BQ Yorkshire Issue 24 by We Are UMi

www.bqlive.co.uk

ISSUE TWENTY FOUR: SPRING 2015

RACING AHEAD Doncaster Racecourse gallops into a new era RISKY SHADES OF GREY DJ turned businessman David Grey on taking chances MAKING FAT PROFITS How a veggie favourite was rescued by meat-eaters! A TWIST IN THE SALE Twisted Defender’s rise to become a global phenomenon ISSUE TWENTY FOUR: SPRING 2015: YORKSHIRE EDITION

BOLD VISION

Entrepreneur Natalie Sykes discusses the region’s future BUSINESS NEWS: COMMERCE: FASHION: INTERVIEWS: MOTORS: EVENTS

YORKSHIRE EDITION

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WELCOME

BUSINESS QUARTER: SPRING 15: ISSUE TWENTY FOUR Pre-election uncertainty which was supposed to have business leaders in a state of inertia right now seems to have been a red herring. Entrepreneurs we’ve spoken to for this issue are going full swing into growth plans and overseas expansions regardless of what may or may not happen in May. At Twisted Defender – which transforms classic rural vehicles into super machines – plans are underway to open up bases on two separate continents. Find out how turning a potentially damaging decision on its head is paying off and bringing the world’s royals and A-listers to Thirsk. Another global Yorkshire brand, Quorn, is also in a pivotal year right now as it capitalises on booming sales abroad. Its success is not being driven by the veggie market, but rather carnivores who are becoming increasingly health-conscious. We discover how the food giant intends to build on its success and change the world’s eating habits. This issue we also speak to two entrepreneurs in influential seats of power nationally. Natalie Sykes is breathing new life into the Institute of Directors and helping to bring young business talent to the fore. David Grey is Sheffield’s enigmatic Master Cutler and a passionate manufacturer bending the government’s ear on what this crucial sector needs to thrive. Both figures are also hugely successful entrepreneurs in their own right who’ve faced numerous barriers along the way and cleverly overcome them, as they explain to BQ. You’ll find plenty more practical advice on beating business challenges in our BQ Live Debate, which this issue focuses on getting enterprises off the ground and keeping them there. Watch out also for inspiring interviews with export champion Jim Hart of One Global and Darren Padgett, the PE teacher who became an entrepreneur that is revolutionising sport in schools and businesses.

We also drop in at historic Doncaster Racecourse and find out how it is also undergoing sweeping changes. Meanwhile, after several years with BQ, I’m sad to say this is my last edition as editor. While I’m moving on to pursue new opportunities, I’m pleased to say we have a sterling replacement in Mike Hughes. He joins following a career in business journalism spanning more than 30 years, which has included senior roles at the Birmingham Post and Evening Gazette newspapers. Mike told me: “I’m delighted to be the new editor of BQ magazine in Yorkshire. It’s a region packed with outstanding business successes and I’ll be highlighting the very best of them as they help create such a bright future for the county.” I leave with many happy memories of the inspiring entrepreneurs and determined leaders that make this such a fantastic place to do business. I’m also grateful to our loyal readership who truly make BQ what it is. My highlight has to be experiencing the sheer diversity of businesses here. Where else in the world could you meet juke box, crisp, knickers, chocolate, bus and race car makers all in one week? My lowlights are few – and all involve getting lost on the road somewhere in this great county. I wish Mike the best of luck and strongly advise him to buy a Satnav. Happy reading! Andrew Mernin, editor, BQ Magazine

CONTACTS ROOM501 LTD Bryan Hoare Director e: bryan@room501.co.uk EDITORIAL Mike Hughes Editor e: mikehughes@room501.co.uk DESIGN & PRODUCTION room501 e: studio@room501.co.uk PHOTOGRAPHY KG Photography e: info@kgphotography.co.uk Chris Auld e: chris@chrisauldphotography.com SALES Hellen Murray Business development manager e: hellen@room501.co.uk t: 0191 426 6182 / 07551 173 428 Alan Dickinson Associate publisher e: alan@room501.co.uk t: 07917 733 047 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. All contents copyright © 2015 room501 Ltd. All rights reserved. While every effort is made to ensure accuracy, no responsibility can be accepted for inaccuracies, howsoever caused. No liability can be accepted for illustrations, photographs, artwork or advertising materials while in transmission or with the publisher or their agents. All company profiles are paid for advertising. All information is correct at time of going to print, March 2015. room501 Publishing Ltd is part of BE Group, the UK’s market leading business improvement specialists. www.be-group.co.uk

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YORKSHIRE EDITION

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

BUSINESS QUARTER | SPRING 15

CONTE BUSINESS QUARTER: SPRING 15

RACING AHEAD

Features

46 BQ LIVE DEBATE Business leaders share their views on maximising growth opportunities

20 DRIVEN BY PASSION Serial entrepreneur Natalie Sykes reveals her vision for the future of the region

26 RACING AHEAD Ambitious Kieran Gallagher is steering Doncaster Racecourse into a new era

32 A TWIST IN THE SALE How small company Twisted Defender became a global phenomenon

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52 SHADES OF GREY Former DJ turned business leader David Grey discusses his varied career

74 HEART TO HART Global adventurer Jim Hart reveals exciting plans ahead for his company

78 MAKING FAT PROFITS How veggie staple Quorn halted its decline â&#x20AC;&#x201C; thanks to meat-eaters!

26 A TWIST IN THE SALE

TENTS YORKSHIRE EDITION

38 COMMERCIAL PROPERTY

SHADES OF GREY

Behind the region’s biggest deals

60 WINE Businessman Simon Hamilton enjoys a heavenly tipple after a journey from hell

Regulars

60 MOTORING Jazz lover Noel Dennis clocks up the Maserati miles with Miles Davis

66 FASHION 06 ON THE RECORD Ready for take off – we talk to the man behind the region’s newest airport

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

Josh Sims meets the Italian boss of an American firm that defined a nation

70 EQUIPMENT Trends are fickle, but quality endures in the watch industry, Josh Sims discovers

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

18 AS I SEE IT Finance expert Nick Brier explodes the myths behind the doom-laden headlines

HEART TO HART

82 EVENTS Key business events for your diary

74 BUSINESS QUARTER | SPRING 15

ON THE RECORD

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>> Ambitious plans beginning to take flight The entrepreneur behind the region’s newest airport says the response to the project has been overwhelming since he announced it to the world Chris Makin is in the process of transforming a former RAF base in North Yorkshire into a commercial aviation hub which will support 100 new jobs once up and running. RAF Church Fenton was one of the country’s most important airfields during the Second World War, thanks to its position near the industrial heartlands of Leeds, Bradford and Sheffield. Makin aims to make the new site, now known as Leeds East Airport, a thriving transport hub and a home to a mix of businesses. Its locality is today made all the more attractive to aviators by the two major train lines snaking within a few miles of its borders. Its eastern reaches are flanked by the East Coast Mainline, linking London and Scotland via Leeds and Newcastle. To the west is the Manchester Airport line, providing a direct link across to Hull. “No other airfield in the UK has such good

BUSINESS QUARTER | SPRING 15

connections,” says Makin. “In journey time, we are closer to Leeds city centre on a train than Leeds Bradford Airport is by coach. But it’s also fantastic from an aviation point of view in that it is 29 feet above sea-level, with four approaches on two runways, and also there are very few houses around it.” The height of the airfield will play an important factor in its success as a commercial entity, says Makin. The site is offering aircraft, with up to around a 20-seat capacity, an alternative to Leeds Bradford Airport (LBA). While Leeds East is relatively low lying at 29 ft above sea level, LBA is the highest airport in England at an elevation of 681ft. This makes it more vulnerable to closure due to adverse weather conditions. And, says Makin, landing a smaller aircraft at Leeds East is far more appealing from a safety point of view than at its significantly larger neighbour.

There is certainly evidence to suggest an appetite for a new, publicly accessible airfield in West Yorkshire. A recent open day at Leeds East saw 250 aircraft land there in four hours, when only 50 had been expected. The site comprises 450 acres with two paved runways (1,800m long and 46m wide) and 200,000 sq ft of buildings. The Ministry of Defence decommissioned it in December 2013 as part of cost-cutting measures. Makin’s other plans for the site include opening a training school for fixed wing and helicopter training catering for private and commercial pilots. Work is currently underway to transform the main hangar into a glass-fronted terminal akin to what the clientele the site may attract are likely to expect at a commercial airfield. Alongside Leeds East, Makin runs a diversified family business that includes farming and fresh food production and which supplies

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millions of punnets of strawberries a year to Morrisons and Aldi supermarkets. Getting the airfield project to a profitable and sustainable position, however, is now his main remit: “I’m passionate about aviation and keen to return this historic site to its full operational glory. We’ve received overwhelming support from the community and had incredible interest from people wanting to base their planes in hangars at Church Fenton. This airfield has unlimited potential for growth and suited developments, from commercial storage to business aviation. With fantastic rail links and sound geographical placement we will soon offer an outstanding gateway to visitors to the region.” As well as interest from aviators, Makin has been in discussions with universities, including Leeds Beckett, with a view to potentially setting up a base in one of its hangars. There has also been interest from the motors industry – which might capitalise on the vastness of the airfield to put vehicles through their paces. The movie industry is also potentially interested in getting involved, according to dealmaker David Aspland of national property consultancy Carter Jonas. Aspland, who acted for Makin Enterprises in the purchase of the site from the RAF, says positive discussions have taken place with the regional film agency Screen Yorkshire. And he believes the commercial potential of the site generally is significant. He says: “There is a burgeoning film industry here and we’d be keen to add to that with this fantastic location. Together with Makin Enterprises, we will work with the local community and planners to fully embrace the site’s flying history, while developing additional uses to ensure its healthy future.” The deal with the RAF came amid tough competition from other parties. The official handover of the site was marked on Sunday 4 January with a ‘fly-in’ that brought 800 visitors to the airfield near Tadcaster. Carter Jonas continues to market the site and correspondence from interested parties is welcomed. In the meantime, Makin and his team are busy “tidying up” after the RAF vacated and expect to announce further developments at the site soon. n

ON THE RECORD

>> Confidence remains high despite uncertainty Despite talk of pre-election uncertainty and sluggish growth in some sectors, the first quarter of 2015 has brought plenty of reason for optimism among the region’s entrepreneurs Unrest and instability may be worsening in several global territories, but Yorkshire & Humberside business leaders are ploughing on into export markets regardless. A recent report by the British Chambers of Commerce and DHL Express found that 58% of British exporters are confident their profitability will increase this year despite numerous crises such as the Ukraine conflict. Within that report, Yorkshire & Humberside showed the highest increase in exports activity alongside London and Wales. Government stats published at the end of February, meanwhile, showed that 141,740 new businesses had been founded in the region since 2010. Since the figures were compiled under the by-line of Tory MP Matthew Hancock it was perhaps unsurprising that the failure rate of those businesses was not calculated in this sensitive time of vote-hunting. The government may tell us that such business creation figures are thanks to schemes like Start-Up Loans, which has awarded 2,117 entrepreneurs in the region a combined £10m in funding. And that funding has undoubtedly had a

positive impact. But credit must also go to those behind the growing number of startup incubators in these parts. The latest is the InTechnology Enterprise Incubator at the University of Leeds. A wide range of businesses, including a sustainable childrenswear brand and a dog treats business, have already established a base at the centre which opened officially in March. It will provide practical support and financial help to new graduates looking to set up a business – and expects to help bring as many as 100 start-ups to market. But one sticking point for any would-be start-ups in this region is the continually stringent stance of lenders. And the government’s Funding for Lending Scheme – set up to ensure more bank funds get to small businesses – appears to be having a limited impact in improving matters. The latest statistics show that lending to small and medium firms fell by £810m in the final quarter of 2014, taking the total decline last year to nearly £2bn. Any party with a solution to this worrying trend will no doubt fare well among entrepreneurial voters this quarter. n

58% of British exporters are confident their profitability will increase this year despite numerous crises such as the Ukraine conflict

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NEWS

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World-class renewable energy centre on track, legal firm achieves record turnover, chemotherapy hair loss cure expands Stateside, lawyers team up with cricket club, Hull firms letting down youth >> Green revolution on track

>> Go ahead for affordable homes plan A new £2.5m affordable homes scheme is to be built in Leeds city centre after Leeds & Yorkshire Housing Association (LYHA) secured planning permission. The project will see the development of 23 apartments on Hanover Square. The scheme has been designed by Leedsbased Brewster Bye Architects and will replace a vacant building known as Kendal Carr that adjoins an extension of the Grade II listed Denison Hall, which was built in 1786. Joanna Chambers, development manager from LYHA, said: “We are delighted to have achieved planning permission for this scheme which will bring much needed seven one-bedroom and 16 two-bedroom affordable homes, with the added benefit of on-site parking, to this hugely sought after area close to the city centre.”

>> Water firm hits the road Yorkshire based Gourmet Water is gearing up for a busy – and thirsty – summer, with the aid of some little monsters and the Port of Tyne. The two-year-old soft drinks company centred in Harrogate secured the licence to produce its Moshlings range of drinks based on the hugely popular children’s cartoon characters Moshi Monsters. Moshi Monsters is a website with more than 80 million registered users in 150 countries around the world. It has grown from being a website game to merchandising and a magazine. Gourmet Water’s Moshlings Magic Water has joined the company’s range of vitamin waters

made from natural ingredients sweetened with natural fruit and stevia. Moshlings Magic Water, along with the company’s other soft drinks, are distributed around the UK to major supermarkets, high street bakeries and pub chains. Gourmet Water’s Andy Clarke said: “With a little help from the Port of Tyne our logistics partners we are getting ready for summer which is our busy time with family holidays, days out, kids’ parties and people just enjoying the sunshine. We’ve been producing Moshlings Magic Water for just over 12 months now. It’s proving to be extremely popular and we are sure it’s going to be another big hit this year.’’

The drive to turn the Humber Enterprise Zone into a world-class centre for renewable energy is “well on track”, according to the government following a £15m funding boost. Local growth minister Penny Mordaunt saw at first-hand recently how money from the government’s ‘Building Foundations for Growthfund has delivered infrastructure work at the South Killingholme site, paving the way for the Able Marine Energy Park (AMEP). The £450m development is central to the Humber’s ambition to become a centre of excellence for the offshore renewable energy sector and will support the next generation of wind turbines with state-ofthe-art facilities. It has been supported by a £15m government investment through the Enterprise Zone Grant, a further £132m in public funds to improve the A160 and £22.7m in Local Growth Fund monies. Once operational it will create more than 4,000 jobs and provide a real boost to the local economy and supply chain.

Development is central to the Humber’s ambition to become a centre of excellence for the offshore

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>> Potts takes the helm Ex-Tesco director David Potts has taken up the post of chief executive of Morrisons, replacing outgoing boss Dalton Philips. Potts joins the Yorkshire-headquartered chain at a time when the company is battling with falling sales. He worked his way through the ranks at Tesco, joining at 16 and eventually becoming retail director covering the UK market and head of the chain’s Irish division. Current Morrisons chairman Andrew Higginson, a former colleague of Potts at Tesco, said: “David is the best retailer I have worked with in 25 years in the industry.”

>> Device tested in China RD Biomed, the Hull-based medical technology company, will launch a study with over 1,000 patients in China to measure the effectiveness of its latest diagnostic device.

NEWS

The Peptest testing kit measures a patient’s saliva for levels of pepsin, an enzyme found only in the stomach. If a Peptest is positive for pepsin, then it indicates the patient is suffering from reflux. The investigation study forms part of RD Biomed’s registration process with the Chinese FDA (CFDA) for the use of Peptest as a diagnostic device for reflux disease in the country. It will involve the recruitment of 1,020 participants from 10 gastroenterology departments of hospitals in Shanghai and Beijing, a process led by Professor Jing-Yuan Fang, professor of medicine at Renji Hospital in Shanghai. Peter Dettmar, director at RD Biomed, said: “This study will be by far the largest group of patients investigated using Peptest; the scale of the operations in China enables a much higher number of recruits than is possible in the UK.”

Shaun O’Brien, property investment and development director at the Coalfields Regeneration Trust (left) with hlw’s Richard Smith

>> Property deals boost coalfield communities Law firm hlw Keeble Hawson has acted on five commercial property acquisitions for a coalfield communities charity over the last five months, it has announced. The firm’s property team has represented the Coalfields Regeneration Trust, which supports coalfield communities, in the transactions which comprise acquisitions in Sheffield, Doncaster, Derbyshire, Nottinghamshire, and Tyne and Wear. The properties are let to a variety of tenants ranging from kitchen giant Magnet to FTSE 100 company Bunzl plc with income generated from the rentals allowing the Coalfields Regeneration Trust to meet with the government’s challenge to become self-funding by 2016. Richard Smith, partner at hlw Keeble Hawson, said: “The raft of deals reinforces the real sense of buoyancy in the commercial market, providing further evidence of its continued recovery. The acquisitions are also playing a vital role to address the need for continued support in coalfield communities.”

IT’S BEING EMOTIONAL At the heart of most family businesses is the tension between the business, the family values and the relationships that the family members and working staff have with each other. They say that a business is a performance driven system based on rational thought, and a family is a relationship based system founded on emotions, so family businesses could be a combination of the two. In my view it seems that emotion has almost become taboo in corporate boardrooms and is sometimes seen as a weakness amongst the ranks, yet when it comes to a family boardroom, emotion is regarded as a positive, and perhaps, accepted as the norm. For family businesses emotion can become the guiding principle and a reliable mechanism for making the right decisions about the next steps in the company’s lifecycle; and for the family, their employees and the longevity of the business. If we take both rational and emotional thought and bring them together, it becomes an interesting blend and arguably makes meetings a little more lively – certainly the ones I’ve been to. So to get good performance from any business I would suggest you allow both rational and emotional thought to flourish, and gain equal status in the boardroom. And when it comes to cold business decisions based on hard facts, add in extra thoughts, such as: how does this make me feel and how will this decision affect the people around me? Visit www.armstrongwatson.co.uk/blue or contact Dave Clarkson on 0113 2211300 or dave.clarkson@armstrongwatson.co.uk

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NEWS

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>> Merger boosts workforce Doncaster-based My Pension Expert has merged with Clicksco Financial Services – the finance arm of international digital data agency Clicksco Group. The new company, My Expert Holdings, currently employs around 50 people in Doncaster and expects to increase its workforce by 40% at its Hayfield Business Park operations on the back of the merger. My Pension Expert offers advice and guidance to people in retirement, while Clicksco offers lead generation services and international online marketing tools.

>> Firm aids ‘Queen of shops’ 3Squared, a software development firm based in Sheffield, recently helped TV retail guru Mary Portas develop an app for a struggling Buckinghamshire retailer. Appearing on Channel 4’s ‘Secret Shopper’ series with Mary Portas, the app helps make ordering online easy for customers in a bid to boost trade for failing businesses. 3Squared was approached by Mary, as she aimed to turn around Hallmark Foods Store in Burnham, Buckinghamshire, and help the business to take advantage of the latest technology.

>> Taking the financial lead Leeds-based healthcare firm OneMedicalGroup has appointed Steve Kingston as its new finance director. He joins with 20 years’ experience working in finance, after qualifying as a chartered accountant with KPMG. He has worked in several senior finance roles including Arcadia, Hallmark Cards and most recently as finance director for Bupa Home Healthcare.

>> Jobs arrive on the back of a Hungry Horse Pub retailer and brewer Greene King has received planning permission to build a new development in Rotherham, which will create around 60 new jobs. Greene King has purchased 1.5 acres of land from St Paul’s Developments at its 6 acre, 26,000 sq ft Phoenix Riverside business park near Rotherham town centre. The firm will build a new family-friendly Hungry Horse pub which will open this summer.

>> Luxury homes underway Housebuilder Duchy Homes has secured an initial £2m funding deal to support the construction of its latest development in Braithwell, near Doncaster. The luxury 14 property development, backed by finance from Barclays, is expected to be completed by spring 2016. Properties go on sale later this month with prices starting at £399,999. Jim Cropper, managing director at Duchy Homes, said: “Construction of the new Braithwell site is now well underway and we are looking forward to welcoming visitors to our show home in May. We are delighted with the support we have

received from Barclays and that funding for the development is now in place. “This demonstrates the bank’s confidence in our homes and our track record of success to date. It also forms a new partnership between Duchy Homes and Barclays.”

We are delighted with the support we have received from Barclays

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>> Spicing up Sheffield One of the country’s largest Indian restaurant groups has opened a 180-cover outlet in Sheffield city centre. Bradford-based Akbar’s is operating at the 6,000 sq ft, two storey site of the former Antibo Italian restaurant in the West One development at 10, The Plaza, Fitzwilliam Street. The opening followed a month-long refurbishment programme. The group was advised on the deal by Simon Mydlowski, a partner in the commercial property team of Yorkshire law firm Gordons.

>> Legal eagles soar Leeds-based Just Costs Solicitors has recorded record turnover of £6.1m for the 2014/2015 financial year, an increase of 13% on last year’s £5.4m. Founded in 2006 by former Eversheds partner and legal

NEWS

costs specialist Paul Shenton, Just Costs now employs over 100 staff and acts for in excess of 300 law firms. Over the course of the last 12 months, the firm has opened its new office in Leeds and also has offices in Manchester, London and Chesterfield. Paul Shenton, managing director, said: “We are delighted with our financial performance – all our offices and departments have played their part. Personal injury is a traditionally strong area of our business and has continued to perform well while our commercial litigation costs practice has enjoyed its best ever year with a number of big ticket instructions. This is an area we are looking to further develop in the future.” To facilitate future growth, the firm has also agreed a £1.1m funding package with NatWest and has welcomed a number of senior hires to the business including Kevin Doolan, formerly head of client relations at Eversheds, as a consultant and non-executive director.

>> Firm proves it’s a magnet for success A Sheffield-based magnet manufacturer and supplier is celebrating its best ever year in its 30-year history with a record turnover. Anchor Magnets, which supplies retail, automotive and engineering industries, has reported unprecedented business growth in the last year. For the year ending 2013/14 the company, which employs 45 staff, celebrated its all time highest turnover reaching £6.2m – up 8% on 2013. Turnover has increased 68% over the last five years with a 78% growth in profit over the same period. The company conducts business in 26 countries with Europe currently the biggest export market.

AN EMOTIONAL RESPONSE TO BLUE To date our Blue strategic process has helped companies from very diverse industries and ranged in size from 80M+ turnovers through to first generation start-ups. The common denominator seems to be that all the individuals who seek advice have come from family lead businesses. The process of insight and planning has lead to traction and action in the majority of cases and is proving to be a catalyst for business owners to recognise their true values and spark up opportunities to change and improve systems, teams and processes. Others have used the process to engender a fresh approach – entering their business from a new perspective and an open mind. They have seen a blend of gradual, slow, ‘wait and see’ adjustment and some decisive, quick ‘take the plunge’ action points. With our teams working alongside each business it becomes an exciting re-energised way of thinking, building on all the good things and helps each business leave some of the not so good stuff behind. And true to form, with all family businesses, when we have entered the Boardroom there has been a lot of emotional outburst leading to a real honesty to why many barriers to growth and profitability have established themselves. Through this emotional response it enables us to hear the ‘real’ issues and allows us to work with the business owners to put an action plan into place and start to see a real difference to the numbers and the teams’ performance. So through ‘Blue’ it’s time to get emotional and use the process to say what you want to say, action what you really want to action and see the kind of results you know you’re capable of achieving. Visit www.armstrongwatson.co.uk/blue or contact Dave Clarkson on 0113 2211300 or dave.clarkson@armstrongwatson.co.uk

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COMPANY PROFILE

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An interconnected North is the key to economic success The last twelve months have seen a monumental increase in focus on the economic prosperity of the North and the potential to become a dynamic counterweight, complementing the thriving London and South-east economy. A united voice for the North has been championed by the dynamic ‘Northern Powerhouse’ and complemented by the ‘Northern Futures’ consultation and the Chancellor’s ‘One North’ report which committed to investing £15b in the Northern transport infrastructure last summer. One of the key elements across this whole debate and critical to the success of the North’s economic prosperity is the influence of the private sector in key decisions around efficient transport links along with its relationships with LEPs. The private sector is seen as fundamental to making the right decisions around Northern transport infrastructure. Improved logistics, including better use of our rail network and waterways was a key feature in the ‘One North’ report. PD Ports was acknowledged in the report as the leading developer of portcentric logistics. PD Ports’ Teesport facility on the NorthEast coast has the potential to further attract logistics activity to sites with efficient low cost transport networks. Portcentric logistics creates an efficient green link to enhance companies international supply chains. Bringing goods direct to port located importation or distribution centres eliminates unnecessary road miles routing goods inland only to reroute them back out to their final destination. In recent years there has been a significant step change in this approach to logistics supply chains and PD Ports has been at the forefront of this shift. Switching for port located sites or those in the peripheral hinterland, has taken cost out of the supply chain in terms of saved road miles and has also met the challenge of CSR obligations with a significant reduction in carbon emissions. One of the key factors in PD Ports’ success is

BUSINESS QUARTER | SPRING 15

Geoff Lippitt, Business Development Director at PD Ports

Our approach is simple. We work in partnership with our customers to identify their logistics needs and develop the right solution that will continue to adapt as their needs change collaboration, as Geoff Lippitt, PD Ports’ Business Development Director, explains: “Portcentric logistics is not a new concept nor is the idea of port based distribution centres. There are clear reasons and clearer evidence why a portcentric logistics solution suits many modern businesses. And having helped some of the UK’s leading retailers, importers and exporters to simplify their freight, warehousing and distribution and minimise logistics costs, we believe the facts speak for themselves. “Our approach is simple. We work in partnership with our customers to identify their logistics needs and develop the right solution that will continue to adapt as their needs change. This doesn’t necessarily mean being located directly at the port and by working collaboratively with development

agencies as well as local land owners we can find the right solution within the local hinterland. “Moving the goods from port located distribution centres to their final destination on the already heavily congested UK road network is becoming less viable. Supply chains are under increasing pressure to move goods through the network faster and more efficiently. And for that we have a unique solution. “Being the best connected feeder port in the UK, Teesport is well placed to offer importers and exporters a direct route to Europe and worldwide. Our daily feeder connections from Felixstowe to Teesport enable customers to move their goods North of the UK, avoiding the road network and reducing unnecessary costs. We also have a dedicated intermodal rail terminal at the Port which opened in 2014. “The new £3M open access rail terminal already has connections from Teesport to Felixstowe and Southampton. Opportunities for the establishment of further new routes to Scotland, the Midlands and the North West are expected in line with market demand. “The whole debate around the North as a dynamic counterweight to the South emphasises the critical importance of transport and infrastructure being key to economic prosperity. At PD Ports, our aim is to work closely with existing and potential customers; as well as the local LEP, development agencies and land owners/agents to stimulate business investment and opportunity whilst further strengthening the overall image of the North.”

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

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NEWS

>> Property firm expands

>> Success in store

Industrial property owner In-site Property Solutions has expanded its Yorkshire portfolio. The Bramham-based company has just completed its latest acquisition, the purchase of an industrial / distribution facility at Wood Lane, Rothwell, which was formerly home to Wincanton distribution PLC. The 29,500 sq ft property occupies a selfcontained plot with a secure concrete yard. The development at Wood Lane follows the acquisition and refurbishment of the Prince George Trading Estate, Skinner Lane, Pontefract, which has now been converted from a single building to a multi-occupancy trading estate.

A steel tank installation company in Barnsley is set to turnover £1m in its first year of trading. LWG Solutions installs large steel circular tanks used for a range of applications including storing water for sprinkler systems to sewage. From a standing start, the company already has clients in a dozen countries including Turkmenistan, Pakistan, Myanmar, Brazil, Peru and Latvia. The company, which employs 23 people, was set up last summer by Rob Longley and Shaun Wyman, who lost their jobs when Barnsley storage tank manufacturer Galglass went bust.

>> Paxman targets America

>> Light firm’s bright move

>> Experts share insights

A specialist lighting manufacturer has purchased new premises in Bradford, with the support of a six-figure banking loan. Applelec Sign Components has operations in Bradford and Leeds but has recently purchased new premises in Wharfedale Business Park, over 63,000 sq ft. It is situated near the company’s current base on Walker Terrace, enabling Applelec to realise its in-house production needs. The firm was established in 1998 and produces LED lighting sheets for architectural and sign lighting in England.

Yorkshire Water CEO Richard Flint is among a number of high profile business leaders who will promote the benefits of being a responsible and sustainable company in the region in May. The fourth annual Business Unusual Conference takes place at the Edge Conference Centre, in Sheffield, on 6 May. The day-long event will address the findings of a new report called ‘Forces for Change’, led by the University of Sheffield Management School, which examines the drivers to creating sustainable organisations. The event is spearheaded by Business in the Community (BITC) which champions responsible business practice. Keynote speakers – including Tony Walker, deputy managing director, Toyota Motor Manufacturing (UK); Estelle Brachlianoff, executive vice-president of Veolia UK; and Chris Harrop, chair of the UN Global Compact – will share their powerful insights and reinforce how business leaders are critical in achieving this goal.

>> Engineering growth Huddersfield-based B&B Precision Engineering is to expand into new premises and hire more staff after securing £795,000 in funding from Santander Corporate & Commercial. The manufacturer of high-grade machine parts and components has already acquired a building to house a new hi-tech metal spray line after securing the funding. MD Steven Haigh said: “I have been very impressed with the service from Santander.”

A Yorkshire firm behind technology which prevents chemotherapy patients from losing their hair is to expand its services to the US. Huddersfield-based Paxman is targeting the US market after switching to Yorkshire Bank and receiving more than £470,000 of funding support. Paxman has developed technology to create scalp cooling caps which help to mitigate hair loss during chemotherapy. The product was originally developed by Paxman’s founder and chairman, Glenn Paxman, after seeing his wife’s distress when she lost her hair while undergoing chemotherapy treatment for breast cancer. Paxman is now used in 80% of NHS and private hospitals across the UK and have been praised by clinicians.

>> £10m secured from fund Finance Yorkshire has secured £10m from Round 6 of the Regional Growth Fund. This RGF announcement follows the full investment of Finance Yorkshire’s £90m fund which saw 694 investments in businesses across Yorkshire and the Humber, creating and safeguarding 9,240 jobs and increasing turnover by £265m.

Available to businesses throughout West Yorkshire .

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Leeds advanced engineering company invests for further global growth As the largest manufacturing centre in the country, the Leeds City Region is continuing to export its skills in advanced engineering around the world. Leeds law firm Clarion specialises in supporting fast growing businesses in the sector and has recently worked with LBBC Technologies, assisting its move into a new £1.5m purpose-built manufacturing facility LBBC Technologies is the epitome of Yorkshire manufacturing excellence. A division of a Leeds engineering group which dates back nearly 140 years and is now being run by the fifth generation of the family, it has grown into a world leader in its field. The £8.5m turnover LBBC Group is a global supplier of autoclave systems and related engineering activities used in a range of high pressure applications and environments. Over 70 per cent of its business is now generated from export and as the company is industry-focussed rather than looking at particular territories, sales can literally come from anywhere in the world with LBBC Technologies selling in China, Russia and Korea as well as the United States and Europe. As part of a programme of continuous investment with the target of pushing sales over £10m, LBBC Technologies has invested in a new 15,000 sq ft

Robert Pickard (left) and his brother Howard (far right) of LBBC Group with Advanced Manufacturing Research Centre (AMRC) commercial director and co-founder, Adrian Allen OBE, who opened the company’s new manufacturing facilities

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manufacturing premises in Stanningley, Leeds. The state-of-the-art facility features 10,000 sq ft dedicated to assembly, testing and development, plus 5,000 sq ft of office space. Since the sixties, LBBC Technologies has driven advanced process technology across the global investment casting market. Specialising in designing, manufacturing and supporting superior autoclave systems, it works with some of the bestknown names in the aerospace sector including Rolls Royce and BAE Systems, as well as supplying the medical and automotive industries. BLUE CHIP CUSTOMERS Its sister division, LBBC Beechwood, produces high integrity pressure vessels as well as bespoke items such as parts for submarines, tidal power generators, wind turbines, water treatment works, ships engines etc. It focuses on subcontract activities of machining, dished heads and fabrication to the UK market. The group has a 72-strong workforce across its two divisions. “We have seen sales steadily increase over the last few years as we have successfully marketed our expertise overseas,” explains Howard Pickard, managing director. “This latest move into our own purpose-built premises enables us to increase our research and development activity, particularly in investment casting, which will support our overall growth. “Having known Clarion for a number of years, we were confident we could rely on the firm’s property experts to provide the legal advice we needed to enable our relocation. With our focus increasingly on R&D, going forward, we may also be turning to the firm’s intellectual property specialists to ensure that our work is protected both here and overseas.

Roger Hutton, Joint Managing Partner, Clarion “It’s great to be working with a dynamic, forwardthinking firm like Clarion which is not only able to offer a full range of legal services, but is also committed to supporting SMEs by providing a more holistic approach with broader, commercial advice that really adds value.” Roger Hutton, joint managing partner at Clarion, adds: “The move to new state-of-the-art premises marks another important milestone for this historic Yorkshire company, supporting development of its world leading products and securing its future success. LBBC Group is a fantastic family business which has proved able to build on its strong foundations, developing its expertise and gaining worldwide renown in its niche field.”

Can we help you? Call Roger Hutton on 0113 222 3246 or email roger.hutton@clarionsolicitors.com Please visit www.clarionsolicitors.com for more information.

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NEWS

>> Batting for the same team Yorkshire County Cricket Club has announced that Leeds based law firm Clarion has become one of its club partners. As part of the partnership, Clarion will provide legal services to the club. Andy Dawson, commercial director of Yorkshire County Cricket Club, said: “With a strong track record of working with winning businesses in Yorkshire and beyond, we believe they are a great fit with us and will add real value.”

(L to R): Andy Dawson, commercial director of Yorkshire County Cricket Club, with Roger Hutton, joint managing partner of Clarion, and Dominic Higham, Clarion partner

>> Funding future leaders

>> Hull firms deflate youth

The Leeds City Region Enterprise Partnership has won new funding to develop a network of business volunteers to help boost entrepreneurial skills among secondary school children. The £100,000 funding package will be used to help bring schools and business leaders together to support and develop talent in young people. The scheme will focus on entrepreneurship and working in a small business environment. Advisers will work with senior leaders and school governors to give students access to information and activities that help them develop employability and enterprise skills for the future.

Employers in Hull and its surrounding areas are some of the least likely to provide work experience, according to a new report released by the UK Commission for Employment and Skills (UKCES). The Catch 1624 report finds young people in certain parts of the country face inherent disadvantages when preparing themselves for work, with significant geographic differences for numbers of employers offering work experience. The report places Hull among the worst locations in England for 16 to 24-year-olds to prepare themselves for work – with fewer than a third (29%) of employers offering work experience

>> Investment gives firm added punch Sheffield manufacturer Panel Systems has invested £180,000 in new equipment to boost its capacity. The firm has invested in a new CNC punch machine to enable it to expand its metal fabrication services to customers. The company, based on Parkwood Industrial Estate, was supported by Yorkshire Bank and a RGF (Regional Growth Fund) grant.

One in five employers say nothing could persuade them to offer work experience placements, compared with 46% in Cheshire and London. Hull employers are not alone, however, as the report reveals that nationally one in five employers say that nothing could persuade them to offer work experience, despite the fact that 66% of businesses say experience is critical when recruiting new staff. It comes as government figures show that around 40% of the UK’s 1.9 million unemployed people are aged under 25, and that in contrast to other age groups, unemployment for the youngest workers is remaining stubbornly high.

www.superconnectedwestyorks.co.uk

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COMPANY PROFILE

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Blue Logic gives customers everything they need to succeed IT solutions provider Blue Logic is preparing for its sixth annual technology event – with growing demand set to make 2015 its biggest so far Blue Logic, based at Thorner in Leeds and with an office at Hessle in Hull, has always been an innovative leader in its sector, so Managing Director Mark Ambler, Sales & Marketing Director Dave Helm and Technical Director Chris Ambler decided to launch an open day in 2009 as a way of providing something unique for their customers. They invited about 50 delegates to meet their team and the region’s industry leaders and take part in presentations and workshops. It was exactly what their customers had been looking for and Mark, Dave and Chris were overwhelmed with the positive feedback. Companies from across the North backed the event and asked if Blue Logic could do even more, so the event was repeated in 2010, attracting industryleading vendors like Microsoft, Sage and HP. Numbers have kept on growing ever since - along with the reputation of the free event as customers and prospects from across the North get an insight into the latest advances in modern technology, listen to the experts explain how easy it is to succeed in business with the right infrastructure in place - and have an excellent lunch! This year promises to be even bigger and better - with as many as 400 people attending what has grown to become the Business Technology Forum, at the Village Urban Resort at Leeds South on May 14. The soaring delegate numbers mean the event has even got its own exclusive Business Technology Forum website for 2015, to handle the number of companies wanting to register, read about the event, see what seminars are on offer, and view pictures and testimonials from previous events. Managing Director Mark is proud of how Blue Logic’s hard work has produced one of the essential events for any company with technology demands. “Our genuine aim has always been to add

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Chris Ambler Technical Director, Dave Helm Sales & Marketing Director, Mark Ambler Managing Director

The ethos that underpins our whole operation has always been how to help companies grow, which puts money and jobs into the regional economy and builds a stronger future for Yorkshire something extra for our customers. From our start back in January 2007 we wanted to make sure they had everything they needed to succeed, and if that meant extra information and guidance from us, then we wanted to make that as accessible as possible - which is one reason we have always insisted there is no charge for attending. “Part of the event’s success is that delegates know this isn’t just a way of driving sales for us. The speakers at the forum are not Blue Logic staff – they are independent experts chosen because they know the sector better than anybody and can pass on their experience to other companies. “It’s that relationship, support and demand from

businesses around the region that is the driving force behind the growth of the event. Now people are asking us about the next one as soon as they leave that year’s venue, which is great, because we’re a partner of our customers, at the forefront of technology and we want businesses to grow with us. “This approach is what really sets us apart from our competitors.” This year’s event on May 14 will again be supported by Blue Logic’s technology partners, NGC Networks, Ben Johnson and Synergy Technology. The four companies joined forces last year to

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make sure the forum remains the North’s first and biggest technology event - with the aim of educating businesses about the power technology can have in establishing and boosting their success. Sales and Marketing Director Dave said: “We are very proud of our team and the way their expertise in all aspects of IT has driven our success over the years. The ethos that underpins our whole operation has always been how to help companies grow, which puts money and jobs into the regional economy and builds a stronger future for Yorkshire. “We know that our customers around the county value that strategy and know that if they get along to the Business Technology Forum they will meet the most innovative and influential speakers, attend seminars running throughout the day and meet vendors for one of the most educational technology events in the North.” The success of the events has helped establish Blue

COMPANY PROFILE

Blue Logic giving expert advice at the 2014 event

Logic as one of the leading IT Support and Network Solutions companies within Yorkshire. With more than 400 customers and 70 staff, it is equipped for any IT challenge and is rightly proud of its fast response times. Managing Director Mark says: “We believe in a partnership with businesses so that we can offer a fully integrated solution, helping them

run smoothly and efficiently and helping them maximise the return on their IT investment. “Our team has worked hard for more than seven years to build the reputation we have now, where nothing stands in the way of a complete and tailormade solution for each customer. “Whether it is IT support and services, business software, web services, data cabling or anything a Yorkshire company needs to be successful and fly the flag for this region – we want to play our part in that.”

For more information visit www.bluelogic.co.uk or call us on 01132739040.

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BUSINESS TECHNOLOGY FORUM 14th May 2015 | 9am - 4pm | The Village Hotel, Tingley, Leeds, LS27 0TS

N o. 1 Technology Event in the North With over 20 exhibition stands, insightful seminars from industry experts running throughout the day, not to mention free giveaways and a mouth-watering banquet, it’s an event your business can’t aﬀord to miss.

Perfect for Business owners

Business inﬂuencers

IT Managers/decision makers

Head of Accounting/Finance

Find out more at: www.businesstechforum.co.uk

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AS I SEE IT

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REALITY BEHIND THE FINANCIAL SCARE STORIES Reading beyond the headlines, Nick Brier, Director and Chartered Financial Planner at BHP Financial Planning, shares his views on making good investment decisions “FTSE’s 15 year losing streak” said the headline. The journalist had done his job, hooked me in to read on – but, dealing with money matters is what I do for a living, so I guess I’m an easier target than most people. A layperson might be forgiven for thinking the headline meant investing in the UK stockmarket over the last 15 years would have been a complete disaster and quickly moved on to more interesting news. After all, since the start of the new millennium we’ve had; a tech crash, terrorist atrocities, military conflicts, a global banking crisis, quantitative easing, government bailouts, IMF bailouts and a number of natural disasters. With all of this going on, surely, keeping your cash in the bank and staying clear of risky stockmarket investments would have been a great decision? Apparently not. The article was making reference to the fact that the FTSE 100 index ended 1999 at 6,930 and exactly 15 years later it stood at 6,566 – a fall of 5.25%. Just to keep pace with inflation, you would have needed £100 to grow to about £140, so, to be left with less than £95 would have been poor.

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When it comes to investing there is an inextricable link between risk and return – investing in smaller companies is usually riskier than investing in larger companies and the FTSE 250 can give a rather bumpy investment ride

However, the FTSE 100 index is calculated without taking dividends (the share of profit a company pays in cash to its shareholders) into account. By including dividends the picture starts to look quite different. £100 invested in the FTSE 100 since January 2000 and then adjusted to allow for dividends, would have returned an inflation busting £158. This assumes that you were pretty unlucky and just happened to invest when the market was at its 15 year peak. If you were lucky enough to stick £100 into the market in March 2009 (possibly after having queued to make a panic withdrawal from your account with Northern Rock!), it would now be worth £212.

TAKING A MORE GLOBAL APPROACH Also, why just focus on the UK? The world is a big place and the UK stockmarket makes up just 8% of global equity markets and 7% of global fixed interest markets. Plus, who wouldn’t want the chance of exposure to the next Apple or Microsoft? Taking a more global approach to equity investing in 2014 would have been particularly helpful – the FTSE All-Share Index (used to measure the overall UK stockmarket) returned a pretty disappointing 1.18% in 2014, whilst the MSCI World Index (a good index for judging global stockmarket returns) produced a return of 11.49%.

CASTING YOUR NET UK WIDE Had you broadened your investment beyond the FTSE 100 across the whole of the UK stockmarket, £100 invested in January 2000 would now be worth £179 – an improvement of £21. If you had avoided the FTSE 100 constituents altogether and instead put your £100 into the FTSE 250 (which picks up the next 250 largest UK companies) over the 15 year period to the end of 2014, your £100 would have grown to a whopping £379. However, before you start selling the family silver and sticking the proceeds into a portfolio of FTSE 250 companies, remember, when it comes to investing there is an inextricable link between risk and return – investing in smaller companies is usually riskier than investing in larger companies and the FTSE 250 can give a rather bumpy investment ride. For example, between November 2007 and October 2008, the FTSE 250 plunged by over 44%!

IN CONCLUSION It’s important to look beyond the headlines and make good financial decisions based on sound research and advice rather than journalistic sound bites. n

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ENTREPRENEUR

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LEADERSHIP DRIVEN BY PASSION AND A VISION Revolution is sweeping through the Institute of Directors, bringing young people and apprentices to the frontline and challenging corporations like never before. Andrew Mernin meets the serial entrepreneur at the heart of this change, Natalie Sykes, as she sets out her vision for Yorkshire and its future Like most true entrepreneurs, Natalie Sykes has her own tale of playground profits. Where others claim to have sold sweets or pop to classmates, Natalie was managing a team of young car washers before she’d even turned nine. Perhaps more impressively she ran a national haulage sector supplier at 17. Then there are the numerous hotel and property deals, investments and turnarounds that she went on to broker all over the world. Her CV also lists supercars and low carbon fibre among industries she’s dabbled with as an entrepreneur. Today, however, she is predominantly a leaders’ leader at the Institute of Directors. Sykes was appointed regional director of the IoD in Yorkshire and the Humber last May,

with her patch extended to include the North East in September. Covering an area stretching as far as the Scottish Borders has been “refreshing but challenging”, she says. And, amid political talk of an interconnected, powerful northern economy, she is enthused by the level of collaboration happening between businesses spanning regional boundaries. “While the regions have their own subtle differences, we must also be able to come together and collaborate as one voice. I am seeing businesses crossing borders to work together. It’s refreshing because it’s pointless nailing our colours to the mast and talking about the northern powerhouse if we’re not going to do anything about it.

“I’ve seen a a number of companies in the North East interested in expanding further afield and firms within Yorkshire interested in opening up and expanding into the North East, whether or not they feel it’s sustainable to place an office there.” Sykes took up her current IoD post three years into the tenure of Simon Walker as directorgeneral of the national organisation. Walker, whose previous roles include communications director at BA and Buckingham Palace and head of the British Venture Capital Association, has been overseeing something of a sea change at the organisation. While the IoD has always backed good governance, the pro-business lobby has provided increasingly vocal opposition to >>

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ENTREPRENEUR excessive pay and aspects of bonus culture – to the surprise of some commentators. “We are trying to get back to the focus on governance, on running companies better and in the interests of stakeholders broadly, in the climate we are in today,” Walker said last year. His comments came after the IoD had spoken out against excessive pay-related activities at the likes of Barclays, Sports Direct, Experian and Burberry. The historic organisation appears to be modernising too. This year it appointed its first female chair in Lady Barbara Judge, a former chairman of the Atomic Energy Authority. And in the regions this modernising process is also underway. Sykes says: “We are reaching out to different groups of entrepreneurs, younger directors, students, more female directors and more people from different cultural backgrounds.” Subtle changes include a streamlining of events in this and other regions, geared towards more quality and less quantity. There is also a push to get more members contributing to its policy voting system. Sector and business representative organisations are all jostling to be heard in Whitehall at this preelection period, as are English regions. The IoD’s stance on issues is influenced by its monthly members’ poll called Policy Voice. But currently only 190 of the 2,000 members in Yorkshire, the Humber and the North East are registered to contribute. Sykes wants to increase this significantly to ensure the North’s business leaders are heard more clearly in London. “Currently we’re not giving a true voice to our regions,” she says. “We want to see members contribute as often as possible and we are even considering incorporating Policy Voice into some form of event up here.” Meanwhile, the ink was barely dry on her regional directorship contract when Sykes announced that apprentices could become IoD student members. It followed Sykes’ three

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years as chair of the Young Directors Forum and came as part of a drive to support more emerging entrepreneurs. Apprentices in Yorkshire were the first to join the IoD as part of a pilot which is now set to be rolled out nationally. Sykes says: “The stats showed us that after the increase in student fees, a large percentage of student memberships were international students. It’s wonderful to be able to support them, but what benefit is that to our business community if we have someone who will school here and then return to their

homeland? So I lobbied to make membership available to apprentices on higher frameworks [equivalent to higher education and degree qualifications].” Sykes is particularly keen to encourage apprentices within SMEs to join the IoD. She also aims to help give apprenticeships a new image. “An SME might have a team of only 10 people with three directors, and they might not see the benefit of joining the IoD. But they may have an apprentice who could potentially benefit the whole organisation by joining us.

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I think there is a perception that you have to be a director to be a member. That’s not the case. We need to be more inclusive and to reach out to segments like SMEs where perhaps we haven’t in the past.” Sykes’ motivation to create new frameworks to help younger people find success in business perhaps comes from her own nontraditional route to the top. Rather than taking the well-trodden university, corporate career, boardroom journey, hers has been more of a meandering path. A commitment to what she calls “lifelong learning”, mixed with a fearless approach to entrepreneurial pursuits, have resulted in a remarkably varied career for someone still on the young side of 40. “I didn’t go down the linear path and become a graduate, but I’ve shown that you can still achieve. I think it’s important for children especially to see that there are other pathways where you can be successful, give back to your community and achieve.” Inspired by her father, who worked in the lighting industry, Sykes was just 17 when she launched a profitable business selling lights, torches, fuses and cabling to hauliers. “I was always interested in business but I also had creative skills and was good at art at school and pretty average at everything else. But from a very young age my mum said I should really think about business because ‘actors and artists are ten a penny’.” Follow mum’s advice she did. Hitting the road from her home in Leeds to anywhere from Doncaster up to Teesside, she sold in bulk via two suppliers, including one which imported Polish goods. Eventually, however, she decided to return to her artistic roots and, at 21, completed an HND in interior design at Leeds College of Art & Design. But with placements beckoning in Paris and Brussels – followed by the inevitable stint in London to cut her teeth – Sykes instead opted to stay in Yorkshire. The hotel sector seemed like a way of indulging her love of business and her craving for a creative career. She landed a job in 1998 overseeing the redevelopment of Wood Hall Hotel & Spa at Linton near Wetherby. From here she soared through to the upper echelons of the hotel industry, initially helping

ENTREPRENEUR

Business is tough and takes a lot of time and energy and there is no get rich quick formula. It’s about hard work and never giving up to launch 42 The Calls in Leeds and later holding senior posts at major hospitality empires including Capital Group in London. She quickly fashioned a reputation for excelling in spotting and developing opportunities for private firms and investors. Highlight projects included a vineyard in the Loire Valley, an ecology spa and golf resort in Europe, luxury villas and resorts in Africa and various English historical venues like Hazlewood Castle, North Yorkshire. Sykes says: “The pathway I had been offered to complete my interior design degree in places like Paris and Brussels, which I thought there was no way I could take, eventually found me anyway. “I learnt so much about the importance of structure in my time in the hotel industry. At 42 The Calls we had no structure at the time and had to implement one. Once you have a proven structure that works and can be adapted to suit the culture of the organisation, it makes things much more manageable.” After witnessing the growth in the value of investments she had led globally on behalf

of others, Sykes decided to try profiting from property herself. “I looked back at some of the investments I had proposed to clients and, if they had acted on all my suggestions, I worked out that the value of that portfolio would have more than doubled. So I just thought ‘why am I not doing this for myself?’” Today she owns various projects in Yorkshire and has a long-held ambition to build something from scratch. As a trained nutritionalist and having had experience in developing spas, she also aspires in the future to run her own wellness centre. Throughout her career, education has been a constant theme. The latest of many training endeavours is the IoD Chartered Director Programme which she will complete later this year via Leeds Beckett University. She also holds the IoD Certificate of Company Direction, which has paved the way into various boardrooms, including that of the community charity Groundwork North Yorkshire, which she has chaired since 2013. “I absolutely believe in lifelong learning,” she says. “I was someone who at a young age was more interested in business than studying and maybe I wasn’t ready at that point of my life for the educational route. But now I think it’s so important to give the youth of today self-worth and the belief that the training or education they do now can lead to a lifelong career rather than just being something to pass the time.” Sykes has also learned vital entrepreneurial and leadership lessons out of the classroom, through her varied career. “I learned a lot about leadership in the hotel industry. One of the most important things I’ve found is that, if you want to be a good leader, at some point you have to be able to let go. You have to empower other people to take responsibilities and find their own path, even if you might have done things differently.” And on entrepreneurial success, she adds: “If you don’t have passion about something then it’s very hard to make it work. Business is tough and takes a lot of time and energy and there is no get rich quick formula. It’s about hard work and never giving up; so you have to have passion about what you are doing to succeed.” n

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COMPANY PROFILE

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Building a business where the staff are part of the furniture John Hull and Julian Jowett of Elite Office Furniture talk about how they are growing a world class business which has seen an increase in turnover of 24.5% over the last 12 months. Prior to starting Elite, John worked as a project engineer for a company importing production woodworking machines. In 1986 he then set up Elite Office Furniture in Goole, initially with a focus on making desks. But not just any old desks. Over the years John has designed cutting edge furniture, which is not only stylish, but highly functional and coveted by those both in and outside of the industry. This largely comes down to John’s knack for anticipating the next trend before it hits the mainstream. John said “I am always focused on creating furniture which will solve problems for people and enhance workplace productivity.” Fitting then that Elite Office Furniture supplies some big companies known for their innovative approach to working, including Google and Sky. According to a recent survey by BHP Chartered Accountants, Elite Office Furniture is currently the eleventh most profitable SME in Yorkshire. Impressive, but Elite Office Furniture doesn’t plan to stop there. John, along with directors Julian Jowett and Robert Clarke, has big plans. The team has recently been granted planning permission to build new premises that will double the size of their current factory, offices and show room. This will allow them to really drive the company’s growth through increased efficiencies. The new factory will be home to their current machinery, along with a number of new machines, allowing for increasing demand as their business grows. Julian Jowett, Sales Director at the company explained “We pride ourselves on providing the best levels of customer service. People can set their watches by Elite; we always meet our commitments. But to keep on doing this, we need to grow to ensure that we always have the capacity

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Taken in 1995, R-L: Paul Moore, Robert Clarke, Neil Beadle, Adrian Shaw, Scott Caughy, Robert Rafferty, Lloyd Best, Adrian Best, Vincent Hull, Lee Brigham

Taken in 2012, all still there – R-L: Paul Moore, Robert Clarke, Neil Beadle, Adrian Shaw, Scott Caughy, Robert Rafferty, Lloyd Best, Adrian Best, Vincent Hull, Lee Brigham

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we need to meet demand. John has always been forward-thinking and has re-invested and planned meticulously to ensure the company can grow. Our new factory is another example of this. We plan to move by 2017 and are excited to say that the new factory will create 80 new jobs within 8 to 10 years of the move.” He continued by saying, “People are really important to Elite, and I think that’s part of the reason we have been so successful’’. The first ten people who joined the company are still here, and Robert Clarke, who was the third member of staff here is now our Production Director – so that shows the supportive environment we cultivate. It’s important to appreciate your team. In fact, that’s one of the reasons we are so keen to stay in Goole. Our staff like being here, so we do too. We wouldn’t want to risk losing them by moving. At 137 people, we’re still small enough to have a family-feel – it’s one of the things I really love about working here. We’re also very proud to be UK manufacturers. We source everything we can in the UK.”

COMPANY PROFILE

L-R: Julian Jowett, Mike Jackson, John Hull

Top tips for other Entrepreneurs John and Julian share their thoughts on building a strong business. KEEP YOUR PROMISES “You must do what you say you’re going to do. That’s vital when building trust and if you continually deliver on your agreed objectives then you will continue to impress people and win business. Keeping your promises is absolutely paramount to success.” VALUE YOUR STAFF “You need your people to be happy. Happy workers work harder than those who are dissatisfied, so you should always show them that you care, because at the end of the day, you wouldn’t have a business without them.” RE-INVEST “If you keep putting money back into the business, you can’t fail to make it stronger.” PLAN FOR THE FUTURE “A business supports so many people; those who work for it, those who supply to it and those it services. It’s important to keep it strong and healthy, and that means always keeping an eye on the future, so that it is still there in years to come.” CONTINUE TO INNOVATE “One of the reasons that Elite Office Furniture is successful is because it listens to the market place, understands people’s needs, uses feedback to improve and creates new products which are progressive – you have to keep moving forward.” WORK WITH THE RIGHT PEOPLE “Our people mean everything to us, so we do everything we can to make their work life happy. This shows in our incredibly high retention rate. You should always do well by good people.”

Our people mean everything to us, so we do everything we can to make their work life happy. This shows in our incredibly high retention rate.

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

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INTERVIEW

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Changes are afoot at the home of the world’s oldest classic horse race. Doncaster Racecourse, host of the almost 240-year-old St Leger Stakes, is poised for expansion, with a new man at the helm. Executive director Kieran Gallagher is leading the charge towards new revenue streams and a more diverse business. Plans for a new hotel at the site are taking shape, while the venue’s star as a major national conference centre is rising. The 2007 £34m redevelopment of facilities – including the creation of a new 3,400 sq ft exhibition space – is finally paying off amid a brighter economy and heightened willingness of businesses to invest in conferences. Gallagher says: “We’ve seen a real shift, particularly out of the Midlands, and other areas that have historically had high footfall for conferences and exhibitions, into South Yorkshire. “We are positioning ourselves against places like Telford and Harrogate international centres, Gateshead and the Ricoh Arena in Coventry. These are places that have been very popular large-scale conference destinations for events, while South Yorkshire hasn’t really featured in the past on that sort of scale. That was until we re-developed this location. “Large blue-chip organisations are seeing the value of our proposition and we’ve had the likes of Boots, npower and E.ON bring their teams here. Going back to 2012, we are seeing around 70% of big clients rebooking.” Doncaster, one of 15 UK race courses owned by Arena Racing Company (ARC), has around 50 employees, but with as many as 1,500 contracted staff on an event day. >>

BUSINESS QUARTER | SPRING 15

RACING INTO A NEW ERA Against brightening conditions, families, rock stars and the nation’s blue chips are making a dash for age-old Yorkshire sporting venue Doncaster Racecourse. With plans being drawn up for future developments and rapid growth underway, its new boss Kieran Gallagher has many barriers to jump in the months ahead if momentum is to be maintained, he tells Andrew Mernin

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INTERVIEW

BUSINESS QUARTER | SPRING 15

INTERVIEW

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Last year the venue increased race-goers by 8% to 260,000 and had a record 150,000+ for conferences, exhibitions and other events. Similar growth is expected this year, while long term the venue is planning developments including a possible hotel on site. Gallagher says: “We are currently exploring detailed capital investment plans to better equip Doncaster Racecourse in the future.” Gallagher was promoted from general manager to executive director in January, succeeding Mark Spicer, now assistant operations director at ARC. Before joining Doncaster in 2010, the Rotherham-born exec’s leisure industry career covered football and horseracing. He spent four years at Sandown Park Racecourse in the mid-1990s before a number of years in football stadia, including the RICOH Arena in Coventry, the KC Stadium in Hull and Derby County’s Pride Park. At the RICOH, Gallagher oversaw the opening of the venue and the running of its exhibition centre, two restaurants and boutique hotel, including corporate hospitality and catering. “I’ve spent 20 years in sports leisure and venue entertainment at multi-faceted venues. The key to all of my roles has been understanding consumer needs. You might have people wanting a great race day and to drink champagne at a concert on one day, and then a conference with 1,200 delegates the next. We change how the team operates by aligning it to the primary needs of the consumer.” Perhaps Gallagher’s involvement in what is still loosely regarded as the people’s game – despite spiralling Premier League wages and ticket costs – has helped in his new role. For Doncaster, like many of its counterparts, is currently jockeying for more punters from beyond the tradition race-going set. Family days, concerts and parties are all part of the gallop to make racing more accessible. But does this broadening out of the racecourse’s appeal risk the annoyance of hardcore racing enthusiasts in a sport partial

BUSINESS QUARTER | SPRING 15

UK horseracing in numbers 5.6m Annual attendance at 1,369 fixtures 17,500 Individual runners per year £275m+ Annual tax contribution by British racing 14% Percentage of trainers based in Yorkshire £1.1bn Direct annual expenditure of British racing 4,366 Number of foals born in 2013 £3.45bn Total economic impact of UK horseracing per year (Based on the British Horseracing Authority/Deloitte Economic Impact of British Racing report)

to occasional snobbery? Gallagher insists not. “A purely racing-centric approach, with 36 race days a year, will not sustain a business of this size,” he says. “I think people accept that when you are competing for the leisure pound against all sorts of other visitor attractions and sports, we’ve got to do everything we can to make Doncaster a really attractive proposition. By doing that, we can continue to invest in new facilities. In fact, we expect to sell out our 1,000 annual memberships this year, which represents the avid race goer.” With regular after-race music events, bringing bands like Kaiser Chiefs, Madness and UB40 to Doncaster’s champagne lawn, punters are getting a lot more for their day at the races. The most recent family race day at the venue brought 23,000 through the gates last June, prompting Gallagher and his team to organise two more this year. Such attendance figures are

only surpassed by Doncaster’s flagship St Leger meet. The growth in non-race day activity is highlighted by the fact that there were only 30 of what Gallagher calls “dark days” last year – or days with no event on the calendar. “It’s all about enhancing the customer experience and making those good days even better. We want to do as much as we can to achieve that.” Food and drink plays its part in drawing people in too. The recently developed Old Weighing Room serves up lavish British fayre where once calorie counting jockeys stood on scales. A former jockey’s sauna, meanwhile, is now a restaurant kitchen and the Clerk of the Scales’ old haunt is now a champagne bar. Whatever would Anthony St Leger, the Doncaster soldier and politician who gave his name to the famous old 25 guineas sweepstake, make of such progress? n

SPRING 15

INTERVIEW

BUSINESS QUARTER | SPRING 15

COMPANY PROFILE

SPRING 15

Recruitment firms, like the people they find, come in all shapes and sizes That sometimes means the leaders in the sector have to work hard and be uniquely innovative to maintain their reputation alongside rivals who are effectively just algorithms teams sending out a list of possible roles and people that fit their clients For some years now, Kenton Robbins has been one of those sector leaders – hugely successful in the global recruitment market and with an enviable reputation from his work alongside major multi-nationals and growing companies around the world. Now the wealth of knowledge and experience that Kenton and his partners Wayne Underwood and Ben Riley have accumulated has led to a new venture that rewrites the rules – and the standards – of recruitment. Coat Partners works on an associate level, allowing Kenton, Wayne and Ben to assemble a collective of the most experienced and successful recruitment experts in the industry with the freedom to operate under the Coat Partners banner with a set of guidelines and behavioural standards. “The strategy is fresh to the market,” said Kenton. “We wanted to be slightly disruptive and run things differently. “We’ve developed the associate model to bring in senior recruiters in a self-employed basis, with a much greater level of return for them – as much as 60 per cent of their fee. If we accept them into Coat Partners, they would incorporate their own businesses and trade through us with a mix of exclusivity and openness. “But they retain the freedom to carry out their work without being directly managed. It is more of a collegiate strategy, but the way they recruit for the brand will be important. The company’s name reflects its structure. Coat is taken from coat of arms, representing a bringing together of partners. Look closely at the logo and you will see the initials K, W and B on the shield design Kenton, Wayne and Ben are already building the

BUSINESS QUARTER | SPRING 15

Coat Partners

Kenton Robbins, Managing Director of Coat Partners

team of associates and are looking for more than just high-return experts. “We want people on board who have a true entrepreneurial spirit alongside an excellent track record that dominates a particular sector and the ability to deliver consistently at a high level,” explained Kenton. “It only works for us if that person is comfortable delivering £200k a year. “We don’t want ten-mile wide egos. We want the highest quality of people with the confidence to know they can deliver and who personify the Coat Partners brand and add value to the proposition. They need to be driven, organised and already excelling in their field. “Recruitment is a massive sector, with around 260 firms registered in the Leeds area alone, and there are a few other firms out there taking this sort

KENTON ROBBINS, a former Regional Director for Yorkshire & the Humber for the Institute of directors and a qualified Executive Coach, has helped a significant number of businesses by identifying their issues, challenges and needs. This involves strategic direction and the development of clear recruitment and Talent Capital strategies. WAYNE UNDERWOOD holds a wide and diverse platform of business investments and dedicates his time to the growth, development and enhancement of the group. He has established himself as one of Yorkshire’s most successful business leaders and entrepreneurs by seeing the power of talent in achieving success. BEN RILEY is widely regarded for his in-depth and insight into organisational needs for talent development. He is a leading entrepreneur with a portfolio of business investments, having studied European Business & Law before embarking on a career in recruitment.

of approach, but whether they are doing it well is debatable, perhaps because they don’t have the collective experience that we have behind us. “It is very easy to start up a recruitment business, but much more difficult to bring a level of gravitas

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COMPANY PROFILE

Coat Partners is one of the UK’s most influential recruitment firms, specializing in the placement of Executives and Board members globally. and depth to the role as Coat Partners will do. The brand has been built around our credentials and where we have come from around the business and we are very proud and protective of that reputation.” So many years of experience from the three men leading this ground-breaking venture has taught them how to deal with many challenges, in many companies, in many parts of the world and they can quickly build a deep relationship with a company and determine the reason for recruitment – either growth, change or a specific problem to be solved. Understanding those reasons will often help pin down the competencies and characteristics ended in the new recruit. At this rarified level recruitment can either drive or decimate huge organisations and the existing execs looking for drive need to have full confidence in the abilities of the recruiters they invite into their boardrooms. The new business has offices in Leeds, London and New York and is already talking to contacts in Colorado about the huge potential out there, laying the foundations for a growing and truly global brand. “I think there will be organic growth of the model to keep it focussed on what we want to achieve – as long as the numbers we start bringing in are the right sort of people we will be on track,” said Kenton. “We’re all hugely excited by the prospects. It is a great opportunity to do something slightly counter-intuitive to a very buoyant market.” On the Coat Partners website - coat-partners. squarespace.com - Kenton explains that the company will “combine the very best of traditional methods with the insightful and

JOIN US As an exceptional recruitment professional you will often consider your options and ways to maximize your own personal wealth returns, while looking at ways to grow professional and stretch yourself, Coat Partners was strategically born to answer these questions and help house the elite of the recruitment world and deliver a home and a service that offers what other recruitment firms cannot or will not. The Partnership was defined to encompass the truly elite and deliver a system and brand that truly adds value in non-invasive or intrusive way, while acting to underpin the needs of a self-employed high level recruitment professional. We offer the support and systems so you can maximize your earnings while Coat gives you the environment to succeed.

integrated strategies to create campaigns that give the very best return on your investment. “ It becomes clear early on that the new venture is all about the confidence and experience of three agenda-setting experts. Kenton, Wayne and Ben are their own perfect recruits for Coat Partners. Their CVs are tailor-made and combine to define a formidable team that is changing the face of executive recruitment.

Because excellence isn’t only skin deep, we use our talents to look beyond the obvious

For enquires, please contact kenton.robbins@coatpartners.com, call 07707 811590 or visit www.coatpartners.com

BUSINESS QUARTER | SPRING 15

ENTREPRENEUR

SPRING 15

A TWIST IN THE SALE

From humble beginnings in the muddy fields of North Yorkshire, Twisted Defender is fast becoming a global phenomenon with Hollywood A-listers, princesses and kings among its customers. Andrew Mernin meets the farm lad-turned-entrepreneur behind it, Charles Fawcett, as the company plots overseas expansion and deals with the fallout from a make or break decision >>

BUSINESS QUARTER | SPRING 15

SPRING 15

ENTREPRENEUR

The people that buy from us love Defenders but they can’t live with one. It’s too noisy, it’s too slow, it’s not comfortable and it doesn’t handle very well

BUSINESS QUARTER | SPRING 15

ENTREPRENEUR “That one’s going to royalty in Malaysia,” says Charles Fawcett, pointing at a gleaming 4x4. “And this one’s for someone in the Saudi royal family,” he adds, nodding towards another. Parked up outside are more Land Rover Defenders with links to the rich and famous. There’s one which Angelina Jolie and Brad Pitt recently loaned during a stay in England, while another was built for the superstar skateboarder Tony Hawks. Paying customers of Fawcett’s business, meanwhile, come from as far away as Indonesia, Malaysia, Saudi Arabia, the UAE, New Zealand, Australia and South Africa. Discussions with a potential Russian distributor have also been ongoing, although financial constraints have just put that deal on ice when we meet. Through entrepreneurial endeavour Fawcett has turned a youth spent tinkering with Land Rover engines into a multi-million pound empire. Twisted Defender, based in Thirsk, North Yorkshire, takes the ultimate rural vehicle – and Balmoral trundler to the Queen – and turns it into something completely different. The essence of Land Rover remains, but engine wizardry and luxury additions create a vessel of comfort, performance and aesthetics. As Radio Two DJ Chris Evans put it, Fawcett has tapped into the lucrative market “for pseudo soft southern numpties like me”. Fawcett says: “We buy them new, take them apart and put them back together as the customer wants. We could change anything from the suspension, breaks, power and panel alignment to soundproofing the interior. It could be anything; we’re just in the process of putting a coffee machine in one Defender. Another we did for royalty overseas wanted a chain saw and mount. “Fundamentally the people that buy from us love Defenders but they can’t live with one. It’s too noisy, it’s too slow, it’s not comfortable and it doesn’t handle very well. It’s not an enjoyable experience and they are hard work.

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“When we’ve finished with them they are still absolutely a Defender. They still look and feel like one, but we get rid of the annoyances.” With a hand on the bonnet of a sparkling white machine, he adds: “This one has had so much work done to it to make it a much nicer place to be. It will drive right, it will handle well, it will be quieter, smoother and crisper. But it’s just a Defender to the outside world and people love that.” The business was launched as a standalone firm in 2008 and has grown rapidly since, with an expectation of doubling current turnover to beyond £10m by 2020. Several market forces are driving growth. Crucially, Defender is becoming increasingly sought after following a decision by Jaguar Land Rover (JLR) to stop its production this year. The model does not meet new European laws on fuel emissions and fails certain safety tests. Production will cease at JLR’s plant in Solihull in the West Midlands in December. It will end 67 years of manufacturing since the first model in the style of the Defender was introduced based on a World War II Jeep. Meanwhile, blueprints for a new hi-tech family of Defenders have been drawn up. The news has prompted a shopping spree among Defender enthusiasts, keen to get their hands on the last of the British breed. And with thousands of what became known as Defender in the early 1990s being churned

out every year in the UK, fawcett insists there is no danger of a shortage of customer demand for his own firm in the future. Absence will only make the heart grow fonder, he believes, as Defender’s legions of fans look to keep the model alive. “Defenders are more popular than ever and people adore them,” says Fawcett. “The Queen has one and you can be a rock star, housewife, farmer, mountain biker, skateboarder and surfer and Defender fits. You can take it to the Ritz, an auction mart or Tesco and no-one has an opinion. Defender is absolutely priceless in that sense as there isn’t another vehicle like that that doesn’t have some stigma attached to it. You don’t hear people say ‘look at that flash git there in the Defender’. It’s classless and there’s never any animosity towards it.” Thanks to good relations with JLR, Twisted has had a circa £8m order for 240 new Defenders rubber stamped, which Fawcett equates to three years’ worth of business at its current growth rate. The firm will also work with whatever form the next generation takes. Twisted is also geared up for a surge in restorations, with the firm dominating the high-end of that market, away from the numerous places where vehicles can be simply “blinged and pimped up”, Fawcett says. “The love for Defender isn’t going to just go away and I believe restoration will become >>

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

BUSINESS QUARTER | SPRING 15

SPRING 15

ENTREPRENEUR

You don’t hear people say ‘look at that flash git there in the Defender’. It’s classless and there’s never any animosity towards it

BUSINESS QUARTER | SPRING 15

ENTREPRENEUR

a huge part of our business. Vehicles are coming out of the woodwork from all over the world and there aren’t many places you can send them to be done properly.” But Twisted is also looking to capitalise on more recent news to come out of JLR’s Coventry press office that the Defender could live on in Asia. The group is plotting to shift production of the current Defender to India to cater for demand outside of the EU. Fawcett says: “Although it will be built in India, it will still be seen as a very English car, and they love English products over there. There’s no reason why we couldn’t be doing exactly what we do in Thirsk over there. The foundations would have to be put in place over the next 12 months and it could potentially happen within two years.” Twisted also has its eyes on the Chinese market as a potential base for a new overseas outpost. But higher up the agenda is America, where Fawcett has just agreed a deal to open

SPRING 15

I believe it’s possible to have the same sized facilities in India, China and the US as we have here a facility. The move, that will see a plant open in Texas, could be up and running this summer. “I believe it’s possible to have the same sized facilities in India, China and the US as we have here,” he says. Such is the demand from export markets that Fawcett envisages a fundamental shift in the make-up of the company’s revenue streams. Currently exports make up 20% of business, with a thriving UK market dominating

earnings. But Fawcett says: “Over the next 18 months I believe there will be a complete switch and exports could become 80%. The vehicle has never been so popular and there is an awful lot of money abroad. When people learn they can no longer have a Defender they are going to want one more.” Safety regulations in the US market mean Defenders have been banned from American roads because of a lack of airbags. Only vehicles 25 years old or more are exempt from such legislation. As a result, there is a lucrative market for the vehicles in good condition, which can fetch up to six-times their UK value, and are often sold in the US for upwards of US$100,000. “America is a huge opportunity and is enhanced by the fact that they’ve never been able to buy Defenders new. Currently we can’t do any work on cars less than 25 years old. The Defender came about in 1991 so next year we can start working on the first Defenders.” For all the global ambition,

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

BUSINESS QUARTER | SPRING 15

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Twisted remains rooted to North Yorkshire. “It would be very easy to relocate to Coventry and take 100,000 sq ft and take advantage of the employment resources related to JLR. But it wouldn’t be what Twisted is all about, which is a very niche, personal business.” The company’s HQ is the third spot it has inhabited at the same business park, such has been the pace of growth in recent years. The personal touch Fawcett refers to is evidenced in its production set-up. Instead of a conveyor belt approach, with different employees set specific fitting and fixing roles, one engineer will build an entire vehicle. “Each car goes through the same man. He will build it from start to finish, other than a couple of things like the paintwork and the checks at the end. We want it to be traceable and we want somebody to put their stamp on it. ”Sales people are a rare creature in the

ENTREPRENEUR

Twisted world. The firm does have a team officially labelled ‘sales’ to handle transactions. But those pushy types who lurk in glassfronted showrooms are out. “I did once employ a car salesman and it’s the worst thing I’ve ever done. They try to engineer conversations to sell a car but if people want the product they will buy it.” The business invests heavily in marketing. The result is a global brand whose fans may be surprised to learn it employs just 20+ staff on a trading estate in North Yorkshire. Marketing involves events such as the Gumball Rally which sees a pack of exotic cars travel on public roads across continents. In 2013 Twisted took four vehicles on the 10-day, 21,000 mile trans-European epic. “There were 16 supercars and four of ours. Land Rovers didn’t fit in, which is why we were so popular along the route. People

naturally wanted to know who we were and what the vehicles were. There were huge parties in cities every night and we’d be seen by hundreds of thousands of people. “We also built a car for Tony Hawks, the skateboarder – and he’s got 4.5 million Facebook followers. Then MTV used a Twisted Defender to go urban surfing through St Petersburg. So when all of the Land Rover people are going to the usual shows, we are putting Land Rovers where they shouldn’t be.” Like the vehicles he produces, perhaps Fawcett himself is a fish out of water at times. Certainly, he has none of the ego you might expect from the boss of a global luxury brand. Nor does he seem the type that actually has a hotline to a network of Middle and Far Eastern royal families. As unassuming and understated as a Twisted Defenders, he says: “All this is still just my little hobby – my little passion.” n

BUSINESS QUARTER | SPRING 15

COMMERCIAL PROPERTY

SPRING 15

Construction on the rise in Leeds as effects of recovery are felt, growth expected in specialist sectors, development of popular building driven by demand from SMEs, business park concludes deals worth £1.4m >> Facelift for three estates ATC Properties has invested in a refurbishment programme involving three industrial estates in West Yorkshire. The developments include Balm Road Industrial Park in Hunslet, Leeds, Astoria Court in Normanton and work is also set to start on Shawbeck Industrial Estate, off Elland Road in Leeds. Property consultancy GVA’s industrial and distribution team, alongside Carter Towler, has been retained by ATC to market the available units which range from 2,500 sq ft up to 20,000 sq ft. Iain McPhail, associate at GVA’s Yorkshire office, said: “Due to the scarcity of industrial and trade counter stock in the area, coupled with the quality standard of finish to the units, we are receiving a good level of interest from both national and regional occupiers.”

>> Eden finds new home Tech firm Eden, has relocated to new offices close to Leeds Bradford Airport as part of its ongoing growth plans. Business technology specialists Andy Payne and Richard Kennedy launched Eden in 2011, after previously working for some of the UK’s largest IT and telecommunications companies. Eden has now relocated into Axiom House, which is located on Moorfield Business Park at Yeadon, from its previous base just outside Bradford.

>> New units ready soon Henry Boot Developments has started speculative construction of new industrial accommodation at Thorne Park, near Doncaster. The units are expected to be available for occupation this summer with the scheme’s completion due by September. Thorne Park covers 150,000 sq ft of industrial and warehouse space. The firm recently secured a £6.45m grant from the European Regional Development Fund (ERDF) to enable delivery of this final phase of Thorne Park.

BUSINESS QUARTER | SPRING 15

Angela Barnicle, Deloitte

>> Building for the future Construction activity in Leeds is rebounding and the outlook suggests that the recovery has further to run, according a new study. The latest crane survey of the city by Deloitte has recorded 14 new starts, 10 of which are new-build developments, compared with just three in 2013. These included the 202,000 sq ft Central Square development, and the latest phase of MEPC’s Wellington Place scheme. Over 550,000 sq ft of office space is under construction in Leeds, an average of 99,000 sq ft per office scheme. This is three and a half times more than in 2013, fuelled by a growing tenant demand and rising developer confidence. Angela Barnicle, director and head of real estate for Deloitte in Yorkshire, said: “Some commercial property developers continue to be cautious, but we expect to see sentiment strengthen further this year, and some of the previously-announced schemes in the city will start to take shape.”

>> Exchange has new tenants Two new office lettings have been secured at The Exchange office building in Harrogate. The UK’s largest health and social care legal practice, Hempsons, has taken an additional 2,600 sq ft on the third floor, whilst Harrogate’s newest architectural company,

Smalley Marsey Rispin Architects, has taken 2,000 sq ft on the second floor. Both deals were brokered for the landlord by property consultant Carter Jonas. Amanda Marsey, of Smalley Marsey Rispin Architects, said: “We are delighted to start our new venture within such a light and modern environment. Our staff are key to our successes and this open space has allowed us to create the one-team atmosphere we were hoping for.”

>> Specialist sectors grow Opportunities in specialist property sectors including healthcare and student direct lets are on track to account for an increasing share of the commercial market in South Yorkshire, a report has suggested. The squeezing of yields within the traditional sectors such as retail and offices has prompted investors to look at assets which offer better returns and opportunities for diversification. Knight Frank believed this year will see a sharp increase in deal volumes for specialist property, along with rental growth and further yield compression. Stephen Hodgson, Sheffield partner and head of regional commercial offices, said: “Key driving factors include structural changes such as the UK’s ageing population and increase in student numbers, combined with increased occupier demand for high quality property.

>> Refurb plans brewing New life is to be given to part of York’s historic brewing heritage with refurbishment plans being submitted to the city’s planners recently. A plan by York-based developer, Northminster Ltd, to transform 19th century malting house, Clementhorpe Maltings, owned by City of York Council, into six family town houses is being submitted to the local authority.

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COMMERCIAL PROPERTY >> Big money deals go ahead

>> Balance offices expand to meet needs of SMEs

Almost £1.4m worth of land sales have been completed at Sheffield Business Park in two separate deals. The joint venture team of JF Finnegan and Sheffield Business Park, Broomco Limited, has completed £1.375m of land sales at Zone 6 within Sheffield Business Park to Tuffnells Parcels Express and JCT600. Tuffnells Parcels, whose HQ is in close proximity to the site, has bought 3.55 acres to develop a new parcel depot and JCT 600 has purchased a 0.10 acre plot to expand its existing operations at Zone 6 where its JCT600 Volkswagen Van Centre is in operation. Commercial Property Partners (CPP) and Knight Frank acted for the JV and the purchasers were unrepresented. Sheffield Business Park is one of Yorkshire’s largest business parks with over 200 acres of which circa 600,000 sq ft is already built and occupied by high profile occupiers such as Fujitsu Siemens, HSBC, South Yorkshire Police and Stanley UK with in excess of 900,000 sq ft of future development proposed.

The owner of a prominent office development in Sheffield city centre has added a new suite of units to meet demand from SMEs. The Balance offices on Trippet Lane, already home to big names including Plusnet and Hill Dickinson, has also drawn in Access Computer Consulting Plc, Protocol Education and Horwich Farrelly in recent weeks. The site’s popularity has prompted owner CBRE Global Investors to bring a further phase of suites to market. The Sheffield office of Knight Frank has advised the landlord, working alongside Commercial Property Partners (CPP) as joint agents.

>> Retail space in demand Tenant demand for retail space in Yorkshire and Humber continued to rise during the last quarter, data shows. Figures also show that 39% more surveyors reported a greater investment interest in all commercial property sectors in the region in the last quarter. In all, 30% more chartered surveyors reported a rise in the occupier demand for retail premises in Yorkshire and Humber in Q4. However, the pace of tenant demand growth for industrial property eased slightly over the last three months, from 51% more respondents reporting a rise in Q3 to 40% in Q4. The figures come from the latest RICS (Royal Institution of Chartered Surveyors) Commercial Market Survey.

>> Business park jobs boost A newly developed business park in Bradford is set to create 100 sustainable jobs, according to the real estate group behind it, Frank Marshall Estates. Frank Marshall Estates bought the five-acre business park, part of Prologis Park, from Prologis for an undisclosed sum earlier this year. Outline planning for eight business units, totalling 38,000 sq ft, will be submitted to Bradford City Council later this month. Frank Marshall Estates is run by Edward and Jimmy Marshall and has significant commercial assets in Yorkshire.

>> Investing in the north Specialist bank Handelsbanken is to open a new regional head office for the North East and Yorkshire in Leeds. The Swedish-owned bank has taken a new 10 year lease of 8,300 sq ft of space at No 1 Whitehall Riverside, following recent refurbishment of two floors within the building. Landlord NFU Mutual let the space.

BUSINESS QUARTER | SPRING 15

BEST OF SPRING in association with

THE DRIVE FOR PERFECTION AT BOWCLIFFE HALL Every inch of the stunning 200 year old building and its 50-acre estate in Bramham, near Wetherby, shows the touch of a craftsman and the guiding hand of its proud owner Jonathan Turner. There are no corners cut here, no compromises accepted and nothing less than the highest standards were demanded during the £6m restoration and rebirth of this Grade II listed hall. This home of pioneers is leading the way again, and the list of accomplishments is long and thorough, from the breathtaking Blackburn Wing conference building which looks as if it has just made a silent and safe landing among the trees to the wood-panelled Drivers Club restaurant and the 1,200 square feet of office space in The Cricket Pavilion. That same granular level of dedication and detail is also immediately apparent in the kitchen, from where award-winning Yorkshire Signature chef John Topham oversees all dining at Bowcliffe Hall. John’s renowned food is created around local produce, supporting Yorkshire businesses day after day by using the finest meats and vegetables to redefine the taste of Yorkshire and bring the attention of the world’s culinary talent to this beautiful corner of the county.

Signature Chef John Topham

At this time of year, John knows that one particular Yorkshire delicacy is among the very best – asparagus. “There’s something wonderful and uplifting going on in our kitchen – the start of the English asparagus season (end of April until mid- summers day), bringing a shard of sunshine into our lives,” said John. “Forget the Peruvian stuff found in our supermarkets all year round, it’s got to be British, picked fresh and in season. “Delicious just simply boiled for a couple of minutes with a knob of butter melting over it. It has a glorious crisp crunch, a clean sweet taste, a little nutty, pea-like flavour.” His years of experience means John knows exactly which parts of Yorkshire will give his

customers this taste sensation. He says: “Yorkshire asparagus is really the best. The Regional Food Group looked at the nutritional content of Yorkshire asparagus and compared it to asparagus imported from Peru, Spain and Italy. The Yorkshire spears were found to contain seven times as much anthocyanin and up to twice as much chlorophyll – antioxidants which are believed to protect against cancer. They were also higher in vitamin C, folic acid and sugar which explains why they taste better. “Asparagus need loose soil that drains well and heats up quickly in warm weather. It needs two years left alone to develop and build up the underground crowns before being ready to harvest. Once the land starts to warm up and the season starts it can grow up to six inches in a day. “Sometimes a field will be harvested twice in a 24 hour period. If the soil is below 10˚C, the plant stops sending out new shoots (the spears we chop off and eat) and shuts down so a good warm spring gives us the best crop.” With that level of knowledge and enthusiasm for Yorkshire produce, it is no wonder Bowcliffe Hall is drawing gasps of admiration and appreciation from businesses, visitors and and diners.

Seasonal spring produce (March to May) Lamb Pigeon Rabbit Hare Mackerel Lobster Halibut Bass

BUSINESS QUARTER | SPRING 15

Prawns Haddock Asparagus Cauliflower Spring Green Cabbage Savoy Cabbage Kale Cucumber

Spinach Lettuce Purple Sprouting Broccoli Carrots Spring Onions Rhubarb Apricots

Blueberries Nectarines Pineapples Raspberries Strawberries Papayas

BEST OF SPRING

>> Asparagus Soldiers. Soft Boiled Egg and Truffle Costini. Makes a great dinner party starter or Sunday Supper Ingredients >> 6 slices thin streaky bacon 5 large free range eggs 2 tbsp milk 2 tbsp plain flour Sea salt and milled black pepper 4 tbsp breadcrumbs 20 large asparagus spears 2 litres vegetable cooking oil CROSTINI: 4 slices Brioche 4 tbsp larified butter 4 tbsp truffle tapenade (minced black truffle)

In a large pan of boiling water, boil 4 eggs for 4 minutes, remove from the heat and cool quickly under a cold running tap for 2 minutes, carefully tap the eggshells all over and roll them on a work surface then pick off the shell. Whisk the remaining egg with the milk. Place the flour in a small bowl and season with salt and pepper. Place the cooled bacon in a plastic bag and bash it with a rolling pin to make bacon crumbs, mix these with the breadcrumbs in a bowl.

(If you can’t get hold of the truffle tapenade, don’t

Method >>

Dust each egg in the flour then dip into the egg wash and roll them in the crumbs, keep them in the fridge until required.

Place the bacon on a non stick baking tray and cook in the oven for 10-15 minutes until golden and crispy, remove from the oven and leave to cool.

Trim the asparagus by snapping off the tough base of each spear and trimming with a vegetable peeler.

worry as the dish is still fantastic without the crostini)

Heat a non stick frying pan, add 1 tbsp of clarified butter and fry a slice of brioche until light brown on both sides, keep to one side and repeat to cook the others. Put each slice down flat and slice them open lengthwise, then spread a tablespoon of the truffle tapenade in each and put both slices together again. Cut crusts away, cut into strips and Keep in a warm place. Heat the oil to 160˚C Bring a large pan of salted water to the boil and cook the asparagus for 2 minutes. Meanwhile, fry the eggs carefully for 3 minutes until golden and drain on kitchen paper. Slice a small slice off the bottom of the eggs so that they will stand up and carefully slice the top off each egg before serving. SERVES 4

BUSINESS QUARTER | SPRING 15

EMERGING ENTREPRENEUR

National Emerging Entrepreneur Dinner 2015 In partnership with

The National BQ Emerging Entrepreneur Dinner 2015 at Newcastle Gateshead Hilton brought together both emerging and recognised entrepreneurs from across the UK for a celebration of enterprise and to recognise entrepreneurial rising stars from Scotland, the North East, Yorkshire and the West Midlands

MADE

Held in association with MADE: The Entrepreneur Festival 2015, the dinner highlighted the individual stories of 16 shortlisted emerging entrepreneur finalists with one from each area being chosen to go forward for national recognition at MADE 2015. The dinner was held in partnership with Gateshead College with other sponsors including Irwin Mitchell, Quantum Law, Lloyd Newcastle, BMW & Mini, Chromazone and U Name It Promotions and hosted by Mark Easton, BBC Home Editor. The BQ Yorkshire Emerging Entrepreneur winner was Darren Padgett of Team Activ, a former PE teacher who championed school sport in Barnsley. Darren Padgett led a secondary school PE department for almost 20 years before managing the School Sports Partnership in Barnsley for a decade until funding was scrapped, when he set up Team Activ to ensure the progress and improvements made to sport in Barnsley’s schools would not be lost. He introduced a programme of community and business-based services to generate extra revenue to support his work with school children, re-employed former colleagues and now has a company employing 30 qualified teachers and coaches. Shortlisted entrants were chosen on the basis of entrepreneurial character, business performance, business strategy, business impact, innovation and personal values. The three others on the Yorkshire shortlist were: Rowena Johnson of BugBrush, Chris Burgess of CB Information Systems, and Sophie Maxwell of The Really Neet College. As well Associate sponsor:

Supported by:

MADE

Lloyd Newcastle

The Entrepreneur Festival: Sheffield

Wine sponsor:

Signage and promotions supplied by:

The Entrepreneur Festival: Sheffield

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as host Mark Easton, BBC Home Editor, the event also featured guest speaker Stephen Kee, managing director of Saks Hair & Beauty, the national award-winning hair and beauty salon group. Bryan Hoare, director of BQ magazine, said: “Congratulations to Darren who was the worthy winner in an extremely strong field of contestants who bear testimony to the vibrant entrepreneurial culture in Yorkshire. BQ magazine is all about profiling and encouraging entrepreneurs and we are delighted to be able to showcase them at the awards and to give Darren such an important national platform as the MADE festival, which has been described as a Glastonbury for business.’’ Judith Doyle, principal and chief executive at Gateshead College, which was headline sponsor and partner of the national dinner, said: “Supporting the next generation of entrepreneurs and entrepreneurial thinkers is at the core of our strategy at Gateshead College and we were delighted to be part of the BQ event. “Recognising those individuals that are embracing their ideas with commitment and ambition and helping to create employment and economic prosperity is extremely important. At Gateshead College we are inspiring our students to leave college not only with the qualifications, skills and knowledge within their chosen fields, we also want them to possess the confidence, strong work ethic, personality and softer skills that can make a real difference to the businesses they develop or the organisations they go on to join.” n

21 - 22 October 2015

madefestival.com

EMERGING ENTREPRENEUR

National finalists: Darren Padgett of Team Activ with Richard Kirk of Polyphotonix ltd, Fiona Houston of Mara Seaweed and Spencer Bloomfield of Yolo Foods

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

BUSINESS QUARTER | SPRING 15

ENTREPRENEUR

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FORMER PE TEACHER’S FIRM IS FIGHTING FIT This year’s BQ Emerging Entrepreneur award in Yorkshire was handed to former PE teacher-turnedsocial-entrepreneur Darren Padgett. He will now compete for the national title at MADE: The Entrepreneur Festival in Sheffield in October. Ahead of the event, he tells Andrew Mernin how he shot his way to start-up success

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The entrepreneurial spark hits some when they least expect it. Take Darren Padgett. Having spent almost 30 years as a PE teacher, he saw the rest of his career mapped out ahead of him as he approached his 50th birthday. Another decade and a half of life in a tracksuit would be followed by a healthy pension pot to enjoy music, running and his other passions. Then Michael Gove intervened, and funding cuts signed off by the then education secretary left Padgett facing the dole queue. “I had been working as the Schools Sports Partnership’s manager in Barnsley for eight years, working with primary and secondary schools and creating a whole network. I had become a teacher of teachers and we had developed a fantastic programme,” he says. “It was about putting competition at the forefront of school life, but also the mass participation of kids and engaging them.” “But at a national conference in 2010 we were told the coalition had decided the programme was being cut due to funding.” Instead of seeking new employment, Darren sought to continue the good work. “I considered looking for a job, but then thought ‘who’s going to pick this up if I don’t?’ It was quite scary once I’d made that decision.” Padgett was formerly head of PE at the school where bleak, boy-meets-kestrel movie Kes was filmed. And he admits to initially being trained in the mould of Brian Glover’s infamous turn as an overbearing PE teacher. But gradually he realised there was so much more that could be achieved in physical education by moving away from just a winning-at-all-costs mentally. “Our ethos was about showing kids what they could do for the rest of their lives. So we introduced them to a range of activities which are fun and involve teamwork, communication and resilience. I use the term ‘fit for life’.” And so Team Activ, employing 20 people with a turnover of around £350,000, was born. Once the programme that paid Padgett’s wages was scrapped, he acted fast to build a social enterprise that could take its place. “The biggest challenge was self-doubt. Was I up to the task? How long could I keep it going? Was there something else I should have been doing? But I started talking to other business leaders, who I found were far more open than people in education. I realised that

ENTREPRENEUR

they had the same self-doubts as I did.” Team Activ was set up with a remit to transform lives by making sport fun, challenging and life affirming. It started out purely focused on schoolchildren but, with national expansion beckoning, it also now works with businesses and their employees. With no investment or funding to buy time in the start-up phase, Padgett’s first hurdle was to get schools to tune into his vision. “I basically said to the schools ‘you know that programme that you’ve had for free for 10 years because it’s government funded? Will you fund it yourself if I can assure you that it will be even better than you’ve had before?’” Forty schools came aboard and Padgett was able to employ six former colleagues.

His confidence comes from the company’s broadening horizons, with an increasing number of schools beyond South Yorkshire registering an interest. There is also a keenness to work with the NHS, while it is already working with councils on a programme promoting the benefits of walking. “In effect we are doing a lot of work that will have an impact on the NHS further down the line. We are getting kids fitter for the future, which will have a knock-on effect and reduce NHS spending.” And the firm aims to engage more closely with the corporate world and local communities. Through the spin-off brand Team Activ Adventure it has launched a series of events called ‘Go Wild in...’ which will take place this

In effect we are doing a lot of work that will have an impact on the NHS further down the line. We are getting kids fitter for the future, which will have a knockon effect and reduce NHS spending Team Activ’s goal is to help drive a societywide change in how sporting activity is used. Padgett believes sport can and should play a wider role in communities and businesses. Activities like orienteering, trail races and geocaching – which sees participants use GPS to hide and seek containers – can make sport less intimidating and more inclusive, he says. “Most adults have an impression of PE from when they were at school that usually isn’t very good. We are creating a future where people are fit for life. That’s not just physically fit; it’s mentally and socially fit. In primary schools, every teacher has to teach PE but physical education has always been undervalued in terms of training. So we also work to train them on the job and to be more confident with PE.” Today Team Activ works with around 50 primary schools, 10 secondary schools and one further education facility in Barnsley College. Each customer pays based on number of pupils per year. Padgett estimates turnover will hit £1m next year and £10m within five years.

year in the Peak District, the Lakes, Scotland and the Yorkshire Dales. Under the moniker Team Activ Plus, the company is also working with businesses, running corporate sports leagues and encouraging after-work activities. “Having a fit and healthy workforce can make a lot of difference to productivity, morale, staff retention and sickness rates,” Padgett says. “Corporate events, such as the dodge ball competition we recently hosted in Leeds, will make us sustainable,” says Padgett. “We’ve built a local model of how sport and physical activity can and should operate nationally.” As his enterprise grows, so too does his profile as an expert on all things PE. He is now chairman of the National Association for Physical Education and works closely with the Department for Education and Sport England. In 2012 he won the Unsung Hero award at the Daily Telegraph’s School Sport Matters awards. Let’s hope he can add to his trophy cabinet by picking up the national BQ Emerging Entrepreneur of the Year Award later this year. n

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in association with

NURTURING THE SEEDS OF SUCCESS The issue: How can we support growth and enterprise across Yorkshire, helping local businesses maximise opportunities and achieve their ambitions? THE DEBATE Discussions began with delegates voicing their concerns about the issues holding back entrepreneurial success in Yorkshire. Philip Bartey, who formerly held senior posts in the food and drink industry before getting involved in the third sector, questioned the often disjointed nature of funding schemes. He said: “I think there’s a great need for levels of bureaucracy to be removed both at central and local government and to bring an end to the stop start process of funding. We need consistent levels of funding support to drive the regional economy forward. “There are 13 local authorities in the Leeds City Region and nine in Sheffield City Region. My question is with all these local authorities fighting each other for a diminishing pot of funding from central government, is the system bust?” Gavin Leverett, who oversees finances at a £60m+ turnover construction firm headquartered in Rotherham, suggested a lack of connectivity between regional businesses as a major challenge. “We probably have our strongest order book

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for 10 years but virtually none of it is in this region. So we would like to see some way of finding more work in this area.” Santander’s Barry Dillon pointed out that poor signposting to funding and finance was a common hindrance to emerging enterprises. Young entrepreneur Lewis Bowen – creator of a fast-growing Sheffield-based gel fuels business – warned: “There is no vibrancy around the investment community in this region, especially in Sheffield. So how can we encourage that instead of having to go to London to seek investment?” For Rob Moore, who works with businesses from a range of sectors across the region, succession issues within organisations are particularly concerning. He said: “At many SMEs, directors are getting to the point where they want to retire but the next generation of people are just not interested in becoming leaders of their businesses and generating growth. Often people in their 20s and 30s are more interested in that work/life balance. So how do we fire up the younger generation to actually want to go out there and be the risk takers that will generate the growth?”

TAKING PART Gavin Leverett, financial director, Horbury Group Matthew Sibley, senior business advisor, Business Sheffield Kevan Bingham, managing director Mayflower Engineering Julie Kenny, managing director, Pyronix Ltd Lewis Bowen, managing director, Geco Industries Andy Tuscher, regional director, EEF Philip Bartey, chief executive, Autism Plus Ltd Rob Moore, partner, Taylor & Emmet Alastair MacColl, chief executive, BE Group Andrew Sale, head of City Business School, Sheffield City College Andy Hanselman, partner, Andy Hanselman Consulting Jonathan Thompson, regional director, Santander Liz Pickering, relationship director, Santander Barry Dillon, business development director, Santander Lisa Leighton, partner, BHP Chartered Accountants In the chair: Caroline Theobald, managing director, Bridge Club Ltd Taking notes: Andrew Mernin, editor, BQ Yorkshire Venue: The Mercure St Pauls Hotel in Sheffield 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.

Andy Tuscher said businesses needed more encouragement to invest in R&D. Alastair MacColl, who runs business services firm BE Group and also chairs Teesside University’s board of governors, highlighted a lack of long-term planning among businesses as a threat to their success. “What we don’t do well in this country is plan for the long term,” he said. “When it comes to creating industrial and commercial frameworks, we need to start doing it collaboratively to build a long term vision for the kind of economy we want to be. I don’t see that happening at the moment.” Andy Tuscher agreed, explaining: “Things change parliament to parliament. As an example, it’s uncertain whether the next

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government will actually continue to invest in catapult centres [facilities aimed at turning ideas into commercial successes]. R&D tax credits are coming to an end, but are they going to be replaced? We just don’t know. How as an investor in a business can you plan ahead? How can you guarantee a five-year cycle or invest in a new plant in the UK if you don’t know whether the return on investment is going to happen because interest rates are going to spike or the tax landscape is going to change? At EEF we are constantly pushing to get ministers and senior civil servants to look at UK plc with a long term view, rather than just chasing votes.” Julie Kenny suggested that local enterprise partnerships (LEPs) would also benefit from longer term clarity around government policy. As would free business support initiatives like Business Sheffield, according to Matthew Sibley, who said annual budgets for publiclybacked schemes were often not confirmed until the last quarter of each year. Andy Tuscher: “We need to have stability in what we’re doing. Labour has committed to LEPs, which is great, but Conservatives and

Lib Dems seem very much to have devolution on the agenda with combined authorities and city regions. It just seems like a whirlwind out there at the moment. If we in the know [in business support] are unsure about what’s going on how can businesses deal with it?” Julie Kenny: “Publicly-backed initiatives should be able to commit for more than a year ahead. It’s shocking that staff are put in a position that three months before their contracts are due to expire they don’t know what their future is.” Moving away from talk of funding schemes, Kevan Bingham – whose engineering firm works in a diverse mix of sectors including rail, subsea and steel – focused on how businesses might better help each other to succeed. He said: “How do we get businesses together and networking when often they are just too busy surviving. We are based in Sheffield and we subcontract things outside of Yorkshire, but there is probably someone in Sheffield that could do the work. We are so insular because we have our noses to the grindstone.” Gavin Leverett: “I think one of Sheffield City Region’s problems is that we are maybe a little

DEBATE

bit too inward-looking and we need to be a bit more expansive. Leeds seems much more cosmopolitan and outward facing.” Andy Tuscher, referring to his board position at a further education college, said: “We are doing a £12m rebuild of the college and we struggled to get a Yorkshire-based company to apply to do the work. We put it out to our whole network and the response was woeful.” Lewis Bowen pointed out that poor understanding of the internet might be a contributor to such problems. He said: “When we were starting up the challenge for us was that we had nine suppliers who were all within a 30-mile radius, but none of them had an online presence. It involved going to back rooms and asking around. Nobody knows what anyone else does and I’ve honestly been to businesses where they’ve said ‘what’s a website? Can we send you a fax? We don’t have email’. It’s shocking. Leeds is quite vibrant in terms of digital and communications but in this area of South Yorkshire, we should be getting everybody online and communicating what they do and shouting about it.” >>

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DEBATE

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Andy Hanselman: “Don’t you think if somebody hasn’t been convinced by the power of the internet by now they never will be? You can have all the digital initiatives in the world, but some businesses will still say they don’t need it.” At the same time, some businesses are overly reliant on the web and missing out on the opportunities of face-to-face networking, according to Julie Kenny. She said: “In the digital age you can find out what you want by just asking the internet a question – and that’s what youngsters do. So how do you actually get youngsters to learn the art of communication and actually go out to meet people? It’s really important for younger people to meet more established entrepreneurs to learn from them.” Andy Hanselman explained that his consultancy runs a networking group called Next Generation Sheffield that regularly brings young entrepreneurs together to network. “We have 50 or 60 people meeting up and there are probably three generations of entrepreneurs there. They can ask questions and share stories and find ways around challenges, such as the fear of going to a lawyer, for example. What we’ve found is that a lot of people go to networks and come back and say it wasn’t for them. They felt too young, they were patronised or maybe they were scared of going to professional established networks. We’ve tried to create something about learning and to create a framework to get that advice across.” Next, Alastair MacColl

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We shouldn’t look at the world in an unbalanced way and think that the only people who are going to start businesses are people with qualifications...look at Richard Branson and Alan Sugar underlined how the sharing of supply chain opportunities had the potential to accelerate business growth. He referenced NDI (Northern Defence Industries), a support organisation formerly operated by BE Group and now under EEF’s control. He said: “It specialises in aerospace defence and security and spots supply chain opportunities for its members. If you think of the subsea sector, for example, how do you get advanced warning of all the opportunities coming down the line?” Andy Tuscher: “NDI helped something like £450m worth of orders reach the SME supply base. So we want to learn lessons from NDI and expand it out into the wider supply base and we’ll be doing a number of networking events around the region.” Andrew Sale then explained further education’s role in bolstering business success and the importance of the private sector and education working more closely together. “As a college we are nationally recognised. We are still the largest enterprise academy in the country and we are a leading light in that area, to the point that other colleges come to us for support. We will also soon become the first

college to have academy status with SFEDI, the UK’s only dedicated awarding organisation for enterprise and entrepreneurship. Sheffield is also held up as a beacon in terms of young entrepreneurs and the enterprise pipeline. So we are pretty good at what we do in Sheffield. “The worrying thing when I look at statistics is how many business start-ups we have, then how many business deaths we have, and the two more or less knock each other out. So we are trying to work on business survival and how we can improve that. Obviously our job is education so we will be about qualifications but we are trying to make this as flexible as possible. So how we can help businesses to survive is key.” Philip Bartey then reminded delegates that: “We shouldn’t look at the world in an unbalanced way and think that the only people who are going to start businesses are people with qualifications. You only have to look at Richard Branson and Alan Sugar [both non-graduates].“Many of the disabled people I work with don’t have qualifications but they want to work. They are very skilled and if you can tap into that talented resource and find a

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different way of getting them to the market and into employment, these are some of our future business leaders.” But Rob Moore pointed out that encouraging more entrepreneurial success may require a shift in the mindset of young people. He said: “Part of the problem I see is that we work more hours than anywhere else in Europe; we work stupid hours. People question whether they really want that? Do they really want to be a slave to their desk all day? There’s been a real reaction to that and the rise of this work/ life balance. People would rather go to work do a decent job but also have a life. So how do we actually create an environment where we can get the next generation to be prepared to work as hard as we have to get where we are? But also to protect this work/life balance which is so important for them now? I don’t know what the answer is to that.” Lewis Bowen: “I think it would be dangerous to tell everybody to start their own business, as we’d have a country of failed businesses. But I think we need to create a balance of people that want to lead a business that other people want to work for, perhaps those who don’t want to work long hours.” Liz Pickering suggested that entrepreneurial mentors could help achieve that. Julie Kenny: “Why don’t more entrepreneurs help those earlier on in the journey?” Gavin Leverett: “Mentoring within organisations is also a no-brainer because you get better qualified people who want to stay with you because you are investing in them. So why wouldn’t you do it?”

Lisa Leighton: “Our business relies on us having responsibility to train people. We bring them in at the bottom, rather than higher up, because we believe in growing our own.” Rob Moore: “It’s a continuous educational process. In our organisation it doesn’t matter what level you’re at, we’re all continually being trained and mentored. It’s not just about giving people the skills to do the job, it’s about making more rounded business people.” Andy Tuscher: “You’re in a regulated service industry, so you have to do that. In manufacturing we are trying to encourage more and more firms to do apprenticeships. But the biggest issue is that they are threatened by the big boys. They know if they train somebody up that’s going to be good, they’re going to be poached and go with one of the big boys. Siemens had 1,000 applicants for one job in Hull recently, for example.” Julie Kenny: “There was one particular guy in my business that wanted a degree and I knew that he would use it in order to leave in the future. But I had an agreement that I would pay for his training, and if he left within two years of completing it, he would pay me back proportionately. So I knew that if I committed to him I would either have him for two years at the end of the training, or for four. If you’re employing good people, it’s fantastic to know you’ve got somebody for four years.” Andy Tuscher: “One business I know had a KPI [key performance indicator] that they would lose two people per year through professional development. They knew they didn’t have the opportunities within the

DEBATE

business for career enhancement. But they also knew they were on the up and in a few years would have more higher paid roles.” Meanwhile, apprentices have served Alastair MacColl’s business well recently. He said: “Last year we took on our first two apprentices and it’s been a revelation. We took them on at 17 and, as well as being good at what they do, they’ve actually been a breath of fresh air. They approach things with a different mindset and ask questions more senior staff might not. Now we’ve committed to taking on apprentices every year.” Julie Kenny has had similarly positive results through the work experience system: “I had someone on eight weeks work experience recently and ended up giving them a job. Work experience and internships allow you to try before you buy and make sense.” Bringing talented graduates into businesses can also reap rewards. But, said Jonathan Thompson, post-university recruitment is fraught with challenges. “Why is there a default amongst graduates that they want to work in a blue-chip organisation? Why do people leave SMEs to join blue-chip businesses? Is there a negative perception about SMEs?” Julie Kenny: “Actually some of my longest serving people have left and come back. You never shut your door because when people come back they’ve learnt new skills and what’s good about your business, so they come back more committed.” Lisa Leighton: “They realise the grass isn’t always greener.” >>

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DEBATE

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Philip Bartey: “I promoted a social care support worker who left Sheffield Hallam University, couldn’t get a job in his chosen profession and came to us as a support worker. “I saw the potential in him, promoted him and he gradually worked his way up in the business and left me as director of development and joined my old employer Leonard Cheshire as head of business development. So that’s an example of a person worth investing in to bring them along. It brings benefits to your business and when they leave they say nice things about your business.” Matthew Sibley: “We’ve said a lot about training and skills below executive level. But what about what you’re missing yourself. How do you know when it’s time to say you need help and get a consultant in for example? “I find it very a macho thing, whether owner managers are male or female, to not want to talk about having a consultant. It’s a very difficult thing to overcome to say ‘I’ve had people come in to help me’. People who own businesses are very averse to the idea that they can ask for help.” Kevan Bingham: “I think there is a confidence issue for business leaders, especially in my sector if you’ve worked up from the craft. I’ve just finished a Goldman Sachs programme in Leeds, working with 24 other business owners and MDs. I went for the interview and I was thinking ‘these people are better than me’.” But the move paid off for Kevan, he explained, and he now also benefits from a business mentor. He said: “The more I deal with him and the more I’m in a debate with him, the more it becomes a partnership. Having people come into your business and opening up to them is massive.” The debate’s focus turned to the challenges of longer term sector skills shortages and how they might be overcome to help businesses succeed. Kevan Bingham explained that his firm’s skilled workers are predominantly in the 50+ bracket, with a dearth in experienced younger people suitable for his business. At the same time, he is reluctant to put 16-year-olds on the shop floor due to safety issues, despite the pressing need for newly skilled staff. Meanwhile, in the battle to survive and thrive in a business, there is little time to focus on

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I find it very a macho thing, whether owner managers are male or female, to not want to talk about having a consultant. It’s very difficult to say ‘I’ve had people come in to help me’

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plugging long-term skills issues, as Barry Dillon highlighted: “If you think of an SME’s long list of priorities on a day-to-day basis, where does that skills training and succession planning agenda fit? And is it too late when an SME realises that actually there is a gap there that needs to be filled?” Julie Kenny: “You have to create new people within your business because new people will see you through. I chair an academy that feeds my factory, and that’s the kind of relationship you want to create. It suits you and lets others know that you’ve got a future. “Apprentices have been my best people. The longest serving member of staff has been with me 28 years and joined me as an apprentice at 16. In the past I tried to engage schools and they wouldn’t talk to me, but today they will because they are judged on destinations of where kids end up.” Andrew Sale: “Colleges are also now judged on outcomes and are desperate to get more links with businesses.” Andy Tuscher added that University Technical Colleges (UTCs), which teach technical and scientific subjects to 14 to 18-year-olds, will also have an important role to play in tackling skills shortages. “There’s a very good one in Sheffield and, although there are only 150 young people per year group, what they are finding is that the surrounding schools are having to get their acts together and invest because the UTC’s are taking the best students. So they are a catalyst for skills improvement in the surrounding area.” Lewis Bowen: “But it has to be in your strategy to keep people in the business, as well as bringing new talent through. When you are 16 you aren’t really planning your career at that point and you just want to be excited about what you’re doing. So it’s up to the businesses to create that excitement for someone coming in. Every business should be giving young people the choice and opportunity to do some kind of work experience that gives them a project because if they don’t it’s boring. Filling out paperwork and making teas and coffees is not an apprenticeship.” Jonathan Thompson explained that Santander has a network of university

partnerships across the UK which funds internships into local SMEs. He added: “One of the most exciting things I get to do is site visits of manufacturing and engineering businesses and that environment is something that young people don’t normally get exposed to. It’s fantastic for businesses to open their doors and let younger people touch and feel processes in action.” Moving on from the issue of workforce skills, Philip Bartey said an element of calculated risk-taking was usually at the heart of business success. His organisation, Autism Plus Ltd, is itself involved with a number of entrepreneurial ventures including a chocolate factory in North Yorkshire and a classic car rental business for visitors to James Herriot country. “A lot of the growth is coming from the SMEs across the region that are taking risks. Many of them might be micro but there are a lot of them here in Yorkshire and Humber,” he said. One such risk taker, Lewis Bowen, agreed that giving businesses the encouragement and support to take calculated risks is essential to the long term health of

DEBATE

the regional economy. He said: “We’ve nearly been bust three times in three years, but we’ve also done very well in three years. In terms of risk taking I think we need more people in this area, especially in Sheffield, investing as angels because other finance streams aren’t always the best route for start-ups. Also, people who have great ideas need to know where to go if there is investment available as actually it’s quite hard to find.” Julie Kenny, a board member of Sheffield City Region LEP, said: “At the LEP we’re creating an access to finance hub from April. I’ve been chairing this and bringing together banks, professional advisers, accountants, lawyers and so on to provide that service. We hope small businesses within the city region could come to us and say ‘this is my problem can you help me?’ We want experts in finance to be able to advise you on where best to go, whether that’s equity, loans, grants or bank funding. “We have to encourage and make available that kind of advice and assistance to companies and create the right infrastructure for them to succeed.” n

Breaking through the barriers to growth What is encouraging about the topics covered in this debate is that there is a real appetite to drive growth and support SMEs for the benefit of the Sheffield economy and the wider Yorkshire region. What’s more, we all agree we have our part to play in making it happen and over the past 12 months, at Santander, we have demonstrated how seriously we take that responsibility. We have established a new region, specifically focused on supporting SMEs in South Yorkshire and the Humber. As well as looking after existing customers through a more local presence we have: • Started relationships with 231 new SMEs • Driven SME growth through £62m of additional lending • Opened 3 new business centres in Chesterfield, Rotherham and Barnsley • Recruited 5 new relationship directors. If businesses in our region have aspirations to expand internationally we have a unique proposition. With more branches in the world than any other bank, our network of market contacts, and a range of innovative solutions, including our Trade Portal and Trade Club, we are ideally placed to help them take that first step overseas. And, as part of our Breakthrough programme, designed to nurture businesses and drive growth through funding and mentoring, three local businesses have benefited from attending trade missions to Mexico, New York and Brazil and two more South Yorkshire businesses have this week been awarded places on a Saatchi Masius Masterclass. All of these initiatives are aimed at supporting local businesses and helping them achieve their aspirations. To see how our local team could help you drive your business forward please get in touch. Jonathan Thompson, regional director, South Yorkshire and the Humber Jonathan.thompson@santander.co.uk

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BUSINESS LUNCH

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RISKY SHADES OF GREY LED TO SUCCESS David Grey MBE has come a long way since his time lugging mobile discos around the nightspots of Sheffield. He still works in South Yorkshire, but the club he frequents today is among the most prestigious across the industrial north. And there are no bouncers here. Instead, a white-gloved fellow opens the door and shows us to our table in the grand old room where we’ll have lunch. “It’s been absolutely non-stop,” says Grey of his reign as Master Cutler which began last October. “It truly is a great honour. There are only 100 Master Cutlers every century so how could anyone turn down the chance to do it?” Our interview takes place in the epicentre of Yorkshire manufacturing; The Cutler’s Hall, Sheffield. Seemingly on every wall there is a glass cabinet filled with silver relics of a proud manufactured past. As Master Cutler, this is Grey’s seat of power. Elected into his role by members of the near 400-year-old Cutlers’ Company, he is

David Grey’s flight from DJ to influential business leader has been fuelled by a ‘cando’ attitude, an uncanny knack of spotting opportunities...and a willingness to take the occasional risk. Andrew Mernin charts the rise of the Master Cutler over lunch an ambassador for Sheffield City Region’s manufacturers and wider industries. And for all the top hats, decorative ribbons and ceremonial duties, he insists the influence of the role is very real. “It gives you access to government to discuss issues about manufacturing. We are a region in which manufacturing makes up 19.5% of our economy, compared to 11% nationally. “We’ve got the Advanced Manufacturing Park in Rotherham, for example, and a lot of supply manufacturing. So it’s a very important

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BUSINESS QUARTER | SPRING 15

part of our region. Being Master Cutler to represent that and get access to government is very important.” Grey is well qualified to represent factory bosses in the company of politicians, having built up his own vast manufacturing empire. OSL Group, which turns over around £20m annually and employs over 250 staff, was founded in 1981 with a £1,000 bank loan when Grey was 23. It has grown partly through acquisition, with Grey selling on 20 firms for a profit over >>

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It truly is a great honour. There are only 100 Master Cutlers every century so how could anyone turn down the chance to do it?

the years and leaving four remaining today including Rotabroach hole cutting systems in Sheffield and steering, suspension and braking maker Owens in Rotherham. Also part of OSL is intruder security products firm CQR, based on Merseyside, and Scandura, the oldest gasket cutter in the UK, with origins dating back to the 1880s. Prior to launching OSL, Grey’s career path had seen him “screw-up” his A-Levels, set up a mobile disco business in his late teens and later train to be an accountant. While working at a bearings company, he spotted a gap in the market to sell oil seals. He sourced some, quickly flogged them

and before long he was also handling his first hydraulic cylinders repairs contract. “I hiked them round Sheffield until I found an engineering company that could repair them and I basically made £400 for driving from A to B and B to A.” That was in 1980. Four years later his business was rocked by the miners’ strike, which shaped Grey’s attitude to diversification that has served him so well in business since. “Things were building quite nicely and we had about 35 staff. We told them that the miners wouldn’t be out for long and it won’t affect us because mining was only a small part of our turnover. But they were out for a year and the

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BUSINESS QUARTER | SPRING 15

problem was that we did a lot of business with British Coal customers. “At the end of it I decided we were never going to have a one-market company. So I started acquiring businesses. I didn’t have any money at the time, just a supportive bank.” The result of that acquisitive attitude can be seen in how varied Grey’s business is today. While one division makes burglar alarms, another has produced springs for use on the Hogwarts Express (the real steam engine featured in the Harry Potter movies), the Orient Express and the flying movie car Chitty Chitty Bang Bang, which is currently being restored. In addition, there are numerous

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We’ve got more expensive fuel than our competitors globally, including America and Europe, and this is a failure of government decision making over the last 25 years

other sectors served by OSL’s various divisions. Grey has been granted a year off from the day job, save for the occasional board meeting, to concentrate on being Master Cutler. He has also resigned from his post as a member of the Local Enterprise Partnership board with responsibility for inward investment after three years. “The perennial problems for manufacturers are the lack of skills, the need for an equitable and competitive tax system and energy pricing and capacity,” he says. The state of the UK’s energy mix is of particular concern to Grey, who would welcome the adoption of fracking on these shores. “We have to ask ourselves where is the energy we need going to come from. There is a strong lobby against nuclear, people don’t want gas or coal-fired and they don’t want fracking. You’re not going to meet demand with wind, sea and solar; it’s just not practical. “If you’re in business you need a commercial rate for energy and I’m not convinced I can see the day that wind would give us enough capacity to do that.” Currently, due to UK supply challenges, big power users such as manufacturers can receive a phone call giving them notice that they must go offline as the grid reaches its maximum capacity. Grey says: “That’s nonsense when you think about it. This isn’t Cambodia or the Sahara Desert, this is Sheffield. We’ve got

more expensive fuel than our competitors globally, including America and Europe, and this is a failure of government decision making over the last 25 years.” The solution, says Grey, is to bring an end to the short-term approach which he believes dominates politics. “We need to set out policies that transcend the three-year thinking cycle of government. Energy needs should be part of a bigger industrial strategy. If we want to be a manufacturing nation, what are the things that we need to be successful? Skills, competitive energy pricing and capacity, and a taxation system that takes into account that very large expenditure you have on plant and equipment. You can’t just switch these things on and off from year to year. The trick is to take these key decisions out of politics. “Infrastructure is another big thing that we need longer term thinking on. If you take Heathrow and where to put the next runway. Here we are in 2015 in exactly the same place we were in 2008. Why does it take as long to make a decision as to build the thing? It’s all about cross-party agreement.” Grey points to Germany, where its thriving manufacturing sector is supported by a consistent government approach, regardless of which party is in power. “Germany has ploughed the same path for 60 or 70 years and keeps consistently setting >>

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A cut above the rest Every October a tradition dating back to 1664 sees top-hatted members of the Cutlers’ Company walk through Sheffield city centre for a service at the cathedral. It marks the installation of the new Master Cutler and elected company. Last year it was David Grey’s turn and he still remembers the day fondly as he shows BQ around the Company of Cutler’s lavish home. “It was wonderful,” he says. “It’s a role that’s still held in high esteem in the business world thanks to the commitment all my predecessors showed.” Cutler’s Hall, on Church Street, was built in 1832 and, as well as being home to the Cutlers, hosts weddings and corporate events. Head chef Jamie Whiteley worked at the Michelin starred Old Vicarage in Ridgeway and Casa in Chesterfield amongst others. Before that he was pleasing palates in France, Ireland and the UAE. In Dubai he was a senior chef at the Burj Al Arab, the famous sail-shaped hotel, which markets itself as the world’s only seven starred venue. Our lunch takes place in one of the three smaller rooms available for hire but the venue comprises spaces for all size gathering, right up to the stunning main hall. The decor is as grand as it perhaps has always been and it’s easy to imagine Yorkshire’s industrial forefathers getting down to business over plates of meat and veg. Quite whether their lunches would have been as delicately put together as our business lunch, however, is another matter. For a starter we’re served up chicken thigh, black pudding and Puy lentils with a sage and red wine jus. It’s a delicious combination and is certainly fit for a Master Cutler. The speed at which we silently devour it tells its own story. The main course brings roast monkfish, Serrano ham, cockles, mixed bean cassoulet, fondant potato and asparagus in one carefully crafted dish. The ingredients are perfectly balanced and leave just enough room for chocolates and coffee. For more information about The Cutler’s Hall visit www.cutlershall.co.uk or call 0114 276 8149.

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BUSINESS QUARTER | SPRING 15

its stall out as the manufacturing heart of Europe.” Speculation about the negative impact of pre-election uncertainty on businesses, meanwhile, is unfounded and overblown, according to Grey. “We’ve been through the worst recession in living memory and there is more confidence coming back to markets in Sheffield City Region. I think business people look at general market conditions first, rather than politics.” As well as fighting the corner of manufacturers, Grey is an active supporter of young people in business. He is chairman of the Big Challenge – a competition in which teams of pupils aged 11-19 are given £25 to create their own enterprises. “I think young people do now see entrepreneurialism as a career option. The fact is, when is the best time to set up a business? When you’ve got a mortgage and kids, or when the fall if you fail isn’t too great? “We’re not expecting young people on the Big Challenge to suddenly burst out of school and set up Apple but I just want to make sure that young people know that setting up a business is something that they can do. “I’m really passionate about young people having a go at things. I also believe if someone gives the ball a big enough kick and then goes bust, it’s not a bad thing. Richard Branson’s first business went bust and no-one thinks any less of him. You’re better off having a go at something than not because of fear of failure.” Grey has certainly done that in his own career – and out of work too. He only recently gave up the perilous sport of single seater motor racing. He also has a pilot’s licence and owns a Piper Saratoga aeroplane, which he regularly flies around Europe. But being Master Cutler is his proudest achievement, describing it as the best thing he’s ever done except for marrying his partner Ruth last year. n

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COMPANY PROFILE

Yorkshire integrated marketing agency homes in on growth Leeds-based Home Group has seen phenomenal growth, despite the economic downturn. It has doubled turnover and profit in the last three years alone as well as establishing a number of overseas offices and it has ambitious plans for further expansion With its headquarters in Roundhay, Home began from humble beginnings as a traditional advertising agency in 2002 with a staff of just five people. The group has grown both organically and by acquisition and now comprises 13 companies offering clients a full range of integrated marketing services. It employs a 177-strong team and boasts offices in London, Gibraltar and Sydney as well as Leeds. The group had a turnover of £25m last year. “Marketing trends tend to go in cycles – during the 70s and 80s integrated agencies were in vogue, but by the 90s specialist agencies were in demand. We’ve benefitted from a move back to integrated agencies with clients wanting a joined-up approach to communications, with all services available from a single source,” explains Dave Sewards, chief executive of Home Group. “Whether a client needs just one specialist service such as search or advertising, or a range of elements from the marketing mix, they can come to us. STRATEGIC VISION “While we work across many sectors, in 2007 we made a strategic decision to focus on certain industries which we felt would be recession proof. For example, we targeted the gambling and gaming sector– we decided to become experts in the sector and even opened an office in Gibraltar to help us to get closer to the 20 biggest players. Over the last seven years, the sector has thrived and we believe that no agency in the world now has as much experience in gambling and gaming as us. “Another target sector is pharmaceuticals. Again, pharma tends not to be affected by economic swings so we invested in the acquisition of an agency which specialised in pharma, giving us the knowledge to effectively serve the sector,” adds Dave. “We also recognised that online retail would be the way of the future and, therefore, focussed on growing our expertise of marketing online fashion brands.”

Jonathan Simms (left), partner, Clarion and Dave Sewards (right), chief executive, Home Group

The group’s vision and entrepreneurial approach have paid off. Some new business development has been opportunistic, but much has been strategic. It has completed six acquisitions in the last 18 months and has three more acquisitions in its sights. “We have an ambitious three year plan with significant growth expected through acquisition and by selling a wider range of services to our existing client base,” explains Dave. “A key to our success has been partnering with professionals who really understand our business and can provide real insight. We started working with Clarion four years ago following a recommendation and the team has proved invaluable, taking on a more far-reaching role as business advisers rather than just lawyers. “Whereas previously we only involved lawyers at the last minute to handle the legal paperwork, we now get the Clarion team on board at the earliest stage so they can provide strategic input. Jonathan Simms in particular has been a fantastic support, for example, he’s already been working with us to identify three new sectors to target and the key companies within these sectors. He’s also extremely well-connected and has put us in touch with players within our targeted industries.” Dave continues: “As well as providing corporate advice, Clarion now delivers all of our legal services,

from employment and commercial contracts to intellectual property. The team has the knack of taking care of the complexities and simplifying the process for us as well as genuinely acting as trusted advisers to the wider business.” Jonathan Simms, partner in Clarion’s corporate team, adds: “It’s fantastic to see a dynamic and forward-looking company like Home realising its vision. As an adviser, it’s extremely rewarding to be a part of the company’s continued success and to be able to play a full role in advising the business, from providing strategic input to delivering legal services. It is a great example of Clarion’s ethos of providing a holistic approach – we are committed to investing in long term relationships, really getting under the skin of clients’ businesses and adding value.”

Can we help you? Call Jonathan Simms on 0113 336 3387 or email jonathan.simms@clarionsolicitors.com Please visit www.clarionsolicitors.com for more information.

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HAMILTON ON WINE

ON THE RIGHT TRACK AFTER RAIL MAYHEM Simon Hamilton is Managing Director of the regeneration arm of Tata Steel, UK Steel Enterprise and is based in Sheffield. Tasting these wines was just the tonic he needed after the commute from hell

The train journey from London back to Sheffield is usually a good opportunity to catch up on emails and relax a little before the drive home, but on the day set aside to sample the first of these two wines, the trip was far from serene. After an engine fire in a tunnel, followed by our train hitting some falling masonry from a bridge resulting in it being withdrawn from service in Derby, topped off with a very vocal fellow passenger complaining throughout the entire journey, I knew that I needed help with the wine tasting, as anything was going to taste great after all that! My trusty better half gladly stepped up to the “task” and we settled on the Mont Rocher as the first wine to try. The label suggested it accompany charcuterie or a simple daube of beef, but with neither to hand, we agreed on homemade chilli burgers instead. Our 11 year old son was able to join in the testing of the wine’s nose and colour, and he came up with Ribena for both. Certainly, we both detected great fruitiness and spice – almost fortified, my partner felt. A lovely dark red colour too. We love our big red wines, so this boded well. And with just the two of us doing the more fun part, the taste didn’t disappoint – smooth, rich and full bodied, with a delicious after taste. Wonderful. I’m not sure whether it was the wine or the ensuing Nerf gun battle with my son, but I slept like a log that night. Two days later, with the train journey a distant memory, we had guests for the weekend, and a good excuse to open the

second bottle, the Picpoul de Pinet, from the Coteaux du Langedoc appellation. Our tasting session was accompanied by lovely (if I do say so myself) rosemary and swordfish skewers. With five of us sharing the bottle, there were no chances for second glasses, so minds were focused and taste-buds sharpened. The young wine was a lovely light golden colour and between us, we detected citrus fruits, peach, gooseberry and elderflower on the nose. Whilst a lot of this fruit translated into the taste as well, several commented that it smelled fruitier than it tasted. The taste was clean, and crisp with quite a bit of acidity to it – the Pinot Grigio lovers amongst us thought it was great. In fact no one was disappointed and one even ventured it could be on his list of favourites. It was a great foil to the fish and left us wanting more. Both wines hit the mark and would be a delight to sample again before too long. As for the train, I’m not sure the same could be said, so maybe I shall stick to the car for the time being. n The red: “Carignan Vielles Vignes, 2013, Mont Rocher, Languedoc, France” £8.99 (Inc. VAT). The white: “Picpoul de Pinet, 2013, Chateau la Mirande, Languedoc, France” £8.99 (Inc. VAT). Wine was supplied by Firth & Co Wine Merchant. www.firthandco.com 01677 451 952. Newton Bank, Newton-leWillows, Bedale, North Yorkshire, DL8 1TE

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MOTORING

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CLOCKING UP MILES WITH MILES

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MOTORING

Jazz lover Noel Dennis, Associate Dean of York St John University Business School, turns up the volume of a Miles Davis album and loses himself on Yorkshireâ&#x20AC;&#x2122;s country roads in the exhilarating Maserati Ghibli >>

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The Ghibli handled like a sports car, hugging the corners, gripping the road...an inspirational driving experience

BUSINESS QUARTER | SPRING 15

The Maserati brand epitomises elegance, luxury and performance. So I was thrilled to be given the opportunity to get behind the wheel of the latest addition to the Maserati portfolio – the Ghibli. The introduction of the Ghibli is a smart move by Maserati in my view, and opens up a whole new segment for them. With a starting price of just £49,160 the Ghibli is very reasonably priced (for a luxury car) – yet still has all the characteristics and quality you would expect from a Maserati. When I collected the car from JCT600 Brooklands in Leeds, I was struck by the aesthetic beauty of the showroom (the sparkling Maseratis and Ferraris were in abundance) and also by the professionalism of the staff. The car I had the pleasure of driving was a diesel model, finished in Grigio Metallo, with a variety of extra features and packs. I was ushered to the Ghibli and was immediately impressed by its beautiful design.

It is such an elegant and stylish car, with classic Maserati looks – such as the long bonnet, the classic grille, and, of course, that striking Maserati logo. This is a car that oozes style and attracts looks of envy from other drivers on the road. Trust me, it turned some heads! The interior of the car is incredibly luxurious, with beautiful hand-stitched leather seats that hug you into position and create a comfortable driving position. I was very impressed by the Ghibli’s elegant dashboard and sophisticated touch screen technology. The sound system was also very impressive (as a jazz musician, something that I really look for in a car) and so I managed to listen to some of my favourite Miles Davis albums whilst putting the Ghibli through its paces. There were copious things I liked about the car, but I was particularly struck by the mellifluous sound of the Ghibli’s engine. You would not know that the Ghibli Diesel is a >>

G H I B L I

THE HEAD SAYS YES. THE HEART SAYS DEFINITELY, YES.

MASERATI GHIBLI. THE ABSOLUTE OPPOSITE OF ORDINARY. STARTING FROM £49,160

THE NEW MASERATI GHIBLI IS POWERED BY A RANGE OF ADVANCED 3.0 LITRE V6 ENGINES WITH 8-SPEED ZF AUTOMATIC TRANSMISSION, INCLUDING, FOR THE FIRST TIME, A V6 TURBODIESEL ENGINE. Official fuel consumption figures for Maserati Ghibli range in mpg (l/100km): Urban 18.0 (15.7) – 37.2 (7.6), Extra Urban 38.7 (7.3) – 56.5 (5.0), Combined 27.2 (10.4) – 47.9 (5.9). CO2 emissions 242 – 158 g/km. Fuel consumption and CO2 figures are based on standard EU tests for comparative purposes and may not reflect real driving results. Model shown is a Maserati Ghibli S at £70,598 On The Road including optional pearlescent paint at £1,776, 21” Titano design alloy wheels at £3,670 and Red brake callipers at £432. Calls will be recorded for training purposes.

JCT600 BROOKLANDS RING ROAD, LOWER WORTLEY LEEDS LS12 6AA Phone: 0844 856 3215 www.jct600.co.uk/brand/maserati/

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MOTORING

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diesel, thanks to the talented engineers at Maserati, who have ‘orchestrated’ the exhaust to make the sounds you would expect of a high performance sports car. Pop the car into sport mode and the exhaust roars! The Ghibli is an exciting drive, with the smooth 8-speed automatic gearbox doing the work, allowing the driver to sit back, relax and enjoy the ride. In eco-mode the ride is very smooth, almost too smooth, but change to sport mode and put your foot down and the car takes off, pinning you to your seat with the orchestral sounds from the exhaust moving from Ravel to Schoenberg! I put the Ghibli into sport mode and set about challenging some of North Yorkshire’s country roads (listening to Miles Davis’s Bitches Brew) and was really impressed by its performance, with the powerful 3.0-litre V6 engine achieving 0-60 in just 6.3 seconds. I obviously drove responsibly and within the speed limits, but I was acutely aware that the Ghibli had a lot more to give and, had I been on an open track, I have no doubt it would have reached its top speed of 155 mph with absolutely no trouble at all. The Ghibli handled like a sports car, hugging the corners, gripping the road and just generally providing an inspirational driving experience – exactly what you would expect from a Maserati! After my fun on the country roads, I switched the car back into eco-mode, changed the soundtrack to Miles Davis’s Kind of Blue and headed along the motorway back to Leeds. I was impressed by the smooth ride and how good the fuel consumption was on this leg of the journey. I was averaging around 43 mpg (very good for a car with a 3.0-litre V6 engine), which demonstrates that this car will not cost a small fortune to run. And so I arrived back at the dealership and my adventure with the Ghibli had come to an end. I had one last listen to the orchestral exhaust; switched off the engine and headed back to York St John Business School - buzzing about this phenomenal car! n Noel drove the Maserati Ghibli, prices start from £49,160. Supplied by JCT600 Brooklands, Ring Road, Lower Wortley, Leeds, LS12 6AA. Thanks to Tomlinson Contractors for the location.

BUSINESS QUARTER | SPRING 15

IP 10 0

THE UK’S INTELLECTUAL PROPERTY LEAGUE

THE IP100 - RECOGNISING THE VALUE OF IP IN YOUR BUSINESS BQ Magazine is delighted to announce the launch of the IP100, the UK’s Intellectual Property League Table compiled in association with Metis Partners, an award-winning boutique IP solutions firm. Published initially in relation to Scottish companies prior to our UK wide launch, the IP100 will profile and rank innovative firms within Scotland’s private sector by intellectual property (‘IP’) value, identifying those businesses which have significantly invested in their IP in the form of IP management policies, R&D activities and IP commercialisation. Despite IP assets underpinning the competitive advantage of most businesses, IP remains one of the least recognised assets within a business as it is rarely captured on a company’s balance sheet. Yet IP assets are growing in importance. In 2011 the UK market sector invested £126.8bn in knowledge assets, compared to £88bn in tangible assets. Since the recession of 2008-09, intangible investment has not only recovered but grown.1

to take security over these valuable assets under different corporate structures. The IP100 will be an annual ranking of companies by IP value based on a rating of the IP asset strength of the business and the company’s track record in exploiting their IP. The process involves obtaining IP-specific data linked to main IP asset classes including brands, software, patents, trade secrets and critical databases. An IP scorecard will then be applied to calculate an IP score for each business and the IP100 team will rank the Company based on the results of the scoring.

So whether using IP to boost the exit valuation of a business, improve access to new markets, protect existing market share or creating new barriers to entry, IP now plays a central role in traditional business activities. IP also has the ability to play an important role in transforming funding options available to businesses, as IP assets can be used to raise finance, realise value on the balance sheet or restructure debt. Furthermore, finance providers are increasingly recognising the opportunity

The League Table will provide an insight into the potential value of IP in the companies which have entered the IP100, and will publish in Scotland in the autumn edition of BQ Magazine in September 2015 as part of a special IP report.

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

The IP100 is jointly managed by Metis Partners, an award-winning, boutique IP solutions firm operating from the UK and USA and BQ Magazine.

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

ENTER THE IP100 NOW

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

FASHION Some people are scared by change – we’re all human. But we’re ready to exchange ideas, even if that means the process takes longer than I’d like

AMERICAN DREAM TEAM Its designers created clothing that defined a nation, but now the Italian CEO of US company Brooks Brothers is pushing for change. Josh Sims speaks to Luca Gastaldi BUSINESS QUARTER | SPRING 15

Luca Gastaldi is the 47-year-old Italian CEO of the Italian-owned Brooks Brothers, almost 200 years old and about as quintessentially American a clothier as one could find. It was Brooks Brothers that invented the buttondown collared shirt, that pioneered the stripy, so-called ‘rep’ tie, that shaped preppy style and which, by introducing the boxy, wearable sack suit, effectively defined the template for business dress for much of the last century. Abraham Lincoln wore Brooks Brothers – he was even assassinated wearing it – as did Kennedy, the Vanderbilts, Morgans and Astors, and Hollywood greats from Valentino to Clark Gable, Cary Grant and Fred Astaire. “But if you want a real contradiction, it’s not the fact that an Italian is running such an American company,” adds Gastaldi – who admits to having discovered the company through close study of the dandy attire of another Italian, Fiat supremo Gianni Agnelli, “it’s that it was only seven years ago that Brooks Brothers even had a store outside of the US. Brooks Brothers has deep American roots – and that American nature is a pillar. But now we have to build on that. We all travel more now and trends move faster. The trick is not to lose the American wardrobe and the styles we pioneered, while staying tuned to changing modes of dress.” Gastaldi, who came to Brooks Brothers after 20 years in senior positions with Italian luxury goods company Loro Piana, concedes that is a tricky path to walk. On the one hand has

FASHION

been Brooks Brothers’ more progressive moves over recent years: the launch of Black Fleece, a more directional premium capsule collection designed by Thom Browne, Red Fleece, a more trend and cost-conscious collection, and now the appointment of designer Zac Posen to oversee womenswear as creative director – the first time the company has brought in an external designer, established in his own right, to oversee a whole segment of its business, from clothing to packaging and marketing. It is a statement of the company’s intent to fulfill its “huge potential” in womenswear.

Then there is the sizable international store expansion programme, which will see over 50 new Brooks Brothers shops (some whollyowned, some in partnership) open over the coming year, including 12 in the Middle East, the same across Scandinavia, 10 in eastern Europe and Russia, and up to 15 across India and Australia. And yet, on the other hand, there is Brooks Brothers’ deeply-embedded culture of clothing a conservative American customer that remains the company’s bedrock – this is the company, after all, that still provides those

Ivy League uniforms to the US’ collegiate blue bloods. For every Brooks Brothers aficionado – Gastaldi speaks of devoted customers who know more about the company’s history than those working for it do – there is a fashionisto more inclined to dismiss it as staid and, well, too American: ”To excite attention by anything at all remarkable in the way of colour of texture is considered both vulgar and ridiculous,” as the company stated in an ad back in the 1920s. “Modernising while respecting heritage is easier to say than to do,” says Gastaldi. >>

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FASHION

“And sometimes there’s resistance within the company itself,” Gastaldi adds. “Some people are scared by change – we’re all human. But we’re ready to exchange ideas, even if that means the process takes longer than I’d like. I like to challenge that American part of the company that says there’s still demand for that very American cut of suit – very full, wide-shouldered – by introducing more tailored styles too, which are selling well. Even very traditional customers like the idea of bringing something fresh to their wardrobe. And we have to remember that talking about, for example, how Agnelli wore

Brooks Brothers shirts, is a totally meaningless conversation for a lot of people.” That is to say that, incredibly, there are those men – it’s mostly men – whose interest in clothes goes only as far as keeping warm and within the law and not looking silly. Gastaldi is not one of those men. He can wax lyrical on the unique extent of Brooks Brothers’ contribution to the menswear canon – on how it’s “a good thing to have the originals in so many menswear items, the many copies of which just make the makers of the originals stronger” – but also on the hazards of relying on them. “There’s a danger when a [clothing]

It’s a good thing to have the originals in so many menswear items, the many copies of which just make the makers of the originals stronger. But there’s a danger when a company culture is too tied to those classics, when you can’t see how dress is changing BUSINESS QUARTER | SPRING 15

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BUSINESS QUARTER | SPRING 15

EQUIPMENT

Y T I L A U Q REMAINS TIMELES S Innovation and sophisticated design counts for more than passing fads when it comes to creating timepeices, as Josh Sims discovers

Talk to the elite end of the watch business, and the question of trends is increasingly met with a blank stare. “I have no idea what the trends are. I’m not sure there are any,” says Peter Harrison, the CEO of Richard Mille, one of the more progressive independent brands. “We just do what we like.” Or, as Michael Parmigiani, the watchmaker behind Parmigiani, puts it, “the industry just doesn’t focus on a few big styles anymore – now it’s a question of ever small trends being added to what’s already available, so each watch becomes more like an art work in its own right. It’s more individualistic, because these days everyone wants to be different.” Indeed, if SIHH – the Salon International des Haute Horlogerie, held in Geneva each January – is anything to go by, the mass market may continue to thrive on consumers identifying with status brands and their iconic models, but at the very top – where prices in six figures are not rare – it is the piece itself that matters; a piece, indeed, which may have taken many years to create. As IWC’s creative director Christian Knoop stresses, ever-longer development times mitigate against trends in a watch industry making ever more sophisticated watches – “this is not the fashion industry”. This is not to say that the new watches for 2015 don’t reveal certain loose patterns. There is a playfulness with shapes, for example, with watchmakers the likes of Vacheron Constantin (celebrating its 260th birthday this year), Chaumet and Cartier setting round dials in squared off cushion cases. A push towards more unusual materials is also on the rise, with, according to Knoop, many more unexplored materials set to undergo investigation for their use in watchmaking over the next couple of years, especially those that improve durability and reliability. In the meantime, most are pursued for their visual and textural appeal. Audemars Piguet has used forged carbon in its new designs, Parmigiani meteorite and Piaget onyx, in a re-edition of Andy Warhol’s Black Tie watch. Ralph Lauren – perhaps, thanks to its fashion foundation, the most willing to push forward on the use of unexpected materials solely for their aesthetic appeal – has introduced models featuring shot-blasted steel, for a distressed effect, and dials ringed with burl wood. >>

BUSINESS QUARTER | SPRING 15

EQUIPMENT

A decade ago TechnoMarine caused outrage for much of this conservative industry by teaming precious jewels with a plastic case – but now the idea returns thanks to Roger Dubuis, which has developed a method for setting diamonds in rubber. Black and off-white may remain the dominant colours for dials, but blue continues its assent and grey is on the up – even if subtly: A. Lange & Sohne’s Datograph Perpetual brings the colour of storm clouds right across its face, but the company’s first minute repeater with a digital (as opposed to analogue) display – in development since 2010 and yours for €440,000 – achieves a similar shade by using blackened German silver. If you’ve spent that much on a mechanical movement of such exquisiteness you might well want to see it, and show it off, so skeletonised movements, stripped back and fully visible front and rear of the watch, are more widespread too. Cartier introduces one for its classic Tank,

BUSINESS QUARTER | SPRING 15

and for its 60s Crash model, Ralph Lauren has created its first and Roger Dubuis has introduced new star-effect and creeping ivy skeleton architectures for its models. But perhaps the most striking skeletons are from Parmigiani. Its Tonda 1950 Squelette – with clear glass – is also available as a model for women. A skeleton for women may be unusual enough as the industry is only recently

coming round to the idea that women are interested in the mechanism that drives their watch, not just the superficial aesthetic, ideally covered in gemstones. But this one comes with a semi-opaque milky glass which, when lit from behind, shows the movement’s parts with all the evocative blurred edges of shadow play. Indeed, if an overarching trend out of SIHH can be discerned, it might be more one in business culture than in the popularity of certain approaches to the look and feel of the new year’s clutch of timepieces – and that would be the waking up to the potentiality in the growing demand among women for serious craft beneath the pretty exterior of their watches. “The fact is that women’s attitude to watches is changing,” says Piaget’s marketing and creation director Frank Touzeau. Piaget has introduced a refinement of a bracelet first devised in the 1960s, and comprising some 300 tiny, hand-assembled links. “Compare the industry today with 15 years ago and there’s a distinct change. Then it was men who wanted a strongly recognisable watch with real technical value, and now women want that too. Recognising that is a process that you can see starting now.” Certainly, as Peter Harrison and Michael Parmigiani hint at, some of the most impressive watches launched for this year are simply going their own way in style and innovation, and, what is more, doing it for women. Cartier, for example, has created a new setting for diamonds that, in effect, mounts them on tiny springs with just the right amount of vibration

EQUIPMENT

to give the stones movement and so added shimmer. Tellingly, Richard Mille, meanwhile, offers its first flying tourbillon, and offers it to women: the tourbillon cage is set amid a series of petals which open and close every five minutes, allowing the tourbillon to rise through this mechanical blossoming. It’s a marvellous little moment to behold. But for how long will such extreme craft be appreciated? Montblanc has produced arguably the single most culturally relevant watch of 2015, and the interest lies less in the timepiece as its strap. Its Timewalker Urban Speed has what the company is calling an E-strap. This comprises a small touch screen through which the wearer can manage mobile phone calls and texts and monitor their activity. It is highend watchmaking’s first riposte to Apple’s recently-launched watch, tapping as it does into the younger generation’s obsession with connectivity as well as its general disinterest in wearing watches that simply tell the time, in however artful a fashion. The E-strap is, perhaps, a sign of what’s to come. n

15 years ago it was men who wanted a strongly recognisable watch – now women do too

BUSINESS QUARTER | SPRING 15

ENTREPRENEUR

BUSINESS QUARTER | SPRING 15

SPRING 15

A two billion dollar deal between technology giants has presented one Yorkshire entrepreneur with what could be his most lucrative opportunity yet. Jim Hart was a distant but eager observer when US firm IBM recently agreed to offload one of its many divisions to Chinese empire Lenovo. The acquisition was longexpected and a fairly commonplace type of transaction among the world’s software-driven superpowers. But for Hart’s Yorkshire-based Europlus Direct, it could be transformative. Europlus sells Lenovo and IBM maintenance services worldwide. A network of global offices supports growth and annual turnover for 2014 was £7.1m. For all its international successes however, business in the US has been limited to date. That could be set to change following Lenovo’s snapping up of IBM’s US$2.1bn server business x86. The deal gives the Chinese firm a strong foothold in the enterprise market and, according to Hart, will enable his own firm to better target the US market. Lenovo has its sights set on challenging the world’s two biggest PC makers, Dell and HP, and an assault on the US market is reportedly a major part of that. “We’ve tried to target the US through IBM for several years but, partly for legal reasons, it hasn’t quite panned out,” says Hart. “But Lenovo will open things up for us. We think working with Lenovo in the US will be a massive change for us and double the size of the business in the next two or three years.” Currently Europlus has a registered office in Las Vegas but few, if any, staff there. This is likely to change on the back of increased work through Lenovo’s products and services. “Initially we’re going to run the US operation from the UK, with people working from 2pm - 10pm. We will then transfer it over to our Sydney office, which will work on customers from there. We’ve invested in new CRM and IT systems and are doing lots of training but

ENTREPRENEUR

BEATING HART OF A GROWING BUSINESS Global adventurer Jim Hart has built a worldwide reputation in business from his Yorkshire base over the last decade. And, as Andrew Mernin finds out, the next leg of his journey may well be his most exciting yet eventually we will have staff over there and possibly an office on the east coast.” Hart expects Europlus to double in size into a £14m turnover business within two to three years, with staff numbers also doubling to around 70. His other business, One Global, is also on a solid growth trajectory. The translation and global recruitment firm, based in the same building as Europlus, is currently turning over around £650,000 annually. It is expected to surge past £1m inside 18 months, with growth coming from various markets around the world. Through a small team and a network of

over 2,000 freelance translators, the business trades with clients across the globe, translating into hundreds of languages. Perhaps surprisingly, given rising tensions, sanctions and talk of a new Cold War, Russia is proving a particularly fertile territory for the firm. Hart says: “There are a lot of translation requirements going into Russia and Russian is up there with Chinese as our top language. We’re getting a lot of engineering and manufacturing firms from the UK going into Russia. We also do a lot of e-learning translation into Russian.” >>

BUSINESS QUARTER | SPRING 15

ENTREPRENEUR

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When you use something like Google Translate, it’s fine if you just need the gist of something. But if you are creating an engineering manual for an aeroplane, for example, you have to be extremely accurate Digital marketing is a growing specialism for the company, with Hart explaining: “Nowadays it’s not enough just to translate someone’s website. You have to help the site be found – and we can offer advice on that.” For all the new capabilities being developed via web technologies, however, Hart insists there will always be demand for human rather than automated translation services. “When you use something like Google Translate, it’s fine if you just need the gist of something. But if you are creating an engineering manual for an aeroplane, for example, you have to be extremely accurate.

BUSINESS QUARTER | SPRING 15

When you’re working with brands, you also have to ensure they are portrayed in exactly the right way. Machine translation has its place but it would have to be incredibly sophisticated to replace what we do.” Across his two businesses, Hart now has offices in Sydney, Las Vegas, as well as Yorkshire. Last year he also offloaded his African business, which had bases in Senegal, South Africa, Mozambique and Namibia, with a head office in Mauritius. With two flourishing businesses under his belt, Hart has achieved significant success in a relatively short space of time – having not

been bitten by the entrepreneurial bug until he was 39. He was inspired to go it alone by his family. Taking advice from his two entrepreneurial brothers-in-law and his self-employed dad, he opted to launch his own venture instead of finding a new job during a period of unemployment. That was in 2004, when Europlus Direct emerged with the backing of IBM, specialising in selling the tech giant’s maintenance services contracts. Alongside family guidance, international experience also aided his success. Growing

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ENTREPRENEUR

We’re basically developing new innovations that will differentiate us competitively

up, he excelled at languages and his first job as a graduate saw him flogging advertising to the Germans. It preceded two years of globetrotting, taking in stints in the retail sector ‘Down Under’ and as a teacher in Chile. With his homeland beckoning, he eventually took up a job in Skipton using French and German to sell software. The company, Connections Plus, later enlisted Hart to expand the sale of HP’s maintenance services across Europe. He took the plunge as an entrepreneur around a decade later. “At the time there were lots of resellers of hardware, but hardly anyone selling services. There was a real gap in the market,” he says. “IBM spotted that gap too and needed a company like mine to step in and focus on services. “We started out working on IBM’s server range and also selling contract renewals on the ThinkPad computer range [later sold by IBM to Lenovo]. But most of our sales were related to the x86 servers business. “From 2005 we had launched the model in France and basically rolled it out across the whole of Eastern and Western Europe.” In 2008 came the opportunity to break into Africa. Hart admits this was a tough market to crack and was pleased to exit it amicably and profitably last year when he sold the business. Meanwhile, One Global was formed out of a

true moment of entrepreneurial opportunityspotting by Hart. “We had to hire quite a few language speakers for Europlus and I wasn’t really happy with the recruitment agencies I was using. So I decided to employ someone in-house just to recruit language speakers. Eventually that just expanded into offering the service to other companies needing languages recruitment. The translation just developed alongside that.” The business, which operates with all translators based in their native countries, saw growth of around 35% in its recruitment arm last year and 25% in translation. And investment in technology is aiding continual growth this year. Hart says: “We have a lot of customers now that send big internal communications

round, so we have created a system that enables firms to monitor the level of engagement from employees in certain content. “We are also working on technology that makes it easier to translate websites in real time. We’re basically developing new innovations that will differentiate us competitively.” With new opportunities in the US and, increasingly, Asia, opening up, Hart’s two businesses look well placed to continue their global expansion in the back end of 2015. And the Yorkshire entrepreneur’s international adventure shows no sign of slowing down, for all the uncertainty looming over markets here and beyond these shores. n

BUSINESS QUARTER | SPRING 15

INTERVIEW

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MAKING FAT PROFITS FROM LEAN CUISINE

The man credited with reinventing the cereal Special K is bringing a special something to vegetarian staple Quorn. Andrew Mernin reports When Quorn’s existence was jeopardised not so long ago, it was the carnivores that marauded to its rescue. The meat-eaters were where the vegetarian staple found unlikely salvation and, thanks to their intervention, it is now in the best shape of its life. From stagnation five years ago, the £200m-a-year firm has just recorded a record period of global sales and it is on track in the longer term to become a “billion dollar” business. So says the clever executive behind Quorn’s resurgence, Kevin Brennan, who believes carnivores now make up three quarters of Quorn’s global customers. The ex-Kellogg’s man, who is credited with turning a small cereal brand called Special K into a market leader worth billions of dollars, joined Quorn in 2010. At the time all was not well at the food firm’s HQ in Stokesley, North Yorkshire. “It had gone into a very sharp decline and had been pigeonholed in the UK as a veggie food,” he says. “It was no longer seen as relevant and there was also a lack of investment in the brand.” Brennan joined Quorn six months before Premier Foods sold it to private equity group Exponent, and his primary remit at the time was to stop the rot. “In terms of exports, the best way to describe it would be a very old-fashioned bunch of people working with small distributors selling food that was really made for the UK market, rather than brand building. “All the things that you would expect to see in a modern factory, like continuous improvement plans and a performance metric culture, were not there. From a people point of view, there was absolutely no ambition. There were some great people in the background, but you couldn’t speak to anyone about what we were going to make next week, never mind next quarter. Culturally it was stuck in the past and

BUSINESS QUARTER | SPRING 15

in every aspect it needed turning around.” Despite the bleak picture he paints, he saw more potential in Quorn than he had in the cereal he nurtured into a global super-brand. “I knew if we could turn Special K into a billion dollar business, we could do it with Quorn,” he says. “There were all these things that we weren’t doing well and I knew if we fixed them it could really fly. Special K was great at riding a health trend but if you look at its uniqueness, it wasn’t that much healthier than some other products. With Quorn we had something that, compared to meat, is transformational in its health credentials, whether that’s in relation to fat, calories or cholesterol.” Quorn’s turnaround has been driven by three selling points; it’s healthy, a sustainable source of protein and it’s not meat – but new labelling makes it clear it’s not just for vegetarians. It is made through the fermentation of a type of fungus to create ‘mycoprotein’, which is naturally low in saturated fat and high in fibre. With obesity rates in the UK doubling in the

last 20 years and 64% of adults in Britain now classed as overweight or obese, products like Quorn have their place improving the nation’s waistline. Its sustainable status is also accelerating sales. So damaging is the impact of farming livestock on the environment that green-conscious venture capitalists like Bill Gates and the wealthy co-founders of Twitter have been pouring millions of dollars into meat free alternatives. An estimated 70% of the world’s agricultural land is used for livestock. But this could increase as the population grows by an expected 30% to over nine billion by 2050. Globally, the UN’s Food and Agriculture Organisation believes livestock is responsible for 14.5% of greenhouse gas emissions. Quorn’s popularity – especially in the UK – is also aided by growing mistrust of meat supply chains in the wake of the horsemeat scandal. A YouGov poll last year showed 47% of UK consumers thought there was still a risk of contamination issues in the meat industry. Such trends play into Quorn’s hands. In 2014 it

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reported record sales of £150.3m, up 6.7% on 2013 and significantly higher than the £110m in 2011. Last year also saw the brand add 1.86 million new customers. Its latest results show a £14.6m – or 8% – growth in global sales in January alone, representing its strongest month on record. Sales to the US in the period grew 64% on the previous year. This was at a time when most food manufacturers were enduring flat sales. In the UK, sales rose by 6%, or £10.9m, and growth was registered in all of the 15 countries it supplies directly. The firm is currently investing £30m in doubling production capacity at its facility in Billingham, Teesside, creating 400 jobs. While the wider market conditions have propelled Quorn to a strong position, fundamental changes to the business have been instrumental in its success. Perhaps the most important have been efforts to move the perception of Quorn away from its old veggie image. Brennan says: “We started to communicate more about food, so our ads became about making a chilli or a spaghetti bolognese, rather than reeling off hundreds of health benefits, which could make the product sound a bit weird. “That made it relevant to people and less daunting in terms of changing their habits. That has evolved now with people like Mo Farah in our campaigns as a symbol of a healthy lifestyle.” Improvements were also made to Quorn’s meal product recipes. “If you’re trying to sell health benefits, the products still have to taste great. The days of taking cod liver oil everyday because it’s good for you are over because it tastes horrible. We are making food better and better because it brings people in and keeps them with us.” Exports account for 19% of sales, with the company selling into 15 markets directly and seven through third parties. As well as extensive coverage across Europe, territories as far afield as Australia, South Africa, New Zealand and Thailand have opened up. Brennan had to dismantle and rebuild Quorn’s export networks when he joined the firm – and the changes are now bearing fruit. “We had to go back to basics and study the whole world and so we got as much data as we could on 80 countries. “We took all our markets, existing and new, and evaluated them in terms of potential and then prioritised where to target.”

I said when I started here Quorn could become a billion dollar business and I believe it can While some markets have been accessed via partners – such as frozen food giant Findus in the Nordic region – the US needed an office on the ground. “The US is both the biggest prize and the most challenging market,” says Brennan. “The trade is just so different there than anywhere else. There might 150 different [supermarket] customers there and some of them might only operate in one city. It’s exciting but challenging.” Regardless of the challenges, Quorn’s US figures are pretty healthy. The group started 2014 with products in 300 Walmart stores and ended the year in 2,300 locations. At the current US growth rate of 25 to 30%, the market is expected to grow to around £30m by 2019. Further overseas opportunities are also looming, particularly in the Indian market. The company’s research and development arm – in which around £3m per year is invested – has been working on new gluten-free and vegan-friendly products. “Demand for gluten-free products is a trend throughout the world,” he says. “Similarly the vegan market could be huge. We do use egg, which means currently vegans can’t use our products. This means a whole group of vegetarians that will never eat Quorn.

INTERVIEW

“It was always quite difficult to deliver the right texture [without egg], but we have just found a way through that and we plan to launch something globally this year. “There is a particularly big opportunity in India, where a third of the population doesn’t eat eggs for religious reasons. “We’re not in India currently but we have done a lot of work on the market and this new product could be critical to our success there.” In the UK Quorn has a 58% share of the meat-free market. Its food service arm, which lists the NHS, JD Wetherspoons and Premier Inn as customers, makes up 10% of trade. At the last official check, it was the 35th biggest selling food brand in the UK making it bigger than Heinz Tomato Ketchup, Doritos and Innocent. “We should be able to keep growing by 10% every year in the UK for many years to come as there is definitely momentum building. For the first time ever carnivores make up 75% of our customer base and there is a massive shift. The average vegetarian is eating Quorn in three meals a week so there are many more meal occasions to go after. “I said when I started here that Quorn could become a billion dollar business and I firmly believe that it can.” n

How the special one’s CV stacks up Before joining Quorn as chief executive, Kevin Brennan was general manager (snacks) and marketing director for Kellogg UK, where he completed six years in the post. During this time he was instrumental in building Special K into a market dominating, globally successful brand. Prior to that he served as Kellogg’s marketing director Australia and general manager New Zealand, where he was responsible for cereal and healthy snacks marketing in Australia and overseeing growth in New Zealand. Before that, he was European marketing director for Kellogg, where he reported to the European CEO. He holds an MBA with distinction from the International Management Centre Buckingham and a BA Hon from the University of York.

BUSINESS QUARTER | SPRING 15

BIT OF A CHAT

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with Frank Tock >> Making a Brad impression Online market places are awash with weird mementoes of Hollywood stars, like locks of hair or items worn or written on at some film shoot or premiere. Perhaps Charles Fawcett of North Yorkshire’s Twisted Defender considered ebay when he had one of his vehicles returned to him from a test drive by one of the world’s most famous movie stars. Smack bang in the middle of the dashboard, was a giant lump of chewing gum. That really is the Pitts!

>> Food for intense thought Cucumber sandwiches almost became projectiles during deliberations over this year’s BQ Emerging Entrepreneur Award. OK, perhaps that is an exaggeration – our awards panel members weren’t quite that hostile to each other. But things were certainly heated. The reason? The sheer calibre of entries, which made picking a winner nigh on impossible. We ultimately plumbed for Darren Padgett of Team Activ (see p44), who we think was a worthy winner. But all entries, which were as wide ranging as coffee shops and robotics to a toothbrush specially designed for kids, deserve a pat on the back. So well done to all and good luck to Darren in the national final later this year.

BUSINESS QUARTER | SPRING 15

>> Waxing lyrical about the region’s ‘Superfast’ programme A project aimed at helping North Yorkshire businesses boost their online presence completed an unlikely hat-trick recently. Superfast North Yorkshire Business Support Project has helped over 1,500 companies take advantage of funding and support. And among them is a butcher, a baker – and the obligatory candlestick maker. Project manager Leanne Elliott said: “Because North Yorkshire has such an eclectic mix of businesses we never know from one week to the next what type of business we’ll be helping.” Yes candlestick making does still go on in the UK and, down at Moorwax Candles in Hutton-le-Hole, is doing a roaring trade. Incidentally, if you need assistance boosting your online presence in North Yorkshire, you have until June to access the Superfast programme. Visit www.sfny.co.uk for more details.

>> That’s a sweet deal Entrepreneurialism is alive and kicking in the third sector, if Autism Plus is anything to go by. An unlikely deal struck up between the group and generous monks in North Yorkshire will see a new chocolate manufacturing enterprise launched. The charity, which supports people with autism, received a generous donation of a range of quality chocolate making equipment from Ampleforth Abbey. A customer base has already been established, largely in York, and a centre to

start producing the chocolate is now being finalised. Meanwhile, another entrepreneurial endeavour currently being rolled out by Autism Plus is a classic car hire business that will allow tourists to explore James Herriot country in style. This, and other ventures including a horticulture social enterprise, will be staffed and led by people with autism and learning disabilities. As chief exec Philip Bartey says in this issue’s live debate (p46), such individuals are a resource untapped by the region’s businesses. Why not change that? Visit www.autismplus.org for more on the organisation and how to partner up with it.

MADE

The Entrepreneur Festival: Sheffield

21 - 22 October 2015

madefestival.com

Join me and a host of other speakers at MADE 2015

Kevin Byrne - Founder of Checkatrade.com

CAN YOU AFFORD TO MISS IT?

For more information: www.madefestival.com @MADEfestival #MADE2015

facebook.com/MADEFestival

EVENTS

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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

APRIL 1 Cloud Breakfast, using IT to drive value in your business, seminar hosted by Sheffield Chamber in partnership with Auxilion, SCC, Albion House, Savile Street, Sheffield. See www.scci.org.uk for more details. 1 Business Lunch, York, hosted by Bradford Chamber of Commerce, 12 noon, Merchant Taylors Hall, Aldwark, York, contact events@bradfordchamber.co.uk or call 01274 206660

20 Keighley Business Network, 8am, Keighley Cougars, Cougar Park, Royd Ings Avenue, Keighley. Contact events@bradfordchamber.co.uk or 01274 206660 for details. 26 Pure Networking – York, 7.30am, Grays Court, Chapter House Street, York. Contact events@bradfordchamber.co.uk or call 01274 206660 26 Website Content Masterclass hosted by Superfast North Yorkshire, 9.30am – 4.30pm, National Railway Museum, York. Visit www.sfny.co.uk for more details.

2 Pure Networking, breakfast networking event, 7.30am, Leeds United Football Club (Bremner Suite), Elland Road, Leeds. Contact events@bradfordchamber.co.uk or call 01274 206660

30 The Yorkshire Work & Family Fair, 9am-5pm, The HUBS, Sheffield Hallam University. Register to attend at www.yorkshireworkandfamily.co.uk or call 07718252360 / 07510118716

7 City Region Business Breakfast, a joint initiative between Barnsley & Rotherham Chamber of Commerce, Sheffield Chamber of Commerce & Doncaster Chamber of Commerce. Tankersley Manor, Church Lane, Barnsley. See www.scci.org.uk for more details.

JUNE

7 The Sheffield Symposium – a gathering hosted by networking group The Yorkshire Mafia in its first ever symposium in Sheffield. Piccolino Sheffield, 4 Millennium Square, Sheffield, S1 2JJ. Visit www.yorkshiremafia.com for more information and to register your interest.

2 City Region Business Breakfast, a joint initiative between Barnsley & Rotherham Chamber of Commerce, Sheffield Chamber of Commerce & Doncaster Chamber of Commerce. Tankersley Manor, Church Lane, Barnsley. See www.scci.org.uk 2 Hull & Humber Chamber of Commerce Members’ Speed Networking and Lunch, KC Stadium, Hull. Visit www.hull-humber-chamber.co.uk for more details.

14 Pure Networking, breakfast networking event, 7.30am, St Peter’s House, 1 Forster Court, Bradford. Contact events@bradfordchamber.co.uk or call 01274 206660

2 Chamber Expo 2015, the largest annual business event in the Humber region and part of Humber Business Week 2015. The Airco Arena, Walton Street, Hull. Visit www.hull-humber-chamber.co.uk for full details.

16 Super Connected Yorkshire networking event hosted by the West and North Yorkshire Chamber and the Mid Yorkshire Chamber of Commerce in partnership with Superfast West Yorkshire. 8am, The Cedar Suite, Cedar Court, Denby Dale Road, Calder Grove, Wakefield. Contact events@bradfordchamber.co.uk or call 01274 206660

4 Pure Networking – Leeds, 7.30am, Leeds United Football Club (Bremner Suite), Elland Road, Leeds. Contact events@bradfordchamber.co.uk or call 01274 206660

22 The Big Yorkshire Mafia Drinks Evening, Chaophraya Thai Restaurant, 20A, Blayds Court, Swinegate, Leeds. Visit www.yorkshiremafia.com for more information and to register your interest.

12 Business Lunch – Malton, 12 noon, Talbot House, Yorkersgate, Malton. Contact events@bradfordchamber.co.uk or call 01274 206660

24 The 2015 South Yorkshire Search Marketing Conference, 10am, The Circle, 33 Rockingham Lane, Sheffield. Call 0114 253 6756 for more details.

9 Pure Networking – Bradford, 7.30am, Kala Sangam, St Peter’s House, 1 Forster Court, Bradford. Contact events@bradfordchamber.co.uk or call 01274 206660

18 Eco Fair, all day business to business exhibition and conference, Centenary Pavilion, Elland Road, Leeds. See www.eco-fair.co.uk for more info and to register.

27 Yorkshire Business Market, 10am – 4.30pm, Pavilions of Harrogate, Great Yorkshire Showground, Harrogate, see more at www.yorkshirebusinessmarket.org

23 York Property Forum, a specialist interest group and ‘think tank’ for property issues affecting York and the wider district, The Royal York Hotel, Station Road, York. Call 01904 567838 for more info.

28-29 The Buy Yorkshire Conference, billed as the biggest B2B conference in the UK outside London, The Royal Armouries, Armouries Dr, Leeds, LS10 1LT. Visit www.buyyorkshire.com for full details and to register. For exhibition and sponsorship enquiries email Becky@BuyYorkshire.com

23-24 Global Manufacturing Festival: Sheffield. Join over 1,000 SME companies plus global powerhouse names including Siemens, Tata Steel, Boeing and Rolls Royce. Conference and trade show are at The Diamond, The University of Sheffield. See www.globalmanufacturingfestival.com for full details of the event.

30 Confidence in Your Business – a Connect Gazelles seminar, with guest speaker David Longbottom, former owner of Pro-Pak Foods Ltd, 8am – 10.30am, The Quadrant, 99 Parkway Avenue, Sheffield. Call 0113 384 5643 or email hollie.shenton@connectgazelles.co.uk

MAY 12 Social Media for Business, 9.30am, Rendezvous Hotel, Skipton. See www.sfny.co.uk for more details. 19 Business Lunch – Harrogate, networking and expert speakers, 12 noon, The West Park Hotel, 19 West Park, Harrogate. Contact events@bradfordchamber.co.uk or 01274 206660 for details.

BUSINESS QUARTER | SPRING 15

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.

COME FOR THE RATES. STAY FOR THE EXPERIENCE. TREAT YOURSELF WITH 20% DISCOUNT OFF YOUR NEXT STAY* Oﬀered exclusively to BQ readers, Hilton Newcastle Gateshead is the ideal place to stay, relax and unwind. Set on the banks of the River Tyne our stunning location is perfect for a relaxing break away. Within easy reach of the city and station, onsite parking and excellent facilities, we have everything you would expect from a deluxe hotel. Visit newcastlegateshead.hilton.com and enter promotion code BQY14. *This oﬀer is subject to availability on stays before 6th September, 2015.

LOTS OF REASONS TO BOOK WITH US…

BUSINESS YOUR WAY AT OULTON HALL & SPA A range of flexible meeting and events facilities to suit your every business need. • 152 bedrooms • Nine meeting rooms for up to 300 delegates • Flexible spaces for retreat meetings and graduate training • Residential conferences • Spaces for team building, BBQs and drinks receptions

• Range of dining options for client entertaining, including butler dinners and afternoon tea • Corporate golf days • Ride and drive events • Located 2 miles from the M1 and M62

No matter what your business needs, Oulton Hall has the solution.

14 - 2015

2014 - 2015

Enquire today! 0113 282 1000 oultonevents@QHotels.co.uk Oulton Hall, Rothwell Lane, Oulton, Leeds,LS26 8HN Terms and conditions apply. Offer subject to availability. Minimum number of people apply for each day delegate package.