BQ North East Summer 2015 by We Are UMi

BUSINESS QUARTER

North East: Summer 2015

Celebrating and inspiring entrepreneurship

University Challenge Professor Paul Croney on his new role heading Teesside University

Market Maker

Lorna Jackson brings towns to life with farmers’ produce

Head in the clouds BQ speaks to Phil Cambers of SITS Group

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Keith Gill hatches another business

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E N T R EP R E N E UR I N T E R V I E W S

B USIN ESS U P DAT E

Business Quarter Magazine

North East: Summer 2015

Chicken and egg situation IN SIGHT

LIFES T YLE

E VE NT S

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EDITOR’S VIEW NORTH EAST ISSUE 30 Some firms will be winners, some losers following the Chancellor’s summer budget, a compulsive game of chance we’ve come to expect by now. Will the new national living wage burn a hole in your payroll? Will the road tax shake-up raise your transport costs? And what about the tax raid under changes to the dividend taxation system? The only certainty is that the companies which do stand to lose out will already be exercising their ingenuity to minimise any damage. It’s the captain’s duty after all to steer the ship through any hazards, however unexpected. Lawyer Robert Langley can vouch for that, as you’ll gather from his admission in this BQ that away from the desk it’s a sailor’s life for him. As for the conditions out there, it’s an ill wind that blows no accountant any good. We’ve a host of other interesting characters for you to enjoy in this issue too. There’s Phil Cambers and his fellow directors who have blazed their way into Cloud computing via a stag party. There’s the ebullient entrepreneur Keith Gill into his third exciting venture at 63. There’s Lorna Jackson, the foodies’ toast of Stockton and Saltburn, and Simon Roberson outlining BT’s role in improving North East communication. Paul Croney the new vice-chancellor and chief executive of Teesside University, and Ollie Vaulkhard of Vaulkhard Group are both optimistic. Jeff Alexander, newly elected president of the Northern Counties Builders’ Federation, gives an overview of a still volatile sector. We also have a talking point for your consideration on Newcastle Airport’s 80th anniversary. Oh, and do you notice something different, more appealing, about this 30th issue of BQ serving the North East? Yes, it’s had a makeover. We felt, as we celebrate with readers the eighth birthday of this lively and distinctly different business publication, that it would be a good time to freshen its appearance and brighten it further for you. Our designers Sarah MacNeil and Sophie Murphy, after a brainstorm, have introduced a style and look not only more contemporary but also easier to read. So you may notice a slight change in typography, more varied use of images and more white space to make reading gentler on the eye. The redesign also reflects BQ’s recognition as a national brand promoting entrepreneurship, innovation and inspiration across a range of media – in print, online and through events. BQ itself, born and growing in the North East and proud of it, goes from strength to strength with separate print editions now for Yorkshire, Scotland and also the West Midlands - and ambitious plans for other areas too. Meanwhile, we hope the changes appeal. Email b.g.nicholls@btinternet.com and tell us what you think. Brian Nicholls Editor, BQ

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CONTENTS 36

HEAD IN THE CLOUDS

Phil Cambers of SITS Group

Summer 15

MOTORS On and off road with Volvo

UNIVERSIT Y CHALLENGE Professor Paul Croney talks about his new role at Teesside

H I G H F LY E R A tribute to Newcastle Airportâ&#x20AC;&#x2122;s James Denyer

MARKET MAKER How Lorna Jackson revives towns with good food

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Celebrating and inspir ing entrepreneurship

F E A RT UERGEUS L A R S

REGULARS 10 12 22

ON THE RECORD Showcasing the region’s best and brightest new ideas BUSINESS UPDATE Who’s doing what, when, where and why here in the North East AS I SEE IT Bringing superfast broadband to homes and businesses

HATCHING A NEW BUSINESS Spotlight on Keith Gill’s new venture

UNIVERSIT Y CHALLENGE Professor Paul Croney talks about his new role at Teesside

HEAD IN THE CLOUDS Phil Cambers of SITS Group

MARKET MAKER How Lorna Jackson revives towns with good food

COMMERCIAL PROPERT Y A look at the latest deals

BUSINESS LUNCH Breaking bread with Jeff Alexander

MOTORS On and off road with Volvo

H I G H F LY E R A tribute to Newcastle Airport’s James Denyer

FASHION Celebrating dadstyle

IN ANOTHER LIFE Robert Langley on sailing

88 90

SPECIAL FEATURES BRIDGING THE SKILLS GAP 8 page special report

BIT OF CHAT With BQ’s backroom boy Frank Tock

UK TI RUGBY WORLD CUP Winning sales from the Rugby World Cup

EVENTS Key North East Business events for your diary

59 62 BUSINESS LUNCH Breaking bread with Jeff Alexander

WINE Memories are made of this

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Best secrets unfolding

A hunt is on to uncover and expose stories of North East innovation success that may presently be languishing unprofitably as a best kept secret Venturefest North East, the region’s annual innovation conference, will shortly celebrate the region’s skills in driving ideas forward and embracing new ways of working with an Innovation Showcase at this year’s event. Organisers, along with partner the Innovation Programme (run by the North East Business and Innovation Centre) want companies regardless of size or stage of development to come forward and bid to share the stage by explaining what impact innovation has had on their operations. Successful companies will enjoy an opportunity to promote their innovative products, services or methods of working free of charge to more than 600 delegates from business and investment at Venturefest North East, being held at the Hilton Hotel, Gateshead, on October 13. Hans Moller, innovation director of the North East LEP, says: “This is an invaluable chance for North East businesses to present their latest developments before an audience of likeminded businesspeople and potential investors. “Innovation is crucial to the region’s continued economic development, and the North East LEP is focused on creating the right support environment to encourage new ideas and new ways of working, ultimately leading to more and better jobs for the region.” Last year’s Innovation Showcase saw companies from across the region exhibit innovations ranging from remote beehive monitors and a rear vision cycling helmet to CO2 absorbing cements and an energy-conserving fuel monitor for the marine industry. Elizabeth Shaw, innovation manager at the North East Business and Innovation Centre, says: “The BIC has spent a lot of time working and understanding the innovative landscape in the region. We believe that innovation is the region’s best kept secret. “We can say that, having seen great results from our SME Innovation Programme, from which more than 130 new jobs could result. We are delighted to support the Innovation Showcase at

Successful five times over It’s a year of fivefold achievement and promise in the North East for automotive manufacturer Nifco. It’s 25 years since the Japanese giant bought out Elta Plastics and transformed the former shoe-heel business into an automotives operation of £50m turnover, employing more than 500 people at Eaglescliffe, near Stockton. The firm has further committed to building a third factory in four years in the area, this time in Darlington, to create 300 more jobs and boost turnover by a third over three years. At the same time, North East former Business Executive of the Year Mike Matthews (above), Nifco’s European operations officer and managing director of Nifco at Eaglescliffe, has now been made president of the North East Chamber of Commerce.

Venturefest North East, celebrating the many successes of innovative businesses in the region.” Venturefest North East is a key element of the North East LEP’s innovation programme. It is also part of a national network of innovation conferences supported by innovation agency Innovate UK and the Knowledge Transfer Network. To apply to take part in Innovation Showcase visit www.venturefestnortheast.com/showcase Registration for Venturefest North East is now open at www.venturefestnortheast.com. The event programme is currently in development and full details of guest speakers and workshops will be released later in the year.

Women into broadband Women entrepreneurs in County Durham are to be helped to benefit from broadband. Around £75,000 has been awarded to the county council for women already in business, or considering starting a business, perhaps wishing to improve digital skills before returning to work. The award follows a successful bid the council made to the Government Equalities Office which is working in partnership with Broadband Delivery UK. The project starts in September with workshops, speakers, coaching sessions and networking.

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JOBS BAROMETER

NEWS MAKERS

Unemployment in the North East is down 1% to 7.8% but that compares with a national average of 5.6%. Actual numbers unemployed regionally in the 16 to 64 age group now stand at 96,000 – down 2,000. The comparable national figure of unemployed was actually 15,000 up, according to official figures covering the quarter to May. Major job gains to be arising or imminent in the North East include:

ARISING

1040

jobs envisaged long term at Wilton and Whitby as Sirius Minerals plans a £1.5bn fertiliser mine on North Yorkshire Moors and a cargoloading facility at Bran Sands on the Tees – subject to planning approvals.

350 jobs expected to be created over the next three years at Blyth based Phoenix Taxis as a £1m investment in new technology takes effect.

300

more jobs at Sunderland as Nissan prepares to start production of the Infiniti Q30, the first new car brand to be pioneered on such

a scale in 23 years.

220 jobs at Sunderland, effectively consolation for the North East of England narrowly missing out on a creation of 750 posts at Dunfermline in 2011 - this because it couldn’t, through the British government, match investment incentives that Scottish Enterprise held out to Amazon. Washington in Sunderland is now home to the online giant supplier’s 13th UK delivery centre. 130 paid jobs at Auckland Castle following its £9m award from the Heritage Lottery Fund (HLF) towards the castle’s development as a museum, including restoration and a two storey extension.

120

jobs in a Vantec Europe expansion at Sunderland, additional to 1,000 staff employed at two sites the Japanese firm already has near

the Nissan plant.

94 more jobs at On A Roll Sandwich Company, as it invests £3.6m in a new factory at Middlesbrough. 89 more jobs in South Shields as business cost consultants Great Annual Savings progresses with a £400,000 grant from the regional Let’s Grow Fund. 75 banking apprenticeships across the North East by Barclays. 70 jobs as Ramside Hall Hotel, near Durham, expands its facilities with an £18m investment.

jobs as Teesside chemicals firm Huntsman grows its customer service centre at Wynyard.

60 more jobs on top of 100 permanent and contract placements filled already in readiness for the launch of Atom Bank at Durham.

60 more jobs by bathroom and kitchen retailer Tecaz on relocating to the former Sunderland headquarters building of Northeast Press

Jamie Tones, 23 (above), nationally recognised for skills as a waiter at Café 21 in Newcastle, gaining Annual Award of Excellence from the Royal Academy of Culinary Arts. Ammar Mirza, chairman and founder of Asian Business Connexions (Tyneside), new David Goldman Visiting Professor of Innovation and Enterprise at Newcastle University.

Lesley Moody, managing director of AES Digital Solutions at Billingham - MBE for services to business education and international trade.

Joy Sullivan, export adviser with the North East Chamber of Commerce BEM for services to international trade.

Margaret Lowbridge, who chairs SFEDI Group (government recognised Newton Aycliffe based standards setting body) - MBE for services to entrepreneurs and business.

Keith Johnson, chairman, JW Wood surveyors and estate agents MBE for services to community and charity in Durham. Sir Peter Vardy and Lady Margaret the Beacon Award of Philanthropy.

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BUSINESS UPDATE Cheaper computers The Cramlington based computer refurbisher RefurbThat (above) has received £550,000 worth of investment backing - £400,000 from private equity firm Hamilton Capital and existing investors, and £150,000 from the Finance for Business North East Angel Fund, managed by Rivers Capital Partners. RefurbThat is one of only a few authorised Microsoft refurbishers in the UK. It takes in used computers from Europe, the UK, and the United States and restores them. Customers then get an out of the box computer at up to 75% cheaper than an equivalent new model. A turnover goal of £7m over the next three years has been set, with the present staff of eight likely to rise to 20 by the end of next year. Lawyers Ward Hadaway, who have previously advised Rivers Capital Partners on more than 35 investments from the Finance for Business North East Angel Fund, also advised.

Atomic energy

Atom Bank’s founder and chairman Anthony Thomson

mainly from the North of England, and having Atom Bank, its licence granted by the Bank raised an initial £25m, it is now concentrating of England, plans to launch products and on raising the balance sheet capital necessary to services before year end. The Durham based launch. With the support of existing investors, challenger bank, by the time it received this vital including cornerstone investor Neil Woodford, authorisation, had already taken on 100 the management are approaching new permanent and contract staff and institutional and strategic partners. declared an intention to employ Using North East expertise in at least 60 more personnel. software development, Atom’s It already has a network of app aims to bring pioneering 110 partners and suppliers technology to Europe. from across the North East, Biometric security and inUK and globally. Promising app account opening will a new customer experience, eliminate need for branches, www.hfsresearch.com Atom is developing a range paperwork and stress, the …into outsourcing of personal and business bank says. Customers will banking products and services also have access to the UK and that will be delivered using mobile international ATM network, and be apps, with a desktop version to follow. able to pay in cash and cheques. Edward Atom Bank’s founder and chairman Anthony Twiddy, chief operating and innovation officer, Thomson (above) says: “We now have the says: “Our customer service team will give mandate that only comes with a banking customers support and technical expertise all day, licence – to change banking permanently for every day by phone, chat and email, and through the better.” The digitally focused bank already social media.” Pre-registration for customers is enjoys the support of many private individuals, available at www.atombank.co.uk.

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Workers gain from shares payout Many of the 1,200 employees of Esh Group are benefiting from the construction and engineering group’s 2014 performance which shows turnover of £277m (up 43%), pre-tax profit of £9.5m (against a previous £3.2m). Under a reorganisation of the share scheme, to benefit management and employees, and incentivise further growth, £6m has recently been paid to some shareholders. Group chief executive Brian Manning says: “Our dedicated employees have been our hard-working foundations. With their continued support, we remain confident of further success.” Acquisition of Border Construction (now Esh Border Construction) gives Esh Group access to markets in Cumbria and Scotland, and contributed some £20m to the jump in turnover. Investment into the Yorkshire and Humberside continued with further office space taken by the construction arm. Further development is planned at Esh Group’s headquarters at Bowburn near Durham, and development of an operational base in Yorkshire is proposed. There are also plans to take forward a large As we struggle with an ever scale mixed development at Philadelphia in Sunderland. growing list of high falutin’

FACT OF THE QUARTER

QUOTE OF THE QUARTER

job titles, NASA simply employs ‘rocket scientists’. Does what it says on the tin!

“It is wonderful when substantial sums are announced for major road improvements, but to repeat after repeat the same money and extend the delivery time to 2020 doesn’t give work needed now.” Douglas Kell, director the Civil Engineering Contractors’ Association (North East), commenting on Highways England’s announcement that £600m will be spent on North East road improvements by 2020

More cash and carry

Entrepreneurial city

Kitwave the North Shields food wholesaler has acquired an 11th firm frozen food specialist Angelbell. Established in 1987 as an acquisition vehicle to buy independent wholesalers, Kitwave is now a cash and carry specialist in branded confectionery, soft drinks, crisps and snacks, tobacco and frozen products. Its latest acquisition lifts its customer base to 30,000, and extends its geographic reach and product offering. Angelbell (Hulleys Frozen Foods) is the second frozen food operation to join the group, after Eden Farm last year. NVM Private Equity (NVM) supported Kitwave in 2011 with £7.5m of investment for acquisitions.

Expanding entrepreneurial businesses in Sunderland have taken the city to the top spot in two categories of a major new national report. The UK Growth Dashboard, compiled by the Business Growth Service and the Enterprise Research Centre, has found Sunderland had a greater proportion of surviving 2011 start-ups reaching a £1m turnover by 2014 than any other selected “primary urban area” in England, including London, Manchester and Birmingham. The city also had the highest proportion of fast-growing businesses in the North East in the same period, delivering jobs and revenues as well as wealth for their owners.

TOP TWEETS Great day in Newcastle for @ StartUpBritain #StartUpTour with partners like @entforum @IWCYC @BQLive @ TransmitStartUp - @KostaMavs RT @BQLive: The North East is leading the way in new enterprise. Have you helped contribute? - @Rodmatic_Ltd @EdbsNovus is calling on established businesses to support new and growing SMEs @PeterleeBiz @BQLive @leannelecc More #startups flourishing in @ SunderlandUK than any ‘primary urban area’ in UK >> http:// www.bqlive.co.uk/2015/07/02/ sunderland-businesses-shinein-new-growth-report/ … via @ BQLive - @DTZ_UK Good to see positive regional sentiment in inaugural Business Growth Fund ‘Growth Climate Index’ @BQLive - @ NELFundManagers Fantastic news for the #NE following shipping minister’s @ Port_of_Tyne praise! #NorthEastBiz - @ EncorePackaging

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Graduates boost business

On with the wash

A Graduates into Business project has helped start up 30 new businesses and provided graduate interns for more than 50 small and medium size businesses in a year in the North East. The £1.1m initiative has been backed by the European Regional Development Fund.

Ebac has secured funding of £10.5m, including £5.5m of new facilities, from RBS Invoice Finance, RBS and Lombard as managing director Pamela Petty (above) leads it to the distinction of being the first UK-based appliance maker in 10 years to manufacture washing machines in the UK. It also turns out bottled water coolers and dehumidifiers, employing 200 staff at Newton Aycliffe. The funding will support both the washing machine venture and development of a Norfrost by Ebac chest freezers range.

Car dealers drive on As drivers and car dealers alike ponder pains likely from the Chancellor’s Budget imposition of a “premium” £450 a year annual road tax bill to fund road building, and jack up the tax on environmentally friendly cars, major retailers in the North East press on with investment in their businesses. Vertu had already set aside £40m for further acquisitions and dipped into that to open its 117th showroom - for its first Skoda dealership, a £1.5m acquisition from MSB Skoda in Darlington. It also recently acquired Bury Land Rover and Bradford Jaguar for £7.9m having broken through the £2bn barrier in turnover. It has refurbished a Ford dealership in Durham at a cost of £2.4m. Pulman Group at Durham has brought in Robertson Construction for a £500,000 refurbishment of its showroom, with Silverstone Building Consultancy project managing. And both Jennings at Stockton and Springfield Cars at Washington reported sales 18% up. Benfield, continuing a £20m capital investment programme, recently opened a new-look £1m Volkswagen showroom. It has also launched a new leasing and contract hire service.

Pharma firm grows Pharma plc, the Burnopfield, County Durham pharmaceutical firm, has acquired NuPharm Laboratories of North Wales for £9.34m and a maximum £4m potentially payable under earn-out arrangements.

Cheers at the double Microbrewing is enjoying a double pick-me-up in County Durham and on Tyneside. Castle Eden Brewery, founded in 1826 but closed for more than a decade until recently, is back in business with a microbrewery employing six staff. Its rescuers Cliff Walker and David Travers, both experienced in the North East trade, have bought the Castle Eden brands and intellectual property rights to the Castle Eden designs and recipes from Belgian based AB In Bev, the world’s biggest brewery. Backing for this County Durham revival has come from NatWest and Lombard. On Tyneside, former Vaux boss Frank Nicholson has become chairman of a new company behind the Jarrow Brewery, which called in liquidators amid a cash flow problem.

The Forge is the place to come for innovative businesses with big ideas and ambitions.

This brewery has built a reputation on its Rivet Catcher and Jarrow Bitter brews. Founded in 2002 at the Robin Hood pub in Jarrow, it had relocated to Bede Industrial Estate in Jarrow, employing 12 people. Since an attempted management buyout of Vaux failed in 1999 Nicholson, now a management consultant, has been associated with Durham Markets Company, Port of Sunderland, HE Woolley fire protection and security business, and Matfen Hall Hotel.

“Microbrewing is enjoying a double pick-me-up in County Durham and on Tyneside”

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Santander’s backing is helping the purchase of three more sites in Tyneside and County Durham, and refurbishment of others. Penny Petroleum has won numerous awards from Top 50 Forecourt Trader of the Year to Best Scottish Forecourt Retailer. Four sites have recently been listed in the top 10 for retail sales in the automotive sector. Penny expects to have 40 sites by the end of 2016, against 20 a year ago. “I credit our success to our excellent business model and the ambition of our new management team,” Penny says.

Aflame with growth Bypass partners Two civil engineering groups have joined forces to help deliver Morpeth’s new £30m Northern Bypass. Lafarge Tarmac has been appointed by Owen Pugh Contracts in a £2.5m deal to supply 180,000 tonnes of construction aggregates for the earthworks, and Lafarge Tarmac has contracted a division of Owen Pugh specialising in haulage to transport the materials to the worksite from its quarry in Howick, Northumberland. The deal is worth £820,000 to Owen Pugh & Co with Owen Pugh Contracts reaping a further £4.3m for the earthworks part of the scheme as a subcontractor to Carillion. Owen Pugh is led by chairman and managing director John Dickson (above)

Filling it up Penny Petroleum, a Northumberland firm of 28 petrol retail stations in the North, has bought three more sites with a £1m funding package from Santander Corporate & Commercial. Owner David Penny has been trading for 21 years and aims for Penny Petroleum to become one of the largest independent operators.

North East trade supplies firm Flame Heating Spares has opened its fourth outlet – in Sunderland. It operates trade counters for heating and plumbing engineers, and already has outlets in Gateshead, Durham and South Shields.

Engineers grow British Engines on Tyneside has bought Michell Bearings marine company from Rolls Royce for £12.6m, and with it a Rolls-Royce training school. Michell Bearings is the group’s seventh engineering company in the North East and also providing British Engines with a 51% holding in an Indian subsidiary.

Lawyers prosper The Teesside law firm Endeavour Partnership has enjoyed its best financial year yet – in its 15th year in business. Now employing 44 people in all, it is ahead of predictions to double £2m turnover within five years. County Durham law firm Swinburne Maddison LLP has reported another “buoyant” year. Among bigger players, the Top 40 UK firm Bond Dickinson has taken its revenue beyond £100m, and Ward Hadaway stabilised income at £33.5m, still raising like for like profit by 30.1%.

ACHIEVERS Galliford Try, Royal Haskoning DHV, South Tyneside Council and Oobe win Project of the Year in the North East’s Constructing Excellence awards for work on Littlehaven promenade and sea wall at South Shields. Bastion Security Products of Shiremoor, North Tyneside (providing anti-ballistic protection to terrorist targets globally) - wins the Product Design and Development Award at Counter Terror Expo. Thomas Swan the Consett chemicals manufacturer received a “special recognition” award in the North East Exporters presentations. FaulknerBrowns architects and Arup structural engineers - wins the national award for Derby Arena in Structural Steel Design Awards. Mech-Tool Engineering (Darlington,10th), Prima Cheese (Seaham, 39th), Oil Consultants (Sunderland, 91st), Fine Industries (Middlesbrough, 127th), British Engines (Newcastle, 151st) and Simpsons Malt (Berwick, 188th) are all in this year’s Sunday Times Intermediate Track 200 of UK companies with the fastest growing overseas sales.

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PROFILE Properties Unique

Home from Home Having worked as a bilingual personal assistant in the UK and abroad for a number of years, Vivien Herrera-Lee knew there was a gap in the market for luxury serviced apartments. She recalls: “At the same time I was confident that this concept would be warmly welcomed by the business traveller as the preferred alternative to staying in a hotel room.” With this in mind, together with the encouragement and assistance from her late husband Ramon and their son Ishmael [now a Company Director] Properties Unique was established 12 years ago. Initially she worked from her study at home in the North East with only 2 apartments and one member of staff. Since then, demand for serviced accommodation in the North East has grown Properties Unique has expanded considerably to the point where it now has a team of 16 staff and uses several local contractors for property maintenance and repair work, thus helping to support the local economy. Their property portfolio has now increased to more than 80 properties including apartments, town houses and penthouses in 20 different developments in and around Newcastle’s city centre. For two consecutive years, Properties Unique has won the Award for ‘Outstanding Customer Service.’ Vivien has also received the title of Special Ambassador for Tourism, and last year was named as North East Business Woman of the Year 2014 by Lifestyle Media. Vivien says: “I am confident that our success is due to the fact that both Ishmael and I, together with every member of my staff, have a genuine sense of caring and will always go that extra mile for our guests.’’ She says: “Our minimum stay is one week ( so eliminating party nights ! ) Often guests are booked for a short period, but in effect could end up staying much longer if their project is not complete. As we speak, we actually have a number of corporate guests who originally were booked for four months and have now been with us for over two years. “Whilst our bookings are mainly through international agents, corporate and blue chip companies, we work with the sports and tourism organisations throughout the world. “We also work in close liaison with the local theatres, together with the film and media world – often having very famous personalities staying with us, and quite recently, we even had an Oscar

Properties Unique has grown over the years and is now looking to exporting its successful formula, as we report

Vivien Herrera-Lee of Properties Unique winning actor.’’ Properties Unique explains Vivien, is a tailor made service for the corporate & leisure traveller, which aims to offer a home-from-home environment providing more space, privacy and flexibility. Vivien adds: “Corporate Companies are choosing serviced apartments for their associates, as it is a proven fact they have a positive effect on those working away from home and also helps them integrate in the region for their sojourn here in the North East. “The main advantage of serviced accommodation is financially they are more viable and cost effective than a hotel stay. All apartments are luxuriously furnished having a separate lounge/dining room, fully fitted kitchen and bedrooms with deluxe bed and ensuite facilities. The rental includes all utility bills, parking, WiFi, together with a weekly housekeeping service. Guests are personally greeted on arrival, and are provided with a 24-hour contact number for any out of hours issues they may have during their stay in the apartment.” So, what are the plans for the future and what are her ambitions for the business? So far 2015 has seen the company continue to thrive

with Properties Unique has being chosen to ‘partner’ with an international agent and still remain the preferred north east accommodation provider to a vast number of worldwide agents and blue chip companies. “Whilst Properties Unique is a successful brand here in the North East, having brought in excess of £8m of international investment to the area from countries such as China, Croatia, Dubai & USA, we are now in talks to possibly expand our brand to the overseas market.’’

Saltmeadows Rd, Gateshead, United Kingdom NE8 3AH Office - (0191) 490 0789 Email - reservations@ propertiesunique.com Website - www.propertiesunique.com

XYXTCRZXX When only the best will do bqlive.co.uk

North East “Award” winning Serviced Apartment Provider Why only have a hotel room when you can have a 5-star luxury serviced apartment from £65 per night!

p ro p e r t i e s u ni q u e . co m

0191 49 0 0 789

LEGAL BRIEF

In association with

Ward Hadaway

Why sharing is caring for your business Paul Christian, partner and head of tax at law firm Ward Hadaway, looks at how employee share schemes can help a wide range of companies

What is keeping you awake at night? The chances are that skills shortages are likely to be pretty high on your list. PwC’s recent annual global CEO survey found that three-quarters of all CEOs say a shortage of key skills is the biggest threat to their company’s continued growth. Add this to a scramble for talented people, particularly in sectors such as technology and software development, and you have the recipe for some seriously fretful sleeps. The long-term solution to skills shortages lies in education and training, but since this is likely to be some years away, what can companies do here and now to deal with the issue and ensure they have the people they need to grow their businesses? An obvious solution to attract and retain the most talented staff is to pay them more than your competition, but that isn’t an option for most companies, particularly those at an early stage where working capital is

vital to help build the business up. So what can be done? One route to boost recruitment and retention levels lies in offering key employees a stake in the business, usually via shares or share options. Over the past few years, such schemes have become increasingly popular due to the availability of enterprise management incentives (EMIs), which were first introduced in 2000. How do these work? Essentially EMIs give a highly tax-efficient “wrapper” to traditional option arrangements that meet the relevant statutory requirements. Changes to the tax treatment of EMIs have made them even more attractive, so that having EMI options can give a better tax treatment than actually holding the shares. A typical situation in which EMIs might be used would be a small software company that needs top developers. On joining the company, these key employees are given the chance to

buy shares in the company in the future, but based on the shares’ value today. The software company plans to either be sold or floated in five years’ time when, if things go as anticipated, the employees will be sitting on substantial profits. Under the EMI arrangements, there should be minimal tax to pay by the employees and no tax consequences for the company. So what if your business isn’t in the tech or software sectors? This should not be a problem since EMIs can be used by any company that meets the statutory requirements. Certain companies are excluded because of the nature of the business they carry on (mainly businesses which are property-related or have substantial asset backing) or because they are subsidiaries of other companies. EMIs are also targeted at smaller businesses so they cannot be used by companies with gross assets in excess of £30m or companies with more than 250 employees. There are important issues which owners need to address when considering putting in place employee share option schemes. These include what happens when employees leave or retire, how employee share option holders compare with existing shareholders and whether and when employees can be bought out. This is why professional legal and financial advice needs to be sought before embarking on the employee share option scheme route. However, one thing which shouldn’t put you off is the price. With typical EMI schemes now costing from around £2,000 to put in place, they are well within the reach of a wide range of different companies. At Ward Hadaway, we advise a wide range of companies on setting up and maintaining EMI schemes, with fixed price options available. Please get in touch for more details on how we can help you. n For further information on employee share option schemes or any of the issues raised by this article, please contact Paul Christian at paul.christian@wardhadaway.com or on 0191 204 4281.

Together with business

The Forge is the place to come for innovative businesses with big ideas and ambitions. 01642 384068 theforge@tees.ac.uk tees.ac.uk/theforge

AS I SEE IT

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Making the North East better connected

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“This digital revolution is, and will continue to, open up the North East to the world”

already here with things like smart wrist bands which track steps taken, calories burned and even sleep patterns. This digital revolution is, and will continue to, open up the North East to the world.

ENTREPRENEUR bqlive.co.uk

Keith’s in a chicken and egg situation You wouldn’t guess the shopper you see ahead is one of the North East’s better known entrepreneurs into his third business with remarkable success. Keith Gill tells Brian Nicholls why business is now so much fun

ENTREPRENEUR bqlive.co.uk

You can’t miss him – a bearded figure, bag in each hand, padding round the village streets in trainers and shorts. He’s the voluble entrepreneur Keith Gill in his workwear, excelling in his third business, gathering food supplies and happier than ever. Before sitting you down to chat, he leads you up the garden path (so to speak) at his 1788 home, to help gather the day’s eggs from his eight free range chickens. Here’s a food specialist par excellence, all skill and no pretension. Whether it’s the humble crisp, snacks more esoteric, tasty meals bagged for cooking, or nowadays a breakfast that partakers home and abroad eulogise online, Keith Gill is so accomplished a provider and advisor that this September he’ll be awarded by Hertfordshire University, his alma mater, an honorary master’s degree for his contribution to the food industry. “Surprised? Chuffed to bits,” he laughs, confessing pride in his rich Durham accent. One of two entrepreneurial restorers of confidence to Derwentside, two years after Consett Steel Works and almost 4,000 jobs were lost (giving the area 35% unemployment at that point), Gill has just celebrated a one-year husband and wife business partnership solidly successful in running its bed and breakfast hotel, The Old Post Office, on Front Street, Lanchester. Keith and this old stone village dating to Roman times are perfect partners too, both having great stories to tell. He and Pauline moved there from nearby Iveston in 2002, and in April last year decided to fulfil an idea they’d shared – “buzzing away, it was” – for a few years. Keith was working from home as a food consultant while Pauline continued teaching English and drama at Grindon Hall School in Sunderland. Converting their home into a B&B gives both an attractive alternative to retirement, and redeployment of bedrooms in their large

home now that their grown-up children have left. While Pauline brought her teaching to an end, Keith who’d just finished a major project, put his consultancy aside temporarily and has run the B&B with strict orders from Pauline – “my wonderful wife who knows me well” - that under no circumstances was he to have anything to do with the cleaning or ironing. But making and changing beds? No problem. As for breakfasts, Keith’s in his element. It wasn’t just his past experience of running successful food companies, nor his intimate knowledge of nutrition and passion for local produce that has enabled him to raise the standard (in both senses). It’s also that he’s enjoyed cooking for 50 years. “I used to make a piperade when I was 13. Mum encouraged me.” Within two months of setting up at The Old Post Office, the Gills were in business. Standards were soon recognised when it found itself, alongside Bistro 21 and Headlam Hall, named Highest Quality Assured and Local Produce Champion at the Durham Taste Awards. That distinction accompanies a gold four star rating from the AA and outstanding praise on consumer websites. The atmosphere is English country cottage. To keep up the post office motif they designed, with Pauline’s inspiration, themed guest rooms now known as Penny Red, Penny Black and Twopence Blue. “Pauline’s fantastically creative in gardens and décor,” Keith says. “And a house dated 1788? You can imagine – old values, old big

“It restores my faith in humanity. I hadn’t realised how jaded I’d been in business dealing with apparatchiks of the corporate world “

rooms. Plenty of space, not only for a king size bed but for a superking in one case. Even with cupboards in, guests have rooms like a four star hotel suite without four star prices.” En suites were fitted, a fifth bedroom made a guest lounge, and success is underpinned by a recent complementary boom of dining-out venues in this village only eight miles from Durham City: Italian, Greek, pub grub, a rumour of Indian soon to come, and only two miles away from the outstanding Chinese restaurant, the Pavilion. Keith started stocking chickens last May, provenance of ingredients having absorbed him throughout his working life. Neighbour Paul Crinnion makes “fantastic” home made sausages and prepares bacon produced only 10 miles away. His partner Fiona converted what had been a retail butcher business into a little bar and restaurant, but Paul still butchers wholesale and “knows his trade”. Another friend of 20 years or so, Lesley Hughes, makes the biscuits and bread. “Lesley and I Introduced porridge for winter,” Keith says. “We got the idea of a fruit compote. People love it. Also last January she made 20kg of marmalade from Seville oranges our local greengrocer Ray Emmerton supplied.” Another long term acquaintance, Ian Kennedy, supplies fish from his business in Durham’s covered market place kippers and smoked salmon from Craster. With all this (plus the eggs) Keith offers three main breakfasts: English grill; smoked salmon and scrambled eggs topped with chives; and poached kippers with poached egg nestling. Seasonally he does a baked egg on a herby tomato and mushroom nest in a ramekin. He lids and bakes it for 15 minutes. “It comes out beautiful,” he promises. So does his Eggs Benedict. So Keith blogs the supremacy of eggs for breakfast; how they’ve been around

ENTREPRENEUR bqlive.co.uk

hundreds of years, are high in B vitamins, good for the brain and eyesight, have nine amino acids in - a little pocket super product. B&B’s attraction is the opportunity to chat. Keith explains: “We’re both gregarious characters. So we tell people a bit of our story and they tell us a bit of theirs. Very pleasant. It restores my faith in humanity. I hadn’t realised how jaded I’d become in business dealing with apparatchiks of the corporate world.” He little disguises this scorn from his experiences with United Biscuits, which bought Phileas Fogg. “Phileas Fogg was poorly treated by United Biscuits,” he declares. “They had a gem and screwed it up. They didn’t understand a brand like that must be nurtured. They kept putting in marketing mechanics without soul, working to a timetable sales guys want. ‘Now week 37. Start planning for a promotion in week 45.’ Not what’s right for the brand, or how to engage more with consumers?’ “We’d instinctively built the customer profile knew the customer journey. That’s integral to progressing any brand. We started Phileas Fogg before Powerpoint, before computers, before Excel spreadsheets. We had Lotus 1-2-3. No mobile phones, internet or email. You promoted through advertising - very expensive. “And you lacked levels of engagement, never knowing how much of your potential audience was actually affected.” It’s different now as Keith exploits new technology. “Broadcast to narrowcast with technology, I call it – social media, fragmented advertising within the market, feedback now possible. It’s incredible, so different. It not only helps brand building but, in a small operation like this, it’s a great market place if you do it right.” He feels many in business don’t yet realise the true value. “They build a website then do nothing with it. We constantly try something different, refreshing it, putting elements of our reviews on it. If we write about the Red Room the comments made are other people’s - not

“A lot of people build a website then don’t do anything with it. We constantly try something different” ours. We blog about our suppliers, our food, about eggs being nutritious, and history of the post office. They use “front desk agencies” such as Booking.com, Evivo, Expedia, Hotels. com, Laterooms.com. Trevago, AA, and Bedandbreakfast.eu – “a broad church giving direct contact.” Villagers bring business personally on behalf of visiting relatives or friends, while the website draws bookings from Australia, New Zealand, Belgium, Portugal and Argentina. Parents of graduands booked eight months ahead of Durham University’s awards ceremony this year, and the website also extols local events and attractions, such as test cricket, Durham Lumiere, Beamish Museum, Magna Carta; Keith always finds something. And as an ex-rugby full back with Durham City and Rosslyn Park, he remains

Fingers in pies Besides jointly running The Old Post Office Keith is, in consultancy, currently chairing a company that’s into weight watchers’ meals using supplements and replacement powders, and which has just broken into a German supermarket. He’s chairman and mentor for mother of three Lucy Anderson as she develops her Swalwell, Gateshead, business Tipsy Pud, whose desserts are shot with alcohol and an infusion of crowdfunding. Lucy’s website has a look of Keith about it. One thing more: Keith supports also one of his sons in developing with a friend an outdoor and corporate catering business with local drinks producers and Bill Oldfield, the Durham restaurateur.

team minded. For all it demands ingenuity it’s a different work pattern from when he and Roger McKechnie, with whom he’d worked earlier at Tudor Crisps, developed two manufacturing operations from greenfield start-ups, employing 390 people (250 at Derwent Valley, 110 at Tanfield Food Company). Despite his culinary expertise, he’d graduated in applied engineering and was initially an electronics consultant for Sweda, which was making scanning devices forerunners of what supermarkets use now. Returning to the North East in 1977, he joined Tudor’s personal administration, reorganised staff then joined the marketing team, which he was running within two years. Derwent Valley Foods opened in 1982. Getting its advertising right was challenging. After six years Bartle, Boogle and Hegarty, an international advertising agency was brought in. They were intrigued that Derwent Valley used authentic machinery, flavours and recipes for its exotic snacks: tortilla chips made on kit bought in Mexico, real chilli and real cheese. They felt it remarkable that authentic snacks from around the world should come out of Medomsley Road Consett. They explored a juxtaposition of authenticity and eccentricity. The market storming Phileas Fogg was thus born. “Pay Attention! Authentic snacks from Medomsley Road, Consett,” was the rewarding order regularly barked out on television. Derwent Valley Foods was sold to United Biscuits in 1993 for £27m-plus. In 2003-4, Keith and Roger set up Tanfield Food Company using thermal processing: putting ingredients in a pouch and sealing it. As long as temperatures and pressures were right, the food would cook as in a steam pressure cooker. The advantage: 12 month shelf life - no need to chill or freeze. It inspired slow cooking and tasty options: rabbit in elderflower sauce, for example, Herdwick mutton stew, beef carbonade. All ingredients were from trusted producers. The farmers’ pictures were put on the pack, focusing on provenance and traceability. Look What We’ve Found was not only a brand but promised excitement. “It was trying to relate a voyage of discovery to find great producers,” says Keith, “similar to Rick Stein’s TV programme about food heroes.” By the time this enterprise was recently sold to Symington’s, both he and Roger, 74 now, could retire if they wished, having attracted a big investor who brought in management. But Keith’s “interesting journey” continues. n

Keep your business young and you keep your business strong.

To find out what strengths young people could bring to your business, visit GenerationNE.co.uk or call 0191 230 0491 and weâ&#x20AC;&#x2122;ll put you in touch with your local Business Advisor. Generation NE is a collaboration between Newcastle, Durham, Gateshead, North Tyneside and Northumberland councils and the North East LEP who are working together to increase employment opportunities for young people.

Make the connection

PROFILE HSBC

HSBC supports North East SMEs with a £150 million fund

Jerry Arneja Commercial Manager HSBC, Alan Clare Managing Director ADS Ltd, Pat Dellow Area Commercial Director HSBC Earlier this year, HSBC launched its most ambitious ever package of support for small and medium-sized companies in the North East, through the launch of its £150 million SME fund. In addition to the fund, HSBC announced that arrangement and HSBC security fees on qualifying business loans worth between £1,000 and £300,000 would be waived or refunded through to the end of July. Today we feature two businesses that have benefited from that support and learn what led them to seek finance and how they found the experience. Walker & Morrell Independent Funeral Directors Walker & Morrell was set up in 2002 by John Morrell and Lynne Walker. Looking to improve the customer experience, John and Lynne took the decision to replace their current black vehicles and placed an order for a silver

Jaguar hearse and limousine. This was a substantial investment and in the past the vehicles had been financed through the supplier, with both John and Lynne believing Bank funding would be more expensive. Co-Founder of Walker & Morrell, John Morrell, said: “I don’t think we would have approached the bank for funding had we not received a letter from our Relationship Manager, Colin Lynch, advising us of HSBC’s fee-free campaign. Initially, I thought the application process would be quite daunting, but it was actually very simple. “We discussed our future plans with Colin and provided some financial information and subsequently obtained a very competitive quote. The loan was approved within three days and we were able to access the funds. The new silver limousine

presents us with opportunities to enter the wedding and prom markets and both Lynne and I are certain this investment will support our future growth and sustainability.” ADS Ltd Established 22 years ago, ADS provides advice to the construction industry on the design, installation and commissioning of all aspects of ventilation. A key area for the company is smoke ventilation, where they provide guidance on how to extract smoke and heat from buildings to allow firefighters to gain access to safely fight the fire. ADS are currently providing their expertise to Sir Robert McAlpine on the Nissan Project. ADS Managing Director, Alan Clare, took the decision to replace their fleet of vans and apply for funding from the HSBC’s SME fund. Commenting on his

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experience, Alan Clare said: ‘’We have banked with HSBC since the business started 22 years ago. We had never borrowed from the Bank before so I was unsure of the protocol. “We decided to replace our fleet of vans and were considering purchasing, rather than a combination of purchase and contract leasing. Our Relationship Manager, Jerry Arneja, made us aware of HSBC’s £150million SME fund for North East businesses and provided us with a quote for the funding needed. We agreed a price and were very pleased at the speed in which we obtained approval and access to the funding. It was a straight forward process and helped us strengthen our relationship with HSBC. Pat Dellow, Area Commercial Director in the North East, added: “SME’s in the North East are ambitious and HSBC are ready to help them invest to grow.

‘I don’t think we would have approached the bank for funding had we not received a letter from our Relationship Manager, Colin Lynch, advising us of HSBC’s fee-free campaign.’ John Morrell , Co-Founder of Walker & Morrell Earlier this year, we launched our £150million fund for small and medium sized businesses in the region and a promotion designed to make it cheaper and simpler to access funding. We’re hugely proud of our International network, but it’s vital that businesses across the region, from start-ups and sole traders upwards, know that HSBC is there to support them. The companies featured today are a great example of ambitious businesses who understand the importance of investing to grow.”

FOR SOME, THE NEED TO GROW JUST KEEPS GROWING.

Pat Dellow Area Commercial Director HSBC North East Tel: 07767006679

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Successful businesses aren’t satisfied by the here and now. They prefer to ask ‘Where next?’ At HSBC our local SME Funds were created with these businesses in mind, offering access to funding that could help take their ambitions as far as they want to go. To find out how we could help your business, call 08000 320690 or visit www.hsbc.co.uk/business

IT’S NEVER JUST BUSINESS

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From the fourth floor balcony he looks down on figures far below creating a “heart” for his university in their hard hats and high-viz jackets. Then, across the rooftops of Middlesbrough, Professor Paul Croney points to symbols of Teesside industrial achievement – the sculptured structures where the all important chemicals are processed, the sea with its ongoing allure of hidden energy, and the bluecoated Transporter Bridge linking past with present. These views excite the university’s new vicechancellor and chief executive, reinforcing his determination to put this centre of learning at the heart of Tees Valley with national and international dimensions - a catalyst for change and development “for our economy and for society,” he declares. He’ll simultaneously bid to grow the university’s present overall income of £130m. Notably free of academic and business speak in conversation, he’s “delighted and thrilled” to have been headhunted, though despite his obvious credentials he also admits having had some trepidation. It involves at this time, besides heading academic studies, also seeing through some £30m of development already under way. But at 51 he’s a picture of fitness, continuing in his leisure time to swim, cycle, and now contemplate a fifth Great North Run. This is the fourth academic citadel from which he has worked, following Leeds, Sheffield Hallam and Northumbria where, until recently as a specialist in management and business education, he held successive leadership roles from dean of the acclaimed £26m Newcastle Business School, to pro-vice chancellor for learning and teaching, and, latterly, as deputy vice-chancellor focused on strategic planning and international development. An academic scholar in management and business education, he holds honorary and visiting professorships from universities in Russia and China, and his experiences from those will now be to Teesside’s good. He explains: “I’ll seek to develop, at an appropriate time, an international agenda here. It’s a key area of development I foresee besides looking at areas of academic excellence and distinctiveness that Teesside will be renowned for. “We must be a university of international reputation because Tees Valley needs that. I’m looking to continue my links with my international colleagues in various parts of the world to explore how Teesside can work in

Teesside, where the sun rises first Professor Paul Croney in his challenging new role as vice-chancellor and chief executive of Teesside University is determined to build its recognition abroad, while stepping up its value to business great and small at home. He explains how to Brian Nicholls

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“The region, too, doesn’t want simply a regional university, but an international university that can make a difference to regional developments.” Professor Paul Croney, vice-chancellor

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‘That says great areas of excellence already exist at Teesside and that’s very encouraging, I’m really encouraged by work going on here. In certain things Teesside is up with the best.’ Professor Paul Croney, vice-chancellor

the geographic areas popular for UK higher education, and where our international research can be done in international partnerships. “That will give our students opportunities to study abroad, our staff to have exchanges. The region, too, doesn’t want simply a regional university, but an international university that can make a difference to regional developments. All around me here I see process innovation and other innovation taking place. We must respond to that, bringing international research, partnerships and international staff and academics to Teesside University so they can take part.” He cites the transnational education now present in partnerships and pledges: “We’ll certainly build strategic international partnerships and, hopefully, strategic alliances creating dialogue with international partners - an exchange process enabling students from Teesside University to go out to the partners and gain learning experience elsewhere in the world.” Also, more foreign students could broaden their experience through Teesside’s partnership with “the right partners in the right parts of the world.” He cites countries such as China and Hong Kong, India and other parts of Asia, as well as parts of Africa. There are no plans to set up any international campus. “We’d rather work in partnership enhancing the student experience of Teesside through a global network of academic partnerships.” Presently there are 22,000 students (full time equivalent) and a total staff (academic and otherwise) of 2,400. The 800 non-UK students there now look sure to grow in number. Parallel ambitions for improving potentials for staff and students include stepping up the university’s already considerable value to business, and advancing capabilities to improve the regional and UK economies. The present £30m investment in development is the university’s biggest such programme yet. It includes: • The Curve, a new flagship £20m teaching and learning building

• £6m refurbishment of the Orion science, technology and engineering building • Brand new health and fitness centre • Major upgrading of the university library and Students’ Union facilities • Olympia, a new health and fitness centre • Extensive landscaping. Teesside University, unlike a number of other latter-day universities, sprang up not on greenfield but in the centre of Middlesborough in 1992 from its predecessors of 62 years earlier, Teesside Polytechnic and the Constantine, jostling for space with existing buildings. It is only now getting a campus as such, Campus Heart being the romantic expression for the institution’s massive financial and emotional input. “This pedestrian development will bring students a wonderful learning ambience,” Croney explains. “It’s an opportunity to raise the profile of Teesside and show students how seriously the university takes the student experience and learning environment.” Crucial to businesses of all sizes in the region, and indeed to the regional and national economy, are new enterprises of which Teesside University is part. They include: • The Forge, a £13m one stop shop serving businesses on a second campus, at Darlington, in league with the new National Biologics Centre and the National Horizons Centre there; • National Horizons Centre, a partnership with the Centre for Process Innovation (CPI), Darlington Council and Darlington College, to create skills and resources for biologics, subsea engineering and industrial biotechnology; • Fusion Hive, at Stockton, to serve new and growing SMEs. It further continues to lead Digital City beyond its 10th anniversary, and retains key involvement in Boho One, the flagship building of Tees Valley’s digital, creative and business hub. The Forge, shaped in consultation with customers, partners and stakeholders, provides a single entry point for companies keen to access the university’s business services, whether

in research and development, leadership development, training or professional education support – the “front door” for anything from a start-up to a blue chip multinational, the university says. The Forge is expected to speed the growth of firms in emergent activities such as biologics, industrial biotechnology and subsea engineering. In this, the university partners the CPI, Darlington Council and Darlington College. The NHC, it is hoped, may create more than 2,500 jobs and 6,000 training places. The National Biologics Centre, serving UK manufacturing in that field, will see Teesside lead university, developing with other universities and other corporate partners the nation’s strength in biologics. Students will be able to join biologics companies in programmes and block activity via the university and the biologics centre. “It will enhance career prospects, being part of a national initiative within a global activity advancing corporate business and nurturing entrepreneurs,” Croney points out. The Fusion Hive, a business and innovations centre within a £100m regeneration at Northshore in Stockton, will have three floors to accommodate 60 new and growing SMEs in digital, creative and scientific sectors. Here the university partners Stockton Council, the Homes and Communities Agency and Muse Developments, a national specialist in mixed-use projects and urban regeneration. Already the university has spun out more than 400 business start-ups. It works with hundreds of businesses a year and holds a Queen’s Anniversary Prize for “world class excellence” in enterprise and business engagement. Its major boons to business include its leadership accelerator programme, developed with leading process industries firms such as Lotte Chemical, Sembcorp, Huntsman, Cordell Group and GrowHow to fast track potential executives. It equips with management expertise talented graduates of engineering and manufacturing whose degrees lie in a related discipline, but who do not yet have experience in management.

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Fusion the food of progress Hints fill the campus air about fusion of talents and greater might for the already strong. Croney observes: “I’m going to look at where the academic strengths lie, create discussion and debate on where we seek excellence, then develop key themes and invest our resources there, further expanding the university strengths. “In a world of scarce resources and a competitive environment that universities find themselves in, once you’ve had open and honest debate with colleagues about the whereabouts of our strengths we should then back the winners and seek excellence there. Teesside University must develop an international reputation for academic excellence in things it thrives in. That’s the key development theme I’ll be looking for.” The fusion? His randomly suggested possibilities include employing digital strengths in biologics, and having forensics linked closely with law and criminology. “I’ll be looking for a commitment, broadening from specialist discipline to a creation of cross-disciplinary areas or themes that society wants, and which need addressing. The university must respond to society needs, generating and applying knowledge through programmes, consultancy and applied research. “I hope nuggets of great strength will enable us to build responsively, further to needs of the global economy and our global graduates.” Professor Henderson expects Professor Croney will lead the university to ongoing success, while Alastair MacColl, chairman of the university’s governors (and chief executive of BE Group), admires Croney’s “incredible amount of experience.”

Its performance in a recent Research Excellence Framework showed all subjects entered contained world leading research. “That says great areas of excellence already exist at Teesside and that’s very encouraging,” Croney suggests. “I’m really encouraged by work going on here. In certain things Teesside is up with the best.” He acknowledges in this the contribution of his

predecessor, Professor Graham Henderson, on whose watch over 12 years the university more than doubled in size, became the first modern university to win the Times Higher Education University of the Year award, and also won that Queen’s Anniversary Prize. Henderson stepped down after 40 years in academia and 16 years in all at Teesside University. Croney’s succession,

in his words, comes at “a pivotal time”. He explains: “Such a great amount of investment in the campus bodes really well. I’m coming as all this investment reaches fruition, and as some other projects commissioned start.” The Curve should be ready for occupation around now. Olympia should be completed by December, and Orion before the academic year ends. The Library and Students’ Union buildings have been modernised (final touches now being applied to the latter), and when the Curve is completed the executive presently occupying the library’s top floor will move across, to allow for a postgraduates’ lounge and learning area. “I’m determined to put into place a plan for development, finance and resources permitting, to see a rolling programme of investment in our learning experience – environment, facilities, teaching, labs and so on,” Croney promises. Of The Curve, he says: “I want this to be also a forum for debate and discussion involving the region’s key leaders from many walks – a place where they can talk and debate about how we can transform Middlesbrough, Tees Valley and the North East into an economic success story. “I’ll say ‘let’s talk through the issues around big challenges ahead’ as announcements come out on business and production and funding. I want this university to be the place for debate, discussion and thrashing out our response as a region to these kinds of things.” Professor Croney, Newcastle born, foresees a big role for Tees Valley in progressing the North East as a whole, particularly in contributing to the concept of a Northern Powerhouse. “First priority is for Teesside to work with the Tees Valley LEP across all the Tees Valley and to be a component of the Northern Powerhouse. Successful innovation here and in the surrounding area will benefit the North East and, indeed, North Yorkshire,” he ventures. “The sun rises in the East and this side of the Northern Powerhouse gets the sun before the North West,” he laughs. “So I want the university to be a shining example of Northern Powerhouse in the North East. We can do that.” So keen is he on this that, when the Northern Powerhouse Minister James Wharton suggested they meet in August, Croney successfully suggested a July appointment instead. William Gladstone, it was, who during the wisdom of his 60 year political career once described Middlesbrough as “the infant Hercules.” Croney clearly promises Hercules more muscle. n

PROFILE Oktoberfest 2015

Oktoberfest 2015 to be bigger and better Regional engineering and manufacturing coming under national spotlight Oktoberfest from the very start so I know how important the event it is to the engineering & manufacturing community here, and we are confident this year will be the most successful yet.” Durham Oktoberfest 2015 is being held on Thursday, October 22, at the Xcel Centre in Newton Aycliffe. To find out more visit www.durhamoktoberfest.org.uk

Okoberfest project team.

‘What makes Oktoberfest unique is that as well as enabling companies to showcase their world class capabilities, it also gives new and growing SMEs the chance to meet some of the country’s biggest employers David Land, Chairman of CDEMN NORTH East engineering and manufacturing is once again coming under the national spotlight. Plans for this year’s Durham Oktoberfest have been announced which will showcase the region’s strengths within these important sectors. The event, which gives businesses a platform to promote themselves and meet potential customers and suppliers, is now in its eighth year. And organisers have promised Oktoberfest 2015, which is under the control of the new County Durham Engineering and Manufacturing Network (CDEMN), will be the best yet. David Land, Chairman of CDEMN, said: “The North East is home to hundreds of successful businesses who are helping the region establish a global reputation for excellence and cutting edge processes. “Our supply chain within these sectors is worth billions of pounds to the region’s economy and Durham Oktoberfest is the perfect platform to ensure it continues to grow. “What makes Oktoberfest unique is that as well as enabling companies to showcase their world class capabilities, it also gives new and growing SMEs the chance to meet some of the country’s biggest

employers. It’s a great event and on I am personally delighted to be part of.” Support organisation Business Durham and global manufacturer Gardner Denver have been confirmed as this year’s Gold sponsors, while Silver sponsors are Altec Engineering and Stadium Packing Services. Business Durham has been a Durham Oktoberfest partner since the inaugural event in 2008 and continues to be a key partner both in a sponsorship and advisory capacity. Simon Goon, Managing Director, said: “Oktoberfest is a fantastic opportunity to showcase the diverse range and depth of talent, the outstanding competitiveness and the innovation of engineering and manufacturing businesses in our region.”Bowburn-based Altec Engineering is the first company confirmed as a Silver sponsor, the second year it has sponsored the event.Durham Oktoberfest Show Director Paul Sun said: “Each year since the inaugural event in 2008, we’ve attracted more exhibitors, buyers and attendees. The challenge this year is to build on what we’ve achieved in the past and drive Oktoberfest forward to become not just a regionally respected event, but a national one. “I’ve been involved in some form with Durham

DURHAM OKTOBERFEST: THE LAUNCHPAD TO WINNING NEW BUSINESS In October hundreds of businesses from across the North East and beyond will descend on the Xcel Centre in Newton Aycliffe for the region’s biggest engineering and manufacturing event, Durham Oktoberfest. The event, which is now in its eighth year, gives businesses the perfect platform to promote themselves and meet potential buyers, suppliers and customers. Daid Land, Chairman of County Durham Engineering and Manufacturing Network, which manages Durham Oktoberfest, said: “What sets our event apart from the rest is that we pride ourselves on working with businesses in advance to establish exactly what they want to get out of it. We will then match them to the attendees best suited to their objectives which means everyone gets the most from the time they’re giving up and has a real chance of coming away with new business. “We also appreciate how challenging it can be for smaller businesses to put themselves on the radars of bigger companies in the North East, their future customers, which is why we invest a lot of time in the Meet the Buyer element of the event. This allows participants to meet potential new suppliers in a series of one to one meetings. “This region is home to some of the country’s most successful engineering and manufacturing companies and Durham Oktoberfest is all about showcasing them and promoting our world class capabilities and strengths within these sectors.”

Oktoberfest Hotline: 0191 303 7772 Venue Address: Xcel Centre, Long Tens Way, Aycliffe Business Park, County Durham, DL5 6AP

Durham Oktoberfest: a showcase of the region’s world class engineering and manufacturing capabilities The Xcel Centre, Newton Aycliffe, 22nd October 2015 www.durhamoktoberfest.org.uk

This year’s Gold Sponsors are:

This year’s Silver Sponsors are:

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High flyer on the Cloud

Phil Cambers and friends keep their feet on the ground as their fortune grows in technologyâ&#x20AC;&#x2122;s bright new yonder. Brian Nicholls reports

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Some entrepreneurs may sometimes feel their fates rest with the stars, others that they’re swept on the wind. Phil Cambers and his three fellow venturers have their feet firmly on the ground though, and the only time Cambers’ thoughts are nearer the clouds is when navigating his model aircraft above The Links near home at Whitley Bay. A head in the Cloud, though – that’s different, something the four creators of Cramlington based SITS Group thrive on. Seven years in business together has swept them to a £6m a year turnover, a workforce of 28 and the achievement of never having lost a client. Whereas 60% of their clients were in the North East of England initially, about 60% are beyond today – in Aberdeen, Edinburgh, Manchester, Leeds, Birmingham, London and Cumbria for example. Beyond that too, the workload now takes them to Germany, Italy, South Africa, Australia, Angola, Nigeria, Sweden, with 70% of all business coming from private sector organisations. This must be one of the more fruitful outcomes of any stag evening, for that’s where their start-up germinated. The four friends and solidly experienced IT practitioners, then in a 30 to 41 age group, talked the whole thing over enthusiastically around eight years ago on the busy terrace of Café Mambo restaurant and bar, on Ibiza’s celebrated San Antonio sunset strip. “There we were, mulling it over, one salesman and three techies wanting to start our own business,” Cambers explains. “We were all very different, still are, yet still complementary. That’s why it works so well. We couldn’t have started without each other. We’ve never fallen out. We still share a beer. We’re very close. That stability’s very important.” Russell Henderson, the celebrated “stag” of the evening, has since done much in building the SITS team of consultants, and the product portfolio of market leading solutions. Paul Rutherford had, even then, more than eight years’ IT experience to contribute, and today controls operations, including human resources, health and safety, facilities management and back office process and communication. He previously worked for big hitters: Nissan,

BT Global Services, Home Group, Sage and Komatsu UK. Paul Watson, who’d earlier fulfilled various architect and senior consultant roles for SCC, the Department for Trade and Industry and Fujitsu, is managing director, executively responsible for strategic direction. They, then, were the techies, Cambers the sales specialist. “I’ve always liked people and have been good at talking as you probably gather,” he suggests. “Sales isn’t about talking, though. It’s about listening. I talk but I’m also a very good listener. I can’t sell to someone unless I’ve listened to what they need.” Having more technical staff than sales people accounts for SITS’ customer retention, he thinks: “We’ve a real technical dedication. Our customers aren’t let down because we’ve the right amount of resource to deliver.” In 2011, they saw a market gap in network and telephony solutions. “Rather than bolt networking onto our core competency - the antithesis of the specialisation we believe in we set up Pivotal Networks.” Already Pivotal Networks contributes over 16% of the income. Much progress achieved so far is attributed to IT having become very competency driven. “Customers in 100 seat-plus organisations no longer want to work with a generalist,” Cambers states. “They want a specialist in their particular field. For us it’s private Cloud – virtualisation. “We’ve stuck to our knitting, resisting any temptation to diversify. Ten or 15 years ago clients wanted one bum to kick, one throat to choke. But if you have to kick a bum or choke a throat you’ve picked the wrong supplier. Now, whereas IT managers and businesses once thought the burden of managing several suppliers, several specialists, quite onerous, they’ve found that employing dedicated specialists to do specific tasks gets the job done properly first time, to budget and without any messing about. SITS also subscribes to “co-opetition” – “bit of a naff word,” Cambers admits, to describe co-operation and competition with other companies but without the competition being direct. “Some IT companies get very twitchy about recommending other IT firms to clients.

Even though they couldn’t properly do some aspect of the work themselves they’d have a crack at it for fear of losing the client. We, however, are comfortable with introducing other specialist organisations into our client base. “We don’t want to be all things to all men. That’s why SITS Group and Pivotal Networks are as they are. Of course, though we focus on a core area, that policy for SITS Group and Pivotal Networks fixes many problems. Ask an IT manager for 10 things keeping him awake at night; our solution fixes may be seven or eight of them.” Whether or not that explains the success formula totally, it does win clients such as Banks Group, ISOS Housing, Aesica Pharmaceuticals, Unipres, Port of Tyne, and law firms such as Bond Dickinson, Muckle and Sintons. Then there’s the Premier League. “What’s a little company in Cramlington doing working with the Premier League?” Cambers asks rhetorically. “You get deals like that by

‘We’ve never put our hands up and said we need money. We’ve always done things on our own merit.’

The job in hand SITS Group provides Cloud solutions for both public and private sector clients, with the balance 70% on the private sector side and most of all business coming from referrals. It provides all aspects of Cloud computing from virtual desktops and server consolidation to Cloud management and disaster recovery, linking single or multiple sites together, and giving the clients centralised access to corporate data. Besides designing, installing and managing networks for companies, it troubleshoots among existing infrastructure.

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specialising. It sounds glib, but you get it by being very good at what you do because they want a specialist. They’re a multi-billion pound organisation. They employ only 100 people. But they won’t compromise on quality. “They were looking for trusted and safe hands that had won awards through VMWare, the company whose software powers the Cloud. We’re just such an awards winner. Against stiff competition, we came across well with the head of IT there. There aren’t that many of us to make up a beauty parade – few out and out true virtualisation specialists. Our competition’s in the South. In the North East only broadline organisations do what we do.” Despite his fervent spread of the Cloud gospel, Cambers didn’t intend to excel in IT on graduation from Leeds University. Born in Newcastle, he’d attended Mile Castle First School, Chapel House Middle School, then Ponteland County High, and he – after reading media and history at Leeds – aspired to journalism. But Leeds area offered him no such opening then. So he found a job co-ordinating the engineering in IT. It was to have been stopgap, but he took to it “like a duck to water”. Sphinx CST distributors liked him, fast-tracked him into managing 25 field service engineers and four call co-ordinators at Maidenhead. After four years with the firm, and many road miles commuted between Leeds and Maidenhead, he was moved to sales and again excelled. After eight years away, Cambers hankered after his cherished North East. Five years back subsequently with a local IT reseller equipped him for the SITS challenge. SITS has in fact a fifth key player: non-executive chairman Geoff Hodgson who claimed jokingly to have been SITS’ “raffle prize”. But the management seriously acknowledge Hodgson’s presence as invaluable. His involvement began after the firm won a start-up award with a prize of free advertising and a short-term mentor. Hodgson was the mentor. Cambers says: “Because Geoff doesn’t understand IT to the extent we do, it’s a benefit. He brings us together, has a few more grey hairs than us (he won’t mind me saying)

‘Ask an IT manager for 10 things keeping him awake at night. Our solution fixes maybe seven or eight of them.’

Stag night success: The SITS management team – “all very different yet still complementary” and provides a bit of questioning. A board of directors may sometimes not question itself enough. And his eclectic business background brings the party many benefits.” Hodgson indeed has sold and marketed for Procter and Gamble, Diageo and Coca Cola, was sales and marketing director for Newcastle Breweries and chief executive of the Federation Brewery. He has started and sold businesses, including Northumbrian Taverns, and has held non-executive roles with One North East, North East Tourism Board, Universal and Newcastle Building Societies and BE Group. As chairman of North East Access to Finance (NEA2F) he knows well the support available to small and medium size businesses of the region. SITS has moved offices six times, always for more space. Four moves were at Quorum Business Park and two have been at Northumberland Business Park, where SITS has bought its property for the first time (5,250 sq ft), following a successful application for £120,000 to the regional Let’s Grow Fund, which now obliges SITS to create 12 more jobs. Hodgson’s experience in estate matters enabled the directors to concentrate on the day job. “We’ve never put our hands up and said we need money,” Cambers stresses. “We’ve always done things on our own merit, such as creating 24 jobs already in a tough economic climate over seven years. That has taught us the value of making every penny, every pound a prisoner, which serves you well

in good times too. Having had Hodgson point out the advantages of grants, SITS was able through Gladman Developments to buy free of financial pressure. “We should be able to get another 30 staff into this building,” Cambers estimates. A regular cyclist to work, Cambers occupies a desk beside a window, where he can spot unusual aircraft over Newcastle Airport. “I’d be pretty one dimensional and boring down the pub if all I talked about was IT,” he laughs, explaining his passions for planespotting, model building, and hooking salmon and sea trout on the Till. It was the Northumbrian coast he missed when working away, having been taken to his parents’ caravan at Bamburgh since he was nine months old. Now he and his partner Karolina can take their two children – Jacob, aged three, and Camilla, four months old – anywhere up the coast at any time. Back at the office, the writing’s on the boardroom wall – but in the form of beautifully scripted tributes from clients. n

Clouded reservations Despite Cloud’s rising popularity, end users still have concerns – about security, privacy and lack of control. This must be countered by a responsible, accountable and transparent industry, the Cloud Industry Forum says. Its research among 250 senior IT and business decision-makers from both the public and private sectors in the UK, found security and data privacy still concerning many end users. The Forum and Cobweb Solutions found the following trends: • Cloud adoption among UK businesses stands at 84% with almost four in five Cloud users having two or more Cloud services - up 8% from 2014. • Some 50% of businesses expect to move their entire IT estate to the Cloud “at some point” - 16% as soon as practically possible. • 12% of businesses not using Cloud services expect to do so by 2016. Applications set to show the biggest increase in Cloud based adoption include CRM, disaster recovery, data storage, email and collaboration services.

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Bridging the skills gap

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Courses in the real world Games development is an important industry in the North East and the region is at the forefront of developing skills and training to meet the sector’s needs as Peter Jackson reports Sunderland College is introducing a new course from September to train people in games and animation, while Newcastle-based games developer Ubisoft Reflections is leading the development of a new apprenticeship. Sunderland College is one of a number of colleges but the only one in the North East to introduce the new Level 3 Diploma in Games, Animation and VFX Skills. The course is the first to be launched by NextGen Skills Academy - an organisation backed by both government and industry funding - with its partner awarding organisation AIM Awards. The diploma will provide a level 3 qualification, which is equivalent to three A Levels. It is intended that, as well as the delivery of relevant and up-to-date course content that has been written by industry with the aim of replicating the real-world work environment, students will have access to industry mentors and industry-designed live briefs, set and assessed by a group of companies from the sectors being studied. Over two years, students will build portfolios relevant to industry needs and as preparation for either working in these sectors or as a

progression to higher education or higher apprenticeships. In addition to the Games, Animation and VFX Skills Diploma, NextGen is supporting a selection of industry partners in the creation of three higher apprenticeships which have been approved for development: one role in games and two roles in VFX. The games apprenticeship is with Quality Assurance Technician, led by Rebellion (with a further role of Community Coordinator, led by Ubisoft Reflections proposed for future development). The two VFX apprenticeships are junior 2D artist, led by Double Negative and assistant technical director, led by Framestore. Giselle Stewart, director, UK Corporate Affairs at Ubisoft says: “We’re proud to be part of an incredibly robust community of developers in the UK. Initiatives like the Level 3 Extended Diploma in Games, Animation and VFX Skills provide an accessible point of entry into the industry for future generations of talent and we’re looking forward to seeing a diverse range of applicants as a result. “The growing UK games industry offers a broad range of career paths from design and production to lesser known but equally as vital community management roles. The course is the

first of its kind to be built and endorsed by the industry with a view to supporting future games industry professionals within these skill areas and the whole process has been seamless and well-supported by the Next Gen Skills Academy throughout. The fact that it has taken just one year between inception and the start of the course is nothing short of remarkable.” A higher apprenticeship offers a work-based learning programme, which combines on the job training with studying for high-level qualifications, allowing employers to create a skilled workforce that is ready to meet the future demands of the business. “NextGen’s aim is to be a leading developer of relevant, up to date qualifications and apprenticeships that will allow young people to develop exciting careers in the digital creative industries, while also providing employers with a dynamic talent pool of skilled individuals that will enable them to grow successful businesses,” says Gina Jackson, managing director at NextGen Skills Academy. “This is all about preparing students for the roles that employers are recruiting today and it’s very exciting to see the first round of our hard work come to fruition.”

Small parts, big economic boost Producing small parts that provide a big boost to the North East economy, Nifco is a manufacturing powerhouse that’s success shows no sign of slowing. With two brand new facilities in Eaglescliffe, Teesside, Nifco has created hundreds of jobs over the last few years, and many more are planned long into the future. The company produces plastic components used in the engines, interiors and exteriors of cars made by Ford, Honda, Jaguar Landrover, Nissan, Toyota and Vauxhall Opel and, with an order book that is full for the next five years, the business will continue to put North East manufacturing on the map for many years to come. For more information about Nifco and opportunities at the company, visit www.nifcoeu.com or call 01642 672299.

• www.nifco.com • www.nifcoeu.com •

Global Functional Plastics

BRIDGING THE SKILLS GAP bqlive.co.uk

Relaxed approach pays Coast and Country does not only supply social housing, it also provides skills, as Peter Jackson reports Steven McCorry, who is profoundly deaf, had been out of work for more than five years and found it difficult to gain work experience. But then he discovered housing association Coast & Country’s Journey into Work programme. McCorry, from Dormanstown, attended Work Hubs, part of the Journey into Work scheme, and was referred to Forging Futures, a training opportunity which is also part of Journey into Work, designed to develop skills and confidence and that also offers a chance to take up a paid work placement with Coast & Country and other employers. Since then he has been working as a labourer on the Crown House project and at community centres around the area. Crown House in Middlesbrough, the former DSS office, is being brought back to life as part of the Boho 6 Middlehaven Waterfront mixed use regeneration project, with Coast & Country’s Empty Homes scheme playing a role. Emma Tooth, community investment officer at Coast & Country, says: “Steven is doing very well in his work placements, acquiring valuable experience and skills and gaining in confidence. “This is a fantastic example of three of our innovative schemes working together for the benefit of an individual and the wider community.’’ Journey into Work was set up in 2009, since when it has given help to some 5,000 people and has helped more than 1,500 people into work and has provided training to about 3,500 people. It operates largely in Redcar and Cleveland where the association has about 10,000 homes and about 13,000 tenants. Coast & Country’s Journey into Work initiative comprises a package of measures that the association has developed to help people find work, volunteering or training opportunities. It offers advice on employment and training opportunities from assistance with writing a CV to tips on interviews. It also offers job clubs and appointments with advisors. Its Tenant Resource Centre at Westfield Farm in Dormanstown provides free training opportunities, a free IT suite and help and

Steven McCorry support to assist people back into work. It offers at least two free courses every month aimed at supporting people into employment. Among the most popular courses are food hygiene, first aid training, horticulture and Site Safety Passports or CSCS card training. For those wanting to start a career in construction, Coast and Country’s Barn training courses equip people with skills in tiling, painting, plumbing or plastering, as well as basic DIY skills. Tracy O’Neill, director of customer services, explains: “Westfield Farm is the hub of all our activities around improving skills. It’s a lovely relaxed environment, it’s not like walking into the Job Centre.’’ Coast and Country also works to provide younger people with skills. As a partner in Trust 4 Learning, it delivers extra-curricular activities to students to help them better understand the world of business and employment, supporting their future career choices. And its STAR programme is designed to tackle unemployment at an early age. Working with young people from year nine upwards, the programme focuses on laying foundations for the world of work. The association’s Journey

into Work Fund can provide some help to pay for items necessary for finding work, such as interview clothing, tools, insurance, transport and a variety of courses. Coast and Country has also joined Give us a Chance (Guac) a group of more than 45 housing providers which has been formed to help get people back into work and to lobby the government. Why did Coast and Country set up Journey into Work? O’Neill explains: “It answers one of the main priorities for our customers. If you’re in social housing you’re 50% less likely to be in employment. It makes good business sense for us. We have 12 wards in the most deprived super output areas [on the indices of deprivation] and we needed to do something to narrow that gap.’’ She adds: “We find people don’t just need help with getting into work, they need help to become digitally included, help with money advice, it’s a multi-faceted problem and you have to provide a range of services to people. “People who want a job will go to a job centre, people who want training will go to a college. We need to take these services out to people’s communities, so Work Hub is a pop-up service we provide in libraries or our own locations with somebody providing money advice, somebody who can provide digital inclusion support and someone who can help plan a CV. They get signposted from there onto the training that they need and hopefully into jobs.’’ Coast and County also has a long-standing apprenticeship programme with up to 30 apprentices at any one time in areas from housing to IT and from heating to horticulture. “We spend £180,000 every year on apprentices,’’ says O’Neill. “We don’t just take apprentices, they have mentors and they do team building and we let them manage budgets and they put on events for the company. It’s very important to us and it’s linked to our belief that young people deserve a chance but it makes good business sense in terms of succession planning and we have an 89% retention rate in terms of our apprenticeship programmes.’’

Creating Outstanding Futures Apprenticeships with East Durham College Why choose EDC: Expert staff with up to date knowledge, skills and experience Professional recruitment service structured around your business needs Outstanding practical training facilities Flexible delivery to suit your business

Our priority is to provide capable and committed apprentices who can help to drive your business forward.

To find out more or to arrange a tour of our outstanding facilities, please call 0191 518 5587 or email emma.norbury@eastdurham.ac.uk

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Doors open on a £20m STEM Centre opportunity College raises the bar in helping companies to find and encourage the right candidates to be trained up for the future workforce. Peter Jackson reports Within weeks the doors will open on a new £20m STEM Centre at Middlesbrough College to provide training in science, technology, engineering and maths. The college says that the centre has been designed by industry for industry and boasts a genuine industrial environment which is the only one of its kind in the North East. The centre will offer bespoke training to those already working in industry and experts will also train a new generation of apprentices. Middlesbrough College is already a leading provider of apprenticeships in the Tees Valley but it intends “to raise the bar’’. Andy Buckworth, executive director of STEM, says: “It’s a proven way of helping someone learn a skilled trade, and many companies and learners qualify for financial help when taking on an apprentice. “At Middlesbrough College, employers are guided through every step of the process – from recruiting the right candidate to making sure they receive the right training.” The college has established relationships with companies across the North East and says it is geared up to make the process as smooth as possible for employers and apprentices. The college team has more than 10 years’ experience of providing apprenticeship training. Those businesses which are struggling to make ends meet right are also urged to consider apprenticeships. Buckworth adds: “Even in difficult times like these, apprenticeships are a vital way of improving the skills of staff and generating a committed and valuable workforce. “When times are tough, competition for contracts is even tougher. “That’s when a keen and motivated extra pair of hands could make a real difference to

your chances of success for now and the long term future. “Apprentices can also help your businesses to be ready for when the economy comes out of recession. “By offering a flexible resource that can help your business grow, apprentices can also give you a competitive advantage to exploit new business growth opportunities.” n

Now is when an extra pair of hands could make a real difference to your chance of success both now and long term Andy Buckworth

PROFILE KF Training

Sara O’Brien, Commercial Director at KF Training, looks at the challenges of addressing the region’s skills gap and why she thinks investing in young talent isn’t the only option “We hear so much about the skills gaps which we know exists across a number of sectors in the North East and we also know many of our businesses have an ageing workforce. The emphasis, as a result has been to focus on apprenticeships as a solution to those problems. What is often forgotten are our existing workforces, regardless of age. They play a vital part in helping us bridge those skills gap and investing in their development to pass on to the younger workforce is paramount. We must place more emphasis on encouraging businesses to invest and upskill their current workforce to meet the strategic needs of the future of their business. Young people who are recruited on any work-based training programmes aren’t going to change your

company’s success overnight - they’re for the future, a crucial part of your succession planning agenda. By also focusing on development of your existing people alongside recruiting apprentices, you will almost certainly speed up the process and drive down the skills gaps in your business faster. Look at the employees you have, invest in them so they have the skills needed to replace your more experienced workers year on year. They are the ones who will effect change in your business far more quickly, driving forward your business and boosting our regional economy resulting in job creation and a thriving region. That’s why KFT’s dynamic approach introducing innovative solutions meeting business priorities and challenges form an integral part in the success of the future of our clients.

Call us on 0191 5186830 email info@kftraining.co.uk

BRIDGING THE SKILLS GAP bqlive.co.uk

Forgotten job option must be rescued Penny Marshall, director of ICE North East, says that we need more trained engineers and her organisation is doing its best to ensure we get them, as Peter Jackson reports Asked if there is currently a problem with a skills gap, the reaction of the Institution of Civil Engineers’ Penny Marshall is: “There is going to be a problem.’’ She explains that, as the economic recovery gathers pace and new infrastructure programmes - such as HS2 or another Crossrail or airport expansion - are rolled out, the UK will need “a significant number’’ of new civil engineers. Marshall also points out that civil engineering is a global industry and that people sitting behind desks in Newcastle are designing infrastructure for the World Cup in Qatar or railways in India. “Part of the problem we have at the moment is that there is a bit of a hole in the 14-year-old to 19-year-old demographic with a big drop in the birth rate between 14 and 19 years ago and we are in competition with lots of other industries that are also seeing growth for a limited pool of young people,’’ she says. A further demographic time bomb lies in the fact that nearly a third of the profession is staffed by baby boomers who are due to retire in the next five to ten years. “So, we have lots of people falling out at the top and not many coming in at the bottom,’’ she adds. “We are appropriately resourced at the moment but that’s not going to be the case for much longer. “If we don’t start training people now we are not going to have people skilled and ready to deliver all of these projects in the UK and across the world. The whole of the infrastructure programme globally requires a step change in the way that we recruit engineers.’’ Marshall argues that the country must improve its record in offering apprenticeships and return to the situation of 10 to 20 years ago where companies recruited apprentices every September as a matter of course.

“This is partly a result of the recession,’’ she says. “One of the first things businesses cut are apprenticeships - `we don’t need more people, we can’t afford to train people’. We need to turn that mentality round and say what we need now is new blood and lots of new people and if we don’t train them now there isn’t going to be anybody here in 10 years.’’ She also points out that just 19% of professional engineers coming through are women, whereas 52% of the population are women. “We are missing out on a huge proportion of the talent and we have to fish in the whole of the talent pool,’’ she says. ICE is working hard to do that. For example, on Women in Engineering Day, Marshall was working with eight schools in the region. “But the scale of what we need to do is huge to get the message across to every young woman in every school in the North East,’’ she says. ICE’s own research shows that the most influential people in young women’s career decisions are their mothers, so the profession needs to find ways of convincing mothers of some of the great career opportunities for women in civil engineering. ICE has also developed a Civil Engineering Badge for the Brownies as part of its engagement with the younger age groups. “If you go into primary schools, kids will tell you that they like maths and science and if you go to a crèche the girls will be playing with the Lego and the building bricks but something goes wrong further along the line and what we want to do is provide an offer that interests and enthuses everybody.’’ Marshall bemoans a decline in careers education which means that civil engineering is not sold as a career option to young people. ICE also works with Stemnet, the Science,

Technology, Engineering and Mathematics Network and sends ambassadors into schools. Last year ICE engaged with 5,000 young people in the North East in the sense of a civil engineer having a conversation with a young person about the profession. “We think that’s the best way to do it, we want to get our young engineers talking to young people in schools,’’ says Marshall. “We also work with FE colleges and universities, it’s about capturing people at all stages of their education.’’ She emphasises that young people can enter the profession at many levels: they can leave school at 16 and get an apprenticeship, which doesn’t preclude them from becoming a chartered engineer, of the same status as someone who went to university – but without a £30,000 debt. “We are offering routes through to chartered engineer status in all kinds of different ways. You don’t have to do A-Levels and go to university to get to the top of the pile,’’ she says. “University is the right route for some people but it’s not the only route. “You can start earning at 16, you can go and do Level 3 qualification at college and go on and do an HNC and you can do these things part time and earn and learn at the same time. A lot of companies – particularly contractors – prefer that because they have young people who become useful very quickly. “Engineering is a great career and the problem is that too many people don’t know who we are and what we do and that’s what we’ve got to redress.’’

PROFILE PD Ports

On the right track for the future PD Ports positions Teesport as the Northern gateway for containerised goods destined for the north of the UK. ‘We are delighted to be working with PD Ports on this innovative and dynamic offering to the Intermodal market’ Les Morris, Head of Sales at DB Schenker Rail UK

Geoff Lippitt, PD Ports’ Business Development Director PD Ports’ vision for a fully joined up freight and logistics strategy took a big leap forward in March as the government pledged to back a truly multi-modal future for the UK freight sector. The recent Whitehall announcement regarding the establishment of Transport for the North (TfN) is a welcome commitment to the future of freight and logistics strategy across the proposed ‘Northern Powerhouse’. It is also particularly welcome for PD Ports as it reinforces the Company’s growth strategy to enhance Teesport’s transport infrastructure network and position the Port as the northern gateway for containerised goods destined for the north of the UK. PD Ports’ recent investments to further improve freight movements include an investment of £3M in Teesport’s new intermodal rail terminal that became fully operational in November 2014. This follows on from the £16.7M container terminal expansion in 2011. Promoting a more joined up and coherent approach to road and rail freight has long been a core principle of PD Ports, focusing on intelligent transport solutions for customers via its tried and tested portcentric logistics model. In simple terms portcentric logistics means bringing goods into the country closest to their final destination.

PD Ports recently collaborated with DB Schenker Rail UK in a completely new offering for the market, believed to be the first time that a port and rail freight operator have partnered to serve the Intermodal sector. From August 2015 DB Schenker Rail UK will run a direct daily containerised traffic service (Mon to Fri) from PD Ports base in Teesport to Mossend and Grangemouth in Scotland. Les Morris, Head of Sales at DB Schenker Rail UK, said: “We are delighted to be working with PD Ports on this innovative and dynamic offering to the Intermodal market. We have worked closely with PD Ports to bring this service to fruition which will transport goods directly from Teesport to Scotland. This is an excellent example of how logistics companies can come together to provide bespoke solutions for our customers.” For PD Ports this direct connection to Scotland is a major boost to the Company’s transport infrastructure network, with direct benefit to shipping lines and intermodal customers, the deal is a clear statement of intent for its continued investment in intermodal logistics, with rail a key priority. Having rail at the heart of a modern portcentric approach, not only does the ‘heavy lifting’ for distribution cross country, it also brings

measurable socio-environmental as well as economic benefits. The new rail terminal also operates services between Felixstowe and Southampton with rail freight provider, Freightliner. Opportunities for the establishment of further new routes to the Midlands and the North West are expected in line with market demand. Geoff Lippitt, PD Ports’ Business Development Director, says: “We have invested significantly in expanding the intermodal services available at the Port which enables us to provide a greater level of service options, as well as improving our portcentric capability for our customers. “There has been a significant amount of press coverage lately centred round a better connected north including greater use of our rail network and waterways to move goods around the country. Our facility at Teesport has the potential to further attract logistics activity to sites with efficient low cost transport networks and we will continue to work hard to see this come to fruition. “We will continue to put freight and logistics at the core of the PD Ports offering and look forward to ongoing government focus and backing for a more interconnected transport infrastructure continuing to support our vision,” concluded Mr Lippitt.

For more information call 01642 877000 email enquiries@pdports.co.uk, visit our website www.pdports.co.uk or follow us on twitter @pdports

ENTREPRENEUR bqlive.co.uk

Lorna lays a good food trail Lorna Jackson’s championing of the market stall brightens seaside and industrial town alike, as Brian Nicholls explains You had to think the worst when even McDonald’s pulled out of Stockton’s famous High Street after 22 years, and when a national organisation estimated one in four shops in the town stood empty. This image, as recently as last September, had representatives of the borough council promptly declaring the scenario unrecognisable. No matter the riders of having the fifth highest rate of empty shops in Britain; of at least doing better than Hartlepool (claimed to be least successful in Britain at securing occupants for its shops then); or that Stockton actually had – the Local Data Company conceded – improved the shop filling position by 2.4% over a year. Stockton, the town with Britain’s widest high street - and enjoying another survey’s conclusion that it has one of the area’s top 10% of local authorities at engaging in business - did right to question accuracy of the retail analysis; often situations like this change even as statistics are being compiled. Stockton could and did point out how the number of new businesses setting

up, together with the findings on its ability to do business, reflected by contrast, “a massive vote of confidence”. Castlegate for example, one of its two main shopping centres, was already 96% let. Meanwhile a massive £38m injection of redevelopment and refurbishment for the town centre, under a five year plan - £20m of it for the High Street - has also been making impact. One of the outstanding resources for Stockton’s recovery is, of course, the people – people like the enterprising foodie Lorna Jackson, who has consciously or otherwise, taken a leaf out of Mary Portas’s recipe book for high streets’ renaissance. Having successfully organised a farmers’ market in the lovely old Victorian seaside resort of Saltburn a few miles away, she has introduced the same asset for Stockton – and annual food festivals too. Her research suggests the two attractions together bring around £660,000 into Teesside’s economy. With 20 markets a year held at the two venues,

“I honestly can’t take on any more but will consider further ventures when the girls are a little older “

Saltburn’s average of 35 traders make around £600 of sales each through 10,000 or so people attending, while Stockton’s 20 traders draw slightly less. In addition, the regular food festivals she organises feature around 70 traders each making average sales of £800 – generating an extra £56,000 of value for local residents and businesses. As these figures refer only to the markets and festivals, it can be assumed that thousands of visitors actually create a wider annual economic impact – more than £1m through the farmers’ markets.

ENTREPRENEUR bqlive.co.uk

Lorna’s lovelies Lorna, can you recommend for BQ readers an unusual local cheese? “Cotherstone - mild flavoured and buttery.” Any other little titbit you’d like to suggest? “Harissa paste made by Bracken Hill at York, a family firm which has been in business 11 years and specialises in making award winning preserves. The mild North African spice harissa transforms the most ordinary dishes. Work it into sautéed potatoes and French beans, for example.”

ENTREPRENEUR bqlive.co.uk

“We want to encourage people to have an appetite for good food. We’re succeeding at that”

All the organisation needed sounds taxing enough. But in addition Lorna, a 42-year-old mother of two young children, is also a handson co-director of the family owned Real Meals Café and Delicatessen, on Milton Street near Saltburn railway station. A local lass, educated at Huntcliffe School, Saltburn, then Sir William Turner Sixth Form College, Redcar, Lorna went on to study ecology at Liverpool University and later became a farm manager at White Waltham near Maidenhead in Berkshire. Her experience there, coupled with childhood memories of her mum, Sheila Beswick, cooking and working in the garden, drew her back to the North East where Sheila, 65 now, and Lorna’s stepdad Tim, 68, had set up Real Meals 17 years ago on taking early retirement from teaching. One day a local resident suggested a regular food market for Saltburn. Instead of seeing this as potential competition for the family business, Lorna considered it a potential propagator of locally grown food, enticing enough to bring many more visitors into the town. Using her contacts with producers from a 50 mile radius, she set about instituting the market seven years ago. Two years later she took up Stockton Council’s invitation to establish the Stockton market, and last year the Saltburn

Big BID for revival Aside from the nation’s economic downers generally, Stockton’s famous High Street lost lustre as edge of town developments such as Portrack and Teesside Shopping Parks sprang up. But, thanks to street performers, other entertainers and many enterprising individuals like Lorna, the town centre is regularly thronged with people again. It benefits from attractions like Stockton International Riverside Festival and Stockton Weekender festival. The town has also benefited generally from having won a national Best Love Your Local Market Event award; from its Preston Park reaching the final of a Museum of the Year award; and from winning a gold award as a Champion of Champions in Britain in Bloom. Now one of the most promising initiatives yet is under way to stimulate town centre business. Unlike their peers in Middlesbrough, business leaders in Stockton have taken up the idea of a Business Improvement District (BID), such as has already brightened central Newcastle and many other cities and towns throughout the country. Jemma Radestock, manager of the town’s Marks and Spencer store, is chairing a steering group of around 20 local businesses and the local authority. She’s supported by deputies Janice Auton (Poppys Hairdressing) and Helen Simmons (Hewitts Solicitors). They recently appointed a BID co-ordinator to contact local businesses and consider their priorities, then use this information in forming a BID proposal and business plan. Jemma says: “With works to improve the town centre now complete this new initiative could not be more timely or relevant to the businesses in town.”

venture was a finalist for national title of Farmers’ Market of the Year. It’s believed it brought 100,000 more visitors to the town last year, and there is now a waiting list to trade there. Saltburn Market has 35 stallholders and a waiting list that would only end if the local authority agreed to close the road on market days. Meanwhile Real Meals enjoys £180,000-a-year turnover and employs 11 staff. Lorna’s confident the Stockton enterprise, too, will double in size before long, especially as supermarkets have been losing appeal and shoppers show growing preference to buy local produce. Will she accept invitations received to open other farmers’ markets? She’s been invited to do so in Thornaby, Whitby, Danby, Guisborough and Loftus. “I honestly can’t take on any more but will consider further ventures when the girls are a little older. I only like to do things if I can do them properly,” she says. Younger brother Dan Jackson, 36, helps run Real Meals. Lorna’s daughters Eirinn, 11, and Florence, six, sometimes help on market days, while Lorna’s partner Craig Hannaway, 45, often sells from the 60 varieties on the shop’s cheese counter. These come in equal proportion from the North East, Yorkshire and elsewhere in Britain. Lorna finds there’s little the region doesn’t produce now in artisan lines, from the cheeses to breads, preservatives, organic meats, pies, pates, free range eggs, chutneys, seafood, spirits, cereals, cakes, biscuits and real ales. But vegetables, butter, cream and fresh milk could be better represented. Using local produce whenever possible, Real Meals also prepares on the premises. It roasts its own Yorkshire beef, pork and poultry, makes its own pies and bakes its own cakes. A range of imported goods from Africa, France, Spain and Italy also feature, the latter including handmade pastas. For many visitors a shopping expedition with offerings like these adds to Saltburn’s original charm as a Victorian seaside resort with pier, the colourful Italian gardens and walks through Riftswood. Saltburn market takes place (9am-3pm) on the second Saturday of each month. Stockton’s takes place on the last Saturday of each month except August and November on the High Street (9am- 2pm). Saltburn’s latest Food Festival was taking place on 2 August. “I love running both the markets and the deli,” Lorna says. “We want to encourage people to have an appetite for good food. We’re succeeding at that.” n

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PROFILE HAY & KILNER

Implications of the Small Business, Enterprise and Employment Act The Small Business, Enterprise and Employment Act became law on 26 March and brings significant changes to the disclosure requirements of private companies, as well as altering the position of both corporate and shadow directors. KEY CHANGES TO CONSIDER New PSC Register – People with Significant Control From January 2016, companies will be required to complete and maintain a new public register, setting out those persons with “significant control” over the company, and this will need to be filed at Companies House from April 2016. The register is to include personal details (name and address, date of birth), the date on which that person became registerable (i.e. obtained significant control) and the nature of their control or interest in the company. What is meant by “Significant control” is, broadly speaking, those having (either alone or jointly with others): • More than 25% of a company’s shares; or • More than 25% of the voting rights; or • The rights to appoint, remove or control the majority of the board of directors. It also includes those who have the right to exercise “significant influence or control over the company”. Quite what is meant by this is uncertain and will no doubt be addressed in the supporting guidance and be the subject of expert discussion. The spirit of the new register is, however, clear – companies are to disclose who owns and controls them, including whether this is through a trust, nominee agreement or shareholders agreement. It is quite likely that many of these existing arrangements / agreements were intended to be private, so companies will need to consider any implications of this register. ANNUAL RETURNS AND COMPANY BOOKS Companies will no longer need to file annual returns as of April 2016. Instead, companies are to provide a confirmation statement to Companies House affirming that they have delivered all information required for the preceding year (which will include details of any change to their registered office or the

bearer shares have 9 months to surrender these for conversion into registered shares. Any bearer shares not surrendered will need to be cancelled by the issuing company. CORPORATE DIRECTORS AND SHADOW DIRECTORS The Act requires all directors to be natural persons. From April 2016, no new corporate directors can be appointed, and after the transitional phase of a year, any remaining corporate directors will be automatically abolished. This will impact particularly heavily on group companies, dormant companies and those used by trusts. There may be some limited exceptions, which are currently being debated in a Government consultation process. Finally, the general duties of directors will now also apply to shadow directors. Jonathan Waters, Corporate Partner at Hay & Kilner

‘Companies will no longer need to file annual returns as of April 2016. Instead, companies are to provide a confirmation statement to Companies House affirming that they have delivered all information required for the preceding year.’ Jonathan Waters, Hay & Kilner

POINTS FOR COMPANIES TO CONSIDER: • Implications of the new PSC Register – all persons with significant control will need to be publically disclosed, regardless of whether this is set out in a previously private agreement. • Bearer shares – these will need to be surrendered by holders within 9 months of implementation. Otherwise, companies will need to apply to court for cancellation. • Corporate directors – these will be abolished from April 2017 and companies will need to ensure that suitable replacements are appointed if appropriate. • Shadow directors – will also be subject to the general duties of directors.

company registers). Also from April 2016, companies will have the choice of alternate record keeping, so instead of housing the statutory registers in company books, companies can keep the information at Companies House. This change will no doubt make life easier for many companies. For further information, please contact Jonathan

BEARER SHARES The Act abolished the issue of new bearer shares with effect from 26 May 2015 and holders of existing

Waters, Corporate Partner at Hay & Kilner Call: 0191 232 8345 Email: Jonathan.Waters@hay-kilner.co.uk

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COMMERCIAL PROPERTY £2.95m deal secured Buccleuch Property has sold seven floor Collingwood House (above), in the heart of Newcastle’s commercial district, for £2.95m to a syndicate client of chartered surveyors Edwin Thompson. The property earns rental income of around £268,000 a year (net initial yield 8.6%). The building, opposite St Nicholas Cathedral, was acquired by Buccleuch Property in 2000. Naylors acted for Buccleuch Property, Edwin Thompson for the purchasers. Another city centre sale has involved New England House with its retail and offices near Haymarket Metro station. Bilfinger GVA, for clients of LaSalle Investment Management, sold a long leasehold interest in the property for £2.518m (net initial yield 8.93%) after deducting purchaser’s costs. Tenants include the Secretary of State for Defence and Reed Recruitment. Luke Symonds, senior investment surveyor at Bilfinger GVA says: “Well located offices providing flexible space are seeing strong demand in Newcastle.”

The property earns rental income of around £268,000 a year (net initial yield 8.6%)

Scramble for space at NETPark Businesses are queuing for space in the new £13m expansion of North East Technology Park, (NETPark) in Sedgefield, before it is even built. The new Explorer development will bring around 800 jobs in construction and eventual occupation. The expansion will support scaling-up of firms already established at the park managed by Business Durham, the economic development company for County Durham. Among those keen to move into one of six units there is IBEX Innovations, originally a virtual tenant at NETPark. It produces advanced x-ray detectors giving high-resolution capabilities and fast capture times at far lower doses of radiation than the average technology. It serves medical, food and industrial imaging industries, and benefits range from causing fewer harmful radiation effects for patients to being able to spot tiny foreign objects in food. The park’s expansion is part of a 10-year strategy to become a global hub for materials integration. This could create at least 3,000 jobs and add another £400m to the region’s GVA. NETPark is already at 95% capacity. Explorer, due for completion in 2017, will create 51,000 sq ft of grow-on space, offering between 3,500 and 5,000 sq ft. Other firms already thriving at NETPark include Kromek, which makes and integrates cadmium zinc telluride into products such as airport scanners, and PolyPhotonix, which has developed a sleep mask to treat diabetic retinopathy.

office parks at Durham and South Shields – on (18,885 sq ft). The park was acquired for £1.2m Mandale Business Park and at Market Dock. (net income yield 10.33%). DTZ represented the Mandale is a multi-let office investment in 12 vendor on South Shields, City & Northern. buildings (52,039 sq ft). The £5.25m price DTZ advised M7 on buying in Durham and GVA e20314 oce20314 oce20314 Washington Washington Washington Business Business Business Centre Centre Advert Centre Advert 175x20mm Advert 175x20mm 175x20mm BQNEBQNE Strip BQNE Ad.qxp Strip Strip Ad.qxp 27/04/2015 Ad.qxp 27/04/2015 27/04/2015 15:4215:42 Page 15:42 Page 1 Page 1 1 M7 Real Estate, a leading pan European reflects 10.79% net income yield. Waverley, represented the vendor, Mandale. DTZ advised multi-let real estate asset manager with capital Market Dock (above) is a multi-let office the vendor and Lexicon Cole M7 on South value exceeding €1.3bn, has bought two investment of 10 self-contained buildings Shields. Edwin Thompson for the purchasers.

Europe buys in

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by Sanderson’s lease consultants alongside their colleagues in Leeds and Manchester. Matters such as renewals and rent reviews, plus ad-hoc advice will be covered. The partnership began originally six years ago but lapsed due to the Co-op pharmacy’s acquisition last October for £620m by London-based family multinational Bestway Group. A six-month transition followed the sale, during which the pharmacy organisation was advised by the Co-op.

Energy deadline nears

Lightbox draws Connect The Lightbox, a 60,000 sq ft office building for North East SMEs requiring flexible premises has been launched at Quorum Business Park on Tyneside, with national physiotherapy business Connect taking the entire second floor (17,061sq ft) to allow for expansion later. Spread through four floors, The Lightbox offers rental space from 5,000sq ft to full floors of 17,000 sq ft. Connect Physiotherapy has moved 130 staff in, relocating from nearby Cramlington. Quorum Business Park’s occupiers already include Balfour Beatty, Tesco Bank, Cofely, Fabricom, Aesica Pharmaceuticals and British Engines. With more than 900,000 sq ft of office space in all, it has become the workplace for 5,000 people over the past five years.

Investors in commercial property – and occupiers – should start planning energy efficiency upgrades to ensure their assets meet minimum band E standard or potentially face being unable to lease them, DTZ suggests. Details have been clarified of regulations to be imposed on the non-domestic sector under the Energy Act 2011.

This seeks to improve the energy efficiency of the UK’s building stock. Around 25% of it falls into Energy Performance Certificate categories F and G. Changes must be completed by 2018. Failure to act could bar any leasing of the asset and bring fines up to £150,000.

High street buy-up Ian Shanks part owner of Blueline Taxis, has added four retail units in Wallsend’s High Street West to his portfolio of properties. Shanks has been involved in developing17 commercial and residential properties there. Assisted by Bradley Hall agency, he completed the latest buy for £400,000. The Shanks family have invested over £1.5m in the street.

Away from it all

Facilities for business meetings, discussions and networking exist now at Hexham Enterprise Hub (above) through Northumberland National Park Authority. The accommodation is in the park’s headquarters at Eastburn, Hexham. Benefits of an associate membership scheme there include wi-fi and superfast broadband, refreshments, parking, outdoor meeting space, reception service, 20% discount off standard hire rates of rooms, and garden annexe meeting space including wi-fi. Sanderson Weatherall in Newcastle has Stuart Evans, head of corporate services at the authority, says: “It’s ideal for meetings with renewed its relations with Well, the UK’s clients or even just to escape from the office, shop or home.” Hub membership is £100 a largest independent pharmacy business. Well year in advance or £10 monthly by standing order (total £120) for the first year. Contact: e20314 oce20314 oce20314 Washington Washington Washington Business Business Business Centre Centre Advert Centre Advert 175x20mm Advert 175x20mm 175x20mm BQNEBQNE Strip BQNE Ad.qxp Strip Strip Ad.qxp 27/04/2015 Ad.qxp 27/04/2015 27/04/2015 15:4215:42 Page 15:42 Page 1 Page 1 1 – formerly the Co-Operative Pharmacy – will Marion Hume on 01434 605 555 or marion.hume@nnpa.org.uk. now be advised on its 165 northern branches

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Inspiring communities through enterprise.

The Beacon offers high quality office space making it the perfect location to accommodate the needs of your new or expanding business. • Various work space currently available • Access to meeting rooms and conference space in our state of the art events centre, The Skylight Suite • Access to free business / mentoring support • An environment specifically designed to facilitate networking and collaboration

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Hotels make news Leasehold of the 14thC Lumley Castle, a 74 room hotel overlooking Durham County’s cricket ground at Chester le Street, is up for sale. Offers exceeding £6m are being sought for a long lease. The property has been the seat of the Earl of Scarbrough for 700 years. Christie & Co is handling the deal. The Swallow Hotel at Gateshead, is being converted into a multi-purpose building suitable for business, education or health care. Two Newcastle hotels of character, Malmaison and Hotel du Vin, have changed hands. Their parent group Malmaison Hotel du Vin has sold them to Frasers Centrepoint of Singapore as part of a £363m deal involving 29 hotels. Malmaison occupies a former Co-operative Warehouse, Hotel du Vin the former home of Tyne Tees Steamship Company. The 17thC Percy Arms Hotel at Otterburn, which fell into administration three years ago, has been acquired by Newton Hall Northumberland, owner of Newton Hall wedding venue and the Joiners’ Arms at Newton by the Sea, as well as The Apartment Group of restaurants and bars. Owner Duncan Fisher expects it to re-open by year end. A 145 bedroom Hilton Garden Hotel is going up beside Sunderland’s Stadium of Light. Tolent is the builder. It will open next spring, run by SFC Hotels.

Moving vehicles Vehicle leasor AVL has relocated from Urlay Nook, near Yarm, to a site nearly five times larger on Middlesbrough’s Riverside Park as part of a £500,000 or so investment. Five years ago, AVL (Advanced Vehicle Leasing), which claims to be the largest independent supplier of contract hire, lease cars and commercial vehicles between Edinburgh and Leeds, supplied 60 vehicles a month to customers. This year it expects to supply 125 a month. Founder and managing director Stuart Beagrie has a sales team of 18, including agents in London, Newcastle, Scotland, Grimsby, Cambridge and Stratford upon Avon.

Red hot sales pace Red Hot Property, which claims to have sold more properties in the Tyne Valley than any other agency since 2009, has added an office at Whickham to its existing outlets at Hexham and Prudhoe. It has been named a five star-rated agency in International Property Awards.

l-r: Neil Spann, Cllr Harry Trueman, Dr Trevor McArdle of Big Solar

Solar firm resettles

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A Sunderland developer of solar photovoltaics has moved into bigger premises to work on its renewable energy technology Power Roll, which it is believed could see large-scale solar manufacturing return to the UK. Big Solar now operates from Washington Business Centre, from where it is developing the commercialising of Power Roll, which will be 145 times thinner and up to seven times cheaper to manufacture than traditional glass solar PV panels. The business was previously in shared offices at West Quay Court in Sunderland. Managing director Neil Spann says: “Current glass-based photovoltaic systems are expensive and heavy and are mainly manufactured in China and elsewhere in the Far East. With our unique design we will be able to manufacture Power Roll at a fraction of the cost here in the North East.” The company employs three staff but expects to take on five more within a year. Some of the team and investors previously worked for Eaga plc, now part of Carillion. The purpose-built £6m city council owned business centre opened last year at Turbine Business Park off the A1231.

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Wine takes David back to the future The phenomenon came at a price, as the hype surrounding wines of often ordinary quality overshadowed the region’s traditional wines

The first wine I ever drank was Liebfraumilch. Blue Nun with Sunday lunch; not so bad with chicken, not so great with roast beef. But then again, what did I know? It was the early ‘80s, I was living at home and only just emerging from childhood rations of crispy pancakes, boil in the bag curries and sandwich spread… As the decade moved on, the French-adored Piat D’Or gave way to Beaujolais Nouveau, then Bridget Jones’s big-knicker Chardonnay, before today’s New Zealand Sauvignon Blanc and Pinot Grigio. Aromas and flavours of long lost treats are stored deep in our subconscious until stirred by a casual remark, television rerun or, as in this particular nostalgia-fest, a wine tasting. Back in the day I enjoyed my fair share of Beaujolais and Aussie Chardonnay, but drink neither very often now; not because I have fallen out of love with them necessarily, but time and our taste buds move on. As indeed has your decent Aussie Chardonnay. No longer the raw oak, butter-basted alcohol

bomb of yesteryear, the best Chardonnays from Australia are now often unoaked, or carry just the subtlest hint of sweet toasted wood. Less Dame Edna, more Nicole Kidman…. The McCormack and Co Chardonnay from Adelaide Hills was surprisingly pale lemon in appearance, suggesting a cool climate origin. An assumption backed up by the wine’s fresh, crisp acidity and aromas of crisp ripe nectarine. On the palate, flavours of fresh Granny Smith apples gave way to stone fruit; only the wine’s full body and alcohol finish betray its South Australian provenance. Georges Dubeouf, “the king of Beaujolais”, is the biggest and usually one of the best producers of the global phenomenon that was Beaujolais Nouveau. Was, because although sales are recovering, they are around half of what they were when merchants and restaurants raced to get that year’s vintage on the shelf on the stroke of midnight on 15 November, providing much-needed cash flow to the producers. The phenomenon came at a price, as the hype surrounding wines of often ordinary quality overshadowed the region’s traditional wines, especially the 10 Cru villages that produce wines with greater depth and complexity.

Juliénas is one of the largest Cru villages producing wines on the granite slopes in the north of this beautiful region of golden stoned villages and rolling hills. At its best Julieanas is a succulent, rich and deep coloured wine. The sample I tried was light ruby in colour, with red cherry, smoky aromas and raspberry and sour cherry flavours. All in all, a pleasant, fresh, crunchy summer red and a refreshing change served slightly chilled as if straight from the cellar. A perfect foil to charcuterie and a useful picnic wine when packed chilled, it doesn’t come to any harm as the temperature rises. That’s one of the many attractions of the world of wine; it can take you to places you only dreamed of, including back to the future! n David Harker is chief executive of Newcastle Wine School www.newcastlewineschool.com

Juliénas 2012, Georges Duboeuf, £11.99 per bottle. Cormack & Co. Chardonnay 2014, Adelaide Hills, £11.99 per bottle. Buy six at £7.99 each. Wine supplied by Majestic Wine Warehouse, Gosforth

PROFILE Brewin Dolphin

As important as any business decision… Recognising that business owners and entrepreneurs rarely find time to sit and plan how their own personal finances are structured, Brewin Dolphin has introduced a service that lets people get on with business. The only certainty about planning and managing personal wealth is that there will be unforeseeable changes over the horizon that make informed decision-making difficult. For that reason, the specialist team of financial planners from Brewin Dolphin is visiting North East businesses to discuss with individual executives how they can best stand to gain from opportunities and mitigate any potential threats. Advice includes (but isn’t limited to) portfolio creation, ISAs and other

tax efficient investments, charity fund management, pensions and mitigation of inheritance tax. Jo Jackson is head of financial planning for Brewin Dolphin in Newcastle. With more than 17 years’ experience in financial services including private banking and insurance, she specialises in providing strategic planning advice with particular expertise in estates, retirement, business succession and wealth management. Jo and her team work closely with their clients to devise solutions most appropriate

to help them make the most of their money – now and long-term. Now, with their visits to companies, they set out to entrepreneurs and other business owners, directors, senior managers the advantages to be gained from robust financial planning and an integrated wealth management service. The help extends into retirement planning, investments, protection of family income, estate and succession planning, tax planning and reliefs, any or all of which is delivered as a tailored plan that

PROFILE Brewin Dolphin

“A lot depends on the ages of people we’re speaking to and the position they’re in” gives clients confidence that their money is in the right hands. Jo says: “Our industry is complex, but we like to think we make it sound less complicated. At Brewin Dolphin we are very straight talking, very down to earth. What we want to get across doesn’t have to be baffling. We tell it as it is, and find the more people understand us, the more they engage with us and help us to draw out the nuances of their situation in an easier way. “We help all kinds of business people, at every stage of their life and career to simplify their finances, and help their money to work harder. We allow people the time to focus on the other things that matter to them, confident that we’ve got our eye firmly focused on the financial side of things.” Brewin Dolphin’s move to take its advice direct to businesses is an acknowledgment of the increasing pressures that senior business people work under and the difficulty of finding time to consider their personal affairs in as much details as they might like. As Jo notes: “It’s all too easy to ‘forget’ your finances when they sit at the bottom of a long to-do list. Exploring the intricacies of personal finances can be time-consuming and complex, which is why so many successful people in the region are turning to us for help. “Put simply, this is what we do, it’s where all our expertise lies. So, working with us gives greater peace of mind that enables people to get on with the important day-to-day things like managing their a business, bringing up their children, or just enjoying their retirement.” THERE’S ALWAYS THE UNEXPECTED Many events and uncertainties beyond our control have a bearing on individuals’ personal financial planning. Unsettling situations like Greece and the Euro’s trends; events in the Middle East; Britain’s future in the EU and what to do with a pension under the new options available can have great bearing on how and where one’s investments and commitments should be. Jo says: “Now it’s Greece, tomorrow it will be something else, somewhere else - if not pension change, another policy that will have long term implications. We help clients understand that the

more we know about their circumstances and their goals, the easier we can help them get the most out of whatever lies ahead. You can never know what’s around the corner, but we’re perfectly placed to analyse and adapt to the way things are moving. “We’re proactive in managing our client relationships, usually with an annual review with our clients, but if there are any changes throughout a year, we’ve a whole team of people who are able to react to the situation, and promptly contact clients with advice if we think they should be doing something differently.” “With pensions reform”, Jo explains, “the ability to extract money in a tax efficient way means that of late we’ve been educating people to think of pensions as another way of saving. It’s not restrictive, it’s flexible, and inheritance-tax efficient, making it easy to pass it on to the next generation. “People nearing retirement have concerns about how long their pension will last, now that they’re free to take what they want right now. These aren’t the ‘Lamborghini Grannies’ touted in the media. If anything, people are more cautious, asking our view on the impact of drawing down, and the long term consequences. “Historically a pension was just viewed as a pension. But now my conversations with business people are much more open and about what their wants are – a holiday home, a new car, or a preferred lifestyle in retirement. Having a goal like this this to aim for makes the saving aspect of a pension much more ‘real’. “It’s not about ploughing in as much cash into your pension as you can. It’s more to do with looking at all the assets across a person’s wealth. We can then show whether with their current pot, the future they want for themselves is achievable, and if there’s a gap we show what they can do to fill it.” Some are fortunate enough to have assets enough to provide the income desired. “We can secure this and put it to one side,” Jo points out. “It’s then a case of considering reductions in inheritance tax liability; how to utilise gifts or various tax efficient trusts to protect the money. Here, we work in partnership with solicitors and accountants to ensure a really comprehensive overall strategy. “Engaging with clients’ other professional services ensures we all know what each other are doing, and therefore collaborate to provide the very best advice, quickly and cost-effectively. It really is a peace of mind service for our clients where we want to become their trusted adviser.”

VITAL PIECE IN THE JIGSAW Brewin Dolphin’s roots in the North East go back to 1903, and Jo Jackson is herself originally from Middlesbrough. The firm has previously been noted for specialising in corporate advisory broking, but now focuses on wealth management. As John Duns the divisional director for business development puts it, “This offer to businesses and executives is quite simple. We ask ‘Can we come and present to your board about how we can help you as individuals?’ That’s it. We are saying to managing directors, finance directors, senior executives and entrepreneurs. ‘you’re running your business. You find dealing with the intricate bits of personal finances a drain on your time’ – and they agree.” Brewin Dolphin, he says, aims to be the leading UK wealth management firm. “We’re performing very well indeed, and we’re very easy to work with. Some people, though have an out of date image of us. We still welcome those handing over a portfolio to be managed, but we believe that should be part of an overall plan, and clients are seeing the huge benefits of that too” “To that end,” says John, “Jo, and her financial planning team is the vital piece of our jigsaw that puts into place a robust structure that offers a full financial planning service for clients that they can be fully confident in.”

“Whatever your situation and whatever your needs, it’s likely we’ve helped someone similar to you before. We aim to simplify your finances, and help your money to work harder, while you focus on the other things that matter to you.”

To arrange a no-obligation meeting with one of Brewin Dolphin’s Chartered Financial Planners, telephone 0191 279 7797 or email newcastle@brewin.co.uk

BUSINESS LUNCH bqlive.co.uk

With the passing of recession the North East’s construction industry is going to be very different. Jeff Alexander in his new additional regional role tells Brian Nicholls how Just as burdens of recession rose from his shoulders, a heavy chain of responsibility has alighted on them instead. Jeff Alexander, as newly elected president of the Northern Counties Builders Federation, now becomes a key figure in driving the construction industry’s recovery. He doesn’t wear the president’s financially and emotionally valuable chain of office to lunch with BQ of course. But he does enthusiastically bring along two major aspirations for his two years of office under way. As a director also of Surgo, a prosperous family firm expecting to raise turnover by 50% this year, he’s well placed to express confidence about prospects on both counts. However, with two more company collapses recently announced elsewhere in the country, and inevitably wider fallout, Alexander confirms that some contractors are still challenged by cash and credit problems and access to finance, even though activity has increased over a year. “It seems to go in waves with people seemingly keen to get the work, and margins therefore tighten again,” he explains. His own Newcastle based company, which has thriven throughout, won work plentifully before Christmas at a price it felt fair. But the market has hardened a little once more. “There’s still a lack of big contracts. So some larger contractors are still swimming in the same pool as smaller ones. Until bigger jobs come back there’ll probably be too much competition in the market place still.” Big education contracts, in which Surgo has excelled, are less plentiful. But it had safely beforehand moved towards alternative markets, though it has just finished building a new sports centre and swimming pool for Royal Grammar School in Newcastle. Opportunities to diversify have improved, largely

No stone unturned

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because the private sector is starting to recover a little. With all the big cuts in public funding, public projects are expected to remain scarce. Delays between awarding tenders then giving go-ahead have also dragged at turnovers, and whereas some recent awards have indicated how firms may get into the habit of chasing turnover he reckons that’s really not the way to go. “Maintaining profit and a strong financial position is paramount,” he counters. “If at the expense of that your turnover goes down, you have to be prepared to accept that. “We’ve done that at Surgo. It doesn’t pay to chase unprofitable work for the sake of turnover. A lot of the failures you read about have been due to people thinking ‘we need to keep our turnover up.’ They’ve been buying work at a loss. Our turnover dropped during the recession but we let that happen. This year it will increase by about 50% - from just over £20m to £30m.” Amid ongoing volatility, then, Alexander presses ahead with his federation ambitions: to intensify the encouragement of training and recruitment into the industry generally, and to band with other representative bodies of construction in the North East to raise a unified regional voice towards national and local government on behalf of SMEs in the sector’s broadest sense. “The federation’s core aim has always been to encourage training and entry into the industry,” he explains. “Hopefully we’ll increase the level of support we give worthy causes in respect of training and development of construction careers

“A lot of the failures you read about have been due to people thinking ‘we need to keep our turnover up.’ They’ve been buying work at a loss.” Jeff Alexander

- at university, college, school and company level. “The organisation has likewise always strongly encouraged direct employment and recruiting of apprentices and trainees. Apprentices are lifeblood to the industry. Progressing their careers has always been a strength to the independent regional contractor. Our larger competitors these days, generally speaking, sub-contract everything. So we’ve always been big supporters of the local company keen to improve its workforce, grow from within and keep and develop those people. “I’d like to think during my term we can reach out to more organisations to improve scope we can offer for making training grants available, for increasing involvement in the industry, encouraging better quality of intake - and encouraging schools and colleges to consider helping careers in construction to move forward. “More apprentices are being taken - definitely. Talking to contractors in our organisation and to people I know through the North East Chamber of Commerce, I gather the training effort is definitely being raised. Colleges say their take-up is improving again after a poor period, and I think if the NCBF can encourage clients to consider

local contractors more widely than before – I’m talking about the public sector here – that will further our training aims generally.” The image problem in recruitment which the industry had suffered has dramatically changed for the better over the past few years, in his view. “A lot of organisations, such as Considerate Constructors, are looking positively to promote it,” he says. “A number of technical roles have become more graduate orientated, and I’ve mixed views about that,” adds Alexander, a graduate himself. “I still believe site managers and supervisors who’ve come from a trade background in parallel with their educational qualifications are a very, very valuable way to move forward.” Surgo goes for a mixture. “We have graduates we’ve trained to be middle managers and managers, but we’ve also promoted from within, raising former tradesmen through the ranks, encouraging them to get formal qualifications. I think it has to be a mixture of the two.” Greater effort is needed to attract more women into construction too. It’s already working among architects and, to a lesser extent, engineers in

A ‘hands on’ director Jeff Alexander describes Surgo as a “relatively big small business” of nearly 90 employees, its roots going back to 1907. Formerly Bowie Construction, it changed its name in 2004 following a management buyout by the Walker family. It works in a variety of sectors on projects ranging from £1m to £25m. It has kept throughout its ability to retain staff. Alexander, 55, is one of three “hands on” operational directors, and has been 27 years with the company including when it was still Bowie. A surveyor by background, he has been a director since 2006 and is responsible for quality, procurement and business development.

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Alexander’s view. “Women in Construction, with which the NCBF always welcomes involvement, has done some great things,” he believes. The NCBF also sponsors in the region’s Construction Excellence awards the Young Achiever prize, won this year by a woman, Jenna Graham of Darlington, who reached 6,000 other young people in a recruitment campaign. But, Alexander admits, “I’m still disappointed in the trades take-up by girls in careers like plumbing, bricklaying and joinery, though colleges tell me that’s improving. “Yes, working on a building site is sometimes cold and uncomfortable. But so is working in the like of agriculture and forestry. For us rewards need to be stressed. Ours is such a worthwhile industry. You produce an end product and can take pride in having helped to create a tangible asset.” Growing prefabrication and other technological advances are actually removing a lot of discomfort, and onsite conditions and welfare

are much better. “Regardless of one accident being still an accident too many, safety on sites has improved tremendously. It’s a much more comfortable environment too – with everything achieved during the past decade,” he suggests. The industry’s raising its game with green roof building, self-healing concrete, timber frame construction, use of recycled materials, energy efficiency priorities and the prefabricated building offsite. During the last boom around 1997, when intensive building of schools was under way, skilled onsite labour was scarce, and lots more prefabrication was done, using panelised systems. Now there’s a bricklayer shortage. “I think people are looking more towards prefabrication again,” he says. “Though it still has far to go it’s already a much more efficient process.” As for timber frame, Alexander is a big advocate, having worked with it for 25 years during which the systems have already improved immensely,

especially in offering greater heating and other energy efficiencies plus faster construction. While prices can still vary, they’re presently much on a level with traditional build. Surgo has built two Newcastle hotels around timber frame. Alexander has recently been involved with anaerobic digestion through Surgo’s win of a £12m contract to build the infrastructure and serve as delivery partner onsite for Leeming Biogas in North Yorkshire, which will shortly convert food waste into gas for the national grid. What about building homes on stilts where floods may still threaten? Alexander confesses that’s a technical question beyond him but observes: “Many more ways exist now to make a site workable that wasn’t before. Society doesn’t do itself favours, he adds, by covering so much greenery with tarmac and reducing the run-off area for water. Fittingly chastised, we finally ask about the proposals to marshal forces and reduce the fragmentation which has bedevilled organisations

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in construction for so long in the region. Alexander says: “Promoting the interests of the regional contractor and the SME in particular is something new for the Northern Counties Builders’ Federation. “But we believe that, from the economy’s point of view, these companies are essential to our industry, and the means of attracting more people into the industry, thereby promoting the interests of both the regional economy and the regional and local contractor. That way we can also further our aims for training. “So we’re getting together with other representative bodies of construction to raise a more united regional voice on behalf of the SME in the widest contruction sense, and to say to national and local government, ‘this is the sort of company you want to be working with. You’ll get the reliability, the training, and investment in the local economy from these contractors. It isn’t all about bigger being better. It’s about a united front. Watch this space.” n

“I’m still disappointed in the trades take-up by girls in careers like plumbing, bricklaying and joinery, though colleges tell me that’s improving”

Blackfriars Restaurant and Banquet Hall, Newcastle A member of two choirs in his spare time, and a previous visitor to Blackfriars Restaurant, Alexander was quick to sing its praises. Whatever time of day you visit, you remain aware you’re in a converted 13thC friary, not least through the empathetic furnishing and subdued mediaeval background music. The food’s whackingly good and, as Alexander observes, practically everything on the Newcastle venue’s menu carrying strong local overtones catches the eye. Both he and his interviewer chose a flavoursome tomato and basil soup from alternatives of risotto, a goat’s cheese dish, ham and parsley terrine, honey glazed salmon, fishcake, or home made black pudding with pig cheek. Separate ways were taken on main course – pan haggerty for one; a salmon, chorizo, tomato, and cannellini bean stew for the other. That was in preference to chicken, rump steak, fish and chips, belly pork and a mushroom, walnut and blue cheese Wellington. The conclusion had to be crème brulee on one hand and strawberry cheesecake on the other. That left a brioche, sticky toffee pudding, chocolate brownie, sorbets or cheese for others to enjoy. Three courses for £18 each in a setting Andy and Sam Hook can be proud of.

MOTORING bqlive.co.uk

Beauty on the R oad Volvo very kindly let the LD Mountain Centre team and me have a new XC90 for the weekend. From the exterior, you could say you are overwhelmed by its size. However, the XC90 is not an “in your face” 4x4. It has sporty, yet subtle, styling, and with its elegant mixture of chrome and polished paint work is something to behold. Inside, you find sumptuous leather and more technology than the Star Ship Enterprise. The sports seats are beautifully designed and incredibly supportive. This quality isn’t limited to the front, either. Deep pile carpets, mixed with a full leather interior and what can only be one of the best sound systems provided by Bowers & Wilkins, gives an air of both quality and luxury. My sons Eddie and Ivan (aged nine and seven respectively) linked up my phone, set up the Sat Nav and worked their way through pretty much all of the digital radio stations on the planet with absolute ease. I took the car to our store on Dean Street and picked up four of the team, two of whom were with mountain bikes and the others with rucksacks. All this kit easily fitted into the car while still providing space and luxury, and our destination was Thrunton Woods in Northumberland. The XC90 has a powerful engine and makes an excellent ride. I was able to overtake with confidence, using the kickdown on the smooth and responsive gear box. Road noise is low, an

area that had been a problem with 4x4s of old. The Sat Nav is displayed on the centre console as well as in mid-dashboard between the speed and revometre - a great feature, since the passenger can operate the system, leaving the driver to follow the easy-to-read display within a natural eye position. The car is an absolute pleasure to drive. Driving through the winding back roads of Northumberland, I detected very little body roll, and the cornering experience is further enhanced when using the manual gear box option. The active suspension seems to iron out the many potholes we encountered, giving a smooth and forgiving ride. The high driving position allows you to see ahead safely, with the sports supportive seating holding you firm. After Thrunton Woods, we headed off in search of some offroad testing. We headed deep into the hills of Northumberland, a mixture of steep inclines, uneven surfaces and bumpy descents. The Volvo confidently picked its way through the tracks, regardless of the rock, earth, and at some points small boulders, under the tyres. Several of the sections were so sheer, I had to engage the Hill Descent Control System. Our final obstacle was a hilly ford with a steep approach and equally sharp exit. The XC90 calmly tackled the approach and methodically picked its way through the rocky riverbed,

finding traction and enough grip to pull herself out from the river bed. Wet and muddy, we headed back to winding roads, where the XC90 metamorphosed from a powerful off-road beast, back in to a luxurious elegant cruise ship, turning heads as we passed through Alnwick and back to the LD Mountain Centre to drop off the team. Again, unloading the kit was as easy as the loading earlier, due to the vast load capacity of the car. My next port of call was to collect my stepfather, Keith Hall, a man in his late 80s, having won at Le Mans in the 1950s for Colin Chapman’s Team Lotus Grand Prix. He was as impressed as me by the car: For a big car, he suggested, “it is remarkably stable when cornering. There is plenty of power in reserve for overtaking and performance driving, and the ride is pretty much silent and comfortable with the seats offering excellent support to both driver and passengers. The automatic gearbox seems very stable and easy to use, with great off road potential. The clean air system is a real bonus - a great idea for those with allergies. An impressive car altogether, it rounds corners like it is on rails and the braking is also exceptional. The steering seems nice and direct and the car is easy to get in and out of.” Keith’s observations all came from the comfort

MOTORING bqlive.co.uk

d a o R f f Beast O Roddy Mackay, director LD Mountain Centre puts the Volvo XC90 through its paces and falls in love

of the passenger seat, but he knows his stuff. We then tested the braking system and found the ABS system cuts in, along with the seat belt pretensioners, pulling your body into the supportive seats in case of impact. Along with all the other safety trickery, this must be one of the safest vehicles on the planet. I have driven several competitors’ large SUV type vehicles. The XC90 is far superior and costs significantly less, making it top of its class. This

car can do everything - a great luxury family cruiser with more space than you will ever need. It is both nimble and sporty, with ability to handle some significant off road and outdoor abuse with great miles to the gallon. I have a genuine passion for cars both new and old, and I certainly fell for the Volvo XC90 - I was loath to hand it back! n The car Roddy drove was an XC90 D5 AWD Inscription 225 BHP from £50,185. The XC90 Starts from £45,750.

PROFILE Rivers Capital

Founders of Rivers Capital Jonathan Gold, Managing Director, Peter Hiscocks, Director and John White, Chairman

Economic recovery, we have to create it ourselves Rivers Capital Partners, a regional venture capital fund management company managed by entrepreneurs for entrepreneurs There is a lot of advice out there about how to start or grow your business. Thatâ&#x20AC;&#x2122;s a good thing as we need more successful business ventures to help grow the economy. Currently we have around 151,000 small businesses in the North East but, as I have said before, surveys show we are still creating fewer new

ones per head of population than any other part of the UK. My job is to help people get started or grow their business, which is what venture capital is all about. Not a surprise then that I think a lot about how we could do more to encourage new entrepreneurs and help existing businesses, and

what makes ventures succeed or fail. Of course my main goal is to make a financial return for investors, but what is unique about a firm like Rivers Capital is that all of our partners have started and grown at least one business themselves. I have been on the fund raising side of the table for my own

PROFILE Rivers Capital

business and Rivers is a small private company itself, funded by its founders. The whole point of what I do is help create more business and jobs as well as making a return. It’s called wealth creation, something people don’t talk about but is what the economy needs. I do worry that in some quarters being a success and making money is still not celebrated enough. The people I look for are all entrepreneurs, people that have a great idea but do more than just talk about it. The best self-select and rise to the top with little assistance; others need encouragement and help. So, how do we create more businesses and encourage the ones we have to expand and take on more people? There is a clear role for Government in creating a helpful tax and general regulatory climate to assist business startups and to provide gap finance when the market fails. Other private companies ensure the opportunities are there to provide training, encourage skills and enable access to larger amounts of private cash. The private sector is becoming more important in this since Government grants and free training are being squeezed out with continuing austerity measures. If you combine all the North East investment funds managed by North East Finance, the region has benefited from around £300m when private investment is added in to the public funds. Another 5 year program of investment is, we understand, being developed at the moment. Here at Rivers Capital Partners we manage some loan finance and also build private capital deals. We add management skills where we can by offering advice, suggesting simple processes, giving talks on business startup and working with investors. Of course we can’t do it all. Although I am a great fan of our region I still see a lot of potential go to waste in lost opportunities and a lack of inspiration, self-belief and aspiration. It pains me that plenty of people around our towns and cities don’t think they can set up a business of their own. This is why I support the “If We Can You Can” campaign, a competition for new entrepreneurs. This has been established by the Entrepreneurs’ Forum and this year is managed by “First Face to Face” with Caroline Theobald and Charlotte Windebank. Look them up! They could always do with more supporters. Great as the campaign is, it’s not enough. Let me elaborate: Rivers Capital has seen over 1000 business plans and propositions over the last 5 years

‘If you combine all the North East investment funds managed by North East Finance, the region has benefited from around £300m when private investment is added into the public funds.’

and we have an additional loan portfolio of over 400 other businesses. Even if you assume half of those who apply for our investment are not suitable, that still leaves around 200 businesses a year seeking cash that go unfunded. OK, some go to other funds but I estimate around 50-100 could become viable but don’t. Of course we refer some of them on to other organisations, but we just don’t have the resources or cash to assist them all. I’m sure there are similar numbers from the other fund managers in the region. These potential entrepreneurs and unfunded small businesses could potentially raise investment but often need more help to get their proposition right or funded in a different way. There are still public support structures but I have come to the conclusion the answer lies in our own business community. Why is it the responsibility of other business people? Long ago I discovered the best investors are people who have built their own business. I guess that’s why “Business Angels” are so popular, the best of them know first-hand what it takes to start and grow a business. The same logic applies to advice to growing or starting a business or preparing one for investment and helping the hundreds, possibly thousands, of potential businesses we miss. Part of a bigger solution must also be the aim to create more businesses with scale. Currently of the 5.2m UK small businesses around 60% are soletraders and many are micro businesses with less than 10 employees. What does it take to build up a business? That is perhaps the subject of another article but the essential ingredient is still the founder entrepreneur, not the product. The person with the drive to succeed but the patience to work out the detail, and the know-how too. That last part is often forgotten and countless studies show that the most common cause of business failure is poor management. Whichever statistics you read the average failure rate of startups is around 40% within around 3 years. Running out of cash is not what causes business to fail, it is just a symptom. This is

why I always talk about skills and the need to learn from experienced business owners. The Entrepreneurs’ Forum with around 400 members here in the North East already does fantastic work but they are just one collection of great people and it’s not enough. We also have to get over the idea that “advice is free” and that “there is an app for that” or a grant that will make it all work. Good business people need to be paid to help others as it does have a real value and should be valued. If you think you could help a start-up business, get in touch, I’m not an introduction agency but will try and help. We are looking for experienced business men and women, people who have created and managed a business, still run it or have sold it. The young and sometimes not so young entrepreneurs need you, and you will be paid by the business you help. New entrepreneurs understand that advice and help costs money especially as you are helping them make money; this is not charity, it’s commerce. Lastly, as a reminder, at Rivers Capital we manage funds, specifically the North East Angel Fund and Microloan Fund. We do also manage other private deals in and out of the region with a range of investors. So whether it’s cash or connections you want give me a call. The business community here works well together I’m just asking it to do a bit more. By Jonathan Gold

To contact a member of the Rivers Capital team to learn more about their investments activities and the Funds they manage please email: info@riverscap.com or call 0191 2306370 Rivers Capital Partners Ltd is registered in England (no: 6795536) and authorised and regulated by the Financial Conduct Authority (FCA no: 519469).

FASHION bqlive.co.uk

Turning Japanese You can act your age with some timeless classics, explains Josh Sims In Japan, Nick Clements notes, they call it ‘dad’s style’. It has also been referred to as ‘revival’ style, or ‘heritage’ style. None of these terms sound especially complimentary, but they are apt summaries of what draws a man towards a particular clothing aesthetic - one, in fact, which has all the in-crowd knowingness of a sartorial sub-culture akin to that of Mod or Teddy Boy, albeit without the underpinning shared love of a certain type of music. Rather, what fans of heritage style are perhaps most drawn to is the authenticity that the many clothing brands and manufacturing

companies which fall under this wide umbrella term are founded in, even if many of them have little authenticity in themselves, having been established over more recent years. But what they all at least aspire - even those that lack much history - is a respect for the menswear of the past, by which most probably mean after the early 1900s and before the 1960s. This, after all, was the golden age of menswear, during which its canon was formed - all of those iconic garments that have come to form the basis of the entire men’s casual wardrobe, some of them originating in a single maker, all of them

endlessly copied ever since. ‘Heritage’ says it all in its appreciation of both those brands and those styles of clothing that have a long past. But ‘dad’s style’? Clements is the founder and editor of ‘Men’s File’, arguably the leading journal of heritage and revival style, as likely to be found in the right kind of menswear store as in a newsagent’s. A photographer by trade, he began shooting this burgeoning sub-culture before it really had a name. But, as a middle-aged man, he liked what he saw. “There’s a reason why revival clothing is so appealing: it works, it’s so comfortable, and it’s not childish. That’s why

FASHION bqlive.co.uk

“There’s a reason why revival clothing is so appealing: it works, it’s so comfortable, and it’s not childish. That’s why the Japanese call it ‘dad’s style’”

FASHION bqlive.co.uk

the Japanese call it ‘dad’s style’. It’s not being a 50-year-old dressed as a 15-year-old. It’s claiming an area of style that, thankfully, has nothing to do with fashion trends.” Indeed, heritage style looks to the past not only because, as its exponents will vouchsafe, the clothes are so timeless, operating at a level that is supra-fashion - some of the founding makers will be well-known to many, but many of the modern makers will be known to just the few - but because period designs tend to be highly functional, even excessively so given most 21st century men’s actual needs. “That’s a very male thing - we just love over-specced things that go on and on,” says Hitoshi Tsujimoto, the founder of Real McCoy’s, one of the most eminent of new heritage brands, specialising in both reproductions and gently improved versions of menswear classics. “We’re not really going to go down 300m under the water, even if our watches can. Professional cameras, four-wheel drive cars they’re all a bit of dreaming for men. Most of it is so tough, it will outlast us. Still, at least that way we’re making good presents for our sons one day. Well, it’s a good excuse anyway...” Tell-tale characteristics of heritage pieces might include a high prevalence of reinforced seams and pockets, for example, of easy fits - it is rare to find a pair of trousers, for instance, that is tight or has a low rise - and of hard-wearing fabrics the likes of leather, duck, chambray, cotton drill and, above all, denim. These are not only fabrics that one can live in, actively, without fear that they cannot take the abuse, they are fabrics that actually get better the older they get. “The important thing is that this is not just a fashion to these people - often it’s a way of life,” notes Horst Friedrichs, a photographer who has won a reputation for his documentary approach to charting clothing culture, including denimheads. “You get a feeling for these cultures. Talk to stylists - by which I mean people who really style themselves - and they’re recognising something shared with others. And when you’re dealing with a community brought together by the love of a particular fabric, then of course you meet some very geeky people. Certainly one might say it’s odd to be obsessed with one fabric - there’s no music to go with it, no cars. But these people absolutely love it, the colour, the craft...” The workmanship certainly is there in heritage style - not least because the market has, until recently, been driven by makers in Japan, with its culturally-ingrained focus on detail and, yes,

“The important thing is that this is not just a fashion to these people often it’s a way of life,” Horst Friedrichs authenticity, and its perhaps surprising postWorld War Two enthusiasm for Americana. But also because - especially with younger heritage brands - one standard they typically all work to is to ensure that their products are as well made as the historic originals to which they are paying homage. Those on the outside might wonder why anyone might pay what can seem an exorbitant amount for, say, a simple grey marl sweatshirt when, superficially at least, the same garment can be had for a fraction of the price. “Food is a good comparison here,” argues Roy Slaper, a leading figure among the breed of artisanal denim makers who have found their niche over the last decade. “To the person who survives on a diet of fast food, the discussion of organic or ethical food is abstract and suspect. He points to the hamburger he likes costing $3 and says only a fool would pay more. But you could get a $15 hamburger on the same street. And our jeans are the $15 hamburger. The machines I use are special. The methods I use are special. The materials I use are special. These aren’t even perceivable to the fast-

clothing customer.” That isn’t to say that, at the heart of heritage, there isn’t a love of dressing up. Quite the contrary. It is for this reason maybe that many of its fans truly are devoted, adhering to their style not only regardless of the changes of fashion, but also the changes of season. The heritage dresser who favors heavy denims, engineer’s boots, white cap-sleeved t-shirts and a biker jacket is likely to wear the same whatever the weather. There are limits to this appreciation for the old time feeling, “It’s why an old Rolex can just feel better than a new one, but you don’t want a pocket watch, why an old Mercedes has a certain essence to it, but you don’t want a horse and cart,” says Tsujimoto. And there is the risk of one’s wardrobe looking more akin to costume than to everyday, tough menswear. “You can overdo it. You become a pastiche of a pastiche of a pastiche,” as Clements warns. “There are times when I’ve looked like a lost extra from a period movie, which for some people is perhaps a way of saying ‘leave me alone’, even while attracting attention to yourself.” n

CORPORATE ENTER TAINMENT bqlive.co.uk

A collection of venues Venue name: Stadium of Light Location: Sunderland Website: www.safc.com Call: 0871 911 1555 Email: Christmas@safc.com Description: While we know it can’t be Christmas every day, the Stadium of Light is preparing to make this festive season a match winner. From Jersey Boys to Essex Boys, festive highlights at the Stadium of Light will include live entertainment from top acts including Jersey Boys meet Take That and We Love the 90’s, who will be bringing Wearside all the greatest hits from that unforgettable decade. New to this season’s programme is the arrival of Casino and Cabaret Nights with the sounds of the Rat Pack. Christmas party-goers can also spend a

Venue name: Grosvenor Casino Grosvenor Casino Newcastle: Cheryl: 0191 260 3303 Grosvenor Casino Sunderland: Sarah 0191 510 6400 Grosvenor Casino Stockton: Becky - 01642 927450 Description: Fancy taking us for a ‘Spin’ This Christmas? Ladies looking glam, Gents looking sharp – Let the fun begin! Enjoy cocktails & canapés on arrival in the bar or lounge* Then for beginners let us teach you how to play our favourite games with Grosvenor play money, or for experienced players how will you compete in a fun tournament to win some extra prizes? Building your appetite look forward to our succulent three course menu including: Chargrilled fillet steak, duo or Salmon and Seabass, not forgetting

traditional Turkey or our delightful vegetarian option as your mains. The nights only just getting started! Each person will also receive a £5 bet voucher to spend on Roulette, Blackjack or Poker – Roulette minimum bet 25p / Blackjack & Poker £2/£3 Packages available Sunday – Thursday £20 per person, Friday & Saturday £29pp 3 course meal, followed by tea/coffee & Mince pies 30 Mins fun tutorial or fun tournament £5 bet voucher for live games Live Entertainment Available Weekends - Contact Your Local Casino For An Entertainment Schedule. * Optional Extra. 18 or over. ID may be required.

night with the stars, as celebrities from two of the UK’s biggest television shows, Made in Chelsea and TOWIE, swap King’s Road and the Sugar Hut for the Stadium of Light. “This year’s line-up has been carefully picked to appeal to all manner of guests and we’re encouraging people to book early, with a number of special offers in place as added incentive.” said Gary Hutchinson, Commercial Director at Sunderland AFC. These offers, which are open to people who book for a group of 20 or more before September 30, include a complimentary half bottle of wine per person and a free pair of Black Cats Bar tickets for an SAFC home game for the event organiser.

CORPORATE ENTER TAINMENT bqlive.co.uk

for the festive period Venue name: Crowne Plaza Location: Newcastle Call: 0191 5623333 Email: nclsq.meetings@ihg.com Description: Celebrate your Christmas in style this year at the new, luxury Crowne Plaza Newcastle – Stephenson Quarter hotel. Be among the first to book your Christmas party or corporate event at the newest hotel and restaurant venue in Newcastle. With Crowne Plaza, the team will take hospitality to a new level following its opening later this summer. For their first Christmas, the hotel will be rolling out the red carpet and celebrating the festive period in style with mouth-watering food, sensational entertainment and sparkling service. Bookings are being taken for the spectacular main function room – the uniquely shaped Stephenson Suite –

Venue name: Mercure George Washington Hotel, Golf & Spa Location: Stone Cellar Road, High Usworth, Washington, Tyne & Wear NE37 1PH Call: 0191 402 9988 Email: events@georgewashington.co.uk Description: A very warm welcome awaits you at the Mercure George Washington Hotel for this festive season. This year you are invited to our glitzy Narnia inspired celebrations offering something glamorous for everyone, choose from our Narnia Winter Wonderland Party Nights; New Year’s Eve Glitter Party; Private Parties; Santa Sunday Lunch or our fabulous Festive Afternoon Teas; New Year’s Eve Wonderland Gala Dinner, plus a host of other Christmas events. We have many function suites to suit

all party sizes, so if you’re looking to celebrate at one of our programmed stylish and glittering events or wish to celebrate in your own Narnia inspired private room, then the George Washington is the ideal venue for you. We are proud to announce the return of, the astounding Chris Cross, who will be performing his close up magic during the December weekend Party Nights. Our festive Narnia inspired brochure, details all the wonderful events throughout November, December and January. Please contact the Christmas team or view on hotel web site. Accommodation is available a special rates to complete your fantastic celebrations. We look forward to celebrating with you this Narnia festive season!

which will seat and cater for around 300 people. For bespoke events and private parties take the stress out of planning and let Crowne Plaza organise every detail, or choose to join a Festive Party Night in a themed room with delicious food and DJ; prices start from £35 per person.Festive lunches will be served in Hawthorns throughout December, including Christmas Day, whilst the spectacular New Year’s Eve Ball is set to become the talk of the City. For all events the hotel can provide wine, drinks packages and overnight accommodation at special rates. Finally, don’t forget to toast the season at The GIN Bar where you can ‘engineer’ your own Martini by choosing the liquor, garnish and the way it is mixed and served.

INSIGHT bqlive.co.uk

Leisure’s alive again The leisure industry took one of the hardest hits in the recession. But Ollie Vaulkhard, joint owner of the Vaulkhard Group, describes how innovation in the sector is now driving significant growth prospects throughout the region

Leisure was one of the industries hardest hit during the recession, with operators and banks reluctant to invest in activities based on discretionary spend. Young people affected by student fees and unemployment, plus crippling overheads for families, sparked a real mix of challenges to people’s spending power. Banks took a lot of big hits and pulled away. But we’re starting to see a change now. National operators have built up large cash reserves which they are now confident about spending, and banks are looking at new opportunities with

regional medium sized operators. With this we’re seeing a welcome rise in the leisure industry. Venues are receiving more positive press and the transformation of Newcastle’s reputation as a party city, with obvious negative connotations, into a city of culture and diversity has the city centre exerting a strong pull on visitors once more. Choice is also a factor. Whether people want to visit a local pub for a quiet drink or are looking for a livelier city centre option, there are places catering for a range of tastes and budgets. So, with people having more cash in their pockets and hungry for more places to visit, venues must react, offering diversity and quality. Indeed there is already a trend discernible of the industry spending more to create attractive and innovative offerings in food, drinks and venues. Operators and investors, themselves enjoying a fresh appetite to grow and make money again, are helped by a new generation of individual talent emerging, which is all to the good of the regional economy. Longhorns on Newcastle’s Mosely Street, for example, has people queueing out of the door. The operator, though not running a big chain, has within a year opened another site in the city, at Jesmond. Such examples are injecting energy into the sector. For ourselves, we feel confident enough to be investing more than £4m in refurbishments over the next three years, starting with the sports pub Fluid Bar and Kitchen which has closed until September to allow a £590,000 makeover. Also, having noticed Newcastle in recent years veer more towards a female-friendly cosmopolitan area, we’re developing many of our bars and offerings in line with that. The recession prompted us to plan with caution. That doesn’t make for exciting business and, indeed, can even be nerve racking, since you daren’t do anything wrong. Now, though, the bigger regional operators can drive the growth, and with the police and council leaders supportive, it is great to know we’re being seen as a valuable contributor to the area’s economy once more. n

Brothers united Ollie Vaulkhard and his brother Harry co-own the Vaulkhard Leisure Group, formed when the two joined forces earlier this year, amalgamating their venues into one operation. Vaulkhard Group owns 14 bars, coffee shops and restaurants including Barluga, Perdu, and Central Bean.

Venues are receiving more positive press and the transformation of Newcastleâ&#x20AC;&#x2122;s reputation as a party city, with obvious negative connotations, into a city of culture and diversity has the city centre exerting a strong pull on visitors once more.

TALKING POINT bqlive.co.uk

Is it time a visual and permanent reminder of an outstanding North East entrepreneur and sportsman was created, Brian Nicholls asks as Newcastle International Airport celebrates its 80th anniversary?

Man of substance

TALKING POINT bqlive.co.uk

See how statues paying tribute to some of our most revered sports stars have become fashionable in the North East? Sunderland AFC has its representation of Bob Stokoe, a visual reminder of how he managed the club to an FA Cup win in 1973. Newcastle United has its effigies of Sir Bobby Robson, Jackie Milburn and, soon, Alan Shearer. So, on the 80th anniversary of Newcastle International Airport, what about a statue now of James Denyer - no footballer he, but a flyer whose two victories in the King’s Cup air race not only made North East history but also put Newcastle Airport on the aviation map? Such a tribute would not only mark Denyer’s 1956 and 1958 successes in the famous crosscountry air chase but also mark his immense achievement in pioneering the prestigious and successful business which Newcastle International Airport is today. Everything Denyer did, he did for that airport. “His enthusiasm inspired everyone who came in contact with him” – the words of Joe Hattam, a late alderman of Gateshead who, as chairman of the then airport board, worked closely with the former wartime fighter pilot who, in turn, became by sheer chance the airport’s most inspiring figure for 37 years. When Denyer was given responsibility of running the airport in 1952 it had, in his words, “a few huts, a couple of hangars and a bit of grass.” When he retired as the airport’s

managing director in 1989, 30 airlines were carrying 1.5m passengers to more than 40 destinations. Today 25 scheduled, charter and low cost airlines carry 4.6m passengers to 80 destinations directly, with further access to elsewhere from New York, London, Dubai, Paris, Brussels, Amsterdam, Copenhagen and Dublin. Nowadays the airport company is a public/ private partnership of seven local authorities (LA7) and AMP Capital, a Sydney based global investment house. The airport, employing 3,200 people on site, also supports 4,600 more jobs in the region and benefits the regional economy by perhaps £646m. Exports flown out on behalf of North East industry and commerce make up almost half that figure at £300m. And revenues now run at £58.6m. David Laws, the airport’s chief executive for eight years come this November, highlights two special stepping stones in this auspicious year: the launch of the North East’s first ever transatlantic service to the USA, and the opening of a new departure lounge marking £14m of recent investment in the airport. The transatlantic route that started in May, running till September at least, enables United Airlines to offer from Newcastle more than 300 other destinations besides. While many managements over the years have contributed to the good of this, the UK’s 10th largest airport, Denyer deserves tangible tribute for having laid the very foundations of its

business success. How humbly it all began. A Kentish man, Denyer had served his country boldly during World War Two, flying in 11 Group Command Beaufighters and Mosquitos in night raids over Germany, before moving to Transport Command and taking part in the Berlin airlift of 1949 that defeated Russia’s blockade of the city. Based later at RAF Ouston near Stamfordham, he then returned to the region in 1951, calleing in at Newcastle Aero Club where he asked if he could have lessons. This club, founded in 1925 with the establishment of an airfield in Cramlington, was reputedly the oldest flying club in the country and had relocated to Woolsington 10 years later when Newcastle Airport officially opened. There was little the club could teach Denyer, of course. So he was made chief flying instructor there instead. The following year, his true abilities realised, he was invited to build the airport into a commercial enterprise, an offer he couldn’t refuse. He was appointed airport commandant, then manager. Newcastle Airport, officially opened in 1935 at a cost of £35,000, comprised a grass runway, clubhouse, hangar, workshops and a garage, and so was little changed over the near two decades before Denyer’s arrival. The first scheduled service calling linked England with Scotland through an eight-seat Airspeed Envoy aircraft operated between Croydon and Perth, by North Eastern Airways.

While many managements over the years have contributed to the good of this, the UK’s 10th largest airport, Denyer deserves tangible tribute for having laid the very foundations of its business success.

TALKING POINT bqlive.co.uk

In the war subsequently, the airport had been requisitioned as an auxiliary RAF base. When handed back in 1946, one of its few new assets was an air traffic control tower – but built of wood on stilts, and supported by sections of railway lines. Would it continue to operate there? As early as 1929 it had been suggested an airport for the North East region should be built at White Mare Pool between Gateshead and South Shields. In 1929, three alternative sites were considered – all south of the Tyne at Portobello and Picktree, near Chester le Street, and at Houghton Gate. White Mare remained a consideration until 1955, when Denyer finally nailed Woolsington’s claim. He’d already secured new air services to give the existing site a buzz. He networked with local businesses and local authorities, massaging support throughout. The King’s Cup, which he entered on taking up air racing, had been inaugurated by King George V in 1922 to encourage the development of light aircraft and engine design. Denyer saw it more as an opportunity to raise Newcastle Airport’s image. He oversaw every stage of the airport’s early development to speed progress. He tackled anything necessary, even operating the radar and sprucing the place up with a paint pot. As new routes came in modern radar was installed, and other facilities all within his vision. By 1960, around 100,000 passengers used the airport. From 1963, his negotiating skills honed, he got Whitehall to accept development plans, and

a North East Regional Airport Committee was formed, comprising representatives of the local authorities for Newcastle, Gateshead, South Shields, Northumberland and County Durham. Coincidental with instilling team spirit and a sense of pride among committee members, and supervising still every stage of development, he spent a lot of time deep in negotiation with the full local authorities and central government. Matching an ex-fighter pilot’s concept of speed with that of Whitehall and local authorities could be frustrating. At one point, so much dodgeball had been played among various public bodies that by the time a new runway was finally agreed Denyer had

Efficient and friendly A little boat beached at Cullercoats for some reason is called James Denyer. That and the airport apart, there is little bar an official airport history to remember him by. His exemplary good work is sustained though. For two years running, Newcastle has been voted the UK’s best large airport by readers of Which? consumer magazine. It has been voted top UK airport by readers of Wanderlust travel magazine. There are other plaudits too, such as an Easyjet award for excellent customer service, a Thomas Cook award as best UK base on time performance and overall customer service, and a Jet2 award as best performing base last winter. Its fast and friendly service includes 97% of passengers being able to pass through security in six minutes. The seven local authorities with a stake in the airport comprise: Durham County, Gateshead, Newcastle City, Northumberland, North Tyneside, South Tyneside and Sunderland City. And the airport draws passengers not only from the North East but also Cumbria, the Scottish Borders and North Yorkshire. Hard-up though the 7LA are under government cutbacks, there must surely be enough businesses doing well out of the airport’s presence to consider subscribing to a lasting reminder of James Denyer’s contribution to the North East economy.

already got it completed. Could that happen today? Consider the charade that Heathrow is caught up in, and which has now cost it its claim to be the world’s busiest airport. Denyer, then, knew without a runway fit to take the growing size of commercial aircraft, airlines would ignore Newcastle. Continually in his tenure he worked to upgrade other facilities too. He was only 69 when he died in 1993, remembered affectionately as Mr Newcastle Airport. He would, without doubt, have been proud to see how his legacy has come on with millions of investment since: hotels springing up around it, the airport business park now under way, potentially to deliver more than 7,000 jobs, and a regional gross value added of more than £300m. Phase one, comprising 175,000 sq ft of office space, will accommodate up to 1,000 people. At the airport itself, even with recent recession, passenger numbers have grown by 2.2% over the past year - and for the daily Emirates flight to Dubai the growth is actually 8%. Air France and KLM have shown rises of 7% and 4% respectively. David Rees at AMP Capital says his company is proud to work with such an important regional asset. Councillor Iain Malcolm, leader of South Tyneside Council and chairman of LA7, declares: “The importance of air travel to the North East cannot be understated, and Newcastle International Airport is a key gateway.” We have suggested a statue for James Denyer. But even a bust somewhere prominently in the airport would be suitable. James Denyer, after all, was never one to push his own image. n

PROFILE MAS

Managing the ‘growing pains’ of North East manufacturing Lorraine Holmes, Area Director of the Business Growth Service, explains why ambition needs to be carefully managed by North East manufacturers if they are to reach their full potential. Five years on from arguably the harshest global recession for decades and it appears the UK economy has recovered better than most. Whilst none of us will be rolling out the bunting and celebratory cakes just yet, there does seem to be a more optimistic feel about doing business in the North East at the moment. Thousands of new jobs have been created in the last two years, finance seems to be flowing a little easier and ‘UK manufacturing’, in particular, appears to be flavour of the month. So what’s not to look forward to? On the surface, there doesn’t appear to be a better time to grow and we would echo those sentiments… albeit with a caveat that managing this growth is crucial.

‘Thousands of new jobs have been created in the last two years, finance seems to be flowing a little easier and ‘UK manufacturing’, in particular, appears to be flavour of the month.’ Expanding too quickly can sometimes be the downfall for companies overstretching themselves in both resources and finances. Industry possibly suffers more than most from this, with extended payment terms, up front investment and trying to anticipate rises in production. As part of the Business Growth Service, it is our role to make sure we support manufacturers who are looking to grow by evaluating their ambition, capability and the opportunity ahead of them. We have a number of Business Growth Managers – all experienced in industry – working with management teams in the North East to offer support in strategy development, lean manufacturing processes, new production introductions and supply chain management. There will also be a specific focus on identifying trigger points in our clients’ journey.

So what do we mean by that? Well, we are currently in the second part of our ‘Take Control of Growth’ campaign, which is using cuttingedge research, academic review and interviews with business owners to try to identify the patterns behind how firms expand. This tranche of research – due to be carried out between now and the end of September – is called ‘Modes of Growth’ and the first part addresses the issue of ‘Trigger Points’. It is believed that traditional views of companies growing through a life cycle are actually being replaced by a series of events that ‘trigger’ growth and, if these aren’t managed correctly it could actually be detrimental to the manufacturer. Anecdotal information in the North East reveals trigger points of growth around requirement for additional capacity and relocation, not to mention bridging the skills gap. We will use the lessons learned here to tailor our support and to bring in other specialist support partners. For example, our Business Growth Managers are trained in helping manufacturers apply for Regional Growth Funding to facilitate a factory move. Alternatively, we can also tap into grants to remove production bottlenecks and, through our GrowthAccelerator services, provide access to Leadership and Management training that can ensure the right people are making the right decisions.

Lorraine Holmes, Area Director of the Business Growth Service We have numerous examples of how we have already helped local manufacturers cope with their trigger points, including supporting Fuda Hobart Rose to reshore 20% of its production back to North Shields and accessing GROW funding to help Metaltech secure new orders in the offshore wind sector. In summary, we want manufacturers to be confident about embarking on expansion plans and creating jobs. Just don’t forget to tap into external support from the Business Growth Service and our partners…more times than not it can ensure the trigger points don’t cause you a negative reaction.

Telephone: 0300 303 0034 Website: www.greatbusiness.gov.uk/mas

Fuda Hobart Rose

Twitter: @mas_works

IN ANOTHER LIFE bqlive.co.uk

Robert Langley describes a skipper’s pleasure to be had in sailing away occasionally from a lawyer’s workload

Over the sea to bliss It’s four in the morning, dawn over Lindisfarne Castle, and I’m staring at a huge seal, just two metres from us. Unimpressed, he snorts and dives away. We’re rowing ashore in a rubber dinghy, thoroughly frightened now, from our yacht Pendragon anchored in the bay. We’re taking part in Northumberland’s unique running and sailing race, the Castles and Islands Challenge. Every June, teams of runners and sailors set out from Alnwick Castle to run to Amble then the sailors take over, heading out to sea as the sun sets, to sail up to Holy Island through the rock-strewn Farne Islands in the dark. It’s a gruelling all-night test of stamina, with a tight deadline of 24 hours in which to sail 85 miles and run 30 more. Not all crews will make it. Fortunately, as skipper, I don’t have to run. But there’s a lot of rowing and sailing to do. My main job is to navigate us in and out of four anchorages in the dark, without hitting a rock or losing a crew member. Engines can’t be used, so it’s a tough test of good old-fashioned seamanship. Later that Saturday morning, sailing

Other people have caravans or beach huts. We have a fibreglass holiday home that goes up and down, and makes you feel sick. back to Seahouses for our next running race (to Bamburgh Castle along the beach) we’re surrounded by dolphins. Around the boat they play, diving under the bow and surfing on our bow wave, the morning sun bright on their dorsal fins. It’s a very special moment, the sails are setting well, and the boat is making eight knots with the south-going tide. I’ve had no sleep, but I’m happy. This is one of the more unusual things we get up to on the family boat Pendragon. She’s a 37ft sailing yacht, built in Sweden and very much part of our family. Other people have caravans or beach huts. We have a fibreglass holiday home that goes up and down, and makes you feel sick. In working life I’m a lawyer, always worrying about clients’ problems,

concerned about deadlines, striving for excellence. At sea, I set my own targets, control my own deadlines, and all the worries disappear. The same focus on excellence is vital. There’s no room for second best when you’re planning a voyage across 350 miles of open ocean to Norway, or working out the height of tide needed to get safely over the shallow bit at the entrance to Whitby Harbour. We’ve always been a sailing family - since my wife’s GP told her a “sea cruise” would be a great experience for an expectant mother. We hired a little sailing yacht in Greece and sailed around Corfu and Ithaca. Nowadays we keep our family boat in Royal Quays Marina, and try to get over to mainland Europe every summer on holiday. The North Sea isn’t quite the same as the Mediterranean. But sometimes, as the sun rises out of the sea and the boat lifts to the endless waves, we’re a long, long way from the office.n Robert Langley is partner and head of construction and engineering, Muckle LLP

PROFILE Perfect Image

Perfect Image: Proud to be in the North East Andrew Robson is the CEO of Perfect Image, a North East-based IT services company delivering tailored solutions and services to organisations across the UK.

Andrew Robson, CEO of PerfectImage Here, he talks about the IT expertise in the North East and how the sector is underpinning economy recovery in the region and beyond. Cast your mind back. If you heard the words ‘North East’, what did you picture in your mind’s eye? Chances are, a few years ago, you wouldn’t have imaged in a burgeoning IT scene. Rather, two decades ago, the words ‘North East’ were

‘We also announced a number of new partnerships with industry-leading international technology providers including Amazon Web Services, Alteryx, Extreme Networks and Arcserve.’

synonymous with labour-intensive and heavy-duty industries, like ship building and coal mining. Today, gone are the pits and the ship yards, and so now, the same two words paint a very different picture of the region. Thanks to organisations like Sunderland Software City and initiatives such as Dynamo, as well as Newcastle University’s Cloud Innovation Centre, our region has enjoyed a renaissance; it has reinvented itself as a hub of IT innovation. With world-class academics and top-of-their-game professionals working across the North East, the region is certainly the place to be if you work in IT. It’s a fact: we’re no longer exporting coal out of the region; instead it’s code. It’s been widely acknowledged in many different reports and studies that over 25,000 people in the North East now work in the IT sector – and this number is growing. The region also has the second-highest rate of new startups in the UK behind Silicon Roundabout in London, and it’s for this reason, the IT sector is underpinning our region’s economic recovery. Think about it. Almost every type of business or organisation you can imagine – regardless of shape, size or sector, relies on some form of IT to keep its operations ticking over. Every one, everywhere needs some form of IT just to operate in today’s markets and digital world. Could you really do business today without access to email? Could you really afford be out of the office for great lengths of time without staying connected to your colleagues through your tablet or smart phone? What about that week long business trip to China? Can you warrant spending hours on a plane to meet a supplier when a 30 minute video conferencing call is more than sufficient? I didn’t think so – IT underpins all business in the North East and beyond, and therefore the sector is boosting our regional economy too. We recently announced our company results and the stats say it all. Over the past year we’ve seen revenue growth increase by 47% to £5.7million, and projections for 2015/16 indicate another strong year ahead. In addition, we’ve added to our client portfolio with big blue chips and brand names including Virgin Media, PwC, Camden Council and Euro Car Parts.

Over the past 12 months we’ve also moved to a larger office on the Cobalt Business Park as a result of our rapid growth, and in addition to our relocation, we also announced a number of new partnerships with industry-leading international technology providers including Amazon Web Services, Alteryx, Extreme Networks and Arcserve. Don’t forget our continuous recruitment drive – we’re always keen to work with the best business and IT professionals in the region. There’s no doubt about it, and Perfect Image is living proof, IT organisations are at the top of their game in the North East. To be part of the cohort of professionals bringing ground-breaking technologies to market to help make organisations across the region run more efficiently - which can only have a positive impact on the local economy - is hugely exciting. It once may have been considered ‘grim up North’, but I’d say thanks to the growing IT sector in the region, our future is looking brighter than ever.

‘It’s a fact: we’re no longer exporting coal out of the region; instead it’s code. It’s been widely acknowledged in many different reports and studies that over 25,000 people in the North East now work in the IT sector – and this number is growing.’

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

PRINCE’S TRUST

Inspiring young lives £45,000 shooting

The latest annual Bond Dickinson clay shoot in support of The Prince’s Trust has raised more than £45,000. The fourth annual shoot on Lambton Estate was jointly hosted by law firm Bond Dickinson and John Holland of J R Holland Food Services. Altogether 25 teams competed for prizes ranging from signed rugby shirts to helicopter rides, all of which helped raise the record amount. This takes the total raised from the event over four years to around £200,000. Guests also enjoyed a three course meal, and speeches by comedian and Prince’s Trust ambassador Omid Djalili. John Marshall, vice-chairman of Bond Dickinson, says: “We’re proud to continue supporting The Prince’s Trust in their mission to give 13-30 year olds practical and financial support they need to improve their lives. With youth unemployment an ongoing major concern, the Trust offers hope and opportunities to thousands of young people across the UK.” He thanked John Holland for his continued support, and sponsors and guests for their “amazing” generosity.

“We’re proud to continue supporting The Prince’s Trust in their mission to give 13-30 year olds practical and financial support they need to improve their lives.” John Marshall

Old and new: nostalgic Beamish Museum, a welcoming venue for innovation

Innovation’s the buzzword Innovation was the buzzword when business leaders gathered to hear a variety of views from speakers at a networking event The Prince’s Trust North East Leadership Group held at Beamish Museum. Speakers included Richard Evans the museum’s director, Andy Smith and Gary Martin, co-founders of Videre Global, plus a Prince’s Trust Young Ambassador who shared their experiences. Guests time travelled, firstly experiencing how Victorians revolutionised the industrial world, then hearing from the guest speakers who are continuing to revolutionise their sectors as modern innovators. The evening ended with a tour of the lamp cabin exhibition room, plus a guided drift mine tour, and fish and chips from Davy’s onsite fried fish shop. Local young people who have been set up in business with help from The Trust mingled during the evening with the interesting mix of successful entrepreneurs, organisations and business leaders from across the region.

Doubly celebrating The annual star studded Benfield Charity Golf Day will this year be on Friday, 2 October at Close House Hotel, followed by the Benfield Corporate Gala Dinner at the Hilton in Gateshead. Teams will breakfast at Close House before setting out on the two courses. The evening event at the Hilton will include a four course dinner and champagne reception, a charity auction, prizegiving and celebrity entertainment. Team entry costs £1,250 plus VAT and includes a team of four for both the golf day and gala dinner. Additional tickets to the dinner will cost £100 each plus VAT. Other opportunities available on the day include hole sponsorship, advertising in the event brochure, trade stand opportunities and donations of items to auction.

Further details can be had from Zoe Mulvenna: zoe.mulvenna@princes-trust. org.uk or call 0191 497 3212.

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MEDIA BRIEFS

bqlive.co.uk

Examining the news behind the headlines

A lesson not too late for the learning Thirty years after the Miners’ Strike, many families have still not recovered. Some former friends and relations remain divided, and unemployment remains unacceptably high in pockets of our North East region, as in other former coal towns and villages, despite shiny buildings put up with good intention to induce alternative livelihoods. With wrong still evident on both sides, the memory of this sad social and economic breakdown needs to be kept alive as a lesson of how never to conduct industrial and political relations again. So while BQ is into business rather than music we feel it right to highlight here, within perspective, a film and music enterprise that combines compelling black and white photography of strike scenes in Easington with a cycle of 10 songs it has since inspired the delightful Elsdon, Northumberland, folk singer Brenda Heslop to compose and perform. Brenda, a working shepherd with eight studio albums to her name, is backed by Ribbon Road husband Geoff and daughter Jill, that is - Geoff having backed also the like of Kathryn Tickell, Bert Jansch, Rab Noakes, Alan Hull and Five Hand Reel. I’ve never heard a folk song yet that champions bosses - maybe you haven’t either, writes The Scrutator. But although this visual song cycle maintains that tradition, it remains a performance quite moving. They launched the work to a sellout at

Brenda is backed by Ribbon Road

Edinburgh Fringe Festival last year, and are now offering to perform for organisations or venues interested. Key in www.ribbonroadmusic.com and get the gist.

Remarkable rubbish

For job seekers

While a lot of TV is rubbish, you’ll agree, it’s programmes about disposal of our rubbish that I’ve found among the most interesting recently. Full marks to the Open University for showing us on BBC 4 how Newcastle’s refuse clearing centre at Byker is recycling waste into fuel and shipping it from Blyth to homesteads of Sweden. My only concern after watching: why is the city paying the Swedes to take it off our hands? Surely it should be profitably sold…

Why You, 101 Interview Questions You’ll Never Fear Again by James Reed (Portfolio Penguin p’back £9.99): Drawing on contacts with hundreds of interviewers, the chairman of Reed recruitment specialists gives an invaluable brief on the real meaning behind bland interview questions like “tell me about yourself” and “what are your greatest weaknesses”? The Scrutator

Biz Quiz 1. How much are small businesses estimated officially to be owed in late payments currently? 2. Name the UK’s largest privately owned distributor of bicycle parts and accessories, which has recently moved its headquarters to Darlington. 3. A well known North East provider of retro football shirts is celebrating its 25th year in business. But who is the husband and wife team behind the Old Fashioned Football Shirt Company at Gateshead? 4. Name the BBC’s national “business breakfast” presenter from Teesside. 5. When did Hartlepool’s nuclear power station start supplying electricity to the market?

Michele Finch. 4 Steph McGovern. 5 1972. ANSWERS: 1 £30,000. 2 Zyro. 3 Alan and

MADE

The Entrepreneur Festival: Sheffield

Sheffield City Hall madefestival.com 22 October 2015 9.00am – 6.00pm

Annabel Karmel MBE

Entrepreneurship is not a part-time job. It’s not even a full-time job. It’s a lifestyle. Event Sponsors:

The Sheffield College

JOIN US FOR THE UK’S MOST INSPIRING FESTIVAL OF ENTREPRENEURSHIP • ANNABEL KARMEL MBE • JB GILL • GEOFF RAMM • JOE MCEWAN

• JUDE OWER • NIGEL RISNER • JOHN MARREN • PETRA WETZEL

Audio & Visual Partner:

MADE brings together the UK’s most successful entrepreneurs, business owners, incredible inventors and magnificent makers. Be inspired, share insider tips, gain practical support, network, meet funders and investors and promote your business.

Partner Sponsors:

Book your place: www.madefestival.com 0191 389 8502 @MADEfestival #MADE2015 Delivered by:

facebook.com/MADEFestival

paul.clark@be-group.co.uk

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BIT OF A CHAT

bqlive.co.uk

Frank Tock’s examining the news behind the headlines Keep your hair on Enquiries into hair transplant surgeries in the UK have jumped by more than 230% in the past year - despite the crème de la hair crème among them costing nearly £5,000. For hair loss clinics it has meant a 165% surge in enquiries. If you want to look a smidgin like Wayne Rooney or James Nesbitt be advised you can also get treatments in Turkey for about a quarter of the price here – and in India for about 10% of the UK average. If you’re a builder of course you’ll have no worries about appearance…

“If you want to look a smidgin like Wayne Rooney or James Nesbitt be advised you can also get treatments in Turkey for about a quarter of the price here”

Lovely lads Builders, incidentally, now rank among the Top 10 “sexiest” occupations, I see. While the top three spots of armed forces, pilots and nurses confirm that we love a uniform, builders get onto the list ahead of graphic designers, bankers and boardroom bosses. And who commissioned this illuminating research? The Federation of Master Builders.

Touchdown for Rory Well, here’s a pass from Alcumus – it has a former Barney Boy as its new development director. The business problem solvers of Aylesbury, Buckinghamshire, in signing up former British Lion and England rugby international Rory Underwood, move him from wing, where he once played on the turf, to centre of their operations. Though best remembered for his brilliance during 85 caps and 49 record breaking tries scored for England, Flt Lt Underwood also notched up 3,000 hours during his 18-plus years in the RAF, both as a jet pilot and a human factors trainer in quality and risk management, including crew resource management training. In 2009 the former Barnard Castle School pupil established Wingman, a consultancy developing individuals and teams inside organisations, and whose facilities include a suite of development workshops and programmes adjustable to specific needs. At Alcumus, which is backed by Sovereign Capital the private equity buy and build specialist, Underwood will focus as development director, supporting risk management growth strategies in property, construction, retail and manufacturing sectors, and opportunities for behavioural safety leadership. Alcumus, a specialist also in certification, lists among clients Morgan Sindall, Transport for London, Laing O’Rourke, Subsea7, John Lewis Partnership, Sodexo, Dolce & Gabbana, Compass Group and Sainsbury’s. No second XV types there, then. Underwood, still proud of his old school, was delighted that other rugby professionals from there, along with other alumni, governors and staff, were recently among 70 guests attending, ahead of the Rugby World Cup, a celebration of the game at the East India Club in London. On opportunities for behavioural safety leadership, maybe he could now be persuaded to make a head-banging return north briefly, to convince members of the North East Combined Authority that the longer they reject the Government’s insistence on an elected mayor in return for devolution, the faster their region will fall behind the like of Manchester, Leeds and Sheffield. Unless of course Lord Shipley and Lord Beecham, by their victory on the matter in the Upper House, have done enough to settle it, in which case maybe those two doughty fighters should be on Alcumus’s books too...

Personal investment services In the heart of

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EVENTS

bqlive.co.uk

BQ’s business diary helps you forward plan

AUGUST

10 Understanding and Avoiding Stress, Service

Network training event, Toffee Factory, Newcastle

04 Business Durham NETPark networking breakfast 10 Durham University Business School MBA virtual open

(8.30am). Register online

event

Tyneside Business Forum event, Town Hall

12 Stand Up and Be Counted, NECC event, Acklam Green

Chamber, Wallsend (8am)

Centre, Middlesbrough (10am)

10 Creating Relationships Based on Trust, North

16 CBI NE Regional Council, Watson Burton Newcastle

14 Mussel Club Breakfast, Dr Feelgood’s, Sunderland (8am) 21 Mussel Club Breakfast, @Evans Easyspace, Newton Aycliffe

(9.30am)

(8am)

25 Durham University Business School MBA open event 26 NOF Energy Oil and Gas Market Briefing, NOF , Durham 26 NECC/Cumbria Chamber of Commerce Exchange Event,

17 Export Processes, Compliance and Documentation,

Slaley Hall, Hexham (10.30am).

SEPTEMBER

02 NECC Team Valley Monthly, Gateshead (8.30am) 03 NOF Introduction to Offshore Renewables, NOF, Durham 03 International Payment Methods and Letters of Credit,

NECC briefing, Durham CCC, Chester le Street (9am)

17 NECC 200th Anniversary Gala Dinner, Durham

Cloisters (5.30pm) NECC workshop, Durham CCC, Chester le Street

(9am)

22 Framework Contracts, CECA (NE)/Watson Burton

presentation, Durham CCC, Chester le Street

(8am). 0191 228 0900

The North East’s first Automotive Expo, run by the

24 North East Automotive Alliance at the Stadium of

Light, Sunderland.

29 Import Processes, Compliance and Documentation,

03 Become a Marketing Expert in a Day, CIM workshop with

North East Sales and Marketing Academy, Newcastle.

(9am)

01628 427 340, http://regions.cim.co.uk/North

07 NOF Energy’s Inward Visit from South Korea 08 CBI NE M Club (energy) CBI Newcastle (8.15am) and MPI

Middlesbrough (noon)

08 Business Confidence and Economic Review, NorSCA

NECC workshop, Durham CCC, Chester le Street

OCTOBER

01 North East of England/ South Africa, Trade and

Co-operation Conference, Newcastle Civic Centre,

B’k o’line through NECC.

lunch with the Bank of England, speakers Mauricio

01 Rugby World Cup dinner, Newcastle Civic Centre

Armellini (Bank of England’s North East agent) and Keith

Proudfoot, ICAEW regional director), Riverside Stadium,

22 MADE: The Entrepreneur Festival 2015, Sheffield

Middlesbrough (noon)

(5.30pm). Book online through NECC City Hall, 9am - 6pm, www.madefestival.com

09 Finance Acts 2015, NorSCA briefing, Marriott

Metrocentre (noon)

Helps event organisers to avoid clashing dates. To add your event to the list send details to b.g.nicholls@btinternet.com. The diary is updated daily online at www.bqlive.co.uk. 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

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