Print company rise to staff challenge 3 Florist remains true to eco-friendly ethics 5 Spa brand prospers from humble roots 6 Out with the old, in with the new 8
Oct 2012
getsurrey.co.uk/business in association with
revolutionary software FRESH and exciting business ideas with the potential to turn into multi-million-pound global enterprises are being nurtured in a corner of Guildford. Mentoring, business support and advice on the all-important raising of finance is offered for by the Surrey 100 Club, based at Surrey Research Park next to the University of Surrey. The leading angel investment network in the south east allows promising start-up companies the chance to pitch their ideas to investors at regular Dragons Den-style meetings held at the university. It is part of a collaboration of services including SETsquared Surrey, its start-up business incubation and support network, and the Innovation Space Incubation Centre. Almost £11m of funding has been put into business through the 100 Club since it was formed in 2007. During the coming months, Business News Extra will reveal the secrets of winning over the investors at Surrey 100 Club meetings. September’s meeting saw pitches from six companies, including an innovative example from iGeolise, the subject of this issue’s feature. By Pete Bryant
pete.bryant@trinitymirror.com IT may not be time travel, but experts at a company in Guildford have invented travel time software that is set to revolutionise online customer service. Based at the Surrey Technology Park, the iGeolise team presented its platform that turns distance into time at the most recent Surrey 100 Club investors meeting. The meetings at the University of Surrey allow some of the most promising start-up companies to pitch their concept to an audience of potential investors. The iGeolise software will allow house hunters, for example, to search for properties within a certain journey time rather than within a certain number of miles of a location. At the meeting on September 19, co-founder and CEO Peter Lilley told the investors that the software had been developed due to the fact that 40% of web searches were for location-specific content, yet half failed to return the required information. “We need to accelerate our growth, and we need help to do that,” said Mr Lilley, who is asking for £250,000 in investment. “We have competition, but it’s indirect competition. There’s Google,
Peter Lilley, co-founder and CEO of iGeolise.
there’s always Google, but at the moment you can only search time by putting in a destination rather than searching.” Incorporated in July 2009, the company has secured grants from the University of Surrey and Technology Strategy Board. The iGeolise platform is now used by Adobe, AT&T and Mozilla for demonstrations and co-founder Charlie Davies last month at-
“It took a long time to get the idea to a stage where people would actually get it.” tended the Stream technology conference in Greece along with other guest companies including Google, Yahoo, Facebook and Microsoft. The software has been live in the UK since May this year, with one of its first customers being a dating website. Marks & Spencer has also expressed an interest in using the software to allow customers to find their nearest store by time, while Job Centre Plus may use the system to show potential commuting times. Speaking about the lead up to
the Surrey 100 Club pitch, Mr Lilley said: “It took a long time to get what started out as an idea on a piece of paper to a stage where people would actually get it.” Questions from investors following the pitch included a query on how accurate the results were. Mr Davies answered: “You can never be 100% accurate. If a ball rolls out in front of your car it slows you down. But the platform does include live updates, so, for example, if a train line is closed it will cut that out.” Another investor questioned the team further on whether Google might factor the idea into its service, but he was assured that the internet giant were not currently focusing on rivalling the technology. However. one of the most glowing references on the night came from Keith Robson, director of research and enterprise at the university, who said his daughter had just sealed a house rental having used the software to find a suitable location. Currently, Mr Lilley and Mr Davies take nothing out of the business, but, given the number of investors who asked for a demonstration of the software on the night, it may not be long before they are afforded that luxury.
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October 2012
My first job A SURREY business has become one of the first in the country to benefit from a new type of investment finance aimed at companies with turnovers of less than £10 million. Vocality, based in Godalming, designs and produces voice communication systems and network routers and has received £1m of growth capital from Santander, along with YourVets in Solihull. The bank’s Breakthrough programme is intended to fill a gap in the funding market, providing mezzanine-based finance at a low rate which helps bridge the gap between angel and equity investment. Vocality’s products are used by military and commercial satellite users, as well as in news broadcasting. The money will help it exploit new opportunities within the maritime and satellite markets, and produce new and innovative technology. The company turned over nearly £6m in 2012 and is forecasting further growth in the coming years. Additional staff may be taken on as part of the investment. Julian Bashford, CEO of Vocality, said: “We are really excited at this point in Vocality’s life and we feel that we are returning the commitment to us with a major step in innovation.”
A WEYBRIDGE chartered accountant firm has been shortlisted for a prize in the British Accountancy Awards 2012. Midgley Snelling was named as a finalist in the Independent Firm of the Year category for the South East and East of England. The news caps a successful year for the company, which has expanded its UK and offshore offerings with appointments at both junior and senior level. Partner James Beecher said: “This is a fantastic honour for the firm and all team members who have all contributed to this success. In spite of the difficult financial conditions, the team at Midgley Snelling has worked incredibly hard to maintain our position as one of the leading chartered accountancy practices in the South East. “Our approach is to provide the level of service and expertise of a large organisation with the personal touch and attention to detail of a medium-sized independent firm.” The final of the annual awards takes place in London on November 21.
What was your first job? I am descended from a long line of farmers and fishermen, however I was the first in my family to go to university at the time and there was a sense that I was taking the easy way out. But I knew I wanted to become a lawyer and was prepared to prove a few people wrong. Following university and law school, I was offered a paralegal role in Vancouver, Canada, for BC Hydro, a power generation business. How did you get from there to where you are today? After 12 months in Canada, I returned to the UK and trained with a firm in Islington before working abroad again in New Zealand. I then became one of
Jamie Berry, 38, head of business law at TWM Solicitors, Guildford
two partners in a London firm advising small and medium enterprises (SMEs), entrepreneurs and family-owned companies on the corporate commercial work connected with running their businesses. Two particular clients were growing fast and becoming ever
more active in North America. It was my experience of the 12 months spent in Canada that gave me the confidence to move in 2008, together with my wife and young family, back to British Columbia to project manage the legal work connected with these matters. I also remained a partner with the London firm and maintained my English client base. After almost four years and with work winding down, it was time to decide where to set down roots and, with two daughters and another on the way, Surrey won out. I joined TWM in 2011 and became head of its business law department in July this year.
What does the future hold? I see Surrey as an ideal base to develop a legal practice. There is an entrepreneurial spirit I sense when attending events and talking to people here that is present despite the recession. This co-exists alongside the traditional high net worths, family-owned businesses and SMEs in the county. These people demand a high quality legal service but don’t wish to pay the high rates in London. I think with our business law and private client teams, we’re well placed to serve that market going forwards.
APPOINTMENTS and promotions have been announced by Downs Solicitors LLP. William Edwards has been appointed as an associate in the private client department in Godalming, and Bhavna Patel followed to expand its employment law department serving the Dorking, Godalming and Guildford areas. Both move to Godalming after working in London, while Bhavna was previously the sole in-house lawyer with the Alzheimer’s Society. In addition, private client solicitors Amber O’Connor and Joanna Parks were also promoted to become associates.
Editorial Director Marnie Wilson Group Deputy Editor Mark Miseldine Business Reporter Pete Bryant Commercial Manager Amanda Ducas Regional Sales Manager Sarah Firth
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Ed Emblem collecting the Surrey Care Trust 2012 duck race trophy for Baker Tilly.
Duck race success brings in some global contacts By Pete Bryant
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A DUCK race proved to be the start of the road to fame for a financial advisor who plies his trade in Guildford. For private client practitioner Ed Emblem, the annual Surrey Care Trust duck race in June this year was a chance to network and demonstrate his firm’s support of the community while enjoying a fun competition. However, when the Baker Tilly duck came home in first place and Ed was snapped collecting the prize by a photographer, he discovered just how much a little corporate responsibility can achieve. “It was a date in the diary, and I
went along as the firm’s representative,” said Ed of the duck race, which sees companies sponsor giant plastic ducks in a race along the River Wey at Millmead to raise money for the charity. “As luck would have it, our duck won the heats and the final. I was cheering it on and collected the trophy to take back to the office.” The picture taken of Ed next to the winning duck was to become more than just a momento of a pleasant afternoon, as news of the race result and his photograph soon began circulating among Baker Tilly staff. “The first thing I heard about it was when a friend sent me a message on Facebook to say congratulations,” he said. “I thought, how on earth have you found out?
“Then Surrey Care Trust published the story in their newsletter and after that the corporate responsibility people at Baker Tilly wanted to know about it.” The picture was put in the firm’s internal newsletter which goes to around 1,600 people in 28 offices around the country. It then made its way on to the Baker Tilly international Facebook page. The now infamous photograph soon earned Ed the nickname Duck Man, one that still sticks three months on. He said: “I started getting ‘likes’ from people in offices in Armenia and Azerbaijan. I felt bemused I think, but obviously very happy for me and for the charity. “Then I started getting requests on LinkedIn – one from a tax man
in Saudi Arabia who wanted to connect. It just goes to show what the event can do. Something that is, on the surface, quite frivolous can be something that people really warm to.” Asked if it would be fair to say the chain of events had helped his career, he said: “Well I’m not going to be dining out on it, but it has allowed me to make contacts with tax managers in other parts of the world that I wouldn’t have otherwise.” The carved wooden duck trophy is currently proudly displayed in the Baker Tilly Guildford office, but will be returned for next year’s event in time for another business employee to taste glory. The 2013 event is scheduled for Thursday June 27.
October 2012
Print company staff rise to challenge By Pete Bryant
pete.bryant@trinitymirror.com IT was all hands to the pumps, or rather the printing machinery and collating table, for staff at a Woking-based digital print solutions when they were faced with a huge and urgent order. Repropoint was asked to print and collate more than 4,000 due diligence health and safety manuals for a major hotel and
restaurant chain within a 13-day period. Managing director Steve Hallet and chairman Mike Webb were drafted in to help, joining 25 members of staff to work 24/7 in constant rotating shifts to ensure the job was completed on time and to the client’s satisfaction. A total of 4,110 manuals, containing more than a million A4 pages and using nine different colour stocks, were produced
and manually organised into ring binders, with many sheets needing to be laminated and encapsulated. Mr Webb said: “I was quite impressed as the weather was absolutely fabulous at the time, and the staff were coming in while their friends were going swimming or off to the coast. “In general terms we’re digital printers so we tend to do more small run work. This wasn’t a big
job in terms of the printing, but in terms of the manual work it was massive. It’s not the biggest job we’ve ever done, but it’s one of the biggest we’ve had since the recession, which is a good sign. “We’re very much looking forward to the next big order.” The job was too big for the company’s own vans so a large lorry was hired to deliver the finished manuals. Repropoint, which has been in
business since 1975, has its head office in Woking and a branch in Guildford. It uses modern technology to offer digital printing to clients and allows them to exploit the use of colour in their marketing material, from flyers to exhibition stands. As well as offering a wide range of consumables for the graphic and computer-aided design market, the company also specialises in plan printing and copying for
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the architectural and engineering professions, and is a leading supplier of KIP and HP printers. Mr Webb said the order’s successful completion was indicative of the positive attitude of the staff members, who were willing to step in to help one another on the collating table when they were needed. “Everyone is very handson,” he said. “My secretary doesn’t know it yet, but she’ll probably be working down there today.”
On a mission to explain the advantages of IT leasing A SURREY IT leasing expert has spoken of his mission to make the practice less of a mystery to small and medium enterprises (SMEs). Despite 95% of the top FTSE 100 companies using leasing to pay for equipment and software, according to GE Capital, this is less than 10% of the total spending on IT. Jon Leslie, managing director of Reality Finance Solutions, has branded this statistic as “madness.” He argues that the low rate of businesses going down the leasing
route is due to a lack of understanding. As a banker for many years and a financial worker for his entire career, Mr Leslie says that with high street banks failing SMEs, there were some compelling strategic and financial reasons to use leasing. However, he fears that a lack of understanding of IT leasing is preventing many from making the move, and that, without this, more companies would fund their computer, software, upgrades, installation and training through leasing.
“A key advantage of leasing and not buying IT hard and software is cash management and keeping funds available,” he said. “This can be used as working capital instead of disappearing in an up-front payment all in one go. “Kit you buy for £100,000 today is worth only £70,000 tomorrow, and with the lightning pace of progress in technology, equipment is often out-of-date within two years. “Leasing enables you to upgrade your equipment without having to buy the latest kit.”
New legislation aims to help revival in building industry Tennis club players at the tournament in aid of the charity CountryMice.
Tournament nets £5,000 for charity GENEROUS sponsorship from two Surrey companies helped a tennis tournament, near Godalming, to raise valuable funds for charity. The 11th Enton Gentlemen’s charity tennis tournament staged in September saw 72 players compete on nine courts to be crowned doubles champions.
The tournament was sponsored by solicitors Barlow Robbins LLP and Grantley Estate Agents and held in aid of CountryMice, a palliative cancer care charity set up by the Milford and Witley GP practice. The funding meant that the entire £5,000 pot raised on the day will go straight to the charity.
Michael Parry-Jones of Grantley and Tim Adams of Barlow Robbins presented prizes, with Dr Andrew Sears of the GP practice updated players and families on the charity’s progress. Tournament champions were Stephen Clarke and Jonny Callow beating Richard Crawford and Neil Briscoe in an exciting final.
HFS Milbourne outperforms industry benchmark A FINANCIAL advisors in Guildford is outperforming the industry standard for its service, which helps clients maintain and grow investments. From November 2008 to July 2012, HFS Milbourne has seen clients with a medium attitude risk and funds managed by its Strategic Portfolio Service (SPS), receive a return of 47.66%, which is 18% higher than the industry benchmark of 29.57%. The company, based on Old Portsmouth Road, uses the service to select a range of investment options best suited to the client’s needs, based on financial goals and attitude to risk. It reviews the portfolio on a quarterly basis, which according to HFS Milbourne, ensures that funds under management are performing as expected. The
company states that this process of continuous assessment ensures that the mix of investments and level of risk remain appropriate for the client and allow changes to be made where necessary. “Our three-year performance data speaks volumes about our investment management capabilities,” said Iain Halket, director at HFS Milbourne. “Lawyers can rest assured that we are a safe pair of hands. Clients receive our advice electronically together with our market commentary and updated fund fact sheet, with additional performance data available to view online. “This seems to satisfy our clients’ needs perfectly and they appreciate the level of control such regular feedback provides. “Some of the private banks have introduced new pricing structures
as a way to cull less profitable clients, especially those with assets of less than £500k. Our SPS is of great interest to this type of client as they really appreciate the close eye we keep on their funds and the personal service we are able to provide them with.” According to research company Touchstone, which collates new business data from respected industry sources, HFS Milbourne ranks number one in the Guildford area for financial advice and within the top fifty in the UK overall. “The Touchstone analysis is another measure of success which is well regarded within the industry,” Mr Halket added. “We have held the number one slot in the Guildford area for as long as I can remember and are naturally delighted to have made the UK top 50 too.”
John Ewens of Penningtons Solicitors LLP examines the government’s new proposals for housebuilding and planning to help boost the building sector. The secretary of state for communities and local government, Eric Pickles, announced government plans intended to encourage growth in the property arena, particularly house-building, on September 6. These measures include changes to planning legislation targeted at increasing development and, hopefully, growth in related industries. Of interest to developers will be the introduction of legislation, to become effective in early 2013, which will allow a developer of a site considered by them to be unviable, due to the affordable homes allocation requirement, to appeal for a variation of that allocation. The Planning Inspector may amend the affordable homes allocation within a section 106 agreement for a three-year period to reflect current economic circumstances. Consultation is already taking place regarding formal applications to local authorities to vary section 106 agreements which were entered into before April 2010. The government is encouraging
local planning authorities to take the opportunity to try to negotiate unviable elements of these agreements with developers in advance of the legislation coming into effect, and developers may wish to take advantage of this. The government will also be looking at measures to reduce delays in the planning system, including proposals to legislate to allow applications to be decided by the Planning Inspector where a local authority has a track record of consistently poor performance in the speed or quality of its decisions. This will include requiring more transparent reporting of local authority performance on planning; the government would be working with the Local Government Association to increase the use of planning performance agreements for major schemes, designed to commit the applicants and the planning authorities to a clear timetable for determining proposals. Measures which are intended to assist in dealing with low occupancy rates of existing commercial premises are also being considered, such as the introduction of permitted development rights to enable change of use from commercial to residential purposes. Other proposals intended to modify the planning system to encourage growth include the extension of permitted development rights that will enable the construction of extensions to homes and businesses in non-protected areas for a three-year period.
The measures may encourage developers, businesses and homeowners to proceed with plans to develop sites currently considered economically unviable, or extend their existing properties, as the case may be, with a knock-on effect on the wider economy through increased activity in the construction and associated sectors. The secretary of state’s statement is available on the department’s website www.communities.gov.uk. Details of further measures are expected in the next few weeks.
For further information, please contact John Ewens 01483 791800 or email john.ewens@ penningtons.co.uk
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October 2012
Cooking up business behind the scenes
Illuminating insights
An often overlooked presence at corporate events is that of the catering staff, yet the events organiser at Godalming-based Caper& Berry says she feels as much a part of the proceedings as any other guest.
General manager of Caper & Berry, Jasper Mann.
By Pete Bryant
pete.bryant@trinitymirror.com Thousands of business representatives will have experienced the catering company’s service first-hand at events all over Surrey, yet few will have given a great deal of thought to the brief contact in comparison with the other networking opportunities that surround them. However, Libby Summers says the company has benefitted just as much as any other at such events despite its relative invisibility. She has made the most of the company’s presence at business events, compiling a long list of contacts and approaching catering dates in the same way delegates do – as a chance to expand their business’ reach. “People don’t always know who we are or realise we’re there,” she admitted. “But I’m their point of contact and you do build a good relationship with corporate clients at events. “Some of our waiting staff are even asked to come back for future events having made a good a impression. It’s nice when you see people you recognise from events again at other venues we cater at. “In catering, you’re only as good
as the last event you do. If people have a positive experience then they will tell their friends. Word of mouth is often the best tool we’ve got as business people are always talking to each other.” Caper & Berry has been operating for ten years and has built up a good reputation, especially in the business community with TWM Solicitors now using the company for its Christmas party every year. Versatility has been part of its success, with staff able to cater small canapé parties as well as fine dining for large numbers in almost any location. The company also sources much of its food from companies in the area, including Secretts Farm, Surrey-based coffee roasters
Coffee Real and Celebrations Bakers of Cranleigh. There are now three Caper & Berry outlets in Guildford, at the Yvonne Arnaud Theatre, Surrey Research Park and the refectory at Guildford Cathedral. The cathedral hosts candlelit and gala dinners catered solely by the company for business events with a unique feel, with all food made on the premises. Libby added she had attended catered events herself at venues such as the Mandolay Hotel and Guildford Holiday Inn. But she revealed the company’s Christmas parties featured no caterers, as staff preferred to enjoy a welldeserved break at the Albany Pub in Guildford.
Head chef Mark Wren cooking up a treat at the Yvonne Arnaud.
Start planning now for PAYE changes David Cooper, partner at Hamlyns LLP, chartered accountants and business advisers, talks about changes to the PAYE system. HM Revenue and Customs are shortly to introduce a new way of reporting an employers’ or pension providers’ Pay as you Earn (PAYE) liability. From April 2013 most employers, and certainly by October 2013, all employers will be required to
David Cooper.
submit details of amounts of tax and National Insurance deducted from their employees electronically under a new system called “Real Time Information” or RTI. Details of deductions will need to be submitted whenever payments are made to employees, that means that employers will make twelve submissions per year if they pay monthly or 52 submissions, possibly 53, if they pay employees weekly. Now is the time to start to plan to ensure that you will be able to cope with the changes when they happen. Employers who use their own payroll software should check with their software providers and confirm that the software is RTI compliant or updated in plenty of time. If you use a reputable payroll bureau they will have this under control. However, you may need to agree with them in advance any changes of procedures that may be necessary with regard to deadlines for time sheets, overtime and any other non regular payments. If you are still calculating wages manually you may need to factor in the additional cost of computers, software and training. For employers with nine or fewer employees you will still be able
to use the existing online basic PAYE tools available on HMRC’s website. Late submissions will result in HMRC charging penalties. Larger employers will verify data by filing an “Employers Alignment Submission” before RTI begins. Those employers, who traditionally pay casual workers, possibly weekly, will no longer be able to use form P38A. They must be included with the submission. HMRC have said that they expect employers to use correct names, dates of birth and National Insurance Numbers from the start. No penalties are envisaged at this stage for incorrect data. RTI will enable HMRC to know how much PAYE is due each month without waiting until 19th May for the Employers Annual Return (form P35) to be filed. They should also be able to check tax credit claims against income, to reduce the amount of overpaid tax credit that is written off each year because of over payments that cannot be recovered when these are discovered in the following tax year. An overall fairer system of paying the employees tax.
The success of any business voyage lies in the calculated use of experience and knowledge
Chartered Accountants and Business Advisers • Business services • Private clients • Wealth management
Call 01483 755399
www.hamlyns.com
October 2012
GREEN BUSINESS
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Steps to reduce our footprint
Florist remains true to eco-friendly ethics By Pete Bryant
pete.bryant@trinitymirror.com A MOTHER who runs a floral business from her Dorking home says she is determined to resist the urge to abandon her eco-friendly ideals to increase profits. Julie Ballard, 51, formed Flowers by Julie B in 2007 after giving up her career in marketing and training for an Advanced National Certificate in Floristry at Merrist Wood College, which she passed with distinction. Five years on, she believes her decision to exclusively use environmentally-friendly techniques has helped her make a name for herself. “At college, one of the aspects we had to learn was how to make an eco-friendly floral tribute,” she said. “They felt it was the way businesses might need to go. “I thought, if that really is something that will become more popular and important, then maybe it’s something I should go into. “I wanted to find out more and did some research. “What I have learnt, is that you can say that you are eco-friendly but when you come to do it for real it’s really quite difficult. “But I’ve made it my challenge to work out different ways to do things to make the business efficient, yet natural.” Julie’s floral
displays are made using no wire or plastic. She instead constructs wreaths out of straw, string and real flowers. Her ‘eco-chic’ designs are drawn from what she learnt at Merrist Wood, as well as her expe-
“I was shocked at how much plastic and other materials were used in an industry that was essentially just flowers.” rience working for notable British florist Jane Packer during a placement in London after the course. Julie’s dramatic career change occurred after her two children reached their late teenage years and she decided to do something completely different with her time. She is driven to be eco-friendly in her practices partly due to her experience of the industry during placements, where she would regularly see flowers, paper, plastic and other waste all discarded in a single bag. “I was shocked at how much plastic and other materials were used in an industry that was essentially just flowers,” she said. Having now set up her own business, she admitted she could
see the financial and time-saving benefits in being so relaxed about waste. But she insists she has no intention of cutting corners and abandoning an outlook that customers have come to respect. Originally, Julie focused on creating floral tributes for funerals, but said that requests for weddings from environment-conscious brides-to-be had helped her business take off. She has since provided for weddings at Denbies Wine Estate, Burrows Lea in Shere and even the Garden Museum next to Lambeth Palace in London. More recently, she has held discussions with Clandon Wood, a natural burial ground, and following its launch this month will work with its creator Simon Ferrar to offer an all-natural funeral package. Julie added: “It’s about providing what the customer wants, which comes back to the marketing side of my training. “I try and make my displays very natural but still use good designs that I learnt from Jane Packer, and still have something interesting and different about them. “Being eco-friendly has definitely helped me in business. I don’t think we should all be making a profit at the expense of the environment.”
Sun shines on second income for some farmers FUNDING from a Godalmingbased leasing company has helped a farm invest in green energy by installing 100 solar panels. Thanks to the £38,000 from Reality Finance Solutions Hamish Janson at Newton Valence Farm, on the Surrey Hampshire border, now produces 21,000kwh per year and saves £1,100. The annual revenue of the solar farm is £4,600. According to a report by the National Farmers Union and Netwest, more than a quarter of UK farmers are now using renewable energy as a secondary income. Reality Finance managing director Jon Leslie said: “We’re delighted to have been able to help Hamish create his solar farm, which is such a strong trend.”
Julie Ballard’s eco-friendly credentials are important to her.
South east green economy is blooming
More farms are turning to renewable energy for income.
THE strength of the south east’s green economy has been hailed after a report showed that businesses had shown resilience since the start of the banking crisis. The report, entitled Green Economy: A UK Success Story, published by the Green Alliance along with the RSPB, WWF, Greenpeace and Christian Aid, showed that the sector had not suffered as much as expected. It also revealed that, while the general economy will not return to 2007 levels until 2014 at the earliest, the green economy will have grown by 40% in that same period. The south east region is one of those leading the way with nearly 120,000 low-carbon and environmental jobs in 2010/11, more than motor trades (80,400) and telecommunications (36,600) put together. Chris Corrigan, RSPB south east regional director, said: “We’ve shown this summer we can stand at the centre of the world stage when it comes to sport. When it comes to forging a healthy green business sector we also have a lot
to be proud of in the south east.” The south east saw £297m in renewables investment and nearly 2,500 renewables jobs announced in the last financial year. The region also saw a 153% increase in installed renewables capacity from 2007 to 2010 and generated 2,436 gigawatts per hour through renewables in 2010. Louise Punter, chief executive of Surrey Chambers of Commerce, said: “The Chamber provides information and seminars on ways in which businesses can be more environmentally friendly. “Apart from the obvious benefits of keeping the environment a great one in which to live and do business, there are also huge bottom line benefits. “Often businesses just need a little nudge to do things in a different way and as a result they find they have also saved money. “The sector itself, developing low-carbon and environmental goods and services, is a multi-billion-pound one in the UK alone and the innovation so evident in Surrey is already resulting in some very successful businesses.”
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October 2012
Spa brand has prospered from humble beginnings ESPA founder and Surrey residents Susan Harmsworth speaks to Rebecca Younger about shaping the luxury spa industry into what it is today. RECOGNISED worldwide, ESPA has become one of the most sought-after spa brands across the globe, yet it originates from quite humble beginnings. The inspirational force behind the ESPA brand is Susan Harmsworth, who, since the age of 21, has devoted her professional life to spa and wellness. Considered as one of the world’s leading spa experts, Susan, 68, now spends her time travelling the globe visiting ESPA’s offices in the UK, USA and Hong Kong, as well as the 400 different ESPA sites spread across 55 countries. But it was from her own home in London Road, Guildford – where she still lives today – that she began the company which would see her conquer the spa world. “My grandmother was a herbalist, my father an entrepreneur and my mum a paediatric nurse so I had quite an educational upbringing,” she said. “I was always encouraged to work hard and my dad had a real thing about women being independent and I think that’s where I get a lot of my drive from. “Back in the 90s, when I couldn’t find the type of beauty products I was after I just thought ‘I can do
Susan Harmsworth, founder of ESPA.
this myself’.” Susan started her professional life as a beauty and health journalist at Vogue in London’s swinging 60s. Her marriage to Vidal Sassoon’s right-hand man took her to the US and then Canada by her mid-20s. With no magazine industry to work for in Toronto, she set up a forward-thinking hair and beauty salon in the 1970s, which was turned into a multimillion dollar spa by the time she sold it in 1980, and returned to Europe. The next decade saw Susan designing and creating spas and treatments for cruise liners and on land in France and the UK, including places like Grayshott Hall. By the time she became an independent consultant in 1988, Susan had begun to identify a shift in the spa industry. In the 70s spas were almost solely for the rich and focused on health, wellbeing and weight loss while in the 80s, weeklong spa retreats had become popular. At the start of the 90s the trend had moved towards short spa breaks at luxury hotels – people wanted an antidote to the stresses of working life. It was then, in 1993, that Susan set up ESPA, “The reason I created ESPA was
I couldn’t find the type of products I wanted and there were lots of different products on the market that I felt should be amalgamated,” she said. “I also wanted to create products that looked nice, felt good on the skin but also products that worked.” Despite the project starting her own home, the business quickly grew and she spread into the garage and a secondary workshop before eventually opening a site in Farnham in 1998. “The house had been a dentist surgery when I bought it and there was an annexe so that is where I started the business,” she explained. “We would store the products in the garage and before long we had to get a second one, which was over in Shalford. We kept the business at home until we were literally bursting at the seams. Eventually planners from the council came along and said we had to move, which was fair enough.” Susan’s devotion to education in the spa industry shines through – in fact the ‘E’ is ESPA actually stands for education. This was the driving force behind the ESPA post graduate therapist training school, which opened in 2006 and is based
at the company’s headquarters in Crosby Way, Farnham. This devotion is also what led her to be awarded an MBE by the Queen in 2010, in recognition of her services to the spa and beauty industry. With the factory producing ESPA products now in Devon and the business having grown to become an international institution, it seems far away from its humble beginnings in the garage of a family home in Guildford. However, Susan said the roots of the company are still firmly in Surrey. “The headquarters is here and this is where we distribute the products from and we have the training school here,” she said. “Both my sons, Charlie and Mike, are heavily involved in the business and they still live in the area, as do I.” Earlier this year, ESPA entered into partnership with The Spa at the Radisson Blu Edwardian Hotel in Guildford, which now offers ESPA treatments and products. “This is quite special for me,” Susan said. “ESPA has 400 spas built in 55 cities and for years I have wanted one on my doorstep. I am very excited to finally have something here.”
Overseas witnesses gave evidence via video link in dispute over body TWM Solicitors dispute resolution partner Eileen Barry obtained an injunction and letters of administration to allow repatriation of a Philippine politician’s remains. TWM Solicitors’ Eileen Barry, successfully represented the partner and daughter of Philippine politician Ignacio (Iggy) Arroyo in proceedings in the High Court Chancery Division arising out of a dispute about the right to repatriate and dispose of the body of the late congressman. The case attracted a great deal of media interest. Mr Arroyo died at a London clinic on January 26. He was domiciled in the Philippines and resident both there and in California. Proceedings were commenced on February 3 when Mr Arroyo’s partner, Grace Ibuna, obtained an emergency injunction restraining Funeral Directors, Dignity Funerals Ltd, from disposing of the body or delivering it up to any person. The injunction was prompted by the arrival in London of the late congressman’s estranged wife Alicia Arroyo, with her lawyer to claim the body. The combination of the great urgency of repatriating the body to the Philippines for a state funeral and period of public
mourning, together with the need to consider the combined effect of the law in California, the Philippines and England meant that urgent legal work had to be co-ordinated at very short notice. Congressman Arroyo had married twice. He believed his first marriage to have been annulled. He had separated from his second wife (Mrs Arroyo) in 2005 and proceedings to annul that marriage had commenced in 2006. From 2006 until his death, he had lived with Ms Ibuna. He left two daughters by his first wife (Bernardina Arroyo-Tantoco and Bianca Arroyo) and one by Mrs Arroyo. He made a will in California appointing Bernardina as his executrix and an advance healthcare directive nominating Ms Ibuna as his agent to make healthcare decisions for him if
he was unable to and authorising her to direct disposition of his remains. When he died, Ms Ibuna started to make arrangements to transport his body to the Philippines. Mrs Arroyo arrived in the UK and gave contradictory instructions to the funeral directors holding the body, on the basis that she was his widow. Ms Ibuna and Bernardina applied to the High Court for a grant of limited letters of administration to take possession of the body and arrange a funeral in the Philippines in accordance with wishes that Congressman Arroyo had expressed during his lifetime. Mrs Arroyo issued her own proceedings in the Philippines to obtain possession of the body (and planned different funeral arrangements). Mr Justice Peter Smith granted Ms Ibuna and Bernardina joint
letters of administration after a one-day hearing on February 20 in which witnesses from the Philippines, including an expert on Philippine law, gave their evidence by video link. Mrs Arroyo was ordered to pay the legal costs of the Claimants and of Dignity Funerals Ltd. This case illustrates how the court approaches the question of entitlement to possession of a deceased’s body where the deceased was domiciled outside England and Wales. There is no right of ownership to a dead body, but the deceased’s personal representatives have a duty to dispose of the body and are entitled to possession of it for that purpose. The right to a grant of representation where the deceased was domiciled outside England and Wales is set out in the Non-Contentious Probate Rules 1987. (Ibuna and another v Arroyo and another [2012] EWHC 428 (Ch).) n Contact Eileen Barry via email at eileen.barry@twmsolicitors.com
Eileen Barry.
7
October 2012
Lobbying work reaps its rewards By Louise Punter
Surrey Chambers of Commerce Chief Executive Officer There have been two significant government announcements made in the last two weeks. The first could potentially transform the environment for business finance in this country. The second is rather a smaller affair, but it includes a bit of additional funding for a popular international trade programme. What the two have in common, however, is that they both owe their existence to the lobbying work of the British Chambers of Commerce (BCC) and the chamber network. The first announcement I’m referring to was the detail on a new business bank announced by Vince Cable in his Lib Dem party conference speech. Thanks in large part to hard work by chambers in the treasury, Number 10 and Business Innovation and Skills (BIS) – all of whom have credited the BCC as helping to make it happen – the business bank will start up with £1bn of government capital on its balance sheet.
That could potentially generate up to £10bn in lending to small and medium enterprises (SMEs) once the business bank gets off the ground – no small number by anyone’s standards. Obviously, the hard part comes after the announcement, so we will be working closely with the government to make sure the business bank that emerges actually supports the interests of the real economy when it launches. Still, this is a major step forward and an achievement for the chamber network. The second announcement will have passed most people by. It came last Friday as a press release from BIS and UKTI, stating that £9m in government funding will be made available to expand the Tradeshow Access Programme and to discount UKTI’s Overseas Market Introduction Service reports.Both of these have been long-standing BCC policy recommendations based on views from exporters, and would-be exporters, from around the chamber network. We have campaigned in appearances in parliament, in front of ministers, and elsewhere for
more support to help SMEs get to trade shows, and it is gratifying to finally get a response. While the sum allocated is not large, it is a significant improvement and we will be working to ensure chamber members have swift and easy access to the new funding on offer. I will be meeting with UKTI this week to ensure Surrey businesses get their share! Next week is probably one of the busiest in the chamber’s calendar. We are running an exciting Meet the Venues Event on Thursday October 11 which brings more than 25 venues under one roof. The event is free to attendees who can save themselves hours by finding out about many of Surrey’s spectacular venues in one afternoon. We can be found at Woking means Business on Wednesday October 10 and we will be rallying businesses to take on apprentices at a breakfast at Epsom racecourse on October 9. No chance for any lie-ins next week but we will certainly be contributing to helping the local economy grow. For more details go to www.surrey-chambers.co.uk or call 01483 735540
The world is our oyster Every business in Surrey should be looking at their business with a view to reach out to the rest of the world. There is a misconception that unless you produce a tangible product you don’t have anything to export. Contrary to this, less than 50% of exports are from manufacturers with services providing the lion’s share of transactions. The UK was, in fact, the second highest exporter of services in the world in 2010. The South East accounts for 15% of UK exports with Surrey contributing significantly to this value of £42.5 billion. Six of the 11
boroughs and districts in Surrey are in the top 50 local authority areas for exports (according to a BBC report) so we already perform well. Quite a surprising statistic is that one in five businesses currently export and if this was increased to one in four the gross domestic product would increase by 1.5% providing a further £0.4billion of sales in Surrey alone. Given the need to rebalance the UK economy towards exports to secure recovery and long-term prosperity, the British Chambers
of Commerce (BCC) commissioned a major international trade business survey in Q1 2012 – to which 8,073 businesses responded. Although the survey clearly demonstrated the positive impact on businesses that exported it also showed that a number of challenges, barriers and obstacles remain. It is important for joined-up working with chambers of commerce, companies and with government, to overcome these obstacles, working closely hopefully unlocking the potential of Surrey’s existing and future exporters.
Diary Dates October
9
Tue
What’s your next move? Apprenticeship breakfast Venue: Epsom Downs Racecourse, Epsom
International Trade is Good for Surrey – How to effectively Import and Export
10 Mon
Redhill & Reigate Business Forum – Talent – How to find it and How to Keep it.
Surrey Meet the Venues Venue: The Mandolay Hotel, 36-40 London Road, Guildford
East Surrey Business Breakfast Club at Hartsfield Manor Venue: Hartsfield Manor (De Vere Venues) Sandy Lane, Betchworth. Midway between Dorking & Reigate
Meet the Venues – Exhibitors Venue: The Mandolay Hotel, 36-40 London Road, Guildford
12 Fri
Woking Business Breakfast Club
15 Mon
How to use LinkedIn for lead generation
17 Wed
Business Women in Surrey – Networking at Pennyhill Park
18 Thu
Elmbridge Business Breakfast Club
23 Tue
Venue: Holiday Inn Woking, Victoria Way, Woking Venue: Gorse Hill Executive Centre, Hook Heath Road, Woking Venue: Pennyhill Park Hotel & Spa, London Road, Bagshot Venue: The Hilton Hotel, Seven Hills Road South, Cobham
Farleigh Business Breakfast Club Venue: Farleigh Court Golf Club, Old Farleigh Road, Farleigh Common, Warlingham
Golf Day at Tandridge Golf Club
24 Wed
Venue: Tandridge Golf Club, Godstone Road, Oxted, Nr Godstone
Redhill Business Breakfast Club Venue: Donyngs Leisure Centre, Linkfield Lane, Redhill
Members Networking Evening
25 Thu
Free
£20
Free
Free
Free
Free
Free
£25
£14
£250
£175
£25
£14
£30
£20
£37
£22
£25
£14
£25
£14
£81.67
£73.34
£25
£14
£20
Free
£25
£14
£42
£30
£25
£14
£25
£14
£25
Free
£30
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Free
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£80
£71.67
Venue: Natwest, 2 Cathedral Hill, Guildford
Venue: Reigate & Banstead Borough Council, Town Hall, Castlefield Road, Reigate
11 Mon
FreE
Venue: Frimley Hall Hotel, Lime Avenue, Camberley
Guildford Business Breakfast Club Venue: The Mandolay Hotel, 36-40 London Road, Guildford
November
5 Mon
Networking event at the theatre – Dolly Parton – 9 to 5 The Musical
6
East Surrey Business Breakfast Club at Epsom Racecourse
Tue
8 Thu 9
Fri
13 Tue
Venue: New Victoria Theatre, Peacock Centre, Woking Venue: Epsom Downs Racecourse, Epsom Downs, Epsom
East Surrey Business Breakfast Club at Hartsfield Manor Venue: Hartsfield Manor (De Vere Venues), Sandy Lane, Betchworth. Midway between Dorking and Reigate.
HR Advice Forum Venue: The County Club, 158 High Street, Guildford
Reaping the rewards from new product development Venue: Farnham Castle, Castle Street, Farnham
Members Networking Evening Venue: 36-44 High Street, Redhill
15 Thu
Elmbridge Business Breakfast Club Venue: The Hilton Hotel, Seven Hills Road South, Cobham
Surrey Chambers Golf Society – Golf day at Burhill Golf Club Venue: Burhill Golf Club (Old Course), Burwood Road, Walton-on-Thames
Be part of the network - find out how Surrey Chambers of Commerce membership can help your business at www.surrey-chambers.co.uk
8
October 2012
Investment watch
Keeping an eye on the markets
Market upbeat on concerted stimulous action and renewed M&A By Philip Scott
Head of Advisory Stockbroking at Simple Investments Current Overview Low relative trading volumes continue to be a feature in a market which has just revisited levels close to the March highs. The short term uptrend which commenced at the end of May remains in place and the chart would seem to point to further upside. That is just the chart though and more than just technicals (in my view) affect market direction. The BOE, the ECB, the US Fed and now the Bank of Japan are all either implementing further stimulus or getting close to putting it in place. In the case of Europe and the US, blank cheques are on the table, in other words bond buying (QE) support will essentially be unlimited. The Fed will now buy mortgage backed securities to keep mortgage rates low and thus encourage investment in other areas in an effort to unclog the housing sector, spur bank lending and ultimately create jobs. The unemployment rate has remained a bugbear in the US for some time but on many other economic metrics, the US has shown reasonable consistency for a number of monthsuntil just recently. Caution remains at large about China and the equity market there remains depressed accordingly.
The Chinese have just implemented a $160 billion infrastructure spending programme and further monetary easing is seen likely soon. It was also interesting to hear the Chinese premier at the World Economic Forum earlier in the month saying China will hit 7.5% growth this year and that stable growth will be maintained beyond. A unique and historic change in the Chinese government towards the end of the year is also a market event to be aware of. There are many signs suggesting oversold conditions and contrarians and expecting a recovery in the final quarter of 2012. The quandary facing investors right now Having been cautious and generally wary of the current level of the market for some weeks, I find myself asking what may act as a trigger for possible renewed market weakness. I had felt that this month could see a test in the market (it still may, perhaps it will be next month) but clearly I have to respect and take note of the ongoing resilience and relative short term strength in share prices. As a market advisor, one has to reserve the right to alter one’s view as time moves on and more newsflow emerges. I see the positives in the back stop support the central banks are putting in place. I understand that market interest rates will remain low for some time yet which continues to boost the investment appeal of equities. I also
Out with the old ... Creative business partners at a Guildford design agency celebrated four years in business by treating themselves to some new studio equipment Creativitea, based in Millbrook, underwent a high-end studio refurbishment last month, with ergonomic furniture installed. Best friends Rik Barwick and Lloyd Bedford set up the company in 2008 and four years later have seen it blossom into one with a
strong brand identity and a long list of clients. The success that the team has had over the past four years is reflected in the new studio design which features high-tech equipment and bright, bold and modern furniture. The studio has also expanded
Rik Barwick and staff celebrating four years in business.
continue to see many companies delivering robust results in very tough economic conditions. Indeed if an investor is prepared to take a medium to long term view and would prefer not to try and ‘time’ optimum entry and exit levels, I can see how putting some funds to work now will likely yield reasonable returns going forward. On the other hand, some people question the effectiveness of unorthodox monetary policy (QE), and the inflationary pressure it creates. Let us not forget that 11 years after the Japanese became the first to implement modern day QE, their economy remains in perpetual slump. In fact, they have just put in place their 8th round of stimulus! Driving bond yields lower by mass bond buying also has the negative counter effect of requiring companies to have to put more funds into company pension schemes. Company money that might ordinarily be spent growing businesses (creating jobs) or paying out dividends is having to simply fund further pension schemes which obviously offsets so called positives of QE. The CEO of FTSE 100 listed Smiths Group, Philip Bowman has highlighted this problem yesterday. To the extent that markets are on the front foot largely to do with multi central bank stimulus plans, how confident can one be that all is now under control. I would suggest that the wild card for any renewed
to include a new meeting room, while all the furniture, recommended by Healthy Home Office in Guildford, can be tailored to the staff to allow healthy posture. “We are thrilled to now be celebrating four years in business,” said Mr Barwick. “It’s a real achievement for the team as a whole, and the studio is a way of rewarding the team for all of their hard work. “The studio’s refurbishment fits in perfectly with our Creativitea brand, just as it should. We’re passionate that a brand isn’t just a logo or one aspect of your marketing – it’s everything, including your staff and your workspace.” Since starting out doing freelance work, the Creativitea team has expanded to six designers who have worked on projects for clients such as Freeview, Carphone Warehouse, and Electronic Arts. Mr Bedford added: “We are keen to use local companies where possible, and we like to do our bit for the community. “We love being based in Guildford. It’s a beautiful city and inspiring to work in. It seems to be an up and coming area for creatives too. “I don’t think there’s a belief that you have to be in London. We have some local clients and some further afield but when a client is confident that you can deliver quality at the right time, that’s all that matters.”
concerns remains Europe. The big bazooka ECB plan cannot be put in force until Spain formally requests a bail out and what if they don’t ask for one? Here in the UK, economic growth needs kick starting and further stimulus through bond purchases in isolation probably won’t achieve it. Significant policy changes are also required. In closing, M & A returning to the market? It has been a long time since takeover rumour and corporate activity have featured much in the markets. Back in the pre-credit crisis days of 2007, almost every day at least one blue chip would be moving higher in heated chit chat that yet another takeover bid was on the cards. As bank credit has dried up in the risk averse, post-crisis environment we find ourselves, it has been of interest to see BAE Systems in mega merger talks with EADS of Europe as it has rumours of bid interest in both Marks & Spencer and Sage. Such gossip does not tend to do markets any harm; indeed it often highlights that valuations are not demanding in the eyes of some.
This report was written by Philip Scott, Head of Advisory Stockbroking at Simple Investments on 1/10/12 when the FTSE 100 was trading at 5750. The writer does not hold a position in any equities mentioned above, although his clients may.
Philip Scott.
Youngsters at Jigsaw School get the benefit of the recycled furniture.
... and in with the new
IN keeping with the forward thinking reflected Creativitea’s studio makeover, all the old furniture was donated to a Cranleigh school for autistic children to help them develop a creative spark of their own. Children at Jigsaw School, situated at Dunsfold Park, are now benefitting from a fresh change of their own after the Guildford design studio underwent its refurbishment last month. Joint managing directors Rik Barwick and Lloyd Bedford donated the furniture under Rik’s name as a personal gift to the school, in keeping with their aspiration for the company to
be a positive part of the community. Steven Morgan, fundraising officer at Jigsaw, says: “We are hugely grateful to Rik and Creativitea for donating the tables and chairs to us. “It has come at exactly the right time as we are further expanding our art facilities here at Jigsaw. The art programme is producing some fantastically creative work and the children will really benefit from having more space in which to create their larger painting and textile works. “It’s very rewarding for us to have support such as this from local businesses and we very
much appreciate Creativitea’s recycling initiative in passing on some of their older design studio furniture as they undergo a studio update and refit. “The furniture is terrific quality and absolutely perfect for our students.” The Jigsaw Trust was set up in 1999 by a group of parents with children with autism spectrum disorders. It aims to provide a specialist resource for children diagnosed with the lifelong disorder, and is one of only ten schools in the UK to use Applied Behaviour Analysis to teach pupils to modify their behaviour through the course of their learning.