BQ West Midlands Issue 05

www.bq-magazine.co.uk

ISSUE FIVE: SPRING 2014

Clever cloggs How an ailing footwear store was rescued Watching you The private eye tackling business crime an unlikely punk Bank boss reveals ararchic past, and more going bananas Career change proves fruitful ISSUE FIVE: SPRING 2014: WEST MIDLANDS EDITION

my magic formula Businessman’s golden rules for success

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

WEST MIDLANDS EDITION

BQ Breakfast - Daily insight, news and analysis to help grow your business. Register free at www.bq-magazine.co.uk Business Quarter Magazine

£2.95

WELCOME

BUSINESS QUARTER: SPRING 14: issue FIVE As the recovery gets under way in 2014, BQ highlights the crucial role that will be played by banks and other finance organisations.

We speak to Ray O’Donoghue, Barclays’ corporate banking chief, who’s convinced that the cash is there for investment-hungry companies. But he also warns that they must work closely with banks and government agencies to find the right products.

What’s interesting is O’Donoghue’s reminder that Barclays has been busily head-hunting throughout the recession to put the right expertise in place as we enter a more positive economic period. Personally, I’d add that it’s time for all banks to prove they mean what they say by substantially increasing loans, so healthy firms can invest in their futures.

But for fledgling companies who just cannot manage to find all the cashflows needed, we’ve also spoken in detail to Steve Walker, boss of the Aston Reinvestment Trust – now known simply as ART. This ‘industrial and provident society’ has more money than ever before to assist start-ups and SMEs. I say the ‘region’ because, as Walker explains, ART is not just about Aston, nor is it only focused on inner city Birmingham. It’s now got £2.4m a year to support small companies and trading charities across the West Midlands.

The interviews with O’Donoghue and Walker paint detailed pictures of both bankers’ careers, and while their work is now separate, it’s interesting they both grew up at Barclays.

It’s entrepreneurs who need the finance, of course, and BQ looks at three very different examples of small companies that are growing fast. From Mark O’Sullivan’s banana export business to Dean Chudasama’s house-building company, these interviews provide useful

insights into how different businesses are heading towards success.

And the commercial detective agency set up by David Kearns is an exciting story. Now employing more than 40 people, Kearns describes how he’s busier than ever dealing with employee misbehaviour – ranging from false absenteeism to theft, and from sexual assault to senior executives’ misappropriation of funds. As the economy gathers pace, his comments about the importance of security are a worthwhile read for any company.

Family firms are another BQ focus, and we look at two very different experiences. One is Lawton Tubes of Coventry, doing better than ever as it heads towards its 100th anniversary.

The other is Cloggs.co.uk, a Birmingham family firm until it went into administration in 2012, but now bouncing back with the same managing director under the ultimate ownership of JD Sports.

Elsewhere in our news pages, we record the latest aviation news that shows the gradual but continual progress of Birmingham Airport’s performance, even as it shakes itself down after a disappointing initial rebuttal of long-term expansion plans. You get the feeling the airport’s bosses won’t take the Davis Commission’s draft findings lying down.

Elsewhere, Professor Lord Kumar Bhattacharyya eloquently tells the UK Government exactly what it needs to do to accelerate an upturn in manufacturing and exports. For those interested in long term growth, it’s always worth knowing what one of JLR’s closest confidantes has to say. Happy reading.

Steve Dyson Editor, BQ West Midlands

CONTACTS room501 ltd Christopher March Managing Director e: chris@room501.co.uk Bryan Hoare Director e: bryan@room501.co.uk EditorIAL Steve Dyson Editor e: steve.dysonmedia@gmail.com Design & production room501 e: studio@room501.co.uk Photography KG Photography e: info@kgphotography.co.uk Chris Auld e: chris@chrisauldphotography.com advertising Alan Dickinson Project Manager e: alan@room501.co.uk t: 07917 733 047 Chancelle Bloe Sales Consultant e: chancelle@room501.co.uk t: 07786 070 772 Mike Moloney Media Sales Consultant e: mmmikemoloney@aol.com t: 07801 849 367

room501 Publishing Ltd, Spectrum 6, Spectrum Business Park, Seaham, SR7 7TT www.room501.co.uk room501 was formed from a partnership of directors who, combined, have many years of experience in contract publishing, print, marketing, sales and advertising and distribution. We are a passionate, dedicated company that strives to help you to meet your overall business needs and requirements.

All contents copyright © 2014 room501 Ltd. All rights reserved.

While every effort is made to ensure accuracy, no responsibility can be accepted for inaccuracies, howsoever caused. No liability can be accepted for illustrations, photographs, artwork or advertising materials while in transmission or with the publisher or their agents. All information is correct at time of going to print, February 2014. room501 Publishing Ltd is part of BE Group, the UK’s market leading business improvement specialists. www.be-group.co.uk

Principal Sponsors

Associate Sponsors

WEST MIDLANDS EDITION

03

BQ Magazine is published quarterly by room501 Ltd.

BUSINESS QUARTER | SPRING 14

CONTE BUSINESS QUARTER: SPRING 14 32 clever cloggs

Cloggs.co.uk chairman Chris Thomas on how he rescued his troubled business

only the clever cloggs survive

36 watching over you Former cop turned private eye David Kearns cracks down on business crime

46 punk shock

Features

Barclays boss reveals his love of anarchic music – and more – over lunch

52 BQ Live debate How can businesses harness digital connectivity to gain a competitive edge?

20 aviation news Take off for airport’s £40m runway extension

24 post boy to boss How Wyatt International’s chairman made it in the mad world of advertising

26 my magic formula The golden rules that enabled the boss of Damson Homes to build an empire

BUSINESS QUARTER | SPRING 14

60 going bananas A career change proved fruitful for transport entrepreneur Mark O’Sullivan

64 Building trust The Aston Reinvestiment Trust boss dedicated to helping small businesses

82 copper-bottomed How Christian values of honesty and fair play have guided a family-owned firm

04

32 Bank boss with an anarchic past

46

TENTS WEST MIDLANDS EDITION

43 commercial property

All the latest on what’s happening in the built environment

66 wine Verdicts on a Portuguese red and an Austrian white

Regulars 06 The big issues Lord Kumar Bhattacharyya, of WMG, challenges government thinking

10 news What’s happening in the West Midlands business world

18 movers and shakers The big players from across the region on the move

68 motors Company MD takes the impressive Infiniti Q50 Auto Premium for a spin

yes, we have some bananas

60

74 equipment Laboratory-grown diamonds – a real gem of an idea!

78 fashion

building trust with businesses

The Italian family firm that makes the ties of choice for world leaders

88 bit of a chat With BQ’s Bill Borde

90 events Key business events for your diary

05

64 BUSINESS QUARTER | SPRING 14

THE BIG ISSUES

SPRING 14

>> Why low exchange rates are vital for growth Professor Lord Kumar Bhattacharyya, founder of WMG, the manufacturing arm of Warwick University, challenges the UK Government to do more on exports and competitiveness Much of the Government’s role in making business competitive is essentially passive: keep corporation taxes down, do not over-regulate and do not impose unreasonable bureaucracy.

I have no quarrel with this, as competitive taxation and sensible regulation are essential in a modern economy. In Britain we have outstanding finance and services companies that rely on these principles. However, this is a minimum, not a maximum, strategy for being competitive.

To go further, we must actively support the creation of a strong product base in a wide range of sectors.

We cannot rely just on banking or on our aerospace industry, because the global market is changing. The Prime Minister found this to be so on his recent visit to China.

Economies such as China and India know their consumers are very attractive to global businesses. Understandably, they want to keep more of the value of their growing markets in their economies.

What does that mean for Britain? In population terms, we are a relatively small country. For our businesses to grow they must succeed in export markets as well as at home.

The first step to achieving this is a competitive exchange rate. For many years, British exports were strangled by high sterling, and we must not let that happen again. The Bank of England has a major role to play by not rapidly increasing interest rates.

Stable exchange rates clear the way for government to help create an innovation framework that helps businesses develop their product base. This is the key to sustainable growth.

For proof, look at the export data by region.

In most of Britain, exports were flat in 2013, but in the West Midlands exports were up a staggering 14 per cent. Why?

BUSINESS QUARTER | SPRING 14

It cannot be the exchange rate, or tax rates, or regulation. No, the reason is that one company, Jaguar Land Rover, is enjoying huge success, now accounting for almost a quarter of all British exports to China.

06

This is no accident. When the global market was in crisis, JLR spent billions of pounds on researching innovative new products. It spends £100 million a year with WMG on R&D. Now it is reaping the rewards. >>

SPRING 14

COMPANY PROFILE

Transforming biomedical innovation into enterprise The new Biomedical Innovation Hub is opening at Birmingham Research Park in Autumn 2014.

The Biomedical Innovation Hub is a brand new, fully serviced biomedical laboratory specifically designed to provide entrepreneurs and innovative start-ups with access to affordable laboratory facilities and equipment. For a very attractive and fully inclusive price you can take a desk in the vibrant innovation office and a workstation in the fully serviced laboratory. As part of the package, we will provide you with full support in developing your innovative technology.

Your business will benefit from having an outstanding location situated on the Birmingham Research Park, a long-standing and successful joint venture between the University of Birmingham and Birmingham City Council. The Park is located in the heart of the Edgbaston Medical Quarter, a thriving cluster of medical and biomedical activity situated around the Queen Elizabeth Hospital and the University of Birmingham’s College of Medical and Dental Sciences The Edgbaston Medical Quarter is home to 64% of the city’s healthcare economy including 180 medical organisations, 44 GP clinics and routine care facilities and 80 hospitals and specialist care centres BIOHUB FACILITIES • 4,500 sqft fully serviced biomedical laboratory • Tissue Culture Lab • Category 2 microbiology lab • Access to general consumables • On-site Laboratory Managers to provide users with on-going support, training and advice • Open plan innovation office with hot desking and free internet access • Central reception and switchboard • Access to a variety of meeting and conference room facilities • Free car parking

An artist impression of the new Biomedical Innovation Hub at the University of Birmingham

USE OF LABORATORY EQUIPMENT INCLUDING: • Deionised /RO water supply • Weighing balances • Fume cabinets / laminar flow hoods • Ph meters • Microscopes • Incubators • Microplate Readers & Washers • Stirrers / Mixers • Autoclave and glass wash facilities • PCR Thermocycler • Centrifuges • Spectrophotometer • Chromatography System • Freeze Dryer BUSINESS SUPPORT • Free business advice and networking through the BizzInn • Access to finance, grants, loans, investors and other business support organisations • Further access to a wide range of support and advice from professional advisors and trade/ cluster associations, e.g. in intellectual property, legal, finance • Joint exhibition and presentation area – A place

07

to ‘showcase’ research, products and services, and both informal and formal presentations • Networking events and free lunchtime seminars.

In addition, tenants will be able to obtain access to the wider resources available through the University and UHB’s flagship Queen Elizabeth Hospital, on its doorstep.

The Birmingham Biomedical Innovation Hub is part funded by the European Regional Development Fund (ERDF)

For further information contact, Tim Yates, Marketing and Communications Manager, Business Engagement, University of Birmingham T: 0121 414 8635 E:t.yates.1@bham.ac.uk

BUSINESS QUARTER | SPRING 14

THE BIG ISSUES Naturally, the companies which export so successfully will need to build factories in their biggest markets. Crucially, however, the benefits of this expansion will also be felt at home.

How can we spread this success more widely?

First, we must help more businesses invest in Britain for the long term. We are beginning to do this with the UK Business Bank.

However, compared to our competitors our help is insignificant: less than 1% of the assets of the German KfW [the German government-owned development bank]. It is no wonder that German investment in both research and development (R&D) and fixed capital is far higher than ours. The Business Bank must be greatly expanded.

We must help businesses invest in Britain. We are beginning to do this with the UK Business Bank Secondly, we must encourage industry sectors to work together to identify the scientific challenges that will shape global markets, and fund the R&D that will solve them.

The UK Automotive Council shows how this can work, developing research road maps and co-ordinating investment in areas such as battery technology.

This is especially vital in building our supply chain, so that the success of a single company also supports broader growth.

Next, we must increase investment in workforce training and skills. The best people to identify the skills needed in the economy are businesses and workers themselves, not government. I welcome the approach of Vince Cable in encouraging apprenticeships and employer-led skills training.

We have a university technical college at Warwick because I was asked to set it up.

Within a year, we had 200 students joining

BUSINESS QUARTER | SPRING 14

SPRING 14

us, long before it had even started.

However, this must not be a free lunch for businesses. The quid pro quo must be greater business funding for skills training. A return to the training levy system would be supported in many sectors, as it would remove free riders.

Finally, if you want to attract investment, do not get in the way of businesses hiring talented people. The current visa policy is, if not causing a problem, creating a sentiment that Britain does not welcome talent. If we want to be competitive, we must encourage

the best and brightest to come to Britain.

British business has invested in the automotive sector to create innovative products, skilled people and efficient processes. That sector was in the dumps five years ago but, as a result of that investment, it is succeeding in the global market.

Our challenge is to increase the number of industries where this is happening and to spread growth down the supply chain.

This will take time and it is a task for many governments, not just the current one, but the prize is surely worth the effort. n

>> Jaguar sales accelerate Car giant Jaguar Land Rover (JLR) sold more than 425,000 vehicles in 2013, its best ever global performance over a full year.

Surging sales from the West Midlands manufacturer included 348,338 Land Rovers, up 15%, and 76,668 Jaguars, up 42% and now the fastest growing brand in Germany, India and the USA. JLR, owned by Indian conglomerate Tata, has its main production factories at Castle Bromwich, Birmingham and Solihull. Its models have received more than 195 international awards, with the Jaguar F-TYPE the most decorated.

Dr Ralf Speth, JLR chief executive, said: “2013 has proven to be a very positive year thanks to continuing strong demand for vehicles across the range.

“Our unrelenting focus on design, technology, innovation and quality has seen JLR reach global consumers in more markets than ever before thanks to its most desirable product line-up, enriched by the Jaguar F-TYPE and all-new Range Rover Sport.”

The results come as JLR becomes the first British car maker to plan a factory in Brazil, with a new agreement signed in December to build a plant in Rio de Janeiro state.

>> Dunlop move branded ‘disgraceful’ Surging sales at JLR have caused tyre manufacturer Dunlop Motorsport to announce the closure of its Birmingham factory as it switches production to France and Germany.

The move, which will directly axe 241 jobs, comes as the American-owned company’s lease ends on its Erdington base, after it was bought by JLR for its own expansion.

Sanjay Khanna, managing director of the Dunlop brand in Europe, said it wanted to remain at its existing site but this had not proved possible. Critics say Dunlop has made no real attempts to relocate locally.

Jack Dromey, Labour MP for Erdington, said: “Dunlop is guilty of disgraceful behaviour.

It cannot be right that a decision is made 3,600 miles away in Ohio to end 125 years of manufacturing history, when Dunlop could move but three miles and stay in Birmingham.”

Sir Albert Bore, Labour leader of Birmingham City Council, said the decision was “bitterly disappointing”, especially as several alternative sites had been offered at the Advanced Manufacturing Hub in Aston, The Hub at Witton, and Prologis Park in Minworth.

JLR takes over the site this autumn, which means tyre production ends before the summer.

Dunlop continues to operate a truck tyre retreading facility in Wolverhampton, employing 700.

08

SPRING 14

COMPANY VIEWPOINT

Turkish delight Today, Turkey is one of the most attractive investment destinations for foreign investors. EY’s Transaction Support Partner in the Midlands, John Houlden looks at how the country is providing international businesses with significant growth prospects Today, Turkey is one of the most attractive investment destinations for foreign investors. EY’s Transaction Support Partner in the Midlands, John Houlden looks at how the country is providing international businesses with significant growth prospects.

In recent years, Turkey has emerged as a profitable investment location and is standing out as a country with a robust growth story that is propelling a vibrant M&A market. The number of FDI projects in Turkey have more than doubled from 40 in 2007 to 95 in 2012, according to EY’s Turkey Attractiveness Survey. Additionally, 2012 was a very active year for M&A. EY figures reveal there were 315 transactions in Turkey, with a combined disclosed deal value of US$23b.

Factoring in undisclosed deals, EY estimates around US$30b of M&A activity, which is a postfinancial crisis-era record.

Turkey’s strategic location at the crossroads of Europe, Asia and the Middle East, solid economic growth and large domestic market has made a compelling case for investment. These strengths are attracting a number of investors, who remain confident about Turkey’s future. Indeed, over 70% of the respondents to EY’s 2013 Turkey Attractiveness Survey felt that the country’s attractiveness for investment had either improved or significantly improved.

Despite recent political uncertainty and a slowdown in growth (it is expected to be 3.9% at the end of 2013 according to the October 2013 edition of EY’s Rapid Growth Markets Forecast), the numbers are still robust and corporate confidence is on the up. Historically, Turkey has been reliant on the developed economies for a significant portion of its trade and investment. However, Turkey is now looking to do more business with other parts of the world, including the Middle East, Africa and Asia. This shift in focus and capital

John Houlden EY’s transaction support partner in the Midlands

flow will accelerate the investment and growth of Turkey. There’s also continuing interest among FS players not yet actively investing in Turkey to connect with Turkish banks, allowing both sides to access new clients and new markets. This presents an opportunity for banks to grow in the Turkish market, as well as, create synergies with other groups.

However, Turkey’s investment profile goes far beyond FS. Impressive growth in domestic consumption is a pull for large retailers. Over 200 shopping malls have been built in Turkey in the last decade alone and structural changes have added to the attractiveness of the retail sector. Numerous corporates have taken a keen interest in how the Turkish economy and business environment are developing.

On top of these positive factors, Turkey’s large and cost-competitive labour force is making it appealing as a manufacturing destination.

09

According to EY’s 2013 Turkey Attractiveness Survey, the manufacturing sector accounted for over a third (34.4%) of the total projects with FDI between 2007 and 2012 – second only to sales and marketing. So it seems the world has realised that the concept of emerging markets is not limited to the four large BRIC economies – Brazil, Russia, India and China. Turkey has all the fundamental economic characteristics to lead the next wave of rapid-growth markets.

As multinational and SMEs step up their commitment to adapt new business models in these markets, countries will become more competitive and garner foreign investment.

This calls for consideration of both risks and opportunities for business leaders. They must take a deeper view of the forces at play in various markets and choose the best location for investment. Turkey’s strong economic fundamentals offer investors a strong risk-reward ratio. However, dynamics differ with the size and type of investment so it is important for companies to carefully assess risk factors before establishing a presence in any country.

EY is dedicated to helping its clients identify and capitalise on business opportunities, and exploring how best to exploit these opportunities into new markets.

Contact us for further insights, join the debate at www.ey.com/growingbeyond or contact John Houlden on 0121 535 2309.

BUSINESS QUARTER | SPRING 14

NEWS

SPRING 14

Components manufacturer sets sights on Europe and beyond, bridal shop says ‘I do’ to relocation, sales triumph for motorcyle makers, Olympic medalist’s Law Society date, theme park seeks seasonal staff >> Top of the hots Birmingham has been named as the UK’s most entrepreneurial region outside of the capital and a ‘start up hotspot’, with more companies starting up here than any other UK city outside of London.

Start up Britain drew on last year’s Companies House data to assess where new companies were starting across the UK. Birmingham led the table outside of London with 16,281 companies registered. This compared with Manchester, who in second place, saw 11,765 start ups and Glasgow who saw 8,085.

Neil Rami, chief executive of Marketing Birmingham, which operates Business Birmingham, the inward investment agency for the area, said: “It is our innovative talent, ‘can do’ mentality, tailored support schemes and the fervent backing of our local business community, which combined with our proximity to the capital and affordability, make Birmingham a start up hotspot.”

>> Centre leads to new jobs An advanced engineering centre opened by a Midland manufacturer is to create 25 new jobs.

RDM Group aims to hit £25m sales after a £400,000 investment in a 20,000 sq ft plant on the Bilton Industrial Estate, Coventry.

The firm aims to make new products after buying two modern CNC machines, three injection moulding machines, a three-axis router, a laser engraver, and the latest CAD/CAM software.

Graham Keene, finance director at RDM, said: “We are expecting sales to rise from £6 million to £10 million in 2014, with a target of £25 million by 2018. Automotive is our main area, but we’re also looking to work in aerospace, marine and specialist trim.”

BUSINESS QUARTER | SPRING 14

Richard Fray, left, and Gwain Paterson

>> Manufacturer aims to expand into Europe and USA A West Midlands manufacturer has secured new bank finance to support its continued expansion.

Birmingham-based Thermoseal Group, a supplier of components for use in the construction of double-glazed windows, will be using asset finance to purchase additional premises, add production lines and expand its overall manufacturing capacity.

Established in 1979, the business now has a 25% market share in the UK and has appointed an export manager in Germany to grow sales across Europe, with new sales also coming in from the USA. Thermoseal, whose turnover has grown 10%

>> Shop says ‘I do’ to move A family run bridal shop has moved to new premises in Birmingham city centre.

Established in March 2011, the Isaac Charles Bridal House outgrew its original base in Great Barr after sales doubled year-on-year.

Owner Ruth Rawson and Jo Rosewarne,

10

year-on-year to £22m has taken on 29 staff, growing its total workforce to 104.

Gwain Paterson, managing director, said: “Our aim now is to look at growing our export markets where we are already seeing some early signs of success.”

Richard Fray, relationship director at Barclays, said: “Thermoseal Group has gone from strength to strength over the years. This is down to their ability to spot opportunities and to continually research and develop their product offering. This latest funding will enable the business to expand its production lines to meet growing demand for its products and implement its export strategy.”

who are sisters, opened the new store in The Burlington Arcade, New Street, in January.

Ruth, who named the business after her threeyear-old son, said: “We’re overwhelmed with its success to date. We have ambitious growth plans and have future store ambitions in Manchester, Leeds and other major UK cities.”

www.dbslaw.co.uk

SPRING 14

COMPANY PROFILE

8 steps to successful succession It is estimated that £1trn will pass down from one generation to the next over the next 20 years. Many families will transfer their wealth successfully – yet there will be many others who will struggle to meet this aim It is estimated that £1trn will pass down from one generation to the next over the next 20 years. Many families will transfer their wealth successfully – yet there will be many others who will struggle to meet this aim.

Balancing the family’s immediate needs and interests often conflict with making sure that the family’s wealth is there for subsequent generations to benefit from. Add in human factors such as perceptions, temperament and ability, and it is easy to see why finding the right balance can be a complex and daunting task. It also explains why discussing wealth has been a taboo subject for many families for so long.

It is understandable why many families don’t want to talk about passing down wealth. It is a complex area since there is no blueprint and there are a number of factors to consider.

But wealth succession is not just about the practicalities of transferring money and assets to future generations. It is also an emotive subject.

In our recent report Breaking the wealth taboo: making succession a success, we found that a third of families with a net worth of more than £5m said that they had experienced conflict when it came to succession planning.

Families are also becoming more complicated in their make-up – second and third marriages are part and parcel of family life and this means that stepchildren and step-grandchildren are increasingly being brought into the wealth succession mix.

But obstacles can be overcome and the wealth succession process, with some planning and foresight, can be a fulfilling and smooth journey.

Simply talking about it can help. We have identified an eight-step journey to help families consider how best to pass down wealth.

1. VISION To start with, you should have a clear vision for your wealth and share it with your family. The more

It is understandable why many families don’t want to talk about passing down wealth. It is a complex area since there is no blueprint and there are a number of factors to consider

Miles Plumb, Director for Birmingham

time spent thinking about this, the easier it will be to articulate and plan for.

2. PURPOSE Consider the purpose of your wealth. For most, its primary purpose is to provide a secure, comfortable and nurturing environment for your family, with access to opportunities such as education.

3. CONCERNS Only by understanding and articulating your concerns with your family can you start to protect against any potential conflict and prepare the next generation for the future.

4. FAIRNESS Most families value fair distribution of wealth highly, but quickly realise that equality is not always the fairest method and is not easy to achieve for a number of reasons.

11

5. KNOW YOURSELF Everyone has different attitudes to wealth and varying philosophical outlooks. Understand your own attitudes and you will be better able to consider the impact of these views and plan accordingly.

6. PREPARE Our research shows that if the next generation is poorly prepared for wealth transfer, they will find it hard to fulfil the responsibilities of managing matters in the future.

7. PRACTICE An important part of preparing the next generation is to gradually empower them to practise managing their family’s wealth in a gradual and controlled manner.

8. WEALTH PRESERVATION A key component of any plan is to identify and mitigate future risks. Some families have generations of experience, while others rely on advisers – there is no right answer.

For more information about becoming a Coutts client, contact Miles Plumb, Director for Birmingham on 0121 607 8486 or miles. plumb@coutts.com. Calls may be recorded.

BUSINESS QUARTER | SPRING 14

NEWS

SPRING 14

>> ICC stages summit The 30th anniversary summit of United Kingdom Science Park Association (UKSPA) is to be held at Birmingham’s International Convention Centre on 10 to 11 July.

The event will feature speeches by MP David Willetts, the minister for Universities & Science, and Phil Smith, chief executive of Cisco UK & Ireland and chair of the Technology Strategy Board.

The summit will feature a conference sponsored by intellectual property specialists Marks and Clerk, an exhibition sponsored by BEST Network, and an awards dinner hosted by Dr Michael Mosley, the face of science and medicine on ‘The One Show’. Over 800 delegates are expected.

Paul Wright, chief executive of UKSPA, said: “This event will be the biggest gathering of the professionals responsible for running the UK’s network of science parks and innovation centres.”

>> Pay freeze begins to thaw Wages are set to rise at more than half of West Midlands businesses this year, a new survey has revealed.

The Barclays Employers Survey questioned 684 UK businesses and found that 55% are planning to increase wages in 2014.

Ray O’Donoghue, managing director of Barclays in the West Midlands, said: “After an extended period of wage freezes, which have been tough for employees, it’s good to see that so many employers will be increasing wages in the coming year. This can only have a positive impact on employee morale.

“However, it will increase inflationary pressure as the year progresses. Whilst no one knows when interest rates will rise, businesses should not be complacent. It would be prudent for firms to ensure they have sufficient cash flow to absorb the increase when it comes.”

The survey also revealed that 34% of West Midlands businesses would be looking to take on apprentices in the coming year, and 33% think the Eurozone crisis is behind them.

>> Firm has US in its sights >> Rising through the ranks Warwick Business School (WBS) has risen to 25th in the world in the Financial Times’ annual ranking of full-time MBA programmes.

The Coventry-based school, which employees 386 people, retains its place in Europe’s Top 10 and is fourth in the UK behind London Business School, Oxford and Cambridge.

WBS has also risen to sixth in the world for ‘Aims Achieved’, which asks graduates the extent to which they have fulfilled their goals. It also rose eight places for ‘Placement Success’, which measures the effectiveness of a school’s careers services.

Professor Mark Taylor, Dean of Warwick Business School, said: “We aim to produce world-class, socially responsible, creative leaders and managers, and to provide a lifelong return on investment for them.”

BUSINESS QUARTER | SPRING 14

A West Midlands firm is targeting the US market after enjoying strong success with its innovative weight-controlled inventory management system.

Solihull-based Inventor-e developed SmartSource, which uses weight sensor technology to provide remote inventory information, and is already working on a £600,000 contract with engineering support services firm Babcock International.

Managing director Dean Henry said: “SmartSource allows users to track a multitude of products at point-of-use and uses cloud software to quickly restock.

“We’re in talks to open up distribution of SmartSource in the US and we’ll be creating new jobs to support the continued growth over the next year.”

12

>> Hey Pesto to new jobs!

Pesto Italian restaurants is opening a new bar and restaurant in Sutton Coldfield in late March, creating 30 jobs.

Pesto and Star Pubs & Bars have made a £550k joint investment to create the new Italian pub-restaurant at the site of the former Reddicap Tavern on Hollyfield Road.

Pesto co-owners Neil Gatt and Sara Edwards said: “We are incredibly excited introducing the people of West Midlands to our unique ‘piattini’ dining concept.”

MTC’s Dr Clive Hickman (right) welcomes Richard Bruges

>> A Productiv step forward Productiv, the automotive engineering company which specialises in low carbon technologies, has become the 60th member of the Manufacturing Technology Centre (MTC) in Coventry.

The company, based at the MIRA Technology Park in Nuneaton, now joins the Ansty Park-based MTC’s roll call of major global companies which includes Alstom, Rolls Royce, Airbus, HP, GKN and Siemens.

Productiv specialises in bridging the gap between small enterprises developing advanced low-carbon technologies and large vehicle manufacturers.

The company industrialises the technology and provides technical, production and

www.dbslaw.co.uk

SPRING 14

commercial development.

MTC chief executive Dr Clive Hickman said: “We look forward to a very fruitful relationship with Productiv, with whom we are already working closely through The Proving Factory initiative.”

Richard Bruges, co-founder and chief executive of Productiv, said: “Membership of the MTC is a logical step for a company such as ours.

We look forward to implementing the preproduction assembly trials with the MTC during early 2014.”

>> A sales triumph Midland motorcycle manufacturer Triumph sold 7,254 large capacity motorbikes in 2013, more than any other UK firm for the third year running.

Originally based in Coventry, Triumph now makes its models in Hinckley, Leicestershire.

Rick Cawley, general manager of Triumph UK, said: “Our single-minded dedication to new model development is reflected in our success in the UK, and our growing market share around the globe.

“With a diverse line-up of 24 models, we have something to suit every rider. Our dealer network is another great strength for us in the UK and we work very closely with them to ensure all aspects of our customer service continue to meet the expectations of today’s motorcyclist.”

>> Six of the best join forces Six Local Enterprise Partnerships (LEPs) in the West Midlands have joined forces to create a major investment fund worth at least £125m, expected to create or safeguard 9,000 jobs and help 400 new businesses to start up.

The Regional Investment Fund will provide a range of programmes to support growing businesses in the Black Country, Coventry & Warwickshire, Greater Birmingham & Solihull, Marches, Stoke-on-Trent & Staffordshire and

Worcestershire LEP areas. Each LEP is to receive an allocation from the European Structural and Investment Fund (ESIF) to support work in supporting businesses for 2014 and 2020.

Each will contribute money from their ESIF into a central fund worth more than £50m, enabling them to access an estimated £75m.

The £125m fund will provide access to finance programmes that may include loans for small businesses, loan guarantees, seed corn equity, growth equity, mezzanine finance and finance for innovation and low carbon businesses.

GBSLEP Chair Andy Street said: “This is excellent news for businesses across the West Midlands and will provide a wide range of funds to help small and medium-sized enterprises looking to grow and create jobs.

“By pooling our resources we will be able to make an even greater impact by leveraging in private sector investment.

“We will be able to help even more businesses with targeted support and finance.

“Although there is still significant work to be done, by reaching this agreement we have taken a huge step forward.”

>>NATEP commits to region The £40m National Aerospace Technology Programme (NATEP) has chosen the West Midlands as its base to help maintain the UK’s global position in the aerospace market.

The Coventry-based programme is designed to create or retain 1,200 jobs in the aerospace supply chain by supporting new technologies for products and manufacturing processes.

More than 30 suppliers have already applied for a share of the NATEP funding.

Five industry experts based at the University of Warwick Science Park’s Business Innovation Centre will work with a team in each of the UK’s regional aerospace alliances in delivering 100 new technologies in the sector.

Dave Dawson, programme director, said: “The programme aims to aid innovation in the UK aerospace sector to produce new technologies at a greater rate than our competitors.”

ONLINE: Read the latest news and views from the West Midlands business community every day by visiting our website: www.bq-magazine.co.uk

13

NEWS

>> Awards date for Cram Olympic medalist Steve Cram will be the guest speaker at the Birmingham Law Society Legal Awards in March.

Sports personality Cram is one of Britain’s most successful athletes, winning six gold medals at Commonwealth, European and World Championships and a silver medal at the 1984 Olympics.

A three-times world record holder, Cram was part of a trio of British-middle distance runners who dominated the track throughout the 1980s, running alongside Steve Ovett and Lord Sebastian Coe. In 1983, he won BBC Sports Personality of the year and was awarded an MBE three years later. Now the BBC’s chief athletics commentator, he has co-presented the last three Summer Olympics and is a regular contributor to BBC Radio 5 Live.

Cram will speak at the Birmingham Law Society’s annual awards ceremony, which takes place at the ICC on 20 March 2014.

>> Praise for top adviser Matthew Hansell, who heads Birminghambased private wealth sector at national law firm Mills & Reeve, has been named one of the UK’s most influential advisers.

He was included in the ‘50 Most Influential of 2014’ list published by Eprivateclient, a web site for private client practitioners.

Hansell was also named a “leading individual”

by Legal 500; and Chambers UK described >>

BUSINESS QUARTER | SPRING 14

NEWS

SPRING 14

>> Music to orchestra’s ears

him as “a truly affable adviser” and “exceptional in his field”.

Hansell advises high net worth individuals, and is believed to have the most wealthy client base of any solicitor in the Midlands; his clients are worth more than £4bn.

He said: “People say I am good at getting straight to the heart of an issue and that I provide very practical advice.”

>> Healthy profit for DCS Health and beauty brands distributor DCS has announced its best ever year with sales rising to £31m in 2013.

The news comes as 400 staff at the company, based near Stratford-upon-Avon, celebrate its 20th anniversary in 2014. And now the company plans to pass the £200 million sales milestone.

Chief executive Denys Shortt, who once represented England at hockey, said: “2014 is going to be an important year for us, and I am confident that we will grow to be a £300 million company by 2020.”

>> Theme park seeks staff Drayton Manor Theme Park has begun its annual recruitment drive for up to 150 seasonal workers for the 2014 season, which runs from 29 March to 2 November.

And the attraction, near Tamworth in Staffordshire, is trying to help people get back into work by offering flexible working hours.

The park is home to Europe’s only Thomas Land™ attraction, with more than 20 rides based on Thomas the Tank Engine in a themed area of the park, complete with its very own Fat Controller.

For older visitors wanting an adrenaline rush, the park is set to open a new thrill ride, Air Race, which will join Europe’s first stand up coaster, Shockwave, and the drop-tower Apocalypse, which was voted the UK’s scariest ride by Channel 5’s The Gadget Show.

BUSINESS QUARTER | SPRING 14

>> Building a future A West Midlands energy-saving specialist has launched a major boost for construction skills with its new apprenticeship programme.

SERS Energy Solutions Group, based in Cannock, unveiled a new four-year apprenticeship programme which will specialise in delivering training and assessment for a wide range of construction skills, but principally solid wall insulation and renewable technologies.

The first 24 apprentices on the programme have been recruited with the help of careers office, Job Centre Plus and the Construction Industry Training Board, and are starting courses covering electrical, plastering, plumbing and wall insulation.

SERS human resources director Kevin Rouane said: “The skills shortage has been an issue for construction for many years. This is a big investment for us as a medium-sized player with around 170 employees, but we feel it will secure our future and prove its worth both to SERS and the wider industry very quickly.”

14

The City of Birmingham Symphony Orchestra (CBSO) has given exports a musical twist after its recent visit to Japan was voted the country’s best classical concert of the year.

The CBSO’s Tokyo performance with Andris Nelsons received the accolade from a 44-strong panel of Japan’s leading music critics and journalists.

Simon Fairclough, the CBSO’s director of development, said: “We received more votes than Berlin Philharmonic conducted by Sir Simon Rattle, the Vienna Philharmonic conducted by Christian Thielemann and the London Symphony Orchestra conducted by Bernard Haitink.”

In a note to loyal audiences in the West Midlands, Fairclough added: “Thank you so much for your support, which enables us to maintain our position among the greatest orchestras of the world.”

>> Ladies to get media tips LadiesFirst, a new women’s support organisation, attracted 100 Coventry and Warwickshire businesswomen to their inaugural event that featured business writer Vanessa Vallely.

Now the organisation, created by lifelong friends Lisa Kennedy and Julie Richardson, will be giving delegates an insight into how to manage relations with the media.

LadiesFirst, sponsored by Coventry, Leamington and Nuneaton law firm Alsters Kelley, is holding its second event on Wednesday 26 February called ‘Can You Hack it with the Media?’

Taking place at Kenilworth Golf Club, it will feature a half-day workshop by BQ editor Steve Dyson, who will discuss how a business can get the best out of the media in 2014.

Julie Richardson said: “We received so many comments that LadiesFirst was filling a huge gap in business support for women in business, including so many practical tips.”

www.dbslaw.co.uk

Your business is our business.

Your interests are our concern.

Your business and personal interests are inextricably linked. Fortunately we look after both.

Quality, integrity and trust underpins our delivery of bespoke services to our entrepreneurial clients. At Grant Thornton, our team of specialists recognise the importance of understanding the objectives and personal drivers of our clients and their business. No matter what size your business is, we have a team ready to work with you to realise the full potential of your business. We provide viable solutions and advice based on real experience to add value to our clients business, to help them grow.

For more information, contact: Dan Hartland Partner Entrepreneurial Private Client T 0121 232 5161 E daniel.hartland@uk.gt.com

Sue A Knight Director Entrepreneurial Private Client T 0121 232 5167 E sue.a.knight@uk.gt.com

grant-thornton.co.uk Š 2014 Grant Thornton UK LLP. All rights reserved. Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership.

Services are delivered by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.

GIVING SOMETHING BACK

SPRING 14

>> Aiding the unemployed Staff at IHN Insurance Brokers in Stourbridge recently hosted a group from the Fairbridge programme run by The Prince’s Trust, meeting some of the unemployed young people that it helps to access education, employment or training.

IHN, which has supported The Prince’s Trust for eight years and has helped raise more than £100,000 in donations, will be holding a golf day in July.

>> Staff show they’re a ground force to be reckoned with Staff from the Birmingham office of property consultancy Colliers International renovated a garden for a family with two autistic children in Stratford-upon-Avon.

The 19 volunteers spent two days flattening uneven ground, removing debris, building a gate, making some outdoor artwork and laying a lawn and play area.

The makeover was helped by a £1,000 donation from Stratford Town Trust, the manpower and £500 from Colliers International, and the loan of a digger and drivers from Kenilworth contractors Rogers Utilities.

>> Jill’s gift from the heart Accountant Jill Turner-Smith has raised nearly £900 for the British Heart Foundation. Jill, a business solutions supervisor at the Midlands office of national audit, tax and advisory firm Crowe Clark Whitehill, ran the Jersey Marathon in 4hrs 19min, inspired by her dad who recently had major heart surgery.

>> Golf club’s above par effort Redditch Golf Club raised £17,798 for the Help for Heroes charity during the club’s centenary year in 2013. Centenary captain Tom Sheldon said the final figure included money raised during the Captain’s Charity Golf Day, an auction of prizes, competitions, tombolas, donations and raffles throughout the year.

>> Firm helps leukaemia boy Birmingham glazing company Finesse Windows has donated and installed doors and windows worth over £12,000 to support a local family whose son is battling Leukaemia.

The company, based on Melchett Road,

BUSINESS QUARTER | SPRING 14

Kings Norton, acted after hearing about seven-year-old Callum Hearty, who also has Asperger Syndrome, Demand Avoidance and Speech Apraxia.

Russell Bridge, Finesse’s managing director, said: “As a local family firm, we understand the importance of community and decided to install energy-efficient windows and doors to keep the house warm and energy bills down.”

>> Peter’s top of the crops Long-haired Peter Green, of Birmingham law firm The Wilkes Partnership, agreed to have his locks chopped off in return for £1,300 for Birmingham Children’s Hospital. Peter, part of the office services team at Wilkes, had grown his hair long for a year, and allowed his colleague Tamara Chambers to give him a short, neat crop at the firm’s 2013 Christmas party.

>> £2,500 to the rescue Midlands Air Ambulance was the charity chosen to receive £2,500 by Stourbridge corporate recovery specialists Butcher Woods, the winners of an annual charity golf day.

Organised by chartered surveyors and auctioneers CP Bigwood, the 2013 golf

16

day involved 21 teams and was held at Edgbaston Golf Club, Birmingham. More than £40,000 has now been raised and distributed to West Midlands charities in the event’s 11 year history.

>> Fashionable fundraisers A fashion show at Solihull’s John Lewis store organised by The Ronnie Bowker Foundation raised almost £1,000.

Mr Bowker, the late Ernst & Young regional managing partner, was well-known for his involvement in the arts. The fund is close to its £100,000 target and has made donations to Digbeth-based Tru Street dance group and the Marie Curie Big Build appeal for a new hospice in Solihull.

>> Warm gesture Pertemps People Development Group is celebrating a decade of its ‘Give As You Earn’ payroll giving scheme with a nationwide coat amnesty.

Staff at the Birmingham-based employment and training specialists have already donated dozens of warm coats for the homeless across the country. Fifty centre champions are collecting warm clothing no longer worn by employees, friends and families.

MOVERS AND SHAKERS

SPRING 14

>> ‘Go-to’ man goes to CBRE Top property consultant Gary Cardin has joined commercial real estate giant CBRE as senior director and head of its Midlands planning team.

Gary, previously partner in charge at Deloitte Real Estate in Birmingham, advises developers and local authorities across the region on regeneration, town centre development and commercial planning.

He has worked on prominent schemes including Paradise Circus, Mailbox, the southern precinct in Coventry City Centre, the redevelopment of the Grand Hotel in Birmingham, and the redevelopment of New Street Station.

Martin Guest, managing director of the Birmingham office of CBRE, said: “Gary is the go-to planner in the Midlands. It’s a massive coup for CBRE to get him on board.”

from left, Mark Elder, Fiona Hayles, Hannah Tripkovic, Rizwan Darr, Rebekah Finch, Ailsa Anderson, Victoria Savage

>> Newcomers boost law firm’s finance litigation team The Birmingham office of national law firm Irwin Mitchell has boosted its finance litigation team with three new appointments.

Fiona Hayles joins as a senior associate from SGH Martineau, specialising in finance litigation, Rizwan Darr joins from Shoosmiths, specialising in commercial dispute resolution, legal executive Victoria Savage joins from Wragge & Co, with 10 years of finance litigation experience. All three will be working in the existing finance litigation team headed by Mark Elder.

This latest announcement follows on from Irwin Mitchell’s recent appointment of corporate partner, Nick Dawson, and senior corporate associate, Rob Laugharne.

>> Chris takes on MD role Chris Woolridge has become managing director of Willenhall-based Wedge Group Galvanizing.

The move sees Chris’ father, current chairman and chief executive Jeremy Woolridge, step into the position of executive chairman.

Chris, who has spent 11 years with the Black Country family firm, said: “It is a real privilege to have this opportunity. I’m very lucky to have a strong, well-established board as well as the continued guidance and support of my father.”

>> Ian to aid expansion Ian Smallman has joined CP Bigwood as a partner in charge of property operations to help the company’s ongoing expansion.

Ian joins after 10 years at Mainstay Residential.

Before that he was an associate at Bruton Knowles, and has also worked for FPD Savills.

Brett Williams, partner in the residential service charge department, said: “Ian has a wealth of experience and will be a major asset to the business.”

CP Bigwood has offices in Birmingham, London, Stratford-upon-Avon, Henley-inArden, Shepshed, and Eastleigh in Hampshire.

BUSINESS QUARTER | SPRING 14

>> Lodders lands top lawyer Mark Lewis, one of Warwickshire’s best known corporate lawyers, has joined Lodders Solicitors in Stratford-upon-Avon.

Mark spent 20 years with Wright Hassall and before 1994 was with Osborne Clarke in Bristol having qualified with DMH Stallard in the South East.

Victor Matts, head of commercial law at Lodders, said: “Mark’s decision to join Lodders reflects on our growing reputation.”

>> Surveyor’s new job Jim Whiteman has joined Bruton Knowles in Birmingham as a senior building surveyor. He was previously an owning partner at Christopher Thomas Architects & Chartered Building Surveyors, and also worked at Gerald Eve LLP for 12 years.

>> New recovery team head James Martin, a prominent corporate recovery expert, has joined national audit, tax and advisory firm Crowe Clark Whitehill.

A former regional chairman of R3, the Association of Business Recovery Professionals,

18

he has been recruited to run the Black Country practice of CCW Recovery Solutions.

It specialises in administrations, company voluntary arrangements, individual voluntary arrangements, liquidations, bankruptcies and advising businesses facing financial difficulties.

>> All change at Santander Santander Corporate & Commercial has appointed two new business development directors in the West Midlands. Rav Bagri joins the Coventry & Warwickshire corporate banking centre from the Nationwide Building Society, and Tom Addyman joins the Birmingham centre from Barclays.

>> VAT expert joins Mazars James Hurst has become the latest recruit to join international accountancy firm Mazars’ Midlands team.

He has joined the Birmingham office as a director responsible for VAT and indirect taxes throughout Mazars’ central region.

He was formerly with Grant Thornton in Birmingham and brings 20 years’ experience in VAT and indirect taxes.

www.suttonsandrobertsons.com

Prevent crime as opposed to just recording it!

Netwatch has successfully prevented over 40,000 crimes in progress to date.

No upfront capital outlay!

Pay one fixed daily fee for a fully Managed Security Service including equipment, install and monitoring.

A lifetime guarantee & warranty.

All maintenance and the latest technology updates as they become available.

Remote monitoring of your property.

Intrusions are visually verified, personalised audio warnings are issued, authorities are called where appropriate.

No need for drastic security measures

Complete peace of mind in system selection.

Find out more about the Netwatch System today... www.netwatchsystem.co.uk t: 0800 917 9909 e: admin@netwatchsystem.co.uk

AVIATION NEWS

SPRING 14

>> Take off for airport’s £40m runway extension Development comes as a welcome boost after proposals for a second runway that could have opened up new markets for the region’s firms were shelved The first part of the last section of Birmingham Airport’s £40m runway extension was laid

by Danny Alexander, Chief Secretary to the Treasury and chair of the Government’s Infrastructure Committee.

The 400 metre extension is one of the country’s top 40 infrastructure projects, and will enable long-haul direct flights to destinations currently out of reach, such as Brazil, China, and the west coast of the USA. The airport said the runway is part of a £100m investment programme that includes a new combined terminal, a new maintenance hangar for larger aircraft and a modern air traffic control tower, all aimed at quadrupling the airport’s annual number of passengers to 36 million.

Alexander said: “Rebuilding our nation’s infrastructure is crucial to the economic recovery. The extended runway, together with other developments, is great news for passengers, businesses and the wider region.

The new Birmingham Airport will be critical to growth in the Midlands and will contribute to rebalancing the economy away from the South East.”

The high profile visit in January was a boost for the airport after disappointing interim findings from the Airports Commission in December, which shunned Birmingham Airport’s bigger expansion proposals for a second runway.

Headed by Sir Howard Davies, the commission instead shortlisted plans for a third runway at Heathrow and a second runway at Gatwick airport – although it did add that Stansted and Birmingham might become potential options by 2050.

Davies’ report has been criticised by many West Midlands business leaders including Jerry Blackett, chief executive of the Greater Birmingham Chambers of Commerce, who said Birmingham had been “overlooked”.

In a letter to the House of Commons Transport

BUSINESS QUARTER | SPRING 14

Select Committee in February, Blackett said demand for products from West Midlands manufacturers was growing in Asia and the Middle East and added: “We need to ensure that this growth story is not stifled by a lack of access to emerging markets.

“We just can’t sit idly by and let this report embed the status quo.

“What kind of a service is it that forces all of us to go to London before we can fly to these growth countries?”

But a spokesperson for the Airports Commission said its interim proposals were “those with the greatest potential to meet the UK’s capacity needs” and that Birmingham had “an important role to play attracting surplus demand before any new runway is built”.

The spokesman added: “Birmingham may well be an option for a second additional runway in the 2040s, which the commission believes is likely to be needed.”

>> Airport gets two new pubs Pub giant Mitchells & Butlers has announced it is opening two All Bar One venues at Birmingham Airport in 2014. One will be located in the South departure lounge, opening in April, and one in the North landside area, planned for June.

20

SPRING 14

AVIATION NEWS

>> Breaking the nine million barrier Passenger numbers at Birmingham Airport reached over nine million last year for the first time since 2009.

A total of 9,119,709 passengers chose to fly through Birmingham Airport in 2013, a 2.3% increase on 2012. The nine million milestone was achieved after the airport enjoyed a busy December with 574,854 passengers, 8% up on December 2012.

Airport chief executive Paul Kehoe said: “2013 has been a fantastic year for us in many ways. We are now looking to build on this success in 2014, which will see the opening of our longer runway and with it, the capability to serve more long haul destinations than ever before.”

Neil Rami, chief executive of Marketing Birmingham, added: “The Airport’s strong 2013 performance is testament to the ongoing activity to promote the Greater Birmingham and Black Country region as a popular visitor destination.”

Meanwhile, Birmingham Airport also recorded the best overall flight punctuality of any UK airport in the third quarter of 2013, the busiest period of the year, with 88% of scheduled flights and 90% of charter services operating on-time.

The Civil Aviation Authority’s quarterly punctuality report highlighted Birmingham as having the biggest increase in flight on-time performance out of any UK airport.

Kehoe added: “This demonstrates the benefit of an efficient and convenient airport.”

>> All routes lead to jobs Flybe has announced seven new European routes from Birmingham Airport for 2014, creating 50 new jobs.

The new direct services include: daily flights to Cologne, Germany; six times a week to Florence, Italy, and Toulouse, France; five times a week to Alicante, Spain; four times a week to Bordeaux, France, Palma Mallorca, Spain, and Porto, Portugal.

The new flights start on 10 April to Alicante, Cologne, Florence and Porto, and from 13 May for Bordeaux, Palma and Toulouse. Flybe is adding three 88-seat Embraer 175 jets to the airport, making Birmingham its biggest regional base with 12 aircraft.

Paul Simmons, Flybe’s chief commercial officer said: “This is not only a vote of confidence in the local economy but also in the strong relationship we have built with the Birmingham Airport team.”

William Pearson, Birmingham Airport’s aviation development director, added: “Not only will this growth make Birmingham Airport Flybe’s biggest base, it will also become our largest carrier, flying up to 400,000 extra passengers a year and serving nearly two million travellers in total.”

One way fares on the new services cost from £34.99 including taxes and charges, via www.flybe.com

>> In it for the long haul Two new long haul routes to New York and Dhaka will fly from Birmingham Airport from spring 2014, taking advantage of the runway extension. The twice weekly scheduled flights will be operated by Biman Bangladesh Airlines, Bangladesh’s National Flag carrier, using a Boeing 777 aircraft.

Kevin Steele, of Biman Bangladesh Airlines, said: “Birmingham’s strong Bangladeshi community, new transit and terminal facilities, and its extended runway capability were all key factors that attracted us. We recognise opportunities to build business and cultural links between Dhaka, Birmingham and New York.”

Meanwhile, Aegean Airlines will launch a twice weekly Athens service from Birmingham from 10 June, operating each Tuesday and Saturday. The flights will use 168-seat Airbus A320 aircraft.

21

>> First class MAEL facility Up to 300 engineering jobs are being created at a new maintenance hangar that has opened at Birmingham Airport.

Monarch Aircraft Engineering Limited’s (MAEL) 110,000 sq ft hangar can accommodate the Boeing 787 Dreamliner, the Boeing 777, 747 and Airbus A350.

The 2.5 acre building can accommodate two Boeing 777-300ER aircraft or 10 narrow-body aircraft at the same time.

The facility, which is immediately creating 150 new jobs, has the potential to add a further 150 maintenance posts.

MAEL’s managing director Mick Adams said: “This is a real milestone in the growth and development of MAEL. The hangar, together with our existing facilities at London, Luton and Manchester, further secures our ability to provide both existing and new customers with a first class maintenance, repair and overhaul service.”

Iain Rawlinson, executive chairman of The Monarch Group, added: “This clearly demonstrates our commitment to the region and is not only generating jobs, but will also attract more international and domestic customers, benefitting both the region and the UK as a whole.”

Paul Kehoe, chief executive of Birmingham Airport said: “We look forward to welcoming the arrival of new aircraft and airlines flying into Birmingham specifically to benefit from this world class facility.”

BUSINESS QUARTER | SPRING 14

COMPANY PROFILE

SPRING 14

Profit extraction for new businesses Andrew Whiting of Andrew Whiting Wealth Consultancy LLP a Senior Partner Practice of St. James’s Place Wealth Management continues his series of articles which aims to offer help and guidance to business owners and those who run businesses As most shareholding directors will be well aware, irrespective of prevailing Corporation Tax rates, personal Income Tax rates and National Insurance (NI) rates, the most tax-efficient way to take income from a company is via dividends. However, dividends can only be paid out of profits; meaning that for a recently established business they will not be an option. The question is what are the alternatives?

DIVIDENDS Much has and will continue to be written about the attraction of dividends as a method of extracting profits for directors and shareholders.

There are however a number of situations in which paying dividends is simply not an option: • For new companies • For companies without retained profit • For companies with accumulated losses • Where there is a desire to make a distribution of profits favouring one shareholder over, or more than, another.

SALARY OR BONUSES The most clear and simple alternative to adopting a dividend strategy is the provision of a salary and/or bonus. However this comes with personal Income Tax and NI for both the individual recipient and the company, payable through the PAYE system.

BENEFITS IN KIND Although a package of benefits in kind will broadly result in the same liability to Income Tax, it can result in a delay of the payment to HMRC and, more significantly, can reduce NI. As stated above, tax on salary or bonuses is paid under

Andrew Whiting the PAYE system, ordinarily on a month-by-month basis. The tax liability in respect of benefits in kind, initially at least, is not assessed monthly and can be delayed for up to 12 months. The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.

IMPORTANT NOTE In order to secure the advantages outlined, it will be necessary for the company to contract directly with the supplier in respect of the goods or services provided. For example, where the company is meeting utility bills, the invoice should be addressed to the company and not the individual. Further, HMRC will adjust the recipient’s PAYE codes so that the tax on benefits in kind is ultimately collected via their salary. This, of course, will take a number of years by which time, hopefully, XYZ Ltd will have sufficient ongoing or retained profits to move from benefits in kind to dividends.

EXAMPLE Dave and Julia start XYZ Ltd in April 2013.

They elect to pay themselves a modest salary of £20,000 per annum each plus a tailored benefits in kind package including covering the cost of a variety of household bills and school fees. If we assume the total value of this package was £20,000 a year for each of them, both Dave and Julia would be obliged to declare their benefits in kind to HMRC when they submit their 2013/14 Self Assessment returns. Importantly the £4,000 each has due (£20,000 x 20%) will not be payable until 31 January 2015. The NI advantages of benefits in kind come in two forms. Firstly, the absence of employee’s NI means Dave and Julia would each save up to £2,400 (£20,000 x 12%) compared to salary or bonus. Secondly, NI on the benefits in kind in respect of the employer liability is deferred. So, if XYZ Ltd pays a benefit in May 2013, any resulting employer NI wouldn’t be due for payment until 19 June 2014

St. James’s Place House, Central Boulevard, Blythe Valley Park, Shirley, Solihull, B90 8AR Tel: 0121 215 0926 E: andrew.whiting@sjpp.co.uk W: www.andrewwhiting.co.uk

The Partner Practice represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website at www.sjp.co.uk/products.

The ‘St. James’s Place Partnership’ and the title ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.

BUSINESS QUARTER | SPRING 14

22

SPRING 14

COMPANY PROFILE

E-BRIEFING SERVICE Keep up to date with markets and legislation. Register for any of the Andrew Whiting Wealth Consultancy E-Briefings listed below at www.andrewwhiting.co.uk

MONTHLY CLIENT BRIEFING: Our monthly Client Briefing will provide you with an insight into the key issues affecting your financial wellbeing.

DAILY INVESTMENT MARKET UPDATE: This market briefing provides an overview of the previous day’s trading, key headlines and summary market data.

MONTHLY INVESTMENT MARKET UPDATE: In this monthly investment report, we look at the key financial and economic issues from the previous month, including the UK and global stock markets.

MONTHLY FUND MANAGER REPORT: This report provides a monthly fund commentary from a selection of our fund managers.

MONTHLY INVESTMENT REVIEW: The Investment Review publishes monthly investment performance statistics and fund allocation charts.

PERSPECTIVE – FUND MANAGER INSIGHTS: Our ‘Perspective’ communications deliver the latest thoughts and opinions of our fund managers and catches up with new SJPTV interviews and podcasts.

ECONOMIC UPDATES: These updates will keep you informed in the event of key global events.

WEALTH MANAGEMENT BULLETINS: These briefings will provide you with key insights into the world of: Pensions Tax and estate planning

‘ENTERPRISE’ NEWSLETTER: Our ‘Enterprise’ newsletter will be of interest to business owners and those who run businesses.

‘GENERATION’ NEWSLETTER: Our ‘Generation’ newsletter looks at issues faced by the older population, and will be of interest to retired clients or people who care for elderly relatives.

TAX YEAR END PLANNING: This briefing note outlines the areas which should be considered as part of your tax year end review.

THE INVESTOR: Our quarterly client magazine, The Investor, is now available to view online and features topical news, analysis and interviews on a range of wealth management issues.

23

BUSINESS QUARTER | SPRING 14

AS I SEE IT

SPRING 14

post boy to boss Like a scene from US period TV drama Mad Men, Brian Barrett left school aged 15 and went straight into advertising. 50 years later, and now chairman of Wyatt International, he reflects on his career 1963: that was the year that was. No doubt we all remember some of the momentous events that occurred that year, from the assassination of President John F Kennedy to the first ever episode of Doctor Who. It was also a comparably insignificant but nevertheless important milestone for me personally. It was the year that I reached 15 at Bierton Secondary Modern School in South Yardley, Birmingham, and had to decide between going on to further education or leaving to find a job.

I decided on the latter and so, helped by the youth employment office,

BUSINESS QUARTER | SPRING 14

24

I obtained my one and only job interview with BBP Advertising – a company that was, at the time, one of the top agencies in Birmingham, needing someone to start work at the very bottom of the ladder as post boy.

Advertising had been my first career choice, even since primary school so, with great enthusiasm, I attended the interview and landed my very first job in the advertising industry.

The pay was awful, and the hours turned out to be long and hard, starting at 9am often through to 8pm and later. And in those days the working week included a half day on Saturday. But what a great training ground.

The job meant I became head ‘go-for’ and packer for all of the agency’s functions, connecting me to all departments from photographic to the art studio, and from the production department to media buyers, a fledgling PR unit and all the account handlers.

It also enabled me to meet and talk to printers, publishing houses, newspaper composition

SPRING 14

rooms, television studios, film producers, block makers and, occasionally, even clients.

The list was very diverse – retailers to holiday companies, industrial giants to global multi-nationals. The job may have been the most basic, but the learning curve was tremendous.

However, like most young people, I needed more money and greater opportunity. I was, after all, heading for sixteen at this time.

And although (believe it or not) fetching the Letraset, the designer’s Gouache and packing the printing blocks was quite interesting, life had to move on. So, I had to think of a way to make myself more useful and get promoted.

The agency’s biggest account was Black and Decker – an international consumer and industrial brand that was the envy of the West Midland’s advertising scene. Getting into the account’s handling team wasn’t going to be easy, but it might help if you knew the product portfolio and codes which went across everything from handyman’s power drills to industrial grinders.

And that’s what I did. By ‘memorising’ the industrial catalogue and familiarising myself with the product applications I became more ‘useful’ to the account team and, after just six months in the post room, they put me in charge of looking after the allimportant product samples, getting them ready for photography and filming, and ordering the printing block requests from

the client’s main dealers.

I might not have been CEO at this time, but what a great job it turned out to be.

It encompassed everything from playing a part in catalogue production, to national newspaper campaigns, even the occasional TV ad.

That was the first stepping stone to getting

It’s been a long journey, but looking back I don’t think I would have done anything differently real hands-on experience in the advertising business, which was one of the most soughtafter professions of the era.

Before long, in 1967, I joined Wyatt – then known as Wyatt Hooke and Partners – as production manager, becoming a board director in 1971 and eventually a majority shareholder and chief executive.

25

AS I SEE IT

And now, as chairman, fifty years after I started in advertising, I’m still enjoying the demands of what undoubtedly is one of the toughest businesses to be in, and one of the most satisfying. It’s been a long journey from post boy to chairman, but looking back I don’t think I would have done anything differently.

Today, of course, the business has undergone huge changes. We don’t refer to it much as the ‘advertising industry’ anymore, but more the ‘marketing communications profession’.

It’s difficult to believe that in those early years there was no internet, no mobile phones, no Apple Macs (not even computers).

So what am I rambling on about? Times move on and so must we. Strategic planning, creative development, digital marketing, social networking – all are integrated and vital elements of today’s marketing landscape.

And no doubt in another 50 years, the whole thing will have changed beyond recognition again. What won’t change is people’s ability to learn, think creatively, come up with new ideas and innovative techniques that help to shape the marketing business of the future.

It’s nice to look back, but essential to plan for the future.

So here’s to 2014, and ‘this is the year that is‘. n Wyatt International Ltd is based at 72 Francis Road, Edgbaston, Birmingham B16 8SP. Tel: 0121 454 8181. www.wyattinternational.com

BUSINESS QUARTER | SPRING 14

ENTREPRENEUR

BUSINESS QUARTER | SPRING 14

SPRING 14

26

SPRING 14

ENTREPRENEUR

my magic formula

Dean Chudasama has built his impressive housing business on the back of honouring commitments, helping partners and investing against the flow of the market. Ros Dodd reports

During the recession, as construction sites stood abandoned and businesses were brought to their knees by banks’ reluctance to lend, one West Midlands property company couldn’t build homes fast enough to satisfy customer demand and banks were falling over themselves to offer funding.

That company was Acocks Green-based Damson Homes, and its year-on-year success, even in the midst of deep economic gloom, is down to a “magic formula” honed over more than 25 years by its charismatic owner, Dean Chudasama.

It’s a formula that is deceptively simple: an uncompromising hands-on approach by Damson’s core team – Chudasama, building supremo Ray Sketchley and architect Parimal Tanna – a fast turnaround (the average build time is 17 weeks), great customer service and creative marketing.

The company has also eschewed expanding geographically in order to focus on the relatively small area of south Birmingham, north Worcestershire and north Warwickshire that it knows like the back of its hand.

Since its launch in 2003, Damson has built more than 120 homes – selling most off-plan – and prides itself in finishing even the least expensive to a very high specification (granite worktops, Neff appliances and American oak staircases are standard), with £200,000

businessteam@bham.ac.uk www.birmingham.ac.uk/partners

properties fitted out to the same standard as those in the £700,000 price bracket.

Not only does it have buyers lining up to buy its properties, the company has won the Chartered Institute of Building’s “design and quality” award (nominated by Local Authority Building Control) four consecutive times – a feat no other developer has achieved. And one of its developments, The Friars in Hall Green, was the only residential build to be shortlisted in the 2012 RICS Awards for Design & Innovation.

“We have managed to buck the trend in the property market by doing things differently,” explains Chudasama.

The moment you meet the 48-year-old fatherof-two, you are immediately reminded of the saying that “people buy from people they like”. Chudasama is chatty – very chatty in fact – and hugely likeable. It is evident, too, that he believes in always conducting himself honourably, whatever the financial climate.

“My reputation and the reputation of Damson Homes are extremely important to me,” he says. “I describe myself as being firm but fair.”

Chudasama is a good example of the entrepreneur who sees an opportunity, grabs it with both hands and takes care to learn from it all there is to know so that he can take the experience and plough it into the next, bigger project.

He is also a good example of how hard work – in his case, juggling a full-time job and part-time studying with buying and refurbishing properties – is the best way to succeed in business.

The foundations of Damson Homes were laid many years ago. Born in Nairobi, Kenya, Chudasama moved to the UK when he was two and settled in Birmingham with his Indian-born parents.

“My parents didn’t speak English and worked in factories all their lives, but they drove the message into me and my two sisters that we would have an education and a life with more opportunities than they had had,” he recalls.

His parents’ ambitions for their children were realised when their son became the first person in the family to get into university.

“They were very proud,” he remembers.

It was, however, a somewhat circuitous route to the University of East London, where he studied land management and estate administration.

“I went through three years at Solihull College and came out with nothing. A friend of mine was working for Ind Coope at the time and his job sounded really interesting: things like negotiating the sale of part of a pub car park to a developer. I asked him how he’d got into it and he said he’d studied for a degree in land management and estate administration. >>

Putting world-class expertise to work in your business

27

BUSINESS QUARTER | SPRING 14

ENTREPRENEUR “I decided that’s what I wanted to do, too, so I found a job in photocopier sales and did a BTEC diploma part-time, gaining a distinction.”

To fund his university education, Chudasama knew he needed to accumulate some money.

But this was the early 1990s and the only jobs around were in estate agencies (London’s property market was, as in the recent recession, largely unaffected by the economic downturn).

“It wasn’t the kind of job I’d had in mind, but it was property-related and I was chatty.”

Not only did he take to the job like a duck to water, he also managed to study for his degree at the same time. Then something else caught his eye.

“I noticed there were these guys called property developers who were approaching the likes of me to buy bargains that were more readily available because of the recession. They were refurbishing the properties and selling them. I didn’t know how much profit they were making, but they had great lifestyles.”

So, having saved enough to put down a deposit on a property, Chudasama decided to have a “dabble” himself.

“It took me a year or two, but I found a bargain – a Victorian terraced house in Walthamstow: I paid about £45,000 for it but knew it had a resale value of £65,000£70,000. It needed a fair bit of work, though.”

He did most of it himself, getting up at 5am, doing his day job and his studying before returning to the house at 10pm and grafting until the early hours. His hard work paid off: after eight weeks, the house was finished.

With the money he made, he bought another property – and then another. Some he sold; others he rented out.

As the 90s came to a close and his second child was born, Chudasama decided to move back to Birmingham with his family.

“My parents were here to give support with the kids.”

He immediately took up where he’d left off in London – getting a job with another estate agency and building up contacts so he could continue his property development sideline.

“Because I had quite a bit of experience behind me by then, things took off quickly and within a year, I was so busy I wasn’t

BUSINESS QUARTER | SPRING 14

SPRING 14

able to hold down my day job.”

So he started up on his own full-time, setting up a limited company in 2000 and employing two building refurbishment teams.

“I’d already managed to secure bank funding, but then another bank gave me a bigger and better facility and I was able to take on four building teams and have about 15 properties on the go at any one time.”

Chudasama was then contacted by architect

Parimal Tanna, the husband of his sister’s school friend, who was an architect. “He said: ‘You’ve got a great name in property; have you considered buying land’? I said I hadn’t, so he took me to a plot in Moseley where he was talking to the sellers. I became involved and between us we secured a deal to buy the land with planning permission, which we sold for a huge profit.”

They joined forces and started winding down

Three golden rules that keep Dean focused Dean Chudasama’s success in business is down to hard work, determination and a passion for what he does. But he also believes the set of rules he lives by has played a part.

Ronseal it: “Like the famous wood sealant, I always do what it says on the tin. That means that if I have committed to something, then I honour that commitment. When 9/11 happened, the property market went dead almost overnight. I’d committed to buying four or five properties and I honoured the deals I’d struck, even though I knew it could cost me money. My reputation was more important to me than anything.”

What goes around comes around: “If you help people to get what they want out of life, you will get want you want, too. It’s an approach that really works. For example, in the earlier days of my property career, I made a point of passing on lots of referrals to lawyers I knew. At some later date, if I needed a free conveyance when my margins were tight, one of those lawyers would usually give me one. That sort of thing has happened in lots of other areas of my work, too. Out of every three people I’ve helped over the years, even if two of them took advantage, one person would – at some point – help me back. And that means you’re always slightly ahead.”

Pick your time: “One of the rules I have lived by throughout my business life is ‘when the market gets greedy, get cautious. And when the market gets cautious, get greedy’. That means not going with the flow – being strong enough to do the opposite of what everyone else is doing. But it’s worked well for me.”

28

SPRING 14

the refurbishments in order to concentrate on acquiring land for development.

“One of the people who bought land off us was builder Ray Sketchley, from the Sketchley dry cleaners family. He invited us to come and watch the build and what we saw was he built a very high quality house in record time – 11 weeks – and he also made money from it. So we joined forces with Ray, too, and Damson Homes was born.”

Over the past ten years, the company has gone from strength to strength.

“All the things that have helped us to survive and grow, even when other similar companies were collapsing, centre on the fact that we are a hands-on team – each of us has our own, clear roles – we cherry-pick our sites to ensure we get them at the right prices, cut out the middle man wherever possible, and put a lot of effort into networking and marketing.”

The company regularly holds open days, has given away a brand new house – a threebedroom property worth more than £250,000 to a “deserving” family, which drew 6,000 entries when it was promoted on a local radio station last autumn.

As well as clever marketing, Damson also takes care of its customers. “We do things differently: for example, we were the first developer to start running blogs of our sites being built, so that purchasers could watch their homes being built without leaving their front room. We run a client portal where the buyer, mortgage adviser, solicitor and everyone involved in the sale can log in and submit notes, which everyone sees. So it speeds up

the process and makes everything traceable.”

The strategy has paid dividends: 90% of Damson developments are sold off-plan, with 65% of buyers exchanging contracts before the site is finished.

“This was the case even through the recession,” says Chudasama. “People are prepared to do that because they have faith in the product, the person they’re dealing with and they’ve seen previous developments we’ve done, so they know what they’re going to get.”

All the things that have helped us to survive and grow – even when similar companies were collapsing – centre on the fact that we are a hands-on team

businessteam@bham.ac.uk www.birmingham.ac.uk/partners

ENTREPRENEUR

So how does he see Damson Homes developing over the next ten years?

“The one thing we don’t want to lose is the personal touch and the quality, and both would be severely compromised if we had multiple sites all over the West Midlands.

So I see us continuing to grow within our current catchment area, developing single or double sites as we do now, but with a higher number of homes on each site. At the moment, we build 15 homes at the most on one development; maybe in future it might go up to 50.”

He may enjoy the lifestyle that comes with success, but money is no longer a driver.

“It’s about loving what we do,” says Chudasama. “We could easily have Damson Homes sites all over the West Midlands, or we could sell up and buy a yacht somewhere, but we don’t want to. We do enjoy the lifestyle, but we’re passionate about what we do.” n

Putting world-class expertise to work in your business

29

BUSINESS QUARTER | SPRING 14

COMPANY PROFILE

SPRING 14

Unlocking your business potential High quality, practically focused business and management education - designed specifically for entrepreneurs and business owners - by world-class international, national and local experts in entrepreneurial learning ABOUT THE PROGRAMME The 10,000 Small Businesses programme is targeted at small businesses and social enterprises with clear ambitions to expand. The goal of the programme is to provide you with the tools and resources to help you lay the foundation for long-term sustainable growth and job creation.

YOU WILL RECEIVE: • Approximately 100 hours of business and management education • Support to develop a Growth Plan customised for your own business • One-to-one business support • Unique networking and peer learning opportunities with alumni of growth businesses • Specialist workshops KAREN HUGHES, HARCO ENGINEERING LIMITED OVERVIEW: Harco Engineering Limited is a precision engineering company based in Brierley Hill in the Black Country, manufacturing one off bespoke items. Karen joined the Midlands’ 4th cohort of 10,000 Small Businesses programme in March 2014.

CHALLENGES: In the current economic climate Harco Engineering faced a number of challenges around cash flow and staffing. The 10,000 Small Businesses programme helped Karen to take time out from the business in order to help her put in place strategic plans to grow the business.

RESULTS: Since completing the programme Harco Engineering has successfully recruited an Operations Manager to implement improved processes on the shop floor. Harco have also invested in new machinery which will increase their turnover and aid their growth. Karen feels she has personally benefitted from the programme through increased confidence and awareness of the number of avenues open to them to support

BUSINESS QUARTER | SPRING 14

INTERESTED IN DISCOVERING MORE ABOUT THE 10,000 SMALL BUSINESSES PROGRAMME? Attend a Preview Event to understand how the programme can benefit you and your business, meet the delivery team, hear from a previous participant, ask questions and network with other likeminded business owners.

WEDNESDAY 7 MAY 6pm at The Studio, 7 Canon Street, Birmingham. B2 5EP Professor Mark Hart, Aston Business School and Karen Hughes, Harco Engineering

The programme offers tremendous support and a wealth of knowledge that is immense, if anyone is considering applying I would strongly recommend it – you won’t regret it

their business growth.

Karen said “The programme offers tremendous support and a wealth of knowledge that is immense, if anyone is considering applying I would strongly recommend it – you won’t regret it”.

The Goldman Sachs 10,000 Small Businesses programme is fully-funded by the Goldman Sachs Foundation, and is delivered by Aston Business School.

30

WEDNESDAY 21 MAY 8am at Birmingham Chamber of Commerce, 75 Harborne Road, Edgbaston, Birmingham B15 3DH TUESDAY 3 JUNE 6pm at The Studio, 7 Canon Street, Birmingham. B2 5EP To book your place call 0121 204 3225 or email 10ksb@aston.ac.uk

We are currently recruiting for the programme starting in Autumn 2014. For more information about the 10,000 Small Businesses programme please contact us on: www.aston.ac.uk/10ksb Email: 10ksb@aston.ac.uk Telephone: 0121 204 3225 CLOSING DATE FOR APPLICATIONS IS: FRIDAY 27 JUNE 2014

ACHIEVE YOUR BUSINESS GROWTH POTENTIAL WITH 10,000 SMALL BUSINESSES Business and management education Tailored Business Growth Plan One to one business support Peer networking and learning opportunities Specialist workshops

We are currently recruiting for the programme starting in Autumn 2014. For more information about the 10,000 Small Businesses Programme email: 10ksb@aston.ac.uk or call 0121 204 3225

Apply today: www.aston.ac.uk/10ksb

INSIGHT

SPRING 14

only the clever cloggs survive Chris Thomas, the managing director of Cloggs.co.uk, faced the nightmare of administration. But he persisted, found a buyer, and his company is now bouncing back. Steve Dyson reports

BUSINESS QUARTER | SPRING 14

32

SPRING 14

It was during a family crisis in 2002 that Cloggs, then a small shoe shop in Birmingham, was spotted as a huge online opportunity.

The late Russell Thomas had for decades owned the huge, sprawling Oasis – an indoor, market-style shopping centre that had become one of the city’s most popular youth fashion haunts. But when he fell seriously ill, his two sons came home to sort out the business for their mother. One of them was Chris Thomas, who’d got a first class honours degree in Civil Engineering, and was training to become an accountant at KPMG in London.

He recalls: “Dad was very ill – he was not going to recover. And so Nick, my brother, and I decided to take career breaks for two years to make sure mum wasn’t left with onerous demands from dad’s business when he died.

“Oasis was a good business, and dad was effectively landlord of 40-odd stores, five or six of which were his. One was Cloggs, mainly selling shoes, and we noticed that dad had set up cloggs.co.uk online.”

These were largely pre-broadband days, when the internet commerce was very slow and clunky, and so the Thomas brothers were amazed when they found that Cloggs was doing regular business online.

“It was a terrible website, completely out of date, with few products and taking 30 clicks to make transactions – but it was getting emails from everywhere and making five to 10 sales a week. It was compelling and so we started improving it, increasing products and introducing search engine marketing. It started to grow – from £10k a year to £100k, and then to £250k. We both said if it reaches £2m by 2005 this is serious stuff and we’ll commit to it. It did.”

As well as footwear, Cloggs sold anything the business could get its hands on – from jeans to jackets, T-shirts to women’s clothes, and sunglasses to rucksacks.

“No brands we were selling knew anything about online,” says Thomas. “And so from nowhere, this little shop called Cloggs in Birmingham was doing huge amounts of business, getting a presence and attention that national chains were getting, supported by brands without them really knowing about it.

“But around 2007 to 2008, brands started to understand the online opportunity, and things

33

INSIGHT

started to get more complicated because of the scale and the brands’ questions. Then the recession began, and suddenly banking was very strained in a crowded market, making further growth very difficult. We tried to invest with a new management team and to present Cloggs as a national operator for brands.

“We were saying: ‘Look, we’re a serious player, a partner for the long term for brands to exploit the benefits of online.’ Our elastic shop front supported more products for the brands, like a convenience store where customers could find the product they wanted, and we offered the quickest deliveries.

“But new deals made our business quite restrictive. It was like having 10 MDs – the bosses of different brands – and I could no longer make one business decision. We had to become multi-dimensional.”

This complexity and the investment needed, combined with the credit crunch, meant Cloggs became over-geared financially. “It had been very easy to grow with the banks,” remembers Thomas. “Then suddenly, in 2008, the finance was turned off, which meant to carry on growing you had to find more and more debt. We were always one season away from something more critical happening.”

The family sold Oasis in 2008, and to spread Cloggs’ reputation they opened a store in the Bullring Shopping Centre in 2009, but this was a mistake: “It was a good news story when we opened in 2009, but by the end of our third year they’d allowed three of our top five brands to open right on our doorstep – Dr. Martens, Vans and Ugg. “We had £1.5m revenue from the shop in the first year, then £1.2m to £1.3m the year after, but in 2012 we only traded between £850k and £950k, which meant the store was a significant cash drain.”

The company went into administration by the end of 2012 – a fate Thomas still blames on the Bullring: “That’s the thing with these big, glitzy shopping centres: the landlords like the big brands in there. It makes sense for them, but not for us. It hit trade, but we couldn’t get out of our five-year lease, a real dispute. It was a massive lesson learned.”

Administration meant around 40 jobs were lost, with Cloggs’ staff of 75 reduced to 35.

But the company continued trading and big >>

BUSINESS QUARTER | SPRING 14

INSIGHT

SPRING 14

buyers were interested. In February 2013, leading UK fashion retailer JD Sports bought the company out of administration.

“I took our collapse very personally,” says Thomas. “But I soon realised that many firms were feeling this pain in the recession. We’d made such progress online – it made sense for a national retailer to take us into their organisation. And for us it meant rebirth.

“It was like the tap being turned on again. So many things I’d been trying to do but couldn’t because I didn’t have the cash. Now it was a clean slate. JD could see the restrictions, and sat down and asked ‘what would it look like?’ We gave our vision and they bought into that idea. Since then, while JD have an active interest, they’ve just let us get on with it.

“Since last February, six months of rebuilding had to take place. Rebuilding trust with our suppliers, because all brands lost some money out of the administration. All thought ‘why would we go straight back in with you?’ So we had to patch those relationships. ‘We’re the new Cloggs,’ we told them, and explained why this was a better version.

“It was basically two things: we’re the best at buying product; and we’re the best at doing e-tail. Previously, we’d not had the money to keep up with the big boys when the internet exploded, and between 2010 and 2012 we quickly went out of date. We couldn’t say we were the best any more. But with JD Sport behind us, we could.”

Cloggs originally worked well as an e-commerce model, stocking everything from the very cheapest to the most expensive products. But as online markets developed, brands wanted to know that they sat next to other brands that were right for their image. So Thomas rethought the ‘who is our customer?’ question focussing it to become a 35-plus, female-branded business, with up to 65% of products serving that market.

“The likes of Converse, FitFlops, Timberland, Ugg and Dr. Martens,” says Thomas. “A higher price point for loyal customers prepared to pay for well-made brands, and wanting something for different parts of the week. We’re talking about the mum who’s looking after family, perhaps working as well.

“She’s walking the dog, playing with the kids, going to work, going out in the evening,

BUSINESS QUARTER | SPRING 14

I took our collapse very personally, but I soon realised that many firms were feeling this pain in the recession relaxing at the weekend, wanting to treat herself. It’s now all at Cloggs, and that’s working. Beforehand, we thought we could do it all. Actually, you can’t. Brands want the right shop, so we had to cut the value end out.

Our average spend is now £70 a product.”

With the customer sorted, Cloggs also spent time developing modern technology and refining its warehouse management, with the biggest breakthrough being its ‘responsive’ website design.

“This is a website that responds to the size of a customers’ screen,” explains Thomas.

“Since the iPad and iPhone, the percentage of customers viewing and shopping on tablets and mobile has grown massively to 50%. How do websites handle this? There are loads of different solutions, for example a mobile site with a separate URL. “But the newest solution is a ‘responsive’ website. You have to sacrifice certain things, like the design detail when viewed on a desktop. But because it uses blocks of

34

content, the device a customer uses instantly changes how these blocks are put together.

“We launched this in August 2013, and it’s working. No other retailers are on it yet, so we’re ahead of the game. As a result, despite a drop in turnover last year, we took more money in mobile and tablet transactions this Christmas than we did last Christmas. It’s now being marketed by Google as best practice for enhancing the customer experience. Much of 2013 was down time for us, working with the brands, buying stock, developing the business, but 2014 is going to be big.”

Cloggs’ biggest trading year was £14m turnover in 2011. In 2013, effectively the recovery year, turnover was just £6m, but Thomas says that will become £10m in 2014 and £25m by the end of the third year.

Cloggs is also investing in new physical stores – but this time in traditional high streets rather than modern shopping centres. The first opened in Shrewsbury in December, with Sutton Coldfield now in the pipeline.

“The old company was a substantial shoe business but not that many people knew about it,” says Thomas. “The new company needs a high street presence. It’s all about selecting the right demographic profile, then building the Cloggs brand.

Part of it is being the best at e-tail, but also becoming multi-channel.”

Thomas calls Cloggs’ owner JD Sports “an incredibly impressive organisation” with “all the skills and the backing if you can show them it’s working”. An example was the Shrewsbury store opening, which happened four weeks after contracts were signed thanks to a JD project team.

As 2014 gets under way, Thomas says Cloggs’ staff has already increased to 40-plus as growth continues, and Nick, his brother, who left during administration but is still a nonexecutive director, may return to the company.

Thomas is now aged 34, and is married to Cheryl, aged 27. The couple live in his home town of Sutton Coldfield, and are expecting their first child in May. Asked what advice he’d give to other struggling business chiefs, he says: “Trust your own instinct. If I had the chance again, I’d do what felt right for me. If it doesn’t feel right, don’t do it.” n

SPRING 14

INNOVATIONS IN HEALTHCARE

Improvements in ophthalmic care leads to bright future for city eye centre According to the 2011 census, the nation is ageing. Age related conditions are becoming more common and many of these conditions have associated eye problems.

Monique Hope-Ross, Consultant Ophthalmic Surgeon, who leads Spire Eye Centre in Sutton Coldfield looks at how the Eye Centre is playing its part in creating a brighter future for patients “Over nine million people are now over the age of 65, an increase of 10%, compared to ten years previously. This is leading to growth in the number of patients presenting with age-related conditions.

“Within the field of ophthalmology, diabetic eye disease, cataracts, glaucoma and macular degeneration are all connected to age-related issues and while a decade ago many of these conditions would have led to sight problems or blindness, advances in care have improved outcomes significantly in the management of these diseases.”

“In the past, the treatment of age-related macular degeneration was at best palliative, aimed at slowing the inevitable loss of vision. It was not possible to improve or stabilise vision. Newer therapies have changed this dramatically. Now, there is a 90% response to modern treatments and as many as 25% of patients derive an improvement in vision.

“Cataract surgery has also developed rapidly.

Performed as a day case, a hospital stay is now usually less than three hours and recovery is rapid.

Aided by advances in equipment and surgical techniques we have been able to improve the outcomes for patients suffering from this type of disease. Postoperative care tailored to individual needs results in many patients being able to reduce their dependency upon glasses after surgery, representing a significant advancement.

“Laser photocoagulation is the mainstay of treatment for diabetic eye disease. However, not all patients are suitable for laser treatment. There are now new therapies, which can be used in such patients and vision can be saved.

“Medical advancements have been accompanied by

Medical advancements have been accompanied by a significant increase in technological innovation aiding investigations and treatment modalities

Monique Hope-Ross, Consultant Ophthalmic Surgeon at the Spire Eye Centre, Spire Little Aston Hospital

a significant increase in technological innovation aiding investigations and treatment modalities.

At Spire Little Aston Hospital in Sutton Coldfield, considerable investment has been made to ensure these improvements in the treatment of eye disease are available and accessible to patients.

“Spire Eye Centre houses a state of the art diagnostic suite, lasers and treatment room. We aim to deliver the highest possible level of care for patients whose safety and positive outcome are paramount.

“Spire Eye Centre opened in 2009 and boasts a team of nine Consultant Ophthalmic Surgeons, who provide a comprehensive range of specialist services, supported by a dedicated team of ancillary staff.

35

“A wide range of ophthalmic conditions are managed including cataract surgery, glaucoma and cosmetic lid surgery.

“Spire Eye Centre treats patients from the surrounding area. However, the level of expertise available at the Sutton Coldfield hospital is also attracting patients from around the UK and overseas.

“There have been tremendous advances in the management of eye disorders, with the outcomes and results having improved significantly. With an ageing population, this gives hope of retaining sight for longer for many more people than a decade ago.”

Monique Hope-Ross specialises in cataract and medical retina treatment at Spire Eye Centre, Spire Little Aston Hospital in Sutton Coldfield.

For more information contact Spire Little Aston Hospital on 0121 580 7119 or www.spirelittleaston.com The content of this article is provided for general information only, and should not be treated as a substitute for the professional medical advice of your doctor or other health care professional

BUSINESS QUARTER | SPRING 14

ENTREPRENEUR

SPRING 14

someone to watch over you BUSINESS QUARTER | SPRING 14

36

SPRING 14

ENTREPRENEUR

As a policeman, David Kearns was always fascinated by fraud and business crime. So when he left the force, he set up a commercial detective agency. Steve Dyson reports Locking two former SAS soldiers in a builders’ container fitted with camp beds and rations for 28 days was the biggest challenge David Kearns has ever faced. But it was one he felt was necessary to tackle constant thefts from a West Midlands factory.

“I drilled air holes,” recalls former Warwickshire bobby Kearns, now managing director of Expert Investigations. “Then I fitted mini-cameras, made sure radios were working and – most importantly – put 30 five-litre petrol cans filled with water at one end of the container, and 30 empty five-litre cans at the other end for, er, the waste.”

The ex-SAS men’s undercover operation was to observe the busy factory’s yard that was operating 24 hours a day, seven days a week, and to gather the evidence needed to stop the crime. The surveillance worked: detailed observations were radioed out, and the police arrested the offenders who were prosecuted and convicted – saving the manufacturer hundreds of thousands of pounds a year.

And for Kearns, whose company is headquartered in Coventry, it was another of what now averages 180 serious investigations a year solved.

“Essentially, we’re like a private police force, and we act as if we’re still in the police,” says the 46-year-old. “That means setting up surveillance teams, using covert cameras, tracking vehicles and carrying out detailed database checks.

“Where necessary we employ police-style interview teams, and effectively act as a private police service bringing police capability to the private sector. We often then appear in civil and sometimes criminal courts, and industrial

tribunals, giving evidence.” The range of cases Expert Investigations handle range from people pretending to be sick while working elsewhere; theft of a company’s products and serious bribery and corruption by firms’ senior staff.

There’s then the graft needed to solve each case: one day setting up covert cameras in an office where cash has been regularly stolen, the next day interviewing employees after a Christmas party went out of control, resulting in alleged indecent assaults.

When he set up in 2000, Kearns employed just himself and two former National Crime Squad officers on sub-contract, with a first year’s turnover of £32,000. By June 2014, the end of his current financial year, revenues will total around £750,000, with full-time and sub-contracted staff of 43½.

There are six office staff based at Expert Investigations’ head office at The Innovation Centre, Binley Business Park, Coventry, and then regular sub-contracted associates numbering 22 ex-police officers from Special Branch, Field Intelligence, the Economic Crime Unit, the former National Crime Squad and Anti-Terrorist Branch, and 16 former SAS soldiers and Royal Marine Commandos.

“When I started, I did everything myself.

And I never took out a loan – we just grew organically. I had young children and domestic commitments, so was very riskaverse. But in recent years I’ve been slightly more adventurous, employing more staff on particular jobs and expanding.

Of the 43½ ‘employees’, Kearns estimates that seven are on his wage bill, and 36½ are sub-contractors, helping him to manage costs during recent growth. “Smart companies these days are the ones without huge staffs,” says Kearns, getting up and finding a magazine article to show me that quotes business guru Theo Paphitis, star of BBC Two’s Dragons’ Den. “Paphitis says successful entrepreneurs are the ones working with alliances and subcontractors, and that’s what we do. But we provide all the kit they need – the various covert cameras that are body-worn, or in laptops, watches, key fobs, and the radios and all the other electronic kit. And their files are all kept here. It means they’re doing the job they did back in police days, and sharing our ethos – great service and delivery. But without all the bureaucracy and paperwork.”

Costs are also managed by renting rather than buying company properties. Kearns says Expert Investigations works on four basic >>

Essentially, we’re like a private police force – that means setting up surveillance teams, using covert cameras, tracking vehicles and carrying out detailed database checks

Andrew whiting weAlth ConsultAnCy llP Senior Partner Practice of St. James’s Place Wealth Management tel: 0121 215 0926 Email: andrew.whiting@sjpp.co.uk Web: www.andrewwhiting.co.uk

37

BUSINESS QUARTER | SPRING 14

ENTREPRENEUR cornerstones: “We always use the right people, with the right skills, using the right equipment, and with the right support.

“Customers make a phone call, the next day we research the job, and we then start the day after. Many jobs may be small in value but high-impact in terms of workforce morale – like money going missing out of pockets and purses in a client’s offices.

“But sometimes the value of crimes committed is huge – like when we investigated [and resolved] how a client had been kicked off a £50m tendering process in what could have become a major bribery and corruption case.”

On the crime side, Kearns explains how most companies’ security is set up to stop people breaking in – physically or electronically. “But when people working within those companies decide to misbehave, they know how to work around those security systems.”

Overall, he reckons 75% of his major cases are based on theft, dishonesty and fraud, with 25% relating to problem employees – false absenteeism, breach of contracts, and restrictive covenant issues.

Now in his 14th year running a commercial detective agency, Kearns says he’s still driven by the excitement. “A lot of my time is spent managing clients but I still occasionally do jobs myself. I still get excited getting up in the middle of the night to covertly deploy tracking devices, crawling under cars in the dark at 3am. And the moment of a result, the buzz of success, getting solutions for client that justifies their decision to invest in us.

“Only recently, we’d worked on a restricted covenant issue for seven days and nothing was happening, and on the eighth day everything came together – a meeting, an email, the proof we needed.”

Expert Investigations has regular customers for its bread and butter work, such as computerbased background checks and serving bankruptcy documents for law firms. But it has no retainers, and so all its major cases are ad hoc. And because most companies don’t like

SPRING 14

the publicity, Kearns has to rely on a growing reputation via word-of-mouth to bring work in.

“In fairness, the law firms recommend us – and our legal clients include many top companies.

“But we get big jobs by direct marketing.

When we started, that was picking up the phone and mailing letters. Then, when we’d saved some money, we printed brochures, and started to hold seminars and presentations on different types of fraud and crime.

“The surge in emails has helped us, but we still go out and present ourselves. I appear on radio, am an active member of Coventry and Warwickshire Chamber of Commerce, the Institute of Directors, and the Midlands Fraud Forum.” While he enjoys his work, Kearn’s biggest annoyance is not always being accepted as a serious operation by

other businessmen. “People still think of you as a private eye, not as an ISO-accredited organisation that can make significant differences to a company’s bottom line.

“There’s a lot of one-man private eye bands out there and firms think they should only pay a small amount of money for our services.

That can be annoying.”

But most days, the value of jobs he’s involved with overcomes such irritations – especially when they’re measured in human lives: “One job for social services involved a mother who had tried to kill her daughter six times in a Munchausen by proxy scenario. Thanks to our surveillance, the child was eventually taken away from the mother, and our evidence assisted in her being made ward of court – probably saving her life.” n

David’s journey from beat cop to private eye David Kearns was born in Burntwood, Staffordshire, and brought up in nearby Lichfield. He left school at 18 with three A-levels, and originally wanted to be in the armed forces. But when he approached the recruitment office he was told: “Come back in two years when you’ve grown up.”

So Kearns joined Warwickshire police instead, “and never looked back”.

He became a constable in Bedworth, Warwickshire, and two years later, aged just 20, he was seconded onto the Beat Support Unit, identifying and targeting local criminals.

Three years on, the keen investigator landed a job at Nuneaton CID, and five years later joined Field Intelligence in Stratford-upon-Avon, identifying criminals who were crossing borders.

“We’re talking about armed robbers hitting rural post offices, antique burglars targeting high value residences, and crooks from as far away as Liverpool and Brighton committing aggravated burglaries at big wealthy homes.

This work took Kearns – who became a Detective Constable – all around the country, working with various national and regional crime squads and specialist units investigating antique, drugs and customs crimes. Then, in March 2000, he decided to leave the force to set up Expert Investigations Ltd. “The police were going through so many changes,” he remembers, “and with my father and grandfather running their own businesses I suppose it was always in my veins.

“I was a good investigator, with a good reputation, and it struck me that there wasn’t a quality investigations company to service the legal and commercial sector.” Kearns owns 99% of Expert Investigations, with 1% owned by his wife, Janet, aged 45, a senior matron at an independent school. The family home is near Stratford-upon-Avon, although the couple’s children have now grown up: the eldest daughter, Charlotte, is 21 and at university, while 18-year-old Sophie is a budding opera singer.

Andrew whiting weAlth ConsultAnCy llP Senior Partner Practice of St. James’s Place Wealth Management tel: 0121 215 0926 Email: andrew.whiting@sjpp.co.uk Web: www.andrewwhiting.co.uk

BUSINESS QUARTER | SPRING 14

38

SPRING 14

COMPANY PROFILE

5 things every entrepreneur should know about intellectual property Key point to remember: all IP rights are territorial. Few seek worldwide protection for their products due to prohibitive costs. What most do is protect their products in the countries they hope to market in, as well as the countries where they will manufacture/practice in

A few months ago, an entrepreneur came to me looking for help in protecting a brilliant idea for a piece of furniture. It was new, innovative and I could see why he was so excited about it. He’d published a patent application that claimed only his prototype in exhaustive detail. This allowed competitors to steal his idea by slightly modifying his prototype, which rendered his patent worthless.

The problem was, while he understood the need for intellectual property protection, and keeping his invention secret before filing a patent application, he misjudged the scope of protection he needed.

Here, we look at 5 tips to help entrepreneurs.

WHAT IP PROTECTION IS AVAILABLE? Before seeking protection, you need to understand the different kinds of IP available. IP protection is territorial and different types are available in different countries. These are the types most UK entrepreneurs need to be aware of: • Patents are very powerful if used correctly because they can block others from exploiting your idea for up to 20 years, provided that your idea’s application provides a unique product or service with some sort of advantage over its competition, which might be reduced manufacturing costs, not just better performance, for example. Patents are particularly useful if your idea is easy and cheap to copy.

• Registered Designs protect the aesthetic impression produced by an object on a user for up to 25 years, but only its appearance, not the idea itself. However, as many products are unpatentable, designs provide a quick and cheap alternative.

• Registered Trade Marks can protect almost anything that determines the origin of goods or services, such as words, logos, symbols, slogans, smells, sounds etc. Trade mark registration is often sought to obtain legal certainty and provides a basis for franchising and licensing a “brand”.

• Unregistered rights are rights that you don’t have to apply for in the UK, which include unregistered designs, trademarks and copyright.

Robin Oxley, Patent Attorney and Birmingham Office Managing Partner, Marks & Clerk LLP

WHERE TO FILE FOR IP PROTECTION Key point to remember: all IP rights are territorial.

Few seek worldwide protection for their products due to prohibitive costs. What most do is protect their products in the countries they hope to market in, as well as the countries where they will manufacture/practice in. Depending on the protection desired, different options exist. For example, protecting a product with a trade mark or a registered design is simple in Europe because you can apply for a pan-European trade mark and a pan-European design registration. However, patent protection is more complicated because you will eventually need to maintain patents in each European country of interest.

THE COSTS You need to budget for the costs associated with applying for the protection in the first instance (application fees, search fees, drafting fees, etc) as well as ongoing prosecution costs and annuity fees. If money is an issue, be ruthless with the IP you keep. A good IP strategy can help with this.

39

THE IMPORTANCE OF A WORKING PROTOTYPE Creating a prototype can be essential to securing investment. Some of my clients developing products often go to their prospective client with drawings, only to be asked for a working model/ pilot plant. A proof of concept prototype can help to secure business and IP protection if it demonstrates the product’s advantages.

HOW TO BEST USE IP PROTECTION Finally, don’t limit how you use your IP. Nowadays, it’s common to use patents, trade marks and other forms of IP protection as tradable assets. If you are not able to produce your invention on the scale necessary to take it to market, consider licensing your rights to someone who can. You still profit from your invention, but others commercialise it.

The Government’s new “Patent Box” programme can also provide reduced corporation tax for products covered by patents.

Robin Oxley - Birmingham Office Managing Partner T: 0121 643 5881 E: roxley@marks-clerk.com

BUSINESS QUARTER | SPRING 14

SPRING 14

COMPANY PROFILE

Choosing the right family lawyer With an estimated 42% of marriages ending in divorce, a rise in divorce for the over 60’s and an increase of 20% in dissolutions of civil partnerships from 2011 to 2013, finding the right family lawyer is more important than ever With statistics like these it is more important than ever that you choose the right family lawyer to protect you and your family.

The family law team at Irwin Mitchell Birmingham has grown over the last year and can provide expert advice in all areas of family law, divorce, financial settlements for children and civil partnerships. The team is headed up Nicola Walker and supported by associates Sarah Balfour, Rebecca Franklin and Solicitors, Gemma Whitchurch and Mark Hands.

With over 30 years’ experience behind them, the team at Irwin Mitchell deliver first class legal advice tailored specifically to your family and your needs supported by outstanding client service.

‘The pragmatic Nicola Walker leads the team with strength and confidence. She is noted for her work in collaborative law, and has a wealth of experience in children disputes, and the team is also experienced in matters involving significant overseas and trust assets. Associate Sarah Balfour is one to watch’ Legal 500 2014 What services do the team offer? The team advise on all types of relationship breakdown from divorce, dissolution of civil partnerships to cohabitation disputes, along with the financial and children issues that generally arise. For those considering marriage or cohabitation we offer bespoke advice on cohabitation agreements and pre nuptial agreements.

‘So what does divorce mean for me?’ Many of you may be afraid of asking this question and enter into the process not fully understanding the final consequences. In a recent case a wife sued her lawyers (albeit unsuccessfully) alleging that they failed to advise her that divorce would mean the end of her marriage. At Irwin Mitchell we pride ourselves on ensuring every individual is fully informed throughout their case and encourage our clients to ask questions, no matter how small.

If the questions are outside a family law remit we

“What does divorce mean to me?” Many people enter the process not fully understanding the consequences. At Irwin Mitchell we pride ourselves on ensuring every individual is fully informed throughout their case and encourage our clients to ask questions, no matter how small have a wealth of support from our other teams at Irwin Mitchell and have excellent relationships with barristers, financial advisors, accountants and wealth managers.

As Members of Resolution we promote and encourage mediation, collaborative law and round the table meetings. We want to resolve your matters in the most amicable and cost effective manner and will only advise issuing court proceedings if absolutely necessary.

We know every individual is different and do not believe in the ‘one size fits all’ solution to

41

financial and children matters. In considering a financial settlement we have regard to the individual circumstances of the case and what would be the best outcome for you and your family. We encourage parties to disclose their financial circumstances at an early stage to enable negotiations to take place and the parties reach a fair and reasonable settlement. Many of our client’s affairs are complex and involve trust corporations, companies and significant pension funds. It is important that consideration is given to all these issues.

BUSINESS QUARTER | SPRING 14

COMPANY PROFILE

SPRING 14

Top 5 considerations for divorce

PROTECTING FAMILY ASSETS Pensions can often have incredibly complex structures! However, they are often a significant asset in many cases and need to be given careful attention. Generally a pension fund is held in the husband’s sole name and if not included within negotiations or given account in a financial settlement, leaves a wife often reliant on state pension in retirement. Due to our close relationship with pension experts we can provide realistic and economic advice on pension sharing.

A continuing issue for divorce lawyers is obtaining full disclosure so that a fair financial settlement can be negotiated. Following a decision in 2010, we have to work within a strict legal framework for obtaining documents; information obtained without the other spouse’s knowledge and permission is deemed to have been obtained illegally and cannot be used in court proceedings. If you have a concern that your spouse is not providing full disclosure, please raise this with your lawyer who can address it before the Court or with your spouse’s lawyer.

‘Do I really have to disclose all my assets? Surely the Judge won’t really send me to prison if I don’t comply?’ In 2013 a High Court Judge jailed a husband for 6 months after he disobeyed orders to disclose his financial details to his wife. In another case, a Judge found a husband in contempt of court for failing to attend at a committal hearing for disobeying a court order and committed him to prison for 14 days. A High Court Judge set aside a £1.8 million divorce settlement, where the wife did not have the benefit of legal advice, because the husband had failed to disclose material information relating to his assets. The landmark decision of Prest v Petrodel in 2013 was a victory for those whose spouse’s were trying to hide assets in companies to stop them from receiving fair settlement. The ruling confirms that if someone is the sole owner of a company, then if the Court is satisfied that those assets are held by that company on trust for one party, they can be used as part of the divorce.

People cannot deliberately hide their assets in businesses and corporate structures to protect them in the future, in the event of a divorce. The ruling means that family courts can scrutinise the nature of company holdings. Each case will need to be carefully examined by our expert lawyers.

Finally, but no means least, what about the children? All too commonly children can be forgotten in a relationship breakdown and not enough consideration given to how this effects them. At Irwin Mitchell we recognise this and offer sensible and practical advice on how to manage relationships between children and their parents. Rather than attaching a label, whether it be residence or contact, we encourage parents to work towards shared care arrangements that allow the children to have a continued relationship with their mother and father. According to a recent report by ‘Netmums’ only 14% of children were able to be honest with their parents about how upset they felt and two in five (39%) said they ‘hide their feelings from their parents as they don’t want to upset them’ and one in five said ‘there was no point in telling their parents how they felt because they were too wrapped up in themselves’.

BUSINESS QUARTER | SPRING 14

42

1. Choose the right lawyer– ensure that they specialise in the areas of work relevant to you. For example, if your case has an international element, make sure you seek advice from a family lawyer with experience of international cases. This individual will become a frequent contact for you, therefore make sure they are personable and understand your case and provide you with a clear plan.

2. Make sure your finances are in order – if there are financial issues to be resolved then your lawyer will require full disclosure of all your financial circumstances, so be prepared and start collating documents as early as possible. Your lawyer should provide you with a checklist at your first meeting to help you with this task.

3. Make sure you have funding in place and agree how your fees will be paid throughout the course of the proceedings.

In some situations it is possible to apply for your spouse to meet your legal costs..

4. Remember the children - it is easy to forget the impact divorce has on the children. Try and agree matters between the two of you and remember that they still need both of you in their lives.

5. Finally, if in doubt, ask! At Irwin Mitchell we ask that our client’s always share their concerns with us. Only with all the information available to us, can we achieve the best possible outcome for you and your family.

If you have a family law issue, please contact a member of our family team .

Imperial House 31 Temple Street, Birmingham B2 5DB, T 0870 1500 100 E: nicola.walker@irwinmitchell.com

SPRING 14

COMMERCIAL PROPERTY

Industrial property take up soars, radio waves farewell to its old premises, popular office block secures another tenant, car dealers move into £3m complex, Poundland reaches 500th store milestone >> Warehouse demand soars Brisk demand for factory-warehouses has seen property agents John Truslove fix up a succession of occupiers in the same road in Bromsgrove.

“We’ve let three warehouses totalling over 14,000 sq ft on Buntsford Park Road in rapid succession, with a further 16,000 sq ft currently in legals,” said partner Ben Truslove.

“We just can’t get the instructions quick enough!”

He added: “The big problem is now a lack of available stock. There are very few industrial warehouse buildings available for sale in Redditch or Bromsgrove and many of the established estates are almost fully let.”

One of the lettings was to Jade Sheds who have moved to Unit 1, Phase 3 Buntsford Park Road.

>> Expansion CAPS it all A company that designs and manufactures battery handling products is expanding at a Wolverhampton industrial estate following rapid growth.

CAPS Systems Ltd has been based at The Dunstall Hill Estate – owned and managed

by West Midlands-based property company London & Cambridge Properties (LCP) – for the past five years, and has now taken a new 10-year lease on Unit 3, a neighbouring 4,992 sq ft unit.

Peter Smith, managing director of CAPS Systems, said: “We are thrilled to be expanding within The Dunstall Hill Estate and, as the majority of our employees live in Wolverhampton, the move couldn’t have been easier. Our clients are based across the UK so the estate’s close proximity to the M54 and M6 is a particular advantage.”

Existing tenants at the Dunstall Hill Estate include Gunnebo UK Ltd, Wyko Group and Heinrich Georg (UK) Ltd.

David Binks of Cushman & Wakefield

>> Survey reveals huge rise in industrial property take up The take-up of industrial properties of more than 100,000 sq ft hit new records in 2013, according to a new survey of the Midlands by real estate company Cushman & Wakefield.

Some 34 deals involving these properties took place, totalling 8.7 million sq ft, a massive improvement on 2012’s 22 deals totalling 5.2 million sq ft.

David Binks, industrial partner at Cushman & Wakefield in Birmingham, said: “Last year was the highest for take-up since the financial crisis of 2008.

“The big problem now is that we are limited by a lack of ‘Grade A’ stock above 100,000 sq ft.

After six lettings of such buildings last year, there are only three left in the entire region.”

At the same time as take-up has risen, so has demand. According to Cushman & Wakefield’s statistics for the year, the number of enquiries increased by ten per cent in 2013, when compared with 2012. Among the 34 deals in 2013 was supermarket giant Sainsbury taking up a one million sq ft property at the Prologis site at Daventry International Rail Freight Terminal.

Binks added: “As confidence continues to grow occupiers are feeling less risk averse, with more willing to commit to having bespoke facilities constructed and making longer term commitments.”

>> Goold go on spending spree Commercial property experts Goold Estates have purchased more than 64,000 sq ft of industrial units in their home town of Walsall for £500,000. The units, on Midland Road and Wednesbury Road on the southern outskirts of Walsall town centre, were bought from Aspinall Holdings with existing tenant, Walsall Security Printers, continuing on a short-term basis at a rent of £140k per annum.

Dominic Goold, managing director of Goold

43

Estates, explained: “The medium-term strategy is to relocate a tenant from our existing portfolio into one of the large units once it has been vacated and then find an occupier for the modern, two storey unit of 25,000 sq ft.

“Food and non-food retailers, trade counter, leisure including gymnasiums as well as industrial or warehouse occupiers are all likely to show strong interest. The building’s layout is ideally suited to sub-division so we can provide accommodation from 6,000 sq ft upwards.”

BUSINESS QUARTER | SPRING 14

COMMERCIAL PROPERTY

SPRING 14

Ben Thacker, left, and Bruce Moore

>> Radio relocates Free Radio are now broadcasting from new studios after their owner, Orion Media, took a 10 year lease on Black Country House, in Oldbury. Orion Media have taken 1,500 sq ft of ground floor accommodation while lift specialist Otis are moving into 3,500 sq ft on the same lease term.

Phil Riley, chief executive of Orion Media, said: “We’ve created a new broadcasting studio at Black Country House having relocated from our premises in Wolverhampton.”

Cobalt Square offers quality office space

>> Care provider has a new home Non-profit care provider Housing 21 has taken a 15-year lease on 25,000 sq ft of office space over two floors at Commercial Estates Group’s Tricorn House in Birmingham.

Around 250 Housing 21 staff will relocate to Tricorn House at Five Ways from Vicarage Road, Edgbaston, once fit-out is completed in April 2014.

Housing 21 specialises in providing housing and care solutions for older people, managing 18,000 sheltered housing flats, extra care apartments and specialist accommodation premises in the UK. It has a turnover of £200m-plus and employs more than 6,500.

Bruce Moore, Chief Executive of Housing 21, said: “Finding a location which worked for our existing staff was key. Tricorn House is ideal as it offers good access to public transport, leisure and retail facilities.”

Tricorn House, which totals 155,000 sq ft, also houses Certegy, Codemasters, the Money Advisory Service and Mechel.

>> Another square deal >> Off to a flying start

>> New home’s where ART is

Black Country property agent Bond Wolfe has made a good start to 2014 with a series of new deals. Managing partner James Mattin said it was further evidence of the improving market conditions in the sector with demand at its highest since 2008.

He said: “We have closed three pieces of business and in addition secured three industrial property instructions, two sales and one letting, as confidence returns. We are looking for a strong 12 months as the economy continues to improve.”

The deals included the sale of 56 Pinfold Street, Wednesbury, for £210,000, to a private buyer relocating his classic car parts business, the sale of 52a Harrison St, Bloxwich, for £325,000 to 24/7 Electronics, and the letting of a unit at Sterling Park, Woodgate Valley, to training provider Envirohort.

Aston Reinvestment Trust, (ART) the specialist lender to businesses in greater Birmingham and Solihull unable to get full funding from banks, has moved to the Innovation Birmingham Campus at Birmingham Science Park, Aston.

Dr Steve Walker, chief executive, said: “There’s a vibrant community here, with business, growth and innovation at the heart of what the Campus does.”

Dr David Hardman, chief executive of Innovation Birmingham, said: “ART’s brand of funding provides interesting wider opportunities for early stage companies, and having the team based on site will no doubt aid communication and deal flow.”

ART lends between £10,000 and £100,000 to commercial and social enterprises, existing businesses and start ups.

BUSINESS QUARTER | SPRING 14

44

Property consultancy Colliers International has secured another new tenant at Cobalt Square in Edgbaston, Birmingham. Double Diamond Gaming Limited, an independent casino operator, has taken 4,256 sq ft on the tenth floor of the building, on a five-year lease at £7 per sq ft. Colliers and Savills acted jointly on behalf of the landlord, Topland Group.

Colliers director Matt Long said: “Cobalt Square provides quality office space at competitive occupancy costs. We have welcomed a number of new tenants to the building over the last year and expect interest to continue throughout 2014.”

The letting to Double Diamond Gaming follows the recent lettings to GB Partnerships and Connex Education, which took 2,686 sq ft and 2,600 sq respectively.

SPRING 14

COMMERCIAL PROPERTY

>> Geared up for growth Car parts firm Sertec Group Holdings has moved into a 120,000 sq ft storage and assembly facility and global headquarters at Highway Point, Gorsey Lane, Coleshill, North Warwichshire.

The company has agreed a new 25-year lease on space vacated by Greenwoods Communications following their recent fall into administration and the subsequent loss of 240 jobs.

Graham Darby, of Coleshill-based property consultants G R Darby, acted for Sertec and said the move came after increased demand from Jaguar Land Rover.

He said: “The building is perfect for Sertec, due to its proximity to both JLR’s Castle Bromwich and Solihull plants, and the ability to expand on site allows them to accommodate the anticipated future growth of the business.”

>> Car trio in £3m move Construction company MCS Group is transforming a former leisure site in Solihull into a trio of car showrooms in a £3m project. The company, based at Claverdon, Warwickshire, has been appointed by Johnsons Cars to build three new car dealerships on a site at Monkspath Leisure Park. The existing buildings on the 46,000 sq ft site, just off the Stratford Road in Solihull, will be refurbished to provide modern showrooms for Volvo, Mazda and Volkswagen. Keir Edmonds, managing director of MCS Group, said: “The new car dealerships will inject some much needed life back into a once thriving site in Solihull.”

Mike Berwick, operations director at Johnsons Cars, said: “We are looking forward to expanding and relocating three of our dealerships to the new site.”

>> Office letting a Shaw thing Property consultancy GJS Dillon has completed the largest office letting for 12 months in Worcester.

The Shaw Trust Ltd, which helps disabled people find sustainable employment and

>> Poundland opens milestone store in city centre Poundland, the UK’s largest single price retailer, opened its 500th store in Birmingham city centre opposite House of Fraser on Corporation Street.

Real estate company Cushman & Wakefield arranged the 10-year lease between Willenhall-based Poundland and the landlord, Deloitte. The store has a 7,000 sq ft ground floor sales area, at an annual rental of £355,000 per annum.

The store was formerly occupied by Gap, now based at the Bullring, which Cushman & Wakefield retail partner Rob Alston said was evidence that Corporation Street is no longer a fashion location.

He said: “In the days when House of Fraser was known as Rackhams, this was a key location for the fashion outlets, but this began to change when the Bullring was opened a few years ago.

“We have since seen many fashion chains open outlets there, leaving units in Corporation Street and elsewhere available for other more convenience-type retailers.”

independent living, is moving into the 6,448 sq ft Unit 2, Tolladine Road, half a mile to the east of the city centre.

John Dillon, of GJS Dillon, said: “This is a good quality office building in an excellent position in a mixed commercial district close to the city centre. This is Worcester’s largest office letting of 2013 and is symptomatic of a general upward trend in the office market throughout the county.”

The Shaw Trust has also taken a 2,281 sq ft whole floor letting at Cathedral Place, Birmingham on a ten year lease from Real Estate Investor.

Ian Clark, REI’s senior asset manager, said: “We are very pleased to have been able to provide accommodation for this very worthy organisation, whose work makes such a difference to so many people.”

45

>> Room to expand Black Country engineers Petford Tools Ltd has bought and moved into a new 3,000 sq metre base at Station Drive, Brierley Hill, with financial support from Barclays.

The business was founded in 1970 by Mick Parr, and is now one of the country’s leading independent toolmakers and injection moulders, employing 140 staff.

Mel Sinar, managing director of Petford Tools, said: “This latest funding facility from Barclays has allowed us to purchase the new premises which will allow us to accommodate the increase in orders we have received.”

Mike Corcoran, relationship director at Barclays, said: “Petford Tools have an excellent reputation in the industry. The new premises will allow the company to put into place the next stage of their expansion strategy.”

BUSINESS QUARTER | SPRING 14

BUSINESS LUNCH

SPRING 14

punk who grew up to be a bank boss

The credit crunch and recession were largely blamed on banks, who everyone’s now looking at to fund a recovery. Barclays Corporate boss Ray O’Donoghue discusses finance pressures with Steve Dyson

It was a shiny grey suit from C&A and an impressive eagle that landed Ray O’Donoghue his first real job with Barclays Bank in 1980.

The 19-year-old had enjoyed a ‘gap year’ after A-Levels at St Thomas Aquinas school in Kings Norton, Birmingham, and a love of punk rock meant he dragged himself to a job interview with Lloyds Bank dressed in a jumper, scruffy jeans and Dr. Martens boots.

“You’re kind to call it a ‘gap year’,” smiles a reminiscent O’Donoghue. “It was more a case of not being at school, not being in a career, messing around earning bits of money working in supermarkets.

“I didn’t know what to do, and the careers office advised banking, which ended up in an interview with Lloyds. I had the idea that what mattered was who you were, not how you dressed, and turned up pretty scruffy. I soon realised first impressions were important when they didn’t give me the job.

“My dad was horrified, and took me out to buy a suit before my next interviews. I’m pretty sure it was a ‘Man at C&A’ suit – shiny, grey and check – the kind of thing you wouldn’t be seen dead wearing, but both Barclays and Nat West offered me jobs. Why Barclays? I chose them because I liked the eagle logo!”

The bank made a lasting impression on

BUSINESS QUARTER | SPRING 14

O’Donoghue, and he’s still with them nearly 34 years later, now managing director for the Midlands and Wales region for Barclays Corporate, working from offices at Snow Hill, Birmingham.

A career development programme in his early years gave him a taste of the bank’s different sectors – from personal customers to retail, and from asset finance to offshore private banking. The latter took him to Spain and Gibraltar, where he “grew up quickly” as the huge decisions he was making belied his age.

He returned to London in corporate banking, and after making his mark and several promotions he was sent back to the Midlands in 1998 to set up a regional division for ‘big’ corporate banking. He soon became responsible for mid-corporate banking as well, and his region spread to Wales, at one time also taking in the south west.

It’s a huge sector that includes thousands of businesses, ranging from medium-sized companies turning over £5m a year to big corporates with revenues of £3.5bn.

Asked why he’s stayed with Barclays for so long, Donoghue, now 53, says: “Every time I got bored or frustrated they moved me to a different part. And I loved the people side.

Once I’d got through the mundane processing,

46

the longer I stayed the more I thought ‘I’m quite enjoying this’.

“Barclays gave me a chance to work in London and travel. I got to build teams, and the more I understood, the wider scope I was given.

Once I started on the business side – corporate banking – that’s what I really liked, because it’s so client-focused. I wouldn’t say I’m great at project management or on the technical side, but the people, relationships and interaction have been common denominators throughout my career.”

O’Donoghue admits his ‘people focus’ made the banking crash of 2008 – and controversies such as Libor rate-fixing, the mis-selling of Payment Protection Insurance and inflated bankers’ bonuses – “the most difficult time in my career”. But he coped by insisting on being resolutely honest and upfront about Barclays’ failings.

“I don’t think anyone was more upset than the staff themselves,” he says. “You felt let down by what happened, and felt for customers. Trust takes years to establish, and it can be lost in five minutes.

“I remember asking staff to call customers and apologise about what had happened. What came back from customers was a resonating endorsement of what people on the >>

SPRING 14

47

XXXXXXXX

BUSINESS QUARTER | SPRING 14

BUSINESS LUNCH

ground were doing for them. Customers said things like: ‘I don’t recognise that in my day-to-day business with you.’ This positive feedback gave us a massive lift.

“We’ve had to work very hard to maintain levels of service, and to put things right. But being upfront, apologising and dealing with issues head on – honesty was the best policy.”

O’Donoghue deals with any day-to-day customer complaints in the same way: “If I receive a complaint, I pick up the phone and go to see the customer. They’ve often said something like ‘I don’t expect you to do anything’, and so when I turn up they’re shocked, and that often diffuses problems.

Face-to-face is good, treating everybody as you’d like to be treated yourself. Handling complainants well can make them one of the bank’s biggest promotional advocacies.”

While the credit crunch and banking controversies were challenging times, O’Donoghue still enjoys his role helping businesses to survive and grow, and the fact that his people-focus makes that work.

“Banking is about relationships with people, and I really do think Barclays has led the way with that. We’ve been top with employee engagement for many years, and number one for customer satisfaction regionally for seven or eight years. That’s what I’m most proud of. If you get those two things right in any

BUSINESS QUARTER | SPRING 14

SPRING 14

We’ve had to work very hard to maintain levels of service, and to put things right. But being upfront, apologising and dealing with issues head on – honesty was the best policy company, you’ve got a good business, and revenue will often look after itself.”

O’Donoghue encourages staff to take part in Barclays’ various programmes of supporting communities and trying to get people back to work. The bank has taken on thousands of apprentices, and is now trying to increase that by linking directly with schools for work experience, making apprenticeships easier to access.

“Our citizenship agenda is great for staff because they feel they’re contributing” he says. “Our staff motivation shows through in employee retention: there are people in the Midlands who’ve worked here for 30 and 35 years, and they’re still working hard. I know them and their families, and this helps us through difficult times. We’ve got a great mix of youth as well, and the old heads helped guide youngsters through the recession.”

Recessions, of course, bring tough moments

48

– like when funding streams for particular struggling companies have to be cut off.

How difficult are those decisions that result in administrations, bankruptcies and redundancies?

“Such times are hard for both sides,” he concedes. “The customer and the bank. But if you understand the company well enough, and the business they’re in, you’d have been working with that customer to try to find solutions. It’s very rare that you suddenly wake up to huge issues. You work with them so the issues don’t become big.

“In this last recession, there were fewer administrations and corporate failures because banks worked hard to find solutions. Some observers criticised banks for occasionally propping up what they call ‘zombie’ companies. But if companies are trading, covering costs, employing people, why give up? The more time, the more chance of a

SPRING 14

solution.” Talking of solutions, O’Donoghue is convinced that a recovery – albeit a slow one – is happening, quoting various statistics showing rising confidence: “29% of our companies are looking at increasing pay, and similar numbers are looking to take on apprentices.

“The Government says the recovery is ‘fragile’, and I wouldn’t disagree. But exports and manufacturing are there; unemployment is coming down; and more people have investment on their agenda. In hard terms that might not be happening yet, but it’s coming.

We’re starting to see more mergers and acquisitions, recruitment and stocking levels are up, in a sensible way, avoiding some of the big peaks that caused financial problems.

BUSINESS LUNCH

“People are rightly cautious, which makes the pace of recovery gradual. We need banks and customers to keep talking, working together to come out the other side with the diligence we had during the recession. It’s about the strength of relationships, the degree of dialogue and partnership, saying: ‘This is the challenge, how do we get around it?’”

I highlight criticism that banks aren’t lending enough to help businesses invest in the future, and business leaders’ constant demands for finance to secure long-term growth – from capital investment in new equipment to training for highly-skilled workforces desperately needed in sectors like engineering.

O’Donoghue nods, but says: “There’s not yet a huge demand for money. I want to continue

49

to grow our balance sheet, but I’m not forecasting it going through the roof. Barclays’ ‘Funding for Lending’ money is up 3.5%, but I recognise it’s still hard for smaller businesses to get credit. We are looking to lend more, to build relationships and to use governmentsupported products.

“Did you know 80% of all credit applications are still sanctioned? Yes, there’s criticism of longer term funding, but our job is giving people as much advice as we possibly can on different types of structures for finance. We need to be more sophisticated around trade and funding for exports. This is the big challenge for all banks, and it’s a joint thing: customers, government agencies and banks have to make this >>

BUSINESS QUARTER | SPRING 14

BUSINESS LUNCH work in a safe, efficient way.”

O’Donoghue points out how Barclays Corporate continued to strengthen its regional team at a senior level despite the recession, preparing the skills needed once the recovery

SPRING 14

started. He mentions the likes of Keith Webb, who arrived from Santander, Peter Corcoran, from the Clydesdale Bank, Matthew Porter, from Fortis, and Andrew Budenberg, from the Bank or Ireland.

A feast inspired by Roald Dahl’s Willy Wonka “It’s a whole chicken dinner, so please eat in one mouthful,” our waitress advises, offering what look like mini-Scotch eggs on cocktail sticks.

We crunch, and our eyes meet as hot gravy infused with roast chicken, stuffing and roast potatoes spills across our tongues. Almost as one, we spurt: “Willy Wonka!” agreeing this Michelin Star venue was inspired by Roald Dahl. After hors d’oeuvres, Ray O’Donoghue chooses lamb shank for starters – disbelieving it’s a first course. Miniscule slices of tender lamb are smothered with tomatoes, pickled onion and cumin.“Very tasty,” he says, before tucking into cod, cooked in fennel, with whitebait and broccoli stems. “Lovely – and I’m sure that was a poached egg no bigger than a pea!”

We were choosing from a three-choice lunch menu at £32 a head. I begin with Jerusalem artichoke, its caramelised flavours enhanced by egg yolk and chorizo snippets. For mains, my pork is topped with rhubarb, a nicely sharp change to apple, and I love the tiny crackling portions perched on top. ‘Textures of chocolate’ is dessert across the table – “I didn’t know there were so many ways to present chocolate” – while I indulge in soft, green and creamy cheeses with wafer-thin crackers (£2.50 extra). We share a bottle of 2011 Ken Forrester FMC Chenin Blanc, from Stellenbosch, South Africa, which O’Donoghue – a bit of an expert – says is the nicest Cape white he’s ever tried. Then it’s back to Willy Wonka, with chocolates over coffee containing the “popping fizz tingle” you used to buy in quarter pound bags from sweetshops as kids. Adams, O’Donoghue concludes, is “Birmingham’s new hidden secret”, and he promises himself a return visit.

Adam’s restaurant, 21a Bennetts Hill, Birmingham B2 5QP. www.adamsrestaurant.co.uk.

Call: 0121 643 3745, email: info@adamsrestaurant.co.uk, Twitter: @RestaurantAdams

BUSINESS QUARTER | SPRING 14

50

“These senior skills will help levels of engagement and cooperation between banks and the Government, MPs and agencies, which is almost at an unprecedented level as people try to pull together for solutions.

“There’s conventional bank loans and overdrafts; private equity; business growth funds; private investors; bonds in capital markets; and various partnerships can use combinations of all of these. Barclays has the breadth of knowledge to go through all the structure options with businesses and to point them in the right direction.”

But whether it’s agreeing bank loans of hundreds of millions of pounds, or deciding if struggling firms can survive, O’Donoghue must find his job stressful. How does he cope?

“Physical exercise,” he says without hesitation.

“My job’s not physical, but I do get mentally tired. I used to play football and rugby, and go running, but recently I took up cycling for charity, and started rowing last year.”

O’Donoghue’s cycling involved a 1,000-mile team ride from Land’s End to John O’Groats that raised more than £400k for children’s hospices in 2009. And last year, he took part in the Cornish Gig Row Challenge, rowing 28-miles to the Scilly Isles, raising more than £15k for the Bath Rugby Foundation.

Away from work and exercise, O’Donoghue lives in a village near Inkberrow, Worcestershire, and has two daughters: Chloe, aged 14, and Emma, 18. And it’s when we discuss the woes of parenting that he returns to his own teenage years – which is where we came in.

“I was so self-conscious as a lad. You know I’m six-foot, five-inches? Well, I’m proud of my height now, but as a teenager, I used to chop the heels off my shoes to not look so tall.”

And it’s this 1980 image of O’Donoghue I’ll leave you with: a spindly 19-year-old punk in a shiny grey suit with chopped off heels.

Someone on that Barclays interview panel 34 years ago must have seen something in him. n

SPRING 14

COMPANY PROFILE

Putting the properties where the people are Broad Street BID member PLACES Birmingham, is one of the city’s best-connected residential property management and letting companies. Formed six years ago by Kevin Harris and Jaspal Dhillon, the company benefits from being run by directors who are residential landlords themselves, with first-hand experience of the trials and tribulations landlords face dealing with their tenants and with property management companies.

EXPERIENCE THAT COUNTS Managing city centre properties for landlords is still a key plank of the business. Both Jaspal and Kevin own rental properties themselves elsewhere in the UK and so are keenly aware of what landlords need from a management company.

“Maximising occupancy is the key thing,” says Kevin. “Every day the property stands empty is a day’s lost rental income so we ensure that we have tenants ready to move into a property as soon as the previous tenant has left and the property checked. Our tenant database mainly comprises overseas postgraduates and professionals who are looking for high quality accommodation and don’t have a problem paying for it.”

Birmingham has the youngest population of any city in Europe – and with some predicting a 15% rise in the city centre’s residential property prices over the next few years, it’s fair to say it’s the right time and the right place for PLACES Birmingham.

Now the pair are using their experience and their unique location at the heart of Birmingham’s business community to branch out into estate agency – bringing the same close attention to detail and intimate knowledge of city and its residential estate to home sellers and buyers.

“Moving into sales is a logical step for us,” says Kevin. “We’ve had many requests in the past from landlord clients who have decided to sell up, but have had to use another agency to sell their properties when they would have like to have carried on benefiting from the service and insight we can provide.”

PLACES Birmingham has just moved to Five Brindleyplace

Every day the property stands empty is a day’s lost rental income so we ensure that we have tenants ready to move into a property as soon as the previous tenant has left and the property checked MOVE IN BRINDLEYPLACE PART OF THE BROAD STREET BID PLACES Birmingham has just moved to Five Brindleyplace, across the central square from its previous location at number Four. The new office is more centrally positioned and visible to the thousands of potential buyers and tenants who work and relax in Brindleyplace. With a vibrant mix of offices, restaurants, bars and tourist attractions, Brindleyplace is a 24/7 economy with a constant flow of people. Landlords and sellers couldn’t ask for a better shop window for their properties.

“International companies such as Deutsche Bank have chosen to locate in Brindleyplace and brought with them high numbers of staff

51

who are looking for homes to rent or buy,” adds Jaspal. “It’s the ideal place to promote a house or apartment – putting the property where the people are.”

For further information, please call PLACES on 0121 633 0744 or email property@placesbirmingham.co.uk www.broadstreetbirmingham.com

BUSINESS QUARTER | SPRING 14

in association with

Chasing the dragon The issue: How can we harness digital connectivity to create competitive advantage, and what do we need to do to enable it in business?

The evening revealed wide understandings and diverse interests in digital connectivity, from health to gaming, and from education to business. Guests discussed everything from how texting was ‘invented’, to creating digital ‘avatars’ for future generations. The various challenges of geographical digital connectivity were also addressed – from weak signals in rural areas to blind spots on major roads. But two key issues that came out of the debate were: 1/ interesting businesses and public sector organisations to access high-speed internet links; 2/ encouraging these links to be fully used to the advantages of commerce and the good of wider society. Steve Dyson took notes on the comments.

Alan Cockburn, a farmer as well as a councillor, said he had been at the forefront of helping BT roll out broadband in Warwickshire.

He said digital connectivity for him was “having businesses being able to access sufficient speeds of internet to be able to do business anywhere”. BT’s regional director Mike Cook said: “Connectivity for me is any medium, any means and anybody… I’ve just

BUSINESS QUARTER | SPRING 14

vacated a property that was very well-equipped and I’ve ended up in a rental property with very little. It’s gone from accepting the norm to actually feeling something, and my feeling is immense frustration.”

Warwickshire County Council’s ICT chief Tonino Ciuffini said: “For me, connectivity goes beyond physical connectivity, and is also people being able to use it, being able to afford to use it, being able to start to use it, so that they’re engaged in the digital society to take advantages of the benefits it can offer.”

Ken Meeson, leader of Solihull Council, said: “With regard to connectivity, if I was feeling brave, I’d say HS2! [Much laughter] But in the context of what we’re talking about tonight, there are two aspects: one is about business connections across the world, enabling a multinational company based in the West Midlands, on a day-to-day basis, to be able to connect with all its customers across the world and its other operations in other countries. The other end of the scale is enabling people who at the moment find it difficult to communicate, to get them just connected through IT connections.

52

Taking part Theodoros Arvanitis, Professor of eHealth Innovation, Warwick University Amrik Bhabra, chief executive, Adecs Ian Binks, regional partnership director, BT Jacqueline Cawston, programmes director, Serious Games Institute, Coventry University Tonino Ciuffini, head of information assets, Warwickshire County Council Bal Claire, director, BT Group Data Integrity Programme Cllr Alan Cockburn, deputy leader and cabinet member for sustainable communities, Warwickshire County Council Brendan Connor, chair, Midlands Air Ambulance Charity Mike Cook, regional director, BT Steve Halliday, head of ICT, Solihull Metropolitan Borough Council Tom Hamilton, IT and project management consultant, Coventry University Leigh Hunt, economic development manager, Warwickshire County Council Andy Johnson, BT health regional sales director (Midlands) Cllr Lynette Kelly, cabinet member for business, enterprise and employment, Coventry City Council Cllr Ken Meeson, leader, Solihull Metropolitan Borough Council In the chair: Caroline Theobald, BQ Taking notes: Steve Dyson, editor BQ West Midlands Venue: The Arden Hotel, Stratford-uponAvon, Warwickshire.

BQ is highly regarded as a leading independent commentator on business issues, many of which have a bearing on the current and future success of the region’s business economy. BQ Live is a series of informative debates designed to further contribute to the success and prosperity of our regional economy through the debate, discussion and feedback of a range of key business topics and issues.

We’ve done quite a lot of work, for example, in north Solihull, an area of deprivation, by providing computers, by teaching people how to use them, which provides job opportunities for them and enables them to make social contact as well.”

BT’s Andy Johnson said: “The benefits that connectivity in many forms can bring is around access to education, access to information, dealing with both social and rural isolation, enhancing what you can achieve within a

SPRING 14

DEBATE

There’s a great power in networking – a huge amount of interesting stuff that with a little push in the right direction could happen

community, in particular health and well-being and independent living… improving access and the responsiveness of services…

“You’re looking at how people connect to people, people can connect to machines, and machines can connect to machines, over a range of channels, whether they be video, sharing of screens, co-browsing, chatting.

There’s a whole richness that’s now coming through on the back of increased capacity of both wired and wireless connectivity in the digital world that changes the opportunity.

It’s the sum of the parts of that that delivers not just a good economy but also a good social infrastructure.”

Solihull Council’s Steve Halliday said digital connectivity was interesting when it created networks between people, as this helped innovation: “There’s a great power in networking and there’s a network power that comes out of digital. On the brink of the knowledge economy as we are, there’s a huge

amount of interesting stuff that, with a little push in the right direction, could happen.”

Amrik Bhabra, of IT support company Adecs, said: “Connectivity for me is seamless access to everything digital from any device, seamless being the important word.” Coventry University’s Jacqueline Cawston said: “It’s all about connecting people, but for me it’s the ‘so what?’ Then what do you do with it? How do you take it that bit further? How do you improve people’s lives and make it interesting for them?” She gave an example of a digital project where disabled students were helped to improve their access to education. She added that at a recent games conference in Amsterdam, she watched a surgeon who was wearing digitally connected glasses perform an operation, where everyone in the audience could see exactly what he was doing. This prompted her to ask: “How is wearable smart technology going to affect your businesses in the region?”

53

Brendan Connor said the organisations he worked with were “highly dependent on their digital infrastructure”. He gave an example: “We do real-time analysis of fleets of vehicles, proving the value of the technology, and we’re highly dependent on the links between the vehicles and our servers and the analytical tools around that.” The part of digital connectivity that concerned him, he said, particularly with the wider emergency services, was the “vulnerability to cyber attack”. He added that he was interested in the business opportunity of tackling such threats, using the IT and university expertise in the area, providing a safer digital environment, and perhaps creating some jobs at the same time.

BT’s Bal Claire said one of the projects he was working on was how to improve the integrity of BT’s data, which he also saw as a big positive factor. “We’ve got risks around cyber attacks, and there’s European legislation changes coming about data privacy. But >>

BUSINESS QUARTER | SPRING 14

DEBATE

SPRING 14

also, if you can get your data correct, there’s massive opportunity in terms of leveraging sales and marketing, getting the right information to the right customers at the right time.”

Warwick University’s Theodoros Arvanitis said his institute had been tasked to find out “how digital technologies can improve wellbeing and healthcare”. Funded by the NHS, Warwick Manufacturing Group and Warwick Medical School, his studies involve how “digital technologies can affect the way healthcare system works”, and how it can “empower the individual”, such as patients and services, to help wider society. He said: “I see connectivity as the power of information. In medicine, we connect a lot of data routinely… How can we harness this information to support individuals, support their well-being, support healthcare, but also to create wealth in the region – either through traditional healthcare services or through industry?”

Coventry University’s Tom Hamilton said it was time to “move on” from the availability of the latest digital connectivity: “Adequate, fast broadband is available to more people in this country than can read and write. The big challenge today – both in consumers and businesses – is to enable people to access the opportunity… For the country to really move forward, both for economic and social regeneration, we’ve got to provide people with the access to the applications and developments that are already there. The key thing is yes, let’s get the connectivity out there, but the awareness element is going to make the difference. The vast majority of people are aware they can get connectivity, what they need is help to know what to do with it next.”

Warwickshire County Council’s Leigh Hunt, who has a particular interest in what happens with digital connectivity in rural areas, said: “I take issue with Tom because you don’t [have good connectivity in rural areas]…

Everybody knows what they can do with it, it’s just that for a large proportion of people they simply cannot access it. That is creating a bigger digital divide than before all this started, because when the cities are going up to 100meg [megabytes] you’ve got people in rural areas who can’t get half a meg, and that’s a big, big problem for them.”

BUSINESS QUARTER | SPRING 14

Firms need to understand the benefits of fast connections – and when they have it, they need to use it In her other role as a borough councillor, Hunt added: “We’re trying to get people to stay in their own homes for longer, to improve the rural economy and people’s life chances, and the only way you’re going to do that is by getting broadband into rural areas and by letting them know what they can do with it.

Connectivity means being able to transmit or receive information when you want to, where you want to, and in a format that suits you at that time. Sometimes we want to sit at a desk, sometimes we want to do it sat in a car park.”

Cllr Lynette Kelly, of Coventry City Council, had a lot of sympathy with Hunt’s connectivity issues. She said: “Coventry’s got 4G, [telecommunications coverage], Leamington’s got 3G, there’s bits of Warwick where you can’t get 3G, and there’s a dead spot by

54

the Chesford Grange Hotel [near Warwick Castle] where you can’t even get a mobile phone signal… We need to do something about that.”

On digital connectivity, she said: “What do you do with it when you’ve got it? Firms need to understand the benefits of having fast connections, and when they’ve got the fast connection they need to use it. And if they use it in the right way they can grow their business, they can spread the message about what they do.” Cllr Kelly added that a missing link was that many small businesses don’t have the resource to update their digital information – whether it be websites or Twitter – often enough, which in a modern world is a competitive disadvantage.

BT’s Ian Binks said the company was investing “some £2.5bn” to get “next generation access broadband” – usually delivered over a fibre network – to two-thirds of the UK’s population to help commercial enterprises. He said the Government had made extra funds available to spread this to rural areas, hopefully closing the ‘digital gap’ to a final 5%.

Binks said: “What does it all mean? If we look at our Cornish project, which is fairly mature from the point of view of fibre broadband into rural areas, we’ve done research with Plymouth University which looks at how SMEs are starting to benefit. For example, some headline figures: six out of ten are growing, and they put that growth down to having a better broadband connection; 83% are becoming more efficient, saving time and money; and up to 25% can see safeguarding jobs and also creating jobs. There’s a popular myth out there that the internet destroys jobs – yes, it does, but for every job it destroys it creates another two, two-and-a-half jobs.”

Binks gave various examples of how businesses had benefited commercially from faster digital connectivity, and then added: “How does the wider society benefit? And how can we ensure public, private and voluntary sectors all get something of benefit from this activity?”

Hunt said: “The more that people see that broadband is rolling out, the more they say: ‘Why haven’t we got it?’ … It’s about things like health, it’s about fundamentals like nowadays we all expect to be able to work

SPRING 14

from home. I’ve just recently had to be in Guernsey and was able to work exactly the same way as if I was sat at my desk in my office because they’ve got decent broadband.

That’s a tiny five-mile by 13 island in the middle of the English Channel – why the hell can’t you get it just outside of Stratford?”

Hunt gave an example of someone who lived up a mile-long, rural drive, without mains gas or sewage, as someone who should not expect 100% connectivity. But she added: “Notwithstanding that, it is a massive issue for people in rural areas.” Ciuffini agreed: “Our project working with BT is going to be bringing super-fast broadband to 46,000 homes in Warwickshire and there’ll be 16,000 left out – in a county of half a million people, that’s a lot of people. The one thing I would say is that we’re the people in this room who are moving that forward. We’re the best hope for those people… You’ve got to find a way of dealing with those still left at the end.”

Bhabra said a different problem was “the next step up”: a lot of his customers have basic broadband costing £45 to £50 a month, but then want to use the latest ‘Cloud’ services via fast broadband, and are faced with costs of up to £6k a year. “For SMEs, maybe there needs to be provisions in the middle, something a lot more available.”

Binks said there were schemes available for companies to apply to, depending on their size and classification, where they could offset some of these costs, if they could demonstrate that there would be a step-change in the way their businesses were run as a result. “They would simply go through the website, apply for the voucher, get a couple of quotes – it’s quite simple, really. There’s a good pot of money available in Coventry and I’d urge everybody to apply… The funding that has supported the connection voucher scheme was originally called the urban broadband fund, which the Government targeted at 22 particular cities.” Hamilton said: “We all need to be more aware of what’s available, where it’s available and help them.”

Looking at digital opportunities, Connor described the Midland Air Ambulance criteria in purchasing a new helicopter. He said: “The doctors and paramedics are taking the view that this helicopter’s role as a transport device

becomes secondary to its role as a digital operating theatre, because if you looked at what’s been done on the roadside now 15 years ago, you would not have believed it.

With some of the digital technology and some of the devices and training you can now do all that on the roadside, having a dramatic impact on people’s survivability and the quality of that survivability. We’ve equipped it [the new helicopter] with significantly greater ability in carrying equipment because we will be doing dramatically more complex lifesaving on the roadside compared to what we’re doing today.”

Cawston said there were also a lot of other applications of “wearable technology” which can be used in manufacturing, where “someone over in China can see what you’re seeing”. She added: “3D printers have got massive opportunities for businesses. You can make a small component and you can have it on a 3D printer over in China in a very small amount of time. They’re so sophisticated now that you can do fabrics, you can do shoes, you

55

DEBATE

can do amazing textures and you can get them across the world in a matter of minutes, and that’s changing the whole of manufacturing.

“One of the other areas we’re working in is in simulation. People are realising that simulation is the thing, and people actually behave in simulation the way they do in real life. For example, in emergencies, in medical situations, it’s better to make mistakes in a simulator than it is on people. There’s lots of ways of using the technology to increase business. In tourism, there’s massive opportunities, because you can see so many things as you’re walking around.

You can use so many applications.”

Arvanitis agreed, and said: “The important thing to remember is to see technology in a revolutionary way, not the way you might have thought about using it. For example, when we built mobile networks, the SMS was a carrier channel for the operator to send engineering messages. What it has done to the world is to revolutionise social interactions. So text messaging has changed our way of living.

In healthcare, connectivity can change >>

BUSINESS QUARTER | SPRING 14

DEBATE

SPRING 14

behaviour, the way you live your life, the way you might work and deal with chronic diseases… [For example] Can we use it to change the behaviour or people on issues of obesity or other social problems?”

Bhabra mentioned a 3D computer game that helped children suffering from Leukaemia to understand how chemotherapy works, adding fun to what is a very difficult time. Another example he gave was a 3D avatar being built for a retiring British Aerospace engineer with 40 years of expertise, leaving a digital legacy of his knowledge for future generations.

Bhabra then talked about the barriers of digital innovation, and said from his experience within healthcare the biggest problem was NHS IT departments, quoting data protection.

Halliday said it was the same in social care, and that the “joined up-ness” of information between agencies provided big challenges, citing the Baby P controversy. But he said he was “optimistic” that those challenges weren’t insurmountable, such as when health and social care workers needed to see each others’ data, and that creating networks between them was crucial. “Think of the power of Twitter and Facebook. If we’re able to do that in a secure way between care professionals there are some fantastic opportunities.”

Ciuffini agreed and said: “Councils do get pulled up for not looking after the data… when does someone get pulled up for not sharing the data in the way that they should?”Arvanitis warned: “There is a paradox in the digital world, in particular healthcare. The healthcare industry is the slowest in adopting digital. We adopt high technology, we use information, but when it’s about sharing it in everyday society we’re slower than the shipping industry…

He added: “It’s interesting, we’re ready and happy to share our personal pictures on Facebook, we’re happy for websites to take our personal preferences about the way we shop, but when it’s about our healthcare we’re very scared. Think how the data used to be stored – on paper, sometimes loose paper, sometimes it was lost, it was burnt, destroyed.

Why is that more secure than the digital world? It’s not technology that’s the barrier, it’s the governance, where the data belongs, who is the owner.”

BUSINESS QUARTER | SPRING 14

If we look at Baby P or Victoria Climbie – time and time again they say the reason is because agencies aren’t sharing data

Halliday agreed: “The debate needs to be elevated… it is about the crime of not sharing data, as opposed to losing data.” Hamilton added: “It’s not that long ago they [medical professionals] were extremely reluctant to let you see your data – you as the person the data referred to… they’ve got a huge distance to travel. Maybe it’s this generation coming up who are happy to share everything with everybody – too much sometimes – that will create the transformational culture.” Arvanitis agreed: “Empower the individual.”

Meeson said: “Protocols are notoriously difficult, partly because of confidentiality… we’re working on it, and because we’re doing much more partnership work, trust is being built and barriers are being broken down.

We’re much more aware of it now.” Connor talked about how it had taken 18 months to agree information sharing between the police and social services. He said: “Getting those systems to knit together and just allowing people to see into each others’ side, across the fence, has been remarkably difficult, and the police were as unhelpful as they can be.”

Cockburn agreed: “The most depressing thing about it, if we look at Baby P or Victoria Climbie, and all those cases, time and time

56

again they say the reason is because agencies aren’t sharing data, and it keeps happening again.”

Kelly said: “We need to start breaking down the professional boundaries. Teachers think their role is to teach and they see that in a very narrow way. They see their role with the child in their classroom, and as soon as the child’s outside of their classroom they have no responsibility for them. Social workers see their role outside of the school and have no relationship with the teachers. And it’s only when you start having professionals working alongside each other on a regular basis, sharing information on a day-to-day basis, being in the same office for a few hours a day, [it] helps you see what the other person does.

Those casual conversations are often much more effective at breaking down barriers than an instruction to work cooperatively.”

Turning back to companies accessing broadband, Hamilton said: “There’s too much emphasis on trying to find people who need help and telling them they need help. What we need is them to know they need help and come and ask for help.” Arvanitis said: “At all levels of education we have to involve technology training and understanding… Even

SPRING 14

engineering ethics is not covered in the way our future engineers understand it. Education is a big issue in every sector.”

Hunt said there was often a lack of IT competencies in smaller companies, and that basic training in understanding how to run and manage IT was needed. But Hamilton said it was often difficult to get hard-pressed SMEs to invest their time to understand new technology. Referring to a discussion where he and Hunt had agreed, he said: “[perhaps] people should be paying something for that kind of help and advice and then they value it more? If you offer it free, they’re looking for the catch. If you charge too much, [they say] I can’t afford it. There are just so many challenges.”

Ciuffini talked about how many people have access to their own personal devices – such as iPhones and iPads – and were often walking into his office asking if they could use them for work. He said: “We’ve got a real opportunity.

People are using these devices in their everyday life, we’ve got to help them see how to take advantage of that for business. There’s a step change in the last few years and we are in the position to take advantage.”

Meeson referred to a charity he’s a trustee of, where “we’re moving into the 21st century” and have “begun to crack IT” by taking on a young apprentice. He said: “She’s got the knowledge, we’ve just given it to her and it’s flown. For a lot of SMEs there’s an opportunity there – take on a young apprentice.” Cawston agreed: “That’s where the pressures are coming from. Babies are using iPads, kids in schools know more than teachers – they’re actually the experts in schools, not the teachers.”

Cook concluded the evening by recalling how 20 years ago someone had predicted how broadband would become the “fourth utility”, as important as gas, electricity and water. He said that this came even more to mind with his own recent connection problems after moving, and said that BT would continue to look into how it could push digital connectivity further into rural areas. Cook also praised the comments that had come from guests during the evening, and said: “We’ve got a very, very advanced research and development centre in our labs at Ipswich, really rich in technology

and application, but listening to what I’ve heard around the table there is as much here in terms of ideas as there is there.

“The key thing that came out is that this is forcing us to work together, but the word ‘help’ came out more than any other word tonight. For me, summing up, and on the point about the SMEs and bridging the gap between the £50 and the £6k connection, that’s where we as a business need to go away and help a lot more. Because the enablement of the connectivity and the applications is going to be absolutely key, and to work with some of the technology we’re talking about rather than moving on and working on the next thing, when we haven’t even touched what we’ve developed today.

“From an SME perspective, the whole aggregation and helping yourself, and looking at those innovative ways of taking advantage is really important. And one key to my business, which goes along with the avatar

DEBATE

theme, is I’ve got a very aged population in my workforce, that’s the demographic of BT. How do we keep hold of those skills and capabilities and answer the questions for the future, because as much as we turn new technology on we don’t seem to switching anything off.

So we’ve still got a huge platform that’s grown bigger and bigger, and the people with the skills are leaving the business. So I’ve taken something away today [avatars] and that’s a fantastic idea that can help my business.

“I want to thank everyone for their time, I think it’s been a really good debate, and at the next one we can be looking at the help needed in a bit more depth. That’s the next key agenda topic for me.” n The debate was held in a private dining room at The Arden Hotel, Stratfordupon-Avon, with the support of BT. It was chaired by Caroline Theobald, managing director, Bridge Club Ltd.

BT Investing in the West Midlands BT is a key player in the West Midlands and has generated a massive £1.2 billion for the region’s economy in the past year. A report, by Regeneris Consulting, also shows that the communications company supports nearly 16,000 jobs in the West Midlands through direct employment, its spending with contractors and suppliers and the spending of employees. Around £488 million was spent with regional suppliers. The overall beneficial financial impact of BT activities is expressed as a “Gross Value Added” (GVA) contribution. For the West Midlands the BT GVA totalled £1.2 billion – equivalent to £1 in every £80 of the region’s total GVA. But BT’s role in the region is more significant than even these massive figures suggest. In addition we are creating a high-speed fibre broadband network which will be essential to the future success of local businesses and households. The potential benefits to the region offered by that network are huge by any standards, changing the way people live, work and play.

BT is investing £2.5 billion in its commercial fibre broadband roll-out in the UK, and in the West Midlands BT has already made fibre broadband available to more than 1.4 million homes and businesses. Alongside the commercial rollout we are also working with regional and local authorities to extend next generation broadband even more widely – especially to more rural and remote communities. In the West Midlands we are working with five high-speed broadband partnerships in Coventry, Solihull & Warwickshire, Herefordshire, Shropshire, Staffordshire and Worcestershire. BT continues discussions across the West Midlands with prospective public and private sector partners about further government initiatives and local projects such as Enterprise Zones and Connected Cities.

BT is also contributing to the local economy and society in a number of other ways through its community and sustainability activities, of which volunteering is a core element. In the West Midlands, employees contributed more than 3,400 days, over 25,000 hours during the year.

The full report is available at www.btplc.com/Thegroup/BTUKandWorldwide/BTRegions/ England/Factsandfigures/Factsandfigures.htm

57

BUSINESS QUARTER | SPRING 14

COMPANY PROFILE

SPRING 14

The cross sector partnership that’s saving children’s lives Birmingham Solicitors DBS Law have collaborated with the City’s famous orchestra to create a ground breaking road safety concert for school children DBS Law and the City of Birmingham Symphony Orchestra have committed to a long-term project of combining music and road safety education for the children of Birmingham. The commitment was announced at a special performance of a Road Safety themed concert at the CBSO centre in front of an audience of hundreds of children and local dignitaries including city council leader, Sir Albert Bore.

The show entertained 3000 key stage two children from a wide variety of schools during a week long run. It features songs and dances that demonstrate safe ways to cross the road in a fun and memorable way. Members of the world

famous orchestra donned high vis jackets and cars for hats, and a man size alarm clock, one of the DBS Law brand symbols, joined in the dancing.

It’s a highly interactive spectacle for the children just like a pantomime. They get involved from the beginning and get more excited as it goes on. The concert finishes with an original song co-written by children’s entertainer Nikki Smedley, famous for playing La La in the BBC’s Telletubbies. It’s a catchy tune and DBS Law is hoping this will soon be a song that every child knows.

How did a medium size firm of solicitors get involved in this? CEO Rob Bhol explains how government policy forced their hand, “It is said

that nature abhors a vacuum and following the government’s announcement 2 years ago that it would be cutting road safety information films from our TV screens as part of their austerity measures we saw a gap that desperately needed to be filled.”

“We set up a project with the help of the city council to keep teaching children safer ways to cross the road. We started off small with four of our staff performing a road show at Harborne Primary School where my children went. It was an instant hit with the kids and our staff. The project snowballed from there.”

The Smarter Choices team at BCC provided equipment, mini zebra crossings and the like, plus training and vetting for DBS staff. Then they offered the service to schools around the city.

DBS added to the show with a professionally produced animated film featuring the clock.

The road show was soon very popular with the children and teachers and it wasn’t long before the firm couldn’t meet demand. “We had to start prioritising schools near accident black spots and disappointing lots of others,” said the leader of the road show team Vicky Blodwell.

The solution to the problem came from the brain of Zeeshan Masood, DBS Law’s Chief Operating Officer. He says, “ We wanted to bring the show to a wider audience so we commissioned our friends at the CBSO to produce and perform a road safety

Following the government’s announcement that it would cut road safety films from our TV screens we saw a gap that desperately needed filling DBSLaw CEO Rob Bhol and Mike Cooper from the smarter choices team

BUSINESS QUARTER | SPRING 14

58

SPRING 14

COMPANY PROFILE

Mr clock starts the dancing

musical and asked the Smarter Choices team to round up the schools. The concerts were first performed in 2013 and I’m delighted to say they’re back again after some great feedback from head teachers and parents alike. “ The unique project appears to be paying dividends the latest road safety figures suggest that casualty rates are falling with around 200 children being injured or killed on Birmingham’s roads last year.

Ten years ago the figure was close to 1,000.

DBS law CEO Rob Bhol who said: “We are really proud of what we’ve achieved so far. It’s great news that road casualties involving children are down which is almost certainly down to the Council’s Smarter Choices team that overseas road safety education in the city and organisations like DBS Law and the CBSO who are getting safer road use messages out there - these are most certainly bearing fruit. Ultimately, through this partnership, we want every child to see this

concert with the aim of reducing injuries and fatalities on our roads to the only tolerable level, zero!”

There have been benefits for all the parties, DBS Law is now a major supporter of the CBSO and enjoys a privileged position in marketing services to the orchestra’s other associates. The CBSO has also been recognized for it’s unique contribution to the community and DBS are up for Law Firm of the year Stephen Maddock, Chief Executive of the CBSO said: “This project has been an unprecedented success thanks to the vision and support of DBS Law and the creative input from members of the CBSO. As a charity, the support from business and individuals is paramount to the work that we do.

DBS Law, through their very individual support has really made a difference, and we have certainly had a lot of fun along the way.

“What’s more, the projects creator, violinist

59

Catherine Arlidge, recently won national acclaim for her work in creating concerts and musical experiences for young people as the 2013 recipient of the Salomon Award. It shows that whilst these concerts support key learning and safety they are also created to the highest of standards.”

If your company would like to join DBS Law in this life saving project contact Rob Bhol on rob.bhol@dbslaw.co.uk.

Tel 0800 1577055 or 0844 2770800 www.dbslaw.co.uk

BUSINESS QUARTER | SPRING 14

ENTREPRENEUR

SPRING 14

career change proves fruitful

Transport entrepreneur Mark O’Sullivan has turned a speculative email from a South American farmer into a West Midlands business importing 80 million bananas a year. Steve Dyson reports

It was during a chat over beers and curry in September 2011 that transport manager Mark O’Sullivan started to ‘go bananas’.

O’Sullivan, then regional general manager at Birmingham haulage firm TDG Ltd, was socialising with logistics expert Peter North, who’d been working with the firm as an interim consultant.

The pair, who quickly found they got on together, were eating at the Kebabish Original restaurant in Birmingham’s Star City entertainment complex when the conversation turned to an unusual business opportunity that North was considering.

O’Sullivan, aged 38, recalls: “He talked to me about an email he’d received from a guy in Ecuador called Danilo Serrano, from the family company Ceinconsa, which had been growing bananas for the last 30 years.

“All this time the company had been packaging out people’s brands with their product, such as Fyffes and Del Monte, but Danilo – who’d been educated in the UK and is finishing his doctorate in Paris – wanted to

1481112 BQ Magazine - Sponsor strip 175x20mm_1.indd 1

BUSINESS QUARTER | SPRING 14

take things in a new direction.”

In short, Serrano wanted to export direct to international markets, and was looking for transport and logistics partners to establish a new brand for his family’s bananas. North already operated a company called Logistics Partners, and was one of five companies Serrano had approached.

“As we talked over a few beers and a curry, I really got into the prospect and said I’d be keen to look into taking it up. I’d spent a long time at TDG and just felt it was the right time to do something completely different.”

Leaving a senior management role to launch a start-up company is a risky business, however – especially when, like O’Sullivan, you’ve got a wife and two young children to support.

So he started cautiously, first leaving TDG and taking up a six-month role as national operations manager at food supply chain specialists Culina Logistics, on the understanding that he could work on creating his banana project in his own spare time.

“I started developing a relationship with

60

Danilo during the evenings, while I was setting up the company from scratch. There was so much to do: looking into things like import and export, dealing with Defra, looking into who was going to ripen the bananas, who was going to distribute them and clear them.”

Working on it in his spare time meant it took O’Sullivan more than 12 months to find the right partners for each process, running a trial with a container of bananas to see if he could make the operations work.

“Although I was immediately very interested, after three or four months I was still in doubt.

But as I got to know Danilo, it became more interesting than I’d thought, and I realised this could be something very, very special.

“I started to speak to suppliers – people like Brian Eastham at Sharrocks of Preston – who’ve worked in the trade all their lives, and really got to know the banana product. And I built a big relationship with Fruesh of Shifnal, Shropshire, who’ve been in fresh produce for 12 years, where the managing director Andrew Sperling really helped me to >>

10/02/2014 16:20:21

SPRING 14

61

XXXXXXXX

BUSINESS QUARTER | SPRING 14

ENTREPRENEUR understand the industry. It clicked when I started putting my knowledge into it, because if you’ve worked in logistics you can apply that to anything.”

Eventually, by the end of 2012, the new company BanaBay Ltd was ready to start business with four equal 25% partners – O’Sullivan and North in the UK, and Danilo and his brother Ronny Serrano in Ecuador.

O’Sullivan, the joint venture’s managing director, says: “Danilo and the family produce the banana crops, and from when the bananas leave Ecuador I’m responsible for everything: importing, ripening, marketing, selling and transporting the goods to market, and growing the brand worldwide.”

The first year’s figures from January to December 2013 look impressive for a start-up: a turnover of £2.6m, and by the end of the year more than one million bananas imported every week, ripened in the UK and then transported and sold around the UK, Ireland, Holland, Russia, Egypt and New Zealand.

Despite such volumes, poor weather meant that BanaBay had a tough 12 months: the UK was hit twice by substantial snowfalls which disrupted distribution.

The result was too much banana supply, not enough demand, and therefore lower prices.

Mixed with BanaBay’s new brand as a start-up company, and the fresh produce industry’s low profit margins of 3% to 4%, this meant the company made a loss in its first year.

“It was the perfect storm,” says O’Sullivan, “but I know we wouldn’t have lost money if it had been a normal year, and that trend has not happened in the last 20 years. We’ve weathered it and are now in a much stronger position. Our brand is recognised, and we’re targeting it to become a premium banana like the Chiquita brand, which people want.

“Ecuador is already well-known for high quality bananas, one of the world’s top two countries for the fruit [the other being Columbia]. But on top of that, we’re very competitive because our bananas

1481112 BQ Magazine - Sponsor strip 175x20mm_1.indd 1

BUSINESS QUARTER | SPRING 14

SPRING 14

all come from one family, which means a ‘direct sourcing’ opportunity that the marketplace likes.

“BanaBay is effectively the grower and the controller of the supply chain, with no middle men, and that makes us more flexible.

“Also, many of our bananas are big – 30cmplus – because of Ecuador’s temperature and humidity and our harvesting practice. For some markets this size is very good. Our smaller

62

bananas sell in places like the UK, Malta and Ireland, and our larger bananas sell well in Russia and elsewhere in Europe.

“As the year went on we secured huge customers, like Progressive in New Zealand, now owned by the giant Woolworth Group, where we directly supply their Countdown supermarkets. They started by taking one container a week, and this is set to become five or six a week in 2014.”

10/02/2014 16:20:21

SPRING 14

O’Sullivan also spent 2013 evolving BanaBay’s logistical operations, refining “the very best partners for each process”, changing the company’s UK ripener three times, the main transporter three times, and “moulding the business into the best solution”.

“I got to know companies working in the trade – and I’m talking about being up against billion dollar businesses everywhere you turn.

We’ve had to fight hard to keep the company stable and to grow a brand that wasn’t known anywhere, but now we’re ready to grow.”

With cash flow supported by Skipton Building Society, BanaBay already has £7.8m of orders confirmed for 2014, more than three times 2013 volumes. This means shifting an average import of 1.62 million bananas a week – or more than 80 million for the year. O’Sullivan expects a profit margin of 1% to 2% for the year, and then predicts turnover of £20m and profits of 5% for 2015.

The growth, he says, will come from new markets in China and the USA, and from

ENTREPRENEUR

I want us to be a fantastic firm to work for. There’s no point bringing young people in who are just going to be moving on. You want to retain them with the right pay and bonus structures

Transport expert’s road to success Born and brought up in the village of Market Deeping, near Peterborough, Mark O’Sullivan moved to the West Midlands in 1993 to study at Wolverhampton University.

“My degree was in Geography,” he remembers, “but only because it was the subject I’d done best in at A-level. I had no idea what I wanted to do.”

As it happened, Geography was a good choice, as he landed his first job as a logistics analyst at Rieter Automotive in Halesowen in 1996, which made items like seats and interiors as a first tier supplier to Toyota.

“It was a demanding first role but it gave me inroads into logistics, and a great view of design and engineering: from the production facility to just-in-time principles. It was a fantastic job.”

In 1999, O’Sullivan joined transport company Hammond Logistics, based in Bordesley Green, Birmingham, [now owned by Bibby Distribution].

He says: “This gave me a real feel for logistics and operations – everything from service schedules, tachographs and route-planning to customer liaison.”

Then, in 2001, Sullivan moved into a role at TDG Ltd, [now owned by Norbert Dentressangl]. This was essentially running road trucks as a third party logistics company, based at Bromford Gate, Erdington, Birmingham.

“I started moving up the chain: contract supervisor, administration manager, contract manager, operations manager, general manager and then regional general manager looking after six sites.”

By this time, O’Sullivan had fallen in love with the West Midlands, settling with his wife Geraldine in Shirley, Solihull, where they now have two sons – Thomas, aged seven, and Matthew, four.

And then, after nine years with TDG, came the Kebabish curry in 2011 that changed his life, with the creation of BanaBay and foreign business travel, in the last year alone, to Ecuador, New Zealand, Malta, Dublin, Rotterdam and New Orleans.

63

diversifying to include Fair Trade bananas, organic bananas, plantains and pineapples.

With new offices in Birmingham’s Jewellery Quarter, BanaBay Ltd now has five staff: one working on UK sales, two staff with Chinese backgrounds helping to explore the Far East market, one Estonian in marketing and a Spaniard on placement. “For our business, it’s crucial to have a multi-lingual team,” says O’Sullivan, who says he expects his workforce to double by the end of 2014.

He adds: “I want us to be a fantastic firm to work for. A career for life. We’ll support staff through training and development, we’re paying for their driving lessons, and trying to create other employee benefits that they want, involving them in everything in the business.

“There’s no point bringing young people in who are just going to be moving on. You want to retain them with the right pay and bonus structures. It’s all about the people and relationships. If they’re planning and buying into business principles, BanaBay is only going to go one way.”

And one last question for O’Sullivan: having gone bananas, do you actually like them? “I’ve always loved bananas and eat a lot of them – even more since I started this business.” n

BUSINESS QUARTER | SPRING 14

INTERVIEW

BUSINESS QUARTER | SPRING 14

SPRING 14

64

SPRING SPRING14 14

XXXXXXXX INTERVIEW

the ‘art’ of supporting businesses Dr Steve Walker, chief executive of Aston Reinvestment Trust for the last 16 years, tells Steve Dyson how he learnt all about traditional banking during a 27-year career with Barclays Everyone remembers Captain Mainwaring from TV’s Dad’s Army, brilliantly played by the actor Arthur Lowe. The character was an old-style bank manager: safe, cautious and respected, but someone who knew everyone and everyone’s business in the fictional town of Wilmington-on-Sea. That’s how Steve Walker describes Neville Tarratt, bank manager of Barclays’ Stratfordupon-Avon branch in the mid-1970s, whose traditional style influenced his early professional years and showed him the value and rewards of banking.

The BBC’s Money Programme followed a day in Tarratt’s life as a bank manager in 1975, snippets of which can be easily found on the web: gently interviewing a young couple about their mortgage application, visiting local businesses needing finance and overseeing his staff’s careful balancing of loans and securities.

Behind those scenes, Walker was head of securities at Tarratt’s branch from 1974 to 1979, an experience he fondly remembers: “Neville knew everybody in Stratford. He’d walk along the high street and everybody would say ‘hello’. I learned all about the importance of relationships when I was there.

“The branch had various VIPs. We had the accounts of actors Judi Dench and Michael Williams, the writer J. B. Priestley, and I personally opened the account of Ben Kingsley, who was acting at Stratford. But Neville treated everybody as a VIP. He was a personal man, not a company man, and that’s how he treated customers.”

Born in Solihull in 1950, Walker was brought up in Acocks Green, attending Yarnfield Primary School and then King Edwards Camp Hill Grammar School in Kings Heath, where “too much cricket” saw him leave with one A-level – a C in History – and eight O-levels.

In 1969, he began a career with Barclays as a junior cashier at the bank’s Solihull branch, “sweeping out the safes”. He quickly moved

to the Acocks Green branch as a ‘cashier, securities’ on the business side, then to Shirley, qualifying as an Associate of the Chartered Institute of Bankers (ACIB), before landing his formative role at Stratford-upon-Avon.

A glowing report from his mentor, Tarratt, got him a job as ‘advances clerk’ at Barclay’s Colmore Row branch in Birmingham in 1979, where he was promoted to ‘senior advances clerk’, and by 1981 he was corporate manager at the Gooch Street branch, near the markets.

This was where Walker “cut my teeth lending to small businesses, managing recoveries and understanding the world of small business people”, before going to Coventry in 1984 to close Barclay’s Radford branch, merging it with the city’s main high street venue. >>

The branch had various VIPs. We had the accounts of actors Judi Dench and Michael Williams, the writer J.B. Priestley and I opened the account of Ben Kingsley, who was acting at Stratford

65

BUSINESS QUARTER | SPRING 14

INTERVIEW

SPRING 14

“Then I got my first real job lending substantially,” remembers Walker, who became deputy manager at Barclays’ Snow Hill branch in Wolverhampton. He recalls lending to a family business making Bombay Mix in a sweet shop who wanted to expand: “They became Imperial Snack Foods and ended up in a huge factory supplying supermarkets.”

Walker quickly caught the bug of community finance: “I experienced how a small business could grow into a big business with the right kind of financial help.”

However, Walker’s manager at the Wolverhampton branch was almost too enthusiastic a follower of the traditional, merchant banking-style favoured by the late Sir Anthony Tuke, then the chairman of Barclays, with some interesting results.

“He would say: ‘I want to win 4-3,’” recalls Walker, remembering Sir Anthony’s footballing analogy to describe a bank’s successes and

BUSINESS QUARTER | SPRING 14

failures. “‘Go out and do some business, and I don’t mind if you take some risks, but I want to win 4-3.’ But at one stage we were 1-2 down at half time, and it ended up as a score draw. It was a sobering experience, and some were saying it was too risky.”

It was at this stage that Walker felt banking was changing, the real transformation coming with the property crash of 1992, when what banks felt were solid securities returned less than outstanding loans if businesses folded.

An example Walker gives is a hotel valued at £500k, but which after the property crash only sold for £100k, nowhere near enough to repay the bank’s £250k loan. “We thought we’d be OK, but the world had changed.”

In 1993, Walker became number two at a bigger branch in Leamington Spa, Warwickshire, but soon realised banking had moved on. “It was a different manager to work for, and everything was about targets,

66

and taking less risks.” He persevered until 1996, but eventually his job “disappeared”, and he took voluntary redundancy via a twoyear placement to help launch the Aston Regeneration Trust in 1997. At the time, Walker was 47 and his second wife, Elaine, had also taken voluntary redundancy from a managerial position at the bank, and the couple had a five-year-old daughter.

Walker had a new mortgage on the family’s Solihull home, and it was hardly the time to take risks, but he’d become disillusioned with mainstream banking: “Going through my mind was the excitement of moving into a different world: small businesses, social enterprises, the third sector – and the social change that can come from finance.”

The Trust was the creation of Sir Adrian Cadbury, from Birmingham’s famous chocolate family, who with other philanthropists had the vision of helping viable businesses unable to

SPRING 14

get all their finance from the bank.

“What they saw in me was my banking experience,” says Walker. “The fact I’d instructed on ACIB courses, my broad approach to banking systems and my knowledge about access to finance. They saw in me something banking had lost – the importance of relationships and building them.

“At the time, I didn’t think it would keep me for 16 years. But I thought about the networking opportunities, the mentoring I could get from the likes of Sir Adrian, and felt if it didn’t take off, I could get another job.”

As it happened, Walker’s placement became a permanent job as chief executive, and 16 years later he’s still there – playing what he’s proud to call the role of a traditional bank manager.

“Initially it was less money, there was less definite career opportunity and less security, but I was working with people passionate about what they were doing. Now my role is the equivalent to a medium-sized bank manager’s job – but it’s probably safer than it would have been in banking.”

Walker’s initial role was to find enough cash to guarantee the Trust’s first loans, and by the time the organisation started trading in June 1997 he’d gathered £350k in just six months from companies and individuals investing to help small, inner city businesses for social rather than economic returns.

Various banks helped, and companies such as IMI, Severn Trent, Wesleyan Assurance Society and Jaguar, as well as wealthy individuals with social consciences. Walker’s proud to point out that their investments are still all there in the Trust’s annual accounts – along with another £100k of ‘member share capital’ raised since.

Set up as an ‘industrial and provident society’ for the benefit of the community, the name ‘Aston Reinvestment Trust’ soon became a problem as it grew, because it was geographically limiting.

Hence the public name changed to the acronym ART, first with a slogan ‘finance for enterprise’, recently modified into the plainer English strapline of ‘business loans’. ART now loans anything from £10k to £100k to companies who are viable and can show the investment will help create or preserve jobs.

ART is supposed to charge higher interest than banks because it takes more risks. But often,

INTERVIEW

Spreading the word

They saw in me something banking had lost – the importance of relationships and building them Walker points out, “we find that some of our loans are cheaper than the banks”. In 1997, ART lent £200k; in the 16 years since, it’s lent over £12m to 500-plus borrowers, helping to create or protect more than 5,000 jobs.

ART now has a loans portfolio of £3m outstanding to 220 clients. It makes 50 to 80 new loans a year and, because nearly every company is new, it relies heavily on what it calls ‘introducers’ to businesses needing extra finance, paying 1% commission to organisations or individuals who introduce successful loan applications.

Over the years, the money’s come from various sources: cash left over from Area Regeneration Initiatives, grants from Europe and the Department of Trade and Industry, and ART’s own loans from banks like the Unity Trust.

More recently, ART has received Regional Growth Funding through the Community Development Finance Association.

Walker adds: “We’ve got more money to lend now than ever before, and we could possibly have even more with aspirations to be loaning £5m a year by 2018.” n

67

ART’s original model – raising money from member investors to be lent locally – has been replicated in many UK towns and cities, and Steve Walker has travelled the world sharing his experiences and offering advice. He’s also contributed to local and national government policy on ‘access to finance for enterprise’, and served a six-year membership of the National Small Business Investment Task Force, advising the Small Business Service and the Government.

Walker gives examples of enterprises ART has helped to show the diversity of funding: “Betel, a Christian charity that helps people with drug and alcohol addictions wanted a van to use to raise money by restoring furniture, removals and gardening. We made the loan, and have seen Betel grow to six shops.

“At the other end of the spectrum, we helped the chef Glynn Purnell whose bank couldn’t fully finance his plans to open a restaurant. Glynn was passionate about employing local people. We lent him the extra money, and he’s gone on to grow a business employing more than 30 people.

“Both epitomise what lending to support job creation is all about. We lent the last part of what they needed, and the biggest kick is seeing them succeed.”

Walker’s wife, Elaine, eventually returned to work at Barclays as a cashier, and has just taken voluntary redundancy again at the age of 59. Emma, their daughter, is now 21 and starting her own career in public relations. Walker himself, awarded an honorary doctorate from Birmingham University in 2007 for his services to enterprise, is now 63 – but has no plans to retire any time soon.

He adds: “I’ll go on for as long as I feel I’m doing the job well and have a banking knowledge that’s useful. Besides, I’ve still got a mortgage to pay off that carries on until I’m in my 70s!”

BUSINESS QUARTER | SPRING 14

MANDER ON WINE

SPRING 14

enjoy with tv!

Nic Mander, director of catering at the University of Birmingham, samples a Portuguese Red and an Austrian white Having been presented with two wines to give my view on, both caught my attention for different reasons. The Portuguese red made me sit up with interest as I had the opportunity to visit the Porto region a couple of years ago with my wife and we were able to look around the old port production and wineries of the region. The other bottle caught my attention as it’s not every day that you get presented with an Austrian white – a refreshing change, perhaps, from the Sauvignon Blanc and Pinot Grigio we seem to be swamped with.

The red is a Terra d’Alter Red 2010 Terra d’Alter is a relatively new producer founded by Peter Bright, a settled Australian in the region. Focus is given to older, traditional grape varietals of aragonez (tempranillo) and accented with local varieties. The wine is matured in

BUSINESS QUARTER | SPRING 14

French Oak giving that velvety quality.

On the nose it hits you fast with strong fruit aroma and a good indication of the alcohol, listed at 14.5 %. The colour is deep red, indicative of the warm sunshine that the grapes were exposed to. The wine needs to warm slowly in a nice large glass to let it breathe and for the legs to develop.

The taste is a large spicy fruit hit with a lingering finish. There are smooth tannin accents that stay with you as the wine warms in the mouth. It would certainly compliment full flavour cheese and hearty meat dishes. That is not to say that it is overly complex as it is an easy drinking, pleasant red that works as well for you to enjoy whilst watching your favourite TV show, as I did!

Now to the white.

“Fass 4 Wagram”. The “Fass 4”

68

stands for ‘barrel 4’, indicating barrel aging of four years, but these days it is matured in steel tanks. Like many other Austrian wine regions, Wagram’s terroir is affected by its distinctly continental climate.

The Wagram plateau is bordered on its northern side by a ridge 65ft (20m) high that runs parallel to the Danube for around 15 miles (25km). This is an ancient shore of the river, and Wagram’s name comes from the word Wogenrain, meaning shore.

When I first saw this my mind skipped back to wines of old so I was not sure what to expect.

The wine is made from the Gruner Veltliner grape which is the signature grape of Austria.

It is made on the banks of the Danube in north eastern Austria in a microclimate which produces full flavoured white wine. Austria is aiming to get back into the international wine market and this grape variety is their secret weapon.

The colour is a delicate yellow with hints of green and as you swirl and let it breathe the colour changes subtly. The Nose is gentle with fruit acid notes of ripened apples, pears and peppers with a hint of sweetness. There is a hint of spice to the wine and then a soft length balanced with mineral accents. The flavour lingers with you with longer notes as the temperature lifts, it has a nice balance of acid and fruit leaving a rich pleasant profile with almost a creamy texture, although the dryness gets you from time to time or it may just be the mineral content.

This wine would work well with grilled fish with delicate cream herb sauces and would go great with trout or salmon. Overall a pleasant surprise and a lot more interesting than most of the standard fare out there!

Terra d’Alter Reserva Tinto - £10.95 Fass 4 2012 - £16.09. Wines were kindly donated by Connolly’s Wine Merchants and can be bought from stores: Birmingham Livery Street, Connolly’s Wine Merchants Ltd. Tel: 0121 236 3837; Dovehouse, Connolly’s Wine Merchants Ltd 379 – 381 Warwick Road, Solihull Tel: 0121 709 3734 / 0121 236 9269 http://www.connollyswine.co.uk/ sales@connollyswine.co.uk

We make a great team.

When you’re focused on driving your business forward you need to

We can work with you to design, implement, train, secure and

know that your technology is the best it can be, working efficiently

maintain your system, and with TSG SystemCare you’ll always

and problem-free to support the productivity of your people.

know what’s going on within your network. SystemCare’s 24/7

That’s why it’s reassuring to know that we’ve built relationships

remote monitoring and live fix technology also allow the team at

with the perfect mix of technology partners to deliver exceptional

our Network Operations Centre to resolve issues before you’re

solutions across all areas of technology.

even aware of them.

Nothing in the world of technology exists in isolation, so it’s a huge

Much like in the world of F1, business technology continues

advantage that we’re equally at home with the applications that

to evolve so it’s inevitable that you’ll face key decisions.

drive your business as we are with the telecoms, connectivity and

Whether you’re looking for an immediate fix or a long term

infrastructure – both physical and virtual – that underpin them.

solution, call 0845 111 1888.

By Appointment to Her Majesty The Queen Information Technology Services Technology Services Group Newcastle upon Tyne

Scan me

MOTORING

SPRING 14

infiniti – beyond expectations

BUSINESS QUARTER | SPRING 14

70

SPRING 14

MOTORING

Keith Webb, managing director of Advanced Electronics & Logistics, is impressed with the refinement, quality and wow-factor of the Infiniti Q50 Auto Premium – and concludes that, in boxing terms, it’s a serious contender When you drive more than 35,000 miles per year you expect a lot from your vehicle, particularly the standard home comforts with performance combined with economy. When the Q50 arrived it did make me wonder if a relatively new entrant into the luxury car sector could have all of the attributes that have become the norm to the high mileage business executive.

At first glance the Infiniti Q50 looks not dissimilar to a number of other manufacturers’ models.

It is only when you are at traffic lights or in supermarket car parks and you get admiring glances or questions like ‘wow who makes that?’ that you begin to realise it does stand out from the crowd.

My questions were answered immediately – yes it does have the necessary attributes to be a big player in the target market. The cockpit was roomy with the equipment built around the driver, creating a very comfortable driving position. The front seats are embossed with the word Infiniti, which I think gives an expensive feel. I was amazed at the standard of the technology that seemed space-aged compared with what was available only a few years ago. The dual touch screens >>

I was amazed at the standard of the technology that seemed space-aged compared with what was available only a few years ago

71

BUSINESS QUARTER | SPRING 14

MOTORING

SPRING 14

(LCD VGA 8” and LCD VGA 7”) were all user friendly and easy to operate.

Pairing my phone to the car’s radio head unit was probably the easiest experience I have ever had, it took seconds following the on screen commands.

The list of standard equipment and technology is impressive which gives it an advantage over other more expensive marques, where you would have had to order lots of extras to get to the Q50 standard level.

As for the driving experience, I had the Q50 for a week, driving on all types of roads in wet and wintry conditions covering over 300 miles.

In the lower gears it’s no slouch although the engine was a bit noisy. This soon goes away, however, once you are in the cruise – particularly on motorways where engine, road and wind noise are at comfortable levels.

As I did not read the handbook, I was unaware of the engine stop-start system, which came as a shock the first time the engine stopped in a line of traffic.

But I soon got used sitting in near silence, with only the sound of the radio.

BUSINESS QUARTER | SPRING 14

Working in the automotive supply chain, I am fortunate to be able to drive a lot of different cars.

It would be unfair to compare or benchmark the Q50 with others.

On its own merits, I would say it represents an overall pleasing package with solid build quality.

Would I buy one? Yes I would – particularly

72

with its impressive fuel economy and wealth of standard toys. In boxing terms, I would definitely regard it as a contender. n The car Keith drove was an Infiniti Q50 2.2D Auto Premium with an on the road price of £31,900. Additional options are also available for this vehicle. The car was kindly supplied by Infiniti.

EQUIPMENT

BUSINESS QUARTER | SPRING 14

74

EQUIPMENT what a gem of an idea

Diamonds may be forever, but they’re not so rare now that that scientists have discovered how to ‘grow’ them in a laboratory >>

75

BUSINESS QUARTER | SPRING 14

EQUIPMENT

This isn’t fiction. A retired American army officer visits Moscow to buy a security device, but while he’s there a scientist, Dr. Boris Feigelson, takes him aside to show him blueprints for something else, something developed for the Soviet space programme: a tumble-dryer-sized device that makes diamonds. General Carter Clarke cannot believe his eyes, and buys three, ships them to America and founds Gemesis Cultured Diamonds.

The process was deceptively simple: take a seed, a slither of carbon material and put it into a chamber; add varying amounts of gases, including a carbon source, into the chamber; heat to a very high temperature to produce a plasma, in which the gases break down and carbon molecules attach themselves to the seed, causing it to grow; let your CVD, or Chemical Vapour

Deposition, simmer for a few days to a few weeks; remove gases; remove the now larger seed from the chamber and crack it open. There lies a diamond, chemically identical to diamonds out of the ground, as court cases have had to underline.

That initial process had a problem though: as a consequence of the nitrogen content of the gases used, it could only produce coloured diamonds - canary yellows, sometimes lavenders and pinks. If that could be called a problem - after all, in nature coloured diamonds are rarer than the white variety.

But now that has been overcome. Last year Gemesis made a leap forward, by producing the largest, whitest, lab-created emerald-cut diamond to date. Washington Diamonds, another leading ‘diamond grower’, has recently produced a white,

Every lab-made diamond has one characteristic lauded in mined diamonds - each is flawless.

Unsurprisingly, the powerful companies that make their money from mined diamonds have been less than supportive of the idea

BUSINESS QUARTER | SPRING 14

76

EQUIPMENT carat-sized stone too and claims to be months away from two carat stones.

“And that makes it a milestone,” says Clive Hill, Washington Diamonds’ CEO. “A lot of people in the diamond industry have been keen to view such lab-grown diamonds as marginal. But this stone cannot be ignored.”

More than that, every lab-made diamond has one characteristic lauded in mined diamonds: each is flawless. Furthermore, each is around 25% the cost of mined equivalents. Lab-made diamonds have none of the environmental impact of mined diamonds, nor are associated with devastating African wars, and, unsurprisingly, the powerful companies that make their money from mined diamonds have been less than supportive of the idea.

Indeed, might that be it for the aura with which we have imbued a substance which, bar a small twist of chemistry - carbon atoms connecting in super-strong, ultra-hard 3d bonds rather than in layers - is little different from the soft graphite in your pencil? Neil Duttson, of ethical diamond dealers Duttson Rocks, says: “Despite some fear in the industry that lab-made diamonds will somehow take over, they are just different - a different product for a different customer,” says Duttson.

Over time, there is likely to be increased acceptance of the labmade variety: there was similar resistance to cultured pearls when they were first created, and now they, not deep-dive pearls, account for the vast majority of all pearls sold. Coloured gemstones have long been lab-made by similar processes as those now being turned on diamonds; in fact, so extremely rare are large emeralds, for example, that they would be too expensive to sell - most sold have come out of the lab.

In the short term, the diamond market is expected to divide:

between shoppers for whom increasingly influential greenthinking or price is a leading consideration, and those for whom the emotional content of a mined diamond - the fact that it has been created by awe-inspiring natural forces over countless eons - remains important.

“The whole market is touchy about lab-made diamonds,” says Tom Chatham, of diamond makers Chatham. “Stores don’t buy lab-made ones because they don’t have to - yet. There is good supply of diamonds - for the moment. But [unless some yetto-be-devised technology makes the finding of and access to undiscovered diamond pipes feasible] we could be out of mined diamonds within 40 years.

But the debate over lab-made diamonds may be missing the point. What may prove of greater significance could be the application of diamonds in technology. According to Chatham, some billions of carats of softer, lower grade diamonds are already made each year for industrial purposes, their special properties making them ideal for cutting in particular. But, upgraded to the quality now feasible, white diamonds could also be used more readily in semi-conductors, optical devices, water purification systems, high-powered lasers and other electronics of tomorrow. Never mind the radical change to the world wrought by the silicon chip. The diamond chip could be key to making quantum computing a reality, with machines operating at speeds exponentially faster than currently.

Clive Hill says: “The potential for lab-made diamonds in applications are extremely exciting. I’d say that within a decade diamond products will be part of many of the technologies we use everyday. In fact, the very idea of what lab-grown diamonds’ use in technology could do gives me goose bumps. They could really change the world.” n

The whole market is touchy about lab-made diamonds. Stores don’t buy them because they don’t have to - yet. There is a good supply, for the moment, but we could be out of mined diamonds within 40 years

77

BUSINESS QUARTER | SPRING 14

FASHION

ies T BUSINESS QUARTER | SPRING 14

bind

g lon e b ar nce e i w ck es Pr e ’s n clud nedy a l l ne at in . Ken i r a th F . M oup ohn E of e gr d J s r n it are n el les a e W to a har C

that 78

FASHION Maurizio Marinella may have good cause to bemoan the decline in tie wearing and the devastation wrought to those colourful if functionless strips of silk that has come about through the casualisation of the male wardrobe. He is no fan of dress-down Fridays either. “It’s true that there are more occasions for men not to wear a tie but there are still those occasions when a man should wear a tie to show respect,” he argues. “That might be for an important meeting or going to the theatre. Ultimately the tie isn’t just about dressing up - it’s a statement of respect.”

Marinella has spent a lot of time thinking about ties. After all, he is the owner of E. Marinella, the company established by his grandfather Eugenio in Naples - it celebrates its centenary next year - and is widely regarded as maker of the world’s best neckwear. Wearers become members of a kind of unspoken fraternity of

It seems that since the 1970s, our ties have been favoured by politicians in particular. I think they sit around talking to each about about ties at G8 summits

79

power-players with a shared taste in a fine tie.

The Agnelli family - Italian industrialist owners of the Fiat Group - wore Marinelli. The Duke of Windsor and John F. Kennedy wore its ties.

More recently, so have Chirac, Gorbachev, Clinton, Sarkozy and Prince Charles, men of such renown that they don’t need first names.

“Of course, just the fact that they wear our ties is good credibility for the company - you may not like your prime minister, but if he chooses your ties that is some testament,” says Marinella. “We’ve been making ties for a long time but it seems that ever since the 1970s they have been favoured by politicians in particular - I think they sit around talking to each other about their ties at the G8 summits.” Indeed, a lucky break saw the organisers of the G7 in Naples in 1994 present each head of state with a box of six madeto-measure Marinella ties, kickstarting the association.

Certainly, what is perhaps more remarkable is that the company’s profile has grown through almost no effort on its own part. The Naples shop - where the company started out, only in recent years opening in Milan, Tokyo (where it was alone in offering shorter ties for smaller necks), Lugano and London - is just 20 sqm, but draws enough of the great and good to sell some $8m >>

BUSINESS QUARTER | SPRING 14

FASHION of a merchandise a year. It has never offered any kind of mail or internet ordering service.

You want a tie? You go to one of its shops.

Indeed, its high quality and tradition has, as Marinella points out, been a touchstone of pride for the city of Naples through some tough times.

“It’s a small company and has stayed small because my grandfather always wanted to devote his attention to just a few clients,” says Marinella. “We’ve always preferred face to face

sales, which is more intimate and personal. He always opened the shop at 6.30am every day in person and I’ve followed that tradition.

The customer becomes part of the family.”

But what exactly does such a customer get for his £150 or more? And that’s for one tie, by the way. Marinella stresses that the family firm’s ties are all hand-made in Naples using English fabrics, folded seven times towards the inner to provide a luxurious density and lined by artisanal makers that require special >>

It’s a small company, and has stayed small.

We have always preferred face to face sales, which is more intimate and personal.

The customer becomes part of the family

BUSINESS QUARTER | SPRING 14

80

FASHION Only four ties are ever made of any one design.

People often don’t understand the workmanship that goes into making what can seem a very simple item

81

training. Only four ties are ever made of any one design, so each is effectively unique to the customer. “People often don’t understand the level of workmanship that goes into making what can seem to be a very simple item,” Marinella suggests. “But the way it’s made is what gives the elegance in the end. You can tell a good tie from a less good one by looking at the knot. That’s where the balance of the tie is.

It supports the whole tie. It’s its heart. A good knot is a product of good silk, good linings and structure in making.”

For the man who does wear a tie, Marinella recommends a wardrobe of at least five key ties: one self-coloured dark blue, one with blue background and small white motif, one in regimental stripes (with dark blue as the main colour), one in lighter pastel hues, and one bright showy tie. Eugenio’s rule of thumb: light ties should be worn in the morning, dark ties in the evening.

The company is not all ties, however. It has since turned the same attention to detail in making other accessories, including shirts, shoes, small leathergoods, bags and fragrances.

But the heart of the company remains in ties.

As Marinella puts it, “the ties eat all the other items”. It is also why, for all that he worries about the lack of respect, he is not so worried that some men are putting their ties away.

“We also make more and more great scarves too now, for men and women,” he says. “They bring the same kind of colour and decoration to formal dressing. Perhaps scarves may become the new ties one day.” n

BUSINESS QUARTER | SPRING 14

SUCCESS STORY

SPRING 14

copper-bottomed recipe for success 82 BUSINESS QUARTER | SPRING 14

SPRING 14

SUCCESS STORY

Lawton Tubes is a family-owned business in Coventry, whose impressive success in the UK and overseas is driven by a sense of Christian fairness.

Ian Halstead reports.

It’s a world away from the secular values of today’s corporate Britain, but there was a time when religious beliefs, allied to perceptions of social justice, were the bedrock upon which many of our country’s enterprises were established.

The Quaker dynasties founded by Cadbury and Fry remain the most noted, but from the onset of the Industrial Revolution, until the First World War shattered the traditional social order, it was common for religion to impact on companies of all sizes through their owners and managers.

Not in a formal sense – although many Victorian entrepreneurs considered regular attendance at church or chapel a requirement, rather than an option – but as a guiding force which underpinned their decision-making.

Nowadays of course, the corporate community’s values are decided by legions of number-crunchers, their spreadsheets and sharp-suited advisers.

So it’s refreshing to feel a powerful sense that you’re meeting folk who can tell right from wrong, and have absolutely no truck with the latter, when you visit Lawton Tubes’ offices and warehouse on Coventry’s Torrington Avenue.

As the UK’s leading independent manufacturer and distributor of copper tube, the company brands itself ‘the nation’s copper specialist’.

It’s a neat tag-line, and with annual turnover of around £100m from just 60 employees, business development director Robert Lawton is entitled to feel pleased at how he and two brothers run the fourth-generation family firm.

Not least as Lawton’s copper products were widely installed in the 2012 Olympic Stadium and the Athletes’ Village, and are still used by all the UK’s major high street supermarkets – and even by Harrods.

The firm now dispatches close to 1,500 tonnes of copper tube and coil a month, for

myriad uses in engineering, plumbing, heating, air-conditioning, medical gas and refrigeration applications.

However, it’s the philosophy which has guided the family – from the day the business was founded in 1917 making copper and brass tubes for cars, ships and railways – which gets most airing during our intriguing twohour conversation.

Lawton’s musings are littered with such rarelyheard words as loyalty, integrity and fairness, and they’re said with passion and conviction.

Would that his thoughts on the often-thorny subject of annual bonuses could be heard in the City’s boardrooms.

“No-one is paid commission, we don’t think it’s the right way to work, but everyone from the cleaner right up to the chairman gets a year-end bonus, pro-rata to their wages, according to how the business has done.”

Lawton has similar thoughts on how apprentices should be paid: “When we were looking to take on an apprentice, we were told we’d only needed to pay £2.80 an hour.

We weren’t happy at that, so we doubled her starting wage, and now top it up to the national minimum.”

The sense of taking decisions because they were right and fair comes through clearly on other issues too, as does Lawton’s instinctive desire to be honest.

On how a family-owned firm should operate: “Last autumn, we wrote a Family Charter, so that all the family members and every relative knows what’s expected of them. The three of us expect to be here for another 20 years, but we’re planning for the next generation.”

On importing material from low-cost locations: “We had an opportunity to buy hand-polished accessories from India, at far less than they would have cost us to manufacture in the UK, but we knew from the price that they were made by child-labour.”

83

On the family’s investment strategy: “The previous generation put money into a trout farm in Scotland… but that didn’t work. At the moment though, we own an office block in Coventry and a factory in Birmingham, and that’s working very well.”

On loyalty to corporate advisers: “We used KPMG for a while, then they just got too big, so we changed to the Birmingham office of Haines Watts and we’ve now been working with one of their partners, Terri Halstead, for almost 15 years.”

On how his family likes to live: “My wife and I have three kids, and we’re all about traditional values. We have all our meals together, and at the weekends we do things together. I like golf, racket sports and the gym, but my life is my family.”

And on the Lawton clan’s way of life: “None of the family have divorced and we all still live in the area. No-one’s got a gambling habit or other addictions. We’re all Christians, we’re big on values, big on respect and big on trying to do things right.”

Robert is equally upfront when asked for his childhood dreams about where life might take him.

“I remember telling my grandma in my teens that I wanted to be managing director of the business, and a millionaire, by the time I was 30… I didn’t achieve either though,” he says, with a droll sigh and a glance at the ceiling.

However, no visitor, supplier or potential customer should ever mistake the family’s beliefs for naïveté. Just as generations of Cadburys believed in social justice, but demonstrated equal devotion to building their brand through innovative advertising and marketing, there are no innocents in the Lawton boardroom.

Lawton and his two brothers, who are joint managing directors, all trained, qualified and worked outside the family business, >>

BUSINESS QUARTER | SPRING 14

SUCCESS STORY

SPRING 14

Life in the fast track

before they returned.

“I began just helping out in the factory to get pocket money,” he recalls, “because that’s the way the family was, and still is: we very much believe in old-school values.

“All of us went off to make our way in the world and to learn what it’s really like to make a living, and luckily, we all worked in different sectors, which proved very useful when we came back, although it was purely serendipity that it happened.

“I went to university to study third-party logistics, and did a year’s placement with a local firm, Lex Transfleet, as part of my degree.

My time there made me as a person: I was a logistics analyst working on a mass of projects, from FTSE 100 companies right down to SMEs. “Much of my work was creating simulations of how companies might become more efficient, which unfortunately often meant redundancies. At first, people were often hostile to me, but by the end of my time, I felt just as comfortable talking with the cleaners as I did to the directors.

“I ended up staying at Lex for eight years, then went to Leeds working for Stylo Shoes.

That was an interesting place, there were no windows, so you didn’t see daylight from the moment you walked in until you left each day.

“At the same time, my brother Oliver went into sales and management positions, and our brother Giles worked on the production side of companies, so we all picked up skills which were complementary to each other, and also the right skillset for this business.”

Giles Lawton is now managing director (operations) and Oliver is managing director (commercial), and with Robert Lawton they’re aiming to run the business for another 20

BUSINESS QUARTER | SPRING 14

years or so, before stepping aside.

However, that doesn’t mean every member of the management team must have been christened Lawton.

“We have embraced the chance to bring in outside managers,” admits Lawton. ”We’re very experienced in this sector, and financially secure, so we can cherry-pick people who we regard as the best in our industry.

“I think we’re setting down very solid foundations for the next generation, and thinking about the best ways to plan for longterm succession.

“Most of our office and sales staff are around their 40s, so we’re still a young business in terms of personnel. We pride ourselves on being quick to react as a company, and you have to when you’re working in a commodity market like copper. ”It’s OK having a strategy, but prices can spike or fall rapidly. It might be a geopolitical event, such as the uprising in Egypt, a random event, such as when the Chilean miners were trapped underground for two months, or currency movements, especially the euro and the US dollar.”

Between 2011 and 2012, there were repeated price fluctuations, and in one fortnight alone, the value of Lawton’s copper holdings crashed by £1 million.

“We carry an enormous amount of stock, so we can smooth the impact of price changes, but sometimes you’ve just got to focus on seeing the bigger picture and looking to the long-term,” says Lawton.

“Fortunately, our history really helps. Because we’ve got the best part of a century’s experience in the copper trade, no-one starts to panic when trading gets a little tough.” n

84

David Cameron and Vince Cable regularly urge Britain’s manufacturers to look to new overseas customers, and it’s a message which certainly resonates with Lawton Tubes. For much of its history, the company prospered through long-term commercial relationships in its domestic markets, some lasting three decades and more.

However, the last six years have seen significant growth in exports: landing the business in the Sunday Times Fast-Track 200 index, and opening markets in the Middle East, South-East Asia and Australia.

“Copper tubes for medical gas equipment have been a strong seller pretty much anywhere the old British Empire used to be,” admits Robert Lawton.

Last November saw the firm take a stand at a major trade show in Dubai, after years of patient progress in the Gulf state.

“We’ve been looking for distributors and customers there since myself and my cousin first visited in 2007,” recalls Lawton.

“We were quite apprehensive, but we shouldn’t have been. It made us realise just how strong a brand Lawton is, and everyone seemed very pleased to see members of the family on the front-line.

Dubai isn’t easy to break into, it took us two years just to get on the approved suppliers’ list.

“The fact that everything we manufacture complies with British and European quality standards is also proving a strong sellingpoint overseas.”

However, Lawton admits disappointment that, as the company looked towards foreign markets, the Government’s international trade resources focused overwhelmingly on assistance for SMEs. “We turn over more than €50m a year so UK Trade & Enterprise considers us to be a medium-sized business, which rules us out of most of their support initiatives and export programmes,” he says.

SPRING 14

COMPANY PROFILE

Protect your competitive edge – you’ve earned it!

As we continue towards a knowledge-based economy it is those that innovate which will prosper. Protecting underpinning IP is essential to maintain a competitive edge but many UK businesses fail to do so. Dr. Chris Moore, Patent Attorney, explains more In order to sell more products, or to compete in the provision of services, businesses need to differentiate themselves from their direct competitors. Of course, this may be done in terms of price or in terms of a benefit or advantage conferred by the product or service. As globalisation takes hold competing on price is less and less likely to provide a stable basis for a business’ longterm growth and so businesses are faced with innovating as a means to differentiate.

The challenge, of course, is that innovating requires two things 1) a good idea and 2) the wherewithal to bring that good idea to the market. Perhaps in their separate ways, both of these steps require investment in time and money and, in order to justify that financial investment, businesses need to be sure of a return. The underlying intellectual property rights are crucial to providing the return for the investing business.

In the UK we are fortunate to have a very liberal R&D tax credit scheme, whereby companies engaging in R&D activity can obtain tax relief on the charges they have incurred. Moreover, worldwide profits derived from products protected by patents are subject to reduced levels of corporation tax. However, UK businesses engage in less patenting activity per capita than many of our continental neighbours, so what is going wrong?

Firstly, there is an erroneous belief that R&D tax credits are only for businesses engaged in ‘scientific research’ by people in white coats developing ground breaking technologies when, in fact, the qualifying criteria includes projects which seek to achieve any advance through resolution of a technological uncertainty. A very different standard. Secondly, there is a general misconception as to what is required to obtain a patent. The basic tenet is that the invention should be new and that it should not be obvious

Dr Chris Moore, Partner Harrison Goddard Foote LLP,

The manufacturer undertakes a project which overcomes a hitherto unresolved technical problem and produces a better widget. On the face, it may well be that R&D tax relief is available in respect of the project to someone working in the field. These are much lower standards in most fields than is generally thought by most businesses and engineers.

We believe that a proper use of the R&D tax credit scheme, coupled with effective patenting strategies which will, in turn, lead to reduced corporation tax rates for associated worldwide profits can lead to a virtuous and self-sustaining culture of step-change improvement of a business in a knowledge based economy and thereby help secure competitive advantage.

Consider the following, the profitability of a

85

widget manufacturer is under threat in the face of low-price competition from the far east.

The manufacturer undertakes a project which overcomes a hitherto unresolved technical problem and produces a better widget. On the face, it may well be that R&D tax relief is available in respect of the project. At least a portion of that money can then be invested in further product development, market research and, crucially, patent protection. Patent protection will not only provide the business with means to stop others copying the new widget but will also qualify the company for reduced corporation tax in respect of the widget-generated worldwide profits.

Our analysis suggests that, for most products, the breakeven point can be very early in the life of a patent, where the amount of tax relief by way of the Patent Box will more than compensate the business for the investment in the patent protection. That is, there is a financial return on investment and a legal return on investment in patent protection.

Accordingly, the various tax incentives available to businesses in the UK can be used strategically to help secure IP protection for new products and thereby provide a return on the valuable investment made and help to protect a business’ competitive advantage. In order for a business to achieve the proposed return it is necessary for the business to have effective and proportionate tax and IP advice.

For further information please contact 11 Waterloo Street, Birmingham B2 5TB Tel: +44(0) 121 644 4960 Fax +44(0) 121 644 4961 Email: cmoore@hgf.com

BUSINESS QUARTER | SPRING 14

PRINCE’S TRUST

with John O’Reilly regional director of The Prince’s Trust in Central England

reaching out to the vulnerable Spring is a time often associated with rejuvenation and while many of us are progressing positively through 2014, others may not be so fortunate.

Every year, The Prince’s Trust Macquarie Youth Index measures the wellbeing of our nation’s young people. The latest edition, launched in January, makes for a sobering read.

It reveals that almost one in five young people in the West Midlands (18 per cent) said they had experienced mental health problems, from suicidal thoughts to panic attacks, as a direct result of unemployment.

For those that have been out of work for six months or more, the outlook is much worse.

One in 10 youngsters in the West Midlands believe life is not worth living. Equally shocking, a third of young people (36 per cent) said they ‘always’ or ‘often’ feel down or depressed.

We must accept how damaging long-term unemployment can be, sometimes seriously impacting the lives of young people. Young people like Kirsty Drew, 20, from Birmingham.

BUSINESS QUARTER | SPRING 14

SPRING 14

Kirsty was bullied at school and often skipped class. She achieved a few GCSEs but had no idea what she wanted to do next, so began applying for jobs but found she didn’t have the right skills or qualifications to progress.

Slowly her confidence deteriorated and she became depressed and began to experience anxiety. Spending a lot of the day sleeping and feeling demotivated, Kirsty had periods where she stopped looking for jobs and felt like giving up. She remained unemployed for a year and eight months.

She said: “I felt horrible. Being unemployed for such a long time really affected the way I felt and I had to take medication for my depression and anxiety. I wanted the chance to work but nothing was right. It was a vicious cycle and I didn’t know where to turn.”

Kirsty found out about The Prince’s Trust and joined the Team programme, a 12-week personal development course. She then enrolled on The Trust Fairbridge programme, an individually tailored personal development programme, which improved her confidence until she was ready to join the Get into Retail programme with ASDA. The course offered intensive training and experience in the retail sector over four weeks and at the end Kirsty was employed by ASDA where she works today.

Kirsty said: “Slowly but surely I was able to

lower my dose of medication and eventually come off it completely. The Get Into Retail programme suited me perfectly, it has given me the practical experience and skills that I need for the work place. Now I’m employed I have something to wake up for and look forward to work every day.”

With 11,355 young people in the West Midlands facing long-term unemployment, it is frightening to think about the young lives that could be wasted if we fail to give them the urgent support they need.

Our programmes reach vulnerable young people who have lost all hope for the future, providing positive adult role models who can boost confidence, motivation and ultimately give them the support they need to find a job.

The Prince’s Trust tackles youth unemployment in every region and country of the UK, last year working with 5,854 young people across the West Midlands. But we can’t continue this vital work alone – only with your support can we transform even more young lives in 2014.

To find out more about The Prince’s Trust Macquarie Youth Index, go to www.princes-trust.org.uk/youthindex. For more information contact: Jo Sunderland on jo.sunderland@princes-trust.org.uk or visit www.princes-trust.org.uk or call us on 0800 842 842

Almost one in five young people in the West Midlands said they had experienced mental health problems – one in 10 believe life is not worth living

86

Customised Awards – It’s what you put in that makes them unique

With SQA Customised Awards you can create your own unique qualification. We’re a respected accreditation and awarding body.

Our expertise, blended with your business knowledge, can make the right qualification to enhance your staff learning.

Business Development T: 0303 333 0330 E: mycentre@sqa.org.uk W: www.sqa.org.uk/customised

BIT OF A CHAT

SPRING 14

at the airport and the region’s Spar in his company’s early days.

He reveals the story of his successful business in a readable new book called Wake Up and Sell the Coffee, published by Harriman House, which is also full of sound advice for would-be entrepreneurs.

>> No pints of lager and a packet of crisps, please

with Bill Borde

From left, Glynn Purnell, James Martin and Nathan Outlaw

Heard the one about the pub without a bar and no lager? It’s true. The recently-opened Stratford Alehouse, at 12b Greenhill Street, Stratford-upon-Avon, stocks cask ales, wines and ciders, but only serves drinks to tables.

Proprietor and real ale enthusiast Bill O’Brien also refuses to serve lager and hot food, and allows no television, music, gaming machines or children.

He explained: “This is a return to the traditional one-room local.

“Our mission is to keep it simple, give the customer what they want at a decent price

and retain the personal touch.”

Advised by property agents CPBigwood, all drinks at the Stratford Alehouse are priced at £3, with discounts to paid-up Campaign for Real Ale members.

>> Ray’s ‘lust for life’ Barclays boss Ray O’Donoghue told me of his middle-aged hankering for music, and that he’s even taking guitar lessons from a hippy he met in a coffee shop.

The dreamy old punk rocker – now managing director of Barclays Corporate for the Midlands and Wales – said: “I’ve got this idyllic vision of retirement which involves the beach, a surfboard, a barbecue, sunshine… and a guitar.

“I met this chap – a real hippy type – in a coffee shop and we started talking about it.

I now have a lesson with him every Saturday when we strum together, and I love it!”

Go for it Ray: we look forward to your rendition of Iggy Pop’s ‘Lust for Life’!

>> Top chefs’ Brum curry It’s always good to know where tops chefs choose to eat, and so I was chuffed to see three of them breaking naan breads at Asha’s, my favourite curry house.

Birmingham’s Glynn Purnell, lauded as ‘the finest chef to hail from Chelmsley Wood’, was joined on his night out by TV chef James Martin and Cornish restaurateur Nathan Outlaw.

I couldn’t see exactly what they were noshing, but I think their dishes included lobster, lamb and saffron rice at the posh Indian restaurant and cocktail bar in Birmingham’s Newhall Street, named after Indian singer Asha Bhosle.

>> Flying caffeine high Birmingham Airport and several Spar shops across the West Midlands helped business guru Martyn Dawes make his first millions.

Dawes, who was born in Coventry, tried out some of his prototype Coffee Nation machines

BUSINESS QUARTER | SPRING 14

Sir Ranulph Fiennes, left, with Colin Bryan

>> A Fiennes time was had by all at charity event The world’s greatest living explorer told his fascinating life story to roller-coasting business leaders at a charity event in the West Midlands.

Sir Ranulph Fiennes helped raise money for Birmingham Children’s Hospital, Juvenile Diabetes Research Foundation and Kids Out by hosting a charity lunch at Drayton Manor Park & Hotel, near Tamworth, Staffordshire.

The explorer told how he has visited both the north and south poles, was the first person to completely cross Antarctica by foot, has discovered a lost city, and is the oldest Briton ever to summit Everest.

Colin Bryan, the owner of Drayton Manor, which hosts Shockwave – Europe’s first stand up rollercoaster – said: “Sir Ranulph is an inspiration and hearing about his adventures first-hand was a truly memorable experience that will stay with everyone for a long time.”

88

EXECUTIVE SUMMIT MANUFACTURING Wednesday, 26 March 2014 The Great Hall, University of Birmingham 12 noon onwards

Our exclusive manufacturing summit will seek to map out a successful future as well as celebrate our world class capabilities in what is a crucial industry for the Midlands economy. We are calling on manufacturers to join us to ensure it delivers maximum impact in contributing to economic growth and improvement in the sector. www.bqmanufacturingsummit.co.uk For more information about the Summit please contact Kirsty Tarn or Rachael Laschke on 0191 426 6300 or email events@room501.co.uk to book your place and we hopefully look forward to seeing you there to help us shape the future of manufacturing in the region.

EVENTS

SPRING 14

BQ’s business events diary gives you lots of time to forward plan. If you wish to add your event to the list send it to steve.dysonmedia@gmail.com, with ‘BQ events page’ in the email subject heading

MARCH

APRIL

05 BCCG, Chase Business Breakfast, 7.30-9am, Ramada Birmingham NorthCannock, Watling Street, Cannock Staffordshire, WS11 0DQ. £12 members, £15 non-members. 08450 710 191, www.birmingham-chamber.com

2 IoD breakfast seminar, 7.30-9am, Higgs & Sons, Brierley Hill, DY5 1LX. Economic Overview with Paul Forrest. sue.hurrell@iod.com

05 Achievers’ Academy for Women, Coventry Leadership Circle Open Day, 9am-12, Coombe Abbey Hotel, Brinklow Road, Binley, Warwickshire, CV3 2AB. Free. www.achieversacademyforwomen.com 05 BCCG, Business Showcase Breakfast, 8-10.30am, Chamber House, 75 Harborne Road, Edgbaston, Birmingham, B15 3DH. £15 members, £22.50 non-members. 0121 607 1772, events@birmingham-chamber.com, www.birmingham-chamber.com

3 G&KIP, Signature dinner, Village Hotel Inspiration Suite, Tempus Drive, Tempus Ten, Walsall, WS2 8TJ. £35. janet.peacock@griffinandking.co.uk 10 IoD’s visit to Warwick Manufacturing Group, CV4 7AL, 7.30-9.30am. sue.hurrell@iod.com

06 BCCG, Burton Business Networking, 2-4pm, Hoar Cross Hall Spa Resort, Maker Lane, Hoar Cross, Burton upon Trent, Staffordshire, DE13 8QS. £12 members, £15 non-members. 01283 535 640, c.plant@chase-chamber.com, www.birmingham-chamber.com 11 BCCG, Access to Finance, 8.30-10.30am, Chamber House, 75 Harborne Road, Edgbaston. Birmingham, B15 3DH. Free for members, £18 non-members. 0121 607 1772, events@birmingham-chamber.com, www.birmingham-chamber.com 12 IoD Black Country Dinner: ‘Rebuilding the Black Country Economy’, 7pm, Dudley Zoological Gardens, DY1 4QF. Speakers: Tim Leeks, operations director, Jaguar i54 plant; Peter Suddock, CEO Dudley Zoo & Castle; Simon Warren, CEO Wolverhampton City Council. sue.hurrell@iod.com 18 BCCG, Staffordshire Business Club with Chase Chamber, 7.45-9.15am, The Bridge House Hotel, Stone Cross, Penkridge, Stafford, ST19 5AS. £10. 08450 710 191, c.plant@chase-chamber.com, www.birmingham-chamber.com 19 EI seminar, Theft Fraud and Dishonest Employees, 9am-12.30pm, The Innovation Centre, Binley Business Park, Coventry, CV3 2TX. Free. 02476 630 498, marketing@expert-investigations.co.uk 20 IoD breakfast seminar, 7.30-9am, Lanyon Bowdler Solicitors, Shrewsbury, SY2 5DE. ‘Crisis & Reputation Management,’ led by Keith Beech, former BBCWM editor. sue.hurrell@iod.com 21 BCCG, Lichfield Rugby Business Connect Breakfast, 7-9.30am, Lichfied Rugby Club, Cooke Fields, Tamworth Road, Lichfield, WS14 9JE. £10. 08450 710 191, c.plant@chase-chamber.com, www.birmingham-chamber.com 21 BCCG, Chamber Networking, 11.30am-2.20pm, Jurys Inn Birmingham, 245 Broad Street, Birmingham, B1 2HQ. Free. 0121 607 1772, events@birminghamchamber.com, www.birmingham-chamber.com 21 G&KIP, Fish & Chips Lunch Networking, Village Hotel Inspiration Suite, Tempus Drive, Tempus Ten, Walsall, WS2 8TJ. £15. janet.peacock@griffinandking.co.uk 26 BQ Executive Manufacturing Summit – The Great Hall, University of Birmingham (12 noon onwards). www.bqmanufacturingsummit.co.uk @BQSummit_mfg.

Contact Kirsty Tarn or Rachael Laschke on 0191 426 6300 for details.

26 G&KIP, Ladies Lunch Networking, Village Hotel, Motivation Suite, Tempus Drive, Tempus Ten, Walsall WS2 8TJ. £15. janet.peacock@griffinandking.co.uk 26 BDP, ‘Managing in – managing out’, presented by Nicky Purba, 8.30-10.30am, The Wilkes Partnership, 41 Church Street, B3 2RT. Free. 0121 285 3800. g200l@winningmoves.com, www.winningmoves.com/g200l 27 IoD breakfast seminar, 7.30-9am, at IoD Birmingham Hub, 11 Brindleyplace, B1 2LP. ‘A Healthy Strategy Can Bring Financial Rewards’. sue.hurrell@iod.com 28 BCCG, Solihull AGM and lunch, 11am-2.30pm, Arden Hotel & Leisure Club, Coventry Road, Bickenhill, Solihull, B92. £25 members, £40 non-members.

0121 781 7384, solevents@solihull-chamber.com, www.birmingham-chamber.com

BUSINESS QUARTER | SPRING 14

2 BCCG, Chase Business Breakfast, 7.30-9am, Ramada Birmingham NorthCannock, Watling Street, Cannock Staffordshire, WS11 0DQ. £12 members, £15 non-members. 08450 710 191, www.birmingham-chamber.com

15 BCCG, Staffordshire Business Club with Chase Chamber, 7.30-9.15am, The Bridge House Hotel, Stone Cross, Penkridge, Stafford, ST19 5AS. £10. 08450 710 191, c.plant@chase-chamber.com, www.birmingham-chamber.com 16 BCCG, Greater Birmingham Annual Dinner & Awards 2014, 6-11pm, Hall 3, International Convention Centre, Broad Street, Birmingham, B1 2EA. £110. 0121 607 1772, events@birmingham-chamber.com, www.birmingham-chamber.com 17 BCCG, Burton & District Breakfast – ‘Make the Debtor Pay: Effective Credit Control’, 7.30-9am, National Brewery Centre, Horninglow St, Burton upon Trent, Staffordshire, DE14 1NG. £12 members, £15 non-members. 01283 535 640, c.plant@chase-chamber.com, www.birmingham-chamber.com 25 BCCG, Lichfield Rugby Business Connect Breakfast, 7-9.30am, Lichfied Rugby Club, Cooke Fields, Tamworth Road, Lichfield, WS14 9JE. £10. 08450 710 191, c.plant@chase-chamber.com, www.birmingham-chamber.com 25 G&KIP, Fish & Chips Lunch Networking, Village Hotel Inspiration Suite, Tempus Drive, Tempus Ten, Walsall, WS2 8TJ. £15. janet.peacock@griffinandking.co.uk 30 BDP, ‘Acquisitions: How to find them, transact them and finance them’, presented by Gary Ecob, 8.30-10.30am, Clay Rogers & Partners Ltd, 44-45 Water Street, B3 1HP. Free. 0121 285 3800. g200l@winningmoves.com, www.winningmoves.com/g200l 30 G&KIP, Ladies Lunch Networking, Village Hotel, Motivation Suite, Tempus Drive, Tempus Ten, Walsall WS2 8TJ. £15. janet.peacock@griffinandking.co.uk

MAY 08 BCCG, Lichfield & Tamworth Professional Networking Lunch, 12.15-2pm, St. Johns House Hotel, 28 St. John Street, Lichfield, WS13 6PB. £15. 08450 710 191, c.plant@chase-chamber.com, www.birmingham-chamber.com 13 BCCG, Staffordshire Business Club with Chase Chamber, 7.45-9.15am, The Bridge House Hotel, Stone Cross, Penkridge, Stafford, ST19 5AS. £10. 08450 710 191, c.plant@chase-chamber.com, www.birmingham-chamber.com 16 G&KIP, Fish & Chips Lunch Networking, Village Hotel Inspiration Suite, Tempus Drive, Tempus Ten, Walsall, WS2 8TJ. £15. janet.peacock@griffinandking.co.uk

The diary is updated daily online at www.bq-magazine.co.uk Please check with contacts beforehand that arrangements have not changed. Event organisers are also asked to notify us at the above email address of any changes or cancellations as soon as they are known.

KEY: BCCG, Birmingham Chamber of Commerce Group. BDP, Business Development Programme (Winning Moves, great200leaders). EI, Expert Investigations. G&KIP, Griffin and King insolvency practioners.

IoD, Institute of Directors.

90