BQ North East Spring 2016 by We Are UMi

Co-operate to compete Carlisleâ&#x20AC;&#x2122;s businesses should work together to win new business

BUSINESS QUARTER

North East & Cumbria: Spring 2016

Celebrating and inspiring entrepreneurship

Entrepreneurs by Degree A university education that is teaching business skills

Roar of the countryside Hall of Rallying fame on the Border of the Lakes

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North East & Cumbria: Spring 2016

Stone on a roll

Businessman climbs high but stays down-to-earth

ENTREPRENEU R IN TER VIEW S

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APPLY NOW A grant scheme for businesses based in the North East. The projects we can support are those which: Involve expenditure of £200,000 or more on capital assets or R&D and, where appropriate, training costs as part of a capital investment project Haven’t yet started Will be complete by March 2017 Will create or safeguard permanent, sustainable jobs Offer good value for money in terms of value of grant per job created Make a clear case for needing grant support Have adequate private sector funding for the project Comply with State Aid regulations

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EDITOR’S VIEW NORTH EAST ISSUE 32 In this issue the considerations that preceded the ‘integration’ of the North East’s biggest family business, Benfield Motors, by Lookers plc. Relevantly, experts taking part in BQ’s Live Debate on mergers of law firms, also covered in this issue, seemed strongly convinced that culture is a vital factor in any merger, and that instant growth as a sole reason to proceed, however tempting, is inadvisable. The amorphous term ‘Northern Powerhouse’ continues to suggest excitement but as yet seems wanting in form. The possibilities deserve further investigation, however. The North East and Cumbria already seem to be edging closer to mutual benefit, and where more excitingly could an early powerhouse banner fly than in international motor sport. Malcolm Wilson’s story in this domain is stirring - not only his earlier achievements as an international rally star, but in his feat also of having built now a unique sports business and industry in Lakeland. Any export-orientated North company anxious to have its name flaunted abroad – could find opportunity through Malcolm’s M-Sport this year. Still on the west side, we commend businessman Steve Matthews’s ambition to see a business improvement district introduced in Carlisle which might go some way towards helping this fine historic city recover from its recurrent curse of flooding. And, back on this side of the Pennines, we salute Dave Stone, who has attained greater heights than many of us dare to aspire to. We are pleased to say BQ will shortly extend its complementary (and complimentary!) targeted online breakfast news services into the North West, London and the South East. This is in addition to the dedicated services BQ provides in print and online to Yorkshire, Scotland and the West Midlands. Brian Nicholls, BQ Editor

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room501 Publishing Ltd, Spectrum 6, Spectrum Business Park, Seaham, SR7 7TT. www.bqlive.co.uk. Business Quarter (BQ) is a leading national business brand recognised for celebrating and inspiring entrepreneurship. The multi-platform brand currently reaches entrepreneurs and senior business executives across the North East and Cumbria, Scotland, Yorkshire and the West Midlands. BQ has established a UK wide regional approach to business engagement reaching a highly targeted audience of entrepreneurs and senior executives in high growth businesses both in-print, online and through branded events. All contents copyright © 2016 room501 Ltd. All rights reserved. While every effort is made to ensure accuracy, no responsibility can be accepted for inaccuracies, howsoever caused. No liability can be accepted for illustrations, photographs, artwork or advertising materials while in transmission or with the publisher or their agents. All content marked ‘Profile’ and ‘Special Feature’ is paid for advertising. All information is correct at time of going to print, March 2016.

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CONTENTS

Spring 15 38

Q U E S T I O N O F L AW Breakfast Live discussion on a professions feature

TOUGH AT THE TOP Dave Stone’s steeplejack business serves the nations landmarks

28 LET’S CO-OPERATE TO COMPETE

One man’s plan to revive his historic city

MOTOR MAN

HALL OF R A L LY I N G F A M E

Business Lunch with Nigel McMinn

Automotive niche at the Gateway to the Lakes

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Celebrating and inspir ing entrepreneurship

FEATURES

REGULARS

TOUGH AT THE TOP Dave Stone’s steeplejack business serves the nations landmarks

BUSINESS UPDATE Roundup of business news from around the region

LET’S CO-OPERATE TO COMPETE Steve Matthews’s plans to revive the historic city of Carlisle

AS I SEE IT Chris Lee says telecoms and IT small print should play fair

A Q U E S T I O N O F L AW BQ Breakfast Live discussion in which leading lawyers contemplate the future

COMMERCIAL PROPERT Y A look at the latest deals

BUSINESS LUNCH Lookers’ Nigel McMinn on the Benfield acquisition and motor trade consolidation

CONFERENCING AND EVENTS Profiling some great venues for business

IN ANOTHER LIFE What might have been for Richard Hogg

PRINCE’S TRUS T Inspiring young lives

MEDIA BRIEFS Observing the observers

64 68

ENTREPRENEURS BY DEGREE How Newcastle Business School is using some Finnish expertise H A L L O F R A L LY I N G F A M E Automotive niche near Lakes and Fells

SPECIAL FEATURE 24 PAG E A P P R E N T I C E S H I P S E C T I O N Building the skills for tomorrow

60 64 ENTREPRENEUR BY DEGREE Finnish expertise creating university entrepreneur

MEMORIES ARE MADE OF THESE Steve Grant, group managing director, the TTE Technical Training Group, samples two wines

FACT OF THE QUARTER Just eight months after its launch, the North East Automotive Alliance (NEAA) is the UK’s fastest growing cluster and could soon be the largest automotive cluster.

BUSINESS UPDATE Bridge progresses Work on foundations of Sunderland’s new bridge over the Wear is now under way. The Claude Monique – a barge (above) bearing two cranes and piling equipment has been providing a platform for the construction team to work from.

Beware, fraudsters The value of North East fraud surged by 746% last year – the highest rise in the UK, after a case of £111m featured. KPMG’s Fraud Barometer, which tallies fraud cases with losses of £100,000-plus reaching the UK courts, has found the value of fraud across the North East soared by £139.4m in all, compared to £16.5m in 2014. The number of cases had actually fallen – by 27%. Only 16 fraud cases came before the region’s courts in 2015, compared to 22 in the previous year. Of these, there was a 40% fall in the volume of low-value crimes. Notable cases of 2015 included: Teesside: A 57-year old

businessman jailed for five-and-a-half years after masterminding one of the biggest mortgage scams in the UK, with losses of more than £111m to three lenders. Newcastle: a 64-year old caretaker jailed for two years after selling £1m of illicit cigarettes, tobacco and alcohol from an industrial estate. Customs officers seized more than 1.5m cigarettes, three tonnes of hand-rolling tobacco and 18,000 litres of beer, wine and spirits. The goods were worth £946,623 in unpaid duty and VAT. Stockton: a 62-year old businessman jailed for funding a luxury lifestyle with an £840,000 tax fraud. He failed to register the company for VAT, despite still charging clients, and avoided paying more than £450,000 in VAT payments. He also avoided paying a further £390,000 in income tax. Sara Smith, senior manager, KPMG Forensic in the North East, said: “Despite fewer cases the latest Barometer spotlights the impact of ‘super’ frauds. Many business owners also fall victim to unscrupulous employees and if owners don’t keep a rigorous check on a firm’s finances, such people will continue to exploit their position until caught.”

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

Bridge: Work underway on Sunderland’s new crossing

The Institute of Directors in the North East brought together all three of the region’s police and crime commissioners to talk with the region’s business community on crime prevention and enforcement. Nearly 60% of UK SMEs are at huge risk of a security breach simply because of little or no visitor security, Digital ID the access control and smart card firm reckons.

Why this is the ‘Spring’ edition Sharp-eyed readers might have been expecting this edition to be labelled ‘Winter’, as the previous edition was ‘Autumn’. We’ve decided on ‘Spring’ because we feel into a new season and of course our 2016 Yearbook has already provided 180 pages of winter reading. We thought we’d explain, so no-one thinks they’ve missed an edition. If you have queries about this, feel free to ask me at b.g.nicholls@btinternet.com

BUSINESS UPDATE bqlive.co.uk

ACHIEVERS

QUOTE OF THE QUARTER “Though we’re using credit and debit cards more than ever, people still have cash in their wallet. It’s convenient, free at point of use, classless… and most of all reliable. Cash is the payment mechanism of last resort. It will still work when there’s a power cut or the card reader won’t scan.” – Martin Sutherland, chief executive of De La Rue, which produces the UK’s £64bn of banknotes in circulation, earns 85% of its business in 140 foreign countries, and includes Gateshead as one of its three global centres of excellence. (Quoted in The Daily Telegraph).

Caroline Theobald - founding managing director of Bridge Club Ltd, CBE for services to business and entrepreneurship. Bob Paton - managing director of Accenture’s Newcastle delivery centre, CBE for his contribution to IT skills and apprenticeships in the North East.

Andrew Moffat - chief executive, Port of Tyne, CBE for services to the North East economy and UK ports.

Syd Howarth - founder of Newton News, Newton Aycliffe’s local newspaper for 52 years, MBE for services to the community.

Sarah Stewart – chief executive, Newcastle Gateshead Initiative, OBE for services to the North East economy.

Linda Conlon – chief executive, International Centre for Life, Newcastle, for services to science and science education.

Giselle Stewart - head of Ubisoft’s corporate affairs in the North East (and formerly of Newcastle Reflections Studio), OBE for services to computer games industry in the North East.

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Bottling well: (l-r) Martin Thornton, managing director of Contract Bottling, with Cllr Harry Trueman, deputy leader of Sunderland City Council

It’s Drinks to success CBL Drinks, Britain’s leading contract bottler based in Sunderland, has tripled turnover in four years reaching a record £12m. The company employs 70 staff and plans to invest in a fourth bottling line. Its customers include Tesco, Sainsbury’s and Waitrose, Booker and Home Bargains. It also exports to mainland Europe and Saudi Arabia.

Graphene advance Thomas Swan the Consett producer of graphene, nanotubes and other advanced materials, has introduced two new graphene grades in its Elicarb range suitable for electronics and displays applications. One powder is for conductive inks, the other for composites and plastics.

Pork’s paying well Long established South Shields based pork butcher Dicksons, previously focused on Tyneside and Northumberland, has opened its 25th shop at Peterlee in East Durham. It

has also opened at Battle Hill, Wallsend. Some £175,000 of investment, including a third outlet, raises the workforce to 300.

Sara on the move

Award winning entrepreneur Sara Davies is moving her international paper crafters’ supply business Crafter’s Companion from Coundon, Bishop Auckland, to a former car showroom at nearby Newton Aycliffe. The move to premises occupied by Hollways Ford dealership before it went into administration in 2012 heralds a drive to get turnover up to £15m and the workforce from 45 to 60.

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Digi-business booms Digital industries in Newcastle and Durham generated the second highest advertised digital salary growth of any cluster in the UK (26.6%) as these areas show turnover growth of 29% and GVA growth rate of 35% – all supporting North East claims to act as the tech vanguard if the Northern Powerhouse gains traction. Jobs have risen by almost 17% since 2010 in Sunderland’s sector where, besides a longstanding specialism in app and software development, the city is growing expertise in hardware, gaming and telecommunications. Businesses within its cluster showed 44% average growth in turnover (2010-2014) and 29% growth in GVA (2010-2014). These findings are in the state-backed Tech City UK’s 2016 report, which says the UK’s entire

digital industries, (total turnover £161bn), are growing 32% faster than the rest of the economy. There are now 283,515 people employed in the sector throughout the North. Herb Kim, executive chairman of Tech North, says: “This report not only shows extraordinary growth rate in our digital tech industry, but also its profound influence on non-digital industries.” North East IT support specialist Onyx Group, whose clients include Newcastle United, has reported a year of record revenue growth and earnings following a £10m acquisition of Knowledge IT in 2014. Turnover now stands at £28.3m.

Graphene v corrosion Applied Graphene Materials, the innovative Wilton firm whose recent shares placement

Alasdair MacConachie (centre) celebrates 35 years as head of Sherwoods with (l-r) PA Jane Longstaff, financial director Catherine Sunley, Alasdair MacConachie, Val MacConachie and Simon MacConachie.

raised £8.5m, is now working to develop graphene based anti-corrosive coatings with Sherwin-Williams Protective & Marine Coatings (the largest US paint producer) and TWI Ltd (world leader in materials and corrosion management). Innovate UK are co-funding this collaboration. Corrosion costs the British economy £10bn a year, mainly in construction, petrochemicals and transport.

Rolls-Royce accelerates Rolls-Royce’s new £30m-plus manufacturing plant coming up at Washington will be able to turn out more than 1,500 fan and turbine discs a year for use in a wide range of engines when it is fully operating in 2018. Staff from the existing Sunderland plant will start to relocate there from 2017, and the vacated site will probably close in 2019.

Closer to nuclear International engineering consultancy WYG, which has an operation at Cockermouth, has bought a Cumbrian land and property consultant to close in on nuclear industry work. It is paying £5m for North Associates (Cumbria) and its subsidiary Taylor & Hardy, making it now one of the UK’s largest property asset management and planning consultancies. WYG, already versed in the nuclear sector, hopes to benefit from £90bn of investment proposed for Britain’s ‘Energy Coast’ off West Cumbria. North Associates’ pre-tax profit last year was nearly £500,000 on turnover of £3m.

Into the hot seat Dealing in happiness It’s been a particular time of celebration for two North East motor dealers. In Darlington Alasdair MacConachie, 69, has marked his 35 years as head of one of the most successful Vauxhall franchises in the UK. And at South Shields, since officially becoming Tyneside’s flagship Mitsubishi motor dealership in 2014, managing director Vic Young (above right) through Vic Young (South Shields) Ltd has exceeded Mitsubishi’s sales target by 74%. Over a year it has also recorded 97% customer satisfaction rate for its service, taken on 14 more staff, and invested £450,000 in a new service centre. Young has more than 40 years’ experience in the trade. MacConachie, born in India and educated in Rhodesia, followed his father into a military career before working for Anglo American and DeBeers Mining and Ford Motor Company. He joined Sherwoods as director (commercial vehicles) in 1981, later taking full control of the company.

Andrew Hodgson, formerly vice-chairman of the North East Local Enterprise Partnership (NELEP) has succeeded Paul Woolston as chairman, following the latter’s resignation. Hodgson, chief executive of Soil Machine Dynamics, is also a former North East Business Executive of the Year. The North East Investment Fund, which NELEP runs, has now invested over £58m into the regional economy by giving grants to more than 20 schemes, using Regional Growth Fund and Growing Places Fund money to back the projects.

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Security firm follows the Gulf stream OpSec the Sunderland firm considered a potential global leader in anti-counterfeiting technologies and services, has gone to Orca Holdings for £66.7m. The purchase came through Orca Holdings Ltd, formed for the purpose by Investcorp Technology Partners. This is part of Investcorp, a provider and manager of alternative investment products, with over $12bn of assets under management. Founded in 1982 by a group of leading Gulf Arab businessmen, Investcorp now has offices in New York, London and Bahrain. It is traded on the London and Bahrain Stock Exchanges. Investcorp also operates in private equity, hedge funds, real estate and Gulf growth capital, and has held equity in OpSec for more than five years. Hazem Ben-Gacem, Investcorp’s group managing director and co-head, says further resources and capital will be committed, expecting OpSec to become a global leader in providing anti-counterfeiting solutions to brands and governments. Investcorp’s other investments recently have been in a leading telematics software solutions provider, a provider of identity theft protection software, one of the largest privately-owned IT security and data protection companies, and Europe’s leading independent electronic money

issuer and online payment system. Richard Cremona, OpSec’s chief executive and one of its independent directors, said OpSec’s shareholders had been given opportunity to make a cash exit at “substantial” premium to a recent market price.

NEWS MAKERS

Switching markets Filtronic has switched trading its shares from the main market of the London Stock Exchange to the AIM. The Yeadon, West Yorkshire, designer and manufacturer of microwave parts and subsystems runs its UK broadband business from Newton Aycliffe. The move was part of a bid to raise £4.5m.

More firms formed More companies than ever before were registered in Tyne and Wear last year. The 6,042 formed were up from 5,832 – giving 3.6% growth. The breakdown: 1,966 in Newcastle, 1,114 on North Tyneside, 1,084 in Sunderland, 1,073 in Gateshead, and 805 on South Tyneside. The statistics were compiled by www.informdirect.co.uk, provider of online company formations and secretarial software, using data from Companies House and the Office of National Statistics.

Jobs barometer GAINS 650 more jobs at the Newton Aycliffe lawnmower manufacturer Husqvarna. 350 more likely at Nifco the Eaglescliffe car parts maker. 200 at Utilitywise on North Tyneside. 100 more – on top of 80 created last year – as Newcastle Building Society launches a £10m investment upgrading of its branch network but closing branches in Gateshead, Heaton and Wallsend. 100 at least for a £4M care home Lenore Specialist Care is having built at North Shields. 100 at Future Planning, provider of financial products for over 50s, as it relocates from Shildon to Sunderland. 60 new jobs in Consett’s former KP crisps factory, brought with inward arrival of BTL, manufacturer and distributor of engineering products. LOSSES 4,000 maximum likely directly and indirectly following SSI steel closure at Redcar. 3,000 likely to go with the closure of six North East tax offices in Sunderland, Stockton, Middlesbrough (two), Washington and Peterlee.

Jules Quinn (above) – founder of The Teashed beverage business in 2011 on graduating at 22 from Northumbria University is into the first Forbes 30 Under 30 Europe list. The business has relocated from the Design Centre, Gateshead, to Hoult’s Yard, Newcastle.

Sarah Glendinning - now CBI’s regional director for the North East. Formerly with Nigel Wright recruitment group. Sarah joined the CBI in 2015 as assistant regional director. David Laws - chief executive of Newcastle International Airport, voted North East Business Executive of the Year. Dan Robinson - chairman of Hartlepool builder Gus Robinson Developments, named as having SME Company of the Year by the Institute of Directors.

Stephen Kelly - chief executive of Sage Group, appointed a government’s business ambassador working with UKTI to promote British interests abroad. Ian Dormer - managing director, Rosh Engineering, Birtley, and former national chairman of the For up-to-da Institute of Directors, CBE for business ne te ws sign up for BQ services to business, particularly Breakfast in the North-East.

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East-West revolution on the rails Train passengers journeying between Newcastle and Liverpool should be on a fully electrified rail route by 2022 under Arriva Rail North’s contract recently signed with the Department for Transport. The improvements putting the Northern Powerhouse programme on track will bring what the Government claims is the biggest transformation to rail journeys in the North of England and Scotland in decades. A £1.2bn boost will include 500 new carriages, room for 40,000 more passengers, and 2,000 extra services a week. Franchises will be jointly managed from Leeds by the Department for Transport (DfT) and Rail North Limited. Greater regularity is expected, plus better offpeak and Sunday services, improved stations and ticketing. Rail North will also work with the DfT (North) to improve connectivity across the North. Arriva Rail North will run the Northern franchise from this April until March 2025. The obsolete and unpopular Pacers are due to be phased out by the end of 2019, and a £400m investment in 281 air-conditioned carriages will be more than double the minimum stipulated by the Government. Other improvements on the Northern network include: • More than 2,000 extra services weekly nearly a 40% increase in capacity – creating space for 31,000 extra passengers travelling into Newcastle, Liverpool, Manchester, Leeds and Sheffield during the morning rush • New or refurbished trains on longer distances, faster journeys and stations staffed daily with catering services and free wi-fi • Ticketing to include both mobile and printat-home access, and discounted fares for jobseekers Chris Burchell, managing director of Arriva’s UK Trains division, says: “We aim to be the communities’ local railway, and to leave a positive lasting legacy for the North of England “And Tim O’Toole, chief executive of FirstGroup – also into the new franchises – says the free wi-fi will be on all services, all TransPennine Express stations and 36 Northern stations by December 2019. Targets will be set to improve

customer satisfaction and reduce cancellations and short-formations. Automatic delay repay compensation will be introduced for buyers of season and advance-purchase tickets online. Stations will get £55m of improvements in all. The Government will receive £400m in premiums from First Trans Pennine over the life of the franchise; previously, the franchise was state subsidised. The amount of annual subsidy the Government pays for the Northern franchise will be reduced by £160m by the end of the nine-year contract. On East Coast mainline, customers’ levels of satisfaction have dropped since the service was taken back into private ownership, a National Rail Passenger Survey suggests.

Five strikes for a score The North East Chamber of Commerce has five aims in its 2016 manifesto: • Influential North East – ensuring the region punches its weight nationally and is able to shape its own future • Global North East – improving interaction with the world to create business opportunities • Connected North East – providing the region’s businesses with better access to markets and customers • Competitive North East – ensuring local business environments encourage growth and enterprise • Working North East – ensuring businesses can find the right talent and invest in skills.

Acklington Housing Development Receives Green Light A 16 home residential development has been given planning permission by Northumberland County Council in the centre of rural village Acklington. The development will create a mixture of high quality homes ranging from two bedroom bungalows to five bedroom detached houses. The site which is within the centre of Acklington extends to 1.69 acres and will see the demolition of Pearson’s Garage along with improved access arrangements. Planning permission was obtained by the Planning and Development team at land and property specialists George F. White, who provided planning consultancy and managed the project from the beginning to conclusion on behalf of the landowner with architectural input provided by Blake Hopkinson Architecture. Craig Ross, planning consultant at George F. White, said: “We are delighted that the development, which is in a fantastic location in the centre of Acklington, has been given the green light. Planning within Northumberland is in a huge transitional period and as a result we faced a challenging planning situation which involved overcoming a number of complex barriers. I am really pleased with the dedication and ability that the team demonstrated to overcome these obstacles and secure approval.” George F. White is actively seeking a housing developer to take on the site, which provides an attractive location for couples and families who want to live close to the coastal area and be near to local towns such as Warkworth and Amble. For more information about the new development at Acklington, please contact Matthew Simpson on matthewsimpson@georgefwhite.co.uk or call 01665 511987.

SEDBERGH SCHOOL

Co-Educational Boarding School in Cumbria

FOUNDED 1525

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PROFILE TTE Group

Better skills improve business

TTE Technical Training Group based on Teesside is a true global provider of technical training to the oil & gas, process, manufacturing and engineering sectors, both in the UK and overseas. We specialise in the delivery of technical training consultancy; accredited training programmes & qualifications; the setup, operation & management of training facilities; apprenticeship & study programmes; and competency assessment & workforce development. Our state-of-the-art workshop facilities are complemented by industrial scale process training plants providing realistic industrial working environments that allows trainees to learn interactively under controlled conditions. Our commitment to Health & Safety is at the core of all of our training programmes and reflected in the achievement of the British Safety Council ‘Five Star’ Award. The key challenge for businesses today is to ensure that workforces meet world-class standards and

that cost-effective training programmes can demonstrably deliver cost/benefit. By blending practical ‘hands-on’ skills with mentoring from experienced professionals, our aim is to ensure

“By focusing on understanding employer needs and employee motivations we are able to develop people and programmes to exceed client expectations, fostering business improvement and developing lives” that the development of industry is based on the enhanced skills of safe, competent and qualified staff. When we operate overseas our understanding of company nationalisation ambitions allows us to

support the building of competitive local economies and promotes global best working practices. By focusing on understanding employer needs and employee motivations we are able to develop people and programmes to exceed client expectations, fostering business improvement and developing lives. Operating as a charitable foundation with a commitment to training excellence, all of the profits the TTE Group generates are used to subsidise the training of young people, enhancing the economies of the regions in which we operate.

For further information please contact Hazel Lince 01642 462266. Email hazel.lince@tte.co.uk or visit our website www.tte.co.uk

PROFILE Newcastle College

New programme seeks to strengthen graduate links with China Northumbria University and Newcastle College win funding for an innovative new programme to boost graduate entrepreneurship in the region through building expertise to operate in Chinese markets. Applications are now being invited for a new programme to help turn north east graduates into entrepreneurs. The new China Business Development Programme North East is a project that is aimed at those with a business start-up idea who want to learn how to enter the Chinese market. It is a collaborative project between Northumbria University and Newcastle College that is designed to support graduates living in the North East of England who have a business proposition that they would like to launch in China. This is a fantastic opportunity for entrepreneurs who want to understand how to launch a new business in China but would like the help and guidance of experts in the field of UK-China business development. WHY CHINA? The economic growth of China offers significant opportunities for North East businesses to develop new commercial links. In 2014, China was the UK’s sixth largest export market, rising from thirteenth place a decade before. The 7th UK-China Economic and Financial Dialogue between George Osborne and Vice-Premier Ma Kai in September 2015 set an ambitious agenda for business collaboration over the coming years. In particular, both Governments pledged their commitment to nurturing relationships between Chinese city clusters and the Northern Powerhouse. Higher education providers have a critical role to play in developing a graduate workforce with the knowledge and skills to excel in a global market, and it was a bid from Northumbria University’s Newcastle Business School, in partnership with Newcastle College, that secured the funding to run this programme. The UK-China Enhancing Graduate Employability and Entrepreneurship Fund from BIS and the British Council is highly selective, and only five bids have been successful. Northumbria University’s Newcastle Business School’s success is confirmation of its growing reputation. It was recently named Business

“The economic growth of China represents a considerable opportunity for North East entrepreneurs to develop rewarding international trade links.” (Professor Yu Xiong) School of the Year in the Times Higher Education (THE) Awards. Professor Kevin Kerrigan, Executive Dean of the Faculty of Business and Law, said: “This funding will help us provide graduates with the necessary skills, knowledge and expertise through access to leading speakers from academia, government and industry. As the fund interacts with other sources of venture capital it can also open the door to additional financial support.” GIVING GRADUATES THE SKILLS TO THRIVE Through a competitive application process, 25 applicants who may be developing their own

startup, working for an SME or employed by a larger organisation will be selected to develop their business ideas further through the programme. Participants will be given the skills, knowledge and expertise to thrive in a complex international business environment. They will receive: • Free training seminars and mentoring opportunities by influential business people who work in China UK business. • Speakers from Chinese business or British sector trade bodies who have experience of gaining investment in China. • 10 participants will get a FREE trip to China to make business connections which includes a 30 day stay in China. • Free local Chinese support including government support and business support. • Opportunity to enter the 9th China UK Entrepreneurship Competition and access venture capital for their business idea. Applicants from any business sector are welcome to apply for the programme, although those from the digital, energy, biotechnology, healthcare,

Professor Yu Xiong, Chair of Technology and Operations Management, Newcastle Business School

PROFILE Newcastle College

(l-r) Professor Yu Xiong, Newcastle Business School, Professor Kevin Kerrigan, Newcastle Business School, Mr Sunan Jiang, Minister Counsellor for Science and Technology at the Chinese Embassy, Professor Andrew Wathey CBE, Chief Executive and Vice-Chancellor for Northumbria University, Cllr Nick Forbes, Leader of Newcastle City Council logistics and manufacturing sectors are particularly encouraged. PRESTIGIOUS BUSINESS SUPPORT PANEL The programme is supported by a number of prominent individuals, including Sir Richard Heygate (former partner at McKinsey), Dr Liang Ma (Senior Advisor of the National Skills Academy for Rail), Chris Fraser OBE (Managing Director of EuroChina Associates), James Wang (CEO of Elm Lane International) and Ammar Mirza CBE (Chairman and Founder of Asian Business Connections). The China Business Development Programme North East was officially launched at the North East China Business Forum, held at Newcastle Civic Centre on Thursday 17th February. Speakers at the event included SuNan Jiang, Minister Counsellor for Science and Technology at the Chinese Embassy, Dr. Liang Ma, Senior Advisor of National Skills Academy for Rail, and Dr. Nick Rousseau, Head of International Innovation Strategy at the Department for Business, Innovation and Skills. Professor Yu Xiong, Chair of Technology and Operations Management at Newcastle Business School, said: “The economic growth of China

represents a considerable opportunity for North East entrepreneurs to develop rewarding international trade links. It is, however, recognised that access to Chinese markets requires substantial knowledge, expertise and connections, which can pose a challenge to graduates seeking to establish startups which can engage productively with China. This funding will help us provide graduates with the necessary skills, knowledge and expertise through access to top guest lecturers from academia, government and industry. As the fund interacts with other sources of venture capital it can also open the door to additional financial support.” Tony Lewin, Principal of Newcastle College, said: “We are delighted to be working in partnership with Northumbria University in the design and development of the China Business Development Programme North East. The College is proud to be supporting an initiative that will substantially enhance the entrepreneurial attributes of North East graduates, support the Northern Powerhouse agenda and drive the economic growth of the region.” The growth of business links with China is also aligned with the North East Local Enterprise

Partnership (LEP) Strategic Economic Plan, and especially supported by the LEP’s recently established Northeast Innovation Observatory. Through its geographic focus, the China Business Development Programme North East also seeks to further strengthen the relationship between China and the Northern Powerhouse. APPLY FOR THE PROGRAMME Applications for the China Business Development programme are still open, go to www.newcastlecollege.co.uk/china to download the application form. For any questions or if you would like further details about this opportunity please email china@ncl-coll.ac.uk . The deadline for completed application forms to be returned is Friday 11 March.

For further information on the China Business Development Programme North East, please contact china@ncl-coll.ac.uk

BUSINESS UPDATE bqlive.co.uk/breakfast

Boost for management The County Durham building envelope specialist CA Group, one of only a few North-East firms held in an employee benefit trust, has brought in John Tweedlie as manufacturing director. His 25 years in manufacturing includes board membership of six companies in five countries. He was most recently operations director at subsea equipment manufacturer Tekmar Energy. CA Group managing director Des Webster says the Evenwood firm’s turnover rose £18m in 2014, with staff now up to 200-plus from 165. Tweedlie’s selection was made through chartered accountants UNW in Newcastle. Into the fold: CA Group manufacturing director John Tweedlie (left) with UNW head of strategic talent Peter Neal (right) at CA Group in Evenwood.

Toolmakers’ pot Toolmaking manufacturers in the North East can access up to £14m from a funding pot aimed at increasing production in England generally. Details are with the Advanced Manufacturing Forum in South Shields.

Antennae in demand Filtronic the designer and manufacturer of microwave electronics products has an order worth about $3.9m for ultra wideband Integrated antennae. The order, from a major European client, is the first volume contract for a new range from the company. The order follows and replaces a previous contract win last October, after the West Yorkshire firm with a broadband business at NETpark, Sedgefield, announced a major advance in developing a product expected to make a major impact on mobile phone infrastructure.

personal. It was founded in 2008 by David Foster, Dean Cowley, Paul Sargent and Murray Wark, who are all staying on.

Moving forward The transport and haulage sector was the fastest growing industry in North East England during 2015, with the total of active companies rising by 25% through the year. R3, the North East arm of insolvency trade body R3, says further that hospitality industries in the region also showed strong signs of expansion.

landed six new clients. Several more followed soon after.

Drugs crackdown Roadside police cracking down on drugtaking drivers in the Irish Republic are using a testing device supplied by Dräger, the Blyth manufacturer of safety technology.

Widening the net Training firm Learning Curve Group has acquired a North East recruitment and learner find company in a seven figure deal. The Bishop Auckland firm expects its takeover of WorkWise Personnel will enable it to thrive under the new state education and skills policy.

Down Under deal

Happy new year

The Chester-le-Street based asset finance broker Anglo Scottish Asset Finance has been acquired by Maxxia (UK), a subsidiary of McMillan Shakespeare of Australia. Anglo Scottish services include financing business, vendor/dealer and

Accountants and tax advisers V&A Vigar Group – managing partner Amanda Vigar – has had one of its best starts to a new year. In the first three days of 2016, the firm, with offices in Darlington, Holmfirth and Cambridgeshire,

They’re in the shade Solar Solve Marine, the South Shields manufacturer of anti-glare, heat rejecting roller screens for ships’ windows, has supplied two vessels recently, the supply craft Topaz Mamlaka, newly built in Malaysia, and Seven Eagle, a Belgian built construction/flexlay vessel managed by Subsea 7.

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Ward Hadaway

Funding - where are we now? Julie Harrison, partner and head of banking and finance at Ward Hadaway, explains the changing pattern of funding support As we are constantly told by business leaders, economists and business journalists, funding for business remains a vital component of economic growth, and the sources and types of funding rarely, if ever, stand still. From our viewpoint in the banking and finance team at Ward Hadaway, what we see is that funding for businesses seems to be in a constant state of flux, whether it be the source, the type of funding or the regulation of the providers of funding. Historic names remain and some are returning to the funding scene, new ones are entering it and existing lenders are changing the way they operate or their structure – witness the return of Clydesdale Bank (including Yorkshire Bank) to the London Stock Exchange in February following its demerger from National Australia Bank. Some of these changes are driven by the marketplace while others stem from the reform of the European and UK banking sector since 2009. For example, as a result of the receipt of government funding, Lloyds has been required to transfer part of its business to TSB, and Royal Bank of Scotland has been required to move part of its business to Williams & Glyn. TSB is already noticeable on our high streets and Williams & Glyn is due to be launched this year. At some point, Lloyds is also set to undergo further change in terms of its ownership as the Government looks to sell its remaining shares in the bank. The sale was postponed in January due to volatile market conditions, but the Government still intends to go through with its plans, although a date has yet to be fixed. More changes for the sector are on the horizon as the Banking Reform Act looks to separate core banking services from wholesale banking and investment services, with a view to reducing the risk to which the banks providing these essential services are open. Separation of these businesses needs to be completed by the end of 2018. Add to all this the emergence of ‘challenger’ banks such as Durham-based digital-only Atom Bank and you have quite a kaleidoscope of changes taking place. The important question is – what effect does all

this have on finance for business? While predicting the future is something for clairvoyants, the latest reports from the Bank of England provide some useful pointers on the direction of travel. In its most recent Credit Conditions Review, which

‘It appears things are getting better when it comes to funding for business, although they are getting better at different speeds for different companies’ looks at latest developments in bank funding and household and corporate credit conditions, the bank reported a rise in credit availability from lenders in the final three months of 2015 and a 2.1% increase in overall lending to UK businesses. This rise in net lending occurred across most industrial sectors with the bank attributing the increase to an overall improvement in credit

availability and rising demand for finance. However, the bank did note that while credit conditions were better for businesses of all sizes, SMEs appeared to have experienced “a more gradual improvement than larger companies”. In summary, it appears things are getting better when it comes to funding for business, although they are getting better at different speeds for different companies. In the North East, the funding situation is set to be boosted further with the imminent arrival of the £120m ‘JEREMIE 2’ Fund. Like its predecessor JEREMIE – or the Finance For Business North East Fund as it is also called – JEREMIE 2 will be invested purely in North East businesses as well as being administered and managed within the region. That is definitely something to look forward to. For more information on the issues raised by this article, please contact Julie Harrison at julie.harrison@wardhadaway.com or call 0191 204 4221.

AS I SEE IT bqlive.co.uk

The devil’s in the Only 16% of people fully read the Terms and Conditions before signing a contract. From both a supplier and client perspective, a water-tight and well-drawn formal pact outlining the working relationship makes good business sense, protecting valuable interests and adding a layer of security to a third party exchange. If all the terms are written down in one place, surely there is little room for misinterpretation? Many businesses may assume the finer details in all telecoms and IT contracts are more or less the same every time – length of contract, number of lines, the level of service you’ll receive, etc etc – and so may scan through the T&Cs in a contract rather than specifically reading each detail. Unfortunately we’ve seen many businesses

Hiding clauses to catch out customers in contract T&Cs should be a thing of the past, says Chris Lee, managing director of b2b independent telecommunication and IT provider CCS

AS I SEE IT bqlive.co.uk

caught out by common catches within these agreements, finding themselves in difficult (and expensive) situations. Unfortunately the ICT telecommunications sector generally has a bad reputation when it comes to mis-selling, so at CCS we’re making it our aim to give our industry a much needed boost in terms of image and reputation, and are pioneering ‘ethical selling’. While for many customer / supplier business relationships ethical selling is common practice, we’re increasingly finding that in the telecoms sector, customers are becoming trapped in contracts due to hidden clauses in the T&Cs. We asked the businesses we work with across the North East, including our customers, ‘nearly customers’, contacts, friends and family, what were the key issues they’d encountered when trying to end, cancel or leave a telecoms or ICT contract. The top five issues we found were: 1. Contract automation and rollover 2. Selling on of contracts, largely where a supplier has gone bankrupt 3. A change in circumstance triggering the start of a new minimum contract period 4. Early termination fees 5. Minimum spend clauses While completely legal, each of the above contractual issues are an underhanded way of tying your business into a longer contract if not highlighted by the supplier at the point of signing. However, these are of course notions which spread farther than simply telecommunication services. For domestic consumers, the process of changing or ending telecommunication contracts has been made significantly easier in recent years thanks to strict governance from Ofcom and in December 2011 it confirmed that rollover contracts would be banned. However, Ofcom’s ruling only covers residents and small busineses with 10 or fewer employees, leaving many busineses finding it much harder to switch ICT or telecommunication services – red tape, supplier agreements, longer network contracts and even unexpected loopholes or complex jargon often make moving difficult. Through speaking to ‘nearly clients’ – clients

“While completely legal, each of the contractual issues are an underhanded way of tying your business into a longer contract if not highlighted by the supplier at the point of signing.”

who would want to work with CCS but have been tied into contracts with existing providers – we’ve calculated that hidden contract clauses, such as those listed above, have cost the businesses affected an average of £15.70 per phone line (including landline and mobiles). With an approximate 338,550 landlines in the North East alone, the cost of being tied into an unwanted contract could potentially reach over £5million. We’ve calculated this by looking at the businesses we know who have been stung and working out how many lines they need and how much money they’ve lost through either not being able to change provider when they wanted to or compulsory late fees. Of course, the figure above is an average – some

businesses we’ve been in contact with have escaped lightly while the largest financial impact we’ve seen is £60 per phone line. We don’t feel this is fair and want to be the catalysts of change, pioneering an ethical shift in our industry. We want businesses to have the right to choose their telecoms provider with the freedom to make a clean break at the end of the contract if they wish, with no nasty surprises along the way. Customers should choose to stay with their partner rather than feeling trapped with their supplier. n If you’d like to know more about CCS’ ethical selling or to reserve a copy of the company’s forthcoming white paper on the topic, please visit www.CCSmobile.co.uk/TalkingARC

ENTREPRENEUR bqlive.co.uk

Dave Stone, who’s reached giddy heights of achievement without getting dizzy, tells Suzy Jackson how he wins work on the likes of Windsor Castle, St Paul’s Cathedral and Hexham Abbey

When you’re a tradesman you care

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Asking a steeplejack-turned-entrepreneur if he’s afraid of heights is akin to asking the winner of the Wimbledon Men’s final if he’s happy, I know. But morbidly fearful of heights myself – the mere thought of going more than two steps up a ladder turns me green – curiosity got the better of me when I met Dave Stone. “People don’t often believe me, but I do have a story to tell,” Dave explains as we chat in his glass fronted office on the first floor of his Darlington building – and it’s immediately clear to me that he’s probably not short of a story or two on most subjects. Nor is he a wallflower. He takes me back to leaving school in 1979, the son of hardworking middle class parents, needing to get himself a job. His mother sent him to Borough Road to knock on the doors of businesses there, and see what he could find. At 16, without qualifications, he ended up at the office of Harrison Brothers Steeplejacks. Their owner, Barry Newton, looked at him sceptically and asked: “Do you know your national insurance number?” And he did. He trotted it out without a second thought. He was fit and healthy, strong, and capable of hard work, but he was savvy too, and Barry spotted it. “Come back tomorrow. We’ll find you something to do.” That was the start of an 18 year career with Harrisons that saw him rise from apprentice steeplejack – a craftsman who can inspect and repair chimney stacks, church spires, high-rise buildings and other tall structures – through to foreman supervisor, working with teams of men around the world. He got his brother Grahame a job there too; Grahame was involved on the industrial side, whereas Dave developed an interest in architecture and masonry, becoming what they termed a ‘Hollywood Steeplejack’. It wasn’t until 1998 he started to wonder what might come next. Knowing there wasn’t room to advance where he was, and too ambitious to stick with his job, he handed in his notice, and used most of his available cash to buy himself a van and go it alone. In the gym sauna he frequented, he got chatting to Mike Challands, who ran a printing business in Darlington. Dave wanted some leaflets printed, promoting his services. He’d paid for pictures to be taken of him harnessed off the side of the Humber Bridge, and he wanted them displayed, on a leaflet. Mike helped, and told

“I’ll tell you something, I’m sometimes a little bit ‘seat of your pants’!” him to pay for them when he got some work. In return, Dave used Mike and his company, MT Print, till the day Mike retired. You’ll see a pattern emerge here. With his available money looking thin, Dave took to his van, driving around asking security guards at places like Wilton to write down the names of engineering managers, so he could send them his brochures. Work trickled in. Though hugely experienced, Dave was used to working with people who managed the jobs, not the people who commissioned the work. He lacked the right contacts. So he set about learning. Pouring over paperwork, learning about procurement, creating policies, doing what he could to get work. Subcontracted to a business that went bust, he seized the opportunity and picked up their contract at Guys Hospital, and another contractor, and a second van… and things started to happen. Still working from the back bedroom of his own home (‘Steeplejack House’), on a second hand word processor, he started to worry that he’d upset neighbours keeping his vans on the street. So he found an office, easy-in, easy-out, and signed up. Stone Technical Services was now a team, able to pick up new labourers as needed, getting on

top of health and safety requirements, training and learning and extending their services. He then started getting helpers. He asked Eileen Callaghan to do wages and VAT. Today, they have ‘swanky accountants’, but Eileen still does wages, and their VAT. “That’s her livelihood, she’s been doing that for us for years, and she’s always looked after me. So I’ll look after her.” There it is again - the sign of the family businessman shining through. Dave has a particular set of values and standards; he lives and works by them, and they’re non-negotiable. I doubt anyone will ever have accused him of being workshy; any kind of shy, even. He’s thrown himself into every challenge and every opportunity thrown his way with vigour, passion and determination. When he saw how much work was coming from local councils in the early 2000s, he got himself on to all the contractor lists possible, learning, asking for advice and pushing his abilities as far as he could. “I’ll tell you something, Suzy, and you might not know this, but… I’m sometimes a little bit ‘seat of your pants’!” Dave admits he’s scared of failure; terrified, in fact. For a man of his character, that translates as refusal to fail if there’s any other option. “We lost a contract last year, on the Isle of Man, because they thought we were too risky. We weren’t big enough. So that’s our goal… we’re pushing on, and we’ll be big enough next time.” Dave recognises the change of mindset needed to achieve that kind of growth, bringing in a business development manager Richard Pavlou. They make a formidable double act. It’s been a constant battle for Dave to make people understand the word ‘Stone’ is, in fact, his name, not a limitation of the services Stone Technical Services Group provides. He won’t change that; now Dave’s name remains because the business exists in his shadow and is conducted by everyone as he would conduct it himself. The business in 2016 offers a combination of services, skills and experience, calling themselves ‘the building and structure experts.’ Currently a £3m business, it is to become £5m in two years, and £10m in five, Dave asserts. He still gets his hands dirty and he likes delivering the final sign-off manuals to clients, shaking their hands and getting their opinion on the work. He can and does still get involved when need arises, or when he just wants to

ENTREPRENEUR bqlive.co.uk

“Young people all want to work in IT! They don’t realise there’s money to be made in trades like this”

ENTREPRENEUR bqlive.co.uk

Up aloft and looking down Outstanding projects tackled by Stone Technical Services include: HEXHAM ABBEY Installing safety systems to allow safe access to higher levels. STS’ team of heritage masons worked on this. WINDSOR CASTLE The world’s oldest and largest inhabited castle, and the Queen’s official residence with a history spanning over 1,000 years. STS restored the timber flagpole, famous for flying the Royal Standard when Her Majesty is in residence and the Union Flag when she’s not at Windsor. Their team used specialist rope access to limit disturbance and remove need for scaffolds. ROYAL COURTS OF JUSTICE On London’s Strand, this iconic building has been in the hands of STS since 2009. Lately, they’ve refurbished the clock tower and maintained the Thomas More Building. Access experts had to scale the 75m high building, using a ‘cantilevered boom rig’ and a 9m access cradle. ST PAUL’S CATHEDRAL An officially appointed contractor, STS carries out structural and high level maintenance repairs, and has also installed a lightning conductor. They’ve inspected the golden cross and dome, 365ft from the ground. In 2016 they’re working inside, on scaffold in the dome, to repair the Thornhill Paintings. LUMLEY CASTLE STS’ restoration and conservation divisions have a longstanding work relationship here, the castle’s owners and its architects having carried out a range of projects including stonemasonry repairs, cast-iron railing restoration and a range of aesthetic preservation to the 600 year-old building.

“I want to know my men are safe so I can sleep at night too” remind the team he’s still eminently capable, and not asking them to do anything he won’t do himself. His team, now totals 40-plus across multiple offices around the UK, and most have been with him many years. All nine of his foremen were employed much earlier in their careers and moulded ‘Stone standard’ into their current jobs. Unsurprisingly, health and safety is paramount “the thick end of the wedge,” he says. “I want to know my men are safe so I can sleep at night too.” Safety forms part of his service offering too; they have a team working on the Forth Road Bridge who are providing safety systems for the maintenance workers bringing the bridge back to its former glory. That forms part of Stone Technical Services’ commitment to training, to upskilling, to ensuring their team is as good as possible. Dave has noticed the decline in young people looking for jobs in his trade. “They all want to work in IT! They don’t realise there’s money to be made in trades like this,” he points out. Stone Technical Services pays staff training costs 100% from day one. While I was there they offered a young man a job, impressed he’d saved enough to pay for his own training. But they’ll pick up the tab. Each year Dave writes out the training cheque with pride; a few weeks before my visit, that cheque was written for £98,000. Driven, as you’d expect of a successful entrepreneur, but with traditional values at

the heart of his business. Dave is not driven by profit. He’s interested in running a business giving value. “We don’t scrimp,” he states, matter-of-factly. “If there’s good reason for us to buy a more expensive piece of equipment that someone can tell me makes sense, we buy it.” On pricing strategy, he’s not interested in being cheapest. “If I can’t win business because of how I’m going to have it done, the quality of the workmanship, the experience, our references… if they still want cheap, I’m not the man for the job.” As he regales me with tales of travels he has to look forward to, jobs they hope to get on their books, I have to ask Dave: “What if, all those years ago, when you’d started at Harrisons… what if you’d been scared of heights?” It feels the most obvious question but Dave does me the honour of not treating it that way. But he does shrug. “Well, I’d have to not be scared of heights, wouldn’t I?” There it is. He doesn’t see barriers. He worries about things afterwards, if at all. He describes, in the days before health and safety, being one man astride an industrial chimney stack, repainting the top, repositioning his own ladder as he climbs up and down and up again. My stomach turns, but he roars with laughter, and I’m not sure he’s ever really been scared of anything before. And I can’t lie; it’s an impressive trait. Dave Stone. Definitely not just another brick in the wall. n

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“Reading one book every day would take you more than 820 years to get through all the books Steve Matthews could offer”

Now a flood of enterprise

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A Business Improvement District could be the very mop to revive a city’s rain swamped economy. Steve Matthews, bookseller extraordinar, tells Brian Nicholls how revisiting this idea could give Carlisle financial impact Even reading one book every day, it would take you more than 820 years to get through all the books Steve Matthews could offer. Obviously well read himself, the former school head of English, now a noted antiquarian bookseller, author and publisher is, however, far from introspective. He’s been publicly campaigning for the support of fellow business bosses as he advances a proposal that could do lots to get Carlisle back on its commercial feet after the financially disastrous floods. Steve hopes other business leaders of Carlisle city will vote with him to establish a Business Improvement District (BID) like those already boosting economies for many other city and town centres, both in Britain and overseas. Business run BIDs attract more shoppers and visitors, bringing more revenue, through improved retail and environment. They’re funded by a compulsory levy on business rates, and exist only if a majority of businesses in a defined district agree to the levy. If Steve’s powers of persuasion prevail it will be second time lucky. An earlier vote for a Carlisle BID, in which Steve again figured, failed narrowly. Steve chairs Carlisle City Centre Business Group, and the group is asking Carlisle City Council to conduct another ballot. He’s confident a recast in March or April, under different conditions, will succeed. Certainly if investment is forthcoming it’s hard for a visitor to believe a BID would fail to uplift Carlisle’s economy – not only through its retail appeal. It has for starters a remarkable history which, Steve says, is sorely understated as a tourist earner. He cites: • Christian heritage going back to St Cuthbert;

• Roman occupation highlighted by the Roman cavalry helmet (2nd or 3rd Century AD) uncovered at Crosby in 2010, recently exhibited in Carlisle and sold at auction for £2.3m; • Border relations when Carlisle was part of Scotland; • Lawless times of the infamous Border Rievers; • The 1745-46 period when Carlisle was England’s last city to be besieged - first by Bonnie Prince Charlie and his Jacobites, then by the Duke of Cumberland (‘The Butcher’) and his Hanoverian forces. “That’s a really exciting story,” Steve enthuses. “Picture it re-enacted – Prince Charlie’s troops on Warwick Moor, on manoeuvres ahead of their approach. Cumberland’s guns trained on the west walls of the castle. Imagine watching from the top of the cathedral! These are dramatic stories. What do we have now? A small sign saying ‘Bonnie Prince Charlie stayed here’.” More recent legacies beckon too: • Carlisle alongside York and Crewe in railway importance; • The early 19th Century when Carlisle had Europe’s tallest chimney; And, beyond fact, the romance of fantasy… Steve in his scholarly researches has drawn enough from mediaeval ballads and French romances to believe Carlisle was King Arthur’s city, and that it was there Sir Lancelot and Guinevere were caught in flagrante delicto – there too the knight rode in, slaying his attackers and cutting Guinevere from the stake she’d been tied to. “This city makes nothing at all of this,” Steve complains. “Can you imagine any other city holding back on such a wonderful myth to tell?”

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Exploiting history is one of three strands a BID might develop, Steve believes. Another is the city centre’s largely underused public square, where visitors might enjoy home-grown food markets, and crafts, antiques and arts fairs, the latter featuring Lakeland’s considerable coterie of talented artists. The BID’s third strand would see co-operation grow among local businesses, especially the independents. Steve seems taken by BQ’s suggestion that Newcastle BID’s highly successful Alive after Five and Restaurant Week ventures, for example, might be profitably replicated. “There’s a lot to be said for co-operating to compete,” he observes. “I don’t feel independents and big retailers are in competition. Multiples know people don’t come to a particular city to shop with them. People can shop in multiples anywhere. So the multiples here, in the main, simply want to see footfall levels increase.” “Carlisle should be on a par with York, Chester and Durham,” he suggests. “It has the potential.” It has a start also in the existence of its Carlisle City Centre Business Group of 350 members, automatically enrolled. The ball is also rolling already with a permanent exhibition this year to mark the birth centenary of the country’s only State Management Pub Scheme. For this, the existing business group secured £55,000 from the Heritage Lottery Fund, to include also a centenary exhibition in Tullie House (the city museum and art gallery), and other associated events. Exhibits for this have already been displayed at the Civic Centre and at Bookcase, one of Steve’s three bookshops in the area. The business group has also published a leaflet recounting the state management system and 16 pubs that were part of it. They’ve also set up a website, www.thestatemanagementstory.org. So, state pubs – what’s their significance? Whereas the United States once brought in prohibition, the British government tried bureaucratic regulation, subtly encouraging more moderation. These included introducing food, bowling greens, attractive glassware and indoor toilets in contrast to roofed drinking troughs more prevalent then. This social and cultural engineering featured an outstanding architect, Harry Redfern, who designed state pubs attractively with an expertise he applied also to restorations and additions at colleges of Oxford

and Cambridge. Procedures for managers changed too. Previously selling as much alcohol as possible elsewhere, and paid accordingly, they were now salaried. Beer quality was standardised, alcohol volumes lowered, and an own-whisky distilled. Exhibits can be seen now at Bookcase, where headquarters of the State Management Pub Scheme functioned until its deregulation in 1973. That, however, is just part of the same building’s remarkable story. It was first built for a Fosters bank which collapsed in 1836. Later it became a girls’ high school till the end of the 19th Century after which, with bits added, another school. Following the pub bureaucracy between 1916 and 1973 it became a solicitors’ office, a diocesan registry then headquarters of the county library. No wonder Steve envisages another permanent exhibition – relating the remarkable story of this building. Of the pub management collection to date he says: “We’re tipping our toes in the water. But

already we’ve caught public imagination. There’s huge interest from people who come in here.” He envisages a competition trail of 20 pubs to complement the exhibition, with commemorative tankards and other souvenirs which would also boost pub trade, he thinks. His own business is a good example of how, in the online era, even niche businesses could complement the improvements a BID would bring. Steve, originally from Wrexham, headed English at Nelson Thomlinson comprehensive School in Wigton, whose former pupils include the author and broadcaster Melvyn Bragg and former television presenter Anna Ford. Steve came home one day to be told by his wife Gwenda that on Radio Cumbria she’d offered to swap household items for books. So their book business started in 1978, on a market stall in Whitehaven. About six months later they rented premises, then opened a second bookshop. On retiring from teaching

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He envisages a competition trail of 20 pubs to complement the exhibition, with commemorative tankards and other souvenirs which would also boost pub trade

in 1992, Steve could specialise. “We’re niche marketing now in a big way. Everything we sell, there’s no competition. People from all over want what we can offer. We’re their destination stop.” There’s much talk about crisis among independent booksellers at the hands of online behemoths like Amazon. But Steve, 66, will have none of it, claiming he has one of the country’s largest independent book businesses – one “second to none” in subjects Scottish and Cumbrian. There are 1,500 Cumbrian titles for a start, though a quick browse bears out that probably every subject you could imagine, fiction or non-fiction, is represented. Besides his local buyers, avid readers come regularly from a triangle within Newcastle, Preston and Glasgow. Other visitors, he says, come once a year from all over the country and all over the world. One or two from Australia call and people on their way to London and Ireland often drop by.

One annual visitor is an American professor from North Carolina who, during a stay in Cambridge, comes north especially. “He says we’re the best bookshop in the world,” Steve says with a justified smile. Today Steve and Gwenda, now assisted also by daughter Lucy, run three shops. Two called Bookends (on Castle Street like Bookcase) and in Keswick specialise in new books. Bookcase itself occupies a particularly historic spot between Carlisle’s castle and cathedral, and near Tullie House. More than 5m titles appear on a database serving Bookends’ premises, but it’s Bookcase you must visit to get lost – literally – among books. “I couldn’t find my way out and bought extra books which I’m still reading,” said one bemused but satisfied Tweeter. The Matthews’ bit-by-bit takeover of a remarkable stretch of extended Georgian housing gives Bookcase 30 labyrinthine rooms over four floors, and an overflow of books, sheet music and records – over 30,000 of the latter to suit all tastes, including Japanese and South Korean. A newly opened Cakes and Ale café within stimulates social atmosphere. Steve, author himself of 30 books on local history and culture, has published around 90 altogether, again locally flavoured like the calendars also produced. He reviews books for the local weekly newspaper and hosts public receptions for authors, Andy McNab and Melvyn Bragg being two recent. Bragg introduced his new novel Now is the Time at Bookcase. Steve has promoted his second hand stock online for 20 years, selling on generic websites like Antiquarian Books and Bibliophile, developing his own website too. “Working in second hand books is very time consuming,” he explains. “Each item must be described individually for public circulation.” The internet, though, has changed the antiquarian and second-hand side perhaps more than many other businesses, in his opinion. Through it, customers can trace the availability of titles faster and their condition. And booksellers are helped in their valuations. Steve has pre-1800 books valued in hundreds, even thousands, the most valuable worth perhaps £10,000. “Things like that sell very slowly,” he agrees. “I’ve stuff here I bought 30 years ago. But they’ll find a buyer.”n

Where the action’s promised Carlisle’s BID would embrace the area within Castle Way, West Walls and Spencer Street, extending down Botchergate to Tait Street and Crown Street. Businesses there with a rateable value of £7,500 or more, would pay an annual levy of one (or up to 3pc) of their rateable value. Steve hopes that since the existing business group’s secretary, Viv Dodd, was formerly economic development officer for Carlisle, it will be possible to introduce improvements and attractions by project management, saving £80,000 or so a year in costs of hiring a city manager. Volunteers might play a part too, parading streets during the pub centenary celebrations in costumes appropriate to the Lloyd George era, for example. Having chaired the steering group making the 2012 proposal that failed by only 14 votes, Steve is optimistic about breakthrough now. The new BID would be more obviously private sector led, and its programme for three to five years better crystallised. It needs a majority Yes by businesses that would be subject to the levy – by number and by rateable value. Agreement has been made with the council that no funding would be spent on things the council should provide. The existing city centre business group meanwhile, through a two year programme, is running a knowledge transfer partnership with Cumbria University, the city council and Carlisle College. This is helping businesses to master website marketing and enlist on a city-wide marketing website.

“It will be possible to introduce improvements and attractions by project management, saving £80,000 or so a year in costs of hiring a city manager”

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PROFILE Lets Grow

Renaissance Education for the Modern Age Andrew Fleck, Headmaster of Sedbergh School, Cumbria argues that an education without breadth is incomplete and can limit children’s lifelong opportunities School selection is ever more complex. Ninety maintained schools have a catchment radius of just 300 metres from the school gates and 46% of schools are oversubscribed. Never has there been such a scramble for school places as the population grows and the premium placed on a good education becomes ever higher. At the same time, the definition of a “good school” seems less and less clear as different types of schools proliferate. League tables give a glimpse into academic performance but tell us nothing about the personal development of pupils or the degree to which they are acquiring skills which are transferrable to the labour market. School inspection reports are bland to the point of banality or laced with jargon that renders them impenetrable to all but the most informed. So what is a “good school” or a “good education”? That definition depends on our priorities. A starting point might be to define education as the “making of the adult”. Schools contribute to this process but do not own it; parents, peers and other influences also shape the emerging adult. Academic progress, social character, physical and artistic development and attitude are the products of these various stimuli. Different schools will contribute to different degrees just as parents and social groups will influence the teenage character. The balance of influence between these groups is critical in the formation of the adult and something which parents can influence through school choice. The best schools develop skills which are relevant to the workplace; public speaking, leadership and teamwork, punctuality, presentation and reportwriting swiftly spring to mind. Sport nurtures the competitive spirit and resilience in the face of disappointment in equal measure whilst a multitude

“Aspirant vets at Sedbergh study agriculture alongside A levels in maths, chemistry, biology and physics.”

Andrew Fleck, Headmaster of Sedbergh School. of extra-curricular experiences provide interests that may diffuse the stress of hectic business lifestyles in the future. Not only do the best schools provide the knowledge, attitude and skills for success in the workplace, they establish character traits to ensure that success is sustainable. Some schools go further, offering opportunities to blend a vocational subject with academic study. Aspirant vets at Sedbergh study agriculture alongside A levels in maths, chemistry, biology and physics whilst courses in maths, economics and psychology coupled with a vocational course in business opens up the practical as well as theoretical elements of marketing. But it is not just schools who must think creatively, the holidays present an important opportunity to parents who seek to give their children a competitive advantage in the global labour market. Universities offer Massive Open Online Courses through www. coursera.org and the range of holiday study courses aimed at talented teenagers increase year-on-year. And as British schools open subsidiaries overseas the opportunity to study abroad for a year becomes a realistic proposition. We accept the rapidity of change but have we considered its impact on our children’s education?

The statement that “we are educating children for jobs which have not yet been created” challenges us to prepare our children for the workplace in an innovative and flexible manner. Yet as parents, our tendency is to protect our children from risk and to stick to the familiar territory of exam grades and traditional university education. It seems likely that this model will become a limiting, rather than liberating, educational pathway. Those who blend academic with vocational study, embrace a broad education inclusive of the arts and sport and who are bold enough to seek out distinct educational opportunities, even overseas, are more likely to learn the skills and attitudes to secure them the most rewarding opportunities in the years ahead. This is a Renaissance education for the modern age.

Sedbergh School, Sedbergh, Cumbria, LA10 5HG. 015396 20535, admissions@sedberghschool.org www.sedberghschool.org

PROFILE Let’s Grow

Grant was wizard for Merlin A timely grant from Let’s Grow has helped to put one company on an accelerated growth path, as Peter Jackson reports Six years ago Harlepool-based printed circuit board maker Flex-Ability was in administration and on the verge of going under. But the company was bought by the Merlin PCB group and, now renamed Merlin Flex, it is rising high as a leading global supplier of flexible interconnection systems in the defence, aerospace, medical, instrumentation, robotics and telecoms industries. Since the acquisition, the company, founded in 1987, has gone from employing 20 people to 64 and annual turnover has grown from about £2m to an anticipated just under £5m for the year to March 2016. “About half of our work is for export,’’ says managing director Mark Merifield. “We even compete with Asian manufacturers and we ship product into places like mainland China and other Asian countries, as well as Europe.’’ The company, which designs, manufactures and assembles flexible printed circuit boards for use in high tech electrical products, is part of Merlin PCB Group, which also includes Kestrel International Circuits and Merlin Circuit Technology. Merlin Flex’s recent achievements follow its successful application for a Let’s Grow fund grant. Merifield explains: “We have had good steady growth over the past six years since being part of the Merlin PCB Group. The most recent growth in the last 12 to 18 months was on the back of the Let’s Grow funding. “In order for us to get onto the next levels of defence and aerospace for the UK we needed to increase our capability within the facility and to do that it meant capital expenditure on new equipment and processes. The Let’s Grow grant was a big help to us investing in various pieces of equipment and the result of that is that we have increased our capability and won the contracts that we set out to win. It’s been a great achievement for the business.’’ He first heard about Let’s Grow at a Hartlepool Council economic regeneration meeting where

“The Let’s Grow grant was a big help to us investing in various pieces of equipment and the result of that is that we have increased our capability and won the contracts that we set out to win. It’s been a great achievement for the business’’

PROFILE Let’s Grow

Managing director Mark Merifield, Merlin Flex

he mentioned the company’s investment ambitions and was informed that the project seemed ideal for the Let’s Grow criteria. Let’s Grow’s investment panel agreed and awarded Merlin Flex a grant of about £70,000 late last summer towards the company’s total investment of just over £300,000 in six key pieces of equipment. “It was relatively straightforward,’’ recalls Merifield. “The whole application took six to eight months.’’ The new equipment and capacity allowed Merlin Flex to bid for and win contracts for UK defence programmes. “We were competing nationally with two or three other companies and we found out in December that we had been awarded two of the contracts, we won a further one in January and there’s still another one waiting to be won,’’ says Merifield. And a key aim of Let’s Grow is the creation of jobs. He adds: “In the last 12 to 18 months we have, in effect, doubled our workforce and part of

the Let’s Grow was to create 10 jobs which we have done.’’ Now Merlin Flex is poised for further growth. “We have now got a £3.5m firm order book which runs over the next five years and we are in line for other defence and aerospace programmes that are on the horizon.’’ Winning the contracts has, in itself, been a major fillip for the company but it also lends considerable weight to its credentials and puts it in a strong position to win further work. Merifield says: “Once you are on these programmes you’re almost automatically then put onto new programmes. Now that we have won these three they’ll use us for design work and technical support and again that puts us in pole position for future programmes.’’ The company is expecting to reach an annual turnover of between £7m and £8m over the next 12 to 24 months which could mean a further increase in the workforce of between 10% and 20%. Timing was a crucial factor in Merlin Flex winning these major contracts and it was in

the timing that Let’s Grow was able to play a decisive part. Merifield says: “It would have taken us longer to go without the grant, it managed to speed up the investments which kept us in line for these programmes. We were competing nationally for these contracts but the investment we were able to make sooner rather than later allowed us to stay competitive and go for these programmes and it has paid off and we have secured them.’’ For a full analysis of the Let’s Grow programme, see this month’s edition of BQ2.

For more information call 0191 389 8434 or visit www.be-group.co.uk or email letsgrow@be-group.co.uk

BREAKFAS T LIVE bqlive.co.uk

We turn to lawyers when we have problems. But they too have their concerns, as were brought out in this BQ Breakfast Live attended by representatives of more than 40 law firms and other service organisations. Introducing, Bryan Hoare, BQ’s managing director, noted considerable changes evident in the legal sector over the past five or six years. Phil Hourigan, director of corporate banking, North East, for RBS said RBS itself was undergoing change as it separates what will be a new bank, Williams & Glynn. Caroline Theobald, chairing, said the legal sector reflects the general economy. What might be the challenges, opportunities and likelihood of further consolidation and mergers? Adam Heather, executive head of DWF in Newcastle, said his firm (started in the North West in 1977) is increasingly international with offices in the UK and beyond. In recent years five mergers, one with Crutes in Newcastle, had enabled the company to grow faster into a UK Top 20 law firm. Commercial services now comprise more than half of the workload. A hot issue for him was whether national firms can provide in the North East. Paul Bury, manager partner, Endeavour Partnership, said his firm, providing wholly commercial services in the North East, was formed 15 years ago, essentially out of a demise at Eversheds. It also serves a major American company and specialises in global technology licensing. “Firms in the North East can provide excellent services,” he said. “We reach other

BREAKFAS T In association with

LIVE

“THE ANATOMY OF A LAW FIRM MERGER” The issue: As the profession consolodates with mergers and the rise of national firms, what’s the future for the legal profession? parts of the country and other parts of the world.” He’d heard it suggested the presently ageing solicitor population will mean more medium and small law firms will struggle. Jamie Martin, managing partner, Ward Hadaway, told how Ward Hadaway had grown in Newcastle out of mergers and turnover this

year will be £35m. The firm has more than 450 people, 85 partners. About 360 are in Newcastle, 60 in Leeds and 30 in Manchester. They opened at Leeds in 2008 and Manchester in 2012 because it was felt they couldn’t continue to grow in Newcastle at a rate they wanted, and growth’s very important to them.

B R E A XK YF AX ST CT RLZI XV XE bqlive.co.uk

“The big challenge, I think, for law firms going forward is how they continue to grow to meet the aspirations of their partners and staff with increasing incomes in what’s nationally a relatively static pool of fee income.” Based extensively on Newcastle Quayside, his firm is highly committed to the North. “We are a Northern firm for national business. We’ve no aspirations to become a national firm. Our efforts are now directed towards developing our offices in Leeds and Manchester. The latter markets carry interesting and fiercely competitive challenges. We’re up against significantly larger firms. It’s a very interesting time.” Mike Holloway, relationship director, RBS, says RBS still has a very strong appetite to lend to law firms, based on detailed analysis of their business, including strategies and financial performances. “We look at mergers wanting to be sure a projected plan to support a proposed merger properly interprets the deal’s strategic objectives. I’ve seen situations where mergers seem the strategy rather than the means towards a strategy. “It’s important to have ensured your funding requirements, and that the debt structure properly reflects the mix of your scheme. It should incorporate good headroom – more than at pre-merger. Not everything will go as you originally planned. And how do you identify the other party’s culture before you do a deal? I’ve seen mergers run into problems, partly through cultural incompatibility.

Any law firm, small or large, needs a vision; what does it want to make of itself? “It’s also important to keep the bank in the loop. If further funding’s needed, it’s important the bank is on the same page as you from the outset. Also I’ve seen incidences recently where succession, particularly the issue of cost in paying back former partners, has caused a problem. There should be a more active basis for succession if you have a strategy to grow.” Andy Poole, legal sector partner, Armstrong Watson (one of the top 30 UK firms of accountants) says that besides normal accountancy tasks his firm acts as strategic consultants to improve law firms’ cashflow, improve their profitability and help them implement strategic changes in structure. “We’ve been inundated with mergers and have 12 we’re advising on right now. Within the past four weeks we’ve had four more enquiries across the UK. They might turn into mergers.” Firms are asking advice concerning efficiency changes and how they manage themselves – but also the structure of the business, limited company, partnerships and more hybrid structures. His firm also puts training programmes into law firms. “Succession is a big issue, also personal injury. Legal changes in that sector recently are creating huge upheaval.“ Whiplash claims may become banned. Small claims are changing too.

Peter Scott, still a practising solicitor and now in a consultancy role, tries to help law firms become competitive. “If you cease to be competitive you fall by the wayside. You die. You must be able to give clients what they want, provide value for money, and services where and when they want them. That brings a lot of things on: performance, management, and rewards. It means being competitive in recruitment and retaining the best people. There’s also a fear of US firms in a growing global context. “Mergers are one aspect of a far bigger picture, that of change. Being competitive is managing change to streamline, in use of IT for example.” He was a managing partner with Eversheds in London (1995-2000). Several firms melded into one and it financially integrated. “We had a vision. Any law firm, small or large, needs a vision; what does it want to make of itself? We wanted to be not just large but able also to look after clients whatever services they wanted, wherever and whenever, in the best possible way. What are the drivers behind a merger? If you get that right you’re ok.” Adam Heather said Eversheds discontinued in Newcastle because it was felt to be not remunerative enough. “DWF is a national law firm and national firms can thrive in the North East. But it’s difficult. Prices and profits that national law firms impose don’t allow you to price yourself and give value for money. DWF allows us to do that because we have built autonomy around that. We came in as a

BREAKFAS T LIVE bqlive.co.uk

national firm focusing on the region, as opposed to a national firm that came in focusing outward.” Jamie Martin: “The market speaks for itself. With deepest respect Eversheds office here has not thrived and I think that says it all. We went outside the region feeling we’d be unable to continue to grow the firm in Newcastle with a single site. We were achieving 16% average growth per annum which looked unlikely to continue. The only option was to look outside also.” Paul Bury pointed out that Eversheds and Dickinson Dees had both had a Teesside office. On becoming national, they closed the Teesside office, effectively withdrawing their presence from Teesside. “We’re very comfortable where our only office is based.” It benefits from the ‘North Shore’ effect whereby, a study shows, rental and employment costs in the North are 30% less than in the South. “There is opportunity for Northern firms to extend their operations. With present technology they don’t need geographical presence. Peter Scott: “I think there are misconceptions about national firms and their structure. At Eversheds we were a federation, a number of firms operating together but with separate managements although we operated as one putting a percentage of our turnover into a common pot. That worked at the time, but there were people who felt it had to be controlled and managed differently. If you operate in markets that structure differently you structure yourself accordingly. I still believe there is room for more national firms in the regions.” Law firms have brands and people buy brands because they know what they’re getting. Andy Poole: “How can North East firms compete with national players? I think they’re well placed. Cost base is important and leads to North Shoring. Many firms are looking into this, not just national firms seeking a lower cost base but some national firms that may want to deliver services through a regional associate. To team up with a national law firm that hasn’t an office here you’d need to demonstrate efficiency

and go through a lean management process review to see whether you fit in. Businesses are now well prepared to accept remote service because of technology. Mike Holloway: “I look after one or two firms Northern based that are doing work they generated in London and are doing it far more cost efficiently from their offices in the North. Caroline Theobald asked Paul Bury to elaborate on ageing. Paul Bury: “Ageing is of concern to the profession as a whole. Succession planning should be embedded into every firm from inception. Some solicitors I grew up with are

“During the recession it was pleasing that trainees we couldn’t keep on ended up with leading firms within the North East. I think our salvation is in the hands of people we train and bring along” struggling.” He instanced pressures on fees. “They’re stuck in generations old general practices, in their 60s with no-one behind them. It gives opportunity for regional firms to take over or hire laterally.” Andy Poole: “We’ve gone through a period where profits dipped, partner promotions were made and then we’ve come to a period where capital accounts increased. Partners can’t all retire at once and haven’t anyone coming through. Even those identified may not want to risk equity partnership.” Many firms are asking how will capital accounts be repaid? Coupling that with the need of capital indemnity required, and often putting two firms together in those circumstances will worsen matters. Merger is an answer but must be done in a particular way, with gaps plugged not only in age but services also. “Often when it’s a takeover rescue the value to the selling party isn’t as high as retiring partners would wish.”

Jamie Martin: “For us it’s about investing in our people, younger partners, to ensure they’re ready, giving them scope to develop. Over a significant period it has been about developing our graduate training, and training them to be Ward Hadaway people. Inevitably you have to do some lateral hiring, and largely that’s been successful. But we prefer to create our own succession through developing mid-tier partners who joined as trainees.” Paul Bury: During the recession it was pleasing that trainees we couldn’t keep on ended up with leading firms within the North East. I think our salvation is in the hands of people we train and bring along. We try hard to break down barriers between qualified and unqualified staff and get everyone engaged. We can’t all be partners, but you needn’t be a partner to make a valuable contribution. Jamie Martin: “Lateral hires may come in with other cultures. We prefer them maybe to bring in new ideas. But lawyers are independently minded and may not necessarily respond well to being told to do things in a particular way. Building a culture is difficult, and long term.“ Peter Scott: “Getting people to a consensus when change is necessary is the first thing a firm has to do. In mergers we need to learn from each other. You need change. In the stress of change in mergers, instead of seeing it as your enemy, manage it - make it your greatest ally. Consolidation must happen in this market place where 85% of law firms in England and Wales have four or fewer partners.” Andy Poole: “You’ll never get a perfect fit in a merger. The key is to align. That means understanding each other’s cultures and building round them.” Mike Holloway: “If you can manage your cashflow better, issues don’t become quite so big.” Phil Hourigan formally thanked the participants and attendees. n BQ Breakfast Live debate The Anatomy of a Law Firm Merger was held at the Biscuit Factory, Newcastle.

“

Using our local knowledge and expertise, we work with you to deliver solutions which are right for your business. Phil Hourigan

Director Corporate Banking M: +(0) 7771 933656 Phil.Hourigan@rbs.co.uk

”

Meet the North East team We’re here to help At The Royal Bank of Scotland, our team work closely with our customers – combining our extensive local knowledge with a thorough understanding of your sector – to help you fulfil your ambitions and achieve your business goals. Mike Holloway

Neil Simpson

Mark McLoughlin

Relationship Director

Senior Relationship Manager

M: + (0) 7876 393874

M: +(0) 7831 145130

M: + (0) 7909 998786

michael.holloway@rbs.co.uk

neil.simpson@rbs.co.uk

mark.mcloughlin@rbs.co.uk

Lesley Cross

Phil Dobson

Doug Fraser

Relationship Manager

Senior Relationship Manager

M: + (0) 7917 598619

M: + (0) 7810 813962

M: + (0) 7818 013295

lesley.cross@rbs.co.uk

Phil.dobson@rbs.co.uk

doug.fraser@rbs.co.uk

Mike O’Hara

Sarah Thompson

John Copping

Relationship Director, Healthcare

Relationship Manager, Healthcare

Head of Corporate Transactions, North

M: + (0) 7876 256982

M: + (0) 7768 368244

M: + (0) 7900 227758

michael.ohara@rbs.co.uk

sarah.thompson@rbs.co.uk

john.copping@rbs.co.uk

The Royal Bank of Scotland plc. Registered in Scotland, No. 90312. Registered Office: 36 St. Andrew Square, Edinburgh EH2 2YB. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

MANAGED OFFICE SPACE Top grade offices Acklam Hall (above), Middlesbrough’s only Grade I listed building (dating to the 1680s) will shortly be home to 18 serviced offices and conference and meeting room facilities, following a multi-million pound renovation which includes the introduction of four function suites for weddings and other special events, and a restaurant, The Brierley.

Office options grow Workspace provider Regus has opened a new centre on three floors of Merchant House in Newcastle city centre. This is complementing its centres at Rotterdam House on Newcastle Quayside, and on Team Valley Business Park in Gateshead. The company has 350 business centres in the UK in all, and a global presence across 106 countries.

Familiar feel for laser treatment entrepreneur

Good news from the health front - an independent healthcare body, which has greatly cut NHS waiting times, has taken on new premises at the North East Business and Innovation Centre (BIC). Rostra Healthcare Ltd, which already has a base established at the Barnsley BIC in South Yorkshire, laser treats

symptomatic varicose veins across the country and currently employs 13 staff. The company has contracted with City Hospitals Sunderland NHS Foundation Trust for eight years now, to help keep waiting times for the treatment of varicose veins below national target. Director Ian Brown explains: “Our philosophy, which we offer the NHS, is that we guarantee to work within the national target of 18 weeks. We are currently delivering treatment within 16 weeks, which compares with three years when we first started. “We moved to the BIC in Sunderland because I found the Barnsley BIC a fantastic facility. When I discovered that Sunderland too had a BIC I knew it was where I wanted to be. It’s in an ideal location near the A19 and a short distance from our clinic at Monkwearmouth Hospital. “We needed a secure, value for money office space, and additional facilities such as meeting rooms and an onsite café were an added bonus. It’s also reassuring to know that when we are out of the office someone is still there to take our calls and collect our post”. Donna Surtees, senior space adviser at BIC, says: “We welcome businesses from all sectors. So it’s brilliant to welcome Ian and his team to the BIC here. And I am delighted Ian’s experience of the BIC in Barnsley led him to ourselves in Sunderland”.

Acklam Hall Middlesbrough’s only Grade I listed building

Package for aspiring entrepreneurs Early stage businesses looking for office space on South Tyneside will want to consider the friendly, lively environment promised at Jarrow Business Centre. The managed workspace on the Viking Industrial Park offers a special package for aspiring entrepreneurs taking the plunge into renting their own office. A package there, from £39 a week, includes access to a business adviser, a furnished office, utilities and a professional reception. Flexible easy in, easy out terms apply and no deposit make it possible to get started with minimal fuss. Jarrow Business Centre is a few minutes’ drive from the Tyne Tunnels, and within easy walking distance from a Metro and bus station. It is one of four of South Tyneside Council’s managed workspaces offering competitive rents and a professional community in which to start and grow in business. More information on the start-up package at Jarrow Business Centre can be had from Janice Stott on 0191 428 3400 or email Janice.stott@southtyneside.gov.uk. To find out more about all four managed workspaces in South Tyneside visit: www.southtyneside.gov.uk/business

Connections... we’ve got the edge

The best connected office location, on the edge of Newcastle. Up to 51 buses each hour and 14 different bus routes serve Quorum 5 minutes from Four Lane Ends Metro station

We have invested a great deal in transport at Quorum, with a full-time travel co-ordinator available to provide personal travel plans and up to date travel information on all modes of travel to and from the park. • Quorum Shuttle • Express bus services • Car sharing website • Pool bikes scheme • On-site travel centre Look on our website www.quorumbp.co.uk/space for latest office availability.

Only 10 minutes to Newcastle city centre Great connections to London and Edinburgh - both under three hours

NEW CAS T LE Only 15 minutes from Newcastle International Airport

MANAGED OFFICE SPACE bqlive.co.uk

Helen Reed, director at Clavering House

Little and large excel in new district Small businesses and sole traders are hitching their stars to one of Newcastle’s newest and most prestigious transformations in commercial property. They’re thriving alongside the major tenants working from fully let Central Square, recently sold for £21.6m in the city’s rapidly reviving Stephenson Quarter. The 72,389 sq ft Central Square building, behind Newcastle Central railway station, is fully let to businesses including Ove Arup Partners, Jackson Solicitors, Bilfinger GVA, Cushman and Wakefield, 4 Projects and the Arts Council. And nearby, in one of the city’s oldest buildings, Grade II listed Clavering House, more than 150 people work for a cluster of smaller companies – or for themselves – benefiting from serviced offices and meeting rooms. Companies there include marine lawyers Campbell Johnston Clark, GW Architectural, fund managers FW Capital, Rullion recruitment firm, and E-therapeutics, the drug discovery and development firm focused on cancer treatments. A modern annexe behind houses BEMCO, a Newcastle based family firm now one of the biggest independents in its business, supplying electrical products since 1893. Training facilities at Clavering House are also used currently by McDonald’s and Pizza Express. Originally built around 1780, Clavering House was more recently home to the now disbanded Robson Brown media agency. Since 2012 it has been the business centre set up by Clavering House Ltd, whose directors are Alan Brown (exRobson Brown), his son James, Helen Reed, and serial entrepreneur Geoff Hodgson. Helen Reed, who’s managing director and formerly co-owned and managed Newcastle Business Village at Benton, says: “Inexpensive

access to an NE1 postal address is a big attraction for young companies. Also widely appreciated is the presence of the mainline railway station almost next door, making it easy for out-of-town companies to hire a meeting room – even a boardroom – for receiving distant clients. Our co-working days attract freelancers and home-workers who like occasionally to join others and network too. Clavering House, two storeys of English bond brick beneath a Welsh slate roof, is 90% occupied with three offices available (130 sq ft to 800 sq ft). The Claverings, after whom the Georgian building is named, were notables. Lt-Gen Sir John Clavering was one-time commander-in-chief in India. But it was his brother Sir Thomas, seventh baronet and colliery owner, who succeeded to the baronetcy of Axwell and family estates. He was an MP for diverse constituencies, paying £2,000 to secure one of the seats, before

election to County Durham at a third attempt. He married the daughter of Newcastle’s town clerk Joshua Douglas, and Clavering House served as the couple’s town home. Today it snuggles beside Central Square and Stephenson Quarter, whose eventual mixed use development is forecast to accommodate 2,000 jobs and add £100m a year to the regional economy. The four star Crowne Plaza Hotel already operates there. Central Square‘s sale price (capital value, £298psf) reflects a net initial yield of 6.4%, after deduction of purchaser’s costs. The combined passing rent amounts to £1,446,126 a year. Newcastle offices of Bilfinger GVA and Cushman Wakefield, for Parabola Estates, secured the sale to a Guernsey based UK commercial property trust, which was advised by Standard Life Investments. The Palladian Axwell Hall, a grade II* listed building, is about to be converted into 20 apartments.

Jarrow Business Centre one trinity Green south shields Business works

An ideal location for your business South Tyneside is on the A19 corridor providing a central location within the heart of the North East. With excellent transport links via road, rail and sea, South Tyneside is a prime location for your business. Our £150million regeneration programme will transform South Tyneside, opening up many more new opportunities for your business.

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Join our business community For details and availability, or to request a tour of South Tyneside’ s business centres:

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We can meet your business needs Whatever your business needs, our portfolio of offices and industrial units provide a range of facilities to support your business as it grows. We offer:

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• Competitively priced, fully managed workspace • Easy in, easy out with flexible terms • Quality office, manufacturing and light industrial units in a range of sizes • On-site security allowing access 24 hours, 7 days a week, 365 days a year • Hi-tech, cutting edge telecoms, Wi-Fi services and broadband • Free parking and convenient local transport links • A range of meeting rooms and conference facilities

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COMMERCIAL PROPERTY A look at the region’s real estate £40m deal lifts city demand Wellbar Central office scheme on Gallowgate, Newcastle, has been acquired for £40m. Orchard Street Investment Management, London-based property investors, have bought it from an unnamed client of BNP Paribas Real Estate. The development, which gets 40% of its rental income from Sky UK, also houses Global Radio, Irwin Mitchell and DAC Beachcroft. Built in 2010, it provides 117,679 sq ft over 10 storeys, with rent ranging from £19 to £21.50psf. Cushman and Wakefield acted for the buyer, real estate firm BNP for the vendor.

Prime shopping centre beat seasonal rush A prime North East shopping destination, Monument Mall in Newcastle city centre, is now owned by Standard Life Investments UK Property Fund, which bought it ahead of the Christmas rush for £75m from Hammersons plc. Developer

Hammersons acquired it in 2011 for £28m and two years later reconfigured it. Retail and leisure brands such as Michael Kors, The White Company, Hugo Boss, Reiss, Jack Wills, Kiehl’s and Rox have since joined brands such as TK Maxx and Sports Direct. The centre’s 15 units are now fully let. The disposal value represented a net initial yield of 4.3%, giving a £24m (46%) profit on cost for Hammerson.

On spec picks up Speculative development is picking up on Tyneside. Only one unit out of 17 new ones remains for letting on a North Tyneside industrial park, while at Team Valley in Gateshead a development suited to small businesses is also under way. Joint letting agents Naylors and Bilfinger GVA have secured the new tenants for property development company Hellens Group at Larch Court, West Chirton in North Shields.

The speculatively built industrial and warehouse scheme comprises 35,000 sq ft of units ranging from 1,500 sq ft to 3,000 sq ft. Newest tenants include Vreo Innovation, ChipsAway and RS Classic Cars. Hellens Group got backing from the European Regional Development Fund and NELEP’s North East Investment Fund. Team Valley’s latest development is the work of The Northumberland Estates. This £1.6m Earlsway Trade Park development, with 22,000 sq ft of trade counter and workshop units, at the northern end of the Valley was acquired from UK Land Estates in 2014 as part of a larger portfolio. Naylors and Cushman and Wakefield are joint letting agents there. They are the first speculative developments on North Tyneside and in Team Valley for eight years.

A Portobello mushroom of industries

Complete Office Solutions (COS) has taken one of the largest units at Ravensworth Development’s £7m Portobello Trade Park, near the A1 at Birtley. The Yorkshire office supplies company, which is expanding into the North East, has a 20 year lease on a 20,000sq ft unit, set to become the firm’s regional headquarters. It expects to create 50 jobs over five years. Its move follows the acquisition of three local businesses – DDC UK of Durham, Alexander Office Supplies in Newcastle and Central Office Supplies of Darlington. Portobello Trade Park comprises 15 light industrial units for SMEs, ranging from 195 sq m to 2,137 sq m. Four lettings have now been finalised there. The Bathroom Cladding Shop, Excel RAC & Polar Front have also moved in since completion last October. Naylors agency, acting as Motel One (above) has opened a 222 room budget hotel, Motel One Newcastle, at High Bridge joint letting agent with HTA Real Estates, in Newcastle. The German chain, founded in 2000, operates 53 hotels with around 14,300 secured the COS letting. The park has rooms across Europe. The Premier Inn coming up in the art deco building on Newgate Street, been partly funded by the North East oce20314 Washington Business Centre Advert Strip Ad.qxp 27/04/2015 15:42 Page 1 once headquarters of the Co-op in Newcastle, was175x20mm due to openBQNE on 29 February. Local Enterprise Partnership.

Budget hotel opens

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

Rent-free periods and other incentives may be available

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

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

0191 500 7851

or email

washingtonbc@MAKEitSunderland.com

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and one of Middlesbrough’s most distinctive buildings, it was owned by the former Teesside Chamber of Commerce from 1935 and the North East Chamber of Commerce from 2006. The NECC decided to sell the chambers, backed by financiers Tier One Capital, after seeing plans to convert the building into a town-centre office hub. NECC will retain a Middlesbrough office, around the corner in Royal Middlehaven House.

Teesside holds up Teesside’s commercial property market looks encouraging despite the continuing dip in oil prices, according to Stephen Brown, senior partner at agents Investment volumes in commercial property show the North East with the largest increase of any Dodds Brown LLP. He suggests a lack UK region in 2015. Volumes here were 32% up, against an 8% rise on average – with some of existing quality industrial units and regions showing falls. Commenting on the data from CoStar, Gavin Black, chairman, G9 Group employment land will continue upward of chartered surveyors in the North East, says: “The total for the North East at £1.06bn is almost pressure on industrial property prices, double the £524m annual average over the last eight years. By any judgment this is impressive.” while the office market should remain stable after adjustment following the oil price reduction. Dodds Brown has let a 15,170 sq ft industrial unit at Riverside The Duke of Northumberland’s property Park, Middlesbrough, to Park Electrical Accountants and business advisers Clive Owen business, Northumberland Estates, has bought Distributors for a new branch, creating LLP have moved offices within Durham – a £10m stake in commercial property interests eight jobs. A similar unit has gone under doubling space and taking on new staff. at Wynyard Park, on Teesside, which includes offer, with only one unit remaining. The firm launched its Durham operation with Wynyard Park House, Evolution and the Business The same agents have sold a waterfront two staff 19 years ago and now at Belmont Village. The company, whose shareholders office block’s freehold on Teesdale Business Business Park has 13 more. include other members of the Percy family, have Park, Thornaby, to a local finance claims invested £75m, accounts show. Revenues are company. Acting for the official receiver, up almost a third to £10.2m, giving a return to and on joint basis with DTZ’s Newcastle Orchard the software specialist serving social profit. This Wynyard buy takes in 100,000 sq office, they sold Churchill House to Quickly housing has relocated from Kings Manor to ft of offices and some 1.6m sq ft of industrial Finance for an undisclosed sum. Quickly Central Square in Newcastle as its sales hit space presently let to about 60 individual Finance is relocating from Christine House almost £16m - an 11% rise on 2014. The tenants. Occupiers include Conoco Phillips, on the same park and from Billingham. firm, with a subsidiary in Wokingham, now Wood Group, BP, Cleveland Police, Dunedin, Churchill House previously housed the employs 200 staff and was helped in its Glamal Engineering, Nortec Oil and Gas, Gleeson contact centre for Churchill Insurance. move by Bradley Hall property agent. Developments and Balfour Beatty. Wynyard Now refurbished office space at £10.50psf Park stays owner of most of the wider estate: upwards is being let at Christine House by 700 acres of offices and industrial space whose Dodds Brown which is marketing 7,000 occupants include Huntsman, Ensub and Barrier sq ft for Buccleuch Estates. Up to 70 staff Architectural. Both parties have also agreed a The 19thC Commerce House in Exchange could be accommodated there. The open joint venture on a further 100 acres marked for Square, Middlesbrough, is being redeveloped by plan space with incentives can be split into development. Other development under way new owners Commerce Chambers Ltd, through from oce20314 Washington Business Centre Advert 175x20mm BQNE Strip Ad.qxp 27/04/2015 15:42areas Page 1 1,000 sq ft upwards. there includes 1,000-plus homes and facilities. contractor Adavo Properties. A former bank,

Investment volumes soar

Duke enters Teesside

Accounting for space

Orchard bears fruit

Chamber sells on

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

Rent-free periods and other incentives may be available

Building Business Success across the North East

SUNDERLAND

North East Business & Innovation Centre

DARLINGTON

WASHINGTON Award winning space North East Business & Innovation Centre

Modern meeting rooms

Flexible terms

www.ne-bic.co.uk Call 0191 516 6066

Email space@ne-bic.co.uk

Motoring to heaven

The recent marriage of motor sales giant Lookers and Benfield, until then the North East’s biggest private family business, wasn’t a takeover but an integration, Lookers boss Nigel McMinn tells Brian Nicholls from the inside

If acquisitions and mergers, like marriages, can be made in heaven, Nigel McMinn feels celestial. He believes Lookers’ recent purchase of Benfield Motor Group is a match right, not only for both parties, but for customers and staff. In fact it wasn’t a takeover, he insists, but an integration. “We tried to make it that. Benfield was of such a scale deserving it.” It’s mere quirk of fortune, he also insists, that until August 2013 he’d been managing director and chief executive of North East based Benfield, leaving after eight years for a top job at Manchester based Lookers plc. That some people may have read more into his returned involvement with the deal, he can understand, but it was negotiated by Benfield’s outgoing chief executive Mark Squires and Lookers’ chief executive Andy Bruce. Nigel, Lookers’ md, motor division, remained on the touchline, contributing when required. Strategies were laid with all the perspicacity of field marshals viewing a battlefield – but with no ensuing battle. Lookers had a hit list of six or seven before picking Benfield. Over a relaxed lunch Nigel, voluble and at 47 looking even younger than during his first encounter with BQ five years earlier, outlined how everyone’s a

winner. For Lookers: “We wanted something of a certain size. We try to keep our borrowings within a range the City prefers, taking account of how quickly could we pay off the debt if conditions remain the same. If all else stayed the same and we spent no more on capital we could pay it off in 18 months or even six. We’ve a prudent view of how geared we want the business. Paying our debt back within six months we could still become cash positive. The City was pushing us to do something significant with acquisitions.” Lookers’ gearing was on the light side, then, and the group could develop share price growth or value to the shareholders at that point, either by distributing back to the shareholders in dividend or buying something reasonably sized. “Our bank facilities were about £160m. We weren’t using any of that outside peak periods and had the £160m capacity that would prompt shareholders to say ‘this isn’t right. Drive value for me somewhere.’” This still fragmented industry has 4,500 franchise dealers. “While this makes Lookers similarly sized to Pendragon and Sytner, and therefore the three largest groups (all turning over £4bn-plus), between us we probably

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“We’re not just buying scale but a profit stream and cash inflow also. However, while it’s more efficient to buy a bigger business you must integrate both businesses culturally, avoiding clashes. The City’s littered with examples of big companies that made acquisitions which don’t work. The trick is to make them earnings – enhancing.”

account for about 15% share of the new car market, each about 5%. “When you get to third and fourth you’re down to companies with perhaps 2% share. Then you’ve a very long tail of businesses with maybe one to three dealerships. To spend maybe £100m on acquisitions becomes a challenge if you have to buy 10 or 12 different companies at £10m each. It’s more efficient, though carrying risk, to try for one or two big acquisitions. “We’re not just buying scale but a profit stream and cash inflow also. However, while it’s more efficient to buy a bigger business you must integrate both businesses culturally, avoiding clashes. The City’s littered with examples of big companies that made acquisition which don’t work. The trick is to make them earnings – enhancing. “So the attraction is to buy a really good fit where strategies, philosophy and culture are very similar. People will then say ‘they’re just like us. They do a lot of the same things under a different name. We could be comfortable here’. “Knowing Benfield well, and having had two years at Lookers and inheriting something there very similar to Benfield - moving heavily in the same direction on several fronts – I knew some

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things I’d done at Lookers looked similar to what was being done at Benfield. I knew better than anyone that if we got it right these two companies should feel a natural fit.” Lookers had a North East presence only at Darlington, Northallerton and Middlesbrough. “Benfield’s Volkswagen representation in the North East fitted so well because we already had it on Teesside, so building it further in the region through Hexham and Carlisle gave us a good stronghold, helpful for things like marketing.” Also Lookers had Audi in central Scotland, so getting what the manufacturers call ‘a contiguous territory’ with the North East is another plus. “They don’t like islands where you’re either side of another dealer. That can get awkward,” Nigel explains. Similarly, Lookers’ strong Renault Nissan in the North West could cosy up to Renault Nissan in the North East. “So the proposal involved brands we wanted, it was geographically the right area, of a size allowing one big deal, and culturally good. Doing due diligence also on companies we didn’t know was pointless.” Benfield was considered one of the biggest opportunities – privately owned, by a family able to sell if they wished. “Some on the list, albeit smaller, were either publicly quoted or owned by manufacturers. We wanted a private sale.” Benefits for Benfield, Nigel suggests, include for the staff more opportunities in management and in promotion internally in general for individuals prepared to be flexible about brand and relocation – something Benfield was good at on its patch. “Benfield has brought Lookers so much good practice and innovation,” he says. “Nine people from there have taken national group jobs

“When land’s needed to expand or relocate dealerships, or for refurbishments, that too needs a lot of capital. So the trend’s to fewer but bigger dealerships, offering big choice. Showrooms with three cars inside and 10 outside are disappearing”

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Staying in the picture Car buyers in the North East can remain confident that although Benfield, recently voted motor dealer group of the year at the Motor Trader Industry Awards, is no more, their own interests won’t be overlooked. Nigel, though based in Manchester and travelling the country frequently from Stirling down to Brighton and Eastbourne, and over to Ireland north and south, retains his family’s home in Gosforth. Born in Burnley, raised in Lytham St Anns and Durham, and educated at Edinburgh University, Nigel has spent most of his career to date in the North East. He started with PwC in Newcastle, then on to a post in Darlington before deciding that although a qualified chartered accountant he’d prefer to be driving business rather than advising it. His passion for cars fostered by his father, a bank manager who’d filled Nigel with awe at the sight of big-money cars through Vardy’s showroom window in Houghton le Spring, prompted Nigel to seek a job with that firm. After a decade with Vardy in the North East and Edinburgh he joined Benfield. Now it’s his nine-year-old son Joseph who gets Autocar and passes it to his dad, and who was allowed to sit in and monitor conversations at the call centre on Christmas Eve. When Reg Vardy was sold to Pendragon plc in 2006, Nigel after more than a decade as a regional director settled at Benfield. He helped shape Benfield into a multiaward winner and one of the UK’s top privately owned motor firms with 30 or so dealerships in the North East, Yorkshire, Cumbria and Scotland. He oversaw the North East acquisition of Colebrook and Burgess, led growth and redevelopment of some dealerships, and inspired new digital marketing and schemes in staff development before joining Lookers in 2013.

in Lookers already. Four key systems Benfield had are being rolled out across the whole of Lookers. Benfield’s influence is there for all to see. Getting to know again how much Benfield did that’s industry leading, and with lots of good people, inevitably has me thinking something might reflect back on me.” As for the Squires family, Mark Squires was innovative, and throughout three generations people were treated respectfully and fairly. The Squires deserved every penny of the £87.5m, in Nigel’s reckoning. Lookers is adopting Benfield strategies in technology and training, and intends to continue the ethos and high standard of service from former Benfield dealerships. Job security’s another stated plus. “Being public we’d be difficult to take over,” Nigel suggests. “We’re capitalised at £700m. You’d need £1bn to acquire us and the share price would go up. Lookers is growing both organically and in acquisitions. A more corporate world driven for profit and growth creates probably faster momentum, a little more dynamism, in a public company than in a private one.” Customers? They can look forward to a wider range of choice. “Benfield had 2,000 cars in stock. We’ve 12,000. If you want a particular type of make or model we’re more likely to have it. There’s less need to compromise in your selection. The car with everything you want may be elsewhere but we can get it to you. “Manufacturing relations are important too. When manufacturers must shift volume to hit registration plans at a certain time, it’s easier for them to approach two or three big players and offer big discounts for bulk buying than it is to go to smaller players. With cash in the bank to pay for 500 cars immediately we get opportunities and give some special offers to customers. “When land’s needed to expand or relocate dealerships, or for refurbishments, that too needs a lot of capital. So the trend’s to fewer but bigger dealerships, offering big choice. Showrooms with three cars inside and 10 outside are disappearing. People are prepared to travel for greater choice, and facilities like video screens to study ahead of buying.” Taking in 1,675 employees at Benfield raises Lookers’ payroll to 8,500, with 160 dealerships across 31 different manufacturing brands. With Benfield turning over £700m-plus Lookers expects its revenues to reach about £4.2bn now. Nigel’s confident of further growth in new

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“When manufacturers must shift volume to hit registration plans at a certain time, it’s easier for them to approach two or three big players and offer big discounts for bulk buying than it is to go to smaller players.” car sales. Five years of depressed registrations during recession meant about two million fewer car sales than normal then. “So quite a lot of pent-up demand still needs to feed back into the system, hence last year the highest peak of registrations in the UK.” So pre-recession levels are back. Significant further advance may take five years in his estimation. But favourable conditions include growth in GDP, population, and the increasing resort to PCP – personal contract purchase – which simulates a lease. You can get a better car for the same monthly payments over three years because you’re not paying off in entirety. With a guaranteed residual value, any equity free at the end of the contract can provide a deposit for the next contract - like changing mobile phones, Nigel suggests. At some point before the end, the customer will be offered a better new model at the same payment. “You just swop your hardware.” With manufacturers driving discounts through PCP, about 80% of customers in recent years have bought on a PCP. Nigel sounds less bullish now than five years

MANTRA THAI, NEWCASTLE Mantra Thai the Forth Banks restaurant that wouldn’t look out of place in Bangkok, was Nigel’s choice. Over £600,000 has gone into its conversion from the old Waterside Palace, and owner Jeab Prapunwong, who married and stayed in the UK after gaining a masters degree, has Thai chefs who share more than 40 years’ experience to the benefit of the restaurant that recently celebrated its first birthday. Nigel, grinning, suggested avoiding a salad and perhaps the hot Panang curry. Instead creamy hot and sour soups were ordered: tom yums – one chicken and mushroom, the other king prawn and mushrooms, both with roasted chillies, lemon grass, galangal, coriander, kaffir lime leaves, and Thai herbs. For mains the preferences were mild, slow cooked lamb, massaman pasted, with coconut milk, potato, onions, peanuts, turmeric, star anise, cardamom, cinnamon, and roasted while Nigel’s hotter selection was also lamb but a shank with similar accompaniments, save for crushed cashew nuts instead of peanuts. Two fragrant courses each. Nigel, having skipped the rice, expected ‘a good kick that will spice us up for the afternoon’. He was right.

ago about electric cars, though he’s had one as a company vehicle. Much talk about future cars centres on London considerations, he suggests, where congestion charges make electric cars relevant. While the North East has pioneered their infrastructure, they have yet to catch on here. He feels 10 years or so from now, when they can travel further without recharge, they may be more popular. Meanwhile he expects a trend more towards hybrids with electric engine and petrol or combustion combined.

Passing of Benfield, which at 12th was the highest ranked family business in the North East Top 200, prompts a question: might Lookers, like Nissan and some other biggest among the 200 businesses, seek admission to the list? It could pip Arriva, Go-Ahead, Vertu and Bellway by entering second to Nissan at number one. But apparently that’s not on the agenda. Lookers will, however, continue supporting The Prince’s Trust as Benfield has done, ensuring young people in the North East benefit.n

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Venues that mean business SEAHAM HALL www.seaham-hall.com 0191 516 1400, events@seaham-hall.com Seaham Hall is a popular choice for North East Business leaders who find privacy and inspiration in the choice of elegant and spacious function rooms. The cliff top setting with views over the dramatic Heritage Coast, the easy access, free parking, Wi fi and oodles of fresh air mean your delegates arrive stress free to start the day. Its 37-acres and a beach are ideal for team-building activities which can be tailored to suit your needs; including sea glass hunting, falconry, treasure hunts, bush craft whisky, wine and cookery classes. The Vortex is a unique space offering corporate clients an innovative, contemporary, multi-use zone to encourage creative thinking. This quirky room is totally flexible, providing space for unconventional meetings, private dining and film evenings on beanbags if you wish. With a range of flexible meeting rooms, natural daylight and stunning views, Seaham Hall can make almost anything come together for an outstanding and memorable event.

WYNYARD HALL Tees Valley, TS22 5NF. 01740 644811 (opt 6) events@wynyardhall.co.uk Surrounded by panoramic views of Italian landscaped gardens, The Grand Marquee at Wynyard Hall is an incredibly versatile venue for large corporate events. As one of the largest semi-permanent marquees in the North East, it boasts uninterrupted views of the surrounding parkland and high-spec facilities. Seating up to 650 guests and with a team able to deliver high levels of personal service with acute attention to detail, it is an ideal space for business conferences, award ceremonies, charity dinners and gala balls. Since opening, The Grand Marquee has seen some of the most influential business people and organisations walk through its doors, including attendees of the Northern Powerhouse Debate. The venue is one of Wynyard Hallâ&#x20AC;&#x2122;s more contemporary offerings, an inviting blank canvas which can be transformed to create a completely unique experience. Equipped with high-spec corporate catering facilities and the latest audiovisual equipment, The Grand Marquee provides all the ingredients for an unforgettable experience.

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THE FORGE Teesside University, Darlington, DL 1 1JW, tees.ac.uk/theforge theforge@tees.ac.uk 01642 384068 The Forge is a prestigious venue for a business meeting, team away day or corporate event. Whatever your group size and budget we’ll design a solution to suit your needs from an informal one-hour meeting in a break-out space, a half or full day or a tailored package. Our high-quality catering options are second to none and can be adapted to suit your requirements. Impress your clients – hold your meetings and events at our prestigious venue • Variety of room sizes and layouts to accommodate up to 70 people • Breakout spaces, computer labs, board room and outdoor terrace • Onsite dedicated team to support your events • Outstanding catering • Onsite parking • Competitive delegate rates ‘The rooms were set up to an exceptionally high standard, completely in keeping with our requirements. The staff were so helpful and contributed significantly to the smooth running of the event.’ Clive Owen LLP ‘Absolutely fantastic – the service you would expect from a 5* hotel!’ Nifco ‘Excellent level of customer service by attentive staff.’ Durham Police

SOL 0871 911 1555 conf&banq@safc.com, www.safc.com Introducing SOL, the North East’s premier business, events and hotel solution. SOL brings together our outstanding venues, hotel and events management service to deliver the perfect solution to your business or event requirements. Our portfolio includes the magnificent Stadium of Light, The Glass Yard at National Glass Centre, Hilton Garden Inn and 1879 Events Management. SOL offers a breath-taking backdrop to host meetings and events, with world-class accommodation and first-class service from our knowledgeable and experienced staff to help you achieve your business goals. Whether its business meetings, conferences, dinners, exhibitions, social gatherings, weddings, party nights or other celebrations, our versatility allows us to provide the perfect solution for any event. Add to this the exciting addition of the Hilton Garden Inn Hotel and you have the ideal location for your business and event needs, with 141 bedrooms, a destination grill restaurant, private dining areas, meeting rooms and a 24-hour business centre.

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More a case of how soon can I have one Tina O’Hara, sales director of multihotel and bar operator Cairn Group talks sophistication, classiness and children as she takes the all-new Audi A4 Saloon for a spin I spend a lot of time driving in my role so practicality has always taken precedence over pleasure. I was really excited, then, to take the brand new Audi A4 Saloon for a trip out, courtesy of Tyneside Audi. My first impression was what a beautiful and sleek looking car it is. The interior is effortlessly elegant, reflecting the same shapes and lines seen on the exterior. I was intrigued to find out if it was simply style over substance. The low-slung seats were so comfortable with the added bonus of back support – particularly important for me on long drives – and the dashboard, centre console and general upholstery were all presented impeccably, oozing a cleverly-balanced sumptuous but sporty charm. My car of choice at the moment is a Mini Countryman, so I was slightly worried manoeuvring the Audi around the shiny models on the forecourt. I was already ruling out locations I would take it to over the weekend for that reason, but soon realised nowhere would

be off limits. Steering was really light and I got to grips with the extent of the chassis straight away. Navigating my way through the city centre to visit hotels, I didn’t once feel like I was in a big car. Yet the whole car had a true sense of spaciousness. Even with all the baggage my day-to-day work and leisure lifestyle brings with it, the cabin space remained uncluttered. I added in the kids’ booster seat and loaded a bicycle and scooter into the boot, which still left plenty of room. My four-year-old daughter seemed to enjoy the smooth ride out, and after a long walk in the fresh air, I took note that the engine was unexpectedly silent while the little one snoozed in the back. When Daisy was wide awake though, the central LCD screen displaying the sat nav kept her occupied, working out which colour road we were on. That brings me onto the techy pros of the car. Connecting to the smartphone Interface took only seconds, so I could activate Spotify in one click ,and using the

‘virtual cockpit’ on my journeys became second nature. And the parking assist? One word... wow! I’m not sure how I can live without this in the future! You can tell this model has evolved from its predecessors with refined suspension and state-of-the-art systems including adaptive cruise control and traffic jam assist. Acceleration on a whole was prompt and effective, while braking was sensitive and sharp. On one day, I opted to take the scenic route home where the country lanes offered me the chance to give the engine a little push. That was a lot of fun. On a chilly morning, I’m not sure why the sudden onslaught of snow surprised me. Not the best weather to be testing out the latest motor, in no uncertain terms. But I was looking forward to seeing how the Audi fared against my usual 4x4 (albeit a compact version). The car heated very quickly which meant quick comfort and onto the roads – those the gritters hadn’t quite reached yet – where it handled reassuringly well and kept its agility. The LED

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“While I thought the A4 would be impossibly impractical with lots of frills, it actually stepped up to the mark from the perspective of a working mum who just needs to get the job done” headlights are striking so being seen isn’t an issue. I was confidently in control at all times. So with much regret, I returned the car to the friendly and, might I add, incredibly helpful Tyneside Audi dealership staff, thinking back to my initial opinions. Some of these had certainly been turned on their heads and others I’d been a good judge of character on, namely that visually it is beautiful inside and out. While I thought the A4 would be impossibly impractical with lots of frills, it actually stepped up to the mark from the perspective of a working mum who just needs to get the job done. I love its smartness and stylishness but feared that it may not have the brains to go

with it. With hindsight, this not so sales directorfriendly car turned out to be a fantastic family accessory built for travel, the daily commute and taking on adventure – all delivered with the guarantee of a slick and safe arrival. Overall verdict: it’s not a case of would I buy this car, it’s more like how soon can I have one! n The car Tina drove was an Audi A4 Saloon S Line 2.0 TDI with an OTR £39,505. Starting price OTR £34,030. Car was supplied by Tyneside Audi, Silverlink Park, NE28 9NT 0191 2896200. Visit www.northeastaudi.co.uk for details of your nearest Audi centre.

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Memories are made of these Steve Grant, group managing director, the TTE Technical Training Group, wonders what could possibly be better than the two wines he has just sampled What could be better than being asked to taste two high-quality wines? Three bottles of wine? Or maybe a craft beer tasting – hopefully another time? And it was lovely to be asked to taste wines from France and Australia – two of my favourite holiday destinations with many happy memories. I find drinking wine, especially a few glasses, can evoke memories of happy, lazy, sunny summer days in foreign lands. It also makes me think of music, which could be playing in the background, but more of that later. Wine drinking is one of life’s many great pleasures. These are two very different wines. One is white and one is red – I am a bit of a connoisseur. First up is a Petit Chablis 2014, Domaine Seguinot-Bordet. As I try not to drink on my own too much these days I am sharing this with my wife. I do prefer white wine and this is a particularly fine drink. Very pale in colour, it has a bouquet of lemons, limes and gooseberry – fruity and zesty, cheeky without being impertinent. It complemented

my wife’s paella excellently – the crisp, mineral tones ideal with the hot chorizo and prawns. Paella is my wife’s speciality – she is from Middlesbrough after all. I was not a big fan of Chablis, finding it a bit characterless, but I find this fine Petit Chablis delicious – a cool, refreshing and vibrant wine, conjuring up images of a balmy French evening eating al fresco with maybe James Taylor’s Fire and Rain in the background? Something laid back and timeless. I would definitely buy this wine – delightful. The second wine, a Kangarilla Road Shiraz 2014, is a great name for a wine for starters, especially if you say it in an Aussie accent. This is a huge wine, as someone says, being 14.5% – a strong, dark, opulent wine. Opening it unveils aromas of plum and blackberry – possibly pencil shavings? It smells smooth somehow and certainly tastes smooth – not dry like some robust reds. In the mouth it reveals even darker fruit flavours with an undercurrent of dark chocolate and hot buttered toast. Very, very drinkable – warm and

tasty. We drank this with a Guinness and beef casserole – one of my rare forays into the kitchen. It went well with the stew on a cold English evening, but took you away to Perth or Freo at the end of a bright sunny day with friends. We were no longer indoors behind double glazing but sitting outside round an azure pool, under shade with long sun-cast shadows, and laughter and music – Perfect Day by Lou Reed or even AC/DC playing TNT, the tune that the Fremantle Dockers run out to! A velvety, strong wine with a lot of taste and complexity. Again delicious, and highly recommended. n

Petit Chablis 2014 Domaine Seguinot - BORDET £11.99 (mix six £9.99). Domaine SeguinotBordet Kangarilla Road Shiraz 2014, £12.99 (mix six £9.99)

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“Very pale in colour, it has a bouquet of lemons, limes and gooseberry – fruity and zesty, cheeky without being impertinent. It complemented my wife’s paella excellently”

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Its practicality may be a matter for debate but there’s no question rthat the McLaren 570S is fun to drive as Josh Simms reports

Supermac’s everyday car McLaren Automotive wants you to know that its latest sports car, the 570S, the first of its new Sports series, comes with a vanity mirror. There’s a glove box too - a first for the company that launched just six years ago, later wowing car nuts with its £875,000 P1. There are two cup holders, 150 litres of luggage space - enough for a couple of holdalls - and even the swingup doors, a McLaren signature, have been redesigned to make the car easier to get into an, more problematically after a certain age, get out of. In other words, McLaren is pitching the 570S the first of which should be on the road by the end of the year - as its first ‘practical’, ‘everyday’ and, at around £140,000, ‘affordable’ car. This is, note, the same car that, with its Formula

1-inspired carbon fibre mono-cell frame and aluminium panels, will propel you from 0 to 60mph in 3.2 seconds - helpful for when the weekly shop really must be done and the supermarket is about to close. “Well, for McLaren it’s an everyday car, just providing you don’t need to get two people in the back,” jokes Robert Melville, the company’s 38-year-old head of design, ex of Land Rover and General Motors’ prestigious Advances Design Studio. “We know a growth market for this kind of car. Porsche of course does it so well but this is a new proposition, because the 570S comes with that Formula 1 technology - its a sports car with super car design. People have lives and need to be able to get in and out easily, throw some bags in the back. But they

still want the drama and excitement of the kind of cars we have normally made. Above all this is a fun car to drive.” Certainly McLaren is serious about the proposition and with good reason: the 570S’ practicality may be debatable (the company insists it will never launch an SUV) but it still marks a step change for the British supercar company. It is ploughing some £120m in research and development - a staggering 30% of current turnover - with the ambition to be making a steady 4000 cars a year from 2017. By the end of this year it will have launched four new cars - as many as it has in its history to date - with the second quarter of next year seeing the 540C, an even more affordable version of the 570C. That idea of affordability

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But Melville also concedes that it is, perhaps, an odd time to be pitching the idea of an everyday super-car when the future of very high performance cars on the road is, according to some, in serious doubt - their status value diminished after a global economic crisis, their environmental credentials highly questionable and, yes, as premium SUV sales indicate, their utility in a world finding increasing appeal in getting about as easily as possible rather than as fast as possible looking to make them look like four-wheeled dinosaurs. Yet he still sees a place for them. “These are complex issues - a lot of tech that makes mainstream cars more efficient filters down from the super-car world, and there will in time be a fully electric super-car no doubt,” may be relative, but the shift in gears certainly means that McLaren is set to become a more high-profile name on the roads rather than just the race track. The company, which in 2015 saw its second year of profitability, says some 1000 orders for the 570S have been placed to date, mostly to customers new to the marque. “Part of the intention with the 570S is to make McLaren much more visible and in doing so lay a foundation for the future of what is still a young company,” explains Melville. “McLaren already has wide appeal as a name. This guy serving in a shop in New York told me the other day that he loved driving the P1, which left me confused for a moment. But he meant in a video game. It was his favourite car. So the brand is already reaching different people in different ways.”

getting greener, more practical, and will show that their impact can be positive.” Certainly the 570S makes its impact felt in the driving, right down - thanks to a re-engineered exhaust manifold - to the cleaner, more Formula 1 engine note. If, despite the car’s light weight - just 1,313kg dry - it feels solid and assured in its normal driving mode - good for that supermarket run then - it is an altogether different animal in its ‘active’ mode: nimble, responsive, nippy but rooted too - never so super that the everyday driver feels out of control in this supposedly everyday car. That is in large part too due its aerodynamics, with the 570S’ front diffuser chanelling air both above, below and to the side of the car, where the door shape allows for a smaller side air intake

Part of the intention with the 570S is to make McLaren much more visible and in doing so lay a foundation for the future. argues Melville. “Sustainability aside there is this other key issue of the connected and autonomous car too - which we’re looking at too. But part of me thinks a move away from sports and super-cars would be sad too - many people love cars because they’re fun, because they feel they can engage with them, because they make you feel something. They’re not just boxes you get in to get you somewhere. That fun element does have a future. I think the era of the American muscle car - with your V10, 8 litre engine - is over. But cars like ours will keep

and thus better aerodynamics still. All this just happens to look good too. But that, Melville might have you believe, is just a happy accident. “For me the design aesthetic is about beautiful products that show their design. But it’s the problems we face in design, and their solutions, that create the car’s aesthetic,” he says. “Of course, there are ways of interpreting that, and some features are about balance, or catching the light in a certain way, but really the way it looks is the way it has to look. And that’s pretty good.” n

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Entrepreneurs by degree

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An entrepreneurial degree achieved without teacher, classroom or exams sounds questionable but Nina Jussila is helping that to come about in North East academia. Brian Nicholls looks into it Once you meet Nina Jussila it shouldn’t surprise you that aspiring entrepreneurs from Newcastle Business School have given Northumbria University the distinction of winning a national contest to find successful start-ups. A learning support officer, Nina is also a key personality behind the launch of a new entrepreneurial business management degree course, which Northumbria to its credit has been the first of four UK universities to introduce. If the course proves as successful as early results suggest, we shall be justified in asking why UK universities haven’t tried it out long before, since it has been turning out successful entrepreneurs in Finland for around two decades now. Nina herself is a product, and today is an educational entrepreneur. Jyväskylä University, Finland’s second largest university – in terms of masters degrees conferred, and the birthplace of education in the Finnish language (from 1863) – has gained Jyväskylä (population 135,591) the soubriquet Athens of Finland, precisely for its contribution to education. Jyväskylä, though the largest city of central Finland is a much smaller host to academia than Oxford, Edinburgh, and certainly Newcastle, Sunderland or Teesside. Yet its innovative programme for entrepreneurs started easily enough. A lecturer there, wishing to try something different, displayed a poster. “Do you want to travel around the world and learn some marketing?” it asked. The first team of students, on graduating, went on the road with the money they had made. Newcastle Business School’s course has been developed with what’s called the Team Academy in the Jyväskylä Institute of Science and Technology. A 10-year check of the

programme in Finland showed the percentage of Team Academy graduates there starting new businesses was five to 10 times higher than in traditional higher education institutions. One out of every three of the Finnish graduates start a business straight after finishing their studies. To anyone wavering about a university education the course towards an entrepreneurial business management degree sounds tempting: no teachers, no exams, no classrooms. But there’s always a day of reckoning, and for these students there are still assignments to be done, presentations to be made and reflections expressed – all fully connected with their chosen business. From the start they’re doing business with real money, cultivating real customers. They’re pushed into the field to talk to people and make contracts. “Everything is real,” Nina points out. She heard about the course when considering her future and thought: “That’s something I’d definitely like to do. It’s made such a huge impact on me. I was able to do things no-one would ever expect me to do,” she recalls. After graduating at 23 and taking a gap year, she started her own company as an educational coach and working on other projects also. “So many young people feel they don’t fit in the normal model of learning,” she observes. “I wondered how I could help others like that to succeed as well. Afterwards I didn’t want to stay

in Finland. I thought Spain could be interesting but decided England’s business culture was closer to Finland’s, and it’s a nice place with the opportunity I was looking for.” Newcastle and Bristol were the first cities to test the course. “I had the opportunity to come to Newcastle for a few months to help out, and here I am after just over two years involved in running the course,” says Nina, who is 26. Northumbria’s course is going well, she feels, as the success in the competition seems to have borne out. “The first year is always hard for students,” she elaborates. “They have no role models. But some people are passionate about a particular interest and think how to build a business out of it. Many come in with no idea at all. They simply feel that running their own business is how they want to do things.” By the second of the three years’ study they understand the culture more and can see others who started their business. It’s all about learning by doing. Aspirants are not told what they should do. “When they first come in we lend them £10,” Nina explains. “They must make as much with that £10 as possible. They’re a bit shocked at first but that’s the whole ethos. That’s their seed fund. They bring in some money with the start of their business and invest that for the next project. It works.” They obviously have to decide how to learn about marketing. They have to find books,

“So many young people feel they don’t fit in the normal model of learning. I wondered how I could help others like that to succeed as well”

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Start-ups that appeal Concept Enterprise, the 13-strong team of students who took Newcastle Business School to success in the two week long competition are on the second year of the course. The teams competed with their products and services to get most customer visits (scoring one point), offers (five points) and deals (10 points). The team with the most points wins. Concept Enterprise won comfortably, two of their products and services being targeted at gym and fitness enthusiasts. Sound Threads, a men’s clothing range, includes fitted shirts, t-shirts and joggers designed and printed by second year students Ollie Pears, 21 and from Lincoln, and Ralph Winter, 20, from Weardale. They’re also behind PowrFitness, gym wear for weight lifters. They both invested £200, and now have £1,000-plus turnover, and £800 worth of stock. They have 3,000 Instagram followers team leader Curtis Pratt, 19, says: “We’re a really diverse group – some quiet but creative, others who are outgoing salespeople.” He has developed a student discount card for small businesses in Newcastle that don’t qualify for National Union of Students discount. Another team member, Tom Cheung, also 19, is attracting around 350 students to his weekly house and garage music nights in the city centre. Alice Webster, 20, from Durham, is developing Clean Shakes with Poppy Brookes and Rachel Horton – a healthy milkshake containing fruits and almond milk, which sufferers from lactose intolerance can also enjoy. Robert Lundgren Jones, 18, from Alnwick, is meanwhile working on Clave, a drum customisation business. Lucy Hatt, EBM programme leader at the business school, says: “We’re particularly pleased one of our teams took the national prize and by such a large margin. They are such an active team who do all the right things anyway. Our programme is for entrepreneurial employees, as well as those wishing to be entrepreneurs. “Our first cohort of third years is mature – able to hold their own in professional situations. They can talk with the benefit of experience at networking events and potential interview situations. The North East has the potential to be a fantastic hub of entrepreneurial activity in the country.” Success of the EBM programme reinforces Northumbria’s existing prestige of having one of the top 1% of business schools worldwide through double accreditation from the Association to Advance Collegiate Schools of Business – an international hallmark of excellence. Northumbria was also named fourth best university in Sir Andrew Witty’s 2013 review of universities and growth for establishing start-up companies in the UK, and the impact of almost two-thirds of Northumbria’s business and management research has been rated as world leading or excellent internationally.

“We don’t tell them ‘you must learn all this now’ because they won’t need it all now and may soon forget it. So it’s learning through need. Once you need that information you have to learn it.”

find people who already knowledgeable about marketing, and adapt as necessary to plan their project and improve their concept. “It’s just-in-time learning,” Nina explains. “We don’t tell them ‘you must learn all this now’ because they won’t need it all now and may soon forget it. So it’s learning through need. Once you need that information you have to learn it.” Also the students are based in a business rather than a traditional environment of academia, so they can be surrounded by actual entrepreneurs. That’s why the Newcastle

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course is run at the Northern Design Centre at Gateshead, rather than in Northumbria University itself. They don’t have a work placement because, as Nina puts it, their own company is their work placement. Around 65 students – team entrepreneurs, they are called – are on the Northumbria course, making up six teams in total. Each team company has one coach – “our academic staff coach rather than teach,” Nina stresses. “I’m not academically inclined and don’t have my own team. But I’m part of every team, running

everything other than the academic side.” When Nina and her team colleagues graduated they closed the company they had been building. But four different companies, which had already been started during the course, continued. “On graduating, you can decide whether you want still to be with the company you have worked on. Our third year students here are now deciding whether to incorporate their businesses,” Nina says. So what of her own entrepreneurial future? “I’d love to stay a few more years in England, then

who knows?” she wonders. “I have a passion about considering how to change education. I’m doing my masters now and it could help me get credibility for a future company. People will listen to me more. But I don’t see myself as a lecturer. Bouncing ideas off other people is what gives me energy.” Meanwhile her existing endeavours draw appreciation. An associate says: “She’s a lovely, vibrant young woman – a huge support and font of knowledge for the students already firming up their business plans for the future.”n

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E H T F O ROAR E D I S Y COUNTR

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as created a h n o s il W lm lco ny with some r rally ace Ma o e m m r r a fo h 0 in 0 s 1 e £ iv ith just iness that thr s u b e v olls why rally Starting out w ti h o ic m N o n t u ia a r B e h s tell er nic ntryside. He u £48m-turnov o c l nd its estate fu a ti ll u a a h e y b r t s tu o n e m re for a 12th C of the North’s tu fu w e n e h t to be cars just had

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Greenies thinking industry is incompatible with prime countryside should visit Dovenby Hall Estate, Cockermouth, and see how easily a top UK automotive niche firm works close to a national park. The hall, dating to 1154, is now the entrance to where all Ford rally cars are built – by Malcolm Wilson’s remarkable M-Sport. He, during more than three decades in rallying, won two British national titles in the 1970s and the British international title driving a Ford Escort in 1994. He, further, drove for three factory teams in the World Rally Championship (WRC) and, for several years, was Ford’s chief test driver. Today M-Sport, his family business, has a worldleading private team. Its international titles and rally wins have included two manufacturers’ titles in FIA World Rally Championships. As managing director of Ford and M-Sport’s Manufacturer teams at Dovenby Hall, he’s responsible for Fords in WRC activities, and development of its Fiesta SportTrophy programmes. His £48m turnover company, moreover – 95% earned outside the UK – has just won a vital five year planning battle to develop there further with a £19m investment. This will provide a new workshop even bigger than one already football pitch size. The firm

will also be able to produce its own carbon fibre material, and will have a two and a half kilometre test track. A hotel might follow. The payroll of 220-plus – including 28 at its facility in Krakow, Poland – could show 100 more by 2021, mostly local. Working with Lakeland College, M-Sport is proud of its machinists, for example, noted for winning skills awards. You’d think a five year campaign to safeguard the firm would leave creases but Malcolm at 60 looks 10 years younger. “It must be the stress,” he jokes. Planning objections mainly centre on noise concerns, and Malcolm’s grateful for support in finding a solution through Allerdale Council and Northern Developments in Carlisle, also working on the project. “It’s a shame our proposal had to go to a judicial review,” Malcolm says. “But we can now move forward.” An admirer marvels: “Malcolm never thought he’d outgrow this place as it stands. It shows how good a businessman he is.” Cockermouth born and bred, he’s proud his team can remain at Lakeland. “Success without them would be impossible. Without their dedication world titles wouldn’t have come. We also appreciate ongoing support from Ford Motor Company.” The ultimate aim? To be a one stop shop for

any manufacturer wishing to develop a car at Dovenby. Malcolm explains: “Any prototype here would be assured secrecy. We’re pushing for accreditation on this. Nowhere else in the UK has it. It would be a really strong asset for us as a centre of excellence. We’ve everything on site required – engineering, design, fabrication, composite, test facilities too.” Testing, rebuilding, maintenance and reconditioning are done with latest equipment and technology. Components are made there: electronics are assembled by hand. Facilities are among the best, David Evans, rallies editor at Autosport and Motorsport News, told the BBC. Even an existing test track at nearby Greystoke Forest is beyond what other WRC teams might access, in Evans’ view, and Christian Loriaux, drawn to Dovenby Hall’s £1m research and development facility from Prodrive in Banbury, is considered one of the sport’s finest technical engineers. Engineers and designers work closely with the technical teams building the Focus RS WRC cars. A computer links the engineers to Ford’s global engineering network. Yet recession threatened ruin. Malcolm admits: “The end of 2012 was probably my most difficult period in business.” Ford’s multimillion-pound

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“When I was an aspiring national rally driver, hand-fettling my Mk2 Escort hoping to emulate Roger Clark, any idea of responsibility for Ford’s World Rally programme was a pipedream” pullout from WRC, despite two world title wins together, cost jobs at M-Sport (employing 200 then). What then? “Being against the wall I think can bring out the best in people,” says the voice of experience. Fortunately, rally-enthusiastic Qatar became a sponsor, and the team also secured a technical partnership with Bentley for its endurance racing internationally. Today M-Sport not only continues itself to contest the WRC but also develops Bentley’s continental GT3 race car in association with the firm’s motorsport team at Crewe, running it at events also. “We do for Bentley what we did earlier for Ford, an entire project: design, develop, manufacture and build the GT3. We run their race programme, we sell their cars worldwide to teams and private customers. A prestigious job – fantastic.” So without Ford’s millions but a technical tie-up still, M-Sport is ‘self-sufficient… positive again’. M-Sport’s customer base has spiralled over two years. Through its own good performances in the

WRC, M-Sport wins the custom of private teams contesting all levels. “We feel very confident about our latest investment – our biggest ever. We were nearly out of space. With an additional 112,000 sq ft factory and test track we can do more and more in-house and look to increase our manufacturing.” Malcolm’s past is still a dream, he admits. “My parents had a car breakers’ yard. I loved rallying as a youngster. Just to take part in a rally was my hope – not necessarily to win, but to enjoy a sport I loved. Immediately I could drive it was all I wanted. I started rally driving in 1974, at 17. “Essentials, I realised, were a natural ability for driving, the rest being hard work. I was fortunate. I had early success, getting recognition in 1975. In 1977, at 21, I had my first factory drive.” But he was also interested in business. “I started in a garage at home in 1979. I was 23 and saw opportunity for business in motorsport. I’ve had a fantastic career, always with goals, like I’d stop rally driving at 40. I did. There were other things

I wanted to do. “When I was an aspiring national rally driver, hand-fettling my Mk2 Escort hoping to emulate Roger Clark, any idea of responsibility for Ford’s World Rally programme was a pipedream” he recalls. “Now we’ve grown as a company. We cope with pressures and cater for more private teams than ever. “In 2006, we won the FIA Manufacturers’ World Rally Championship with the Ford Focus RS WRC06 – our first world championship win. We delivered the trophy to Ford, their first WRC title since 1979, and repeated it in 2007.” Appointed OBE in 2009, Malcolm had set up with £100. “By 1996 when we got the Ford contract, I already had, worldwide, lots of good customers. We won 11 regional championships in places like the Middle East, Portugal, Greece.” Ford had appointed him after his personal venture beat Ford’s outfit. His team of 18 within months became 106 descending on Monte Carlo for round one of the 1997 championship. Converted farm buildings at Cockermouth, to which the business had relocated earlier, were inadequate, so initially Ford work was done at its Boreham site in Essex. “Dovenby Hall was in a terrible condition then. A purpose built factory, brownfield instead,

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would have been easier. But I wanted to create something unique – so that even if something went wrong, Ford would think twice about moving back South – even if they got rid of me. Ford reservations were understandable, and many still can’t understand, Malcolm says. “Yet we’ve proved everyone wrong. Here we employ top people of many different nationalities. All have settled in Cumbria, and there’s no problem recruiting when someone does occasionally move on. “We appear to be a training ground for the likes of Red Bull Formula l team. Someone wishing to get to Formula l may come to us first. It becomes known that if people have worked for us for a reasonable time they must be ok.” In Mexico it’s still recounted that a rally car rolled into a lake and was submerged for 10 hours. M-Sport got it out, dried it off, and enabled it to finish the rally and get a world championship point. Before Dovenby Hall re-opened in 2000, 38 properties on both sides of the country were considered. Almost 30 suggested by Allerdale Council were ruled out. Then a planning officer suggested the empty, sorrowful looking Dovenby Hall Estate.

It’s somewhere special and an incredible workplace too. Guys in the design office can look out over the fells…” The council and support agencies gave expertise and loans; £12m went into reviving the listed building. Malcolm, with Northern Developments at Carlisle, focused on retaining originality, wood panelling and all. Designers worked empathetically. From a dilapidated and disused hospital, the old manor house set in 115 acres became seamlessly wed by glazed walkway to a hangar-like workshop and final assembly area. A huge walled garden had been remodelled into a facility larger than many Formula 1 teams have. The hall provides offices. Original 12th Century stonework stands out and walls bear the names of drivers who’ve rallied Fords to victory. “Like most companies, we’ve had growing pains,” Malcolm tells. “I’d do it again, though capital’s harder to access. We got from English Partnerships roughly £1.5m first time round. Dealing with banks was a lot easier then too. A Swedish firm, like M-Sport, makes rallycross cars. But all Ford rally cars are built at Dovenby. Almost 2,000 competing globally are moving

An idyllic setting still Dovenby Hall, two and a half miles from Cockermouth, is set in parks and woodland still. Yet its facilities include a helipad, lecture theatre and a rally museum. Eight other tenants have businesses on the estate, none to do with motorsport. Dovenby Hall also offers fully serviced office space and rooms for offsite meetings, including a trophy room shimmering with its amassed silverware. The workshop area can host product displays. Despite its radical change of use, the venue throughout its history has seen change and embellishment. Nor were automotives the first industry around there. Around the turn of the 19th Century, royalties from a local coal mine went to the estate, which also had a private railway station. Parties of visitors, whether business or social, are welcome (pre-booking essential), and Dovenby Hall Estate is easily reached from the M6 motorway and A66 trunk road.

tributes to that. The R2 can be bought as a kit. But four wheel drives are built and serviced at Dovenby, and return also after any crash. Krakow is a miniaturised Dovenby but without engineering and design. M-Sport’s a limited company owned by Malcolm, his wife Elaine and son Matthew, 28 – also a former driver. Is Malcolm hands-on? “Technology has moved so fast that to run a business now on this scale and still be involved in every technical aspect of the cars isn’t possible.” Rallying has taken him as far as New Zealand. But it was in Spain he turned out his biggest team for one rally: 146 in all, 45% of the entry being Cumbrian built Ford Fiestas. Proudest moments? “Winning the World Rally Championship for Ford in 2006. It was 27 years since Ford had last won it.” Does he ever feel he’s lord of the manor amid such gracious surroundings and so widely admired an organisation? “I take pride in ensuring everyone looks after the place. It’s somewhere special and an incredible workplace too. Guys in the design office can look out over the fells…” With Ford support, the team reportedly made Colin McRae the highest paid rally driver ever on £3m a year. Today M-Sport can only pay its drivers a fraction of that, or indeed what competing manufacturers such as Hyundai, Volkswagen and Citroen pay their drivers. “We’ve just had one of our least successful rally seasons,” he affirms. No issue, though. “We took a gamble with two very young drivers, Elfyn Evans from Wales and Ott Tanak from Estonia.” They’re still learning their trade in his words, but promising a good future. Any Northern firms feeling ‘Northern Powerhouse’ should exist in motorsport might be interested that while M-Sport will always value hearing from any car manufacturer, it also welcomes chatting with any firm interested in gaining international exposure through sponsorship. Opportunities exist in both the rallies and the race programmes and, says Malcolm: “The rally programme is global for events in the WRC. We’re going to China this year, for example – the first time for over 10 years. We’ve a good global outreach and clever marketing ideas.” n

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GOING FOR BAL ANCE Richard Hogg graduated from Newcastle University in mechanical engineering. But what else might he have done had he made a different choice? He initially entered the industry but then saw a niche opportunity for a firm able to understand the sector’s needs in finding the right people to grow and develop businesses. Now, his firm works with some of the best known names in engineering, manufacturing, oil and gas, renewable energy and more. It was almost a very different story though… Looking back at the ambitions of my younger self, I might have been writing this now as a professional in one of the world’s most despised industries. I’d looked along a number of career paths, one being the finance route. Considering how that sector is now viewed by many after the global banking crisis, the collapse of Lehman Brothers and the bailout of numerous prominent banks, perhaps this wouldn’t have been my best option. My background, before establishing my own business Jackson Hogg Recruitment, is engineering. So I’m technically minded. I also

have a head for figures, and a career in banking might have suited me very well. However, when it came to the crunch, it wasn’t the job itself that put me off. I talked with a number of traders in their 30s, best described as “burnt out” from life in the Square Mile. I decided then it wasn’t for me. I much prefer the North East. This is a great part of the world in which to live and do business. I believe we work very hard here, while maintaining a life balance that makes the effort worthwhile. Why drive yourself into the ground and have no time or energy to enjoy family and friends, or the rewards and other benefits around you? For many people London is the be-all and endall. It’s a magnet that attracts them, sometimes never to return from inside the M25. Not me, though. Here in the North East, I believe we have a better quality of life and brilliant people. Recruitment is a people business, and I find it so rewarding to support my clients as they develop world class products and thereby create hugely successful businesses.

“For many people London is the be-all and end-all. It’s a magnet that attracts them, sometimes never to return from inside the M25.” To me that’s infinitely more rewarding than financial speculation. Those who choose a life in high level finance can keep the hustle and the bustle of London. There’s more, much more, to life. n Richard Hogg is managing director of Jackson Hogg Recruitment in Newcastle

PRINCE’S TRUST

Inspiring young lives £100,000 pledge

Local businesswoman and philanthropist Helen McArdle has become a leading funder of The Prince’s Trust in the North East. The care home owner is now a patron, and has committed £100,000 to be invested in the trust’s Get Into programme in the region. The donation will support a Get Into Health and Social Care programme that the trust will deliver in the North East this spring. Get Into is one of the trust’s key employability courses to help 16 to 25 year olds who are work-ready but without relevant professional skills to gain employment. Helen McArdle is chairman and founder of family run businesses Helen McArdle Care. Over 27 years she and her family have built and operated more than 30 new care homes. She was appointed CBE last year. John Marshall, chairman of The Prince’s Trust Development Committee, says: “Helen will help us continue to tackle the region’s ongoing challenges from the highest rate of young people not in education, employment or training in the UK. We can make a difference and our patrons’ support allows us to do this.”

COMING UP 11 APR – Sir Vince Cable, former Secretary of State for Business, Innovation and Skills will address the Trust’s annual business dinner at the Hilton Gateshead. Tables cost £1,000 for 10 people. The event is supported by Newcastle University Business School, PwC and Bond Dickinson. 20 MAY - following last year’s successful Bond Dickinson Clay Shoot in aid of the trust (that included a performance over lunch by comedian Omid Djalili), this annual shoot is set to be bigger and better than ever, again featuring a celebrity guest over lunch. The event at Lambton Estate, Durham, costs £1,500 per team. Contact for more information: Zoe Mulvenna, 0191 497 3212 zoe.mulvenna@princes-trust.org.uk

What a great round Football legend Alan Shearer and many other sports personalities turned out in force to tee

Rocking ladies: raise a record

Ladies rock to record The year’s most glamorous fundraiser, Ladies Who Rock, was held at the Biscuit Factory, Newcastle, and raised a record £52,000 for The Prince’s Trust. More than 250 influential women of the region attended, enjoying fashion shows from big brand names Fenwick and Barbour. Entertainment came from Sara Pascoe, with music from Frankie’s Guys and Live Wire. The event was supported by Deloitte, Barbour, Queensway, Dental, Geek Talent, Trust Estates and TPO. It was led by The Prince’s Trust event committee, chaired by Prince’s Trust patron and local entrepreneur Alison Morgan.

off for the annual Benfield Golf Day and Gala Dinner, to support disadvantaged young people in the North East through The Prince’s Trust. The event at Close House Golf Club was another triumph, raising £56,000 for the youth charity. A key regional fundraiser on The Prince’s Trust calendar, it’s sponsored by Benfield (now part of the Lookers group). Head to head with Shearer was Olympic gold medallist Jonathan Edwards, former England cricketer Steve Harrison, and other celebrities included ex-Newcastle United players Steve Harper, Rob Lee and John Beresford, also professional golfer Carly Booth. All were out to raise awareness about the trust’s work in the region. Alan says: “It’s tragic. Some young people can be so low they haven’t even confidence to walk out of the door in the morning. Funds we raise are vital to enable the Trust to ensure these young people do not get forgotten.” Nigel McMinn, managing director, Lookers

plc, says: “The trust makes a real difference at local and community level. With so many disadvantaged young people looking for work, and ways to build a future, it is vital we continue our support for fundraising events like these.” More than 300 guests attended the dinner which included a ‘money can’t buy’ auction. The money raised will help disadvantaged young people towards the qualifications and experience they need.

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

MEDIA BRIEFS

Second take on what they tell us Business catches the eye As major media publisher Johnston Press further consolidates in the presently rough and tumble newspaper industry it comes as relief to learn it considers its Sunderland Echo, Shields Gazette and Hartlepool Mail as core publications – “Important brands at the heart of the business and making a significant and important contribution to the group.” They have escaped inclusion in 59 titles it considers “sub-core” and while it denies the latter will necessarily be the newspapers it is looking to sell, it is still heartening that the North East regional dailies remain in high regard. The group promises to manage this group to achieve a high degree of best practice driven by a balanced and consistent approach. “Specifically we will look to organise our newsrooms to deliver the appropriate mix of content across these ‘core’ titles,” it adds. Asking their readers in business if more local business coverage would be welcomed could help guide their growth aspirations too.

All in the mind Want to be the brains of the organisation? Dr Jenny Brockis, a York-born medical practitioner, applies latest neuroscientific principles to explain how professionals can expand their brain’s capability to think well under stress, focus effectively to get more out of their day, and prepare themselves for future challenges. Her newly published book, Future Brain (Wiley £14.95, p’back and e-book), suggests through a 12 point plan how to boost brain fitness by developing a habit-changing plan to get more done with less effort. The easily understood text can serve at individual, team, or organisational level.

Truth or dare The number of employed journalists in the UK has fallen by 6,000 from a peak of 70,000 in 2013. About 64,000 people describe themselves as journalists, newspaper and periodical editors, statistics from the Government say. Meanwhile, the number describing themselves as “public relations professionals” has shot up from 37,000 in 2013 to 55,000.

For entrepreneurs Introducing Entrepreneurship by Alison and David Price (Icon Books p’back £6.99, e-book £4.99): One of the most helpful pocketbooks on its subject, a specialist in leadership development and a senior manager of CMI pedigree. Business Creativity by Jodie Newman (Icon Books £6.99, e-book £4.99): Insights and actual case studies plus a toolkit of techniques to drive business more successfully. Newman runs her own business, Creative Consulting. Entrepreneur Revolution by Daniel Priestley (Capstone p’back and e-book £12.99): An entrepreneur since the age of 21 offers a guide on how to think, network and earn a good living in small business. Compelling People by John Neffinger and Matthew Kohut (Piatkus £8 99) is widely read at the Harvard and Columbia business schools. The authors, drawing on social science, and their work with Fortune 500 executives, members of the US Congress and Nobel Prize winners, assert that while we may not be born influential, we can certainly become it.

BIZQUIZ 1. Which North East law firm currently celebrating its 140th anniversary has been mentioned in an Elvis Costello song? 2. Which North East brewery founded in 2000 recently came out top in a search for Britain’s best? 3. The CBI is forming a group of business leaders to drive economic growth in the North. What’s it called? 4. John Walker of Stockton, son of a grocer and wine merchant, invented the friction match and sold it from 1824. What was his vocation? 5. Nissan, temporarily at least, has lost its status as the UK’s most prolific manufacturer, though its Sunderland plant remains the most productive. Which other manufacturer has displaced it with its operations from three sites?

Bizquiz answers: 1 Jacksons of Stockton and Newcastle. 2 Wylam Brewery. 3 Business North. 4 Pharmacist. 5 Jaguar Land Rover in the Midlands and on Merseyside.

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BIT OF A CHAT Frank Tock’s examining the news behind the headlines Sock it to me Days of boring black socks are over, someone in the hosiery business suggests. Colourful and patterned socks for business are in vogue. They imply you are rebellious and gutsy. Look how the Scots went on wearing tartans even after their defeat at the Battle of Culloden when the British Crown had outlawed such attire. Expressing yourselves through your socks indicates a person happy to take risks, our persuader goes on. But I already take risks in black socks, wondering if fate may land me in A&E where I have to remove my shoes and reveal my persistent hole in the toe.

Sum retirement “So do you still play volleyball?” James Ramsbotham asked Hossain Rezaie as the

middle aged entrepreneur admitted he was winding down a bit. “I stopped that after I added up the ages of the other members of my team and found it came to less than my own age,” Hossain joked. The chief executive of the North East Chamber went off, satisfied that at least there was reasoning behind the decision.

Not the best time We sincerely hope Ebac’s ambitious proposal to revive the manufacture of washing machines in Britain will not have been harmed by the sudden upheaval in management around this launch time. The departure of managing director Pamela Petty as managing director and former CBI leader Dianne Sharp as chief executive of the go-ahead Newton Aycliffe firm without immediate public explanation comes as the company’s founding chairman John Elliott has also thrown himself into a leading role

Cheers all round: Members of Garbutt + Elliott’s launch party with Schoolhouse Brewery’s Graham Gannaway (centre).

Bottling it up It was cheers all round as accountants Garbutt + Elliott tasted fruits of their labour given over to helping to create a speciality beer. Their hosts were their client Schoolhouse Brewery. They joined the team behind the Darlington based microbrewery in an early sampling of the special edition beer, named Balanced Books. The well pleased accountants went on to choose it as a corporate gift. The breweries division of Garbutt + Elliott is headed by director and head of business services, Matthew Grant, an officer and former chairman also of the York branch of the Campaign for Real Ale. Schoolhouse Brewery’s Graham Gannaway is obviously delighted by the business support and advice received – with reason, for Matthew explains: “The new companies springing up in the booming craft brewing industry have special needs and are often unaware of options available. We may not know how to brew great beer. But we know the brewery business.”

campaigning for Britain’s exit from the EU. That may or may not have had anything to do with the departures, and the chairman has proved more than capable over the years of outfacing many challenges to the firm’s success with other products. Many will hope however that the new situation does not impede either production or, especially, the marketing.

Making is magic still What are your three golden rules, we asked Nina Jussila, whose Finnish background and expertise is contributing to success of the Team Academy entrepreneurial education at Northumbria University. She suggests: Set your goals. Where have I been, where am I now, where do I want to go, how do I get there, and how do I know if I’ve got there? You must create steps, work out how to measure them, and keep updating. Just do it. There’s no better time than now. If you wait you will regret later that you didn’t start sooner. Find the right people, build the right team. You don’t have to know everything. You have recognised what you are good at so find the people good in things you’re not so good at. Nina, interviewed on earlier pages in this issue of BQ, finds in Finland the main ambitions of aspiring entrepreneurs are service inclined, whereas in the North East of England she has noticed many people want to create products and come up with completely new things that they can touch and handle. Sounds ok to us.

“There’s no better time than now. If you wait you will regret later that you didn’t start sooner.”

Bit of a squeeze A company that’s into these things tells me that, following the 5p bag charge introduced recently, sales of shopping trolleys have risen 30%. I’ve tried lining my wastepaper basket with a shopping trolley but it’s not easy.

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