inflexion Private Equity. that SMD is now leading a E12.6m project to build a machine capable of extending the life of flooded mineral mines around the world. It is partnering firms in Holland, Slovenia Informal Friday, a networking breakfast and Spain on this. Hong Kong club for small business owners on Stock Exchange-listed CSR South Tyneside and Wearside, is Times Electric is believed celebrating its first anniversary. ready to invest heavily East Boldon businesswoman in SMD’s capabilities Joanne Luther set it up for and ambitions, and people starting businesses chief executive Andrew and home based/sole www.uvctcyutv.co.uk Hodgson – who also chairs traders. has an excellent Subsea NE and is viceUp to 20 attend on the last selection of chairman of the North East Friday of each month (9am to yxtcr cyx Local Enterprise Partnership 11am) at East Boldon Bistro No4, – foresees stronger market near the local Metro station.

Business builders

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Pushing the boat out to tackle the skills gap Young people from across Teesside have been rethinking the way they view career options, thanks to the High Tide Foundation Almost three years on from launching, High Tide has connected with over 1,000 young people and gained support from 50 private sector businesses to deliver engaging and inspiring industry-led work experience. High Tide’s Summer Scheme is one of the Foundation’s flagship programmes, offering two weeks of practical training in different companies to understand the interrelationships in the supply chain. The number of school leavers taking part has tripled since the programme was introduced with over 100 placements available this year for 50 school leavers from across the region. For those still in the education system, in January 2014 a Cadetship programme was launched. The Cadetship enables 13 and 14 year olds the opportunity to spend eight weeks, after school, learning about international trade, following the journey of a mobile phone from manufacture in Taiwan through to a local retail store on Teesside. As one of the founding members of High Tide, PD Ports, owners and operators of Teesport, one of the UK’s largest ports, recognised a real need to enlighten the region’s young people in terms of working life, focussing on the diverse number of roles available on their door step and the types of skills that they require. David Robinson, PD Ports CEO and High Tide Trustee, commented; “Teesport is the northern gateway to international trade and as one of the region’s largest employers it is our responsibility, along with the rest of the business community, to demonstrate the great reasons to start a

‘We need to champion the global opportunities to be enjoyed as a result or working for some of its world-leading organisations. We can’t expect young aspire to something they don’t know exists.’ David Robinson, PD Ports CEO

High Tide Cadets starting their six-week after-school programme career on Teesside. We need to champion the global opportunities to be enjoyed as a result or working for some of its world-leading organisations. We can’t expect young aspire to something they don’t know exists.” “What sets High Tide aside is collaboration. We need to work together as a region to promote what’s on offer. Traditionally companies have offered work placements or career development programmes on an individual basis, High Tide seeks engagement between businesses to deliver an exciting and unique experience across the entire supply chain.” One of the biggest challenges High Tide faces is buy-in from schools and teachers. This year the Foundation has embarked on a new campaign ‘Educating the Educators’ which aims to give greater understanding to teachers about the region’s industrial platform by offering the opportunity to go out on the River Tees and experience first-hand what goes on. On 18th September High Tide will host its first fundraising ball at Wynyard Hall. BBC Breakfast Reporter, Steph McGovern has been announced as guest speaker, along with local entertainment

from upcoming local music artists Samantha Durnan and the Collectors Club. The night will be the perfect opportunity to celebrate the region’s young people as well as the collaboration between industry and education through High Tide’s programmes.

Tickets for the fundraising event in September are available by contacting Lauren Bywater on 0791 4018 856.

Twitter: @hightidetees Facebook: High Tide Foundation Web: www.hightidefoundation.co.uk High Tide is driven by the growing need to connect industry and schools, offering young people a real insight into working life, with a particular focus on the maritime sector and the wider supply chain.

BUSINESS UPDATE bqlive.co.uk/breakfast

Jobs barometer Unemployment in the North East fell 1.2% to 8% – its lowest rate in seven years – in Q4 2014, and subsequently to 7.8%, according to the Office for National Statistics. But, against a national average of 5.7% that was still Britain’s highest rate. Following is a selection of 50 jobs or more in the North East being created or ended, as announced during the past quarter:

Simon Bailes: Investing in staff

Car sellers drive their growth Major motor dealers in the North East are heavily re-investing in their businesses on the back of the ongoing buoyancy of car sales. Vertu Motors, the UK’s sixth largest retailer, is relocating to a new headquarters within Team Valley, Gateshead, having paid £1.4m to bring central operations together in the 23,000sq ft Keelman House. Gavin Black and Partners negotiated for Vertu, and the Leeds office of JLL and GVA for Helix Property Advisors. Benfield the region’s second biggest dealership is continuing to expand on Wearside, a relatively new sales point for it. It is building a new £5.7m Audi outlet there. Having recently completed the building of a new £5m Ford retail outlet on Newcastle Road, it is now building its 12-car Audi showroom on the same site – part of a £20m capital investment that will replace an existing showroom on Stadium Way. The development, ready by autumn, will include a 16-bay workshop. The family-owned business employs more than 1,500 staff. Chief executive Mark Squires says growing consumer confidence drove up sales to £622.4m for 2013 – a 15% rise over 12 months. Mill Garages North East, biggest Volvo dealer in the UK, is marking 50 years of selling that marque with sales of almost 3,000 new Volvos a year from showrooms in Newcastle, Sunderland, Stockton and Harrogate. The launch of an XC90 sports utility vehicle, and the start of a big refurbishment programme across the group, are expected to bring substantial growth, following a 2014 turnover of £98m and pre-tax profit of £803,497 under managing director Bill Ward and chairman Bob Nicholson, who led a management buyout in 2008. Mill Garages, employing 176 people, was established in 1947 by George Rollings near the windmill on Newcastle Road, Sunderland. Simon Bailes Peugeot, the Northallerton based dealership expects to invest in more staff having been appointed as an approved Citroen service and repair centre and parts distributor as it reports faster growth. The firm, which has dealerships also at Stockton and Guisborough, has strengthened its status as the UK’s most accredited Peugeot dealership after securing its 24th Guild of Gold Lion award.

Arising 1,065 jobs at Shine, a Sunderland event where job seekers had opportunity to present their skills to 15 employers, some of the attendees gaining positions within a week of the event. 1,000 jobs if Newcastle property group Malhotra doubles its workforce as expected 600 more by the end of next year at Utilitywise the North Tyneside based utilities cost consultancy. 350 jobs now expected to be created by next August at the Offshore Structures (Britain) operation being set up on the former TAG Energy Solutions site at Haverton Hill. 300 jobs in expansion at TRW car parts manufacturer, Peterlee. 300 by call centre operator Teleperformance at Gateshead. 200+ jobs at a Barclays centre of excellence for fraud detection – first in the UK. These are in addition to 100 jobs at Doxford created as part of Barclays’ roll-out of its video banking service, enabling customers to speak face-to-face with advisors via computers, smartphones and tablets. 200 call centre jobs in Middlesbrough and Sunderland for Firstsource Solutions. 150 over the next five years at Newcastle electro-mechanical engineers Houghton International under a £1m investment. 130 more jobs by TRW car parts manufacturer at Sunderland.

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Hay & Kilner: ‘On the ball and very proactive’ Over the last 2 years, Hay & Kilner has seen its commercial property department go from strength to strength with a partner led team committed to providing the highest levels of service and technical ability to their growing portfolio of regional and national clients. The leading property team has carried out over 500 transactions the length and breadth of England and Wales, securing their position as one of the leading providers of commercial property advice in the North East. This is a view supported by independently researched guide to the UK legal profession, Chambers & Partners: “There’s nobody else who gets things done as fast as they do. Things never drag on and they keep you fully informed”. Hay & Kilner’s commercial property division has an extensive commercial client base including prominent, local and national players in the property market. The team draws upon expertise from across the firm to provide a fully integrated service to their clients when other issues arise such as property litigation and construction issues. 2014 was an active year for the property team, particularly in the care and leisure sectors representing many such clients including a long established North East based Care Home Group and a Hotel & Leisure operator. Deals in the care and leisure sectors in 2014 collectively amounted to many millions of pounds. This success has continued into 2015 with an increased level of new instructions. The team also represents clients in landmark deals involving heavyweight organisations such as national house builders. Other areas of expertise for the Hay & Kilner team cover rural, leisure, retail & wholesale, commercial development & investment, professional practices & their pension funds and charities. “Tenacious and extremely thorough,” department head, Nicola Tiffen receives instructions on significant sales, purchases

‘We pride ourselves in being an integral part of all the transactions we are involved with and providing a personal and tailored service’

Richard Freeman-Wallace, Nicola Tiffen & Paul Taylor of Hay & Kilner

and refinances from a number of clients. She is singled out in independently researched guide to the UK legal profession, Chambers & Partners for her “pragmatism and capacity for translating complex legal language into clear advice”. She acts for various multi-unit operators regularly providing advice to them on freehold acquisitions, lease renewals, the grants of underleases and development agreements for the acquisition of new premises. Nicola recently acted on the sale of a prominent Newcastle development site for student accommodation and for the Landlord on its detailed lease restructuring with its national operator tenant. Highly regarded practitioner Richard FreemanWallace is recommended in independently researched guide to the legal profession, Chambers & Partners as being “very polished and very competent.” Clients deem him “tremendously reliable” and are quick to assert his “wealth of experience” and ability to “explain everything thoroughly”. He continues to conclude transactions for house builders, property investors and developers. He recently worked on the development of a site in Blackpool for a national chain of hotels and has just completed a complex series of transactions involving a hotel in Llandudno. Partner Paul Taylor has over 30 years’ experience

working in all areas of property law. He acts for many longstanding clients including restaurant operators and property investors. Paul is recommended in The Legal 500, an independently researched guide to the UK legal profession for the ‘ten out of ten’ service he provides for his clients. Nicola Tiffen, Partner & Head of Commercial Property at Hay & Kilner commented: “We are delighted with our team’s achievements. We pride ourselves in being an integral part of all the transactions we are involved with and on providing a personal and tailored service for each client, whatever their size. This approach has seen our team win significant new client and panel appointments over the last year and to continue.

For further information, please contact Nicola Tiffen Call: 0191 232 8345 Email: Nicola.Tiffen@hay-kilner.co.uk Visit: www.hay-kilner.co.uk

BUSINESS UPDATE bqlive.co.uk/breakfast

Supply chain drive A newly formed North East Automotive Alliance (NEAA) has set up in Sunderland under chief executive Paul Butler (right) seen here with Paul Watson, leader of the city council. It brings together automotive manufacturing and supply businesses to help the North East grow its supply chain, unlock its global potential in this sector and improve regional competitiveness. It brings together automotive manufacturing and supply businesses to help the North East grow its supply chain, unlock its global potential in this sector and improve regional competitiveness.

Orders for Kromek

Driver-only pays

Kromek, the Sedgefield radiation detection specialist focused on medical, security and Gateshead-based Petards, the AIM quoted developer of advanced security and surveillance nuclear markets, has won a $2m contract systems, has a near £20m order book, more than half due for delivery this year. It has shown extension with an agency of the US Department £600,000 profit against a previous £2.3m loss with revenues more than doubled to £13.5m. of Defence, to supply radiation network Its big seller: its Eyetrain system offering driver only train operation. The firm, employing detectors. It has also recently won a £247,000 about 80 people, has an agreement to supply Siemens’ worldwide rail vehicle business, and order from Asia for equipment with nuclear recently won an order for its on-board digital CCTV systems to go into new Siemens trains. and security applications, and contracts worth This is the equipment providing driver only capability and internal CCTV coverage. a combined $1.1m to supply radiation detectors and parts to a technology firm involved in health-checking bones. Kromek has a £3m funding back-up North East firms will deliver the online service from HSBC to support its expansion. to help other companies of the region grow. The Government’s The NetPark firm expects revenues The North East Local Enterprise Partnership has nationwide rollout for the year to 30 April of £8.1m. appointed Escher software group to deliver the of superfast This would show year-on-year Growth Hub amassing data and information on www.uvctcyutv.co.uk broadband had growth of 38% – and growth from business support in the region. has an excellent reached more the first half The firm, from Newcastle, will work on the selection of than 2m homes hub with business support publisher Cobweb yxtcr cyx and businesses by Information of Gateshead. The Roundhouse, a February, with more than Newcastle design and digital consultancy, will 85,048 properties in the North Square One Law in Newcastle has advised design the hub’s interface. East accessing internet speeds faster than Meaalofa Developments Holdings on the The Growth Hub is part of the LEP’s Strategic 24Mbps from properties not covered by existing sale of its subsidiary to London Metric Economic Plan which has £500,000 of support commercial networks. Now on track to take Property in a deal worth £56.5m. Meaalofa from the Government’s Local Growth Fund. LEP superfast access to 95% by 2017, the UK is thus owned a 410,000sq ft distribution centre, chairman Paul Woolston describes the launch expected to stay ahead of the EU “big five” wholly let to Eddie Stobart. as key in helping new and growing firms gain nations in access and take-up. support they may need easily.

FACT OF THE QUARTER

Broadband speed-up

Hub drivers named

£56.5m deal sealed

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Driving the business Car buyer Car-Ching, of Shiremoor on Tyneside, has opened in Darlington, Alnwick and Blyth, hoping to set up 60 new offices across the UK over three years. It was established last year by trade-experienced Jason Miller, who runs the business with his wife Niki. He also owns the Overdrive North East car dealership in Morpeth.

Driver-only pays Gateshead-based Petards, the AIM quoted developer of advanced security and surveillance systems, has a near £20m order book, more than half due for delivery this year. It has shown £600,000 profit against a previous £2.3m loss with revenues more than doubled to £13.5m. Its big seller: its Eyetrain system offering driver only train operation. The firm, employing about 80 people, has an agreement to supply Siemens’ worldwide rail vehicle busines.

Funding extended The Finance for Business North East Angel Fund has reached its initial target of £7.5m invested – in 55 businesses. Part of the Finance for Business North East portfolio of funds launched four years ago, it has been given a 12 month extension. It is administered by Newcastle based Rivers Capital Partners.

NEWS MAKERS

Clinical growth Furniture Clinic, a Burnopfield furniture restorer, is going for growth and more staff. Started over 10 years ago, it has increased floor space from 12,500 to 16,500sq ft. Managing director Ben Staerck says Furniture Clinic and sister business Handbag Clinic plan to recruit 10 more staff before year end. Two new apprentices have also been taken on. Furniture Clinic and sister business Handbag Clinic plan to recruit 10 more staff before year end. Two new apprentices have also been taken on.

Offshore training stepped up AIS Training, Tyneside’s offshore training firm, is setting up a multi-million pound training centre to serve the wind industry at Immingham in Lincolnshire. The centre, creating up to 30 jobs, is expected to train more than 15,000 delegates annually. Its training village on Tyne Tunnel Estate already provides both renewable and offshore training, and is coaching 17,500 delegates a year from around the world. Renewable energy may create 70,000 new jobs over the decade. Controversial new rules for ‘larger’ offshore workers, introduced on 1 April, are causing a rush in business from operators and individuals alike at Tyneside. The rules relating to the size of workers travelling offshore by helicopter have been introduced by the Civil Aviation Authority following safety concerns over weight increases in offshore workers.

Gradon Architecture claims to be the first British practice in its field setting up in Mongolia. Based already at Ryton and Derry, it has now opened also in Ulan Bator, the Mongolian capital, taking on three local staff.

Four Housing the Berwick and Durham not-for-profit housing provider has won Best Client Award from the National House Maintenance Forum for its work on Berwick’s Miller Homes has retained its five star rating, the highest possible, for the fourth year running in the New Home Customer Satisfaction Survey run by the Home Builders Federation.

Valued Accountancy of Consett has been named Overall Accounting Partner of the Year at software giant Xerox’s awards and is the cloud-based accountancy software firm’s only platinum partner in the North East – and one of only a handful in the country – having achieved platinum status.

AAF International at Cramlington, has been named Company of the Year in Tyneside.

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Judith retires

Fortune in fertiliser ICL Fertilisers, which owns the Cleveland potash mine at Boulby, has launched a £50m expansion that includes building a granulation plant to increase market share. It also has a separate £38m investment under way for its mine, surface facilities and Teesport loading site, which has backing from the Regional Growth Fund.

Trains for Scotland Hitachi has won a contract to provide and maintain 70 trains for the ScotRail franchise operated by Abellio of Netherlands. All but eight will be built in the new fabrication plant at Newton Aycliffe. The same factory has an order for East Coast Main Line trains. Hitachi has won a contract to provide and maintain 70 trains for the ScotRail franchise operated by Abellio of Netherlands. All but eight will be built in the new fabrication plant at Newton Aycliffe. .

The Bishop Auckland based education subcontractor Learning Curve Group has been sold to MML Partners, a private equity firm, and three directors of the firm in a multi-million pound deal. The equity split between the purchasing firm and the three directors is 50:50. Founder Judith Moran, 2014 winner of the Durham and Wearside Executive of the Year Award, and of the Susan Dobson Award for Entrepreneurship, has retired. She and co-founder Tony Outhart, who has also exited, are minority shareholders now. One of the three purchasing directors, Brenda McLeish, is chief executive.

Trains for Scotland Hitachi has won a contract to provide and maintain 70 trains for the ScotRail franchise operated by Abellio of Netherlands.

QUOTE OF THE QUARTER ‘I do the litmus test when I come to a new city, and ask the taxi driver ‘please take me to the innovation centre in this town’ and at least 99% of the drivers would drive me to a major science park. I’ve tried it three times in Newcastle and they looked very strangely at me. I tried the hairdresser but she knew nothing about local enterprise partnerships. North East LEP? She didn’t have a clue. We have to work together to change that, engage with the general public. You can do that with open innovation projects.’ Hans Moller, recently appointed innovation director for the North East Local Enterprise Partnership at the BQ Live Debate (full report, page 32) Council backs bank

Distillery launch Sunderland is to get a distillery. It comes with a £500,000 investment refurbishing Tavistock Hospitality’s Roker Hotel. The former R-bar there is now the Poetic

Durham Council has invested in Atom, the soon to be launched digital bank. It has taken an equity share based on rent for Atom’s premises at Northumbria House, Aykley Heads. At least 170 jobs are expected to come with the bank’s opening. It has taken an equity share.

£56.5m deal sealed Square One Law in Newcastle has advised Meaalofa Developments Holdings on the sale of its subsidiary to London Metric Property in a deal worth £56.5m. Meaalofa owned a 410,000sq ft distribution centre, wholly let to Eddie Stobart Logistics on 28 acres at Dagenham.

Judith retires The Bishop Auckland based education subcontractor Learning Curve Group has been sold to MML Partners, a private equity firm, and three directors of the firm in a multi-million pound deal. The equity split between the purchasing firm and the three directors is 50:50. Founder Judith Moran, 2014 winner of the Durham and Wearside Executive of the Year Award, and of the Susan Dobson Award for Entrepreneurship, has retired. She and co-founder Tony Outhart, who has also exited, are minority shareholders now. One of the three purchasing directors, Brenda McLeish, is chief executive. The equity split between the purchasing firm and the three directors is 50:50. Founder Judith Moran, 2014 winner of the Durham and Wearside Executive of the Year Award, and of the Susan Dobson Award for Entrepreneurship, has retired. She and co-founder Tony Outhart, who has also exited, are minority shareholders now.

Broadband advance Free vouchers to help smaller firms in Tees Valley area speed up communications with better broadband links became available from 1 April. The initiative, launched by Tees Valley Unlimited and five local authorities, follows Tees Valley’s designation as a voucher area by the Government. Each voucher, worth up to £3,000, can go towards a fixed cost of getting better connected.

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Bio battlers link Stockton based Cleveland Biotech, a waste management company, has linked with Caerphilly based Biological Preparations, aiming to achieve domestic market leadership in creating germ products that break down organic pollutants. Newcastle based NVM Equity is involved in the move.

Money in law Northern law firms are among the nation’s most efficient at generating fees per fee earner, says NatWest and RBS. Firms in the North East and North West earn median fees of £155,000 per fee earner – higher than the £138,000 national average, and second only to London firms’ £201,000.

Quantum Pharma the AIM listed manufacturer, supplier and service provider for niche pharmaceutical and healthcare, has acquired the UK operation of Greek firm Lamda for €9.7m. The Burnopfield, County Durham, firm says the acquisition makes sense because it has a strong list of products in development, including products to be filed with European Regulators shortly. It is believed there is substantial latent value in 100-plus Lamda projects already completed, a number of which can be readily commercialised in various territories. Lamda has customers in the UK, Germany, Italy, Scandinavia and Greece. Andrew Scaife, chief executive of Quantum Pharma plc, sees the buy as an important and exciting milestone – “a further deployment of funds raised on our admission to the AIM last December.” Earnings benefits are expected from early 2016.“Lamda gives a footprint in Europe which can be a platform for overseas expansion,” Scaife added.

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Time to raise funds from the crowd? Richard Butts, Corporate Partner at law firm Ward Hadaway, looks at crowdfunding and whether it is right for your business Most of us have now heard of crowdfunding as a way for businesses to raise funds. Due to online portals (known as crowdfunding platforms) providing an accessible route to funding, fundraising campaigns which often additionally make use of social media, and some notable successes, the profile of crowdfunding is high. For the uninitiated, crowdfunding can take a number of forms, including loans (such lending is often called peer-to-peer lending), invoice trading, investment-based funding (such as debt and equity securities) and rewardbased or donation-based funding, but the common denominator is funds being invested in a business mainly by individuals but also by institutions, which are known as the crowd. The UK now has an established market for crowdfunding. Figures published in November 2014 calculated that loans made on loan-based crowdfunding platforms in 2014 amounted to almost £1.3bn and that the amount raised in 2014 on investment-based crowdfunding platforms was expected to be £84m, with the growth in both forms of crowdfunding at around three times the levels seen in 2013. The Financial Conduct Authority (FCA) is responsible for regulating loan-based crowdfunding platforms and investment-based crowdfunding platforms and last year set out new rules governing such crowdfunding activity. Other forms of crowdfunding, such as rewardbased or donation-based funding, are not regulated by the FCA, but such funding is not, on the whole, suitable for all businesses, being particularly appropriate for businesses in the social or creative sectors. The general theme of the law in relation to crowdfunding is to protect investors, in order to ensure that they have sufficient information on the risks involved with making their investments. So is it for you? The breadth of the different types of funding available means that businesses from a wide range of sectors can access funding for various purposes. This has the effect of creating significant differences in the amounts

‘The general theme of the law in relation to crowdfunding is to protect investors, in order to ensure that they have sufficient information on the risks involved with making their investments’ raised and the uses to which they are put. Recently published figures, based upon an analysis of transaction data from crowdfunding platforms and surveys of their users, calculated that in 2014 the average amount raised via equity-based crowdfunding was £199,095, the average amount raised via debt securities-based crowdfunding was £730,000 and the average amount borrowed via peer-to-peer business lending was £73,222. Whilst these averages will hide far more significant fundraisings, a trawl of various crowdfunding platforms supports the position that the amounts raised can often be relatively modest. Businesses looking at crowdfunding will need to consider how to make their funding opportunity attractive to the crowd, whilst balancing compliance with investor protection law. Those businesses that are able to offer investors rewards or discounts on products or services lend themselves to crowdfunding. Businesses which have received crowdfunding will have ongoing

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AS I SEE IT bqlive.co.uk

So much social media is dominated by small closed “groups” often having endless debates on the obscure, but adding no particular prominence to their brand. What is the point, asks David Cliff? The great new world of social media may not be all it’s cracked it up to be. Social media has been a boom industry in recent years. True, any form of exposure will, on balance, ultimately raise a company’s competitive performance and sales. When we look at the gambit of media, some broad statistics do suggest the relative efficacy of these means. Social media, however, has been portrayed, in common with all technological steps, as the great new way to reach new markets. But this has to be contrasted with the saturation approach and ubiquitous uptake of the media itself, resulting in arguably more information overload than ever occurred through email, junk mail or even fliers. Add to that the constant penchant for higher level digital profiles, engagement in interminable levels of debate just to “get noticed” and the hundreds of millions of hours daily going into social media; it ought to produce some level of industry stimulation. The issue is: is it

Social media – a danger of overload?

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commensurate with the effort for many businesses? I met a guy on a plane who created custom bicycles. Social media had enabled him to travel the world through his niche market of enthusiasts. For some industries and niche businesses, then, social media is a valuable new way to open up markets. However, if you want a good plumber locally, you may want to do that by word of mouth – no matter how much Acme Plumbers promote themselves on social media, it will only result in a certain level of local plumbing activity! Social media combines identity presence with elements of social proof. The number of requests I get for people to “like” their page are legion, yet this presence and proof arguably does not generate a relative level of business activity. Electronic media allows the biggest shop window in the world, where we can browse interminably, but not necessarily buy. Equally, so much of social media is dominated by small closed ‘groups’ that often have interminable debates on the obscure, while adding no particular prominence to their brand. So what’s the point? Technology is a tool, not a master. We need to use it to have a balanced online presence, without feeling we have to worship at its altar almost by the hour. True, social media can reach across the globe and create opportunities that otherwise wouldn’t exist. For many businesses, however, the face-to-face interaction, the building of business relationships over time and ‘word of mouth’, endemic within the business community, is probably the source of social

‘Social media systems can mean that we have thousands of followers. It is very hard to effect any form of meaningful relationship with that large group’ Geoffrey Lean, Daily Telegraph

proof most likely to get your business credibly regarded. It’s harder to give a verbal recommendation of someone, with deep consideration and regard to the consequences of that recommendation to those you are commending to, than it is to click “like”. One must be aware of the administrators of the vested interest of these media in business. A television company doesn’t morally judge whether or not you’re wasting your life sitting in front of a television set; it simply wants ratings, the core of its business. Arguably the same is true of social media. At the core, social media is in itself a business, and it’s important that when we occupy that environment we are discerning customers, not simply wasting our energies on gratuitous activity that does not effectively benefit the business, but which validates the media. Some theorists in evolutionary psychology suggest we have difficulty in developing deep social relationships with groups of more than 150. This number is regarded as the ceiling at which one could be familiarised with people within a living community and could understand their contribution to that community’s survival. Social media systems can mean that we’ve thousands of followers. It’s hard to effect any form of meaningful relationship with that large group. I met a guy on a plane who created custom bicycles. Social media had enabled him to travel the world through his niche market of enthusiasts. For some industries and niche businesses, then, social media is a valuable new way to open up markets. However, if you want a good plumber locally, you may want to do that by word of mouth – no matter how much Acme Plumbers promote themselves on social

media, it will only result in a certain level of local plumbing activity! Social media combines identity presence with elements of social proof. The number of requests I get for people to “like” their page are legion, yet this presence and proof arguably does not generate a relative level of business activity. Electronic media allows the biggest shop window in the world, where we can browse interminably, but not necessarily buy. Equally, so much of social media is dominated by small closed ‘groups’ that often have interminable debates on the obscure, while adding no particular prominence to their brand. So what’s the point? Technology is a tool, not a master. We need to use it to have a balanced online presence, without feeling we have to worship at its altar almost by the hour. True, social media can reach across the globe and create opportunities that otherwise wouldn’t exist. n

David Cliff is chairman of the Institute of Directors’ Northern Sector Group, and managing director of Gedanken, a community of professionals based at Rainton Bridge, and all committed to helping individuals; business and public service support in growing and developing people; improving mental wellbeing; managing conflict; and promoting positive places and communities to work and live in.

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ENTREPRENEUR bqlive.co.uk

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Sight defender Richard raises hopes of millions Richard Kirk’s switch from gifted artist to talented scientific entrepreneur brings hopes to millions with failing eyesight, and raises further the North East’s reputation as an innovator. Brian Nicholls explains When electioneering’s over, and the National Health Service is less a battlefield again, emphasis may return to achievements rather than shortcomings. The significance of Richard Kirk’s recent contribution to our institution will then be even more widely recognised. His sight-saving technology has won him the title North East BQ Emerging Entrepreneur 2015. Now he’ll contest BQ’s National Emerging Entrepreneur of the Year title, to be awarded at MADE, The Entrepreneur Festival 2015 in Sheffield this October. By then some of Britain’s 2.8m diabetics should be benefiting from the Noctura 400® mask which Kirk’s company PolyPhotonix has developed at Sedgefield to treat, with light therapy, diabetic retinopathy, a disease that diabetes inflicts, causing one of the Western World’s most common incidences of blindness. Worn over the eyes during sleep hours, and used as part of an individually monitored ophthalmic treatment, the Noctura 400® is confidently expected to replace costly current treatments, such as laser eye surgery and drug injections into the eye. And the saving to the NHS could be £1bn, a figure cheering surely to all the squabbling politicians who’ve been arguing the toss about the service’s cost. A most remarkable breakthrough too, considering Kirk had no early scientific experience but was an artist in Paris 15 years ago – a very able one too, with works in national collections. On moving to London, his attitude to art changed. “I became receptive to thoughts about a new direction,” he says.

During a casual meeting in a Soho pub, he was shown a fragment of electroluminescent material, which lit up on battery power. “I was intrigued,” he recalls. “So much, I embarked on a journey that has culminated in developing medical devices to treat some of the most common causes of blindness.’’ So today the gifted painter is a scientist showing the qualities of an entrepreneur – strong leadership and self-belief, fuelled by a will to succeed. His perseverance and ability to overcome challenges and adversity are also evident, not least in securing financial backing and countering medical scepticism. PolyPhotonix (PPX), which Kirk founded in 2009, works from the Centre for Process Innovation (CPI) in Sedgefield and has two divisions. The bio-photonic one is developing the treatments for macular eye disease (among other medical applications). The other division is researching and developing in organic chemistry OLED (organic light emitting diodes), seeking solutions to manufacture organic electronic devices on a large scale. He’s chief executive, in short, of a company that in five years has grown from one person with an idea to an outstanding innovative business employing 22 highly skilled people, and likely to grow to 52 within two years. A £7m sum recently secured should bring about a headquarters and manufacturing plant at NETPark by the end of 2016. Last October, PPX launched a pilot test of the Noctura 400 through numerous optometrists in the North East of England and also through

The Outside Clinic, a large national optometry firm. Noctura 400, also researched early on at Liverpool University, has since been in late stage trial at 28 NHS hospital clinics with more than 100,000 hours of recorded use. The mask has been approved by a clinical commissioning group for the NHS, which is expected to introduce it more widely about now. Kirk has enjoyed earlier commercial triumph. “Within a few years,” he relates, “I created the largest printed electronics company in Europe, with sales in 12 countries. I sponsored over 40 artists and designers to create works showing the potential of this technology, and the company achieved many world firsts – British Airways’ first class lounge at Heathrow and the Radisson Wine Tower at Stansted Airport being two.” Now, he says, PPX has a robust supply chain with CE certification and ISO 13485 approval, and with capacity to treat 2m patients a year, promising an £800m-plus turnover. The main reason to root PPX in the North East has been the presence at NETPark, Sedgefield, of the National Printable Electronics Centre, one of several technology centres the CPI runs. NETPark is the science park where innovative ideas can become profitmakers. Kirk says it would have been difficult to progress PPX elsewhere, given the facilities available there throughout – including resources, materials and access to the “right kind of people”, all prohibitively expensive under any other system, in Kirk’s view. The original purpose of PPX as a joint venture was to create sustainable,

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high volume OLED manufacturing, OLED being then a largely unknown technology. Kirk recalls: “I created PPX with a £3.2m TSB grant to develop the OLED process. I realised the challenges of manufacturing OLEDs were more than the capability available to the UK’s business and technology community. So I renegotiated terms of the funding. I investigated applications to fit their relatively simple performance characteristics – short life, low luminance, relatively expensive. This was in contrast to consensus research and investment being directed towards lighting applications.” Since then, PPX has won support from numerous UK government bodies to fund the development and clinical trials for projects with a cumulative value beyond £14m. Potential global revenue is now put at excess of £6bn a year, the Noctura sleep mask being, in Kirk’s words, “twice as efficacious at treating the conditions rather than slowing the progress of the diseases.” Kirk thinks global. A few years ago he developed a not-for-profit company while teaching at Harvard University. Funded by the World Bank, it was based around generating electricity from waste for African markets. Today the World Health Organisation puts the current number of diabetics worldwide at 350m, likely to reach 500m by 2020. The UK total could reach 5.5m by 2020, given that currently more than 280,000 people a year – the equivalent of Newcastle’s population – are diagnosed with diabetes. One commercial challenge Kirk has had to clear with Noctura 400 arose before success of clinical trials was assured. Scepticism within the medical sector, implying bio-photonics is a pseudoscience, deterred a number of investors hoping for short-term returns. The firm had to work hard to win its funding. Kirk explains: “I created a powerful advisory board of significant, credible influencers in ophthalmology, including trustees from Moorfields Eye Hospital and senior professors. I then had to create evidence through trials and research. I managed to match private equity funding of around £1m to £14m in ‘peer’ reviewed grant support. “I’ve also cultivated a close and transparent relationship with the NHS. This allows us to work on sales strategy parallel with the clinical programme, enabling us to cut the usual time to introduce a MedTech device into the NHS from up to 10 years to little over three.”

Richard Kirk receives his North East award from Judith Doyle, principal and chief executive of Gateshead College

Springboard to success The North East BQ Emerging Entrepreneur Award, now in its second year, is raising the region’s reputation for innovation. Last year’s winner, REALsafe Technologies of Durham, was a runnerup that came close to winning the 2014 MADE national final in Sheffield. Now its motorcycle safety app has also been named Grand Prix winner in the Great Faces of British Business competition, held in association with BT. It has also added BMW Motorrad UK to its growing list of partnerships, whereby new BMW motorcycle owners will be offered a complimentary 12-month subscription to the REALsafe service. Zoe Farrington, co-founder of the company with Andrew Richardson, says: “BQ couldn’t have been more supportive towards us. It’s not easy trying to raise one’s profile on a shoestring budget. So we thank BQ and we’ve a good feeling now that this year will be our year.” Richard Kirk was named this year’s North East BQ Emerging Entrepreneur over 22 contenders from this region during a national awards evening at the Hilton Hotel, Gateshead. The other North East finalists, all impressive also, were: Daniel Roberts of Green Digit, Newcastle; Jamie Cooke and Ben Ridgway of iam-sold, Newcastle; and Yaqoob Ishaq of The Punjab Kitchen, Newcastle. At Sheffield on 22 October Kirk will contest the national final against Fiona Houston of Mara Seaweed, Edinburgh; Darren Padgett of Team Activ, Barnsley; and Spencer Bloomfield of Yolo Food Company, Burton upon Trent. Bryan Hoare, director of Room 501 (which publishes BQ magazine), says: “Richard was a worthy winner in an extremely strong field of contestants, who bear testimony to the vibrant entrepreneurial culture we have in the North East.”

We are specialists in technology who surround ourselves with experts from end-user markets. We use our expertise to bridge the gap between research and commercialisation Geoffrey Lean, Daily Telegraph

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Kirk himself sits on a ministerial medical technology steering group, and is re-assured by central government and ministers often citing PPX as an example in how to drive UK innovation. Lord Adonis’ policy paper on innovation mentions only PPX, and a Herman Hauser review of Catapults commissioned by the Department for Business Innovation and Skills last December cited PPX as a prime example of excellence in innovation. He says it’s not only a great delight to have won the North East BQ Emerging Entrepreneur award, but a great recognition also of the strength and calibre of the PolyPhotonix team. It joins many other awards, including a national business award from the Institute of Chemical Engineering, an Astra Zeneca global award, an award from the Institute of Engineering and Technology, an RTC award, and a Made in the North East award. PPX has also been working with seven universities on 12 projects in the UK and abroad. As for Kirk, the High Value Manufacturing Catapult recently nominated him as European Inventor of the Year, and his appearance in The Manufacturer’s top 100 most influential

I was intrigued. So much, I embarked on a journey that has culminated in developing medical devices to treat some of the most common causes of blindness

manufacturers puts him alongside leading role models. While PPX takes on apprentices at different levels – one of whom recently gained a degree in electrical engineering – around 70% of the employees hold a PhD, hence continual sparking of innovative ideas. “We are specialists in technology who surround ourselves with experts from end-user markets,” Kirk explains. “We use our expertise to bridge the gap between research and commercialisation We use our expertise to bridge the gap between research and commercialisation. “Often we meet with academics in unrelated fields to try to create a culture of ‘organised serendipity.’ It’s great to get physicists, medics

and biologists – all at the top of their game – together in one room to spark ideas off each other. His open access environment recently led to development of a new therapy for agerelated macular degeneration, which gained full grant application within three weeks of initial conversation. Says Kirk: “Increasingly we find our areas of research are new to science and produce genuine insights into the functional mechanisms of the body and how light affects it. This is creating many areas of scientific interest. Some of these we’re sharing with the academic community and some we’re developing in-house.” n

In praise of the region’s employment creators Judith Doyle, principal and chief executive at Gateshead College, the headline sponsor and partner of the national dinner, said: “Supporting the next generation of entrepreneurs and entrepreneurial thinkers is at the core of our strategy at the college. Recognising individuals that are embracing their ideas with commitment and ambition, and who are helping create employment and economic prosperity, is extremely important.” Other sponsors of the evening included Irwin Mitchell, Quantum Law, Lloyd Newcastle BMW & Mini, Chromazone and U Name It Promotions. Mark Easton, BBC home editor, hosted the event, and guest speaker was Stephen Kee, managing director of Saks, the Darlington based national award-winning hair and beauty salon group. Judges of the North East final were: Judith Doyle, Caroline Theobald (managing director, Bridge Club, Newcastle), Nigel King (founding owner, Quest UAV, Amble), Sally Waterston (founder and co-chairman, Waterstons, Durham) and chairman Brian Nicholls (editor, BQ North East and BQ Yearbook). Other sponsors of the evening included Irwin Mitchell, Quantum Law, Lloyd Newcastle BMW & Mini, Chromazone and U Name It Promotions. Mark Easton, BBC home editor, hosted the event, and guest speaker was Stephen Kee, managing director of Saks, the Darlington based national award-winning hair and beauty salon group.

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National Emerging Entrepreneur Dinner 2015 In partnership with

MADE

The National BQ Emerging Entrepreneur Dinner 2015 at Newcastle Gateshead Hilton brought together both emerging and recognised entrepreneurs from across the UK for a celebration of enterprise and to recognise entrepreneurial rising stars from Scotland, the North East, Yorkshire and the West Midlands. Held in association with MADE: The Entrepreneur Festival 2015, the dinner highlighted the individual stories of 16 shortlisted emerging entrepreneur finalists with one from each area being chosen to go forward for national recognition at MADE 2015. The dinner was held in partnership with Gateshead College, with other sponsors including Irwin Mitchell, Quantum Law, Llloyd Newcastle BMW & Mini, Chromazone and U Name It Promotions and hosted by Mark Easton, BBC home editor. The BQ North East Emerging Entrepreneur winner was Richard Kirk of PolyPhotonix, a former artist who can save the NHS £1bn a year with his sight-saving technology. Richard, chief executive of PolyPhotonix, founded the business in 2009 and is based at CPI in Sedgefield. It has two divisions, one develops treatments for macular eye disease among other medical applications and the other is focused on developing process solutions for manufacturing organic electronic devices in large volumes. Its phototherapy eye mask, which is worn during sleep, uses light therapy to treat diabetic retinopathy. He said: “It’s not only a great delight to have won the North East BQ Emerging Entrepreneur

Associate sponsor:

award, it’s a great recognition of the strength and calibre of the PolyPhotonix team and the innovation.’’ Fifteen years ago he was an artist living in Paris, with a successful career as a painter with a number of works in national collections. He moved to London where at a chance meeting in a Soho pub he was shown a small piece of electroluminescent material, which illuminated when powered by a battery. He recalls: “Despite having no scientific experience I was intrigued and embarked on a journey that has culminated in the development of medical devices to treat some of the most common causes of blindness.’’ Shortlisted entrants were chosen on the basis of entrepreneurial character, business performance, business strategy, business impact, innovation and personal values. The three others on the North East shortlist were: Daniel Robson of Green Digit; Jamie Cooke and Ben Ridgway of iam-sold; and Yaqoob Ishaq of The Punjab Kitchen. The event was hosted by Mark Easton, BBC home editor, and the guest speaker was Stephen Kee, managing director of Saks Hair & Beauty, the Darlington based national awardwinning hair and beauty salon group. Bryan Hoare, director of BQ magazine, said: “Congratulations to Richard who was the worthy winner in an extremely strong field of contestants who bear testimony to the vibrant entrepreneurial culture we have in the North East. BQ magazine is all about profiling and encouraging entrepreneurs and we are delighted

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BQ North East Emerging Entrepreneur winner was Richard Kirk of PolyPhotonix with Judith Doyle, principal and chief executive at Gateshead College

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to be able to showcase them at the awards and to give Richard such an important national platform as the MADE festival, which has been described as a Glastonbury for business.’’ Judith Doyle, principal and chief executive at Gateshead College, which was headline sponsor and partner of the national dinner, said: “Supporting the next generation of entrepreneurs and entrepreneurial thinkers is at the core of our strategy at Gateshead College and we were delighted to be part of the BQ event. “Recognising those individuals that are embracing their ideas with commitment and ambition and helping to create employment and economic prosperity is extremely important. At Gateshead College we are inspiring our students to leave college not only with the qualifications, skills and knowledge within their chosen fields, we also want them to possess the confidence, strong work ethic, personality and softer skills that can make a real difference to the businesses they develop or the organisations they go on to join.” “Recognising those individuals that are embracing their ideas with commitment and ambition and helping to create employment and economic prosperity is extremely important. At Gateshead College we are inspiring our students to leave college not only with the qualifications, skills and knowledge within their chosen fields, we also want them to possess the confidence, strong work ethic, personality and softer skills that can make a real difference to the businesses they develop or the organisations they go on to join.” n

Recognising those individuals that are embracing their ideas with commitment and ambition and helping to create employment and economic prosperity is extremely important Banem cuyvtycvt

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Every obstacle is a stimulus for Stephen Kee as hair and beauty group extraordinaire Saks takes its creative talents international. Brian Nicholls explains

Quite a kee to success As you’d expect, Stephen Kee the managing director of a 100-strong salon group renowned for its award-capturing hair and beauty standards, looked immaculate delivering a keynote address at BQ’s National Emerging Entrepreneur dinner. Not one silver hair out of place. What you might not expect – and what his attentive audience, eager to relive with him his 40 years success in business, probably did not know – was that this lifetime achiever had actually trimmed his own hair before stepping out to the Hilton Hotel. “No-one has cut my hair for 20 years except me,” he laughingly admitted offstage to BQ. “That sounds bad, doesn’t it? We’ve an artistic team who work all over the world and they say ‘why don’t we do your hair?’ I never get round to that. Or don’t have the time. I just do it myself. I think you get used to it. I did a bit before I came out tonight, knowing I was going on stage.“ Few at the Gateshead awards gathering, even had they intended staying at home for the next month, would have risked such

tonsorial tinkering. How on earth does one keep the scissors straight behind one’s ears? Obviously Kee, as in his business moves, has a knack. What else but knack has taken him from 17-year-old school dropout to managing director of Saks, the UK’s leading salon group, a pioneering leader in the hair and beauty craft recognised internationally? Entrepreneurial enthusiasm from a lapsed sixth former was perhaps not what his dad expected. His son had, after all, been earning his pocket money earlier by running copy for sports writers reporting matches for the Press. A career in the newspaper industry, where his father Jack Kee was general manager of The Northern Echo at Darlington, would have been understandable and feasible. Indeed, for six months after the lad joined Saks as a beginner, Jack repeatedly reminded him: “You don’t have to keep on going there, you know.” But soon Stephen had his own flourishing salon, a Saks franchise, and by 21 had made enough to buy part ownership of Saks itself. Today, endorsements by celebrities such as Gerry Halliwell, Nigella Lawson and Girls Aloud help

drive the business, from Aberdeen down to Exeter. And, through franchising, Saks operates as far as Dubai, Kuwait and Mumbai, the latter centre winning a “best salon in India” award last year. No surprise, perhaps, since Saks abroad ensures it has well-off partners prepared to invest liberally in the brand. “We’re very happy to have our name associated with them,” says Kee. His fellow director Dennis Cheesebrough, an original founder, leads the international side. “That’s his thing,” says Kee, and foresees a possibility of further launches abroad. Kee, now 57, recalls: “Even when Saks opened in Darlington all those years ago it was a phenomenon. We were first to move away from traditional shampoo and set culture, to pioneer the new ‘cut and blow dry’. Customers flocked in. Twelve salons were opened with aspirations to become national, and franchising provided the key to success.” Intensive franchising at home got under way from 1981. But even from the 1970s beautiful women wearing Saks’ signature haircuts and colours have been portrayed in magazines around the

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world. Saks’ seasonal signature hair collections today feature online, on point of sale and in consumer and trade magazines worldwide. Saks now is noted not only for its salons’ standards of hair and beauty treatments, but also for upskilling to exemplary level hairdressers and beauty therapists, this through its training academies in Darlington and London, and through apprenticeships accredited by the Government. Its training academies teach NVQ level courses in hair, beauty and barbering to beginners and experienced stylists and therapists, and are open to outsiders as well as its own staff. How did the beauty element enter? “Our customers wanted it. So we launched our Saks beauty concept in 1995 and have never looked back. Saks was first to introduce injectables as a high street service. Non-surgical facelift treatments, anti-ageing facials, IPL laser hair removal and 3D-lipo fat removal strengthened the clinical offering further. “The launch of advanced beauty offers, bespoke skincare and treatments make Saks the high street choice for better skin – the UK’s leading high street group whose salons are dedicated to beauty in the mix too.” No holding back there, then. And in 1998 Saks linked with health club giant David Lloyd Leisure as its salon group, and continues to open salons in the group’s clubs nationwide. Last year Saks also linked with Virgin Active. The Saks art team that can’t pin their boss down offer advanced courses through the training academies. They create hair looks for shoots, shows, catwalks, TV shows, awards and more opportunities. They advise glossy magazines on latest trends in hair fashion. In 1999 in-salon apprenticeship NVQ hair and beauty training was introduced. Stylists and beauty therapists can learn through this,

Our brand is all about women.We men say we understand women, all their different moods. Can a man ever understand a woman’s moods? I don’t know

rather than through college. The programme carries Beacon status awarded by the Quality Improvement Agency, and grade ones across the board by the Adult Learning Inspectorate for giving outstanding training. Saks thus is recommended as a benchmark for educational best practice across all industries, officially acknowledged as a best training provider nationwide. At a time when many people in other occupations were being paid off, Saks launched a barbering course enabling redundant workers to reskill and become franchisees, or set up in hairdressing for themselves. Kee explains: “While we offer apprenticeships we also opened a barber’s chain. We realised there weren’t many barbers out there and there wouldn’t have been anyone to staff them. “So we put on a course teaching people to become barbers. Many who came were putting redundancy money they had received into it. Members of the Forces returning to civvy street also got onto it. Then, with opportunities apparent, they became Saks franchisees of barber shops or else went off and did their own thing.” One of the smartest moves in the firm’s promotion, Kee explained to his audience at the awards, has been to interface with celebrities. That began with its Saksessories range of ceramic straighteners, described as having taken

Talk’s a money maker Stephen Kee’s luxury now is a five day working week, splitting time between homes in London and Darlington – his home town being still headquarters of the operation. On summer weekends he and his long-term partner girlfriend Maxine like to visit Marbella. For all his flair in the field, hairdressing was not his first career notion. A keen card playing schoolboy, he admits having had a leaning towards professional gambling or a career in the City – “there’s not a lot of difference between the two.” But he adds: “I realised all you have to do to make money is to talk to people. That’s how I’ve worked ever since.” And of one thing he is certain: “Opportunities don’t come along. You go and find them.”

the hair world by storm. He recounts: “We decided to bring out our own range of hairdressing dryers and other accessories. On a whim I said ‘why don’t we send some of our straighteners out to celebrities or their agents?’ We sent about 50 to any celebrities we could think of. Two responded saying ‘we love your straighteners – can we have some more?’ That was Gerry Halliwell and Nigella Lawson. Indeed Nigella said whoever invented Saks straighteners should be knighted. “We used that endorsement and sold thousands,” Kee went on. “It would have been a slow burner otherwise. Geri Halliwell, who couldn’t get enough of the straighteners spread the word so Holly Valance, Dani Behr, Dannii Minogue and Denise Van Outen also became fans! “We now have a full range of styling tools and accessories for customers and hairdressers including the hugely popular Pro Dry hairdryer and Pro Straight straightener featuring the latest electrical styling tools technology. We launched our new Auto Curl Tongs at Clothes Show Live and they sold out every day.” For Saks, the power of celebrity endorsement has become even more effective. “Everything we do now we link with celebrities. For our apprenticeships we linked with comments from Made in Chelsea and The Only Way is Essex – Joey Essex saying apprenticeships are fantastic. We use that on Facebook pages and so on. From a client’s point of view, we’ve done Girls Aloud’s hair, Paloma Faith, Coldplay, loads and loads.” Has all this brought him closer to the knighthood Nigella recommends? “No,” Kee laughs. “I haven’t done any royalty. I did get that lifetime achievement award in franchising. It made me wonder if it was a secret message. Why would you get a lifetime achievement award when you’ve many years work left in you? I’m still not sure if it was a message they were trying to get rid of me!” But there are numerous awards to take pride

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in: the L’Oréal Colour Trophy, British Franchise Association awards, numerous British Beauty and national Customer Care awards and distinctions at the British Hairdressing Awards. Now Saks, besides marking 20 years of its beauty concept by opening more salons wholly dedicated to that aspect, is out to make a mark in another different direction also. It aims to raise £100,000 in two years for the Eve Appeal, fighting women’s cancers through awareness and research. This stems from a brand re-ignition survey run amid a spirit of determination that the recent recession couldn’t go on forever. Saks invested £100,000 and a year in talking to customers, salons and manufacturers about their perception of the brand, and how it might change in future. Kee describes it as “probably the biggest thing we’ve done in 20 years, interviewing every stakeholder. It showed us where we should be in the market.” It did indeed. One particularly significant revelation was that customers’ average age was 35 upwards. “So we’d been catering for a younger audience,” Kee admits. “On realising our clients were 35 to 55 predominantly, we recognised that if we were going to get behind a charity it had to be one aimed towards women of that age group. So Eve is perfect. Our brand is all about women. We men say we understand women, all their different moods. Can a man ever understand a woman’s moods? I don’t know.” But he certainly tries. Besides relishing the business side of things, he enjoys actually hairdressing still, and particularly interacting with clients. “Yes, women do tell their hairdresser everything,” he confides, and perhaps that’s partly why Saks enjoys the success it does. At any rate, the campaign of support for Eve Appeal has started. n

We put on a course teaching people to be barbers. Many who came were putting redundancy money they’d received into it. Members of the Forces returning to civvy street also got onto it

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The issue: How can the private, public and university sectors harness technology to create the future city, and what can we do to lead the way? Possibilities of the North East becoming a ‘living lab’, building on its existing and future technology to become a paragon of smarter and healthier cities or city regions, have taken a major step forward with BT’s disclosure that it wishes to consider North East potentials in its plans to invest in partnerships with major cities of the North. The opportunity emerged during a stimulating two and a half hour debate in which many opportunities and visions were generally suggested as goals. They included becoming a national internet centre for Big Data, a prime driver of utilities efficiency putting money back into people’s pockets, a centre of excellence in cyber security and forensics, and further advancing existing progress in life sciences and ageing research. Simon Roberson said BT is interested in ICT’s hot topics because it’s a big investor in city infrastructures. Newcastle has 98% superfast broadband coverage and areas of conurbation

surrounding will be similarly advantaged during the next couple of years. “We’re moving on to build greater wi-fi coverage in central areas. When we acquire EE (the mobile operator Everything Everywhere) – assuming we get regulatory approval – we’ll have the UK’s biggest 4G mobile network. We also have a coup for the North East – an ultrafast broadband pilot, 300Mbps in Gosforth this summer. “There are only two places in the UK where that’s happening with BT – the other is Huntingdon. No other operators are so advanced with this technology. We’ve made a commitment that, subject to things going well with the technology and the regulatory environment, we’ll roll that out commercially.” He hoped to hear suggestions on how to build more sustainable cities, more prosperous, healthier and with greater inclusivity; how they’d mesh in different ways – generating wealth and improving lives. “How different

networks of people link up to achieve this is something I’m keen to see.” Some issues are political and organisational as well as technological,” he added. David Townsley wondered: have universities and other academic institutions the commercial acumen to exploit IP and operate with significant impact alongside commerce not only in the North East but also the UK economy? Rebecca Strachan cited gender imbalance in technology. Is what’s being designed for a Smart city fit for purpose for both genders, she asked? Paul Watson said more and more hugely valuable data was being collected in the region. “How can we work together to unlock its potential?” Tom Baker: “We’re aware we need to exploit in partnership the technologies talked about. We’re keen to understand where we can build relationships.” Andrew Lewis said Newcastle Council’s numerous initiatives include an excellent partnership with BT. The Core building in the

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TAKING PART

‘Providing world-class broadband should surely be more important than building HS2. By 2032, when the line is due to be completed, the internet will be far more crucial to businesses than intercity railways. And it genuinely encourages the spread of economic activity. Geoffrey Lean, Daily Telegraph

new Science Central district, built also through strong partnership with Newcastle University, had been 90% prelet. A partnership has been agreed too with Northumbria University, and Newcastle is one of only three cities partnering the Energy Technologies Institute. Millions in private investment is being attracted into the city, he added. The new Institute for Ageing is a relevant asset, and a wide range of activities in Newcastle figure prominently on the future city agenda. “My challenge is to connect that so it isn’t just technologicial development for its own sake, but is connected to communities and business growth, and opportunity for people of

Newcastle.” Andy Mace said the global consultancy of 12,000 people he represents is working with the Rockefeller Foundation on a 100 resilient cities project. “We need people to do things differently if we’re to reduce our consumption, carbon footprint etc.” How could ‘Smart’ do this? David Dunn wanted to know how smart cities could bring the opportunities globally and digitally. Simon Hanson: “We want the North East recognised as best in the world in using open data and big data. How can we get our members to use big data they’ve got plus big data of others? Given announcements in the

Mike Hartley, director, Thermionix David Townsley, director, North East Satellite Applications Centre of Excellence Simon Roberson, partnership director, BT Simon Yellowley, sales director, BT Tom Baker, sales business manager, BT Charlie Hoult, chairman, Dynamo NE Prof Paul Watson, director, Digital Institute, Newcastle university John Fitzgerald, research director in computing science, director of the Centre for Software Reliability, and professor of computing science, Newcastle University David Dunn, chief executive, Sunderland Software City Simon Hanson, development manager, FSB Andy Mace, associate director, Arup Dr Vincent Thornley, portfolio & technology manager, Siemens Andrew Lewis, assistant chief executive, Newcastle City Council Hans Moller, innovation director, NELEP Conn Crawford, strategic officer, Sunderland City Council Dr Rebecca Strachan, associate dean, business and engagement, Northumbria University Brian Nicholls, editor, BQ Chairing: Caroline Theobald, BQ Facilitating: Heather Spacey, Rachael Laschke, Audrey Atkinson (Room 501) Venue: Malmaison, Newcastle BQ is highly regarded as a leading independent commentator on business issues, many of which have a bearing on the current and future success of the region’s business economy. BQ Live is a series of informative debates designed to further contribute to the success and prosperity of our regional economy through the debate, discussion and feedback of a range of key business topics and issues.

#bqlivedebate Join in the debate online and have your say on the issues raised. If you would like us to organise a BQ round table dinner debate contact Heather or Rachael on 0191 389 8468 or email heather@room501.co.uk

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Budget, how can we get Newcastle and the North East positioned as an internet leader? Have we leadership in the North East to exploit this potential? We seem behind a lot of cities which have more sizzle than sausage, whereas we appear to have more sausage than sizzle?” Brian Nicholls felt BQ readers might like to know if it’s true that by 2017 broadband speeds of nations like South Korea will be 40 times faster than the UK’s. If this is a matter of investment, would business be better served if some of the £90bn estimated for an ultrafast rail system was diverted to intensified broadband, since the time saved on trains between Newcastle and London might only be 11 minutes? Conn Crawford was fascinated that public data might be available across the country. How might we bring North East resources together to reprocess it? Simon Yellowley: “In the area I look after I see the Northern Powerhouse being created under the devolution agenda. I look to how Leeds, Sheffield, Bradford and Manchester are harnessing this. I’d like to see how the North East will measure up to that. How we can accelerate many facets, leadership or otherwise, to get a fair share of this new devolution power and money? Charlie Hoult was keen to see how small businesses can benefit. “It’s a big ask putting the infrastructure in and the big data. How do

you get the dividend of IP and wealth to reside here?” Europe had pots of future cities money – how to co-ordinate that? “How do we make ourselves the UK’s beacon region for smart progress?” John Fitzgerald: “As a builder of the next building on site at Science Central, much of my work is involved in digital aspects of urban sciences, the £58m collaborative venture between Newcastle University and the city. We’re bringing together a lot of disciplines traditionally kept separate. What should we build in this region that will bring the world’s most innovative organisations to our door? We’ve many opportunities.” Mike Hartley, whose SME produces a Smart energy product, is working with Gentoo on storage heating in social housing. The aim is to have a Smart system on the cloud instructing multiple occupancy properties, such as tower blocks. “We could regularly do with talking with energy suppliers on being much more flexible about supply of energy, and to see whether we could work with them on a Smart grid basis.” Dr Vincent Thornley works for Siemens on Smart grid. “We’ve been heavily involved with Northern Power Grid in projects, and increasingly with council and university on Science Central. I’ve observed, as we try to bring forward innovative projects, circumstances around what the future city is. I think it’s a bit more than a city, probably a region. “It’s good that representatives of Sunderland and Newcastle Councils are here. Sometimes we talk about ‘the city’ and we normally refer to Newcastle. Other times we talk about ‘the region’. My perspective is that the reason we’re not sizzling is that we don’t act together, like areas around Manchester and Liverpool do. Hans Moller, previously chief executive of a science park in Sweden founded following the breakdown of shipbuilding, earlier spent 20 years in IT. “There’s a pretty good foundation in innovation here that I think can be developed,” he said, advocating open innovation. In Sweden they tried to engage SMEs with large corporations. “If you’re a SME it’s hard to speak to the like of Siemens, BT and companies that size. We tried to persuade large companies in Sweden to interact in trying to solve different problems.” Engaging a region’s general public was also

necessary. “I used to do the litmus test, come to a new city and ask the taxi driver ‘please take me to the innovation centre in this town’ and at least 99% of the drivers would drive me to a major science park. “I’ve tried it three times in Newcastle and they looked very strangely at me. I tried the hairdresser but she knew nothing about local enterprise partnerships, North East LEP – she didn’t have a clue. We have to work together to change that. You can engage with the public on open innovation projects.” Tom Baker, who recently attended an all-party parliamentary group at Westminster to discuss connectivity, suggested greater opportunity for innovation exists through cities and regions than through central government. A city digital service would be interesting, he felt. Devolution gives opportunity to think around areas much more manageable. “From BT’s perspective, we’re keen to think about how we spend our R&D. We’re concluding it must be

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situated alongside and in partnership with cities, entrepreneurs and developers. What could such a platform look like in the North East, where could some challenges become opportunities?” Charlie Hoult said computers could scale 19thC political boundaries and parochialism. But whereas some challenges of leadership were being settled in other cities there was not around the debate table a chief executive of a LEP or the chief executive of the Combined Authority. “We don’t have politicians round the table. They equally ought to know about technology. But the council gets its votes from bins being picked up on time.” He criticised short-termism on councils and political cycles challenging amounts of investment needed for Smart city infrastructure. Andrew Lewis said ludicrous budget cuts that North East councils must make compared with elsewhere threaten many services taken for granted. “But the public sector can do many things if it thinks innovation, thinks long term and uses other powers and other funding opportunities involving both private and public sector, also European and other international networks – fighting for every opportunity.” A lot was done over 10 years to bring Newcastle City and Newcastle University together to attract inward investment. There was multi-party consensus to develop long-term opportunities. “When it does happen it’s close to the future cities agenda.” But it was necessary to work as a region. “There’s strong collaboration in the public sector despite political rows reported in the Press. One example is Newcastle, Sunderland and electric

vehicles. Now the North East has one of the best networks for developing the necessary infrastructure. There are many other examples.” Vincent Thornley said that whereas what’s called Greater Manchester is Greater Manchester there isn’t a Greater Newcastle. “If we called it that Sunderland might get upset.” Tyne and Wear? The North East? He questioned the existence of such identities. Manchester’s autonomy in a lot of areas had been earned. “Too often here we end up in our little silos, rather than everyone working together to benefit the North East. Only when you think what services and technologies can do for you can you make steps forward.” Caroline Theobald mentioned two Catapult centres serving the region as progress. David Dunn said residents should benefit from a future city. How to understand their problems and challenges to start overcoming them? Conn Crawford said it was relatively easy for authorities to access. How, say, Sunderland and Newcastle interact in developments was the key. David Dunn said world population could be 9bn-plus by 2050 with two-thirds in cities. Consumption of resources broadly multiplies by four in any move from rural to city existence.

How could people be persuaded to do things differently when so many “bloody minded” people generally do opposite to what’s asked? Finding an access to persuade people to change would do it, and drive a market. Over 70% of people in the UK now own a Smart phone, he pointed out. Charlie Hoult said the idea everyone over 60 should be Smart enabled with a device had been discussed, also an objective like no child under 16 would ever get lost geographically, educationally, or to social services. “If you get research, data, infrastructure and technology to map it – we’re already a centre for ageing – are there other things you can also designate and shout about? David Dunn: “I fear we’ve glossed over difficulties because we’re fixed on the next Apple gadget. What’s the next shiny thing I can own?” Vincent Thornley said it wasn’t just about ability to get the next device, but understanding how to get the best from it. A question asking what Sunderland’s big problems are brought the reply “poverty, exclusion, and an ageing population compared with the rest of the country”. The “cost-cutting government” pushes to have everything done on the web, but many people requiring services can’t go online, it was argued. Mixing young

We’re capturing information about how people use their technology, and finding out about their lives. It’s how to use that sensitively, retaining their confidence... Geoffrey Lean, Daily Telegraph

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and old in a community was one solution suggested. David Townsley expects his home fuel bill to fall 50% now he has a Smart meter. It can benefit young and old. It can inform when a person at risk hasn’t turned on their heating. Mike Hartley said some people could already re-invest some savings. “We’re capturing information about how people use their technology, and finding out about their lives. It’s how to use that sensitively, retaining their confidence…” Tom Baker wondered if any role existed for local government. Conn Crawford felt a role might lie in helping individuals have more control over their personal data, yet also in ensuring that platforms others want to build enable services to come about. What role would there then be for academia, it was asked? “Gateways,” Conn Crawford replied. Charlie Hoult advocated broad partnering. Simon Yellowley said everyone has TV. BT did a trial in Suffolk with the Red Cross on rural isolation. Cameras were put on TVs giving lonely people face to face time with friends, family and acquaintances. A number “blew” their broadbandwidth – they were never off. One elderly lady was on all day to the next door neighbour, whom she never usually saw. A larger pilot is running in Cornwall. “I’ve been involved in a few multipartite projects,” he said. “If you get agreement >> on data usage and ownership that seems to make some projects successful.” BT partnered Milton Keynes and the Open University on sensor networks across transport (a blocked grid can impact on an entire economy). “We used that network and relationship to try to fix that problem.” Simon Hanson worried that a hacker might destroy the entire system in a Smart connected home. David Dunn felt that with five good universities in the region and some world expertise, as well as appropriate companies, there should perhaps be less focus on creating a city region and more on the little jigsaw pieces that can make any city anywhere become expert.

Paul Watson thought some large company might find a Smart city solution which would then be bought and deployed. “Can we take the initiative better ourselves by partnering, combining skills of people around this table?” Caroline Theobald thought that Nirvana but questioned how to get there. Simon Yellowley said until Dynamo’s launch, nobody knew the size of the region’s ICT economy. Why not do likewise for the Smart city, building a base map of innovation? “A smart region rather than a smart city,” Rebecca Strachan wondered? “We have to think of rural areas also.” And how to get third generation unemployed involved, she added. While there was talk of metro areas, a proposal was made that region, as in energy and some other things, might be more practical than city, since Newcastle doesn’t compare in size to some bigger cities. Andrew Lewis cautioned against understating the value of a city brand. His home town, Wigan, was part of Greater Manchester but not part of Manchester. He thought working

We don’t set out to procure technology. We set out to procure services or particular requirements Geoffrey Lean, Daily Telegraph

together as a combined authority would grow. But when you mention Newcastle by name people round the world recognise that, and the North East was competing generally with other cities that similarly use their branding widely. Conn Crawford: “Funnily enough, I’m going to support that view. But with centres of excellence in Sunderland and cyber security and forensics in the region, he felt it important not to pack everything digital within a single boundary. We could federate rather than become one.” Hans Moller cited the Oresund Bridge, the strait crossing connecting Sweden with Denmark. For years three cities including Malmo and Copenhagen tried to form a region, even created a name but no-one recognised it, even though it was promoted as a brand. Now Copenhagen calls the region Greater Copenhagen. Despite no commitment from Swedish politicians, Danes don’t care. “They include Sweden because it is important and companies don’t care too much about boundaries, even between nations. Copenhagen is a strong brand. Maybe that could be the moral here.” Charlie Hoult asked how hard it would be for a Newcastle city region to designate itself above nine other core cities as the UK’s beacon of Smart activities. David Townsley pondered how SMEs might

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be persuaded to innovate for new technology and new applications, and to work better with universities and councils. A SME trying to get through a local authority procurement system, for example, was a non-starter. Mike Hartley said bidding costs and bureaucracy in procurement were massive. Someone else hinted at a North East local authorities’ Dragons’ Den. Conn Crawford felt SMEs might work in partnership to achieve size, since procurement tests were necessary to ensure confidence and deliverability. “Can we help enable you to work together somehow to meet the tests?” Larger companies could partner smaller ones more, it was thought. Andrew Lewis suggested SMEs have a good record in procuring locally; the majority of procurement in supplies goes to them in Newcastle. But procurement was not very

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effective for bringing new technology to the table. “We don’t set out to procure technology. We set out to procure services or particular requirements. Technology would be inevitably driven through the private sector. Maybe we could identify margins within procurement to bring on new technology.” Simon Roberson felt massive culture change was needed across local authorities. “Commissioners rather than procurers have the tools.” He quoted progress in the USA, whereas the UK might be handicapped by centralised structure. Someone mentioned Jeremie Funds but Simon Roberson still felt centralisation was too great. John Fitzgerald said that over five years innovation had grown in electricity networks. Regulators had set them challenges. Money could be saved. Maybe seed money could come from councils, with input from SMEs and innovators, Ofgen wanted to involve smaller companies. Quite a few had benefited, including university spinouts. Simon Hanson didn’t think anyone had expected healthcare budgets to be devolved to Manchester. It showed the level of movement possible. Andy Mace said while innovation was evident, sometimes just getting basics done showed progress. It couldn’t always be about the next gadget. He still felt personal leadership – elected mayors for example – was important to get

things done. Simon Yellowley said Leeds was trying to create a SME market around wellbeing and digital health. What are the next apps to make individuals more responsible for their own health and wellbeing? Conn Crawford suggested also a “circular economy”, recycling goods and products into other products, as done in the automotive industry. The meeting was reminded a couple of hundred scientists will soon be in Science Central wishing to consider problems and ideas that will prompt international interest and competition. Andy Mace said whatever was proposed for 60m people in Britain would depend on what members there were prepared to do. Andrew Lewis: “Let’s become adept at publicising what we’ve got and in securing resources to do it with. There’s a call for European money requiring match funding. Why can’t that come from the private sector? John Fitzgerald said efforts were being made to bring investment into the North East from Germany, but Siemens wouldn’t just throw money at it. Rather, it had to be justified against other places. There had recently been collaboration with an Italian venture and a consequent pitch for European money on that. Mention was made of two big broadband projects. One in South Yorkshire, with about £100m of European money n

Leadership and involvement – two shining beacons Future public services must be built around the citizen, the home, the community. We should be bold in our aspirations for our integrated, more intelligent, more connected cities of the future. Increasingly cities’ partners are working together and looking to exploit civic innovation and enterprise, the ideas of citizens and SMEs. Our ever more connected world offers the opportunity to address our challenges. We’re seeing the emergence of pockets of innovation with cities carving themselves a niche. We must develop the platforms to bring these together – a networked platform of innovation, nationwide. Platforms are only as effective as the communities which use them. Integration across city systems is the critical capability required to address future economic, social and environmental challenges. Responding to these challenges will require the involvement of people, communities, social and civic enterprise, SMEs, the private sector, academia and government. Digital platforms for the first time provide an opportunity for collaboration and of the disruption needed to address much of our existing “siloed” delivery and thinking. BT has got a unique set of assets, a business built on innovation and global reach. We support critical national infrastructures and provide the broadband link to millions of homes in the UK. We’re evolving to play our part in the creation of the cities of the future.

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New name, new dimension Engineer extraordinaire Andrew Frank is on the talent trail and widening big client aspirations globally with a major company rebrand. Brian Nicholls details A comfortable market town like Stokesley is the last place where you’d expect revolution. With its old mill wheel, listed buildings, high street paradise of small and independent shops, plus its weekly market and its annual fair, it exemplifies the “ever-thus”. But visiting Andrew Frank at the appendaged Stokesley Business Park, you discover a hightech upturn in progress at his remarkable company, Opentree. What other firms of 16 staff could show a client portfolio on the level of Balfour Beatty, Siemens, Tata Steel, LNG Storage, Atkins, and Signalling Solutions? Opentree, formerly tsaADVET, has created during its 23 years a reputation for clever document management software in sectors such as oil and gas, steel, manufacturing, rail and energy. One of the longest established firms of its kind in the UK, it now expects its major rebrand, reflecting growth and management change, both to intensify its hold on existing sectors and open doors elsewhere too. A stalwart since its launch, Frank took over sole management last year and is now managing director and sole owner, with turnover up by almost half and last year’s £1m-plus promising further 20% growth this year. Five new staff

were hired, and five more recruitments are imminent. Opentree also has now an office in Sheffield fielding the mounting demands and needs. Originally, the business sold and supported electronic document management software (EDMS) from Belasis Business Centre, Billingham. Ten years later it was decided the product it sold was not meeting all its customers’ needs. So it developed its own EDMS - CAB-i-NET (now marketed as Cabinet). It was adopted by Westinghouse Rail Systems in 2003, and with further evolution at Stokesley, its worldwide adoption is growing. With it, organisations can manage total lifecycle of their documents and drawings, from creation and workflow through to business processes and issue to the client, while keeping a full audit trail. That, in effect, means real collaboration between global locations, and access to the

We just can’t get software developers. I’ve talked to local universities and other people Geoffrey Lean, Daily Telegraph

latest version of any documentation needed fast. The electronic management is backed by hard copy archiving, indexing and scanning. Engineers get swift and simple access to their archives from their desk, and sight of documents and drawings located off-site, as the requirement arises. “We know any time anyone has touched a file what template it came from, who approved it. The whole audit trail goes on seamlessly behind the scenes,” Frank explains. “Implementing our software is quite easy. Getting people to change – that’s where we’re getting more consultancy involved.” The archiving side isn’t an end in itself. However, while many firms are familiar with Windows Explorer for creating files, big organisations with no standard folder structure may find critical files all over the place. “People will store stuff on memory sticks or on their hard drive, or up in the Cloud – anywhere,” Frank suggests. “That’s ok if you’re small and can communicate. “But once you’ve multiple offices and multiple people you have duplication. Our software looks like Windows Explorer, and copies all the icons because ease of use was our first consideration when designing Cabinet.”

ENTREPRENEUR bqlive.co.uk

There are standard templates for letters, reports, power point and other documentation – a facility Frank strongly espouses. “Because they’ve been down an alternative customised route before, people are realising that costs a lot. They don’t necessarily see it first time round. But in 12 or 18 months they do.” Was major rebrand necessary? Frank says: “The time was right. We’re growing in a very competitive, international market. But our services are niche and in high demand. Also, our outstanding client base is doing much to advance our reputation and growth further. “A number of global companies offer a similar service to ours but without our many years’ experience, and without our easy-to-use, highly configurable software, or the sound personal service of our highly skilled team.” The new company name, launched before Christmas, was overdue anyway. As Frank explains: “We’d long traded under the name tsaADVET and many people thought we were an advertising agency. That name linked back to tsaADVET in the USA, whose software we once sold but not for more than a decade. We were

All their own work – and reliable Opentree is enhancing its intellectual property, shunning any buying of others’ software. Advice has been gained on human resources and health and safety. The firm is ISO accredited and holds BS 1192 standard since working with its author Mervyn Richards. It changed its software to support the standard, and built a standard configuration of Cabinet that follows BS 1192. This comes free on its software to the benefit of clients, who are also offered partnership approach to further advances. Clients can also rely on Opentree’s service phone not ringing more than three times before it’s picked up by someone, somewhere, even if Frank’s on a break from his 10 and a half hours a day office routine – away with his wife Christine on one of their twice yearly ski-ing trips perhaps, or more likely, on his many travels to attend personally to customers.

developing software but not making the most of it.” Hence a new website, and a corporate video worked on for nearly a year. A PR push with case studies, and portfolios of information. Frank explains: “Many firms would like our customers. Some we’ve had for 15 to 17 years. We’re intent on keeping them, and if we can get our software in front of potential clients also, knowing they have need and some money, they’ll get what we’re driving at,” says Frank with gusto. The name Opentree came out of a brainstorm. Frank recounts: “We think we’re a company very Open to change. The Tree comes, we think, in our strength. We’re growing from solid roots.” Fortunately the Companies House register showed Opentree and Opentree.co were available. Frank, it should be said, is very much an engineer still – a case-book study of heights an apprentice can rise to. Now 52 and a resident of Hutton Rudby, he served his time at ICI as a mechanical fitter. He’d earlier attended Friends School, the Quaker-inspired institution whose 156 year presence in nearby Great Ayton ended in 1997, when Wimpey turned its listed property into housing. By 1989 he’d also earned from Sheffield Polytechnic a first class honours in mechanical engineering and a masters (with commendation)

in manufacturing systems engineering. He was already by then a design engineer managing a CAD system for British Steel at Redcar, but aspiring to his own consultancy – successfully, it turned out. “I mortgaged my house and bought £30,000 worth of computer equipment – probably a big, bold step, though I didn’t appreciate it then.” In 1992, he and two older directors set up tsaADVET Ltd, he being technical sales director. When buyout opportunity arose last year, Frank seized it and set about the new strategy. The firm had already relocated to Stokesley in 2002, renting a building nearby for a couple of years. Then Frank designed and built the present premises, down to painting the skirting boards. “I know a bit about commitment,” he says. The building was the first up in stage three of the business park and there’s land to expand further. He got the business into the Growth Accelerator, the partnership of government and private sector helping 26,000 of England’s brightest businesses to excel. Advisors came in. Now there’s a three year strategy covering essentials like clients wanted, new areas aspired to, and even how the warehouse is to be run. Key performance indicators accompany. It requires major investment but Frank’s able to declare: “Up to now we’ve funded everything

We’re growing in a very competitive, international market. But our services are niche and in high demand. Also, our outstanding client base is doing much to establish our reputation and enable us to grow further Geoffrey Lean, Daily Telegraph

ENTREPRENEUR bqlive.co.uk

internally. So we’ve no debt. I intend it to stay that way. I’m a cash man.” On the morning of interview, Frank had just returned from Stokesley School encouraged by pupils’ response to his spreading of the business gospel. Like many other business bosses, he’s dismayed by how many young people lack awareness about business. If you must work, Opentree’s surroundings are idyllic – Roseberry Topping, Cleveland’s 1,000ft-plus sandstone crown of glory, within view, and a wraparound of greenery. Yet Frank admits: “I have the software development office at Sheffield now because of real problems trying from Stokesley to hire suitable staff, would you believe? We just can’t get software developers. I’ve talked to local universities and others. Now I’ve got into universities from Sheffield also, and got three software interns last September with a view, ultimately, to bringing them into the business. “We had 70 applicants then. That speaks for itself, doesn’t it?” It certainly has Frank questioning the employable output of universities in the North East. “I think we’ve lost the plot a little in education about need of practical skills, and ability to relate to people. You get all that as an apprentice, though. That’s why I’m also keen to try to get some starters into the business straight from school.” Almost apologetically he adds: “That’s being a bit negative but, at the end of the day… Look, we’re at the leading edge working in Microsoft technology. Yet from here, to take on a developer, we struggle even to get a shortlist.” The company staff are loyal, some having been sponsored through university after a work placement or similar. “I’ve sponsored them through their final year and they’re back, so there’s been some success there.” Two of the three members of his management team, in fact. There’s Daniel Taylor-North, director responsible for producing the software that customers need, then servicing and supporting it. He came on a sandwich year placement during 1996, was sponsored through his final year of university and has been with the company since. Then there’s Paul North, Dan’s younger brother. He’s product manager responsible for developing all Cabinet software. He too came on a sandwich placement in 1999,

I mortgaged my house and bought £30,000 worth of computer equipment – probably a big, bold step, though I didn’t appreciate it at that time Geoffrey Lean, Daily Telegraph

was sponsored through his final year of university and now runs Sheffield office. Paul Beel, finance and administration manager making up the trio, joined in 2013 having been a Business Link adviser for 10 years. Presently Frank’s looking for a software help desk apprentice. “I’m keen to invest in young people and hopefully they’ll stay. We’ve a great work environment, and there must be some IT kids who maybe don’t want to go to university. I can’t understand why they’d want to saddle themselves with maybe £60,000 of debt. That takes some paying back. We’d pay for their training, even put them through degrees.” Shortage of applicants, Frank thinks, may partly reflect on something seldom raised despite many other theories voiced: rural connectivity, particularly in light of shrinking bus services. The local Hambleton District Council has some funding for apprentices from Stokesley or North Yorkshire area. But, he asks: “Depending on how far away others live, how are they to get here? Middlesbrough is an hour on the bus because it comes all the way round and drops you in Stokesley itself – 15 minutes or so walk on top. That’s all right on a sunny day like this. But you can’t bank on that. “You really need your own transport to get here. But even a lucky young school leaver with

cash enough already to buy a car or a motorcycle wouldn’t be able to drive till they’re 17. They might want an apprenticeship at 16.” Norman Tebbit and “on yer bike” come to mind – though he never did mention a need for oilskins too. The firm had already relocated to Stokesley in 2002, renting a building nearby for a couple of years. Then Frank designed and built the present premises, down to painting the skirting boards. “I know a bit about commitment,” he says. The building was the first up in stage three of the business park and there’s land to expand further. He got the business into the Growth Accelerator, the partnership of government and private sector helping 26,000 of England’s brightest businesses to excel. Advisors came in. Now there’s a three year strategy covering essentials like clients wanted, new areas aspired to, and even how the warehouse is to be run. Key performance indicators accompany. It requires major investment but Frank’s able to declare: “Up to now we’ve funded everything internally. So we’ve no debt. I intend it to stay that way. I’m a cash man.” On the morning of interview, Frank had just returned from Stokesley School encouraged by pupils’ response to his spreading of the business gospel. Like many other business bosses n

Qatar’s order promises spin-off Andrew Frank confidently predicts: “Exciting prospects are arising under our new name – not only in the UK but across Europe and in the Middle East.” Dublin City Council is a long-term customer already, and recently Opentree, after two years’ patient negotiation, has beaten four rivals to manage contracts for a government department in Qatar. An initial 120 seats have gone into the department – modest, perhaps, compared with more than 3,000 licences for Opentree software that Tata holds, the 2,500 users at Atkins, and the heavy imprint on the rail industry. “But there’ll be spin-off,” Frank reckons. “With the strategy we’ve put together, I think there’s a great future. We’re a bit of an untold story really.” Not any more, though.

MANAGED OFFICE SPACE Flexible friends Flexible options at Newcastle’s £6.5m enterprise centre, The Beacon, are proving increasingly popular with customers.‘Hot-desks’ and meeting rooms can be booked for just an hour or two, and permanent offices, studios and workshops expand the possibilities for fledgling businesses. The centre’s expert and experienced team provide hands-on daily support and will assist with a range of extra services, including post, photocopying, conference services and mail shots. And there is also the benefit of free car parking. The centre’s expert and experienced team provide hands-on daily support and will assist with a range of extra services, including post, photocopying, conference services and mail shots.

Business Central Darlington’s manager Vanessa Woods welcomes Northstar Ventures’ director Ian Richards

SME backer takes its helping hands to Darlington

Northstar Ventures, which invests in ambitious North East SMEs and social enterprises, is widening its North East presence and now has two offices – its headquarters in Newcastle and an office at newly opened Business Central in Darlington. Director Ian Richards says: “We’re delighted to announce the opening of our new office. Our team has been expanding over the past couple of years, and with a winning bid for the North East Social Investment Fund secured, now seems the perfect time to expand.” Northstar Ventures’ portfolio of companies includes Palringo (a group messaging platform), Kykloud (building surveying and asset management software) and Atlas Cloud (hosted desktop specialists). The investor is looking for ambitious start-ups in the region that want to raise investment. With three active funds, it has around £13.5m to pile into North East enterprises. Michelle Cooper, investment manager at Northstar Ventures, is heading the Darlington office, and Richard Charnley is also there full time. Michelle says: “I’m really looking forward to increasing our network even further. From Darlington, we shall be able to serve the south of the region better. Angus Allan, corporate finance partner at Clive Owen LLP, says: “The team at Northstar does great work with companies in need of investment. Two bases in the North East should enable it to give a better and more comprehensive service to current and prospective investees.” Vanessa Wood, centre manager at Business Central, says “Northstar Ventures was one of the first companies to show interest in taking office space.” Business Central is in Darlington’s The Regent Centre office complex at Gosforth, Central Park Enterprise Zone. It has the North East Business and Innovation Centre (BIC) and built in the 1970s and now privately owned Darlington Borough Council behind it – a £6.6m project with funding from the European by a family firm, may be converted into 400 Regional Development Fund and the Homes and Communities Agency. Northstar Ventures’ homes. Sheffield developer Omnia Offices Finance for Business North East Funds comprise the Accelerator and Proof of Concept Funds. oce20314 Washington Business Centre Advert 175x20mm BQNE Strip Ad.qxp 27/04/2015 15:42 Page 1 has submitted a test-the-water planning They are backed by the European Regional Development Fund, the Regional Growth. application on the owner’s behalf.

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Training firm expands A young training firm has expanded into premises at the Terry Dicken Business Centre in Stokesley. Georgina Selmi, of Great Broughton (above), launched Bespoke Professional Development and Training (BePro) in January at the Wilton Centre, Redcar. BePro – accredited by the Chartered Management Institute (CMI) – delivers training in-house, on organisations’ own premises, at locations across Teesside and North Yorkshire and also via distance learning. Terry Dicken Business Centre on the Terry Dicken Industrial Estate is also a new development, offering individual offices to rent for small businesses, especially new ones.

SME backer takes its helping hands to Darlington A local waste management and recycling company has taken up open space membership at the North East Business and Innovation Centre (BIC) in Sunderland. Tim Jones, entrepreneur and director of Green Tiki Recycling, started trading last year after taking redundancy. His business trades in recyclable materials, developing suppliers and sources for processingWashington waste material.Business With business oce20314 Centre adviser Ron Anderson supporting.

Spectrum helps ambitions grow Just weeks after announcing its latest tenant, one of the North East’s fastest growing business parks has welcomed another growing organisation. The Great Annual Savings Company has chosen Spectrum Business Park to expand at. It has taken over 13,000sq ft in Spectrum 6, so this building is now fully occupied. The company joins County Durham Housing Group, which has taken office space on the first floor in the same building. Paul Wellstead, the developer behind Spectrum Business Park, said: “Last year I said I was aiming for full occupancy in 2015 and was confident that exciting announcements would come early this year. We have worked hard to position Spectrum as a premier business location for new and growing SMEs, as well as large organisations. Our two newest tenants back that up. Between them they are occupying over 26,000sq ft of office space. That will certainly play a part in the continued growth of the park over coming months.” Spectrum Business Park, off the A19 and a stone’s throw away from the Seaham Marina and Dalton Park developments, offers serviced office space designed for smaller businesses, and bigger units of up to 61,000sq ft to accommodate larger companies and organisations that employ up to 600 people. Brad Groves, chairman of the Great Annual Savings Company, says: “We wanted premises which fit perfectly our growth plans as development of our company continues. Spectrum Business Park fits the bill. The office space is high quality. It’s in a great location. And we’ll get the support we need to ensure we can take the business to the next level.” Spectrum Business Park, completed in 2010, is now home to more than 20 businesses employing over 750 people. Groves added: “With the vibrant mix of big name tenants and smaller companies located here, Spectrum Business Park is building a reputation as one of the region’s most versatile and high quality business locations. I really want to build on that to find for theBQNE remaining units. My aim is27/04/2015 to have Spectrum Business Park1full by the end of Advertoccupants 175x20mm Strip Ad.qxp 15:42 Page this year.” For more information visit www.spectrumbusinesspark.co.uk

Washington Business Centre Offering a mix of contemporary offices, workshops and hybrid units Turbine Business Park, just off the A19/A1231

Rent-free periods and other incentives may be available

EASY IN, EASY OUT Flexible terms are just one of the benefits on offer at The Innovation Centres Kirkleatham & Hartlepool. We offer flexible terms and competitive prices in purpose built, thoroughly modern well serviced offices and workshops that leave you free to develop your business without the complex restrictions of a long lease. KIRKLEATHAM • 24 hour access • 2 fully equipped meeting & conference rooms • High speed broadband internet connection • Network ready Cat 5 intelligent data cabling • Digital telecom system • Air conditioning (to the majority of offices) • Choice of office & workshop units • Ample free parking • Sophisticated security system • Gym and sauna

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Kelly Adamson (right) of Adept Professional Services with Sarah Thorpe of UK Steel Enterprise in the company’s office at the Innovation Centre, Hartlepool

Steel strength gets behind small businesses A recruitment agency tripling its team of specialists and a company expanding its range of care services are just two of the 80 companies currently thriving in UK Steel Enterprise Innovation Centres on Teesside. Adept Professional Services recently quadrupled the size of its offices at the Innovation Centre at Hartlepool to accommodate another 12 recruitment specialists needed to advise companies in sectors from energy, oil and engineering to finance and legal. And recent arrival Blakelock Support Services has added a laundry service to the wide range of personal care and cleaning help it already provides now it has the extra office and workshop space it needs. Peter Taylor, area manager for UK Steel Enterprise, the Tata Steel business-support subsidiary, said: “We are celebrating our 40th anniversary this year and, as well as providing vital finance to help companies grow, UKSE is a pioneer in the provision of managed business premises. “Our centres are specifically designed to provide the offices, workshops and range of facilities from well equipped meeting rooms, manned reception areas, free parking, 24 hour access and high security to fast broadband speeds, state-of-the-art telecom systems, landscaped grounds and even gyms, that we know growing businesses need. “We don’t tie our business tenants in to long leases and offices start from as little as £50 per week. Both our Centres have a great community spirit and, although we are always sorry to see a company move on it invariably means that we have achieved our aim. The business has outgrown us, needs bigger premises than we can provide and is creating jobs and boosting the region’s economy. And other businesses come in to take their place,” he added. Details of the Innovation Centres at Hartlepool and Redcar are available from 01642 777 777 or 01429 239 500 and at www.uksteelenterprise.co.uk.

oce20314 Washington Business Centre Advert 175x20mm BQNE Strip Ad.qxp

Business Central welcomes first tenant

Business Central Darlington welcomes its first tenant, Harvey & Hugo, an award winning PR and social media agency to the state-of-the-artbuilding. Charlotte Nichols, managing director of the agency that aims to share knowledge, promote success and spread positivity throughout the North East, said: “We love being in the centre of town, but wanted to move to a more modern and social office space and were impressed with Business Central. “Our staff are hoping to run and cycle to work now that we’ll be working somewhere with shower facilities.” Business Central opened its doors in, located in the Central Park Enterprise Zone, Darlington. The North East Business and Innovation Centre (BIC) is working with Darlington Borough Council and the £6.6 million project has been supported with funding from the European Regional Development Fund and the Homes and Communities Agency. Centre manager, Vanessa Wood added: “I am thrilled to welcome Harvey & Hugo to Business Central – the first of many tenants that will create a bustling business community. “This has been a collaborative project and I would like to thank the partners involved at Darlington Council and HCA for helping to bring the building from a blueprint to life.” For more information on the office space and other services available at Business Central please call 01325 526 006 or visit www.businesscentraldarlington.co.uk

“I am thrilled to welcome Harvey & Hugo to Business Central – the first of many tenants that will create a bustling business community.” 27/04/2015 15:42 Page 1 Geoffrey Lean, Daily Telegraph

Washington Business Centre Offering a mix of contemporary offices, workshops and hybrid units Turbine Business Park, just off the A19/A1231

Rent-free periods and other incentives may be available

Washington Business Centre Offering a mix of contemporary offices, workshops and hybrid units Turbine Business Park, just off the A19/A1231

Rent-free periods and other incentives may be available Find out more by contacting the Business Investment Team, Sunderland City Council

0191 500 7851

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washingtonbc@MAKEitSunderland.com

COMMERCIAL PROPERTY EZ lure brings in 2,100 jobs Around 2,100 jobs have been created in Enterprise Zones throughout the North East and Tees Valley, on government reckoning. The 24 Enterprise Zones it has approved have now created more than 15,500 jobs, attracted over 480 businesses and over £2.1 bn in private investment, boosting also the construction sector and supply chains. Much of the 2,100 jobs growth in the North East Enterprise Zone is seen in the automotive, offshore energy and low carbon sector. Paul Woolston, chairman of the North East Local Enterprise Partnership (LEP), says notable success on 10 sites has been seen at Vantec, Fraser Hydraulic, GE Oil and Gas and Bridon. In Tees Valley the benefit has been around 2,000 jobs, growth being notable at companies in the green energy, offshore wind and subsea technologies sectors, such as Tracerco, Air Products, Sembcorp and Lotte Chemicals. Stephen Catchpole, managing director at Teesside’s LEP, Tees Valley Unlimited, says there have been 14 private sector oce20314 Washington Business Centre investments there, bringing more than £750m

Around 1,200 homes could be built over the next four years by Alnwick housebuilder Cussins alone

Andrew James is big in the kitchen Online kitchen and appliance specialist Andrew James UK has acquired a four storey office building at Spectrum Business Park, Seaham, for just under £1m. The business which has almost tripled sales in three years to £17.4m, has acquired Lighthouse View (73,418sq ft) through Naylors Chartered Surveyors to be its head office, including customer service and business support. The present staff of 93 is expected to grow by 25%. This deal follows Naylors’ acquisition last year of a 125,000sq ft distribution hub for Andrew James at nearby Foxcover Industrial Estate. The combined estate now at nearly 200,000sq ft, is more than double the size of the firm’s former premises at Bowburn. Last year also Naylors achieved the largest office letting in East Durham for over 10 years at Whitehouse Business Park, where the clothing manufacturer AMA Group signed a 10 year lease.

of private sector investment. The Government opened the Enterprise Zones in April 2012 as part of a 25-year project to rebalance the economy, offering firms tax incentives, simplified planning and superfast broadband.

for Capita, which provides business process outsourcing and integrated professional support. Capita has agreed terms for 42,000sq ft of space for a relocation within Darlington to house around 450 staff. The announcement comes soon after the sale of Lingfield Point for More to the point £23.45m into a fund managed by Clearbell, an Lingfield Point, Darlington’s mixed property independent investor in UK property. development created from what was the It will take Lingfield Point’s employee headcount Advert 175x20mm BQNE Strip Ad.qxp 27/04/2015 15:42 Page 1 world’s largest wool factory, is to provide a base to more than 3,000.

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MANAGED OFFICE SPACE bqlive.co.uk

Hampton by Hilton Hotel

New hotel opens The new 160 room Hampton by Hilton Hotel (above) – opposite Newcastle’s Central Station – has opened, creating 60 jobs. General manager Paolo Franchi says the makeover of the former Baron House Building has been a £multi-million project. The hotel is part of Hilton Worldwide’s UK portfolio and is managed by Interstate Hotels & Resorts for Baron House Hotel Ltd. It is the first Hampton property in Newcastle and the 14th in the UK. Patrick Parsons, the Newcastle consulting engineers who did work there, have also been sub-contracted by Kier Property in a £13m project to develop a 222 bedroom Motel One in an existing building on High Bridge, Newcastle. Interserve’s conversion of the art deco building once the Co-operative department store on Newcastle’s Newgate Street is on schedule to become a 148 room Premier Inn with retail outlets in time for a November opening. Meanwhile the Co-op, back into profit, is investing £600,000 in two stores it still runs in Gateshead.

business, living and leisure will eventually look. On 24 acres of city centre area, it is designed to support a thriving community, rewarding jobs and ground breaking scientific advances. Officially opened in February, its completed buildings already include The Core, an £11.2m office block almost 90% pre-let before it opened last November, and designed for firms working on future city challenges such as energy, transport, big data and cloud computing. Plans for Newcastle University’s £58m Urban Sciences Building have been unveiled, and the university has secured £10m of research funding towards an urban water infrastructure facility in the Urban Sciences Building, opening in Autumn 2017. This will be integrated into equivalent urban infrastructure test-beds for energy, transport and ICT infrastructure already under development. Funding has also been secured towards a laboratory space facility and a Low Carbon Energy Centre, and options are being explored for prime commercial and residential plots.

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It may take up to 15 years for Science Central to develop fully, but a stroll round the upcoming central district of Newcastle gives a good idea even now of how the new district for science, business, living and leisure will eventually look. Name here. Around 1,200 homes, On 24 acres of city centre area, it is designed Housebuilding is on recovery throughout to support a thriving community, rewarding the North East. Around 1,200 homes jobs and ground breaking scientific advances. could be built over the next four years Officially opened in February, its completed by Alnwick housebuilder Cussins alone. Around 1,200 homes, Housebuilding buildings already include The Core, an £11.2m office block almost 90% pre-let before is on recovery throughout the it opened last November, and designed for firms North East. Housebuilding is on For up-to-da working on future city challenges such as energy, recovery in the North East. business ne te ws sign up for BQ transport, big data and Br ea kfast cloud computing. Plans for Newcastle University’s It may take up to 15 years for Science Central £58m Urban Sciences Building have been bqlive.co.uk/ breakfast to develop fully, but a stroll round the upcoming unveiled, and the university has secured £10m central district of Newcastle gives a good idea of research funding towards an urban water oce20314 Washington Business Centre Advert 175x20mm BQNE Strip Ad.qxp 27/04/2015 15:42 Page 1 even now of how the new district for science, infrastructure facility in the Urban Sciences

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A whole lotta rosé

Lee Rankin, Managing Director at Gem Partnership, reveals his love of the pink stuff...and breaks his own house rules on Pinot Noir To start, I have a confession. My name is Lee, and I like Rosé. This is not a casual flirtation, or some sort of spouse tolerance; but a deep and genuine love for the pink stuff, honed over the last six years taking summer holidays in France. You see the French love Rosé, they drink it by the bucket load and it has fast overtaken white wine as the summer tipple of choice. Go into any French supermarket and this fact hits you as the space dedicated to Rosé is three times that of white wine. Drinking Rosé in the UK by contrast is rather more difficult. The choice in the larger supermarket chains in the main is not great, with the majority far too sweet and syrupy. The odd bottle of paler, Provençial style you can occasionally find is either too bland or incredibly expensive. Add to this the social unacceptability of the male of the species enjoying this wonderful wine and you get the point I am sure. Consider if you will the concept of ordering a glass or bottle down the pub – sans wife, or worse still at a sporting event; eyebrows would certainly be raised at best. Rosé for me is not a winter drink, it’s an addictive summer experience, accompanying warm summer nights, eating fresh food outside, and our household consumption usually starts around May. As the spring approaches, so does the thought of switching from winter staple reds. Imagine

my glee therefore, when I opened the tasting box and what do I find; two French bottles. A very nice Rosé and a Pinot Noir, quite possibly my favourite red in the right circumstances. An opportunity to kick start the 2015 Rosé season a month early is on the cards. The Coteaux d’Aix is a fine example and a great entry point for non-aficionados. Accompanied by delicately poached salmon, homemade tartare sauce and some in-season British Asparagus, this wine was a real hit. Light, fruity but dry – the usual Cotes de Provence descriptors; but remarkably complex also and longer on the palate. We found hints of strawberry, peach and more exotic fruit notes. It’s perfect with food but is also great on its own; exactly the qualities we look for and as such this will be finding its way into our fridge over the months to come. Now to the red and I must confess I have a thing for Pinot Noir. Not quite the fanatical musings of Paul Giamatti in Sideways, but I am partial to a good bottle. The problem, however, is that my wife Jo is not a fan, unless it’s a £20 plus bottle of Burgundy. She has a point; much of the supermarket fare is average at best, unless you are well north of £15 a bottle and usually French. As such we have a rule in the Rankin household – if it has Pinot Noir on the label it won’t get past the gatekeeper. The Domaine de Valmoissine n

ON THE GRAPE VINE The wines bill sampled were Organic PouillyFumé 2013, Jonathan Pabiot. £19.99 or buy 2, save 33% £13.32 Edna Valley Pinot Noir 2012, California £12.99 or buy 2, save 33% £8.66

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Listen, do you want to know a secret?

Big skills and career opportunities are promised as Shirley Atkinson drives around £14m worth of investment towards bringing business and academia closer. Brian Nicholls discusses it with her over lunch To have the smiling Shirley Atkinson accept your lunch invitation and impart a medley of ‘secrets’ and elaborations is privilege indeed, one feels, given the extraordinary workload she bears. Can there be anyone in North East academia presently with more specific projects demanding her time and expertise – much of them to do with pumping more power into the elbow of North East business enterprise? The successful £8m creation of an Enterprise and Innovation Hub and FabLab are two of them. Then there’s the commitment to introduce a groundbreaking university technical college, dedicated to training model recruits for engineering and other industry. Thirdly, there’s a £6m investment to build on the university’s

international reputation for pharmacy and pharmaceuticals, enhancing work also in new areas such as proteomics (study of proteins in organisms) and metabolomics (studies in metabolism). At the same time she carries out her day job, shall we say, as interim vice-chancellor and chief executive of the University of Sunderland’s stewardship of futures for 19,800 students. That involves responsibility for the executive management and oversight of the university, delivery of its corporate and academic plans, its financial sustainability, and the quality and success of its programmes and graduates. Elaborations concerning the Hub, the FabLab

and the technical college, first in the North East, should be discussion priorities, we felt. It would have been understandable had Shirley responded in slow measure, given all the facts and figures that must swirl in her head. On the contrary, an intensive and indefatigable networker, she speaks spontaneously and confidently as she leads a verbal tour of potential benefits for the region where business and education edge closer – an urgent need of the North East’s strategic future, given the combination here of excessively high youth unemployment and a skills shortage. She can confirm already that the FabLab is opening early on a temporary site. And the Hub of which it is part will become the focal point for businesses

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wishing access to offerings of the university and its departments. “We’re talking to a range of stakeholders so the Hub is a compelling offer for businesses to locate to,” she says. “And the FabLab is a great addition. We’re really excited about that.” In total, a new University of Sunderland gateway to the business community – aligned to a mission and purpose of the institution to be more entrepreneurial in its support of communities and businesses. All became possible when the Government announced a £290m investment for skills and jobs, projects, housebuilding and transport links in the region, covering many of the projects submitted to government in the North East Strategic Economic Plan. The Hub idea, she stresses, arose through Sunderland Business Group when the university was asking business people how it might further support them. It is now expected to support the region in stepping up the number of innovative business start-ups, creating more than 700 jobs. Since 2002 the university, through hatchery and incubator spaces, has already helped hundreds of students and graduates eager to set up businesses. The new hub will expand this. All should be up and running by December 2016, with support also acknowledged from the North-East Local Enterprise Partnership and Sunderland City Council. Meanwhile, the FabLab gets under way temporarily alongside its eventual site on the city centre campus. The FabLab concept, a digital manufacturing laboratory, was conceived and developed initially by Massachusetts Institute of Technology. FabLabs have the latest technology and fullest support for experiments that may herald new products. “It’s a great addition that we hope will benefit the whole region,” she says. The university is delighted also to have been working with Hitachi since its arrival in South West Durham. “We now have approval to open the first university technical college in the region – a joint venture between the university, Hitachi

We have a language going in to help manufacturing and industry. The language chosen is German Geoffrey Lean, Daily Telegraph

and Gestamp Tallent auto parts manufacturer. Many more firms on the business park at Newton Aycliffe are interested. Part of the objective is to help create a supply chain whose employees have the right skills-set at different levels. We don’t just focus on undergraduate or postgraduate for business; we’re interested in the supply chain all the way through. “We can help all learners to have an opportunity. So the university technical college will have three pathways – apprenticeships with Hitachi and other employers, a pathway for those wishing a BTec level qualification, and a pathway for those wishing higher education, and who will do very strong science based A levels. “A university technical college,” she defines, “takes young people from 14 to 19 and differs in concept to any other kind of college development. It has different characteristics. The curriculum is vocationally focused, although we

shall deliver all the curriculum stuff in science areas. “We also have a language going in to help manufacturing and industry. The language chosen is German. Once learners reach 16-18 our curriculum is aligned to employer needs. The 16-18 students get the opportunity of embedded workplaces with employers. “Theirs is a different curriculum day. They are there from nine until five, focused on the journey they are on. This, then, isn’t a college because entrants are coming in at 14. So it’s a school, but with a slightly different purpose and focus.” Then out pops a university ‘secret’ – well, perhaps more a little known, fascinating fact about existing achievements that help us assess prospects for further success. Work already undertaken with Nissan includes the fact that out of 38 Sunderland graduates who worked on strategic projects with the

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motor manufacturer and its supply chain 36 were retained. An estimate of about £11m has resulted from savings and improvements brought by teamwork within the supply chain. Many Nissan technicians have gone through Foundation degrees, and 1,778 Nissan employees have trained at the digital factory. One project in the advanced manufacturing saved the company €2m. There was a £6m increase in revenues at four companies in the supply chain through digital engineering improvement. A programme of leadership development has also involved 80 senior staff of Nissan working on mainland Europe and in the Middle East and Asia including India. “That’s compelling stuff – again, a bit under the radar,” Shirley agrees. “In the advanced manufacturing research centre we work with numerous firms to improve manufacturing processes.” How satisfying is it for her, personally, to work on the like of the Hub, the FabLab and the university technical college? “It’s great. We’ve also just had funding agreed for phase two investment in the sciences complex. This is equally exciting since we’re well connected in the health and pharma world. The upgrade will refresh and connect into different ways of learning and teaching.” Is this diversifying the economy of Sunderland or capitalising on it? “You have to think about it kind of differently,” she explains. “Sunderland has the status of being a social enterprise city. The city council is looking at ways to deliver its services, and has three social enterprise ventures. “It’s capitalising more, I think, than re-inventing, acknowledging strengths and differences, and going forward. It’s especially interesting for us since we work heavily with the region’s employers as well as locally.” Also little known outside the walls of learning, perhaps: the city’s famous pharmacy school dates back more than 100 years, though the university per se has only existed since 1992. The arts school and teacher education also predate the present status. The four year study course in pharmacy is moving to five, and here’s another little known fact: the existence for about a year now of a point of care testing centre. Students can work in a simulated hospital ward, beds and all, with technology already in service. “They can use it

A university technical college takes young people from 14 to 19 and differs in concept to any other kind of college development. It has different characteristics Geoffrey Lean, Daily Telegraph

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Collaboration the key

Mercure George Washington Hotel Golf and Spa Hotels, like a university, can spring surprises. The independently owned Mercure George Washington Hotel Golf and Spa, tucked invitingly and intimately into a rustic quarter of Washington New Town, gives service and ambience far beyond its three stars. Lunch with Shirley took place in the new orangery – bright and cheerful like the staff. The international menu includes Catalan, Tuscan, Persian, Argentinian, Mexican, French, Tunisian, American – but with steaks from County Durham too. So you really could go around the world on a plate! However, both diners on this occasion chose vegetarian – a pumpkin and chickpea curry with basmati rice and poppadom, and an Asian salad bowl, and a zucchini, mint and feta frittata which, on arrival, could have fed a family of four as Shirley suggested. With little time available, we couldn’t do our meals justice, but value for money? Certainly. Main courses (there are also daily specials) run from £12.75 to under £20. Starters and sweets abound. There’s a good bar menu too.

all on each other too – a bit worrying,” Shirley says, impishly. “Some health care providers are using it too. In a hospital only one person might use a particular item of equipment – maybe a nurse, a care worker or a consultant. But not everyone is aware of the whole range of the instruments and technologies available. So they can come to a safe space, our point of care testing area, away from an actual hospital environment. “We’ve a strategic partnership with Sunderland Foundation Trust, the hospitals foundation. So

the health and wellbeing and the sciences work very closely with the Trust on shared agendas. That’s very compelling – not just for families in Sunderland area. It involves work also with South Tyneside around the health agenda.” Elsewhere, future investment is planned to further develop the institute of automotive manufacturing and advanced practice (AMAP). A recent economic study of the university’s impact concluded it generates £560m GVA for the UK economy and supports 7,500 jobs in the region. All the portents, then, are that these figures will rise. n

University strengths also support Sunderland Software City, one of the university’s innovations worked out a few years ago with the city council. “Again lots of innovative work goes on there, lots of work with software companies coming into the city and the region. Collaborations are going on now with two major employers to get the right graduate skills. One based overseas is not only taking in graduates but also helping to redesign the curriculum to meet its needs in Sunderland. FabLab and Software City are different entities but that’s not to say there won’t be overlap. “We collaborate throughout. We don’t presume we have all the answers. Collaboratively we get far better benefit for employers and students. “Sometimes employers say they need graduates with good communication skills. We try to ensure there are other attributes besides, but we must also ensure our programme works for employers, as well as us bringing research to the table. “Our academics have been to a Belgian academic institution recently, and to Australia to see how other academic programmes are offered in advanced manufacturing. They’ve been to the Massachusetts Institute of Technology to see software developments going on there. They bring that back as well as looking at what industry is telling us here. “Yes,” she smiles again. “We’ve many secrets. Culture and creativity are big for us. The national Glass Centre being part of the university’s asset base now is a huge plus. Media and digital too.” Few perhaps realise either that work with the Arts Council on The Cultural Spring, a £2m university project over three years, played a large part in the outdoors passion play BBC TV presented last year from South Shields. “That’s bringing culture and arts to communities, and trying to embed belief in culture,” she points out. “We’re very involved in supporting the creative industries.”

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A FRONT RUNNER Recruitment expert Martin Dowson, of NRG, finds a new Porsche that ticks all the boxes

As a recruiter, every once in a while you come across a truly exceptional candidate; someone who stands out and excels in many areas. And itâ&#x20AC;&#x2122;s not every day that you find yourself with the keys to a brand new Porsche. This particular model is very special. The Carrera GTS cherry-picks the best bits from the options list as well as adding some subtle styling changes. Even when stationary, the car looks purposeful. It is slightly lowered compared to the more junior Carreras and the 20-inch centrelock wheels provide an aggressive, motorsportlike stance. In short, the car is specified for maximum driving pleasure. The already powerful 3.8 litre flat six engine

from the Carrera S is further boosted to 424bhp resulting in startling acceleration; with the fast-acting PDK twin-clutch gearbox the car will crack 60mph in less than four seconds (quicker than the manual) and it will go on to 188mph. With all of that in mind you canâ&#x20AC;&#x2122;t help but feel a sense of occasion once inside and surrounded by the sumptuous interior. This is only the second full re-design of the 911 since the model was launched in 1963. Aside from significant cosmetic changes there have been improvements to fuel economy on the previous range, not least a stop-start system and electrically powered steering. The latter has come under criticism from some quarters but

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THATâ&#x20AC;&#x2122;S JUST THE JOB there was no perceptible lack of feedback and connection. The seating position is low and the traditional Porsche dashboard layout with the rev counter directly ahead leaves you in no doubt that this is a serious machine. What you quickly notice is that there are two versions of the driving experience: for normal driving around town, the car is civilised, provides excellent visibility and is completely user friendly. The all round build quality seeps through and you sense the high quality engineering in the whole car. However, find yourself on an open road, snick the gear lever to the left to take full control of the gears via the steering-wheel mounted

paddles and bring the car alive. There are switchable modes for the sports exhaust that basically control the pitch and volume. The bellow as the revs rise is pure intoxication. This car was fitted with a glass sunroof that served to perfectly enhance the aural onslaught. The GTS is an engaging and thrilling car. With the engine at the rear, you may anticipate an unusual driving sensation. With decades of continuous development within the 911 model range, however, and some clever suspension trickery, the car feels highly stable and confidence-inspiring. The driving experience is certainly different to a more conventional front-engine car but is highly effective and the

light overall weight of the car compared to rivals is a hidden strength. On a flowing road, the GTS cocoons you with confidence and provides a real driving pleasure. Capable as an every day drive as well as a long distance cruiser and even occasional use on a race track. It does everything brilliantly. And that is why some may say the 911 is ubiquitous. My view? This is an exceptional candidate. n The car Martin drove was a Porche 911 Carrera GTS, priced at at ÂŁ103,990 (VAT Qualifying), supplied by Porsche Centre Newcastle, Silverlink Park, Wallsend, NE28 9ND

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Clothing that is striking a chord

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Music mad John Varvatos’ celebrity-endorsed designs appeal to ‘rugged’ men seeking a touch of rock ’n’ roll chic that will last, discovers Josh Sims When Harrison Ford entered John Varvatos’ New York store back in the early 2000s – its fledgling days – the designer had kind of hoped the movie star would buy some clothes, rather than one of the shop fittings. “But the sofa is what he fell in love with, and he asked us to make him one,” says Varvatos. “It was a fun project and it was exciting so early on to have someone like him in.” And Ford did end up buying some clothes too.The likes of Springsteen and Cruise followed suit. And now, the ongoing appeal of the clothes has led analysts to tip the company as the next $0.5bn giant – the most likely to become the next monolith the likes of Calvin Klein or Ralph Lauren. Varvatos makes man clothes: rugged, dark, sometimes idiosyncratic but not clever-clever, ultimately wearable, properly sized, not made for skinny boys. “I always wanted to be a designer for the guys,” says Varvatos, who the year after he launched picked up the CDFA fashion Oscar for New Menswear Designer in 2000, and then,

I always wanted to be a designer for the guys Geoffrey Lean, Daily Telegraph

the following year, picked up the Menswear Designer of the Year (and yet again in 2005). “Guys look at what they see on the runway and, often, don’t get it. It’s not real. That was a gap in the market when I was starting out. There was a need to give men clothes that would still have meaning to their wardrobe 10 years later. Even guys with money look at clothing and say ‘but do I need it?’.”Thankfully for Varvatos – whose business has grown exponentially, recently opening its first European flagship store in London – the answer is most often ‘yes’, with the clothes seeming to chime with a relatively newly fashion-aware man. “Even my doctor reads fashion magazines now and he’s not a stylish man,” says Varvatos, who trained in science education and taught chemistry for a while. His designs are often described as having something of a rock ‘n’ roll aesthetic, “which is a sprinkle of magic, although I’m not really sure what ‘rock ‘n’ roll clothes‘ are,” he says. Rock is hard to escape with Varvatos though

– there’s the annual, road-closing gig outside his Melrose Avenue store that’s attracted performers like ZZ Top and Aerosmith, and the fact that he is a self-confessed “music junky” with his Bowery boutique in the former premises of the legendary CBGB club. He has even just launched his own record label in conjunction with Republic, its first signing being the Zac Brown Band. “And it’s not a vanity label,” Varvatos stresses, “not some contrived way of promoting the fashion. The fact is that the record industry faces a challenge in that artists don’t trust the big labels any more because they’re selling all the time, and only really interested in the next single, rather than giving an artist the time and space to grow, as used to happen. That’s what we want to give them.”This could be an echo of the way Varvatos’ own company has grown: small at first, with a line backed to the hilt by global lifestyle brand Nautica – so impressed was the company, for which Varvatos had

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Power suit fashion game “Power”, Giorgio Armani recently announced, “can be feminine.” Look to the catwalks, and power is certainly in play. If the 1980s saw women embracing the sober tailoring of their male counterparts – all the better to play them at their own corporate game – then so-called power dressing is back: the middle line of soft mixed separates, as espoused by Michelle Obama – not an unpowerful woman after

created a jeans line, that it more or less goaded him into doing his own thing. That now encompasses an international spread of stores, with a sideline full collection for Converse and the launch of home wares now under consideration. But perhaps the fact that Varvatos strikes a marketably distinctive but approachable look is no surprise given his teachers. Those aforementioned monoliths? He helped make them – first at Calvin Klein, where he launched menswear, and then at Ralph Lauren’s Polo label, where he was head of design. “Calvin is the master of marketing, of capturing the moment with just that little bit of shock value, and working for Ralph was like being at the University of Lifestyle,” says Varvatos. Varvatos talks with affectionate humour of how his previous boss’ approach is not his own. “Ralph is actually super classic, and the clothes become a reflection of a moment in time -–one season it’s equestrianism in the 1930s, then Capri in

I always wanted to be a designer for the guys Geoffrey Lean, Daily Telegraph

the 1950s or ‘Chariots of Fire’, which can feel a bit costumey at times,” he says. “We try to never get locked into a period or place. We want customers to have the ability to walk into the shop the following season and not say to themselves ‘what happened? why all the changes?’”That Varvatos is keeping the company on such an even keel is, he suggests, a product not only of his training with Klein et al, but the fact that he is not a designer per se, (much like Ralph Lauren, in fact). “And if we only understood the creative process and not the business side, we’d have had big problems,” he admits. “Frankly talent isn’t enough, nor is being a one trick pony. You can see all these new brands come up, and then all these new brands disappearing – because they’re not grounded in business. “I want to grow and I’m always thinking about what we can do next, but I don’t want to get bigger just for finance’s sake,” Varvatos adds. “I’m always being asked when we’ll do womenswear but, you know, it’s a war out there. My bigger concern is to build a long-lasting company, to leave a legacy in menswear. And, no, I don’t miss teaching chemistry.” n

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The ambassador for one of the world’s most iconic champagnes enjoys a glass, or two, with Josh Sims Michel Janneau sips from another glass of Cristal. Well, it is his job. “I remember drinking my first glass of it, when I swore that I would never drink any other kind of champagne than Cristal from that time on. And at the time I was a student in Paris with a very limited budget,” he says. Another sip. “If you ever come across a bottle of 98 Cristal, you have to buy it immediately. It’s the most elegant champagne you can find.” Of course, as the ambassador for the Louis Roederer champagne house – owners of the Cristal brand – Janneau might well say this. But, reclined in the company’s palatial mansion in Reims – an old family property for one of the last remaining champagne houses still familyowned – he is very convincing. Louis Roederer, after all, has been making champagne for 237 years over five generations, its chief asset being 526 acres of vineyards, which supply two-thirds

r a e l c l Crista s p e e k vision p o t n brand o

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Power suit fashion game

of the company’s requirements. Crucially, this precious terroir is owned by the company. As its competitors typically sold off their lands during the 1980s to third party grape suppliers, Louis Roederer just bought more. That has allowed for an atypical quantity and variety in its 800,000 litres of maturing reserve wines. “But being family-owned is not a benefit,” says this straight-talking master of bonhomie. A pause for another sip. “It’s a crusade against the giants that dominate the market. Every minute is a fight, but it’s worthwhile because we don’t spend a penny on focus groups but on making the wines we like. We can decide not to make Cristal one year if the grapes don’t deserve it. Our finance director may look at us as if we’re crazy, but you can all the same. You sell what you produce.” And that is often something special – the likes of its golden Brut Premier, a blend of four vintages distinctive for having been expensively aged in oak barrels for up to five years, as opposed to the 18 months more typical of the industry at large. “That maturity is a luxury because we could sell a lot of non-vintage wines without the aging – but it’s that that gives us our conception of champagne,” says Janneau. “People talk a lot of nonsense about vinification and fermentation. It’s best not to interfere with the natural processes too much. All champagne needs is a good, deep nap.” Top of the tree is Cristal – another sip – with its complex spectrum of flavours, and complicated public image. Janneau concedes that it is a double-edged

Cristal has this public image as the iconic wine for the very rich. And it’s indecently expensive Geoffrey Lean, Daily Telegraph sword. On the one hand is this incredible story: Tsar Nicolas II bothered by his champagne looking like anyone else’s, and so commissioning a special bottle for a wine he subsequently buys all for himself, and which mere commoners today can only buy should it even be produced. But on the other is “Paris Hilton swigging from a bottle,” as Janneau puts it. “It’s really two guys – the one loved by sommeliers and the one who likes the nightlife, the one who uses it to shower his girlfriend,” he adds. “Cristal has this public image as the iconic wine for the very rich. And it’s indecently expensive – well, it is. But it’s also much more than that, even if its reputation probably overpowers all the other champagnes we make.” Indeed, Janneau recalls overhearing his motherin-law to be’s disappointment when his wife-tobe told her that he worked for Louis Roederer: “’Oh darling, I thought he was working for Cristal’, she said.” Besides, Janneau feels that champagne in general is increasingly living something of a double life. He agrees that, as a piece of marketing, the association between champagne and occasions of celebration is “an immense success”. n

“Power”, Giorgio Armani recently announced, “can be feminine.” Look to the catwalks, and power is certainly in play. If the 1980s saw women embracing the sober tailoring of their male counterparts – all the better to play them at their own corporate game – then so-called power dressing is back: the middle line of soft mixed separates, as espoused by Michelle Obama – not an unpowerful woman after all – has given way to a revival of the office style that some women working the greasy pole in big business once felt compelled to wear in order to be treated as equals to the pin-striped men. Now the likes of Gucci, Yves Saint Laurent, Christian Dior and, of course, Armani are

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A bank with a strong focus on supporting entrepreneurs BQ editor Kenny Kemp hears how Santander is keen to build on business confidence whilst establishing itself as a ‘scale challenger’ in the Corporate and Commercial sector It is refreshing to see a banker with a broad smile on his face. Kevin Boyd, Santander’s Divisional Managing Director for North East and Cumbria, is an upbeat guy and speaks with passion about how Santander Corporate & Commercial is forging ahead on a number of fronts. A recent Santander business growth survey has shown that business confidence in the UK is at its highest level for three years, with businesses focused on growth both at home and overseas. It’s extremely encouraging and while business owners report that trading conditions remain challenging, a fifth believe that their business has never been in better shape. Santander is committed to helping businesses prosper and has been a consistent supporter of businesses in the UK, with lending over the last four years growing by an average of 17% per year. A North East business with fast track growth plans and European expansion aspirations has become the first company in the region to receive a cash injection from the Santander Capital Growth Investment Fund. The deal will enable Great Annual Savings Group, whose experienced Business Solutions Team work with businesses to reduce their variable costs and ultimately save them money, to accelerate plans to expand its business and build on the success achieved to date. Santander’s Capital Growth Investment programme has been developed to provide funding to a vital yet commonly underfunded UK business sector. Central to the programme’s aim is a commitment to providing up to £200 million in growth capital to some of Britain’s most ambitious and dynamic small and medium-sized enterprises

LEARNING FROM THE MASTERS But Boyd and the team at Santander recognise that the role of the modern banker in supporting businesses involves more than just providing a business current account or loan facility as he explains “We aim to provide ‘added value’ experiences that help bring our network of influencers together and, where possible, work with our own customers to help deliver ‘thought leadership’ Masterclasses. One such Masterclass took place recently with Saatchi and Saatchi, the iconic Advertising Agency. The opportunity to learn firsthand how this market-leading Company operates is a truly fantastic one and we were delighted that they were prepared to share it with 17 other businesses. “ This is real example of how Santander is really adding value with an experience that you would not typically expect to be offered from a bank. ‘BREAKTHROUGH MOMENTS’ FESTIVAL So many successful fast growth businesses can recall those defining moments that enabled them to reach their potential. Santander are delighted to be hosting a week long business festival celebrating such ‘Breakthrough Moments’ between the 18th and 22nd May. Events will take place within Santander’s Red Box that for a week we hope will transform The BALTIC Centre into a place of ideas, entrepreneurship and networking for the North East business community . SOURCING FUTURE TALENT The survey also showed that the outlook for staff retention and new job creation is also

Our ethos is in relationship banking, getting to know our customers, what’s important to their business and developing solutions that are a good fit on both sides Geoffrey Lean, Daily Telegraph

positive, which is welcome news for the wider UK economy and the North East Business sector. Boyd says “The need to attract quality staff continues to be a challenge for businesses and by linking up with universities across the Country we’ve been able to make a positive impact. Firstly, we work with the universities to source suitable candidates; individuals that are interested in building a career and welcome the opportunity to go and work with an employer for a three month period. Secondly, we fund 50% of the salary costs for the period.” This is an excellent way of helping SMEs get an important project off the ground, where employment costs may otherwise prove to be a barrier and about putting young talented people into growing businesses and improving their business acumen.Boyd confirms, “What’s more, you don’t have to be a Santander customer to take advantage of this initiative – of course we’d like you to be - but it really is a genuine attempt to support these important sectors and, in so doing, help the wider British economy. It is just one part of our innovative Breakthrough programme designed to support the UK’s best fast-growing small businesses. Santander is keen to extend its portfolio of business in the North East, bringing added value through its innovative schemes. Boyd stresses the importance of sustaining the relations with the client. “Our ethos is in relationship banking, getting to know our customers.

For more information about Santander’s Breakthrough Moments Festivals visit santandercb.co.uk/breakthrough

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I think the Belgian market is open to suppliers from abroad, especially when they offer a unique product and support it well. Belgian buyers judge a product offer on merit. But personal interaction is also important Geoffrey Lean, Daily Telegraph

It’s a remarkable trading trend. Exports from the North East of England to Belgium soared 393% during 2014, a cash rise of £840m, latest UKTI figures show. Also one year ago Bmi regional airline introduced a regular scheduled service between Newcastle and Brussels. Coincidence? Hard to tell, but about 60% of passengers using the service are on business. David Laws, chief executive at Newcastle International Airport, describes Bmi’s service as having been well received by the North East. But to imagine tickets are being snapped up by small businesses in the region might be misleading. Ken Cuthbert, North East regional marketing manager for UKTI trade development, says the trade spike with Belgium is mainly down to 97% automotive, with much of the rest pharma/medicinal. “Take out sectors dominated by larger organisations – organic chemicals, pharma, automotive, steel and power generating machinery – and the increase over the year is £2.8m,” he explains. “But this is for the whole SME community, and within ‘smaller’ sectors

there are ups and downs.” Yet one smaller North East company proving Belgium pays is HTL of Cramlington, operating also from Aberdeen, Manchester, Iraq, Singapore – and the Benelux countries. It began with two employees working from, virtually, a double garage in 1994. Today, thanks partly to Belgium, it’s in a new 65,300sq ft headquarters at Nelson Park Industrial Estate, turns over around £7m, and is excelling at subsea work through its controlled bolting and high pressure hydraulic engineered solutions. HTL Benelux opened in 2013, HTL having traded with continental firms over many years. Sander Magnin, managing director of HTL-Benelux, tells BQ: “By establishing an ‘own’ company, HTL has shown commitment to the local market, hence positive feedback here. Customers also benefit from HTL covering exchange rate differences through HTL Benelux trading in euros.” All products carry “excellent” customer support which, Magnin says, differentiates HTL from its competition.

Belgian companies present in the North East include, in Newcastle, Cathie Associates, specialists in offshore pipeline geotechnics and trenching engineering; and, at Redcar, Katoen Natie, a privately owned supplier of logistics and semi-industrial services to various industries and shipping firms. Cathie Associates also operates from Paris, Hamburg, London and Milan, while Natie employs more than 10,000 people around the world. What of Belgium itself? Its population may be only about 20% that of Britain but its requirements and offerings are relevant to the North East. Its widely diversified chemicals include plastic and rubber processing, pharmaceutical, biotechnology, cosmetics, soaps, detergents and paints. It’s keen to share in the UK’s creative media and ICT. State support for clusters in micro-electronics and e-security, broadband technology, and mobile applications makes Belgium a good European springboard. Belgians love food and drink; see the proliferation of restaurants and food shops in Brussels alone.

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Craft and beer, inseparable The Atomium, representing iron’s atomic structure, is a skyline symbol of Brussels

So opportunities exist in convenience foods, snacks, exotic foods, health and bio products. In healthcare and life science demand is high for products serving an ageing population and growing resort to e-health. Innovative cost-saving products to speed patient care can find a niche, and Belgium indeed wants its life science research and development involved with Britain’s. Energy sub-sectors - tidal, offshore wind and the nuclear supply chain - draw interest. And hosting headquarters of Nato, the EU and many other international organizations as it does, Belgium is receptive to advanced security and services. Keen investors in UK service industries, Belgians also want to sell their IT products into banking and insurance here. Interest is mounting also in Smart cities – enter Science Central, Newcastle, perhaps – and innovative and sustainable technologies in public buildings. The Newcastle-Brussels air link was welcomed in the North East from the outset by P&G, the world’s largest consumer products group, which considers it vital to connecting two of the group’s innovation centres at either end, and offroad vehicle builder Komatsu, which saw it bring its Birtley operation closer to its European HQ. But people I spoke to in Belgium feel it can also profit small firms, Belgium being partial to family and other small businesses. Filip Van Kerckhoven, senior trade officer at the British Embassy in Brussels, told BQ “Belgium is open and welcoming to foreign investment, open in a global sense, open through minimal

regulation, open in personal communication and open in willingness to trade with companies of any size.” Smaller businesses may find it particularly welcoming, he says, since Belgium itself has few “flagship companies” but a strong pattern of family and other small businesses. “Britain’s trading with Belgium is considered very important here, given its history back to the Middle Ages. That China has recently overtaken Benelux – Belgium, Holland and Luxembourg – to take sixth place in Britain’s league table of main trading partners doesn’t reduce Britain’s importance to Belgium.” Sander Magnin at HTL is equally encouraging. “I think the Belgian market is open to suppliers from abroad, especially when they offer a unique product and support it well. Belgian buyers judge a product offer on merit. But personal interaction is also important.” Van Kerckhoven cites two plusses for running a European export campaign from Belgium. It’s a crossroads of Europe, bordering France, Germany, Luxembourg and Netherlands, with good transport communication complementing that. Also, popularity of English there facilitates negotiation. Belgium also has a skilled and productive workforce, and a fascination for new technologies. I found the scarcity of hailable taxis strange but the underground transit system excellent. Bmi Regional, the UK’s most punctual airline over a nine year period, has made Newcastle its third

You sense Belgian respect for craftsmanship visiting the family owned Cantillon Brewery in Brussels. Over 115 years it’s been turning out its famous lambic, gueuze, faro, kriek and framboise beers on dated equipment that amazed a party of Scottish brewers visiting just before me. It’s hard to believe British beer was a passion for Belgian drinkers until the 1960s. Today Belgian beers occupy our supermarket shelves. Cantillon is one of about 180 Belgian breweries marketing more than 600 varieties, and varying in size from AB InBev, the world’s biggest brewer, to micro-operations that include six run by Trappist monks. At Cantillon Jan Dorpmans says its totally organic brewing is as easy to make as tea at early stage; they use a 19thC mash tub. Cantillon expects eventually to use more stainless steel to speed production. Each brewing produces 6,500 bottles. A big brewery might produce their year’s equivalent in two hours. They’re now doing up to 40 brews a year compared to about six in the 1970s, and aim to double that. Kriek (fruit beers) are popular – hints of cherry, raspberry and grape selling in shops for �10 a bottle – double the cost of production. One teaser beer annually is produced, released one day a year in mid-September with all the anticipation of a new Beaujolais. At �300 a bottle, all 9m bottles can sell within 15 minutes. Most hops are imported – from Poland, Bulgaria and France – and much of the beer is blended like whisky, from 700 aged casks having once held burgundy, claret or brandy. Blends take in lambic (still, cidery) and gaseous. The choice then becomes gueze (sparkling) or kriek (still). In the 19th Century, the technique of champagne making was developed by a brewer blending different lambics which, with spontaneous fermentation, gave birth to the gueuze, which now represents half this brewery’s production.

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British airport linking to Brussels, with 16 flights weekly. Though that’s 144 miles further than London, the 85minute flight is only 15 minutes longer than to Heathrow. Its 49 seat Embaer 145 aircraft, during its first year until March, operated a double daily direct service. Now it has stepped up daily weekday flights from two to three, giving Newcastle more options also to Europe, the USA and Africa. While ticket prices vary, they can cost as little as £65 one way if booked sufficiently in advance. As you’d expect of a capital, Brussels has a wide variety of hotels and tariffs thereof. I stayed at the Aloft Brussels, part of an American chain established also in London and Liverpool, and whose major asset apart from comfort is its proximity to various European institutions. Another reason to test Belgian markets presently is that sterling is now worth 15% more against the euro than two years ago. That could save EU-bound travelers around £66 a trip on value of their spending money, the travel money business Centrip says. So what prospects for the smaller firms?

But always remember: Belgium has a tense linguistic split: a Flemish speaking part (with 60% of the 10.6m population) and a French speaking (Walloon) part, so there’s no such trade convenience as “one approach fits all” in labelling. Don’t quote either Deutsche Bank’s conclusion that Flanders could be better off breaking away – especially as that report suggests likewise about Scotland within the UK. The latter conclusion, after all, arose before oil prices plunged and Russian aircraft began

probing UK territorial integrity, taunting Scotnats’ economic and defence suppositions. Things change in Belgium too. Filip Van Kerckhoven even suggests first time business hunters shouldn’t, when in Flanders and Brussels, try to speak or write in the French they may have learned at school 20 years before. “No offence meant,” he stresses. “But if you speak French somewhere that prefers not to use it you may be off to a sticky start, similarly if you try Dutch n

Skills honed at HTL in Cramlington are in demand in Belgium

A university technical college takes young people from 14 to 19 and differs in concept to any other kind of college development. Geoffrey Lean, Daily Telegraph Without some innovation, breaking into brewery and confectionery might be tough, given strengths of the home products. But amid the stepped gables and ornate towers of Brussels stand some well known and thriving retail businesses started by British businessmen taking their chance in a previous century. Sander Magnin at HTL-Benelux suggests: “Just sending a quote by email and waiting for an order will not – in most cases – establish a longterm business relationship. It’s important to visit the customer yourself or have a local dealer/ representative look after your business before and after a deal is made. It’s also important to be at trade shows and similar events.” Also: “Inviting a customer over to your premises in the UK is something well appreciated – especially by larger companies.”

Bonding points You can (masochistically?) open a conversation praising the Belgian prop forward Vincent Debaty for his magnificent Twickenham try that helped prevent England from winning this year’s rugby Six Nations. It’s ok also to mention “the Wars” as bonding points. They stress an affinity between the North East and Belgium. The North East, like Belgium, lost many good men in both World Wars and appreciates Belgium’s moving tribute paid nightly at 8pm in Ypres. That’s when buglers of Ypres’ local volunteer fire brigade, before locals and visitors, play the Last Post, heralding one minute’s silence to mark the courage and self-sacrifice soldiers of many nations, including Britain, made as they died defending the town in World War One – and whose names appear on the Menin Gate. We in turn appreciate the contribution ordinary Belgians gave to help Britain to win that war, marked only by traces of a Belgian enclave near Birtley. Here around 6,000 Belgians, including 1,200 children, lived in a pop-up village called Elisabethville. Belgium, known as the Battlefield of Europe, had been promised British protection on gaining nationhood in 1830, and it was Kaiser Wilhelm’s invasion of the country that drew Britain into World War One.

ENTREPRENEUR bqlive.co.uk

Normal business rules go out the window. Whoâ&#x20AC;&#x2122;ll shout loudest? Who can dominate? A crazy concoction of loud voices and fake tan Geoffrey Lean, Daily Telegraph

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You get better insights into the worth of TV’s entrepreneurial talent shows when you talk to someone who’s been auditioned. It was New Year’s Eve 2013. While others celebrated, Darren Williams and his partner Angey were at home together in Ryhope, Sunderland, baby Ty having arrived five months earlier. “I’ve got it,” said Angey suddenly. “Why not apply for The Apprentice?” “I gave her one of those looks,” Darren recalls. “But I applied. At 11.59, as new year’s chimes went, I pressed the Go button on my application. A few weeks later a producer rang. I’d been successful and would have to audition in Manchester. I went, head full of ideas, wisdom and curiosity. “They took us through a strenuous interview application process. You’ve seen people told ‘thanks for your time, see you later’. I kept getting moved to different stages. Finally I was in front of a camera, one of the biggest I’ve ever seen. You could probably pick up Mars looking through it. “Afterwards they said ‘thanks very much. If you’re successful we’ll contact you’. A couple of weeks later, another call. The producer said ‘congratulations, you’re through – to the final 60’. Off I went to London, down the A1 like a dog on heat. I turned up in my polished shoes. “In a daunting London studio I was stood among what felt like enemy soldiers – snipers thinking ‘I’m going to win this’. Your mindset changes from nice businessman to the cutthroat dog eat dog world of TV business. “Normal business rules go out the window. Who’ll shout loudest? Who can dominate? A crazy concoction of loud voices and fake tan. You’re set challenges that include putting a wardrobe together. “You must stand in a row of 10 people without talking, from the ugliest to the most beautiful, then negotiate. Mind boggling. Finally they just said ‘thanks for your time. If you’re successful the next phone call will tell you you’re being invited onto the show’ “That call never came. So here I am,” he

No biz like show biz He didn’t meet recent TV assessments of what makes a successful entrepreneur but Darren Williams since then has co-founded yet another venture – one giving a 75% net profit margin. Brian Nicholls tells how business fact belies TV fantasy laughs heartily. It’s a last laugh. While the other aspirants acted as stooges, Williams co-founded what looks like his sixth successful business, Redu. And one year on it has won a Durham and Wearside Newcomer of the Year award, sponsored by Virgin Money. “To some degree I’m pleased how the audition turned out. Shows like that are entertainment not business, we know, but they bring out the best and worst in people. I got off lightly.” He had a couple of start-up ideas for The Apprentice 10. “But Redu far exceeds them,” he says. It’s a collection of online and social marketing channels to help consumers save money. A few weeks after TV’s rejection he’d got a phone call from a friend, Gary Hunter, who’d grown a million pound website business called Lease Cars Direct, and sold it successfully to Vertu Motors. “Listen to this idea,” said Gary, 37, now chief executive of Redu based at Seaham. “It doesn’t involve customers or suppliers. You pass customers across but never have to deal with complaints or returns.”

Redu, then, connects consumers with retailers by promoting offers. As Williams, executive officer, explains: “We’re sent more than 500 offers a day from retailers, ranging from ladies’ shoes, once £50 now £10, to perhaps a 20% cut across a children’s range. “We hear about that before it’s public knowledge. Our team of 10 pick the best (highest discount) to put to the audience. We’re doing what would be hard work for the public with a 10-1 advantage.” The business has eight brands, three of which were acquired. Together they provide an audience of around 300,000 – “fans”, as Redu calls them. “We work with 4,500 retailers, and we’re a top 10 affiliate of M&S, John Lewis and Amazon. We’re making waves.” Holiday deals may be their next focus. Meanwhile Ashleigh Moneysaver, the main page, has 220,000 followers. The brand differences are fashion related – Redu is promoting British brands to British people. He points out: “The Chinese are starting to take over the likes of EBay – countless Chinese

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sellers vending almost directly from the factory. It’s increasingly hard for businesses elsewhere to compete. Yet, for the consumer, not only can it take two or three weeks for ordered goods to turn up, but also quality isn’t being vetted by British retailers’ quality controllers.” However, a TV producer rated Williams, Sir Peter Vardy – himself a multi-millionaire master of business – considers Williams at 33 one of the North East’s most dynamic young entrepreneurs. James Ramsbotham, chief executive of the North East Chamber of Commerce, finds him “most impressive”. Williams’ previous success, Harland Corporation Ltd, won 15 awards (one national). Its hair and beauty offers attracted over 1m unique visitors a year to its six ecommerce stores, and with 18 staff and a 7,000sq ft warehouse it turned over £1m a year with a 73% growth rate amid recession. Around 10% of its 10,000-plus

I think it’s good that kids can get exposure early on, a tease as to what business is about, and tools to work with. Geoffrey Lean, Daily Telegraph products sold monthly went to more than 37 countries – from Barbados to Afghanistan. He exited with a six figure sum. Does he get bored and want to move on? “That last business did start to lose its start-up magic. You become big and established in a market and, let’s face it, I was made an offer I couldn’t refuse. After nine years it was right to move on. It had a phenomenal run over three years in particular.” With some life security gained from the sale, he tried retirement. That lasted two weeks. “There’s only so much Jeremy Kyle you can watch on telly,” he observes. Then Gary called.

Williams admits that besides building and selling with success five previous businesses, he’s also had four failures. “You see opportunity, get a burning desire, a butterfly feeling this will be huge,” he explains. “That’s the kick-start, the big drive, the push to see it through. Sometimes I’ve done that, then realised it wasn’t necessarily working as much as I’d have loved it to. That’s when I tend to tip it and follow where the money is.” Half the battle, he maintains, is finding someone to join you on a new journey – someone different to bounce ideas off. Enter, Hunter. “Our chemistry works well,” Williams says. They also surrounded themselves with

ENTREPRENEUR bqlive.co.uk

other competents. One is Sam Morton who created 21st Century Media, another million pound business and winner of around 15 awards. Being involved in an App business already, he made a sound third director. Fourth cornerstone of management is Laura Middleton, who’d won a competition with her own business. “I remembered how passionate she was in social media with Sunderland Parents. Social media was something we also wanted to push,” Williams says. This is done through Ashleigh Moneysaver. Yes, there is an Ashleigh – Ashleigh Swan, now an employee. “She’d started the moneysaver page earlier, and we contacted her. She said she loved bargain hunting but worked full time at something else and would love to do moneysaving full time with help on the business side. We got together and the brand is a massive success.” Redu is short for ‘discount’ in French. “Our keyboards lack the little accent on the ‘e’,” Williams explains. “In branding I like names that don’t mean anything. It doesn’t help if your ‘North East Something or Other’ plumbing business suddenly becomes nationwide, or something like that. Sage plc got its name from a picture of that herb on the wall.”Said now to generate high street retailers more than £2m a month, Redu is targeting £10m turnover by year three or four. The enterprise has attracted £100,000 of venture capital and attracted to the board two notable executives of other North East businesses. It has been ranked in the top 50 Apps worldwide in the Apple and Google Play App stores. Hunter says: “We didn’t expect to grow so fast so soon. In a year we’ve reached where we thought we’d be at after three years.” The present six figure turnover is doubling percentage growth in turnover monthly. “What I’m keen to shout about is the 75% net profit margin,” Williams says. There are nine employees with more to follow, including apprentices. Hunter gives credit in all this to East Durham Business Service (EDBS), which helped the company choose its offices at Novus II on Spectrum Business Park, and charged half-rent for some months, enabling money to be reinvested. Denise Fielding, operations director at EDBS, suggests Redu’s growth underlines how Spectrum can enable new and growing businesses to realise ambition. n

Enterprise begins in primary school Williams the entrepreneur first appeared at primary school. He and a playmate decided to sketch and publish a comic book. Unfortunately, the photocopier they needed was at the other end of school, where they weren’t allowed. “Later I wheeled and dealed in bubble gum at comprehensive school,” he recollects. “I had big bags that I sold from smaller bags at a pound a time. Great – till I found bubble gum was banned in school. I was marched before the headmaster. That business went pop too.” His dad, a self-employed painter and decorator, didn’t want him entering that occupation but instead to “make something” of himself. “Mam was great at pushing me to do well too,” he reflects. Born 50% deaf, he felt that gave him extra drive and determination at Washington School. In 1998 when the internet and computers were coming in expensively, his mother saved all year and bought him one for Christmas. He was hooked. “I decided I’d create an internet service to help fix people’s problems. But there wasn’t the support young entrants to business can get these days – being mentored and signposted at 16. It’s good now that kids can get exposure early to what business is about, and tools to work with. They could have loads of ideas. So it’s good to see initiatives from the likes of Gateshead College, which is trying to become known as an entrepreneurial academy. More like that’s needed, especially in comprehensive schools.” His own early expertise got him his first job in a local IT shop, where further experience kickstarted his maiden business, a music website that had been his hobby. “The boss sat me down and showed me a search engine. I said ‘what do you do?’ He said ‘you search for stuff. I said ‘what sort of stuff?’ He said anything but rude photos.” Williams searched in vain for a DJ’s name. That prompted him to create the website, put music and photos on and provide a site where enthusiasts could chat about music and share experiences. The site had 26,000 members when it was sold and has 35,000 now. “Had it not been such a music niche, it could have been a Facebook ahead of its time,” Williams says. “It got banned from schools because pupils couldn’t keep their eyes off it.” A series of internet enterprises followed, including a dating website, an under-18 dance event that ran for more than five years involving eight North East venues, followed by the hair extensions business. He finds incentive by reading books about great achievers of business. He particularly admires Gerald Ronson the tycoon who left school at 15, later introduced the self-service petrol system to Britain from the USA, then earned a second fortune in property. Locally, Williams’ hero is Sir Tom Cowie, who built a modest motorcycle showroom into a major motor retailing empire now absorbed into Arriva’s transport network. As business strategy, he admires World War II’s D Day triumph, Operation Neptune, whereby the Allies fooled their enemy into expecting a military strike over a wide area of French coastline, then broke through instead at one focussed point. So what next, Darren Williams? “I love Las Vegas. It’s the monetary Nirvana. I’d like eventually to move there – year round sunshine, favourable tax, and grown-ups’ biggest play area in the world. The end goal of Redu is to exit. The fastest way to become a millionaire is to sell a really big business. We’d sell right now. We’d want £10m plus though.”

“Mam was great at pushing me to do well too,” he reflects. Born 50% deaf, he felt that gave him extra drive and determination at Washington School. In 1998 when the internet and computers were coming in expensively, his mother saved all year and bought him one for Christmas. He was hooked. Geoffrey Lean, Daily Telegraph

IN ANOTHER LIFE bqlive.co.uk

I love ﬂying, me

They’ve got it covered: Mick Copeland and fellow aircraft enthusiasts lovingly fit carpets into a Hawker Siddeley HS 121 Trident as part of its preservation at the North East Air Museum in Sunderland

When the first Frank’s store opened at Stockton in 1996 a memorable sales slogan was born: ‘I love carpets, me!’ There are now 30 Frank’s stores across the North East, and when BQ asked business development manager Mick Copeland what he’d like to have been in another life his impulsive response was: ‘Nothing else, I love carpets, me.’ But then another thought struck him… If I wasn’t in the flooring industry, I’d like to have been a pilot in the Royal Air Force. I wouldn’t necessarily have had to have been a fighter pilot, any sort of pilot in the service would have been wonderful. I was born into a Forces family. My sister was in the RAF for 30 years, and other family members have had wonderful careers with the service. When I was younger, I visited all of the different camps where my sister was based. She ran the officers’ messes, and the atmosphere and sights were hugely inspiring. Unfortunately, they weren’t inspiring enough for me to achieve the grades I’d have needed to pursue the career I had dreamed of, being a pilot. I spent some time at RAF Scampton, the base

from which the Dambusters set off on their historic mission. It’s now home to the Red Arrows. I also visited RAF Laarbruch in Germany, where my sister was married in the late 1970s. Many of these places are steeped in history and fantastic to spend time around. Living in Seaburn, I still love the Sunderland Air Show, which is right on my doorstep. Seeing the skill of the pilots who perform for the thousands who turn up along the seafront is still very exciting. It was particularly exciting for me, a couple of years back, to be able to link up Frank’s The Flooring Store with the North East Air Museum in Sunderland, and to donate carpets to fit out the Hawker Siddeley HS 121 Trident as part of its preservation. The carpet was almost an exact replica of that used throughout original standard

models of the plane. Now, though, working for one of the best known names in the flooring industry, I find my feet firmly on the ground. I love what I do, even if I still give an envious look up to the skies from time to time. n

Living in Seaburn, I still love the Sunderland Air Show, which is right on my doorstep. Seeing the skill of the pilots who perform for the thousands who turn up along the seafront is still very exciting.Geoffrey Lean, Daily Telegraph

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PRINCE’S TRUST

Inspiring young lives Emma wins twice over

‘I’m proud – speechless! Before I did the Enterprise programme, I could barely leave the house’ Geoffrey Lean, Daily Telegraph

Following her regional win at The Prince’s Trust North East Celebrate Success Awards, inspirational Emma Reilly has gained a second plaudit. She has won the national Mappin & Webb Young Ambassador of the Year Award, which recognises exceptional Young clothing line Brave and the Bold was born. In Ambassadors for The Prince’s Trust. Emma, 33, March she launched a crowdfunding campaign from Newcastle, developed a phobia after being on Kickstarter to help fund production of a new bullied at school. She suffered up to 15 panic range of sunglasses, each pair inspired by sights attacks a day. Now, however, she has turned her and culture of the North East coast. life around, her latest triumph being a winner at Following her regional win at The Prince’s The Prince’s Trust & Samsung Celebrate Success Trust North East Celebrate Success Awards, awards, and presented with her honour by The inspirational Emma Reilly has gained a Prince of Wales himself. second plaudit. She has won the national Says Emma: “I’m proud – speechless! Mappin & Webb Young Ambassador Before I did the Enterprise of the Year Award, which programme, I could barely recognises exceptional Young leave the house. Now, Ambassadors for The Prince’s thanks to the Trust, I have Trust. Emma, 33, from my own business and feel Newcastle, developed a braver than ever before.” phobia after being bullied Sun, 13 Sep 2015 Emma suffered for 12 at school. She suffered up Palace to Palace years. She applied for to 15 panic attacks a day. charity cycle ride 2015 the Trust’s Enterprise Now, however, she has For more information visit programme – which helps turned her life around, her www.princes-trust.org.uk unemployed young people latest triumph being a winner start up in business – and her at The Prince’s Trust.

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Addressing skills Emma recently took part in a panel debate at a Prince’s Trust North East Leadership Group event, attended by business representatives and entrepreneurs from across the region. The joint event with CBI North East was chaired by Professor Roy Sandbach with guest speakers Neil Carberry (CBI), Andrew Hodgson (SMD) and Alison Shaw (Seaton Burn College). Businesses were urged to address the skills gap between education and work, and help raise young people’s aspirations, allowing them access to vocational training. Emma recently took part in a panel debate at a Prince’s Trust North East Leadership Group event, attended by business representatives and entrepreneurs from across the region.

£40,000 support Over 300 guests attending The Prince’s Trust business dinner at the Hilton Hotel, Gateshead, have enabled business leaders to raise more than £40,000 to help the region’s young unemployed, more than one in five of whom struggle to find work. Guest speakers included Alastair Campbell and Prince’s Trust Young Ambassador Tess Lydon, who with Trust help is building a dance career. She told her audience: “I’ve built team work skills, I feel independent and my future’s much brighter because people in The Prince’s Trust have shown me I can be somebody.” The dinner committee comprised Dr Joanna Berry (Newcastle University Business School), Bill MacLeod (PwC) and John Marshall (Bond Dickinson). Dr Berry says: “Alastair Campbell was touching and funny, Tess Lydon’s story inspirational – and a great example of the importance of The Prince’s Trust.”.

To donate to The Prince’s Trust or for further information vsist www.princes-trust.org.uk, or call us on 0845 177 0099

IP 10 0

THE UK’S INTELLECTUAL PROPERTY LEAGUE

THE IP100 - RECOGNISING THE VALUE OF IP IN YOUR BUSINESS BQ Magazine is delighted to announce the launch of the IP100, the UK’s Intellectual Property League Table compiled in association with Metis Partners, an award-winning boutique IP solutions firm. The IP100 will profile and rank innovative firms within the UK’s private sector by intellectual property (‘IP’) value, identifying those businesses which have significantly invested in their IP in the form of IP management policies, R&D activities and IP commercialisation. Despite IP assets underpinning the competitive advantage of most businesses, IP remains one of the least recognised assets within a business as it is rarely captured on a company’s balance sheet. Yet IP assets are growing in importance. In 2011 the UK market sector invested £126.8bn in knowledge assets, compared to £88bn in tangible assets. Since the recession of 2008-09, intangible investment has not only recovered but grown.1 So whether using IP to boost the exit valuation of a business, improve access to new markets, protect existing market share or creating new barriers to entry, IP now plays a central role in traditional business activities. IP also has the ability to play an important role in transforming funding options available to businesses, as IP assets can be used to raise finance, realise value on the balance sheet or restructure debt. Furthermore, finance providers are increasingly recognising the opportunity to take security over these valuable assets

under different corporate structures. The IP100 will be an annual ranking of companies by IP value based on a rating of the IP asset strength of the business and the company’s track record in exploiting their IP. The process involves obtaining IP-specific data linked to main IP asset classes including brands, software, patents, trade secrets and critical databases. An IP scorecard will then be applied to calculate an IP score for each business and the IP100 team will rank the Company based on the results of the scoring. The IP100 is open to all UK companies to enter and details about the process as well as the information required can be found at www.bqlive.co.uk/IP100. The League Table will provide an insight into the potential value of IP in the companies which have entered the IP100, and will publish in the spring 2016 edition of BQ Magazine as part of a special IP report. The IP100 is jointly managed by Metis Partners, an award-winning, boutique IP solutions firm operating from the UK and USA and BQ Magazine.

1 Source “Estimating UK investment in intangible assets and Intellectual Property Rights – IPO 2014

ENTER THE IP100 NOW

The IP100 is open to all UK companies to enter and details about the process as well as the information required can be found at www.bqlive.co.uk/IP100

MEDIA BRIEFS

Examining the news behind the headlines

Here is the news – and it’s good Circulation up. Advertising up. Who says decline of printed newspapers is irreversible – especially when a revivalist showing such enviable vigour is one of the nation’s oldest publications, the Teesdale Mercury serving its community since 1854. Three months into a transformation, it can report that its readership in a fairly conservative area of the North East of England is at saturation, and its advertising income is up. Many editors elsewhere know from challenging experience how radical change to a format often brings an immediate – albeit often temporary – dip in sales until readers get used to a new appearance. But the dear old Mercury has found throughout that converting from broadsheet to compact size, coupled with an introduction of full colour and even more news content than before, a sound business approach. The launch within of a fortnightly property guide has delighted estate agents too. Editor Trevor Brookes tells us: “I’ve heard a grumble or two but nothing loud enough to hit sales, and with the season approaching of local shows, school sports and other cherished community occasions, the colour will add impact to our editorial coverage.” For Barnard Castle the Teesdale Mercury is no miniscule business. A 40 strong staff produce the paper, run newsagents and a commercial print business. And despite the obvious affection for newsprint, digital technology is not ignored. The paper, which already has regular readers as far away as Australia and South America, is now available to subscribers online, and one of its other recent projects (cost £50,000) has been to release online more than a million news items from 100 years of its history. It has done this through its three-year-old database of news and advertising information, which you can enjoy free on an archive website, thanks to the Heritage Lottery Fund and the Foyle Foundation. All this would surely roll the eyeballs of the two founding brothers whose first edition –

‘I’m proud – speechless! Before I did the Enterprise programme, I could barely leave the house’ Geoffrey Lean, Daily Telegraph four pages, 1,000 copies – largely comprised advertising, but did report a highway robbery between Deepdale and Lartington, and a manslaughter at Evenwood that followed a fight over manure. Interesting, isn’t it, that while Press barons in the literal sense have been widely exorcised from the industry, one here, Lord Barnard, retains ownership of this newspaper, for which his daughter Carolyn Vane operates the business side? Interesting too, isn’t it, that unlike some other newspapers this one can meet modern economic challenges of the industry giving its readers n

Biz Quiz 1. The North East Chamber of Commerce is celebrating a very special event this year. What is it? 2. Only one port in Britain holds the Investors in People gold accreditation. Which one is it? 3. Which company featured in the biggest pharmaceutical and biotechnology sector flotation on the Alternative Investment Market last year? 4. When did Teesdale’s Cow Green reservoir open to supply water to industry and homes on Teesside? 5. A new order has been announced for the Hitachi rail fabrication plant at Newton Aycliffe soon to be opened. Which rail franchise placed the order?

ScotRail. ANSWERS: 1 Bicentenary. 2 Port of Tyne. 3 Quantum Pharma of Burnopfield, County Durham. 4 1970. 5

PROFILE Advertorial

Intelligent IT solutions: more than meets the eye Andrew Robson is CEO of Perfect Image – an IT consultancy serving clients across the North East and beyond. Here, he discusses why there’s more than meets the eye when it comes to intelligent IT solutions. Say the word ‘IT’ and what do you think of? Computers, connectivity, maybe even cloud? While all suggestions are relevant, they are by no means exhaustive of the IT services and solutions available to businesses today. Many people think that IT is just about applications and the systems that they run on. Of course, this is a massive part and is something we expertly offer our customers, but it isn’t all that we do. At Perfect Image our business is focussed on three disciplines; Managed Services, Business Solutions and Business Intelligence. While each department may have differing skill-sets, there is a core that unites our software and infrastructure services and it’s simply the desire to listen to our clients and give them what they need to move their business forward. They ask us to design, implement and support innovative solutions and to fix, improve and support their business systems, so that’s what we do. Our Managed Services division is all about endto-end management, visibility and control of a customer’s IT service, focusing on the underlying network infrastructure ensuring that software and converged applications are given maximum priority, are securely provided and are delivered and supported through best practice and professional capability. In addition, it’s about proactive improvements; providing planning and advice to make a customer’s IT service better over time. It’s not just about keeping systems running, it’s about making them better and ensuring that the solutions are aligned to the customer’s business so that they get even more from their IT. The experts in our Managed Services division know there isn’t a one size fits all approach that will benefit each and every customer. Crucially, we tailor each of our managed services solutions so that your

IT meets your individual needs in a way that provides the very best possible value. So while our Managed Services team provides intelligent IT solutions through what you might once have considered to be traditional concepts of IT – applications, systems and hardware – what about the other solutions and services available to businesses? Our Business Solutions division centres round software and its development to help meet a business need. The experienced team of developers work together with project managers and business consultants to provide an end-to-end software development service or specific development lifecycle services. We have a proven track record in developing entirely bespoke systems, implementing tailored versions of packaged systems, as well as integrating and improving our clients’ existing IT. We pride ourselves on the consultative process; in

Andrew Robson, CEO of Perfect Image.

essence, we can help you to identify your software needs, prescribe and then build the solution that is right for your business. We also have practices delivering business critical accounting, CRM and SharePoint solutions. With software and system solutions covered, did you ever think about IT as being a force to help inform your business decisions too? This is where Business Intelligence – or BI – comes in. In order to maximise advantage over your business rivals, you need to make better and timelier decisions. To make these decisions you need the right information readily available to analyse, understand and then take action on – this is BI. Examples of business decisions informed by BI could include dropping or increasing prices due to demand, introducing a new product or service to satisfy an unmet need, understanding which audience to market your business to or any number of other pro-active decisions that have a real impact on the success of your organisation. So when I ask you to say the word ‘IT’, what do you think of now? If you think along the same lines as us, your head will be swimming with a whole host of different options and potential. The possibilities are endless - to find the right one for you and your business, why not get in touch?

To find out more about Perfect Image and its intelligent IT solutions, visit: http://www.perfect-image.co.uk

BIT OF A CHAT

Frank Tock’s examining the news behind the headlines Andrew’s one for letting off steam When software specialist Andrew Frank says he’s still a passionate engineer it’s no exaggeration. Our photographer suggests he should be acclaimed as the Fred Dibner of Stokesley. “I’m still into old cars, motor bikes and traction engines,” Andrew confessed during his interview that appears in this issue. “I’ve a workshop and I’ve grown up with engineering. Three of us, all brothers, were into traction engines because of my dad. “He rescued the last working locomotive which had laboured all its working life in a Belfast shipyard – a 6hp Garrett road locomotive. It nearly killed my dad. “He spent 5,000 hours restoring it and in 1972 it attended Masham Steam Rally. All that work gave him a heart attack. So then we got a

‘I’ve a workshop and I’ve grown up with engineering’ Geoffrey Lean, Daily Telegraph 4hp Garrett. My dad died just after he retired, unfortunately. When we brothers went to university we ended up in different parts of the country and had to sell up.” But Andrew’s son David, 15, has the engineering bug now. He helps at Prestons of Potto, Northallerton, the outstanding logistics firm, which has a big collection of traction engines and fairground organs. All the Frank brothers have traction engines once more, and though Andrew’s is small and fits in the back of a car he and David drive it at traction rallies. “On a showground it’s great because it’s flat,” he enthuses. “So we always have a good run round then.” What about David though? He’s building from scratch a replica 1920 cycle car capable of doing 40mph, and he’s using Dad’s lathe and milling machine. Dad has also taught him how to weld. “Now he has welded all the chassis up, put a Honda GX 160 engine in. It has variable speed drive and presently he’s making an aluminium body for it.” And here’s where the software at last comes in. “He’s using CAD and developing the vehicle building skill for his Duke of Edinburgh award.”

What’s in a name? One of the early pleasures of visiting Science Central – Newcastle’s high-tech district, shall we call it? – is to visit the recently opened Earl of Pitt Street gastropub in premises where quaffing has been the main occupation going back, probably, as far as the 1880s. There had been a four year low point there following the closure of an earlier establishment which, according to a court hearing, had been doubling unofficially and illegally as a money-laundering haunt. Today Mark Lagun, an award winning restaurateur whose 30 years and more experience of running good eating places includes his Barn Again restaurants and the Asian-style venue Electric East, is finding that the Earl of Pitt Street, as the Science Central establishment is now called, is pulling in a character-packed mix of regulars including suits and students, and locals too. You have to book early for a table and you wouldn’t think all Pitt Street, where the pub stands, was semi-derelict two years ago. Now striking new architecture is springing up all around. So how did the Earl of Pitt Street get its name? Mark himself is mystified. “Initially it was going to be The Pearl on Pitt Street because Oyster Shell Lane runs nearby. Somehow – I can’t remember how – we wound up with the Earl of Pitt Street.” Well, nothing like lording it over the competition…

You may spot them testing it on Stokesley Business Park on a Sunday. “That sort of thing enthuses kids,” Andrew suggests. “That’s why we need to get them involved in business in one form or another, whether engineering or software or support. Get them to understand that money doesn’t grow on trees. Business is really hard but everyone working together makes it a success. I mean, I’m only as good as our guys answering the phone and working on the software and supporting the customer.” Daughter Helen, 17, has so far averted the bug, however. She’s swotting for A levels and wants to be a doctor. What about David though? He’s building from scratch a replica 1920 cycle car capable of doing 40mph, and he’s using Dad’s lathe and milling machine. Dad has also taught him how to weld. “Now he has welded all the chassis up, put a Honda GX 160 engine in. It has variable speed drive and presently he’s making an aluminium body for it.”

Keep it fresh As you may also have read in this issue, the young North East entrepreneur Darren Williams didn’t quite make the cut to appear on TV’s The Apprentice, series 10. But he did have a couple of start-up ideas he would have pitched for. “One idea was that everywhere you go in shops people are wearing expensive perfume or aftershave,” he says. “Yet they fill their cars

with an air freshener of vanilla. Why not launch a business that sells a brand of air fresheners featuring aftershaves and perfumes?” Why not indeed? Darren still has a second idea he hasn’t told us about! As you may also have read in this issue, the young North East entrepreneur Darren Williams didn’t quite make the cut to appear on TV’s The Apprentice, series 10. But he did have a couple of start-up ideas he would have pitched for. “One idea was that everywhere you go in shops people are wearing expensive perfume or aftershave,” he says.

Touching down Business consultants and tourism officials do sing from the same hymn sheet before World Cup rugby games, it seems. Whereas BQ yearbook quotes NewcastleGateshead Initiative as projecting a £43m economic impact on the North East economy and business advisors EY a figure of £93m, the difference is not as odd as it seems. NGI’s £43m refers to benefits from attracting visitors and hosting the matches at the destination, fitting its role and remit as destination marketing agency. EY’s £93m figure includes wider economic benefits. I’m happy to clarify.

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EVENTS

BQ’s business diary helps you forward plan

M AY

JUNE

Evening with Tony Platten, businessman, philanthropist, football club chairman, T&W & N’land Community Foundation event, Blackgate, Newcastle 6pm

Mark Fletcher-Brown on Why Good PR May Be Bad for You, Little Heresies in Public Policy lecture, Newcastle University Business School. 5.30pm

Entrepreneurs’ Forum annual conference, The Sage, Gateshead

Constructing Science Central, ICE presentation, Castlegate, Newcastle. 9am

CBI NE, Energy Efficiency, Controlling What’s in Our Power, Newcastle University Business School (8am) and Teesside University (noon). clara.stenning@cbi.org.uk

14 ICAEW 65th annual Teesside Dinner, Thistle Hotel, Middlesbrough (7.30pm)

The Future of Aviation, Connecting Britain Faster, Doubletree by Hilton, Newcastle (8am)

Business Opportunity in European Satellite Navigation Competition, and Copernicus Masters Discovery Workshop, Business Durham with Catapult and North East Satellite Applications Centre of Excellence, Discovery Workshop North East, Gateshead. 8am

What’s Happening in Nuclear, NOF Energy checkout, Rockliffe Hall Hotel, Darlington

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 and please put ‘BQ events page’ in the subject heading Please check with contacts beforehand that arrangements have not changed. Events organisers are also asked to notify us at the above email address of any changes or cancellations as soon as they are known. KEY: Acas: Advisory Conciliation and Arbitration Service, CIM: Chartered Institute of Marketing, CECA (NE): Civil Engineering Contractors Association (North-East), HMRC: Her Majesty’s Revenue and Customs, ICAEW: Institute of Chartered Accountants in England and Wales, ICE: Institution of Civil Engineers, IoD: Institute of Directors, NEA2F: North East Access to Finance, NECC: North-East Chamber of Commerce, NSCA: Northern Society of Chartered Accountants, FSB: Federation of Small Business, Tba: to be arranged, Tbc: to be confirmed, Tbf: to be finalised.

The diary is updated daily online at bqlive.co.uk

FIVE

Ways to performance improvement

Raising quality and lowering costs

Acquiring and retaining customers

Providing timely and accurate information

Improving teamwork and communication

Reducing risk and increasing security

THREE Core services

Transformation Leading transformation in your business through innovative technical consulting

Bespoke Working with you to solve seemingly impossible problems by creating and adapting software

Technology Generating return on technology investments and transforming IT into a strategic business partner

ONE Trusted partner

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