ULSTER BUSINESS
MAY 2013 Price ÂŁ2.30 (23.75)
Belfast Harbour celebrates 400 years WHAT WILL BE THE LEGACY OF CITY OF CULTURE? HAS THE PEACE DIVIDEND BOOSTED OUR ECONOMY?
Under the same umbrella Fleet Financial explains how joining the Charles Hurst Group has added strength and competitiveness to an already well known and established brand.
ISSN 1363-2507
MAY 2013
9 771363 250005
05
“A rocket will never be able to leave the Earth’s atmosphere.” New York Times, January 13, 1920.
Don’t miss out on this game-changer BT Infinity for business
Boost productivity with our superfast fibre optic broadband A small business change can lead to a big boost in productivity. Something as simple as changing your broadband can have a massive impact on performance. See for yourself. Sign up to BT Infinity for business today and start enjoying broadband that’s up to 6x faster than the UK average. Join the thousands of NI businesses already benefiting from superfast fibre optic speeds and see how your people can do more online, all at the same time.
t From jus
99p a day
See how other local businesses are benefiting from BT Infinity for business at bt.com/ni
BT business in Northern Ireland. Our business is connecting yours.
Call us today on
0800 011 3344 bt.com/ni
BT Infinity for business requires BT line or similar and an Infinity compatible router. 12/24 month minimum term. Subject to availability, geographic location and line capability. Conditions apply http://business.bt.com/broadband-and-internet/fibre-optic-broadband/terms/. BT Infinity for business Advance Option 1: £30/month(24 month term)x12 months/365 days=99p. UK average speed from Ofcom report, March 2013
BT Business Ulster Business FP - Rocket.indd 1
19/04/2013 11:43
CONTENTS
What’s inside... 14
60 Volume 25 No.5
MAY 2013
features 14 - Cover Story – Fleet Financial 18 - Maze Long Kesh 20 - John Simpson 22 - Michele Devlin 34 - Mervyn McCall 52 - Women In Business 54 - Belfast Harbour
BUSINESS FINANCE & BANKING
76
47 54
24 - Quarterly in NI 28 - Interview – Nick Leeson 30 - Eamonn Donaghy on Corporation Tax
BRANDING & MARKETING 40 - Interview – Sensum 46 - Rebranding Mauds 47 - Paperjam
PROPERTY & CONSTRUCTION 60 - University of Ulster 64 - Osborne King 66 - CEF
SPOTLIGHT ON DERRY 70 - Legacy of City of Culture 72 - Digital Derry 74 - Richard Florida 76 - Profile – Premier Inn
REGULARS
22
28
6 - News 81 - Motoring 90 - Appointments 92 - Photocall 100 - Business Traveller
MAY 2013 3
EDITOR’S COMMENT
A shared future
A
series of events recently marked the 15th anniversary of the signing of what has commonly come to be known as the Good Friday Agreement. A landmark moment in the history of this region, its content laid the ground work for much of the progress that has undoubtedly been made since the late 1990s. I am not going to get political here – there are many more savvy commentators out there who have contributed millions of column inches and interviews on the merits of the peace process. But it was interesting to note the growing amount of coverage around whether the economic dividend that was meant to come out of the agreement has lived up to its billing. Our columnist John Simpson takes a look at the facts and figures in his analysis this month, asking whether the statistics reflect the generally held assumption that we’re much better off than we used to be. As Secretary of State Theresa Villiers
noted recently, while the security situation is markedly improved, there is still a long way to go on delivering a ‘Shared Future’. You only have to look at the spat that erupted the minute a ‘Peace and Reconciliation Centre’ got planning approval on the Maze Long Kesh site for evidence of that. And they say it’s the Americans who don’t get irony! I had the fortune of being involved in two more uplifting events in the last month – the Aer Lingus Viscount Awards, in association with Ulster Business, and the Young Enterprise NI Company of the Year Awards. The Viscounts – which involved the Irish airline flying a cross-section of Northern Irish business people to London for an awards lunch – served as a reminder of the innovative and entrepreneurial companies already in existence on these shores. At the Young Enterprise awards six teams from schools of all backgrounds presented their businesses to a panel of judges who left revitalised by the enthusiasm, creativity and
innovation shown by the students. They had clearly excelled in working as teams and saw no bounds to their own potential to make it in the business world. Many of those students are from a generation who thankfully don’t have to really think about what side of the divide they are from on a daily basis and who don’t see their backgrounds as the sole driver of their future. The children who took to the streets in the recent flag riots show this is not yet the experience for all of our young people. But if we are to move on it is important we don’t knock the ambition out of the next generation by presenting them with an economy that is stuck in the past.
Editor: Symon Ross Manager: Sonia Armstrong Deputy Manager: Sylvie Brando Advertising Executive: Stuart Hackney Art Editor: Stuart Gray Production Manager: Stuart Gray Cover Photography: Richard Trainor Publisher: James & Gladys Greer
Ulster Business is published by GREER PUBLICATIONS, 5b Edgewater Business Park, Belfast Harbour Estate, Belfast BT3 9JQ Tel: 028 9078 3200 Fax: 028 9078 3210 Email Addresses: soniaarmstrong@greerpublications.com / symonross@greerpublications.com Website: www.ulsterbusiness.com Subscriptions: £27.50 UK per annum £37.50 outside UK Designed & Published by: Greer Publications Design Tel: 028 9078 3200
Greer Publications © 2013. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form, or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior permission of Greer Publications.
Printed by: W&G Baird, Antrim Tel: 028 9446 3911
For your nearest stockist or subscription queries, telephone Reception on 028 9078 3200
Wondering what this strange pattern is? For those not in the know it is a Quick Response (QR) code which allows those with a Smartphone to link the experience between online and offline reading. You can easily download a free QR Reader from your chosen App store on to your Smartphone. The code to the right takes you directly to the Ulster Business website.
MAY 2013 5
NEWS
Intel snaps up Aepona in £80m deal
T
echnology giant Intel has acquired Belfast-based telecoms and network software company Aepona in a deal believed to be worth $120m, around £80m. Founded in Belfast in 1999 the company has been a pioneer in bringing mobile intelligence to cloud computing and has supplied telco-grade software products and platforms to major mobile operators. As an early mover into the mobile software space, the company was able to tap into the opportunities for new mobile and web-based applications that adapted to how smartphone users work, shop, socialise and consumer content. Aepona’s monetisation platform was recently chosen by Vodafone India to connect the company’s network services across India, enabling Vodafone’s business partners to reach and bill its 147 million plus mobile subscribers. The company, which has a US-based CEO and is led in Belfast by CFO Michael Black and Marketing Director Michael Crossey (pictured), gave away few details of the deal in a short statement. “Intel Corporation has acquired Aepona and our 300+ employees in Belfast, Dublin, Sri Lanka and the United States. The addition of Aepona’s products, personnel and expertise extends Intel’s capabilities in areas instrumental to building and delivering future network and cloud services across the spectrum of computing,” it said. “The current Aepona organisation will become an integral part of Intel Corporation and we will continue to innovate and execute our product roadmap while serving and supporting our customers. Working as one company, Aepona and Intel are in a stronger position to provide solutions
and support to continue to move the industry forward.” Enterprise Minister Arlene Foster said the deal was a “tremendous endorsement of the skills of our workforce” and the strength of Northern Ireland’s technology sector as key drivers for growth. “Intel will benefit from Aepona’s wealth of skills, expertise and highly advanced technology and Northern Ireland will benefit from the presence of yet another global technology leader,” she said. “Intel will join others including IBM, Visa, HP and NYSE Euronext which have chosen to locate operations here by acquiring locally-based businesses with the knowledge, skills and technology to drive future growth.”
Belfast-based Mail Distiller acquired by US firm
Colm McGoldrick
B
elfast-based email security solutions developer Mail Distiller has been acquired by a US competitor, a move which will result in the company creating more jobs in Northern Ireland. Californian company Proofpoint Inc, a NASDAQ-listed leader in cloud-based information security and governance software, said it had closed the deal to buy all the shares of Mail Distiller for an undisclosed sum. Founded in 2004 by Colm McGoldrick, Mail
6 MAY 2013
Distiller provides software that helps small and medium sized companies to protect their email infrastructure, including filters to block spam and malware. McGoldrick, who will stay on as vice president of the newly renamed Proofpoint Essentials, said becoming part of a company with a global market presence would allow the firm to grow its presence in Belfast. “Traditionally these types of acquisitions are done by a large faceless organisation that doesn’t know the other party and is really just buying the IP and bringing it to another geographic location to sell. The difference here with Proofpoint and ourselves is that we’ve been friendly competitors for quite a while,” he told Ulster Business. Proofpoint’s customer base is at the enterprise level – companies with millions of users – while Mail Distiller is mainly geared towards SMEs. McGoldrick said Proofpoint had been looking to expand its market following its IPO last year and rated Mail Distiller’s technology more highly than other companies it evaluated. “Acquiring Mail Distiller allows them to offer a solution to the SME sector through its
network of distributors and resellers that they haven’t been able to before because their product and technology is geared for larger customers at a higher price point,” he said. “From a local perspective that immediately creates an opportunity for jobs. Long term we need to put together a plan with Invest NI to see what that will look like. But we’re talking an immediate requirement for five very senior engineers and some support. As of this morning we have pretty much outgrown the office space we’re in in the Northern Ireland Science Park.” The business, which currently has around 20 staff, will be operated as a separate division within Proofpoint and could also become a base for other divisions of Proofpoint Inc in Europe, the Mail Distiller founder added. “There are some really specialist jobs that have the potential to come here including malware research, virus research, security research, as well as the traditional work that Mail Distiller has done around anti-Spam and channel management. There is lots of interest in capitalising on the skill base that exists here, supplemented by the core training we would give them,” said McGoldrick.
NEWS
A RECORD YEAR: Never Mind the Business, a unique music themed fundraising event held in support of Action for Children Northern Ireland, recently rocked the Ramada to raise record funds for the charity. Over 200 music fans were treated to a performance by Belfast’s own Brian Houston at the event, which was hosted by Ralph McLean. Teams from businesses across Northern Ireland then battled it out at the massive music quiz – which included a sing-along lyrics round and a round of ‘classic album covers’ – before the coveted gold disc prize was lifted by the team from Oh Yeah music centre in Belfast (right). A total of £19,000 was raised to help to transform the lives of the country’s most vulnerable children, young people and families. Helen Quigley, Action for Children Northern Ireland partnership fundraising manager, said: “I would like to take this opportunity to thank everyone involved for making the event such a success.”
MAY 2013 7
NEWS
News in Brief Belfast-based broadcast equipment developer APT is celebrating a deal worth over £500,000 with Japanese national broadcaster, NHK. The broadcaster has purchased nearly 400 APT units to install as a key component in the strategic communications network that enables mass communication in emergency situations. Local IT company Tascomi has won its largest ever contract in the Irish Republic and now counts 22 of the 26 local authorities in Northern Ireland as clients. The Hillsborough based company, which employs 18 people and aims to reach 25 by the end of the year, has also recently won its first contract with an English local authority South Thames and Medway Gateway. Fujitsu has announced that it has won the £25m managed services contract for Libraries NI, the single Public Library Service for Northern Ireland. Under the five year contract, Fujitsu will replace and manage the entire ICT infrastructure in every public library across Northern Ireland, improving IT speeds, providing Wi-Fi access and creating an effective platform for modern “virtual library” services. Co-operation Ireland, the leading peacebuilding charity, has selected Capita Managed IT Solutions to move its IT infrastructure to the cloud. The three-year contract includes the implementation of a cloud-based delivery model, along with a complete IT infrastructure refresh. Belfast-based performanceACTIVE International Ltd has secured three new US contracts and two new South African contracts for its golf practice programme. myGRiPzone. com is an innovative new way for golfers to practice and improve their game. Florida University, the Mississippi Institute of Golf and two top academies in Johannesburg and Cape Town South Africa are the latest organisations to adopt the programme. UTV Media has renewed talkSPORT’s exclusive national audio broadcasting rights for two Premier League packages for the next three football seasons starting 2013/2014. The Agreement means that talkSPORT will be the audio rights holder for Sunday fixtures before 4pm and Saturday evening matches.
8 MAY 2013
Progressive posts solid results
P
rogressive Building Society has maintained its strong position within the financial services sector in Northern Ireland, reporting a pre-tax profit of £3.1m in 2012. financial year. While that was down slightly on the £3.3m figure in recorded in 2011, the company said its continued profitability through the financial crisis confirmed the strength of its lending policies and the stability that it offers to savers. The Society’s Chairman, Timothy Quin said: “The Society’s results are excellent, achieving another profitable year despite the ongoing difficult market conditions in which we had to operate in 2012.” “The ongoing low level of interest rates last year had a positive effect on the number of housing transactions in the market and this helped us to increase the volume of our new lending in 2012 up from £106m in 2011 to £125m in 2012.” While the 0.5% Bank of England Base Rate made it particularly challenging for the Society to attract new savings, Progressive managed to maintain the value of their savings book at almost the same level as in 2011 at £1,470m. Darina Armstrong Chief Executive and Michael Boyd Deputy Chief Executive of Progressive Building Mr Quin also said he was cautiously Society with the Society’s annual results. optimistic for 2013: “We believe that the worst is over in the housing market and hope to see more evidence of increased activity and stronger house prices. The ongoing uncertainty in the eurozone makes an increase in the official UK Bank Rate less likely this year, which should provide stability for borrowers but may disappoint savers.”
APPY AND HE KNOWS IT: Paul Acheson, a Software Engineering student at Queen’s University Belfast, has been crowned the overall winner of AppCamp, the annual innovation challenge run by Kainos Software.The event offers university students the chance to receive guidance and mentoring from Kainos to create and launch an app on the Apple App Store, and to take away the latest Apple devices. Kainos received over 100 applications from around the UK. The winning iPhone app,VacciNations, equips users with vital health information for travelling abroad, including the vaccinations that a user might need to obtain before visiting a particular country or region. Registration is now open for the next round of AppCamp in June 2013 on appcamp.co.uk
NEWS
IN THE OFFICE: Blue Zinc IT, the company behind practice management software TM2, celebrated its 10th anniversary as DETI Minister Arlene Foster officially opened its new offices at Castlereagh Road Business Park in Belfast.The management software company targets the private clinic market with specific focus on the rehabilitation sectors including physiotherapy, podiatry, osteopathy and chiropractic. Of the 1200 clinics worldwide that use TM2 an average of one million appointments are being booked per month using the system.TM2 recently received funding from Invest NI to support the creation of 13 new jobs bringing the total employed to 35.The company has since gone on to develop new markets in the Middle East and Australia after securing a number of contracts with private clinics. It also announced a new contract with Speed Medical, the largest independent provider of medical reports and rehabilitation services in the UK.
MAY 2013 9
NEWS
The BIG Numbers 0.3%
The amount of GDP growth in the UK economy in the first three months of 2013. The marginally positive outcome ensured the UK avoided a triple-dip recession. European Union and the IMF granted 7 The Portugal and Ireland an extra seven years to
pay back their emergency bailout loans.
new minimum wage for £6.31 The adults is to increase by 1.9% from
£6.19 an hour. The rate for 18-20-year-olds has been set at £5.03 and for 16-17-year-olds at £3.72.
Belfast smashed its 800,000 Titanic first year targets, attracting
more than 800,000 visitors to the attraction, a high percentage from out of state.
new carrier bag tax came into force 5p The in Northern Ireland, placing a levy of 5p on every single use carrier bag, with only a few exceptions.
Moy Park given Europe remit
G
lobal food company Marfrig has announced that its Craigavon-headquartered business Moy Park will take responsibility for the leadership and management of Marfrig’s operations in Europe, as part of a European reorganisation of the Marfrig Group. The new organisation will bring together the European business units of Keystone Europe, Seara and Marfrig under the direction of Moy Park, making Moy Park responsible for business turnover in Europe of around £1.5bn. According to Nigel Dunlop (pictured), who has been appointed as Moy Park Europe CEO, the purpose of this new and more integrated organisation will be to build on the core strengths and capabilities of each of the businesses currently operating across the UK, Ireland and Continental Europe for the benefit of its customers and consumers. “We believe that by bringing together the business units and functions currently operating across Europe, we can make better use of the respective strengths of each to better meet our customers’ expectations for innovative, high quality and affordable consumer products,” he said. “These changes will enable us to develop and grow as a strong and profitable business across Marfrig’s entire European Operations and ensure we can compete effectively for the benefit of the business and its people.” As part of this change, the business has appointed Moy Park’s current Director of Technical and Food Safety, Ursula Lavery to join the Moy Park Executive Board as Technical Director Europe with responsibility across the new enlarged European business. The current Moy Park headquarters in Craigavon, Northern Ireland will become responsible for the new, combined European business providing central support including Finance, Information Systems, Supply Chain, Procurement and Human Resources.
that a fourth season £65m Announcing of HBOs Game of Thrones will be filmed in Northern Ireland, First Minister Peter Robinson said the first three seasons had generated £65m for the economy.
Northern Ireland Composite 0.4% The Economic Index said economic activity here increased by 0.4% in the final quarter of 2012 and by 0.3% over the year.
being spent by £15m Amount Ballymena manufacturer Wrightbus on two new research and development and staff training projects.
research revealed that 87% Government 87% of small firms experienced a cyber-security breach last year, up 10% on the previous year.
10 MAY 2013
KEEPING PACE: Enterprise Minister Arlene Foster joins Carmi Bogot, Latens President and Mark Crum, SVP Development and Operations to announce that Belfast-based Latens Systems Limited is to more than double its workforce with plans to create 76 new jobs. Latens Systems, part of international technology company Pace Plc, develops advanced security software for set-top boxes, PC’s, tablets, smartphones, connected TV’s and other communications devices.
Taking Credit for Export... By Ruth Graham, Head of Trade Finance Sales Ireland, Danske Bank
Donnelly Finance and Leasing announces expansion plans
N
orthern Ireland’s largest locally owned vehicle leasing company, Donnelly Finance and Leasing, has announced major expansion plans. 15 jobs will be created over the next three years, doubling the current workforce, as Donnelly Finance and Leasing opens offices at all seven of the Donnelly Group’s sites across the country. The undisclosed investment will see Donnelly Finance and Leasing offer business motorists any car or vehicle no matter the manufacturer. Terence Donnelly, Managing Director of the Donnelly Group said: “For years we’ve been known as largest local leasing, contract hire and rental providers of commercial vans due to our complete 360 customer care and we will continue to build on that success, but now we’re aiming to increase our share of fleet cars. Today we are announcing the expansion of Donnelly Finance and Leasing which will now spread from our Mallusk site to all seven sites within the Donnelly Group. “As part of Northern Ireland’s largest independently owned car retailer, we can now bring the trust, experience and incredible value that only the Donnelly Group can deliver to business motorists through finance and leasing. “Our research has highlighted that business people want to support local companies and local jobs. They want a finance and leasing company that is close to their own business and offers the widest possible range, excellence in service and keenest value. “From one car to a fleet of 1000, we deliver.” Debbie Irwin, Sales Manager of Donnelly Finance and Leasing said: “The finance and leasing market in Northern Ireland is crowded. But the cornerstone of our business is “keeping the customer central in everything we do”. “We recognise that the needs of every business customer are different. Our finance and leasing professionals will work with you to create a tailored solution to suit your budget. “With plans for seven centres located throughout Northern Ireland business customers are never far from our dedicated local support and expertise.”
T
here’s always going to be an element of risk when trading in foreign markets – the level of which is dependent on factors such as currency, cultural differences between the trading jurisdictions and the product or service being exported. One of the greatest risks for any exporter, however, is failure on the part of the buyer to pay for the goods. One of the ways of reducing this risk is to use a letter of credit. Put simply, this is a conditional guarantee from the buyer’s bank that the exporter will receive a specific amount of money within a specified time – provided the exporter complies with strict terms and conditions of the letter of credit. There are advantages for both the exporter and the buyer. For the exporter, letters of credit provide enhanced security, since payment is agreed at a specific point in time and the contract cannot be cancelled or changed without their approval. A letter of credit can also lead to improved liquidity, since payment can often be advanced shortly after shipment. The buyer, on the other hand, also benefits from letters of credit whereby they are getting proof from the documentation provided under the letter of credit which confirms the exporter has honoured their side of the deal. There are a number of factors which should be considered before coming to a final decision as to whether or not to use a letter of credit. For example, is it standard practice in that market to use a letter of credit? What is the trading history with the buyer? Is the country politically stable and does it have a good reputation as an international trading partner? Does the value of the contract justify using a Letter of Credit? Who will cover the costs – the buyer or the exporter? In what can seem like a confusing maze of bureaucracy and administration, the important thing to remember though is that letters of credit are ultimately there for your protection. With expert advice from the local trade and export finance team at your financial institution, the whole process can be made much more straightforward and give you the confidence and reassurance to enjoy export success.
To talk to us about how we might support your exporting ambitions, you can email me at ruth.graham@danskebank.co.uk or telephone 028 9004 8683
MAY 2013 11
NEWS
Estate agents ‘not earning their fee’
T
he days of traditional estate agents are numbered, according to the business man behind a new online property
website. Brian Nelson (pictured), managing director of Sure2Sell, said that with 95% of property searches now beginning online, the role of the conventional estate agent has become obsolete and homebuyers should avoid shelling out thousands of pounds. The new business, which has created 12 jobs, said it aims to introduce a model that will help clients to sell or let their property in a transparent way, without the high fees charged by agents, but with the same level of expertise. “Thirty years ago you had to go to an estate agent on the high street and sit down and look at glossy brochures because there was no other way. But now 95% of property searches are done online, there’s no need to go down the Lisburn Road and look in shop fronts. People don’t drive around to find for sale boards. It doesn’t happen any more,” Brian told Ulster Business. “There’s a bittersweet taste when someone
sells their property through a high street agent at the moment. Yes they are glad to sell it but then they get the invoice at the end of it for four or five thousand pounds for someone opening the front door to show someone round a house. They don’t do anything these days except put it on PropertyPal or PropertyNews. Our network is 10 or 20 times bigger.” He said Sure2sell offers customers a range
of payment options to replace the typical transaction fees of 1.5%-2% of the property value currently being charged by conventional estate agents, with a monthly fee of £50 +VAT per month or one off flat fee of £375 +VAT until the property is sold, irrespective of the value of the property. The firm has created an online property platform network which will see registered properties being advertised on over 100 websites including some of the province’s largest property portals such as Property News, Property Pal, Rightmove, Zoopla and Daft.com. “Half the people who have been in contact with us who have listed their property with agents haven’t had contact with them for a year, maybe two. It is not good service. We’re renting properties out within two days through our network,” said Brian. “Online is the future. It has been very successful in England and the way forward here is online estate agents with the right expertise behind them. There’s no need for us to be charging 1.5% when we sell someone’s house.”
NAMA sales ‘could stimulate property market’
T
he National Asset Management Agency (NAMA) could stimulate the Northern Ireland property market by putting some of the better stock in its property portfolio onto the market, according to one leading local expert.
12 MAY 2013
Brian Lavery (pictured), head of CBRE’s Belfast office, said the commercial property market in Northern Ireland is currently “at an impasse” with minimal bank lending available for property development and few sales. “The amount of investment property which sold in Dublin in the first quarter was well over €300m. In Northern Ireland there wasn’t one single transaction over £1m that happened in the first three months of the year. The last one was the Sainsbury’s up in Ballymena and that was completed in December,” said Lavery. “They’ve started to have a bit of a run on property and that is getting the funds interested down there and starting a bidding process. I would hope NAMA and the other banks will follow suit and maybe leverage some of the better stock this year, because there is demand for the better stock.” There was some surprise last month when the Republic’s so-called ‘bad bank’ appointed administrators to the Ramada hotel in Portrush. Many of the assets owned by NAMA in Northern Ireland are land bank, but Lavery said the agency does have stock in Belfast which would be attractive for redevelopment or
investment for rental income. “We don’t have the same size of buildings in NAMA as they do in the South but there are smaller ones in that range of £5m to £20m that they could certainly sell,” he said. “It would help create some liquidity in the market. At the moment we’re in a stalemate and the funds can’t buy what they want to buy and nothing else is moving. We need to get liquidity because until you get those funds buying, until you get more money coming in, the stuff isn’t tradable. Funds are led by people who get comfortable when other people are buying. At the moment there’s this impasse of NAMA owning everything and the banks owning everything.” On the positive side, NAMA has announced it will make a £9m investment in 95 houses in the Millmount housing development in Dundonald. Finance Minister Sammy Wilson said of the move: “NAMA has had a difficult job to do in restoring liquidity, stability and confidence in the Irish financial sector, but this is an example of the positive role the Agency can play in Northern Ireland.”
peace of mind for your business
insurance brokers Omagh t: 028 8225 1241 Belfast t: 028 9066 6641 Newtownstewart t: 028 8166 2002 Dungannon t: 028 8772 6082 Newry t: 028 3026 5447 Cookstown t: 028 8676 2048
we know our business, we’d like to know yours www.dickson-insurance.com
COVER STORY
Part of the same team A year on from Fleet Financial’s acquisition by Charles Hurst, Ulster Business met with Fleet Financial’s Sales & Marketing Director Philip Miley and Colin McNab, the Operations Director of Charles Hurst, to discuss how the alliance of two strong local brands has benefited existing customers and provided a strong proposition to new customers of both organisations.
I
t would have been easy to assume that when Charles Hurst bought contract hire and leasing company Fleet Financial last year, the motoring group planned to install its own management team to take over the running of its book. But in acquiring a market leading business, Charles Hurst saw no reason to change the team or the business model that had brought Fleet Financial success in its first 16 years as an independent company.
14 MAY 2013
Instead, Fleet is now operating as part of a group that gives it added financial strength and additional resources in all aspects of the motor trade and enhances it’s offering to clients. “The rationale behind the deal was to strengthen Fleet Financial as a company,” explains Philip Miley, the firm’s Sales & Marketing Director. “As an independent we had come as far as we could in our growth strategy. From year one to year 16 we saw continuous growth. But to continue to improve this business
and provide an even better service we saw the need to get a bigger ship alongside us.” Charles Hurst also saw bringing Fleet Financial into its group as a means of strengthening its own contract hire offering, adds Colin McNab, Operations Director of Charles Hurst. “It is important to understand that we wanted to strengthen that part of our business. We did have a leasing arm within the company, but it wasn’t a market leader. We were finding that the
COVER STORY
finance lenders. “The acquisition has created competitiveness among our lenders,” says Philip Miley. “One of the major benefits to our customers is that our finance rates are more competitive. Prior to the acquisition we had two funders; now we have five funders who all want a slice of the action. The reason we have five funders is because of Charles Hurst’s balance sheet – the scale and strength of its business. “We now have a suite of local banks alongside us, helping us. Because of the nature of that competitiveness our finance margins have been enhanced. We were already competitive in our offering, now we are even more competitive because of our enhanced negotiating power.”
Photos by Richard Trainor
business customer wanted a wider choice and wanted more expertise around how they could finance their vehicles in the most cost effective way,” he says. “When Charles Hurst bought Fleet Financial we decided not to make any radical changes to the business, the expertise was already there.” Established in February 1996, Fleet Financial has grown year on year and now manages close to 4,000 vehicles – a milestone it expects to break through by the end of this trading year.
Its customers range from some of the province’s best known companies – including Graham Construction, Gilbert-Ash, Phoenix Gas, Dale Farm and SHS Group – to GB-based plcs like Sky Corporation and C&C Group, to sole traders and small firms. Fleet continues to negotiate its own terms with manufacturers, controls the discount and can buy from the whole dealer network. But being part of Charles Hurst group means it now has more support from both local and national
WHY CONTRACT HIRE? Although Philip Miley acknowledges that there has been an increase in competition in the contract hire sector in the last 18 months, he points out that Fleet Financial is having its best trading year so far and is aiming to supply over 1,200 vehicles in 2013. And the message about the advantages of contract hire over purchasing vehicles that immediately become a depreciating asset, is one that more and more businesses are listening to. “In the past five years cash rich companies have been keen to keep their cash in the business to use as working capital. Compared to 15 years ago, people now look at their motoring needs nearly like they do their electricity use. It is a function within their business. Ownership is not important. Having a fixed cost to the business is really appealing, so contract hire is much more on the radar, the business community is much more aware,” he says. However, there is still a section of Northern Ireland’s SME-dominated business community who aren’t aware that the benefits of contract hire are also available to them. Colin McNab elaborates: “Fleet Financial the name might conjure up this idea it is just for large companies but it is for every business, from one man bands to small businesses with a few vans on the road. “Whatever size of organisation they have, people who are running businesses are busy. They don’t want to be seeing the Renault salesman one day, the Nissan sales man the next day, Citroën the next day. They want someone to come to their premises and say ‘here is the suite of offers we’ve got and here’s how we can fund this cost effectively’,” he adds. McNab believes many business people will have always bought their vehicles or funded their cars a certain way but perhaps are not aware it is no longer the most cost effective way to do it. “Some people spend so much time focusing on keeping their vehicles on the road and not focusing on their own area of expertise, their own business,” he comments. “There are a lot of potential customers out there whose eyes we’d like to open to a whole new range of options of funding. It frees them up to think about their own business.” >>>
MAY 2013 15
COVER STORY
Philip Miley further explains: “If you think of mobile technology look how much has changed. Our industry, in terms of motor needs, has changed as much as phone needs. There is a different world out there with the introduction of government legislation around CO2 and capital allowances combined with the greatly increased choice on low CO2, hybrid and electric vehicles. “Transport is the second largest overhead for most businesses after wages so why do people not spend more time on looking at it and asking if they are doing it right. Every Northern Ireland business has a transport need and we are happy to provide advice on that to everyone, from one vehicle up. I would be confident that if people give us 15 minutes of their time that we could save them money.” While the phrase “one-stop shop” is an overused one, the management of Fleet Financial and Charles Hurst clearly believe that the options they are able to provide, trump
the competition. Both Philip and Colin are confident that having proved the worth of their brands to local businesses over the years, the alliance will simply create more reasons to work with people they already trust. “We have both been in the business a long time and so have the majority of our senior team,” says Colin. “People know that they can ring myself or Philip to get something sorted out quickly because we have that reputation within this sector. We have the philosophy of wanting customers to keep on coming back to us – one of our core values is that we want customers for life.” Colin notes that in the same way Charles Hurst wasn’t renamed Lookers NI when it became part of the GB-based parent company Lookers plc, Fleet Financial won’t be renamed Charles Hurst Leasing. “It is the same people driving this business,” adds Philip Miley. “We have a new owner, but
“When Charles Hurst bought Fleet Financial we HAD decided not to make any radical changes to the business. the expertise was already there.” 16 MAY 2013
on a day-to-day basis it is business as usual. The team is the same and has actually been enhanced because we’ve added to our sales force.” Five new sales people have joined in the last year in Northern Ireland and Fleet Financial has also added two in GB, where it runs around 700 vehicles for Northern Ireland companies, with plans to recruit three more in the coming year and develop the brand in the mainland marketplace. Philip Miley has long felt there was an opportunity to bring its successful model into the wider UK marketplace, and Lookers is now keen to back that move as a means of strengthening its own leasing operation. “We knew the model worked but we didn’t have the financial resource to make that step. In the next five years I feel that we could get our volumes on new contracts up to what we have here currently because it is a bigger market. If we’re doing 1200 units this year we can grow to that quite quickly in GB if we get the model right,” explains Philip. “It is a natural progression. We plan to maintain our position in Northern Ireland and grow it year on year. Our head office is here and we remain here. But we also want to be proactive and not sit back on our laurels. This is an opportunity. I’d love to think we could have a top 10 Contract Hire company with 6,000 vehicles. Having that ambition will benefit both our existing and new customers over the next five years.”
EBN_Congress JournalAd_PRINT.pdf
1
25/04/2013
15:12
Be part of Northern Ireland’s biggest International Innovation Conference 2013 Principal Partners
........................................................................................................... A stellar programme built around three key themes: Digital, Cultural and Social Innovation. C
M
....................
Y
CM
MY
CY
CMY
....................
A Congress bringing new levels of experience, learning, unrivalled networking opportunities and entertainment. Get inspired and amazed by world class speakers. Discover new innovations to accelerate your business growth. Share knowledge, best practice and contacts.
K
.................... RLD WO
Find new partnerships with the presence of representatives from Europe, USA, Brazil, China, Russia and Taiwan.
Headline Speaker: Steve Wozniak, Co-founder of Apple Confirmed Keynote Speakers: Cultural Innovation Keynote Dr Richard Florida, Professor, University of Toronto and NYU; Senior Editor, The Atlantic. Social Innovation Keynote Sir Tim Smit, Chief Executive, Development & Co-founder of the award winning Eden Project.
More than 600 participants & 50 exhibitors expected!
Sponsors:
more at www.noribic.com/ebncongress Tel: 028 7126 4242 E: info@noribic.com follow congress news on twitter: @noribic #ebncongress
Just say Yes! to Innovation
NEWS REVIEW
Entering the Maze holds the promise of jobs and investment Plans have been unveiled for what is expected to be Northern Ireland’s largest development site over the next decade. But the Maze Long Kesh site is nothing if not controversial.
T
he Maze Long Kesh Development Corporation last month unveiled plans that will make the former prison site Northern Ireland’s largest development, with the promise of 5,000 permanent jobs and £300m investment. The Corporation estimated that, during the development phase, 2000 badly needed jobs could be created in the hard-pressed local construction industry – based on a formula of 200 jobs per year over a ten year period. Terence Brannigan, Chair of the Maze Long Kesh Development Corporation said: “We are committed to maximising the economic development potential of this site for the benefit of all. The Maze Long Kesh site is a historically significant site, used formerly as a World War II airfield, a motor racing circuit, a military camp and a prison. It is a site located in an area now ripe for development, lying in a unique
18 MAY 2013
geographic position near ports, airports and a major road network at a prime location on both the North/South and the East/West transport corridors.” Mr Brannigan added: “We have already had significant international interest shown in developing the site and we anticipate that global investors will be excited about what is an unprecedented development opportunity. For
the people of Northern Ireland, in these very difficult times, it is an opportunity we simply cannot afford to ignore.” The Maze Long Kesh site is the largest development site in public ownership, with 347 acres ready for redevelopment. It is twice as large as the Titanic Quarter and four times the size of Canary Wharf. It is already the region’s largest construction site, with local construction firms
“I am confident that, out of a troubled past, we can find a way to create a legacy of work, prosperity and peace for generations to come.”
NEWS REVIEW
and 24 material suppliers working there. The Regional Development Strategy identifies the opportunity for a ‘major physical, economic and social development package of regional significance’ at the site and the Corporation said Momentum is already building. It has overseen the completion of demolition and remediation, the securing of funding for a Peace building and Conflict Resolution Centre (PbCRC) which will be complete in 2015 and reached agreement with the Royal Ulster Agricultural Society to hold their annual Balmoral Show on 65 acres of the site this month. While the Peace building and Conflict Resolution Centre (PbCRC), together with the conserved buildings, equal less than 30 acres of the total landmass, the project inevitably grabbed most of the headlines. Some Unionists have expressed concern that the centre could become a “shrine to terrorism” while Republicans are equally angry about the potential for a key period in their story being airbrushed out of history. But Terence Brannigan, who confirmed work on the new centre would begin before the end of the year, creating 70 jobs, said the organisation’s Development Plan meets an important Programme for Government target. “Our vision, ‘from Peace to Prosperity’, is intended to demonstrate how economic development can help consolidate and build upon our peace. We will promote the PbCRC, with its unique Belfast-to-New York design collaboration, as a showcase to attract international developers and investors. From the interest already shown, I am confident that we will have in place £100m investment by 2016,” he said. ‘From Peace to Prosperity’ is our lodestar – our guide in opening up a range of new possibilities for the Maze Long Kesh site. We will use this as a firm foundation to attract a new range of business interests focused on new technologies and new futures. Our research clearly indicates that transformational technologies, health & life sciences, agri-foods and renewable technologies will sit comfortably alongside our centre for peace and conflict resolution, whilst attracting investment and creating high-quality jobs. We will create a ‘peace to prosperity’ continuum, all on a single site.” He further explained: “I am acutely conscious of the sensitivity of this site, but Maze Long Kesh is already changing. In a couple of weeks we will welcome the Balmoral Show to Maze Long Kesh. The show is a new chapter in the long and varied history of this site and a new phase for the Royal Ulster Agricultural Society. “I am confident that, out of a troubled past, we can find a way to create a legacy of work, prosperity and peace for generations to come. The Maze Long Kesh site has changed and will continue to change and, in doing so, will create a better future for all of our citizens as an attractive and vibrant place to live, work and learn.”
CBI calls for urban regeneration
T
he chair of business organisation CBI Northern Ireland has called for “a resurgence” in regeneration initiatives led by both the public and private sectors to help transform the economy. Ian Coulter (pictured), speaking at the CBI’s annual dinner, said urban regeneration and economic infrastructure must be key planks in the Executive’s policy going forward. “We need a resurgence here, after a five year period of market failure following the bursting of the property bubble. Now more than ever we need regeneration initiatives led by both the public and private sector that prepare our cities, particularly Belfast, for the future. Physical transformations are needed to stimulate investments, jobs and growth,” he said. Mr Coulter told the assembled business audience that physical transformation will be needed to stimulate investments, jobs and growth. He highlighted the need to replace and build houses in towns and cities; the need to supply commercial property that is not only energy efficient but also can support new technologies that enable businesses to thrive; and the need to capitalise on key infrastructure projects that help to attract new investment and improve the productivity of our existing businesses “In terms of these schemes I believe that when our Executive have taken the plunge, they have done so with success,” the CBI chairman said.
“The Titanic Signature Project has been a top drawer example of what can be achieved. Yesterday, I attended the Maze Long Kesh Project launch. Again this promises a great deal. In a couple of years’ time I fully expect my successor to be standing here commenting on the thousands of jobs created and the inward investment and companies attracted. “These are two great examples of regeneration initiatives led by government in partnership with the private sector. We just need more of them and we need them more quickly,” he said. Mr Coulter highlighted a number of other potential projects that could make a huge difference, including the York Street Interchange, the Great Victoria Street Integrated Transport Hub, and the North South Interconnector. “There are many things the Executive need to consider to make this happen – do we need an Infrastructure Minister? Do we need to adopt a model similar to the Scottish Futures Trust? Could SIB play a wider role here? Should we widen local councils borrowing powers to allow them to invest?” he said. “We appreciate the Executive has had to absorb a significant cut in its capital budget – initially around 40% but now closer to 22%. But these challenges are likely to be with us for some time. We cannot allow such a capital gap to happen again, particularly when we can find the money elsewhere,” he added. “We have strongly welcomed the announcement of the two new health centres to be built using the 3PD finance model however this approach needs to be embraced much more widely.” The CBI chairman said the role of the public sector needs to change from ‘financer to underwriter and facilitator’. “Successful regeneration will combine economic, social and physical outcomes for everyone in Northern Ireland. It is a sad fact that in the 1950s Belfast had 400,000 people. It now has 280,000,” he said. “We must put in place plans to make Belfast a magnet for people, for business and for tourism. This will benefit the country as a whole. Urban regeneration must be front and centre going forward.”
MAY 2013 19
ECONOMIC ANALYSIS
The economy and Northern Ireland’s shared future have been high on the agenda at meetings between Prime Minister David Cameron and First and Deputy First Ministers, Peter Robinson and Martin McGuinness.
What progress, 15 years after the Good Friday Agreement? John Simpson asks whether the statistics support the general view that Northern Ireland is better off in economic terms 15 years after the most significant milestone in the peace process.
N
orthern Ireland has faced, and continues to face, a longer and deeper recession than most other UK regions. The Peace Dividend has not been strong enough to offset other factors. The Community Relations Council commissioned a detailed professional assessment of the impact of the ‘peace process’ in Northern Ireland. In its report, the Council concludes that there is ‘evidence of a broad consensus that the 1998 Belfast Agreement (the Good Friday agreement) has fulfilled its promise and that Northern Ireland is now a stable and peaceful society.’ The economy gets a less central mention. The Council does qualify its conclusion by making reference to the continuing impact of dissident republicans and the contrasting implications of the dispute about flying flags. Nevertheless, in a detailed survey of social, cultural, political and economic questions, there is extensive evidence of Northern Ireland living in more normal conditions. In the mixture of complex local, national and international events which have impacted on living standards in Northern Ireland, the
20 MAY 2013
Peace Monitoring Report makes a number of valid comparative statements but stops short of making persuasive therapeutic prescriptions. Has the peace process been helpful in sustaining or growing the local economy? Undoubtedly, that question would attract positive endorsement. How much has it helped the economy and in what ways? That is more difficult to quantify. Through the years of the ‘troubles’ from the late 1960’s until later in the 1990’s, the economy was hit hard. Business investment was deterred, the number of visiting tourists
decreased, some jobs were lost, emigration was higher than would be normal and the human and physical cost of violence was painfully large. A partial offset to the negative impact on the economy was the sustained and major increase in Government spending directly as compensation for loss and damage and indirectly in security related employment. The Good Friday Agreement was a watershed. There was an expectation, largely fulfilled, of an end to major civil disruption and violence. Of course, the Agreement only took root when extensive secondary negotiations leading up to the St
TABLE 1: EMPLOYMENT & UNEMPLOYMENT (SOURCE: LABOUR FORCE SURVEY) YEAR
EMPLOYMENT ‘000
UNEMPLOYED ‘000
% UNEMPLOYED
1996
657
72
9.9
1998
693
57
7.5
2001
705
47
6.3
2005
738
38
4.9
2012
806
56
6.5
ECONOMIC ANALYSIS
TABLE 2: POPULATION: NET MIGRATION - SELECTED YEARS (SOURCE: NISRA) YEAR
NO.
1973-4
-14,000
1997-98
-5,000
2000-1
-1,900
2005-6
+9,900
2008-9
+2,100
TABLE 3: LIVING STANDARDS - GVA PER PERSON (SOURCE: ONS) YEAR
£ PER PERSON
% UK
1998
10,615
80.2
2002
12,503
79.6
2006
15,408
80.3
2011
16,531
79.2
Andrews conclusions in 2006 were implemented. If the cumulative impact of the peace process has reversed the negative factors formerly affecting the economy, has this created a favourable business and employment environment? That quickly mutates into a complex analysis where other features whose causation is separate from the peace process are also impacting on the economy. In 2011-12, the UK economy is emerging from a major recession where national and international financial institutions have contracted and are reliant on Government and international bail-out mechanisms. The Republic of Ireland is also tackling serious internal financial tensions. Even with a positive peace process, Northern Ireland would (and does) face problems. The critical question is not whether the recession affecting the UK and the Republic of Ireland would have repercussions in Northern Ireland but whether the existence of the devolved administration emerging from the peace process has helped to offset some recessionary forces and whether Stormont has been used to take counterveiling measures. If the peace process was to have a positive benefit for the economy, then at least a ten year period of stability and consensual political leadership would be necessary to ensure confidence from external investors, attracting potential tourists, revival of employment prospects and reducing emigration. Arguably, that ten year horizon could be seen as only commencing in 2006 and, therefore, not yet fully effective. In the decade 1998-2008, there was evidence of a positive (but modest) impact of the peace process. The composite index of economic activity increased in Northern Ireland by 20% from 2002 to 2008, compared to an increase in the UK of 16%. This compares less favourably with the Republic of Ireland where the comparable increase (before the onset of the Irish financial crisis) was 25%.
For most of that decade, employment increased, unemployment decreased and net emigration was reversed as Northern Ireland experienced an unusually high rate of immigration. One of the ironies of the peace process is that it contributed to the surge in confidence in the local housing market (later seen to be unsustainable) leading to an expansion of construction activity at the same time as the public sector had resources for capital investment on a record scale. These expansionary forces have more recently been reversed as the housing market bubble was deflated and Government capital spending has been reduced. Other potential gains from the peace process do not seem to have been adequately realised. There has been some inward investment particularly in distribution and modestly in manufacturing. The ambition for a stable peace process is that Northern Ireland should attract larger amounts of manufacturing and ICT type
projects. Even in 2013, some caution about the long-term impact of political stability is justified because of the wider economic recession. The evidence on whether the Northern Ireland economy is sufficiently competitive to attract international investment is muted. GVA per person (table 3) and GVA per filled job (table 4) both show that Northern Ireland’s productivity and competitiveness have not improved significantly. Of course, these critical indicators will take time to improve. The judgement on whether the Executive’s Economic Strategy will be effective enough to generate a useful catch-up must be reserved. These comparators can also be used to support the argument that the Executive must now implement policies to enhance productivity and competitiveness. The plea for devolution of Corporation Tax powers is an unfulfilled supportive action. Given the continuing unsatisfactory debate about social and community policies which interact with economic processes, there is some reassurance on the changing community impact of the jobs market. Table 5 confirms that the local jobs market has continued to move to give a community balance in employment that is now close to what might be regarded as supporting a jobs market where discrimination (other than on ability) has been eliminated. To return to the report from the Community Relations Commission, there is evidence that the peace process has been followed by some tentative signs of a stronger economy. The recession has made the gains less conspicuous. However, the gains have also been more modest than might have been expected. The real benefits of the peace process should contribute more to a stronger economy. However, the efforts to supplement the impact of the peace process have been modest. The focus should now turn to scrutinise whether the economic strategy is being delivered to secure effective long-term competitiveness. That does not yet seem to be assured.
TABLE 4: Productivity: gva per filled job (SOURCE: ons) YEAR
as % of uk
2006
86.3
2007
86.0
2008
84.6
2009
83.7
2010
83.5
2011
86.6
TABLE 5: EMPLOYMENT: EQUALITY COMM. SURVEY (SOURCE: EQUALITY COMM.) YEAR
PROTESTANT
ROMAN CATHOLIC
NUMBER IN SURVEY
2001
59.7%
40.3%
491,427
2006
56.3%
43.7%
520,839
2011
53.7%
46.3%
509,842
MAY 2013 21
INTERVIEW
Michele Devlin
The cult horror classic ‘Evil Dead 2’ was screened at Ormeau Park.
A festival Made in Belfast As last month’s Belfast Film Festival prepared to get underway, Ulster Business caught up with festival director Michele Devlin to ask just how you go about staging a film festival.
M
uch has been made of the growing film and television industry in Northern Ireland and its potential to boost the economy. The dividend of HBO’s Game of Thrones and the new Titanic Studios is to some degree filtering down to the region’s independent film makers, who continue to turn out critically acclaimed movies such as the recently lauded Good Vibrations. Good Vibrations – the story of Terry Hooley – had its premiere at last year’s Belfast Film Festival and this year’s festival, held in April, provided a similar showcase for local talent with debuts for the likes of Made in Belfast. Michele Devlin was part of the team that first started the Belfast Film Festival in the 1990s and as its director is now involved in every aspect of its planning and delivery. As the profile of the festival grows, she says she’s proud of the part it is playing in supporting an increasingly vibrant arts scene. “The box office figures for this year have broken previous records and each year we have grown. We have become one of the cornerstone arts events in the City,” she said. “I think it is interesting that this year’s festival starts in the week of the anniversary of the Good Friday Agreement because the festival is part of that whole positivity that came after it.” Michele, who has a background in film and television teaching, notes that a lot of work goes
22 MAY 2013
into planning the programme and making sure it is different to the many other festivals out there. “We’re normally thinking about the following year before this year has happened. We always try to have premieres and we try to avoid repetition with films that have been screened elsewhere, other than with the classics that form part of the programme. Most are first time screenings in Europe, the UK or Northern Ireland, with the odd world premiere for local films like we had last year with Good Vibrations,” she adds. “It is intensive over the 11 day period but we do it because we love film. It is very exciting.” In advance of the festival, members of its team travelled to a number of local and international festivals such Toronto, Berlin, Galway and Cork to get an inside track on the hot films being made, often long before they were finished. They also have a plan of the type of films and events the Belfast festival is interested in. “We like doing site specific events and we try to see the city as a big open air cinema, using buildings that people might not have been to and using the landscape of the city in an innovative and exciting way,” says Michele. This year’s festival screened prison movies including Paul Newman classic Cool Hand Luke in the outside space at the Crumlin Road
Gaol, showed The Breakfast Club in Inst’s library and used Ormeau Park for a spooky screening of the remake of cult horror classic Evil Dead 2. “It has been very popular with horror fans. We are creating the ambience of the film by playing around with the surroundings of Ormeau Park,” laughs Michele. As a business Belfast Film Festival operates as a charity, with all profits going back into the organisation to develop and grow the festival through a combination of ticket sales, Council funding and NI Screen money. Goals for the festival include supporting local indigenous talent but also building on its own reputation on the international stage to bring more overseas visitors to the festival. “Attracting an international audience is one of our aims and that will happen by growing the reputation of the festival. I think we are well regarded and we have a good reputation for innovative programming. We’ve had a lot of bookings from overseas this year and hopefully that will grow and grow,” says Michele. So, what does the film festival director like to watch herself? At this year’s festival she was most looking forward to a Marilyn Monroe themed event with live music from Katy and the Carnival. If forced to choose, her favourite film is uncannily appropriate. “If I was pushed I’d probably say Cinema Paradiso. But there are so many great films it is hard to choose.”
Business Finance & Banking
Sponsored by
BUSINESS FINANCE & BANKING
New forum designed to stimulate more deal activity A new networking event has been launched to bring together leaders in the financial sector with the aim of helping to stimulate a greater level of deal activity in Northern Ireland. Symon Ross reports.
W
hat happens when you put 70 bankers, lawyers, accountants and fund managers in a room together? It might sound like the start to a bad recession-themed joke, but that is what the organisers behind a new informal networking event for the advisory community wanted to find out. Quarterly in Northern Ireland (QUINI) held its first meeting at the end of April, an invite only event that consisted mainly of CEOs, Directors and Partners from the main law firms, banks, accountancy firms, corporate finance advisers and investment providers. The meeting had no formal agenda and no speeches but was instead billed as a chance for high level decision makers to network over a glass of wine and food with the key aim of stimulating deal activity. It is based on the Quarterly in Dublin (QUID) model created last October by Tom and Pete Smyth from Broadlake Capital, a €100m family office fund which invests in growing companies in the Republic and Northern Ireland. “The rationale behind it was to create a quarterly networking event which would stimulate dialogue between the key people involved in deal-making activity,” explains Tom. “The rate of change is such that it is important for people to keep in contact. US, European and UK investors are coming to Dublin on an ad hoc basis so we wanted to create an event that would reward them for taking a flight by letting them meet key people in a friendly environment and engage in dialogue that might lead to deals.” The first meeting in Dublin attracted 60 people, the second 80, including representatives from a number of overseas investment houses. Feedback to date has been very positive. “What we found in Dublin is that while a lot of people know each other they maybe haven’t talked in a couple of years because they’ve been working on different sorts of projects. This is an opportunity for them to reconnect,” says Tom.
24 MAY 2013
“If it is quarterly it is an event people can put in their diary in advance and if they are coming in from elsewhere they can tack on meetings to make it worthwhile.” Tom has joined Craig Holmes from corporate finance advisers Horwood Neill Holmes, Paul Millar from Growth Loan Fund managers WhiteRock Capital, and John McGuckian from solicitors Tughans on the steering committee for QUINI. The independent committee have ensured there’s no agenda, no branding and nothing corporate – a key factor in getting competing firms to attend. Craig Holmes, who attended the Dublin meetings, says it is for those who are keen to promote M&A and investment activity and won’t just be a talking shop. “We decided this was something we should extend to Belfast because it would not only be good for Northern Ireland business and help grow the private sector, but also good for the guys themselves to meet international people in their sector,” he said. “The idea is that it is very focused so there are no companies there. One of the things advisers are distracted by at other events is the companies being there, because they all want to talk to potential clients. But whenever you get the advisers and funders in a room themselves and talking about what’s going on in the market, and talking about the companies, that is a powerful tool.” Like the Dublin events the first QUINI meeting saw corporate finance advisers, funds, banks, Invest NI, university spin out funders and non-executives in the sector attend as well as some investors and advisers from Dublin and GB who see NI as an un-fished market with a number of attractive businesses. “We’re not expecting 10 deals to come out of this in the first month, it is about planting seeds, getting people talking to one another and then letting them join the dots. It may take time but it is better to at least make those connections.
“If one deal happens in the next 12 months from that initial meeting, from people exchanging business cards and then going for a coffee, that would be a success. Hopefully there will be more but just one deal would justify it,” he adds. “It’s not quite speed dating but at the Dublin event I went away with 20 business cards from people I didn’t previously know. You can’t do that at a black tie event.” THE RIGHT TIME Paul Millar from WhiteRock says it is timely to hold such an event now because there are tentative signs M&A activity is picking up, despite the ongoing economic gloom. “All the advisers are starting to see a bit of a pick up in confidence from companies and this is designed to help stimulate that. Everyone is looking at how they can get involved in the next deal,” he said. “There have been a number of deals done in the last 12 months where private equity has come into Northern Ireland. Companies here are attractive because of the strength of the management teams and the lack of available development capital over the last few years. Even with the new Invest NI funds addressing that there will always be deals that will attract outside players who are here to do one or two deals a year.” Millar cites the interest in the Growth Loan Fund since it launched in September as evidence of potential activity. It has approved 30 loans since then with a combined value of £7m and has another 20 of similar potential in the pipeline. Of the 200 loan applications WhiteRock has received, 70% of companies have been trading more than five years and 25% are looking for more than £3m. A third of those applications were rejected, but Millar says that doesn’t mean they weren’t suitable for equity funding. He believes the recent £6.6m investment in Seven Technologies by YFM Equity Partners
BUSINESS FINANCE & BANKING
Steering Committee: John McGuckian, Paul Millar and Tom Smyth. Craig Holmes not pictured.
proves there’s interest from outside investors. “There is certainly demand our there for growth capital, we’re seeing that first hand. The most interesting thing is the size of companies – it is probably bigger than we expected, right up to £25m turnover,” he said. “Companies are potentially either reluctant to ask the bank because they know the answer or they are exploring other avenues. The penny is starting to drop that you can’t fund your business just through bank funding.” Millar too hopes that getting senior people together in a relaxed setting will help create confidence among the advisory community about the potential for deals. “Most events you go to you are sitting at a table for the vast majority of the evening and then maybe networking happens at the end where people just go and speak to others who they know. If people come with no agenda other than to be upbeat and prepared to talk about the type of deal activity they are currently seeing it will generate discussion and hopefully stimulate activity.” COMPETITION Of course as anyone in Northern Ireland’s relatively small advisory community knows, competition between law firms, banks and accountants is fierce. But bringing those people together is not
something that John McGuckian from Tughans has any reservations about, noting that nothing confidential is expected to be discussed. “Every other lawyer in the room, Tughans will have worked with on the other side of a transaction,” he said. “But we have to realise we’re in this together. We’re trying to get deal flow going together and if another law firm’s client is buying a business it may very well be my client – you have to think like that,” he adds. “We want other law firms to be busy because it makes us busy. Instead of a cloak and dagger approach this sort of event and the opportunity to discuss at a high level will hopefully encourage that. If everyone’s busy, everyone’s happy.” McGuckian said that having worked with Broadlake Capital in the past it made sense to hold an event in Belfast which allowed open and frank conversations that would allow knowledge to spread and ultimately benefit clients. “It was refreshing to hear how it works in Dublin, that it is an open forum for people to speak, so it is not just client focused and lets people know what’s out there,” he said. He too believes that, with investments still happening in good companies and new internal funds from Invest NI in the pipeline, the advisory community needs to do more to
encourage confidence. “We have been busy at Tughans over the past 12 to 18 months but there isn’t that same chunky deal flow that there once was,” he adds. “However, both venture capital funds and private equity houses have money and are looking for good opportunities. It is about how we promote and how we sell ourselves and our businesses and the management teams here.” It’s a statement that Tom Smyth agrees with. He is now spending two or three days a week in Northern Ireland looking at potential investments. “We think there are great opportunities here to invest in businesses that are forward looking, that have exportable skills and services and products that make it a great market to invest in,” he said. “We partner with SMEs and entrepreneurs who we feel we can offer operational support as well as financial backing. We are a family investment group and we look to invest in SMEs, which in Northenr Ireland are typically owner managed family businesses, so we’ve found our message has been positively received by the business community,” he adds. “The more time we spend in Northern Ireland the more we realise there are a number of companies in niche sectors like manufacturing, engineering, aerospace that could take on the world.”
MAY 2013 25
BUSINESS FINANCE & BANKING
Supporting business success Ulster Business meets Danske Bank’s Head of Business Acquisition, Lewis McCallan, who says we need to get better at sharing success stories in Northern Ireland.
“I
n Northern Ireland we’re not great at blowing our own trumpet. But business confidence is critical to driving the economy forward and we need to get collectively better at sharing these success stories. We need to inspire local companies to take the next step in their business growth and help to equip them with the skills they need to get there. “At Danske Bank we are certainly seeing a number of sectors performing well, such as healthcare, engineering, food and obviously manufacturing companies with an export focus. But there are individual companies successfully growing their business within many other more challenging sectors,” says Lewis McCallan. Lewis heads up Danske Bank’s Business Acquisition team, which evolved on the back of the success of the original Corporate Acquisition team in order to focus specifically on the local SME market. He added: “We have created a dedicated acquisition team with a business acquisition manager based in each of our business finance centres across Northern Ireland. They live in or are from the local areas themselves coincidentally many of them are well known faces from various competitive sporting backgrounds so it makes for a competitive team!” “These acquisition managers have a very clear
26 MAY 2013
focus – to build relationships and secure new to bank business for Danske Bank. With no portfolio management they can really develop their expertise on specific geographical and commercial sectors, their challenges and vitally their opportunities.” Danske Bank is the largest business bank in Northern Ireland and last year acquired a significant number of new to bank relationships in a challenging environment. “With success stories such as McAuley Engineering, the Xperience Group, Mauds Ice Cream and fonaCAB our Business Acquisition team alone secured over 120 new to bank SME relationships in 2012. We also saw a significant level of new business activity around the healthcare and IT sectors,” continued Lewis. “Thankfully the activity and positive results enjoyed last year have continued into 2013 and we have just finished the best quarter ever in terms of switching activity to Danske from other financial institutions.” Lewis McCallan attributes this success to three key factors – proactive relationship management, market-leading technology and local embedded expertise. “Many new customers come to us having experienced a lack of consistency and continuity in relationship management from their bank
– they favour our strong focus on proactive customer care,” he says. “More business owners are asking for meetings before 9.00am or after 5.00pm and flexibility in this regard is an early indication of our willingness to do business. This is definitely a key factor in acquiring new customers. “Our acquisition managers are out meeting business owners daily, but it’s a team approach. They will always be accompanied by either a business manager or product specialist depending on the business’s needs. Critically in these challenging times decision making is quick, with credit decisions being made swiftly and locally.” Lewis concludes: “There is still a perception that banks aren’t open for business. We can’t say yes to everything but we do have a strong appetite to support good trading companies. We know we have a product range which surpasses our competitors and the financial strength to deliver. We are proud to have played our part in the success of many business customers. We all just need to get better at blowing the trumpet for Northern Ireland businesses.” To contact Lewis McCallan email: lewis.mccallan@ danskebank.co.uk
5770 DB Mobile Business App UlsterBusi A4 Ad JM1 PRINT.indd 1
16/04/2013 15:05
BUSINESS FINANCE & BANKING
Return of the rogue trader GDP Partnership’s decision to bring Nick Leeson into its business has raised a few eyebrows and generated a lot of headlines in the press. But, he tells Symon Ross, there are good reasons why debt consultancy is the perfect role for him.
N
ick Leeson has heard it all before. Rogue trader. Fraudster. Swindler. Crook. You name the unflattering moniker and Leeson has probably been labelled with it. Speaking with him in Belfast, he acknowledges that there are good reasons behind the tags. The former derivatives trader shot to fame – or perhaps notoriety – as the man whose unchecked risk-taking caused the collapse of Barings Bank in one of the biggest financial scandals of the late 20th century. He racked up losses of more than £830m after a series of risky trades went wrong, twice the capital held in reserve by Barings – one of the oldest financial institutions in England and personal bank to HM the Queen. It was no small surprise then that when he chose to emerge from his second career on the after dinner speaking circuit it was to join a Belfastbased business specialising in debt mediation
28 MAY 2013
between struggling borrowers and their banks. Leeson is to become a Principal in the new Dublin office of GDP Partnership, a team of property, accountancy, legal and banking professionals led by business partners Conor Devine and James Gibbons, which aims to help clients avoid insolvency. The first question that occurs to me is why anyone would want to trust Nick Leeson with their financial affairs? “The negative perception of me is amongst a very small percentage of the population,” he says. “There are words that are often associated with me, rogue trader, disgraced banker and in some cases criminal and fraud. None of them have particularly good connotations. Since 1999 when I was released from prison it has been a slow process of reinventing myself and taking full responsibility for everything that happened. Admitting and
accepting my shortcomings and hopefully helping people.” But Leeson says in joining GDP he provides an understanding of the mindset of a borrower who is out of their depth. “I think I signify that we have huge empathy with the borrower who finds themselves in difficult times at the moment. I’ve lived in Ireland for ten years through the boom years and the gloom and have seen how banks have behaved and how they have dealt with people,” he said. “If you’re riddled with debt and have your head stuck in the sand with nobody to talk to, you’re hiding things from your family and your workmates, ultimately it is going to win. So you’ve got to stop that spiral and stop it quickly, because it can get out of control. I’m living embodiment of that fact. I learned some hard lessons over the years and if I can short circuit some of those lessons for
BUSINESS FINANCE & BANKING
GDP’s Conor Devine, James Gibbons and Nick Leeson
people, that’s a huge positive,” he adds. GDP’s co-founder Conor Devine, a chartered surveyor, says he had no issue taking on someone who is best known for risky financial dealings. “From our perspective there is a lot of hysteria around Nick and what happened a long time ago. But once you get to meet Nick and scrape it all back you have a very articulate person who understands finance, who understands the global economy and the mistakes that have been made and continue to be made. He regularly talks at international conferences about risk so for a small company in Belfast to attract someone of Nick’s calibre is great for us,” he said. “Life for me is all about perception and risk is when you don’t know a lot about something. When I look at Nick and what he brings to the table I don’t see any risk personally.” Started three years ago GDP aims to help its clients negotiate a way forward with their banks so that they can avoid insolvency and move on. Conor says the debt consultancy, which doesn’t operate on behalf of institutions, has made progress in Northern Ireland and banks are now willing to listen. Most recognise that their net return will be greatly reduced by appointing a fixed charge receiver to assets and can generate an increased return by entering a mediation process. “Quite often we are faced with people who are overwhelmed by debt and unable to find a solution. The country won’t move on until we deal with debt. People don’t trust banks and banks don’t trust the borrowers. We try to bring them together,” he said. “We have seen a huge shift in the attitudes of some of the local banks the past 12 months. The banks have had to move to this engagement position – they now know it is better to get the borrower to work with them,” adds Conor. “But I don’t want to sound too confident. The banks are not very transparent and we need
to move the process on a lot quicker because the quicker we deal with the problem the more prosperous an economy we’ll live in.” Commenting on the increasing trend towards business people choosing to go bankrupt as a means of getting free from the stress of debt, Conor says it shouldn’t have to be an option in most cases. “Why should you (go bankrupt). Ulster Bank are owned by RBS which is 82% owned by the taxpayer. They were bailed out. What we’re saying is let’s restructure the debt,” he said. “Governments and banks have restructured their debts in the last few years, so why is it unreasonable for a borrower to do the same? The answer is it’s not, however there is a process you have to enter into and that’s what we do through our practice.” EMPOWERMENT The idea of empowering people to present new ideas to their banks and take back control of their debts is something Nick Leeson says attracted him to join GDP. “The reason that is important to me is that I found myself, obviously, in financial difficulty – maybe on a grander scale than most people, although there are some who are in difficulty on a grander scale than I was,” he explains. “But the thing that happened to me when I was in prison in Singapore is that I was diagnosed with cancer. I didn’t know how to find a path forward. The doctors told me everything they needed to tell me and most of it flew over my head and didn’t make an impression on my thought patterns, which wasn’t healthy. By reading a book on colon cancer and gaining more knowledge I became part of the process, which was enlightening and made me feel I could ask questions and be part of my recuperation,” he adds. “Banking, law and medicine are all fairly similar
in that the general public don’t know very much about them and we’re very reliant on what we’re told. That is a very dangerous situation, especially in the world of finance at the moment because there aren’t that many experts out there.” Having lived in Galway for the past decade Leeson doesn’t believe the banking community in Dublin will have any problem accepting him in his new role as a mediator. “Strangely enough the negative perception of me is probably reduced in the banks rather than heightened. In this day and age for a bank to have preconceived ideas about me would be slightly disingenuous because they’ve been disgraced themselves. I don’t think there are any bankers up on the parapet shouting about my appointment because we’re bringing a solution,” he said. “One of the problems I see in the South is that after the crash many people thought they could keep hold of everything. There’s never been any history of repossessions in Ireland. It is a slow process for them to accept there will be a bit of pain in the resolution.” Conor Devine says that the situation in the Republic is about 18 months behind the North in terms of attitudes towards more innovative mediated solutions. That is further complicated by new insolvency legislation and the huge influence of the National Asset Management Agency (NAMA). “All we’re asking from people like NAMA is to be fair and open and transparent with the borrower. They are a bank and they are supposed to be working with the borrowers. We’re seeing in many cases the opposite of that, which is worrying,” he comments. One of the biggest issues Devine sees for the year ahead is zombie companies. He defines “zombies” as trading business who, while still doing well in their core business, are having profits drained away from them by banks to pay for associated loans on property which the company’s directors perhaps took out to develop land as a sideline during the property market boom. He sites Patton Construction as a prime example of a firm which was trading relatively well but was pulled down by the sharp drop in the value of the property assets it had invested in. “There is a huge issue at the moment with zombie companies, they are all over Northern Ireland. Those associated loans mean they can’t invest, can’t reinvigorate, can’t grow,” says Conor. “It is like an illness nobody talks about. There are nine counties in Ulster, seven in Northern Ireland, and every county has tens if not hundreds of these zombie companies. There will come a time when those property loans will become unserviceable. It can all be solved by engagement and settlement but that means pain for the bank as well as the borrower.”
MAY 2013 29
BUSINESS FINANCE & BANKING
Don’t Stop Believin’ Grow NI’s Eamonn Donaghy believes that despite more setbacks, now is not the time for business leaders to give up on the campaign to gain corporation tax varying powers for Northern Ireland.
O
n Tuesday 26 March, David Cameron announced that he would defer making a decision on whether to devolve corporation tax rate varying powers to the Northern Ireland Assembly until after the Scottish Referendum in September 2014. Having promised and then delivered a Treasury Consultation on this key economic policy for Northern Ireland, and then taken a further 12 months to go through a Joint Ministerial Working Group, it almost beggars belief that a further 18 month delay has arisen. What is particularly galling is the fact that all of the key technical, legal and economic arguments have in effect been accepted in relation to this issue. Indeed it is hardly surprising that a Government which has reduced the corporation rate in the whole of the United Kingdom from 28% to 20% should be supportive of a policy which would enable a reduction in corporation tax as a means of rebalancing the Northern Ireland economy. However, it is clear that economic and fiscal arguments are not really in play here. What is in play is a referendum in Scotland which is of such importance to the current Government that the future of the Northern Ireland economy must remain a hostage to fortune whilst another part of the United Kingdom takes precedence. One does not have to be very cynical to feel that the people in Northern Ireland are not being treated as equal citizens of the United Kingdom in this case. So what can be done whilst we await the outcome of the Scottish independence referendum? Well if some commentators are to be given credence, we should just “pack up our kit bag” and forget about all of the hard work which has taken place over the last decade
because in their view there is no chance of this policy ever being delivered. Thankfully, those commentators only report the news rather than make it. The correct and indeed only approach that Northern Ireland business can take is to keep pressing this issue very strongly. Indeed, all of the business organisations that make up Grow NI, which represents over 200,000 workers in Northern Ireland, have indicated that they wish to continue to support our local political parties in seeking to obtain the necessary tax varying powers. Unfortunately neither the support of most of the Northern Ireland business community nor the five main Northern Ireland political parties can vary the corporation tax rate in Northern Ireland unless and until the Government at Westminster provides the necessary tax varying powers. Whilst the delay has been very frustrating, we do have a clear commitment from the Government to make a final decision in the autumn of 2014. It is also clear that the Government is highly unlikely to say no on the basis that the vast majority of Northern Ireland business and all of the main political parties have indicated that not only do they wish to have these tax varying powers but are also prepared to pay the necessary price required by EU law in the form of a reduction in the block grant. A failure by the Westminster Government to provide tax varying powers would in effect be a denial of economic rights to the people of Northern Ireland. It is clear that between now and September 2014 a significant amount of preparatory work needs to be carried out in advance of the Prime Minister’s final decision on this issue. To that
“THE CORRECT AND INDEED ONLY APPROACH THAT NORTHERN IRELAND BUSINESS CAN TAKE IS TO KEEP PRESSING THIS ISSUE VERY STRONGLY.” 30 MAY 2013
extent, Northern Ireland business must work with the main political parties and the NI Civil Service to ensure that, following delivery of a positive decision by the Prime Minister, the necessary legislation is passed prior to the dissolution of Parliament in March 2015 in advance of the General Election. The timescale will be very tight, the scope for slippage is very limited and the political machinations will be complicated. However, for something that is as important as the future of Northern Ireland’s economy, it is incumbent on all those who wish to see a brighter future for Northern Ireland to make every effort to ensure a successful delivery of tax varying powers to the Northern Ireland Assembly. This issue is just too important to fail!
BUSINESS FINANCE & BANKING
Are we out of the woods yet? A
n ever present question in the current market place is ‘Are we on the Road to Recovery’? Whilst this cannot be answered with a simple ‘yes’ or a ‘no’ response, it is worth highlighting some recent trends, which provide initial signs of optimism going forward and more importantly steps the business community can take to maximise their part in the recovery process. If we look at the Belfast Gazette for Company Administrations, Administrative Receiverships and Liquidations there is a significant disparity with 36 appointments made in 2013 to the end of March compared to 69 for the same period in 2012.
commencing pre-emptive Business plan/ Independent Business Reviews to give an existing/potential funder further comfort. Any support will be predicated on an entity presenting a strong viable performance going forward.
Michael Jennings
Get your Business Back on Track The businesses we have recently been involved with tend to be property based with entities over leveraged from pre 2007. For the incumbent bank, this makes it difficult to continue to fund a struggling business and provide additional support when the current market lending criteria simply does not apply. The question that a bank faces is whether they risk advancing monies to maintain the viability of the entity. This is an all too familiar situation for many SME’s and banking institutions in Northern Ireland... so what can be done to address this situation? Possible consideration could be the new Government schemes, such as the recently introduced Business Bank, which will help provide a much needed boost to smaller SME’s struggling to access finance. A growing trend has been businesses
David Warnock
Independent Business Review (IBR) An IBR not only provides comfort to the Bank but can also present a number of options for a business, which may not have previously been considered. In some instances the answer for funding may already be there. We set out in the following table some of the solutions that when implemented correctly can help ensure the sustainability of a business. Conclusion Financial institutions are showing an increased appetite for lending, backed by the Government’s ongoing attempts to get liquidity back into our markets. But is it getting there quick enough? In our view, many Northern Ireland businesses are very much on the ‘Road to Recovery’, but more and more entities are having to adapt to the changing market conditions, be more creative in their thinking and have a greater awareness of the suite of options that may be available to ensure their ongoing viability. Michael Jennings is a Business Restructuring Partner at BDO and David Warnock is a Business Restructuring Manager at BDO. Both Michael and David can be contacted on 028 9043 9009 or michael. jennings@bdo.co.uk and david.warnock@bdo.co.uk
OPTIONS
KEY AREAS TO CONSIDER
Business Austerity Measures
• Cost savings including managed employee restructuring. • Mothballing non essential divisions and focusing on more profitable income streams. • Disposal of unencumbered non-core assets.
Working Capital Stretch
• Negotiations with Landlords/Rates agency and trade creditors in respect of payment plans to extend credit terms. • Time to pay arrangements with HMRC.
Asset Based Lending/Equity Finance
• Invoice discounting facilities
Short-Term Funding Support from Banks
• Temporary overdraft facilities to meet short term funding gaps. • Capital Moratorium options with incumbent bank to effect improved cash flows.
Trade Refinance
• Other institutions may consider a refinance, however current lending criteria is restrictive at 4-5 times profit levels (EBITDA). • A rebalance of the property debt to current values may be necessary to allow the business to continue funding capital and interest.
Company Voluntary Arrangements
• Provides a formal payment schedule with Creditors over an extended period to ease cash flow pressures in the short term. • Requirement to obtain 75% support from Creditors – HMRC and other large creditors will be key. • Consideration needs to be given post CVA to paying creditors on a proforma basis and whether the projected cash flows of the business can sustain this.
32 MAY 2013
• Stock facilities
• Private Equity
• Mezzanine Finance
BUSINESS FINANCE & BANKING
Happy New Year... tax year that is By Glenn Branney, Chartered Financial Planner, Barclays Wealth & Investment Management.
W
ith the last minute rush to utilise your annual allowances and submit returns well and truly behind you, it’s on to 2013/14 and what better time to fulfil that main tax year end resolution you no doubt made to yourself... to utilise your available allowances in 2013! “If you always do what you’ve always done, you’ll always get what you’ve always got.” Henry Ford, founder of the Ford Motor Company. As we embrace the changes set out in the Chancellor’s budget announcement on 20th March, this really is the perfect time to review your financial plan and implement your personal strategy, taking advantage of all available opportunities in the 2013/14 tax year. Some key points for you to consider: Income Tax Following much speculation, the 2012 budget announcement confirmed that the additional rate of Income Tax would be reduced from 50% to 45% for individuals who are high earners, a change that took effect from the 6th April 2013. This is a change that will be welcomed by high earning individuals i.e. those earning over £150,000 of taxable income in a tax year. For 2013/14, a £1,335 increase in the personal allowance (the amount of income an individual can earn tax free in a tax year) to £9,440 is a further step closer to the Government’s long term ambition in achieving a standard personal allowance for all tax payers of £10,000, a change which has been brought forward to 6th April 2014. However, the change in personal allowance has again been met with a reduction in the basic rate band from £34,370 to £32,010 meaning
higher rate tax will become payable once income reaches £41,450 (£42,475 in the 2012/13 tax year). From April 2014 however, whilst the basic rate band will be further reduced to £31,865, the accelerated increase in the personal allowance will result in a net 1% increase to the basic rate band threshold (the level above which higher rate tax will become payable), to £41,865. Pension Planning Since the announcement in the Autumn Statement 2012 it has been no surprise that from the 2014/15 tax year the pension annual allowance (the maximum amount of tax relieved pension contributions that can be made in a tax year) reduces from £50,000 to £40,000. Carry forward continues, but the new £40,000 allowance will soon start to limit what can be paid. This creates a clear call to action for those clients affected to review their pension funding and seek financial advice. The Lifetime allowance i.e. the maximum your pensions pots can grow across your lifetime without incurring a tax charge, will decrease from the current £1.5m to £1.25m from 6th April 2014. However it will be possible to apply for ‘fixed protection 2014’ if an individual is already over the £1.25 million limit, or think they will be by the time they take their pension benefit. The conditions to maintain this fixed protection mean that individuals must ensure that no further pension contributions are received into defined contribution schemes on or after 6th April 2014 and individuals in defined benefit schemes must not accrue benefits above a relevant percentage from this date.
Investment Planning For both higher rate taxpayers and additional rate taxpayers, the need remains to consider tax efficient savings such as ISAs, pensions, offshore bonds, Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCT) as a core element of your financial plans. Investments into a qualifying EIS or VCT continue to provide income tax relief at 30% with the maximum permitted investment per tax year maintained at £1m for EIS and £200,000 for VCT. The 30% relief is against the amount of tax due in a tax year – this means that to obtain the full benefit of this relief you must have paid/ be due to pay an equivalent amount of tax in that tax year. For EIS investments it may be possible to “carry back” to the previous tax year, allowing you to obtain tax relief in the previous tax year. In addition to the tax advantages it should be remembered that EIS and VCT investments are high risk. You can lose some or all of the investment that you make. CGT annual exemption For those looking to realise capital gains, whilst no changes in the capital gains tax regime were announced, the annual CGT allowance has increased by £300 to £10,900 with a further increase to £11,000 set for 6th April 2014. In summary With a fresh tax year there are fresh opportunities, however the key to ensure maximum effect is implementing these opportunities in conjunction with your tax advisors. At Barclays Wealth & Investment Management, our dedicated Wealth Advisors can help you make informed decisions about your financial future. We will work with you and your tax/legal experts to build a tailored financial plan based on your financial goals and help put that plan into action. Barclays does not provide tax advice and the tax treatment described above is subject to your personal circumstances.We therefore recommend that you obtain independent tax advice tailored to your needs. Glenn Branney can be contacted at the Barclays office in Belfast by email: glenn.branney@barclays.com or Tel: 028 9088 2925
MAY 2013 33
VIEWPOINT
Obstacles to overcome As Mervyn McCall, Chairman of Institute of Directors (IoD), Northern Ireland nears the end of his tenure he gives Ulster Business his views on the highs and lows as head of the province’s largest business leaders’ organisation.
W
hen I was appointed IoD Chairman, I was all too aware of the obstacles facing companies here because of our high business taxes and lack of a business-friendly environment. It pains me to say that, two years on, it is the very same near impossible hurdles that Northern Ireland companies come up against today. Business leaders could be forgiven for thinking we live in a time warp. We were told by the Executive that the economy would be centre stage but we have seen little evidence of this promise. The tribal politics of the past continues to dominate the corridors of Stormont and no real initiatives to kick start our economy have materialised. In a recent interview John Cunningham, Chief Executive of Camlin Group, said if the Stormont Executive were a business, they would be insolvent: “They’ve had time, they’ve had the money, they’ve had the opportunity - they’d be bankrupt.” John Cunningham isn’t a lone voice in the wilderness - this is how the business community feels. It’s time Stormont woke up and smelt the dire situation and acted accordingly.
Puppet on A string Northern Ireland is essentially crippled by issues of competitiveness, particularly the corporation tax gap between here and the Republic. I might sound like a broken record but I was thoroughly disappointed by the recent decision to defer any announcement. At the time I used the term “on the road to nowhere” and I know this is how many, if not all, the members of the IoD felt. I have spoken to countless business leaders about corporation tax and they all share the same disillusionment and dissatisfaction. We feel that we have been led a merry dance by the Secretary of State and by the Prime Minister. That said, I still believe it is a possibility and, while it is, we shouldn’t give up.
34 MAY 2013
It will kick start the economy, create jobs, attract foreign investment and cease the sad sight of countless numbers of our talented young people leaving these shores in search of employment. a ‘no-go’ area The flags issue aside, which undoubtedly did huge damage to Northern Ireland’s reputation internationally, the red tape of bureaucracy has stifled our ability to prosper. Northern Ireland’s planning system is one of the most frustrating, and certainly most unappealing, aspects of doing business here. The Assembly ought to recognise that we must have a planning system that understands and gives due weight to decisions that show economic benefit, provides answers in a timely manner and narrows the opportunity for legal challenge. I have talked to many foreign investors who already deem Northern Ireland a ‘no-go’ area, which again is costing us dear. World-class talent There have been many high points during my time as Chair, none more so than seeing record numbers of our hugely talented directors pass through the Chartered Director Programme, and their representation at the national IoD Director of the Year Awards. It demonstrates that Northern Ireland continues to produce business men and women of the highest calibre, typified by non-executive Director of UTV Media plc, Helen Kirkpatrick, who recently won the Institute of Director’s Lunn’s Award of Excellence. We have talent that can compete on a world stage and must look abroad to flourish.
invests heavily in the right markets. If Government is serious about helping local companies, then businesses need more help from Invest NI in supporting sales costs. It is vital our political leaders help firms to invest in growth to drive their companies into new markets. However, the majority of our politicians are stuck in the past, transfixed with cheap point scoring rather than effective leadership. Over the past two years I have had the pleasure to lobby on behalf of IoD members and I leave as Chairman of a business group which is thriving. I’m delighted to have led a group that promotes best practice and good corporate governance across all sectors of society, and one which is for all directors, young and old. I’m proud to have been a part of a progressive, inspiring and welcoming organisation. It is only together that we can manipulate meaningful change and the IoD will continue to battle, no matter the odds, on behalf of business leaders to drive growth for the region.
Export to success The most successful companies in Northern Ireland are those that export, except for those businesses which cannot logistically. My former company, Mivan, has succeeded in exporting because it
Paul Terrington, the Northern Ireland Regional Chairman of PricewaterhouseCoopers (PwC) will succeed Mervyn McCall as Chairman of the IoD following the IoD AGM which takes place at the MAC on 15 May 2013.
18 Boucher Way, Belfast BT12 6RE www.agnewcorporate.co.uk
109495_tease_and_revealv4.indd 5
04/02/2013 09:45
Neal Lucas meets... Neal Lucas, Managing Director of the leading executive search and selection company Neal Lucas Recruitment, continues to talk to the HR Directors behind some of Northern Ireland’s leading companies in this popular Ulster Business series. This month Neal meets Laura Hourican from Firstsource. What are the key aims for Firstsource over the next five years? What challenges do these aims present to HR as a function? Firstsource Solutions is a global Business Process Outsourcing (BPO) company specialising in customer management services for leading UK brands. It is one of the UK’s top ten contact centre providers with four contact centres in Belfast and Derry, employing 2,365 people across the province. Our aim is to become one of the top two providers in our market segment and become an employer of choice. HR has an important role to play in this development as we contribute to building a brand that employees aspire to work for. What impact does HR have on the wider Firstsource business strategy? HR feeds into the business strategy from the outset, as it is integral to attracting and retaining talent across the sites. Firstsource differs from other contact centre providers because as a company we are committed to offering opportunities to employees, which help to create meaningful career paths. In the last year the HR team have introduced a number of innovative schemes to benefit both employees and the business. Home working was introduced last year to expand diversity within the workforce. It enables people who have difficulty travelling to the office or who have childcare or dependents responsibilities, to work more easily. We offer more home-working opportunities than any other Northern Ireland contact centre provider with over 150 employees
opting to be home-based at the moment. Other flexible working schemes such as Term Time, Flexible Working and Back to School have enabled Firstsource to continue to provide excellent service to clients, boost motivation and reduce attrition rates and absenteeism.
piloted here before roll out to other regions. Being part of a wider group in turn offers excellent opportunities for career progression, empowerment and experience in a wide range of disciplines like finance, operations, IT, HR and workforce management.
What are the key inhibitors to you implementing this strategy? It is not so much what inhibits us but it is about getting the right balance. When moving to an organisation people assess the company, the job suitability, location, development opportunities and so on. In the HR department, we in turn need to continually review these factors and improve to set the company apart from competitors.
What sort of culture do you try to create for your employees and how do you go about sustaining this? I am often asked when interviewing candidates to describe the culture at Firstsource, in short one of our six values is ‘People Centricity’, and our culture is centred on this core value. We are a people business, everything the organisation does has to have our employees at the centre of it and we like to have some fun on the way!
How do you motivate your own team in delivering your HR strategy? I am very fortunate to have a great team at Firstsource who are all highly driven, have passion for what they do and are extremely motivated. I feel that it is always important to empower employees and give them ownership and responsibility to deliver results to the best of their ability. What impact does the wider Firstsource Group have on the site in Northern Ireland? In Northern Ireland we employee 2,365 people across four centres. The growth we have experienced over the past six years shows the value that Northern Ireland has to offer a global organisation. In fact, many of our innovative strategies and CSR schemes are
FACTFILE
Name: Laura Hourican Title: Head of HR UK & Ireland Company: Firstsource Solutions Years in Post: 6.5 No. of Employees: 4,500 in UK with 30,000
globally. Best Thing About My Job: Variety and challenges, no two days are the same. Previous Jobs: Before my role in HR I worked for seven years in retail and leisure. Key Reponsibilities: Strategic and operational HR delivery, which covers 4,500 employees across eight delivery centres in UK & Ireland.
www.neallucasrecruitment.com – Neal can be found on Facebook and followed on Twitter (@NealLucasRec)
That’s about the only answer you won’t get from Agnew Fleet Manager. From reduced paperwork to bespoke reporting – we have the solution.
Want to know how to save time, money and take control of managing your fleet? Then Agnew Fleet Manager is the answer. It brings everything you need together – all at the touch of a button. Pair this with our competitive rentals and find out how Agnew Corporate is the complete fleet solution. Call us on: 028 9038 6600 Take control today - we’d be happy to give you a full demonstration of how Agnew Fleet Manager could benefit you.
18 Boucher Way, Belfast BT12 6RE www.agnewcorporate.co.uk
109495_tease_and_revealv4.indd 6
04/02/2013 09:46
PROFILE
Championing the SME sector Moira Burke, Chief Operating Officer at Exploristics, is the third of the alumni to be profiled in our “Ulster Business School – Leaders In Business” series.
Moira Burke, Burke Business Solutions Ltd; COO Exploristics; Co-Founder of Bio-Kinetic Europe; Entrepreneur ; Member of the Advisory Board for the Centre for SME Development at the Ulster Business School, University of Ulster
What is your current role and why does it appeal to you? I work currently as a consultant providing assistance and advice to a variety of Northern Irish companies. Invest NI run a Business Improvement Programme that companies can utilise to access expertise. This can be in the form of an interim management role, a mentoring role or indeed as a non executive director. I am working with two to three clients at any one time typically, and find the variety of people, products, services, sectors and markets very challenging and refreshing. This consultancy work is in addition to my role as Chief Operating Officer of Exploristics Ltd, a company founded and led by Dr Aiden Flynn, that provides expertise in statistical analysis
and modelling with a particular emphasis in the field of biomarkers. We are developing a unique simulation platform that will enable informed decision-making and optimisation across drug discovery and development. The company employs highly skilled statisticians, almost all qualified to PhD level, who serve our international client base with great ability and astute guidance. Both roles involve working closely with clients, something that I enjoy very much. What is the most rewarding part of your job? One of the main reasons I work in this field is because I relish job creation. Working with some of Northern Ireland’s fastest growing, most innovative companies allows me to facilitate the creation of knowledge intensive, high quality jobs here in our province. I am a great proponent of Northern Ireland and very much enjoy broadcasting our greatness at every opportunity. What is your own educational background? I graduated from what was then the Ulster Polytechnic, now the University of Ulster, with a BSc Honours in Psychology before training as a Registered Nurse at the Royal Victoria Hospital. I completed the Women in Enterprise programme at the Ulster Business School in 1995 before founding BioKinetic Europe in 1996. Since then I have completed an MSc in Corporate Leadership and attended Harvard
38 MAY 2013
Law School to participate in their Negotiation Skills course. What training, education, qualifications are required for your type of work? I believe my varied educational background and the experience of running my own company, with my business partners, for almost 15 years allows me to have some unique insights into how Northern Irish SMEs operate. I am able to draw on my personal experience of building high performance teams and dealing with an international client base and export markets to give solid advice. Having a balanced view is important, as is the ability to listen and really hear what my clients are saying. Do you have any current links with the Ulster Business School now, and if so, how valuable are these in your day to day work? I was invited recently to join the Advisory Board of the new Centre for SME Development and am excited to be involved in a venture that plans to serve the educational needs of a sector that is very close to my heart. SMEs form the backbone of the Northern Irish economy and we need to ensure that their leaders are adequately equipped with the skills that will allow them to compete and succeed on a global scale. The Ulster Business School has recognised the need to provide relevant training for this sector and having access to the Centre will be a real bonus to my clients.
Branding & Marketing
BRANDING & MARKETING
Ask the Audience Sensum is a new platform which measures audience engagement through tiny physiological changes. Symon Ross spoke with its co-creator, Gawain Morrison, for an insight into how it works and who is going to use it.
T
est screenings of television shows, films and advertising campaigns have for years relied on traditional surveys of audience members. The answers given by those focus groups, while undoubtedly useful, are guaranteed to be subjective and open to influences that may not give an accurate reflection of the person’s true responses and reactions. But that old model could be about to change if technology developed by an innovative Belfast company continues to gain traction among those at the forefront of the branding and advertising industries. Sensum is a mobile cloud-based emotional response platform designed to improve media effectiveness by capturing small changes in physiological information and transmitting that information to an app that displays on an interactive dashboard. It is, at a simple level, a form of lie detector test that uses sensors fixed to an audience member’s finger and wrist to measure their galvanic response – the changes in the ability of the skin to conduct electricity caused by emotional stimulus. Measuring these minute fluctuations in sweat levels at a micro voltage level, the Sensum platform wirelessly uploads the readings and
40 MAY 2013
lets users see the response to key moments, such as a controversial scene in a film or a product placement, on the cloud based dashboard. Combing the leading-edge emotional response technology and proven research tools, it aims to give clients a deeper engagement with their audiences. The platform can be used by those looking to ensure their brand resonates with customers; to enhance market research by reporting on the physiology and demographics of user data for focused audience tests; to gain true feedback for TV pilots that help identify a target demographic and programming slot; or even to test various cuts of films before general release to gauge audience reaction. Sensum is the brainchild of Gawain Morrison and Shane McCourt, co-owners of interactive cross-platform media production company Filmtrip. It was developed from an interactive short film called Unsound that was screened at the SouthbySouthWest festival in Austin, Texas in 2011. While making the horror film – which used the responses of members of the audience wearing sensors to alter elements of the film – they decided there was huge potential to apply the audience testing technology elsewhere. “The way I look at it is that we are all moving
to the age of physiology with more and more applications of mobile and wearable technology and feedback tools,” says Gawain, speaking at the company’s office in Blick Studios on the Malone Road. “There’s no-one we’ve shown this to who hasn’t got it. People are just not sure yet how to apply it and that’s what we’re working on. People are only now getting a handle on twitter and integrating it into their strategy, so to see where we’re taking audience insight kind of freaks a lot of people out.” Filmtrip has long history of innovation that is ahead of the curve – sometimes too far ahead of the curve for the Northern Ireland market. It was working on QR codes as far back as 2007 and couldn’t get the idea to catch on and was also one of first in Northern Ireland to do cultural tourism apps before funding was really being channelled in that direction. “We’ve learned from that and gone straight to source this time around. We also have the contacts to do something about it this time, which we maybe didn’t when we were a younger company,” explains Gawain. “We realised that only companies that have audience insight teams or use audience insight data would come to the table early for this. We
BRANDING & MARKETING
could take Sensum in any number of directions, it could be applied everywhere, but the first users will be that top 10% of media market research companies.” The biggest interest in Sensum to date has been in the market research and broadcast space and Gawain is talking to the likes of Ogilvy, Kantar and Sky, which has one of the largest marketing budgets in the UK. Part of the attraction is that Sensum’s platform can look at advertising and get an audience reaction at the storyboard or concept level of a campaign, which may tell the client it only needs one campaign rather than five to get the desired reaction. “We’re bringing core science to something that has had no matrix,” says Gawain. “That is both of huge interest to advertising and marketing agencies, and a threat to the model they have been offering of ‘trust us we know what we’re talking about’. Clients are asking for it and customers are aware of it, so at some point the agencies might get side-stepped if they don’t buy into it.” While the main advertising agencies in the domestic market aren’t on to Sensum yet, the company has received strong local support. Backing from the Arts Council’s Creative Industries Innovation Fund, Belfast City Council and Invest NI’s innovation vouchers helped the firm develop a prototype which it launched earlier this year. It was shortlisted for the Smart UK Project and recognised as one of the 20 most innovative mobile products in the UK and the product was presented at the Back to the Future 2023 event at the Mobile World Congress in Barcelona. That created a huge amount of media buzz, gaining the company’s technology coverage in New Scientist, Channel 4 and the BBC, among others, and gave Morrison and his team a platform to get a foot in the door of some big players in the advertising space. Adding credence to its technology is a partnership with Irish firm Shimmer Research, which has given Sensum exclusive use of its real-time Galvanic Skin Response skin sensors – medical grade hardware – in the entertainment space. “They took a punt on us that they didn’t need to, but they realised that if it works for us it would be a win for them too,” says Gawain. He acknowledges there are challenges in bringing something which is disruptive to the status quo into the market, not least the ethical issues around the data that is collected. A large section of the public was outraged when they realised the pioneering companies in the social media space could offer their services for free because they sold your data. Gawain elaborates: “With physiological data you have questions around whether it becomes our responsibility to tell someone, for example, that they have an arrhythmia. But at the same time the data is anonymous so you can see the demographic response but can’t work out who it is from, not from our system. “Also UK data protection laws relating to physiology are different in the EU, the US,
Gawain Morrison
China. So there are some potential complicated legal and technological clashes, particularly as it is available in the cloud. If you are running a test in one location, you have to meet the data protection laws there.” To limit that exposure Sensum is focusing on the business-to-business market so that a lot is locked down in terms of who has access to data and what they can do with it. It is currently undertaking beta trials with major clients to see where they want to take it, which Gawain estimates will probably last three to six months. The aim is to establish a pricing model that would not make the cost prohibitive and allow high volume of use, while at the same time maintaining strong turnover. That’s important because the cost of the cloud side of the business could be “mammoth” because of the high volume of data usage, he says. But that same cloud technology means Sensum can run anywhere on the planet and be monitored on the app.
“The audience insight guys are already using statistical data from twitter etc and are now looking for those small efficiencies. They are all looking for something mobile because all current testing is being done in the lab, which isn’t really replicating how people consume media. We’re bringing the lab to the home, the cinema, the bus, wherever the media is being watched,” says Gawain. Two potential competitors to Sensum have emerged from top US university MIT who have ideas to take their companies in the same direction, but who, according to Morrison, don’t have the technology yet. Sensum has raised a first round of finance and is in the process of raising second round from both venture capitalist and government backed funding. “We’ve been knocking on a lot of doors over the last 18 months, but momentum is starting to pick up,” says Gawain. “We’ve got to move fast if we don’t want to be overtaken.”
MAY 2013 41
BRANDING & MARKETING
RepKnight tracking new markets Drumbo-based data monitoring technology company RepKnight is investing almost £1m to research, develop and market its technology in new export markets.
T
he company is a specialist in open source data monitoring, providing in real time both sentiment analysis, which determines if online data is positive or negative in tone, and geographical analysis of where the data originated. This allows analysts in the public and private sectors to identify threats and emerging events, as well as providing an immediate global or local view of public opinion on key issues. The investment of £974,000, backed by Invest NI, will enable the company to refine elements of its technology to make it a more competitive product in new markets such as the Middle East and the US. Invest NI has offered around £340,000 to RepKnight for R&D and an additional £89,000 for export marketing activities. The company has also received an Innovation Voucher worth £4,000 to access expertise from the University of Ulster. John Reid, CEO of RepKnight (pictured) said:
“Increasing volumes of open source intelligence data mean that the problem of surfacing actionable insights is growing. At RepKnight, we identified the need for an effective, efficient and adaptable piece of technology that would deliver to intelligence analysts the data sets that they need in real time. “The UK market has been our primary target to date but we have identified several significant opportunities in the Middle East and the US, which offer rapid and significant growth potential. To realise this potential we must continually develop and enhance our existing technology to include more sophisticated data harvesting and visualisation. “Our product is unique, and the support from Invest NI will help ensure that we have the capability to take full advantage of new business and continue to develop our reputation in the security sector.”
Mango ripe for jobs fund expansion Telemarketing and customer services company Mango Direct Marketing has announced plans to create 55 new jobs after receiving support from Invest NI’s Jobs Fund.
T
he Bangor based company works for a range of clients based locally, nationally and internationally, including several high profile companies in the UK, US, Australia, Ireland and Israel. Mango said it has achieved year on year growth since its establishment in 2008 and the continued
customer demand for its services, among several large home shopping and charity organisations, has prompted the company to expand its workforce. Invest NI has offered Mango Direct Marketing £165,000 of support through the Jobs Fund to assist with its expansion.
Enterprise Minister Arlene Foster with Stuart Lally, Managing Director of Mango Direct
42 MAY 2013
Stuart Lally, Managing Director of Mango Direct Marketing, said: “Our strategy for growth includes investing in our current staff training programs and company structures whilst also increasing our share of the niche markets in which we currently work. Support from Invest NI through the Jobs Fund will also enable us to put in place the staff we need to take advantage of new business opportunities in the corporate sector and cement our competitive position in key markets.” Announcing the new jobs during a visit to the company, Enterprise Minister Arlene Foster said: “Mango is a successful business that has achieved a steady increase in sales over the past five years. This expansion is an important progression in the next stage of Mango’s development and signals the company’s ongoing commitment to the local area. “The jobs are being supported by Invest NI Jobs Fund and will enable Mango to take on major new contracts in its key target markets. The business services sector is an important driver for the economy and it is encouraging to see companies investing in growth even in these difficult times.” By 2014 Invest NI aims to have supported the creation of 4,000 jobs through this measure, which is part of its Boosting Business initiative.
BRANDING & MARKETING
Titanic Belfast surpasses visitor targets
T
he Titanic Belfast exhibition centre has exceeded all expectations by attracting over 800,000 visitors in its first year – nearly double the target its operators were set. The World’s Largest Titanic Visitor Experience, which opened on March 31, 2012 to coincide with the 100th anniversary of RMS Titanic’s maiden voyage said that by the same date this year, some 807,340 people had visited the iconic visitor attraction. Proving the far-reaching power of the Titanic brand and the appetite for its story to be told at the birthplace of the great liner, Titanic Belfast said it had welcomed visitors from 128 countries, with 471,702 coming from outside of Northern Ireland. Titanic Belfast said its success had led to £54.3m of direct and indirect tourist spend in Belfast last year and noted that in 2012 alone 55,000 guests had attended more than 350 events. At present 304 people work at Titanic Belfast. Chief executive Tim Husbands said: “The numbers have exceeded everyone’s expectations, particularly the National Audit projections of 290,000 visitors. We were initially set a target of 425,000 visitors and we have reached 800,000 by the completion of our first year. “This is an extremely satisfying figure for us, but it doesn’t allow for complacency. We are already looking to the challenges we will face in years two-to-five. As a team we are aiming to cement the relationship between Titanic and Belfast and build on the profile that our launch year has provided.” He added: “64% of our visitors are coming
from outside of Northern Ireland, and 30% are from the Republic of Ireland, which is a route of traffic not normally so sustained. 60% of our visitors only come to Belfast because Titanic Belfast is here and the impact of this is hugely significant.” “There are many challenges that now lie ahead of us and we relish the opportunity to take them on. We have set the standard for the tourism industry and for the corporate industry,
and we aim to remain the standard-bearer for our shared community hopes and ambitions for Belfast and Northern Ireland.” Elsewhere, Titanic Quarter was highly commended in the regeneration category of the UK-wide Property Week Awards. The Belfast development was the only non-English finalist at the awards, coming ahead of schemes such as London’s new Olympic Park and Wembley City, an 85-acre redevelopment beside the stadium.
Comms man earns Power Book listing T he Communications Manager at Belfast-based utility company Phoenix Natural Gas has been named in the UK’s most definitive guide to influential figures in the Public Relations industry. Simon Little is the only PR professional in Northern Ireland to be included this year in the 2013 PR Power Book, which is published annually by industry magazine PR Week. PR Week Associate Editor Kate Magee said those included in this year’s listing had to meet strict criteria. She commented: “They have to be a proven leader within their field, with demonstrable power, influence and budgetary clout”.
44 MAY 2013
Simon has been with Phoenix for eight years and manages the company’s public relations, public affairs, marketing and CSR work. He said: “The PR and communications industry in Northern Ireland has a wealth of talented in-house and agency professionals. But despite this perhaps we collectively could be doing a better job at showcasing the work the industry does here. This is something the Chartered Institute of Public Relations locally is currently looking at. “At Phoenix we place great importance on engagement with our many stakeholders through regular communications activities.”
Johnsons Coffee celebrate 100 years of coffee excellence
T
he year 2013 is a landmark year for local company Johnson Brothers (Belfast) Limited. While the fourth generation family-owned company celebrated a century in business back in 1993, it can now boast 100 years of local coffee roasting. In fact, Johnsons is Ireland’s oldest family owned coffee roasting company. From the company’s inception in 1893 through the early years of the 1900’s, Henry & Robert Johnson imported and sold fine groceries and pharmaceutical products. Their first experience within the coffee market was in 1910 when a sales agency was agreed for a liquid coffee essence branded “KIT”, a brand produced by the brother of “CAMP” coffee. After a few successful years, and with the encouragement and advice from the folk at Kit coffee, the Johnson brothers decided to manufacture a product locally. And so, in 1913, IREL Coffee was launched. Like the product formerly sold, Irel (first four letters of Ireland) was a liquid coffee essence, pre sweetened with added sugar. The product was an immediate suucess and initial experience and shrewd judgement formed a brand ethos for quality and this transferred across to Irel whole bean and ground coffees which extended the range. Quality of product was the driving force behind the brand. High grown 100% arabica coffees were sourced from the main coffee producing continents and imported into Belfast for blending and roasting. However, from the very beginning, the Johnson family were aware that quality service did not end at the production stage: “We realise the responsibility of roasting; we have to father the coffee into every cup” said Robert Johnson in 1916. As the great depression impacted upon the global economy, DP Johnson, second generation management, developed sales of
Philip Mills, Group Sales Director, Johnsons Coffee
the range beyond the hitherto grocery sector into the hotel and cafe outlets of Belfast and beyond. It was not uncommon for foodservice outlets to buy many weeks supply on a single delivery due to the logistical difficulties of the time, and the third generation of Michael and Patrick Johnson saw this as an opportunity for improved product quality. The vacuum packed coffee tin that allowed the consumer to enjoy fresh coffee long after purchase was introduced, a feature also found on the later form fill oxygen free valve pack – the first of its kind in the UK and Ireland. With the Irel brand having long been replaced with the “Johnsons” named pack, various blends were sold into grocery and foodservice with the addition of machinery and brand support. However, growth has accelerated greatly during the last 25 years as demand for specialty coffee has grown. Current generation Johnson Brothers, Dermot and Andrew, have developed the brand through four packaging re-designs in recent years. Further, the
development of Bellagio Espresso as the number one choice within food outlets and more recently grocery, has seen the volume produced at the Lisburn roasting plant grow. Coffees are still imported from the major quality coffee producing continents, but a much greater range is now available as the marketplace has become much more discerning. Individual regions and estates now supply hand selected beans, with relationships having been developed with growers who now know the quality and cup profile demanded for use in Johnsons brands. However, supply to the hospitality sector is no longer a simple coffee delivery, as group sales director Philip Mills explains: “We now offer a comprehensive package including filter and espresso brewing equipment, maintenance service, barista training, account sales management and marketing brand support. Sales across Ireland are now complimented by a growing customer base in Scotland, England and the Isle of Man; all customers enjoying the experience derived from 100 years of true excellence in coffee.” Indeed, sales have grown too in far off lands with the original IREL brand being relaunched as an export brand in 2005. This has been sold into various independent grocery chains in the USA, from the Mid West to the Eastern Seaboard, plus the Dubai consumer can now enjoy the Johnsons brand. In 2012 Johnsons Coffee was awarded gold in the Great Taste awards by the Guild of Master Foods.
BRANDING & MARKETING
Re-branding a household name When a household name like Maud’s Ice Cream, which has been an established family business for over 30 years, needs to go through a re-brand to bring it up-to-date, it can be a daunting prospect. David Wilson explains how the company, founded by his late father, approached the process.
I
t was a bright summer’s day in 1982 when my father John Wilson first perfected our ice cream recipe using the best quality, freshest milk and cream we could find from local dairy herds. He started off selling it from our family grocers and when he realised the queue was out the door, he knew we needed a proper name for it. The head of the business at that time was a very sweet lady called Maud (my grandmother), and so he named it after her. He employed the services of a very talented sugar boiler called Jackie who perfected our special recipe honeycomb that goes just gooey enough to make our Poor Bear sticky and crunchy in equal measures and our super melty fudge, both of which we still make from scratch every week. We also started to source the finest chocolate from Belgium, becoming trained chocolatiers along the way, and found the best people to join the Maud’s Squad, most of whom are still with us today. Over the years we’ve travelled all round the world, bringing back some of the best fruit and herb essences we could find, adding them to our ice creams and sorbets and selling them through our growing number of cafes and parlours owned by an ever growing army of ice cream obsessives just like us. So far, Maud’s has won a whopping 129 awards
46 MAY 2013
and is sold in hundreds of outlets right across the island of Ireland (and even in a little town in Spain). We’re really proud of how our recipe hasn’t changed in all these years and how we have never compromised the quality of our ingredients. When we retained local brand experts Triplicate in 2012 to take the business to the next level they came up with a vibrant new logo and visual personality along with a fresh positioning You Know it’s a Maud’s World when you don’t want to leave. They presented the new brand package to us with a short animated movie. We were hugely challenged. It was so different to what we had had for years. I suppose we were frightened by it. We spent the next couple of anguished weeks worrying about whether this startling new image, story and personality was for us! We couldn’t get our heads around it. We then started to show it to family and friends and other business people we respected. Everybody loved it, even my own kids. I was in Italy on business and showed it there and they loved it too. We realised that Triplicate were right. This was the future and it would help us grow the business and hugely differentiate us in the busy marketplace. We grew to love the brand and put our entire heart and soul into developing and
implementing it. The team at Triplicate had made it clear to us that the new brand was right for us and would take our business to new heights but I guess we needed a bit of time for it all to sink in. In February, we held a major retailer event at our factory to launch the new brand and six new flavours. It was a huge success and we are now rolling out the new brand here and in the Republic of Ireland, as well as in Windsor near London. At the recent Ice Cream Alliance Awards in Harrogate, my father John, who passed away in 2011, was posthumously honoured with the organisation’s award for Lifetime Achievement for services to the Ice Cream industry. He built the business and in 2004 became the first ever ice cream producer on the island of Ireland to win the Champion of Champions award – the highest possible accolade the ice cream industry can bestow! The moral of the story is that change is good. If you have a good product but are not maximising it through effective branding and marketing – do something about it. It took us a bit of time but once we really understood the process it totally transformed the business and we are hugely energised for the future of our brand and our business.
BRANDING & MARKETING
Branding to get a competitive edge Paul Malone, director of Paperjam Design in Belfast says that whether you’re a start-up or established firm, the principles of strong branding remain the same.
B
randing is a way of clearly highlighting what makes your company different from all the others. Effective branding goes beyond just a visual identity. It should convey the personality of the organisation. The logo is just one manifestation of a brand. Yes, it’s often the aspect of the brand seen most frequently by the greatest number of people, but it is only one piece of a much bigger picture. At Paperjam Design, a graphic design firm based in the heart of Belfast’s Cathedral Quarter, we specialise specifically in branding. Paperjam has been producing brands for over ten years for clients as diverse as the K Club, the Merchant Hotel, Oxford University and the Church of England Diocese of London. From our perspective, the main principals of strong branding have always remained the same. For start-up companies naming is an essential part of brand creation. If a name doesn’t work without visuals then it will not work for your business. The names generated for your business should have a story supporting their creation – it is this story that enables the development of a cohesive and interesting brand. Spending time on this process can really help a business achieve greater impacts in the marketplace. There are some very distinct principles to creating a ‘strong brand’, and this applies to both start-up companies and more established companies looking to re-brand. The branding process should always start with research. Thoroughly researching each market is vital in brand generation. You should explore each target audience and base ideas on what would work best in these markets. Using the research findings you can begin to produce some initial directions for the brand and use these as a starting point to help generate conversations and help mould the personality of the new design. Brand design is a deeper and broader process than just creating a visual identity - it takes careful consideration and should represent the entire culture of an organisation. A brand should always be tailored to suit the organisation, this is an important aspect of the process helping give the company a sense of ownership over the final brand as it will need to work across the business in all aspects of their marketing and communications. Branding is a complex, strategic activity that requires many components, the most vital being creativity! Northern Ireland has a wealth of creative talent, especially in the graphic design industry. There are agencies throughout the country whose creative edge and quality of design stands shoulder to shoulder with the larger agencies of London and New York. The success of the work produced in Northern Ireland demonstrates that it’s not always necessary to seek the biggest agency to deliver your design requirements, sometimes the smaller boutique companies who specialise in an individual aspect of design can create work of the same, if not better, quality due to the strengths and talents of individuals in their teams. A good design team will ensure the same level of service and process for creating a brand is applied to all clients big or small, whether you produce mincemeat or you’re one of the best hotels in the UK. We strive to learn as much as possible about our client during the branding process and quite often establish a good, informal relationship. And we like the fact that clients feel comfortable to just pop into our office for a coffee and a chat. When both sides are open to dialogue and working together this can only help have a positive impact on your business and give a much better return on your investment.
MAY 2013 47
BRANDING & MARKETING
You know who wants a florist? People searching for a florist. Mark Haslam from Loud Mouth Media, a digital marketing agency based in Belfast, provides his top tips on how businesses of all sizes can make the most of Google AdWords, whatever their budget.
G
oogle AdWords is, in a nutshell, an online marketing tool developed to assist you to display ads on the Internet to promote your products or services. The Google search engine processes hundreds of millions of searches per day, so it makes sense to create simple, effective ads and display them to people who are already searching online for information related to your business. Paid search marketing has wide appeal for all types of businesses. The pricing model is competitive and relative to your budget, so if you are starting with a “shoe-string” budget, Google AdWords is still within your reach. In my experience, AdWords offers precise targeting and measurability, as well as tremendous reach and it’s possible to achieve a high return on investment on a large scale. If managed and set up properly, AdWords can help to increase online traffic, in-store traffic, brand recognition and also generate sales while reducing marketing costs. If you are using Google AdWords to build your business, take note of the following tips. Careful Keyword Selection You should take time to devise a list of specific keywords that potential customers may use to find you through search engines. The Google keyword tool is the perfect place to start and it’s free! One of the most common and costly AdWords mistakes is focusing all your attention on positive keywords that bring you traffic. Don’t forget to devise a list of negative keywords; words you don’t want people finding you by. For example, if you are selling gold watches, you would use the negative keyword “silver”. A comprehensive list of negative keywords can increase the quality of your traffic and improve your CTR (click-through-rate) significantly. Google AdWords Produces Instant Results Relying upon free search engine traffic alone is a risky strategy. Typically, it will take 6-12 months to get an SEO (Search Engine Optimisation) campaign up and running, while an AdWords campaign takes effect and generates results almost immediately if set up correctly. With an AdWords campaign you have much more control over the consistency of the traffic you get from the campaign. A combination of both
48 MAY 2013
SEO and PPC (Pay per Click) is recommended to obtain a wide presence on the web. Include a call to action Ad copy plays a vital role in the success of your AdWords Campaign. AdWords can appear complex with quality score and campaign optimisation. Ad Copy has much less technicality and tends to work best if it is kept plain and simple. Having a good call to action in your ad copy is key to your campaigns effectiveness. Give your prospective clients that extra push to get them over the line. Test, test and test again AdWords is the world’s easiest testing engine; you can test new ad text and landing pages and let Google tell you which ones work the best. Even test positions. Just because you appear #1 doesn’t necessarily mean you’ll get all the clicks. Sometimes #2 and #3 generate just as many
clicks, but at a lower cost per click. We have worked with many clients that have saved a lot of money by testing their offers and messaging with AdWords before launching right into production and sales. Google AdWords data provides intelligence to help with SEO The amount of data that can be retrieved about your campaign via AdWords reporting, Analytics and other tools is incredible. You can precisely track the effectiveness of each search phrase from the most frequently searched to the highest converting and the most profitable search phrase. With this knowledge, you can jumpstart your SEO campaign, helping to get your website ranked highly in the natural results for the most profitable search terms. Mark Haslam can be contacted at mark@loudmouthmedia.com
FedEx connects Northern Ireland to the world Whether shipping from Belfast to Lurgan, to France, Germany or the US, FedEx has a solution. With the Belfast Station Operation based in Carrickfergus, County Antrim, FedEx, the world’s largest express transportation company offers domestic and global reach to local businesses throughout Northern Ireland. Helping small companies bridge the gap between Northern Ireland and the rest of the world, our services help maximise global business opportunities. FedEx enables local small to medium-sized enterprises (SMEs) to have an increased presence worldwide through its export and import capabilities between 220 countries and territories.
The solutions are endless and there is one right for you At FedEx, we recognise the significance of SMEs in the growth of the economy and have a dedicated small business team that provides small businesses with a customised and personal service. FedEx aims to get to know you and your business inside out, tailoring solutions to fit your needs. Not only improving connectivity, FedEx also reduces the delivery time between Northern Ireland and customers overseas. Providing a quick and reliable service, we help businesses become increasingly competitive within these markets.
“Trucorp has been using FedEx for over a year now and we immediately saw an improvement in our EU and Global shipments. We need to ensure our products are delivered on time and in the same pristine condition as they left our factory, and I now feel in greater control of all my operations. What I like most, is the information comes to me and I don’t need to spend time looking for it.“ Ryan Colhoun, Operations Manager, Trucorp Ltd
What FedEx can offer • Next day timed delivery to and from destinations across Europe* • Next day delivery to east coast US cities by 3pm* • Delivery of less urgent shipments within 3-6 days across Europe, the USA and Asia* • Import next day into Northern Ireland from Europe, within two days from the USA and Asia* • Express service for heavy or bulky items to destinations worldwide* • Delivery within Northern Ireland as well as to and from Great Britain*
Delivering both a domestic ground freight delivery service within Northern Ireland and a global service via a daily flight from Belfast International, FedEx provides ease of access, ease of use and ease of getting going. To discuss solutions and see how FedEx can help your business, call 02895 450 005 or email northernireland@fedex.com
*Service coverage may vary by package type, origin and final destination. Please check fedex.com or contact Customer Services for an accurate quotation.
in association with
Peter Hannan and Shirley Russell of Hannan Meats.
Ulster Business editor Symon Ross.
Claire Greenwood from Andor Technology and Julie Davidson, Aer Lingus cabin crew.
The cream of Ulster business recognised at Viscount Awards S
even of Northern Ireland’s most dynamic companies have been honoured at the fifth annual Aer Lingus Viscount Awards. The Awards, in association with Ulster Business, were held on April 23rd in the prestigious Royal Automobile Club in London and awarded those companies who have best demonstrated a positive impact on the Northern Ireland economy and a strong collaboration between Northern Ireland and Great Britain. The seven-strong judging panel deliberated over 100 of the province’s most entrepreneurial and innovative companies before deciding on the eventual winners. The esteemed panel consisted of Valerie Abbott, Commercial Manager of Aer Lingus in Northern Ireland; Symon Ross, Editor of Ulster Business; Tracy Meharg, Managing Director of the Innovation & Capability Group at Invest NI; Roseann Kelly, Chief Executive of Women in Business NI; Adrienne McGill, Business Editor of the News Letter; Gary McDonald, Business Editor of the Irish News and Alan Taylor, Managing Partner at Arthur Cox. The categories were; Most Innovative Company of the Year, Exporter of the Year, Small/Medium/Large Companies of the Year, Outstanding Contribution, Entrepreneur of the Year and the Aer Lingus Viscount Award for Overall Excellence. The winners were: Most Innovative Company of the Year – Williams Industrial Services. The judges were impressed by their ability to leapfrog European
50 MAY 2013
competition in order to design a state-of-the-art anaerobic digestion plant, specifically to suit the Irish farmer. Exporter of the Year – Sepha, a business that has grown its export sales to account for approximately 99 per cent revenue outside of Northern Ireland, by investing significantly across all areas of their business including product innovation, marketing and staff training. Small Company of the Year – The Deluxe Group, which has invested almost half a million pounds in new state-of-the-art design machinery to expand exports in 2012 and was recently awarded a £2m contract against international competition for works to a major theme park in Paris. Medium Company of the Year – Brookevent. This company was chosen because of its ambitious export strategy, culminating in the development of eight new markets and their innovative range of new Mechanical Ventilation Systems. Large Company of the Year – Kainos Software, who witnessed significant growth in 2012 with the creation of 120 new jobs as a result of taking on landmark projects for the UK Government Digital Services to help transform public services with their digital technology. The award for Outstanding Contribution recognises the outstanding contribution a
person, group or company has brought to the future success of Northern Ireland and was awarded to Mark Huffam CBE of Generator Entertainment. The judges acknowledged that his company’s presence in Belfast has been a decisive factor in luring studio productions such as Game of Thrones and Your Highness, which utilise hundreds of local extras and crew. The penultimate award, Entrepreneur of the Year went to Peter Hannan of Hannan Meats, who was described as, ‘a passionate foodie who has brought success to his business through his commitment, innovation, energy and vision’. The Aer Lingus Viscount Award for Overall Excellence was awarded to Andor Technology. Valerie Abbott, Aer Lingus Commercial Manager NI said: “We were hugely impressed again by the calibre of this year’s entrants and while only seven companies may be crowned Aer Lingus Viscount Award winners, all are a reminder of the immense talent creating prosperity across Northern Ireland and indeed, across the world. “As an airline we are proud to connect businesses with opportunities internationally every day via our Belfast City to Heathrow and Gatwick routes, and are pleased to see so many of these businesses pursuing global growth opportunities with a forward-thinking approach. “As these winners attest, Northern Ireland has a great deal to be confident about.”
in association with
Aer Lingus cabin crew member Julie Davidson; Gillian Culhane, Head of Press and Media Relations at Aer Lingus; Brian Reid, Head of Sales and Marketing at Kainos Software and Paul Clark, UTV.
Paul Clark, UTV; Gillian Culhane, Head of Press and Media Relations at Aer Lingus; Declan Gormley, Managing Director of Brookvent and Aer Lingus cabin crew member Julie Davidson.
Julie Davidson, Aer Lingus cabin crew; Gillian Culhane, Head of Press and Media Relations at Aer Lingus; Corin Hawthorne, Head of Business Development at The Deluxe Group and Paul Clark, UTV.
Paul Clark, UTV; Gillian Culhane, Head of Press and Media Relations at Aer Lingus; Paul Kelly, Head of Sales and Marketing at Sepha and Aer Lingus cabin crew member Julie Davidson.
Clare Doran and Alastair Dawson of Powerteam; Adrienne McGill, Newsletter; Gary McDonald, Irish News; Sylvie Brando, Ulster Business and Roseann Kelly, Women In Business NI.
Aer Lingus cabin crew member Julie Davidson; Gillian Culhane, Head of Press and Media Relations at Aer Lingus; John Toner, Managing Director of Williams Industrial Services and Paul Clark, UTV.
MAY 2013 51
INTERVIEW
Women in Business NI has international aspirations CEO Roseann Kelly tells Symon Ross that 10 years after Women in Business NI was founded, the networking organisation is playing a vital role in the economic recovery by helping business women access support and advice they might otherwise miss out on.
T
en years ago the group of ten women who started Women in Business NI could not have envisaged the success the organisation would achieve in such a short space of time. Built from scratch, the network now has some 850 members split almost evenly between selfemployed business women and women in senior management roles in established companies, and runs five events each month. Providing networking and connections that help women in business realise their potential remains the organisation’s core purpose, though market demand means there is now more focus on the corporate sector and women in leadership than there was initially. “We have achieved a lot in a short period of time,” says CEO Roseann Kelly. “I don’t think when we started the founding members visualised the extent of the need for the support that our network provides. It is a very diverse network in terms of age, sector, and we have self-employed start-ups, established business owners and senior business women.” The organisation is self-sustaining, funded by memberships, which Roseann says proves the need for WIBNI. She believes it has been effective in delivering connections that have helped women promote their businesses, while at the same time highlighting that talented business women were not always getting the recognition they deserved in Northern Ireland. Of course there are those who bristle at an organisation purely for women, but Women in Business has demonstrated its inclusiveness by having three men on its ten-strong board. “You still get the odd sneering remark from people who don’t get what we do, people joking ‘what about men in business’. What they don’t appreciate is that everything else in business is geared to and dominated by men. At one recent CBI dinner there were really only a handful of women among the hundreds who attended,” says Roseann.
Roseann Kelly (right) and Eva Garland of WIBNI are planning to reach out globally at their 2014 conference
“There is still a lot of work to be done. The minute you put ‘women’ in the name it creates a certain perception. But through the work we’re doing the message is getting out that it’s not just about women. It is about providing support because women don’t have access to the networks men do. It is about helping the whole economy and creating a new economy for everyone that has a more diverse business community. The more profitable businesses we have the better off we’ll all be.” A decade after coming into being, the business group is now embarking on a new 10 year strategy which will see it take a more international outlook as it seeks to connect members with new role models and mentors, inspire them with new ideas and help them expand around the world. The first major step in that strategy is an
“IT IS ABOUT HELPING THE WHOLE ECONOMY AND CREATING A NEW ECONOMY FOR EVERYONE THAT HAS A MORE DIVERSE BUSINESS COMMUNITY.” 52 MAY 2013
international conference in 2014 for which WIBNI is already establishing links with other networks around the UK, Ireland and further afield. Roseann is working on bringing in acclaimed speakers and business leaders for the conference, including a certain former Secretary of State with close links to Northern Ireland. “We’re driven to be the best and to keep delivering value for our members,” says Roseann. “When we were considering the international conference we asked ‘what will our members get out of it’ before proceeding. I think it will be a great opportunity to hear new ideas, meet new business partners and establish links with contacts from around the world.” Before that, Women in Business NI will be holding its annual conference on May 23 at the Hilton Hotel, at which 350 delegates will hear from women in leadership positions and have the opportunity to take part in break-out sessions on all manner of business focused topics. “We’re very excited about it,” says the CEO. “In all of what we do we aim to make sure people come out thinking it is very valuable, that there’s something they can apply to their business. That’s part of the vision to keep delivering for our members.”
SUBSCRIPTION OFFER Dine FREE at Malmaison with Ulster Business
Malmaison Brasserie on Victoria Street provides a perfect setting for business lunch or dinner. The surroundings are unique and stylish and can offer allocated booths to you and your clients for seclusion to conduct your meeting. Coupled with iconic dishes prepared with a modern twist and served with passion and personality as well as a mouth watering wine list, you will certainly impress your guests. Malmaison use local ingredients carefully selected and prepared by Head Chef Stephen Jeffers. This infusion of
bistro classics with locally inspired cooking, creates a very memorable dining experience. As a business destination, Malmaison Belfast also offers two stylish meeting rooms with wow-factor as standard. Your meeting or private event should be pure theatre with absolutely no dramas. Our team are dedicated to providing amazing hospitality and putting the show back into your business. For more information or to make an enquiry, please call Julie Lynch on 028 9022 0204 or email: jlynch@malmaison.com.
$ Title:
Subscribe online at www.ulsterbusiness.com quoting ‘Malmaison Offer’ or complete and return this form and a cheque for £27.50 (made payable to Greer Publications) to: Malmaison Offer, Greer Publications, 5b Edgewater Business Park, Belfast Harbour Estate, Belfast BT3 9JQ.
Surname:
TERMS AND CONDITIONS
First Name:
1. A lunch voucher will be posted to subscribers on receipt of full subscription fee.
Position:
2. The voucher will entitle two guests to a three-course set lunch
Delivery Address:
3. The offer excludes all drinks and beverages.
Monday to Friday. 4. Advance booking is required. 5. Bookings cannot be made during the month of December. 6. This offer is only applicable to new Ulster Business subscribers.
Postcode: Contact Number: Email:
Signature: Date:
PROFILE
Belfast Harbour: 400 years at the heart of the economy As Belfast Harbour marks the 400th anniversary of its formation under Royal Charter, Ulster Business spoke with CEO Roy Adair about the current performance of the port and the investment it has made for future growth.
“I
f there’s no city there’s no port, but if there was no port there’d be no city.” That statement by Belfast Harbour CEO Roy Adair succinctly conveys the essential role that the Port has played, and continues to play, at the heart of the economy in Belfast, Northern Ireland and the wider island of Ireland. It is a relationship that stretches back 400 years, to the Royal Charter granted to Belfast in 1613 which gave the city the ability to undertake marine activities for the first time, and one which is as important today as it has been at any time in the port’s history. Adair, the Harbour’s Chief Executive since 2005, told Ulster Business: “In any port city there has always been a symbiotic relationship between the port and the city. There has always been a very strong relationship between what the economy of the city needed and what the response was by the port. Belfast is a prime example of that.” That it is the province’s main link to the outside world and an indispensable
54 MAY 2013
economic asset is reflected in the fact that in a deteriorating market across the island of Ireland, Belfast Harbour saw trade volumes increase by 11% to 19.6 million tonnes in 2012. The harbour was responsible for 67% of all trade to and from Northern Ireland last year, from imports and exports of bulk goods such as grain, coal and aggregates to roll-on-roll-off freight traffic – not to mention a large chunk of tourism income from cruise ship visitors. “We have a strong track record all the way through the recession of managing our performance in a way that the board thinks is satisfactory,” the CEO says modestly. “When we come round to reporting financial 2012 results you are going to see an improved performance against a market that is likely to see a step back. And with some revenue from the new DONG wind energy terminal coming on stream this year we should see another improvement.” CAPITAL INTENSIVE Belfast Harbour’s vision is to “connect our customers to the world and act as a catalyst for economic development and regeneration”. It is a vision that acknowledges the important role the Harbour has played in all of those areas in the past, but also the export driven future which both business leaders and politicians are keen to realise for Northern Ireland. It is a future which has required the Harbour to make a series of large capital investments in recent years – civil engineering project that are made all the more challenging because Belfast Harbour is built around mud-flats. Recent investments have included land reclamation, dredging, construction of quays and terminals and commercial buildings, as well as the aforementioned £50m renewables facility which the Harbour handed over to Denmark’s DONG Energy and ScottishPower Renewables at the start of this year. The offshore wind terminal, the first purposebuilt offshore wind installation and pre-assembly harbour in the UK or Ireland, will be used as a hub to help service a market valued in excess of £100bn and will create up to 300 jobs. Another major recent project which has
contributed significantly to the upward trajectory of its trade figures is the construction of a new ferry terminal for Stena Line which has led to increased Ro-Ro freight traffic through the Port. “We’ve bucked the trend because of our business model. It is very heavily capital intensive and it is really all about trying to identify where there are market opportunities and producing a turnkey facility for a counterparty or general use and then bringing in revenue against that facility. We typically invest in a facility and then have someone pay us for it. If we do it properly it benefits our income line,” explains Roy Adair. While the potential to attract further renewables business is still high in the long term, confusion around energy policy at Westminster and the lack of cohesive strategy on wind energy among the Government’s coalition partners means that interest from potential investors has cooled slightly. While the Harbour chief expects that to change, he says there are other growth opportunities from both its current offerings and brand new business. “Last year we won some business away from Scotland to do with coal. Kilroot Power Station was being serviced from Scotland – a large boat would go to Scotland and a smaller boat would then come here. We did some dredging to change the parameters here that allowed the larger boats to come here directly and there are other similar opportunities in the industrial coal space,” he said. “We’re also continuing to look at the cruise ship offering. Cruise business has gone from nothing to the current market in ten years. Two years ago we had 32 ships, last year there were 45, this year we have 60 booked, which is fantastic,” he adds. Adair is also confident that in Arlene Foster Northern Ireland has a Minister who understands the importance of the agri-food sector to the economy. “How the sector performs is obviously affected by worldwide commodity prices. But there are a lot of strengths we have in our indigenous industry that are a shining light versus our competitors,” he says.
PROFILE
As one of the biggest land owners in the province, Belfast Harbour is also stepping forward to help with a solution to the lack of Grade A office space in Belfast, which has been identified by many experts as essential to attracting overseas companies to set up in Northern Ireland. “The risk to Northern Ireland plc is that we don’t have what FDI investors want,” says Adair. “The Northern Ireland government have identified this as a problem and we have stepped forward with a solution. We are in planning at the moment for a 68,653 sq ft office block right next to the Harbour Commissioners headquarter which would service foreign direct investment.” A GOOD CORPORATE CITIZEN The Belfast Harbour chief executive is well versed in what international businesses want. His business experience includes senior roles with Rothmans International, Flexibox International, the Northern Ireland Quality Centre and DDL Inc. Outside of his core commitments at Belfast
“We underpin a significant amount of economic activity but if you flip that round then the harbour is only as good as the economy.” Harbour, he has also been involved as a non-executive in a range of organisations, which currently include the Prince’s Trust, Business in the Community, UK Major Ports Group and Invest Northern Ireland, as well as chairing the new Diaspora initiative NI Connections. His personal interest in economic development, youth employment and training chimes perfectly with Belfast Harbour’s overriding goal to be a good corporate citizen. Corporate responsibility as a concept has
never had such a high profile as it does today, following the financial crash and lingering recession. But its role in the wider community is one which Belfast Harbour has always taken seriously, adopting a four pillar approach that focuses on Community, Arts, Environment and Education projects that benefit society. Having recently taken over as Chair of Business in the Community, an organisation he has worked with for more than 20 years, Adair says the philanthropic work Belfast >>>
MAY 2013 55
Harbour does is both in the public interest and its own interest. “We underpin a significant amount of economic activity but if you flip that round then the corollary of that is that the harbour is only as good as the economy. So the harbour has a self interest in doing what it can to make its market bigger and improving the economy. Some of the work we engage in plays into that,” he explains. “If you take the economic development space, for example, I’m privileged to serve on the board of Invest NI and the Diaspora project is very much focused on the economy. The people who are interested in making Diaspora connections, aside from those seeking philanthropic donations, want to do something to help the economy. That clearly fits with our interest. The project is attempting to join up the dots where they are not currently joined up.” Adair says that Belfast Harbour has found Business in the Community a good tool to hone the organisation’s approach to corporate citizenship and align its ambitions with the needs that exist. Much of the conversation at board meetings of Business in the Community and the Prince’s Trust, whose council Roy also sits on, are centred on employment for young people – or
the lack thereof – and Belfast Harbour has refocused the Education pillar of its corporate responsibility strategy on Young People. It is providing funding to help deliver the new employment scheme being facilitated by the Prince’s Trust for Belfast City Council and working with Belfast Met on a new initiative that aims to help young people overcome the hurdles of getting into apprenticeships. A third strand is a new initiative with Business in the Community focusing on underemployed graduates. “Much of the focus is on NEETs but there are a lot of people out there who have got work that is not coming close to challenging them or providing them with a career structure or releasing their economic potential. The solution is somewhere in the internship space and we want to help produce a more professional approach to internships,” explains Adair. Belfast Harbour is also investing in areas of society which have less obvious benefits to the economy, such as the arts. “If your value system is based on profit alone, you wouldn’t support arts projects that somewhere down the line might give you an intangible benefit,” says Adair. “But you have to remember that heritage and
“There are a lot of young people out there who have got work that is not coming close to challenging them or releasing their economic potential.” 56 MAY 2013
culture is what interests the Diaspora and the arts are a strong string to the bow of creating an attractive Northern Ireland for tourism and FDI. Anything that gets the attention of the world to Northern Ireland for good reasons is positive, and the arts helps create that positive message.” The CEO says Belfast Harbour is a “red blooded business” like any other and that his job first and foremost is to run a profitable organisation. But it seems clear that with its commitment to corporate responsibility unrivalled in the local business community, it is much more than that. And while the Port is likely to be at the heart of our economy for years to come, you probably won’t hear Roy Adair shouting about it. “Ireland’s ports are all run well and we have created a competitive space to make sure consumers and customers have a choice. But you don’t notice a port unless something goes wrong. If a port is working it is invisible and our challenge is to remain invisible!”
PROFILE
Belfast Harbour: Key historical dates Clarendon Dock and Harbour Office, Belfast 1859
Belfast Harbour, Ferry Steps, 1851
The proposed new ‘City Quays One’ Development at Clarendon
1613 The origins of the Belfast Port can be traced back to 1613, when, during the reign of James I, the town was incorporated as a borough by royal charter, with provision for the establishment of a wharf or quay. As a result, a quay was constructed at the confluence of the Rivers Fearset (Farset) and Lagan and the development of Belfast as a Port began. 1663 The first ship built in Belfast was built for the Presbyterian clergy and registered in 1663. 1763 In 1763 the first cut of the River Lagan, from Belfast to Lisburn, was completed. The engineer overseeing the project was Thomas Omer, and some six miles (9.7 km) of river had been made navigable within the first year. 1813 1,190 vessels, gross tonnage of 97,670 tons entered the Harbour in the year 1813; in comparison to 5,458 ship arrivals in 2012, and the gross tonnage of these ships amounted to 103,655,824 tonnes. 1933 The official opening of Herdman Channel, Pollock Dock and Basin took place on 26th
October 1933, officiated by His Grace the Duke of Abercorn, accompanied by Her Grace the Duchess of Abercorn. 1943 Praising the Ulster war effort, Sir Winston Churchill made direct reference to the strength of Belfast Port when he wrote; “Only one great channel of entry remained open. That channel remained open only because loyal Ulster gave us the full use of the Northern Irish Ports and Waters, and thus ensured the free working of the Clyde and the Mersey; but for the loyalty of Northern Ireland, and its devotion to what has now become the cause of thirty Governments or Nations, we should have been confronted with slavery and death, and the light which now shines so strongly throughout the world would have been quenched.”
Off shore renewable activity at the Harbour, 2013
1993 The Harbour Commissioners completed the modern Victoria Terminal Three at a cost of £32m, providing the biggest container-handling services in Ireland. 2013 Belfast Harbour celebrates its history, and the history of the city, with its commemoration of the Declaration of the 1613 Town Charter issued by King James I.
MAY 2013 57
TECHNOLOGY
Why reliability is the key
L
eaf thankfully don’t support The Duke and Duchess of Cambridge’s official site. But despite it crumbling under the pressure of people seeking updates on the news that Kate Middleton was pregnant a few months ago, the public will no doubt understand and log in another time to see the latest updates. The same could probably be said for The Tate, which spectacularly crashed when it was flooded with demands for tickets to a gig at the museum by German electro band Kraftwerk or the well documented ICT issues with the Ulster Bank last year. Unfortunately, royal baby news and rare tickets are atypical. As most large online retailers would have found out just twelve days before Christmas, if your website isn’t working, you can’t trade. Web users, whether they are looking for information or actively attempting to make a purchase, are notoriously fickle. In fact, Google researchers recently announced that a site will be visited less frequently than its closest rival if it takes less than a blink of an eye longer to download. Leaf are aware that for SMBs there is the very real issue of staff not being able to work if the company’s servers have a problem. So, not only are customers and prospects unable to place or research orders online, staff could well end up twiddling their thumbs waiting for applications to become available again. How do you put a price on productivity? Number of employees
20
Down time suffered per month due to server hardware failure
30 minutes
Average employee salary
£25,000.00
Total Downtime per annum
600 hours
Total cost to the company per annum due to lost productivity
£7,212.00
* estimated
It is unsurprising that reliability came out as the top priority when researchers from IDG asked a hundred SMBs in major EU markets what they were looking for most in new servers. Nearly nine in ten, (87%), revealed reliability was a top consideration, more than double those who believe ease of maintenance is a key decision swinger. What may come as a surprise, though, is that cost was a top priority for only a third of SMBs (34%). Even when those who rated cost (34%), power usage (27%) and easy-set-up (21%) as key selling points are combined, they still do not add up to the near unanimous nine in ten who identified reliability as the key influencer (IDG connect Dec 2012). The clear message is that the cost incurred through staff not being able to work and clients not being able to place orders. The conclusion Leaf and our clients have reached is that it’s better to pay for reliability upfront than pay more in the long term through the cost of missed sales and lost staff and business productivity. For an audit of your network please contact kyle@leafconsultancy.com or telephone 028 9089 7650.
58 MAY 2013
Business as usual? By Dawn Bowers, Client Manager, HP Continuity Service
I
t’s a familiar kind of frustration for those who work in an office environment – your email hangs, your phone won’t connect, or the photocopier keeps jamming. Many times, the irritation is just a passing one and the problem gets fixed without too much fuss. But if you’re a manager, it bears the question – what would you do if it wasn’t an easy fix? What if a system failure started to stretch into hours? Business continuity planning can save businesses time, money, and help protect their reputation if an external event interrupts their normal working practices. A solid plan can make the difference between losing or keeping a crucial client. For those businesses that experience interruption, there’s a serious cost involved. A recent survey of businesses by the Chartered Management Institute showed that over half of all surveyed organisations without business continuity management plans cited lost revenue as a leading result of disruption (55 per cent), and a quarter (25 per cent) said that the leading impact was lost customers. In 2012, weather disruption affected 77 per cent of surveyed organisations. Of those managers affected by snow, their organisations experienced an average cost of £52,770 – an eye-watering sum when the prevention is much cheaper than the cure. Recently, as part of Business Continuity Awareness week, HP brought together companies across Northern Ireland to discuss and review best practice in crisis periods, and how such strategies contributed to their peace of mind and to the bottom line. With our recent bout of returning winter weather, it didn’t take long for many attendees to see the benefit of investing in a proper plan. Below are some points that businesses should consider in ensuring that they are secure: Have a plan and regularly review it Having a plan means that even though events are moving quickly, you have in place a template that will see you through the worst of it. But modern offices are dynamic environments and part of making any plan fit for purpose is to ensure that it is as up to date as possible. Horizon scan for the common occurrences… and the not so common ones Central to any business continuity plan will be the split between short-term and long-term risks. Chances are, you’ll be able identify some of the immediate, broad threats to your business. But you’ll also need to consider how events further away might impact on your supply chain. This is particularly important if you’re an aspiring exporter. Murphy’s law is real It isn’t a case of ‘if ’ something will go wrong for your company at some point – but ‘when’. Having that attitude to risk helps prepare you to think clearly when, for example, water is filling up your server room. There’s no such thing as total security – but a culture of good risk management goes a long way.
Commercial Property & Construction
Sponsored by
An artist’s impression of the new Belfast Campus.
COMMERCIAL PROPERTY & CONSTRUCTION
60 MAY 2013
COMMERCIAL PROPERTY & CONSTRUCTION
University of Ulster planning the campus of the future Amanda Poole takes a look at the potential regeneration effect of the University of Ulster’s Greater Belfast Development project on the Cathedral Quarter and North Belfast.
B
y 2018 the bulk of the University of Ulster’s current activity at its Jordanstown campus will be relocated to the heart of Belfast city centre. The campus on York Street, affectionately known by many as the Art College, currently houses around 2,000 students, but by the time the £250m Greater Belfast Development project is complete there will be 15,000 people studying there with around 6,000 on campus each day. Meanwhile, Jordanstown will retain its sports facilities, some specialist engineering study and student residences. Creating a new 75,000sq ft site in Belfast throws up a series of challenges but has the potential to boost construction, retail, hospitality, tourism and the property market as well as transforming the vibe in the city centre. UU’s pro-vice chancellor for development, Professor Alastair Adair, heads the Greater Belfast Development project. “Many people are referring to this as the regeneration opportunity of the century. We believe it is the regeneration, economic, business and social opportunity of the century,” Professor Adair said. “It’s a big challenge to deliver it but it is a once in a lifetime opportunity. It will transform people’s lives for the better.” UU is currently ranked sixth in the UK for widening access for young people from disadvantaged communities, so its new neighbours in North Belfast will be an area of focus. Professor Adair’s team looked to Queen Margaret University in Edinburgh, Cambridge University and the London School of Economic for inspiration when developing the project as part of UU’s commitment to the long-term future of higher education in Northern Ireland. “We have to ensure this building meets the education purpose of the university,” he said. “It’s very clear from other universities you have to change the culture when you move to a new building. We are reaching out to
disadvantaged communities, the business community, the Executive and the council. It’s a tremendous opportunity to look at what the university does. Learning is changing and the new building has to reflect that.” If the move was just a case of upping sticks and providing no added value there would no point to it, says Adair, who sees faculties being close together as an exciting opportunity for spin off benefits. Concerns about the impact of the new campus are being raised by architect Mark Hackett, formerly a partner in Hackett Hall McKnight, who won the competition to design Belfast’s MAC arts centre. He is the director of The Forum for Alternative Belfast, a community interest company that campaigns for a better and more equitable built environment. On the UU issue it has been helping the Campus Development Group (CDG), newly formed of the neighbourhoods near to the upcoming project. He said: “There are massive questions left hanging about an influx of cars and speculators hovering the area with a ‘High rise Holylands’ risk of dysfunctional, poorly designed student housing evolving – all this cheek by jowl with some of the UK’s poorest neighbourhoods, which are under huge stress. People are trying to highlight that all this needs resolution, and it needs the neighbourhoods and community sector to be fully part of solving those risks.” Professor Adair is co-author of UU’s regular house price surveys and said the impact on the
property market is “bound to be positive” but is clear “the last thing we want is a repeat of the Holylands” an area of South Belfast densely populated with higher education students, many from nearby Queen’s University. “Planning policy is no more than 30% multiple occupancy but in Holylands that has grown to over 60%,” he said. “Around 65% of the population are under 25 so you have an imbalanced community. We cannot have the same policy failure in North Belfast as we have had in South Belfast.” Professor Alastair Adair acknowledges the influx of students will provide a challenge to governance in the city, but says it will be a force for good and encourages “a ramp up of economic activity”. He said his team is keen to work with the planning authority, Belfast City Council, local residents and anyone else with a stake in the area. “The Northern edge is one of the forgotten parts of Belfast and has always been an interface and an area in need of upgrading. The biggest challenge is going to be the joined up approach from government,” he said. There are currently 2,300 car park spaces at Jordanstown but this sort of provision will not be available at the Belfast campus, so a “modal shift” is required. “We have to change travel patterns and reduce the dependency on cars. I live in Newtownards and have already started coming in on the bus,” >>> Professor Adair said.
“The £250m investment sends a strong signal of confidence which will not go unnoticed by those considering investing in the city.” MAY 2013 61
COMMERCIAL PROPERTY & CONSTRUCTION
“Belfast doesn’t have a major resident parking scheme, like Dublin or Glasgow. If there is a lack of joined up thinking and 2,500 car parkers come into the centre of Belfast you will have a shambles. We are meeting with Translink and DRD to ensure joined up thinking.” The buildings for the new campus were acquired without the need for compulsory purchase powers and as the University of Ulster had a royal charter and is a charitable institution it has gone to the capital market to fund the project. The Department of Employment and Learning are providing £16m and a syndicate of banks are providing the rest, which the University will pay back over a 20 to 25 year period. “To service that mortgage we are setting aside £18m each year from the annual income of £200m,” Professor Adair said. “£10m will be spent on the new campus and the other £8m on the North West Campus at Coleraine and Magee. £10m per year for Belfast over 20 to 25 years gives you £250m, so we are in effect educating 50% of our students for 5% of our income. As a householder if you were able to do that you would be doing very well; our auditors say it’s a great deal.” Carol Ramsey, chair of the Royal Town
62 MAY 2013
Planning Institute in Northern Ireland (RTPI NI) said it supports a diverse mix of uses in city centres. “Belfast is the main economic driver of the whole of Northern Ireland,” she said. “The University’s development plans sit alongside a range of initiatives planned for this section of the city. These include the Department of Social Development’s proposals for Northside Urban Village, the Royal Exchange regeneration project, the public realm proposals outlined in Belfast Streets Ahead phase 3 and continuing work ongoing in the Cathedral Cultural quarter which are all in close proximity to the new UU site,” she added. “The combination of these initiatives will enhance connections between the north-side of the city centre and the retail core through to the City Hall. This University development has the opportunity to harness the regeneration opportunity of Town and Gown in Belfast city centre.” Meanwhile, Helen Harrison, director of JUNO Planning and Environmental Ltd, the planning consultant for UU’s Belfast city campus, said it is extremely proud to be involved in such an exciting and ambitious project. “The design team has developed the University’s bold vision to create a series of
civic educational buildings which respect the history of the city as it is today and which will become a focal point in Belfast for many future generations to come,” she said. “The new Belfast City Campus will have a huge regenerative and transformational impact on this run down part of the city, bringing 15,000 students and staff into the city and creating learning and business opportunities for the communities surrounding it,” the consultant added. “The campus is central to Belfast City Council’s Investment Programme 20122015, with wide ranging benefits across many sectors including existing businesses, culture, communities and, notably, the beleaguered construction industry. The guaranteed investment of £250m sends a strong signal of investor confidence which will not go unnoticed by those considering investing in the city and the wider region.” Ms Harrison explained the significant benefits of this type of investment are well recognised and clearly evidenced, noting that a Universities UK 2010 report highlighted UK higher education generates nearly £60bn for the economy with a multiplier effect of 3:1 and evidence from evaluation studies of UK regeneration projects indicates that for every £1 of public sector investment, up to £5 of private sector expenditure can be leveraged. On the impact of construction specifically, every £1 invested in construction generates £2.84 in total economic activity according to a 2009 UK Construction Group report. David Gavaghan, the chief executive of Titanic Quarter Limited, said at a macro level the project is “unbelievably good news for Belfast”. Gavaghan, who has a background in property, infrastructure and project finance remarked, tongue in cheek, that the “only mistake was not to relocate to Titanic Quarter”. “I’m a product of Trinity College Dublin and one of the joys of studying there is you are right in the heart of the city centre. Queen’s is beautiful but it is outside the core,” he said. “UU has some great disciplines – like art, architecture and business – so the new campus can only be a good thing. To me the challenge will be how we build upon the next thing,” he added. “Belfast has to become a global city. Our great challenge is to absolutely focus on that, because if Belfast works, Northern Ireland works. There needs to be a focus on the restoration and revival of inner Belfast and a linking of the quarters.” For more about the new UU Belfast campus visit www.ulster.ac.uk/greaterbelfastdevelopment
Construction Employer Events helping lay the foundations for a return to growth surprising the biggest challenges faced by construction employers is the decrease in turnover (49%) and a pessimistic outlook on sales and turnover for the next year (42%). The employer events are designed to help local construction employers openly discuss issues, network with other employers and find out what support is available for training. The programme of events are being held across Northern Ireland. For further information on the event and other dates available, log onto www.citbcsni.org.uk or telephone our Training Support Team on 028 9082 5466.
CITB-ConstructionSkills NI Event programme 10.00 – 10.15: Registration, tea/coffee, light breakfast 10.15 – 10.40: CITB-ConstructionSkills NI – Grants, Levy, Other Services CITB-ConstructionSkills NI is keen to help the local industry address the current downturn and focus on the way ahead. For the past few years we’ve held free information events for local construction employers providing the latest information on training advice and guidance on grants, other funded training initiatives and the services that are available to registered employers. In a recent survey of 100 construction employers 66% were aware of the information events and 35% of those had attended. Nearly all of the attendees (91%) felt the events gave them the information they needed. Barry Neilson Chief Executive CITB-ConstructionSkills NI said: “Times are tough and businesses need as much support as possible. Through listening to employers we know that their main challenges are reducing their expenditure, increased competition for contracts and preparing for new environmental legislation. We are working hard to identify solutions to help employers survive. These events are an informal way of providing relevant up to date information to the industry and also listening to what employers have to say.” The survey also reinforced awareness on grants (98%) with overall satisfaction with services ranking high. It is also not
10.40 – 11.00: Health & Safety Works NI – Risk Assessments, Method Statements 11.00 – 11.10: Question and Answer Session led by CITB-ConstructionSkills NI 11.10 – 11.15: Networking Opportunity and Close
Dates for your Diary Town
Date
Venue
Coleraine
Tue 14 May
Causeway Enterprise Agency
Lisburn
Tue 21 May
Lisburn Enterprise Centre
Enniskillen
Tue 4 June
Fermanagh Enterprise Ltd
Newtownabbey
Tue 18 June
Corrs Corner Hotel
Banbridge
Wed 31 July
Banbridge District Enterprise
Derry/Londonderry Wed 21 Aug
Ramada Da Vinci Hotel
Registration Registration is now open for all events. Contact us on: Tel: 028 9082 5466 Email: events@citbcsni.org.uk Post: 17 Dundrod Road, Crumlin BT29 4SR Website: www.citbcsni.org.uk
Find us on Facebook
COMMERCIAL PROPERTY & CONSTRUCTION
Beware the cane toad
By Martin McDowell, Managing Director, Osborne King Commercial Property Consultants
B
efore 1935, Australia did not have any toad species of its own. However, toads were being used successfully in the Caribbean Islands and Hawaii to combat the cane beetle, a pest of sugar cane crops. After rave reviews from overseas, Hawaii shipped 102 cane toads to Gordonvale just south of Cairns. As their numbers increased, they were released into the sugar cane fields in the tropic north. It was later discovered that these toads couldn’t jump very high so they did not eat the cane beetles which stayed up on the upper stalks of the cane plants. The cane toad had no impact on the cane beetles and farmers had to revert to using chemicals to kill the beetles. However, the “cat was out of the bag” or more accurately, the toads were out of the box! They multiplied rapidly, took food from other native species and have proven to be one of Australia’s worst environmental disasters. So what relevance does the above cautionary tale have within a business article? Over recent years, the public sector has introduced a number of “cane toad” measures that never achieve their objectives yet create bigger, more complicated problems for the business community. I have been highlighting the most costly and dramatic of these for some time, the Modern Government Lease (MGL) that was introduced to try to protect the public purse from large dilapidations claims when public sector occupiers exited leased accommodation. The unanticipated consequence was that the provisions included within the MGL have created unsaleable investment assets, particularly within the current economic climate. We remain the only region in the UK to have this restrictive lease imposed upon us by the public sector and the resultant effect has been the decimation of rental and capital values within our office market. In property terms, the MGL is a cane toad of epic proportion.
This is not the only example of common sense absent within the public sector. One of our major financial services clients was taken to Court recently and unknowingly for non-payment of rates and the Department granted a Decree in Debt Proceedings against our client. Ensuing correspondence, which demanded immediate payment including Departmental costs, outlined a series of measures available culminating in the statement: “The Department can also begin bankruptcy and liquidation actions if the debt remains outstanding.” The correspondence concluded: “This is a computer-generated letter and as such does not have a signature.” You may ask why this triggers such annoyance as we would all like to see rates and other tax debts collected efficiently by the public sector. The property on which the debt was supposedly due was exempt from rates owing to an exemption centrally applied and not subject to occupier application; something that a computer is
“AS OUR RETAIL MARKET CONTINUES TO STRUGGLE OUR POLITICIANS PURSUE A POLICY THAT MAKES BELFAST LESS attrACTIVE TO SHOPPERS AND VISITORS.” 64 MAY 2013
obviously incapable of processing. A lack of human input and common sense meant that no one checked their facts prior to proceeding to Court, causing great embarrassment to our client. These expensive computer systems are designed to make rates/tax collections more efficient however, as with the cane toad, do not appear to function in the anticipated manner. As our retail market continues to struggle, with Northern Ireland having the UK’s worst high street vacancy rates, our politicians pursue a policy that makes Belfast less attractive to shoppers and visitors. The current drive to remove cars from the city centre and replace a perfectly functional traffic system with an enhanced public transport option makes Belfast city centre less attractive than outlying retail parks. Our experience to date is that traffic congestion has increased, new bus lanes are creating havoc, cycle lanes remain conspicuously empty and journey times throughout the city have steadily increased. I remain to be convinced that the new traffic system will ever achieve its stated goals, as it appears simply another massive cane toad. Our political leaders need to urgently realise that a number of their policies are not achieving their desired purpose and in many cases creating huge problems for business. Sometimes change does not improve what already exists and I would urge the public sector to eradicate these “cane toads” before they effectively ruin our chance of recovery.
COMMERCIAL PROPERTY & CONSTRUCTION
Construction falls as Government stalls and the economy crawls By John Armstrong, Managing Director of the Construction Employers Federation (CEF).
T
he Northern Ireland Construction Bulletin for the final quarter of 2012 was published recently and showed the total volume of construction output in Q4 2012 increased by 0.5% compared to Q3 2012 but was 5.8% lower compared to the same quarter in 2011. Very little should be read into the 0.5% increase in output in the final quarter of 2012. What the figures do reveal however is that there has been a marked slowing in the pace of decline in construction output in 2012. In constant prices, output only fell by 3% over the year compared to an average fall of 10% every year since 2008. It is a reflection of the times that we are in that a 3% decline can be considered good news. The collapse in construction activity over the last five years has not just been about a correction following a boom. The Construction Bulletin figures show that in real terms construction output in 2012 was 34% lower than the year 2000. However, there is great hope that the significant deceleration in the pace of decline in construction output is the first signal that we are near the bottom and that recovery will come in the not too distant future. There are some positive signs, particularly in the new build housing sector. House prices are now widely considered to be at affordable levels and transaction volumes are on the rise. The recent announcement of a £9m investment by NAMA in a private housing development in Dundonald is a clear indication that confidence is returning, slowly but surely.
John Armstrong
Executive Stalls In reaction to the collapse in construction output, the loss of 34,000 jobs and the economic fallout, the Northern Ireland Executive has simply not done enough. There have been some positive steps taken but all too often the initiatives have been uncoordinated, slow to materialise and small scale. But now it is imperative that the Northern Ireland Executive takes action. For a start the Executive needs to ensure that every pound allocated to building projects is actually spent on building projects. Even though the block grant has been reduced some departments are still struggling to get their budgets spent.
“There is great hope that the deceleration in the pace of decline in construction output is the first signal that we are near the bottom.” 66 MAY 2013
The Federation has warmly welcomed the Education Minister’s announcement of 40 new schools in the last year. However the industry is frustrated by the slow progress of these projects. It is now time to convert good intentions into work on the ground and realise the significant economic and social benefits that these projects can deliver. Detailed plans for spending the £225m of additional capital funding announced in the Autumn Statement 2012 and the Budget 2013 need to be made public urgently. The reallocation of the funding for the postponed A5 project must be completed by the end of this month. Mechanisms must be put in place to ensure that the funding allocated to building and maintaining social housing is spent in full. An increase in new build private housing needs to be facilitated. Economy Crawls In crude terms, the construction industry directly contributed £3bn to the local economy in 2007. By 2012 that direct contribution had reduced to £2bn. For a small economy like Northern Ireland the loss of a billion pounds has been a major blow. This loss has been compounded by the reduction in output from a wide range of other sectors that rely heavily on the construction industry. The local economy is now crawling along. Whilst there are many factors that have led us to this point, the collapse in construction has been a major contributory factor. On the flip side, a recovery in the construction sector can drive economic growth across the whole of Northern Ireland. Every £1 invested in construction generates £2.84 in wider economic activity and investment in buildings or infrastructure provides a platform for further economic development. The NI Executive has the power to help get the Northern Ireland economy off its knees. After a punishing five years, the local construction industry certainly believes it is high time that the Executive put those powers to full use.
Insurance Brokers & Risk Advisors
We stand on our own 200 feet
When it comes to providing independent advice on corporate insurance and risk management, we take pride in our ability to stand on our own two feet, (well, 200 to be precise). With 100 experts on the ground, we are the largest locally owned and operated corporate insurance expert in Northern Ireland. So you can trust us to bring you precisely the right advice and service for your business. Year after year.
For further information contact Maurice Boyd, Managing Director Direct Dial 028 9332 5031 Tel 028 9335 0015 maurice.boyd@ablinsurance.co.uk www.abbeybondlovis.com
COMMERICAL PROPERTY & CONSTRUCTION
Surviving material damage Being forced out of your main business premises for a time can cause real headaches for all types of organisations. Ulster Business asked Stephen Carlisle from Abbey Bond Lovis how the right insurance coverage can limit the damage it causes to business. • In addition to selecting a sum insured, the insured also needs to select an indemnity period which is defined “as the period beginning with the occurrence of the damage and ending not later than the maximum indemnity period there after, during which the results of the business shall be affected in consequence of the damage”. Chosen indemnity period is therefore the maximum period over which insurers will pay the claim, subject to the adequacy of the sum insured. This is an aspect of the process which again requires a thorough understanding of the business concerned. Invariably a 12 month indemnity period is too short a period and it is not uncommon to see indemnity periods of 24, 30 or 36 months. The period should cater for not only the reinstatement of the premises in conjunction with the sourcing of new plant but also allowing the business breathing space to return to the pre-incident trading level.
There have been a number of fires at Industrial/Manufacturing premises in the news recently. What insurance should a business have in place to guard against the cost of such events? A properly structured Insurance Programme will provide insurance protection against a variety of risks which can impact on a business. In a fire situation, primary areas of protection will revolve around Material Damage insurance – the insurance of buildings, machinery, plant and stock – and Business Interruption insurance, which provides protection against financial impact on a business during a period of non operation or interrupted operation, including loss of profits/revenue and additional costs incurred. Can you provide more detail of what is covered by Material Damage insurance? Material Damage is the more tangible element of any claim, whereby it is apparent if there is fire damage to the assets of a business. Subject to appropriate levels of sums insured, the Material Damage insurance can reinstate the buildings and machinery and plant and provide compensation to the insured company for the loss of stock, which includes raw materials, work in progress and/or finished stock. Is the Business Interruption element of a claim generally more complex? Yes, the Business Interruption element of any
68 MAY 2013
claim tends to be more complex and there can be large elements of uncertainty with regard to the potential financial impact on a business, as a result of a significant fire, particularly where it is a single location business. Given the complexity of Business Interruption insurance, what do you see as the most important elements? There are a number of potential pitfalls whilst arranging Business Interruption insurance which can include the following: • Different forms of Business Interruption insurance are available and vary depending on the nature of the insured’s business. For example, a manufacturing operation will tend to insure on a conventional gross profit basis, whereby a hotel would traditionally insure on a gross revenue basis. Therefore it is vital for the insurance broker to understand their client’s business and tailor the insurance placement accordingly. • Care needs to be taken in the formulation of an appropriate sum insured, so for example the insurers will, subject to the adequacy of a sum insured, insure the wageroll of the business during a period of interruption and the client may wish to take a view as to whether they insure 100% of wageroll or for example only the managerial element of wageroll.
You mentioned potential additional costs as a result of an interruption. How would a Business Interruption placement deal with such costs? Business Interruption insurance includes increased cost of working protection and therefore the cover will include additional costs incurred in order to prevent a loss of gross profit arising but not exceeding the amount that would be payable if the latter did transpire. This is generally known as the economic limit. Overtime working by staff to avoid a loss of turnover is a good example. Circumstances may develop depending on the nature of the business activity, whereby for the long term benefit of the business costs may need to be incurred during an interruption period, which are non economic. It should be noted that Business Interruption insurance can be extended to include additional increased cost of working, which again subject to policy limit, etc will provide cover for non economic costs. So for example the air freighting of replacement plant could be viewed as a prudent course of action for the business to take. From experience this can be a very valuable form of insurance cover, as it allows the insured to make quicker decisions and they do not have to justify every pound of expenditure, provided it is prudent and reasonable. Stephen Carlisle FCII is a Director at Abbey Bond Lovis Ltd. He can be contacted on: 028 9332 5032; email: stephen.carlisle@ablinsurance.co.uk or visit www.abbeybondlovis.com
Spotlight on DerryLondonderry
SPOTLIGHT ON DERRY-LONDONDERRY
Is Derry-Londonderry in for a post-party culture shock? The UK city of Culture 2013 programme is in full swing but what will the tangible, practical legacy of City of Culture be for Derry-Londonderry at a social, economic and cultural level? Stephen McVey reports.
H
ow far can the feel good factor be stretched following on from a festival year? Organisers of Derry-Londonderry’s City of Culture year believe the first steps in creating a long term legacy and changing the image and reputation of the city have been taken. Derry certainly now looks the part. It has piqued initial interest with new-found beauty, charm and the exciting feelings of something fresh. But it is also widely acknowledged that it’s going to take more than ‘one big weekend’ of fun to build something sustainable. Sharon O’Connor is the chief executive of Derry City Council; she argues that the dividends of the City of Culture can already be witnessed. “It has been going really well and I think everybody is really happy with the events. We have new cafes and restaurants opening now that
70 MAY 2013
wouldn’t have happened in a time of economic downturn were it not for the fact we have this cultural offer,” she says. “There is the thriving technology company, Kainos, which located in the city bringing very high quality jobs, who stated they would not have considered Derry were it not for the fact that the City of Culture project caught their attention. So we are seeing real tangible benefits but it’s not a matter of counting the takings on 1st January 2014, you have to see this as a long term thing.” Robert Palmer is an expert consultant who has worked in the cultural sector for more than 30 years. He has advised cities in more than 20 countries on cultural development and was the Director of two European Capitals of Culture (ECC) – Glasgow (1990) and Brussels (2000). He doesn’t believe there is any “magic wand” that can be waved by the cultural year in terms of legacy.
“Sometimes there are mistaken claims that a year of culture can resolve, or in some way make very significant sustainable contributions to factors such as employment. I think it has been exaggerated. Some cities have been more successful than others with this, but if the gauge of success is related only to economic factors, then it’s far too limited a measurement to determine success or failure of a City of Culture,” he said. It’s a theme picked up on by Liz Meaney, the Arts officer of Cork city, who was involved when Cork held the title of ECC in 2005. She believes it takes time following a festival before benefits can be realised. “There is an initial impact from tourism spend as part of any major cultural event and that does trickle down and benefit direct and indirect employment, and you can and should monitor what those impacts are. But there is a broader
SPOTLIGHT ON DERRY-LONDONDERRY
“THE LEGACY IS ABOUT SOCIAL BENEFITS NOT JUST PURE, HARD, COLD CASH IN TERMS OF ECONOMIC RETURN.” SHARON O’CONNOR legacy. Cities are in competition with each other, they are in competition to prove their identity and give people a reason to come and invest, live and visit,” she said. Sharon O’Connor has pinpointed Glasgow’s success and reversal in public perception as the model Derry is following. “That’s the kind of inspiration that is appropriate for us. What we are trying to do is to introduce the city to people who perhaps only have black and white images of the troubles in their head, to give them bright colours and a contemporary forward looking city image. I think in that respect we are already successful.” Ms O’Connor remarked that the economic benefits to being city of culture have been quoted out of context and reiterated that targets stipulated within ‘The One plan’ were set with the year 2020 in mind. “If you have a look at the One Plan, it’s a 10-year ambition and the target during that time is to attract about £500m worth of investment and double our tourism revenue. Now this is over a 10 year period and a lot of people have got confused about this sort of ambition for the city. We are not expecting to make millions of pounds of revenue in 2013, but what we are expecting to do is to see the benefits over a number of years. That was Glasgow’s experience as well – it wasn’t a flash in a pan, it was about a longer term approach.” The City Council CEO also doesn’t see Derry’s year as city of culture is simply a momentary money-earner. “The fact is that even in an economically challenged period we have seen new businesses open, we’ve got new entrants to the tourism industry and we’re attracting some high quality jobs that we wouldn’t have attracted in other circumstances. But I think the whole bid was about economic and social opportunities. The legacy is about those social benefits not just pure, hard, cold cash in terms of economic return,” she said. In Robert Palmer’s experience, social development is sometimes no more than rhetoric from organisers who are full of good intentions. However, in the case of Derry-Londonderry he is seeing initial signs of promise. “In some cities there have been major
developments in terms of improving social inclusion, of dealing with issues of division within the cities. In other cases there are cities where the events themselves have actually increased exclusion. So it depends how the city has managed the process of social engagement – the fact that the objective has been set doesn’t necessarily mean the city has achieved that objective,” he said. “But in the case of Derry, which I have been following, I believe the city has set out with a deliberate process to achieve this and although it’s early days there appears to be initial evidence that this process is having some effect. Whether the effect is sustainable or not is impossible to say until after the event itself.” A recent survey revealed that three quarters of Derry residents felt there was a need to improve employment opportunities and 52% also believed cross community relations needed to improve. There is a thin line when managing the expectations of citizens before, during and after a city of culture year, but Liz Meaney believes the positives outweigh the negatives when it comes to an optimistic attitude. “The affirmation of being given the nomination of city of culture is enormously important for the individuals who are operating culturally and also for the citizens themselves,” she said. “When a city delivers to their targets,
they then have a confidence to go on into the future and deliver programmes that perhaps they hadn’t even imagined that they could deliver on. So their ability and capacity is hugely enhanced by the year itself.” Aberdeen is one of the bidders for UK City of Culture 2017 and has already garnered support from well known names such as Scottish comedian Billy Connolly. Bid manager, Rita Stephens has expressed Aberdeen’s desire to move away from their existing associations with oil and gas and promote its rich culture. “We are going all out to win this bid. It’s such an aspiration for Aberdeen because we have a very rich cultural offering already and we see the City of Culture bid as a catalyst to enhance that and also to bring it out of the shadows. The important thing for us is to focus on the big picture – that we create this step-change in culture and leave a legacy for our current and future generations,” she said. Robert Palmer stresses that a city of culture cannot be abandoned by financial and political supporters once the year has finished. “There is no way in which sustainable legacies can take place without continued investment, perhaps not at the level of investment of the cultural year itself, but any development has to be linked to additional resources. Finally there needs to be leadership – of course by the City Council but also leadership responsibilities of all the key stakeholders involved in the City of Culture.” This appears to be supported by the First Minister, Peter Robinson who claimed a further £15m would be invested in Derry and stated that “the Executive will continue to play its part in making sure the 2013 UK City of Culture will be a success”. The city of Derry can be proud of its first four months as the UK City of Culture. However the key challenges lie ahead. If tourists are to return, the city needs to make a lasting impression. For the businesses and investors who had their heads turned during the carnival atmosphere in 2013, they will need to be charmed all over again in the cold light of day. But on January 1st 2014, Derry will at least have a shot at sustaining their successes.
“CITIES ARE IN COMPETITION WITH EACH OTHER TO PROVE THEIR IDENTITY AND GIVE PEOPLE A REaSON TO COME AND INVEST, LIVE and VISIT.” LIZ MEANEY MAY 2013 71
SPOTLIGHT ON DERRY-LONDONDERRY
Digital Derry: so far, so manic Mark Nagurski, Derry-Londonderry’s Digital Champion and Director of the CultureTECH festival says progress has been made with the plan to make Derry a digital hub.
T
he idea for some kind of project to help jumpstart Derry-Londonderry’s digital sector first started gaining traction back in mid-2009. At that point, the rationale was pretty simple. The city had decent, and rapidly improving, digital infrastructure. The city had access to good talent coming out of third level institutions on both sides of the border. And the city had a reasonable smattering of relevant FDI companies. Peripherality had always been a consideration for DerryLondonderry, given, as it is, on the edge of the edge. But in the digital world this was less relevant and if Derry didn’t figure out how to play in that digital world, it was certainly going to miss a trick. Fast forward a few years and an awful lot has been accomplished. That initial work, culminated in a two year project – Digital Derry – which was financed by Derry City Council, urban regeneration company ILEX and others, and delivered by the Londonderry Chamber of Commerce. The initial goals set for the project were met and exceeded. Events were held. Buzz was created. Everybody seemed to have, at the very least, heard about “Digital Derry”. The “buzz” aside, what really struck home was the huge number of new companies that started during that period. From Summer 2010 to March 2012, the number of ‘digital’ companies grew from a baseline of 60-70 to over 120. Many of those fledgling companies have yet to break through; others have since failed, with still others taking their place. What has been so exciting is not necessarily the success of these companies but rather the sheer number of young, talented entrepreneurs keen to have a go. They had undoubtedly always been there, but the marketing focus, events and small-scale seed funding opportunities which Digital Derry supported helped, in part at least, to catalyse that pent up demand. From that crop, the best have started to see real success. Children’s media company Dog Ears (which started just before the first phase of Digital Derry began in Summer 2010) has
Mark Nagurski (right) with London Tech City’s Ben Hammersley
gained well-deserved plaudits and column inches with a series of impressive releases and contracts with major players like Penguin. Growing firms too, like 360 Production and Learning Pool, have continued to win new business and expand their own. If you considered Digital Derry as a startup itself, you could say that it’s been through its own seed funding phase and gained some early market traction – culminating in the signing of an MOU with London’s Tech City in August last year. Digital Derry Phase 2 is now in the works, and like most good startups there’s been a pivot or two. Where the Digital Derry Phase 2 project will continue to focus on building the energy in the sector and working with prospective and newly minted entrepreneurs; new initiatives have also entered the fray to complement this work. Although it started as little more than an idea for a conference, CultureTECH is rapidly developing into a year-round programme of activity, culminating in what will be one of the largest digital events on the island of Ireland this year.
“LIKE ANY REGION TRYING TO MAKE A NAME FOR ITSELF IN THE DIGITAL WORLD, DERRYLONDONDERRY FACES CHALLENGES.” 72 MAY 2013
The CultureTECH Festival and related programme of activity is being driven and managed by the private sector, albeit with plenty of public sector partners. And in typical private sector fashion, the goals are immense. This year’s festival is pitching big with in excess of 100 individual events crammed into one exciting week in early September. No fewer than four additional events are being discussed for early 2014, in markets as far afield as Brussels and New York. Indeed, the nexus of arts/culture and technology is becoming something of a USP for the city, as is befitting the first ever UK City of Culture. Like any region trying to make a name for itself in the digital world, Derry-Londonderry faces challenges. Startup companies still need better access to capital, which is hard to come by. They need help in building experienced management teams, tapping into new markets and internationalising quickly – but these problems are not unique to Derry, or even Northern Ireland. Digital Derry’s biggest breakthrough in the last few years has been the now dozens of exciting young companies – and even more following quickly behind – who are keen to face these challenges.
Mark Nagurski is the Director of the CultureTECH Festival and previously Derry-Londonderry’s first Digital Champion.
N
WRC is one of Northern Ireland’s largest further and higher education providers and has vast resources and expertise that local enterprises can avail of. From the knowledge and experience of the expert teaching staff, to the modern industry standard facilities, the Connected project has matched the needs of small companies and medium enterprises requiring bespoke support to help them stand out from the competition. A key example of the practical support on offer came through the School for Hospitality, Tourism and Sport, which delivered a new website and online Marketing Strategy for Donegal Prime Fish, utilising the expertise of Business Innovation Centre NORIBIC. Butchers from across the North West were provided with a practical session to improve the culinary value of their products with Community Chef Brian McDermott, and a demonstration from celebrity chef Neven Maguire. Small accommodation providers gained practical advice at a session from the College Tourism staff on utilising social media to drive bookings, while Social and Online opportunities were also promoted to small businesses from Derry~Londonderry at ‘Make IT Your Business’, with speakers from InvestNI, The Information Commissioner’s Office and Digital Derry highlighting the opportunities that commercial businesses can make the most of cost effectively. The College, in collaboration with University of Ulster is also working through Connected to raise the opportunities and options for local pupils and students in key areas that will
Eleanor Keanie, NWRC Lecturer in Health and Social Care pictured with Victor Robinson, Lecturer University of Ulster, Glenn Hinds, Motivation & Coaching Consultants and Felicity McCall, writer and compere of the ‘Emerging Challenges in Alcohol and Substance Misuse’ Conference organised by NWRC
www.nwrc.ac.uk
nwrc advertorial for ulster business mag 3.indd 1
Celebrity Chef Neven Maguire with Butchers on the ‘Cut Above’ practical workshop at North West Regional College, exploring how to add culinary value to their products.
further drive and develop the local economy. Addressing the shortage of females in the Computing and IT industry, NWRC’s ‘Only Girls Allowed’ conference brought together leading female professionals in to share their industry experiences with College students and post-primary pupils from across the North West. Representatives from Barclays, Allstate and Seagate helped the female students to see that there are excellent prospects, and that they can gain the skills employers require at North West Regional College. While the College has a wealth of knowledge and experience to share, it has also embraced the ethos of the Connected project to exchange links between academia and the workplace and has organised a range of successful conferences bringing regional and international speakers to Derry~Londonderry to foster new working relationships and to share research in the fields of Health and Social Care, Higher Education and Multimedia. Within Engineering students have been able to avail of a wider range of site visits and the College has hosted Technical Meetings for the Institute of Civil Engineers as a result of support from Connected.
the benefits of collaboration are of great value to businesses and the staff and students at the College. 360 Production, a Derry production company completed 52 short programmes for Head Squeeze TV, with live science experiments shot using NWRC media facilities during 2012 and 2013. Students were involved in production and post-production and received credits on the completed programmes. Subsequently, eight of the College’s media students have been given employment contracts by 360 Production for Summer 2013. Further projects and collaboration are planned into 2014 and opportunities are available for additional small or medium sized business looking to get connected to College expertise that could make a real impact to their bottom line. Contact North West Regional College’s dedicated Business Support Centre on 028 7127 6000, visit www.nwrc.ac.uk or the Connected website www.connected.ni.org
With North West Regional College’s state-ofthe-art facilities available to local companies,
028 7127 6000
4/24/2013 2:33:36 PM
SPOTLIGHT ON DERRY-LONDONDERRY
Rise of the creative class Richard Florida, author and Senior Editor of The Atlantic, as well as a Professor at the University of Toronto and NYU, speaks to Ulster Business ahead of the EBN Conference in Derry. The theme of your lecture at the EBN conference is “cultural innovation” – how do you define cultural innovation? For me, cultural innovation is the constant improvement and refinement of the way we approach business, arts, creativity and our everyday lives. Whether through technology or the improvement of how we tap into the creativity of our citizens, cultural innovation is a process that is constantly repeating and refining. Is cultural innovation an organic phenomenon or can it be planned? Cultural innovation can be both. But most importantly it requires tapping into the creativity of everyone. Just as I wrote in The Rise of the Creative Class, I still believe every single human being is creative. For the first time in human history, the basic logic of improving our economy and driving business innovation requires the further development and use of human creative capabilities. The great challenge of our time is to find ways to tap into every human’s creativity. Is there evidence to suggest common traits in the most innovative companies? Sure. The most innovative companies do three things to help drive innovation and creativity. First, innovative companies eliminate the distractions for their creative workers; this allows employees to remain fully engaged in their work. Second, innovative companies take an active role to help spark the creativity of their workers. This includes developing authentic work environments and spaces that help to engage creative workers. Finally, creativity is embedded in relationships, and it thrives among people who have worked together a long time. What would be your message to a city like Derry, which aspires to become a hub for creative, digital and hi-tech industries? It goes back to the three T’s of economic development: Talent, Technology, and Tolerance. The 3T’s approach represents a comprehensive strategy for cities like Derry to compete and prosper in the creative age. The driving force behind any effective economic strategy is talented people. We live in a more mobile age than ever before. People, especially top creative talent, move around a lot. A community’s ability to attract and retain top talent is the defining issue of the creative age. Technology and innovation are critical components of a community or organisation’s ability to drive economic growth. To be successful, communities and organisations must have the avenues for transferring research, ideas, and innovation into marketable and sustainable products. Universities are paramount to this. Economic prosperity relies on cultural, entrepreneurial, civic, scientific, and artistic creativity. Creative workers with these talents need communities, organisations, and peers that are open to new ideas and different people. Places receptive to immigration, alternative lifestyles, and new views on social status and power structures will benefit significantly in the creative age. Based on your Creative Class theories, what are the prospects for Ireland? Future prospects for Ireland are good. The economic down turn has dramatically impacted and reshaped our economic geography. Places with diversified economies and high concentrations of highly educated people and those that work in the “creative class” have done much better in weathering the current economic storm. Ireland has a large creative class – more the 39% of the workforce. The key will be continuing to focus on nurturing creative industries and building cities and communities that are authentic and provide a high quality of life.
74 MAY 2013
SPOTLIGHT ON DERRY-LONDONDERRY
NW a good base to expand globally Peter Cunningham, Financial Controller, Gartan Technologies (left) with Malachi Eastwood.
Gartan Technologies is a technology company which has pioneered intuitive software for the emergency services sector in availability and roster management. Now employing nearly 20 people, doubling turnover in three years and with a significant client base in the UK and Ireland, Malachi Eastwood, MD of Gartan Technologies has plans for further expansion. He explains why being based in the Northwest has been a catalyst in the company’s success.
“I
t was never an option to locate anywhere else other than Letterkenny, Donegal. We secured a modern office with excellent broadband and facilities. The town has lots of amenities, excellent schools, shopping and cultural events. Many people return to Donegal because they want to bring their kids up here and for a better quality of life,” commented Malachi Eastwood, MD of Gartan Technologies, referring to the merits of doing business from the Northwest. Gartan Technologies develop workplace management software, predominantly in the emergency services sector and have moved it from being merely a recording tool to one which organisations can use strategically. The company call their product suite “Gartan Managed Time®.” Comprises Availability, Roster and Payroll software designed to help improve efficiency and performance in organisations. According to Malachi: “The biggest benefit of being located in Donegal is the quality of staff and their commitment. We’ve hired many people who have worked in cities at big corporations and they welcome working in a smaller and freer environmnent. We want our staff to bring us their ideas and feedback, that keeps our products ahead of the game and it creates a very healthy working atmosphere.
Equally we’ve hired people straight out of college – the Letterkenny IT has an excellent computer studies course – and that has been very successful too. It’s meant we’ve been able to build a team which is top notch.” It seems that Gartan Technologies don’t reflect the usual norms in this industry. The company has grown and expanded in the last four years in the face of a tough recession in the UK and Ireland and received the ISO 9001:2008 Quality Assurance accreditation in 2012. “Our business model was never the traditional one for technology, we identified a gap in offering a software product to manage availability of part-time staff in the UK Fire Service which didn’t exist. Now over 20 UK FRS use it. We’re not based in a city. We don’t have a massive upfront fee for our products. We’ve always zeroed in on the needs of our customers and who is using the software at different levels. We’ve expanded our business by listening to our customers and believing there was a better way to do things.” Gartan operate a unique licensing model where customers don’t have to come up with a massive investment at the start but rather have access to a pool of hours. “Being located in the Northwest is just
another instance of looking at our options from a different point of view and it has definitely helped us grow. There is real value for money in office space, communications, overheads, without any compromise on quality. Since our business is in software it can translate to anywhere, and in fact most of our business is in the UK. Our clients love to come to visit us here, they get an added bonus of the wonderful surroundings.” Gartan Technologies plan to expand their product to other markets and to new industries.“Our focus is to provide reliable software, flexible enough to meet the needs of the organisation both now and as their needs evolve in the future,” adds Malachi. Gartan Technologies employ 18 people at their Head Office in Letterkenny. “The Northwest has a lot to offer businesses in terms of value for money and well qualified people, the world is a very small place. I’ve definitely no plans to move no matter how much we expand.” To find out more about Gartan Managed Time products contact Malachi Eastwood Managing Director, Gartan Technologies at meastwood@ gartantech.com or on tel: + 353 74 91 26608 or visit www.gartantech.com
MAY 2013 75
Cathy Hopkins and Ben Clayton
SPOTLIGHT ON DERRY-LONDONDERRY
76 MAY 2013
PROFILE
Premier Inn thriving in Northern Ireland market Ben Clayton and Cathy Hopkins are at the forefront of Premier Inn’s continued growth in Northern Ireland. Ulster Business caught up with them to ask what is behind the hotel chain’s success here, and whether we can expect more new hotels to open in future.
I
t might surprise some people to hear that Premier Inn is now Northern Ireland’s largest hotel group, with seven hotels across the province. The brand – which many people will know from its adverts featuring comedian Lenny Henry – only made its first foray into the market in 2006, when it opened the Premier Inn Carrickfergus. But since it has unveiled a steady stream of new hotels in Belfast, Coleraine, Lisburn and most recently Derry. The Premier Inn Crescent Link opened five months ago, just in time for the start of Derry-Londonderry’s year as City of Culture and the celebrations that have accompanied it. Despite the prolonged economic downturn, all of the company’s hotels are trading well with strong occupancy and turnover, according to Ben Clayton and Cathy Hopkins, the two senior managers who share responsibility for Premier Inn in the region. “The figures aren’t officially out yet but if you look back over the last 12 months it is the most successful year Premier Inn has ever had in Northern Ireland in terms of occupancy and sales growth. It has been a fantastic 12 months that has been supported by a range of events across not just Belfast but Northern Ireland,” says Ben. Cathy adds: “We’re always conscious of what the competition is doing in terms of pricing and product. But we know what our core strengths are and we concentrate on doing those really well, which has stood us in good stead.” Both in their early 30s, Cathy and Ben are two of the younger senior managers employed by Premier Inns’ parent company Whitbread. Both have been with the company for more than six years and progressed through the ranks to their current management roles. Speaking with them at its Waring Street hotel in the heart of Belfast, it is clear that both enjoy what they do and are full of enthusiasm for the company, its hotels and their staff. “It is a bit of a cliché but it is true to say that here no day is ever the same. It can’t be when you’re operating a business that has constantly revolving guests. Every day is different and that’s what is exciting about working in
hospitality,” says Ben. He initially came to Northern Ireland from Liverpool to help set up the first Belfast hotel on a two week secondment and ended up staying as food and beverage manager. Remaining on the operations side of the business he worked his way up to general manager of Waring Street before taking on responsibility for the Premier Inn at Titanic Quarter and then moving on to the area manager role. Cathy in contrast came on board as sales manager for the company’s Alfred Street hotel and went on to a multi-site regional sales role for the whole of Ireland before moving to her current operational role looking after the four hotels outside of Belfast. “We have different backgrounds but ended up in the same place. I think we have a good mix of skills between us that has worked well in running the seven hotels,” says Cathy. Ben agrees, adding: “I think it speaks volumes that we have come up through the ranks and we are the people driving the business forward in Northern Ireland as it looks to grow and expand.” EXPANSION The Premier Inn managers share the company’s ambitions to ultimately have 15 hotels in Northern Ireland, with a number of major towns and city locations currently being considered. While those sites are evaluated the team are working to establish the Crescent Link hotel in Derry in the community, supporting local charities and also raising its profile within the business community in the city. The first five months have flown by, says Cathy. “We’re really pleased with how it has gone
and really proud of it. City of Culture has been great in terms of all the events, but from our perspective what we need to work on is the corporate base because we don’t want to get to the end of the year and wonder where all the people have gone,” she says. “The team at the moment are looking at service delivery and the events that are coming in. While they are focused on the here and now I am getting out and meeting corporate leaders and looking at what happens after the events. I’ve been showing round as many business leaders as I can and because we have a good night guarantee I can say to a business person, ‘come and stay with us because if you don’t enjoy it we’ll give you your money back’. That’s a strong selling point.” Premier Inn’s offer as a value brand means it attracts a broad base of clientele, from the traditional business traveller to the leisure market. However, the managers of its Northern Ireland business don’t rely purely on the brand as a means of attracting customers and getting them to come back again. “Our strength is the consistency of our product but we have also adapted. When I started six years ago we had one price – our price was our price and that was a strong selling point. But in the current market we’ve had to respond so people have more flexibility on pricing, for example so that when we’re quieter people can get a cheaper price,” says Cathy. Ben adds: “When you look at the number of hotels there are to choose from it is a very crowded market compared to where we were when we first started. That we have succeeded is down to our consistency but also getting the right teams in our hotels and letting people >>>
“Our goal is to get to 15 hotels in Northern Ireland in the next few years. We’re only going to do that by having the right team behind us.” MAY 2013 77
PROFILE
Mayor of Derry-Londonderry, Councillor Kevin Campbell; Foyle MP Mark Dukan; Cathy Hopkins, cluster general manager for Premier Inn Northern Ireland; and Adam Harris, team leader, Premier Inn Derry-Londonderry were joined by a Chivalrous Gent to celebrate the official opening of the new 60 bed Premier Inn hotel and 200 seat Brewers Fayre restaurant at Crescent Link, Derry-Londonderry.
know that we’re not about hiking prices up as high as we possibly can. That’s not what we’re about. We would always try to look after our regular guests as best we can without ripping them off. “We’re doing the same during the World Police and Fire Games here. Some of the prices out there are extortionate but we won’t be doing that. Our price will be capped, I’m not sure at what level yet, but it will be capped.” TRAINING Premier Inn is also investing a huge amount of resource in training and people development to help the career progression of its employees – running a number of training and apprenticeship programmes with the Department for Employment and Learning. The company was one of the founding members of DEL’s YES scheme, which aims to get people back to work, and runs an internal management development programme called Shooting Stars which 16 staff from Northern Ireland will go through this year. It is also starting a management scheme for graduates in 2013. “As a brand and as individuals we see that our people are the key. Our goal is that we will get to 15 hotels in Northern Ireland in the next few years and we’re only going to do that by having the right managers and teams behind us,” says Ben. “We don’t necessarily look for people with experience. One of our assistant managers
78 MAY 2013
“We are lucky in that we work for a very strong brand and a company that is innovative.” was a joiner. One of our head housekeepers was a landscape gardener. They don’t have to have worked in hospitality if we can see that spark in them. But we want to make people understand that there are great careers available in hospitality.” Cathy notes that they like to recruit people with “great big personalities” and a can-do attitude that will provide a great experience for guests. “I don’t think there are many big companies out there who are putting the time and investment into their people like we are. The company is allowing us to do that because they see it will help us to grow,” she says. Part of the reason why Premier Inn is backing local team development is the results which the Northern Ireland operation is producing. Last year Northern Ireland finished as the top region in terms of guest scores across the whole of the company and Ben and Cathy were recently asked to put together a training programme to take over to Premier Inn’s teams in Scotland and the North of England to
demonstrate what they do differently here. “It would be very easy just to rely on the brand and the consistency that comes with that, but we absolutely want the personality, we want to be a little bit different. Northern Ireland people are suited to that,” says Ben. “The guest is the most important thing and how we interact with them is really important. We create a fun atmosphere and want the team to enjoy working here. It keeps the team really engaged and makes it fun for us too,” adds Cathy. While it will be a challenge for Premier Inn to follow the success of 2012 and the events which drove increased tourism to Northern Ireland, the management team are concentrating on delivering for their base customers and building that base up ever further. Cathy adds: “We are lucky in that we work for a very strong brand and a company that is innovative. Sometimes it feels like we are constantly changing, but the company has made good choices and we are definitely moving in the right direction.”
Hunter Apparel wears its 77 years well Simon Hunter of Hunter Apparel, a clothing manufacturer based in Derry~Londonderry, answers some quick fire questions about the business and its plans for the future. How long has Hunter Apparel been in existence? Hunter Apparel Solutions Ltd was formed in Belfast in 1936. The Company became a manufacturer in 1952 and uniquely still offers its own manufacturing unit in Northern Ireland to complement what has become a global sourcing operation for all aspects of uniform and PPE clothing. We source product across South East Asia, North Africa, Eastern Europe and other parts of Western Europe as well. The company currently has 45 staff. Who are your clients? Hunter Apparel supplies across a very wide variety of sectors which include; work-wear, PPE, corporate wear and formal uniform wear, taking in clients in retail, financial services, hospitality, food, agri, industrial, post, transport, airline, airport, and blue light sectors. Our clients have included John Lewis, Waitrose, British Airways, and HMRC, and today include the Metropolitan Police, An Post, Canon, Body Shop, British Airports Authority, Royal Flight of Oman, Emirates, Kuwait Airways, and the UK Fire Service. Locally we supply Hastings Hotels, NI Ambulance Service, HSCNI, the Merchant Hotel, NI Fire, Robinson Services, and our local airports. Have you won any significant contracts recently? The most recent wins include a multimillion pound contract for postal operative’s Gore-Tex boots for An Post, a contract for the supply of bespoke corporate clothing both tailoring and work-wear for the Hastings Group of hotels, some specialist work-wear for Agri, the UK’s leading bio-diesel recycler. We have also recently won some framework contracts for PPE, managed services, and uniforms with managed service options across the whole of the UK.
What does the future hold? We believe that the UK economy will remain challenging for at least another several years but that a strong set of finances, an excellent reputation, and a high level of staff and IT capability will help provide our company with global opportunity. Our client base is not restricted to the UK, we have a successful business in ROI, and the Middle East and we are exploring business opportunity in Africa currently. We have a track record of supplying global businesses and have supplied across UK, EMEA and in the Pacific Rim countries. We have just signed a new licence with W.L. Gore the owners of the GoreTex brand to allow us to enter a highly technical new market niche. We are one of only four UK companies licensed to provide technical apparel items to the growing UK utility market sector. How are you investing in the business? We have really reinvented ourselves as a business during the period of this recession and are now a stronger business in all regards than we were before the start of the recession. We are one of the very few businesses in our sector who are without medium or long term debt. This means we have the cash available to invest in strong levels of stock which then allow us to provide agile customer service. We have strengthened the skill base within our Company in the last 12 months. Having downsized staffing during the early part of the recession we have rebuilt our skills base with new staff that have the best possible skills suited to today’s market. Our new staff are IT savvy graduates with an excellent work ethic who are helping transform our business. Hunter Apparel has always invested heavily in IT and continues to do so. We have recently redeveloped our critical path system, our stock forecasting system, and our QC system all of which enhance
Simon Hunter
the speed at which we carry out daily processes, this has helped us reduce cost and become more customer focused. We are starting to see resurgence in demand for our NI factory production. Increasing prices in South East Asia, coupled with decreasing flexibility offered in those countries is starting to bring production back closer to home. We have begun hiring staff to help us manufacture more products at home for the first time in many years. What are you most proud of? We are proud to have survived for 77 years in business and still remain a profitable, cash generative business despite facing the toughest recession in living memory. We are one of only two businesses in the UK in this sector that have remained in the same ownership structure for the last twenty plus years. There is good reason for this success, and it is essentially down to sensible sustainable business practices allowing the business to invest at the appropriate times and grow when the opportunity permits.
Hunter Apparel Solutions Ltd Unit 9, Springtown Industrial Estate, Springtown Road, Derry~Londonderry, BT48 0LY Tel: +44 (0) 28 7126 2542 www.hunterapparelsolutions.com
SCIENCE
Are we falling behind? This month scientific innovator Professor Jim McLaughlin of the University of Ulster and MATRIX Panel member says Northern Ireland faces a difficult struggle as it tries to compete in today’s increasingly tough international business world.
I
t is important that we understand the needs of global industry and align our skills capability to instigate greater numbers of indigenous companies forming, whilst additionally improving the quality of inward investment. High quality peer and business review, with appropriately qualified graduates in STEM subjects in addition to a well-supported entrepreneurial environment are key elements to success. Net benefits will include attracting the best and highest calibre staff as well as keeping our own graduates by providing them with stimulating, challenging and progressive companies to form their careers. One way of achieving this is to develop a range of ECO systems with strong leaderships across key sectors. It will be important to attract stakeholders comprehensively from across the disciplines including all levels of education, industry, government, innovation support and user groups. Creating a true entrepreneurial environment will require attracting leadership from people that have achieved business success and truly understand the meaning of taking risk, breaking down the barriers and driving a knowledgebased economy forward. The ability to introduce novel routes to success, work inventively with IP and encourage members of a ECO system to get behind a long term goal, are all pivotal if Northern Ireland is to realistically compete. Some great examples are found in San Diego, Silicon Valley and Singapore, where the positive experience is tangible from student to innovator facilitating ambition and success through a knowledge based economy. Investment is also key, however funders will always be attracted to opportunities that are well reviewed and risk is minimised. Again a local ECO system will help with networking, confidence building and allow rapid assessment of the supply chain. However local government, like many regional authorities should be prepared to help with seeding the catalyst themes such as Centres of Excellence, Open Innovation Centres or key enabling facilities. Important areas that require focus is the need to keep driving STEM subjects and in particular
Prof. Jim McLaughlin, pictured with business secretary Vince Cable and vice-chancellor Prof. Richard Barnett at the NIACE centre, is worried Northern Ireland is falling behind when it comes to innovation.
underpinning mathematics. We continuously need to be pushing this agenda, as the study of these subjects produces an individual with an enquiring, analytical and lateral thinking mind. These attributes, along with good employability skills are now at the heart of many of our pioneering companies and this fundamental requirement will become increasingly more important as the Big Data and Cloud analytics era emerges. Companies with needs in design, programming/IT, engineering, diagnostics and pharmaceuticals are all examples of local enterprises that require the best quality staff to develop and grow. Within Northern Ireland we need to keep addressing this issue and to actively develop ‘grand challenge’ interest to further strengthen our graduate base. While there are some excellent activities based at the local universities, NISP and throughout Northern Ireland, I am cognisant of the ways in which Northern Ireland’s innovation community is operating below par including: • The levels of R&D investment is amongst the lowest in the UK and although improving this is mostly seen in the very large companies
“INNOVATION IS THE LIFEBLOOD OF OUR ECONOMY, AND THE KEY TO SUCCESS IN INTERNATIONAL BUSINESS.” 80 MAY 2013
• Northern Ireland needs thousands more knowledge economy workers when compared and benchmarked against international regions such as San Diego • NI’s normalised annual patent applications are just a quarter of the number in the Republic of Ireland • A growing PhD shortfall in our universities • The level of business start-ups and spin-outs in NI is among the lowest in the UK Recognising these type of shortfalls and developing strategies to address these areas of negativity is fundamental to Northern Ireland’s future success. In a recent address to MLAs, academics, investors and public administrators, I hit out at what I call public sector bureaucracy and riskaversion as one of the key factors hindering the transfer of innovative ideas into the commercial world. Innovation is the lifeblood of our economy, and the key to success in international business. We’ve fallen well behind international norms – and we need to act quickly before things get worse. Professor McLaughlin, a leading international scientist and entrepreneur in the field of healthcare sensor technology currently heads up Connected Health at the University of Ulster as well as co-founder of Intelesens Ltd.
Executive Motoring By Pat Burns
Sponsored by
www.fleetfinancial.co.uk Extra comes as standard
MOTORING
Man the Van A
new Transit van is always an important occasion in the LCV world and Ford has just launched a new Transit Connect which has won the 2013 International Van of the Year award. The Transit Custom is a new kind of 1-tonne van – hard working and practical, but great to look at and great to drive. The van has broken new ground to earn a first-in-class five-star safety rating from Euro NCAP. The 2013 “International Van of the Year” scored 77 per cent overall after being subjected to Euro NCAP’s new heavy vehicle crash tests; achieving best–in-class marks for child protection (90 per cent), adult protection (84 per cent) and safety features (71 per cent). Ford also received the first-ever Euro NCAP Advanced rewards for technology available on a commercial vehicle. Lane Keeping Alert brings Ford’s total of different Advanced rewards to seven – more than any other manufacturer The Transit Custom offers class-leading load-carrying ability, including a number of innovative loadspace features such as the loadthrough hatch in the bulkhead for extra-long items, and the integrated roof rack which can be folded away when not in use. The driver also benefits from the latest Ford technologies like Lane Keeping Aid and Ford SYNC. Class-leading fuel economy with CO2 emissions from 174 g/km is delivered by the improved 2.2-litre Duratorq TDCi diesel available with Auto-Start-Stop, while cost-of-ownership is further minimised by the longest service intervals in the class at two-years/50,000 km/30,000 miles. Over 40 per cent of the body is made from high-strength or ultra-high-strength steels while extensive underbody protection means it comes with a 12-year anti-perforation warranty as standard. The van has a car-like exterior and interior, driving dynamics which are very close to a passenger car, and is a very functional and practical vehicle. The range also features a Custom Sport Van which includes a muscular body kit and a fully colour-coded exterior, with body-colour bumpers, side mirrors, door handles and body-side mouldings. The bold appearance is finished off with stylish 18-inch alloy wheels on low profile 235/50 tyres, and the signature twin bonnet stripes in a contrasting colour. The Transit Custom also features an easy-clean load floor liner offers enhanced durability and simple cleaning. Similar to the load-bed liner in a pickup truck, the sealed load liner is constructed of immensely strong material, and is tailored to the shape of the load floor, extending up to a height of 80mm around the sides of the load area. Not only is the liner easy to mop or sponge clean, it also protects the steel floor from the possibility of damage during loading and unloading, enhancing residual value. Prices for the Transit Custom start at £17,495.
82 MAY 2013
MOTORING
Graham Thompson (General Manager Agnew Corporate), Aaron Bell (Account Manager Agnew Corporate) and Simon Campbell (Managing Director Portview Fit-Out).
Agnews Corporate fit out Portview with van and car fleet
P
ortview Fit-Out is a multi award winning company specialising in the fitting out of shops and retail outlets throughout the UK and Ireland. Based in Belfast, its team of craftsmen travel widely throughout the UK to refit retail units for customers such as HMV and Debenhams as well as many of the large banking groups. Having a reliable and dependable fleet of vans is essential to Portview and to ensure the best fleet at the best price, Portview enlisted the help of Agnew Corporate who has supplied them with twenty-four new Volkswagen vans and two cars. Simon Campbell is the managing director at Portview Fit-Out who commented that the company used to change vans as and when they were needed. “As our business expanded so did our fleet of vans, but we bought vans one at a time, usually financed by a bank and we kept it until it was no longer usable. Over the past year we have been working with the Agnew Corporate who now look after almost all of Portview’s transport requirements. “All our new vans are equipped with the latest Tom-Tom satellite navigation and
84 MAY 2013
tracking devices courtesy of Fleet Simplicity. Working with Agnew Corporate and Fleet Simplicity (Tom Tom) allows us to monitor fuel consumption, costs, mileage and service intervals on all our fleet through their integrated software. “As a business,” continues Mr Campbell, “we get a lot of encouragement from larger customers to be more aware of our environmental footprint and this new range of vans and the Agnew Fleet Manager software will help us do just that.” Graham Thompson is the General Manager at Agnew Corporate and concurs with the team
at Portview. “Volkswagen vans are simply one of the best and more reliable ranges on the road today. Based in Belfast, much of Portview’s work is in London so they need the best possible vans with the lowest running costs. With the fleet of Caddys and Transporters we have supplied and the software fitted to them, Portview can manage and monitor all their transport costs quickly and efficiently. Our Fleet Manager software allows customers to record and monitor all their expenditure on fleet so they can manage their fleet as efficiently as possible.”
MOTORING
MOTORING
New CR-V broadens market appeal
T
he fourth generation of Honda’s popular British built CR-V has just gone on sale and for the first time offers an entry model 2WD version. Prices will start from a competitive £21,395 OTR for the entry level 2.0 i-VTEC manual S grade 2WD model and rise to £30,995 for the top of the range 2.2 i-DTEC EX AWD with manual transmission. The introduction of the 2WD allows the new CR-V to enter the market with a lower entry price, thus broadening the sales potential for this model going forward. Honda has also improved the specifications through the whole of the range, whilst still managing to keep costs in line with the third generation CR-V. The new fourth generation CR-V offers even greater quality, practicality and refinement than its predecessor and with environmental concerns of increasing importance, both the 2.0 i-VTEC and 2.2 i-DTEC engines emit significantly less CO2. With the rear seats in place the boot capacity is a spacious 589 litres and this extends to 1669 litres when the seats are down. The practicality is further enhanced by the addition of keyless entry and power tailgate (standard on EX trim level), which makes it easier for owners to further maximise the boot space. The entry-level S features a high standard specification including 5-inch Intelligent Multi Info Display (i-MID), driver power lumbar support, Idle Stop, Dual Zone Climate Control, cruise control, 17-inch alloy wheels, fabric interior, Hill Start Assist, Steering wheel stereo controls, USB/iPod auxiliary input, one touch folding rear seats. Plus a CD tuner, Vehicle Stability Assist (VSA), Anti-lock braking system (ABD), Electronic Brakeforce Distribution (EBD), Brake Assist (BA), Trailer Stability Assist (TSA) and central locking.
MAY 2013 85
MOTORING
Vauxhall launches executive convertible
F
ollowing the demise of Saab and in particularly the very successful 9-3 convertible, Vauxhall has spotted the potential for a stylish four seater convertible. At nearly 4.7 metres in length, the full size, fourseat, fabric-roof Cascada convertible is longer than an Audi A5 Convertible. The Cascada’s fabric roof can be specified in one of three colours, which can be coordinated with one of ten body colours. Other personalisation options include an array of six different alloy wheel choices with sizes up to 20-inch. With a minimum load volume of 280 litres with the roof down, and up to 380 litres roof up, the Cascada is a practical convertible. In addition, the rear seats benefit from Vauxhall’s FlexFold system, which electrically releases and folds down the 50:50 split rear seats, allowing longer objects to be carried with ease. Crucially for weather-hardened Ulster buyers, the Cascada features a high-quality fabric hood, with optional superior acoustic and thermal insulation thanks to a special layer of polyester
86 MAY 2013
fleece between the outer and inner linings. The key point of any convertible is the roof which on the Cascada is aerodynamically clean and refined, fits perfectly to the pillarless style of the car and disappears completely below a high quality tonneau cover when lowered. Making the Cascada a practical year-round car, the hood can be opened in just 17 seconds, at speeds up to 30mph by an interior switch, or via a button on the key fob. The Cascada comes with a broad range of engines. Starting the line-up is a 1.4-litre (140PS) Turbo petrol, with a manual gearbox, achieving a combined 44.8mpg and 148g/km CO2, and a 2.0-litre (165PS) diesel engine with manual and automatic transmissions, achieving up to 54.3mpg combined and 138g/km CO2. Both engines have start/stop technology. The Cascada is also available with the all-new 1.6 SIDI Turbo ECOTEC petrol engine. The first production engine from Vauxhall’s MGE (Mid-Size Gasoline Engine) family, the unit offers major improvements in torque and overall efficiency. It produces 170PS from 1650-
3200rpm and up to 280Nm of torque, giving a 0-60 time of 9.2 seconds and top speed of 135mph. This engine is available with a new, low-friction automatic six-speed gearbox that contributes towards combined fuel consumption of 39.2mpg and emissions of 168g/km. A high-performance 2.0 (195PS) Bi-Turbo diesel engine with manual transmission will also be available in a few months. The Bi-Turbo achieves a combined 138g/km and 54.3mpg, yet accelerates from 0-60mph in just 8.9 seconds up to a top speed of 143mph. The Cascada brings together all Vauxhall’s latest, innovative technology. This includes options like: AFL+ (Adaptive Forward Lighting) with up to 11 automatic lighting functions; Front Camera System, including Traffic Sign Recognition, Lane Departure Warning, Following Distance Indication and Forward Collision Alert; rear-view camera; heated steering wheel; Hill Start Assist; Side Blind Spot Alert. The Cascada comes in two trims, SE and Elite. Range pricing starts from £23,995 and Elite pricing starting from £26,095.
AWARDS
The award winners were: Lisburn Business Person of the Year (sponsored by Hanna Thompson Chartered Accountants) Winner: Philip McLorinan, Dunmurry Dental Practice Young Entrepreneur Award (sponsored by SERC) Winner: Emma Jane Lawther, Photography by Emma Jane Best New Business (sponsored by Lisburn Enterprise Organisation) Winner: Spirited Drinks Ltd Best Marketing Initiative (sponsored by Bank of Ireland) Winner: Decora Blind Systems Ltd Best Tourism Amenity (sponsored by Lisburn City Council) Winner: Good Cottages Excellence in Customer Service (Non-Retail) (sponsored by Resource Group) Winner: Jo Jingles Lisburn Excellence in Customer Service (Retail) (sponsored by Lisburn City Centre Management) Winner: John M. Hanna Cycles Lisburn
Awards celebrate the best of Lisburn
T
he spirit of enterprise in Lisburn was celebrated as the cream of the city’s business community came together for the fifth biennial Lisburn City Business Awards. The awards, which recognise excellence in every category from manufacturing and marketing to tourism and hospitality, were announced at a Gala Evening in the Lagan Valley Island, Lisburn. This year there were a record 15 awards, including three prestigious new categories of Lisburn Business Person of the Year, Best Marketing Initiative and Investment in Health awards. The Mayor of Lisburn, Alderman William Leathem, paid tribute to the hard work and inventiveness that the city’s businesses display on a daily basis to maintain a thriving local economy. He said: “The winners of these highly competitive awards demonstrate the sheer breadth of business talent that exists in this city. The wider economy may be going through tough times but the sheer industry, imagination and know-how of businesses in Lisburn is continuing to ensure a healthy future for this city.” Alderman Jim Dillon, Chairman of the Economic Development Committee, said the biennial event showcased the commitment and skill of the Lisburn-based companies that contribute so much to the life of the city. He said: “We have much to celebrate in Lisburn. We have a vibrant, strong business sector and these awards rightly recognise the dedication, drive and spirit of enterprise that they encapsulate.” The awards were hosted by Lisburn City Council in association with Full Circle Management Solutions and were open to every type of business within Lisburn. The event was compered by comedian, writer and actor William Caulfield. For more information go to www.lisburncitybusinessawards.co.uk.
Excellence in Manufacturing (sponsored by Montupet UK Ltd) Winner: Smiley Monroe Ltd Best Exporting Business (sponsored by Invest NI) Winner: Brookvent Best Business Growth (sponsored by First Trust) Winner: Solmatix Ltd Best Social Enterprise Business (sponsored by Social Enterprise NI) Winner: Stepping Stones NI Best Licensed Eating Establishment (sponsored by Full Circle Management Solutions) Winner: Del Toro
The winner of the Best Tourism Amenity sponsored by Lisburn City Council was Good Cottages. Elaine and Wesley Good are presented with their award by Alderman Jim Dillon, Chairman of the Economic Development Committee at the Lisburn City Business Awards.
The Excellence in Customer Service (retail) Award sponsored by Lisburn City Centre Management was won by John M Hanna Cycles Lisburn. Gavin Hanna was presented with the award by Alderman Allan Ewart, Chairman of Lisburn City Centre Management.
Best Non-Licensed Eating Establishment (sponsored by Lisburn Chamber of Commerce) Winner: The Avenue Coffee Shop and Business Venue Innovation (sponsored by Gravity) Winner: Presto Clean – The Greener Dry Cleaner Public Health Agency Investment in Health Award (sponsored by the Public Health Agency) Winner: Montupet UK Ltd
88 MAY 2013
The team at Del Toro scooped the Best Licensed Eating Establishment Award, at the Lisburn City Business Awards. Deirdre Fitzpatrick (fourth from left) from sponsor Full Circle presented the award to the Del Toro team: Lee Mullan, Lyndsay Rooney, Anton Campbell, Bronagh Cambpell, Michelle Henderson, Chris Cunningham and Nicky Reid.
AWARDS
1. The Excellence in Manufacturing Award sponsored by Montupet UK Ltd was won by Smiley Monroe Ltd. Noel Dick, centre, from sponsor Montupet Ltd presents the award to Stephen Parker and Mary Monroe from Smiley Monroe Ltd.
2
2. The winner of the Excellence in Customer Service (Non-Retail) was Jo Jingles Lisburn. Karen Welsh from Jo Jingles is presented with her award by Stephen Redford from sponsor Resource Group.
1
3. The winner of the Best Exporting Business Award was Brookvent. Jonny Moore and Robin Marks were presented with their award by Moira Loughran of sponsor Invest Northern Ireland at the Lisburn City Business Awards.
3
4
4. Decora Blinds Systems Ltd won the Best Marketing Initiative. Belinda O’Neill (third from left) from sponsor Bank of Ireland presents the award to Mark Canavan, Nichola McFall and Michelle Cooke from Decora Blinds Systems Ltd. 5. Montupet Ltd won the Public Health Agency Investment in Health Award at the Lisburn City Business Awards. Chris Totten (centre) from the Public Health Agency presented the award to David Sharpe and Stephen Finn from Montupet Ltd.
5
6. The Best Business Growth Award was won by Solmatix Ltd at the Lisburn City Business Awards. Ronnie Morton of sponsor First Trust presented the award to Richard and Norah-Anne Bell from Solmatix Ltd.
6
7. The Award for Innovation was won by Presto Clean – The Greener Dry Cleaner – at the Lisburn City Business Awards. Des and Kate Storey from Presto Clean were presented the award by Draven McConville of sponsor Gravity.
8
8. Dentist Philip McLorinan of Dunmurry Dental won Lisburn Business Person of the Year at the Lisburn City Business Awards. Philip was presented with the award by Susan Dunlop of sponsor Hanna Thompson Chartered Accountants.
7
9. The Avenue Coffee Shop and Business Venue won Best Non-Licensed Eating Establishment. Belinda O’Neill, (second left) from sponsor Lisburn Chamber of Commerce, presented the award to Richard Knox, Theresa McMahon and Carolyn Kerr from The Avenue.
10
10. Photographer Emma Jane Lawther won the Young Entrepreneur Award at the Lisburn City Business Awards. Olivia Kennedy (centre) from sponsor SERC presents the award to Neville and Emma Jane Lawther.
9
11. Stepping Stones NI won Best Social Enterprise Business. Juliet Cornford, centre, from sponsor Social Enterprise NI presented the award to Paula Jennings, Cara Cash, Theresa McMahon and Carolyn Kerr from Stepping Stones.
11
12
12. Spirited Drinks Ltd won Best New Business at the Lisburn City Business Awards. Nick Fenton (centre) from sponsor Lisburn Enterprise Organisation presents the award to Stuart and Barbara Hughes from Spirited Drinks Ltd.
MAY 2013 89
APPOINTMENTS
TREVOR BINGHAM
MICHAELA CHAMBERS MORGAne campioni
MSC Group has appointed Trevor Bingham as Business Relationship Manager. He brings with him a wealth of business experience within the IT industry accumulated over 20 years. Michaela Chambers has been appointed as Funeral Services Northern Ireland Group Manager. She is responsible for managing 30 staff in eight funeral homes from Larne to Donaghadee. UTV has appointed Morgane Campioni as Head of Online Channels with specific responsibility for managing all of UTV Television’s digital content services. Morgane has been with UTV since 2008, most recently in the role of Executive Producer, Online Channels.
JENNIFER KENNA
DARREN McDOWELL
AMANDA MIDDLER
Jennifer Kenna has joined Belfast’s SLA Mobile as Chief Marketing Officer. She brings over twenty years of digital, partnership, and marketing experience with some of the leading global telecoms agencies and airlines to the role. Darren McDowell has been elected Chairman of Chartered Accountants Ulster Society at its 106th Annual General Meeting in Belfast. Darren is a Partner at Belfast based Chartered Accountancy firm Harbinson Mulholland. Amanda Middler has been appointed Regional Sales Manager at Silversea Cruises. With over 11 years’ experience in the sales industry, Amanda will be responsible for developing and expanding sales initiatives across Northern Ireland.
AIDAN RODGERS
ANDY SMITH
STEPHEN GIBSON
Aidan Rodgers has been appointed as SPAR & VIVO Brand Manager at Henderson Group NI. His role involves the planning and management of all marketing activities across the SPAR, VIVO and VIVO Essentials brands in NI. Andy Smith has recently joined Henderson Group NI as Field Sales Manager at Henderson Foodservice. Andy will be responsible for the management and development of seven business development executives covering a wide variety of independent foodservice accounts. Stephen Gibson has joined Henderson Group NI as Channel Sales Manager with Henderson Wholesale Ltd and will be responsible for the sales development of the SPAR, EUROSPAR, Vivo & Vivo Essentials independent stores and strategic management of the independent sales team.
90 MAY 2013
APPOINTMENTS
Julie Andrews has joined the Linen Hall Library as its new Director. Ms Andrews, the first female ever to take the reins of the institution, previously spent five years as General Manager of arts and culture venue the Spectrum Centre in Belfast’s Shankill area.
JULIE ANDREWS
MATTHEW NEILLMcCREADY
ROBERT MONTGOMERY
PAUL McCORMACK
DONNA CONVERY
NED COHEN
MELISSA MAGEE
SUZANNE CURTIS
RYAN McGOVERN
Matthew Neill-McCready has taken up the position of trainee surveyor within Osborne King’s Property Management team, assisting with the day-to-day operations of Osborne King’s Re-structuring, Enforcement and Insolvency (REI) residential portfolio. Robert Montgomery has also joined Osborne King as a trainee surveyor within the company’s General Agency team specialising in asset recovery. He is a recent graduate of the University of Ulster.
PAUL McCORMACK has been appointed Innovation Manager at Belfast Metropolitan College. He has over 20 years’ experience in enterprise, economic development and business support programmes focussed on innovation and competitiveness improvement. DONNA CONVERY has been appointed Commercial and Events Manager at Belfast Metropolitan College. Donna has considerable event management experience and was previously Events and Conferencing Manager at Queen’s University. NED COHEN has been appointed International Manager at Belfast Metropolitan College. He is responsible for driving the College’s International work by developing international student recruitment and leading projects and partnerships in the EU, China, Middle East and India.
Melissa Magee has been appointed as Senior Account Executive in Freshwater PR’s Northern Ireland office. Melissa joins the Freshwater team to work on, among others, Specsavers NI and Randox Health. Suzanne Curtis from Warrenpoint has been appointed Senior Marketing Executive at Autoline Insurance Group (Newry). She joins Autoline from Belfast Visitor and Convention Bureau where she was Campaigns and Publications Manager from 2009. Ryan McGovern has been appointed Marketing Executive at Autoline Insurance Group, joining from AXA Insurance where he was a Marketing Executive for 18 months.
MAY 2013 91
PHOTOCALL
1. Canteen at the MAC has marked its first birthday with the launch of a Speciality Brew Bar. Canteen’s Olwen Kennedy is pictured with Head Barista Kris Martin celebrating the launch. 2. Northern Ireland Chamber of Commerce recently hosted ‘Perfecting Your Pitch’, the latest in a series of export themed events as part of the Danske Bank Export First programme. Pictured is Danske Bank’s Brian Telford, NI Chamber’s Sandra Scannell and Dave Walsh from the Danske Bank Export First’s Official Airline Partner Etihad Airways.
1
2
3. The Danske Bank Accountancy Award 2012 was recently presented to Clare McCann at Danske Bank’s Donegall Square West headquarters. Clare, a Trainee Accountant at Energia, was awarded the annual prize for achieving the highest marks in Northern Ireland in the 2012 Institute of Chartered Accountants in Ireland (ICAI) Final Admitting Examination. Clare received her award from Gerry Mallon, Head of Danske Bank UK and Ireland.
4
4. Joining forces to launch a new €2.2m EU funded programme which aims to boost sales in food & drink companies based in NI, the border region of Ireland, and western Scotland are Michael Bell, NIFDA, John Whelan, IEA, Lorraine McCourt, SEUPB, Amanda Brown, SF&D.
3
5. Dan Gordon, A&B NI Board Member; Ellvena Graham, Head of Ulster Bank NI; Mary TrainorNagele, Arts & Business NI, Angela McAllister, Head of Arts, DCAL; Dr Joanne Stuart, Arts & Business NI Chair and Nick Livingston, Arts Council of Northern Ireland at a reception in Parliament Buildings.
5 92 MAY 2013
PHOTOCALL
6. Two leading local charities are sitting pretty thanks to the generosity of warm-hearted employees at B/E Aerospace, the Kilkeel-based manufacturer of aircraft seating for the global market. Neil Cairns is pictured (front) with the Maeve Fox, Cancer Focus, Neil Cairns, Vanessa Elder, NI Chest, Heart & Stroke and B/E Aerospace staff. 7. Moy Park’s Chief Executive, Nigel Dunlop, and Group Finance and IT Director, Janet McCollum, will join a group of fellow food industry leaders to raise funds for Farm Africa’s ‘Food for Good’ campaign. Janet McCollum will take part in the ‘Dig for Good’ initiative while Nigel is participating in the Tanzania Highland Challenge.
6 8
7 9
8. Greens Pizza, a Belfast dining institution, has opened the doors of its second outlet in Ballyhackamore, east Belfast with support from First Trust Bank. Pictured are Greens Pizza Manageress Karen Turner; Partner of Greens Pizza, Manus McConn; and Peter Canavan from First Trust. 9. Corporate law firm A&L Goodbody scooped two awards at the Northern Ireland Insider Dealmaker Awards – the firm being pronounced ‘Corporate Law Firm of the Year’ and Chairman Peter Stafford taking the top award for ‘Dealmaker of the Year’. Pictured are A&L Goodbody partner Alastair Keith, Head of Belfast Office Mark Thompson and Peter Stafford. 10. The newly formed Giving Northern Ireland, which was set up to champion philanthropy, was launched at Stormont on April 10. Pictured at the event are Gary Mills (Chairman Giving Northern Ireland), Sandra Kelso Robb (Strategic advisor to Giving Northern Ireland), John McCallister MLA and Ellen Remmer from the The Philanthropic initiative.
10 MAY 2013 93
PHOTOCALL
11. UTV’s Paul Clark hosted local charity Employers For Childcare Charitable Group’s annual conference. Pictured are Maxine Orr, Worthingtons; Mark McAllister, Labour Relations Agency; Patricia Harvey, Baker Tilly Mooney Moore; Chairman Paul Clark; Marie Marin, CEO of Employers For Childcare Charitable Group; Nora Smith, Employers For Childcare Charitable Group; Anne Fitzpatrick, Baker Tilly Mooney Moore. 12. Josh Bradley, Airtricity, Minister of State Mike Penning MP, Claire Faulkner, Garden Show Ireland, and Brian Henderson, Cystic Fibrosis Trust were snapped in front of Hillsborough Castle, the new backdrop for the 2013 Airtricity Garden Festival on 17-19 May 2013.
11
12
13. To mark the first anniversary of Professor John Anderson’s death and to commemorate his work pioneering the development of the world’s first portable defibrillator in Belfast, local companies HeartSine Technologies and Intelesens have donated an Automated External Defibrillator (AED) to Bredagh Gaelic Athletic Club (GAC). It was presented to club member Conor Francis by Michael Caulfield of Intelesens and Johnny Anderson, son of the late Professor Anderson from HeartSine. 14. Mace has become the first convenience store to open in the Belfast regeneration scheme. Pictured outside the new store at the ARC Residential Complex near Titanic Belfast are store owners Graham Johnston and Andrew Davis with Titanic Quarter’s James Eyre. 15. Elliott Duffy Garrett Solicitors are celebrating their 40th birthday this month. EDG was founded in April 1973 by Jimmy Elliott, Gerry Duffy and Brian Garrett. Brian Garrett, Claire Staple and Michael Wilson are pictured at the MAC, St Anne’s Square, Belfast which will be the venue for the EDG 40th Birthday Party on 22 May.
94 MAY 2013
14
13 15
PHOTOCALL
16
17
16. Jordana Busby of Molson Coors celebrates that Coors Light is officially the number one selling bottled beer with sales increasing by 12 per cent last year in an overall Northern Ireland beer market that declined by approximately 5.2% in the on trade*. The famous Coors Light bottle, which turns blue when it’s perfectly chilled and ready to drink, hit the top spot in the Northern Ireland ontrade last May and has held that position ever since.
17. Electrical Training Trust chief executive Derek Thompson and electrical apprentice Ryan Johnston, from Hunter Electrics, launch the SparkSafe initiative, which is aimed at promoting the benefits of employing qualified and licensed electrical workers.
18 19
18. A new partnership between McKay Pharmacy and Northern Ireland Cancer Fund for Children (NICFC) was officially launched by McKay Pharmacy Administrative Assistant Jennifer McGill, McKay Pharmacy Managing Director James McKay and Jake Stanex, who has benefitted from the support of NICFC since he was diagnosed with cancer three years ago.
19. Sinead Polland, Director and Nurse Manager, Lucas Love Healthcare and Maria Murray celebrate Lucas Love Healthcare’s 5th successful year in business. The local company will be celebrating their 5th year by revamping its branding and website.
MAY 2013 95
PHOTOCALL
20. Pupils at Ashfield Girls’ High School, an ICT specialist school in Belfast, have been given the opportunity to learn how IT systems are developed for Allen & Overy’s global operation. Pictured are Ashfield Girls’ School pupils Alana Catherwood and Megan Dempster with Séamus Gallagher from Allen & Overy. 21. Robinson Services staff Linda Kerr, Fergal Casey and Dagmara Chakinska help launch the CLIC Sargent, Wig Wednesday appeal which will take place across the UK on Wednesday 22 May. To get involved simply sign up at www.clicsargent.org.uk/ wigwednesday
20
21
22. Sir William Hastings, Chairman of Hastings Hotels and Paul Klein, French Horn Section Leader with the Ulster Orchestra announce a new partnership which will give guests to the leading collection of hotels the opportunity to enjoy the sounds of the symphony orchestra live throughout 2013.
22
23. David Quigg, Local Buyer for Asda NI and Richard Irwin from Portadown company Holmes’ Delicatessen, tuck into some tasty treats as they celebrate the launch of Holmes’ range of traditional tray bakes in Asda stores across Northern Ireland. 24. As part of Belfast International Airport 50th Anniversary celebrations, all United Airlines customers flying BusinessFirst® from Belfast to New York/ Newark between 8 April and 30 June 2013 will qualify for free parking at Belfast International Airport for the duration of their trip. Barry Jackson, United Northern Ireland account manager and Deborah Harris, Belfast International Airport’s public relations manager tried out the comfort of United’s BusinessFirst®cabin.
23
24 96 MAY 2013
LIFESTYLE fashion
White
Filigree Enamel Cuff, £15, Accessorize
Collezione Miracle Linen Suit, £148.50, M&S
Fenn Wright Manson ‘Maria’ jacket, £179.99, Storey, The Linen Green
Blazer, £65, River Island
Florals Mantaray Shirt and shorts, from £35, Debenhams North Coast Floral Shorts, £29.50, M&S
High Glamour
Look Sharp!
Savida White Circle Shopper, £34, Dunnes Stores Red Herring Red Line Waistcoat, £36, Debenhams
Florals, High Glamour, White and Stripes are four key trends taking the catwalk and shops by storm this season. Taking them as inspiration, UB chooses the best that Spring/Summer’13 has to offer. Monochrome Block Stripe Dress, £199, Jaeger
Stripes
Flower Necklace, £10, Next
H! By Henry Holland Trousers, £35, Debenhams
Matalan Jacket, Waistcoat and Trousers, £49, £20 and £20 Autograph dress, £79, M&S
Farah shirt, £55, House of Fraser
St George by Duffer Tie, £14, Debenhams
98
Ulster Business /May 2013
LIFESTYLE technology
The Gadget Guide Technology journalist Adam Maguire reviews some recently released and soon to be available gadgets.
REVIEW: SAMSUNG/GOOGLE CHROMEBOOK
REVIEW: NOKIA LUMIA 820
n arguably its clearest move against Microsoft to date, Google’s Chromebook range offers a low-price – but low-function – computer with a keen focus on the education space. Unlike your standard laptop the concept of Chrome OS, which this Samsung-manufactured laptop works on, sees most functions take place online. The laptop’s hard drive itself carries very little information, and basically acts as a web browser that points you to – unsurprisingly – Google services like its Docs (a Microsoft Office alternative), Calendar and Maps. Because the operating system is so light it makes the laptop incredibly fast – boot up times are miniscule and applications respond as quickly as your internet connection allows. And that’s just the problem with the Chromebook. In an ideal world, you will always have access to the internet but in reality this will not always be the case, especially if you are the kind of school or college student that this device has been aimed at. That may change in a few years time but for now the Chromebook’s unique selling point may be its undoing.
n a continuing attempt to have a smartphone to suit all types, Nokia has released its Lumia 820 handset, which falls below the premium market but still has a lot to offer. Since its reorganisation in 2011, the Lumia range has been Nokia’s flagship brand as it attempts to return to phone market dominance. It started with a single device but more recently has begun to branch into a broad range. The Lumia 820 sits somewhere in the mid-to-upper tier of this strategy, offering enough to attract serious smartphone users without quite being king of the hill. It has a large, crisp screen and some really cutting-edge features like wireless charging and Near Field Communication capability. It also allows comes with a swappable back cover, like the Nokia of old, and the company has even made schematics available for people to make their own using 3D printers. The Lumia 820 is a mid-market device but in truth it feels solid enough to pass off as a premium offering. It seems the Finnish phone-maker still knows how to hit the right note when it comes to build quality at least.
The Samsung/Google Chromebook can be bought in Currys/PC World from £229.
The Nokia Lumia 820 is available from free on contract with a number of networks.
PREVIEW: GOOGLE GLASS
PREVIEW: SAMSUNG NOTE 8.0
t is still some time away from reaching shops, but Google has begun to roll out its potentially game-changing Glass product to select users. The device sits like a pair of glasses and gives allows users to access digital information – like messages, web searches, map data – without having to take their eye off what they are doing in the real world. A vision of tech utopia for some – an Orwellian nightmare for others. Google will tell you that this is the future but there are still a lot of questions to answer – how well will it work in the real world, how invasive will it be (to the user and those its camera is pointing at) and is this something people want anyway? Another stumbling block to its eventual release may be the price – the limited number of models sold to early adopters cost $1,500 each (though Google says the consumer version will come in well below that).
amsung is so pleased with sales of its oversized phone, the Samsung Note II, that it is rolling out an even bigger version – the Note 8.0. The Note category is supposed to be for phone/tablet hybrids - so basically phones that are big enough to cover a lot of tablet functions. That means that despite being the size of Google’s Nexus and Apple’s iPad Mini, the Note 8.0 can be used to make and take phone calls – assuming you are willing to hold the equivalent of a sideplate to your ear. However if treated purely as a tablet the Note 8.0 has plenty of promise – it has a decent processor, the latest version of Android and it also packs a stylus for more precise tasks... like taking notes. It has so much promise as a tablet, that it is hard to see how it will not cannibalise the sales of Samsung’s own 7” Galaxy Tab 2.
I
I
I
S
May 2013 / Ulster Business
99
BUSINESS TRAVELLER
Robin Johnston, Enterprise & Commercial Manager, BlackBerry Ireland How often do you travel, where to and why? I work in Dublin most of the time but travel to London quite a bit and mainland Europe occasionally. What are the three things you couldn’t do without when travelling on business? That’s easy! My BlackBerry Z10 to tell me where to be and when, headphones to kill the boredom walking to and from terminals and the endless walk to baggage reclaim, and probably my glasses. Have you found a good way to work? My BlackBerry Z10 keeps me busy. I always login to wifi hotspots in the airport so as to save on the data costs, but I also use it to make the calls that I should be doing when I am on the flight. When on the flight I reply to emails with the flight mode on, and then when I arrive and attach to a mobile network they get sent. Some people get 10 or 12 emails arriving all at one time! What would be your top tips for anyone embarking on a job that involves travel? Make sure you are good in your own company. Airports and travelling all the time is a lonely business. Also take your tablet or device that allows you to catch up on the news and sport wherever you are. Invaluable if you are bored of BBC News on terminals TV! What’s your favourite App for passing the time? Angry Birds Star Wars or the Logo Game. What do you enjoy most about travelling for work and what are the biggest challenges? I do not enjoy the early starts. The biggest challenge is the down time you have when you are away from the office. What city have you been most pleasantly surprised by or disappointed by? I really love Bordeaux as a city; so much that I took the family there on an overnight when we were driving to Spain a few years ago. I was a little disappointed with Milan. It has a beautiful centre but not much outside of that. Madrid is excellent as well. What do you look for in a good hotel when away on business? Wi-Fi is a given, but the hotels I stay in have to have a good shower with proper temperature control. I hate staying in a hotel where the shower runs hot and cold constantly (are you listening Hilton Hotel?)
Business Books Predatory Thinking By Dave Trott (Pan Macmillan) Predatory Thinking involves looking at a challenge you can’t solve and getting upstream of it – changing it into a challenge you can solve. Written in the form of engaging, brilliantly lean anecdotes and stories, it is the philosophy that has underpinned Dave Trott’s career as a copywriter, creative director and founder of some of London’s most high-profile advertising agencies. Drawing on philosophy, and colourful characters that range from Second World War fighter pilots to Picasso, Plutarch and Warren Beatty, this book represents the distilled wisdom of a lifetime at the creative cutting edge. Now for Then By Ben Hammersley (Hodder) In Now for Then, Editor-at-Large for Wired magazine and guru of the digital age Ben Hammersley gives us the essential guide to the things we need to know for life in the 21st century. Explaining the effects of the changes in the modern world, and the latest ideas in technology, culture, business and politics, this book will demystify the Internet, decode cyberspace, and guide you through the innovations of the revolution we are all living through. Now for Then is for everyone who wants to no longer be confused by the changes in society, business and culture and to truly prosper in the coming decade. Trust Works! By Kenneth Blanchard (HarperCollins) Ken Blanchard is famous for his ability to make the seemingly complex simple. In Trust Works he brings his talent to bear on the complicated and timely issue of trust. Applying lessons presented in the fable to real life situations, Blanchard explores his ABCD model to address issues like poor morale, miscommunication in relationships, poor customer service issues, and dysfunctional leadership. Trust is an evergreen topic but is particularly relevant today, as protests in cities throughout the world underscore a growing distrust of corporations and institutions.
Where in the world would you most love to work? I have my name down for any opportunities to work with BlackBerry in Singapore and Madrid. Where are you off to next? London and Paris are on the agenda for the next month.
100 MAY 2013
All titles are available at easons. To win copies of the featured books go the Ulster Business facebook page.
TRAVEL
Flights to Faro, Malaga, Palma now available from Belfast City! I
n Northern Ireland it may be hard to promise that the sun will be shining on any given day, but the chances of its presence somewhat increase as we travel south to mainland Europe. Perhaps the reason countries such as Portugal and Spain remain in pole position on our ‘favourite holiday destination’ lists year after year. Unfortunately there are two factors which can make less than enjoyable sunshine getaways – convenience and the value of flights. However, these are factors which have been greatly lessened for passengers in Northern Ireland since the announcement that Aer Lingus would be operating flights to three European destinations direct from George Best Belfast City Airport. Katy Best Commercial and Marketing Director at Belfast City Airport, said: “The Aer Lingus Summer 2013 schedule sees flights operate to the Portuguese city of Faro daily, the Spanish destination of Malaga served by six weekly flights and flights to the Majorcan capital of Palma scheduled twice a week, all from Belfast City Airport. “The demand for all of these routes, which will operate until the end of October 2013, has been very encouraging. “Belfast City Airport and Aer Lingus together are able to offer the 2.3 million passengers that come through the terminal each year superb value, attractive frequency and timetables, and unrivalled customer service from a convenient location just minutes from Belfast city centre.” In July 2012, Christoph Mueller, Chief Executive of Aer Lingus, cited the airport’s “compelling location” when it announced the airline’s commercial decision to move operations from Belfast International Airport to Belfast City Airport. Ms Best added: “Considerable private investment by our shareholders, which has totalled £15m in the last four years and included a £1.7m international arrivals area, is focused on continually improving the facilities and passenger experience at the airport. “As a gateway to the world with our airline partners Aer Lingus, British Airways, Citywing and FlyBE, we will continue to invest in a facility in which Northern Ireland can be justifiably proud and look forward to welcoming many tourists from across Europe, and further afield, over the coming years.”
FALCON READY FOR TAKE OFF: Falcon Holidays has announced new summer flights from Northern Ireland to Lanzarote and Majorca. The new Lanzarote service from City of Derry Airport will run through the summer and autumn, starting from May 23 and running until October 3. Falcon’s new flight to Majorca will operate from Belfast City Airport over the summer season. At both destinations the company will offer a number of holiday options including its Falcon Kids Club and a variety of porperties for holidaymakers.
MAY 2013 101
SPORT & HEALTH
Don’t call it a fun run
Ulster Business editor Symon Ross writes about his experience as one of 35,000 runners in this year’s Virgin London Marathon.
T
here was a fleeting moment on April 21 when I wondered what had possessed me to think I could run a marathon. In fact that fleeting moment went on for about an hour and a half, or however long the final 8 miles of the 2013 Virgin London Marathon actually took me. My brother Doug and I decided last year to take on the challenge as a way of raising money for the Alzheimer’s Society and helping them raise awareness about dementia. It is a cause close to our hearts as our mum Beth, who passed away in December, suffered from dementia for the last six years of her life. Neither of us were runners and both of us have knees that bear the scars of years of playing football, so we put in long hours training through the winter, determined to do our mum proud. On the day, conditions were perfect and the atmosphere at the start line was, as you’d expect, one of excitement and nervous anticipation. After a perfectly observed silence in memory of those killed and injured in the bomb attack on the Boston Marathon a week earlier it was time for the off. Starting near the back it was slow going for several miles as we weaved past some of the brave souls running in full costume, but we eventually got into our stride and hit a steady pace. It quickly became clear that having our names
102 MAY 2013
printed on our shirts was a masterstroke. Having strangers cheering you on by name really spurs you on and the support from Londoners was constant from start to finish. Residents at the side of the road handed runners jelly babies, bananas and slices of orange, while bands and DJs with massive sound systems kept the music loud and the atmosphere lively. It is a day when London is at its best – multicultural, positive, encouraging, celebratory. Having trained up to 18 miles it was perhaps no surprise that every step after that distance felt like I was running with lead boots on. My knees were screaming at me to stop by 22 miles but thankfully one knowing spectator had chosen just this point to erect a banner bearing the slogan ‘Shut up legs’. Pushing into the last few miles there are posters with the sort of hackneyed inspirational messages I imagine you find on the walls of gyms. Normally cynical about such platitudes, one poster struck home with me and gave me that final mental boost to get to the end – ‘pain is temporary’. With an overwhelming feeling of relief we successfully completed the famous 26.2 mile course, crossing the finish line together in a time of 4 hours 41 minutes 42 seconds. The time was in some ways disappointing as we thought we would be able to finish
somewhere between 4 hours and 4 hours 30 minutes. With so many people packed in to the field making it slow going it became clear by the half way stage we wouldn’t make it. But that very minor disappointment was completely overridden by the sense of achievement in just having finished. And as a marshal with a loud-hailer at the finish line was telling runners ‘you’ve beaten Mo Farah today, he only ran half the race’. I know our experience is not unique. Almost every runner we passed was running for charity, many with messages on their running tops to say they were running in memory of someone close. Everyone had a story. With donations from friends, family and colleagues we have raised close to £10,000 for the Alzheimer’s Society, a fantastic charity which does great work to support people suffering from dementia and their families. I would personally like to say a huge thank you to all of those in the Northern Ireland business community who backed us. You were incredibly generous and really helped push our total past the initial target of £4,000 that we’d jointly pledged to raise through www.justgiving. com/rossbrotherslondonmarathon. The Marathon was a great experience and one I will never forget. Thank you again for helping us to feel like we’ve done something worthwhile.
SPORT & HEALTH
Runners muck in for a great cause A record number of participants went mud for it at this year’s McVitie’s Jaffa Cakes Mud Madness event at Foymore Lodge, Portadown. It was the first year the event sold out ahead of the race day, with 1,000 competitors getting down and dirty to help raise more than £11,000 for charity partner Marie Curie Cancer Care. Professional athletes, casual joggers and people who are just a bit bonkers took part in the muddy off-road challenge which saw competitors battle their way across four and half miles of bogs, ponds, under cargo nets, across monkey bars and over inflatable obstacles. Competitors came from all over Northern Ireland as well as the Republic of Ireland, England, Scotland, Germany and the US to compete in the wacky race. Organiser Johnny Davis said this year’s event has been the most popular to date. “We are delighted to see the popularity for this event increase each year, and this year exceeded our expectations with both races selling out ahead of the day,” said Johnny. “Marie Curie Cancer Care is our charity sponsor and we are delighted to help raise lots of money for the charity which will go a long way to helping them provide care for cancer patients in Northern Ireland,” he added. Tim McAuley, NI account manager for McVitie’s Jaffa Cakes said: “Each year we look
forward to the event and I would like to say a massive well done to all of the competitors who took part and raised much needed funds for Marie Curie Cancer Care.” Suzy McIlveen, Marie Curie Cancer Care’s regional fundraising events manager for Northern Ireland added: “The event has been a great success for us with £11,000 raised last
year by the participants, and with the sell-out in advance this year, we are hoping to beat this total. “The money will go towards providing high quality nursing care for those with terminal cancer and other illnesses and I’d like to thank everyone for their generous support of the charity.”
Life is a highway for cyclist Ricky L
ocal Bangor man Ricky McLarnon is about to embark on a 3,415 mile cycle across America to raise funds for Eating Disorders Association Northern Ireland (EDANI). Leaving for LA in May, Ricky will cycle over the San Andreas fault in California, through the Mojave Desert in Arizona, along Route 66 in New Mexico, pass Niagara Falls in New York, arriving in Boston seven weeks later having crossed 15 states. Approximately 18,700 people in Northern Ireland suffer with an eating disorder each year. Ricky’s sister Debbie developed an eating disorder while she competed for Northern Ireland in rhythmic gymnastics. Soon after the Commonwealth Games in 1998, Debbie nearly died because of her eating disorder – at the time there was little support or treatment for eating disorders in Northern Ireland so Debbie had to fly to London once a week to get treatment. Local insurance broker Hughes Insurance is sponsoring Ricky and anyone who wants to support him in his challenge can do so online at www.justgiving.com or by texting ‘XUSA50 £5’ to 70070. All donations go directly to the charity.
MAY 2013 103
CLASSIFIEDS
TO PLACE A CLASSIFIED ADVERT CONTACT ULSTER BUSINESS ON 028 9078 3200
104 MAY 2013
Business Diary
June 2013
date
event
venue
CONTACT
4 June 12.30 - 17.00
IoD Chartered Directors Seminars Key Speaker: Ian Dormer, IoD National Chairman.
IoD NI, Riddel Hall, 185 Stranmillis Road, Belfast BT9 5EE Cost: Member £30.00 Cost: Non-Member £40.00
Linda Brown on 028 9068 3224 or visit www.iodni.com
6 June 11.45 - 14.00
CBI Northern Ireland Economic Briefing 2013 Sponsor: Bank of Ireland
Hilton Hotel, Belfast
Anthea Savage on anthea.savage@cbi.org.uk or visit www.cbi.org.uk/ni
7 June 19.30
Coca-Cola CIPR Media Awards 2013 Organiser: CIPR
The MAC Theatre, Exchange Street, Belfast BT1 1NJ Cost: £50.00 per person
For more information visit www.ciprmediaawards.com
10 - 11 June 09.30 - 16.30
Negotiation Skills for Senior Leaders and Managers Organiser: Consensa
Consensa Head Office, Belfast BT1 2GT Cost: £40.00
For more information or to book visit www.consensa.co.uk
12 June 17.30 - 20.00
In Camera: Department of Education Organiser: NI Chamber of Commerce Speaker: Minister John O’Dowd
Hilton Hotel, Belfast Member Cost: £678.00
For more information or to book visit www.northernirelandchamber.com
13 June 12.00 - 14.30
IoD New Member Launch Supported by Director Development Ireland
IoD NI, Riddel Hall, 185 Stranmillis Road, Belfast BT9 5EE Cost: FREE to Members
Linda Brown on 028 9068 3224 or visit www.iodni.com
14 June 08.00 - 09.00
Understanding Social Media for Business Organiser: Seltics
Online event Cost: £48.00
For more information or to book visit www.seltics.co.uk
25 June 08.15 - 09.30
IoD Director Insights – Health & Safety in the Workplace with Arthur Cox
Arthur Cox Solictiors, Capital House, Belfast BT1 6PU Cost: FREE to Members
Linda Brown on 028 9068 3224 or visit www.iodni.com
If you would like to promote an event or conference please contact Stuart Hackney (stuarthackney@greerpublications.com)
People in Business Has your personal life suffered because of your career? It hasn’t. My wife and I have careers but we value the time we have with the boys when we aren’t working. I would rather have it that way than spending every second of the day with them and not putting the same value on the time together.
What do you consider your best business decision or idea?
Thus far my move to Leaf. Joining a company with a great work ethos and customer focus.
Who is your biggest inspiration?
To date my kids. Long gone are the days of working to buy nice things for yourself. Perceptions change as we get on in life and since having the two boys your motivation isn’t for yourself anymore.
Do you have any “golden rules” in life? Balance. Work hard, play hard.
What would you regard as a “cardinal sin” for anyone doing business with you? Lies.
factfile NAME: BORN: CAREER: FAMILY: INTERESTS:
What is your most hated business expression or cliché?
Kyle Johnston
It does what it says on the tin!
June ‘77 Sales Manager, Leaf Wife and Rhys (4), Rudy (1) Moto GP, Rugby
What was your first paying job?
I was lucky enough to be a reasonable rugby player while at School and managed to get a player’s contract with London Irish RFC in 1996 while at Brunel University when the sport initially turned professional.
What do you like most about your current role?
Are you switched on 24 hours or is there a time when you switch your phone off?
What’s the worst job you’ve ever done?
I have been involved in companies where selling was not about providing solutions or indeed solving problems, it has simply
Played more rugby!
How important is money to you? been about achieving a target whatever the circumstance. While this works for some product driven organisations it would be foolish to adopt this approach in the ICT sector. Most individuals find it difficult to understand ICT at the best of times without a pushy sales person.
Leaf have grown steadily over the past three years bucking the trend of the poor private sector growth. The attitude, passion and ability of all the staff makes Leaf a truly enjoyable place to work. Freedom to operate within guidelines gives me the flexibility to carry out my role to the best of my ability.
If you hadn’t been in business what would you have liked to have done?
Young Rudy, given the change in the clocks, thinks it is time to get up most mornings before 6.00am. I am in the office from before 8.00am and arrive home after 6.00pm to be greeted with pandemonium for 30 mins before bath time. Dinner is finished by 8.30pm when the reconstruction of the demolished house begins. Bum on sofa for 9.00pm, an hour’s work on iPad, and then prep the kid’s bags for the morning before bed. A broken sleep with waking children and then it all begins again. My phone is never turned off!
With two children in full time child care it is essential.
What are you currently reading? Born to Run.
What has been your toughest challenge? I am currently week four of the Sean T Insanity 60 day workout programme, I almost passed out doing the fitness test and am now just over half way.
What do you worry about?
My kids. My father was a terrible worrier and I fear he has passed this wonderful gene onto me.
What advice would you give to the 18-year-old you? Slow down, consider and then act.
Which person, living or dead, would you like to have met, and why? Albert Einstein. He is a genius.
Making our business your business With first-hand experience in retailing, we understand the bigger picture. Why not be part of it... For more information on how Henderson Wholesale can drive your business or help you make a start into retail in 2013, call our sales team on 028 90337866 or email joinus@henderson-group.com
www.henderson-group.com 1517_jigsaw_grocer_a4_JAN2013.indd 1
08/01/2013 12:50
FEDEX CONNECTS NORTHERN IRELAND TO THE WORLD* Now FedEx is open in Northern Ireland, we’re better placed to serve you. With a dedicated network of couriers in Northern Ireland, we now fly direct from Belfast – connecting your business worldwide. So whether this means shipping from Belfast to Lurgan, Europe, U.S. or Asia, FedEx has a solution and our people are right here to make it easy. • Next day timed delivery to and from destinations across Europe* • Next day delivery to east coast U.S. cities by 3pm* • Delivery of less urgent shipments within 3-6 days across Europe, the U.S. and Asia* • Import next day into Northern Ireland from Europe, within two days from the U.S. and Asia* • Express service for heavy or bulky items to destinations worldwide* • Delivery within Northern Ireland as well as to and from Great Britain*
See how we can help you do business worldwide by visiting business.fedex.com/speed Alternatively call 02895 450 005 or email northernireland@fedex.com FedEx. Solutions That Matter.™ * Service coverage may vary by package type, origin and final destination. Please check fedex.com or contact Customer Services for an accurate quotation.
52354 FedEx North Ireland UlstBus Ad.indd 1
24/04/2013 11:12