BQ Yorkshire Issue 23 by We Are UMi

www.bqlive.co.uk

ISSUE TWENTY THREE: WINTER 2014

MY EUREKA MOMENT The day inspiration struck on a boring drive home CRUNCH TIME How a crisp maker responded when the recession bit VALUES SET IN STONE The siblings whose ties are in the fabric of their building A UNIQUE VISION One man’s journey from South Africa to Hull ISSUE TWENTY THREE: WINTER 2014: YORKSHIRE EDITION

THE IN CROWD The ‘rebel’ forcing banks to take crowdfunding seriously

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

YORKSHIRE EDITION

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

£2.95

Every eight minutes we help a business take on the world

Whether building your local network or a global presence, we could help your business achieve its next breakthrough. To find out more, visit Santandercb.co.uk or contact Jackie Cane in our Leeds oﬃce on 0113 285 6203 jackie.cane@santander.co.uk

*Calls charged at local rate

Source: Internal data 2014. Santander Corporate & Commercial is a brand name of Santander UK plc, Abbey National Treasury Services plc (which also uses the brand name Santander Global Banking and Markets) and Santander Asset Finance plc, all (with the exception of Santander Asset Finance plc) authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register numbers are 106054 and 146003 respectively. Credit cards are provided by Santander UK plc. In Jersey, Santander UK plc is regulated by the Jersey Financial Services Commission to carry on deposittaking business under the Banking Business (Jersey) Law 1991. Registered oﬃce: 2 Triton Square, Regent’s Place, London NW1 3AN. Company numbers: 2294747, 2338548 and 1533123 respectively. Registered in England. Santander and the flame logo are registered trademarks. Santander UK plc is a participant in the Jersey Bank Depositors Compensation Scheme. The Scheme oﬀers protection for eligible deposits of up to £50,000. The maximum total amount of compensation is capped at £100,000,000 in any 5 year period. Full details of the Scheme and banking groups covered are available on the States of Jersey website (www.gov.je/dcs) or on request. CCBB 0578 DEC 14 HT

WELCOME

BUSINESS QUARTER: WINTER 14: ISSUE TWENTY THREE This time last year most business leaders were looking ahead to 2014 with optimism, perhaps tinged with a little trepidation. Key markets had finally clicked into gear, after years of struggle, and things were looking up. But there was realism too, in the knowledge that we weren’t out of the woods just yet. In Yorkshire, much of the upbeat mood circulated around a certain cycling race and the vast financial rewards it promised – and it more than lived up to expectations. As we now look ahead to 2015, the UK and regional picture is a few notches rosier than 12 months ago and growth prospects in offices, factories and retail spaces are generally strong. There are, however, a few uncertainties that might play their part, like the general election, Europe and poorly performing global markets. You can read more about our prospects here in Yorkshire on page 36. If the interviews in this issue are anything to go by, though, the New Year is eagerly awaited by growth-hungry entrepreneurs in this region, regardless of what winds are blowing beyond their borders. Famous Yorkshire brand Seabrook Crisps has had more than its fair share of knockbacks in recent years. But, under its enigmatic leader Ken BrookChrispin, it’s back in black and ready to expand in 2015. In these pages you’ll also find out how financial market revolutionist Dan Rajkumar plans to continue transforming the business funding and investment model from his Leeds HQ. We also chart the remarkable rise of internet services pioneer Jonathan Burrows, who turned a teenage idea into a multi-million pound empire with global expansion in mind. Meanwhile, the offspring of one of Yorkshire’s most successful entrepreneurs tells BQ how

they have stepped out of their father’s shadows after his tough lessons in business. Also read how the approach that helped rebuild a nation in South Africa is being applied to Hull and its upwardly mobile economy. And we also catch up with retail sector power player Gerald Jennings as he steps into a new influential business role in the region. If you’re now drawing up your growth plans for 2015, we hope there’s something here to inspire and inform you – and we look forward to seeing you again in the New Year. Andrew Mernin, editor, BQ Yorkshire

CONTACTS ROOM501 LTD Bryan Hoare Director e: bryan@room501.co.uk EDITORIAL Andrew Mernin Editor e: andrewm@room501.co.uk DESIGN & PRODUCTION room501 e: studio@room501.co.uk PHOTOGRAPHY KG Photography e: info@kgphotography.co.uk Nicky Rogerson e: info@nrphotography.co.uk SALES Hellen Murray Business development manager e: hellen@room501.co.uk t: 0191 426 6182 / 07551 173 428 Audrey Atkinson Sales Manager e: audrey@room501.co.uk t: 0191 426 8205

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

THE LIFE AND SOUL OF BUSINESS

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 company profiles are paid for advertising. All information is correct at time of going to print, December 2014. room501 Publishing Ltd is part of BE Group, the UK’s market leading business improvement specialists. www.be-group.co.uk

Associate Sponsors

A law firm which offers more In life and in businessYORKSHIRE EDITION

Expect More www.clarionsolicitors.com

7053_20x175_Clarion_BQ_Magazine_AW01.indd 1

BQ Magazine is published quarterly by room501 Ltd. 06/06/2014 15:00

BUSINESS QUARTER | WINTER 14

CONTE BUSINESS QUARTER: WINTER 14

MY UNIQUE VISION FOR UNIVERSITY

Features

36 LOOKING AHEAD Bussiness experts cast an analytical eye over the coming 12 months

22 THE IN CROWD The entrepreneur forcing banks to take the crowdfunding craze seriously

26 A UNIQUE VISION From South Africa to Hull – one man’s vision of a university’s role in society

32 VALUES SET IN STONE The siblings whose ties are literally in the fabric of their new premises

BUSINESS QUARTER | WINTER 14

50 CRUNCH TIME Crisp factory boss reveals his family firm’s stuggle to survive

72 EUREKA MOMENT How the head of a business empire was struck by inspiration driving home

76 NEW CHALLENGES The man overseeing a £400m shopping centre talks about the challenges ahead

26 BUSINESS VALUES SET IN STONE

TENTS YORKSHIRE EDITION

42 COMMERCIAL PROPERTY

CRUNCH TIME FOR CRISP MAKERS

Behind the region’s biggest deals

56 WINE Lawyer Simon Sherwood samples two festive treats

Regulars

58 MOTORING A ‘criminally’ good Audi is put through its paces

64 FASHION 06 ON THE RECORD Why one of the region’s membership organisations is defying the odds

10 NEWS Who’s doing what, when, where and why across Yorkshire

Josh Sims finds out what’s so special about the world’s sexiest wellies

68 EQUIPMENT The iconic Italian watches that are famed for their macho appeal

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

18 AS I SEE IT Is email killing the art of conversation – and damaging business?

EMPIRE BUILT ON A EUREKA MOMENT

82 EVENTS Key business events for your diary

72 BUSINESS QUARTER | WINTER 14

ON THE RECORD

WINTER 14

>> Bondholders bucking the trend The organisation responsible for promoting Hull has enjoyed a significant surge in members at a time when many would have expected it to struggle While many business membership organisations might have struggled for numbers during recent times of austerity, one such body is thriving against a buoyant local economy. The Bondholders, which is charged with marketing Hull to the world, has seen a significant upsurge in membership in the last six months. Amid what the group calls “a time of unprecedented investment and opportunity for the region”, its base of members has swelled 25% to 250 since mid-2014. Member organisations all make a financial contribution to the promotion of the area, as well as acting as ambassadors for the region. The latest member is Danish-owned DONG Energy, one of the key players in the North Sea offshore wind industry that is bringing huge investment to the Humber estuary. Grimsby is now firmly established as an operations and maintenance base for the offshore wind farms with DONG Energy choosing the town’s port as the location for a new £11m turbine operations and maintenance base. Fellow energy companies Centrica, Eon, Siemens, Vestas and RES Offshore also have operations at the Port of Grimsby, where hundreds of jobs have been created related to the offshore wind industry. DONG and its fellow Bondholders support major investments into Humberside including, on the Humber’s north bank, the development of Hull’s Alexandra Dock. Here £310m is being invested jointly by landowner Associated British Ports and global manufacturing giant Siemens, to create a wind turbine blade manufacturing and assembly facility. Siemens will employ 1,000 people at the facility and the investment is expected to be a magnet for a substantial supply chain cluster. Another major development, the Able Marine Energy Park at Killingholme on the Humber south bank, is expected to attract further >>

BUSINESS QUARTER | WINTER 14

By building membership on both banks of the Humber we’re reinforcing the vital message that the Humber is united in its determination to seize the opportunities for investment and job creation

WINTER 14

COMPANY PROFILE

Why invest in your employer branding? “Building a compelling employer brand is fast becoming a fundamental of good business practice and those in the know are investing heavily to ensure that their EB strategies are enabling them to recruit and retain the very best talent” The ability to attract and retain the best talent is key for any business and never more so than in high growth sectors or markets that have specific skills sets. The employer branding area is often overlooked by even the most successful of organisations and they rarely look to embed the practice in the recruitment process. We guide and encourage our clients to think about the effects on the business that good EB would have and use the recruitment process as the vehicle to drive and communicate this change. It can help strengthen their relationship with existing and potential employees, and external stakeholders through effective communication of the brand’s values, personality and culture. WHAT IS EB? An employer brand refers to the internal and external perceptions key stakeholders, and more specifically current and potential employees, have of your business. How they view the company and how you conduct yourselves in business generally are all external clues as to what it might be like to work for you. An effective employer brand will present your business as an obvious choice and a valued place to work and develop a career. The result will help drive recruitment, support retention and elevate your position in your market place. The keys to delivering strong employer branding is all in the communication of your company values, the business culture and how you want the world to view your brand. When done correctly it should reach into every corner of your business so the values are communicated in the interactions with every department. HR, training, administration and press releases should all be aligned with the employer branding values. WHAT’S IN IT FOR US? A clearly defined employer brand can offer significant benefits. It will improve external interest in your business and drive direct application rates, not only saving you money but giving you a wider pool of talent to choose from

when recruiting. Placing your business ‘front of mind’ and ensuring it stands out will help to drive word of mouth and make bringing the most desirable candidates on board easier. Greater levels of employee engagement and motivation have been proven in numerous studies to result in increased productivity and higher staff retention rates – all of these contribute to retaining the right competencies and knowledge in the business and avoiding ‘brain drain’. The effect that the loss of key personnel can have on a business is widely documented and will ultimately impact profitability. With significant benefits associated with creating a strong employer brand, it’s no surprise many organisations are working on defining or developing this. STEPPING UP A GEAR? When establishing or improving your employer brand you need to consider a number of questions before embarking on creating perfection. What is it about your business that the current staff really value? What’s the current perception of you as an employer? Do you cultivate a different brand to attract staff than you would to attract clients? Where do you want the business to be in five years? What are the key roles that need focus or are hard to recruit? How hard is to recruit and what do people say when they leave? These are

all clues to building a better brand. Normally ownership of employer branding is the remit of the HR department and although this can be successful if you have a progressive and well-resourced HR department, it needs to be a business-wide approach with all elements of the organisation understanding and communicating the benefits. Senior managers and leaders have the largest role to play in the success of any employer branding improvement programme. It needs to be embedded in the culture of the organisation – lived and breathed by the entire business and underpinned by the actions of the senior executive. A compelling employer brand will help drive your business and improve your employees’ performance while delivering greater levels of profitability – exactly what most business managers would like for Christmas. If you would like help incorporating employer branding strategies into your business or recruitment processes, please contact me.

Kenton Robbins | Managing Director Rilwood Associates - www.rilwood.com 08712 888 888 - 07707 811590 - @kentonr

BUSINESS QUARTER | WINTER 14

ON THE RECORD multi-million pound investments which would firmly establish the estuary as the leading centre for a rapidly-growing new UK industry. The Bondholders developed the region’s proposition as the UK’s Energy Estuary, reflecting its strength in traditional sources of energy, which is now being reinforced by the burgeoning green energy industry. Originally, the Bondholders’ remit was to promote Hull and East Yorkshire, in order to attract investment, new jobs and talent, but the organisation has widened its focus over the past 18 months, recognising that the region’s key economic proposition is the Humber itself. In the past year almost 50 companies, who are either based on the south bank or operate pan-Humber, have joined the network. Bondholders Chair Peter Aarosin said: “To promote the Humber as the UK’s Energy Estuary it’s important that our members are drawn from across the estuary, so our membership growth is highly encouraging. “By building our membership base on both banks of the Humber we’re reinforcing the vital message that the Humber is united in its determination to seize the opportunities we have for investment and job creation. “To capitalise upon these opportunities we all need to be working together and speaking with one voice. By joining the Bondholders, companies can really make a difference by promoting the Humber as a great place to invest, to do business, to live and to visit.” Recent Bondholders initiatives have included prominent signage promoting the region for investment and tourism at key gateways including the Port of Hull, Hull’s Paragon Transport Interchange and Humberside Airport. The Bondholders has also produced publications to enable member companies to sell the area to potential recruits. The booklets, which are free to use by Bondholder companies, provide a wealth of information about the region to enable senior executives or young professionals to appreciate fully the many benefits of living and working in the area. Parties interested in joining the bondholders should email leahann.mollon@hull.ac.uk or call 01482 485 240.

BUSINESS QUARTER | WINTER 14

WINTER 14

>> Yorkshire second only to South East for entrepreneurs Of the UK’s 100 most successful entrepreneurs, 14 are from Yorkshire, putting the region second only to the South East, a Management Today report showed recently. The list was based on turnover growth and job creation over the past five years, with Chris Edwards of retailer Poundworld the highest ranked leader from these parts at 12th spot. Others in the list included Philip Meeson, of the Dart Group, behind Jet2.Com, and Andrew Vincent of software firm BJSS. If the region is to increase its representation on such lists in the long-term future – as we all know it has the potential to do – perhaps support schemes will play their part. Goldman Sachs recently published a study showing the impact of its 10,000 Small Businesses UK programme, which was first launched in Leeds and is now run nationally. Of the 250 SMEs in Yorkshire to have received advice on growth strategies through the scheme, 90% are still expanding three years on. Specifically, 88% are enjoying turnover growth. While it is often argued that entrepreneurialism can’t be taught, it can clearly be nurtured. And further back along the business journey from the SME phase, there appears to be a head of steam building around start-up training. Sheffield College recently launched the School for Startups with former TV dragon Doug Richard (pictured`), aimed at turning ideas into businesses. Universities are also focusing on entrepreneurialism. The University of Hull tells BQ in this issue (p26) that it has launched a series of free modules focused on starting and growing a business.

>> Improving Chinese links With UK projects reportedly top of Chinese investor shopping lists right now, it’s encouraging to see Yorkshire leading the way on a scheme to forge closer Sino/British ties. By 2025 China is apparently scheduled to invest £105bn in UK infrastructure, with property, energy and transport sectors set to be the big winners. This comes after it pumped £11.7bn into Britain between 2005 and 2013. The Centre for Economics and Business Research and the law firm Pinsent Masons reports huge appetite in China to invest in filling the UK’s infrastructural needs. With so much to play for, then, British firms have an opportunity to get their share of such investment – if they can overcome the barriers

of working with China. Sheffield University may well have the answer. For it is to pilot a programme run by UK Trade & Investments (UKTI), which will give businesses access to Chinese language, business and cultural knowledge, while giving Chinese students an opportunity to gain experience. Chinese students will be placed into businesses to help them in a range of ways – including advice on business etiquette and in navigating sites such as ebay-equivalent Tmall. Foreign students have long been recognised as an under utilised resource in the fight for export trade and Sheffield University’s pioneering work will hopefully be felt by Yorkshire businesses in 2015.

WINTER 14

COMPANY PROFILE

Nick Taylor, MD of Kingfield Electronics, is bringing it home Having received his first round of RGF funding, Nick Taylor is excited to share his experience with others. Soon to celebrate his business’ thirtieth birthday, Nick Taylor set up Kingfield Electronics from his bedroom in 1985 aged just 16. Since then, Taylor has built a robust company, which is excelling in some of the world’s most competitive markets, including aerospace, defence, oil & gas and process instrumentation. In 2013 Kingfield Electronics secured £250,000 of RGF funding through Sheffield City Region LEP. This supports a £2.5 million project which has allowed the company to move two separate premises into a large manufacturing facility with room for future growth. Taylor explains that there were four strands to the project; a physical move, recruiting new directors to the leadership team, installing new equipment and implementing a new business management system. He said “you end up with four pieces of the puzzle, and you can either do everything or you can do nothing.” Having completed all four pieces of his puzzle by September this year, Taylor is already starting to see the benefits. One of which is the number of new contracts which are rolling in, “We’ve won business that will eventually end up on the 777 aircraft. That’s due to start in January and that’s very exciting for us! That contract has been won purely from being here and having the facilities that we’ve now got available to us. We’ve also won contracts to do with pipeline flow sensing, and another for naval bridge control systems. This is all new business that we didn’t have in the previous premises. “The biggest impact of moving will be on the process flow. In the old premises ‘process a’ may feed into ‘process b’ but these processes may be in entirely different buildings, which could make things disjointed. Now everything is under one roof, we’ve got far better process flow, and we’ve been able to utilise equipment we previously had in storage because we didn’t have room to get it

Left to right: John Warner, Nick Taylor

running. Now everybody is under one roof, all in one place, and everything is visible. That’s of huge benefit! There’s just a huge amount we can do in terms of ongoing business improvement to drive the efficiency of this business. We could never have done that before.” The space has had the additional benefit of allowing Kingfield Electronics to bring back inhouse work which had previously been made in South East China. Taylor explains that “this is quite a big game changer. We are now winning business against offshore competitors based on our new costing model which comes from having top class equipment in our new facility.” So, what next for Kingfield? Taylor says “if we get the next round of RGF funding then we will be looking at four or five key pieces of production equipment – all of which will enable us to keep growing and remain competitive.” When talking about choosing to go ahead with Kingfield Electronics’ growth plan, Taylor said “personally I found this an incredibly difficult decision. Now, I can absolutely see it was the

right thing to do. I think, looking back, I would’ve committed the business to a slow lingering death if we had not moved, because it was totally constrained. I think to make it work, you need two things; one, to be on top of your numbers and two, to get support from people around you. John Warner, Managing Partner at BHP Chartered Accountants was an advocate of this all along and has supported me throughout. Likewise, Chris Perkins at Lloyds Bank was an advocate. I think having some good input is important. Believing in yourself is essential too; believing in the fact that you can do it.”

Start the conversation today. Call John Warner on 0333 123 7171 or visit www.bhp.co.uk for more information on how BHP can help you.

BUSINESS QUARTER | WINTER 14

NEWS

WINTER 14

Start-up figures buoyant across the region, energy sector leads the way on job creation, firms win broadband funding, Employment Allowance take-up rates soaring, affordable homes plan revealed >> Enterprise revival The number of enterprises in Yorkshire and Humberside has increased annually by 3.7%, meaning the region is now home to 156,000 businesses. In the year to March 2014, the number of firms climbed by 3.7% in the region, according to the latest Barclays and BGF Entrepreneurs Index report. In spite of the buoyant start up figures, the report shows that the region saw a 7% drop in the number of partial or full company sales resulting in significant returns for investors. This bucks the trend, as other UK regions saw this number grow. The region also saw a 5.1% slump in the proportion of high-growth companies. Despite these falls in growth and exits, research by the North and West Yorkshire Chamber of Commerce points to a rise in confidence among its members, particularly in the manufacturing and digital sectors. Martin Cuthbert, regional director, Barclays Wealth and Investment Management, Yorkshire and Humberside, said:“Although we have seen a small reduction in the number of deals taking place and in the proportion of high-growth companies, it is positive that the region has seen its population of enterprises grow. This paints an encouraging picture of Yorkshire and Humberside today, and shows that entrepreneurship is now truly embedded in the region’s business psyche.”

>> Business with a heart Social enterprise is thriving in Yorkshire according to figures released by the sector’s biggest investor in the region. Key Fund provides tailored loan investments to businesses with a social or environmental mission throughout the North. Over £3m was invested in the last year, £2,116,221 in Yorkshire and Humber. Social enterprises have a higher start-up rate than traditional SMEs and one in five of start-ups is socially-driven. There are 180,000 in the UK, contributing £24bn to the economy.

BUSINESS QUARTER | WINTER 14

>> Former council boss takes on business role The former chief executive of Bradford City Council, Tony Reeves, has joined business advisory firm Deloitte. Reeves, who was also deputy chief executive of Wakefield Council, joins the senior team at Deloitte as a partner. The firm said the move demonstrated “a clear commitment to the public sector practice”. Based in Leeds, but operating nationally for Deloitte, Reeves will focus on supporting councils to reposition and transform services in light of continuing austerity and increasing demands on social care from an ageing society. Reeves said: “I have been directly involved in all aspects of strategy and policy development in local government for the past 20 years, and I’m looking forward to bringing that experience to bear for Deloitte’s local government clients across the UK.”

>> Digital awareness drive SMEs in Leeds City Region can tap into new grant funding to boost their digital skills. An additional £100,000 has been secured by the Leeds City Region Enterprise Partnership (LEP) to help around 200 small businesses realise the benefits of being online. Roger Marsh, chair of the LEP, said: “We recognise that digital skills are critical to the success of many businesses and there is a clear demand in the Leeds City Region for this type of skills support. “This additional funding will enable us to pursue our ambition of delivering a smarter

digital city region, supporting business to exploit the benefit from the ongoing digital revolution and explore new opportunities both at home and in overseas markets.”

Digital skills are critical to the success of many businesses

WINTER 14

COMPANY PROFILE

Yorkshire sausage maker celebrates business growth After just two years of trading, Bedale sausage maker Heck has already secured listings with most of the major supermarkets. Investing in extensive consumer research, establishing a premium brand and having the vision to develop new products are just some of the secrets of the company’s success according to founder Debbie Keeble Bedale sausage makers Heck have enjoyed a phenomenal second year turnover is expected to have almost doubled to £6m, they’ve secured listings with most of the major supermarkets and a number of innovative product extensions are planned over the next 12 months. “As a family of farmers and sausage producers, we had a strong knowledge base behind us when we launched Heck in 2012 and were well aware that establishing the brand would be our most important investment,” explains Debbie Keeble who founded the company with her husband Andrew. “Rather than just competing head-to -head with existing products, we wanted to reinvigorate the sausage category by attracting younger shoppers with the offer of healthier products made with higher quality and more exciting ingredients. Fortunately, we have been able to bring our four children into the business, harnessing their energy and enthusiasm to drive the brand and engage with younger people from using bright, eye-catching packaging to employing social media.” RAPID GROWTH The company behind Heck, Thirsk Food Logistics, began manufacturing the range of chicken, chorizo and pork & apple sausages as well as bratwurst and farmhouse breakfast, from 3,000sq ft starter units in Bedale in April 2012. It is now producing 100 tonnes of sausages a month for Tesco, Asda, Waitrose, Morrisons and Booths supermarkets, has a staff of 26 people and is soon to move into 14,000sq ft facilities near Ripon. “We are literally bursting at the seams and need to move to substantially larger premises which will also give us space for further growth over the next couple of years,” comments Debbie. “Having established listings with most of the UK supermarkets, our plan is to increase our sales with

Debbie Keeble and Richard Moran.

Having worked with Leeds law firm Clarion since 2005, we knew that Richard Moran and the corporate team would provide the best advice and undertake the rigorous financial and legal due diligence work needed to reassure potential investors. them by extending our product range. Already, we have developed a new range of chicken and beef meatballs and burgers which will launch in 2015 – we’re even come up with a square sausage, designed not to roll off the barbecue and to fit into a sandwich perfectly!” “Looking forward, we think chicken and vegetarian products are the way of the future as consumers become increasingly concerned with health. We also plan to explore producing premium quality cooked sausages, but we are firmly committed to manufacturing all of the Heck products ourselves.” TRUSTED ADVISERS Debbie continues: “Attracting private equity to

help finance our growth and future plans was central to our strategy and it was vital to present the business as professionally as possible. Having worked with Leeds law firm Clarion since 2005, we knew that Richard Moran and the corporate team would provide the best advice and undertake the rigorous financial and legal due diligence work needed to reassure potential investors. Earlier this year, with Clarion’s support, we were successful in securing £1m in growth capital from Panoramic Growth Equity. “Looking after our interests from a legal perspective is not an easy task, but the Clarion team has more than earned its position as our trusted advisers – I’d go so far as to say that Richard understands the sausage making business almost as well as we do! Their advice has been essential and we wouldn’t be where we are today without them.” Richard Moran adds: “With a wealth of knowledge behind them, the Keeble family has a unique insight into the sausage sector. They undertook extensive consumer research and in-depth analysis to spot a gap in the market and then invested heavily in establishing a premium brand which really engages with customers. “Their vision to bring incremental sales into the sausage category by developing innovative products aimed at the younger generation has been hugely successful – to be the only independent sausage maker supplying the major supermarkets is quite an achievement. With growth investment now in place, they have a bright future ahead.”

Can we help you? Call Richard Moran on 0113 222 3212 or email richard.moran@ clarionsolicitors.com. Please visit www. clarionsolicitors.com for more information.

BUSINESS QUARTER | WINTER 14

NEWS

WINTER 14

>> Hotel has new owners Prominent West Yorkshire hotel Oulton Hall has changed hands as part of a takeover of six venues from the De Vere Hotels group. Investment firms Sankaty Advisors LLC and Canyon Capital Advisors LLC have bought a portfolio of six De Vere sites – including Oulton – and transferred their management to QHotels. QHotels said the move will enable it to strengthen its nationwide presence and complement its guest offer with premium golf, spa and leisure facilities. As well as Oulton Hall, the UK hotels changing hands include the 5-star Cameron House in Loch Lomond and the Elizabethan-style Dunston Hall in Norfolk. They will be managed alongside the existing Qhotels portfolio of 21 hotels led by managing director Michael Purtill.

>> Profits up after merger Accountancy firm BDO LLP, which has offices in Leeds and Sheffield, has announced a 27% increase in annual revenues and a 42% increase in operating profits. The results are the first to fully reflect BDO’s merger with PKF in April 2013. All three of BDO’s main business areas showed substantial growth. The audit business increased by 19% to £128m; the tax business grew by 21% to £99m; and BDO’s advisory business grew by 39% to £157m. It has also promoted more than 800 people across the business this year.

>> Energy supplies North jobs The energy sector created more jobs in the North of England than in any other UK region last year – and an extra 1,000 in Yorkshire and the Humber – a study has found. The report shows that the energy sector continues to be a large and stable employer in the North, driven in part by the significant levels of capital investment being

>> Sykes’ role grows The head of the Institute of Directors in Yorkshire and The Humber has broadened her remit to also represent business leaders in the North East region. Harrogate entrepreneur Natalie Sykes, whose interests include property and healthcare, has been appointed regional director North East at the IoD. She will work alongside North East chair Graeme Robb. Sykes was previously chairman of the IoD’s Young Directors for Yorkshire and the Humber.

>> AIMing to save lives

(l-r) OptiBiotix chief executive Stephen O’Hara and Finance Yorkshire chief executive Alex McWhirter

BUSINESS QUARTER | WINTER 14

made across the energy value chain. Powering the UK, prepared by professional services firm EY for Energy UK, notes that while employment centres for the energy sector are ‘relatively spread out’ across all UK regions, the pattern of job creation over 2013 ‘significantly benefited the North of England’.

York-based healthcare business OptiBiotix Health has listed on the Alternative Investment Market (AIM) following a reverse takeover that raised £3.3m. The company is developing products to tackle obesity, high cholesterol and diabetes with the potential to improve lives worldwide. Prior to the company being listed on AIM, Finance Yorkshire invested £520,000 from its Seedcorn fund to support the development of its programmes and human studies. The company raised £3.3m via the reverse takeover and is using the funds to develop the intellectual property of OptiBiotix Health, to commercialise OptiBiotix products and for general working capital purposes. Earlier this year, cleaning technology company Xeros, based in Rotherham, was listed on AIM after a series of Seedcorn fund investments by Finance Yorkshire.

WINTER 14

NEWS

>> Staff increased by a third Leeds engineering consultancy WSP has added 65 people to its team, increasing it by more than a third, in a bumper year of growth in 2014, it has reported. The business has recruited the staff on the back of a raft of new project wins regionally and nationally. Among the most recent appointments, Rob Williams has joined the group from CH2M Hill as technical director in WSP’s infrastructure business in Leeds. He has 33 years’ experience in the industry, having worked on a number of rail projects across the globe including Hong Kong and on the Channel Tunnel.

>> Broadband at the double Leeds and York accountant Garbutt & Elliott has taken advantage of a £3,000 government grant to help small businesses access high-speed internet services. The firm, which has a turnover of £5m and employs more than 100 staff across its two branches, received the £3,000 funding from Superconnected Leeds Bradford towards the installation and connection costs of a new fibre optic line to its Park Place offices in Leeds. The new line has doubled broadband speeds from 10mbps to 20mbps.

>> Deloitte predicts growth Private equity and corporate finance conditions will ease further in Yorkshire in 2015, according to Deloitte, which reported a bumper year of deal-making in the region. The business advisory firm said it has enjoyed a “buoyant” 2014 in Yorkshire and the North East, providing advice and support on more than £950m worth of deals over recent months. Martin Jenkins, practice senior partner for Deloitte in Yorkshire and the North East, said: “Q3 is traditionally quiet in the deals market, but this year we’ve seen a buoyant level of activity Improving client confidence and an increase in the availability of finance has helped drive activity in both the private equity and corporate markets, and despite recent market uncertainties we expect this trend to continue into 2015.”

YOU’RE ALL PLANS AND NO ACTION Robin Alderton (left) with John Duncan from Superconnected Leeds Bradford

>> Firm wins funding Answering4U, a contact centre business in Shipley, has made plans for growth after taking advantage of a funding scheme. The firm, which employs 30 people at Mercury Quays and has a £1m turnover, received £3,000 of funding under the government-backed Superconnected Leeds Bradford programme. The funding enables businesses to increase internet speeds by over 100% and the firm says it has had a dramatic impact on the business. Director and co-founder Robin Alderton says: “We now have a dedicated 30mbps line all to ourselves, whereas before we had up to 20mbps, which at busy times was in effect shared with other businesses nearby. It meant the speed of the broadband was variable but now we can be sure of constant high speeds, which is critical to maintaining and increasing the levels of service that we are committed to providing to our clients.”

>> Cultivating success A company providing arable farmers with solutions to field cultivation problems is set for expansion following a £75,000 investment by Finance Yorkshire. Cultivating Solutions develops and manufactures cultivation equipment designed to increase crop yield and therefore profitability. The business loan from Finance Yorkshire will be used by the Driffieldbased company to develop a new cultivating drill, enhancing the accuracy and efficiency of its cultivation equipment.

Ok, you walk out of that meeting; you have identified the issues, worked out a solution, know what to do next and all your problems will be sorted. You return to your desk and reality strikes; the phone rings, emails arrive, the next crisis looms. The day job takes over again. We have all been there, you know what to do but doing it is a different matter. Many people talk about strategy and planning, but once the talking is over it is time for action. The planning and strategy is part of a process, a fundamental starting point on a road to improvement. Without planning and a strategy, you are like a rudderless ship, heading in no particular direction. Once the planning and strategy has been agreed the work starts. We need to consider how to implement these plans to benefit from the ideas we have. One thing worse than not knowing what to do is knowing what to do but not doing it! Our plan will direct you on how to get from A to B and the implementation will actually get you from A to B and long term will make life simpler, more enjoyable, less stressful, more profitable…whatever your driver is. So take time out to consider where you are in your business life, work out a plan to improve matters, but then, critically, allow time to deliver them, revisit them, review them and work on them to ensure they still meet the original goals. It’s amazing how often so called “good luck” comes from meticulous planning, implementation and review, followed by more planning, implementation and review… odd that! 01756 620000 david.richmond@armstrongwatson.co.uk www.armstrongwatson.co.uk

BUSINESS QUARTER | WINTER 14

NEWS

WINTER 14

>> Lending plan a success A York-based independent financial adviser (IFA) who established a new type of commercial lending fund backed by his clients’ pensions has seen over £27m in lending in the past year, he has reported. Mark Pepper, founder of York-based IFA Grosvenor Financial Consultants, developed what he says was the first innovative pension lending platform of its kind, following extensive work with HMRC and pension law experts. The tax efficient system enables private and company pension pots to be lent commercially against secured investments, typically commercial property developments that require funding for building work. To date, Grosvenor’s clients have been invited to make loans in 21 separate ventures, lending a total of £47m. The fund’s first facility of £7.2m of debt backed Skelwith Developments’ £45m Raithwaite Hall Hotel and Spa complex at Sandsend, near Whitby, and was repaid with interest to exiting investors over 18 months.

>> EA take up rate soaring Around 66,000 employers in the region are benefiting from the Employment Allowance, a take-up rate of 75% and higher than any other region in the UK, data shows. The Employment Allowance (EA) is a reduction in National Insurance Contributions (NICs) that an employer pays on their employees, and is worth up to £2,000 for eligible businesses

BUSINESS QUARTER | WINTER 14

and charities. Within the first six months of its launch 856,000 employers across the UK had benefited from the EA, with an average takeup rate of 68%. The figures for all regions, including Yorkshire and Humber, are expected to increase throughout the remainder of the year. The new data coincides with a recent survey by the FSB amongst small businesses which found that many small businesses have used the EA to invest in staff. So far, 18% have used it to increase wages, 17% to hire additional staff, 12% for training, and 8% for more hours for current staff. In addition, 18% of small businesses surveyed have used it to invest in their businesses through equipment, machinery, or premises.

>> Funding powers growth Yorkshire-based electronic components maker Filtronic is aiming to power through an expected surge in orders in the next six months on the back of £2.1m in new funding. The firm is expecting to raise the money through a share sale ahead of a predicted rise in activity generated through the ongoing rise of 4G technology. The firm anticipates “an increase in activity in the second half of the financial year ending 31 May 2015 and beyond,” it said in a statement. Chief executive Alan Needle said: “We are delighted by the support demonstrated by shareholders for the fundraising announced today. In line with our stated strategy of aligning with OEMs, we are seeing a pick-up in activity associated with the 4G roll out. “This requires a greater investment to prepare for deployment. The funds raised will enable us to strengthen our working capital position to continue to pursue opportunities for both Wireless and Broadband. The Board is confident about the prospects for the business.”

>> China in their hands Sheffield-based valve maker Bestobell Marine has won a major new contract with Hudong Zhongua shipyard in Shanghai. The new contract is to supply parts for use on four shipping vessels owned by oil and gas

giant Teekay to be chartered by natural gas company BG Group. This latest order takes the total number of Chinese vessels using Bestobell’s valves to 14, helping the company secure its position as a major supplier of cryogenic globe and check valves for Liquefied Natural Gas Carriers (LNGC) in China. Duncan Gaskin, sales director of Bestobell Marine, said: “We are delighted to have secured our third major contract with Hudong Zhongua shipyard. Three years ago we had no market share in China and we are now a major supplier of cryogenic globe and check valves for Chinese ships. The use of LNG as fuel for ships is rising rapidly in China and we are excited about the opportunities to further expand our market here.”

>> Game on for MBO Sheffield-based video games firm Sumo Digital has completed a management buyout (MBO), backed by private equity group NorthEdge Capital. Sumo was founded in 2003 and, in addition to its HQ in Sheffield, has an office in Pune, India. It employs more than 240 people and within the industry is regarded as one of Europe’s leading independent game studios. It partners with top tier publishers and has developed a number of high profile titles including Forza Horizon 2 for Microsoft’s Xbox360, Sonic and Sega All Star Racing, and Xbox Fitness. Most recently, it partnered with Sony to develop Little Big Planet 3, which is due for imminent release. NorthEdge has backed the existing management team of Carl Cavers (CEO), Paul Porter (COO), Chris Stockwell (CFO) and Darren Mills (executive art director) to complete an MBO from Foundation 9 Entertainment, the US entertainment media company which acquired Sumo in 2007. The Yorkshire gaming industry is worth tens of millions of pounds to the regional economy, and continues to go from strength to strength.

WINTER 14

NEWS ACTION FROM OUT OF THE BLUE

MBO success: l-r Andrew Marsh, of Barclays, Richard Orrell, Christopher Wood and Phillip Lawton from Ekspan and Matthew Chenery, Barclays

>> Senior managers take charge of engineering firm The senior management team at Sheffield based Ekspan Limited has completed the management buyout (MBO) of the structural engineering specialist. Ekspan Holdings Limited is a new company formed to purchase Ekspan Limited and Ekspan International Limited from Peter Dronfield who founded the group of companies 24 years ago. The 43-strong workforce at Ekspan now operates in a number of sectors worldwide with high profile projects including the first glass walkway for pedestrians at Tower Bridge.

>> Affordable homes planned

>> Zoning in on job creation

Yorkshire Housing is to build 1,500 new social and affordable homes across the region over the next three years following a £200m funding boost. The news comes with the region feeling the full effect of a housing shortage, the company said. The Leeds-headquartered provider, which owns and manages 16,000 social and affordable properties, made the announcement after securing £200m from investors by issuing a bond. Chief executive Mervyn Jones said: “This is our commitment to help tackle the issue of a serious housing shortage in the region. Securing this amount of investment is a huge vote of confidence for what we are doing in Yorkshire.”

The region’s enterprise zones have contributed to a £2bn investment boost since their launch two years ago, according to government figures. Figures show the government’s 24 enterprise zones have created 12,530 jobs, attracted 434 new businesses and generated over £2bn worth of private investment since opening for business. The region is home to three enterprise zones in Leeds City Region, Sheffield City Region and on Humberside. Communities Secretary Eric Pickles drew particular attention to Sheffield City Region’s offering, which he said has created nearly 500 jobs.

BREAKFAS T

For the many business owners out there who have now embraced our view on finding time to think about their business, we have seen them go from not only planning, but action to traction. The common denominator to each business we have worked with is they have agreed small steps and achievable action points. Since embracing the Blue strategic process, we have seen our clients share experiences of family business fall outs and coming back together. We have heard about the white elephants in the room being openly discussed, working partnerships going from frustration with each other to greater cohesive partnerships. Each have sat in the room together and worked as a collaborative team or working groups with our Blue advisors and prepared their plans. One of our most recent family business successes was quoted as saying “We had wanted to develop ourselves and our business with a fresh approach - going in with an open mind, we have quickly gained a different perspective and we have started to change. There is a fascinating blend of gradual, slow, ‘wait and see’ adjustment and some decisive, quick, ‘take the plunge’ change...it’s exciting to be moving to a new way of thinking, building on all the good things we have and leaving some of the not so good things behind and it feels good to start actually putting our plans into action.” The plan comes together when actions are carried out, driven by the business owner with a passion and the determination to see it through. For more information, visit www. armstrongwatson.co.uk/blue or contact David Richmond on 01756 620000 or david.richmond@armstrongwatson.co.uk

03 15

BUSINESS QUARTER | WINTER 14

NEWS

WINTER 14

>> Family firm aims to expand

(l-r) David Gale, managing director Bulk Builders Merchants, Katie Berry, director Myers Group, Paul Gale, director Bulk Builders Merchants and James Berry, managing director of Myers Group

>> Catapulted to success Bradford is to be home to a new government-backed digital industry centre aimed at generating thousands of new jobs, driving innovation and stimulating investment and funding. Bradford is one of three cities, alongside Sunderland and Brighton, to have been chosen as a base for a Digital Catapult Centre. A Local Enterprise Partnership-led consortia will establish the centre, which will open in March. The centres will support the London King’s Cross Digital Catapult Centre and help accelerate the UK’s digital economy by providing entrepreneurs, SMEs, researchers and corporate organisations with a physical space to collaborate on projects. The Digital Catapult will initially support the three LEPs with resources and collaborative support of up to £500,000. This includes the cost of setting up each centre, for developing and delivering agreed projects, and for the use of Catapult resources. The Digital Catapult Centre Yorkshire is led by Leeds City Region LEP and York, North Yorkshire and East Riding LEP.

BUSINESS QUARTER | WINTER 14

>> Top attraction’s new look The Wakefield office of building and civil engineering contractor Britcon has secured a £500,000 contract to design and build extended facilities at Tropical World in Leeds. Tropical World at Roundhay Park is one of the UK’s most popular garden tourist attractions and home to the largest collection of tropical plants outside Kew Gardens. It also houses tropical habitats including jungle, desert, water and night-time zones where visitors can see crocodiles, butterflies, bats, snakes and a family of meerkats with babies. The Leeds City Council managed leisure attraction is to receive an extension to its Explorers Café which comprises a structural steel frame with lantern light roof, new retractable glazing to the large terraced area and associated services and finishes. Britcon will also build new toilet facilities as well as practical improvements for access around the shop.

>> Business activity buoyant New orders and employment are reportedly on the up in the region, with inflationary pressures slowing. The latest Lloyds Bank Yorkshire & Humber PMI data shows continued expansion of business activity, supported by sharp new order growth and rising employment. Inflationary pressures,

Building products and services company, the Myers Group, has acquired Bulk Builders Merchants in Leeds for an undisclosed sum. Huddersfield based Myers Group is a familyowned business that operates companies spanning quarrying and concrete production to builders merchants and skip hire. The business employs 350 people across Yorkshire, has a turnover of £40m and is managed by fourth generation members of the Myers family, James and Katie Berry. The acquisition of Bulk Builders Merchants marks the start of expansion plans that will see the company invest in its quarrying business, Johnsons Wellfield, to expand production of its range of products, and seek to increase its number of builders merchants branches across the region.

meanwhile, slowed from the previous month, with input costs staying unchanged and prices charged inflation easing from September to only a marginal pace. The headline Lloyds Bank Yorkshire & Humber Business Activity Index registered at 58.3 in October, signalling strong growth in activity among private sector firms in the region. This was supported by a sharp rise in new business, with the pace of growth accelerating since September.

>> Deputy PM backs deal Deputy Prime Minister Nick Clegg and local enterprise partnership (LEP) leaders signed off the biggest Growth Deal in the country in November. It is expected to bring £1bn investment to Leeds City Region. Its LEP chair, Roger March, and West Yorkshire Combined Authority chair, Councillor Peter Box, met the deputy PM to agree the deal. It aims to improve transport links, housing and town centre regeneration and develop a skilled and flexible workforce. It will also support growing businesses and build a “resource efficient City Region”. The government will devolve £573m to the LEP and Combined Authority from April.

• Training and people development such as: support on topicson such as: such as: masterclasses on topics • Strategic business planning support topics masterclasses on topics • Search Engine Optimisation • Process improvement and • Digital Marketing Bo • Strategic•business Strategicplanning business planning such as: such as: • Marketing and website support

business efficiencies • Get More Enquiries from your • Social Media for Bus • Digital Marketing • Training and people development • DigitalBootcamp Marketing Bootcamp • Marketing• and websiteand support Marketing website support Website • Advice on the best use of • Search Engine Optim • Social Media for Business • improvement and • . . . and more! •technology Social Media for Business • Training and people and development • Training people development in Process your business • Get More Enquiries f business efficiencies Optimisation • Search Engine Optimisation • Process improvement and • Process improvement and • Search Engine Website • Advice on the best use of business efficiencies • Get More your fromclub Exclusive networking •Enquiries Get Morefrom Enquiries your opportunities including: business efficiencies • . . . and more! technology in your business Website• Access Websiteto regular • Advice on•the best on usethe of best use of Advice networking events technology technology in your business •Listing . . . andonmore! in your business • . . . and•more! our online business directoryclub opportunities including: Exclusive networking GET YOUR BUSINESS • Intensive face to face support from specialist business advisers • Membership of our LinkedIn group ExclusiveExclusive networking club opportunities including: • Access to regular networking events networking club opportunities including: UP TO DATE WITH • Practical and interactive delivered expert • Opportunity to providemasterclasses success stories for use inbyour PR trainers on our online business directory • AccessFREE to networking events • regular Access to regular networking SUPPORT FOR events • Downloads•andListing useful links via the members area our website • Networking opportunities for businesses across WestofYorkshire • Membership of our LinkedIn group • Listing on online directory • our Listing on business our online business directory BUSINESSES ACROSS • Personalised website and online presence reviews • Opportunity to provide stories for use in our PR • Membership of our LinkedIn group • Membership of our LinkedIn group WEST YORKSHIRE* Register now or success find out more: • Opportunity to provide success stories for use in our • Opportunity to provide success stories forPR use in our•PRDownloads and useful links via the members area of our websi Find out more: www.superfastwestyorkshire.co.uk/business SAVE TIME, MONEY AND EFFICIENCY IN YOUR BUSINESS • Downloads and useful links via SAVE thelinks members of ourIMPROVE website • Downloads and useful via thearea members area of our website www.superfastwestyorkshire.co.uk/business 0845 144 0040 0845 144now 0040 ✆ Register or find out more:

GETGET YOUR BUSINESS YOUR BUSINESS UP TO WITHWITH UPDATE TO DATE FREE SUPPORT FOR ✆ FREE SUPPORT FOR Register now or now find out more: Register or find out more: www.superfastwestyorkshire.co.uk/bu enquiries@superfastwy.co.uk ✉ BUSINESSES ACROSS✆ 0845 144 0040 www.superfastwestyorkshire.co.uk/business www.superfastwestyorkshire.co.uk/business 0845✆144 0040 0845 144 0040 enquiries@superfastwy.co.uk ✆ BUSINESSES ACROSS ✉ YORKSHIRE* enquiries@superfastwy.co.uk ✉ WEST ✉ enquiries@superfastwy.co.uk ✉ enquiries@superfastwy.co.uk

• Intensive face to face support from specialist business advisers • Practical and interactive masterclasses delivered by expert trainers • Networking opportunities for businesses across West Yorkshire *ERDF eligibility criteria apply

WEST YORKSHIRE* Find out more: *All support and funding is subject to ERDF eligibility criteria.

www.superfastwestyorkshire.co.uk/business Find out more: 0040 ✆ 0845 144

NEW PARK COURT BARRISTERS CHAMBERS COVERS A WIDE RANGE OF SERVICES INCLUDING: • Mediation • Employment • Commercial/Chancery, Construction Dispute Resolution • Court of Protection • Employment • Environment • Professional Negligence

enquiries@superfastwy.co.uk ✉ www.superfastwestyorkshire.co.uk/business

✉

✆ 0845 144 0040

• Intensive face to face support from specialist enquiries@superfastwy.co.uk business advisers • Practical and interactive masterclasses delivered by • trainers Intensive tothe face support from specialist Based in face the heart of cities of Leeds and accept instructions on a direct professional expert Newcastle, New Park Court Barristers Chambers access basis. business • Networking opportunities for businesses across providesadvisers a service for solicitors which combines Chambers offers modern facilities including the best traditions of the Bar with a modern and comfortable and well equipped conference rooms, West•Yorkshire Practical and interactive masterclasses delivered *ERDF eligibility criteria apply and flexible approach. up to date technology video conferencing.by

Our attitude to quality and client service is uncompromising. Our aim is to provide the highest quality of professionalism, advocacy and advice at all levels of experience and across a wide range of practices.

attitude to quality and client service is Members of Chambers are supported by a team expertOur trainers uncompromising. Our aim is to provide the of pro-active and business-minded staff. The clerks highest quality of professionalism, advocacy and will be pleased to advise on the expertise and • Networking opportunities across advice at all levels of experience and across a for wide businesses experience of individual barristers with a view to range of practices. Chambers are also willing to meeting any service requests. West Yorkshire *ERDF eligibility criteria apply

Our clerks will be pleased to advise on the expertise and experience of individual barristers with a view to meeting any service requests. A: 16 PARK PLACE, LEEDS, LS1 2SJ T: 0113 243 3277 E: CLERKS@NPC-L.CO.UK F: 0113 242 1285

A: 3-7 BROADCHARE, NEWCASTLE UPON TYNE NE1 3DQ T: 0191 2321980 E: CLERKS@NPC-N.CO.UK F: 0191 232 3730

www.newparkcourt.co.uk

, RIN G

WINTER 14

RING

AS I SEE IT

T ’ N

Y H

O D

YOU GIVE M EA CA LL ?

BUSINESS QUARTER | WINTER 14

WINTER 14

AS I SEE IT

Emails have their place but could be killing the art of conversation, writes Rachel Riches, director of sales at Oulton Hall Hotel & Spa Are we hiding behind emails and forgetting the real value of conversation? It has long been my belief that as we develop as humans our mouths will seal up and our digits will grow and assume an increased purpose as we forget the importance of speaking with our customers and colleagues in favour of the eternal email trail. Email has long since become the default mode of communication for many businesses. As a mode of communications it is quick, cost effective and provides an ability to connect with more than one person at a time, but more than that; it now provides that fail safe trail of proof. It’s an increasing sign of the times that many feel the need to have the security that they can prove that an action has been undertaken, a record of a conversation (all be it written) or simply the mentality of covering yourself should the need arise. As I agonised over what to write about and composed and rewrote this piece, it reminded me of those really difficult emails that can take ages to compose to ensure the correct terminology and tone. How much quicker and

more effective to pick up the phone and deal with those complicated issues in person? There is an instant response, two way conversation and an ability to gain a feeling as to the other person’s reaction through tone of voice, and language. This art of conversation, if not nurtured will become an obsolete skill to be replaced by the lifeless substitute of emails. More important still is the value placed by customers in the interaction gained from talking by phone or face to face. Business transactions become personal relationships engendering trust and mutual respect. Don’t get me wrong, I’m not against emails. They are quick, delivered instantly even, but how quickly they are responded to is another matter. Consider your own email habits, how quickly do you reply when an email comes in? Does it depend on if it’s the boss? If it’s a complicated query do you flag it for deeper attention later? Or is it simply lost in the recesses of an overfull inbox? A ringing phone, however, cannot be ignored. Once answered your full attention is on the matter in hand and the person on the other end.

As a business I have been pressing for a return to phone conversations for a while. When checking service levels or reaction to a proposal I find emails are a poor substitute for discussing one to one. The instant action and reaction and nuances of the conversation give a far better result. Building relationships in business is key and I find emails come across as distant and impersonal. On many occasions the tone of an email is misread or the message lost in complicated jargon. How much better to use a conversation to learn about your client, the person behind the business and so strengthen working relationships and demonstrate a real interest in the person and not just the need to “do business”. So I urge you next time you take out your laptop to fire across another email, take a second and ask yourself – ‘am I hiding behind an email when picking up the phone would be a better way to engage?’ You will be surprised at the results and the warmth with which a phone call is received. n

As I agonised over what to write about and composed and rewrote this piece, it reminded me of those difficult emails that can take ages to compose to ensure the correct terminology and tone. How much quicker and more effective to pick up the phone and deal with those complicated issues in person?

BUSINESS QUARTER | WINTER 14

COMPANY PROFILE

WINTER 14

Oulton Hall comes of Age - 21 Years of change and regeneration In 1991 the 125 year lease for Oulton Hall was aquired for £400,000. At this stage Oulton Hall was a roofless Grade II listed building and after 2 years and 20 million pound refurbishment Oulton hall opened its doors for the first customers in June 1993. 21 years later Oulton Hall is now a recognised hotel, spa and resort offering 152 bedrooms, 27 hole golf course, spa and leisure facilities as well as Conference and event facilites. Oulton Hall started life as a simple farmhouse built around 1750 by Francis Blayds and it was John Blayds who extended the building to form Oulton House, using it as a rretreat from his Leeds businesses. John Blayds was a partner in Becketts Bank and invested in Lands at both Rothwell and Oulton. He was the Mayor of Leeds in 1761 and 1744. Unfortunately John died childless so left his eststae to his banking partner John Calverley. John Calverley enclosed the park and raised the bank to screen the Hall from the road , creating a lake, new entry and lodge houses, further enlarging the house in 1918. The Grounds were landscaped by the renowned Humphrey Repton (1752- 1818) . This English Garden designer coined the term “Landscape Gardeneing” and worked for some years with John Nash. He was responsible for the creation of over 200 gardens and parklands . In 1850 there was a disatrous fire at Oulton Hall and subsqently employed William Perkin and Elisha Backhouse of Leeds as architects of a brand new Oulton Hall. These House plans are on display in the Great Hall. Perkins was again employed in 1855 to extedn the service wing, and later a North Wing and large Entrance wing were added. With the death of John Calverley in 1900 the house was not used by the family again. In the Great War Oulotn hall became a convalescent home for wounded officers and also housed Belgian refugees. The Family emigrated to Canada and in 1925 the Hallw as finally sold. West Riding Council changed the use to a mental hospital which opened in 1928 with 250 beds. The asylum closed

BUSINESS QUARTER | WINTER 14

As Oulton Hall enters a new era as part of Q hotels following the recent acquisition, we are looking forward to seeing Oulton Hall come into its maturity as a hotel offering great Yorkshire Hospitality in beautiful surroundings its doors in 1972. There were plans then to develop the Hall into a new police Headquarters but this never materialised. Left empty the building was badly vandalised losing the lead roof and windows, with the interior becoming ruinous. The restoration of the Hall to a luxury hotel has meant many of the original features have been faithfully recreated. Parts of the iron latticework

from the Minstrel Gallery were found in the local museum and they have been used to duplicate the original details seen today. 2014 the hotel now boasts 152 guest bedrooms, many of which were refurbished in 2012 to bring them right up to date. With Grand Public areas serving afternoon teas by our team of butlers, full concierge service, our ethos at Oulton Hall

WINTER 14

COMPANY PROFILE

Counter clockwise: >> Front of the old Hall mid restoration without the roof. >> Back of the hotel as the servants quarters are removed. See the main staircase. >> Renton room a the back of the hotel. Compare with same elevation on page 1. >> The great Hall. >> The front entrance of Oulton Hall

is to bring that extra touch of traditional Yorkshire hospitality and service to modern comfortable surroundings. In 2008 a new Golf Club house, â&#x20AC;&#x153;Claret Jugâ&#x20AC;? was added to increase the facilites for golfers coming to play the PGA Championship Golf course, including a ground floor restaurant and Bar, full golf retail shop and first floor function room with private bar and terrace. The Golf course hosts a number of prestigious events such as The Leeds Cup. We are now looking forward to 2015 as a year of increased focus and change. Andrew Creese was appointed as General Manager of the hotel in

2014 and is driving both standards and transition through many forthcoming changes at the hotel. Andrews plans for the hotel. There is a real feeling of confidence within the hotel on the back of an increase in visitor numbers, following a fabulous summer with the Tour du France coming to Yorkshire and an upturn in corporate activity. With over 7000 hotel beds in the Leeds area we are focused on working closely with local businesses & maintaining relationships by delivering consistently high levels of service and using our uniqueness to differentiate oursleves in the Competitive Market.

Rachel Riches, Director of Sales, Oulton Hall Hotel & Spa M: 07825 845801 DDI: 0113 282 1000 Ext 466 E: rriches@qhotels.co.uk Rothwell Lane, Oulton, Leeds, LS26 8HN

BUSINESS QUARTER | WINTER 14

WINTER 14

ENTREPRENEUR

RULES REWRITTEN BY THE IN CROWD Yorkshire entrepreneur Dan Rajkumar is leading the way in the crowdfunding revolution through his thriving empire Rebuilding Society. Andrew Mernin finds out how he and his peers have turned business lending on its head – and why the world’s biggest banks now want a piece of the action When crowdfunders first stepped out on the financial block in the mid-noughties, banks were fairly indifferent to their presence – if they noticed them at all. This new rabble of alternative financiers were certainly nothing to worry the world’s banking empires as they went full tilt into their game of risk, reward and subprime trading. Then came the crash, corporate bloodshed and the widespread cleaning up of acts on City Street and everything changed. Suddenly banks wanted to learn from the new wave of lenders, according to one of the rising stars of crowdfunding, Dan Rajkumar. Dan is the young entrepreneur behind Leedsbased peer-to-peer lending platform Rebuilding Society which, after a sterling first two years in business, is now in active discussions with a number of major banks. While they seek an entry point into the transparent world of crowdfunding, Dan believes the future growth of his business could be driven by collaborating with banks. Not that the business hasn’t already found its feet. The company enables individuals to lend varying amounts of money – starting from just £10 – to established UK businesses.

To date it has enabled around £4m to be lent to over 80 ventures via hundreds of investors. Its own books are healthy too, with annual turnover expected to double by the end of next year beyond the £1m mark, putting the firm and its 11 staff well into the black. But working with banks is an attractive proposition. “I’m in discussions with three of the five biggest UK banks about how they can reinvent themselves,” says Dan. “The banks are in a difficult position because they need to decide to what extent they are prepared to reinvent themselves, and that involves a significant amount of self-sabotage. “They have traditionally made lots of money by being really selective about the opportunities they want to lend to, and that’s got them into a lot of trouble. They cream the market, choose the best opportunities, and make huge margins on them.” Dan believes the relationship between traditional financial institutions and crowdfunders could play out like that between record companies and internet downloads. After fiercely opposing the rise of music via the web, record label moguls accepted the new dynamic and either adapted to it, or died.

“There is a generation that has embraced the internet,” he says. “We use it to download music and e-books or to book flights. All of these things are available online. But finance and banking have been slow to embrace online. It just makes a huge amount of sense to go online and use a website to deploy your capital into a local business. “It would be great to partner up with one of the big banks. Our growth could come from building a relationship with one of them.” According to Nesta and the University of Cambridge’s UK Alternative Finance Industry Report, an estimated £1.7bn will be lent or invested through alternative finance platforms by the end of the year, up from £0.7bn in 2013. Next year it is expected to hit £4.4bn. Such a growth trajectory, and the growing body of evidence to suggest the UK is nearing a revolution in alternative finance, has swayed Dan to believe that the more competition, the better, in the sector. Alongside its own lending platform, his company generates significant revenues through its White Label Crowdfunding software division, which enables new players across the globe to enter the crowdfunding market. >>

BUSINESS QUARTER | WINTER 14

ENTREPRENEUR

WINTER 14

The whole derisking of banks should not mean the de-risking of entrepreneurs

BUSINESS QUARTER | WINTER 14

“We’ve had interest in that part of the business from all over the world,” says Dan. “We’ve built two platforms in Australia, we’ve just had an order to build one in Vietnam and we’ve also got Norwegian and domestic clients. “The UK is really a beacon for the rest of the world in terms of new finance and there is a real opportunity for the UK to evangelise this industry and show people how it’s done. “In terms of competition, the industry is growing so fast that there’s room for lots of players. Whilst we operate our own platform, we know there isn’t going to be one dominant company. The banking industry has five big banks but there are still lots of small niche banks operating with different customer bases. It’s the same with any industry. The nature of capitalism thrives when competition keeps you at the forefront of what you do.” Rebuilding Society is 34-year-old Dan’s second success as an entrepreneur. The first, launched in 2003 out of days studying computer science at Leeds University, is Web Translations. It provides translation services for websites and continues to trade today, with seven staff plus a network of freelancers, an international client base and annual turnover of around £600,000. “I launched just after the dotcom crash and at the time it was difficult to get things going. But a lot of people were starting to use the web commercially and we were ahead of the curve in a way. I was trying to sell website translation to people before they really had a good ecommerce capability.” Eventually that business took off and it was several years down the line – when he sought the finance to accelerate its growth – that he found the inspiration for Rebuilding Society. “I pushed quite hard to grow Web Translations

WINTER 14

but didn’t really have any assets to put behind it and it was a lack of finance from banks that got me interested in peer-to-peer lending.” Dan’s software background enabled him to develop the platform himself and “it has progressed really rapidly because I can do a lot of the work. When I see something that needs changing, I can get involved quite actively,” he says. Perhaps being born into a businessfocused family – with a bookkeeping mother and software entrepreneur dad – also aided his success. Living in Spain as a child for four years, and a year each in New Zealand and Australia as a young adult, gave him a global perspective that he has applied to business. Looking back to Rebuilding Society’s breakthrough moments, he cites winning the support of an unnamed “godfather of peerto-peer lending” as crucial. His well-appointed team of senior staff and influential non-exec backers have also been pivotal in enabling the Yorkshire firm to stand out in the market. A major challenge, meanwhile, has been what Dan sees as a distortion of the market caused by the British Business Bank’s decision to pump tens of millions of pounds into just one peerto-peer platform. But Rebuilding Society – named to reflect the need to rebuild the financial sector – has fashioned a niche through its approach. “What’s different about us is that we really try to encourage lenders to be as active in the business they are supporting as possible. When you lend to businesses you obviously have an interest in them and you want them to succeed. But a lot of the other platforms and

ENTREPRENEUR

financial institutions don’t make use of that connection, with no real engagement. “But with our community it can get quite involved. Questions go back and forward pretty actively and many of the lenders will have advice or contacts that might help.” Of course, there are risks with peer-to-peer lending and Rebuilding Society is not immune, with three out of the 80+ businesses supported via the site defaulting on their loans. The site uses a strict rating system which businesses must adhere to in order to lessen the risk to investors where possible. The company is also lobbying for changes to the Financial Services Compensation Scheme to cover capital for compensation in the event of a loss. In the meantime, the firm’s base of investors continues to grow, while the types of businesses supported vary wildly, from sweet retailers and beauty products firms to professional services practices. Dan believes his and other platforms will play an increasingly important role in supporting entrepreneurial UK. He says: “One of the key things for entrepreneurs is that they should be really motivated. But so many have just shelved their business plans because they think ‘if the banks won’t take a risk, then I can’t take that risk’. We need to motivate people to dust off business plans, revisit their aspirations and really have a go at growing their business. “The whole de-risking of banks should not mean the de-risking of entrepreneurs. “A lot of entrepreneurs have lost their motivation, enthusiasm and passion for their business, and three or four years in have

ended up serving their business instead of the business serving their life. “The returns are there to be had and many of the businesses we are supporting are growing. They’ve got the demand and the working capital they need. The economy can really strengthen with hard-working entrepreneurs getting the support that they are due.” If peer-to-peer lending does continue on its steep growth curve and become a go-to place for entrepreneurs, how might the financial sector look in years to come? “We certainly won’t have these big traditional ‘too big to fail’ banks. They are just carcasses at the moment, being propped up by the government, while legislation changes continue to make it easier to introduce competition in the sector.” Such rule changes in the future could include the opening up of crowdfunding platforms to ISA holdings. The Treasury is consulting on the plan which, if introduced, could provide a massive shot in the arm to the industry. “We’re going to see an uplift in the amount of money coming into the sector,” says Dan. But even before the change, peer-to-peer business lending is forecast to hit £749m this year and accelerate in the New Year. He fully intends to capitalise on what is shaping up to be a pivotal 12 months ahead. But first he has snowboarding in Europe and kite surfing in South Africa planned, reminding BQ that “businesses should work for you, not the other way round”. Hopefully the platform he built will help other Yorkshire entrepreneurs find a similarly fruitful work / life balance. n

The banks are in a difficult position because they need to decide to what extent they are prepared to reinvent themselves, and that involves a significant amount of self-sabotage

BUSINESS QUARTER | WINTER 14

MY VISION FOR UNIQUE UNIVERSITY 26 BUSINESS QUARTER | WINTER 14

WINTER 14

INTERVIEW

After a starring role in the campus-led revolution that built the Rainbow Nation, Calie Pistorius left South Africa for Hull with a mission to drive positive change there. Five years on, Andrew Mernin discovers how he is bringing new energy to the Humberside economy and transforming the way business and academia work together across the UK When apartheid crumbled and Mandela’s reign dawned, universities in South Africa were pivotal in the rebuilding of a nation. Their ability to catalyse economic and cultural regeneration and breathe new life into the communities they served was a powerful force in helping this new country find its feet. “In that time of transition, universities stepped up to the plate and played an enormous role in nation building,” says Professor Calie Pistorius, who was a prominent player in this higher education-led revival in his homeland. The career-long academic led one of South Africa’s most respected universities, Pretoria, through almost a decade of growth and chaired his country’s influential National advisory Council for Innovation for many years. Today he may not be charged with building a nation from the ground up in his current role as vice chancellor of the University of Hull. He does, however, source inspiration from his days in South Africa and the lessons he learnt about the power of universities to drive change, in his Humberside seat. “In South Africa community engagement became a purpose of the universities and they had a real influence on the broader development and longer term outcome of the regions in which they were located,” he says. “When I was considering coming to the UK, I looked at Hull and the area around it and I thought ‘this is a university which is extremely important geographically, since it is the only university in the region’. I also saw many opportunities for industry interaction, as well as issues in the region around which the university could make a really big difference and that resonated with me.” Having made the move in 2009, his fingerprints are clearly now visible throughout the university’s strategic plans and initiatives. And, with other institutions following Hull’s lead, he’s also making his mark on national policy around universities and their

responsibilities to their local communities. Hull has a strong case for being the pioneer of ‘anchor institutions’, a phrase it coined several years ago and which now dominates the government’s university rhetoric. An anchor university, says a recent parliamentary review, ensures its surrounding region benefits from its presence and activities. “We wrote about our defining function as an anchor institution in 2011. We’re not sure if we invented the term but it’s gratifying to see it being widely used. “Soon after I arrived in Hull and our team articulated the university’s vision, it was great that there was buy-in from the council and the region around us. That was refreshing.” Certainly, there are plenty of numbers to suggest the university is helping to shape the current upturn in Hull’s economic fortunes. Its enterprise centre has created more than 140 new businesses in the last six years, while its Logistics Institute has reportedly helped 530 businesses create hundreds of new jobs and boost their sales by £55m. The university worked with local authorities and Associated British Ports to help lure Siemens and its planned £310m offshore wind manufacturing facility up the Humber. It also contributed to a £26m public and private sector-backed initiative called Green Port Growth, which aims to prepare the region’s businesses for the opportunities of offshore wind. It is also home to the group For Entrepreneurs Only (FEO), made up of more than a hundred of Hull and East Riding’s

leading entrepreneurs representing a joint turnover of £3bn, and 16,000 staff. The group, which won the Best Business Partnership prize in the Guardian University awards 2014, has assisted more than 500 entrepreneurs and start-ups in the past year. Then there are the circa 15,000 students, including 2,600 from overseas across 95 countries, contributing to the economy. The university has invested heavily in its own facilities too, most notably through the £27.4m refurbishment of its library which famously had as a former librarian, the poet Philip Larkin. Work has also been completed on a new biomedical research facility, backed by a £1.5m donation from local businessman Dr Assem Alla. According to Pistorius, the bright outlook of the university is in line with the upbeat mood sweeping through Humberside. The development of Humberside’s status as the UK’s ‘energy estuary’ – driven by investment in tidal and offshore wind energy projects – and its vast port facilities continues at pace. Other sectors are benefiting too, says Pistorius, while Hull’s successful City of Culture 2017 bid is also adding to the area’s sunny disposition. “There is rising optimism here, especially through the energy estuary factor,” he says. “The city of Hull has been here for 1,000 years and its wealth has always come from the sea whether from fishing, whaling or shipping, right up to the next wave, which is going to be energy from the sea. But as well as the Siemens investment and the offshore wind sector manufacturing that’s going to >>

When I was considering coming to the UK, I looked at Hull and the area around it and I thought, this is a university which is extremely important geographically, since it is the only university in the region

BUSINESS QUARTER | WINTER 14

INTERVIEW

WINTER 14

Calie’s career file An illustrious career in academia proceeded Calie Pistorius’ journey from South Africa to Yorkshire. He holds bachelors and honours degrees in electronic engineering from the University of Pretoria, masters and PhD degrees in electrical engineering from The Ohio State University and a masters degree in the management of technology from the Massachusetts Institute of Technology (1994). He is also an alumnus of the Harvard Business School, having completed the Advanced Management Programme (2003). He was vice-chancellor and principal of the University of Pretoria from 2001 to 2009, where he also served as Dean of the Faculty of Engineering, Built Environment and Information Technology, and Director of the Institute of Technological Innovation. He was a member of the National Advisory Council on Innovation (NACI) in South Africa (1998 – 2009) and chair from 2004 until 2008. His other roles today include director of Yorkshire Universities, Humberside aquarium The Deep, Humber Local Enterprise Partnership (LEP), a member of the City Leadership Board in Hull and a Yorkshire Patron. Married with four children, he lives in Cottingham, near Hull.

BUSINESS QUARTER | WINTER 14

happen, there is also the huge chemicals industry here.” He also points to the marine engineering sector, visitor economy and digital industries as contributing factors to Hull’s confidence.“As a university we need to make sure we support the existing industries here, but we also need to make sure we put energy into growing and supporting the emerging ones. “Because of KC [formally Kingston Communications which at one time provided Hull with the only non-BT telecoms network in the country] we’ve got some of the fastest broadband in the world here and there is a significant amount of fibre in the ground. So for many reasons the digital sector is really taking off.” He has seen this at close hand through the university’s boardroom seat at the Centre for Digital Innovation (C4Di) – which will act as a hub for Hull’s digital businesses in a £13.4m facility in the city’s Fruit Market. In all of its interactions with business, the university recognises its role as a problem solver, says Pistorius. This is manifested through the rolling out of new cross-discipline institutes, designed to cater for the private sector beyond its walls, by bringing together the most appropriate skills from across the university to tackle specific challenges. Areas of focus include maritime, energy, digital and creative and regional economic development. “What the world wants is problem-based solutions rather than discipline-based solutions. “Our institutes provide a fantastic interface with industry, enabling everyone to contribute, and it creates an enormous research capacity. “Often disciplines become like silos. It makes it difficult for academics in a department to collaborate with ones from a different discipline because of organisational structure.” Globally, meanwhile, the university is well connected and continues to forge new ties. Like most universities, it collaborates with research counterparts across the globe on various projects. It is also member of a group which brings together coastal universities around the world. Since the 1950s, Hull has been a popular destination for students from West Africa; Hull’s Alumni Association, in fact, had its annual general meeting in Ghana last year. The University also runs teaching programmes in Hong Kong, Malaysia,

Singapore and in the Middle East and a number of growth markets are opening up. At home, the sector has faced sweeping changes – perhaps the most significant of which is the raising of the fees cap from around £3,000 per year to £9,000. “The fees changed the way you run universities. It placed a bigger emphasis on the quality of the student experience, which has always been great at this university anyway. But, also, from a student viewpoint, they now pay three times as much as they did before so they expect three times more. “From the University’s viewpoint, the funding and the amount we are getting is not radically different – it’s just the nature of the funding source has changed. So with the same funding you’ve got to deliver three times the quality.” Another recent trend is the growing demand among students for the knowledge that might help them become successful entrepreneurs. While Hull students run their own entrepreneur club, the university also now offers free modules related to starting up businesses. Throughout Pistorius’ career, innovation has been an area of keen interest. His long term role as chair of the National Advisory Council for Innovation in South Africa, saw him influencing national policy on innovation as a close adviser to government. In the UK he contributes to the national debate on how we might improve our approach to new ideas. He says: “Very often innovation is confused with creativity, but they are not the same thing. There are also two components to innovation. One is creating something new but then you also have to make sure whatever you’ve created is actually absorbed into the market. It’s not good enough just to invent something great. Someone else has to buy it, adopt it or take it further. There is also a difference between incremental innovation, with small changes made over time, and radical innovation, where you start something completely different.” The university is in the process of developing a “regional innovation strategy.” “This will drive regional competitiveness and is a slightly different concept from just targeting economic growth. It will work alongside the institutes we have here,” he says. Perhaps this plan, still taking shape, could become another ‘anchor’ moment for Hull. n

WINTER 14

COMPANY PROFILE

Successful partnerships working to reduce living costs in York A development of 27 new environmentally friendly homes being built by Gentoo Construction on behalf of City of York Council is offering customers the opportunity to achieve lower running costs for their home helping to tackle fuel poverty. The Northern based Construction Company, part of the Gentoo Group, won the contract for Beckfield Lane that provided City of York Council with a condensed programme reducing the time on-site by seven weeks as well as providing further cost savings to the value of £21,000. The scheme, with half the homes for social housing will also help to alleviate a shortage of larger council homes for growing families, an issue that the local council is currently facing. The development consists of: • 8 two-bed 3 person houses • 10 three-bed 5 person houses • 6 two- bed 3 person apartments • 3 one-bed 2 person apartments The three one-bedroomed and six two-bedroomed apartments available for social housing are aimed at tenants aged over 55. These homes will provide suitable accommodation for people who no longer want or need a larger house, releasing houses which can then be let to families in need of a larger home. Cllr Tracey Simpson-Laing, City of York Council’s Cabinet Member for Homes and Safer Communities, said: “We’ve had some 30 expressions of interest in this site from tenants looking to downsize, indicating the very real demand for high quality, well-designed, accessible and manageable homes built by Gentoo for us in the heart of a well-established community.” The nine two-bedroomed apartments and 18 houses will also be built to lifetime homes standards to allow them to be adapted easily as the occupants’ needs change, from raising young children, to working from home to helping accommodate disabilities. Allan Thompson, Managing Director of Gentoo Construction said: “These new homes have been designed and built at a time where some 43%

Left to right Michael Jones, Housing Development Manager for City of York Council, Allan Thompson MD of Gentoo Construction and Cllr Tracey Simpson-Laing.

of those wanting to downsize want to move into a smaller property to cut their bills. “What we have achieved with City of York Council has went above and beyond this, reducing environmental impacts and has incorporated features that will enhance the health and well-being of constructors, occupiers and the wider community. “It has proven to be a very successful partnership with City of York Council who have been a fantastic client to work for.” Built to sustainable homes Code 4, these homes have a 44% improvement in energy consumption rate, compared to building regulations in force at the time the scheme was originally designed. To achieve this, each home has benefitted from high levels of insulation in the walls and photovoltaic cells have been installed on the roofs that will generate free electricity in daylight hours. In addition to this, heat recovery units have been

placed in the homes that reduces the running costs of the heating systems, reduces the risk of mould and condensation and allows for better climate control. Throughout the build process, Gentoo Construction has worked closely with likeminded organisations such as Springboard to promote construction jobs and training opportunities for local people and where possible has engaged local subcontractors as part of the construction team. The scheme is due to be completed in January 2015.

Allan Thompson MD of Gentoo Construction Tel: 0191 525 5110 Web: gentoogroup.com Email: construction@gentoogroup.com Twitter: @gentoogroup

BUSINESS QUARTER | WINTER 14

COMPANY PROFILE

WINTER 14

Building Better Communities

Teachers discuss the Building My Skills initiative

Its been a busy year for the Esh Group in Yorkshire, having put in place a new management team for the region and expanded the business in a competitive construction sector. But the Esh Group has grown through a belief that adding value to the communities it operates in makes good business and is key to building a sustainable business. A cornerstone of this activity in 2014 is the ‘Building My Skills’ programme, which is an initiative that aims to bring over 8,000 hours of workplace skills and inspiration to nine schools in the region. Building My Skills is a partnership between Esh Group and like minded businesses that brings high quality careers information and advice to students and the programme is provided at no cost to schools, clients or Local Authorities. The sessions are highly interactive involving

BUSINESS QUARTER | WINTER 14

students learning about the world of work and being given an insight into a wide range of different business sectors. Andy Gawthorpe, regional managing director of Esh Group said: “Building My Skills brings together businesses from across the region to inspire young people and help them into the workplace. The collaborative effort of many different businesses is a huge benefit to schools who gain access to a wide variety of skills and experience.” Companies that already partner with the Esh Group on the initiative include PwC, Greggs, Barclays, Campfire PR and P+HS Architects. Andy Gawthorpe continued: “Engaging and adding value to the communities that we work in is part of our DNA at Esh Group. It drives our business growth, sits at the heart of our HR strategy and supports our brand. We look at where we can make a sustainable change and act. In Yorkshire,

this approach has led us to inspire young people and support them into work. We have also helped offenders to gain new skills and we’ve engaged with smaller charities across the region.” The company has also grasped the issues of youth unemployment and the skills shortage facing the construction industry to launch an apprenticeship programme. The scheme will train 150 apprentices in the next three years across Yorkshire, Cumbria and the North East. The apprentices will join the Esh Academy and benefit from training and mentoring. The Esh Group also provides support for young people through a variety of schemes. Brian Manning, Chief Executive at Esh Group, explained: “We’re now looking to add real ‘bite’ by offering traineeships and jobs to some of the youngsters who successfully come through our, already very effective, employability programmes

WINTER 14

COMPANY PROFILE

Teachers discuss the Building My Skills initiative

Leeds Force Basketball team, Esh completed The Tetley in 2014

Engaging and adding value to the communities that we work in is part of our DNA at Esh Group. It drives our business growth, sits at the heart of our HR strategy and supports our brand

which we deliver with our business partners. “We hope our business partners will join forces with us and take on board this approach, and that we will be able to build on the opportunities to work we have already put in place with exoffenders and social enterprises such as Changing Lives.” The academy will be managed by Esh Training Solutions, the training arm of Esh Group. Tricia Mullen, Manager of Esh Training Solutions, explained: “There’s a selection process to follow which will vary depending on the academic stage - school students for example can start by being taken into the ‘Esh Academy Talent Pool’ and then progress onto traineeships, training contracts and employment.” She continued: “We have a huge variety of opportunities available - from construction roles through to finance, administration and support

– Esh Group has a wide range of jobs needed to deliver its work. Site based work ranges from pipe layers or general operatives through to technical roles in quantity surveying and engineering. Esh Group has also built on its love of Basketball, they are long term sponsors of the Newcastle Eagles, with a multi-year sponsorship of Leeds Force, the city’s first premier league basketball team. The sponsorship will help build the profile of the company in the region and underpin a schools programme that will see the players inspire budding athletes. Leeds Force Commercial Director Mark Mills sees this partnership as an important part of the club’s long term future, saying “It is great to have a well-respected organisation such Esh Group on board for our inaugural BBL season. It was vital that we found a partner that understood and embraced both the professional BBL team as well as our aspirations in the community. I expect this relationship to go from strength to strength as both organisations strive for excellence in the future” Brian Manning, chief executive of Esh Group said: “We jumped at the opportunity to partner with Leeds Force. They share our commitment to supporting the local community and an ambition

to grow participation in the sport. “Esh Group has been involved in basketball in the North East over the last six years, starting with wheelchair basketball and backing the Newcastle Eagles Foundation work in the communities. We have been hooked on it ever since. The move to assist Leeds Force is an obvious one given our expanding construction workload across Yorkshire and Humberside.” It is clear that responsible business behaviour is more than a vanity project for the Esh Group, it is about people throughout the company and the way they act everyday. As we emerge from recession, business has the opportunity to shape a recovery that is inclusive and sustainable for the communities it operates in and Esh Group is showing it can pay dividends.

For more information visit www.eshgroup.co.uk or call 0113 399 3030

BUSINESS QUARTER | WINTER 14

ENTREPRENEUR

WINTER 14

BUSINESS WITH FAMILY VALUES SET IN STONE Tough business lessons from their father – one of Yorkshire’s most prolific entrepreneurs – have paid off for Alex Leslie and Fay Briddon through their retail firm Direct2Mum. Andrew Mernin talks baby products, sibling rivalry and stepping out of the shadows at their new HQ An astonishing surprise awaited the brother and sister team behind retailer Direct2Mum when they expanded into their new home earlier this year. Rapid growth in their baby products firm led siblings Alex Leslie and Fay Briddon to move it from a 13,000 sq ft site into a neighbouring 105,000 sq ft premises on the same South Yorkshire business park. The move came amidst an accelerated recruitment drive which has seen the company’s team grow from 11 at the start of the year to 50 now. With no staff available to help them on the day the new reception flooring arrived, they set about tearing up and replacing the old dirty matting themselves. And were struck dumb when they found two sets of children’s handprints in the concrete below. Not just any handprints, however, but their own. “Dad forgot he’d done that,” says Fay. “It was a real surprise when we found them.” ‘Dad’ is Graham Leslie, the entrepreneur who founded and, in 2008, sold Yorkshire based pharmaceutical empire Galpharm International for US$88m. Besides creating the UK’s biggest supplier of non-prescriptive medicine, her father was also behind the world’s first greenfield 25,000 seat stadium for football and rugby – now home to Huddersfield Giants

rugby league team and Huddersfield town AFC, of which Leslie senior was at one time chairman. The building Alex and Fay recently moved into at Dodworth Business Park was formerly home to Galpharm and then its subsequent parent Perrigo Group. The Leslie family had not set foot on the site for several years until baby products firm Direct2Mum’s arrival in spring this year. Fay, 26, says: “We now have a picture on the wall of Alex and I as kids helping to move rocks and boulders when they were building the site. We also did up dad’s old office and it was quite emotional for him to come back for the first time in six years. We pretty much used to spend our summer holidays in the warehouse.” Direct2Mum was launched by Alex, Fay and their father, the chairman, in 2010. This year it is expected that the firm and its retail-facing division, Babyway, will see turnover double to £6m, with a target of hitting £20m within five years. Until this year it has thrived as an online retailer, taking advantage of increasing numbers of customers being pushed online by the reduction of stores in chains such as Mothercare. At the same time, the size of the baby products market in general has inflated in terms of sales volume and the range of available products. But having made its mark

online, the company opened its first bricks and mortar store in June and is planning to roll out several more across the UK by 2019. The opening of the 3,000 sq ft shop close to its headquarters followed this year’s acquisition of nursery stockist Bambino Direct for an undisclosed six-figure sum. That deal increased its product portfolio to more than 10,000 across 80 big name labels like Silver Cross, Maclaren and Mamas and Papas. Alex, 28, who’s MD of the firm, with Fay listed as the brand director, says: “We don’t have any high street ambitions just yet. The problem there is that a lot of the products are quite bulky and getting them to your car can be tricky. So our future growth lies in out-of-town sites. Having a store is really important because I would never expect anyone to spend the amount of money that some pushchairs can range to without first testing them and making sure they’re right for their daily lives. That’s why we’ve installed a test track in the store,” he adds. Direct2Mum started when Babyway – then a subsidiary of the Leslie family empire – was let down on an order. Babyway supplies baby and toddler products to retailers and had ordered £100,000 worth of pushchairs for a major customer. A last minute cancellation from the client left the >>

Your business is our business Start the conversation today. Call us on 0333 123 7171 or visit www.bhp.co.uk

BUSINESS QUARTER | WINTER 14

WINTER 14

ENTREPRENEUR

BUSINESS QUARTER | WINTER 14

ENTREPRENEUR Yorkshire business with truckloads of unreturnable and unwanted stock. Quick thinking Alex, then working at Babyway, managed to make a healthy margin selling them through Amazon. Enter Fay and her dad to draw up a brand and plan of market attack. Then came a string of positive milestones (including an order from no less than 10 Downing Street) which resulted in Direct2Mum evolving from a side-line business to an entity twice the size of the company it was spun out of. Alex says: “We sold the pushchairs and realised we’d made a retailer’s margin on something we expected to make a wholesaler’s margin on. So the natural progression for us as entrepreneurs was to see the opportunity and pursue it. We put all our products online and it went really well.” The fact that the UK economy was still relatively sluggish when the business launched in 2010 didn’t seem to matter, says Fay. “We initially started selling Babyway products which are good quality but also relatively affordable, so we came into the market at just the right time. If we’d started with all the branded, big-ticket items we do now I don’t think it would have done as well. “But also, parents with first borns will do whatever they can to get the best for their baby and I’m not sure the nursery industry felt the recession as much as other retail sectors.” As Alex and Fay recall their story, the shadow of their father looms large. But any suggestion that business success was served up on a plate for them belies the lengths they have been to to prove themselves worthy of working with their dad. His journey from the Teesside dole queue to the entrepreneurial elite was measured out in years of hard graft. And he has done everything in his power to instil that in his children. After leaving school Alex was sent to work at Galpharm for a wafer thin pay packet – minus board and lodgings – sweeping the warehouse. He did that for some time, until he eventually got his big promotion, onto the pill packing line. Here he spent his days putting tablets into packets. He wanted

WINTER 14

to work in sales, but with no such vacancies available at Galpharm he was seconded to another firm where he proved himself to be among their top performing salesmen. He returned to Galpharm to work on supply chains and then on to sales for BabyWay. He says: “At Galpharm I was always told by members of my family to be whiter than white because you are susceptible to preconceptions about your capabilities or perhaps that you will behave in a certain way because you know you won’t get fired. But actually the reality was that I would probably have been more readily fired than someone not in the family. “There are preconceptions about family businesses that employ sons and daughters. Those that do it successfully are the ones that make their kids work even harder to earn their place in the business. I was always treated very fairly by people at Galpharm, however.” Fay’s career meandered accidentally into the family business. After a stint as a primary school teaching assistant she enrolled on an equine business management degree to forge a path working with her “first love” of horses. Part of the course required work experience within a business and Leslie HQ was an easy fix. But her role doing office admin quickly escalated as Direct2Mum swept her into entrepreneurialism. Processing orders turned into management of customer service teams which eventually paved the way for her key role driving the growth of the business. “It was important to work our way up rather

than being handed a role,” she says. Even today Alex and Fay say their father remains as tough a taskmaster as ever. And their business is significantly stronger for it. Fay adds: “Dad never wants us to just settle with where we’re at. He wants us to always be striving to reach more.” And being from pedigree entrepreneurial stock, it’s perhaps unsurprising that this striving for achievement extends beyond their retail business. Both Alex and Fay have interests in the property and construction sectors, while Fay also owns a sandwich shop run by her husband, a former military man decorated for his bravery in Afghanistan. Their main focus, however, is their retail business. As well as the challenge of passing on the baton of leadership to a younger generation, however, sibling conflict is also a common cause of crisis in family businesses. “Obviously we’re allowed to say things to each other that other people in the business aren’t and perhaps we can be a little but crueller to each other,” says Alex. “But I think we’ve developed the knack of being different people when we’re in the building. After work we can go for a beer together and it’s like we’ve not seen each other all day, although we’ve been sat opposite each other at work. With sales soaring and plans in the pipeline to grow their business across the UK and overseas, Fay, her brother and dad seem to have found the perfect formula for a thriving family firm. n

Your business is our business Start the conversation today. Call us on 0333 123 7171 or visit www.bhp.co.uk

BUSINESS QUARTER | WINTER 14

WINTER 14

COMPANY PROFILE

From theory to practice – The University of Law pioneer new ways of working On 4 November Apprenticeship Ambassador for Business Gordon Birtwistle MP and John Latham CEO and President of ULaw unveiled the university’s Articled Apprenticeship scheme at the Houses of Parliament. A credible and realistic alternative to the traditional route to becoming a solicitor for school leavers. The Articled Apprenticeship scheme will enable successful candidates to undertake a 6-year route to qualification as a solicitor, consisting of a 4-year part-time undergraduate degree (LL.B) and an 18-month part-time postgraduate qualification (LPC) while working. This means that aspiring lawyers can start their career directly after leaving school. It could also mean that people who may want to start law as a second career would have an opportunity to get into law and get on with their professional learning. We believe this new route to be a solicitor will be attractive to employers whose main business is legal services, as well as companies and business who have in-house legal teams. The benefits to the trainee are that they will be paid a competitive salary while the cost of the tuition fees will be borne by the trainees. On successful completion of the programme, the trainees will become fully qualified as a solicitor in England and Wales. The benefits to the employer, include growing their own talent, being seen as a learning organisation and having a skilled and motivated workforce. The Solicitors Regulation Authority recently changed the rules around training procedures required for solicitor training, which means that since 1 July 2014, trainee solicitors can now combine their on-the-job “period of recognised training” while studying. John Latham, CEO and President, ULaw, said: “The Articled Apprenticeship is about opening doors to the profession and building inclusivity and diversity in the profession. The Apprenticeship will enable candidates to earn while they learn. Articled Apprenticeships can be used to help current employees develop further and to recruit

Gordon Birtwistle MP & John Latham

The Articled Apprenticeship is about opening doors to the profession and building inclusivity and diversity in the profession. young talent. They offer an alternative route to qualification as a solicitor for those who would rather be in a job whilst they study, thereby reducing their debt whilst still qualifying as a solicitor in six years. They also provide a route for legal employers to grow their own talent and demonstrate their long-term commitment to developing their employees”. Apprentices will attend around 45 workshops each year, including revision and workshops. Participants will study by regular attendance at ULaw’s new Leeds City Centre, for example, two evenings per week or one day per week. The employer will provide a salary to the

employee during the six years of study and can decide whether they will cover all or some of the cost of study. As the longest established legal education provider in the country, ULaw brings unparalleled legal training expertise, outstanding employability opportunities and the chance for people undertaking the programme the chance to experience a university environment during their learning. The potential from partnerships such as this is huge, and the programme promises to be of great benefit to employers within the Leeds City region and potential employees taken on as Articled Apprentices.

Contact the Leeds Centre on 01483 216682 or find out more at www.law.ac.uk

BUSINESS QUARTER | WINTER 14

INSIGHT

WINTER 14

in association with

OPTIMISTIC DESPITE ELECTION CONCERNS As a year of green shoots, global crisis and the Grand Depart comes to a close, what does 2015 have in store for your business? Here experts from across the region make their forecasts for the year ahead Despite much uncertainty surrounding world economies, there are plenty of reasons to be optimistic here in the UK as we enter 2015, UBS Wealth Management’s Bill O’Neill tells BQ While the UK is braced for election season and a potential shift in power in 2015, a number of international crises rumble on at the turn of the year and uncertainties loom large over the global economy. In November David Cameron warned that the world is on the brink of economic disaster amid what he called a series of “red warning lights”. But Bill O’Neill, head of the UK investment office at UBS Wealth Management, sees a somewhat more positive picture. “We don’t see a real prospect of global recession in the next year and a half,” he says. “In fact there is actually a belief that we might see an acceleration of growth in 2015, particularly in the US, as well as some recovery in the Eurozone. We’re looking at growth in the global economy of around 3.5%. “Oil prices fell by almost 30% in 2014 and in the UK there’s a downwards movement in mortgage rates. Such trends do not ascribe to the basis for expecting a global recession.” With around 40% of UK exports going to Europe, the Eurozone’s fortunes are clearly concerning for investors and businesses with footholds on the Continent. And O’Neill says that, for all the current geo-political concerns such as conflict and terrorism in the Middle East, the RussiaUkraine crisis and the spread of Ebola,

BUSINESS QUARTER | WINTER 14

uncertainty in the Eurozone remains the biggest risk to the UK economy. “This has been a big year for geo-political risk but interestingly issues like Russia, ISIS and various crises in the South China Sea, have had a limited impact on financial markets. There might have been a risk of a spike in energy prices due to concerns over supply, but oil

prices have fallen, although we expect them to bounce back in the New Year.” In terms of the Eurozone, O’Neill believes it is unlikely the year ahead will bring a significant worsening of conditions there. “The difference between the financial crisis and now is that we’re not getting the level of banking shocks we saw then. More worries

WINTER 14

may emerge in Europe, but we’re not seeing them. “The UK is performing better than most of the other G7 economies, with growth of around 3% expected in 2014, 2.5% in 2015 and close to 3% in 2016. “These numbers are enviable around the rest of the world and, as a consequence, Sterling is likely to appreciate further, particularly against the Euro and a number of the other European currencies, which will clearly have a competitive effect on the UK economy.” The upward movement of the US economy will also aid UK plc in 2015, O’Neill says, while also potentially influencing a rise in interest rates on this side of the pond. “We continue to see recovery in the US coming through. We do think American interest rates will go up in 2015 and that might change the context of interest rates in the UK.” And what impact might the general election have on the economy? “It casts a level of uncertainty, particularly as it looks as though we may not get a single party government, and perhaps even a three-way party coalition. Beyond the election we could see ongoing uncertainty about taxation, spending priorities and the EU – such as what combination of parties would see a referendum on the EU going forward? Also, we are still halfway through the austerity programme, and the elected parties will have to commit to a plan. The market will want a clear idea of whether the new government is committed to achieving the objective of fiscal sustainability. The current coalition government has forecast that we will reach that point in 2017/18.” O’Neill adds that the general election may delay infrastructural spending, which could have a knock-on effect in the private sector. Meanwhile, he cites real estate as a potential bright spot in the economy in 2015, while exports and bond markets will be particularly challenging.

The UK is performing better than most of the other G7 economies

INSIGHT

An upbeat start to 2015 Yorkshire’s high net worth individuals look to be in buoyant mood going into the New Year if the growth of one of the region’s most prominent wealth management firms is anything to go by. UBS Wealth Management will mark its fourth year of trading on the ground in Yorkshire by significantly expanding its presence in the region. The firm, which established a branch in Leeds to service existing clients in 2011, has reached full capacity at its office at 1 City Square. In spring 2015 it plans to move to a significantly bigger premises within the city centre, having built up a nine-strong team and a client base spanning the entire county. The firm has trebled the value of assets it oversees in Yorkshire in the last three years and is gearing up for further growth in 2015. Andrew Aitken, regional head Yorkshire, says: “Our new offices will give us a home here for the next 10 years and allow us to continue expanding. We are certainly past the settling in period in Yorkshire and now have an extremely experienced team of advisers and an established client base. “We’ve been managing funds for 150 years but we’ve only had a domestic wealth management presence since 1999, so in a sense we’re relative newcomers compared to some of our competitors but our regional offices are now the fastest-growing part of the UK business. “In fact, outside London, Yorkshire is probably our biggest region in terms of clients and opening in Leeds was long overdue. But now we’re firmly established on the ground, our clients really appreciate that we are here locally.” Given that UBS works with entrepreneurs and business leaders – as well as wealthy families – its success in Yorkshire can only be a positive sign for the regional economy. And certainly, anecdotally at least, Aitken has noted an upturn in confidence among customers in recent months. “Our clients tend to be people creating wealth by building businesses and their mood is generally upbeat. A lot of decisions and investments had been put on hold for a period of time while many [business leaders] were concentrating on survival and consolidation. But over the last couple of years that’s been gradually improving. Generally we are seeing business growth and strength among our clients.” Nationally UBS has private client assets under management totaling more than £31bn (as of December 2013) and more than 200 client advisors. It offers a complete wealth management service and addresses individual client challenges such as extracting assets from businesses or structuring wealth within families. See www.ubs.com/uk for more details.

BUSINESS QUARTER | WINTER 14

INSIGHT

WINTER 14

>> A ‘lucky collision’ of positive factors It’s a great time for new ventures, says Doug Richard, the founder of School for Startups, which recently expanded into Yorkshire in partnership with Sheffield College The conditions for starting a business in 2015 will largely be an extension of those we experienced in 2014. Two main factors have made this year and the year to come peculiarly favourable moments in time for new ventures in the UK. It has never been so cheap to start up. Firstly, with the rise of crowdfunding, equity crowdfunding, alternative financing and the absolute low cost of money (interest rates are at a real low), capital has never been quite so cheap and readily available. Secondly, the Internet, social media and the continued rise of co-working spaces, makerspaces and fablabs have decreased a startup’s operational costs, making new businesses an easier reality for a larger pool of potential entrepreneurs. As for trends, the UK has recently been voted the friendliest place in Europe to start

BUSINESS QUARTER | WINTER 14

a business. This is due to a combination of factors. Again, with the increasing trend of people crowdfunding for initial capital, businesses commonly have customers before they have money. We will continue to see the rise of individual stars of the Internet: vloggers, bloggers and Youtubers. These people will lead our future trends as the ultimate curators of content. Finally, additive manufacturing (3D printing) will come into its own. We will see an increasing number of new entrepreneurs building businesses around personal manufacturing. It has never been so affordable, so accessible, so democratic and so creative a time to start a business as in Britain in 2015. I look forward to the many, great businesses that this lucky collision of factors will bring.

>> Bottling success James Cain, managing director of Harrogate Water Brands, is tackling the logistics of getting his product to market For us, 2015 will be about how we can maximise our growth potential. Effective communication and accurate forecasting will play a major role in safeguarding our supply in 2015. We now have the capacity to meet consumer demand, having invested £8m in a state-of-the-art Krones Ergobloc bottling line, which has allowed us to quadruple our business output. It’s important that we leverage this opportunity to drive shelf space for our product, whilst remaining true to our ethos of delivering exceptional quality still and sparkling spring water. In the category as a whole, it’s my belief that in 2015 manufacturing will face a number of different challenges, in particular logistics. At Harrogate Water Brands we continue to put an emphasis on smart logistics – it’s something that I believe in very strongly and have done so ever since my days at Walmart. It’s a tight arena and there is likely to be a shortage of logistics solutions in 2015, so brands will need to think cleverly about the most efficient way to get their products in front of their customers. I believe the pressure will be on businesses to partner with the right providers now to ensure their products are delivered on time and cost-effectively.

WINTER 14

INSIGHT

>> We have confidence but lack skills Natalie Sykes, regional director for the Institute of Directors in the Yorkshire and the Humber: 2015 will be a year of continued growth and investment by businesses.

Key sectors such as manufacturing, energy and the digital and creative industries have regained confidence, but are still missing one essential raw ingredient – the skilled workers to sustain their future growth. Yorkshire’s companies remain concerned about a lack of available talent to meet their industry’s demands and the cost of recruitment. As older, skilled employees continue to leave the workforce in greater numbers than those joining at the start of their careers, this challenge will become more acute. Progress is being made. Apprenticeship schemes are an excellent way of identifying and attracting talent that can be nurtured. Over 100,000 employers are offering quality apprenticeships in more than 220,000 locations. They encourage and energise young people to develop a successful career in our key industries. There is funding and support available from the government, which makes apprenticeships more affordable for SMEs. Investing in apprentices can be more cost effective than hiring skilled staff, leading to lower overall training and recruitment costs. They also help businesses to develop specialist expertise rather than general skills, which can be adapted as new technology emerges. According to the National Apprenticeship Service, 96% of employers that take on an apprentice report benefits to their business. The average apprenticeship completer increases business productivity by £214 per week, with these gains including increased profits, lower prices and better products. As apprenticeships gain profile, young people are seeing that this is more than just a training scheme – it’s a commitment to a long-term career.

>> Research is key Lesley Batchelor, director general of the Institute of Export, outlines the importance of knowing your market The components of a sound export strategy vary little from year to year, although the financial and legislative costs of implementing them can differ greatly. Yorkshire has a reputation for producing quality goods, but reputation alone will not be enough. Success will depend on getting to grips with the business culture and truly understanding how to operate in your chosen market. Research is the key to selecting a market – whether it is looking at how much it will cost to get paid, through to making sure that any partner is not going to leave you vulnerable with the bribery act. You need robust intelligence about your chosen market. Once you have identified your customers and competitors, use this knowledge to communicate effectively. Determine whether you will sell indirectly via a local business or directly from your business base in Yorkshire.

Know your timescales and have a clear pricing model. Educate yourself about the legislative and administrations hurdles you will face. Researching your chosen market is relatively straightforward, more difficult to assess is which market is right for you to begin with. Forecasts and predictions regarding target markets for 2015 are a much needed resource in what can be an overwhelming array of ‘choice’, but it is important to remember that regardless of the growth forecast for

a particular country, you have to determine whether it is the correct fit for your product offering. Looking ahead, Mongolia and Panama stand out as potentially strong markets for export. In the last decade, Mongolia’s booming economy has seen its gross domestic product (GDP) grow by an average of more than 9%, almost entirely achieved due to the sale of its natural resources to China. The partnership between China and Mongolia looks set to continue, with plans to almost double trade between the two countries to US$10 billion by 2020. Last year, Panama saw its GDP rise 5.57%, with predictions indicating that it will grow by 6.9% by the end of this year and at the much higher rate of more than 9% in the next couple of years. The country benefits not only from its geographical position, granting easy access to both North America and South America, but also from significant investments being made to its transport infrastructure, which includes an expansion of the Suez Canal, due for completion in 2015, to allow for increased traffic and bigger ships.

BUSINESS QUARTER | WINTER 14

INSIGHT

WINTER 14

>> We must invest in growth

Julie Pickersgill, operations director of Harrogate-based Advanced Digital Dynamics, a global IT distributor, says those embracing new ideas will be best placed to exploit opportunities in 2015

>> There’s a void to be filled Roger Hutton, senior partner at Leeds law firm Clarion, believes the legal sector faces some exciting challenges

These are exciting times for the legal sector which has been one of the last to allow its market to dictate its behaviours and has been slow to embrace change. That change, however, is now coming. National firms are on a mission to consolidate as quickly as possible in order to create huge international firms to service institutional clients. There is a void in the profession with no stand out leaders, unlike the huge brand awareness of the big four accountancy firms. I think we will see mergers happening at an increasing rate and firms jostling to establish the predominant positions of these large legal giants. There has also been a proliferation of businesses funded by third parties and ABSs which have initially resulted in an attack on the consumer market, which has placed pressure on the high street practices. The idea is to create brands which may be attractive to the consumer. This has been coupled with a drive towards the commoditisation of legal services and recruiting non-legal staff to undertake standardised tasks. Whilst this may appeal to some consumers, a likely consequence is a reduction in the quality of service levels. These trends leave a space for commercially savvy law firms doing business with mid-sized entrepreneurial companies which are looking for added value from their professional advisers. However, the opportunity has to be taken. Law firms need to run like businesses rather than traditional practices, with fresh thinking about how they approach customers. There is an opportunity to experiment with funding packages that clients may find more attractive, and an increase in demand for a more commercial approach from legal advisers where clients seek a return on investment. The winners will be those who engage with their clients on the terms those clients wish. Indeed, the sophisticated demands of these clients are pushing lawyers to become increasingly entrepreneurial themselves and, with the economy continuing to improve, it is an exciting space in which to work.

BUSINESS QUARTER | WINTER 14

As business confidence continues to increase in what is still a fiercely competitive climate, it’s critical that Yorkshire’s business leaders accelerate their marketing and PR drives and re-establish relationships with former clients and connections. Working ‘on’ as opposed to ‘in’ the business, finding out what their customers value about doing business with them – and adapting to customers’ changing demands are also key priorities. Seeking out top talent, investing in their teams and jettisoning the underperformers will also give bosses a competitive edge and boost productivity. They should likewise keep on top of the regulatory frameworks, keep tabs on competitors who won’t be standing still and avoid protecting old ideas, as opposed to coming up with new ones. Wider industry trends for 2015 reflect the continuing consolidation between the real and virtual worlds. Computing will permeate every part of our lives, with the merging of data streams and services. Our reliance and interaction via mobile devices – coupled with a need for mobile technology to operate in multiple environments – will be unprecedented. Companies must invest in infrastructure and equip their teams with the right skills to adapt to the evolving IT changes. IT developments will see a proliferation of embedded intelligence – ie: sophisticated systems which react to their respective environments – along with advances in targeted analytics in interactive systems, such as virtual assistants and smart advisors. The rise of 3D printing will also be an area for business growth. Investment in this industry is substantial and, as the cost of 3D printers fall, this market will advance rapidly. As digital developments expand, the emphasis will be on increased security implications. This poses new challenges, because while the relentless pace of change demands increased protection, the ability to meet the demand is limited. Security protection will struggle to keep up with the speed of the digital evolution, forcing businesses to accept and manage more risk.

WINTER 14

INSIGHT

>> Back on track

James Appleton-Metcalfe, managing director of Citivale, the Leeds-based property developer and asset manager, feels the sector has turned a corner After four challenging and difficult years in the commercial property market in Yorkshire, confidence is returning to all sectors in the market across the county. It is not boom time quite yet, but the days of bust are well and truly behind us. Don’t just take my word for it – recent statistics released by national property consultancies Knight Frank and Lambert Smith Hampton graphically underline the progress that has been made this year, following the dark days of the recession. Lambert Smith Hampton’s UK Investment Transactions Report revealed that investment in Yorkshire’s commercial property market had reached its highest level since 2010 – up 91% to £354.83 million. Even more tellingly, the county had secured record investment growth in the three months to the end of September – a huge surge on the second quarter and up 18% on the third quarter. Year-to-date commercial property deals in Yorkshire stand at more than £1.01 billion with the retail sector experiencing the largest growth, accounting for 67.5% of total investment at £239.54m. Meanwhile, the logistics and industrial property market in Yorkshire, right across the county from the North Yorkshire to South Yorkshire and West Yorkshire to the Humber, is gathering momentum, with speculative development making a long-awaited return to the region, according to the latest research from global property consultancy Knight Frank. The return of speculative development will provide a much needed boost to the quality of supply in the region, and I believe other development sites will come forward as this momentum gathers pace. The office market, especially in Leeds and Sheffield, is also recovering from the difficult recent years. According to Knight Frank’s latest Regional Offices Market Presentation (ROMP) report, Grade A rents are now approaching £26 per sq ft, their highest for five years. This reflects not just a shortage of quality stock, but also a surge in confidence. It should also lead to a return to serious speculative

It is not boom time quite yet, but the days of bust are well and truly behind us development and now the Leeds city skyline is welcoming back cranes. The impressive turnover during the past three months reflects an increase in buying opportunities in Yorkshire, as some investors have sought to capitalise on significant price increases over the past 12 months.

With evidence of rental growth returning, investor appetite is likely to focus more readily on well–located, short income stock where income can be enhanced through active asset management. This, in turn, will keep confidence flowing, especially as London investors are increasingly attracted to the strong fundamentals of regional property, especially in Yorkshire. It would be foolish to be over-confident with the upcoming General Election and a possible interest rate rise on the horizon. But, given the dreadful battering the commercial property market has taken in Yorkshire, and across the UK, since the credit crunch, the revival in confidence in the market this year should be warmly welcomed. n

BUSINESS QUARTER | WINTER 14

COMMERCIAL PROPERTY

WINTER 14

City One site’s future looks settled after lengthy legal wrangle, agencies join forces at Bond Court, Deputy Prime Minister opens new HQ, work gets underway on £96m logistics hub in Temple Green This led to a legal challenge by Montpellier Estates, which owned the City One site. But its claim for more than £43.5m was rejected. Ahead of the Caddick deal, the site was marketed by Henrie Westlake of the Leeds office of Knight Frank. The site has consent for a £500m scheme that includes offices, a casino, residential tower and a hotel. It has been reported that Caddick is seeking residentially-focused consent, removing the plan’s leisure elements.

The City One site has consent for a £500m scheme >> New development will be ready for tenants soon

>> Agency teams Bond

New jobs are set to come to Ripon in the spring after work began on two 5,000 sq ft industrial units on Boroughbridge Road. The extension to Canalside Business Park is being carried out by contractor Recobuild and represents a £1.25m investment in industrial premises that will be ready for occupation by tenants early in 2015. The new development, is aimed at tenants with 35 and 45 staff.

Evans Property Group appointed the office agency teams at CBRE and JLL as joint agents on the Capitol office building in Leeds City Centre’s Bond Court as its refurbishment was completed. Around 20,000 sq ft of office accommodation on the first and third floors has been created, in addition to external improvements to the windows and and full common area modernisation. Capitol has been a long-term investment for Evans and is home to occupiers such as BNP Paribas, Cap Automotive and Lifesearch. The transformation is part of a circa £20m investment programme being undertaken by Evans at the Bond Court area of Leeds. The Minerva office building on East Parade has become a flagship, Grade A office building for the city and demolition work is now underway to remove the former ‘stacker’ car park on Greek Street in preparation for the development of a 90 bed 4 star hotel.

>> Waterfront changes hands

>> New owner for City One

GMI Developments has sold its 52,494 sq ft Shipley office scheme, The Waterfront, to an overseas investor for £5.95m. The Waterfront was acquired by GMI Developments five years ago following its earlier construction by sister company, GMI Construction. The traditional mill style building, which is situated on the banks of the Leeds to Liverpool Canal close to the Salts Mill World Heritage Site, has achieved full occupation following recent occupier expansions. Macmillan Cancer Support has just signed a new 15 year lease for the last 5,800 sq ft ground floor suite, while professional advisory and support services firm, AdviserPlus, recently doubled its office space there to 15,000 sq ft.

The City One development site in Leeds, which was the subject of a lengthy legal battle surrounding the potential building of Leeds Arena, has been taken over by a new owner. Caddick Developments has bought the 9.5 acre site out of administration, according to a report. Estates Gazette reports that London and Wetherby-based Caddick beat rival bids with a £10m offer, potentially bringing an end to uncertainty over the site. The Sweet Street site was shortlisted in 2008 as a location for the £60m Leeds Arena. But Leeds City Council later announced it had terminated the developer competition and chosen Claypit Lane as the site for the new arena and would proceed as the developer.

BUSINESS QUARTER | WINTER 14

WINTER 14

>> Clegg opens HQ Deputy Prime Minister Nick Clegg has officially opened manufacturing organisation EEF’s new regional HQ in South Yorkshire. He joined EEF’s CEO Terry Scuoler and Yorkshire & Humber region director, Andy Tuscher, in unveiling a commemorative plaque at Advantage House in Rotherham. The offices will now be EEF’s new regional headquarters, and are well placed since they sit on the doorstep of the Advanced Manufacturing Park.

>> Doubling up Law firm Gateley has doubled the size of its Leeds office by moving from Toronto Square into the Minerva building in the city centre. Gateley, which has 25 members of staff, has signed a 10 year lease on the site. Its former Toronto Square home will be sub-let. William Ballmann, corporate recovery partner

COMMERCIAL PROPERTY

and head of the Leeds office, said: “We are delighted to have secured the lease at Minerva. Having entered the Yorkshire market in 2012, the Leeds office has become a genuine success story for the region. In less than three years the team has grown to four times its original size, providing expertise across corporate recovery, corporate, residential development and commercial dispute resolution.”

>>Work on £96m hub starts Work on the new £96m Temple Green logistics hub in Leeds Enterprise Zone has started with a £7.5m infrastructure and groundwork programme. Temple Green is being developed by Aire Valley Land LLP, a joint venture between Evans Property Group and Keyland Developments Ltd. It is the largest of four development sites located in the Leeds Enterprise Zone with planning permission for over three million sq ft of developed space at J45 of the M1. Consent was recently granted for Phase 1 which includes Leeds

City Council’s 10 acre, 1,000 space park and ride transport interchange together with development plots totalling 10 acres for motor dealerships and a petrol station. Leeds-based Hewlett Construction has been appointed to complete the road infrastructure and ground engineering works programme for Phase 1. Once completed the main spine road will open up the 25 acre Phase 2 site which can accommodate up to 500,000 sq ft of industrial, advanced manufacturing, storage and distribution space which could generate some 700 jobs.

>> Springboard to success Six new businesses have signed up to York Science Park’s start-up space, Springboard. The site, which supports early stage businesses, has welcomed a company behind a new networking site, an internet service provider and a design service as its new tenants. Also moving in are a communications training company, events firm and a property investment adviser. Kim Hodgson, business development manager, said: “The demand for our start-up space continues to grow and it’s great to welcome a new tranche of creative and innovative entrepreneurs.“There is a vibrancy and energy in Springboard which I am sure all the businesses will benefit from as they work to grow and develop their new businesses.”

>> Ten-year deal at Latitude >> Former warehouse turned office space welcomes first tenant A prominent commercial property in the regeneration of Sheffield’s Wicker area has secured its first tenant, opening the building for business. Saville House, on Savile Street, is now home to Places for People, one of the largest property management, development and regeneration companies in the UK. The firm has taken 7,000 sq ft of top-floor space in the iconic building in a deal brokered by the Sheffield office of Knight Frank. Developer Urban Properties transformed a derelict 1960s warehouse and storage building to create Saville House, just yards from the famous 150-year-old Wicker Arches. It stands at the Northern gateway to the city centre and became the catalyst for development of the area, which has also seen Tesco’s flagship 79,950 sq ft superstore established across the road.

Acting on behalf of Wilton Developments, CBRE’s Leeds Industrial Agency team has leased the 135,000 sq ft Latitude 135 industrial unit near Wakefield to Scottish logistics company, Malcolm Group. It has taken a 10 year lease on the 135,000 sq ft Latitude 135 at a rent of £4.55 per sq ft. CBRE acted for Wilton Developments alongside Carter Towler and LSH, and Pollock Property Advisors represented Malcolm Group. Headquartered in Scotland, Malcolm Group provides logistics services – Malcolm Logistics and Malcolm Rail – including road and rail transport, warehousing and terminal management across the UK.

BUSINESS QUARTER | WINTER 14

in association with

MEETING DEMANDS The issue: What are the main challenges facing public bodies dealing with an ageing population and how can technology and telecommunications help to deliver innovative healthcare solutions? While wrestling with a £30bn funding shortfall, the NHS faces ever-increasing demand from the UK’s ageing population. Longer life expectancy means more appointments, consultations and operations. A depleted public purse, meanwhile, dictates that services are being delivered on a tighter budget. Politicians of all stripes have pencilled their solutions to a seemingly impossible equation – and the future of healthcare, like immigration, will dominate pre-election rhetoric in 2015. But, in the meantime, new uses of technology are emerging as a powerful force in driving efficiencies and improving the care of society’s older members. More clever thinking, invention and adoption needs to happen, however, if the challenges of the ageing population are to be truly managed by health authorities. In search of answers, BQ brought together influential public and private sector representatives from across Yorkshire for a debate at The Royal York Hotel, York. A lively and passionate discussion began with delegates putting forward their major

BUSINESS QUARTER | WINTER 14

concerns about the health sector and the challenge of the ageing population. Frank Griffiths, chairman, Leeds and York Partnership NHS Foundation Trust, highlighted the importance of recognising that health issues are interconnected with every aspect of an individual’s life, rather than just something to be dealt with as standalone problems. Therefore, he said: “Technology needs to respond to an extremely complex landscape that is changing all the time.” Juliette Greenwood, chief nurse at Bradford Teaching Hospitals NHS Foundation Trust, explained how technology in recent years had helped to move more patient care into the community but warned that: “We have a lot to learn. When we talk about technology as a solution, we have to think about the patient experience and their expectations. Technology should not hinder or be adverse to good experience.” Mark Chamberlain, regional board member, BT, underlined technology’s role in ensuring that patients are only sent to hospital when they truly need to be and, otherwise, have their care needs met adequately at home.

TAKING PART Tom Keeney, regional director, BT Michael Sweet, non-executive director, York Teaching Hospitals Foundation Trust Frank Griffiths, chairman, Leeds and York Partnership NHS Foundation Trust Colin Mellors, deputy vice chancellor, York University Ian Williams, business lead, Leeds City Region LEP Bob Gomersall, founder, BTL Professor Clive Kay, chief executive, Bradford Teaching Hospitals Foundation Trust Colin Philpott, chief executive, Bradford Breakthrough Cindy Fedell, director of informatics, Bradford Teaching Hospitals NHS Dr Liam Sutton, head of knowledge transfer, University of Bradford Mark Fordyce, managing director, York Data Services Ltd Juliette Greenwood, chief nurse, Bradford Teaching Hospitals NHS Foundation Trust Andrew Radi, group CIO, Benenden Healthcare Society Trevor Higgins, regional partnership director, BT Mark Chamberlain, regional board member, BT David Furniss, director strategic operations, BT In the chair: Caroline Theobald Venue: The Royal York Hotel, York Taking notes: Andrew Mernin, editor, BQ Yorkshire 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.

Andrew Radi, group CIO, Benenden Healthcare Society – a health and wellbeing mutual community – asked how technology could be used to improve early diagnosis and bring about better outcomes. Michael Sweet, non-executive director, York Teaching Hospitals Foundation Trust, suggested that telemedicine had not yet lived up to its potential because of “resistance from large parts of the medical fraternity”. He also said poor connectivity in rural parts of Yorkshire meant district nurses “are working with one hand tied behind their

WINTER 14

DEBATE

The role of the university is to create new ways of doing things and to bring those innovations through into commercial relationships with partners for the wide scale deployment of technology back” in serving their local communities. Bob Gomersall, founder of Shipley based e-assessment and e-learning firm BTL, lists patient support apps and online training among his company’s healthcare interests. He drew parallels between the way the education sector has been revolutionised by “exposing large numbers of people to individual experts” via technology to the type of transformation needed in healthcare. “The [technology] is clearly disruptive and we need to work out how to organise ourselves in getting people to accept these services,” he said. Mark Fordyce, managing director of internet service provider and IT business York Data Services Ltd, warned: “The big problem we have going forward is being able to utilise the technology that’s there, to deliver more solutions. Enhancing what’s already there and enabling us to create better care services

is the bit we have to get right.” Cindy Fedell, director of informatics, Bradford Teaching Hospitals NHS, suggested that new healthcare service innovations must account for the fact that patients from different generations and backgrounds had varying degrees of technical knowhow. Against the context of scarce NHS funding, Trevor Higgins, regional partnership director, BT, said: “My aim would be to see how we can get the universities to use their research to develop products that SMEs can deliver to the market.” This was backed up Dr Liam Sutton, head of knowledge transfer at the University of Bradford, who added: “The role of the university is to create new ways of doing things and to bring those innovations through into commercial relationships with partners for the wide scale deployment of technology. It’s also about training the next generation of

the workforce and getting people with the appropriate skills to patients.” Colin Philpott, chief executive of Bradford Breakthrough – a networking and lobbying group representing Bradford’s public and private sector organisations – suggested that technology in healthcare is not just for the sick: “What about people who haven’t necessary got an identifiable condition, but are just old and perhaps also lonely. What can technology do for them? It often seems to me that for people who have some sort of identifiable problem there is a system in place in dealing with them. But how can we help people who don’t fall into those categories?” Colin Mellors, deputy vice chancellor, York University, explained why he believes cultural and behavioural changes are crucial in enabling technology to fulfil its role in future healthcare. He added that new innovations in healthcare should tick three important boxes. >>

BUSINESS QUARTER | WINTER 14

DEBATE

WINTER 14

“Does it reduce unnecessary demand? Does it make for more effective and efficient delivery? Does it improve the patient experience?” Next Ian Williams, business lead, Leeds City Region LEP, said small businesses might play an increasingly important role in tackling the challenges of an ageing population. But, he added: “There’s a great desire amongst many large public sector organisations to work more locally, but some small businesses have great difficulty meeting public sector standards. So there is an issue around procurement. Meanwhile Professor Clive Kay, chief executive, Bradford Teaching Hospitals Foundation Trust, predicted that the NHS in future would be a “total network of care” and less disjointed than currently. But he warned: “We will be providing a single system network and it’s up to the IT community to make sure that there is no waste. Currently we are haemorrhaging money out the system because none of it is joined up.” BT’s director of strategic operations David

BUSINESS QUARTER | WINTER 14

I think the problem that arises around large-scale projects for the NHS is that we tend to lose momentum when large amounts of funding are involved Furniss, whose role covers BT’s global government and health division which delivers services to the public sector, underlined further barriers preventing technology from driving change in healthcare. He warned that devices dependent on being self-managed by patients failed to service certain factions, including people with dementia. He also suggested that fear of failure, an overreliance on pilot projects and a lack of joined up thinking between institutions was hindering meaningful innovation in the health sector.

“There seems to be risk aversion stemming from the search for conclusive evidence,” he said, before asking: “How do we adapt funding models so commissioners are able to invest in these things and drive benefits down the track?” He also highlighted the need for councils and the NHS to work more collaboratively in tackling health and social care issues. “If we work in isolation we are not going to be capturing the problem,” he said. Furniss also explained that implementation of new technologies and methods would have to run in parallel with the existing system, since “10% of the population will remain digitally excluded in perpetuity for a variety of reasons”. But Bob Gomersall was more optimistic about the universal take-up of healthrelated technologies and applications. He also disagreed that there are too many pilot projects within the NHS. “I think the trend is very much towards easy adoption by everybody. If you look at the vast numbers of people who started using tablets who didn’t use PCs before as an example and the fact that the next generation [of devices] will be so intuitive.” “[Innovation] tends to evolve rather than be centrally planned. It’s impossible to plan from the top because you don’t really know what’s going to happen, you just have to let it evolve. So I think there will be a lot of more experiments and pilots and some will succeed and a pathway will be found.” Returning to the crucial issue of funding, Mark Fordyce said: “I think the problem that arises around large-scale projects for the NHS is that we tend to lose momentum when large amounts of funding are involved. It becomes less about the project and more about spending the funding. But private enterprise

WINTER 14

just happens and doesn’t need governments to help. Enterprise will just go on and get it done. Yes there are a lot of failures, but that’s the nature of enterprise. “When we go down the funding route, it’s under the glare of everybody. So therefore failure becomes something to talk about.” Frank Griffiths: “The assumption is that NHS organisations around this table will over the next five years contract financially by 4% per annum. I don’t know where in the private sector you have organisations doing that and not only surviving but also being successful in that period. On one hand I want to support and encourage local innovation and empower our hospital clinicians to try these things and see if they make the quality of experience better. But this is against a background of an unparalleled resource squeeze.” Mark Fordyce: “But don’t pressures and

budgets actually force change and force us to develop innovation?” Clive Kay: “What I think has been missing is how we can learn from local delivery systems that are different around the country quickly and seamlessly. Taking several years to learn from the best is not sustainable. There must be an IT solution that allows us to learn from the best.” Juliette Greenwood suggested that the “voice and power of citizens” could fuel such a speeding up of the best innovations being adopted nationally. “I’ve seen how the use of technology in the home, joined up technology within primary and acute care, can take somebody from having an admission every month, to maybe one a year. That might be aspirational but it is happening in places. The passion of that individual telling me

I think there’s always a fear of change but for some of these ideas to stick they can’t just be perceived by the public as being about cost

DEBATE

how they were self-managing themselves using technology is something that we somehow need to harness.” Tom Keeney: “I think there’s always a fear of change but for some of these ideas to stick they can’t just be perceived by the public as being about cost. They’ve got to be about something better that can replace what’s there at the moment. There’s an education process and an engagement process that we need to go through and creating a vision making it compelling is important.” In bringing innovations and technology for the aged into healthcare, Andrew Radi said his firm had found success by keeping processes slick and simple. But, looking to the longer term, he admitted that engaging younger people in tech-driven areas like self-diagnosis was proving a major challenge. “How can we get technology working with young people to actually save problems further down the line and get them interacting with self-diagnostics?” Colin Mellors: “To change behaviours you need two things – to demonstrate self-interest and to make it easy. It’s about introducing a technological interest which is clearly going to make something more effective, rather than it just being imposed on people”. In terms of specific innovations that might improve healthcare, Liam Sutton pointed >>

BUSINESS QUARTER | WINTER 14

DEBATE

WINTER 14

to a more integrated delivery of different kinds of health provision. “The idea is that the patient has a consultation, perhaps through some sort of telehealth contact, and gets advice on several issues all at once, whether they are a medical, social or lifestyle related”. Colin Mellors agreed, explaining that “the elderly can be treated brilliantly for discrete things but the problem is that they often feel they are not been looked after generally.” Next, Colin Philpott suggested that, while technology is a part of the solution to the NHS’s budgetary challenges, a more simplified healthcare landscape would also help. “I think the real answer is that we’ve got too many organisations involved in the sector,” he said. Then Frank Griffiths and Mark Fordyce both suggested inspiration from digital trends, particularly among younger people, could also

BUSINESS QUARTER | WINTER 14

improve the use of technology in healthcare. Fordyce added: “When the internet was born many years ago, it started off as just being a network, then we had two networks and then it became an internetwork. Initially we would pay each other to share our traffic but then one day we realised it was mutually beneficial to not charge each other, because

my customers would see your content and vice versa. If we could adapt even a quarter of that essence to deliver similar solutions, we could solve our problems overnight. Technology is not the problem, people and governments are the problem. This is why we need to come up with a way of maybe localising it to spot the best way forward. When it’s just one huge entity, it becomes an almost impossible task and it is set up to fail.” Cindy Fedell: “But I think healthcare by its very nature is risk averse and controlled. We manage people’s health and nobody is willing to let that go. Technology is on the other side and until we are willing to let healthcare be a free market – I don’t mean privatisation but complete freedom - the two are never going to drive properly. We are always going to be trying to manage our own technology.” At this point Trevor Higgins reminded delegates that not all transformational use of technology in healthcare and wellbeing needs to be complicated. “It just has to be used right to make things better for people,” he said, citing the example of a project launched recently which simply encourages volunteers to have regular phone correspondence with elderly people who live alone. The issue of greater devolution to Yorkshire and other northern areas looms large over most sectors and, as mentioned by David Furniss, healthcare is no exception. One positive result that might come out of the fallout of regional clustering, might be better sharing of data between health and social care-related bodies, he said. Michael Sweet then addressed what he sees a major failing of the current use of new technologies in healthcare. “The type of things we’re talking about today are for the wealthy well, who are the people we don’t need to

There is a really interesting drive towards personalisation and people taking responsibility for themselves and in healthcare we have to adapt to that

WINTER 14

We tend to work in silos in this country and often don’t see what the person over the fence is doing. But they could be reinventing the exact solution we’re after worry about so much. So how are we going to actually get these things down to the grass roots? I believe we do require national strategy to make people aware of their own health.” Juliette Greenwood: “There is a really interesting drive towards personalisation and people taking responsibility for themselves and in healthcare we have to adapt to that.” But overall there seems a lack of strategy in terms of dealing with the challenges of the ageing population, according to Ian Williams. “I’m hearing about all the things we can deliver, but what is the end game? What is the goal?” Mark Fordyce: “I think the aim should be to share knowledge [and] then we can capitalise on it. We tend to work in silos in this country and often don’t see what the person over the fence is doing. But they could be reinventing the exact solution we’re after.” Cindy Fedell: “I don’t think we should define the endgame because it will always evolve and you can’t predict what is going to happen.” Perhaps not a single goal then, but a series of major ‘to do’ items is required. Among them, suggested Colin Mellors, is to find a way of making sure “people are not simply recipients of the health service but are participants in the health service”. He added: “Can we use technology to address the other side of the problem not just the scarcity of resources and get people to take responsibility for themselves?” Certainly Liam Sutton believes this is possible, given the increased demand for people to take ownership of their own data: “People want to own their data, and morally they should do, and people are becoming more savvy about this. None of us can predict the future but sure it’s going to have an influence on whether technology can get things right.” Tom Keeney: “There are definitely examples

of this emerging. A few years ago you wouldn’t have tracked how many steps you took in a day or your blood pressure but these things are becoming the norm for the younger generation through apps and wearable devices. Juliette Greenwood: “Social media, apps and games are influencing people to change their habits and I think we’ve got to look at how we can capitalise on things like that.” David Furniss explained how this is also influencing consumer facing businesses to respond to the increased amount of data they have about their customers. For example, he said, supermarkets are using online shopping

DEBATE

data to develop recipes which are lower in salt to market their own brands. As the debate neared conclusion, it was agreed around the table that many other uses of technology to improve the wellbeing of the ageing population would continue to spread throughout Yorkshire and the UK in the coming years. Some are simple – such as the screening of archive films to help people with dementia as championed by Colin Philpott – and others more complex, involving data, telepresence and diagnostic technology. However, what also emerged from the debate was, in the face of tight budgets, the need for more collaboration between organisations within and beyond the healthcare sector and spanning regional borders. But Tom Keeney ended on an upbeat note, saying: “15 years ago we were talking about online banking and shopping as things we weren’t sure about. Hopefully in 15 years we’ll talking about cracking something else with technology because we’ve managed to fix healthcare’s issues.” n

Taking healthcare into new territory A Partnership between BT, Bradford City Council and Bradford University is to establish a Digital Health Enterprise Zone in Yorkshire BT is playing a key role in the creation of a new multi-million pound Digital Health Enterprise Zone. Led by the University of Bradford and supported by Bradford Council, the Leeds City Region Enterprise Partnership and the national Digital Catapult, the scheme will create a hub for the incubation of SME companies focussed on digital health care innovation. The partnership will establish two complementary innovation spaces over the next three years. One will be the Digital Exchange that will nurture small and young companies with a focus on digital health technology innovation and provide facilities to connect and collaborate with larger businesses, universities and public sector organisations. The second will be a new Health and Wellbeing Centre on the university campus. Primarily focused on research and learning to develop patient-centred integrated care, this will become a community amenity housing health professionals and teams of researchers and students who will trial and monitor the delivery of new healthcare initiatives and demonstrate products and services developed in the Digital Exchange. BT will provide leadership support and direction, assistance with marketing communications and give innovators access to its global health cloud services. A number of BT resources will be colocated in the new facilities and BT will also provide innovation-related support and mentoring. BT already employs over 3,000 people in the region and generates nearly £700m for the Leeds City Region economy. This opportunity will allow BT to continue to highlight their skills and experience to help drive innovation and to be the partner of choice for businesses across the region. Tom Keeney, BT Regional Director, Yorkshire & the Humber

BUSINESS QUARTER | WINTER 14

BUSINESS LUNCH

BUSINESS QUARTER | WINTER 14

WINTER 14

BUSINESS LUNCH

CRUNCH TIME LED TO TOUGH DECISIONS After a stormy few years involving losses, set-backs and a management overhaul, Seabrook Crisps is finally biting back and ready for growth in 2015, chairman Ken Brook-Chrispin tells Andrew Mernin over lunch “It wasn’t just tough, it was an absolute nightmare,” says Ken Brook-Chrispin of the tumultuous period his firm has finally emerged from. Floods which ravaged the UK’s potato stock and the disappearance of a core market overnight are perhaps the darkest chapters of Seabrook’s struggles in its modern history. There was also a management overhaul carried out after it became clear, says Ken, that instructions from the boardroom were not being carried out. An accounting error that led to overpayments being made to Tesco and Morrisons served to only compound matters. But having slumped to a loss of £1.8m in the year to April 2012, this year the Bradford business edged £1.3m into the black, with turnover rising £1.7m to £22.8m. And it now has its sights set on long term growth, with Ken believing a turnover target of £75m by 2017 is a realistic goal. The appointment of ex-Vimto boss Jonathan Bye in May 2012 has been credited as central to Seabrook’s recovery. That move came on the back of an unsustainable promotions campaign that severely dented earnings and led to the departure of most of the management team. Ken, chairman and formerly CEO of the business established by his wife’s father Colin Brook in 1945, says: “We had massive promotional deals that were badly founded

and were not following the strategy that had been set out. They were trying to grab market share, thinking that they could then put products up to full price and everybody would continue to buy them. But the market doesn’t quite work like that. I didn’t know about it at the time and it was all being slightly concealed. So eventually we had a total change of management and it took me six months to start getting the right people in.” Other standout setbacks in recent years include

On the Friday our turnover was £16m and by the following Monday it was £11m

the 2012 floods which meant Seabrook was forced to pay £600 for imported spuds, compared to around £150 for British ones. Long before that there was also the seemingly overnight decision by Tony Blair’s government in 2006 to ban crisps from schools, as

recommended by Jamie Oliver. That legislation was the enzyme for Ken’s takeover of the business in the same year, as he stepped in to help drive it out of crisis. “On the Friday our turnover was £16m and by the following Monday it was £11m. We supplied most of the schools in the North of England because we were the crisp of choice for nutritionists, as we used sunflower oil and natural sea salt. We had no warning and had to make eight delivery drivers redundant.” Under Ken’s watch some good years followed, despite Jamie’s intervention, until the low point of the heavy losses made in 2011/2012. The group’s latest recovery has been driven by its ability to take the fight to larger rivals in the battle for supermarket shelf space. Walkers is the dominant force and a fierce competitor, while Seabrook sits around fifth in the market with a 6% share, holding its own alongside considerably weightier businesses. So competitive is the industry that Ken claims he once employed an ex-salesman from a national rival who told him his challenge in his former role was to “destroy Seabrook”. But despite such competition, the company continues to spread its reach nationally. “We had a breakthrough moment recently when, on a visit to Asda, we suddenly realised we were the only brand with 32g bags in a 25g market. We realised customers were >>

A law firm which offers more In life and in business

Expect More www.clarionsolicitors.com 7053_20x175_Clarion_BQ_Magazine_AW01.indd 1

06/06/2014 15:00

BUSINESS QUARTER | WINTER 14

BUSINESS LUNCH

WINTER 14

only looking at the fat content rather than taking into consideration the fact that our bags had more crisps. So we decided to match the market and have been able to compete on a level playing ground.” Meanwhile, Seabrook supplies ‘challenger’ supermarkets like Aldi and Lidl on occasion but, says Ken, “it’s an awkward situation because 75% of our markets are with the big four, so we have the situation where we might upset the apple cart.” But will the rising forces of supermarket UK become an increasingly important part of the business going forward? “It’s very hard to read the market at the

they ever wish to help run the business – is no coincidence. And while his family is intrinsically linked to the business, Ken says the entire Seabrook team is equally passionate about it. “If you go round other factories in our sector, there’s no love there. It’s a machine,” he says. “We’ve got three or four generations of families working for us that have so much knowledge and dedication to the company. If you took their arm off, it would say Seabrook through it like a stick of Blackpool rock.” From a commercial point of view, Seabrook’s current resurgence follows its decision to trim down its range of flavours. “We were haemorrhaging money and realised that out

company also uses its staff as guinea pigs to make decisions, noting which pile of different flavoured crisps goes down the quickest in its offices. While Seabrook’s existing markets now look to have solid foundations, the business continues to seek new revenue streams, says Ken. The snack market may not seem the most innovative to an outsider looking in. But Ken insists his is an experimental firm always keen to test boundaries and explore new opportunities. And in the true spirit of the inventor, he’s not afraid of failure. He recalls the company’s attempt to deliver its now discontinued ‘Goodbye Salt Hello Flavour’ range into chemists. Seabrook developed the

moment. Are the discount supermarkets here to stay, or will their growth just continue for another couple of years until confidence comes back? I know a lot of people who now go to two or three different shops for different items. Will they be bothered when times are better? “I think there’s going to be an equilibrium eventually where supermarkets will come down to the same level to compete. Aldi and Lidl will probably come up as they get more brands and need to grow bigger.” Chartered surveyor Ken Chrispin became a Brook-Chrispin when he married the heiress of the Seabrook crisp empire Jane Brook. For someone who, at school, was nicknamed ‘POPA’ after a crisp advert (pop a crisp in – get it?), it’s a quirk of fate that sees him now boss of a crisp business. The ‘C’ initial given to his children – to create ‘C Brook’ should

of the 26 flavours, 98.5% of profit was from 12. So there were 13 flavours that were more of a service to the people who were used to buying them, often by mail order. So we got it down to 12 and then also launched our lattice product, which has another five flavours.” With around 128,000 boxes of crisps flying out of the factory every week, flavours have to be spot on and rigorously tested. The company works with a handful of flavour houses, as well as ‘flavourists’ – talented individuals whose services are hotly contested. “Once we’ve set out our spec, such as gluten free, all natural ingredients and complying with 2015 salt content regulations, we have about 15 versions of a flavour developed. We choose one we like but it then takes another hundred attempts to get it right, with my wife, daughter and I in the lab doing the testing.” The

products for people with high blood pressure who otherwise avoided crisps due to the dangers of their salt content. The aim was to have them clearly marked as a health food in a prominent spot in pharmacies. But a breakdown in communication – stemming from issues Ken says are linked with the long since departed former management team – saw them thrown onto crisp aisles up and down the country. “If you don’t have a dog, you don’t go down the dog aisle,” says Ken. “So why did they think people with high blood pressure would find them on the crisp aisle?” Seabrook also hatched an ingenious plan to develop crisps specifically to be sold by pub landlords that were proven to increase bar trade. Inspired by the old trick of using salty peanuts to get patrons thirsty and ordering

BUSINESS QUARTER | WINTER 14

WINTER 14

BUSINESS LUNCH

I’ve no plans to exit the business… but never say never more drinks, Seabrook developed a range of especially spicy crisps for pubs. It even carried out a controlled test – of a dominoes team – measuring drinking speed against crisp consumption. Tests were successful, with the crisps causing a clear shortening of minutes per pint, and talks with the likes of Wetherspoons had begun. But price was the ultimate stumbling block. “They just couldn’t see the bigger picture and how it would boost their trade,” says Ken defiantly. Not all innovations at Seabrook’s headquarters fail, however, and Ken is optimistic about a top secret health food project aimed at the children’s market. “It’s an ultra-healthy snack that kids will actually want to eat, and will give them part of their five-a-day. We’re looking at launching it in August 2015. That’s all I can say on that.” Before we wrap up, Ken considers what the future holds for his own career. There’s a note of uncertainty in his voice. “I’m getting too old. I’m 64 now,” he says. But admits that, since none of his daughters are willing to give up flourishing careers elsewhere to commit long-term to Seabrook, his exit would inevitably end the lineage of his wife’s family in the firm. This wouldn’t necessarily compromise the company’s traditional values, he says, but any handing over of power would need to be managed carefully. He adds: “I’ve no plans to exit the business…but never say never.” For now, though, there’s much to be getting on with as the firm battles back to full strength and fights for its share in a competitive market. n

Flavour-packed dishes – Virgin on perfection Short-sighted diners glancing in on BQ’s latest business lunch might have mistaken our guest for a certain Virgin boss. Certainly, with his coiffure, colourful attire and Champagne ordered on arrival, he could probably pass as old Dickie from a distance – and it wouldn’t be the first time he’d been mistaken for him. Given that Ken makes a living from perfecting flavours and also confesses to being a maverick in the kitchen, chefs at Thorpe Park, Leeds, faced a stern test in pleasing the Seabrook chairman. Fortunately they passed with flying colours. Ken ordered tiger prawn linguine with Yorkshire chorizo, chilli, garlic and tomato sauce. And the prolific dinner party chef was mightily impressed. I ordered the salmon, which incorporated what, at first glance, looked like a slab of toast but was in fact piece of wood. The cedar plank baked maple and BBQ salmon with crème fraiche and mixed leaves, to give it its full title, was devoured at pace. I’m unsure what the wood added to the dish, as was Ken the foodie. But the salmon was certainly packed with flavour, as a persuasive crisp salesman might say. Both dishes set us up well for a journey into the snack industry, apportioned perfectly to avoid both afternoon sluggishness and four o’clock cravings. Thorpe Park Hotel & Spa’s Restaurant and Bar offers seasonal dishes made from local Yorkshire produce including meat from Lishman’s Butchers in Ilkley, pastries and breads from Dumouchel and award-winning ice cream from Lowna Dairy. The hotel also has plenty of other spaces ideal for meetings, including its airy, glass-roofed courtyard. Thorpe Park Hotel & Spa, 1150 Century Way, Thorpe Park, Leeds, LS15 8ZB www.thorpeparkhotel.com 0113 264 1000

A law firm which offers more In life and in business

Expect More www.clarionsolicitors.com 7053_20x175_Clarion_BQ_Magazine_AW01.indd 1

06/06/2014 15:00

BUSINESS QUARTER | WINTER 14

COMPANY PROFILE

WINTER 14

Bowcliffe Hall Drivers’ Club accelerates success of £6m refurbishment

Serial entrepreneur Jonathan Turner has unveiled the Bowcliffe Drivers’ Club an exclusive Members’ Club at historic Bowcliffe Hall, Bramham, West Yorkshire adjacent to the A1/M1. The Club, paying homage to classic cars and the romantic age of motoring, is an integral part of a £6 million restoration programme which also pays tribute to unsung Yorkshire aviation hero Robert Blackburn - a former owner of the grade II listed hall. Jonathan, an enthusiastic collector of veteran, vintage and classic cars, who has raced and rallied across much of the world, has been collecting motoring art and artefacts for many years in preparation for the unique Bowcliffe Drivers’ Club which houses one of the largest collections of motoring art in the UK. Original paintings and drawings by Gordon Crosby, Bryan de Grineau, Roy Nockolds, Geo Ham, Russell Brockbank are exhibited alongside significant pictures by more current artists such as De Bruyne and Yorkshire’s own Alan Fearnley. Jonathan says: “Classic cars are my passion and the Club is the fruition of a dream to provide a prestigious Members’ venue that celebrates the golden age of motoring. People working in the offices within Bowcliffe Hall and the surrounding historical buildings will receive automatic membership to the Club. Others will have to apply to the Membership Committee.” The Bowcliffe Drivers’ Club elegant mahogany panelled walls are illuminated by Bentley radiator light fittings. Other design features include a leaping Jaguar, an elegantly lit Spirit of Ecstasy, historic car themed tables, trophy cabinet and bespoke motoring fabrics featuring some of Jonathan’s own cars. Jonathan’s hobby has seen him compete in iconic events including the Peking Paris rally twice. His first venture in 1997 was in a 1929 Bentley and in 2009, seeking more of a challenge, he drove a 1907 Itala - the same model that completed the historic event in 1907. The entrepreneur has also taken part in Monte Carlo, Liege Rome and Mille Miglia rallies and was the first person to race the Orient Express - beating

BUSINESS QUARTER | WINTER 14

the train from London to Venice in his D Type Jaguar. He has also raced in Europe at Le Mans Classic – and most recently as part of a handful of historic racers who completed a 24hour pre war race: the first time this had been done since 1938. Jonathan is also a regular at many of UK’s circuits including Goodwood, Silverstone and Donnington. Jonathan’s passion and vision permeate the entire Bowcliffe Hall restoration. He explains: “I was adamant from the outset that we must spend at least 80% of the £6 million plus budget here in Yorkshire.” The entrepreneur’s commitment to using and profiling local talent extends to food, with the appointment of award-winning Yorkshire chef John Topham as signature chef to oversee dining. John’s daily menu includes light lunches and more extensive options for the Bowcliffe Drivers’ Club, as well as creative menus and wine lists for both daytime and evening private events. Dishes can also be tailored to the specific requirements of

Members and guests and the talented catering team will even provide take away options and delivery for Members in businesses based at Bowcliffe. The team led by John is also creating menus for guests dining and entertaining at the other event venues on the estate and within the Hall itself, including the innovative Blackburn Wing. One of the world’s most dynamic treehouses, the aeroplane wing shaped building can host up to 100 guests, is the centrepiece of the restoration project at Bowcliffe and a fitting tribute to its former owner Robert Blackburn.

For more information about the Bowcliffe Drivers’ Club or any of the other facilities at Bowcliffe Hall, please contact 01937 541111 / www.bowcliffehall.co.uk / email info-request@bowcliffehall.co.uk

UNIQUE. EXCLUSIVE. UNRIVALLED.

FOR FURTHER INFORMATION OR TO ARRANGE A VIEWING PLEASE CALL US ON

01937 541111 BOWCLIFFEHALL.CO.UK/DRIVERSCLUB BOWCLIFFE HALL, BRAMHAM, WETHERBY LS23 6LP

D C

SHERWOOD ON WINE

WINTER 14

YULE LOVE THIS IDEA!

Simon Sherwood, a partner at law firm Mills & Reeve, praises Sainsbury’s clever plan to get wine lovers in the festive spirit FIRSTLY THE WHITE Vinedos Barrihuelo Rioja Blanco. This is stunning! – a young pale looking wine with hints of lemon, lime and even pineapple (I know it sounds odd, but it really works). It’s very refreshing with a long finish – a great all-rounder that would go well both with the richness of a smoked salmon starter and the turkey. Certainly a wine for the Sherwood Christmas table.

I love Christmas. The carols, decorations, Christmas trees, presents (especially presents!), bloke in red suit and white beard, the Queen’s speech, falling asleep in front of the afternoon film whilst the kids play harmoniously with new toys (or fight one another on the PlayStation – or in person). I even quite like the visiting relatives and in-laws. My favourite part of all though is Christmas dinner – the turkey, stuffing, pigs in blankets, roasties, sprouts and all the trimmings – not forgetting the homemade Christmas pudding. I also love the preparation, the cooking and the amazing smells that emanate from the kitchen. There is only one problem with Christmas, and perhaps it comes with being a lawyer, but each year I want it to be perfect and ideally more perfect than the last.

BUSINESS QUARTER | WINTER 14

I can cook a turkey to perfection and I’m proud of my roast potatoes and gravy – but the one thing I struggle with is the wine. Maybe it was all those OTT wine reviews in the 80s by the likes of Oz Clarke and Jilly Goolden with their verbally-dextrous descriptions; most of which I still don’t understand. What good fortune then to be asked by BQ Magazine to review two wines that had been especially chosen by Sainsbury’s for their Taste the Difference range to accompany Christmas dinner. Sainsbury’s experts tasted 40 different styles of wine with a traditional Christmas dinner to find “the optimum pairing” – they feasted their way through more than 20 roast turkeys in the process! BQ magazine kindly provided me with the 2014 selections.

THEN TO THE RED Vinedos Barrihuelo Rioja Crianza presents with a stunning colour of rich, dark red fruit and is accompanied with the very smell of Christmas…smoked chestnuts and cranberries, spices and dark berried fruits with a taste to match. This is a warming wine delivering a sense of quiet contentment. This too would be perfect with the Christmas turkey but would also stand up to goose or game if that’s your preference. It has a sensational taste from the off, but it definitely mellows in the glass and decanting would undoubtedly allow it to open up into a real Christmas cracker! Sainsbury’s are not stupid and what they have done with these two wines really does work, so get some bottles of the white and buy the red by the trolley load. Perhaps the Sherwood household will complete the Spanish theme and swap the breakfast champagne for Cava! Wines provided were Vinedos Barrihuelo Rioja Blanco (£8) and Vinedos Barrihuelo Rioja Crianza (£8) available at Sainsbury’s.

WINTER 14

COMPANY PROFILE

LinkedIn – are you In? Billed as ‘the world’s largest professional network’ with over 300 million users worldwide, it’s little wonder that as a small business LinkedIn has become an absolute essential in the social media toolkit, no matter what type of business you’re in. However, many people have a LinkedIn profile set up but don’t use it as fully as they can – or sometimes don’t use it at all. Your LinkedIn profile is one of the first chances you have to make a good first impression, whether someone discovers you online or offline, and just a few small changes can make a big difference. Incredibly, little things like adding a profile photo increases the likelihood that your profile will be viewed by 14 times. A catchy headline and summary full of keywords that your customers will be searching for will also help you to sell yourself – they’re a perfect opportunity for you

to grab someone’s attention early. Including pictures, adding posts, joining groups and posting experience and skills can all add to boosting your profile’s popularity too. When you have your profile maximised, you then need to work out who should be in your network. LinkedIn can give you exposure to important people, help you to attract new prospects, generate referrals and you can keep you in touch with your current clients and contacts with ease. When building your network, it’s important that all of your contacts are relevant – be selective when inviting people to connect and when accepting invitations. It’s all about quality, not quantity. To help North Yorkshire businesses, Superfast North Yorkshire’s business support programme is taking LinkedIn on the road - join them at one of their 5 LinkedIn Roadshow events between

11th December and 24th February in Harrogate, Scotch Corner, Scarborough, Skipton or York to pick up plenty of handy tips on how to transform your LinkedIn efforts.

Find out more and register your free place on one of the roadshow events by visiting www.sfny.co.uk or by calling 0845 002 0021.

LEEDS’ CITY CENTRE EVENT SPACE CONFERENCES • EVENTS • TRAINING • EXHIBITIONS • PARTIES • WEDDINGS

A unique Leeds city centre events venue offering meeting rooms and venue hire over 4 Floors of amazing event space, from intimate meeting rooms to more grandeur spaces to hold events for up to 1000 guests. Complimented with our in house catering team and high tech audio visual facilities, Aspire is the perfect choice for both corporate and private events. To arrange your personal viewing of this beautiful venue call our sales team now.

www.aspire-leeds.co.uk

T: +44(0)1132 368 368 E: events@aspire-leeds.co.uk W: www.aspire-leeds.co.uk. A: 2 Infirmary Street, Leeds, LS1 2JP

MOTORING

WINTER 14

TAMING A WOLF IN SHEEPâ&#x20AC;&#x2122;S CLOTHING James Buckley, Business Development Director of Twiddle & Co finds himself star-stuck behind the wheel of the car that has an edgy movie pedigree >>

BUSINESS QUARTER | WINTER 14

WINTER 14

MOTORING

WINTER 14

I was delighted to get a call from BQ asking me to review a car for their motoring section. I was doubly chuffed when I learnt what car I was getting. Now, I am no car ‘anorak’ but I knew that the Audi RS 6 was very desirable and extremely fast. When I told my colleagues and friends that I was going to be putting it through its paces over the weekend, there was a definite tinge of jealousy. One of them commented, “That’s a great car to rob a bank in!” The remark made me realise that high-powered Audis seemed to be cast by film directors as the car of choice for edgy criminals – an Audi S8 (1998) and RS 6 (2003) had featured in the car chase scenes in two of my favourite films, Ronin and Layer Cake respectively. Although a getaway car was not needed for my weekend’s activities (unless you count trying to escape after a raucous lunch with my niece and nephew), I certainly appreciated my friend’s rationale – the RS 6’s 4.0 litre V8 propels you from 0-60 in 3.9 secs and is capable of over 190 mph. My first impression of this high-end, muscular vehicle was its understated demeanour. To the untrained eye it could be seen as simply a well-styled Audi estate car and people could easily be forgiven for thinking it capable of only calling upon half of its 560bhp. There is very little to indicate the latent power that lies beneath the bonnet but I can see how the RS 6’s ‘wolf in sheep’s clothing’ aspect appeals to motoring aficionados. Setting off from the dealership in Doncaster, >>

BUSINESS QUARTER | WINTER 14

My first impression of this highend vehicle was its understated demeanour

The Audi RS 6 Avant. Power from a less obvious place. With its 4.0 TFSI V8 engine, the Audi RS 6 Avant is a performance car designed for everyday life. It means that you get RS-specific Adaptive air suspension for real roads, not just the track. And quattroÂŽ all-wheeldrive for conditions that are less than race-perfect. And, with up to 1,680 litres of boot space, it also means that youâ&#x20AC;&#x2122;ve got the capacity for plenty of luggage, as well as for 0-62mph in just 3.9 seconds. Visit us to find out more.

Doncaster Audi Quest Park Wheatley Hall Road Doncaster DN2 4LT 0844 822 6931 www.doncaster.audi.co.uk Sheffield Audi Bochum Parkway Meadowhead Sheffield S8 8BR 0844 822 7251 www.sheffield.audi.co.uk York Audi Centurion Park Clifton Moor York YO30 4WW 0844 371 4220 www.york.audi.co.uk Images for illustration purposes only. Some images may show items that are over and above standard specification. Official fuel consumption figures for the all new Audi RS 6 Avant in mpg (l/100km): Urban 20.3 (13.9), Extra Urban 37.7 (7.5), Combined 28.8 (9.8). CO2 emissions: 229g/km. Standard EU Test figures for comparative purposes and may not reflect real driving results. Model shown is not 2015 model. Calls will be recorded for training purposes.

MOTORING

WINTER 14

I was very surprised at how quickly it was to familiarise myself with the controls. I was prepared for it to take quite a bit of adjustment, bearing in mind the only resemblance to my existing car was the fourwheel drive and colour. The plethora of knobs, buttons, infographics and slivers of neon light on the dash, although initially overwhelming, turned out to be all userfriendly and intuitive. Over the next couple of days it became apparent how this car could deliver excellent benefits on two fronts. On the one hand it was immensely fun; even when you just feathered the accelerator pedal it generated a noise from its sports exhaust akin to a small cannon being fired out the back. On the other hand, it was very practical with enormous amounts of space in the back and the boot, capable of transporting family and dogs in great style. The detailing and quality of black leather on the seats was exceptional and worked well with the large chunks of carbon fibre in the interior. A planned lunch with friends on the Sunday in the hills of North Yorkshire to celebrate my birthday was the perfect excuse to test the car’s performance on some sweeping B-roads. The thought of not being able to have a few celebratory drinks wasn’t enough to persuade me to leave the keys at home and let someone else drive. During this test, the car came into its own. Nearly every corner and acceleration out of it seemed to delight my passengers and the superb handling even compelled my girlfriend to say the car, ‘had improved my driving ability’. It was with great reluctance when I finally had to hand the RS 6 back. I purposely left it very late in the day to return it to Doncaster to ensure a clear and unadulterated run down the A1 – it |would have seemed a waste to spend the last 45mins snarled up in traffic. I thoroughly enjoyed driving the RS 6, perfect for a very quick (weekend) getaway. n Audi RS 6 Avant Prices start from £77,995 JCT600 Audi Quest Park, Wheatly Hall Road, Doncaster, South Yorkshire DN2 4LT

BUSINESS QUARTER | WINTER 14

WINTER 14

XXXXXXXX

BUSINESS QUARTER | WINTER 14

FASHION

The best quality check is the knowledge of the person who makes the boot – it’s a very manual, very human process so of course mistakes can be made, but we try not to make too many BUSINESS QUARTER | WINTER 14

FASHION Not everyone would happily part with £700 for a pair of rubber boots, but then not all rubber boots are made like Le Chameau’s. Josh Sims caught up with the firm’s MD to find out more

THE HOME OF THE WORLD’S SEXIEST WELLIES

Beverley Williams certainly had second thoughts about moving to France to take charge of a manufacturer of rubber boots. As for many people, for the retail supremo – who has been a senior executive under the likes of Richard Branson and Philip Green – the prospect seemed decidedly unsexy. Until she saw the boots. “What we have here is a hidden gem that I want to put on a global stage,” says Williams, who took over as managing director at Le Chameau, based in Paris, Pont D’Ouilly in Normandy and Casablanca, 18 months ago. “These are not just rubber boots. In France they are iconic. And they are, I think, the best in class.” This perhaps explains not only why Le Chameau are the go to rubber boot maker for French farmers, sailors, fishermen, equestrian types and those with country estates, but has also been so for the likes of Louis Vuitton. When Chanel wanted a rubber boot made – of all things one might not associate with the fashion house – it went to Le Chameau. And the reason is simple. The €25m company, established in 1927 by one Claude Chamot and now making some 350,000 pairs a year – half of which, however, are bought by the French alone, who happily wear them around town – places an unusual emphasis on materials. It uses a secret recipe of the highest concentration of natural rubber in the market (no boot can be 100% rubber and be durable), meaning the footwear is that much more pliable and comfortable. But to those materials it then applies the principles of >>

BUSINESS QUARTER | WINTER 14

FASHION

classic hand-made leather boot-making. Indeed, the Normandy factory, where the company’s more premium models are made – yours for up to £700, which could get you a nice pair of bespoke shoes – has just four ‘maitres bottiers’, each of whom makes each pair of boots from start to finish. Each comprises the careful application of some 20 to 30 rubber parts, cut much as those for a pair of leather boots are, over an aluminium last. And since each boot is available made-tomeasure in eight calf-fittings – resulting in a more fitted, streamlined style – that means a lot of lasts. The naturally sticky rubber parts then

BUSINESS QUARTER | WINTER 14

hold their shape while the proto-boot undergoes Vulcanisation in giant ovens at around 140C, which effectively makes these parts molecularly of a piece – or, in other words, means there are no seams through which water might enter the boots. Just to make sure, each pair is pumped full of air underwater – with a single rogue bubble causing them to be rejected. More unnervingly, a high voltage is also passed through the water to ensure the boots are non-conductive of electricity. “But the best quality check is the knowledge of the person who makes the boot – it’s a very manual, very human process, so of course

mistakes can be made, but we try not to make too many,” jokes Marc Longuet, one-time bespoke boot-maker and now Le Chameau’s product director, whose father was also a director at the company from 1955. “But making rubber boots is actually a very complex business. The recipe for the rubber has to keep evolving – the right amount of sulphur, the right amount of dye and so on, but even buying the raw material can be tricky. Rubber is a commodity, after all, so we buy supplies at least a year in advance and have to be conscious of fluctuating prices.” If that makes the product sound all too workaday, note that the top of the range styles

Rubber is a commodity – we buy supplies at least a year in advance and have to be conscious of fluctuating prices are also leather-lined, an idea revolutionary to the rubber boot market back in the 1950s when Le Chameau introduced it. Fortunately for the customer, only the best leathers – those that might be suitable for the uppers of a decent pair of shoes – are able to survive the Vulcanisation process unscathed. These are, if you like, the John Lobb of wellies, with styles the likes of the Saint-Hubert, Vierzon and Chasseur Le Chameau’s very own classics. “I’m very much fixated with product. That’s what it comes down to in the end – whether the boots are any good,” says Williams. “I’ve spent a lifetime working in fashion retail and I think that is what the customers want more and more now. That’s what I love about the story of Claude Chamot – that he started the company after going out and actually speaking to farmers, hunters and fishermen about what they wanted in a boot. And then he decided to do something about making it.” n

BUSINESS QUARTER | WINTER 14

EQUIPMENT HOW WE MADE IT

BIG BUSINESS QUARTER | WINTER 14

EQUIPMENT

TIME The iconic – and unashamedly macho – Panerai brand of oversized wrist watches have become ultra cool almost by accident, as Josh Sims discovers talking to the company’s enthusiastic CEO, Angelo Bonati >>

BUSINESS QUARTER | WINTER 14

EQUIPMENT When people buy Panerai they buy history – and then a watch. That Italian background is 100% important

BUSINESS QUARTER | WINTER 14

Whichever way you look at it, Panerai is big – culturally, horologically, but, above all, literally. Size has become its calling card. While other companies use gold or diamonds, heft is the factor that gets a Panerai watch noticed on the wrist – that and the fact that its wearer, finding few shirt cuffs will button up over their chunk of metal, will doubtless have no choice but to wear it nicely exposed. Among its bigger wristwatches is one that sizes up at an impressive 60mm diameter. Its smallest is 42mm, still enough for Panerai to lay claim to having pioneered the trend for out-sized timepieces which, over a decade on, is still with us. “Size is what made Panerai feel very new. Panerai’s personality is about being large. And it’s still working that way for us. Big matters and makes us stand out,” says Angelo Bonati, the dapper don who was appointed CEO of the company 14 years ago, when, frankly, mostly only Loope-wielding nerds had really ever heard of it. “Of course, big is not for everybody, and it means we’re not going to do ladies’ watches any time soon, even though around 15% of all our sales are to women buying for themselves. I’m not sure what the appeal is to them. Maybe they think of these watches as being protective, like wearing a good piece of armour.” You could certainly do a lot of damage with a Luminor 1950 Left-Handed 3 Days (47mm), a Radiomir 1940 Chronograph (45mm) or a Luminor Base 8 Days (44mm), among the company’s 2014 models. For each, almost inevitably, demand has been enthusiastic. But why? Panerai, after all, was the brand from nowhere, largely invisible until the 1990s and now a powerhouse watch label owned by the Richemont luxury goods group. It had history on its side – it had been founded way back in 1860 by one Giovanni Panerai, putting it on a par with many other esteemed watch companies. But for decades its output had been minuscule, verging on non-existent. Geography arguably offered a point of distinction: the re-born Panerai may have been made in Neuchatel, one of Switzerland’s watchmaking centres, but it hailed from Florence and, tellingly, was headquartered in fashion hub Milan. Certainly Bonati argues that this made Panerai memorable, but it is hardly the makings of a cult.

“When people buy Panerai they buy history – and then a watch. So that Italian background is 100% important to the success of the company I think. The best way that we have built the brand is by putting that Italian element first,” he says. “It even helped that originally Panerai was from Florence, of course, because that is one of the best cities in the world for art and culture, so there is always that stress on the beautiful and aesthetic, which is very Italian.” Not that beauty was high on the agenda of Panerai’s only customer come its last glory days, during the 1930s, when it was making diving watches, as well as compasses and depth gauges for the Italian Navy, and more specifically – and more exotically and marketably – for its commando units, those heroes of national survival during World War Two, once the British fleet had won control of the Mediterranean. In this, in its distinctive lever bridge device, and in its size – which Bonati chose to retain, even exacerbate, when Panerai was relaunched – the brand clearly had a certain appealing machismo, which Bonati doesn’t deny. “I suppose that, yes, you would have to call Panerai a rather macho brand – it’s just part of its heritage,” he says. “It’s not so macho these days perhaps. As every other brand went through a phase of adopting Panerai sizing, to extremes in some cases, we learned to be more balanced. But sure, an Italian masculinity still comes out. And that tends to be on the particularly macho side – though I like to think it’s nicely rounded too.” But is a Boys’ Own tale and what some might call the gimmick of scale really enough to explain Panerai’s revival? After all, not only is Panerai one of the most sought-after watches – in part a product of carefully and cleverly controlled supply, from a company that could make and sell many more watches – but it has also become one of the most collectible. And not just to the militaria buffs who favour its Marina Militare and Radiomir models (with its innovative radium-based luminosity), nor the Rolex fanatics who knew that their brand of choice had supplied a version of its Cortebert pocket watch movement for the Panerais of the wartime era. Rather, it has become a Patek Philippe for the 21st century young gun, and

EQUIPMENT an investor favourite: a pre-1990 Panerai could once be bought for $1,000 or less. The same would now cost you well over $50,000. “For some 60 years of its history Panerai only produced perhaps 300 units a year – and we continue to keep the quantities low in order to keep that exclusivity. And now there are a lot of people who can afford a lot of watches – so they want something very exclusive,” argues Bonati. This was something recognised early on, when Richemont, celebrating the Radiomir’s 60th birthday, conveniently uncovered 60 dead-stock examples of the original Rolex movements, fitted them in a platinum replica and promptly made back its money; one of these too would now be worth at least 15 times its original price. “I know we could sell a lot more watches than we do, but we’re careful to keep it rare, so to speak. We want to expand more by upgrading what we do rather than by selling more of what we already do. We’re not really into just building market share.” Although the ingredients are all there, how they so successfully mixed seems a mystery, and that’s even to Bonati – the watch industry veteran who can be credited with reinventing Panerai after Johann Rupert, executive chairman of the Richemont group of swanky brands, bought it in 1997 for next to nothing;

the veteran who, for the first six months following, ran the company by himself – that is, literally, on his own. “Sometimes things happen in your life and you really don’t know how. You can make an assessment of it in retrospect but sometimes you still can’t look at a luxury brand and know how it became luxury,” says Bonati, looking genuinely perplexed by it all, but also rather pleased. “There’s no mathematical equation to it. There’s an element of process you can manage. You have to be careful to see luxury status when it comes and work on it – so if

being Italian is fundamental to the brand, you have to make sure you keep it there. Yet even so not all luxury brands are successful and that’s not to say the people running them are stupid at all. It’s just a very complex happening. “The fact is, if you can’t manufacture cool, which you can’t – or at least, not very easily. From a business point of view, all you can do is make sure you make good watches and that the watches aren’t everywhere. You can follow the cool rules but, really, coolness just comes from the market.” n

I know we could sell a lot more watches than we do, but we’re careful to keep it rare, so to speak. We want to expand more by upgrading what we do. We’re not really into just building market share

BUSINESS QUARTER | WINTER 14

XXXXXXXX

BUSINESS QUARTER | WINTER 14

WINTER 14

ENTREPRENEUR XXXXXXXX

EMPIRE BUILT ON A EUREKA MOMENT Having devised a plot as a teenager to revolutionise the way people access the internet, Jonathan Burrows now heads up a near £15m-a-year business recently the subject of a £21.5m takeover and refinancing deal. Andrew Mernin charts the meteoric rise of Sheffield-based Ask4 and finds out where next for the runaway success story

WINTER 14

Like most teenagers, the young Jonathan Burrows had grand ideas of how he would make his mark on the world. His masterplan struck him as an 18-year-old driving home to Sheffield for the weekend from his job down South. His was no teenage daydream, however. This was an idea which would shake up the technology industry and create what is now a £13.5m-a-year empire on the cusp of global expansion. His eureka moment gave birth to Ask4; today one of Yorkshire’s fastest growing technology firms, which earlier this year was bought out and refinanced in a £21.5m private equity deal. It was conceived in 2000 when Jonathan was part way through an IBM placement in Winchester which had him disillusioned. Feeling like a miniscule component in a vast machine – far removed from “doing anything to help customers or have a positive impact on the business” – he sought a new path. “Driving home I started thinking about the way in which people were getting connected to the internet,” he tells BQ over coffee at the Sheffield HQ of his 100-staffed business. “Broadband was just starting to be launched in the UK but if you wanted it, BT engineers came out and physically installed it in your house for hundreds of pounds and with rental costs of £50 or £60 a month. “Recognising that the internet was absolutely going to be the future, I began thinking about how to step past the use of phone lines to connect buildings and connect people because it really wasn’t the right technology. Telephone lines have limited bandwidth and, although we’ve seen broadband speeds increasing over the last 10 years, there is a fundamental physical limit that can’t be exceeded. It was taking an existing network and applying it to a different purpose, which was far from ideal.” But at the IBM campus he had seen how 6,000 staff reaped the benefits of a fibre optic connection. The challenge for Jonathan was applying this expensive technology to the >>

BUSINESS QUARTER | WINTER 14

ENTREPRENEUR

WINTER 14

Anything to do with the internet was sexy back then so the fact that it was an internet business was all they needed to hear

residential market. He says: “A single fibre optic into a house didn’t make sense because of the cost equation. You had to have enough density of users to make it work.” In the backdrop northern cities were in the throes of revival, with European cash being fed into cultural re-development and young professionals being driven into gleaming new central apartment blocks. And so Jonathan’s plan was born; to provide fibre optic broadband to such residential buildings; assuming he could find the finances needed to get it going. “A couple of weeks after the initial idea, through a family connection, I was able to pitch to a bunch of high net worth individuals. “Looking back that was just one of those lucky times. Anything to do with the internet was sexy back then so the fact that it was an internet business was all they needed to hear. In total I raised about £450,000 through two tranches, which covered me for a couple

BUSINESS QUARTER | WINTER 14

of years.” He quit his IBM post and, within weeks of his initial idea, was working in the basement of a Sheffield estate agency, piecing together the building blocks of a business. “What was different about my model was that it enabled users to self-provide. The idea was that when you moved into an apartment, you could pick your package and get connected without needing an engineer to be sent out or to even speak to a human being, which was quite cutting edge at the time.” Ask4’s target market was developers of multitenanted residential buildings. Jonathan’s firm would install the infrastructure and support the technology and customers, while the developer would have an extra pull factor to buyers or tenants. But, says Jonathan, getting started wasn’t easy. “Because the property market was so buoyant, developers weren’t having to work very hard to sell their buildings. They weren’t particularly interested in anything that was going to add

cost or risk. So it took a little while of knocking on the same doors to persuade developers to put the technology into their buildings.” Eventually a 70-apartment block opened up as a pilot location, followed by Ask4’s first commercial site – West One in Sheffield – which the company actually inhabits today, having expanded into it in 2012. Generally the firm agrees long-term contracts to provide its technology to a building’s tenants, outsourcing the fibre optic installation but managing every other aspect such as customer service through its handful of staff. By 2004 the company was flourishing, with the internet gaining traction among residential users and broadband takeup in its buildings twice that of the proportion of the general UK populous.“We were targeting the right demographic; generally younger, more affluent and tech literate people living in city centres,” says Jonathan. Despite Ask4’s positive start to trading, however, its creator believed it wasn’t living up

WINTER 14

to its true growth potential at the time. “We were modestly profitable and could see that the model worked but it wasn’t growing quickly enough. If we could have got it deployed in a hundred buildings per year then we would have had a very nicely profitable business. But it was a question of how we got it to scale quickly enough so that we didn’t run out of cash.” Enter, in 2004, Jonathan Hudson, founder of Horizon Telecommunications. His company offered a similar service to Ask4, but in the student market. He and Burrows saw the benefits of working together and, the next year, Ask4 made Horizon its first acquisition. “That was the catalyst for the exceptional growth. Our compound annual growth rate going back to 2005 is around 70%. “The UK purpose-built student accommodation market was receiving huge interest and investment. We had a growing student population that needed accommodating, while you had universities with ageing residential stock recognising they should not be in the accommodation business. “Taking all these trends together there was this really buoyant market for purpose-built student accommodation. Very early on we identified and sought to become a supplier of choice to the biggest, most aggressive operators – those that were going to grow their businesses very significantly. A huge amount of our growth has come from being an engaged partner of those companies.” This year Ask4 expects turnover to come in at around £13.5m, 25% more than last year, with the company serving 300 student buildings spread across the UK from Aberdeen down to Exeter in the South West. As well as providing services to an additional 5,000 residential users, it also has a growing stable of business centres among its customers. This market opened up slowly when the firm realised it could make full use of the capacity it needs to have in place for peak times. Instead of its infrastructure being underused during the day, with most students in classes, business centre traffic could fill that gap. This division was built on the back of the acquisition of Sheffield firm W2 Networking in 2009. That deal also saw the company assume ownership of an initially disregarded

ENTREPRENEUR

I could see the model worked but it wasn’t growing quickly enough bonus – a data centre. But after converting a more suitable site in Attercliffe, Sheffield, into a ‘tier-2’ data centre, this is now a central part of another growing aspect of the business. “We were taking data centre space in cities all over the UK and we weren’t really in control of our own destiny. We also had clients asking us if we could provide them with co-location services, taking servers out of cupboards in back offices and providing an appropriate environment,” says Jonathan. Ask4 grew by 73% between 2011 and 2013 and is aiming to double in size within five years. A powerful ally in this growth plan in the coming years could be Darwin Private Equity, which bought a majority stake in the business in January this year for £21.5m. The transaction was the culmination of months of talks with around a dozen investment groups that had shown an interest in the company. The deal allowed a number of shareholders to step back from the business and provided returns for the original investors. Burrows’ long-time business partner Jonathan Hudson had also decided to take a step back from the business, with a young family in the

background. Despite being just 32, Burrows himself briefly considered cashing out. But his belief in the future potential of the business meant dreams of a remarkably early retirement were only fleeting. “It’s a journey I could see continuing. What’s been great about my career is that I’ve been having new problems all the time and have always been at the outer limits of my experience and that keeps it interesting.” Choosing the right private equity investor was a process fraught with danger, however. “We met with a dozen private equity firms and there was a lot of interest in our business. Darwin had done a huge amount of homework on the market and they really understood the dynamics that drove our business. There was a real meeting of minds from day one and they weren’t just interested in the numbers. “That was in fairly stark contrast to some of the other people we met who had done minimal work to understand our market.” With the dust settled on the deal, has the decision paid off? “Our relationship has been very positive so far. We were quite careful in picking a partner that we felt had people we could work with. There were situations with other private equity investors where I would not want the person on the board of my business and felt I would be in conflict with them from the start.” Looking forward Ask4 expects to continue along its upward trajectory in the student, residential, business and hosting markets. It also has an eye on taking its services abroad. “We have aspirations for very significant growth in the next five years and we see that coming from growth in the UK. “We are then looking very, very hard at a number of international territories. “We are also looking at other residential markets, such as elderly and infirm care or the military.” With everything seemingly in place for further diversification and global expansion, Burrows’ decision to stay with his business looks a wise one. And having turned a simple idea into a fast growing business, he is proof of what can be achieved by looking at an existing market from a different angle. n

BUSINESS QUARTER | WINTER 14

INTERVIEW

WINTER 14

HEADER TO GO HERE XXXXX XXX

RISING TO NEW CHALLENGES BUSINESS QUARTER | WINTER 14

WINTER 14

INTERVIEW

With the £400m Trinity Leeds shopping centre he oversees now almost full, Gerald Jennings has much reason for optimism in 2015. He also has a new influential role to contend with in the New Year, supporting businesses through what could be a pivotal 12 months for the regional economy. Here he takes a break from orchestrating the festive sales rush to talk to Andrew Mernin Whatever challenges await Gerald Jennings as he takes control of one of Yorkshire’s most influential business groups, they surely won’t match those he faced during the recession. In the depths of the downturn, he had to explain to an entire region why his paymasters had ripped a giant hole into the heart of Leeds and left it there for 15 months. Land Securities, having begun its ambitious Trinity Leeds shopping centre project in 2008, took the decision the following year to stop working on the project until the dire economic conditions improved. “There was such an expectation because we were building a new heart of the city centre, but the recession was really hitting home,” says Jennings who, until the project got going again in 2010, bore the responsibility of justifying the decision to down tools. “The challenge was communicating to key stakeholders why we had to stop and that we had every intention of going back on site once we had worked our way through the economic difficulties. We had to give retailers enough confidence to commit to joining us and investing in the city centre.” Although not keen to dwell on personal upheaval now, the incoming president of Leeds Chamber of Commerce was also dealing with a testing family crisis at the same time. His son’s three-year fight with leukaemia put his professional pressures truly into perspective, no matter how demanding they might have seemed. “The team at Land Securities were fantastic in supporting me,“

he says. Fortunately that battle had a happy ending and his now healthy son is a graduate thriving in the Yorkshire property industry. And Trinity Leeds turned out pretty well also, opening last year to great acclaim and now at 99% occupancy thanks to its latest tenant, a new £1.5m Brazilian barbecue restaurant. “My office overlooks the centre and to see 135,000 people on the opening day was a proud moment for everybody involved.” As Land Securities’ portfolio director, Jennings’ remit covers Trinity Leeds, the White Rose centre in the south of the city, and St David’s shopping centre in Cardiff. White Rose, which is actually the project he is most proud of in his circa 15 years at Land Securities, is earmarked for an ambitious expansion with plans for a 13-screen cinema and shopping arcade with restaurants. “White Rose has consistently over the last 17 years been in the top two or three of our best performing assets,” he says. In the wider Land Securities group, it’s perhaps unsurprising that Leeds has received more investment than anywhere outside London in recent years, given the £378m Trinity Leeds bill. The company’s apparent faith in the Yorkshire market is in contrast to cities like Bristol and Sunderland where sites have been offloaded in favour of opportunities in Glasgow and the South East. A stake in the Bluewater centre in Kent, and a thriving office portfolio focused only on London, are also contributing to the group’s current strong performance. The firm sold £186m worth of

www.rilwood.com

assets in its half-year to September, and at the time of writing, a further £469m since then. Half-year, pre-tax profits jumped from £397.9m to £1bn, it reported recently. With Leeds remaining part of what the company calls a ‘reshaped’ retail portfolio, Jennings is now focused on adapting quickly to shifting trends among shoppers to ensure healthy numbers are maintained. “We’ve been very careful to analyse how consumers are thinking about their retail experience and how the Internet is affecting consumer behaviour,” he says. “It’s about understanding what the retail market’s going to look like in 12 months or five years’ time and planning ahead. But in doing so you have to retain a degree of flexibility because the retail market is dynamic and consumer habits and expectations can change quickly. You have to be fleet of foot enough to react. But also you can never know exactly what’s going to happen. Something can happen which blows you sideways.” One trend set by centre owners is the ever accelerating creep of non-shopping facilities like food courts, cinemas, bars and entertainment spaces. This is vital in the battle for footfall against the unstoppable charge of online retail and, says Jennings, Trinity Leeds is 25% leisure, compared to the average of around 15 to 20%. White Rose Centre, meanwhile, recently completed a £7m food court refurbishment. “With 10%+ of shopping now through the internet – probably heading towards >>

08712 888888

info@rilwood.com

BUSINESS QUARTER | WINTER 14

INTERVIEW

WINTER 14

To see 135,000 people on the opening day was a proud moment for everybody 15% – we have to think what is it about the experience of coming out that’s going to be special for people? So the idea of providing theatre in that space and experiencing something different is important to the success of a shopping centre as well as a high street. “The advantage shopping centre owners have in delivering that experience is that they manage the whole of that space, whereas in a lot of our high streets or city centres, the ownership is quite fragmented. If you have 1,000,000 sq ft as we do at Trinity Leeds, we can deliver that ‘everyday wonder’ with anything from busking competitions to pop-up youth orchestras.” And what of Business Improvement Districts (BIDs)? Might they hold the key to bringing together high street retailers, shopping centres and city centre influencers to collectively boost the draw of real world shopping? Certainly Jennings believes so, having witnessed their power elsewhere, and he is enthused by their emergence in Yorkshire. BIDs are business-led and backed with a levy paid by traders which is used to support coordinated investment in the management and marketing of a commercial area. Leeds is the biggest UK city currently without a BID in place – with over 170 running across the country. But businesses will vote in February for the Leeds BID, following a lengthy

BUSINESS QUARTER | WINTER 14

consultation process, and, if successfully implemented, it is expected to bring £2.5m of direct investment into the city centre annually over its initial five-year term. Sheffield businesses will also go to the polls in February for their own BID vote, while the smaller shopping hubs are considering, or already embracing, BID regimes. “Shopping centre owners who understand they are part of a bigger piece than just their ownership are the ones which have been most successful in BID cities. “BIDs are not the silver bullet but they are one way that we can get people working collaboratively to improve the experience in the city centre.” Even without BIDs, conditions have been relatively favourable for city centre retailers lately. Against a worsening global economic picture, consumer spending has driven Britain’s recovery and at the last count, in October, sales volumes rose by 0.8% on September, boosted in particular by furniture sales. While the picture for 2015 is broadly upbeat, one PwC report warned in November that this credit-powered spending spree could only last so long – perhaps slowing in 2016. Jennings’ own forecast comes with a note of caution: “With the general election coming up in May, we’re not quite sure how that might affect the consumer mind-set and therefore

the consumer’s propensity to spend. There’s always a bit of uncertainty as you approach a general election and consumers might wonder what the result is going to mean to them. Will they have less disposable income? But if we took the general election out of the frame, I think we would be cautiously optimistic.” Aside from the impact of economic and political forces, technology is also dictating the current fortunes of retailers – for better and worse. Although depleting shopper density on any given Saturday, internet retail has given rise to ‘click and collect’, and the practice of trying in store, before buying at home. As Jennings explains, the only way for retailers to respond is by stepping in line with the new world order of shopping. “Click and collect has been gathering momentum for a little while,” he says. “I think there’s always a difficulty in saying this is the new paradigm, this is the new world and you have to jump in with both feet. I think you have to be more considered and take an appropriate amount of time to really understand, is this a theme that is going to be continuing or is it just one of those new ideas which will burn bright and fade out? “Click and collect is here to stay we believe and, as a shopping centre owner, we make sure that we engage as much as we can with our retailers to help them provide that service, through the website, digital media, mobile telephony and tablets – the whole span of digital media technology that enables communication with customers.” Land Securities is also rolling out ‘beacon’ technology across its centres. This enables customers to receive targeted, location specific offers and discounts on their smartphones when they are visiting the centre. Clearly market trends make such technology attractive to retailers, since shoppers are now seemingly inseparable from their mobile devices. Research commissioned by Google this year found that 30% of UK shoppers make purchases via their smartphone at least once a month, compared to 8% in France, 15% in Germany and 19% in Sweden. “Beacon technology enables the immediacy of communication, but it has to be used in such a way that the consumer gets what they want and is not having something forced upon

WINTER 14

them. It’s about retailers communicating with consumers across the whole platform in the physical space, the internet and on devices.” Meanwwhile, as well as staying in tune with the needs of individual retailers, Jennings is tasked with supporting businesses across the board in his chamber role. The current vice president of Leeds Chamber of Commerce will step up to the president’s berth in the New Year. As he makes his way round the member businesses and “starts conversations” with non-members, much of the talk may be flavoured by the electioneering going on at Westminster and here in Yorkshire in the run up to the election. No doubt the coming months will see the volume cranked up on talk of the ‘northern powerhouse’ – the interconnected northern cities concept in which Jennings believes retailers have an important role to play. “For it to truly work every part of the city’s DNA needs to work together, so retail is a hugely important part of that. In many ways it can be the glue that keeps a city together and can be the reason why people connect to a city, and spend their time and money in it. If we want places like Leeds, Manchester and Newcastle to be seen as thriving European cities, we need to make sure that the visitors arrive thinking this is a great place.” And Jennings is firmly in support of more devolved powers for the North. He also

places the push for transport infrastructure improvements among the “big ticket” items topping his agenda. “Pandora is out-of-the-box on [devolution] and there’s no putting it back in. It is going to happen, but we need to define it a bit more.” With his chamber hat on, Jennings believes he has a responsibility to dispel what he sees as myths about membership organisations. “When you think about chambers the perception can be that they are a bit stuffy or too redolent of a past era, or that they don’t have enough diversity of membership. Rather than just looking after the businesses that they always have, they need to think about new businesses and younger entrepreneurs. I would like the chamber to be seen as a forward-thinking, dynamic and challenging organisation that represents the views of the whole of the business community.” A busy 2015 awaits Jennings, despite suggestions from some at a recent awards dinner that his career could be winding down. He won the Lifetime Achievement title at the Yorkshire Property Awards 2013, prompting colleagues to point out that such accolades spell the twilight years of an individual. But with numerous other influential roles on his plate, besides the day job and chamber post, and covering the arts, business, education and social enterprise, there are no signs of this tenacious leader slowing down. n

www.rilwood.com

INTERVIEW

Gerald’s fact file The son of a North Wales dairy farmer, Gerald Jennings’ early career path took him to Liverpool City Council, working in the days of ‘militant firebrand’ deputy leader Derek Hatton. “I realised if I could get a property deal done in those conditions, I could do one anywhere,” he recalls. Then, from 1985 until 1999 he worked for Burton Group, during which time it was seemingly buying up every retail space on the high street. “It was such a force to be reckoned with in retail property and it was a whirlwind of an experience,” says Jennings, who left the firm when recession hit. From there to the present day he has worked for Land Securities, while also having a jam-packed diary featuring numerous other influential roles. Today, these include: • Trustee director at Project Space Leeds, owners and curators of the centre for contemporary art and learning • Director at the Ahead Partnership, a social enterprise that connects businesses and schools • Chair of ARISE, an initiative working in south Leeds that aims to help charities, voluntary groups and individuals that seek to make a difference in their communities • Vice president of the Leeds Chamber of Commerce • On the Leeds City College Board of Governors • Co-chair of the Leeds Poverty Truth Challenge • Member of the Lord Mayor’s Charity Committee • Member of the Leeds Planning and Developers Forum • Steering group member of the Leeds Property Forum • Corporate member of Leeds Civic Trust

08712 888888

info@rilwood.com

BUSINESS QUARTER | WINTER 14

BIT OF A CHAT

WINTER 14

>> Inspiration awaits

with Frank Tock >> Show them the red card! One of Yorkshire’s leading hotels is chasing a £50,000 unpaid debt from the recent stay of a top flight football club, BQ learned recently. And you thought the beautiful game was a billionaire’s play thing awash with cash in which spending knows no bounds. Think again!

Keep an eye out in the coming weeks for news of BQ’s Emerging Entrepreneurs event in Yorkshire which will return in the New Year after a successful inaugural event in 2014. BQ invited some of Yorkshire’s top entrepreneurs to bring along an up-and-coming business leader for a relaxed evening of insight, networking and celebration of success. A great time was had by all – and valuable connections were no doubt made – and we’re delighted to follow it up in 2015. www.bqlive.co.uk

>> An ill wind… “It might have dampened the start of the week across the UK, but for many diversifying farmers the weather brought a power generation windfall,” read a press release from a wind turbine firm in the aftermath of hurricane Gonzalo. The same hurricane which left three people dead in the UK and several children injured. Every cloud eh?

>> Technology with a heart The last 12 months have brought numerous headlines about technology being used as a force for bad. Terrorists harnessing the power of social media, Russian hackers accessing home web cams and video games inspiring violence. But an accelerator programme in Sheffield is hoping to remind people of the good stuff that technology can achieve. New tech ventures that address a big social challenge have been offered the chance to vie for £30,000 investment, three months of free office space in Sheffield, a further eight months incubation and access to up to 80 world-class mentors. It is run by Dotforge Social Ventues, fronted by Plusnet founder Lee Strafford and Emma Cheshire, programme director. She said of the scheme: “It’s a fantastic way to ignite the economy in Yorkshire and create positive social impact.”

>> Financial fall out It’s not often a bank will turn away business from a multi-millionaire, not to mention one with a reported fortune of £550m. But that is what RBS effectively did when it informed Yorkshire entrepreneur Lawrence Tomlinson that he must find someone else to bank with. Obviously the two parties have previous, given Tomlinson’s 2013 report which accused RBS of systematically destroying viable businesses – although RBS insists the decision has nothing to do with the report. In the meantime, Tomlinson was forced to find new bankers for his firm, that employs 2,000+ people, after 20 years as a customer. The bank did eventually back down over the mortgage on his home, however. With the Financial Conduct Authority expected to publish its report into Tomlinson’s strenuously denied allegations in early 2015, the Ginetta boss may well have the last laugh. And whatever conclusions are drawn, it will hopefully pave the way for a repairing of the trust between businesses and banks.

BUSINESS QUARTER | WINTER 14

>> Dreaming of a white collar Christmas As you switch off from the day job this Christmas to spend time with family, perhaps you’ll get lost on the Monopoly board or in a game of Risk. But you might want to make the most of this most traditional forms of escapism for it is soon to be invaded by the corporate world, if an emerging trend continues to gain momentum. Gamification is the buzzword that has HR managers and team-builders licking their lips right now. Companies are, apparently, using specially designed board games to “tackle a diverse range of issues including communicating corporate strategy, vision and values, company initiatives, and even climate change,” says Yorkshire communications agency Words&Pictures. It has created specially adapted games for staff at easyJet, Provident Financial and Anglian Water, which now has its staff playing a James Bond-themed game called Liquid Assets. With some of the UK’s biggest firms getting their game on, expect more of the same in a training room near you soon.

A MAJOR EVENT TO INSPIRE, MOTIVATE & SHARE BUSINESS SUCCESS

Emerging Entrepreneur Dinner 2015 Yorkshire: 26th February, Leeds BQ Magazine continues to support and encourage entrepreneurship across the UK. Our mission is to recognise and celebrate the contribution that entrepreneurs make to our economy, whilst encouraging and motivating others to succeed in business. The BQ Yorkshire Emerging Entrepreneur Dinner is being held in conjunction with MADE: The Entrepreneur Festival 2015, the UKâ&#x20AC;&#x2122;s largest annual festival of entrepreneurship. Be inspired, gain practical advice and celebrate as our successful entrepreneurs and emerging talent tell their story. Join BQ and BBC Home News Editor Mark Easton for an evening of chat, celebration and recognition on Thursday 26th February in Leeds.

Winning BQ Emerging Entrepreneur of the Year 2014 was an incredible honour that reflects the hard work we have been doing at Geco Industries. The award significantly raises the profile of Geco Industries and being presented at the MADE festival adds to this. LEWIS BOWEN, GECO INDUSTRIES

Entrepreneur MADE The Festival: Sheffield

Join us for an inspiring evening in celebration of entrepreneurship www.bqlive.co.uk/eedinner/yo Book your place now by contacting bryan@room501.co.uk or call Bryan Hoare on 0191 426 6300

Nominations for 2015 NOW OPEN Visit www.bqlive.co.uk/eedinner/yo

EVENTS

WINTER 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 editor@bq-yorkshire.co.uk and please put ‘BQ events page’ in the subject heading

JANUARY 7 York Chamber Business Lunch, Maxi’s Restaurant, Ings Lane, York. Meet valuable business contacts, raise your company profile and hear from a topical business speaker. Informal networking starts this event, followed by a two course lunch with a pre-planned seating plan. Call 01904 567 838 to reserve a place. 8 Marketing on a Shoestring, Leeds Chamber of Commerce, 2nd Floor, Elizabeth House, 13-19 Queen Street, Leeds, LS1 2TW. Call 0113 247 0000 to book. 14 Crossrail Supply Chain Conference, 1.30pm to 4.30pm, hosted by Leeds City Region Local Enterprise Partnership, AMP Technology Centre, Advanced Manufacturing Park, Brunel Way, Rotherham, S60 5WG. Email lcr@leedscityregion.gov.uk for more details and to register interest. 15 PR for Beginners, Leeds Chamber of Commerce, 2nd Floor, Elizabeth House, 13-19 Queen Street, Leeds, LS1 2TW. Call 0113 247 0000 to book. 15 E-commerce – It’s All About Conversations, 9am – 11am, The Chimney House in Kelham Island, Sheffield. An invitation only event. Interested parties should contact Alex Hughes at ahughes@ignitionsearch.co.uk or 0114 272 2444. 16 Construction Lunch in York. Meet valuable business contacts and raise your company profile within the construction sector. Also to hear from a topical business speaker. Hazlewood Castle, Paradise Lane, Hazlewood, Tadcaster. Call 01904 567838 to book. 20 Pure Networking in York, 7.30am – 9am, Dean Court Hotel, York. Call 01904 567 838 to book a place. 22 Social Media: How it Works, Leeds Chamber of Commerce, 2nd Floor, Elizabeth House, 13-19 Queen Street, Leeds, LS1 2TW. Event is fully booked but call 0113 247 0000 to be added to waiting list. 22 We Are International Export Network, for anyone who wants to start exporting or to be inspired to go global and grow venue TBC, Halifax. Call 01274 206660 or email events@bradfordchamber.co.uk for more details. 23 Chamber’s Business Lunch in Scarborough, 12 noon – 2pm, McCain Foods, Scarborough, call 01904 567 838 to book. 23 Setting up a presence in China, half-day workshop for companies looking to establish a formal presence in China to help them make an informed decision as to the best route to market and the challenges they may encounter. 9.30am – 2pm, The Stable Block, Brewery Drive, Lockwood, Huddersfield, HD4 6EN, contact Joanna Lavan at ConnectChina on atjoanna@connectchina.co.uk for more information. 26 Hull & Humber Chamber of Commerce trade and investment mission to Malaysia. Find details on www.hull-humber-chamber.co.uk 27 We are International Export Network event, anyone who wants to start exporting or to be inspired to go global and grow, 4.30pm – 6.30pm, Yorkshire Bank, York, call Mike Strawson on 0845 034 7200 to book a place. 30 Chamber Annual Dinner Leeds, 6.45pm – midnight, The Queen’s Hotel, Leeds, email alicia.oakes@yorkchamber.co.uk or call 01904 567 838 or 0113 247 0000 to book.

FEBRUARY 4 York Chamber Business Lunch, Hilton, York. Call 01904 567838 to reserve a place. 5 Search Engine Optimisation: How it Works, 10am – 12 noon, Leeds Chamber of Commerce, 2nd Floor, Elizabeth House, 13-19 Queen Street, Leeds, LS1 2TW. Call 0113 247 0000 to book.

BUSINESS QUARTER | WINTER 14

10 Networking Skills, Handy Hints and Tips, 10am – 12 noon, Leeds Chamber of Commerce, 2nd Floor, Elizabeth House, 13-19 Queen Street, Leeds, LS1 2TW. Call 0113 247 0000 to book. 12 Chamber Business Lunch in Harrogate, 12 noon – 2pm, Hotel du Vin Harrogate, call 01904 567 838 to book a place. 17 Understanding Export and Export Documentation, 9.30am – 4.30pm, The Stable Block, Brewery Drive, Lockwood, Huddersfield, HD4 6EN, email jo.palmer@mycci.co.uk for more details. 19 Pure Networking in York, Middlethorpe Hall & Spa, York, email alicia.oakes@yorkchamber.co.uk or call 01904 567838 to book a place. 19 How to Increase Your Sales, 10am – 12 noon, Leeds Chamber of Commerce, 2nd Floor, Elizabeth House, 13-19 Queen Street, Leeds, LS1 2TW. Call 0113 247 0000 to book. 26 BQ Yorkshire Emerging Entrepreneur Dinner 2015, Aspire, Leeds. Be inspired, gain practical advice and celebrate as our successful entrepreneurs and emerging talent tell their stories from across Yorkshire as part of the build up to MADE: The Entrepreneur Festival 2015. www.bqlive.co.uk/eedinner/yo 27 Hull & Humber Chamber of Commerce Annual Dinner, the Rt. Hon. Ed Balls MP, the Shadow Chancellor of the Exchequer, will be the Chamber’s VIP guest speaker just weeks before voters go to the polls on 7 May. Plus comedy and fun with ‘The Man From the Coal Board’, Brian Newbold. 7.30pm for 8pm, The Mercure Hull Grange Park Hotel, Willerby, HU10 6EA. Visit www.hull-humber-chamber.co.uk for more details and for tickets.

MARCH 2 York Property Forum, 5pm – 7pm, The Royal York Hotel, York. Call 01904 567 838 to book 5 Marketing on a Shoestring, 10am – 12 noon, Leeds Chamber of Commerce, 2nd Floor, Elizabeth House, 13-19 Queen Street, Leeds, LS1 2TW. Call 0113 247 0000 to book. 9 Maintaining a vibrant Harrogate town centre, debate with HBC Officers, consultants Peter Brett Associates and Harrogate Chamber’s Town Centre Focus Group. Pannal Golf Club, Harrogate, call 01423 872 628. 12 PR for Beginners, 10am – 12 noon, Leeds Chamber of Commerce, 2nd Floor, Elizabeth House, 13-19 Queen Street, Leeds, LS1 2TW. Call 0113 247 0000 to book. 12 Business Lunch in York at Venturefest, event running as part of Venturefest York (www.venturefestyorkshire.net), 12 noon – 2pm, York Racecourse, call 01904 567 838 to book. 19 Pure Networking in York, 7.30am – 9am, Belmont Suite, Betty’s, York. Call 01904 567 838 to book a place. 19 Social Media: How it Works, 10am – 12 noon, Leeds Chamber of Commerce, 2nd Floor, Elizabeth House, 13-19 Queen Street, Leeds, LS1 2TW. Call 0113 247 0000 to book a place.

The diary is updated daily online at www.bqlive.co.uk Please check with contacts beforehand that arrangements have not changed. Events organisers are also asked to notify us at the above email address of any changes or cancellations as soon as they are known.

By Appointment to Her Majesty The Queen Information Technology Services Technology Services Group Newcastle upon Tyne

TSG recommends

ISO 9001

Integrated. Converged. Trusted. Building a modern technology environment requires strong

With six Microsoft Gold Competencies and a precious Royal

and solid foundations.

Warrant, we’re equally at home with the applications that drive

Compatibility and connectivity are critical. Blind alleys are to be avoided. For businesses of all sizes in all sectors, Microsoft Office 365 is the logical starting point. More importantly, it can open the door to collaboration and communication tools that could

your business as we are with the telecoms, connectivity and infrastructure – both physical and virtual – that underpin them. That’s why thousands of business trust Technology Services Group to provide the guidance and support needed to maximise the value of their investment in ICT.

transform the way your teams work.

To find out more visit www.tsg.com/trusted or call 0845 11 11 888 to speak to one of our experts.